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Tag Archives: health savings account

Don’t Leave Free Money on the Table

leaving free money on the table

We all like free things. Why else would people stand in line two hours for a free pancake? Sometimes wasting our precious time for things that return pennies on the dollar is not a smart idea, but what about legitimate free money being wasted or left on the table. Even if you’ve been guilty of not giving your money the attention it deserves, there is no time better than right now to make changes. Don’t Get Penalized for Being Late My daughter got her first quarter report card last week. I don’t expect perfect grades, but one area where I will insist on perfection is with turning in homework. Third graders get a letter grade on report cards for having their homework done on time. It doesn’t matter if it’s done neatly or correctly, it just has to be turned in when it’s due. I’m always blown away by how many students don’t turn in homework. Yes, I realize that some kids don’t have the stability at home to get any work done, but it’s not just the troubled kids who don’t turn in assignments. This is the easiest A anyone can ever get! I see this with adults as ...

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How Much a Healthy Family Spends on Medical Care in a Year

medical costs for a family

The cost of the health care in the United States is a hot button topic to say the least. People seem to either love/hate Obamacare depending on whether the program actually helped make insurance more affordable or added to the already substantial burden of trying to insure a family and pay medical bills. Since I am lucky enough to have a pretty healthy family and I track all of our spending religiously, I thought it might be interesting to see how much a healthy family spends on medical care in a year. We Have Insurance While it might be cheaper to take the penalty for not being insured, we think it’s really important to have health coverage. Fortunately, Jim has really good insurance that is paid by his employer. Unfortunately, it costs $800 a month to add a family, so the kiddo and I have a grandfathered Anthem HSA plan that costs $261 a month. Jim only has to pay a $30 copay for doctor visits and anywhere from $5 to$40 copays on prescription medicines. The Anthem plan has a $10,000 deductible, so other than covered preventative services, we pay out of pocket if my daughter or myself have medical ...

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The Last Day To Fund an IRA or Health Savings Account for 2014

find your IRA or HSA before April 15th

Next Wednesday is April 15th. All of us in the U.S know that’s tax day, but it’s also another very important date to remember. April 15th is the last day to fund an IRA or Health Savings Account for 2014. I was on the fence whether to put money into a Roth IRA or into my solo 401k, but we have the rest of the year to work on the 401k and only a few days left to add to our 2014 holdings, so that’s what I did. Sometimes It’s OK To Invest By Emotion I have no idea what the tax rates might be when I retire. I do know taxes are high right now because we are considered high earners. In theory, I should have put money into the 401k to defer income taxes, but I didn’t. I’ve always been drawn to Roth IRA’s because no matter how much they earn in interest over the years, you never have to pay another cent in taxes on any of this money. Yes, I know there are ways to roll money into Roth’s at a later date. Yes, I understand the math behind tax deferred accounts, but emotion made me ...

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Wise Ways To Invest Money

different ways to invest money

When I started this blog, the goal was paying off credit card and consumer debt. Now my focus has shifted. One of the many great things about paying off debt is that once it’s gone, you have extra money every month!  Smart people don’t increase their  lifestyle or go on  shopping sprees. They invest that money for the future. Unless you are buying from a guy named Bernie who guarantees double digit returns with no risk, there really is no right or wrong way to invest. Just about anything you choose is better than nothing, but that doesn’t mean you shouldn’t try to choose the best investments for your future. This list is in no way all inclusive, but these are some wise ways to invest money. Investing For Retirement With a 401(k) If you have an employer plan, usually a 401(k) or 403(b), that’s usually the easiest and best way to invest for retirement. It’s easy because all you have to do is fill out the paperwork and best because money invested is tax deferred. That means you don’t have to pay income taxes now and your money can grow for years. When you do take disbursements from your ...

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Investing Your Health Savings Account in the Stock Market

I have had a health savings account eligible insurance plan since they first became available. I love the triple tax advantages of the HSA. Pre-tax or tax deductible contributions   Money grows tax free   No taxes or penalties if money is withdrawn for approved health care spending   You can potentially never pay taxes on this money! Is that a great deal or what? Recently, though, we’ve decided to let our HSA dollars do even more for us. We’ve decided to invest our HSA in the stock market as a great way to improve our finances and here’s why. Low Interest Savings Account Currently our HSA is in a savings account. When we opened that account, I believe it earned 3% interest. Now it earns 0.19%. We made $2.94 in tax free money from our HSA last year. That’s enough to retire on, right? We Don’t Want to Spend Our HSA Money Anymore In past years, we have only put money into our HSA when we had a medical expense. Then we would withdraw it to pay the medical bill. Over the past couple of years, we’ve built up a little money, but not much because we wipe it ...

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