Finance, Insurance

Complete Guide to Health Savings Accounts (HSA): How to Triple Your Healthcare Savings

by Miranda Lechan|Posted on | 8 minute read | Advertiser notice
Complete Guide to Health Savings Accounts (HSA): How to Triple Your Healthcare Savings

Complete Guide to Health Savings Accounts (HSA): How to Triple Your Healthcare Savings

You’re probably leaving thousands of dollars on the table every year. Most Americans with access to a health savings account either don’t use it or drastically underutilize its potential. That’s frustrating because an HSA offers the most powerful tax advantages in the entire tax code—better than your 401(k), better than an IRA, and certainly better than a regular savings account.

Healthcare costs keep climbing. The average American family now spends over $12,000 annually on health insurance and medical expenses. Meanwhile, an HSA sits waiting to help you pay those bills with pre-tax dollars while building wealth for retirement. Let’s change how you think about healthcare savings.

What Makes Health Savings Accounts Different

A health savings account is a special savings vehicle that works exclusively with high-deductible health plans. You contribute pre-tax money, it grows tax-free, and you withdraw it tax-free for qualified medical expenses. That’s triple tax savings—something no other account type offers.

Think of your HSA as a Swiss Army knife for healthcare costs. You can use it for doctor visits, prescriptions, dental work, vision care, and even some over-the-counter medications. The funds roll over year after year, unlike flexible spending accounts that operate on a use-it-or-lose-it basis.

For 2024, you can contribute up to $4,150 for individual coverage or $8,300 for family coverage. If you’re 55 or older, add another $1,000 as a catch-up contribution. These limits typically increase each year to keep pace with inflation.

Here’s what makes HSAs remarkable: the money is yours forever. You own it completely. Change jobs? The account moves with you. Retire? Start using it for Medicare premiums and other healthcare costs. It’s portable, flexible, and incredibly powerful when used correctly.

The Triple Tax Advantage Explained

Most people understand that maximizing tax deductions can significantly improve your financial position. HSAs take this concept to an entirely different level.

Your contributions reduce your taxable income immediately. Contribute $5,000 to your HSA, and you’ve just reduced your taxable income by that amount. In the 22% tax bracket, that’s $1,100 in tax savings right there.

The second advantage happens while your money sits in the account. Any interest earned or investment gains grow completely tax-free. No capital gains taxes. No taxes on dividends. Nothing. This tax-free growth can compound dramatically over decades.

The third benefit arrives when you spend the money. Withdraw funds for qualified medical expenses at any age, and you pay zero taxes. Compare this to traditional retirement accounts where you’ll owe income tax on every dollar withdrawn.

Let’s make this concrete. Say you contribute $300 monthly to your HSA for 25 years, earning an average 7% annual return. You’d have approximately $237,000. In a taxable account, you’d owe thousands in taxes on those gains. In an HSA? You keep every penny for medical expenses.

HSA Benefits vs FSA: Understanding the Critical Differences

Many people confuse health savings accounts with flexible spending accounts. While both help with healthcare costs, they’re fundamentally different animals.

FSAs require you to use your money within the plan year or lose it. Some employers offer a grace period or let you roll over a small amount, but generally, unused FSA funds vanish. HSAs have no such restriction. Your money accumulates indefinitely.

You don’t own your FSA—your employer does. Leave your job mid-year, and you might forfeit remaining funds. An HSA belongs to you permanently, regardless of employment changes.

FSAs allow slightly broader spending categories, including dependent care expenses. HSAs stick strictly to medical costs. However, the trade-off heavily favors HSAs because of ownership and portability.

The contribution limits tell an interesting story too. FSAs cap at $3,200 for 2024. HSAs allow significantly more, especially for families. That higher limit matters enormously if you’re dealing with chronic conditions or planning for future healthcare needs.

Think about your situation carefully. If you have predictable, moderate medical expenses and won’t switch jobs, an FSA works fine. But for building long-term healthcare wealth while maintaining flexibility, HSAs win decisively.

How to Qualify and Open Your Health Savings Account

You can’t just decide to open an HSA tomorrow. You need to meet specific requirements first.

The primary requirement is enrollment in a high-deductible health plan. For 2024, that means a minimum deductible of $1,600 for individual coverage or $3,200 for family coverage. Your plan also must cap out-of-pocket maximums at $8,050 for individuals or $16,100 for families.

You cannot be enrolled in Medicare or claimed as a dependent on someone else’s tax return. You also can’t have other health coverage that disqualifies you, like a general-purpose FSA or a spouse’s comprehensive health plan that covers you.

Opening an HSA is straightforward. Many employers offer HSA options through specific financial institutions. These employer-sponsored HSAs often include free contributions from your company—basically free money you shouldn’t refuse.

If you’re self-employed or your employer doesn’t offer an HSA, you can open one independently. Banks, credit unions, and specialized HSA providers all offer accounts. Compare fees carefully. Some charge monthly maintenance fees, transaction fees, or investment fees that erode your savings.

Look for accounts with low fees and strong investment options. You want an account that lets you invest beyond the initial cash balance. That’s where the real wealth-building happens.

The Investment Strategy: Turning Your HSA Into a Retirement Account

Most people treat their HSA like a basic savings account. They contribute money, spend it on medical bills, and never think deeper about it. That’s fine, but you’re missing the biggest opportunity.

The smartest HSA investment strategy involves paying current medical expenses out-of-pocket while letting your HSA balance grow invested. This requires some financial flexibility, but the payoff is enormous.

Here’s how it works: You contribute the maximum to your HSA each year. When you have medical expenses, you pay them with a credit card or checking account. You keep all your medical receipts meticulously organized. Your HSA balance stays invested and compounds tax-free for years or decades.

Later—maybe at retirement when you need the money more—you reimburse yourself for all those old medical expenses. There’s no time limit on HSA reimbursements as long as the expense occurred after you opened the account. You essentially created a tax-free retirement fund.

