Is it that Time…Again?

Doesn’t it feel like just yesterday your inbox was being inundated with emails about “Open Enrollment” and now it’s all starting again!

Open enrollment is an important time each year because not only does it give you the opportunity to adjust your employee benefits, it allows you to sign up for health insurance or add a child but to me it’s a great reminder to check-in on your OVERALL FINANCIAL HEALTH!

Just like we are diligent about visiting the doctor for our annual check-ups, we should be just as diligent about our Financial Health.

I have provided some steps below that will help you understand your employee benefits but also give you the framework on the best resources to connect with during this season of Open Enrollment.

Action Steps in Reviewing your Employee Benefits:

  1. Review all correspondence received regarding your company’s open enrollment – Sometimes employers will require action on your part to stay enrolled –  which is why diligence is required on your part!
  2. Ask yourself, “How have my needs changed this year?” For example, dental or vision insurance may not have made sense when you are single or newly married but once you add a child or two to the mix, these needs might change. Does my company now offer a Health Savings Account with a high deductible plan, would this be beneficial?
  3. “What are the changes in the plans?” When you receive your open enrollment materials, you will need to look for changes in the plans that are being offered. There could be more differences than just a change in premiums – but also deductibles, copays or even providers. It’s important to cost compare plans by also considering your needs and if those have changed. 
  4. Review the other types of employee benefits that may be available for example group life insurance or disability.  For example, for an employee in their 20’s and early 30’s there may not be a need for long-term disability insurance but this could change with age and the changing dynamics of your family.
  5. Are there any updates to my 401(k)? For example, have any changes occurred within the investment options available in the plan. Has your employer added a Roth 401(k) to the plan? Do you have access to sign up for the automatic increase option for your salary deferrals. 

Stay tuned for another email with detailed information on the importance of reviewing your 401(k) at the very least, annually!

  • How Will Things Affect My Take-Home Pay?An important and final thing to consider is how your benefits will affect your take home pay. If you decide to make adjustments to your current benefits, it is likely that your take home pay could be affected so by determining this beforehand can prevent an unwanted surprise!

So now that you have reviewed your employee benefits – now what?! Want to take your planning to the next level and really understand the full picture of your financial health?

  • Contact your HR rep through your employer 
    1. Ask questions about any changes to your Employee Benefits 
    2. Get clarification on any changes you are unsure about and their potential impact on you
  • Call your Financial Advisor 
    1. Schedule a 4th quarter review
    2. Seek their advice on what options are best for you and how any changes may affect you
    3. Ask your advisor what other investment options are available for you
    4. Don’t have an advisor – Find One!
  • Call your Accountant or CPA
    1. Schedule a year end planning meeting for tax purposes.
    2. Discuss with your CPA if there are any action steps that you should take before year end to limit your tax liability,
    3. Introduce your CPA and Financial Advisor so they can work together, as a part of your team, on your behalf.

Stay tuned for my next email which will focus on the benefits offered through your company 401(k) and its importance in building your nest egg!

I would love to hear from you if you have any questions during this open enrollment period.

Let’s Talk Soon,

Maleah