Looking Back: Quick Recap
As you may recall, last year Pat had a major bike accident and went to the ER for care, which resulted in Pat receiving a huge bill. After the ER incident, Pat went to a nearby urgent care center to get the stitches cleaned up, and signed up for telehealth for more care options and to save money on receiving care.
To help optimize savings after the accident, Pat has been contributing the maximum limit to the Health Savings Account (HSA) ($3,500 less the Company contribution) and investing the balance once it reaches $2,000.
Looking Ahead: Focus on Financial Health
Last year was great for Pat since he got engaged, but the future looks even brighter. Pat tied the knot earlier this year and now wants to buy a home so they can start a family.
Due to Pat’s qualified life event, Pat’s spouse was able to enroll in the OAP HSA 2 Plan, which meant that Pat was effectively able to
save even more in the Health Savings Account (HSA) and receive an even greater Company contribution to the account.
But Pat wondered, “Should I be saving in my HSA or 401(k)? And will I have enough cash to buy a home?”
Investing in the Future
Thankfully, XL Catlin had a resource for Pat: Bank of America’s
website. After visiting the website, Pat learned about all the important considerations for buying a home, including thinking about how much they can afford and questions to ask a mortgage lender. In addition, Pat reviewed
The Power of Two guide
and learned how to maximize their HSA and 401(k) savings.
Now that Pat has a fuller view of their financial reality and aspirations, Pat is maximizing on 401(k) and HSA contributions, and ready to buy their dream home.