The first question for you is do you know the issues in which you may come away in the future taking right out financing?
By Will Smith- August 9, 2022
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Dr. Jim Dahle:
As far as how you take a deduction when https://paydayloansmissouri.org/ you donate something to charity it’s in the year you donate it is when you can take that deduction. So, I don’t think you should be buying stuff with your FSA that you’re just planning to donate to charity.
Although almost every other situation to keep in mind right here about any of it ‘s the most other way that you can appear ahead, which is getting other people pay off those individuals funds
Try to find out a way to lay shorter on your own FSA or have your boss focus, or compensate you in a different way, or buy stuff that it is possible to in fact fool around with at some point for your body. There’s lots of items you are able to use a keen FSA to own. There are all kinds of qualified costs that you can use FSA currency to possess.
Dr. Jim Dahle:
The difference between a flexible spending account, of course, and an HSA, a health savings account is in the HSA you can roll money over into the next year, whereas an FSA is use it or lose it. That’s the main difference. But there are all kinds of things that you can buy with an FSA that you might not have thought about. They’ve got extensive lists online. There’s got search tools that you can use online.
Dr. Jim Dahle:
But let me just go through some common eligible stuff that you can use it for. Acupuncture, ambulances, artificial limbs, artificial teeth, birth control treatment, blood sugar test kits for diabetics, breast pumps, lactation supplies, the chiropractor, contact lenses and solutions.
Dr. Jim Dahle:
Crutches, dental treatments, office visits and co-pays, drug addiction treatment, drug prescriptions, eyeglasses, fluoride treatments, flu shots, guide dogs, hearing aids and batteries. Infertility treatment, that’s a common one for docs.
Dr. Jim Dahle:
Inpatient alcohol treatment, vaccines, vasectomy, vision exam, walkers, canes, wheelchairs, midwives, laser eye surgery, insulin, lab piece. There are all kinds of stuff that you can use this for. Certain over-the-counter drugs and medications, stock up on your ibuprofen. There’s lots of stuff you can buy with your FSA. It’s probably not something to be mixing around with your charitable donations though.
Catherine:
Hi, I have a question about the pros and cons of living off of loans versus living off of savings and investments. Basically, as I start medical school, I can either take out the maximum amount of loans or I can use the $60,000 that I have saved in an investment account right now that’s outside of an emergency fund outside of retirement savings to live off of for the next four years.
Catherine:
I hate to use the money that I’ve invested because it’s making great returns, but I also hate to max my loans and take that on. I’m not really sure what math would make more sense there. Thanks.
Dr. Jim Dahle:
All right. Let’s get into the math of it to start with. Scenario number one is that your investments earn more after-tax than the loans cost you. That is why this can work out for you.
Therefore, whenever you are taking right out funds within six%, that is very regular having med college funds, and you secure ten% and keep maintaining eight% after-income tax, then you’ve got come out to come
Of course, for the a risk-adjusted base, it’s pretty difficult to overcome six%. 6% protected is actually a fairly attractive come back in reality. As if you appear in the protected financial investments on the market, our company is these are dos% at best is really what you’re getting towards men and women, with the exception of I bonds that is probably brief.
Dr. Jim Dahle:
So, you get the best of both worlds. You get to take out all this money, spend it on whatever you want, pay for your medical school. Take out a little extra, go down to the bar with it, buy a season ski pass with it.
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