James C. Molet's Blog, page 3

Cost of Care – How to Address Major Medical Expense

Let’s face facts – most medical insurance plans, including Medicare, fail to cover all expenses incurred for major medical procedures. Copays for such procedures can amount to thousands or tens of thousands of dollars or more! This article will give you five reasonable solutions to deal with significant medical expenses from the office of a noted bankruptcy lawyer in Philadelphia.

1. Work Out a Payment Plan

If you’ve just had a major medical procedure and the bills are rolling in, do not panic. First, gather all bills and reach out to your insurance carrier or Medicare to make sure they have paid all that should be paid. Be advised that it may take weeks or even months for your insurance carrier or Medicare to pay what they are going to pay. 

Once you are sure of the amount you owe, figure out how much a month you can pay. Contact the billing offices of the medical providers who are sending you bills and offer to pay this amount each month. They may agree, and if they do, you are getting what amounts to an interest-free loan.

2. Take a Disbursement from Your Retirement Fund

If you are older than 59 ½, you should consider taking a disbursement from your retirement fund to pay your medical bills. Whether you have a Roth or a 401(k) or a 403(b) will determine whether you must pay income tax on that disbursement. 

When you funded your Roth IRA, you did so with after-tax dollars, so you will not owe income tax on your disbursement. When you funded your 401(k) or 403(b), you did so with pre-tax dollars, so when you take the disbursement out, you will owe income tax on it. Be sure to figure in the amount of income tax you will have to pay when you determine how much you should withdraw.

3. Take a Loan from Your Retirement Fund

If you are too young to take a disbursement from your retirement fund, consider taking out a loan from your retirement fund to pay your medical expenses. While you have to pay it back or incur penalties in the form of income tax, you are paying yourself, which is more advantageous than charging the medical bills to a credit card and paying the credit card company at their exorbitant rates of interest.

4. Pay with a HELOC or Second Mortgage

If you own your home, you may have significant equity in it by now. Consider taking out a home equity loan (HELOC) or a second mortgage, or a first mortgage if you’ve paid the home off. Interest rates are at historic lows, and the interest you pay is tax-deductible. 

5. File Bankruptcy

If your medical expenses are so significant that you cannot hope to ever pay them, consider filing Chapter 7 or Chapter 13 bankruptcy. Major medical bills, along with job loss and divorce, is the reason most people file bankruptcy.

If you income-qualify, Chapter 7 will “discharge” or wipe out your unsecured debt in 4-6 months. Unsecured debt includes credit cards and medical expenses. While you will be free of unsecured debt at the end of the process, your credit score will take a hit, and the fact that you filed bankruptcy will stay on your credit report for up to ten years.

If you have a steady income, you can file Chapter 13 and propose a three or five-year repayment plan, either including or not including your medical bills. People commonly file Chapter 13 to catch up on the mortgage, support, or car payments. At the end of the plan, you are discharged of your remaining unsecured debt – including your unpaid medical bills.

If you are considering filing bankruptcy to get rid of medical debt, consult with an experienced bankruptcy attorney in your area to ensure that you will meet your goals and that there are no unintended consequences.

About the Author

Veronica Baxter is a writer, blogger, and legal assistant operating out of the greater Philadelphia area.

The post Cost of Care – How to Address Major Medical Expense appeared first on Retirement Savvy.

Can I Use My Annuity as Collateral for a Loan?

Annuities are good life investments. It gives financial security in your later years. But, paying an annuity requires commitment and financial planning. Unlike other investments, annuities don’t immediately vest. You will have to wait for the annuity contract date before you can enjoy its financial rewards. And sometimes this can take a long time. 

Are you experiencing financial challenges now? If you do, using your annuity as collateral for loans might have crossed your mind. So you ask, “can I use my annuity as collateral for a loan?” The answer to that question is a straightforward yes. However, there are crucial points you must know before proceeding with any decisions or  from actions.

In this article, you’ll learn more about the different types of annuities and how you can utilize them for your financial needs. This article will also give additional information about annuities and how it works.

Annuity as Collateral 

Yes, it is possible to use your annuity as collateral for third-party loans. This scenario happens when you have a non-qualified annuity. Companies that offer non-qualified annuity programs  often do not include a loan provision to the annuity contract. Meaning, you can’t directly borrow money against your annuity fund. Instead, you can use your annuity as collateral to apply for loans with banks or other financial institutions.

If you have a qualified annuity plan, you can borrow against your fund. Most qualified annuities have loan provisions. But, you have to speak with your insurance provider about this first. Otherwise, only non-qualified annuities can be used as collateral. However, before you apply, it’s best to contact the financial institution and ask if they accept annuities as collateral. If they accept, you can then apply for a loan.

However, here’s a fair warning. Even if you can use annuities as collateral, it will be burdensome in terms of taxation. The IRS will expect you to pay additional taxes. If you read further, we’ll discuss the tax effect of this in detail.

Loans Against the Annuity

Unlike a non-qualified annuity, you can have an annuity loan if you’re on a qualified annuity program. A qualified annuity is a retirement plan that complies with the Employee Retirement Income Security Act (ERISA). So you might ask, “can I buy a house with my annuity money?” 

Yes, you can!

With this type of annuity, you can get a loan against the annuity fund as long as it complies with the following requirements:

The proceeds are paid back within five years.The loan is 50 percent of the vested balance or $50,000, whichever is lower.The loan proceeds are used for a first-time home purchase.Pros and Cons of Using Annuities for Loans

Now that you know that it’s possible to use an annuity to get loans, you should be aware of  some pros and cons about it. Annuities per se are not intended to be used for loans, and using them for such purposes may yield good benefits BUT may also come at a high cost.

