How to Save $750 in Open Enrollment
Open enrollment is the time to maximize your coverage and 401k choices while minimizing your spend. Learn how to make the most of this opportunity.
It’s time. You’ve received your company’s annual mailers and email reminders, announcing that open enrollment is coming up. BE READY!! Let the fun begin! And how about those 25 page, thick paper, glossy photo brochures for your options? Everyone always looks so happy.
Calling all CDC, Cisco, Coke, Delta, Eaton, Georgia Pacific, Home Depot, Mailchimp, Siemens, State Farm and other GA professionals and families!! LISTEN UP.
The Goal
The goal of open enrollment is to update and optimize your elections, given any potential changes in your situation. What kind of changes?
Someone in the family is going to need braces or extra dental care?
You are planning to have a baby
Your significant other changed jobs
You got a raise and need to increase how much you put into your 401k
You are afraid that Trumps’s tariffs are going to bomb the market, and you need to reallocate your 401k
You never really thought about needing disability insurance, until now
Your kids are starting day care or aftercare and you heard you could invest pretax cash in a dependent care FSA
There are any number of things that could need to be updated. But most people mistakenly think this is just a boring chore, with little added value. And anyway, you made the elections last year, why spend the mental space on it again?
Or worse than complete ambivalence about the topic, you know you need to make some changes, but you are “too busy” to read the literature, preventing you from making a wise decision.
It is easy to end up spending an extra $750/year, with poor choices.
Focus on your vocation and vacation!
Schedule time with me to run through the options. THIS IS A GREAT OPPORTUNITY TO GET AN EASY WIN. I can point out how to maximize your coverage and 401k choices while minimizing your spend … all while focusing on your long term goals. We can get started looking over your options, over a cup of coffee, and it won’t cost you anything.
I’m looking forward to catching up with you.
**After publishing this blog, an interesting article was published from Kaiser Family Foundation data, showing that employee based healthcare costs around $20,000/year ($14k = employer, $5500 = employee)
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End of Year Financial Planning Checklist
6 time sensitive financial moves you should consider now, in order to successfully close out 2018.
With the holidays upon us, it can be difficult to make time to get your finances in order. Many people push out closing their year until well into the next year (ever scramble in April to get all your tax work completed?). But there are several time sensitive financial moves you should consider now, in order to successfully close out 2018.
Review your open enrollment options and optimize your selections
Make sure that you and your spouse are coordinated on health care and dependent spending and 401k and Roth saving goals.
Adjust your tax withholdings
If you have had a child in 2017, been through a divorce, changed jobs or had a change in income, you will likely need to adjust your withholdings.
Fund long term savings vehicles (401k, Roth IRA, IRA, SEP IRA, 529s).
Contribution limits for your 401k is $18,000 and IRA is $5,500. Beware that there are limits on IRAs depending on your income. If you are self employed, take the time to fund a SEP IRA, which has much higher limits than a standard IRA or 401k.
Check your health and dependent care flexible spending plans
Track down your receipts and enter them now. I like to use this wind fall to fund Christmas. If you have not used all of your money, its time to do it now. Also, if you have hit your health care deductible, it may make sense to hit the doctor one more time to take care of anything you have been putting off.
Set an end of year budget.
There is a lot going on: gifts, travel, family events, parties, family pictures. Start to think, at the very least, about some guard rails that you want to set.
Start Planning for Next Year
Set up a meeting with your financial planner. Now is the time to start setting some longer term goals for next year and help secure your retirement for tomorrow. Let me guide you through the process and monitor your progress.
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