Dr. Jim Dahle:
As far as how you take a deduction when you donate something to charity it’s in the year you donate it is when you can take that deduction. So, I don’t think you should be buying stuff with your FSA that you’re just planning to donate to charity.

Nevertheless other material to consider here about any of it is the most other manner in which you could come out ahead, that is for anyone else repay men and women funds

Try to ascertain an easy way to place smaller on the FSA or have your company focus, otherwise compensate your in a different way, otherwise buy stuff that you can easily in reality play with eventually for your health. There are many things you may use an FSA having. You will find all sorts of eligible expenditures that can be used FSA currency getting.

Dr. Jim Dahle:
The difference between a flexible spending account, of course, and an HSA, a health savings account is in the HSA you can roll money over into the next year, whereas an FSA is use it or lose it. That’s the main difference. But there are all kinds of things that you can buy with an FSA that you might not have thought about. They’ve got extensive lists online. There’s got search tools that you can use online.

Dr. Jim Dahle:
But let me just go through some common https://paydayloansmissouri.org/ eligible stuff that you can use it for. Acupuncture, ambulances, artificial limbs, artificial teeth, birth control treatment, blood sugar test kits for diabetics, breast pumps, lactation supplies, the chiropractor, contact lenses and solutions.

Dr. Jim Dahle:
Crutches, dental treatments, office visits and co-pays, drug addiction treatment, drug prescriptions, eyeglasses, fluoride treatments, flu shots, guide dogs, hearing aids and batteries. Infertility treatment, that’s a common one for docs.

Dr. Jim Dahle:
Inpatient alcohol treatment, vaccines, vasectomy, vision exam, walkers, canes, wheelchairs, midwives, laser eye surgery, insulin, lab piece. There are all kinds of stuff that you can use this for. Certain over-the-counter drugs and medications, stock up on your ibuprofen. There’s lots of stuff you can buy with your FSA. It’s probably not something to be mixing around with your charitable donations though.

Catherine:
Hi, I have a question about the pros and cons of living off of loans versus living off of savings and investments. Basically, as I start medical school, I can either take out the maximum amount of loans or I can use the $60,000 that I have saved in an investment account right now that’s outside of an emergency fund outside of retirement savings to live off of for the next four years.

Catherine:
I hate to use the money that I’ve invested because it’s making great returns, but I also hate to max my loans and take that on. I’m not really sure what math would make more sense there. Thanks.

Dr. Jim Dahle:
All right. Let’s get into the math of it to start with. Scenario number one is that your investments earn more after-tax than the loans cost you. That is why this can work out for you.

So, when you’re taking right out loans from the six%, which is pretty normal to own med school funds, therefore secure ten% and keep eight% after-taxation, then you have come-out ahead

However, on the a danger-adjusted basis, it’s pretty tough to beat six%. 6% protected was a fairly glamorous go back indeed. As if you look within secured financial investments out there, we are talking about 2% at best is really what you’re going to get towards the those individuals, apart from We ties that is probably short-term.

Dr. Jim Dahle:
So, you get the best of both worlds. You get to take out all this money, spend it on whatever you want, pay for your medical school. Take out a little extra, go down to the bar with it, buy a season ski pass with it.