Once your HSA balance grows beyond your emergency medical fund threshold (maybe $3,000 to $5,000), invest the excess. Most HSA providers offer mutual funds, index funds, or target-date funds similar to 401(k) options.

Conservative investors might choose bond funds or balanced funds. Aggressive savers pursuing long-term growth often select stock index funds. The key is matching your investment timeline with appropriate risk levels, similar to retirement planning strategies for other accounts.

Qualified Medical Expenses: What Your HSA Actually Covers

Understanding what counts as a qualified medical expense prevents costly mistakes. The IRS maintains a detailed list, and it’s broader than most people realize.

Obviously, doctor visits, hospital stays, surgeries, and prescriptions qualify. But you can also use HSA funds for dental care, vision care, hearing aids, and mental health services. Chiropractors, acupuncturists, and physical therapists all count too.

Many over-the-counter items now qualify following recent rule changes. Pain relievers, cold medicine, first aid supplies, and feminine hygiene products are all fair game. You don’t even need a prescription for most OTC medications anymore.

Some surprising qualified expenses include: smoking cessation programs, weight loss programs for specific diagnosed conditions, breast pumps, guide dogs, and modifications to your home for medical accessibility. Certain insurance premiums qualify too, including long-term care insurance, COBRA coverage, and health insurance while receiving unemployment benefits.

What doesn’t qualify? Cosmetic procedures, gym memberships (usually), vitamins and supplements (unless prescribed), and general health items like toothpaste don’t make the cut.

Keep detailed records. Save receipts, explanation of benefits statements, and documentation. If the IRS questions a withdrawal, you’ll need proof that the expense qualified. Many people scan receipts and store them digitally for decades.

Common HSA Mistakes That Cost You Money

Even financially savvy people make critical errors with their health savings accounts. Avoid these pitfalls to maximize your benefits.

The biggest mistake is treating your HSA as a spending account rather than an investment account. When you drain your HSA every year for minor expenses, you miss the compound growth potential. Those small copays you’re covering with HSA funds could be paid from checking while your HSA grows tax-free.

Many people don’t invest their HSA balance at all. They let thousands of dollars sit in low-interest savings earning practically nothing. Meanwhile, inflation erodes purchasing power year after year. If you’re healthy and financially stable, invest the bulk of your HSA balance.

Another common error involves taking non-qualified withdrawals. Pull HSA money for non-medical expenses before age 65, and you’ll owe income tax plus a punishing 20% penalty. That’s worse than early 401(k) withdrawals. After 65, non-medical withdrawals face only regular income tax, but you’ve still lost the tax-free benefit.

Some people stop contributing once they leave a high-deductible health plan. You can’t make new contributions without HDHP coverage, but you can and should keep your existing HSA. Continue investing it and using it for medical expenses indefinitely.

Don’t forget to claim your HSA contributions on your tax return. If you contribute through payroll deductions, they’re automatically pre-tax. But if you make direct contributions to your HSA, you must claim them when filing to get the deduction. Missing this step means paying unnecessary taxes.

Maximizing Your HSA: Advanced Strategies for Triple Savings

Once you understand the basics, several advanced techniques can amplify your health savings account benefits dramatically.

Consider the "mega HSA" strategy if you can swing it financially. Max out your HSA contributions every year starting in your 30s or 40s. Pay all medical expenses out-of-pocket. Keep meticulous expense records. Let your HSA grow invested for 20-30 years. At retirement, you’ve built a substantial tax-free healthcare nest egg worth potentially hundreds of thousands of dollars.

If you’re 55 or older, both you and your spouse can make catch-up contributions if you each have your own HSA. That’s an extra $2,000 annually that reduces your taxable income while building healthcare reserves for retirement when medical costs typically surge.

Time your HSA contributions strategically within the year. Front-load contributions early in January if possible. This maximizes your investment time horizon and compound growth potential. Every extra month in the market matters over decades.

Use your HSA for expenses you might not have considered. Laser eye surgery, orthodontics, and fertility treatments are all qualified expenses. If you’re planning any of these, an HSA helps you pay with pre-tax dollars.

Consider the interplay between your HSA and other tax-advantaged accounts. In high-earning years, maxing your HSA reduces your taxable income. As part of your broader tax planning strategy, HSA contributions can lower your bracket or reduce exposure to certain tax thresholds.

Finally, remember that HSAs become incredibly flexible after age 65. You can withdraw funds for any purpose without penalty—just regular income tax on non-medical withdrawals. This makes your HSA function like a traditional IRA with the bonus option of tax-free withdrawals for healthcare costs.

Your Next Steps: Building Healthcare Wealth Starting Today

Health savings accounts represent one of the most underutilized tools in personal finance. The triple tax advantage can’t be beaten. The flexibility and ownership structure outpace virtually every other savings vehicle. The potential to build substantial wealth while covering healthcare costs makes HSAs invaluable.

Start by evaluating your current health insurance situation. If you don’t have an HDHP but one’s available during open enrollment, run the numbers. Compare total costs including premiums, deductibles, and potential HSA tax savings. Many people find that HDHPs with maxed-out HSAs cost less overall than traditional plans.

Open your HSA immediately if you’re eligible but haven’t yet. Don’t wait until next month or next year. The sooner you start, the more time your money has to grow tax-free.

Set up automatic contributions to make saving effortless. Whether through payroll deduction or automatic monthly transfers, removing the decision from your daily routine ensures consistency. Treat your HSA contribution like any other essential bill.

Create a system for tracking medical expenses and receipts. Something as simple as a dedicated folder (physical or digital) works fine. You’ll thank yourself later when you’re sitting on substantial tax-free reimbursement potential.

