Your End-of-Year Financial Management Reminders

The calendar year is coming to a close; Reviewing your overall financial plan now can save you money and protect your long-term interests.

As the days grow short and the year draws close to its end, our to-do lists seem to get longer and longer. Before your own list gets too big to manage, we’d suggest adding one more line item, somewhere in between winterizing the truck and getting the lawnmower put away in the shed.

Performing an annual review on your long term health care plan is the easiest way to make sure that you are protected from unexpected financial burdens. What follows is a brief over of the things that you should keep in mind as we move ever closer to the end of 2019.

Check In with your Calendar Year Deductible

Do you know how close you are to meeting your calendar year deductible? If you have already reached it, that means that the rest of your medical expenses for 2019 are not coming out of your own pocket. If this is the case, then it might be a good idea to schedule some additional procedures before the year is out and your deductible is reset.

Establish Your 2019 Health Savings Account by November 30th

One of the primary advantages of establishing a Health Savings Account is that is allows you to keep even more of your own paycheck by eliminating taxes on qualified contributions. Not only are the contributions tax-free, but so is the growth and qualified withdrawals.

With this kind of triple-tax benefit, it is no surprise that more and more people are taking advantage of this additional way to put money away for retirement. If you are thinking of getting an HSA-qualified plan, then you have until November 30th to get it set up.

Health Savings Accounts can reduce that dreaded April 15th tax bill by allowing you to keep more of your own hard earned money. However, contribution limits do apply.

For 2019, HSA holders can choose to contribute up to $3,500 for individuals and $7,000 for families. Contributions within this limit are 100% tax deductible from gross income. HSA holders who are 55 years of age and older are allowed to contribute an additional $1,000 on top of the established limits for individuals and families.

Calculate Your Tax Deductible Medical Expenses

If your unreimbursed medical expenses exceed 10% of your gross income for the year, then you can claim any expenses in excess of this 10% as tax deductible line items on your April 15th tax bill. If this is the case for you, then it might be a good idea to see what other expenses you might be able to include on your 2019 return.

By shifting predicted expenses like necessary medical procedures from next year to this year, it is possible to increase your tax deductions and stretch your retirement income even further.

Maximize Your Retirement Contributions

Whether you are saving through an employer-matched 401K, an IRA or Roth IRA, or a Simplified Employee Pension (SEP), the best way to increase the amount of money in your pocket for retirement is to make sure that as much of your money as possible is being contributed, saved, & withdrawn tax-deferred.

Your Health Sharing Account is the best place to start. Because these unique accounts allow for that special triple-tax benefit, they are the best way to stretch your own money even farther, simply by holding on to more of it.

Remember, HSAs can only provide tax-deductible withdraws for qualified medical costs. But seeing as how some experts are placing the average cost of a couple’s healthcare in retirement to be around $387,000 (!) you can see why paying the maximum annual contribution to you HSA is the best place to start.

Ask the Hard Questions

Lots of people experience anxiety when thinking about their long-term health. Part of the cause for this is the desire to avoid the hard and uncomfortable questions that come with long-term financial planning.

Here are some of the questions that you should be asking yourself with each annual review:

1. Do you have plans in place to account for the sudden loss of a close family member or spouse?

2. If your family’s income is suddenly severed due to an accident or tragedy, will your family’s basic needs continue to be covered?

3. If you are 50 years old or older, do you have a long-term care plan in place for you later years?

The costs of medical care are constantly on the rise, and unexpected costs can derail even the most carefully considered retirement plan. Getting a head start on planning by asking the hard questions early is a great way to build protection and assurance in an otherwise chaotic world.

Download & Review The 6-Step Financial Protection Program 

Our mission is to provide the no-nonsense guidance that is needed to fully understand and prepare for the unpredictable nature of long-term planning. That’s why we insist that our HSA holders download and review the 6-Step Financial Protection Program, which walks you through the basic checklist of preparing for a safe and abundant future.

Just like you would prepare for the coming winter, creating and maintaining a detailed care plan for you and your family’s future is the only way to truly insulate yourself against the unexpected and sometimes devastating costs of healthcare.

If you are interested in learning more about how a Health Savings Account can help you extend your retirement income, then click here to get a free quote.

Click here to schedule an appointment, or call 800-913-0172 to get started.    

To your health and wealth,

Wiley P. Long, III
President - HSA for America

The HSA for America Maximize Your HSA Newsletter is published monthly and emailed to subscribers at no charge. Subscribe now to stay on top of the critical information you need to know about health insurance, healthshare plans and managing your finances to achieve financial security.