David Lerner Associates News

Thanksgiving for Finances

Core Facts


Monday, November 25, 2019

Thanksgiving has been celebrated on the last Thursday of November every year since 1863, and as we all know, it’s a time to take a moment and express gratitude for all our many things that we’re thankful for. The holiday can be traced back to a shared meal between the Native Americans and the pilgrims, and it is traditionally celebrated with a bountiful feast among friends and family.

But in financial terms, as with most holidays, there is a lot of commerce that goes along with it. Here are some fun financial Turkey Day facts: Americans spend $670 million on turkeys each year. The average cost of a Thanksgiving 10-person meal is around $50, and approximately $300 is spent by the average Thanksgiving shopper. $28 million is the average amount of property losses due to home cooking fires. 

Completely aside from the nationwide numbers and more in keeping with the spirit of the holiday, here are some ways to express thanks and take stock of your own personal financial landscape:

Retirement

Give thanks for your retirement planning. If you’re one of the smart Americans who have been following a strategy and planning for your retirement, then pat yourself on the back, and be grateful that you’re not one of the many who are behind the curve in that regard.

Many Americans are not properly prepared for retirement. Over a third of Americans are completely reliant on Social Security (in other words they don’t have any retirement savings), and a full two-thirds of American retirees are dependent (although not completely reliant) on it. So, if you are one of those with the foresight to have a retirement savings account (401k or IRA), and let’s include emergency funds and general savings accounts in this category as well, be thankful. Saving your money is a smart thing to do, no matter which way you look at it.

Health Accounts

Whether we’re talking about an HSA (Health Savings Account) or Long-Term Care Insurance, having a savings account dedicated to one’s health expenses is most certainly something to be grateful for. For 2019, the Internal Revenue Service raised the maximum contribution to HSAs by $50 to $3,500 for individuals and $100 to $7,000 for families. Maximum catch-up contributions for people over age 55 remain at $1,000. 

With regard to Long-Term Care Insurance, nearly 70 percent of Americans 65 and older need Long-Term Care at some point, so having it would certainly be something to put on your 'thankful for' list.

Life Insurance

“Ten out of ten Americans will die at some point in their lives.”

Jokes aside though, life insurance is unlike other types of insurance. The policyholder is guaranteed to need it at one time or another. “This distinction is important to understand,” notes Dan Gardella, vice president of Insurance Services for David Lerner and Associates. “When viewed through this lens, life insurance isn’t an expense, it’s an asset that will eventually provide a return on your investment. As long as you pay the premiums and maintain the policy, your beneficiaries will eventually receive the death benefit.”

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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