If there’s one thing that wreck a retirement faster than anything, its huge unexpected medical expenses.
According to healthcare advocacy group — the Kaiser Family Foundation — Americans spent around $253 billion on healthcare back in 1980. By the time the clock rolled over to 1990 that number had swelled to nearly $714 billion. But it gets much worse. In the late half of this decade, Americans spent a whopping $2.3 trillion on healthcare — equating to roughly 16% of America’s GDP.
That’s a lot of coin.
But the situation is much worse for retirement investors. The average retired couple will spend around $220,000 in healthcare costs not covered by Medicare or other insurance programs. That amount of money is more that some investors have saved in their entire portfolios.
But the situation doesn’t have to be so dire. Given the rising costs, it makes perfect sense to include a hefty dose of healthcare stocks in your portfolio — especially for retirement investors. But how exactly should investors go about adding healthcare stocks to a portfolio? Here’s one stock, one exchange-traded fund (ETF) and one mutual fund to get you started: