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Employee benefit selections can be overwhelming and stressful. Our behavioral experiences and expectations can misinform an already complex decision-making progress. Having a set-it-and-forget-it mindset can be a costly course of action. We recommend reviewing your employee benefits annually. Changes in your planning needs and the offerings of your employer are more common than not. Use the links below to find more information or book a meeting to discuss your benefits questions in more detail.
Having an insurance and benefits strategy can provide the following value to your financial plan
1) Access to additional financial resources in the event of loss or claim by way of risk transfer.
2) Potential to capture additional tax deductions.
3) Potential to capture additional tax credits.
4) Potential to put "free" money in your pocket.
5) Potential to protect your cash position and investments from liquidation in the event of loss.
6) Help you have more realistic expectations of your benefits and coverages should you suffer a loss or claim.
7) Help you understand when to add and remove coverages based on your level of accumulated wealth.
8) Help you understand, anticipated and plan for current and future tax obligations tied to benefits.
Taking into account your Cash Strategy and Employee Benefits Strategy, Sterling Edge Financial's process will provide you with recommendations and a course of action to understand what lines of insurance you need to protect your financial plan. Some of these lines of insurance include health insurance, disability insurance, life insurance, long term care insurance, property and casualty insurance and umbrella insurance. As your financial plan evolves and becomes more detailed, your insurance needs may require changes as well.
"Powerpoints are the peacocks of the business world; all show, no meat." Dwight Schrute
Feeling overwhelmed by your Health insurance options and choices? You are not alone.
HMOs, PPOs, HDHP Plans, deductibles, co-insurance costs and max out of pocket costs can be difficult understand as it relates to our personal financial situation and plan.
The professionals who help you get health insurance (from employer provided insurance agents to HR teams) will most likely not know which plan is best for you. The information they need to ask you might be inappropriate or illegal.
Changes to help you identify the potential need for further review:
Insurance options that best fit your financial plan at 30 might be a great fit now, but could cost you thousands of dollars or more by 35 or 50.
"Everyone has a plan until they get punched in the mouth." Mike Tyson
Financial plans are fueled by income. Income from working or income from investments, annuities, pensions and social security.
Unless you are independently wealthy, most financial plans cannot afford a loss of income during our prime earning years. (25 - 55)
It is difficult and not psychologically normal to think we will get disabled or suffer from a chronic illiness that prevents us from working.
However, the reality is we are more than 8 times more likely to suffer a disability vs. dieing. It is important to evaluate and implement courses of action to protect your financial plan and income from loss until we reach a level of investable assets we can replace our income without a need to work.
“No one is required to provide personalized advice or perspective in a fiduciary capacity to plan participants in employer provided retirement plans ” – Kit Lancaster CFP
A study by ProPubica and the Urban Institute shows over 56% of workers in their 50s are laid off at least once or leave jobs under such financially damaging circumstances.
Only 10% of those workers ever earn as much as they did before their employment setback.
At some point, we will not be able to work any longer or simply not want to work any longer. If we are lucky, we will get to choose when we want to retire.
Our process is designed to help you understand ways to save and invest for retirement. We explore ways to get emotionally, mentally, and financially prepared for a change to a different use of your time after employment.
Your financial plan is built on your cash flows. Your retirement plan is designed to keep your cash flows going after you stop working.
We provide detailed guidance and recommendations on all types of retirement plans and retirement strategies.
(401k, 403b, 401a, 457, TSP, SIMPLE IRA, SEP IRA, Deferred Comp, etc.)
A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) save and pay for qualified medical expenses. HSAs offer a triple tax advantage: contributions are tax-deductible, earnings grow tax-free, and withdrawals used for qualified medical expenses are tax-free as well.
When considering an HSA, consumers should ask themselves the following three questions:
Is an HSA the right fit for my healthcare needs and financial situation?
How much should I contribute to my HSA?
How will I manage and utilize my HSA funds?
At Sterling Edge Financial we can help you understand if an HSA will create value for you and your financial plan. It shouldn't be assumed to create value or be in your best interest.
A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows employees to set aside a portion of their pre-tax earnings to pay for qualified medical expenses. FSAs are designed to help individuals save money on healthcare costs by reducing their taxable income.
Now, let's address three questions about FSAs that consumers should ask themselves:
What expenses are eligible for reimbursement through an FSA?
How much should I contribute to my FSA?
How will I manage and utilize my FSA funds effectively?
Navigating the world of employee benefits and compensation can be overwhelming, especially when it comes to complex terms like stock options, restricted stock units (RSUs), and deferred compensation. These forms of compensation often play a significant role in attracting and retaining talented employees. However, understanding how they work and making informed decisions can be challenging. In this blog post, we'll shed light on these concepts to help demystify their complexities.
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