Health Savings Account-Health Savings Account Info

Debbie44 asked:


1. John owns five health food stores in the Columbia area, and they are realizing a good profit. John decides to invest a portion of the profits in an annuity offered by Penn Life Insurance. Penn Life will guarantee John 8% interest compounded quarterly for the first 5 years, as long as he deposits $10,000.00 every quarter of the term of the guaranteed rate. Assuming John fulfills the obligations of the investment, what will be the value of the investment at the end of the 5 year term?

2. Nancy plays drums in a dance band on weekends in addition to her full-time job at the local junior college. Nancy decided on her 35th birthday to establish her own retirement savings account by investing $2,400.00 of her weekend earnings every six months into an ordinary annuity paying 12% interest compounded semiannually. If Nancy makes these regular deposits until her 65th birthday, how much will this retirement account be worth?

3. Derek established his own retirement account ten years ago. He has discovered that he can obtain a better rate for the next 10 years at 12% interest compounded semiannually. Consequently, Derek established a new ordinary annuity account (beginning amount $0.00) and he will contribute $7,000.00 semiannually into the account for the next 10 years. What will be the value of this account at the end of the 10 year period

4. The amount of interest on an ordinary annuity of $11,600.00 for 5 years at 8% compounded semiannually is:

5. The table factor for an annuity due of 4% compounded semiannually for 4 years is

Sarah Riise

Dave C asked:


I’m disabled with 4 back surgeries. I just received disability and got a back due settlement of $10K. I have NO investments. I’m 46. My Wife works and can start putting into a matched 401K in October. I want to put the money in a growth investment and not touch it. Is a Vanguard or similar mid risk fund a good option? Right now it’s just sitting in a low interest savings account for safe keeping. This is a lot of money for me, because I lost my business due to my health and will likely never work again. I need to make a smart investment. I’m open to any and all ideas. Thanks, Dave
Using the “Dave Ramsey” money book as a guide, we will have a $2000 liquid rainy day fund. We need growth because before my back surgery my Wife and I owned our own business, a Photography Studio, for 15 years. We put all of our money into that, plus my surgeries and paying for our own health insurance didn’t allow for any investment / retirement fund. So with me at 46, and my Wife at 41, we have a lot of catching up to do. Our only child is out on her own, we have no debt ( we paid it all down with payments plans over 7 years ) but we also have no equity. When we lost the business, we lost out apartment and moved in with my Wife’s Mom. We use a budget and have lived an extremely frugal life style for the past 17 years. My mother-in-law has a huge home and lost her husband 3 years ago, so living with her is working out for both of us. When we buy we want a townhouse or something else that doesn’t require me to maintain it, my back won’t allow it. Just some additional information.

Rodney Sypolt

under_fire53 asked:


Finance guru Earl Matthews (founder of aid4families.com) has set his sights on revolutionizing the pension plans of several countries. Like many of his brethren, David Filo and Jerry Yang (founders of Yahoo), Larry Page and Sergey Brin ( founders of google), and Chris Dewolf & Tom Anderson ( founders of Myspace), a generation that grew up under the likes of Steve Jobs and Bill Gates, seem determined to change every aspect of society. It seems odd that while we are talking about the government being involved in universal health care and at the same time private savings accounts and privatizing pensions. The government may get your teeth fixed until you are 90 but the money for food to use those teeth on will be up to you to find. Do you support universal health care and do you support public pension schemes relying on “for profit” fund managers?
http://www.aid4families.com/Press%20Release.html

Moshe Able

Samuel asked:


I need to diversify my portfolio, and one thing I lack is any exposure to health/medical/biotech.

I need a stable company with a decent dividend. I was thinking PFE because it’s at a pretty low price with a 7% yield. I like CELG and DNA, but I really want stocks with dividends.

*Note: my IRA is in diversified index funds. This portfolio I am addressing is a different discretionary account I use for “fun”, where I seek stable values and decent yields to compete with savings accounts.

Granville Bertinetti

mrscmmckim asked:


I want to do something for her that will help secure her financial future. My health isn’t all that great so I might not be around to see her grow up so I want some way to let her know I care.
I love all the answers and am still undecided but now have about a grand to get started…..putting it to a vote should help me decide.

Thanks all!

Max Sola

Tara asked:


I’m just getting married and am in the process of setting up my health insurance, savings account, 401K, etc. I’m super awful with math and finances and I have the opportunity to buy stock in Starbucks at a discounted rate. Basically, the company sells their partners (employees) stock at the end of the quarter, but they sell it to you at the price it was at the beginning of the quarter. You are allowed to turn around and sell it for immediate profit, but I know partners that don’t make much money that have amassed a few grand in a couple of years. What is the outlook for Starbucks stock? Would you take this opportunity?

Phillip Kudo

Robert W asked:


I’ve already chosen a good insurance plan, but now I have to choose a good bank along with investment choices for the savings side of things. I’ve looked at Chase and Well’s Fargo. Both charge monthly maintence fees of up to $6 per month if you want to have mutual funds in it. These high fees ****. Has anyone looked into this and found better choices?

Orval Heiney

radioactive_babywipes asked:


Let’s say that I sign up for a HSA through my employer and later on I figure out that it is not a good deal for me. Can I cash out the plan just like a savings account? I was told two things…1. That the money stays in the account forever and you can’t use it on anything else aside from health/medical related expenses. 2. That you could cash the HSA out similarly to a 401k or IRA but take the penalty and also pay the taxes on it.

I don’t mind the 2nd option, but the first is the problem. I figured the HSA would be very similar to a regular savings account except you can only use it for medical expenses, but I really need your help in figuring out HSA’s and the do’s and don’ts.

Thanx

Torri Cronoble

Bern asked:


My employer opened a health savings account in 2007. I used those funds for medical bills in 2007. Do I have to report those withdrawals and if so, are they taxable?

Shanell Laface