4.MSAs reduce income taxes. The amount you elect to deposit into your MSA account each year is deducted directly from your taxable income in same manner as a IRA account – regardless of whether you spend it or just save it. Interest and investment earnings in a MSA are also tax-free. For average person, for every dollar that you put into your MSA, your taxes will be reduced by about $.25 even if you do not incur any medical expenses.

5.You must have a qualifying MSA-type health insurance plan in place first before you can open a Medical Savings Account. These insurance plans are available to most self-employed persons (one person businesses) and small business firms with 2-50 employees.

6.It is possible to open up a MSA Account with a separate company than your MSA insurance but this is not recommended and will certainly cost you significantly more. It always makes more sense to have your MSA deposit account and your insurance with same company.

7.It takes 4-6 weeks to actually get a MSA plan started and delivered to you. Short term coverage is available during interim period at www.medsave.com . Coverage may be bound or issued within 24 hours but it takes longer to receive ID cards and a printed policy.

8.The most popular type of traditional MSA plans are not available to individuals and businesses residing in AK, HI, KY, MA, ME, NJ, NC, NH, NY, RI, UT, VT and WA. In those states, it is best to check with your local managed care plan providers for MSA options.

9.You should not use a MSA plan when management of your existing medical costs is more important to you than achieving a savings in insurance premiums. Do not change health plans in middle of ongoing medical treatments, when a major health issue has been diagnosed, or when any family member is pregnant.

10.There is usually no fee or commissions for medical savings accounts although some custodial firms do charge a fee. Completely free no-load Medical Savings Accounts are available at www.medsave.com . The amount that you deposit and withdrawal from your MSA are totaling at your discretion (up maximum deduction allowed each year).

What would happen if you lose your job, have an accident and receive no income for 6 months? How would you (and your family) survive financially? Do you have your insurances in order?

Where will you be in next five years? Maybe retired and on a pension? Or perhaps you have superannuation you hope will be enough to live on? Unfortunately too many people are under false illusions about how superannuation will be answer for a secure retirement.

Hope is not enough. You have to be pro-active and seek out professional advice to help you. But be careful who you take advice from and what is motivation behind them “selling” you their ideas?

Educating yourself on how to make most of your hard-earned money so you can create wealth should be a high priority. After all, if you’re not interested in securing your financial future, who is?

The Final Word If you take control of your personal affairs you will have peace of mind and know that you are making things happen.

I once heard someone say: Some people make things happen, others watch things happen and still others wonder what happened.

Stop procrastinating and just do it!

Have a great week! Lorraine Pirihi

The Office Organiser TM

Specialises In...

Personal productivity and life coaching

Dynamic workshops and presentations

Terrific Timesaving products

Accredited Speaking Professional of the National Speakers Association of Australia

Highly Commended Australian Achievers Award 2000.