ProsAnnuities are both long-term investments and insurance products. With that, non-qualified annuities can be attractive loan collateral for banks. In the case of qualified annuities, its loan provision enables you to borrow your investment temporarily. The bottom line is that annuities can give you more financing options aside from traditional ones.ConsNot all banks or financial institutions accept annuities as collateral since it’s not a conventional or typical collateral unlike land, house, or vehicles.Taxes can be too costly on your part. The IRS will charge you taxes that could be avoided if you didn’t use the annuity as collateral.Tax Effect from using Annuities as Collateral  

Assuming Carol, 40 years old, used her non-qualified annuity as collateral for a $50,000 loan. For tax purposes, the whole loan amount is also the taxable amount. So if Carol belongs to the 24 percent tax bracket, she’ll pay taxes of $12,000. But, since Carol is below 59 ½ years old, she will also pay a 10 percent penalty. That’s equal to $5,000.

Overall, the net proceeds of the loan is only $33,000 after deducting taxes of $12,000 and penalty of $5,000 to the loan amount of $50,000. In percentage form, the cost of financing is 34 percent. But we’re not yet done. Even if Carol received $33,000 only, she will still pay the creditor $50,000 plus interest.

Implications of Using Annuities as Collateral

An annuity used as collateral for loans has other implications that may be  disadvantageous to you. This section will discuss the implications of using qualified and non-qualified annuities in loans.

Implications in Qualified Annuities as Collateral

As discussed earlier, you can use the balance of your qualified annuity to get a loan from the insurance provider. However, you pay qualified annuities premiums with “pre-tax dollars” since this type of loan has tax preference. But upon annuitization, every payment will be counted as taxable income.

But since you’re obtaining a loan out of your annuity fund, the Internal Revenue Service (IRS) will tax you twice. The first taxable event will be when you take the loan, and the second one will be when you receive payments from the annuity fund. 

Illustration: John has a qualified annuity fund with a fund balance of $100,000. He intends to obtain a loan of $20,000 out of the annuity fund. What are the implications of this loan?

Implications: First, the IRS will consider the loan as a withdrawal, classify it as part of taxable income, and subject it to ordinary income tax rates. Of course, John will return the $20,000 to the fund. But, the $20,000 will be taxed again when he starts receiving annuity payouts. So, the IRS is gaining extra tax dollars from John.

Implications in Non-qualified Annuities as Collateral

Based on IRS regulations, using non-qualified annuities as collateral is considered a non-periodic distribution. It means that a withdrawal occurred before its destined date. If you use non-qualified annuities as loan collaterals, here are the significant implications:

The amount will be subjected to ordinary income tax rates.The tax base will include accumulated gains.A penalty tax of 10 percent will be charged if the annuity holder is below 59 1/2 years old.What Are the Types of Annuities?

In the discussions above, you learned about qualified and non-qualified annuities. This classification refers to annuities as to compliance with ERISA. However, there are also other classifications of annuities, which will be discussed below. To make it easier for you, these types of annuities are grouped according to their nature.

Annuity as to Interest DeterminationAnnuity as to Payout OptionAnnuity as to Payment PeriodAnnuity as to Interest Determination

Annuities can be classified according to their interest rate. The kind of interest in the annuity also determines the level of risk associated with the annuity contract. So, annuities can be:

1. Fixed

A fixed annuity guarantees a steady stream of income for the annuity holder. This type of annuity has the least risk because interest rates remain fixed regardless of the market’s movement. Of all types of annuities, fixed annuities are the most straightforward because they do not rely on any portfolio or investment performance.

2. Variable

A variable annuity is the exact opposite of a fixed annuity. In terms of risk, this type of annuity is the riskiest since it is affected by the market’s movements. Moreover, variable annuities rely on the performance of portfolios or investments. However, if the market is looking up, variable annuities realize more gains than fixed annuities. But if the market goes down, variable annuities also suffer a loss.

3. Indexed

An indexed annuity is the best of both worlds. It has characteristics of both fixed and variable annuities. Being a mix of two, the overall risk associated with indexed annuities are somewhat in between. This type of annuity earns more income than a fixed annuity and carries less risk than variable annuities.

Annuity as to Payout Option

Annuities as to payout option refer to annuities’ classification based on when the annuity holder will receive payments. Below are the two payout options standard in annuity contracts:

1. Immediate Annuity

Also known as income annuity, this type of annuity pays the holder immediately after one year of purchasing it. Immediate annuities are for income purposes only. Insurance companies also call this “single-payment insurance annuities” or SPIA. In an SPIA contract, the annuity holder pays a lump-sum, upfront premium. In return, the insurance company will release a steady stream of income a year after on a monthly, quarterly, semiannually, or annual basis.

2. Deferred Annuity

Unlike an immediate annuity, a deferred annuity pays the holder at the annuity date (e.g., at retirement age, 70 years old, etc.). Deferred annuities have two phases: the accumulation phase and the payout phase. Annuity holders will pay annuity premiums during the accumulation phase. The premium payments will compound based on the interest rate (e.g., fixed, variable, indexed). At the payout phase, annuity holders will receive a certain amount until the end of the payment period.

Annuity as to Payment Period

In the previous section, you learned how annuities accumulate. Now, this section will talk about the payout phase of annuities. Once the annuity vests to you, the insurance provider will incrementally release a stream of income payments. The duration that the insurance provider is required to give income payments is called the payment period. Below are the types of annuities as to the payment period:

1. Lifetime Annuity

A lifetime annuity secures a steady stream of payments for the rest of your life. As long as you’re alive, the insurance provider will continue to pay you. Other lifetime annuities even extend to the beneficiaries (e.g., spouse, minor children, etc.). If a lifetime annuity extends to a beneficiary, it ceases when the beneficiary loses the qualification of being a beneficiary, i.e., death or reaching the age of majority.

