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Financial Planning Insights July 2022

Jul 11, 2022

Anytime Reimbursement from a Health Savings Account.

If you have a health savings account (HSA) and you want to use the account to pay for a qualified medical expense, you have the choice to pay out of pocket for the expense and reimburse yourself later.

Paying out of pocket for the expense and reimbursing yourself later gives you some nice flexibility because you can reimburse yourself for a qualified expense at any point as long as it was incurred after your HSA account was opened. 

For example, you opened your HSA account 5 years ago and you had a qualified medical expense two years ago which you paid out of pocket. You can reimburse yourself today for this expense from your account without penalty.

One thing to keep in mind is to keep detailed records of your qualified medical expenses over time regardless whether you intend to reimburse yourself which gives you maximum flexibility on reimbursements today or in the future.

Use an Online Password Manager

Living in a digital world has increased our use of online accounts, passwords and the use of internet driven financial transactions.  The advancement in the use of technology brings complexity in maintaining passwords for all of our online accounts and protecting our online personal financial data.

One way to simplify the organization and location of our passwords is to use a password manager which is like an online vault that stores all of our passwords and internet links to each online account. 

When using a password manager, you need to remember one master password to gain access to your password vault. Once you are logged into your password manager, you can access all of your online accounts with an auto fill password feature for each site loaded into the manager.

You also have the ability to add additional layers of security for the login to your manager like two factor authentication to your mobile phone to verify you are the one trying to access your password manager.

Password managers such as LastPass, 1Password or Dashlane are good places to start in your search for a password manager. Some vendors offer a free version but I would opt for a paid version to afford the greatest flexibility for use and added levels of security.

Borrowing from an Investment Portfolio

Need cash for an emergency, unexpected large expense or are you planning for a larger financial transaction? 

Establishing a Securities Backed Line of Credit (SBLOC) on your personal investment account (Non-IRA) allows you the freedom to access the value of your investment portfolio while leaving the individual investments untouched.

An SBLOC can be established on a personal investment account and can be used for almost anything: real estate purchase, tax bills, tuition payments but not to purchase securities.

SBLOC’s typically are variable interest rate revolving lines of credit backed by the securities within your account. Borrowing from the SBLOC in times of need allows you to avoid the potential tax consequences of selling investments as well as allowing you to remain invested within your investment strategy which is even more important today with markets in decline.


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