experience
How to Use Resume Keywords to Get Past Online Screeners
When was the last time you printed out your resume and handed it to an actual human being? These days, many job seekers donât interact with a real, live person until they get past an electronic screening round. More companies are using automated applicant tracking systems (ATS), also known as talent management systems, to find [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Does Buying in Bulk Save Money?
Conventional financial wisdom says buying in bulk is smart. When you buy en masse, the price per unit tends to drop. So the thinking goes, if you buy more, the less each unit winds up costing you. Seems simple enough, but like anything financial, thereâs a bit more to the story. Itâs worth doing a […]
The post Does Buying in Bulk Save Money? appeared first on SoFi.
Can You Back Out of a Lease Before Moving In?
Depending on your state, you may be able to. But it’s not a good idea if you can help it.
The post Can You Back Out of a Lease Before Moving In? appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
The Best College Towns in Oregon
There are more options than being a Duck in Oregon.
The post The Best College Towns in Oregon appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
The Best Apartment Flooring Options When Living With Pets
Spend time with your furry friend, not worrying about scratched floors.
The post The Best Apartment Flooring Options When Living With Pets appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
Do You Realize the Power of HSAs? Probably Not!
Health savings accounts (HSAs) have grown in popularity since the COVID-19 pandemic caused millions of Americans to worry about getting sick. A recent industry report from Devenir reveals that the number of new HSA accounts increased by 8% last year, and this trend is only expected to continue. By the end of 2024, there will likely be more than 38 million HSAs, with assets topping $150 billion. Itâs easy to understand why HSAs have increased in demand throughout the pandemic, since they are a great solution to help cover unexpected medical costs â like an unplanned hospital stay.Â
- SEE MORE HSAs Make Health Care More Affordable
But HSAs are more powerful than most people realize. For example, Voya research reveals that only 2% of individuals are aware of the key attributes of HSAs.(1) With employers increasingly offering high-deductible health plans with an HSA option to their employees, chances are you already have an HSA or perhaps are considering opening one. Whether you are a pro when it comes to HSAs or just using one for the first time, we all can find value to reviewing ways that we can realize the full potential of these powerful savings, spending and investing vehicles.
Read these 10 tips to help maximize the benefits of your HSA.
Tip #1: If you switch jobs, your HSA comes with you
The pandemic-era trend known as the âGreat Resignationâ has led to a record number of people voluntarily quitting their jobs as many are changing course for a variety of reasons â increased compensation, greater flexibility or better workplace benefits, to name a few. In fact, a record 4.5 million Americans quit their jobs in March, according to the U.S. Department of Labor. Therefore, if you fall into this category and are considering switching jobs, thereâs no need to worry about losing any of the hard-earned dollars you contributed to your HSA. If you leave your job (for whatever reason), your HSA comes with you â since you, not your employer, own the account.
Tip #2: You can change your HSA contributions at any time
Typically, when most people think about their workplace benefits, they may have âflashbacksâ to their employerâs open enrollment period. For many, open enrollment can be a stressful time, having to consider all of your needs and making the right choices for workplace benefits for the following year. Interestingly, Voya research reveals that the majority of American workers (72%) indicated they would rather service their car, visit the dentist or prepare for tax season instead of reviewing their workplace benefit options.
Now, while you do need to enroll in an HSA during open enrollment, deciding how much to contribute from each paycheck is not something you need to stress over. What do I mean? While most employers will usually offer digital tools or calculators to help you estimate your health-related expenses for the upcoming year, at the end of the day, itâs still just an educated guess. A great feature of HSAs is that you can change how much you contribute at any time during the year. You donât need a qualifying event â like getting married or switching jobs â to make changes, which is a typical requirement for most other workplace benefits. Thatâs a big relief and one less thing to worry about during open enrollment.
Tip #3: HSAs offer triple tax advantages
Perhaps the biggest benefit of an HSA is the triple tax advantages it offers: 1) contributions are pre-tax and reduce your taxable income; 2) your HSA contributions and any earnings grow tax-free; and 3) when used to pay for eligible medical expenses, HSA withdrawals are tax-free.
