Making Your Employer a Partner in Your Financial Planning
People who look to their employers for nothing more than a weekly paycheck and basic health insurance are missing
the boat. It makes the most sense to ask a future employer about benefits before you agree to come to work. But
even if you have been working for the same company for years, it’s never too late to go to human resources to make
sure you’re getting the most mileage out of your current benefits and maybe pick up a new perk or two. See if you
have the following options available, and check with your tax professional or a financial adviser before you make a
selection:
Look at health savings accounts: If your employer has converted to a high-deductible healthcare plan, you may
have the option of starting a health savings account (HSA). These accounts help workers to save and spend money
tax-free for medical expenses not covered by the plan or your deductible. Why are they a good idea in some
situations? Because you can sock away money tax-free that will cover the amount of the deductible (at least $1,050
for individuals, $2,100 for families) if you need it, and it will grow tax-free over time if you don’t.
Look for a finders’ fee: Companies rarely like to give away money unless they know they’re saving some in the
process. Many companies are now offering finders’ fees to employees who successfully bring new workers in the
door. Why? Because it costs considerable money and time to hire people, and employers are happy to see their best
employees bring friends and former co-workers in the door. Also, some companies give away special bonuses for
bringing in new clients, so don’t miss a chance to earn them.
Check your target bonus amounts: This is usually not a problem for most people who receive annual bonuses, but
it makes sense to double check the minimum bonus you should earn annually and what it will take to exceed that
limit.
Get flexible: If your company has a flexible spending account for medical, commuting or child-care costs, estimate
carefully what you’ll need to spend and get on board. While workers can get a chance to spend out their accounts
into the next tax year, it’s very important to project exact numbers so you won’t lose funds at the end of the eligibility
period.
Get smart: More than three-fourths of U.S. companies offer education benefits, so if you have the time and
inclination, finish that degree or complete a particular course of study to prepare you for your next job or for your
enjoyment. Most companies will ask you to stay a certain length of time after receiving such benefits, which seems
fair. But education is worth far more than the dollar cost of tuition, so don’t pass it up.
Get fit: Some companies negotiate membership discounts to gyms and other fitness facilities, and that’s a worthwhile
benefit. But these days, with company health care premiums going through the roof, some employers are actually
paying employees to lose weight, quit smoking or take other steps to improve their health and lower their boss’s costs.
Have some fun: Companies get discounts to a variety of entertainments – the local amusement park, sports events,
theaters, restaurants, auto shows and other local events. If they interest you – and particularly if they interest your kids
– you’d be foolish to pass up such discounts.
Take active steps: If you hear friends or clients boasting about particular benefits or incentives at their companies,
quiz them to find out as much as you can about how their companies afford those benefits. If the story checks out,
then go to your own company and ask them if they might consider it.
©2006-2011 Yardley Wealth Management, LLC. All rights reserved.
People who look to their employers for nothing more than a weekly paycheck and basic health insurance are missing
the boat. It makes the most sense to ask a future employer about benefits before you agree to come to work. But
even if you have been working for the same company for years, it’s never too late to go to human resources to make
sure you’re getting the most mileage out of your current benefits and maybe pick up a new perk or two. See if you
have the following options available, and check with your tax professional or a financial adviser before you make a
selection:
Look at health savings accounts: If your employer has converted to a high-deductible healthcare plan, you may
have the option of starting a health savings account (HSA). These accounts help workers to save and spend money
tax-free for medical expenses not covered by the plan or your deductible. Why are they a good idea in some
situations? Because you can sock away money tax-free that will cover the amount of the deductible (at least $1,050
for individuals, $2,100 for families) if you need it, and it will grow tax-free over time if you don’t.
Look for a finders’ fee: Companies rarely like to give away money unless they know they’re saving some in the
process. Many companies are now offering finders’ fees to employees who successfully bring new workers in the
door. Why? Because it costs considerable money and time to hire people, and employers are happy to see their best
employees bring friends and former co-workers in the door. Also, some companies give away special bonuses for
bringing in new clients, so don’t miss a chance to earn them.
Check your target bonus amounts: This is usually not a problem for most people who receive annual bonuses, but
it makes sense to double check the minimum bonus you should earn annually and what it will take to exceed that
limit.
Get flexible: If your company has a flexible spending account for medical, commuting or child-care costs, estimate
carefully what you’ll need to spend and get on board. While workers can get a chance to spend out their accounts
into the next tax year, it’s very important to project exact numbers so you won’t lose funds at the end of the eligibility
period.
Get smart: More than three-fourths of U.S. companies offer education benefits, so if you have the time and
inclination, finish that degree or complete a particular course of study to prepare you for your next job or for your
enjoyment. Most companies will ask you to stay a certain length of time after receiving such benefits, which seems
fair. But education is worth far more than the dollar cost of tuition, so don’t pass it up.
Get fit: Some companies negotiate membership discounts to gyms and other fitness facilities, and that’s a worthwhile
benefit. But these days, with company health care premiums going through the roof, some employers are actually
paying employees to lose weight, quit smoking or take other steps to improve their health and lower their boss’s costs.
Have some fun: Companies get discounts to a variety of entertainments – the local amusement park, sports events,
theaters, restaurants, auto shows and other local events. If they interest you – and particularly if they interest your kids
– you’d be foolish to pass up such discounts.
Take active steps: If you hear friends or clients boasting about particular benefits or incentives at their companies,
quiz them to find out as much as you can about how their companies afford those benefits. If the story checks out,
then go to your own company and ask them if they might consider it.
©2006-2011 Yardley Wealth Management, LLC. All rights reserved.
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Michael J. Garry, CFP®, JD/MBA, owner of Yardley Wealth Management, LLC,
is an independent Financial Advisor who provides Fee-Only financial planning
services and investment management in Newtown, PA.
is an independent Financial Advisor who provides Fee-Only financial planning
services and investment management in Newtown, PA.
| Address: 41 University Drive Suite 400, Newtown, PA 18940 Phone: 267-573-1019 Toll free: 877-251-4393 Fax: 267-604-9164 mgarry@yardleywealth.net |