Core Insights - Flexible Spending Accounts (FSAs) allow employees to set aside pre-tax money for qualifying healthcare expenses, providing a tax break and reducing monthly expenses [1] - Unlike Health Savings Accounts (HSAs), FSAs have a strict deadline for spending contributions, with most 2025 FSA funds needing to be used by December 31, 2025, although some plans may offer a grace period until March 15, 2026 [2][5] - Unused FSA funds can be lost if not spent, emphasizing the importance of understanding the specific rules of the employer's plan [3] Spending Options - Employers may provide a grace period of up to 2.5 months to utilize remaining FSA funds [5] - Suggested items for spending unused FSA funds include: - Dental care services such as cleanings or fillings [6] - Over-the-counter medications [6] - Vision exams and new glasses [6] - First-aid supplies [6] - Chiropractic care [6] - Contact lenses and lens solutions [6] - Cough drops [6] - Flu shots and other vaccines [7] - Menstrual products [7] - Massage therapy [7] - A comprehensive list of eligible products and services is available through FSA Feds, encouraging users to check for regularly used items [7]

Core Insights - The article highlights significant structural changes in retirement and healthcare financing in the U.S. by 2026, which will impact consumer payment methods for care and competition among medical device companies [1] Policy Changes - The IRS has increased Health Savings Account (HSA) contribution limits for 2026 to $4,400 for individuals and $8,750 for families, up from $4,300 and $8,550 in 2025 respectively [2] - The age-55 "catch-up" contribution remains at $1,000, reflecting cost-of-living adjustments aimed at preserving the tax-advantaged nature of HSAs [3] - Medicare Part B premiums are rising to $202.90 per month, an increase of nearly $18 from 2025, with the Part B deductible increasing to $283 [4] Implications of HSA and Medicare Changes - The rising HSA limits make HSAs more attractive for managing out-of-pocket healthcare costs, while higher Medicare premiums may lead to increased enrollment in Medicare plans and ancillary services [5] - HSAs can be used for both current medical costs and qualified medical device expenses, allowing consumers to save more tax-free dollars for durable medical equipment [6] - Higher premiums may increase demand for technologies that improve disease self-management and prevent costly complications, influencing total care costs [7] Companies Positioned to Benefit - DexCom, ResMed, and Masimo are identified as companies likely to benefit from these trends due to their focus on markets where out-of-pocket costs and reimbursement policies significantly affect adoption [8] - DexCom's continuous glucose monitoring (CGM) systems may see increased adoption as higher HSA limits help patients manage diabetes costs [9] - ResMed's devices for sleep and respiratory care align with the aging Medicare demographic and rising out-of-pocket care needs [9] - Masimo's monitoring tools support preventive care, which becomes more relevant as Medicare premiums rise [9] Company-Specific Insights - DexCom is a leader in CGM systems, providing real-time glucose data that aids in insulin delivery and lifestyle management, with a focus on expanding Medicare coverage for CGM devices [10][11] - Higher HSA limits allow diabetes patients to allocate more pre-tax savings for CGM systems, reducing financial barriers to adoption [12] - ResMed specializes in devices for sleep-disordered breathing, with rising premiums incentivizing seniors to use HSAs for optimal therapy devices [15][16] - Masimo develops non-invasive monitoring systems, with increased demand for preventive monitoring as Medicare beneficiaries face higher premiums [18][19]

