How To Choose A Health Insurance Plan During Open Enrollment

October 12, 2018

This fall, millions of Americans will face a choice of which health insurance plan to choose during their employer’s annual open enrollment period. Let’s take a look at some of the questions to consider when making this decision:

What are the premiums?

This may be the first thing you notice and is the only expense you know for sure you’ll have. However, the plan with the lowest premiums won’t necessarily cost you the least overall so don’t stop there.

What are the differences in coverage?

Make sure the plan you choose actually covers your needs. If you want to keep your primary doctor and other providers, check to see if they’re in-network. Otherwise, you may end up paying more for their services. See the extent to which any procedures or prescription drugs you’re expecting to need over the next year are covered as well.

How much might you have to pay out-of-pocket?

Co-pays are what you would need to pay each time you visit the doctor or fill a prescription. You may also have a deductible, which is what you would have to spend before most of the insurance benefits kick in. Once you reach your deductible, the coinsurance is the percentage of costs you would have to pay for additional medical costs under each plan. Finally, the out-of-pocket maximum is the most you would have to pay for the total of all of the above each year, with the rest covered by insurance (assuming you stay in-network for all of your needs).

Is there an HSA option?

Like a health flexible spending account (FSA), a health savings account allows you and your employer to contribute pre-tax to an account that you can use tax-free for you, your spouse and any tax dependents you have. However, you have to be enrolled in an eligible high-deductible health plan in order to contribute to an HSA.

Unlike an FSA, you can keep the full amount of whatever you don’t spend in the account and even invest the HSA (which you should only do for money you won’t need to use within the next few years). At age 65, you can withdraw the money for any purpose without penalty and tax-free for health care expenses, including premiums for Medicare (but not Medigap plans) and qualified long term care insurance.

For this reason, you may even want to consider paying for health care expenses with other savings and letting your HSA grow tax-deferred (and potentially tax-free if used for future health care expenses). In that case, be sure to keep your receipts because you can reimburse yourself from your HSA tax-free at any time (even if you’re on another plan in the future).

There are a couple of ways of valuing the HSA

If your employer is contributing to it, that’s free money that can help to offset those out-of-pocket costs since your employer is essentially putting some of that money into your pocket. (Your HSA is your money so you can take it with you when you leave or retire.) If you plan to contribute to the HSA, calculate how much you can save in taxes. (You can get the same tax benefit by contributing to an FSA for health expenses, but the contribution limits are lower and you probably won’t want to contribute as much since the FSA is mostly “use it or lose it.”)

Put it all together

As a real life example, I spoke to an employee on our Financial Helpline who was trying to decide between a traditional PPO plan with a $1,000 family deductible versus an HSA plan with a $2,600 family deductible. The coverages would have been similar for her, but she was concerned by potentially having to spend so much out-of-pocket under the HSA plan.

However, the PPO plan premiums would cost her an extra $49 a month or $588 a year. In addition, her employer would contribute $2,000 to her HSA. The total of both of those savings ($2,588) already exceeded the difference in her deductibles. So even if she spent the whole $2,600, she’d still be ahead under the high deductible plan.

In addition, if she decided to max out her HSA (an additional $7,000 for a family contribution in 2019 plus another $1,000 since she’s over 55), she would save another $1,920 in federal taxes at the 24% tax bracket (not including the tax savings on any future earnings in the account).

Of course, your numbers will be different and your decision may not be such a slam dunk. The important thing is that you’re looking at all of the factors, not just the premiums and the deductibles. In particular, don’t overlook the value of the HSA, both now and in the future.

If you’re still not sure what to do after weighing the options, consider consulting with an unbiased financial planner with an expertise in health insurance and HSAs. Your employer may even offer free access to a financial planner familiar with your particular health insurance plans as part of a workplace financial wellness program.

A version of this post was originally published on Forbes

How You Might Be Making 40% More Than You Think At Work

September 28, 2018

Are you overlooking the real value of your benefits when you think about your compensation? Probably. According to a recent report, employer-paid benefits improved wages for private industry workers by 46.6% ($11.50 average benefits costs for average wages/salaries of $24.72 per hour). Did I mention that most of those employee benefits are not taxable to the employee?

Your benefits are worth more than most of us appreciate

While you’re making decisions about your health insurance and other employee benefits for the upcoming year during this open enrollment season, I invite you to take some time to calculate and appreciate their value. Think of it this way: if you were self-employed, you’d have to earn more than 50% more per hour to pay your own benefits costs plus the employer’s share of FICA taxes (Social Security and Medicare).

That’s assuming you could get similar pricing on insurance, which is unlikely. While there are many advantages to being your own boss, lack of access to group insurance coverages and retirement planning contributions aren’t in the plus column.

How to estimate the financial value of your benefits

Health insurance (typically $5,000 – $30,000)

Your health insurance is probably the most significant component of your benefits. How can you value what your employer contributes for you and your family, as well as the discount you receive on coverage for participating in a large group plan?

According to the 2018 Milliman Medical Index, the cost of healthcare for a typical American family of four covered by an average employer-sponsored preferred provider organization (PPO) plan is $28,166, with employers typically picking up 56% of the cost. That means that participation in their company sponsored health care plan is worth at least $15,788 for that family.

Of course your insurance costs may be different, and your employer may subsidize more or less of that. In my case, my employer pays 100 percent of my individual health insurance premium. My husband’s employer pays most of the coverage for him and our kids. Don’t dismiss the enormous financial value of company-subsidized health insurance just because it’s a common benefit in large companies. You’d have to earn nearly twice as much as the premium costs to pay for that insurance on your own after taxes.

Health Savings Account (HSA) (typically $500-$1,500 plus current and future tax savings)

More and more employers are also offering high deductible health plans in conjunction with a health savings account (HSA). In many cases, they’re contributing to the employees’ HSAs as well. Financial Finesse, for example, contributes $1,500 to my HSA, and I contribute additional funds pre-tax to get to the annual limit.

HSAs are a widely misunderstood and underrated benefit, and if you fully utilize your HSA, the long-term tax advantages can be significant to you in retirement. Whenever possible, I use other funds to pay my deductible and out-of-pocket expenses, so I can invest my HSA funds to grow tax-free. I save all my receipts for future reimbursement. If I follow that strategy for ten years and earn an 8 percent return, that HSA account would be worth around $50,000, which could be withdrawn tax-free by submitting accumulated medical and dental expenses.

Retirement plan (typically 2-6 percent of your salary in matching contributions)

According to the Society for Human Resource Management (SHRM), 42% of companies with employer-sponsored 401(k) plans match employee contributions dollar for dollar up to a certain amount. 56% of companies require workers to save 6% or more in order to receive the full employer-matching contribution. Your company may also make additional profit-sharing contributions to your account.

A typical employee with a $50,000 annual salary who earns an 8% annual return on their 401(k) contributions and has a 3% employer match would see an additional $73,628 in their account from the matching contributions after twenty years. (See calculation here.)

There’s also the value of having an employer-sponsored retirement plan in the first place. If you don’t have one as an employee, you won’t be able to save as much for retirement in tax-advantaged accounts. The consequence: employees without a work-sponsored retirement plan are far less likely to save for retirement. In fact, according to the National Institute on Retirement Security, 45 percent of working age households in the U.S. have zero retirement account savings.

Dental insurance ($1,500 – $4,500 annually)

The next time you have a cavity filled or need a crown, you’ll be grateful you have coverage to pick up some of the costs. Typically, dental coverage pays for half of certain procedures, as well as for preventative care, up to a certain limit per family member per year. Some dental coverage also includes benefits for orthodontics.

Disability insurance ($2,000 to $5,000 per year)

Premiums for insurance that replaces a portion of your income if you can’t work due to a non-work-related illness or injury can be paid for by the employer, employee or both. Purchasing this insurance as individual policies would be quite expensive.

Group policies are much less expensive per covered employee, so even if you’re paying some or all of the premiums yourself, you’re a getting a good deal — if you have access at all. According to the Bureau of Labor statistics only 25% of U.S. employees have access to both short and long term disability insurance benefits through their employer.

Life insurance ($250 to $500 per year)

Many large employers cover their employees with term life insurance at one times their annual salary. Supplemental term coverage is often available for a low, additional cost. The first $50,000 of group life is not taxable to you. The imputed value of coverage over that amount will show up on your W-2.

Employer contribution to FICA (7.65 percent of salary)

What is FICA and why does it get so much money from my paycheck?! FICA stands for Federal Insurance Contribution Act, e.g., Social Security and Medicare, and your employer pays just as much as you do towards both programs. The employer contribution adds up to 7.65% of your salary and bonus (up to a max on the Social Security tax). When you are retired and draw Social Security and utilize Medicare for health insurance, know that your employers were partners in getting you there.

Employee Stock Purchase Plan (ESPP) (typically 10% to 15% of market value per share purchased)

In a typical stock purchase plan, the employer offers employees the opportunity, but not the obligation, to purchase publicly traded company stock at a discount from the market value. Depending on how much you contribute, that can add up to thousands in discounts annually. Remember that your discount is taxed like income and taxes are withheld on it from your paycheck.

Tuition reimbursement (typically $1,500-$5,000 annually for approved coursework)

Many large companies offer tuition reimbursement for degree programs, professional certifications and courses related to your job. Reimbursement levels may depend on your grades. The first $5,250 of what your employer pays is excluded from your taxable income, but you may have to pay taxes on tuition paid in excess of that amount. (See the IRS guidelines here.)

Student loan benefits (typically $1,000-$2,000 annually, with a lifetime maximum)

Student loan repayment as an employee benefit is growing in popularity as the average student debt loan for those with a bachelor’s degree has hit $37,172. What’s that worth? For a student loan of $10,000 with a 6.75% interest rate, an extra $100 per month in company paid student loan benefits applied towards the principal could help pay off the loan in 55 months instead of 120 and save $2,144 in interest. (See calculation here.)