Review your HSA investment options within the next week. If your balance exceeds your emergency medical cushion, move excess funds into appropriate investments based on your timeline and risk tolerance. Building financial security means making your money work hard through smart investment choices.

Healthcare costs aren’t going anywhere except up. You can either watch your money evaporate paying those bills with after-tax dollars, or you can harness the triple tax advantage of HSAs to build wealth while covering medical needs. The

Insurance

How to Drop Your Auto Insurance Rates With Auto Quote Mate

by James Flores|Posted on | 2 minute read | Advertiser notice
Auto insurance

You finally bought the car you had been saving up for. Congratulations!

With that checked off your bucket list, it’s time to find the best auto insurance rates to protect it. This may seem daunting, but it doesn’t have to be.

Auto insurance rates are affected by multiple factors: the type of vehicle, demographic factors, your driving habits, and the coverage and deductibles you choose. Your insurance provider will help you decide which limits and coverage best suit you.

First, you need to determine the type of coverage you need. Do you just want liability insurance or collision and comprehensive coverage as well? Once you know what type of policy you need, you can start shopping around for the best rates.

Often, people are tempted to go for the cheapest car insurance quote only to find it doesn’t offer the level of protection they need. You must find the sweet spot between the lowest rates and the ideal coverage for your car.   

The best way to go about this is by comparing auto insurance rates from various insurance providers. Different companies offer different rates, but this isn’t the only thing you need to keep in mind when choosing an auto insurance company.

Every driver is looking for the lowest price possible, but it’s important to remember you get what you pay for. If you’re not careful, you might end up with a policy that doesn’t offer enough coverage.

So how can you make sure you’re getting the best possible rate on your auto insurance?

You must do your research and compare policies that offer the same amount of coverage. Unfortunately, this process can be time-consuming and frustrating when done manually.

Thankfully, there’s an easier way out.  

If you’re looking for a way to save money on your auto insurance without putting in much effort, look no further than Auto Quote Mate.

What is Auto Quote Mate?

Auto Quote Mate is an auto insurance marketplace committed to helping people find the best, lowest possible coverage for their cars.

Shopping for auto insurance can be confusing, so this platform makes it easy for you!

Click the banner below!

Auto Quote Mate provides you with accurate, up-to-date information about the different insurance providers willing to offer you insurance, so you don’t have to compare rates from multiple insurers, guaranteeing some of the lowest rates available for you.

Auto Quote Mate is a safe and trusted website where millions of US drivers come to ensure they’re not overpaying for auto insurance. It has an uncomplicated, user-friendly interface; beginners find it super easy to navigate through the site. Moreover, the entire process takes less than 60 seconds.

How Does It Work?

At Auto Quote Mate, you just have to enter your zip code and provide basic information about yourself and your vehicle.

The site will generate personalized results after comparing your input to a live database connected with dozens of reliable insurance providers. The smart matching engine will come up with a list of providers applicable to your circumstances and willing to offer insurance solutions.

The best thing is that the service is FREE. There are no hidden costs. Also, there’s no obligation to purchase from the insurance providers presented by the system.

With Auto Quote Mate, some people saved up to $500 annually on their auto insurance. The average expenditure is approximately $88 per month.    

So what are you waiting for? Start saving today!

For more information, visit Auto Quote Mate

Sponsored: This post contains sponsored content.

Finance, Insurance, Money

15 Questions to Ask When Shopping for Health, Homeowners and Auto Insurance

by Kara Banff|Posted on | 5 minute read | Advertiser notice

There’s nothing more difficult and confusing than choosing the right insurance, whether it’s health, homeowners, or auto. There’s so much information that it’s sometimes hard to digest, so we’ve sifted through it and are here to help you make well-educated decisions about your future. In this article, we outline 15 questions that you should ask your agent when shopping for health, homeowners, and auto insurance.

Health Insurance

1. Is my current provider available in the plan?

If you have a current doctor that you are loyal to, it’s worth asking your health insurance agent if he or she is covered under the plan you’re considering. We all know the struggle of finding a doctor that we are comfortable with, on top of one that knows our health history. It’s worth noting, if you are considering a PPO, keeping your same doctor may cost you a bit more out-of-pocket, but could be worth the extra expense. Weigh and calculate your options.

2. What’s my deductible?

In other words – how much will you have to pay out-of-pocket on treatments and procedures before insurance kicks in and starts to cover costs? The cheaper your monthly premium, the higher the deductible. Do the math. If you see a doctor regularly, consider opting for a more expensive monthly premium but a lower deductible. And keep in mind – most preventative services are covered without use of the deductible – think shots, screening test, vaccines, etc.

3. What’s my co-payment?

This is a big one, as this is the amount you’ll be paying out of pocket every time you see a doctor. Should you expect a small flat fee around $10, or will it vary by provider and be upwards of $100? Generally speaking, your co-payments don’t count towards your deductible. So this is something you’ll want to factor into your budget as you’ll still need to meet your deductible on any treatments or procedures that you receive. 

4. Is there a pre-existing condition exclusion period?

It’s not uncommon for health insurance companies to place limits or exclude benefits for a period of time for a medical condition that you had prior to selecting and enrolling in the health plan. Make sure to ask your agent if they have an exclusion period, what they define as a pre-existing condition, and how long their exclusion period lasts. There’s nothing worse than getting caught in the middle of an expensive procedure with no help on payment.

5.What will my monthly premiums be?

Monthly health insurance premiums vary drastically from person to person depending on their monthly budget, desired deductible, any dependents you have, and if your place of work is covering a portion of it. We recommend checking out AffinityCoverage to get the best health insurance quotes in your area, for up to 30% off.

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Homeowners Insurance

1.What does my homeowners insurance plan cover?

