Skip to content

projectfinland.org

Insurance, loan and other finance resources

Archive

Tag: plan

Health-Savings-Account-PlansHealth savings accounts (HSAs) are wildly common.  Since their introduction in 2004, approximately 2.5 million Americans have enrolled in these so-called consumer-driven health plans.  But, alas, HSA plans are not for everyone.

Here are some pointers to help you consider whether an HSA will profit you and your family.

1. An HSA plan can cut healthcare costs by an average of 40% for many people.

Nevertheless, some people will not realize any net savings. Those most likely to realize significant savings are people who pay all of their own health insurance policy premiums, such as the self-employed, who are relatively healthy with few medical expenses.

2. health savings plan restores freedom of choice.

An HSA plan puts individual consumers back in control of their own health care. This also means that each individual must be more responsible for his or her own health care decisions. This approach of self-reliance is not always popular with or appropriate for everyone, especially those who have become comfortable with HMO-type “co-pay” plans.

3. Health savings accounts reduce income taxes.

Every dollar contributed into your HSA account is deducted from your taxable income in the same manner as contributions into a traditional IRA account–regardless of whether you spend it or just save it.  Interest and investment earnings in a HSA accumulate tax-deferred, just like a traditional IRA. Unlike an IRA, withdrawals are tax-FREE when used to pay qualifying medical expenses.  In many situations, new account holders are able to almost fully fund their HSA with money saved on premiums from a prior, higher priced plan.  By stashing all or most of those savings into an HSA, the account holder realizes instant, additional savings in the form of reduced taxes.

continue reading…

Women face special challenges when planning for retirement.

Because their careers are often interrupted to care for children or elderly parents, women may spend less time in the work force and earn less money than men their age.

As a result, their retirement plan balances, Social Security benefits and pension benefits are often lower. In addition to earning less, women generally live longer than men and face having to stretch limited retirement savings and benefits over many years.

To meet these financial challenges, women need to make retirement planning a priority.

To maximize the chances of achieving a financially secure retirement, start with a realistic assessment of how much money will be needed. If the figure is substantial, don’t be discouraged – the most important thing is to begin saving now.

Although it’s never too late to save for retirement, obviously, the sooner the start, the more time investments have to grow.
If an employer offers a retirement savings plan, such as a 401(k) or a 403(b), join it as soon as possible and contribute as much as possible. It’s easy to save, because contributions are deducted directly from pay and some employers will even match a portion of the contribution.

continue reading…