Next month, you are likely to receive your employee benefit options for the coming year.  Most years, you may think to yourself that not much has changed in your life over the past year and not much as changed with your benefit selections, so you simply keep the status quo.

 

While you may find that maintaining the status quo makes life easier, taking the time to review your benefit needs may save you time, stress, and money in the year ahead.

 

First, consider your health insurance needs.  When comparing the costs of the HMO, PPO, and HSA options, which truly costs less in the long run?  HMOs and PPOs have evolved so much that many now offer very similar benefits.  HSA (or health savings account) insurance may have a much larger deductible, but it can allow for pre-tax savings into a fixed or variable account.  This account can be used to cover your annual deductible and money not used can be carried forward into future years.  If you have accumulated a balance during your working years, you can even tap into the HSA funds for retirement income after age 65.

 

Second on your list should be disability insurance.  Many companies either pay for or provide some sort of group disability coverage.  In the majority of instances, people who suffer a short or long-term disability will need additional resources to offset their expenses.  Because most Americans do not have sufficient cash reserves to meet their monthly obligations should their income cease, disability insurance is a must.  While you may feel that you can do your job with most any injury or illness, ask yourself if you could continue working if your back went out.  Almost everyone I've spoken with knows someone who has had a serious back problem, and back injuries can keep you off your feet (literally) for months or longer.  Weigh the small cost of insurance versus the significant cost of loss of income.

 

Third, this is an opportune time to review your life insurance needs.  Meet with your financial advisor, insurance agent, or find an online calculator to help determine your insurance needs.  Again, group coverage is typically inexpensive, so don't skimp because your surviving loved ones will be left wondering how to cover estate taxes, the mortgage, and retirement.

 

Last, your employer may offer benefits such as legal assistance, flexible spending accounts, or vision.  If you're planning to update your estate plan and you're comfortable with an approved attorney, you may want to opt for this coverage to help pay for your fees.  Flexible spending accounts can help reduce your taxable income while helping you pay for unreimbursed medical expenses.  Just remember, that at year's end, what you don't spend is lost forever.  Make sure you accurately account for your medical costs.

 

Make sure to review all of your benefits with your financial advisor to make sure that you're not missing anything or paying for something that you do not need.

 

Our wonderful intern, Hailey will be leaving on August 6th.  We appreciate all of Hailey's help and wish her the best of success with her future endeavors.

 

Our office will be closed from August 11th through August 15th as Woody attends LPL's annual conference in Chicago.  Clients may still reach us by email or by leaving a message.  Clients with urgent account and trade related issues should contact LPL Financial directly at 800-877-7210.  The operator can direct you to the appropriate department.

 

Over the past few weeks, Woody has been reviewing resumes and conducting interviews in search of a new administrative assistant.  Stay tuned for our new hire announcement!

 

Our puppy, Roxy, seems to have stopped growing and has begun to calm down (somewhat) while we're away.  Heidi and I are thankful that we haven't lost any additional bed coverings or clothes this month to her nervous chewing.

 

Fenway & Roxy have become so close that they can't stand having separate morning walks.  We've been training Roxy in the morning, and in order to keep her focused, Roxy and a parent leave a few minutes before Fenway and the other parent.  Surprisingly, the problem isn't Roxy becoming distracted; it's that Fenway can't do without his little sister.  He's been tracking Roxy step-by-step for as long as it takes to find her.  The two of them are like peas in a pod, and we feel lucky to have found such wonderful dogs.