Transcript
WEBVTT
00:00:00.119 --> 00:00:07.288
In today's episode, you'll learn how to prepare for and take full advantage of, your open enrollment period and employee benefits package.
00:00:07.288 --> 00:00:12.512
We will discuss the basics and some of the more overlooked benefits that you may be missing out on.
00:00:12.512 --> 00:00:29.810
We hope that after listening to today's episode, you'll have a better understanding of which benefits to look for that best suit you and your family.
00:00:31.672 --> 00:00:33.255
Hey babe, what are we talking about today?
00:00:34.335 --> 00:00:37.585
Today we are talking about open enrollment.
00:00:38.427 --> 00:00:43.043
It is about that time of the year where open enrollment should be happening for most people.
00:00:43.807 --> 00:00:47.963
Yes, I know open enrollment usually causes me anxiety.
00:00:47.963 --> 00:00:52.412
If there's too many choices, I'm like what do we do?
00:00:52.412 --> 00:01:22.873
So I'm always glad to have you, because we actually will schedule time to sit down during open enrollment Because fun fact the whole family is on my benefits package at all times and so I don't want to make any mistakes or make any wrong assumptions, and so Brandon and I will sit down and we will have pre-planned you know what everything is and what we're going to do for the upcoming year and analyze what benefits we used and or didn't use from the current year.
00:01:23.561 --> 00:01:30.608
The irony is that you always want to know all the options in most scenarios, but knowing all the options gives you anxiety.
00:01:31.221 --> 00:01:39.471
Well, because in this instance, it's like the options that you choose will directly impact my entire family for an entire year.
00:01:39.471 --> 00:01:43.671
So it's not just like oh, I should have picked Mexican over Chinese food.
00:01:43.671 --> 00:01:47.531
Like it just feels like a really big deal and I don't want to mess it up.
00:01:48.019 --> 00:02:10.349
No, I can understand that, because one of the big things about annual enrollment is that it is the one time during the year where you do get to pick your benefits for your workplace benefits package and most of the benefits you only get that one time of the year, with a few exceptions where you can make changes, but most of the time it's that one time of the year where you can make it and if you do make any mistakes you unfortunately do have to wait until the following year for the most part.
00:02:10.699 --> 00:02:18.330
Yeah, and we're not getting married or divorced, we're not having any more children, and so none of those exceptions to the rules are going to apply to us.
00:02:18.580 --> 00:02:18.901
Very true.
00:02:18.941 --> 00:02:22.187
So that means we're going to be stuck with whatever I choose for a year.
00:02:22.187 --> 00:02:28.835
So I want to make sure that I pick the right thing and we want to make sure that you pick the right thing for you and your family as well.
00:02:29.236 --> 00:02:51.129
Yeah, the purpose of this episode is to kind of key you into some of the points of your workplace benefits package that you need to pay attention, to make sure you understand, and then also highlight some of the most you know, some of the overlooked benefits that could be very beneficial if your employer offers it, and it might be something that you want to take a look into because it could allow you to maximize the benefits that are offered to you more.
00:02:52.300 --> 00:02:53.705
Yeah, absolutely so.
00:02:53.705 --> 00:03:07.545
By the time you hear this episode, you should be looking at or reviewing your benefits information and typically what happens with your employer is they give you time to look over any changes that are coming right.
00:03:07.545 --> 00:03:09.390
Are they changing healthcare providers?
00:03:09.390 --> 00:03:10.740
Are they going you know?
00:03:10.740 --> 00:03:11.823
Are they adding plans?
00:03:11.823 --> 00:03:13.146
Are they removing plans?
00:03:13.146 --> 00:03:20.569
They're going to give you an email or a landing page to go to to review what's going to be available to you.
00:03:20.569 --> 00:03:25.153
Our suggestion is look at that packet, write down questions.
00:03:25.153 --> 00:03:33.603
There's probably going to be calls and webinars with some of the representatives from these providers for you to ask questions.
00:03:33.603 --> 00:03:35.228
Maybe an FAQ document.
00:03:35.609 --> 00:03:42.028
You don't want the day that you actually sign up to enroll to be the first time that you're looking at this information.
00:03:42.811 --> 00:03:43.573
It's overwhelming.
00:03:43.573 --> 00:03:52.490
It's going to be a lot of information that you need to look over and you also want to take some time to reflect on the year that you had right.
