The future is uncertain… but one thing we all seem to agree on is that our Social Security system is getting weaker and weaker, while health care costs get worse and worse. People retiring twenty years from now face laughable Social Security checks, unheard of medical costs, and probably financial doom…in other words a Financial Apocalypse.
Yup, you can start an IRA now. You can try and pay off your debts. You can live frugally, keep a budget and live wisely and exercise all you want but if you don’t start thinking outside the box you’ll never be ready for any type of secure financial future. Save all you can for the future and hope Social Security somehow comes through for you by the time your retire. But on the medical cost angle…here’s what else you can do. Prepare yourself, because it’s radical…
Stop going to the doctor’s so much.
Americans run to the doctor for every little sniffle, every little ache, and consequently run up medical costs like no other country in the world. Guess what, it doesn’t make us any healthier, either. It just makes us poorer. If you can cut your doctor’s office visits, take better care of yourself, eat right and exercise, you can probably change the type of health insurance plan you have. And that’s what this post is all about: the Health Savings Account.
HSA’s and IRS Form 8889
If you get a high-deductible health insurance plan, you are eligible to open a Health Savings Account (HSA). That means huge tax savings when it comes to filing your federal income tax return with the IRS. IRS Form 8889 is used to report to the IRS the contributions you make to an HSA. Your contributions are tax free! They reduce your taxable income, thereby reducing your tax bill. Plus, you are saving for future medical expenses so no medical emergency will wipe you out, causing a Financial Apocalypse.f8889