Ep 9: How to use your HSA as a Retirement Account

You could use your Health Savings Account (HSA) to pay for current medical expenses. However, if you can, I recommend that you invest the full HSA amount into the stock market and allow it to grow and compound.

The HSA is the only account that has triple-tax benefits: you don’t pay taxes on contributions, growth or withdrawals (for qualified medical expenses).

Did you know:

  • You can save your receipts for current medical expenses and pay yourself back in the future?
  • You don’t have to have the money in your HSA currently, as long as the account is open, start saving receipts.
  • After the age of 65, you can withdraw money from your HSA for any reason and pay taxes on the gains?
  • This is like having an additional 401k account!
  • Qualified medical expenses include dental, vision, hearing aids, chiropractic care, eyeglasses and more!
  • You can contribute up to $3,600 as an individual or $7,200 as a family
  • Plus an additional $1,000 as a catch-up if you’re over age 55

Resources:

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 8: How to use a Backdoor Roth

A backdoor Roth is a way for high-income earners to be able to contribute money into a tax-free Roth IRA account. It is a matter of contributing non-deductible money to a Traditional IRA and then converting that to a Roth IRA. The tricky part comes during the conversion: If you have any money in an IRA that has not yet been taxed, you’re going to owe taxes on that.

In today’s episode we discuss:

  • The difference between a Traditional IRA and Roth IRA
  • A simple example of a backdoor Roth when you have no other IRA accounts.
  • How taxes work on a conversion
  • How you can still do a backdoor Roth even if you have other IRA balances
  • A potential way to save on taxes if you can roll your existing Traditional IRA balance into your current 401k account.

Resources:

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 7: Which account should I save money next?

From savings to brokerage, 401ks, HSA, and 529 accounts: there are a lot of accounts to choose from! Where should you focus your savings? What is the “right” account to put your money to save on taxes and grow it for the future? Today we discuss the order of account funding, which accounts to focus on first, second and third.

Listen as we discuss:

  • Paying off high-interest debt first
  • Saving for Emergencies
  • Finding free money (401k match and 529 state-tax deductions)
  • Health Savings Accounts (HSA)
  • Roth IRA and backdoor Roth contributions
  • 457 deferred compensation plans
  • SEP IRA, 529s and more

Resources:

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 6: My company just went through an IPO. Now what!?

A listener asked the following question:

“My company just went through an IPO.  

I have been working for a large technology company for the past 7 years.  I am 34 years old, single, and find myself in an entirely new situation. My stock is now worth over $4m dollars and I have no idea what exactly I should do next!  How do I think about this new wealth?  Do I sell some of my stock or all of it? What else should I be thinking about?  I’m still working at the same company but might leave soon to explore other opportunities or take some time off work.

Any suggestions or advice would be so helpful.  Thanks!”

Listen in as Julie and I discuss how to think about a windfall, including:

  • Congratulations! It takes a lot of hard work, sacrifice and some luck.
  • How do you navigate friends and family as you’re suddenly a multimillionaire? Emotions are real.
  • How to think about $4m in a single stock portfolio.
  • How to handle taxes?
  • What do you really want to do and who do you really want to be?
  • Have a plan.

Resources:

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 5: What is a Donor Advised Fund and why have one?

What is a Donor Advised Fund? How does it work and why would you want to open one? What exactly are the tax savings? And be sure to listen to the end where I review some real-world strategies used by clients.

We cover topics such as:

  • A Donor Advised Fund is simply an account that you own.
  • How to open a Donor Advised Fund
  • How to transfer money into a DAF
  • Why most Americans do not get a tax deduction for their charitable gifting
  • How to use a “bunching” strategy.
  • How to use a DAF in high-income years such as a bonus or exercising stock options or an IPO

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 4: Individual Retirement Accounts: Traditional vs. Roth

In today’s episode, I’m interviewed by Matt Robison in his on-air radio show Your Money – where we discuss Traditional IRA vs Roth IRA.  Where should you invest your money?  Which one makes more sense?  And be sure to listen to the end where we talk about Roth Conversions and Back-Door strategies. 

We cover topics such as:

  • What is an IRA?
  • What is the difference between a Traditional IRA and a Roth IRA?
  • Which type of account is best?
  • If I’m young and starting my career, should I use a Roth?
  • What if I’m in the middle of my career or about to retire?
  • What is a Roth Conversion and when should I do that?
  • What is a Backdoor Roth?

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 3: Health Savings Account (HSA) – What is it and how to use it?

In today’s episode I’m interviewed by Matt Robison in his on-air radio show Your Money – where we talk about Health Savings Accounts or HSA.  What is this type of account?  And how does it work?.  And be sure to listen to the end where we talk about how investing in your HSA can save you thousands of dollars. 

We cover:

  • What is a Health Savings Account (HSA)
  • How do you qualify to open an HSA?
  • How do you contribute money?
  • How do you invest the money in your HSA?
  • What medical expenses qualify for use in an HSA?
  • How much money can you save?
  • What is the best way to use an HSA?

Find out more about Mike at https://mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

Ep 2: Portfolio Allocation – How to think about your investments

In today’s episode I’m interviewed by Matt Robison in his on-air radio show Your Money – where we talk about Investing and Portfolio Allocation.  What is a stock or bond?  How should you think about diversifying your portfolio?  And be sure to listen to the end where we discuss how to think about your portfolio and investing future.

Ep 1: Stimulus Package – What it means for You

In today’s episode, I’m interviewed by Matt Robison in his on-air radio show Your Money – where we talk about the latest Stimulus package.  Have you received your checks?  Does the unemployment benefit continue or increase? What are the changes when it comes to taxes and deductions? And be sure to listen to the end where we discuss what wasn’t included this time.