Interest Rates, The Yield Curve & Credit Spreads, Excess HSA Contributions Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, Interest rates are often referred to generically when referencing the Federal Funds Rate (the overnight lending rate between banks that the Federal Reserve manages). However, many interest rates are impacted by the term of a loan and the risk that the loan will not be paid back. To fully understand the bond market investors must understand the
implications of the interest rate curve (interest rates paid for different terms) and interest rate spreads.

Also, Health Savings Accounts (HSAs) can be useful financial planning tools for those who have a high-deductible health insurance plan and therefore qualify to make contributions. However, like other similar plans, HSAs have contribution limits that must be monitored to make sure the limits are not exceeded. Otherwise, an excise tax on over-contributions may apply.

And, 529 educational savings plans are often thought of as just that, an education savings vehicle. However, due to some of the
peculiar rules around 529 plans, they can also be a good estate
planning vehicle for high-income and high-wealth individuals. A
529 plan allows the owner to control the funds for the benefit of
a beneficiary. At the same time, the funds are considered to
be a completed gift and are therefore outside of the owner’s estate for income and estate tax purposes.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - Schwab recently released the form 1099-Div and 1099-B for non-retirement accounts. These are often the last forms that are released and thus can hold up tax filing. However, it appears that this year’s forms were released reasonably early. If you need your forms and have not yet received them, you can access them online or call our office and we will send them to you via a secure e-mail link.

Tax return information has been coming in early this year and we are very appreciative of those who have tackled the gathering of the tax information early. Tax season is only so long and from
a tax preparer's standpoint, it is much less stressful when the work comes in early so it can be spread over as many days and weeks as possible. Every tax preparer loses sleep over the fear that all of their tax clients will wait until late in the season to send in their tax documents creating a deluge of work with little time to complete it. So, thanks to all of you who have started early this
year.

Chase Armer's book- Financial Planning Insights is now available at:
https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail Katie@PlannedSolutions.com

The Personal Finance Review is published and distributed biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.