Money Guy Show: This One Expense Is Breaking People’s Retirement

Hosts: Brian Preston & Bo Hanson
Date: September 17, 2025

Episode Overview

This episode of the Money Guy Show centers on a single looming expense that threatens to derail many Americans’ retirements: health care costs. Brian and Bo share alarming statistics, actionable financial strategies, and personal anecdotes, giving listeners the insight and tools to avoid being blindsided in the future. The discussion also addresses related retirement planning questions, such as Social Security timing, 401k contributions, and considerations for accredited investors. Throughout, the hosts inject their trademark banter and real-life examples, making a dense topic engaging and relatable.

Key Discussion Points & Insights

The Retirement Expense Nobody Plans For: Health Care

• Health Care as Top Retirement Worry

  • 63% of Americans ages 60-70 cite health care costs as their prime concern in retirement, ahead of running out of money (58%) or inflation (53%).

    “This expense can be a huge part of how much you spend when you actually retire.” – Bo [00:25]

  • Many worry too late, with 1 in 5 people never even considering health care in their retirement plan.

• Average Health Care Costs in Retirement

  • Fidelity projects the average 65-year-old retiring in 2025 will need over $172,000 for medical expenses (including drugs, Medicare premiums, copays, deductibles).

    “That’s a big mountain that we think we have to overcome.” – Bo [05:39]

• Breakdown by Age: Planning Ahead
  Brian shares actuarial numbers showing how much younger savers need to set aside monthly to reach that $173,000:

  • 20-year-old: $33/month ($4-5k lump sum)
  • 30-year-old: $76/month (about $11k)
  • 40-year-old: $182/month (about $24k)
  • 50-year-old: $499/month (about $52k)

  “If you can just save somewhere between $30 to $500 … you can be prepared for these expenses. These don’t have to be things that slip up on you.” – Bo [05:39]

Practical Financial Tactics

• HSA (Health Savings Account): The Triple Tax Advantage

  • HSAs offer pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
  • Only 13% of Americans use HSAs to invest for future needs.

    “HSA Health Savings Account is literally a triple tax advantage savings vehicle.” – Bo [03:47]

• Prevention Is Cheaper Than Cure

  • Proactive health choices today generally lead to lower costs in retirement.

    “It is less expensive to prepare to be healthy than to wait and get sick.” – Bo [07:54]

Medicare Selection: Measure More Than Once!

• The choice of Medicare plan at age 65 has ongoing cost implications.

  “The type of insurance you select when you hit age 65 can have a huge impact on the costs that you incur as you move through retirement.” – Bo [07:54]

• Navigating Medicare is highly personal—a labyrinth with few clear guides compared to health and wellness advice online.

General Wealth Building: Mindsets & Milestones

• “Health is wealth” — Building both is key.

  “You know what’s great about being a financial mutant and having all this wealth... is being healthy and being able to actually use this and create memories and live your best life.” – Brian [06:41]

• Retirement planning is about anticipating “unknown unknowns” and not being blindsided by them.

  “The better you can plan, the more comfort you can have when you reach that stage.” – Bo [10:38]

Notable Quotes & Moments

• Personal Anecdotes

  • Brian references taking health for granted until his late 30s, using the “better-before” metaphor:

    “Whereas I am the better before pitcher that has definitely created ... I realized, you know what, I’m not headed to be where I want to be from a health perspective.” – Brian [06:41]

• On Procrastination & Planning:

  “Don’t let this be an emotional decision. There is actually a lot of moving parts and it is once again back to the personal impact personal finance.” – Brian (re: Social Security timing) [38:19]

Retirement & Financial Q&A Highlights

(Q&A starts ~15:14)

Counting Reinvested Dividends Toward the 25% Savings Rate

• Discussion: Reinvesting dividends/capital gains is not the same as saving new money from income; those are part of investment returns, not contributions.

  “What I don’t get to do is I don’t get to say, oh, well, my portfolio did so well. I don’t need to do my part.” – Bo [15:52]

• Tip: Employer matches can count toward the 25% savings goal if income meets certain guidelines. [18:13]

Mega Backdoor Roth IRA – How Does It Work?

