Financial 101 for Your Employees

Are your employees distracted by finances and need assistance?

Do your employees spend more than they earn and carry loads of debt? If so, they may not participate to the level they should in your 401(k) plan. In fact, one third of all workers say money worries sometimes interfere with their job performance.

That's where The Benefit Advocates can help. We can tailor an educational program about money, spending and debit geared specifically to your employees' needs.

Wise Uses of Tax Refunds

According to the Internal Revenue Service, an estimated 75 percent of taxpayers receive a tax refund. In 2005, the average refund exceeded $2,000. For those who insist on giving the government a “free loan” by providing the use of taxpayer dollars at no charge, here are a few suggestions for making good use of the money.

• Pay Down Debt — This sometimes-annual windfall can be used to “catch up” on outstanding debt. The average household has a minimum of one credit card and has more than $9,200 credit-card debt. Even if no additional charges were added to this amount, it would take 389 months making minimum payments and $10,505 in interest to erase the deficit.
  
  
• Contribute to an IRA — Did you know that if a person invested a refund in a tax-deferred account earning 8% annually, the money could double in less than 10 years? Already have an IRA? Then extend your savings with a Roth IRA. The tax break is not immediate (only qualified withdrawals after age 59 & ½ are tax-free) but from that point on the money is yours tax free. Since original contributions can be withdrawn any time without penalty, the funds also are accessible in emergencies.
  
  
• Fund a 529 college-savings program. A 529 plan has no income requirements, and parents can contribute up to $250,000 per beneficiary.

To schedule an educational session for your company or group, call us at 800-344-5677 or 336-721-2029 in Winston-Salem.