You’re correct to assume that homeowners insurance doesn’t cover every disaster. It will cover the most common situations: fire, windstorm, hail, lightning, smoke, explosion, theft, vandalism, riot and vehicle collision. It likely will not cover earthquakes, flood, power failure, war, nuclear explosion, or neglect. Make sure you ask your agent and fully understand what it covers before signing on any dotted line.

2. Do you have any discounts available?

The safer your home is, the more discounts and special rates the home owners insurance company can offer you since there’s less of a chance for a catastrophic event. Some common discounts: bundling/multi-policy, having a monitored burglar and fire alarm system, having an impact resistant roof, installing new wiring, plumbing and A/C, living in a gated community, new home discounts, having an HOA, paying in full, and even being a first time customer and/or homeowner. Don’t skip this step. 

3. How much homeowners insurance do I need?

This will differ for everyone. You should base your estimate off how much it would cost to rebuild your home. If you live in an older home, have additional structures on your property such as a shed or garage, or if construction costs run high in your area, consider insuring over market price so you are fully covered. 

4. Are my personal belongings covered?

Most homeowners insurance policies offer a built-in personal coverage of 50% of the dwelling limit. For example, if you choose a $200,000 policy on your home, it’s standard to receive $100,000 in personal property coverage. If you have expensive furnishings and personal belongings, ask if that percentage can be increased. You’ll likely pay a bit more out of pocket, but the added coverage may be worth it.

5. So how much is this going to cost me?

Again, this is going to be different for everyone depending on how much coverage you need and the city/state that you live in. According to the Insurance Information Institute, a standard policy costs homeowners about $1,100 a year. We recommend checking out MyQualityCoverage to find and compare the best homeowners insurance companies before making a decision.

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Auto Insurance 

1. Will my policy cover other drivers of my vehicle?

What happens if a family member or friend borrows your vehicle and is involved in an accident? What about if you are driving someone else’s vehicle and are involved in the accident? How these situations are handled will all depend on your insurance company, if the person driving has insurance, and the laws in your state, so it can get a bit confusing. Generally, if a friend who has their own car insurance is borrowing your car and is at fault in a collision, chances are, they’re covered. But, which company will actually handle the claim and send payment for damages can vary based on the accident, damages, who is officially at fault, etc. Ask your agent how the plan you are considering handles these situations.

2. What type of parts will be used to repair my car after an accident?

Many auto Insurance companies are going to take the cheapest route in repairing your vehicle after an accident. On some discount plans, insurance companies will request the use of second-hand parts instead of brand new parts to complete the repair. You may pay less with the used parts, but is a slightly lower monthly premium worth having 10 year old parts on your 1 year old car? Make sure you fully understand what you’re getting yourself into here.

3. Does the policy include 24/7 towing and roadside assistance?

Some auto insurance companies offer 24/7 towing and roadside assistance built into their plans as a perk. You never know when you’ll get a flat tire, lock your keys in your car, or need to have your battery jumped. Having this extra layer of protection puts your mind and wallet at ease. 

4. Do you offer any discounts?

Auto insurance companies have the ability to offer discounts on your premium in certain situations. The most  common is if you pay on an annual or bi-annual basis instead of quarterly or monthly. Some other common discounts that they can offer are: accident-free, safe driver, parking in a garage at home and work, new car, anti-theft, anti-lock brakes, low usage and mileage, and military and senior citizen discounts. Asking this question is the easiest way to shave money off your premium. 

5. How much does Auto Insurance cost?

This rate is going to vary drastically depending on the type of coverage you select (full or liability), your city/state, the type and cost of your car, and any past violations. For example, a driver who has an older vehicle in Little Rock, Arkansas, selects liability only, with no past violations will likely pay $30/month. Another driver who has a brand new Tesla in San Francisco, California with two past violations may pay upwards $200/month. To find the best rates in your area for the coverage you are looking for, check out Get-Auto-Quote. 

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Insurance

Term Life Insurance vs. Permanent Life Insurance – Which One Makes More Sense Financially?

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice
Term Life Insurance

Life insurance is an excellent tool to secure the financial needs of your family in your absence.

A survey conducted by Northwestern Mutual in 2018 revealed that the average US citizen has roughly $38,000 in personal debt (but at least because of Trump they have a job and a brighter future), without taking mortgage into account. In such a scenario, you do not want to pass on your debt burden to your loved ones in the event of your untimely demise.

Now, the question is – should you go for a term life plan or a permanent life plan? Which one makes more sense from a financial point of view? Let us find out.

Term Life Insurance

A term life plan covers you for a specific period of time, which usually ranges from 10 to 30 years. Its unique selling point is that it is extremely affordable, which allows you to buy the coverage you need at very cheap rates.

The downside is that it only covers you for a limited period of time, after which you need to buy a new plan, at which point the premium payments increase substantially.

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Permanent Life Insurance

A permanent life plan covers you for a lifetime. Your coverage stays in effect as long as you keep making the required premium payments.

Its unique selling point is that it provides you with lifelong coverage, which does not expire at any point for any reason. It also has a cash value account, which you can dip into from time to time to meet your financial needs. The downside is that it is far more expensive than a term life plan.

Which One Makes More Sense Financially?

Generally speaking, a term life plan makes more sense from a financial point of view for two reasons.

  • The premium payments are extremely affordable. If you are a 30-year-old nonsmoker, you can buy life insurance coverage worth $500,000 for a period of 30 years at $31 a month or $373 a year. A $500,000 permanent life plan, on the other hand, is likely to cost you $395 a month or $4,745 a year.
  • You have the option of choosing the duration of the policy. You can choose to buy coverage for 10, 15, 20, 25, or 30 years, depending on your financial needs. You do not have the option with a permanent life plan.

If you are young and healthy, it makes little sense for you to buy a permanent life plan, since you can buy the same amount of coverage in the form of a term life plan at 1/10th the price. If you invest the difference on a consistent basis, you can build a substantial retirement corpus over the same period of time.

