You’re probably well aware of the basics when it comes to saving for retirement and achieving your financial goals. You’re contributing to a 401(k) and an IRA. You have an emergency fund. You have term life insurance and a plan to help your kids with college.
But is there anything you’re missing? What else could you be doing to build long-term wealth?
Don’t miss out on these opportunities:
Maximize Your HSA
If you have a high-deductible health plan, you’re eligible for a health savings account (HSA). All contributions to this powerhouse wealth builder are tax-deductible. Plus, there’s no tax on gains or withdrawals used for qualifying medical expenses.
An HSA’s triple tax advantage works even harder for you when you:
- Contribute the maximum annual amount up to the age limit of 65
- Choose an investment rather than a savings account to house it
- Pay medical bills out-of-pocket so your tax-free contributions continually grow
Protect and Invest
With a permanent life insurance policy, whether whole (fixed premiums) or universal (adjustable premiums), part of the premium pays for the insurance and the rest is invested. The invested amount — your cash value — is always available to you and grows tax-free until you withdraw it.
The policy’s value goes beyond just the protection offered by term life, so its premiums are higher. However, it can still be a smart strategy considering that it:
- Helps you automatically save money each month
- Offers another tax-advantaged vehicle if you’re maxing out your 401(k) and IRA contributions
- Continually grows your death benefit
Besides capitalizing on tax-advantaged vehicles, of course it’s also wise to practice good saving and budgeting habits. Financially stable people protect themselves from the unexpected with adequate medical and property insurance coverage, too.
Have questions about how to achieve your goals? Reach out anytime.