Financial Tips for October

With the end of the year fast approaching, many employers open up their benefits enrollment windows and offer new opportunities to reassess health care, retirement savings, and other employee perks. To stay ahead of the game and set yourself up for financial success, focus on two critical actions this month: reviewing your current benefits and preparing for open enrollment.

1. Review Your Current Benefits

Before diving into the open enrollment period, take the time to thoroughly review your existing benefits. Many employees often set up their benefit elections once and rarely revisit them, potentially missing out on opportunities to optimize their choices.

Here are some key areas to focus on

Health Insurance Coverage

• Assess your current usage: Are you paying for benefits you don’t fully use, or are you finding your current plan too limited? Compare your health care expenses over the past year with your plan’s coverage to evaluate whether your current insurance is still the best fit for you.

  
  

• Health Savings Account (HSA) or Flexible Spending Account (FSA): If you have an HSA or FSA, make sure you’re maximizing contributions. HSAs in particular are a valuable tool for long-term savings, as funds roll over each year and grow tax-free.

Retirement Contributions

• Employer Matching: Are you contributing enough to your retirement plan to take full advantage of your employer’s match? Failing to do so is like leaving free money on the table.

  
  

• Consider increasing your contributions: October is a great time to increase your retirement savings if you haven’t hit the maximum contribution limit yet. Even a small increase can significantly boost your long-term savings.

Additional Benefits

• Life Insurance & Disability Insurance: Ensure you have enough life and disability insurance coverage for your family. If your circumstances have changed (marriage, children, new home), you might need to adjust your coverage amounts.

  
  

• Wellness Perks: Many employers offer wellness programs that come with financial incentives. These can include discounts on gym memberships, mental health services, or wellness coaching. Taking advantage of these offerings can improve your well-being and save money.

2. Consider Open Enrollment Options

Open enrollment typically occurs in October or November, giving you the opportunity to make changes to your benefits for the upcoming year. With so many options on the table, it's crucial to be prepared to make informed decisions.

Here’s what to keep in mind

Health Insurance Plans

• Compare plan types: Your employer may offer different types of health plans, such as PPOs, HMOs, or high-deductible health plans (HDHPs). Take the time to compare the cost, coverage, and network access for each plan. While a lower premium plan might seem attractive, consider the overall out-of-pocket costs and whether the plan aligns with your expected healthcare needs.

• Telehealth and mental health benefits: Given the rising focus on mental and remote healthcare, check if your employer offers expanded telehealth or mental health services. If these are important to you, prioritize a plan that includes them.

  
  

Dependent Care Flexible Spending Account (FSA)

If you have young children or dependents, consider enrolling in a Dependent Care FSA. This account lets you set aside pre-tax dollars to cover daycare, after-school care, or elder care expenses, reducing your taxable income.

Dental and Vision Coverage

Many employers offer optional dental and vision insurance. Review the cost and benefits of these plans, particularly if you or your family members anticipate any dental work or vision needs in the near future.

Life and Disability Insurance

You may have the opportunity to increase life or disability insurance coverage during open enrollment. Take the time to assess your family’s needs and ensure your coverage aligns with your financial goals.

Long-Term Care Insurance

Some employers offer long-term care insurance, which can help cover the cost of nursing homes or in-home care. This can be especially important as you think about planning for future healthcare expenses.

October is a strategic time to take stock of your financial health. By reviewing your benefits now and preparing for open enrollment, you can make smarter choices about health insurance, retirement savings, and other valuable perks. These financial decisions have a lasting impact, so investing the time to optimize your benefits today can lead to significant savings and security in the future!

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