All posts by Debbie Sears

Have You Fully Funded Your HSA for 2015?

February 22, 2016Health Savings AccountDebbie Sears

2015 offers individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA). HSA holders can choose to save up to $3,350 for an individual and $6,650 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,350 for an individual and $7,650 for a family) and these contributions are 100% tax deductible from gross income.

Minimum annual deductibles are $1,300 for self-only coverage or $2,600 for family coverage. Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $6,450 for self-only coverage and $12,900 for family coverage.

The Fund Deadline is April 15 with no extension. HDHP must be in place at some point in the contribution year – Medical expenses prior to Dec. 31 of current year – You cannot use HSA funds to pay for expenses incurred prior to opening the account.

Be sure to consult your tax professional to be sure that you have maximized your opportunity for a deduction.

How the Individual Mandate Works…

February 15, 2016Individual MandateDebbie Sears

People are generally required to be covered by a health insurance policy which meets minimum standards or pay a tax penalty.

For those who are uninsured and do not meet one of the exemptions, the penalty for 2016 is calculated as the greater of two amounts:

A flat dollar amount equal to $695 per adult plus $347.50 per child, up to a maximum of $2,085 for the family.
2.5% of family income in excess of the 2015 income tax filing thresholds ($10,300 for a single person and $20,600 for a family).

The penalty can be no more than the national average premium for a bronze plan (the minimum coverage available in the individual insurance market under the ACA), which was $2,484 in 2015 for single coverage and $12,420 for a family of three or more children. The penalty is pro-rated for people who are uninsured for a portion of the year and waived for people who have a period without insurance of less than three months.

The penalty amounts have increased substantially since 2014.

Disability Can Happen In An Instant…Are You Prepared?

February 8, 2016Disability IncomeDebbie Sears

Your ability to earn a living is far and away your largest asset. Being without your paycheck is like turning off the lights. Boom, you have a problem that you are not able to remedy after the fact. Learn how to protect your paycheck if you become unable to work in the event of sudden injury or illness.

I have provided a short video I think will help you understand how this is important to you and your loved ones. Life Happens does not endorse any insurance company, product or adviser, so you are getting some facts and information from an industry respected source.

The quotes are FREE – you can call me at 515.285.6766. I fact find to determine your needs. This is where we start and from there I will bring you options to consider.

How Will You Show Your Love?

February 1, 2016life insuranceDebbie Sears

In the world we live in today, most homes are dependent on two incomes. We have our cash flow down and things are rolling along well. What we really need to do is imagine that one paycheck is gone – forever.

Life Happens. We are not exempt. We can place life insurance for many reasons. It could be to replace an income so that our family can maintain their lives as they know it today. This could mean provide for college educations and all of the extras that we may not be able to list off of the top of our heads. Life insurance can also be used to offset the transition of assets from one family member to another.

There are many types of life insurance. The amount of coverage and the type of coverage needs to be calculated properly and placed properly so that it is what you need and at a premium that you can afford. Visit www.lifehappens.org. After you watch this video, please call me for a quote. The quotes are FREE and you may be surprised at the low cost.

What if you haven’t enrolled in a health insurance plan for 2016?

January 25, 2016Healthcare updatesDebbie Sears

The fee for not having coverage is increasing again this year. If you go without health coverage in 2016, the fee you’ll have to pay next year will increase to $695 or 2.5 percent of your income — whichever is higher.

The fees for not having coverage each year is increasing. The penalty for 2015 is $325 per adult or 2% of household income.

The good news is Open Enrollment for 2016 coverage is happening now and runs through January 31. If you still need coverage and want to avoid paying a fee next year, you must sign up for coverage before January 31.

Please give us a call and we will show you your options. We strive to “fit” your needs and your budget.

Deferred Annuities

January 18, 2016Health Care Reform, Healthcare updatesDebbie Sears

Since the enactment of our most recent Affordable Care Act (2010), we have talked about taxes, more so than we have in a long time. And you will see that my newsletters, my blog posts, etc. sometimes mention our tax burden. Many times, I sit down with a family for estate planning, and look at the risk they have assumed versus the return.

In many cases I see a nicely diversified portfolio, but I also see unsecured principal. I see broker fees, taxation, and the return posted on the statement. If I take the return posted on the statement and net it down to include the items I just mentioned, their rate of return is not commensurate with the risk of unsecured principal.

I think there is a place in all of our lives for speculation. It’s a game, it’s fun and who knows – you might win! But, to take hard-earned dollars and put everything on the line and sit back and hope we come out at the other end is not what I advocate.

If I could show you a way to have 100% principle guarantee tax-deferred, no broker fees, access to your funds and a current interest rate guaranteed of 3.9%, would you want to know more? There really is such a thing.