2. Fixed-period Annuity

As the term suggests, the number of payment periods is fixed in the annuity contract. Fixed terms can be one to 30 years, depending on the insurance provider. A fixed-period annuity is an ideal source of cash flow during retirement since there’s a possibility that you may outlive the annuity. You can only use this as a supplement to your main retirement fund.

How Do Annuities Work?

Annuities can be complicated, especially how it’s being computed in finance. This section will try to discuss this concept in the simplest way possible. In general, you purchase annuities because you want to receive money in the future. But how do you accumulate that amount? You pay premiums.

Premiums are periodic payments you give to insurance providers. Just think of annuities and premiums as “paying it forward” or “pay now, enjoy later.” But, your premium won’t just sit idly with the insurance provider until you retire. Instead, insurance providers will invest your money in the market to generate profit. Since you’ll be needing the annuity in 20 or 30 years, your premiums will be temporarily used as capital for investments.

And if you reached your retirement age or the annuity date, the insurance company will start paying your annuity payouts. But where will they get the money for that? They’ll get it from the investment profits and recent premium payments of new annuity holders. And as the cycle continues, insurance companies can fund all retirement plans while receiving more premiums and generating investment profits.

Should You Use Annuities as Collateral?

If you want to save money, it’s best not to use annuities as collateral. Aside from being costly and disadvantageous like additional taxes and penalties, it can do more harm than good. As stated in the previous sections, annuities are intended to be investment devices. It’s best if they’re used that way.

There are other ways to obtain additional financing. Using annuities as collaterals are just not the most beneficial way. So before you make a decision, consider first the costs and compare it with the benefits.

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What Types of Retirement Accounts Are the Best for You?

There are a lot of recommendations out there about where to put your money, both for the short term and the long term If you’ve got questions or concerns about the best retirement savings vehicle, keep things simple. For those with a 401(k) at work, start there. Put enough in the fund to get the full match from your employer, then keep looking for other retirement saving options.

Which Accounts Are the Best For You Right Now?

While you’re earning, it’s a good idea to have a retirement account that reduces your current taxable income. This generally means a 401(k) through your employer or a traditional IRA with a broker. A tax-deferred retirement account means

the dollars that go into your retirement fund are not counted in your incomethe monies that build up in your account are not taxed as they growyou don’t have to pay any taxes on these dollars until you take them out, which you can do on a monthly basis as a supplement to your social security or pension

Because most people make less in retirement than they do during their working days, the ability to save in a pre-tax account will save you in taxes paid over the course of your life.

If you’ve already got a 401(k) through your employer but are also working on a small business or other income source, a Roth IRA may be a good choice. Roth IRAs are funded with post-tax dollars. These can grow untaxed, just like a traditional IRA, and when you take the money out, it stays untaxed!

Both of these IRAs will have a contribution limit over the course of a year, but it goes up as you get closer to retirement. Talk to your broker about your next age bracket bump and try to max your contributions as possible. You can have multiple IRAs.

Why Not Just Use a Savings Account?

The abysmal returns of most savings accounts mean that your retirement money won’t even beat inflation as it grow. You will have to pay taxes on that money in the year you deposit it, rather than after you leave the working world and your income is presumably lower.

It’s also important to note that retirement funds come with restrictions. Any money that you put into a retirement vehicle to be managed at a better rate of return than a savings account will cost you if you try to take out the money before you turn 59 and a half. Not only will you have to pay income taxes on it, but there’s also a penalty of 10% unless it’s a hardship withdrawal.

It’s important to have some money in savings for emergencies. However, your retirement funds will grow faster over time in an account that gets a better rate of return than a standard savings account. Finally, knowing that you may have to pay a penalty means that you will probably leave the money in the account unless you absolutely have to have it due to hardship.

Why Not Use Social Security?

Social security can supplement your retirement income, but relying on it can lead to a very limited lifestyle once Medicare is taken out of your check. Additionally, as of September 2020, experts suggest that retirees relying on social security may face cuts as early as 2031.

Of course, the political fallout from this event would be catastrophic. Likely as not, the fund will be rescued. However, if you have a retirement account in place, a restriction or delay of your social security wouldn’t be catastrophic.

Why Do You Need a Retirement Account?

You may do perfectly well with just a 401(k) through your employer and have no need to set up any of the types of IRAs available in the markets today. However, if you have a stay at home spouse, there’s a nifty trick you can use to put money in their retirement, even if they technically have no income.

The spousal IRA contribution is an ideal way to put money away today for bigger returns tomorrow. If your spouse goes back to work, you can create a standard IRA and make contributions to that. Many stay at home spouses fall behind in their retirement investments in the years they’re home and never catch up. With a spousal IRA, a single-income family can reduce that loss.

How Accessible Is Your Money?

As noted above, it’s important that you leave your money in the retirement account so you have it available for withdrawals in retirement. If you need to make a hardship withdrawal, make sure you qualify before you take the money out.

You can also borrow from some retirement accounts. For example, there are 401(k) accounts that allow you to

borrow from retirement to make a down payment on a housepay the principal and interest back to yourselfget a lower interest rate on the loan

The key with borrowing from your retirement is to start early. The more you have in there, the more you can borrow. The sooner you start, the faster it will grow.

What If You’re Self-Employed?

Self-employed people need a retirement account even more than folks who work for someone else. Often, the self-employed are putting nearly all of their time and a lot of their income into building up the business. The power of investing in retirement comes from compound interest, and that takes time to build up.

Simply put, compound interest allows you to earn both on your initial investment and on the interest you’ve already earned. A simple $100 investment turns into $110 if you earn 10%, so you get $10 free. The next round of interest will earn you $11, because you get 10% on $110, which means you have $21 dollars that cost you nothing, plus you get your $100 back. The greatest retirement regrets are often tied to not saving enough and to going into retirement with too much debt. Start saving early. As you get closer to retirement, either double up on your mortgage payments or consider downsizing to keep your retirement money as free and clear as possible.