Let us say you need life insurance coverage worth $500,000 to cover your financial obligations – mortgage, personal debt, children’s education, financial support for your family members, and so on. Instead of buying a permanent life plan, which – as mentioned above – is likely to cost you $395 a month, you can buy a term life plan, which will only cost you $21.

Let us say you invest the difference – $375 – in an index fund, which gives a 6% return on your investment. Over a span of 30 years, assuming you consistently invest $375 a month, your investment will be worth $380,000. That’s something to smile about and you did it yourself – you are not relying on Bernie Sanders government to take care of you. How did that work out in Cuba or Greece?

The Need for Lifelong Coverage        

The best part about buying a term life policy is that you can have it converted into a permanent life plan any time you want. Most insurance providers offer term life plans with a built-in conversion option, which allows you to change your plan into a permanent life plan without taking any medical tests.

So, even if you think that you might need a permanent life insurance policy at some point, there is really no need for you to spend hundreds of dollars in premium payments on a monthly basis right from the age of 30.

You are better off investing the money in the market, as it can help you build a substantial retirement corpus, which you can live off of during your sunset years.

Make the Right Choice

Between term life insurance and permanent life insurance, the former makes a lot more sense financially, as it can help you save a significant amount of money on a regular basis. So, buy a term plan, invest the difference in the right financial products, and secure your financial future.

Finance, Insurance

How I Saved Money on My Car Insurance

by Benjamin Roussey|Posted on | 2 minute read | Advertiser notice

When was the last time you compared your car insurance options? If you have to think about it, it’s been too long.

If you’re like me, you prepay the amount on your bill every 6 months to get it out of sight and mind and never look back. Staying on top of your bills is great, but not shopping around for a better deal could be costing you thousands of dollars.

The average person is overpaying $720 per year on their car insurance. That’s an extra $60/month that you could put into a savings account, which has the potential to grow up to $4,000 in 5 years, $9,300 in 10 years, and a whopping $69,000 in 35 years, depending on your interest rate. Just think about that for a minute.

I know what you’re thinking – getting rates from all the different providers in your area seems overwhelming – there’s so many! But it doesn’t have to be.

Fortunately, Rate Fetcher is a new service that will do all the hard work for you. Simply answer a few questions on the type of coverage you’re looking for, if you are a homeowner or not, and your zip code so they can pull the best prices available to you. The best part is, this service is free of cost to you!

You’ll get an apples-to-apples comparison of your current coverage, and an easy to read chart which shows the differences between your new options, so you can make the most informed decision for you.

3 People Who Saved Big with Rate Fetcher

Louisa Hernandez, a single mom in Louisville, Kentucky was able to save a whopping $1169/ year by using Rate Fetcher to compare insurance rates. She decided to combine her car and homeowners insurance rates for an even bigger savings.

“I couldn’t believe it. A friend sent me the link and my jaw dropped when I saw how much I was overpaying. I didn’t think I would ever be able to start a college fund for my son. I immediately found the best savings account with high interest and have started to invest the difference for his future. I am truly amazed.”

Mark Sutherland, a bachelor in San Francisco found an $898 savings/ year on his car insurance by comparing rates with Rate Fetcher.

“I live outside of the city, as most homeowners in San Francisco do, so I need a car to commute to work every day. I saw an ad for Rate Fetcher on Facebook saying I could save $720/year and living in such an expensive city, I thought – why not, let’s just see. I still can’t believe I was overpaying so much. It’s definitely eased my financial concerns a bit.”

Tara Evans, a recent college grad, moved from Louisana to Arizona for her first job and was forced to re-register her car and find new car insurance. She ended up saving $987 by using Rate Fetcher to compare insurance rates. While she moved from a state that tends to have higher insurance rates, to a state that averages a bit lower, the savings are still drastic.

“I had just moved to Scottsdale and was scrolling on Facebook when I came across a Rate Fetcher ad that said I could save almost $720. Getting new car insurance was on my to-do list so I gave it a shot and answered the 3 questions and was shocked at the rates they gave me. I have almost $26,000 of student loans that I need to pay off so this was the best thing I could have done! So happy!”

To see how much you can save, visit  Rate Fetcher today!

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Business, Finance, Insurance, Lifestyle

What The Banks Don’t Want You To Know: Secret Financial Tricks Of Higher Finance

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice

All of us are aware of the fact that banks and customers share a mutual relationship with one another. Just the way we need banks so does the bank need us.

But the problem is even if we think that our banks are looking out for us, they are not as transparent as we think them to be – we all remember those infamous words regarding the ACA health care law when we were told we could keep our doctor and we know how that turned out – that is not being transparent. Banks do not have a golden record here either.

In fact, there are numerous aspects of banking that is neither much known nor advertised and most customers are not aware of these banking secrets. Not even the NSA knows these secrets and they are supposedly everywhere right?

You will not always get the rate that is advertised

You might be feel that banks are offering a stellar rate but the truth is that not all customers get the rate that has been advertised. In fact, only a small percentage of customers are offered a low rate and the others are offered a higher rate of interest so that they can compensate for the low rate that was offered to certain other customers.

Banks make more money the more you swipe your card

Did you know every time you swipe your credit or debit card the bank is making money by charging the merchant some fees? There are promotional credit cards which will require you to spend a certain amount of money within a particular time frame so that you are eligible for a financial reward. You do not want to get a card like this. Why deal with it? Just stick with a debit card and watch the impulse buying.

Another aspect of using your credit card is that banks know for sure if the amount is around $1,000 or more you may not be able to pay off that purchase at that time. The result is that you will end up accruing some interest which in turn is a way for the bank to make more money.

This is another reason you want to pay in cash for most items. A car or a home is an exception (but if you buy a car with cash that is the way to go) but you certainly do not want to borrow money to pay for a flat screen, furniture, or some appliance unless it is an emergency. But this is not an ideal way to do things. You do not want to be paying more for items and you will be paying more if you do not pay in cash and buy the item you want outright.

