Money Management

There are certain investment accounts that offer tax benefits along the way. Read on to learn more about one account that helps you cover healthcare costs. 

Investing money is a great way to grow yours into a larger sum over time. And if you’re able to snag a tax break along the way, even better.

Now, you may be aware that IRAs and 401(k)s offer the benefit of tax-free contributions. The problem, though, is that your funds are restricted until age 59 1/2. Take a withdrawal at an earlier age than that, and you’ll face a 10% penalty for removing funds early (though there are some exceptions, such as being able to take a limited withdrawal to buy a first-time home).

On the other hand, if you want near-term access to your money, you can invest in a regular brokerage account. You won’t get any tax benefits in the process, but you’ll have the option to cash out investments at any time and for any purpose.

There may come a time when you decide to liquidate investments in your brokerage account to cover medical bills. If you do so, and your investments have gained value since you bought them, you’ll be subject to capital gains taxes.

But what if there were a way to invest money for healthcare bills specifically and avoid a tax bill in the process? Well, actually, there is.

What can an HSA do for you?

Healthcare costs can be a burden at any stage of life, so it’s important to have funds on hand to cover medical bills. And saving and investing in an HSA, or health savings account, is a great way to make medical costs more manageable.

An HSA is a hybrid savings and investment account. And it’s loaded with tax benefits.

HSA contributions are made with pre-tax dollars, so if you put $1,000 into one of these accounts, the IRS won’t tax you on $1,000 of earnings that year. You’re allowed to carry HSA funds forward as long as you want to. And you can invest the money you don’t withdraw for healthcare bills to grow it into a larger sum.

Investment gains in an HSA are tax-free, and so are withdrawals, provided they’re used for medical purposes. If you take an HSA withdrawal for non-medical purposes, you’ll be taxed and penalized.

However, once you turn 65, you can withdraw funds from an HSA for any reason without penalty. In that situation, non-medical withdrawals will be subject to taxes the same way traditional IRA and 401(k) withdrawals are.

Are you eligible to participate in an HSA?

To fund an HSA, your health insurance plan has to meet certain requirements that change yearly. This year, you must have a minimum deductible of $1,500 for individual coverage or $3,000 for family coverage. Your plan’s out-of-pocket maximum must also be limited to $7,500 for individual coverage or $15,000 for family coverage.

It’s possible to have a health insurance plan that’s HSA-compatible one year but not another. So it’s a good idea to review your options annually.

But all told, investing in an HSA is worth doing if you’re able to. There aren’t many other opportunities to snag a tax break in the course of investing to cover healthcare costs.

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Due to high medical costs in the U.S., more people are traveling to Turkey for medical care. Keep reading to learn if it’s the right move for you. 

Health tourism is one of the fastest growing industries in Turkey, bringing in billions of dollars each year. Here, we’ll discuss why people are traveling to Turkey for medical procedures, and whether it’s a good idea to hop a plane to put your medical care in the hands of Turkish doctors.

Three major reasons

Whether you’re looking for a knee replacement or a facelift, Turkey can be a tempting medical destination. Here’s why.

Price

While people travel to Turkey for all types of medical procedures, cosmetic surgery is among the most popular. Cosmetic surgical procedures are rarely covered by health insurance, meaning patients must pay out of pocket. Unless a person has enough socked away in a savings account, paying for surgery in the U.S. can be prohibitively expensive.

Here’s how the average price of popular surgeries in Turkey stack up against U.S. costs:

Wait time

Let’s say you need neck surgery and your local orthopedic surgeons are booked out for months. In Turkey, the majority of patients looking for surgery can be scheduled within two weeks or less.

The experience

For some, a trip to Turkey for surgery may feel like an adventure. It’s an opportunity to visit a country that sits in both Europe and Asia and is surrounded on three sides by the Black Sea, the Mediterranean Sea, and the Aegean Sea.

Due to Turkey’s competitive healthcare market, hospitals and clinics vie to attract the most business from foreign countries. And because it’s a competition, some pull out all the stops. For example, a clinic may offer specialized personal care once a patient reaches the hospital, a stay at an exclusive resort before and after the procedure, and VIP transfers to and from the airport.

But is it a good idea to leave the U.S. for medical care? First, let’s review the pros:

Lower medical costsQuick schedulingVIP treatment

Potential cons and how to handle them

Bottom line price

It’s easy to understand why people who want or need surgery opt for treatment in a country that’s so much easier on the bank account. However, the true cost of traveling to Turkey includes airfare, ground transportation, hotel stay, meals, and any activities you would like to enjoy while visiting.