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5 Reasons Why an ETF Is Superior to Mutual Funds

When you are starting your investment journey, what should you buy? Before you park a few hundred dollars in a financial profit, it is first important to equip yourself with some basics. Knowledge is the best way to not only grow your money, but to also shield your dollars and cents from some of the pitfalls of equities, bonds, and the broader financial markets.

You may have come across something called an exchange-traded fund (ETF). What is it, and how do you buy one?

An ETF is a type of investment that pools stocks, bonds, and cash or tracks an underlying index. ETFs trade similarly to stock in the sense that it moves up and down throughout the trading session, and you can purchase shares in real-time.

How does this differ from a mutual fund? A mutual fund also has a collection of stocks and bonds, but you acquire units, and your transaction is settled at the end of the trading session.

Right now, you might be unsure which is more suitable for your investment strategies. Let’s take a look at ways ETFs are superior to mutual funds.

1. The Simplicity of ETF Investing 

Investing is complicated enough. You need to check key performance indicators (KPI). You need to come up with a price point to buy and sell. You need to read through the financials. Indeed, there is a lot to do before you hit that buy button. 

Wouldn’t it be great if there was an investment strategy that was a little less complicated? 

The appeal of ETFs is that you can buy shares at one price with one trade. With a click of a button, you can open, add to, or close your position. 

Mutual funds are a bit harder to trade, requiring you to open an account and create a mutual fund portfolio (an often-daunting process for beginner investors). Not to mention the length of time it takes to sell units or liquidate your holdings. 

2. Lower-Cost Option 

One of the main differences between ETFs and mutual funds is that the former is passively managed, and the latter is actively managed. 

As a result, ETFs come with lower costs, while mutual funds are subject to higher management fees. It makes sense, considering that mutual fund managers are paid for their time and expertise to get the best returns for their clients. 

But ETFs essentially track the return of a benchmark without selecting specific assets. And, if you are homing in on a specific niche market – such as agriculture or Emerging Markets – and you don’t have the time to research individual companies, ETFs will create your best-fit portfolio for you, without a hefty management fee! 

3. Tax Advantages 

In general, ETF can be a far more tax-efficient investment product in comparison to mutual funds. Both ETFs  and mutual funds are subject to capital gains tax, as well as taxation of any dividend income, however since most ETFs are passively managed, they tend to incur fewer market transactions. Mutual funds managers in contrast, will engage in more buying and selling activity, generating higher capital gains, and a higher annual tax bill. 

4. Market Flexibility 

How flexible are ETFs? 

The United States financial market is home to more than 2,000 ETFs – and growing. The industry is incredibly diverse, and here are just some of the various types of investment products you can purchase: 

Procure Space (UFO): An ETF that tracks a portfolio of companies in space-related businesses. SoFi Weekly Income (TGIF): An ETF that offers a weekly income by investing in U.S. dollar-denominated investment-grade and non-investment-grade instruments. Defiance Next Gen SPAC Derived (SPAK): A fund that invests in the performance of Special Purpose Acquisitions Corporations (SPACs). The Obesity ETF (SLIM): An exchange-traded fund that holds assets in health care companies specializing in fighting obesity, diabetes, and other related medical care. 

With hundreds of ETFs to choose from, you can count on finding a “best fit” ETF that aligns with your investment goals and personal interests. 

5. Quick Liquidation 

The problem with mutual funds and ETFs is that once you sell your units, it could take up to ten business days to see the money in your bank account. Thankfully for ETFs, innovators like Finch are making it easier to cash out of your investments, instantly.  This means you no longer need to have your money locked away for it to be working for you.

The longer you invest in ETFs, the more you will ask yourself, “why didn’t I invest in ETFs sooner?” It is understandable, considering the long list of benefits available to both beginner and seasoned investors: monthly dividends, a lower expense ratio, greater liquidity, the flexibility to buy and sell at any time…this is investing made simple. 

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3 Ways to Optimize Your Wellbeing After You’ve Retired

If you’ve spent years planning your retirement, you’ll want to ensure you’re able to make the most of it. Whether you’re eager to spend more time with family, travel the world or throw yourself into your hobbies, your retirement should be a time for you to bring your dreams to life. 

Sadly, many people begin to experience health problems as they get older, which can hamper their retirement. If you want to reduce the risk of ill health, take a look at these three ways to optimize your wellbeing after you’ve retired:

1. Stay Mentally Active

Many people assume that forgetfulness or absentmindedness is a natural part of getting older, but this isn’t necessarily the case. Although some age-related illnesses do affect your cognition, aging itself doesn’t automatically impact your cognitive function. If you want to preserve your memory and stay sharp, you can do so by exercising your brain regularly. 

Playing word games, completing jigsaw puzzles and testing yourself with math puzzles like sudoku are great ways to keep your mind stimulated. From completing the puzzles in your daily newspaper to playing online games, there are endless ways to ensure you stay mentally alert throughout your retirement. 

2. Take Part in Social Activities

Your day-to-day life changes dramatically after retirement, particularly if you’re used to working in a lively or fast-paced environment. For many people, missing out on social activities is the hardest part of adjusting to a new way of life. Fortunately, there are numerous ways you can maintain your social life when you retire. 

As well as socializing with friends and family, look for opportunities to forge new connections. If you want to access a wide range of social activities, you may even consider moving into a New Perspective retirement community. With assistance when you need it, as well as social activities and events, embracing a new community can be a fantastic way to make the most of your retirement. 

