Savings Calculator

As a parent, the big financial concern with a newborn is how to set aside enough money to assist for a college education. Universities and state governments have developed many different financial savings plans to encourage parents to save money for college. Some of the plans include 529 accounts, Coverdell accounts, Roth IRAs and prepaid/guaranteed tuition costs. Unfortunately, few of the programs offer every benefit such as tax deductions, tax deferred savings, unlimited investment options, self directed investments and no penalties.

Have you ever had an overdraft cheque? It can be a major inconvenience, especially if the overdraft was only by a small amount. To help consumers to avoid the problem of minor overdrafts, a number of banks offer a link between chequeing accounts and savings accounts… this allows the cheque to be processed using additional funds provided by your savings account.

Money deposited in a savings account is only intended to stay in the bank for a relatively shorter time span. This account usually offers much lower interest rates than most bank accounts. But still, like many other accounts, it accumulates interests. The rate of which is largely dependent on the conditions provided by the bank.

The Roth IRA is the simplest, easiest, most effective tax-free savings plan imaginable. Not only do your earnings accrue on a tax-free basis, but withdrawals are free of taxes as well.

For people who are tired of the high cost of health insurance, starting a Health Savings Account (HSA) is a great option for consideration. Some don’t even carry insurance because they have the ability to self-insure. It only takes one catastrophic event to put you in the hospital and drain you financially. A health savings account (HSA) is an excellent tool that gives you portable health coverage at a low monthly cost, tax reduction, and tax-free savings.

The Health Savings Account (HSA) is a great tool that is going to help us all reduce our health insurance costs and avert the current healthcare crisis in America. But what happens when a person retires? What use is an HSA then? Your HSA transforms itself at that moment you turn 65, when you officially become eligible for Medicare. Your Health Savings Account, which will have served you all those years as a nice financial cushion before you begin using your insurance policy, flips into something very similar to an Individual Retirement Account (IRA). That’s right. An HSA essentially becomes an IRA when you turn 65. The reason for that is that when you turn 65, you are eligible for Medicare, and HSAs are not meant to help you with Medicare, that is its own system. So what happens to that money left over in your HSA? If you haven’t been sick much, there could be hundreds of thousands of dollars in there! Don’t worry, it’s safe. There is no “use it or lose it” policy with HSAs. That is one of the great things about the HSA. No, your dutiful HSA has now become a retirement account. Now that you’re 65, you can begin to pull money out of your HSA without penalty and use it for anything. Use the money for roller blades, dinner, a new computer, a car, or give it to your kids. It’s yours to do with what you want. No penalties for withdrawing money. However, remember, when you take money out of any IRA, that money is taxed by the IRS. You got a tax-deferral when you put the money in, and now you pay taxes to take the money out. Fair, isn’t it? If you want to avoid paying taxes on that money, no problem. Just stick to using the money for healthcare expenses (as approved in IRS Publication 502) and you won’t pay taxes on the withdrawals, even after you’re 65. This is just one of the many ways HSAs are so useful and helpful for Americans savings for their own healthcare. The HSA is available today from many insurance agents and financial planners.