Author Topic: New To Investing Thread  (Read 327152 times)

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Offline 8manpick

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Re: New To Investing Thread
« Reply #475 on: April 25, 2013, 07:22:45 AM »
My company's HSA is use it or lose it each year (by April 1 of next year)... Total scam right?
:adios:

Offline steve dave

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Re: New To Investing Thread
« Reply #476 on: April 25, 2013, 07:31:09 AM »
My company's HSA is use it or lose it each year (by April 1 of next year)... Total scam right?

That's not an HSA, that's an FSA.

Offline chum1

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Re: New To Investing Thread
« Reply #477 on: April 25, 2013, 07:32:57 AM »
My company's HSA is use it or lose it each year (by April 1 of next year)... Total scam right?

Yes, you have been the victim of a major scam.

Offline Kat Kid

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Re: Re: New To Investing Thread
« Reply #478 on: April 25, 2013, 07:34:29 AM »
My company's HSA is use it or lose it each year (by April 1 of next year)... Total scam right?

Yes, you have been the victim of a major scam.

Chum why don't all businesses have HSA for their employees?

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Offline slobber

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Re: New To Investing Thread
« Reply #479 on: April 25, 2013, 07:46:54 AM »
Hook yourself up with an HSA if at all possible.  True tax free in and out.

Yeah, I max that thing out every year. I can pick between about 20 funds to invest mine.
If you make serious bank, max it out and then pay your medical expenses out of pocket.

hmmmm, explain this to me. I mean, I normally have very minimal medical expenses so this thing has just grown over the years. And I can only write off medical expenses over my 7.5% floor. So I'd be giving up the tax benefit of having an HSA now for more growth and benefit later? that does make sense.
sd...he'll ask you to explain something to him and then, four sentences later, he is all, "Never-mind. Okay, thanks bye."
Also, for those of you that don't make serious bank but are not married, or don't have any kids, or just don't spend crap on medical expenses, this works for you as well. I am just saying, you don't have to make sd type money to follow this advice.

Offline steve dave

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Re: New To Investing Thread
« Reply #480 on: April 25, 2013, 07:48:48 AM »
I talked it out to myself. still wanted confirmation that was what you meant.

Offline chum1

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Re: Re: New To Investing Thread
« Reply #481 on: April 25, 2013, 07:55:06 AM »
My company's HSA is use it or lose it each year (by April 1 of next year)... Total scam right?

Yes, you have been the victim of a major scam.

Chum why don't all businesses have HSA for their employees?

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Not sure at the moment.  First stab is that it's just not a benefit they've chosen to offer.  Usually, they come with a company match like 401k.  I'll think about it some more.


Offline chum1

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Re: New To Investing Thread
« Reply #482 on: April 25, 2013, 08:02:29 AM »
Now I'm starting to think more clearly.  HSAs are only available for those enrolled in High Deductible Health Plans.  So, if an employer doesn't offer any HDHPs, they can't offer HSAs.

Offline The Tonya Harding of Twitter Users Creep

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Re: New To Investing Thread
« Reply #483 on: April 25, 2013, 08:25:29 AM »
I'm a bit confused here as well. HSAs are better for people with low medical bills because you are only paying for the cheapest of medical plans and then your money is gaining interest and if you get really sick you end up paying out of your HSA for that high deductible?

I just signed up for the most expensive medical plan with a low deductible because I didn't wanna risk it. The difference in price was pretty minimal since I don't have a family...
I think what my friend Mitch is trying to say is that true love is blind.

Online michigancat

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Re: Re: New To Investing Thread
« Reply #484 on: April 25, 2013, 08:37:12 AM »
Now I'm starting to think more clearly.  HSAs are only available for those enrolled in High Deductible Health Plans.  So, if an employer doesn't offer any HDHPs, they can't offer HSAs.

I've worked for like five or six companies and none have offered hdhp's. I could get one on my own, but the premium would be way more than the regular deductible plans offered by my employer.

Offline chum1

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Re: New To Investing Thread
« Reply #485 on: April 25, 2013, 08:44:09 AM »
I'm a bit confused here as well. HSAs are better for people with low medical bills because you are only paying for the cheapest of medical plans and then your money is gaining interest and if you get really sick you end up paying out of your HSA for that high deductible?

I just signed up for the most expensive medical plan with a low deductible because I didn't wanna risk it. The difference in price was pretty minimal since I don't have a family...

Premiums for HDHPs are way cheaper overall.  Almost always, if you're young and healthy,  the HDHP will cost you a lot less.  But if you can get a plan without a high deductible at the same cost, you should definitely do that.   

Offline steve dave

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Re: New To Investing Thread
« Reply #486 on: April 25, 2013, 08:47:20 AM »
My HDHP is free for me and my entire family. My company also puts in $1k at the beginning of each year for the HSA and I can contribute up to a bit over $5k which I do. My wife also gets coverage under her job through BCBS which I think you aren't supposed to do but they've never busted us on it.

Offline chum1

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Re: Re: New To Investing Thread
« Reply #487 on: April 25, 2013, 08:49:20 AM »
Now I'm starting to think more clearly.  HSAs are only available for those enrolled in High Deductible Health Plans.  So, if an employer doesn't offer any HDHPs, they can't offer HSAs.

I've worked for like five or six companies and none have offered hdhp's. I could get one on my own, but the premium would be way more than the regular deductible plans offered by my employer.

Yeah, employers often pick up like 60-90% of the premium.  Paying all by yourself sucks. 