3. Start a Fitness Regime

If you haven’t had time to focus on fitness because your career kept you busy, now is the perfect time to start! Improving your strength can help you to retain your independence as you get older, while enhancing your balance also reduces the risk of falls. Furthermore, regular exercise can reduce your blood pressure and minimize the risk of developing other illnesses, such as heart disease or type 2 diabetes. 

Talk to your doctor about appropriate fitness routines and then create your own bespoke exercise plan. Whether you work out alone, join a gym or attend classes, you can get fitter and healthier in a variety of different ways. 

Planning for Your Retirement

If you really want to enjoy your retirement, it’s good to plan ahead. Setting yourself goals will give you a renewed sense of purpose, so think about what you’d like to achieve. By planning the practical, financial and social side now, you can ensure that you’re ready to enjoy your retirement the moment it arrives.  

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5 Benefits of Accounting Software for Small Business

As a business owner, your initial duty should be to keep your business lucrative. With this goal in your mind, if you find an interest in a better client base, your products and services need to be more professional. At the same time, your business activities will increase. And when challenges come, having a trusted accounting software can help to keep yourself from lots of troubles. 

But, every business owner wants to save money at the beginning of the process. That’s why people don’t invest in any sort of application. In that case, you can use free accounting software that will help you take care of your business and payroll strategy. Have a look at these 5 benefits of accounting software that are important to consider for small businesses. 

Online Accounting Software is User-Friendly

While starting a business, you will encounter various ups and downs. Managing all payrolls, employee names, information, salary, etc., is a hard thing to do alone. That’s why accounting software is a great way to start. Here, you can put every single piece of information of every single employee, and it will never forget anything. A useful accounting application has to be user-friendly and easy to navigate.  

They Provide Ultimate Data Security

Security is a primary thing to worry about, and when you are putting sensitive information in a third-party application, you will never know how vulnerable you are. That’s why having a premium subscription to trusted accounting software is important. Web-based accounting software for SMEs is accessible anywhere in the world. They store your data in a protecting vault and lock them with a Security Matrix. That means your data is always safe in their hands. These applications mainly come with different features and let you add multiple users and roles. Therefore, anyone that you allow can log in and access those data with the username and password. This lets you collaborate with your team with ease.

Expert Invoicing

You will want to send the invoice to your customers quickly so that they can pay you quickly. With the best accounting software for small businesses, you can print your business invoice with ease, and you can also send them instantly to their email address. You can create your customized invoice with the name of your company, trademark, and logo. Doing so will increase the brand value of your business. You can also send your invoice to the clients through your smartphone applications. 

Manage Your Cash Flow on the Go

Having a trusted accounting software subscription lets you go tensionless as you know that you can easily manage the cash flow. You need to keep track of your business income and investment at the same time. You will want to know how much money you are making and investing in your business so that you can aim for a higher position. You cannot keep every transaction in your head. In that case, accounting software can help you. Moreover, you can scrutinize every piece of information from your smartphone, laptop, tablet, or desktop app. You won’t have to carry any special documents for that.

Accurate Professional Reports

With the help of accounting software, you can prepare financial statements and file the annual returns with ease. If you can upgrade to the best accounting software for your business, you can cut down your spreadsheets work and pencil work and relax. Simply add the important data to your software, and it will be accessible from anywhere in the world as long as you don’t remove them. You don’t have to rely on paperwork anymore.

Final Thoughts

Professional accounting software can help you manage all the payrolls and cash flow of your business efficiently. I am sure, by now You may be interested in purchasing an accounting software subscription to run a smooth and hassle-free business. All you need to do is purchase a monthly subscription or an annual one. Most of the premium accounting applications don’t cost much. They are usually available between 9$-12$/month. If you can upgrade your desktop accounting application, you can save money from buying a license. Also, their regular updates and upgrades are in the manufacturer’s hand so, there is nothing for you to worry about.

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5 Things Every Antique Car Owner Should Know

Owning an antique car is a dream come true. There’s something special about owning a piece of automotive history, but it also comes with some responsibility. Find out what you need to know to meet the demands of ownership while also enjoying your vehicle. Don’t forget to purchase an antique auto insurance policy for your car as well to have the best insurance coverage. 

1. Protect It From the Weather

You don’t want your antique car to succumb to the elements, so store it when you aren’t showing it off or using it. A brick garage is the best place to store the vehicle, but if that’s not possible, you can put it in a precast concrete garage. You can store it outdoors as a last resort, but make sure your antique car is covered. Use a purpose-built car cover for maximum protection when keeping it outdoors. Otherwise, the elements could get under the covering and harm the vehicle. 

2. Run It at Least Once a Month

You might only want to take your classic car out for special occasions, but that’s a mistake. Fire up your antique car at least once a month to prevent the rubber components and seals from drying up, the metal components from eroding, and the battery from draining. This simple trick can keep your antique car in good working condition for years to come. Plus, you’ll enjoy driving your car around town. It really is a treat. 

3. Know the Limits

If you register your vehicle as an antique car, you might be subjected to certain limits and restrictions. Some states have strict regulations regarding how often and where you can drive antique cars. You might be limited to parades, club activities, trips to the mechanic, and some pleasure driving. Other states allow owners to drive antique vehicles as often as they want. Check with your DMV to learn the restrictions before registering your vehicle as an antique. If the limits are too much to bear, you have the option of registering your vehicle as a standard car. Then you can drive it as often as you want. 

4. Register Your Vehicle As an Antique to Avoid Emissions and Safety Requirements 

While you might not like your state’s restrictions for registered antique cars, registration does have its benefits. Most states wave safety and emissions requirements for vehicles registered as antiques or classics. That’s great news since you’d have to add aftermarket features to meet the requirements. Your vehicle wouldn’t be the same with those new features, and it could lose value. Plus, you’d have to sink a lot of money into the aftermarket features, and then you’d have to worry about maintaining those new parts. It’s a massive headache that most antique car owners prefer to avoid. 

