Do you want the ability to pay medical costs using pre-tax dollars? What about accumulating retirement funds that may be used at any moment – tax-free and penalty-free – to cover unforeseen medical expenses? Do you prefer higher-deductible health insurance with lower monthly premiums?
After working five days a week for most of your life, entering retirement can be a shock. Suddenly, you go from a set schedule to days free to do whatever you want. This transition may be difficult for many people who are dedicated and defined by their jobs. For some, retirement can last decades, and no matter where you are in preparing for your golden years, it’s never too early to start planning for the …
As we approach the end of the year, retirees with Flexible Spending Accounts (FSAs) must review their balances. An FSA is a pre-tax fund designated for healthcare expenses, offering a smart way to manage medical costs. However, unlike Health Savings Accounts (HSAs), most FSA funds don’t roll over to the following year, meaning you could lose unspent money. Understanding FSA Rollover Rules Some FSAs offer a grace period of up to 2.5 months or allow …
One of the greatest fears for many people is suddenly being stripped of their wealth through mismanagement or bad investments. Unfortunately, this fear can become a reality in a matter of years if you don’t take steps to protect your finances. Let’s explore ten ways that can lead to the loss of your wealth within five years and suggest how to be smart with your money and avoid such financial circumstances. Not Sticking to Your …
In retirement planning, Health Savings Accounts (HSAs) are a valuable financial tool. Contributions are tax-deductible, earnings grow tax-free, and can be withdrawn tax-free for qualified medical expenses, making it a triple tax advantage. However, the benefits of an HSA extend beyond just covering healthcare costs, especially in retirement. When you turn 65, the rules for using your HSA funds change, providing more flexibility. At this age, you can use your HSA funds for any purpose …
Retirement, though meticulously planned for, often arrives with unexpected realities that can challenge even the most foresightful individuals—these significant life transitions usher in a whirlwind of alterations to one’s daily life and finances. Some retirees have to adjust to specific pivotal changes such as downsizing living spaces, budgeting with a tighter income, and dissociating personal identity from professional roles. However, the evolution doesn’t end there. As retirement approaches or if you’re already at the cusp …
You may already know that a health savings account can be beneficial when paying for medical expenses not covered by insurance. Individuals enrolled in a health insurance plan that has a high deductible can choose to put money into a Health Savings Account (HSA), providing a tax-advantaged method to save for medical expenses. However, the benefits do not end there. A HSA can also function as a potent retirement savings tool. Beyond assisting with the …