The holidays are upon us and although 2020 isn’t a traditional year people are still getting into the holiday spirits. Gifts have become a huge part of the holidays, which we all know can add a lot of additional stress. This year there is the added stress of what is the best way to get gifts to loved ones? Shipping can be expensive and you risk packages getting delayed, lost, or broken so I wouldn’t be surprised to see more monetary gifts be given.
Some caregiving situations require the services of a long distance caregiver. According to the National Institute of Aging, a long distance caregiver is someone that lives an hour or more away from a person who needs aid.
What are some of the roles of a long distance caregiver? Depending on the relationship, some duties may include home care, money management, medical correspondence with professionals, legal paperwork, medicinal disbursement, emotional support, family informant, etc.
November is National Family Caregivers Month! There are millions of heroes out there who provide care to their loved ones and their efforts are all too often overlooked. It’s not an easy job and the pressure caregivers put on themselves can be enormous. In honor of this important month, we’re outlining some steps you can take to take care of yourself emotionally and financially to make sure you can continue to provide great support to others.
During open enrollment one important decision that has to be made is which medical plan is best for your situation. When comparing the health care plans, if you have a plan option with a high deductible paired with a health savings account, do not immediately rule it out. Below are 5 reasons to consider this plan:
Triple Tax Advantage
Money put into your HSA is with pre-tax dollars
Withdrawals are tax free, as long as used for qualified medical expenses
Can often be deducted automatically from your paycheck
Pay medical expenses with pre-tax dollars
Use HSA funds to pay for qualified medical expenses (including dental and vision services)
Without the HSA, the only other way to deduct medical expenses is by itemizing your deductions on your tax return and they must exceed 7.5% (2020) of your gross income
HSA is Portable
The HSA is owned by you and does not have a “use it or lose it” option
If you deposit money into the HSA, the funds remain in the account and are available in future years
This is the primary difference between the HSA and the FSA
If you change jobs, the HSA can go with you
Account Grows
Funds are kept in interest bearing account (similar to bank accounts)
Can be used as a long term investment and based on your risk tolerance, invest in the stock market
Additional Retirement Account
After age 65, the HSA can also be used as a retirement account.
Will be treated similar to a Traditional IRA. When withdrawals are made you will only pay income tax.
Unlike Traditional IRA’s, you are not required to make withdrawals at age 72
This month we want to continue to remind our readers that it will soon be open enrollment through your employer and Medicare, the time of year you are able to review and change your health insurance and other benefits.
There are several posts on our blog that cover this topic more in depth:
Last week Rachel discussed how to review your health insurance options and prepare for making that decision in her post “Knock, Knock - Open Enrollment Who?”
Last year I wrote a guide to the terms and options you may be deciding on in a post titled “Build Your Wealth by Taking Advantage of Benefits Open Enrollment.”
Student loans impact people of all ages, from high school through retirement. This may come as a surprise to some people, because it’s often thought that student loans are a millennial “issue”, but that’s not necessarily the case. In fact, many adults who are either planning on retirement or already in retirement are faced with student loan payments.
Since Oprah stopped giving cars away in 2011, we recently had to face the challenge of getting our daughter a better vehicle. While her getting older and purchasing this car should have come as no surprise, it came faster than we wanted (we should have started earlier!!) and I wanted to share a few things we did to prepare for the purchase of the car.
Utilizing Savings
Throwing all Extra Funds into the Savings
Create a Physical Savings Chart
When the time arrives to Purchase, Choose a Budget!
Involve your Teen in the Purchasing Process
Utilize a Teachable Moment
It is again the back to school season. Preschool through college school will look different for students this year, but one thing is the same. The changing of the year, feeling of a fresh start, and thinking about the future year ahead. For older students we are discussing college plans and for those of you with young children you may be thinking about planning for your children's eventual college. With a growing student loan debt load in this country how to pay for college is a concern we like to address. I wanted to share some thoughts on a few unique ways to think about saving for education.
Estate planning can sometimes come across as a section of planning that is completed later in life after retirement has begun and “it’s time” to start thinking of life’s next stage. Au contraire, estate planning is a part of one’s portfolio that deserves equal attention pre and post the date of retirement. The time is now! As net worth, investments, personal property, real estate, relationships, and other intrinsic items change in status, value, and possession over the years, it is important to consistently update (or begin creating) your estate planning documents.
Below are some introductory terms for those stepping into the estate planning process
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