Tax Planning at the Mid-Stage of Your Career

Financial planning that focuses on your goals and helps you achieve flexibility in your journey is critical at the mid-point of your career. It’s how you build a plan to help you realize the lifestyle you want now while keeping longer-term achievements on track. Staying on top of your career earnings by regularly benchmarking your salary to the market and effectively managing equity compensation are two areas where you can keep the income element growing and your wealth building. But an overlooked area is how much of your income you get to keep.

As income increases, it becomes even more essential to ensure that you are optimizing your tax planning. And a good tax plan doesn’t just happen in April every year. Proactive planning during the year, and a strategic plan that takes a multi-year view, can make a big difference in keeping your lifetime taxes as low as possible.

Moves you make now can also set you up for more income potential and greater tax efficiency in retirement. If an early retirement, work-optional, or one spouse temporarily or permanently leaving the workforce is a goal, focusing on effective tax planning can get you there sooner. When you put all the plan elements in play, you can create a lot of optionalities.

Continue reading

GMB Ep #99: Maximizing Workplace Benefits With FSAs and HSAs

 

The open enrollment period for Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) is approaching. During the enrollment period, employees can enroll in or amend their contributions for the future year for FSAs and HSAs, which they can use to pay for their healthcare-related expenses. We dedicated today’s episode to taking a deep dive into several vital facts related to FSA, Dependent care FSA, HSA, and the numerous ways to maximize your workplace benefits under each of them. 

 

 

Show Notes

[04:37] Flexible Spending Account (FSA) – Grant explains what FSA means, how it works, and who can contribute.  

[07:55] Plan the Health Expenses – Why it is essential to forecast the health expenses to pay them on a tax-deferred basis through FSA versus paying out of pocket. 

[09:18] Spend the Fund at Pharmacy – Beneficial features of FSAs, such as the ability to spend the funds at a pharmacy, and why having this option is significant. 

[10:10] Dependent Care FSA – Grant explains the purpose of a Dependent Care FSA, its benefits, and several facts to keep in mind if you are considering using one. 

[15:30] HSA – How to contribute to and HSA and the fantastic tax benefits and investment opportunities that come along with it 

[19:12] Eligibility for HSA – Grant explains the eligibility requirements for HSAs, including having a High-Deductible Health Plan (HDHP). 

[26:00] Connection to the employer – Grant discusses the connection between your HSA and your employer, and why employees can take their balance with them when they’re switching employers. 

 

Resources

What Is a Flexible Spending Account (FSA)?
investopedia.com/terms/f/flexiblespendingaccount.asp 

 

What Is a Health Savings Account (HSA)?
investopedia.com/terms/h/hsa.asp