FINANCIAL FOCUS
KRISTI TREVINO Financial Advisor Edward Jones
Open Enrollment Choices Can Have Big Financial Impact
It ’ s that time of year again , where , if you work for
a medium-to-large employer , you ’ ve got some decisions to make because it ’ s open enrollment time . Of course , depending on your situation , you may have been working remotely for a while , but , even so , you will likely have the opportunity to review your benefits package and make changes . And you ’ ll want to make the right moves , because your choices can have a big financial impact on your life .
So , take a close look at these key areas of your benefits program :
• Health insurance – Think about your health care needs over the coming year – will you or someone in your family be coping with a chronic illness or facing a surgery ? Will you need to at least consider testing and possible treatment for COVID-19 ? In any case , make sure you ’ re choosing the right plan for your needs . And pay close attention to any changes in your health insurance , such as whether the plan ’ s provider networks have changed – you may want to make sure your own doctor is still in-network . Also , check to see if you can reduce your health care premiums by taking part in a wellness program or health-risk assessment .
• Life insurance – Your employer may offer a group life insurance policy for free , or for a small amount . It ’ s probably worth your while to take this coverage , but it may not be enough for your needs . If you only had this group policy , but your family situation has recently changed through marriage or the addition of a new child , you may well need to add some private insurance .
• Disability insurance – In addition to offering group life insurance , your employer may provide short-term disability insurance as an employee
benefit . Like group insurance , this disability coverage may not cost you anything , but it may not be adequate – typically , short-term disability only replaces part of your income for three to six months . And while you may never need to miss work for an extended period of time , you never can tell – after all , more than one in four 20-year-olds will become disabled before they retire , according to the U . S . Social Security Administration . You may want to consider purchasing your own long-term disability policy on top of the coverage offered by your employer .
• Retirement plan – You can probably make changes to your 401 ( k ) or similar employer-sponsored retirement plan at any time , but why not look at it now , when you ’ re reviewing all your benefits ? If you can afford to increase your contributions , you probably should , because a 401 ( k ), with its tax advantages and ease of contribution through paycheck deductions , is a great way to save for retirement . At a minimum , put in enough to earn your employer ’ s match . You ’ ll also want to review your 401 ( k )’ s investment mix . Is it still providing you with significant growth potential within the context of your individual risk tolerance ? Over time , you may need to make some adjustments , either because an investment is under performing or because you ’ re getting close to retirement and you need to reduce your risk exposure . In any case , it ’ s a good idea to check up on your 401 ( k )’ s investments at least once a year . Your employee benefits are an important part of your overall financial picture – so do what you can to get the most from them .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Edward Jones . Member SIPC .
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