The first year interest rate that I just mentioned can change from time to time. So, someone that made a purchase in July could have a different first year interest rate than someone who purchased in December. What is important is the guaranteed minimum rate of return.

The guaranteed minimum rate of return is also missing in the portfolio I mentioned. The guaranteed principle and the guaranteed minimum rate of return still exceeds what you would get either at the bank in CDs or on most well-diversified financial statements.

Please call me so we can compare apples to apples and create some balance on your investments. I am a firm believer that our risk tolerance should be in direct proportion to our wants, our needs, our aging, retirement planning, etc. Let’s get some balance to your life! You will be amazed at how comfortable it feels to have security.

We use nothing but top-rated companies.

Has Anybody Heard of the Cadillac Tax?

January 11, 2016Health Care Reform, Health Insurance, Healthcare updatesDebbie Sears

Here’s a great article from the Huffington post about what you need to know about the Cadillac Tax. This was originally posted in June 2015, however, it is quick and easy to read and nothing had changed at that time. Please read through this so you know how you are affected and what this means for you. It is a costly item as part of the Affordable Care Act.

Below is a picture (click to enlarge) that gives you a snapshot of the different years and provisions of the affordable care act that you might find easy to use. The good news, is that it’s been delayed!

Congress’ Christmas present to all business owners who provide benefits to their employees is to put a two year delay on this tax that was originally to start in 2018. However it all shakes down: this buys us some time to reassess your plans. If it’s repealed completely, then we will keep you informed accordingly. If it’s not repealed, then it gives us an opportunity for better positioning of your benefits moving forward.

If you find this whole thing confusing, guess what. The United States of America and every involved: CPAs, attorneys, doctors, hospitals, insurance companies, insurance agents, etc., are waiting for the next newspaper headlines to tell us what’s changed. Whatever I tell you today, if it changes, I’ll tell you what it’s changed to tomorrow.

Open Enrollment Update

January 4, 2016Healthcare updatesDebbie Sears

Thank you for a very successful 2015. I realize that health care has become confusing, but we have enrolled a record number of new clients this years…mostly in the 4^th quarter. I believe we have everybody positioned in the individual under 65 market for their January 1 effective date.

The original mandate for open enrollment as set by The U.S. Department of Health and Human Services (HHS) was December 15, 2015. Some of you may know that after the 15^th it was extended for a couple days allowing more people to get in. If you happened to miss that date, you still have from now until the end of January 2016 to become enrolled in an individual plan.

Small business owners should seize the opportunity to have a review of their current situation. I will analyze every aspect of your employee benefits package and let you know where you are in the market place. Secondly, in this analysis we will discover what your needs and wants are and make sure that we are not over-insuring, which I have seen quite a bit of recently. This oversight costs valuable premium dollars for both the employer and the employee, so it’s worth your while to have me check this out. If you’re fine where you are, I’d encourage you to stay put and keep me in mind for the future.

Open Enrollment

December 28, 2015Health Care Reform, Healthcare updatesDebbie Sears

Through the year and particularly the fourth quarter, we have talked about what you need to do to position yourself for 2016. I need to let you know what your consequences could look like if you choose to do nothing.

The period of time called “open enrollment” allows you to sign up for insurance in the upcoming year and this runs through January 31, 2016. If you do not choose to have health insurance for 2016, you will be penalized. The penalties are a lot more severe than you might expect.

Some people only read 2.5% of “household income” OR $695 per adult, $347.50 per child under 18 for a maximum of $2,085. “Household income” would include head of household, spouse (whether this be a domestic partner, wife or husband), and dependent children through age 26, if they are being claimed on your income tax. So, we gather all income for your household and we would owe 2.5% per person OR the fixed dollar amount, whichever is greater. I have provided a link for healthcare.gov that lays this out pretty clearly and it also has a toolbar that would give you the ability to estimate your fee for 2016. This will also show the fee schedules starting for 2014 when the individual mandate became part of the Affordable Care Act law.

This is serious business. I’ve also attached a post from Facebook showing what the IRS paperwork could look like if you do nothing. The same dollars for a penalty could be applied to a premium and you would have coverage as well as not having to talk to the IRS. Please call me, my consultations are free!

Merry Christmas and Happy Holidays!

December 21, 2015giftDebbie Sears

Merry Christmas and Happy Holidays to each and every one of you. Be safe and have fun throughout the holiday season. Our agency has consistent performance and it’s based on clients, friends, neighbors, colleagues and a consistent renewal and referral base. The professional confidence that you have placed in me is the greatest gift ever. Take a look at this link as a good reference for activities for all family members this holiday season.