Core Insights - The podcast discusses the potential downsides of Roth accounts, emphasizing that they may not be suitable for every investor [1][3][5] Federal Reserve and Market Reactions - The Federal Reserve cut the target for the Fed funds rate by 0.25 percentage points, marking the third cut of the year, with a divided vote of 9 to 3 [3] - Following the Fed's decision, the S&P 500 rose by 0.7%, while small-cap value stocks gained 2.3% on the same day, and the eShare S&P Small Cap Value ETF increased by 6.2% since early November [3] Retirement Account Considerations - Investors aged 73 or older must take required minimum distributions (RMDs) from retirement accounts to avoid penalties of up to 25% [3][4] - The IRS has clarified rules regarding inherited retirement accounts, which may require withdrawals starting in 2025 [4] Roth Account Insights - Roth accounts are praised for their tax-free benefits, but the podcast highlights scenarios where they may not be the best choice, particularly regarding adjusted gross income (AGI) implications [5][6] - Contributing to a Roth account can increase AGI, potentially raising Medicare premiums and affecting eligibility for various deductions and credits [8][9] Tax Strategy and Diversification - The discussion emphasizes the importance of tax diversification, suggesting that having both traditional and Roth accounts can optimize retirement income streams [17][18] - The podcast mentions that tax-free buckets like Roth IRAs can limit the ability to take advantage of lower tax rates in the future [11][12] Alternative Strategies - Qualified charitable distributions (QCDs) are presented as a strategy to meet RMDs while supporting charitable causes, allowing individuals to bypass tax implications [20][21] - The podcast also discusses the benefits of health savings accounts (HSAs) and their triple tax advantages, particularly for younger investors [22] Upcoming Changes in Contribution Limits - Contribution limits for IRAs and 401(k)s are set to increase in 2026, with specific catch-up contributions for higher-earning workers aged 50 and older required to be deposited into Roth accounts [23][24] - The podcast advises on strategies to manage contributions effectively to maximize tax benefits and account growth [24]

Healthcare Policy and Legislation - The Trump administration and House Republicans are focusing on reducing healthcare costs, with a bill aimed at lowering costs by approximately 11% for some Americans as Obamacare subsidies are set to expire [2][3] - The proposed legislation allows small businesses to pool health insurance, which is expected to lower premium costs across the board [3] - There is a push against extending Obamacare, which has reportedly raised premiums by 55% since its enactment, advocating for funds to be redirected to taxpayers for personal healthcare choices [4][5] Government Funding and Shutdown Risks - The Senate is nearing a deal on a five-bill appropriations package that would fund 85-90% of the federal government through fiscal year 2026, following the expiration of current funding at the end of January [2] - The potential for another government shutdown looms if the extension of Obamacare subsidies is not resolved, with discussions ongoing about the necessity of a compromise [6][16] - The House has passed a continuing resolution (CR), but the Senate's 60-vote threshold complicates the situation, leading to concerns about a repeat of previous shutdown scenarios [14][16] Cannabis Legislation - President Trump signed an executive order reclassifying cannabis as a schedule three drug, marking a significant shift in federal marijuana policy [17][19] - This change is expected to facilitate research on medical cannabis, which has been hindered due to its previous classification as a schedule one drug [19][21] - The reclassification has impacted cannabis stocks, with concerns that big pharmaceutical companies may enter the market, affecting existing cannabis producers [22] Federal Property Management - A new bill aims to address the issue of unused federal buildings, proposing that properties not utilized by more than 60% of federal workers should be sold to reduce taxpayer costs [24][26] - The initiative could also potentially convert these buildings into affordable housing, addressing supply issues in housing markets, particularly in areas like Washington D.C. and Florida [26][29]

Trump-Backed HSA Plan Would Give Some Americans $1,500 Each—But Here Are The Drawbackshttps://t.co/lEf5aveXjc https://t.co/wBLwjEychq ...

Retirement Planning & Investment Strategies - Approximately 42 million people in the US will turn 65 this year, highlighting the increasing need for retirement planning [1] - Rolling over a 401k into a checking account is considered dangerous due to potential taxes and penalties if not rolled into a qualified account like an IRA [3][4] - Health Savings Accounts (HSAs) are described as triple tax advantage accounts (tax-free in, tax-free growth, tax-free out for qualified medical expenses) and can serve as supplemental retirement accounts [8][9] - Overfunding an HSA results in a 6% penalty per year on the excess contribution [10] - Only 6% of people with HSAs have activated the investment function, missing out on potential market growth [16] Financial Habits & Long-Term Planning - Unconscious spending habits can lead to financial crisis; focusing on income, expenses, and where money is going is crucial [21][22] - Small business owners should prioritize saving for retirement, even with small amounts, and avoid relying solely on their business as their retirement plan [23][24] - A long-term planning horizon (10 years or more) improves the chances of a better retirement outcome [25][26] - It's important to understand annual spending needs 5-10 years before retirement to effectively plan for the cost of living in retirement [37] Retirement Account Considerations - When inheriting a Roth IRA, children must withdraw all the money within 10 years, but the withdrawals are tax-free [33][34] - For those required to take Required Minimum Distributions (RMDs) from an IRA, Qualified Charitable Distributions (QCDs) can be a tax-efficient strategy [29][30][31]