Unemployment insurance (0.3% – 1.5% of salary)

Under the Federal Unemployment Tax Act (FUTA), employers pay your unemployment insurance, not you, as well as most states. If you lose your job through no fault of your own, and you meet your state’s requirements, you can file for unemployment benefits for some period of time (which varies by state). Like all types of catastrophic insurance, you hope you won’t have to file a claim – but it’s comforting to know that it’s there if you need it.

Financial Wellness benefits ($500 – $2,500 annually)

If you’re fortunate to have access to employer-paid financial coaching and guidance, that’s like having a financial planner on retainer all year long. That could easily cost hundreds or even thousands of dollars a year. Use your financial wellness benefit to understand and maximize the value of your other employee benefits, as well as to take your personal financial plan to the next level.

Other great voluntary benefits

Your company may offer other voluntary benefits such as voluntary life insurance, gym membership, pre-paid legal assistance, commuter benefits, employee discounts, pet insurance, health and wellness programs, access to group long term care insurance, etc. The value can vary a lot. You will pay a cost for voluntary benefits, but because they are group plans, the cost is often much lower than what you would pay if purchasing them individually.

Adding it all up

What’s your estimate of what your employee benefits are worth? Add up the items and divide the total by your salary and bonus to see what percentage it actually makes up. When you look at those numbers, my guess is that you’ll appreciate those benefits more.

A version of this post was originally published on Forbes.

Coping With The Financial Side Of Mental Health Issues

September 27, 2018

The more people I meet, the more I realize that so many of us are suffering in silence from things like severe anxiety, depression, and other mental health or stability challenges. I’m always grateful when people open up to me about what they experience and how it’s impacting their ability to function and give what it takes to make a living. This enables me to pass this wisdom on to others in my work.

You are not alone

The most important thing I’ve learned so far is this: You are not the only one experiencing this. It’s ok to talk about it. Give yourself the freedom to admit it doesn’t feel normal. Give yourself the attention you need and the time to take care of you.

It’s such a sensitive topic and many don’t reach out and talk to anyone about what they are going through. They say that are suffering and they have a hard time functioning in the normal day to day activities. It also impacts their ability to show up for work – not just physically, but emotionally and mentally. It can have negative effects on their ability to earn stable income and manage their funds in general.

Addressing the medical issue is something I’ll leave to that profession, but if you have reason to believe that you may need to take some time away to address your mental health in the future, here are some things you can do to keep your finances in order.

Keeping your finances together when it feels like your head is falling apart

1) Get ahead of any negative impact to your finances – Think about what would happen if things get to the point where you need time off work and plan for that just in case. How much time might you need and would it be paid time off? Will you have to transition to a different role at work to have a more balanced lifestyle? What if the pay is less? Do some research to find out if you need to start shifting some things around in your life to allow for a period or no pay or lower pay.

2) Make a plan for how you would keep afloat if you are unable to work – I spoke with someone who had multiple breakdowns at work that would not allow her to function, despite how much effort she put into doing so. Her doctor recommended she take a leave from work immediately. What if that was your situation? How would that impact you financially? The last thing you need to do is worry about how you are going to make ends meet, when you’re supposed to be taking time off to take care of yourself and get yourself to where you need to be.

3) Budget for what you need to help you cope or heal – Make room in your budget not only for that gym membership, travel, massages or whatever it is that helps you to balance your life, but also to build your emergency fund. If you must cut back on how many hours you’re working, it’ll ease the transition if you are living below your means and if you have funds set aside to buy you some time while you seek the medical assistance or take the break away that you need.

Consider saving closer towards 6 months or more in your emergency fund, so that you will be able to access those funds while you take time off work to heal and potentially still have some funds left in that account when you return to work.

4) Understand how Social Security Disability Insurance and Supplemental Security Income might help you – If you meet the eligibility requirements, these programs provide monthly income in the event you are unable to work for an extended period of time.

5) Find out if any short-term and long-term disability benefit you have at work covers mental health – Learn about the eligibility requirements and approval process under your plan at work. Most pay a portion of your salary, typically 50-70% of your income, while you are out of work due to a disability. Get clear on any waiting periods, and budget accordingly for reduced or no income.

6) Prepare for a potential unpaid leave of absence from work under FMLA – The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. You may have to use your FMLA leave while receiving disability pay from work. Some employers require you to use up your paid vacation leave and paid sick leave or family leave for all or a portion of the time you’re on FMLA. Find out more about how that works here and be sure to know what your employer requires.

7) Look to your benefits at work for assistance – Your EAP can provide you with a referral to a counselor if you’re not certain how to address your mental pain – you typically receive a couple sessions free of charge, then have the option to continue via health insurance coverage (if available) or out-of-pocket.

If your employer offers financial wellness services, take advantage of it and get your questions answered and have a plan to cope with your situation before it becomes a strain financially.

8) Be mindful of medical costs by staying in-network and reviewing prescriptions ahead of time – One challenge to many healthcare plans is that there are very few in-network psychiatrists and therapists available on some plans. Do what it takes to stay in-network if at all possible, and if not, then interview providers by asking if they offer a sliding scale for patients without insurance assistance – many do.

If your doctor prescribes you any medication, work with her to make sure that your insurance will cover it as well. Many plans require prior-authorizations or have alternate meds they prefer, which can save you a bundle. If your doctor feels strongly about prescribing something that doesn’t have great coverage on your plan, she may be able to offer you a coupon or suggest a pharmacy that offers it at a lower price. Shop around.

You are your most valuable asset and you have to be healthy to give the best version of yourself. Be sure to make room in your life to take care of yourself and remember that extends to your mental health. Take advantage of the resources around you and know that it’s ok to talk about it and get the help that you need. I understand and there are many others out there who will as well and who are standing by to help you through this. You’ve already taken a step in the right direction by reading this blog to help you or someone you know who’s going through this.

The Little Known Loophole That Allows Some Families To Save Beyond The Max In HSAs

September 24, 2018

Health Savings Accounts (HSAs) are often bundled with high deductible health insurance plans and can be a great tax-advantaged way to manage out-of-pocket medical expenses, as well as supplement your retirement. They can also be confusing.

If they baffle you too, you are in good company. According to a recent survey by LIMRA’s Secure Retirement Institute, only about 51% of Americans feel secure in their knowledge of Health Savings Accounts (and this survey includes financial planners!). Let’s take a quick look at what you can save with a health savings account. (it might be more than you think!)

What is an HSA?

Although the rate at which medical costs continue to rise has tapered off somewhat, a cost that increases more slowly is still an increasing expense. This means our consumer dollars continue to get stretched each year. A Health Savings Account (HSA) can be one tool that helps offset these rising health care costs.

Think of an HSA as a special type of savings account where you can contribute money on a pre-tax (or tax-deductible) basis, and then use those dollars tax-free to pay for out-of-pocket medical costs, such as health insurance deductibles, prescription medication, eye glasses, dental work, hearing aids, physical therapy, etc. You can also use this tax friendly money to help with a few retirement expenses after age 65. It’s a pretty powerful way to save, when you really get to know it better.

Deal breakers

Not everyone is eligible to contribute to an HSA, however. You must meet these requirements (check out IRS Publication 929, Health Savings Accounts and Other Tax-Favored Health Plans, for more):

Be participating in a group or individual high deductible health plan (HDHP) at the time of deposit.
Cannot be enrolled in Medicare. Be especially careful if you plan to claim your Social Security retirement benefit while still working. Doing so will automatically trigger enrollment in Medicare Part A once you’re 65, and make contributing to your HSA no longer allowed.
Cannot have other medical coverage in addition to the HDHP, such as coverage under your spouse’s medical plan, simultaneous health coverage at a second job or even TRICARE for veterans.
Cannot participate in a Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) unless these are limited purpose accounts that provide benefits only for dental and vision.
Cannot be claimed as a dependent on someone else’s tax return.

Where to find an HSA

If your group health coverage at work includes one or more HDHP options, it probably also includes access to an HSA already. Your employer might even contribute some free money to the group HSA on your behalf. However, if your HDHP at work doesn’t include an HSA, or if you purchased your own high deductible insurance plan, you can go shopping for an HSA and make tax-deductible contributions to it (even if you don’t itemize).

There are literally hundreds of financial institutions offering HSAs these days. Each plan varies according to fees charged, opportunities to invest funds, interest rates paid, etc., so it pays to do some detective work first. Fortunately, the folks at Morningstar have already done a considerable amount of legwork with respect to evaluating and ranking various HSAs. Note that even if your workplace plan DOES come with a built-in HSA, you can always roll those funds into a different account if you prefer, just beware of any transfer fees.

“Please Sir, I want some more.” (how to super-save into your account)

Did you know that you can own and contribute to more than one HSA? Suppose your employer offers an HSA and contributes some money to it on your behalf each year. While you appreciate the benefit of additional free money, maybe you are not all that thrilled with the interest rate or investment options (if available) within that particular HSA. No problem. You can open a separate HSA on your own and make tax-deductible contributions to it.

Watch the limits

Make sure your contributions (and those of your employer) across all of your HSA accounts do not exceed the annual IRS contribution limits, however. For 2018, this means individuals can contribute a maximum of $3,450. Those with family coverage can contribute up to $6,900. Again, your employer’s contribution does count toward this maximum. HSA participants who are 55 or older can make an additional “catch-up” contribution of $1,000.

When it makes sense to open a second HSA

In some cases, you may need to open more than one HSA to take full advantage of maximum contribution limits. If you and your spouse share a single family HSA and you both are 55+, only one of you can make the $1,000 catch-up contribution to the HSA. The workaround is easy, though. One of you opens a second HSA to which you contribute your $1,000 catch-up contribution.