Plan of action: Take all costs into account as you determine the cost savings of Turkish medical care. Don’t forget to add in aftercare supplies, medications, and travel insurance.

Unverifiable testimonials

You can read dozens of online physician or facility reviews, but it’s difficult to verify whether they were written by real patients or by a PR group.

Plan of action: Ask to speak with at least two former patients (who speak English) to get a better sense of their experience and what you can expect. Then, take anything they say with a grain of salt. The office would not have suggested those patients unless they trusted them to provide a glowing review. You could also check with anyone you personally know who has been to Turkey for medical care. Even if they worked with a different medical provider, they may have suggestions you haven’t considered.

Potential language barrier

Given Turkey’s emphasis on medical tourism, it’s natural to assume that most clinics and hospitals have staff on hand to interpret for those who don’t speak Turkish. However, that doesn’t mean that the rank and file will speak your language. If you’re in your hospital room and are in pain or need something specific, your requests may not be understood.

Plan of action: Don’t wait until you arrive to learn who speaks English. Ask before booking an appointment.

Few options if things go wrong

If you face complications after arriving back home, you’re unlikely to have many options. Finding a U.S. physician to take over your care is often difficult, as doctors do not want to assume the problems caused during foreign medical care. And unlike medical care provided in the U.S., you can’t just hire an attorney to sue a Turkish doctor or hospital for malpractice. Not only do laws vary widely by country, but it’s also possible that you’ll receive next to no compensation, even if your complaint is heard.

Plan of action: The best you can do is investigate a doctor’s credentials before putting your health in their hands. Ask for evidence of their medical license, and if they’re a plastic surgeon working in the European part of Turkey, make sure they’re a member of the European Board of Plastic Reconstructive and Aesthetic Surgery (EBOPRAS). EBOPRAS membership ensures that a surgeon is board certified.

If the surgeon operates only in the Asian portion of Turkey, find out if they’re a member of the International Society of Aesthetic Plastic Surgery (ISAPS) — this is the world’s leading association for board-certified aesthetic plastic surgeons.

There are no guarantees in life, but you can increase your odds of a positive outcome by doing some investigative work before leaving home.

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Auto insurance can be very expensive. Read on for ways to save that you may not have considered before. 

For many people, owning a car isn’t a luxury — it’s a necessity. If you’re in this boat, then you’re probably painfully aware that auto insurance is an unavoidable expense, too.

The average U.S. driver pays $1,553 a year for auto insurance, says U.S. News & World Report. But different factors will help determine what premium rates you end up with. These include the cost of your vehicle, your driving record, and where you live.

You may be struggling to keep up with your auto insurance premiums on top of your seemingly never-ending string of bills. So if that’s the case, shopping around with different insurers might help you carve out a lower rate. But you may also want to look into these lesser-known discount opportunities and see if any might apply to you.

1. A low mileage discount

These days, many people are working remotely and, as such, are not using their vehicles for commuting purposes. If you don’t put a lot of mileage on your car, then you may be eligible for a low mileage discount.

Some car insurance companies will allow you to pay for your insurance by the mile. This type of arrangement could work to your financial benefit if you really only use your car for tasks like running errands or the occasional trip into the office or to see family. Talk to your insurer to see what options are available.

2. A driver safety discount

The idea of having to sit through a defensive driving course may not seem so appealing. But the upside is that you might not only develop strategies for safe driving but also, score yourself a discount on auto insurance in the process.

Some auto insurers will give you a discount if you take a driver safety course. But don’t just sign up for any course. Instead, talk to your insurer so you know which types of courses are approved. You don’t want to waste your time and money on a course that won’t result in money off of your premiums.

3. A good student discount

Being a good student could result in scholarships that lower the cost of your studies. But it could result in lower auto insurance costs, too.

Progressive, for example, offers a discount for full-time students under the age of 23 who can maintain at least a B average. In most states, that shaves 10% off of the cost of insurance.

Talk to your insurance company about the discounts it has for students. And if there aren’t any, you may want to switch to a different insurer, especially if you have several years of studies ahead of you and you know you tend to get good grades.

Auto insurance is a cost you can’t avoid if you need a car. But that doesn’t mean you can’t lower that expense to give yourself some breathing room. It pays to look into these discounts, especially if you’ve been struggling to keep up with your premium costs.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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