A Health Savings Account can be an important part of your tax and money-management strategy. Not only can you reduce your health insurance premiums, but when you fund your account you get a nice tax break. If you stay healthy, that money grows tax-deferred like an IRA, and can amount to a lot of money in retirement.Every year around this time you should assess your finances and see what you need to do to optimize your situation. Making the most of your HSA is one area that can really make a difference. Here are the key things you need to know to get the greatest tax reduction and the most growth out of your Health Savings Account.Maximizing Your Contribution May Reduce Your Taxes By $1836 or MoreIf you own an HSA-qualified health insurance plan that has an effective date no later than December 31, 2007, you qualify to make a tax deductible contribution to your Health Savings Account. This will immediately reduce your tax bill come April 15.The contribution limit is not pro-rated based on the number of months in 2007 in which you had coverage, as it was in the past. However, you do need to remain […]
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Many older people with little savings, adequate pension provision or ready cash turn to equity release schemes, using the money tied up in their homes to fund their retirement. However, lenders in this area are actually loosening their lending criteria, while everyone else is tightening theirs in the wake of the global credit crunch.
Companies in the equity release sector are lowering the minimum age limit that people can apply, from 60 to 55 and at the same time increasing maximum loan to values making many hundreds of thousands of homeowners newly eligible for the loans. But, with the reduction of the minimum age comes a warning from expert analysts in the sector. They are concerned that while releasing equity earlier in life might solve short term problems for borrowers who need income, the amount of interest paid on the loan will be significantly greater if take out at a younger age.
Comparison figures from Moneyfacts suggest that someone releasing a modest sum of 050k equity at age 55 will see that debt grow to 0241,000 by the time they are 80. That represents a sum almost five times higher than the amount originally borrowed; certainly an expensive method of borrowing!
By […]
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Before the 19th or early 20th century, a worker will work until he dies or until a time where he can no longer perform the job he is entrusted with. If it’s the latter case, then he will have to rely on his life savings or from his family to meet his daily requirement. Nowadays, many developed nations have some sort of a pension scheme installed to provide some funds when a person retires in old age. This pension fund is contributed partly by the employee and partly by the employer or government, based on certain percentage of their salary or income. The retirement age varies from one country to another but mostly it is between 55 and 70, depending on the nature of work. In the United States, 65 is considered the normal retirement age.
Planning your retirement
Life after retirement is totally different. You no longer need to wake up early and prepare for work. However after a period of time, you’ll get tired of doing nothing. With no more income coming in at the end of the month, life soon gets a bit stressful.
So, how do you avoid getting into this situation? The simple answer is to plan your […]
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