00:03:52.490 --> 00:03:54.388
How much did you pay for your prescriptions?
00:03:54.388 --> 00:03:58.151
Did you have to get a referral to go to a certain doctor?
00:03:58.151 --> 00:04:00.328
Was that super frustrating to you?
00:04:00.328 --> 00:04:03.580
Did you constantly have high medical bills to pay?
00:04:03.580 --> 00:04:09.068
Would you rather pay, you know, a lesser copay or more coming out of your paycheck?
00:04:09.068 --> 00:04:17.944
I mean, you're really going to need to analyze what did this current year look like for you and did it work, or would you like to make some potential changes?
00:04:17.944 --> 00:04:26.009
Also, did you miss out on some benefits that maybe you overheard some of your colleagues talking about, that you wish you would have taken advantage of?
00:04:26.009 --> 00:04:36.084
These are the times to look that over, make some notes, write down some questions and make sure that you're prepared for when you actually go to select your benefits for the 2025 year.
00:04:36.665 --> 00:04:36.826
Yeah.
00:04:36.826 --> 00:04:40.701
So the first thing you want to make sure you understand is when is open enrollment for you?
00:04:40.701 --> 00:04:46.072
Normally, for most people, when it comes to their employer, it's sometime between October and December.
00:04:46.072 --> 00:05:01.786
But you do want to know the specific dates of when open enrollment starts and when it ends, because you do need to make your selections within that time period, because if you don't make your selections within that time period, normally it's going to default to what you're currently enrolled in, all right.
00:05:01.786 --> 00:05:02.889
So keep that in mind.
00:05:02.889 --> 00:05:04.774
You know, keep that in mind.
00:05:04.774 --> 00:05:35.172
No-transcript benefits that most people associate with open enrollment, first being health insurance.
00:05:35.172 --> 00:05:35.560
All right.
00:05:35.560 --> 00:05:50.641
Now this is the one that probably gives most people anxiety because of the different types of plans that are available to you through your employer and what the different plans entail, and trying to determine which plan works best for you, all right.
00:05:50.641 --> 00:05:55.637
So with that you know some of the plans that are, I would say, are on.
00:05:55.637 --> 00:06:01.851
Most employers are going to be, such as an HMO, which is a high maintenance organization plan.
00:06:01.851 --> 00:06:05.762
Then you have your PPO, which is your preferred provider organization.
00:06:05.762 --> 00:06:10.995
You have your HDHP, high deductible health plan.
00:06:10.995 --> 00:06:13.202
You have some other ones that are also available to you.
00:06:13.543 --> 00:06:18.259
The difference is looking at each plan and seeing what it entails.
00:06:18.259 --> 00:06:21.552
And what I mean by that is how much are the premiums on a monthly basis?
00:06:21.552 --> 00:06:23.142
So how much are you going to be paying for that plan?
00:06:23.142 --> 00:06:27.196
What is the co-insurance or co-pays that are associated with that plan?
00:06:27.196 --> 00:06:30.584
What is the flexibility of being able to see certain providers?
00:06:30.584 --> 00:06:30.824
You know?
00:06:30.824 --> 00:06:38.074
Do you need to have a primary care provider, make any referrals to any type of specialist, or can you just go see a specialist?
00:06:38.074 --> 00:06:44.226
If you're already seeing a doctor and you want to make sure that you can continue to see that doctor, does your plan allow for that?
00:06:44.226 --> 00:06:50.036
And that's what I mean by looking through the different plans and then analyzing it based upon what are your specific needs.
00:06:50.560 --> 00:07:10.593
So, for example, with a high deductible health plan, that's normally going to be someone who is, you know, fairly on the younger end and also fairly healthy, because, as the name of the plan indicates, the high deductible health plans that it has a high deductible, which means that you're going to have to pay more out of pocket before you reach a certain benefit.
00:07:10.593 --> 00:07:14.790
But the benefit of that is that the premiums are lower on a monthly basis.
00:07:14.790 --> 00:07:16.968
So who is this plan good for?
00:07:16.968 --> 00:07:23.492
Someone who is healthy, doesn't have to see a doctor on a regular basis, maybe does the regular checkups, that's about it.
00:07:23.492 --> 00:07:52.067
So you would benefit from the lower premiums, but you still have health insurance if you do have those emergencies as compared to on the opposite spectrum, say like a PPO, which is a lot more flexible in regards to the different type of providers you can see, and then also it provides a lower deductible because if you're someone that's going to the doctor on a more regular basis because maybe you have pre-existing conditions children, whatever it may be you're going to go to the doctor more often and it has a lower deductible.