Offline chum1

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Re: New To Investing Thread
« Reply #488 on: April 25, 2013, 08:56:02 AM »
My HDHP is free for me and my entire family. My company also puts in $1k at the beginning of each year for the HSA and I can contribute up to a bit over $5k which I do. My wife also gets coverage under her job through BCBS which I think you aren't supposed to do but they've never busted us on it.

One recent trend is that health plans are starting to tack on additional fees if your spouse is eligible for coverage through their employer.  Fascinating info, huh?

Offline ben ji

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Re: New To Investing Thread
« Reply #489 on: April 25, 2013, 08:57:04 AM »
I only have an FSA, no HSA :(.

Offline slobber

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Re: New To Investing Thread
« Reply #490 on: April 25, 2013, 09:00:55 AM »
I talked it out to myself. still wanted confirmation that was what you meant.
I was just saying that you are smart.  :cheers:

Offline slobber

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Re: New To Investing Thread
« Reply #491 on: April 25, 2013, 09:06:11 AM »
I only have an FSA, no HSA :(.
Use it. Just don't put too much money in it. Up until a couple of years ago you could by over the counter medicine with your FSA. Back when my company only offered an FSA, Mrs. dobber and I went out one year in December and bought $150 worth of crap (vitamins, aspirin, tylenol, cold medicine) just so we didn't lose the money.

Offline ben ji

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Re: New To Investing Thread
« Reply #492 on: April 25, 2013, 09:08:42 AM »
I only have an FSA, no HSA :(.
Use it. Just don't put too much money in it. Up until a couple of years ago you could by over the counter medicine with your FSA. Back when my company only offered an FSA, Mrs. dobber and I went out one year in December and bought $150 worth of crap (vitamins, aspirin, tylenol, cold medicine) just so we didn't lose the money.

I put $200 in it last year but only used about $100 which was basically a couple dentists/eye doctor copays and some contacts.

I havent been to an actual doctor since I stopped playing high school sports :-/

Offline 8manpick

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Re: New To Investing Thread
« Reply #493 on: April 25, 2013, 09:14:29 AM »
Okay, so FSAs seem kinda dumb. I put the minimum that I could in just to cover dentist and checkup type stuff.
:adios:

Offline chum1

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Re: New To Investing Thread
« Reply #494 on: April 25, 2013, 09:16:46 AM »
It also used to be that you could use HSA money for OTC stuff.  So, like in SD's case, his company would be giving him $1000 each year to buy stuff at Walgreens that he would have purchased anyway.  That didn't last very long.

Offline ben ji

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Re: New To Investing Thread
« Reply #495 on: April 25, 2013, 09:22:11 AM »
It also used to be that you could use HSA money for OTC stuff.  So, like in SD's case, his company would be giving him $1000 each year to buy stuff at Walgreens that he would have purchased anyway.  That didn't last very long.

Yup, that ended about 3 years ago. My mom had a couple hundred on her card and pretty much cleaned walgreens out of tylenol and nyquil/dayquil. I still have boxes upon boxes that she gave me.

Offline Rage Against the McKee

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Re: New To Investing Thread
« Reply #496 on: April 25, 2013, 09:22:44 AM »
I only have an FSA, no HSA :(.
Use it. Just don't put too much money in it. Up until a couple of years ago you could by over the counter medicine with your FSA. Back when my company only offered an FSA, Mrs. dobber and I went out one year in December and bought $150 worth of crap (vitamins, aspirin, tylenol, cold medicine) just so we didn't lose the money.

I put $200 in it last year but only used about $100 which was basically a couple dentists/eye doctor copays and some contacts.

I havent been to an actual doctor since I stopped playing high school sports :-/

Yeah, you shouldn't be using the FSA at all, then.

Offline slobber

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Re: New To Investing Thread
« Reply #497 on: April 25, 2013, 09:30:31 AM »
Basically, everyone on gE.c should probably be in the cheapest plan their company provides and if your company has a High Deductable HSA, do that. Even the cheap plans have a cap on out of pocket expenses. With the money you save, invest it in HSA, FSA, or Roth IRA. If you have previous serious medical issue, then this may not apply to you.

sd's company is awesome. We only get $800 starter money for the HSA each year. It costs me about $2100/year in premiums for the family. It has a 20% co-pay with an out of pocket max of $3600 as long as I stay in network. I think the max contributions for HSA's this year, which is set by the government, is $5,400.

Offline Rams

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Re: New To Investing Thread
« Reply #498 on: April 25, 2013, 09:33:57 AM »
Okay, so FSAs seem kinda dumb. I put the minimum that I could in just to cover dentist and checkup type stuff.
I used to work with some fsa plans.  I've seen employees game the plan though.  like one time a guy calculated the price of lasic surgery, "withheld" that amount through the fsa, had it done the first month of the new plan year and then quit his job the next month, effectively having his company pay for most of his lasic. :lol:
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Offline The Whale

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Re: New To Investing Thread
« Reply #499 on: April 25, 2013, 09:39:31 AM »
Okay, so FSAs seem kinda dumb. I put the minimum that I could in just to cover dentist and checkup type stuff.
I used to work with some fsa plans.  I've seen employees game the plan though.  like one time a guy calculated the price of lasic surgery, "withheld" that amount through the fsa, had it done the first month of the new plan year and then quit his job the next month, effectively having his company pay for most of his lasic. :lol:

I'm friends with someone who worked for a company that managed FSAs.  She dealt with companies calling about that specific issue all of the time. 

Company would be all:  :curse:

While the employee would be:   :eye: