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November 19th, 2014 by

It’s not pleasant to think about the possibility of having a serious condition that prevents you from making medical and financial decisions for yourself. But it’s better to be prepared and hope it never happens than to put your loved ones in the position of making decisions without knowing your wishes.

Retirement Planning
Here are three legal documents you might consider. Because requirements can vary by state, you should consult with an attorney who is familiar with the laws of your state when drafting these documents.

1. Durable power of attorney for health care (HPOA). An HPOA, also known as a health-care proxy, enables you to appoint a representative to make medical decisions for you if you become unable to do so yourself. You can appoint anyone to be your agent as long as the individual is of legal age (usually 18 or older), and you can decide how much power your representative will have. An HPOA should be HIPAA compliant so your representative can access your private medical information.

2. Living will.
This document, which is another type of advance medical directive, can be used to outline which medical procedures you want to be used to prolong your life, typically in the event of a terminal illness. It generally does not become effective until you become incapacitated. Even if your state does not authorize a living will, you may still want one as a way to document your wishes.

3. Durable power of attorney for finances (DPOA). A DPOA enables you to authorize someone to act on your behalf in financial and legal matters. Your agent could pay everyday expenses, watch over your investments, and file taxes, among other tasks. A DPOA may become effective immediately or when a triggering event occurs, such as a doctor certifying that you are physically or mentally incapacitated.

You can select the same person to serve as the agent for your HPOA and DPOA, but you aren’t compelled to do so. Be sure to discuss your wishes with the person you select and let him or her know where you keep the documents; consider giving copies to the agent and key family members. You should also review these documents regularly to make sure they continue to express your wishes.

Freeman Owen, Jr - Host of "Safe Money Talk" on CBS Radio The Big Talker 1580AM  If retirement planning is on your mind, meet with me for a FREE retirement strategy consultation.  Contact my office at 1-833-313-7233 | MD, VA & DC. 
November 4th, 2014 by

HSA and retirement

Health savings accounts (HSAs) come with three powerful tax benefits:
(1) the dollars you contribute are deducted from your income
(2) earnings compound tax-free inside the HSA
(3) withdrawals are also untaxed if the money is spent on qualified health-care expenses

Depending on the state, HSA contributions and earnings may or may not be subject to state taxes.

To be eligible to establish or contribute to an HSA in 2015, individuals must be enrolled in a high-deductible health plan (deductibles of at least $1,300 for individual coverage, $2,600 for family coverage).1 A deductible is the amount the insured must pay before insurance payments kick in.

HSA contributions are typically made through payroll deductions, but in most cases they can also be made directly to the HSA provider. Some employers make an annual contribution to employees’ HSAs. The maximum combined contribution limit is $3,350 for individuals or $6,650 for families in 2015. An additional $1,000 can be contributed starting in the year in which a participant turns 55.2

The primary purpose of an HSA is for workers to set aside pre-tax income to pay unreimbursed medical expenses. But an HSA could also play a role in your longer-term retirement strategy. For instance, research suggests that the average 65-year-old couple could spend as much as $220,000 on health-care costs in retirement.Any accumulated HSA funds could be used for these medical expenses.

Although HSA funds cannot be used to pay regular health plan premiums, they can be used for Medicare premiums and long-term-care expenses. You can no longer contribute to an HSA after you sign up for Medicare, but account funds are still available to pay health expenses — or for any other purpose after you reach age 65. When HSA withdrawals are spent on anything other than qualified medical expenses, they are taxed as ordinary income (but don’t incur the 20% penalty that applies to taxpayers under age 65).

Sources:
1–2) Internal Revenue Service, 2014
3) CBS News, April 16, 2014

Freeman Owen, Jr - Host of "Safe Money Talk" on CBS Radio The Big Talker 1580AM Know what options you have available for your retirement and how to keep your money safe during your golden years.  Meet with me for a FREE retirement strategy consultation, contact my office at 1-833-313-7233 | MD, VA & DC. 
November 3rd, 2014 by

BlueDolphinRest

A Retirement Seminar Just For You

Before 2014 becomes all about the holidays, get fully educated in your options for your retirement nest egg.  If this is something that you have put off because of a) a lack of urgency or b) you just couldn’t find a good time to “deal with it”, let me invite you join me at my FREE seminar for couples just like you. My seminar is filled with topics that you must address to protect your retirement nest egg.

We touch on subjects like:

  • Safeguarding your assets so you do not outlive your money and become a burden to someone else
  • Creating a lifetime income and a retirement reserve for later years
  • Increasing your spendable income
  • Passing your IRA to your children and/or grandchildren without giving most of it to the IRS

Please call now to reserve your seats.

1.877.780.9651

I’m hosting this seminar on Monday, Nov 17, 2014 OR Tuesday, Nov 18, 2014 at 5pm at The Blue Dolphin Seafood Bar & Grill in Gambrills, MD. If you would like to be a part of this seminar, or you know someone who should be there, send them our reservation number. Seating is limited and this seminar fills up fast!

Freeman Owen, Jr - Host of "Safe Money Talk" on CBS Radio The Big Talker 1580AM I do things the way my mother always taught me. I look couples in the eye directly and give you easy, attainable ways to ensure protect your nest egg for your golden years. Should you wish to meet me for a FREE retirement strategy consultation, contact my office at 1-833-313-7233 | MD, VA & DC.