Benefits Enrollment season… that lovely time of year where you have less than a month to get your life together (what changed from prior year?) and still meet all your big year end work deadlines.
Side note: This is one of the things I feel like Amazon did right by having a non-year end enrollment period 🙂
There are probably 1000s of blog posts on benefits enrollment topics, but sifting through them means you might miss something big. So instead of restating details on what each benefit means, I’m giving you the short twitter headline and a link to a great blog explaining the topic.
HSAs
Do you have positive cash flow? Maxing out your 401(k)? Contribute to an HSA.
Have an HSA? Not using it much? Look at investing part of it to make the most of the tax deferral!
https://youngandtheinvested.com/what-is-hsa/
Dependent Care FSAs
Are your kids no longer at daycare? What about after school care or summer camps? Might be eligible for this pre-tax benefit.
https://www.fsafeds.com/explore/dcfsa
ESPPs
A forced savings mechanism and a ‘guaranteed’ discount means automatic after-tax value in your pocket.
https://blog.wealthfront.com/good-espp-no-brainer/
Exec Deferred Comp
Okay, I lied, this one is going to be longer than a Twitter headline…
Most of our executives have a ridiculous amount of stock vesting each year through RSUs and NQSOs. Many are uncomfortable with the tax hit they would take for diversifying their risk. Most deferred compensation plans come with more investment options. Therefore, some executives can use this to defer 75% of their salary and bonus, then use NQSO exercises/sales to fund their annual expenses. Thus getting out of a concentrated position and into a more diversified investment strategy.
Using your deferred stock plan might be a great way to diversify out of your NQSO concentrated position. However, it isn’t a fool proof decision. Unless you work at a mega employer that has made commitments to keep these funds as legally safe for you as possible, it may end up not so great.
Supplemental Life Insurance
Do you need life insurance to cover debts and family needs? If you are young and fit, there may be a better alternative. Check the pitfalls and benefits.
https://20somethingfinance.com/should-you-buy-supplemental-life-insurance-through-your-employer/
Critical Illness Insurance
Are you approaching your 50s and not in the best of shape? If heart problems or cancer runs in the family, this may be a great deal for you.
https://www.thebalance.com/what-is-critical-illness-insurance-4588339
Pet Insurance
This is the time I really wish my dogs could talk. X-rays, blood tests, oh my! We love our pets but hate the vet bills.
https://www.thebalance.com/best-pet-insurances-4169714
May the odds be forever in your favor…
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The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.