• The Mega Backdoor Roth is available only if the 401k plan allows it, after maxing pre-tax or Roth contributions. It allows large amounts (up to $70k in 2025) to be directed into after-tax then Roth buckets.

  “That’s Godzilla scream big when you see $70,000. When you see a hundred dollars a week, I hear … barracuda.” – Brian [25:56]

Claiming Social Security Early vs. Later

• Delaying Social Security increases benefits by 8% per year past full retirement age, offering longevity protection.
• But, “it depends” — the best claiming strategy varies based on income, life expectancy, marital status, and portfolio withdrawal needs.

  “Social Security is one of those things you want to make sure you make the decision well and you factor in all the other pieces of your financial life because it can have huge implications.” – Bo [36:11]

Employer Pulling 401k Match: What Now?

• Investigate if it’s a company red flag or a plan change for employee benefit realignment.
• If the match is gone, revisit the financial order of operations:
  1. Eliminate high-interest debt
  2. Build emergency fund
  3. Fund Roth IRA/HSAs before adding to unmatched 401k [43:10]

Private Equity for Newly Accredited Investors

• Accredited investors aren’t guaranteed superior options—these investments are illiquid, complex, lightly regulated, and not always necessary for wealth building.
• Brian cautioned:

  “Do you need it? … There were a lot of incentives for us to put the clients in this … probably they can get out of for seven to 10 years.” – Brian [45:45]

Step-Up In Basis for Inherited Assets

• On death, most assets (real estate, stocks) get a “step-up” to market value, erasing capital gains for heirs.
• Gifting during life does not provide this—basis carries over.

  “If you die with appreciated assets … your beneficiaries will actually inherit the assets at the new market value of what it was at the date of death versus all of your unrealized basis.” – Brian [56:16]
  “It’s much better for your heirs to inherit property than it is for you to gift property.” – Bo [59:44]

Engaging & Memorable Moments

• “Apex Predator” Analogy — Mega Backdoor Roth explained as Godzilla vs. a barracuda to demystify the scale of different savings strategies [24:33].
• Storytelling and Banter — Brian’s Starbucks stock “coffee dividend” experiment, and a long tangent about comedian Nate Bargatze and Southern accents; injects humor and relatability [22:26-33:31].
• Regular Polls & Community Features — The team encourages audience engagement via live polls and surveys, emphasizing their desire to stay relevant and responsive to listener needs [12:09-14:47].

Timestamps for Key Segments

• Main Topic: Health Care Cost in Retirement – [00:21] to [10:38]
• HSAs and Tax-Advantaged Saving – [03:36] to [05:39]
• How Much to Save by Age for Health Costs – [04:26] to [06:41]
• Medicare Selection Advice – [07:54] to [10:38]
• Q&A / Saving Dividends & 25% Rule – [15:14]
• Mega Backdoor Roth Practicalities – [24:17]
• Social Security Timing Analysis – [34:30]
• Employer Removes 401k Match, What to Do? – [39:20]
• Private Equity for Accredited Investors – [44:33]
• Step-Up In Basis for Inheritance – [56:04]

Tone & Style

Brian and Bo combine clear, actionable financial strategy with a conversational tone packed with anecdotes, metaphors, and Southern humor. The episode delivers expert insights in everyday language, making complex ideas both memorable and approachable.

Final Thoughts

This episode powerfully highlights the real, often underestimated financial threat of health care costs in retirement—while stressing the benefits of planning early, leveraging HSAs, making smart Medicare/insurance choices, and maintaining good health. The Q&A dives into advanced strategies and timely retirement concerns, reinforcing the show’s mission: to replace financial anxiety with confident, informed wealth-building.

Listener Action Items:

• Evaluate your own retirement plan for health care cost readiness.
• Consider using HSA as a key pillar in retirement medical funding.
• Be proactive: Small, regular contributions add up.
• Don't overlook the tax and inheritance implications when gifting or passing on assets.
• Engage with the Money Guy Show—submit questions, complete surveys, and stay tuned for upcoming topics shaped by listener feedback.