The loophole that could allow your family to save more than the $6,900 max

If you have an adult child still covered by your medical plan (under age 26, per the Affordable Care Act), the opportunity to stash some tax-free cash is even greater. As long as your adult child files his/her own tax return (HSA participants can’t be someone else’s tax dependent), (s)he can open up a separate HSA and contribute the family maximum of $6,900 per year.

That’s right; your single child can contribute up to the family maximum thanks to independent tax status and coverage under your family’s HDHP. Sure, it’s a loophole, but if and until Congress changes the law, there it is. As an added bonus, anyone can contribute to the child’s HSA – you, the child, grandparents, anyone.

Keep in mind though, that only your child can use those savings for their own or their future dependents’ medical expenses. But what a great way to help your child fund future medical expenses – remember that you don’t have to be enrolled in a HDHP to spend HSA dollars, so he/she could feasibly use these savings many years down the road toward your future grandchildren’s expenses as well.

How To Replace Important Documents

September 18, 2018

Replacing vital documents that may have been destroyed during a hurricane, flood, fire or other disaster can be overwhelming, and since you may not even need some of them for years, it’s easy to forget or not even realize what you’re missing until it’s a critical need and possibly too late. I know that if I lost my home or had it totally flooded, it would take me awhile to even start thinking of what I lost. To that end, I created a list of the items that would be the highest priority to replace, along with links to the various agencies that can help.

Although the process varies with the document type, these general steps can help you get started. Before diving in, keep in mind that many of these agencies may want to mail new documents to you. If the home that you list as address-of-record has been destroyed, you should contact your local post office first and ask if you can pick up your mail or have it forwarded to a new, temporary location prior to having new documents mailed out.

Identification (ID) Cards

State-issued identification

If your driver’s license or state-issued ID needs replaced, contact your state motor vehicle agency. You may need to provide other forms of ID that contain your photo, full name, and date of birth, so confirm with them what you’ll need to bring with you to prove your identity.

Social Security card

Contact the Social Security Administration (SSA) to request a replacement card. This service is free of charge, but there are pretty stringent requirements for proof of ID, so you may need to complete some of the other steps first. You can also call (800) 772-1213 or visit a local Social Security office.

Medicare ID card

The SSA can also help you replace a lost or destroyed Medicare card.

Medicaid ID card

Contact your state Medicaid office to request a replacement.

Permanent Resident (green) card

The U.S. Citizenship and Immigration Services (USCIS) can help you replace a lost or destroyed permanent resident (green) card.

Military ID card

Learn how to report a lost or destroyed military ID card and how to get a replacement. You’ll likely have to go to a local office to apply.

Passport

If your passport was lost, destroyed, or suffered water damage, you must report the loss immediately. Once you report it, it is invalidated by the State Department and can’t be used if it is found later. However, taking this step may be one of the first you need to take in order to provide proof of ID for some of the other documents you’ll need.

Replacing a damaged passport

Passports that have water damage can no longer be used. In order to replace it, you’ll need to apply in person at an acceptance facility or at a local passport agency. You will need the following:

The damaged U.S. passport
A signed statement explaining the damage
Form DS-11 (Application for U.S. passport)
Citizenship evidence (i.e., birth or naturalization certificate)
A photocopy of citizenship evidence
Present ID (in person)
A photocopy of ID
One passport photo
The ability to pay the fees

Replacing a lost passport

If your passport is completely gone, you will also need to apply in person and include the following:

Form DS-64 (Statement regarding lost or stolen passport)
Form DS-11 (Application for U.S. passport)
Citizenship evidence (i.e., birth or naturalization certificate)
A photocopy of citizenship evidence
Present ID (in person)
A photocopy of ID
One passport photo
The ability to pay the fees

According to my research, if your citizenship evidence was lost or damaged as well and you are unable to replace them before applying for your passport, you can request a file search for an additional fee if you have previously been issued a passport.

Expedited service

If you are traveling in two weeks or less or need a foreign visa in 4 weeks or less, you can make an appointment at a passport agency for expedited service. This is the quickest way to get your passport, but you will be charged an additional $60. You can make an appointment online or call (877) 487-2778.

Vital records

Birth certificate

If you were born in the U.S.

Find the vital records office in the state where you were born and check with them to see if you can obtain a certified copy of your birth certificate without any identification and follow the instructions.

A few states don’t require a government-issued photo ID, or they will accept other solutions like a sworn statement of your identity. Some states allow your mother or father whose name is on the birth certificate to submit a notarized letter with a copy of their own photo ID.
If you need to get a copy of your birth certificate quickly, ask the vital records office at the time you place your order about getting expedited service or shipping.

If you were board abroad or on a military base outside the U.S.

If you were born to American parents abroad, they should have registered your birth with the U.S. Embassy or consulate in that country and received a Consular Report of Birth Abroad. You can get a copy of this report from the U.S. Department of State. Depending on the country, a vital records office in the nation may also list the birth.

If your parents did not register your birth with the U.S. Embassy, you may have to contact the hospital where you were born. You may also try contacting the base operator or public affairs office for the appropriate military branch if you were born on a base.

If you were born abroad and adopted by a U.S. citizen

The country in which you were born issued your birth certificate, so that adds another wrinkle. If you need a replacement, contact the nearest foreign embassy or consulate for that country to get started. A child born in a foreign country and adopted by a U.S. citizen does not receive a U.S. birth certificate. If the document is in a language other than English, you should also seek the embassy’s help in getting the document translated if you require authenticated documents.

If you have a child who was adopted from a foreign country and you need their birth certificate, fill out an application for replacement of naturalization/citizenship form or contact U.S. Citizenship and Immigration Services for further help.

Marriage certificate

To obtain the document that proves you were married, contact the vital records office in the state or county where you got married. Even though the guidelines vary by state, all requests will require:

Full names of both spouses at time of marriage
Month, day, and year of the marriage
Place of marriage (city or town, county, and state)
Purpose for which copy of marriage certificate is needed
Relationship to persons whose marriage certificate is being requested
Daytime telephone number (include area code)

Death certificate

You may need to provide a copy of the death certificate of a spouse or other family member for a variety of legal reasons including life insurance claims, pension benefits for a surviving spouse, or spousal Social Security benefits; applying for Medicaid benefits; changing joint bank and credit card accounts, utilities, mortgages, vehicle titles, and leases; and remarrying.

If the death occurred in the U.S.

You can request a certified copy of a death certificate from the vital records office of the state or territory in which the death occurred. See the instructions for that state or territory for details such as fees, address to write to, and the requestor’s required identification. In addition to your state’s requirements, all requests should contain:

Full name of the person whose death certificate is being requested
Their sex
Their parents’ names, including maiden name of their mother
Month, day, and year of their death
Place of death (city or town, county, and state; and name of hospital, if known/applicable)
Purpose for which the copy is needed
Your relationship to the person whose record is being requested
Your daytime telephone number with area code

If the death occurred outside the U.S.

You will need to obtain a copy of the Consular Report of Death of a U.S. Citizen Abroad for U.S. legal proceedings. See Death of an American Abroad for details on obtaining a copy of this report.

Divorce decrees and certificates

A divorce decree is an official document from the court that grants the termination of a marriage. It includes specific details of the divorce and is issued by a state vital records office. A divorce certificate shows that a divorce occurred but does not state all of the same information as a divorce decree. Either may be required in a variety of instances later in life, so you’ll want to make sure you have a copy.

U.S. divorces

Divorce Decree: contact the “county clerk’s office” or “clerk of the court” for the county or city in which the divorce was granted.

Divorce Certificate: Contact the state vital records office in which the divorce was granted.

Overseas divorces

If the divorce occurred outside the U.S. and you are in the U.S., contact the appropriate country’s embassy or nearest consulate to find out how to get a copy of the divorce decree.

United States law does not require U.S. citizens to register a foreign divorce decree at an embassy. But if the foreign country in which your divorce took place is a signatory to the Hague Convention on the Authentication of Documents, you may bring your divorce decree to a U.S. Embassy or consulate to have it certified.

Military records

Request Standard Form 180 (SF-180) from any office of the Veterans Administration, American Legion, VFW or Red Cross, or download from government archives.

Take it one thing at a time

Some of these documents will be crucial to continuing daily life, so you’ll want to prioritize replacing them as soon as you can. Others can wait, but if you’ve lost any of these during a recent disaster, try to make time to slowly work on the process of obtaining replacements so you’ll have them when you need them.

Should You Purchase Voluntary Benefits?

September 10, 2018

This year at open enrollment, rather than just evaluating whether you should switch your health insurance plan, make sure you’re looking into all the benefits that your job offers, some of which can save you money throughout the year on things you need already. Here are some of the more common voluntary benefits and who they are best for:

Voluntary life insurance

What it is: Your job probably already provides you with life insurance equal to a multiple of your annual income, and many companies also allow you to buy more than that at a fraction of the price you would pay for a separate policy on your own. This is a great way to add more coverage if you need it. Heads up: in order to join the plan if you’re not just starting your job, you may have to undergo underwriting, which often involves a questionnaire and/or a physical exam.

Who it’s best for:

Parents who want to make sure their family would receive a pay-out if something happened to them.
Homeowners who would want to pass their home on to heirs without a mortgage attached.
Anyone concerned that they may not qualify for coverage in the future when they may need it.

Voluntary disability insurance

What it is: Again, your job probably already provides you with some type of disability, but there are varying levels of coverage and you may need more depending on your personal situation.

Why you might buy more:

The percentage of your income that would be covered due to a short or long-term disability would not be enough for you to live on.
You’re just getting started financially (or starting over) and have little or no savings to fall back on if you get hurt.
You’re the primary earner in your family and you want to avoid your family having to make major sacrifices should you become disabled.