00:07:52.408 --> 00:07:57.382
So you're going to hit that sooner because you're going to the doctor more often, so you're going to hit that extra benefit sooner.
00:07:57.382 --> 00:08:02.533
But on the opposite end is that you do pay more on a monthly basis for your premiums.
00:08:02.533 --> 00:08:08.208
But what I really want to point out is that you have to analyze your specific situation, your specific needs.
00:08:08.208 --> 00:08:09.651
You can't just simply say oh, you know.
00:08:09.651 --> 00:08:11.184
Let me ask my coworker what they're in.
00:08:11.184 --> 00:08:14.141
Their situation could be completely different from yours.
00:08:14.141 --> 00:08:19.084
They could look like a healthy individual and for all you know they could have a lot of other conditions that you may not know about that.
00:08:19.084 --> 00:08:21.050
They see doctors for which would you know?
00:08:30.079 --> 00:08:32.365
cause for them maybe to have a completely different plan than you.
00:08:32.365 --> 00:08:35.715
Yeah, if brandon was a single guy, he would be on the high deductible plan because he never goes to the doctor.
00:08:35.715 --> 00:08:36.738
I go to the doctor for regular checkups.
00:08:36.758 --> 00:08:37.418
I don't never go to the doctor.
00:08:37.418 --> 00:08:38.764
He would be on the high deductible plan.
00:08:38.764 --> 00:08:42.139
Yes, I would be on the high deductible plan because yes I'm otherwise.
00:08:42.299 --> 00:08:49.774
I'm a healthy 41 year old male who doesn't isn't on any type of medications, thankfully, and don't have to really see the doctor outside of routine checkups.
00:08:50.181 --> 00:09:05.732
But we have a PPO plan because I have specialists that I see regularly and we have two children and you know they have their things and I'd rather make sure that everything's covered and, in the event of something happening, we're good to go.
00:09:07.903 --> 00:09:14.335
And also a lot of these employers now have programs and software that help you analyze it better.
00:09:14.335 --> 00:09:25.389
So if you have access to that, use it and if you have any questions, call into the call center and maybe ask them the questions and maybe they could talk you through it.
00:09:25.389 --> 00:09:32.716
Because I would say you can reach out to your HR person but they're probably not going to know the specifics of the plans and enough to advise you on it.
00:09:32.716 --> 00:09:39.321
So I would definitely utilize the provider that they're going through to find out any questions that the answers, any questions that you may have.
00:09:39.900 --> 00:09:40.902
Yeah, absolutely.
00:09:40.902 --> 00:09:43.705
Have you been listening to our podcast and wondering how am I really doing with my money?
00:09:43.705 --> 00:09:44.885
Yeah, absolutely.
00:09:44.885 --> 00:09:49.789
Have you been listening to our podcast and wondering how am I really doing with my money?
00:09:49.789 --> 00:09:52.533
Am I doing the right things with my investments?
00:09:52.533 --> 00:09:55.215
Am I on track to reach my financial goals?
00:09:55.215 --> 00:09:56.976
What could I be doing better?
00:09:56.976 --> 00:10:12.205
If you answered yes to any of these questions, then it's time for you to reach out to Brandon to schedule your free yes, I said free 30-minute introduction conversation to see how his services could help make you the more confident moneymaker we know you could be.
00:10:12.205 --> 00:10:13.926
What are you waiting for?
00:10:13.926 --> 00:10:21.471
It's literally free and, at the very least, you'll walk away feeling more empowered and confident about your financial future.
00:10:21.471 --> 00:10:23.113
Link is in our show notes.
00:10:23.113 --> 00:10:24.714
Go, schedule your call today.
00:10:24.714 --> 00:10:28.736
What else?
00:10:29.057 --> 00:10:32.119
little bit easier to choose, only because normally there's less options available to you.
00:10:32.119 --> 00:10:43.114
You know, for the most part there's normally one or two, one.
00:10:43.114 --> 00:10:47.289
Normally it's only one vision plan for the most part, and then there may be, like you know, two or three dental plans, but for the most part they're very basic.
00:10:47.289 --> 00:10:50.826
But you do want to understand, you know what each one entails.
00:10:50.826 --> 00:10:55.375
So, for example, like you, also want to analyze what's going to happen in a given year for you.
00:10:55.375 --> 00:10:57.960
So, for example, if you like us, we have young kids.
00:10:57.960 --> 00:11:03.950
Once they get to a certain age, then we had to go ahead and put them on our dental plan as compared to you as an infant.
00:11:03.950 --> 00:11:05.014
Infants don't have teeth.
00:11:05.966 --> 00:11:07.432
So you don't need them on your dental plan.
00:11:07.725 --> 00:11:09.086
But once they do have teeth.
00:11:09.086 --> 00:11:25.807
I mean, I've heard of scenarios where you know you have a very young toddler who falls off of their little bike or scooter who falls off of their little bike or scooter and now they've got to go to some oral surgeon and they weren't on that dental plan.
00:11:25.807 --> 00:11:27.111
So you know, those plans in our experience are very affordable.
00:11:27.111 --> 00:11:30.323
So if you can add, you know your children for a couple bucks a month.
00:11:30.323 --> 00:11:38.509
Sometimes it's better to have and not need than to need and not have, because we know these children are accident prone and I'd rather have insurance for them.
00:11:39.386 --> 00:11:40.250
One sidebar rant.
00:11:40.250 --> 00:11:47.057
Why is dental health and vision all separate when they're all part of my body and all health?
00:11:47.525 --> 00:11:50.495
I mean, they really should all fall under one plan.
00:11:50.605 --> 00:11:53.455
It doesn't make any sense that we have separate plans for each one of those.
00:11:53.686 --> 00:11:54.735
I wonder if it's like that.
00:11:54.735 --> 00:12:00.837
I have no idea, but I wonder if it's like that in other countries or if that's one of our nice American benefits.
00:12:00.878 --> 00:12:06.581
I don't know, but you do want to understand the specifics of them and so like.
00:12:06.581 --> 00:12:17.494
Sometimes, for example, like as someone who has worn glasses full time since I was in first grade, I'm always very much looking at the vision plan and the details of it, and you're going to make sure you understand it, because sometimes you can use it improperly.
00:12:17.793 --> 00:12:25.739
So, for example, like a vision plan may offer um, you might be able to get new glasses every other year and not every year.
00:12:25.739 --> 00:12:33.715
So if you make the mistake of getting it one year and then you try to get it the next year as far as getting glasses, then you might have to pay out of pocket when you thought that was going to be covered.
00:12:39.205 --> 00:12:41.870
So it's making sure that you just understand the specifics of the details and the plans that you have.
00:12:41.870 --> 00:12:50.049
I feel like our eye care office is really good about telling us, okay, this year you can do contacts, or this year you can do your glasses, and letting us know.
00:12:50.049 --> 00:13:09.215
But again, if you follow us on socials you know I've gotten got in this last year with all sorts of ridiculous things and it is up to us to look at our plan and understand what we have available to us and what we don't, even if somebody should be telling us and they don't.
00:13:09.544 --> 00:13:17.956
Well, also, too, with the addition of so many other places to get glasses and contacts, so you're not necessarily always going through your eye doctor to get these things anymore.
00:13:17.956 --> 00:13:28.513
So, for example, like me, I'm a Warby Parker guy and I always buy my glasses from Warby Parker, and it's up to me to know when I'm going to be able to get reimbursement and when I'm not, because Warby Parker is not going to do that for me.
00:13:28.673 --> 00:13:38.980
Yeah, and I get my glasses from ZLUEL online because I get a bunch of different pairs that are fun and all different colors and patterns and shapes, because they're super cheap.
00:13:38.980 --> 00:13:42.615
But I can actually use my FSA card for that, for those as well.
00:13:42.965 --> 00:13:47.510
And shout out to Warby Parker I will start wearing my glasses all the time if you want to sponsor the podcast.
00:13:47.591 --> 00:13:48.813
Yes, Thanks, Warby.
00:13:48.813 --> 00:13:50.798
Perfect.
00:13:50.798 --> 00:13:51.438
What's next babe?
00:13:51.759 --> 00:13:57.841
Well, next, I would kind of say what's kind of the second tier, because the first ones we talked about those are the primary ones that most people know about.
00:13:57.841 --> 00:14:14.613
When it comes to open enrollment, I would say this is kind of the second tier in regards to people know about them, but I don't think they take them quite as serious as they should, because I think they are very important benefits and it's very important for you to understand what are they offered and also what are the details and make sure that you're enrolled in them.
