Etiqueta: wire

This portion is twice what peer countries spend on health care. For comparison, Norway’s GDP per capita in 2020 was $68,359, but the Scandinavian country spent only $6,748 on healthcare per capita – just under 10% of GDP per capita.

It is not surprising, then, that health care in the United States is somewhat expensive. Fortunately, very sure tax advantages like Health Savings Account (HSA)It can help you offset some of these costs.

And HSA is not strictly Saving account. While you can treat it like a fund for rainy days and keep it all in cash, it may be a good idea to put your HSA balance to work instead, especially if you don’t anticipate any health care expenses in the near future or you have a large account balance.

In 2022, the HSA contribution limit was $3,650 for individuals and $7,300 for families. To qualify for an HSA, you or your family must be enrolled in a High Deductible Health Plan (HDHP), with deductible At least $1,400 for individuals or $2,800 for families.

While this contribution limit may not seem like much — and may not even cover a year’s worth of health care expenses in some cases — it can increase over time. If you go for several years without having to withdraw from HSA, you could have a large amount in the account.

For example, suppose you contribute an HSA limit each year for three years and have not made any withdrawals during that period. By the end of year three, you will have approximately $11,000 in the account.

However, this is assuming you leave your money in cash and earn no interest. What if you invested your money instead? If you put money in a stock index fund in a broad market like Vanguard Total Stock Market Index Fund ETF (NYSEMKT: VTI) And achieving a compound annual growth rate (CAGR) of 10% (roughly equal to the long-term average annual return for the underlying index), you’ll have just over $12,000, or about $1,000 more than if you didn’t invest at all.

But what if you did this for a long period of time – for 10, 20, or even 30 years? Here are the numbers:

As you can see, you end up with an extension Many HSA is greater if you Investing the balance instead of keeping the money in cash. As the amount of time increases, the gap between the fully cashed HSA and the HSA that is employed and invested increases.

For example, you will have $208,939 in your HSA after accruing 10% for 20 years — nearly three times the amount you would have made by keeping the money in cash. And over the course of 30 years, you’ll end up with over $600,000 – nearly half a million more than your total HSA in cash.

HSAs are first and foremost a tool for covering health care expenses. But these costs often come in sporadic fits, and it may be several years without spending much before you suddenly incur a major hospital or surgery bill.

During those years, he continued to make HSA contributions. And once the money is in your account, make sure it’s working hard for you. By investing this HSA money, you may end up with a significantly higher balance than if you kept your money in cash, especially over time. This way, you’ll be able to sleep peacefully at night knowing you can comfortably afford your healthcare, no matter how much the things you get.

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Nearly 90% of current retirees say Social Security is either a primary or secondary source of income, according to a 2022 Gallup survey. It’s helpful, then, to understand upcoming changes to the program and how they might affect your retirement income.

It was a historic year for Social Security, and the changes in 2023 could be massive. While we won’t know all the details until later this year, here’s what you can expect.

A cost-of-living adjustment, or cost-of-living adjustment, is an annual increase in benefits to help Social Security keep pace with inflation. Typically, the value of COLA decreases between 2% and 4% per year. In 2021, seniors made a whopping 5.9% rise to explain higher inflation late in the year.

Next year, the value of COLA will almost certainly be higher. Inflation is at its highest level in decades, which means recipients will likely experience one of the largest cash collections (COLA) on record.

Seniors will need to wait until October to see exactly how much they will get, which is when the Social Security Administration announces the new COLA. Some experts have predicted it could fall anywhere from 8.6% to 10.8%, though, based on inflation data so far this year.

High inflation affects almost all aspects of Social Security. Higher COLA rates result in more monthly checks for seniors, and this also means an increased maximum benefit amount.

The maximum benefit amount depends on your earnings history, the length of your career, and the age at which you begin claiming Social Security. In 2022, it $4,194 per month. But based on the record-breaking COLA we’ll likely see, there’s a good chance it will be even higher in 2023.