Supplemental insurance

What it is: Unlike disability insurance which basically provides you with a percentage of your paycheck if you’re unable to work due to a short or long-term disability, supplemental insurance pairs with your health, dental or vision insurance to pay costs that your primary insurance might not pay. Most policies cover just one type of thing, like accidents or cancer or dental or critical-illness, so make sure you’re clear on what you’re covering and where you’re still vulnerable if you elect this coverage.

For example, let’s say you broke your leg while hiking on vacation out-of-state. Disability insurance would replace a portion of your income while you’re out of work healing, but you’d still have to pay all the medical bills that come along with such an injury. Supplemental accident insurance would kick in to help out with those bills, so if you found yourself laid up at an out-of-network hospital after being air-lifted out of the woods, you wouldn’t have to be in as big of a rush to get out or at least to a different facility where you knew your health insurance would cover more of the costs.

Who it’s best for:

People who are generally healthy so choose a higher-deductible health insurance plan, but want to be covered in case something does happen.
Someone with little or no emergency savings.
Anyone in a life situation where a medical issue could quickly devolve into a long-term financial crisis.

Pre-paid legal plans

What it is: You may have the opportunity to enroll in a group legal plan that offers access to legal services at little or no additional out of pocket costs to you. Most pre-paid legal plans offer free basic estate planning, legal assistance with traffic tickets and other common legal issues you may face. Make sure you know what’s covered though — a lot of people I work with own rental properties, but are surprised to learn that their workplace legal benefit doesn’t offer assistance with tenant issues, as it’s considered to be another “job.” (they usually help out if you are the tenant though)

The biggest mistake I see when people enroll in these plans is that they don’t use them — they sign up for a specific reason, then procrastinate the task and end up wasting a year’s worth of premiums.

Who it’s best for:

Anyone who needs their estate plan written or updated.
Anyone planning to buy or refinance a home or vacation home (but not rental property) in the coming year.
Someone considering bankruptcy.
Families planning to adopt.
Couples planning to marry who want a pre-nuptial agreement.

When it comes to open enrollment, it’s worth your time to review all the benefits available to you through your workplace. You may be surprised to learn what’s available to you, even things you’re already paying for outside of work! (I was able to get a 17% discount added to our family cell phone plan just by enrolling the package we already had in place) Most of us undervalue our benefits at work, when your workplace very well could be your best financial services provider!

Do You Really Need Renters Insurance?

August 30, 2018

Many years ago, when I was an apartment-dwelling single guy, I enjoyed living in a very comfortable bachelor pad — a one-bedroom apartment with a double garage beneath it. One Monday I came home from work at the same time as my neighbor, who was returning home after an extended weekend out of town.

As he pushed the automatic opener from his garage door, we watched it begin to rise, followed by a huge rush of water along with many of the items he stored in the garage. It all came gushing out into the parking lot as we helplessly watched. During the weekend it seems, the water heater in his apartment had burst and flooded the garage area beneath it. Not only did his apartment and its contents get flooded, but his neighbors on either side were also affected. (fortunately for me, he was not my next-door neighbor)

Freedom and flexibility in renting

Renting a house or apartment provides one with several measures of freedom and flexibility. Among these is freedom from responsibility (and homeowner’s insurance premiums) if your dwelling is damaged by someone or something other than you. But what about your furniture; your electronics; your other treasured belongings?

Who pays if your worldly goods are damaged or stolen? Also, what if one of your dinner guests trips and falls, or your dog bites a visitor who now needs medical attention? Your landlord generally isn’t liable for those expenses, and your lease typically only covers damage to the dwelling (not caused by you) and does not provide protection for its contents or your personal liability.

How renters insurance helps

I don’t recall if my neighbor at that time had renters insurance (I certainly hope so), but I distinctly remember his anguished expression as he watched his drenched valuables float out into the parking lot. According to the Insurance Information Institute, only 41% of renters have renters insurance, compared with 95% of homeowners who do have homeowners insurance.

To be fair, most mortgage lenders require homeowners to carry homeowners insurance. It is not as likely that your landlord will insist on your buying renters insurance as a condition of your lease, however. But that doesn’t mean you don’t need renters coverage. If you own anything of value, you very likely do.

More affordable than you think

Renters may skip buying insurance because they assume it is too expensive. However, for the cost of a gourmet pizza or a modest caffeine habit at your local coffee shop, you could easily protect $40,000 worth of your belongings and provide $100,000 of personal liability protection for an average cost of about $17 per month.

Most of our budgets could handle this minor adjustment, considering how much cash it would take to replace all your valuables or to recover from an unlikely but expensive lawsuit. In general, your renters policy needs to do three things for you:

Replace your personal property
Offset the expense of a liability lawsuit
Cover your living expenses if your rental unit is severely damaged and unlivable.

Real money

The actual cost of your renters insurance will depend upon several factors. If you elect a higher deductible – the out-of-pocket expenses you must pay for each claim – your insurance premium will be less. Likewise, choosing actual cash value coverage for your possessions is less expensive than electing replacement value coverage, although the cheaper policy will only pay you the “used” value for your stuff. If you’d rather not buy used, you might need to opt for the pricier replacement value coverage.

Exploring discounts

Your insurance company may offer some discounts if you purchase multiple types of coverage through them. Ask your auto insurance company if they also provide renters insurance at a discount if you buy it from them as a current customer. If your rental unit has smoke detectors or a security system, these might be worth additional discounts on your insurance premium.

Buying a renters insurance policy can definitely seem like just another bill to pay. It can also feel like a real lifesaver if you come home to a fire, flood, or storm damage (or a neighbor’s wonky water heater) and discover your destroyed or missing possessions are no longer all that valuable. I never had to use my renters insurance back then, but after enduring numerous hurricanes (and one tornado), my homeowners insurance has paid for itself several times over.

If it’s worth owning, it’s worth insuring.

Are You Taking The Same Risk That Could Cost The Queen Of Soul’s Family Privacy?

August 27, 2018

By now you’ve probably heard about the passing of Aretha Franklin, the “Queen of Soul.” What you may not have heard about is the big mistake she made, one shared by a majority of Americans. She didn’t have a will. People often don’t get wills because they feel they don’t need one or can’t afford it. Let’s take a quick look at each of these common misconceptions:

If you think you don’t need a will

There may be some truth to this. If you’re single with no children and few assets, you may be fine with your state’s default rules (called “intestacy”) for people who die without a will. For example, I’m unmarried and have no children and am okay with my non-retirement assets going to my parents, so I don’t have a will. (My brother is the primary beneficiary of my retirement accounts for tax purposes.)

However, if you have minor children, you need a will to determine who their guardian would be. It’s probably not something you want a court to decide. You probably also want more of say in who would inherit your assets and perhaps would like those details to remain more private than intestacy allows for.

If you think you can’t afford a will

First, check with your employer. Many offer access to free online estate planning documents as an employee benefit. There are also a host of web sites that offer wills and other basic legal documents for free (like doyourownwill.com) or a relatively low cost (like Nolo, Legal Zoom, and Rocket Lawyer). These online services may not be as good as hiring an estate planning attorney (especially if your estate is complex or you think it may be contested), but it’s still better than not having one at all.

If you prefer to hire an attorney, check again with your employer. You may have a pre-paid legal benefit that allows you to get free or low cost legal services, including estate planning with an attorney. You can sign up for the benefit (typically not until open enrollment), get your documents drafted, and then cancel or not renew it.

What was Aretha’s reason?

Of course, neither of these objections applied to Aretha Franklin. She was 76 years old, had four children, and was worth roughly $80 million. She was also advised by her lawyer to draft a will…so why didn’t she?

Like almost half of respondents in one survey, she probably just never got around to it. Procrastination is our biggest enemy when it comes to estate planning. After all, the topics aren’t exactly the most fun things to think about it and we don’t get a statement about it each month to remind us to.

We also tend to think we’ll have plenty of time to do it later…until it’s too late. So don’t be like Aretha Franklin (unless you can sing like her – then be like Aretha Franklin). Get your will done ASAP!

How To Save Money On Car Insurance

August 22, 2018

Has your auto insurance been going up and up despite no new claims or changes to your situation? This is common, and a great reason to shop around for new insurance. The last time I went through this process, I did end up finding a new company to insure my vehicles, but not without learning a few things along the way. If you’re in the market for car insurance, here are some things you should know:

Always compare apples to apples

Any insurance company can “save you 15% or more on car insurance” just by changing the amount of coverage or the deductible, so review your current policy’s declarations page and be sure you have the right level of coverage before shopping around.

If you have an existing relationship with an insurance broker, ask them to review your policy. You may also want to ask friends or family what they are paying. I prefer to use online resources such lowermybills.com or insure.com to do my comparison shopping.

Since the rates quoted online were comparable to the rates quoted by a local agent, I decided to work with the agent. That way, if I should ever have to file a claim, I will have a name and a face I can hold accountable.

See if your current policy has a fee for discontinuance

Once you find the policy with the best value for your preferred level of coverage, check with your existing policy issuer to make sure there are no fees for cancellation. I learned this the hard way when I procrastinated buying new insurance and found out that my previous insurer charged a fee when canceling during the policy year. Had I made the switch three weeks earlier—at the time of renewal—I would have been spared the 17% cancellation fee.

Not all insurers have this fee, so if yours does and you are looking to make a switch, wait until the policy is up for renewal. Needless to say my new insurer does not have this fee.

Bundle to save (if you can)

The policy I ended up with will save me around $20 a month, but it could have saved me more. Most insurance companies offer a multi-policy discount on their auto insurance policies when you carry another form of insurance, such as a homeowner’s or renter’s policy.

It’s worth noting that some insurance companies will require you to be claim free for a certain period of time before they are willing to underwrite a policy. Because I had made a claim on my homeowner’s insurance policy about a year before, my new auto insurance carrier was unwilling to underwrite my homeowner’s policy for at least another two years.