HSA contribution amounts are capped each year by the IRS. For 2022, the HSA contribution limits are $3,650 for individuals and $7,300 for family coverage. Individuals who are 55 or older are also eligible to make an additional $1,000 catch-up contribution. To help adjust for rising inflation, the IRS recently announced that it was boosting HSA contribution limits in 2023 â with the HSA contribution limit increasing to $3,850 for individuals and $7,750 for family coverage.
Tip #4: Your HSA dollars are not âuse it or lose itâ
Itâs not uncommon for people to confuse HSAs with their cousin, flexible spending accounts, or FSAs. While their names might sound similar, the rules that govern these accounts are quite different. One of the biggest drawbacks surrounding FSAs is the âuse it or lose itâ rule. In most cases, you must spend all the tax-free funds you put aside in an FSA before the end of each plan year, or risk losing the money.
People often mistakenly think the same rule applies to HSAs. However, unlike an FSA, your HSA balance carries over each year, which can add up over time.
Tip #5: HSAs can double as emergency health care savings
The ripple effect of the pandemic shined a spotlight on a troubling reality: Most working families are not financially prepared to cover an emergency. Industry research shows that roughly 4 in 10 Americans would struggle to cover a $400 emergency expense. Faced with a short-term, unexpected need â such as a trip to the hospital â many people often dip into their retirement savings. In fact, Voyaâs own customer data reveals that employees without adequate emergency savings are three times more likely to take a loan from their retirement plan.(2)
- SEE MORE Expecting the Unexpected: Navigating Illness and an Unplanned Leave of Absence
Fortunately, the dollars in your HSA can double as an emergency savings account. All HSA withdrawals used to pay for qualified medical expenses (even if unplanned) are tax free. Plus, you can choose to cover a medical bill out of pocket and then be reimbursed tax-free for that expense in the future. This strategy is another way HSAs can serve as a potential emergency savings vehicle for eligible health-related expenses. Just make sure to hold on to your receipts to verify all distributions.
Tip #6: HSA funds can be an investment opportunity
Once you reach a certain threshold in your account, your HSA funds can be invested. These investment options are similar to line-ups available in typical workplace retirement accounts, like a 401(k). And you donât need a large HSA balance to begin investing the funds. In many instances, you only need an HSA balance of $1,000 or more. However, this threshold varies by HSA plan, so check with your employer.
Unless you plan to use your HSA money for planned expenses in the near future, investing can give your money an opportunity to grow over time. For example, if you invested the 2022 HSA individual contribution limit of $3,650 in your account every year for 10 years and didnât use any of the funds, and your account earned an overall 6% of interest each year over that time period, you would end up with about $51,000. While you would have contributed $36,500 yourself, the remaining $14,500 would come from investment earnings.
Like with any investment, itâs important to remember there is always risk. That being said, HSAs can serve as an important vehicle to help grow your future savings over the long term. Plus, with inflation at a 40-year record high, investing your HSA dollars is another option to potentially protect the value of your hard-earned money and make it work harder for you in the future.
Tip #7: Your employer can help grow your HSA
To encourage participation in high-deductible health plans with an HSA, itâs not uncommon for employers to offer incentives or matching contributions. For example, some will offer their employees $100 just for enrolling in an HSA. Plus, they may offer additional contributions throughout the year as the employee visits their doctor for an annual check-up, completes a biometrics screening or participates in other financial wellness programs, for example.
Itâs not required that employers offer incentives or matching contributions to help supplement their employeesâ HSA funds, so make sure to check with your HR team. But if available, taking advantage of potential âfree money on the tableâ is a smart way to help grow your HSA.
Tip #8: No required minimum distributions for HSAs
A required minimum distribution, or RMD, is an IRS-mandated amount of money that a retiree must withdraw each year from a traditional IRA or an employer-sponsored retirement account, like a 401(k). Recently, this topic has generated headlines, with lawmakers in the House overwhelming passing The Securing a Strong Retirement Act of 2022, or âSECURE 2.0.â In addition to other provisions aimed at helping American workers save for retirement, the bill proposes increasing the age to 75 when a retiree must withdraw RMDs.