5. Antique Car Insurance Often Has Special Requirements

When you purchase antique car insurance, the company might require that you meet special requirements. Limited use is a common requirement. This means that you can only drive the vehicle on a limited basis. You will likely receive a mileage limit. Also, there might be a condition requirement that states the vehicle must be restored and maintained. Finally, the company might have storage requirements in place. If you don’t have a secured garage, you might have trouble finding insurance. 

Embrace Antique Car Ownership

Now you are ready to embrace owning an antique car. You’ll love practically every minute of ownership, whether you are hanging out at car shows or driving around your neighborhood. Even walking over to the garage and looking at your antique car is fun. While there is some responsibility involved, it’s well worth it in the long run when you consider the amount of joy you’ll have. 

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3 Ways to Save Money After You’ve Retired

You’ve finally decided to retire. After a lifetime of work, there is no sweeter reward than knowing that you can finally say goodbye to early mornings and long days at the office and start living a more laid-back lifestyle.

While retirement looks different for everyone, one thing is almost always the same. Retirement comes with a sense of uneasiness about money. Even if you are completely prepared to start living on a fixed income, many people still question how to save money after you’ve retired.

Even if money is tighter than it was when you were working, saving money and living well in retirement is not only achievable, it is easy if you put a few core practices in place prior to retiring. Having a plan is the best way to start saving. To start that plan off on the right foot, it is in your best interest to devise the plan when you start thinking about your retirement, so you have time to put it in place and set yourself up for success. 

Here are three ways to save money after you’ve retired:

1. Review Your Insurance Policy for Changes

Something not often thought about when retiring is to review your insurance policy for changes. Most people don’t realize that home and auto insurance needs change as you get older. There are a few factors that play into this.

Did you pay off your mortgage? When you take home-owners insurance, you must take enough to cover the cost of your home if anything were to happen to it. For most people, that was more than 30 years ago, so the appraisal to your home may have changed. It is also a good idea to look into savings that you may not have thought of, like adding a security system, that could reduce your premium.

This is a great time to also ask your agent about possible discounts that are available to seniors. Some companies offer discounts for going so many years without a claim as well. Knowing your options can help you save money, and your insurance agent should be able to walk you through any discounts or options that are available to you. 

The same goes for cars. If your car is older and paid off, it may not benefit you to carry full coverage anymore, as your premium costs outweigh the cost of your car in an accident. 

2. You Need a Budget

If you do nothing else financially when heading into retirement, you need to budget. Budget, budget, budget. If you weren’t a budgeter before considering retiring, it is a good idea to start and stick to your budget before actually taking the leap into retirement. This is helpful because you are learning to live on less, which also means you are padding your savings, and you are getting used to seeing where your money goes every month.

This is especially important if you are an impulse shopper, or you like to do things like dine out frequently. Both of these things may have been no big deal when you were bringing home your salary, but when you head into the land of the fixed income, you may find you need to reel it in a little more. Or maybe you don’t, and you can continue the exact same lifestyle. 

Setting aside a clear amount of money for each area of your lifestyle can help you see what is really important and where you can cut things out. It can also open your eyes to payments you may not even have realized you were incurring, like subscriptions to services you don’t need. It’s a great way to give yourself a financial checkup and let you make the adjustments necessary before retirement.

3. Pay Off Debt

One thing that can significantly help you save money in retirement is to pay off as much debt as you can before you head into retirement. This will free up more money in your budget monthly and it will also give you peace of mind that you don’t have to worry about payments.

Paying off your mortgage, car, or any large payment every month means you can use your monthly income more freely to do the things you really want to do. Maybe for you that is traveling, spoiling your family, shopping, or just enjoying a life free of payments. In any case, taking away that stressor will help you live a more peaceful life. 

Retirement is an exciting time, but it can also be met with some nervousness. Anytime you start something new there is always the fear of the unknown. With some preparation beforehand, you can head into retirement ready to enjoy the rest of your life and not having to worry about your financial future.

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Best Savings Account In Canada

Whether you’re starting to save or have a lump sum you want to build on, an account with a high-interest rate is a must. 

Although there are other things you should look out for – ease of use, mobile app, customer service – a high-interest rate can be the difference between meeting your goal or falling short. 

If you’re looking for an account that can help you grow your savings, or even start up a nest egg, then keep reading to find out more about the best savings accounts in Canada. 
Alternatively, for our American readers, you can find the best checking accounts over at Crediful.

EQ Savings Plus



PROSCONS1. Unlimited transactions1. Maximum balance of $200,0002. Very generous 2.0% interest rate3. No monthly account fees4. Can deposit cheques via your mobile phone

EQ is one of the most popular banks in Canada, and with their Savings Plus account, it’s clear why. 

Their banking systems are entirely online, meaning there are no branches. This could be a deal-breaker for more old-school bankers, but the lack of branches means that EQ can offer a very competitive interest rate. 

The interest rate of 2.0% is the highest non-promotional interest rate in the country but unfortunately is capped at $200,000. 

The interest rate is calculated on a daily basis, and you’ll receive it directly into your account every month. There’s nothing better than watching your money grow, and EQ will speed the process along for you. 

It’s an overall convenient account for the average on-the-go Canadian. There are no fees, unlimited transactions, free bill payments, free e-transfers, and you can even deposit cheques using your mobile phone.

Motive Financial Savvy Savings 



PROSCONS1. Interest rates of up to 2.05%1. Can only withdraw 2x for free2. No monthly fees3. Can open the account with a zero balance

To get started with Motive Financial, you can easily register for an account online – whether it be a single account or a joint account. 