Saving on roadside assistance

On a final note, if you have roadside assistance through a travel club such as AAA, you may want to see what kind of roadside assistance is available through your insurance company. Sure, they may not have flashy bumper stickers or give you a 10% discount when you check in to a hotel, but if all you really need is a tow truck in case of a breakdown, your auto policy may be able to provide you this service at a fraction of the cost.

I’m not saying the cheapest policy is always the best, but all things being equal, saving $20 to $30 a month in car insurance adds up. And besides, it’s your money! I’m sure you can find some better uses for it.

3 Different Ways To Use Your HSA For Medical Bills

July 26, 2018

Are you trying to pay off medical bills? Did you have an HSA-qualified health insurance plan when you incurred the medical expenses? If you answered yes to both of those questions, there are a few ways that an HSA can help save you money:

When you have a balance in your account: just pay the bills

This one is the most obvious. After all, that’s what it’s there for, right? On the other hand, even if you have money in your HSA, you may not want to use it if you have other savings you can use. That’s because your HSA money can be invested and be used tax-free for future health care expenses or penalty-free for any purpose after age 65. Why take money out of an account that’s growing to be potentially tax-free when you can take it out of a taxable account?

If you don’t have a balance: get an immediate tax deduction

Even if you don’t have anything in your HSA, it can still give you a nice tax break. That’s because you can take the money you plan to use to pay the medical bills (whether from other savings or a loan) and first contribute it to your HSA to get a tax deduction and then withdraw it from the HSA tax-free for qualified medical expenses. If you’re in the 24% tax bracket, that’s like getting a 24% discount on those expenses! (this assumes that you haven’t already deposited the maximum amount for the year)

If you can’t make a deposit before paying: pay yourself back with tax-free dollars

If you neglected to contribute the money to your HSA before paying the medical bill, no worries, you can still get the tax break. That’s because you can withdraw the money tax-free for qualified expenses at any time, even after you’ve paid them. It doesn’t even have to be in the same year you had the expense or paid the bill, as long as you were eligible for the HSA at the time the expense was incurred. For example, you can have an expense in 2018, pay the bill off in 2019, and reimburse yourself tax-free in 2024 after you’ve had time to contribute to it. (more about this in Rynda’s post)

No one likes paying medical bills. (Talk about adding insult to injury after an illness or…injury.) If you have an HSA, you can at least make them slightly less taxing though.

What Are Your Health Insurance Options If You Retire Before Medicare?

July 20, 2018

Early retirement is a very common goal, although how exactly do you define “early?” For most people, early means stopping work before the availability of benefits that are used by retirees like Social Security and Medicare. Uncertainty over whether retirement savings can stand up to several years without these programs is often the reason people put off retirement.

If you have dreams of sleeping in or traveling the world before you’re eligible for retiree benefits, all is not lost. As is the case with any goal, you must decide to face it head-on and find ways to make it work within your financial plan. Here are a couple of ways to address meeting your medical care needs if you choose to retire prior to age 65.

Option 1: Obtaining insurance through the federal marketplace

Pros

You have the possibility of finding health coverage similar to what you have with your employer – Due to the implementation of the Affordable Care Act, coverage from your employer and coverage through healthcare.gov offer similar coverage benefits, deductibles and premiums.
You may be eligible for subsidies depending on your income – The cost of coverage for health insurance through the federal exchange is correlated to how much income you report. In some cases these subsidies can bring the cost of coverage in line with what you are currently paying through work.

Cons

Coverage can be very expensive – Without the subsidies, you are exposed to the full brunt of the cost of healthcare. Depending on where you live and the size of the deductible you choose, costs can approach $1,000 or more per month. While you may want to maintain the deductible you have through your employer, you may need to increase it in order to make premiums affordable.
Changes in laws pertaining to the Affordable Care Act can make it difficult to plan – The laws that govern the plans that are available on the exchanges have changed substantially over the past year and there is reason to believe that there are more changes to come. This can make it very difficult to plan the cost for this line item in your budget going forward.

Option 2: Use COBRA coverage

Pros

You can maintain your same coverage – The Consolidated Omnibus Reconciliation Act or COBRA is a rule requiring employers to offer you access to coverage after separation of service for a certain amount of time. So rather than searching for a similar plan, you can use the same plan.
It may still be at a lower cost than coverage through healthcare.gov – The cost of coverage is essentially what you would normally pay in premium plus what your employer pays. If you work for a large company, the total cost can still end up being cheaper than going it alone in the Exchange because of the cost savings the employer may have negotiated.

Cons

Coverage is available for only 18 months in most cases – Because the coverage only lasts 18 months in most cases, COBRA is only a temporary fix for an early retirement. Once the coverage goes away, the exchange may become your primary option.
It is still substantially more expensive than what you probably pay today – If your employer covers a large portion of the cost of your insurance benefit, you may experience sticker shock.

Start planning now

As you can tell, both options have some drawbacks but you have no way of knowing how much of a drawback unless you do some research. Here are some things you can do to plan now:

Contact HR: If you think COBRA is a likely option, reach out to your benefits department to find out how much it costs today. In the case of insurance on the Federal Exchange price it now. Yes, there is a reasonable likelihood the pricing will change, but it will give you a baseline to plan.
Beef up your HSA: If you have an HSA, make sure you’re maxing out your contributions to the account now. You can use the account to pay for COBRA tax-free. HSAs cannot be used to pay health insurance premiums from the exchange, but they can be used to offset out of pocket medical expenses. (and they can also eventually be used to pay for Medicare premiums)
Consider investing in vehicles that will not show up as future income: By investing in accounts like Roth 401ks and IRAs, you can lower the amount of taxable income you generate in a year when you withdraw from these accounts. This may help you to qualify for Healthcare Exchange subsidies and will eventually allow you to keep your Medicare premiums down as well.

Should You Purchase Life Insurance With Long Term Care?

June 20, 2018

If you have dependents, you might need life insurance. If you’re in your 50’s to mid-60’s with $200k to $3 million in assets, you may also need long term care insurance. Why not buy both together?

That’s the question presented by hybrid life and long term care policies and life insurance policies with a long term care benefit rider. Let’s take a look at some of the pros and cons:

Pros

It can be easier to qualify for. The long term care underwriting can be more lenient when bundled with a life insurance policy. For people who can’t qualify for standalone long term care policies, it may even be the only option.
You may have a life insurance policy you no longer need or want. In that case, it can make more sense to transfer the policy to one with long term care benefits rather than to simply let it lapse. This can be especially useful since the need for long term care insurance tends to coincide when people’s children become financially independent and the need for life insurance goes away.
It can be an easier pill to swallow. Many people are reluctant to spend so much on a long term care policy that they may never use (and hope not to). On the other hand, life insurance is something that we know will eventually pay out if it’s kept in force. This way, it won’t feel like the premiums are potentially being “wasted.”

Cons

You could be paying for life insurance you don’t need. At the same time, the long term care benefit is often not enough to cover the total cost of care. In that case, the money could be better spent buying more long term care coverage.
You forego the benefits of long term care partnership programs. If you purchase a traditional long term care insurance policy through a state partnership program and use up all the benefits, you can qualify for Medicaid coverage and still keep an additional amount of assets equal to the long term care insurance coverage you purchased. A life insurance policy won’t offer the same asset protection.
They can be more complex. Make sure you understand the fine print. These policies are not standard in terms of how much will be available for long term care coverage and how you can qualify.

For the reasons above, I typically suggest people consider purchasing a standalone long term care policy. However, if you can’t qualify for regular coverage or if you have a life insurance policy you no longer want or need, a hybrid might make sense. Just remember that a “suboptimal” policy is still better than no policy at all.

Why You Should Max Out Your HSA Before Your 401(k)

April 25, 2018

Updated for 2021 limits

Considering that most employers are offering a high-deductible HSA-eligible health insurance plan these days, chances are that you’ve at least heard of health saving accounts (“HSAs”) even if you’re not already enrolled in one. People who are used to more robust coverage under HMO or PPO plans may be hesitant to sign up for insurance that puts the first couple thousand dollars or more of health care expenses on them, but as the plans gain in popularity in the benefits world, more and more people are realizing the benefit of selecting an HSA plan over a PPO or other higher premium, lower deductible options.

For people with very low health costs, HSAs are almost a no-brainer, especially in situations where their employer contributes to their account to help offset the deductible (like mine does). If you don’t spend that money, it’s yours to keep and rolls over year after year for when you do eventually need it, perhaps in retirement to help pay Medicare Part B or long-term care insurance premiums.

Not just for super healthy people

But HSAs can still be a great deal even if you have higher health costs. I reached the out-of-pocket maximum in my healthcare plan last year, and yet I continue to choose the high-deductible plan solely because I want the ability to max out the HSA contribution. Higher income participants looking for any way to reduce taxable income appreciate the ability to exclude up to $7,200 per year from taxes for family coverage (plus another $1,000 if turning age 55 or older), even if they end up spending the entire amount each year. It beats the much lower FSA (flexible spending account) limit of $2,750 even if out-of-pocket costs may be higher

Even more tax benefits than your 401(k)
Because HSA rules allow funds to carryover indefinitely with the triple tax-free benefit of funds going in tax-free, growing tax-free and coming out tax-free for qualified medical expenses, I have yet to find a reason that someone wouldn’t choose to max out their HSA before funding their 401(k) or other retirement account beyond their employer’s match. Health care costs are one of the biggest uncertainties both while working and when it comes to retirement planning.

A large medical expense for people without adequate emergency savings often leads to 401(k) loans or even worse, early withdrawals, incurring additional tax and early withdrawal penalties to add to the financial woes. Directing that savings instead to an HSA helps ensure that not only are funds available when such expenses come up, but participants actually save on taxes rather than cause additional tax burdens.