00:14:15.014 --> 00:14:15.433
What are they?
00:14:15.894 --> 00:14:17.498
First is going to be disability insurance.
00:14:17.498 --> 00:14:47.682
All right, I think that's one of the most overlooked type of insurances there is because people from an illness standpoint, it's significantly higher than dying during your primary earning years, when life expectancy is significantly longer than what your current age is.
00:14:49.666 --> 00:14:51.673
Brandon loves talking about disability insurance.
00:14:51.673 --> 00:14:53.231
He takes it very seriously.
00:14:53.684 --> 00:14:57.852
Because it's one of those things where, as a healthy person, you don't think like, oh, it can't happen to me.
00:14:57.852 --> 00:15:03.109
It can't happen to me, but for most of us we are determined, we are dependent upon our future income.
00:15:03.109 --> 00:15:08.671
And if something happens where you are no longer able to bring in that future income, what happens?
00:15:08.671 --> 00:15:15.130
Because you do all the financial planning, you can do all the right planning in the world, but a lot of that planning is dependent upon an income coming in.
00:15:15.130 --> 00:15:21.500
So if there's anything that you can do to protect your future income, I highly recommend doing it.
00:15:22.304 --> 00:15:23.571
So one is taking a look in.
00:15:23.571 --> 00:15:26.313
Does your employer offer disability insurance?
00:15:26.313 --> 00:15:30.034
And by that I mean short term disability and long term disability.
00:15:30.034 --> 00:15:41.695
All right, so you want to see if they offer it first Hopefully they do and in the event that they do offer it, you want to understand the specifics of that plan.
00:15:41.695 --> 00:15:47.009
By specifics I mean one how long is the short-term disability and what is the payout?
00:15:47.009 --> 00:15:52.183
Is it 100% of your income, 80%, 60%, whatever it may be?
00:15:52.183 --> 00:15:58.815
You need to know what that is, because it's going to make a big difference in regards to if you have to go on it and whether or not you're going to be able to cover all your bills.
00:15:59.664 --> 00:16:05.778
And that is especially important for people who earn a commission, because typically get to that part, oh OK.
00:16:07.404 --> 00:16:11.110
So, with the long skipping, ahead with the long term disability.
00:16:11.751 --> 00:16:16.198
You also want to know whether or not you have that and what percentage of your income will it cover.
00:16:16.198 --> 00:16:19.889
All right, whether or not you have that and what percentage of your income will it cover?
00:16:19.889 --> 00:16:20.410
All right, I would say.
00:16:20.410 --> 00:16:23.706
The standard that I've seen when an employer offers it is that it is covered at 60% of your income.
00:16:23.706 --> 00:16:30.568
Now, the big thing, kind of just was about to bring up, is that normally, disability insurance only covers your base salary.
00:16:30.568 --> 00:16:41.434
So if you're someone that highly is dependent upon commissions or bonuses as part of your total compensation package, then this part is not going to be included on your disability insurance policy.
00:16:41.434 --> 00:16:46.331
All right, now, with that being said, there are other ways to you know.
00:16:46.331 --> 00:16:47.836
Take care of those which we'll get to in a minute.
00:16:47.836 --> 00:17:05.218
But you also want to also understand you know, keep in mind that since your employer if you have an employer that's paying for your disability insurance plan, then you will be taxed if you go out on claim, if you have to pay a certain portion of it yourself, then you may not be taxed on if you went out on claim.
00:17:06.305 --> 00:17:11.673
Now there are also some more minor details that you need to understand too.
00:17:11.673 --> 00:17:25.152
Makes $10,000 a month and your long-term disability package provides a 60% benefit, which means that if you went out on disability claim, you'd be receiving $6,000 a month.
00:17:25.152 --> 00:17:35.130
However, there are might be other stipulations where it has a $5,000 a month cap, so you're not getting 60% anymore, you're only getting 50%.
00:17:35.130 --> 00:17:41.414
So you need to keep that in mind also because, like I said, there are different details that can be written into these policies.
00:17:41.414 --> 00:17:59.712
You just want to make sure you clearly understand them, and one of the things I also think people miss is that just because you have a disability insurance plan through your employer doesn't mean that you are not eligible for an individual disability plan outside of your employer, which can help increase the amount of money that you would receive if you did go on a disability claim.
