February Money Management |
FEBRUARY 4, 2008
HOW TO CUT HEALTH CARE COSTS
Spiraling costs and shrinking coverage have made health care expenses a top concern for most Americans. Your family can still afford care when you need it, however, according to the Georgia Society of CPAs, if you take simple steps to lower your medical expenses. One recommendation is to investigate tax-advantaged options for lowering your health care costs. For example, find out if your employer offers a flexible spending account. They allow you to set aside some of your earnings tax free to cover unreimbursed medical costs, such as copayments and deductibles. You can also use them to cover items that might not be included in your plan, like eye care or eyeglasses, hearing tests, chiropractic care and the cost of prescriptions. Remember, though, that contributions to these accounts must be used in the year they are made or you will lose them, although your employer can give you an additional 2½ months to spend the funds. Before deciding how much to contribute to an FSA, perform a careful estimate of your out-of-pocket health care costs during a recent year. Then consider how that amount may change in the coming year. And remember to turn to your CPA for advice on any challenging financial questions you may have.
FEBRUARY 11, 2008
MEDICARE CHOICES
Are you or a loved one enrolled in Medicare? This government health insurance program for older Americans offers many choices in terms of coverage and available plans. Given this wide range of options, the Georgia Society of CPAs recommends that those enrolled in Medicare understand exactly what’s available to them.
One of your questions about any plan should be which doctors will accept this insurance. You’ll want to know, too, whether you can see doctors or use hospitals outside the plan’s network. Ask also about each plan’s premiums, coinsurance and deductible to make sure they are affordable and compare well with any other options.
If you’re not sure what questions to ask—-or you if you’d like assistance in making your choice--don’t forget that your local CPA can help you understand your options and make informed decisions about the financial issues you and your family are facing.
FEBRUARY 18, 2008
FINANCIAL ADVICE FOR THE “SANDWICH GENERATION”
Many members of the Baby Boom generation are helping to support a parent while also raising a youngster or providing financial help to an adult child, according to the Pew Research Center. That can put a squeeze on adults in their middle years, often known as the “Sandwich Generation.” If you are experiencing these competing financial demands, the Georgia Society of CPAs urges you to continue saving for your own retirement even while assisting with a loved one’s financial needs. You can’t help others if you’re not on firm financial footing yourself, so keep setting aside money for retirement using tax-deferred savings options, such as your employer’s 401(k) plan or an individual retirement account. By focusing on your retirement, you’ll set the foundation for a secure financial future. If you’re not sure how to juggle your financial demands, be sure to consult your CPA for more advice on any of the money challenges facing the “Sandwich Generation.”
FEBRUARY 25, 2008
ARE YOUR FINANCES IN TROUBLE?
Do you have a budget? If you don’t, that’s a sure sign that your financial life may be in trouble, according to the Georgia Society of CPAs. A budget can help you to understand how much money you have coming in each month, what your expenses are and what’s left over once you’ve paid them. Without this realistic assessment, it’s easier to spend too much—often without even realizing you’ve done it—and harder to reach your financial goals. To prevent unpleasant financial surprises in the future, take this important first step in managing your money now.
If you’re not sure how to get started on a budget—or if you are facing financial challenges and you’re not sure how to handle them—contact your local CPA. He or she can offer smart ideas and recommendations to help you with any aspect of your finances.
For more information contact Calvin Wong at 404-231-8676, Opt. 5.