Preparing for Open Enrollment: A Wealth Management Perspective
Open enrollment is right around the corner, and whether you’re considering your health insurance options, evaluating retirement benefits, or looking at additional coverages, this period provides a valuable opportunity to align your benefit choices with your overall financial goals. At Pinnacle Advisors, we believe that each financial decision should contribute to your broader wealth management strategy, ensuring you’re prepared for today and tomorrow.
Here are some key areas to consider during open enrollment, along with how Pinnacle Advisors can help you make informed choices:
1. Reviewing Health Insurance Options: Beyond the Premiums
While it’s tempting to focus on premiums, there are other factors to consider when choosing a health insurance plan. Take a close look at deductible amounts, out-of-pocket limits, and coverage options. Your advisor can help you evaluate which plan best aligns with your healthcare needs and financial goals. If you’re planning a major medical expense, such as surgery or the addition of a new family member, choosing the right plan can make a significant difference in your financial outlook.
2. Maximizing Contributions to Health Savings Accounts (HSAs)
If you have a high-deductible health plan, contributing to an HSA can offer both immediate tax savings and long-term growth potential. HSAs allow you to contribute pre-tax dollars, which can then grow tax-free and be withdrawn tax-free for qualified medical expenses. At Pinnacle Advisors, we view HSAs as a powerful tool within a comprehensive wealth management strategy. We can help you determine how much to contribute this year to maximize these benefits.
3. Evaluating Retirement Plan Contributions and Matching Opportunities
Open enrollment is an ideal time to review your retirement savings strategy. Make sure you’re taking full advantage of any employer match programs available through 401(k) or 403(b) plans. Additionally, consider increasing your contributions as you approach the end of the year. Every dollar you contribute is a step closer to securing your financial future, and Pinnacle Advisors can provide insights on optimizing your retirement savings in alignment with your broader wealth management goals.
4. Exploring Supplemental Insurance Options
Many employers offer supplemental insurance policies, such as life insurance, disability insurance, and even long-term care insurance, during open enrollment. While these can add an extra layer of security, they may not always be the best fit for everyone. Your advisor can help you weigh the costs and benefits of these options and determine whether they complement your existing financial protections or if other alternatives might better suit your needs.
5. Understanding Flexible Spending Accounts (FSAs) and Year-End Use-It-or-Lose-It Rules
If you’re enrolled in an FSA, it’s essential to keep an eye on your balance as the year ends. Unlike HSAs, FSAs often have use-it-or-lose-it rules, meaning any unused funds could be forfeited. Consider using these funds for eligible expenses now to avoid losing them. During open enrollment, you can also adjust your FSA contributions for next year, with guidance from your advisor on how to best utilize this benefit in your overall financial plan.
How Pinnacle Advisors Can Help During Open Enrollment
Open enrollment decisions go beyond choosing benefits for the coming year—they play a crucial role in shaping your financial future. At Pinnacle Advisors, we’re committed to helping you make decisions that align with your long-term wealth management strategy. By integrating your benefit choices with your overall financial plan, we ensure that each decision moves you closer to achieving your unique financial goals.
Ready to make the most of open enrollment? Contact your Pinnacle Advisors team today, and let’s discuss how your benefits can support a brighter financial future.
