How To Guide Your Employees Towards Retirement Preparedness

From Forbes:

Forbes has published an article by Martin Trussell, Executive Director of ECFC, that explains how a Health Savings Account (HSA) can be an essential part of an organization’s benefits package, offering many advantages to employees. 

“Today, retirement readiness not only includes savings needed to meet daily living expenses but also preparations for the expenses of rising medical costs. Unlike earlier generations, most workers retiring now and in the future will not have an employer-sponsored health plan to help them absorb healthcare costs not covered by Medicare.” – Martin Trussell

Trussell explained, “One feature of an HSA that many overlook is that money in the account can be accumulated and put to work in an investment account offered by most HSA custodians. A wide array of stocks, bonds and mutual funds are generally available through such a brokerage account. These offerings are beneficial for those wanting to establish a secure retirement.”

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Millennials: Here’s what to consider before you dive into a health savings account

From CNBC:

Financial advisors say picking a high-deductible health plan with a health savings account can be a smart way to save for retirement (and future health-care costs).

The high-deductible plan premiums are less expensive, and the associated health savings account has a triple tax advantage: Contributions are either pretax or tax-deductible, typically grow tax-free and can be withdrawn without incurring taxes when used toward qualified medical expenses.

“There’s a huge opportunity if you’re putting away a few thousand dollars a year in your 20s and 30s, what that can grow to,” said certified financial planner Sophia Bera, founder of Gen Y Planning.

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