The Gift That Keeps On Giving - A Money Market Savings Account

An absolutely safe way to store $100,000 of your Money in the bank, that pays a nice yield is in a Money Market

Savings Account, also known as a Money Market Deposit Account. They are insured up to $100,0000 (if

a retirement account, up to $250.000) by Federal Deposit Insurance Corporation if in a bank, and if in a Credit

Union by National Credit Union Share Insurance Fund. With a spouse you can also have a joint account also

insured.

With your Money Market Savings Account or Money Market Account, there is a minimum balance, but the money

market account pays about twice the interest rate that a Passbook Savings Account or a Statement Savings Account

pays. The rates are set by the bank or credit union to reflect the directions of overall interest rates and can change

on a daily basis although most banks change only weekly. The money market savings account has advantages

of liquidity, security, and accessibility. You don't have to worry about the vagaries of the stock market,

about price/earnings of different companies, about income statements, and balance sheets. No second guessing

is required - Should I have gone to large income producing stocks, or small-cap stock, or midsize-cap stocks,

should I invest internationally, or domestically? Or should just go gamble a lot of loot on Junk Bonds.

Unlike the other money making funds of stocks, bonds, or mutual funds which invest in stocks, bonds, commercial

paper, REITs ( Real Estate Investment Trusts) mortgages, Treasury Bills or Corporate Bonds, you can be assured

if you have the protection in knowing if you should need the money in the bank, it will be there. If you have more to

invest than the insured amount you can open up new accounts at other banks or credit unions. which are then

insured up to $100,000 or if a retirement account up to $250,000.

In fact, you may wish to consider a credit union. Credit unions are groups of people with some common bond

who form a cooperative. They may work at the same company or belong to the same branch of the military, or

take part as members of the same church or religious community. Since the members are the owners, the

profits come to them. Often Credit Unions offer beneficial compounding and a good rate of return on your

money, than other banking institutions. The more often interest is compounded, the faster the interest grows.

You may wish to consider using one of the large online banks and make deposits in you Money Market Savings

Account through cyberspace. You can find online banks advertised on various money and financial

websites.

After you build up a nice, safe nest egg, and if you have a tolerance for risk and you want your money to work

for you in more diversified ways; you may wish to put your money on Wall Street by starting some money

making funds, the most common of which are mutual funds. They are made up of all combinations of stocks,

treasury bills, commercial paper, junk bonds, Fannie Maes, etc., and you can choose between investing

in managed funds wihch usually have a large management fee or an index fund wich is indexed according

to the S&P or NASDAQ or some other index, which often perform well and have low management fees.

My name is August and I am a baby boomer. I've been retired for 4 years. I enjoy gardening, reading, and studying investments and finance. Please visit my website, Money Saving and Funds and my blog, Money Market Savings Account

How the Power of Prevention Can Help Your Health Savings Account Grow

A majority of medical expenditures in this country pay for treatment of chronic conditions that are mostly preventable. Unfortunately, most people don't take their health seriously until after they get sick. Simply by eating well and exercising, you can avoid the medical conditions and expenses that affect the majority of Americans, allowing the money in your Health Savings Account to continue growing tax-free.

Only You Can Prevent Heart Disease, Cancer, Diabetes...

Most of us go through our lives stuck in our lifestyle patterns, with no idea of the power we have to positively influence our own health. And so by the time we're in our 40's most of us are on at least one regular medication. By the time we're in our 60's over 85% of all Americans have at least one degenerative disease. And by the time we are in our 70's we're dead.

But in fact, a majority of the diseases people suffer from as they age are almost totally preventable.

- Cancer: Researchers from the National Cancer Institute believe that 80-95% of all cancer cases are due to environmental and lifestyle causes, and are thus preventable. Diet may be involved in at least half of all cancers, and one third of all cancers are linked to obesity.