Exactly how much will change is uncertain. However, between 2021 and 2022, it increased by about $300 per month. With inflation rising, the increase next year is almost certain to be even greater.

To be fair, only a small percentage of seniors will be eligible for the maximum benefit amount. But if you aim for as many checks as possible, there will be more money available in 2023.

If you continue to work after applying for Social Security, you may get more monthly checks in 2023.

During the years before you full retirement age (FRA), your income will be subject to the earnings limit. If your salary exceeds this limit, a portion of your Social Security benefits will be withheld until you reach your FRA. In some cases, the entire benefit amount will likely be deducted, depending on how much income you earn.

In 2022, that limit would be $5,660 per year (or $51,960 if you were to reach your HR assessment this year). Since inflation has been so high, these limits will likely increase significantly in 2023 – which means you’ll be able to earn more without withholding your benefits.

Inflation has been hard on everyone, and the elderly are no exception. Although we won’t know the details of next year’s Social Security changes until the coming months, they could help make higher costs more bearable.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

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We can start compiling as early as age 62, and most people start compiling around age 62 or 63. There are good reasons not to do this – as well as some arguments in favor of it. Here’s a closer look at why you might regret claiming at 62 — followed by some reasons that might make sense to you.

Most of us havefull retirement age“Where we can start to collect the full benefits that we are entitled to, based on our earnings history, and for most of us, it’s 66 or 67. For every year before the full retirement age that you get your benefits, it will shrink specifically, you’ll get About 70% to 75% of your full benefits if you start collecting at age 62.

This isn’t ideal, but it’s also not as bad as it sounds – after all, while the checks may be smaller, you’ll collect a lot more in total. For those who live moderately long lives, there won’t be much difference in the total benefits received regardless of when benefits start to be provided.

However, you should think about the bigger picture before deciding when to start collecting your benefits. For example, married people may benefit most from Social Security by coordinating when each of them begins. While both of you will enjoy two benefits checks each month, it’s possible that at some point, one of you will go — and then only one will be arriving. The rules allow you to collect any greater benefit. So it’s worth trying to check at least one of your benefits as closely as possible.

A good way to maximize your benefits is to delay the start of earning it – until age 70. If the spouse with the largest earnings delays until the age of 70, this can greatly help the lower-income earner, if he or she is a surviving spouse in the future.

Another consideration is if you Plan to continue working After age 62. If you start collecting Social Security and then also work, if you earn more than a certain amount, the Social Security Administration (SSA) may cut your benefits. As he explains:

If you’re under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $5,660.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different threshold. In 2022, your maximum earnings are $51,960. We only calculate your earnings until the month before you reach your full retirement age, not your earnings for the entire year.

This may sound horrible, but once you reach your full retirement age, the SSA will stop withholding benefits and will recalculate your benefits, given what was withheld. So you will get at least some of the retained benefits. However, it may be best not to start collecting these benefits early if you plan to continue working for much longer.

Despite the above reasons, there be Some reasons why you might want to start collecting files Social Security benefits early. For example:

• You don’t know how long you will live. If you end up waiting until age 70 to collect the money and then die at age 72, you won’t be out much of Social Security. Think a little about your health and how long your relatives lived. If you have a good chance of living a very long life, delaying as long as possible may be best.
• Perhaps you can afford to retire early. Many people start reaping the benefits early because they have to. They may have lost their jobs or for whatever reason they simply need this income ASAP. Many of those who can afford to delay should start collecting their benefits, but if you do a great job saving and investing for retirement and can afford to retire early, starting early can make sense.

The decision on when to start collecting Social Security benefits will be different for most of us. Take some time to learn more and think about everything before taking any actions, so that you can get as much out of the program as possible.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

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The answer depends on a few factors, including your overall financial health. Below, we’ll talk about everything to consider so you can decide on the best move for you.

the retirement Really important to a lot of people, but your daily financial security should come first. You need to make sure you have enough money set aside to cover your basic bills. This includes expected monthly expenses, as well as bills that appear once or twice a year.