While this is certainly good news, considering the current RMD age is 72 (and that was only recently increased), HSAs do not require minimum distributions â another benefit of this powerful savings vehicle. Therefore, retirees can use their HSA funds to help supplement their future retirement savings and withdraw their money when they need it. Plus, if their HSA funds are invested, it has the potential to keep growing well into their retirement years.
Tip #9: Use your HSA dollars how you want in retirement
When you reach retirement age at 65, HSA funds can be used for non-medical expenses without being assessed a 20% penalty. Therefore, you can use your HSA to pay for general living expenses â like housing, food or travel, for example. However, the distributions will be taxed like any normal distribution from a retirement account, like an IRA or 401(k). But, if you decide to spend your HSA dollars on qualifying medical expenses, you will still enjoy tax-free distributions.
The good news is that you now have greater flexibility to spend your money how you want in retirement.
Tip #10: HSAs can outlive their owners
When it comes to estate planning, taxes are something all of us should carefully consider to help ensure as much of our life savings goes to the people we love versus the IRS. Fortunately, HSAs can be transferred to spouses without any tax implications. Your spouse can also continue using the HSA funds for qualifying medical expenses and will receive the same tax-advantaged treatment.
1) Based on findings from an online survey conducted by Voya, in partnership with Russell Research, among 315 U.S. Consumers currently enrolled in an employer-sponsored health plan fielded from Sept. 2 â Sept. 6, 2020
2) Voya Financial internal data (Oct. 2020)
- SEE MORE Donât Move to Another State Just to Reduce Your Taxes
A Complete Renter’s Guide To Understanding Your Apartment Lease Agreement
Know exactly what you’re signing.
The post A Complete Renter’s Guide To Understanding Your Apartment Lease Agreement appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
Divorce Financial Planner Tips When Preparing for Divorce
Preparing for a Divorce: Personal Finance Tips from the Pros It’s hard to think in a practical, financial frame of mind when you’re in the midst of the emotional storm of a divorce. All the things that have to be taken care of during a split add what feels like another full-time job to your
The post Divorce Financial Planner Tips When Preparing for Divorce appeared first on MintLife Blog.
How Does Working Longer Affect Your Social Security Benefits?
If youâre like many seniors, Social Security benefits will make up the majority of your income during retirement. According to the Center on Budget and Policy Priorities, half of older Americans rely on Social Security for at least 50% of their income, and 25% rely on it for 90% of their income.
- SEE MORE How to Calculate the Break-Even Age for Taking Social Security
You may be working longer, too. U.S. workers between 62 and 65 are working at the highest rates since data began being recorded in the 1960s. And those over 65 are about twice as likely to be working today as those in 1985, with around 20% still in the workforce (though there was a slight downturn during the pandemic).
To me, the first set of statistics highlights the importance of Social Security benefits to your retirement life â and the need to maximize those benefits. The number of Americans working longer tells me that a lot of you may want to know how working longer can affect your benefits, and how you can make the most of those earning years.
Social Security & Working Past âRetirementâ
Some people who work longer delay receiving Social Security benefits so those benefits can grow. As you probably know, you can increase your Social Security benefits by delaying the date at which you begin receiving them. In other words, the longer you wait to collect your benefits, the bigger your benefit (until age 70, at which point they stop growing). You can use the Social Security Administration (SSA)âs calculator to figure out how much you could earn by waiting.
- SEE MORE 5 Key Points to Consider Before You Claim Social Security
I think thereâs another, unsung perk to working longer: You could increase your benefits by delaying credits and by bumping up the earnings numbers used to calculate those benefits. Social Security calculates your monthly benefit by using your 35 highest-earning years (until age 70). As long as you keep working and paying into Social Security, your earnings record will keep being updated. If the money you make in later years outweighs what you made earlier, your benefits will increase accordingly.
Some Pros to Working Longer (And a Few Heads-Up)
Working past the more traditional retirement age of 65 may boost more than your Social Security benefits.
- Any future spousal benefits would increase, too.
- You may stay sharper. Several studies show that people demonstrate higher mental acuity if they continue to work. These studies show itâs likely due to the social networks and mental challenges of work.
- You may save money by sticking with your employerâs healthcare instead of using Medicare, especially if your spouse is covered by your plan and not eligible for Medicare. The rules around signing up for Medicare can be complicated, but Medicare.gov says, âGenerally if you have job-based health insurance through your (or your spouseâs) current job, you donât have to sign up for Medicare while you (or your spouse) are still working. You can wait to sign up until you (or your spouse) stop working, or you lose your health insurance (whichever comes first).â There are exceptions, though, and you may want to consider delaying Part B but sign up for Part A because itâs free. Be aware: If you enroll in Medicare, even just Part A, you canât contribute to a health savings account.
A Few Additional Heads-Up
If you have traditional retirement accounts, you may run into some required minimum distribution (RMD) issues. Thanks to the 2019 SECURE Act, you donât have to begin withdrawing RMDs until April 1 of the year after you reach 72, but if youâre still working at that point, your RMD income could bump you into a higher income tax bracket.
Youâll have to pay taxes on your Social Security benefits if your total income is over $25,000 if filing as a single person or $32,000 if youâre married and filing a joint return. Your annual income (including any income from RMDs) will determine the percentage of your Social Security benefits that are subject to income tax.
In addition, higher earners might pay more for Medicare Parts B and D. As mentioned earlier, you could stick with your employerâs healthcare plan to avoid this issue.
Another thing to think about: You can âunretireâ after signing up for Social Security, within limits. Changed your mind and want to delay retirement benefits and earn credits instead? If you change your mind within 12 months of taking your benefits, you can request a withdrawal of benefits and take them later when you qualify for a larger benefit. Thereâs a caveat though â youâll have to repay all the benefits you and any family members received. If itâs been longer than a year since you started receiving your benefits, youâll have to wait until your full retirement age to ask for a suspension of benefits.
Should You Work Longer?
When making this decision, I suggest you consider not just your financial situation, but also:
- Health: Think about your health â and that of your spouse â and your healthcare needs. As mentioned earlier, working later in life can be beneficial to your mental health, but how does it affect your physical health? And how is your spouseâs health? Do they need more help around the house? Do you need to continue working to help pay for medical treatments? Donât forget to consider the fact that time spent at work is time away from your family.
- Longevity: Do you come from a long-lived family? Working longer and delaying taking Social Security will both boost your retirement income, which is extra important for those with long life expectancies ahead of them. I suggest you plan to make your money last as long as you do.
- Your job: Do you like it? Does it make you feel younger?
And of course, take your salary into account. Though ageism in the workplace can be a problem, it may not be an issue for everyone. Some companies may value the experience and wisdom of older workers. In fact, the median earnings of working Americans ages 62 to 65 exceed those of younger workers.
All expressions of opinion reflect the judgment of the author, Ken Moraif, as of the date of publication and are subject to change. Ken Moraif is a controlling owner and investment adviser representative of MMWKM Advisors, LLC, doing business as Retirement Planners of America (RPOA), which is an SEC registered investment adviser. Registration as an investment adviser is not an endorsement by securities regulators and does not imply that RPOA has attained a certain level of skill, training, or ability. Ken Moraif has worked in the financial services industry since 1988 and has been a CERTIFIED FINANCIAL PLANNER⢠professional since 1998. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner⢠and federally registered CFP in the U.S., which it awards to individuals who successfully complete CFP Boardâs initial and ongoing certification requirements. Readers should not rely on this content as the sole basis for any Social Security, financial planning, investment, or related decisions. A professional adviser should be consulted and/or independent due diligence should be conducted before implementing any of the options directly or indirectly referenced. This article should not be construed as a solicitation to render personalized investment advice. Retirement Planners of America makes no warranty, express or implied, for any decision taken by any party in reliance upon the information discussed. While information presented is believed to be factual and up-to-date, Retirement Planners of America does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.
- SEE MORE When You Claim Social Security Can Have Huge Implications for Your Spouse