St. Joseph finance experts offer tips to navigate November benefits sign-up
By Charles Christian
Annual November benefits updates can be confusing, but getting advice from an expert can lower the anxiety of making the right selections.
In November, most companies and individuals prepare to update their benefits packages for employees. For new employees, and for those new to the process of choosing benefits, the task of making decisions about insurance coverage and how much to put away for retirement can be daunting. Also, retirees reassessing their Medicare benefits during the month of November are often bombarded with a variety of confusing options. St. Joseph financial planner Curt Logan of Logan Financial Services said it all starts with the basics.
“First, if you company has annual meetings about your benefits, make sure you attend,” Logan said. “Also, human resources and your benefits representatives can help you all year long.”
Darian Roberts, a new employee of the YMCA in St. Joseph, said clear guidance from employers about what is necessary cuts down on the stress of this time of year.
“Just understanding the benefits and what is applicable to me is a challenge,” Roberts said. “Having a sheet or a documents that tells you what is important and what may be unnecessary would make the decisions easier.”
That’s where financial experts can help. Most of them, like Logan and financial planner Chase Geisler, are available for free consultation for employees and retirees making decisions about their benefits. Logan said it all begins with health insurance, which he said is an essential part of financial planning, since one incident could be a financial disaster.
“If you don’t have health insurance, you’d better sign up for it one way or another,” Logan said. “It is basically bankruptcy protection in America these days.”
He added that employees are free to choose their company’s plan, an individual plan or a plan offered through the insurance exchange. Geisler said benefits should be seen as part of a holistic overall financial plan.
“Trying to stay out of debt and saving as much money as possible along the way add to financial security in the future,” Geisler said. “Choosing benefits should fit into your overall financial plan.”
In addition to standard health plans, especially those with higher deductibles or limited coverage, tools like a flexible spending account (FSA) or a health savings account (HSA) may also come in handy. An FSA allows you to set aside pre-tax money to pay for out-of-pocket health care costs, including deductibles. An HSA is a tax-deductible account that also allows employees to pay for qualified medical, dental, drug and vision expenses.
For retirees, November is also the month set aside to review changes or additions to Medicare. Logan said advisers can be helpful, because some of the changes can be confusing, and because advertisers often bombard senior adults with confusing and biased options.
“Usually if you’re hearing a lot of advertisements about Medicare, they’re going to be weighted toward only one option,” Logan said. “An adviser can help you see all the options and help you decide what is right for your own situation.”