Heading off future medical expenses
The same consideration goes for healthcare costs in retirement. Having tax-free funds available to pay those costs rather than requiring a taxable 401(k) or IRA distribution can make a huge difference to retirees with limited funds. Should you find yourself robustly healthy in your later years with little need for healthcare-specific savings, HSA funds are also accessible for distribution for any purpose without penalty once the owner reaches age 65. Non-qualified withdrawals are taxable, but so are withdrawals from pre-tax retirement accounts, making the HSA a fantastic alternative to saving for retirement.

Making the most of all your savings options

To summarize, when prioritizing long-term savings while enrolled in HSA-eligible healthcare plans, I would strongly suggest that the order of dollars should go as follows:

Contribute enough to any workplace retirement plan to earn your maximum match.
Then max out your HSA. (For 2021, the maximum annual contribution, including employer contributions, is $3,600 for single coverage and $7,200 for family coverage, plus a $1,000 catch-up contribution for HSA holders age 55 and older.)
Finally, go back and fund other retirement savings like a Roth IRA (if you’re eligible) or your workplace plan.

Contributing via payroll versus lump sum deposits
Remember that HSA contributions can be made via payroll deduction if your plan is through your employer, and contributions can be changed at any time. You can also make contributions via lump sum through your HSA provider, although funds deposited that way do not save you the 7.65% FICA tax as they would when depositing via payroll.

The bottom line is that when deciding between HSA healthcare plans and other plans, there’s more to consider than just current healthcare costs. An HSA can be an important part of your long-term retirement savings and have a big impact on your lifetime income tax bill. Ignore it at your peril.

How To Decide If You Need Umbrella Liability Insurance

April 18, 2018

In today’s extremely litigious society, it’s not usual to hear stories of people suing other people for things like injuries, property damage, medical costs or even for libel and slander. It’s also not uncommon to hear how that process often leads to the defending party declaring bankruptcy, sometimes for a thing that they had insurance to cover, like a car accident. It wasn’t because the person didn’t have insurance, it was because they weren’t adequately insured with the right type of insurance.

I used to think that umbrella insurance was only for rich people who had a lot of investments to protect, but I’ve reconsidered. With pre-teens who often have friends over and a rambunctious dog around the house, we are by no means swimming in money, but heaven forbid, should one of those kids get injured on our property, I want to make sure that we wouldn’t have to sell our home in order to pay for any expenses resulting.

What umbrella liability insurance covers

Umbrella coverage is an often-underutilized type of insurance that covers you in case of a lawsuit that exceeds the regular coverage provided by your automobile, homeowner’s, or renter’s policies. Umbrella insurance also provides coverage for claims that may be excluded by other liability policies related to issues such as false arrest, libel, slander, and liability coverage on rental units you own.

While you may already know that the cost of this extra peace of mind is reasonable, the main point is that for around 50 cents to a dollar a day (as a very rough average), umbrella or excess liability insurance, kicks into effect when the protection from your regular policy is completely exhausted.

Above and beyond your standard coverage

For example, while your homeowners or renters insurance policy might provide liability protection of up to $300,000, an umbrella policy can add between one and 10 million dollars of extra protection. In this highly litigious world, it’s not unusual for settlements and legal costs to exceed that $300,000 figure.

A common myth is that umbrella insurance is only for the super wealthy. The somewhat eye-opening reality is that if your assets (including retirement accounts and, in many states, your home equity) and your future income exceeds the liability limits on your auto and renter’s or homeowner’s policy, you could have major problems should you ever end up being faced with a major lawsuit. It is not inconceivable for middle-class families to lose almost everything and even have their wages garnished to satisfy a lawsuit arising from a serious car accident, freak injury at their home, or accusation of libel or defamation of character. Even if you win the lawsuit, an umbrella policy can help recover some of your legal costs.

Are you at risk?

There are certain situations or life circumstances that could put you at a higher risk. Here are two ways to evaluate your potential need for umbrella coverage:

If you own a dog, have a pool, have a trampoline or other playground equipment, or have a teenage driver in the household you may be at a higher risk due to higher risk for accidents or injury on your property or on your watch.
Ownership of assets such as a primary residence, retirement accounts, brokerage accounts, vehicles, boats and recreational vehicles are also at risk, so if you have a lot of stuff, you will want to protect these assets with an umbrella policy.

Finding coverage

To learn more about umbrella policies and to get a quote, a good place to start is by reaching out to your home and auto insurance agent — there are often discounts for bundling policies. You may also want to check any professional organizations or clubs you belong to. For example, my college alumni association is always sending me promotional material for a group policy discount offered to all alumni. You may also want to check with your HR to see if there is a discount program offered to employees that you can sign up for during open enrollment.

Insurance may not be the most exciting topic and contemplating the need for it can be downright depressing, but ignoring it can leave you or your family in dire straits. So do your family a favor this spring and make sure you’re properly insured.

The Important Estate Planning Step You Can Take Right Now For Free

April 16, 2018

Along with contemplating wills and death, putting together a set of medical directives and a living will is right up there amongst our least favorite things to do. Realistically, it is also a very important thing to do.

As in do it right now, after you finish reading my blog post. You can even take care of it before you finish reading. I’ll make it easy for you. You can do it right now if you want. You don’t even have to get up.

I’ll wait. Still avoiding it, eh?

What’s the worst that could happen?

Okay, let’s see what could happen if you don’t quite get around to writing down your wishes regarding your medical care. What’s the worst that could happen? Well, I hate to be brutal, but the worst that could happen is that you could find yourself on life support someday as your spouse and family agonize over what to do for you. Let me tell you a story about that.

Meet Terri Schiavo

Terri’s tragic story unfolded in my home state of Florida. In short, Terri was a young woman whose heart stopped and deprived her brain of oxygen for a prolonged period. Although her body survived the ordeal, her major brain functions did not and she was kept alive with a feeding tube. Terri did not have a living will to tell her family about her wishes for life support, and subsequently her husband and her parents battled in the courts over whether or not to allow her to die. (See this article for more details)

Terri’s predicament and the headlines that followed dragged on for years. Fifteen years, actually. Fifteen years of mental anguish, legal battles, and expenses for her family. Although it is a sad story, her situation brought to light a very important issue for us all — we all, no matter how old, need to complete our own living will and medical directive.

Living will or medical directive – do you need both?

What’s the difference between a living will and a medical directive, you ask? Excellent question. Also known as advanced directives, medical directives are instructions that you specify verbally or in writing (best if you write them down) regarding what kind of health care you prefer if you are unable to communicate your wishes on your own.

Your living will is a type of advance directive used to describe your wishes regarding resuscitation efforts, quality of life, and to what extent you do or do not want life prolonging treatments applied if you become terminally ill. This is the document that could have helped Terri Schiavo’s family potentially avoid the 15 years of difficulty and expense they endured.

Not just about end-of-life care

Your advance directives do not have to be limited to only to end-of-life decisions. Legal and medical professionals recommend also drafting another type of directive known as a durable power of attorney for healthcare. Since trying to specify every potential situation in your living will would be impossible, you can use a healthcare power of attorney to authorize someone else to make decisions on your behalf regarding your medical care if you are incapacitated, but not necessarily terminally ill.

How to put these documents in place, preferably ASAP

Anytime you begin drafting legal documents, it is highly recommended that you work with an attorney. And working with an attorney will take time and money — one of the primary reasons we put off drafting these important legal documents. I get it. So let’s skip the attorney – for now – and take care of the basics. Earlier, I said we could create your living will right now. We can also do it absolutely free. So let’s do that. Here’s how:

MyDirectives.com

MyDirectives is a free service that makes it easy for you to quickly draft your own medical directives and share them with your family and your doctor. You can also include video instructions, in addition to checking the boxes next to prepared statements. Quick. Easy. Free. And yes, it also includes a mobile app now. I’ve used this service myself, because like you, I procrastinated for a long time about getting this done.

Five Wishes

Another free service (for one year) is provided by Aging with Dignity. Using their Five Wishes tool, you can quickly and easily draft an advanced directive document by checking a few boxes, circling some directions, or writing a few sentences. Is it legal and binding in your state? They help you address that question as well.

In many cases, all you need to do is answer a few questions, print it, sign it, and have it witnessed. Simple. Easy. Free. Some states may also require you to use a state approved form, so check your state requirements while you are visiting the site.

Still putting it off?

I’m right there with you. I don’t like to think or talk about this depressing stuff, either (and it’s my job to talk about it). I’m hoping you’ll do me and your family a huge favor and at least take care of your living will. Not only because it’s the right and responsible thing to do, but mainly so we both won’t have to keep talking about it. You might even save your family from being forced to talk about it for years like Terri’s family did.

Should You Have Provisions For Your Pet In Your Estate Plan?

April 06, 2018

The idea of including your pet in your estate plan may sound odd or eccentric – like something a Hollywood diva would do – but it has started to become a more mainstream idea. I wrote recently about our beloved dog Nick and how we were wrestling with whether or not it was time to let him go with dignity.

Sadly, the time has come where the humane thing to do is to let him go and end his suffering. I was grieving with a friend when he pointed out that’s the unfortunate thing about pets: you have to live through the pain of them passing away before we do.

That got me thinking.

What happens to your pets when you’re the first to go?

What about those times where it isn’t true? How do you handle a pet when you pass away before they do? Is there a legal way to plan for this?

The simple answer is yes – there are several options for how you can make sure that your furry family member is loved and cared for after you are gone. But it does take some planning ahead. Here are three ways you can make sure your furbabies are cared for in case something happens to you.

Nick during better days

1. Have a written agreement with a friend or family member who loves your animal

This is the easiest and least expensive option – you can can do this yourself at home.

Things to know:

Draw up a letter or document specifying who should care for your pet in the event you’re unable to.
Have it notarized if you choose.
Provide a copy to the pet’s new “guardian.”
Keep a copy at at home and another copy with your Will and other estate planning documents.