With a Savvy Savings account, you get 2x withdrawals for free – which is a good way of preventing you from digging into your savings.

Any withdrawals after the first two will cost you $5 each, but that’s understandable considering there are no monthly fees and no minimum balance requirements.

The Savvy Savings Account currently offers you a balance of 2.05% on account balances up to $1 million, which is perfect for the average Canadian. With any balance over $1 million, you’ll receive a decreased interest rate of 0.25%, so it may be time to look for other accounts. 

Their more basic account gives you a slightly lower interest rate of 1.25% on any balance up to $5 million.

Wealth One Bank of Canada



PROSCONS1. An interest rate of 1.75%1. Relatively new account so not many customer reviews2. Access to their automatic savings program (ASP) 3. No monthly fees or starting balance requirements 

More and more banks are becoming ‘online only’, and branch banking is becoming a thing of the past – but not with Wealth One Bank of Canada. 

With this account, you can do your banking online, on the mobile app, and in branch – which many customers actually prefer. 

This bank is ideal for any Canadian, but it aspires to become the preferred bank for the Chinese community in Canada. 

Like many of its competitors, this account boasts no hidden fees and charges, which is always good to hear. There are also no monthly fees, and no minimum balance requirements – which makes Wealth One Bank of Canada a great place to start and build your nest egg. 

Tangerine Savings Account 



PROSCONS1. Promo rate of 2.5% for your first 5 months!1. Interest rate reduces to 0.25% after 5 months2. $50 cash back bonus on sign up (using promo link)3. Zero account fees and zero minimum balance

Tangerine has certainly provided many reasons to become a member of their bank with the Tangerine Savings Account – the main one being the current promo offer. 

When you register for a Tangerine Savings Account, you not only get a very tempting $50 cash back bonus, but you also get an unbeatable 2.5% interest rate for 5 months when you use a promo link.

Once the five months is over, the interest rate will drop to 0.25%, which is a pretty standard interest rate for a savings account. 

If you need that extra helping hand, then Tangerine has you covered with the included automatic savings plan, which can be set up to regularly withdraw from other accounts to maximize savings. 

As expected with a quality savings account, the Tangerine Savings Account has no monthly fees and doesn’t require a starting balance, which makes it a great place to start your savings journey.

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How Much Does Medicaid Pay For Transportation?

The cost of calling an ambulance can shock you. Even in emergency situations, your ride to the hospital or to receive medical care is often not free. Without insurance coverage, your bill could go up into the thousands! 

Thankfully, Medicaid always fully covers the cost of emergency medical transportation for eligible Medicaid beneficiaries. An emergency medical situation means that your medical needs are immediate and urgent that may put your life at risk, if not given immediate medical attention, such as having a heart attack or you got involved in a serious car accident. In these kinds of situations, you no longer need pre-approval to get medical transportation.

On the other hand, even if it is not an emergency, Medicaid may still fully cover your transportation in some situations. This coverage is called “non-emergency medical transportation (NEMT)”. We’ll talk about when you can qualify for NEMT later in the article. 

When Will Medicaid Cover Non-Emergency Medical Transportation?

Individuals who are eligible for Medicaid benefits can get medical transportation both in emergency and non-emergency medical situations. Make sure to call your local Medicaid office since different states have different rules in covering medical transportation services. 

Here are some non-emergency medical situations where you can get medical transportation on Medicaid:

You do not own a carYou do not have a driver’s licenseYou have physical or mental disabilityYou are unable to travel aloneYou had a surgery that left you unable to drive

Usually, if you have enrolled in the Medicaid program, you will receive instructions about how and when to get a ride. For instance, you may call your local Medicaid office to ask for assistance on how to set the ride you need or give you instructions on how to set up the ride yourself. You can see below the mode of transportations covered by Medicaid.

The NEMT coverage varies, but it generally includes the following modes of transportation:

Public transportationPrivate vehicleTaxi/LiveryWheelchair vanAmbulanceStretcherCommercial airline

Therefore, you already know what are the modes of transportations covered by Medicaid. On the other hand, there are instances, wherein you might share a ride with others, or you are allowed to bring one family member to accompany you. Hence, here are some things you must know when getting a ride.

What You Need to do for Medicaid to Cover your Ride

If you are a Medicaid beneficiary, make sure you follow your state’s Medicaid guidelines on how to get a ride so that Medicaid will approve and cover your ride. Therefore, it is important to know these  things beforehand since the drivers are only authorized for specific times

1. Be Prepared at the Time of the Pick-up

This is because Medicaid may not pay the transportation service if your driver waits for you to arrive on the pickup location. Some states impose limits on how long your driver should wait for you, if you are not on time. 

2. Cancel a Scheduled Ride Beforehand

If you do not need a ride on your scheduled date, make sure you call your transportation service to cancel your ride. This is because if you practice the habit of not showing up during your scheduled pick-up dates, Medicaid may place a restriction on your ride benefits. For example, you are only allowed to use one service for your rides.

Moreover, there are some situations that may affect your ride service. During these times, here are some tips you should do:

Situation 1: The Ride does not Show up

If your ride does not show up, call the number you used in getting a ride, and then ask the reason why the driver did not show up. Once you have known the reason why the ride does not show up, call your local Medicaid office and explain the reason to them.

Situation 2: Your Appointment was Changed

If your scheduled appointment was changed, call the ride service right away, and then tell them the reason why you are changing your pick-up date. Also, tell them your new scheduled pick-up time so that they can make an appointment on that day for you since the drivers are authorized only for specific time and day.

What Will Happen if these Guidelines are not Followed?

If you and the ride service did not follow the rules, for example, the driver gave you a ride anywhere, aside from the service benefit you are only allowed to, you and the driver may be charged with stealing or abuse from Medicaid. 

