Quarter 2, 2024
Greetings,
It is hard to believe we are already more than halfway through the year. There have been many developmentsthis year, and we are anticipating the fall season - and, for those in Texas, cooler fall weather! John and Laura arein Colorado, already enjoying cooler weather. John is doing well and working on regaining weight.
As we navigate the year, we recognize that the upcoming presidential election, inflation concerns, andfluctuations in the stock markets are on everyone’s minds. If only we had a crystal ball to foresee the future!There are many uncertainties ahead, and it’s impossible to predict their outcomes. However, once the electionsare finalized, we anticipate gaining a clearer understanding of the direction ahead.
As you know, our philosophy is to plan for the long term – and we remain committed to that philosophy. Weunderstand that events like these are part of the natural cycle of markets and economies. This is why weemphasize the importance of having a well-thought-out financial/investment plan in place. Such plans aredesigned to withstand unexpected life events and market fluctuations, allowing us to navigate challengeseffectively when they arise.
As previously mentioned, we recently attended conferences where we gained invaluable insights that we believewill benefit you. Many topics were covered that we will incorporate into our annual planning with you, such astax laws that are due to sunset in 2025, AI in Finance, and AI for the Human Side. We also wanted to take amoment and share with you some additional key learnings, along with an important 'Did You Know' aboutMedicare Premiums and HSAs.
Legacy letters/Ethical Wills:
We often talk about leaving a letter or Ethical Will for children or grandchildren, butmost of us never get around to it. We met a person who actually helps you get these thoughts and memoriesdown on paper. If you have any interest, we will be happy to provide the contact information.
Thanks to those that have sent us 2024 tax returns! If you haven’t, please do so once complete, or before, if you would like for us to review them prior to filing.
Beneficiaries on Qualified Retirement Accounts
When designating beneficiaries on a qualified retirementaccount, it's essential to consider the implications of naming a charity alongside individuals. If both are listed,beneficiaries may need to adhere to the charity's 5-year payout rule, potentially limiting the distribution periodcompared to individuals who could stretch it out over ten years. By planning ahead, we can develop strategies tomitigate these challenges.
Did you know?
Covering Medicare Premiums with HSAs:
Your Health Savings Account (HSA) can be utilized to cover certainMedicare expenses, such as premiums for Part A, Part B, Part C (Medicare Advantage), and Part D prescriptiondrug coverage. However, it cannot be used for supplemental (Medigap) policy premiums. Retirees over age 65with employer-sponsored health coverage can also use their HSA to cover their share of these costs.
While it's true that you can no longer make new contributions to your HSA once you enroll in Medicare, you canstill withdraw money tax-free from your account to pay for Medicare premiums. These expenses can be from thecurrent calendar year or even from past years.
Even if your Medicare premiums are deducted directly from your Social Security benefits, you can still use yourHSA funds tax-free to reimburse yourself for those expenses. After turning 65, you can also use your HSA fundstax-free to pay for premiums related to Medicare parts B and D, as well as Medicare Advantage plans (excludingMedicare supplement policies). This is in addition to covering other out-of-pocket medical expenses that mayarise.
As always, we are here to support you and address any questions you may have regarding your financial strategy. It is said that 64% of clients say they feel they don’t have anyone to talk to about their money, including theirfinancial planner. If this is you, we need to talk. Your peace of mind and financial well-being are our top priorities.
Contact Information
866.220.7788 is the number to use to leave a message. Please do not leave voice mails on home or cell numbers as they are unreliable—it is unlikely you will receive a return call from these numbers.
Email is always good as it also comes through to our cell phones.
It is OK to send texts to our cell phones, but we can’t accept trade orders or other financial requests via text as they cannot be saved to the satisfaction of the SEC.
laura@addingtonfg.com Laura Addington ld@addingtonfg.com Laura Brown
The mailing address has not changed, PO Box 143, Winnsboro, TX 75494.
Please contact us at any time should you have any questions or concerns.