5) Risk, Protection & Longevity (Playing the Long Game)
Get insurance beyond health (protect your income)
Health insurance is just the beginning. Disability insurance protects your income if you're injured or sick and can't work. For immigrants on work visas, disability is 'double jeopardy'—you lose your income AND potentially your visa status. If your employer offers long-term disability insurance, take it. If not, consider a private policy (expect to pay 1-3% of your income). Term life insurance makes sense only if you have dependents who rely on your income—spouse, children, or family back home. A 20-year term policy for $500k costs $20-40/month for a healthy 30-year-old. Avoid whole life, universal life, or other complex insurance products—they're expensive and the 'investment' component is usually worse than just buying term and investing the difference. Don't over-insure; match your coverage to your actual obligations.
The Health Savings Account (HSA) is widely considered the single most powerful savings tool in the U.S. tax code.
- The Triple Win: 1. Tax-Free In: Money you put into an HSA lowers your taxable income immediately. 2. Tax-Free Growth: You can invest your HSA funds in the stock market, and you pay zero taxes on the gains. 3. Tax-Free Out: As long as you use the money for medical expenses, you never pay a cent in taxes.
- The individual contribution limit is $4,400 ($8,750 for families). If you can afford to pay for minor doctor visits out of your pocket, let your HSA money sit and grow for decades. After age 65, it essentially turns into a traditional retirement account where you can use it for anything.
Free Resource:HSA - The Secret Retirement Account You Didn't Know About
Resources
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