How FIRE Plans Should Model Inflation for Healthcare Costs

In this episode of The FIRE Podcast, Lucas and Luna tackle a blind spot many early retirees miss: healthcare inflation is not the same as general CPI. They break down why the consumer price index for medical care has historically outpaced core inflation by roughly 2 percent annually, and show how a 30-year retirement can see healthcare costs consume an extra 10 to 15 percent of your portfolio if you use the wrong inflation assumption. Using a concrete case—a 45-year-old couple with a $1.2 million portfolio and a 4 percent withdrawal rate—they walk through the math: the difference between modeling 2.5 percent general inflation versus 4.5 percent medical inflation. The hosts also discuss the Medicare IRMAA surcharge trap for those with Roth conversion income, and why health savings accounts may be the most tax-efficient tool in a FIRE plan. Practical, numbers-driven, and grounded in today's July 2026 environment. #FIRE #FinancialIndependence #EarlyRetirement #HealthcareInflation #MedicalCPI #RetirementPlanning #WithdrawalRate #HSAAccount #MedicareIRMAA #PortfolioModeling #InflationRisk #HealthcareCosts #TaxEfficiency #RothConversion #SequenceRisk #PersonalFinance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo