Financial Planner Boise ID

Financial Planner Boise ID

Is a Health Savings Account for You?

Posted by on Nov 15, 2018 in Financial Advisor Boise ID, Financial Planner Boise ID | Comments Off on Is a Health Savings Account for You?

Is a Health Savings Account for you?   Health Savings Account are growing in popularity.  It is not surprising since HSAs have triple tax benefits.  Contributions are tax deductible. Withdrawals for medical expenses are tax free. Earnings are tax free. In addition, there are no required distributions like you have with IRAs. Also, there are no income limits for contributing to an HSA like you have with a ROTH.   The 2017 Devenir HSA Research Report shows the number of HSAs have grown to 22 million since their start 15 years ago. These accounts hold over $45 billion in assets.   Health Care Kitty Many are using HSAs as a retirement healthcare Kitty.    Fidelity study shows the cost of healthcare for a 65 year old couple in retirement to be $275,000. This includes health care premiums and out of pocket expenses. Costs that can be covered by an HSA healthcare kitty. Yet 1 in 5 HSA owners are making a mistake.  They are not contributing to their HSA. A minimum contribution would be the $1,350+ deductible for your insurance. An alternative would be to contribute monies to cover your current medical expenses. Then turn around and pay your medical bill from your HSA.   How much can I contribute? The 2019 guidelines for HSA contributions is $3,500 for singles and $7,000 for families.  If you are over 55, you can contribute an additional $1,000. However, be aware that in 2019 the contribution your employer makes to your HSA, reduces the amount you can contribute. For example, you have a family HSA and your employer contributes $500 to your account. Your maximum contribution is $6,500 ($7,000 family limit less $500). Caution:  some restrictions Once you are on Medicare, you can no longer contribute to an HSA. If you are 65+ and on your employer’s health coverage, you can delay enrolling in Medicare. Even enrolling in the free Part A-hospital coverage with Medicare, will disqualify you for making HSA contributions. Health Savings accounts allow you to name a beneficiary. A spousal beneficiary is allowed to rollover the account and make it their own. A non-spouse beneficiary cannot. They must disburse the account in the year the owner dies. This disbursement is taxable. Preserving an HSA for a non-spouse beneficiary is handing them a tax problem. Retirement accounts allow the beneficiary to stretch the disbursement over their lifetime. This is the better account to leave an heir. Use your HSA on your medical expenses. An HSA has many benefits – use them...

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Freezing Your Credit is Now Free

Posted by on Oct 31, 2018 in Certified Financial Planner Boise ID, Certified Senior Advisor Boise ID, Financial Advisor Boise ID, Financial Planner Boise ID, Financial Planners Boise ID, Financial Planning Consultant Boise ID, Financial Services Advisors Boise ID, Peggy's Pearls | Comments Off on Freezing Your Credit is Now Free

  It’s Free! It is now free to freeze your credit with all 3 credit bureaus- Equifax, Experian and TransUnion. AARP did a survey in Massachusetts, only 13% of those who had fraudulent charges on their credit card took action. Many feel overwhelmed with all the security breaches occurring at companies holding sensitive data. They feel it is inevitable they will have their identity stolen. Don’t Give In! Thieves won’t exert extra effort to hack your identity. They will go for the low-lying fruit- don’t let it be yours. – Freeze your credit. A credit freeze is the best way to stop hackers from opening new lines of credit in your name. A credit freeze locks your files with a PIN. New credit can only be approved when the PIN is temporarily lifted from your account. In order to be secure, you must freeze your credit at all three of the big credit bureaus. This can be done online or over the phone. Equifax- www.Equifax.com – 1-888-548-7878 Experian- www.Experian.com – 1-888-397-3742 TransUnion- www.TransUnion.com – 1-800-916-8800 This is a relatively easy process. You do need to put your PIN for each credit bureau in a secure place. New credit can only be approved when the PIN is temporarily lifted from the account. Ask the creditor which bureau they use and lift the freeze for only 1 bureau. If you visit the websites, don’t get drawn into their credit protection program for a fee. You don’t want notification after a breach has occurred. You want to prevent it. Yes, they may cover costs of restoring your identity but so do most homeowner policies. A credit freeze won’t prevent an existing credit card from being used fraudulently. You will need to report the fraudulent use to have charges removed. You will also need to have a new credit card issued. These steps are minor to correcting Identity theft. That is a painful disruptive process that can take months to correct. Take preventive measures- Freeze your...

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Is the stock market sliding?

Posted by on Oct 18, 2018 in Certified Financial Planner Boise ID, Certified Senior Advisor Boise ID, Financial Advisor Boise ID, Financial Planner Boise ID, Financial Planners Boise ID, Financial Planning Consultant Boise ID, Financial Services Advisors Boise ID, Peggy's Pearls | Comments Off on Is the stock market sliding?

Is the stock market sliding?   Have you been watching the stock market slide since hitting a record high in early October? The chart shows the last 10 years of activity in the market starting with 2008. It reflects all the trauma and drama we have seen over the last 10 years. All the reasons not to invest in the stock market. Yet if you had invested $10,000 at the time it would now be worth almost $25,000. A return of 8.89%. The S&Ps record high on 10/1/18 of 2,924.69 dropped over 10 days to $2,728.37, a change of 6.7%. The numbers for the DOW look scarier. The record high of 26,828.39 on 10/3/18 slid to 25,052.83 on 10/11/18. A correction of almost 1,800 points. Yet the percentage of change is 6.62%. About the same as the S&P correction. It is the percentage of change that is important to monitor. The media will focus on the drop-in points-1,800 points sounds scarier than 6.62%. The lesson is- “Stay the course through...

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Don’t Flunk at Retirement

Posted by on Oct 2, 2018 in Financial Planner Boise ID | Comments Off on Don’t Flunk at Retirement

A quality, satisfying retirement doesn’t just happen. While you are working, a thought of leisure time seems wonderful. Yet when all you have is leisure time, it isn’t as satisfying. A little planning, can make your retirement years fulfilling. However, the good thing about leisure time- you have the time to follow your passions. Don’t wait until retirement to begin exploring new interests. Exploring your interests now while you are working makes the transition into retirement smoother. Ask yourself- what dreams or projects have you set aside? What hobbies have you let go? Have you created a bucket list? Discovering what you are interested in or passionate about may take some nurturing. If you have been on the wheel of life- doing a job; raising a family- you may have stuffed down your own interests and desires. You may be in survivor mode. It is time to dream- give passion room to grow. In you’re dreaming- remove money from the equation. Focus on what brings pleasure, what do you enjoy doing; what would you like to try? Once you have some possibilities, you can think about the how. Worrying about the money drains creativity and blocks your brainstorming. Talk with your friends and family. What do they see as your natural giftings? What do you do well? What do they believe makes you happy? My sister had left HR in the business world. She got tired of hearing adults whine. She had the opportunity to substitute at the private school where her kids attend. Her family saw how much she enjoyed teaching children. In Virginia, if you have a bachelor’s degree, you have a short journey to get a teacher’s certification. Now 10 years later she’s still teaching at the same school, and loving it. Who is doing what you want to do? Who is your professional hero? Read about their life. How did they get started? What obstacles did they encounter? There are unlimited resources in books, blogs, and articles that can help you. Personally, I listen to CDs on my 45-minute commute to the office. I’m always in the learning mode. Don’t go it alone- find others pursuing similar passions. Check out Meet-up or Reddit. Both have groups on a wide range of interests and passions. Leverage social media to find groups or forums on your interest. You can learn from others experience. I encourage you to pursue what you are passionate about. If that requires a job change, seek the help of a career counselor. (http://yourfulfillinglife.com/)   Resources that can help you make a connection in your community are: Volunteer Match  www.volunteermatch.org They match you with a non-profit needing your skills and matching your interests. Senior Corps www.nationalservice.gov/programs/seniorcorps Senior volunteers over 55 helping with social issues like foster grandparents and senior companions. Encore www.encore.org is more paid opportunities to do short term, temporary assignments. Retirement is an encore- more to your own design. You have skills and talents that are valuable to the community. Many non-profits and schools can use your skill set. As my neighbor says, “I have retired from my job but not my profession.”...

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Cyber Security Updates

Posted by on Sep 19, 2018 in Financial Planner Boise ID | Comments Off on Cyber Security Updates

How much is your personal information worth? On the dark web, not much. Your Social Security number can be sold to a hacker for just $1. Your debit card number with bank information or credit card number will put a crook back just $5 each. Medical records tend to go for about $60 because they contain so much information. Creating accounts online could actually help protect your identity. Security expert and writer, Brian Krebs wrote about the strategy this month on his blog. Krebs explains that creating online accounts to manage your various accounts (banking, Social Security, your cable and internet, etc.) can be helpful because it ensures that a hacker won’t create the account for you (and then control it). Krebs shares the stories of victims who were defrauded after criminals set up fraudulent accounts in their names. You can read their stories here. Google Chrome will now alert you if a website is not secure. The browser update is a way for Google to push for more Internet encryption and keep users safe. If you reach a site with the “Not Secure” image in the address bar, think twice about entering login credentials or payment information. This feature is available in Chrome 68 and later. Companies begin tracking your typing, scrolling, and clicking to prevent fraud. Some banks and retailers have invested in technology that tracks how you interact with their website or app. The particular way you type and scroll can create patterns the merchant can use to determine if it is really you. This type of behavioral monitoring software works behind the scenes—you are probably unaware of when you are being tracked. For that reason, many security experts do not like the practice. Fraudulent Amazon charges have been hitting Wells Fargo debit card users in recent months. Wells Fargo customers have reported seeing fraudulent charges described as “Amazon Prime” membership fees on their statements. Wells Fargo has said this fraud is widespread. If you are a Wells Fargo debit card user, be sure to check your statements...

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My Class Reunion: What I Learned About Enjoying Life

Posted by on Aug 21, 2018 in Financial Planner Boise ID | Comments Off on My Class Reunion: What I Learned About Enjoying Life

Have you ever been to your class reunion? I recently attended one of those- enough decades past that people are more real with their journey of life. Hell, they actually have experienced some life. After listening to story after story of people’s experiences since high school. I concluded people fell into three categories. Group 1- They disliked their job and were enduring until retirement or they were preparing to retire early. Group 2- They started in one job after high school or college and found themselves in completely different professions today. A few were wanting to make career changes at this time. Close to the finish line- they want to keep working just not doing what they are doing. Group 3- Those who loved what they were doing and retirement is not on their radar. This sadly was a small group and people were generally self-employed. Why the difference between the groups? Mitch Anthony in his article titled “Locating Your Core” reflects on three areas that impact your satisfaction with your job. Essence – What matters most to you? Who are you at the core? What excuses are you making for not honoring your essence? Environment – Is my essence allowed to flourish here? Am I growing toward what I want to be? “Am I challenged in positive ways?” Income – Do I feel fairly compensated for the value I bring? What is my paycheck costing me (in terms of life quality)? Has the money become a tether to misery? People in Group 1 of my high school reunion found themselves in positions that didn’t match their essence. They weren’t doing something they were passionate about. Often, they were in secure positions or jobs that paid well. A few had military careers that has limited choices –some fared better than others in the military. People in Group 2 made choices along the way – some significant shifts others only minor. One woman left architecture, went back to school and pursued a physician’s assistant position. Not really a complete shift, she started as pre-med but had a professor who discouraged her. She had lots of medical books on her shelf before she went back to school. She is content in her job now. Career shifts aren’t always easy to make. You want to be moving towards a goal- not running from your job. A career coach can help you make this shift. (Check out Stacey Harshman’s website http://yourfulfillinglife.com/. I teach a class with her.) One engineer had a miserable experience as a manager at a large corporation. That company burned through that position every few years. When he began a position at another company, he fell in love with his career again. Looking forward to the work week not experiencing the Sunday Evening Blues. Those in Group 3 didn’t see a lot of shifts along the way. They started on a career path that took a few bends and turns, yet continued to grow and expand their opportunities. Their jobs were fulfilling and retirement wasn’t a consideration. A few of us thought we would evaluate retirement at 70. One classmate had worked a good paying job in a narrow niche. When his job was eliminated, he floundered a few years to find a new career. He surprised himself and his family taking a position working with developmentally disabled adults. He has found it to be rewarding and challenging. Each day is a new experience- never a dull moment. Fortunately, his financial future was secure so he could take this position. Sometimes you need to evaluate supporting your current lifestyle or...

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