Then you need to build a file emergency fund If you don’t already have one. At a minimum, you should set aside at least three months of living expenses, and six or twelve months is better. It is up to you to decide what you feel comfortable with.

If you already have an emergency fund, review it now. With expenditure inflation rising, your current emergency fund may not be enough. Consider boosting it up a bit to account for the higher costs.

Make sure you do these things before allocating any money for retirement. Failure to do so could put you in serious trouble if an unexpected bill appears. You may have to transfer money from your retirement savings, and you may end up with long-term debt problems if you don’t have another way to cover these unexpected costs.

After your bills and emergency fund are taken care of, you can turn your attention to it retirement savings. You may be wary of investing now with fears of an impending recession, but don’t let that stop you. There is always a risk in investing, even when times are good. And in the long run, most people see their wallets doing well.

Plus, postponing retirement can make your job harder when you’re starting out. Let’s say you’re 25 years old and want to save $1 million by 65. You can do that by saving $403 per month if you earn an annual rate of return of 7%. But delaying retirement savings by just one year means you’ll now have to set aside an extra $30 per month. This may not sound like much, but over the course of your career, you’ll have to save $14,000 more than you would if you started saving at 25.

If you are worried about losing money in the near term, the best thing to do is to use a strategy called Average cost in dollars. This is where you set aside a certain dollar amount in a table, such as a percentage of your salary in each pay period. Sometimes you will buy when stock prices are high; Other times, you’ll buy when prices are low. In the end, you will pay the average amount.

Dollar cost averaging can also help you avoid making emotional decisions, which is helpful all the time but especially during a recession. You can often automate your contributions, and once you’ve done that, there’s usually no need to check your portfolio every day. Your daily ups and downs shouldn’t matter much anyway if you have contracts until retirement.

Focus on making regular contributions over time. Consistency is key to building an egg nest that will carry you through the rest of your life.

The $18,984 Social Security Bonus Most Retirees Totally Forgot

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

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Private equity firms stick to a long-term investment strategy, averaging around five years. They keep investing during turbulent times, and quickly do enough due diligence (will this company add value?) to work out the kind of short-term buying opportunities that economic bottoms create. By buying steadily when other investors are walking away, PE is getting promising assets at a deeper discount.

Like private equity firms, individual investors can also pursue long-term strategic decisions. Sticking to a regular investment schedule and staying diversified, even in a volatile market, provides investors with an opportunity to buy into solid companies that may have simply been dragged into tempting values ​​alongside the rest of the market.

Additionally, private equity groups cannot cash out their investments quickly or easily. This prevents private equity firms from selling out of panic; They tend to stick with their investments through tough markets. Public market investors may benefit from the same patience and discipline.

Private equity funds know how to keep cash on hand in a variety of economic climates, giving them plenty of "dry powder" to use for dealing deals. If they need the money to seize a short-term opportunity, they don’t necessarily have to worry about borrowing when interest rates are higher. This strategy can be difficult for individual investors to imitate, and it requires planning (tracking income, expenses, and savings). But if you have low debt, and set aside a cash fund that you can tap into when you need it, you can follow PE to act quickly when opportunity knocks.

Private equity firms also have access to experienced and experienced people. Focused teams, value creation and sector professionals who work exclusively in a portfolio can analyze market cycles and find opportunities that may not be obvious to the average investor. Investors, this is where they pay to access knowledge; It is important to do your research and due diligence before jumping into investing.

Recently, the number of private equity investment opportunities has dwindled, and the values ​​at which private equity groups sell companies have declined, with further declines likely in the coming months. It remains to be seen if PE will once again overcome this downturn, and maintain its overall outperformance compared to the general markets.

In the meantime, try not to act on your fears during the economic downturn. Instead, take the same steps that have seen private equity during previous stock market storms: focus on the long-term, stick to the investments you believe in, and look for new opportunities when the market is trading at a discount.

The $18,984 Social Security Bonus Most Retirees Totally Forgot

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

Motley Fool has a profile Disclosure Policy.