To protect yourself from fraud and abuse, you may report these following incidents on your state’s Medicaid office:

Your driver took a route that adds extra time and mileageYou received a ride in an ambulance, even though a regular van or a wheelchair will doYour driver took someone to a non-medical location, instead of to their homeYou knew someone sharing his/her Medicaid card details with others to get also free coverage

Those are just some examples of scenarios, wherein you must report if you know someone and even the driver breaking the rules.

Finally, you have learned the basics about the medical transportation benefits of Medicaid; therefore, it’s now time to learn how much does Medicaid cover for these transportation services; though the rules vary from state-to-state. 

Some require co-payment and prior-authorization, while other states put limits on the number of trips that Medicaid will cover for a year. Let’s find this out below.

Non-Emergency Medical Transportation Fee Schedule

Most NEMT providers will charge a base rate depending on the mode of transportation needed, such as a wheelchair, stretcher, private vehicle, or public transportation. Moreover, it will also affect the cost based on the date you will need the transportation service since they are cheapest during weekdays. 

Hence, here is a table that shows a typical NEMT rate:

TYPE OF TRANSPORTATION SERVICE AND/ OTHER CHARGES

BASE RATE DURING

WEEKDAYS

BUSINESS HOURS

BASE RATE DURING

WEEKENDS 

OFF HOURS

BASE RATE DURING

HOLIDAYS

Ambulatory

$25 - $30

$30 - $40

$35 - $45

Wheelchair

$45 - $50

$75 - $90

$85 - $100

Stretcher

$100 - $200

$125 - $225

$150 - $250

Mileage fees

$3 - $5 per mile

$5 - $7 per mile

$5 - $10 per mile

Wait-time fees

(every 30 mins has passed)

$15 - $30

$15 - $30

$15 - 30

Attendant fees

$5 - $10

$5 - $10

$5 - $10

Aside from the type of transportation service and the date when you will need the service, the mileage rate and additional cost for an attendant may also affect the rate for a non emergency medical transportation service. To see an example of a non-emergency transportation schedule, you may check this site

Meanwhile, here is a table that shows the state-to-state of Medicaid benefits for Non-Emergency Medical Transportation Services:

STATES​​​​

IS NEMTS COVERED?

IS COPAYMENT REQUIRED?

LIMITATIONS ON SERVICES

Alabama

YES

NO

None

Alaska

YES

NO

Requires prior authorization

Arizona

YES

NO

Medically necessary and no other means of transportation

Arkansas

YES

NO

Not specified

California

YES

NO

• For specialized transportation, it requires prescription from the provider

• For non specialized transportation, it requires the beneficiary to prove that other resources are reasonably exhausted or not available

Colorado

YES

NO

None

Connecticut

YES

NO

For family member, transportation will be provided, if they need to be present during family services

Delaware

YES

NO

During medical appointments only

District of Columbia

YES

NO

You must present a physician certification for certain services

Florida

YES

Charges a $1 copayment per one-way NEMT trip

None

Georgia

YES

Charges a $1 copayment per one-way NEMT trip

None

Hawaii

YES

NO

None

Idaho

YES

NO

None

Illinois

NO RECORD

NO RECORD

NO RECORD

Indiana

YES

Charges a $0.50 to $2 copayment per NEMT trip, or depending on the payment

• Requires prior authorization

• Non emergency transports beyond 20 one-way trips per year

• Non emergency transports greater than 50 miles

Iowa

NO RECORD

NO RECORD

NO RECORD

Kansas

YES

NO

None

Kentucky

YES

NO

No coverage, if there is a working vehicle in your household

Louisiana

YES

NO

NO RECORD

Maine

YES

NO

None

Maryland

YES

NO

None

Massachusetts

YES

NO

None

Michigan

YES

NO

​

Minnesota

YES

NO

None

Mississippi

YES

NO

NO RECORD

Missouri

YES

Charges a $2 copayment for each NEMT trip except for children, pregnant women, individuals who live in a nursing facilities, and others

For NEMT, Medicaid beneficiaries are covered by Missouri HealthNet services

Montana

YES

NO

Needs to be reviewed first for medical necessity

Nebraska

YES

NO

None

Nevada

YES

NO

None

New Hampshire

NO RECORD

NO RECORD

NO RECORD

New Jersey

YES

NO

Requires prior authorization

New Mexico

YES

NO

None

New York

NO RECORD

NO RECORD

NO RECORD

North Carolina

YES

NO

Arranged by their local DSS and limited only to one procedure per day with the same or different service provider

North Dakota

YES

NO

Requires prior authorization for all types of transportation services

Ohio

YES

NO

None

Oklahoma

YES

NO

NO RECORD

Oregon

YES

NO

Needs to be verified first if the beneficiary does not have access to other means of transport

Pennsylvania

YES

NO

Transportation services is limited to their local Medical Assistance Program

Rhode Island

YES

NO

None

South Carolina

NO RECORD

NO RECORD

NO RECORD

South Dakota

YES

NO

NO RECORD

Tennessee

YES

NO

None

Texas

YES

NO

Requires prior authorization

Utah

YES

NO

None

Vermont

YES

NO

Needs to be verified first if the beneficiary does not have access to other means of transport; the medical service must be covered by Medicaid, and must be medically necessary

Virginia

YES

NO

NO RECORD

Washington

YES

NO

Requires prior authorization

West Virginia

YES

NO

For NEMT, it must be provided by a single contracted transportation broker and a qualified provider that must be within the 30 miles border of West Virginia

Wisconsin

YES

Charges a $1 copayment per trip in a specialized medical vehicle; while $2 per trip in a non emergency transportation; no copayment for common carrier

Must be approved and coordinated first with a transportation manager

Wyoming

YES

NO

None

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