00:17:59.712 --> 00:18:01.625
So always keep that in mind as well.
00:18:02.569 --> 00:18:04.016
Is that something you could help people with?
00:18:04.036 --> 00:18:07.207
That is 100%, something I can help people out with.
00:18:07.788 --> 00:18:09.191
Perfect, what else?
00:18:10.192 --> 00:18:11.516
We kind of mentioned it earlier.
00:18:11.516 --> 00:18:12.999
But the life insurance aspect.
00:18:12.999 --> 00:18:29.237
Often they offer some form of life insurance, whether the employer is paying for it or it's a very small amount for you to pay out of pocket, and it normally can be anywhere from, you know, one or two times your salary to even more if you want to pay more for it.
00:18:29.237 --> 00:18:29.657
So you can.
00:18:29.657 --> 00:18:36.189
Sometimes you have a base amount that the employer pays for for you and then you can opt into paying for additional life insurance.
00:18:37.070 --> 00:18:49.152
Now, with that, one of the benefits is is that some people are uninsurable, whereas if they were to go to a life insurance company and try to get a plan on their own, they would not be eligible for one.
00:18:49.152 --> 00:19:00.625
However, they would be eligible for a plan through their employer because the underwriting that occurs and the underwriting is simply the process of determining whether or not you are eligible for life insurance policy and how much you would pay for it.
00:19:00.625 --> 00:19:20.355
If you the underwriting process for these group plans through your employer don't have medical underwriting for the most part, now sometimes they do If you want to get a certain amount of additional life insurance uh, life insurance then you might have to go through the underwriting process, but normally for a base policy.
00:19:20.355 --> 00:19:21.978
I'm just, words are eluding me.
00:19:21.978 --> 00:19:28.045
Today, for a base policy, there's no medical underwriting, so this can be extremely beneficial for people that cannot get policies elsewhere.
00:19:28.486 --> 00:19:34.228
And again, these are typically pretty inexpensive and sometimes free, depending on where you work.
00:19:34.228 --> 00:19:44.375
So enrolling for them when the premiums are really low in comparison to what they might be if you were paying outside of your employer, get them.
00:19:45.115 --> 00:19:54.826
Yeah, and you also may have the option to enroll your spouse, so you could have a spouse that otherwise would be uninsurable, that you might be able to get them life insurance through your employer, same with your children.
00:19:54.826 --> 00:19:59.778
So the idea is just look at the options that are available to you and make sure you understand them.
00:19:59.778 --> 00:20:14.011
And also one of the benefits is that sometimes these plans are also what's called portable, so you could get a life insurance policy through your employer without having to go through medical underwriting, because otherwise you'd be uneligible, ineligible, like I said.
00:20:14.011 --> 00:20:14.271
Words.
00:20:15.233 --> 00:20:16.095
Words are hard.
00:20:16.695 --> 00:20:24.193
And if you were to leave that employer, you might be able to take that plan with you, which could be, like I said, extremely beneficial for people who otherwise wouldn't be able to get one.
00:20:24.555 --> 00:20:37.396
Yeah, and even if you have, like we have external policies for life insurance and disability insurance, but I always still get them through my employer, because who is going to complain about extra money, should something happen?
00:20:41.644 --> 00:20:45.762
Yeah, they're normally very cost efficient and, once again, this is something I can help you out with as well, if you need help with a plan, yeah, absolutely All right.
00:20:45.782 --> 00:20:53.327
Let's talk about some of the other benefits that are not as obvious but are good to be aware of and potentially good to enroll in.
00:20:53.788 --> 00:20:57.036
Now I would say the first one I want to talk about is HSAs and FSAs.
00:20:57.036 --> 00:21:00.753
I put them in this category because I think people overlook them.
00:21:00.753 --> 00:21:05.871
They maybe have heard of them, have a kind of an idea of what they are, but often don't enroll in them.
00:21:06.393 --> 00:21:06.532
Okay.
00:21:06.573 --> 00:21:07.153
All right.
00:21:07.153 --> 00:21:17.201
So with the HSA, a health savings account is a way for you to put pre-tax dollars away into a HSA and that allows you to one.
00:21:17.201 --> 00:21:28.339
You can use them to pay for qualified medical expenses or, if you don't need to use it for those medical those qualified medical expenses you actually can invest these dollars in the market and they can grow.
00:21:28.862 --> 00:21:32.173
People in the fire movement financial independence, retire early.