Other important considerations:

The benefit is that this is obviously cheap and easy. The down sides are that there is no succession plan if something changes with your chosen guardian, and it may be awkward to change if you change your mind later. There is also a very real chance that your agreement would not stand up to a legal dispute.

2. Include instructions for your pet/future pets in your Will

This can be done at little to no extra expense if you are already going to create or update your Will.

Things to know:

If this requires a change to your plan, then there will be some kind of legal fees involved.
As always, check and see if your employer offers a free will through an Employee Assistance Program (EAP) or an optional pre-paid legal benefit to help reduce costs.
By using your will, you have the ability to name a guardian and successor guardian for your pet, just like you would your minor children.
You can even leave them extra money to care for the pet or have your will create a fund that can only be used for the pet.

Other important considerations:

This is a much more comprehensive approach than the first, but it can cost some legal fees to set up. If you use this approach, do be sure to notify the guardian that you’ve named and the executor of your will of this provision. Often the will isn’t read or filed for a few days or even weeks and your companion animals will need immediate care after your passing.

One of my colleagues worked with a Will that had provisions for the pet but because no one knew about it, the cat changed hands a few times and ended up with someone who didn’t want the cat… just the money that was provided for the cat’s care.

3. Establish a Pet Protection Agreement

This is a separate document from your Will — essentially it is a Trust established just for the care and maintenance of your pets.

Things to know:

A Pet Protection Agreements (PPA) allows you to name everything that you can think of, including:
- Who cares for your pet(s) now and in the future
- Whether any money is left for their care
- What type of end of life care you do or do not want your pets to have
- Even what happens to any money left over from caring for your pet
Most states (but not all) recognize PPAs as official estate planning documents
They can be distributed in advance so people know who has authority to take in your animals
The best news is that they don’t have to be expensive!

Other important considerations:

You can have your attorney draft this if you are already doing your other documents but there are also sites online such as LegalZoom and PetTrustLawyer that can help you create your own PPA for roughly $20 – $50. If you do create your own PPA and leave money as part of it, be sure that you either have the cash to fund it now or you at least create a provision in your Will or Revocable Trust to provide the actual cash to fund it.

Making it to the Rainbow Bridge first

Sadly, no amount of planning will bring back the cherished pets that have passed before us, but you can take some pretty simple steps today to give you peace of mind that any pets who outlive you will be treated with the same love, care and respect as if you were still with them.

The 6 Essentials Of Disability Insurance

April 02, 2018

It is easy to imagine experiencing a house fire and needing homeowner’s insurance coverage. We have heard the horror stories of the consequences of not having enough life insurance. But what about insuring what’s arguably your most valuable asset: your paycheck? Disability insurance is the coverage that kicks in if you find yourself unable to work, either for a period of time or for the rest of your life.

A 1 in 4 chance you’ll need it

According to the Social Security Administration 1 in 4 workers over the age of 20 will experience the need for income protection during their working years. Your ability to earn money is the most powerful asset you’ll have during your working year — other assets you’ll accumulate don’t even come close. The average high school graduate is expected to earn just under $1 million over their working career — the numbers just go up for those with college degrees.

Insuring your goals

How you harness that income determines the place you live and the lifestyle you maintain. Your retirement depends heavily on how much of your income can you set aside while you are working. In short, disability coverage protects your ability to achieve your financial goals.

Despite its importance, I find that most people are unaware of the specifics of their disability insurance unless they have been faced with the possibility of needing the coverage. If you ever need to make a disability claim, it will quickly become clear that the specifics matter. Here are some questions you need to ask yourself to make sure you have adequate coverage.

The essentials of disability coverage – what you need to know

1. Should you go with group or individual coverage?

Group: Many people work for employers who provide disability insurance as a paid employee benefit. As part of that, you may be able to purchase supplemental coverage that you pay for yourself. Being part of a group plan has some advantages:

Premiums are usually lower
Your employer has done the research for you
A medical exam may not be required

Individual: Having your own policy that’s not tied to your work can have advantages as well. Although you have to qualify medically, once your insurance is approved, that coverage remains in effect as long as you pay your premiums. Other advantages:

You can tailor your coverage to your specific needs
Tax free benefits (since individual policies are paid with after-tax dollars)
You don’t have to worry about losing coverage if you leave your job

Which way you go will be decided by your job stability, affordability and perhaps your own health — if you have a condition that could impact even getting individual coverage, it will be important to enroll in your work-based plan during the window that doesn’t require underwriting (which could only be when you are initially hired).

2. How much income can you insure?

One long-held theory regarding disability insurance asserts that a person would have little incentive to recover from an illness or injury if their policy paid a benefit equal to 100% of their salary. For that reason, most policies cover between 60% – 70% of your income. In many cases, group policies only cover 50%-60%. That would be one reason you may want to look into purchasing supplemental coverage to get you closer to 70%.

3. How long is the waiting period?

This is the time between when you become disabled and when you can start collecting benefits, sometimes also called the “elimination period.” During this period, no benefits are paid to you. Typical waiting periods depend on the type of coverage you have:

For short-term disability insurance provided by your employer or the state, the waiting period can range anywhere from 0 – 14 days.
For long-term disability group or individual policies, it can range anywhere from one month to a couple of years. Generally, the longer the waiting period, the less you (or your employer) pay.

Rule of thumb: long-term policies with a 90-day waiting period are typically the most cost efficient. Hence the other rule of thumb about your emergency fund being able to cover at least 3 months worth of expenses.

4. What is the benefit period?

The second timeline you need to understand is how long your policy will pay you once it kicks in. Short-term disability policies are typically provided by employers, and they usually pay anywhere from 30 days up to 52 weeks (aka 1 year).

Long-term disability policies pay for a specified number of years as outlined in the terms of the policy. If you have employer-provided coverage, the short-term and long-term usually coordinate. Most long-term policies pay for 2 – 5 years, with the best policies paying until you turn 65.

5. How does Social Security fit into this picture?

It’s true that Social Security pays disability (“SSDI”), but there are limitations, some of them major. Things to know about that include:

SSDI doesn’t cover short-term disability or partial disability. Your disability must be TOTAL – which means it’s expected to last at least one year or result in your death.
If you are approved, there is a five-month waiting period before benefits begin.
It’s difficult to qualify. More than half of all initial disability claims are denied by the Social Security Administration.

6. How does workers compensation affect disability?

Workers compensation only pays if your disability is work-related (i.e., injured on the job), and it offers only limited protection. How much you receive and what disabilities are covered varies by state. For information on your state, visit www.workerscompensation.com. It’s best not to rely on workers comp, which is provided by your employer, as your sole disability coverage.

The best policy: take care of you

Regardless of what disability coverage you have, nothing beats a policy of taking care of your health. To the extent that you can, take every opportunity to care for yourself. Make sure you are following the best practices for preventative care like scheduling your annual check-ups and getting those screenings when you hit certain ages. Visit your dentist and floss. If your employer offers wellness initiatives, take part in them — good health is priceless (plus you may earn some incentives).

It’s true that even the healthiest of us can get seriously sick or injured no matter what — sometimes there’s nothing we can do about it. But we can prepare for the financial impact a disability may create for us.

Take action

If you have coverage through your employer, you were probably given the details of the plan when you were first hired. It’s a good idea to review those details (the waiting period, the percent of income your policy will replace, etc) and make sure that the rest of your financial plan accounts for those factors. If you don’t have coverage through work, think about what a long-term absence from work will mean to your finances. The cost of the premiums might be well worth the coverage you’ll get if you do become disabled.

Annuities 101

March 15, 2018

Have you ever heard a financial advisor describe the virtues of an annuity and found yourself thinking it sounds like a pretty good deal? Or maybe you are interested in an annuity because you like the idea of a guaranteed source of income when you retire? Perhaps, being the savvy investor you are, you’ve also read or heard that annuities are a rip-off and mostly benefit the agent that is selling them.

What to make of all this? As my colleague Erik outlines in this post, annuities aren’t all good or all bad. Let’s consider some common types of annuities, how they work, and the pros and cons of each.

Immediate Income Annuity

Here’s how it works: You provide a lump sum of money to the insurance company, and in exchange, they promise to make regular payments to you right away. The amount of each payment you receive depends on your age, and the terms of the annuity (payments for your life only, your life and the life of someone else, or for a fixed period).

Pros

Guaranteed income for the term of the annuity.
No account management or maintenance fees.
No maintenance or work once it is set up.
Reliable income which can simplify retirement planning.
You can add inflation protection to income payments (although that’s an additional cost).

Cons

Once you purchase an immediate income annuity, you lose access to your money (beyond your regular payments). The lump sum you deposited can no longer be used for emergencies (or anything else).
If you do not choose inflation protection, the purchasing power of your payment can be eroded.
If you pass away shortly after starting your payments, the remainder of the annuity goes to the insurance company unless you add a beneficiary, which requires you to purchase a death benefit and can be pricey.

Deferred Income Annuity

Here’s how it works: Like an immediate annuity, you provide funds to an insurance company in exchange for a stream of income payments. The difference is that a deferred income annuity does not require a single lump sum payment and you don’t start receiving payments until a later date. During the “accumulation phase,” when the policy is growing in value due to your payments and/or the interest rate paid by the annuity company, you can decide to make a single premium payment or a series of payments over time. Those funds then accrue interest, tax-free, until you choose to start receiving income payments.

Pros

Interest accrues tax-deferred until funds are withdrawn.
Most deferred annuities guarantee against a loss of principal.
Guaranteed income payments for life (for you or your spouse) if you choose to annuitize.
Includes a death benefit component, so your beneficiary receives any remaining value if you pass away before the annuity ends.