If you cannot buy that item outright then wait until you can.

A closed checking account can be a salient and clever way for your bank to make some extra money

When you close a checking account you might feel that it is over. But that is not the case. It may so happen that you forget to switch over your auto-pay transactions. The result is that the closed account is charged anyway. The result is not at all pleasant because there are instances where customers end up paying heavy penalties, fees, and some of the cases are even turned over to collection agencies.

Banks have a tendency to make deposits last which many customers may not be aware of

For example, if you ever schedule a few payments (or one large payment) to go out on the same day you expect some money to come into your account to cover this expenditure your bank may do something that is slightly unethical. The bank will actually issue those payments before the money is deposited into your account. The result is you end up using the overdraft feature of the bank which in turn allows your bank to charge you overdraft fees.

Banks make money by selling insurance

When banks try to sell insurance to customers in lieu of some credit you take from them, it is actually a way to extract more money out of you. This is because if you go through the fine print of those insurance policies you will realize that it will not cover all the debt that you owe. Something you need to think about!

Lastly, we should consider what Bill Gates (who has had some positive discussions with Trump in 2017 but this is another subject) once said, “Banking is necessary; banks are not.”

Business, Finance, Insurance, Lifestyle

Should You Pay-off Your Mortgage or Invest the Money?

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice

You are faced with a Hobson’s choice: Whether to pay off your mortgage or invest that money instead. A double-edged sword that works both ways. However, it’s truly a tricky problem to handle and to make a decision quickly becomes difficult and perhaps treacherous.

Benefits of Paying Off Your Mortgage Early

When you start making regular payments on your mortgage, you stand to save money – probably to the tune of thousands of dollars by way of interest costs. You also buy mental peace as you get to be the real owner of your home without any further liabilities. You are now confident that there’s a secure place for you to live in and won’t have to hit the streets if you suddenly find yourself unemployed which happened a lot for years because of the Barney Frank and Alan Greenspan recession which was continued by Obamanomics.

Moreover, you also reduce your living costs because in many cases, mortgage payments are the largest monthly expense post deduction of taxes. Without the liability of a mortgage payment, you save more, can work less, or take up that dream job you couldn’t afford but always wanted because of the lower pay. You also bid adieu to PMI or private mortgage insurance by accelerating the process of paying off your principal amount.

Your home equity reaches a point where PMI is no longer required. This helps you save money long before you pay off your mortgage and enhances chances of accelerating the principal pay-down while you continue to make the same payment on a month to month basis.

Then there is the added advantage of asset protection also. Many states have their own laws protecting home equity should there be a lawsuit or any other legal procedure.

Homestead rules provide substantial protection to home equity. Retirees sometimes use their home equity as a strategy for estate planning to protect their assets for a surviving spouse should one member use up all resources available due to an illness or by way of prolonged nursing care. In sum, there are numerous situations where home equity represents a more secured asset having its own special legal privileges as compared with other investments.

A home with a clear and free title is greatly significant for those on the verge of retirement. When you retire with a fixed income from your pension, social security, and fixed annuity, it can truly work to your benefit if you pay off all outstanding debt rather than investing your money in investments that fluctuate.

This enables you to substantially reduce your financial variables and reliably match forecasted income to expenses.

After retiring, moreover, the mortgage payment may require shifting funds from accounts that have been tax deferred when those funds would have been better off if left to grow on their own. Finally, should your taxable income get reduced after retirement, it may reduce the benefit of the tax deduction on the mortgage interest and tilt the equation in favor of the payoff.

Since the stock and real estate markets fluctuate, it’s more secure to invest in your home, knowing with certainty what your ultimate ROI is likely to be. You stand to get the imputed rental value of a living space as also the instant return of interest expense that has been eliminated.

The sureness of this particular return is a salient benefit for investors who may be disappointed with the unreliable returns from the financial markets. Last but not least, when you pay off your mortgage, it is a serious confidence boost that you did things right.

The Cons

On the flip side of the coin, however, even though the mortgage interest that you pay is deductible from your tax return, there are certain “caveats” to such deductions: The rules guiding deductions are somewhat complicated and you may receive a lower deduction than you thought of getting; in certain cases, your payments of mortgage interest merely replace the standard deduction and don’t provide for any real savings; even when you get a deduction, you’re still having to pay $1 to get 35 cents worth of tax breaks, which isn’t very lucrative; and the deduction’s effective value diminishes over time with the loan maturing and you end up a paying a lesser amount of interest with every payment.

Final Thoughts

You can invest in the market and pay off your home simultaneously. You can do both. It is not a zero-sum game. So perhaps you can breathe a little easier now. You do not have to pick and choose.

If you understand the stock market or have a prudent financial advisor (if there is such a thing – almost all of them missed the call on the tech bubble during the turn of this century) then invest some of your money (check out dollar cost averaging). You can have the best of both worlds but continue to make your monthly mortgage payments.

Culture, Finance, Insurance, Tax

True Cost of Owning a Car in the US

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice

As a car owner, you are perhaps aware that the sticker price of your car doesn’t give out the accurate figure about its ownership cost. Buying a relatively less expensive car is likely to save you a penny initially but may burn a huge hole in your pocket later by way of expensive repairs.

On the slip side, buying an expensive SUV could make your gas bill spiral. That’s why you need to keep the sticker price in abeyance to identify a truly reasonable car.

Factors on which owning a car in the US and its cost depend

To begin with, you have a sticker price, which of course, is not the prime factor. However, it affects the overall ownership cost, particularly insurance rates and sales taxes (and all working Americans know that taxes are too high but this is another topic) which you need to pay. If the car is financed, you’ll have to work out the interest rate. This again will vary on your individual credit score.