00:21:32.173 --> 00:21:34.760
People in fire love HSAs.
00:21:35.303 --> 00:21:45.000
Because it's the one way that can be a triple benefit in regards to not paying taxes on the amount going in, not paying taxes on any growth and not paying taxes on the way of it going out.
00:21:45.325 --> 00:21:46.832
Triple tax advantage.
00:21:47.346 --> 00:21:58.597
And that's one of the things that I don't think people use it quite enough, and especially when you're younger, this is the time period because you can only have an HSA with a HDHP, a high deductible health plan.
00:21:58.597 --> 00:22:03.539
That's the only way that you can have an HSA and actively contribute to it, which is why we don't have one.
00:22:03.682 --> 00:22:06.607
Correct, because we have a PPO, but it is.
00:22:06.607 --> 00:22:08.054
I mean, it is a great vehicle.
00:22:08.054 --> 00:22:10.365
If it makes sense for you, yeah.
00:22:11.105 --> 00:22:26.836
And for those individuals who obviously may not be in an HDHP and don't have access to an HSA, you can have access to an FSA, a flexible spending account, where it works very much the same in the sense of it's putting pre-tax dollars away that you can use for qualified medical expenses.
00:22:26.836 --> 00:22:31.769
The main difference being is that with an FSA, you have to use it in that given year.
00:22:32.330 --> 00:22:42.654
Remember we had a very early on episode if you've been with us for a long time, where we said FSA fast, you have to use it fast because you only have 12 months.
00:22:42.654 --> 00:22:44.952
So whatever you don't use, you lose.
00:22:44.952 --> 00:23:05.709
Now I will say, for example, my employer there's actually an entire portal where, towards the end of the year, it'll say you have X amount of dollars left and then it'll flash up the website and you can use it on all sorts of things, even Ray-Ban sunglasses, I mean heating pads, feminine care products, body washes, I mean pretty much anything.
00:23:05.709 --> 00:23:09.963
Contact lens solution, I mean the sky's the limit, almost right.
00:23:09.963 --> 00:23:14.896
But there's an entire portal where they want to make sure that you're not losing that benefit.
00:23:15.285 --> 00:23:25.531
What I will say, because we have an FSA, the reason we enrolled is because my company gives us essentially free money towards it.
00:23:25.531 --> 00:23:26.736
So if you enroll in the FSA, you contribute a certain amount.
00:23:26.736 --> 00:23:28.986
They will either match or give you X amount of dollars.
00:23:28.986 --> 00:23:33.856
I think in our case it was 1500, quote, unquote free dollars.
00:23:33.856 --> 00:23:38.705
Right, that makes sense because I have monthly prescriptions and etc.
00:23:38.705 --> 00:23:39.126
Etc.
00:23:39.126 --> 00:23:52.763
So what I will say and what's been driving me crazy is that there is a lot of documentation involved in the FSA because there are requirements, legal requirements from the.
00:23:52.763 --> 00:23:57.931
I don't know if it's on the medical providers, whoever.
00:23:58.391 --> 00:24:17.999
They need documentation to make sure that when I swipe my card at Walgreens or at my rheumatologist office, that I'm actually I mean, I don't know what else I would be purchasing at the rheumatology office but they want to make sure that they have all of the codes needed to understand why I was there, when I was there, what money I spent, why I was seen.
00:24:17.999 --> 00:24:25.366
Needed to understand why I was there when I was there, what money I spent, why I was seen and the portal.
00:24:25.366 --> 00:24:26.450
I know all the portals are different.
00:24:26.450 --> 00:24:37.115
The portal that I have to use is ancient and terrible and I've spent lots and lots of time cursing this portal and I've told Brandon in my fits of anger and rage I'm like we're not doing an FSA again.
00:24:37.115 --> 00:24:38.137
This is garbage.
00:24:38.137 --> 00:24:38.920
Fits of anger and rage.
00:24:38.920 --> 00:24:40.603
I'm like we're not doing an FSA again.
00:24:40.603 --> 00:24:41.244
This is garbage.
00:24:41.244 --> 00:24:45.327
I don't have time for this.
00:24:45.327 --> 00:24:53.286
So just know that there is a an accountability part to the FSA that you will need to document, uh, where you are making your purchases or where you're swiping that card.
00:24:53.807 --> 00:24:55.548
Yeah, so just make sure you know the difference.