Cons

Be aware of the surrender period – a period at the beginning of the contract that prevents you from withdrawing funds without paying a surrender charge. You will also pay a penalty from the IRS if you pull funds prior to age 59 ½.
Earnings are taxed as ordinary income. Principal is also taxed as ordinary income if you use pre-tax retirement money (like a traditional 401(k) or IRA).
Fees can really add up when you consider mortality and expense charges, administrative fees, charges for special features and riders, and high commissions for agents.

Variable Annuity

Here’s how it works: Variable annuities share some common traits with fixed annuities like tax-deferred growth and various payout options. Unlike a fixed annuity, a variable annuity takes your premium money and invests it in sub-accounts that you determine based on your risk tolerance. As such, a variable annuity is a higher-risk alternative to a fixed annuity. One popular hybrid of a fixed and variable annuity is the equity indexed annuity (kudos to my colleague Cynthia for this great look at these).

Pros

Allows you to participate in the market to maximize your return and the amount of your future income payments.
Tax-deferred growth and multiple payout options.

Cons

You assume the investment risk – your annuity’s value is subject to loss based on sub-account performance or you may find your sub-accounts underperform if you invest too conservatively.
Limited access to money due to surrender period.
Fees, Fees, Fees! If you want to lessen the risk with a variable annuity, you can add additional riders to the contract to protect income. These can be costly, and are in addition to administrative fees, mortality expenses, and expenses associated with the investment sub-accounts you choose. Michael, a fellow planner here at Financial Finesse, covers these fees and the concern with them in this post.

Other things to consider

It’s usually a terrible idea to put all your money into an annuity. Diversify into other investments like stocks, bonds and cash to ensure you have flexibility to cover emergencies and other needs above your fixed income sources.
Make sure the insurance company is on strong financial footing. Check ratings at agencies like Moody’s, Fitch, A.M. Best and Standard and Poor’s to make sure the company you are doing business with can fulfill their promise when accepting your money.

Tying it all together

As you can see, annuities can be a great tool to help you increase the amount of fixed income you can bank on in retirement. This can make great sense if your other fixed income sources like Social Security and pension benefits don’t totally cover your fixed expenses.

But it is also clear that annuities, especially deferred and variable contracts, can become very expensive options to provide that income. If you are considering an annuity as part of your retirement plan, make sure you understand the benefits along with the costs and restrictions that come along with your investment.

What My Dog Taught Me About Estate Planning

March 06, 2018

I’ll be honest: no one likes to do estate planning. It is not pleasant to think about death, so we put it off. Between my Uncle Bob passing away and my work in a trust department, I’ve seen so many cases of people putting it off for too long — not having a will or a plan and then passing away — along with the pain that it causes to those left behind.

Estate planning is more than just a will

That said, there is another part of estate planning, health care directives or sometimes called end of life planning, that could be arguably more important and could cause YOU pain if it’s not in place when you need it. That is where you let your family and medical professionals know what you do or do not want to be done to keep you alive should you end up needing life support.

The story of Nick

Right now we’re going through this with our beloved dog, Nick. He’s been a big part of the family and my “Helpline buddy” for years. He has spinal cord issues that have caused him to lose most of the use of his back legs. He hasn’t been able to do a full walk around the block in over a year and he struggles to get around the house. In the last couple of weeks he has declined.

When I got home from a work trip recently, he wasn’t able to stand and couldn’t go to the bathroom without laying or falling into his own mess. We took him to the vet and they told us he was too chronic for surgery but that we could treat him with medication to see if it would reduce the swelling in his vertebrae and give him back partial use of his legs. We know that the time is coming when he may have to be put down to end his suffering but we want to give the treatment a shot. But who are we doing it for?

If Nick could talk

I used to think, “Nick, I wish you could talk,” when he would be barking for no apparent reason, or whining at 1:30 am. Now, I realize that was nothing. These days what I really wish I could ask is, “Nick, do you want a few more days, weeks or months to see another spring? Do you want to spend a few more days doing fun things with us or is the pain and humiliation too much?” I’m literally agonizing over what is the right thing to do for my dog.

Letting your loved ones know what you would want

I can’t imagine what it would feel like if instead of Nick, it was one of my parents or my wife that I was asking this of — I keep thinking about someone I love being dependent on a feeding tube and ventilator to live, with me not knowing what they wanted. That would just be devastating.

We can make our wishes known

The difference is that we can talk, and more importantly, put those words on paper by completing a health care directive and a power of attorney for health care decisions. If you tell your loved ones what you do or don’t want done in writing, then you have taken a HUGE burden off of their shoulders. (it’s also a good idea to tell them verbally, just in case) It may be a tough conversation to have, but it’s sure easier than talking to your dog or having to make a gut wrenching decision on your own. Get it done today.

How To Shop For Long Term Care Insurance

February 26, 2018

If, after running the numbers and statistics, you’ve determined that you do indeed need to purchase long term care insurance (LTC), the next step is obviously shopping. It’s a weird wacky world of insurance out there, so I’ll try to break it down a little bit.

Check existing policies

First, you may already own long term care coverage and not realize it. If you own life insurance, and particularly a policy you bought on your own that is not part of your group life insurance at work, your life insurance might include some LTC benefits. Some life insurance policies are sold with add-ons, known as “riders,” that offer various types of living benefits you can use if you don’t die.

LTC riders

A long-term care rider, for instance, may allow you to use a portion of the life insurance policy’s death benefit to pay for costs associated with a nursing home stay. It might be time to dig up those life insurance policies and give them a good review, or call your agent for an update. If you are also considering an update to your life insurance, adding a long term care rider might be less expensive than purchasing an individual LTC policy, and you would be taking care of two risks at once with a hybrid policy.

Check at work

Another good place to start looking for LTC coverage you might not know about is within your group benefits. Some employers make long term care insurance part of their employee benefits package, and this benefit may cover the worker as well as family members. Due to the relatively large number of people insured under a group plan, you may find the LTC insurance premiums as a group participant are significantly less expensive than if you went shopping for coverage on your own. Find out if your employee policy is also portable, so you can take it with you if you change employers or retire.

Check your memberships

Professional or service organizations to which you belong may be another opportunity to purchase LTC insurance coverage at competitive rates. As with employer provided benefits, being part of a large service or professional group may entitle you to better pricing.

Individual coverage

You can purchase an individual (or couple’s) policy from a licensed insurance agent, either locally or online. Be prepared to comparison shop and obtain policy quotes from several different providers. Better still, talk to an insurance broker who is not tied to only one company and let him or her get quotes from a variety of insurance companies and do the shopping on your behalf. Check with your state insurance commissioner to confirm the agent or company you are considering is both licensed to sell LTC insurance in your state and has a trouble-free track record.

As I mentioned earlier, the task of deciding how best to handle your future long term care needs is neither pleasant nor simple. It is, however, an important part of anyone’s financial plan. Hopefully you are now more confident in how to assess your needs, weigh your priorities, do some shrewdly competitive shopping, and find the type of strategy or coverage that is just right for you.

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How To Choose A Health Insurance Plan During Open Enrollment

What are the premiums?

What are the differences in coverage?

How much might you have to pay out-of-pocket?

Is there an HSA option?

Put it all together

How You Might Be Making 40% More Than You Think At Work

Your benefits are worth more than most of us appreciate

How to estimate the financial value of your benefits

Health insurance (typically $5,000 – $30,000)

Health Savings Account (HSA) (typically $500-$1,500 plus current and future tax savings)

Retirement plan (typically 2-6 percent of your salary in matching contributions)

Dental insurance ($1,500 – $4,500 annually)

Disability insurance ($2,000 to $5,000 per year)

Life insurance ($250 to $500 per year)

Employer contribution to FICA (7.65 percent of salary)

Employee Stock Purchase Plan (ESPP) (typically 10% to 15% of market value per share purchased)

Tuition reimbursement (typically $1,500-$5,000 annually for approved coursework)

Student loan benefits (typically $1,000-$2,000 annually, with a lifetime maximum)

Unemployment insurance (0.3% – 1.5% of salary)

Financial Wellness benefits ($500 – $2,500 annually)

Other great voluntary benefits

Adding it all up

Coping With The Financial Side Of Mental Health Issues

You are not alone

Keeping your finances together when it feels like your head is falling apart

The Little Known Loophole That Allows Some Families To Save Beyond The Max In HSAs

What is an HSA?

Deal breakers

Where to find an HSA

“Please Sir, I want some more.” (how to super-save into your account)

Watch the limits

When it makes sense to open a second HSA

The loophole that could allow your family to save more than the $6,900 max

How To Replace Important Documents

Identification (ID) Cards

State-issued identification

Social Security card

Medicare ID card

Medicaid ID card

Permanent Resident (green) card

Military ID card

Passport

Vital records

Birth certificate

Marriage certificate

Death certificate

Divorce decrees and certificates

Military records

Other documents

Credit cards

Food stamps or EBT card

Your will, powers of attorney, trust and other important legal documents

Other helpful links

Take it one thing at a time

Should You Purchase Voluntary Benefits?

Voluntary life insurance

Voluntary disability insurance

Supplemental insurance

Pre-paid legal plans

Do You Really Need Renters Insurance?

Freedom and flexibility in renting

How renters insurance helps

More affordable than you think

Real money

Are You Taking The Same Risk That Could Cost The Queen Of Soul’s Family Privacy?

If you think you don’t need a will

If you think you can’t afford a will

What was Aretha’s reason?

How To Save Money On Car Insurance

Always compare apples to apples

See if your current policy has a fee for discontinuance

Bundle to save (if you can)

Saving on roadside assistance

3 Different Ways To Use Your HSA For Medical Bills

When you have a balance in your account: just pay the bills

If you don’t have a balance: get an immediate tax deduction

If you can’t make a deposit before paying: pay yourself back with tax-free dollars

What Are Your Health Insurance Options If You Retire Before Medicare?

Option 1: Obtaining insurance through the federal marketplace