- Dementia: Mark Houston, M.D., Medical Director at Hypertension and Vascular Biology Institute at Saint Thomas Hospital and Medical Center in Nashville, Tennessee, estimates that 95% of all dementia is preventable with a lifestyle approach.

- Heart disease: Numerous studies indicate that 90% - 99% of all heart disease may be preventable.

- Diabetes: One of the nation's most renowned health researchers, Harvard University's Walter Willet, has estimated that 92% of type-2 diabetes is preventable.

How to Eat

Probably the very most important factor that can positively affect the health of most people is changing the way they eat. There are many, mostly conflicting theories about what kind of diet is the healthiest. In my opinion, the only one that really makes sense is to eat according to the way we evolved to eat.

The idea of "Paleolithic Nutrition" was first published in the New England Journal of Medicine in 1985 in an article by Dr. S. Boyd Eaton. Since then it has been popularized by Loren Cordain, Ph.D., in his book, The Paleo Diet, and studied by nutritional scientists all over the world. The premise is simple: Our genes determine our nutritional needs.

For over 2.5 million years, humans evolved as hunter-gatherers, and the selective pressures of their lifestyle and diet determined the genes that we have today. Our genetic make-up is exquisitely tuned to function best on the foods that we evolved to eat.

A mere 500 generations ago the Agricultural Revolution brought sudden and dramatic change to our diets, and the changes are continuing to this day. But our genes haven't managed to keep pace with the change.

Today approximately 2/3 of the foods we eat were those never encountered by our hunter-gatherer ancestors. The result is high blood pressure, diabetes, heart disease, cancer, and a host of other ills that we should not have to suffer.

While most of us do not have access to large wild game and wild-harvested organic produce, the more closely we can mimic the foods that our ancestors ate the better health we will have. So simply base your meals around a lot of fruits and vegetables, along with some lean protein.

You could start by eating eggs and cantaloupe for breakfast. Lunch could consist of a large salad with grilled chicken. For dinner have some wild salmon, asparagus, and salad. Finish off the meal with a big bowl of fresh blueberries.

Exercise

Everyone knows that exercise is good for them, but who wants to spend an hour jogging everyday. (Some people do, but most don't have the time or desire to go out jogging for an hour every day). What does work to give you the maximum benefit for the least amount of time is exercise with intensity.

So if it's okay with your doctor, go out and exercise like you mean it. Run wind sprints, lift weights, and exert yourself. And get it done in 30 minutes or less. Combined with the right diet, this kind of exercise will get the most results for the least effort. You will gain more muscle and lose more fat than if you were going out for long slow jogs, and you'll feel great!

There are of course other factors that affect your health, including stress, sleep, clean air and water, and even genetics. But there's nothing you can do that will have more impact than eating a good diet and being active.

So be proactive, with both your money and your health. Take advantage of the incredible tax and wealth-building benefits of a Health Savings Account (HSA) by funding it fully every year. And take the right lifestyle measures to avoid the preventable diseases that affect most people as they age. Then in your retirement, you can enjoy the good health and accumulated wealth in your HSA that you so rightly deserve.

By Wiley Long - President, HSA for America (http://www.health--savings--accounts.com) - The nation's leading independent health insurance firm specializing in individual and family coverage that work with Health Savings Accounts.

Using a Health Savings Account to Buffer the Coming Medicare Insolvency

The Medicare Trust Fund will soon be out of money, and there will be no practical way for the government to continue to provide the level of benefits that current Medicare recipients receive. The result will be serious rations, waiting periods, and a reduction in benefits. If you wish to maintain your medical freedom, and have access to a high level of medical service, you must be prepared to pay for it yourself. The best strategy is to take good care of your health, and to build up medical retirement funds as large as possible by using Health Savings Accounts.

The Coming Medicare Insolvency

The total federal debt is now over $10 trillion. But if you also include the current unfunded liabilities of social security, Medicare, and other programs, the total federal debt is at least $54 trillion. This number has been confirmed in three separate studies - by the American Enterprise Institute, the National Center for Policy Analysis, and the Brookings Institution.

It is difficult to get a grasp of a number that big. That's $180,000 per person currently living in the United States. It is four times the U.S. Gross Domestic Product, the measure of the final value of all goods and services produced in this country in the course of a year.

As the program is currently structured it is unsustainable, and the fund is expected to be depleted by 2018. That is a mere 11 years from now. The shortfall in Social Security and Medicare revenues will continue to increase as the years go by - it will exceed $2 trillion by 2030. At that point, half of all tax dollars will have to go to Social Security and Medicare.

That clearly can't happen. Instead, the system will face massive cuts in benefits, probably in addition to large tax increases.

Who Will Pay Your Medical Expenses During Retirement?

So will Medicare be there for you? It depends on how old you are. Unless you are retiring in the next couple years, I certainly wouldn't count on it, particularly if you want to insure that you have access to high quality medical care during your retirement years.

Last year Fidelity Investments reported that the average couple retiring in 2006 would need $200,000 just to cover medical expenses during retirement. That estimate did not include the cost of over-the-counter medications, most dental services and, long-term care, if needed. And it did not include the charges that are currently paid by Medicare.

If we cannot depend on Medicare to be there for us, the only smart solution is to save as much money as possible. This will ensure that you can obtain the quality care you need. If you are not currently putting as much money as possible aside to pay for these expenses yourself, you are making a serious mistake.

What Is Your Solution?

As most readers already know, the very best tool for accumulating funds for future medical expenses is a Health Savings Account. An HSA is the only investment that provides a tax deduction when you deposit the money, yet never taxes the money if it is used to pay for qualified medical expenses.

Therefore, you should put as much money as possible into your Health Savings Account, and withdraw as little as possible. The contribution limit for 2007 is $2,850 for an individual, and $5,650 for families. Those over 55 can also contribute an $800 catch-up contribution. Making the maximum contribution each year will help you build a medical retirement fund that can be used to pay future medical expenses, tax-free.

Rather than withdrawing money from your account to pay for medical expenses as they occur, you should pay for medical expenses that are not covered by your health insurance, out of your own pocket. Save your receipts (for doctor visits, eye glasses, aspirin, etc), and leave your money in the account to grow tax-deferred. There is no time limit before you have to reimburse yourself, so you can make the most of this tax-free investment.

As soon as possible, you may also want to transfer some of the money into mutual funds. While some HSA administrators are paying interest rates as high as 5%, the only way you are going to really grow the account is to get a much higher return on your money. Many HSA administrators offer a discount brokerage option, so you can place your funds in virtually any stock or mutual fund.

For a family that contributes the maximum contribution each year, it is quite reasonable to assume an HSA account value well over $1 million after 25 or 30 years. Medicare may be broke, but at least you won't be.

"Medicare HSAs?"

The solution to the pending Medicare meltdown is very complicated, but it is clear that government-run medical programs don't work. The dismal results can be seen everywhere, from the former Soviet-bloc countries, to the broken down national healthcare systems of Canada and Europe. Medicare must be transformed into a program where seniors have an ownership interest in the money they are spending.

Replacing the government's obligation to provide benefits with a voucher that seniors could use to purchase health insurance from competing private insurers, and/or deposit into a "Medicare Health Savings Account," would bring market efficiencies and competition into the picture. This idea is endorsed by both the American Medical Association and the American Hospital Association.

Retirement HSAs may or may not ever come to fruition. But fortunately, HSA plans are available to those under age 65. If you do not yet have an HSA, get signed up for one now. You will lower your health insurance premiums, and can begin putting money aside for medical expenses you will almost inevitably incur during your older years.

By Wiley Long - President, HSA for America (http://www.health--savings--accounts.com) - The nation's leading independent health insurance firm specializing in HSA Plans that work with Health Savings Accounts.