Healthcare Cost Management - ACA plans' premiums are expected to increase by 26% next year, and could potentially double if enhanced tax subsidies are not extended [1] - Individuals should update their marketplace account with their estimated income for 2026 [2] - Shopping around for health insurance based on sticker price and affordability is crucial [2] - Consider enrolling in a bronze plan, which typically has the lowest monthly premium [3] Tax Benefits and Savings - Preventative care is free in bronze plans, and some doctor's visits may be covered before the deductible [3] - Starting next year, all bronze plans will work with health savings accounts (HSAs) [4] - HSA contributions are tax-deductible, lowering taxable income [4] - HSA funds can be invested and grow tax-free if not needed immediately [5] Enrollment and Deadlines - The enrollment deadline for a plan starting on January 1st is December 15th [5] - It is important to get insured to avoid potentially devastating financial consequences [5]

Retirement Account Contributions - For 2025, contribution limits are $23,500 for employees under 50, $31,000 for those 50 and older, and $34,750 for those 60 to 63 [2] - Many individuals save approximately 9% of their income towards retirement, including both employee and company contributions [3] - Increasing retirement savings contributions can lower taxable income for 2025 [3] Affordable Care Act (ACA) & Health Savings Account (HSA) - Enhanced advanced premium tax credits may disappear, potentially increasing premiums for those above 150% of the federal poverty line [6] - When choosing an ACA plan, prioritize the network of doctors over the premium cost [7] - HSA limits are $4,300 for individuals and $8,550 for families [8] - HSAs are designed for long-term healthcare savings, similar to an IRA, and should be invested for growth, such as in an S&P 500 index fund [8][9]

E-commerce & Tariffs - The de minimis exemption, allowing tariff-free entry for packages under $800, is ending, impacting online shoppers and businesses [1] - Previously, the de minimis exemption was closed for China and Hong Kong, affecting retailers like Shein and Temu; now it's expanding to the rest of the world [1] - Smaller businesses are expected to be hit harder by the tariff changes as they may lack the margins to absorb the increased costs [1] - Tariffs could range from 10% to 50% depending on the country and product, potentially leading to price increases for consumers [1] - Global shippers are pausing shipments to the US due to the changes, which may cause delays and fewer choices for consumers [1] Mortgage & Refinancing - Mortgage originations increased to a nearly three-year high in the second quarter, driven by purchases and cash-out refinances [1] - Cash-out refinances accounted for 59% of all refinance transactions, with 70% of borrowers taking on higher rates to tap into their home equity [1] - Mortgage rates are averaging around 656%, the lowest since last October, presenting a potential opportunity for some homeowners [1] - Home equity hit a record of $178 trillion nationwide [1][4] - For conforming, jumbo, and FHA loans, a 12-month waiting period is required for cash-out refinancing; VA loans require 210 days [1][10] Retirement & Healthcare Costs - A 65-year-old retiring this year is estimated to spend approximately $172500 out-of-pocket on medical expenses throughout retirement, a 4% increase from last year [1][18] - Assisted living apartments average over $74000 per year in 2024, while costs for dementia patients can exceed $94000 annually [1][18] - 20% of Americans have not factored healthcare into their retirement plans [1][20] - Health Savings Accounts (HSAs) offer tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses [1][21] - Healthcare costs could represent approximately 15% of annual living expenses in retirement [1][28] Financial Security & Student Loans - Individuals should check their credit reports from all three major bureaus (Equifax, Experian, TransUnion) and place a credit freeze to protect against identity theft [1][31][32] - Parent PLUS loans are now capped at $20000 per child with a $65000 lifetime maximum; graduate PLUS loans are eliminated entirely [1][35] - A new lifetime borrowing cap of $257600 exists across all federal student loan programs [1][36] - A new balance-based repayment plan ties the repayment term to the amount owed, with a default option called the Repayment Assistance Plan (RAP) [1][36][37] - All old student loan repayment plans will phase out by July 2028 [1][37]

If you were invested in stocks and stock mutual funds, 2025 was a good year, albeit not a smooth one at times. But in the end, the results were higher balances for many retirees’ investments. The S&P 500 ended the year with a gain of around 18%. The Dow Jones Industrial Average jumped nearly 13%, and the Nasdaq ballooned close to 21%. But how much of that will you get to keep? The dividends and capital gains you get from these investments do come with a tax bill. Meanwhile, Social Security recipients ...