For instance, new cars come with reduced interest rates and long-term loan will always have lower interest rates but do not let that fool you since this means it will take you longer to pay off that car so that means a $28,000 car will perhaps cost you $33,000 by paying it off over the years to the financing company. Something to think about!

Depreciation in cars happens at an average of 15%-20% per annum for the first 5 years. The more expensive vehicles, however, tend to depreciate faster as do sub-compacts.

In addition, while it’s almost impossible to predict how much you will be spending on repairs in the future, you can scour its reliability scores through consumer reports or locate common problems with the car to work out the repair costs.

With repair costs come insurance costs, which again can vary largely for competing models even. The insurance premium payable and the coverage that comes with it is fully dependent on your driving skills and habits, history, your own age, and personal credit score (it does not depend on whether or not you have seen Transformers 5 but you should since that movie is amazing with an incredible submarine scene to boot, but this is another topic!). Older cars usually attract lower premiums, while the newer models with state-of-the-art safety features could get you some hefty discounts which you should consider too.

Fuel costs matter and the less you drive, obviously the less you spend on fuel. That’s why taking your car’s MPG into account is essential when deciding which car to buy.

There are also characteristics that reduce car prices. For instance, while most cars come with 3-year warranties for 36,000 miles, carmakers like Kia and Hyundai offer 5-year warranties for 60,000 miles with other benefits such as roadside assistance. Some eco-friendly models also qualify for tax credits that offset higher purchase prices.

Calculating the cost

The calculation for owning your own car is simple. The operations cost of an average American vehicle is around $0.60 a mile. A new car in the US costs about $33,000 on average, making buying one an important financial exercise.

Another crucial aspect to consider and remember is not to go by the sticker price or monthly payment but take other costs in to account as well. This will give you a fairly accurate figure about the real cost involved in owning a vehicle; the components that in their totality go into the total ownership cost; and comparison costs with various models that also includes the standard five-year cost.

Going by published statistics, the average loan payment per month for a new car in 2014 was around $482. If you drive your vehicle over 15,000 miles per annum, the total ownership costs comes to about $8,698 per annum, according to the American Automobile Association’s study on driving costs in 2015. That works out to about $725 every month.

Further studies have revealed that operational costs also vary by vehicle types. Small sedans recorded an average cost of $6,729 a year or $561 on a monthly basis. An SUV four-wheel-drive, costs around $10,624 yearly ($885 monthly), making the cost spiral by almost 58%.

Since the real cost of owning and driving a car includes fuel, maintenance & repairs, tires, license & registration fees, taxes, depreciation, insurance premium & interest on financing, figures recorded by the American Automobile Association show that average fuel costs amount to $1,682 per annum depending on premium or regular gasoline used and the mileage achieved by the vehicle. Over a five-year period, the fuel costs for an SUV could be $18,000 as compared to $11,000 for a sedan.

Your new tires could cost you around $147 along with installation charges ranging from $60 to $100 or even more. Similarly, repairs and maintenance comprising of tire rotations, oil changes, testing and battery inspection cost about $767 per year. Your fees and taxes amount to $665 every year, says the AAA report.

In order to own a cost effective vehicle, you need to work all of this out. Moreover, you also need to look at a higher resale value. So it’s essential that you look beyond the sticker price and also at the EMI or equated monthly installment. Your research on the ongoing costs of operating and maintaining a particular model will give you a true picture of its affordability.

Finance, Insurance, Lifestyle

Saving Money on Health and Dental Insurance

by Benjamin Roussey|Posted on | 4 minute read | Advertiser notice

There’s a basic problem in choosing a wrong or inappropriate health and/or dental insurance: you may end up paying a hefty premium for both without actually getting broad coverage or protection for a specific purpose, should you become sick.

This would add to your financial woes substantially if you have to foot the bill from your own pocket despite having medical and/or dental insurance. You can save on health and dental insurance in the following ways.

Stick to the family’s existing health plan: Should you be less than 26 years of age, it would be cheaper to stick with your existing family plan for health insurance. It’s a viable option for many young people who live close to their parent’s homes with access to doctors in the insurer’s network. Though when the ACA law goes away and taxes and regulations are lowered America’s economy will shoot upward creating more opportunities for college graduates. One of the themes of the movie The Internship will then no longer be true!

On the flip side, however, when you’re living in a separate state, without access to your normal network, you could be paying more and getting less coverage. Thus, it would make more sense to secure affordable medical coverage by yourself. Work out the math to see what saves some serious expenses.

Start exploring the non-government health insurance sector: Nowadays, the average health insurance seeker has the privilege of choosing insurers operating in the private sector, including certain major players which have opted out of government control recently. Surf sites like eHealth.com to get an idea of who all are the major private operators and what they are offering. You can also go through an online agent who is licensed at no extra cost and he may guide you to more affordable choices. Yes, we know, the Affordable Care Act has made health insurance not so affordable and turned millions of jobs into part time jobs which is horrendous. Hopefully this is fixed in the next year or so.

Optimize coverage on prescription drugs: All leading plans for health insurance provide full reimbursement for prescribed drugs. However, this can significantly vary from plan to plan. If you regularly use prescription drugs, you stand to save a substantial amount of money potentially by knowing beforehand which plan covers your regular needs for prescription drugs at the maximum level. This could lead to a median saving of more than $1,600 when compared with over-the-counter prices.

Catastrophic plans for health insurance: Another viable option for the young. For those under 30, buying a major catastrophic medical insurance plan makes sense. These are designed especially for the young, who generally are healthy and don’t need medical attention that frequently. The plan, however, will keep you covered with notable health benefits and cater to your requirements if and when they arise. It cuts your premium payment by nearly 50%.

