Are you making the most of your employee benefits?
When was the last time you reviewed your 401k investment options to determine if you were invested in the right funds? Have you compared your insurance plan options to your medical needs and determined which options provide the greatest benefit for you and your family? As a hardworking employee, you deserve to make the most of the benefits available to you.
We review your entire employee benefit package with you, including the following:
Retirement plans or other investment options
Are you taking full advantage of your employer match (free money) if available? Are your retirement investments aligned with your needs? Your advisor can work with you to review all options. If your company offers stock options, we can assist in managing your employee stock options and equity compensation. Additionally, if a pension is available, your advisor can work with you to understand the details.
Insurance
Are you enrolled in the best health insurance policy offered by your employer (or your spouse’s employer) for your needs? Are you taking advantage of supplemental insurance options what would be beneficial (such as supplemental life, disability, or critical illness insurance)? Your advisor can help you select the right coverage and identify any areas that may require additional protection.
FSAs or HSAs
If you have an FSA or HSA available, are you contributing the right amount? For an FSA, aim to contribute as close as possible to what you will need for the year, since these funds typically have a “use it or lose it” policy. For an HSA, it’s often beneficial to maximize your contributions because the funds grow tax-free, and you will never lose them.
Paid time off (PTO)
Do you have sick leave and vacation leave, or a general bucket of PTO? Sick leave and vacation leave can operate differently. Additionally, is your paid leave “use it or lose it,” or will any unused time be paid out upon leaving the company? This is important to understand when leaving a job, as you can strategically use your PTO for the additional income if it will be paid out. It is also important to know if any of your PTO can carry over year-to-year, especially if you are planning a longer trip or parental leave.
Other benefits
Are there any additional benefits you are not taking advantage of, such as wellness programs or educational opportunities? If you’re interested in obtaining a certification or educational degree, find out if your employer would cover all or part of the costs.
Are your employee benefits enough?
How much life and disability insurance do you have through your employer and is it enough? Should you be investing in other funds outside of your 401k? Work with an advisor to understand how your benefits affect your financial situation.
Common Questions Related to Employee Benefits:
How do I choose the best health insurance plan during open enrollment?
Many employers offer multiple employer-sponsored health plan options. Selecting the best health insurance plan for you and your family requires a thorough evaluation of your medical needs and a comparison of the available options. Review the premium costs, deductibles, out-of-pocket maximum, copayments, and the coverage provided for your preferred healthcare providers and medications. By analyzing these factors, you can determine which plan offers the most comprehensive coverage at a reasonable cost. In addition, if you are married and have coverage available through your spouse, you may want to consider the cost of being on the same plan versus separate plans and which plan may be better for any kids. Your advisor can help you make an informed decision that aligns with your healthcare needs and budget.
How can I effectively use a Health Savings Account (HSA) or Flexible Spending Account (FSA)?
Effectively using an HSA or FSA requires a clear understanding of how each account works and their respective benefits. HSAs are available if you have a high-deductible health plan (HDHP) and offer triple tax advantages: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. Additionally, unused HSA funds roll over year-to-year and can be invested for long-term growth (compound interest). While high-deductible health plans may not always be a good fit for your healthcare needs, HSAs are highly advantageous for future medical needs. FSAs operate a bit differently. They allow you to set aside pre-tax dollars for medical expenses within a plan year, but only a small portion (if any) of your unused funds may carry over to the following plan year. In addition, these funds do not include any growth opportunities. Your advisor can help you estimate your annual medical expenses and determine appropriate contribution levels to maximize tax savings and ensure you take full advantage of these accounts.
What should I consider when managing my employee stock options?
When managing your employee stock options, it’s important to understand the specifics of your options, including the vesting schedule, exercise price, and expiration date. Additionally, consider the tax implications of exercising your options, as this can significantly impact your financial situation. Be mindful of the risks associated with holding a large concentration of company stock, as this can expose you to significant volatility. Your advisor can help you develop a strategy for exercising your options at the right times and integrating them into a balanced and diversified investment portfolio.
Optimize your 401k
Do you know what funds you signed up for when signing up for your 401k? How are they performing? Do they match your risk tolerance and your needs in retirement? Work with your financial advisor to ensure your 401k is fully optimized to your needs.
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