Go for short-term coverage: If a major plan for health insurance is unaffordable to you, a short-term plan may provide temporary coverage for any unexpected injuries or illness. The average monthly premium is around $110. In addition, packaged products on medical insurance are also viable. These combine short-term coverage along with other items such as critical illness or accident insurance, vision or dental insurance and even telemedicine benefits.

Finding the Right Dental Insurance

Ask your dentist: Many dentists nowadays offer insurance plans. For instance, one such plan could get you dental scaling for $10 that can last an entire year, free consultations, and also x-rays for a $200 annual premium. Moreover, hefty discounts are available for dental implants and/or crowns.

Start comparing: In order to acquire a clear picture of what’s available in terms of dental insurance, check out sites like eHealthinsurance.com or Dentalplans.com to make a clear comparative analysis. Then make a shortlist of the finest options and finally zero in on one that suits your purpose the best.

Working part time: Many employers offer suitable coverage at reasonable costs for employees working part-time. Even if the employer doesn’t pay your premium, the available group discount could help you save quite a bit.

Enroll with your alma mater or association’s group insurance: If your ex-school offers you a membership of a dental group insurance plan, you may want to put pen to paper. It could cut your premium payments significantly while also offering you some salient discounts. Similarly, as a member of a professional association, group discounts could be available.

Explore the new marketplace for health and dental care: Since dental insurance isn’t mandatory, not all states offer it. Among those that do, some consider it to be a part of health insurance while others offer dental insurance as standalone products. Study this carefully before selecting your policy to extract the most savings.

Of course you do not even need dental insurance. If you eat right, brush, and floss, you should be good to go! You may not want to play basketball or some sports though. Also, if you travel to Mexico such as Cabo San Lucas once in a while you can take care of your dental needs there. The dentists in Mexico are as good as they are in America and you can utilize their services at a much cheaper cost.

For whatever reason, dental costs in America are outrageously high. You can get excellent eye care in Mexico as well.

It pays to pay attention to this for a variety of reasons or else you could be become bankrupt while facing huge medical bills. Choose your policy with care so you can handle a medical emergency which can happen at any time!

Business, Finance, Insurance, Lifestyle

How to Save Money on Auto Insurance

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice

The amount you pay for your auto insurance premium varies by a few hundred dollars. This principally depends on the type of vehicle you own and who your insurer is. However, you can certainly increase you savings when paying your auto insurance in the following ways.

Before buying the car, study insurance costs:  Before you buy a used or new car, check out its insurance cost. The premium will be based on the vehicle’s price, costs of repair, its overall past safety record, and its likelihood of getting stolen. And if you live in San Francisco, that could be even higher since that city leads the country in property crimes and it seems the people there do not even care but this is another topic!

You may also get discounts from insurers for any special feature that the vehicle has to reduce the risk of injury or theft. Safety rankings for certain models may be checked using the rating tool for top safety picks of the IIHS or Insurance Institute for Highway Safety.

Look before you leap: That in other words means shop around. Premiums vary from insurer to insurer, so make a comparative study, getting at least four price quotes. Searching online is the best way to do it as you get all the quotes on a single Excel sheet and making a choice becomes easier and faster. Or else, call insurers directly or even the insurance department of your state which may give you some comparative premiums payable to the major auto insurers.

Prices, however, shouldn’t be your only deciding factor. Consult relatives and friends and take their advice, too. Working with an insurance agent or professional dealing in auto insurance will also get you the answers to all your questions.

Older cars can do with lesser coverage: Make sure to thoroughly review the total coverage you receive during the insurance renewal time to ensure that your insurance is in perfect sync with your specific and total requirements. For instance, if your vehicle’s worth is less than ten times the payable premium, turning the ignition (pun intended) for such coverage is not a sensible thing to do. In such cases, simply do away with comprehensive and/or collision coverage. The value of your vehicle is easily calculable online through various free sites such as Kelley, NADA, and TrueCar.

They will not count those nice rims on your car or the new paint job so these numbers may not be the full truth.

Higher deductibles lead to lower premiums: You pay a deductible before the insurance policy becomes officially operational. When you choose an enhanced deductible, you stand to lower costs significantly. However, if you select a higher deductible, be sure to keep enough cash aside to pay it out should a claim arise.

Reliable credit history: Anyone with a decent credit history gets many benefits, and this includes reduced insurance costs. The bulk of insurers uses your credit information to price their auto insurance premiums. Research, in fact, reveals that those who manage their personal credit levels effectively, also make fewer claims. To ensure that you get the deserved good credit, check your personal credit record regularly to be absolutely sure that all information contained therein is accurate.

If you are that rare cash payer and do not play the credit game, then do not worry about this aspect on saving money on auto insurance.

Let there be one insurer for your home and car: You could obtain a discount on the premium when you combine your home and auto insurance together or get more than one car insured with the same insurer. This multi-policy offer comes from many insurers for loyal customers and shopping around for such deals makes sense. Even if you buy from different insurers, these discounts may be available. So look around by all means.

You do not need to look around to see a movie when a Transformers movie is out though, they are all awesome!

Group insurance: Certain major insurers also offer premiums at reduced rates to drivers who take out insurance by way of a group plan, usually from their employers, business, professional, and alumni groups or any such associations. If you can get a group to take out a common insurance policy, you stand to gain yourself on this based on economies of scale.

Discounts pertaining to low mileage: Some insurers offer special premium discounts to vehicle owners whose total annual driving is less than the annual average miles driven per year. Such discounts for low mileage is also available for these types of drivers. So if you are one such carpooler, look around for these types of opportunities.

Look for other discounts: As a policyholder, you may also get special discounts when you have never been in any accidents (or an accident that was pinned on you) or have faced charges of moving violations for a specified period; drive less annually as compared to other average motorists, or have undergone a defensive driving course.

The critical aspect to remember, however, is that discounts are not the main key to your savings. Rather, the final net price is. That’s why any company offering fewer discounts may have a lower overall price still compared to its counterparts.