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.

Although most other issue to keep in mind right here about it ‘s the most other way that you can come out in the future, which is to have anyone else pay back people money

Try to decide ways to put shorter in your FSA otherwise get boss focus, otherwise compensate your in a different way, or buy stuff it is possible to in reality have fun with sooner or later for your body. There are plenty of items you can use an enthusiastic FSA to possess. You can find all types of qualified expenses that can be used FSA currency to have.

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 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 http://www.paydayloansmichigan.org/ 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.

Thus, when you’re taking out fully financing on six%, that is fairly typical getting med college or university loans, therefore secure ten% and keep maintaining seven% after-taxation, then you’ve turn out to come

Of course, toward a danger-adjusted base, it’s pretty tough to overcome six%. 6% secured are a fairly glamorous get back indeed. As if you appear at the protected investments out there, the audience is talking about dos% at the best is exactly what you’re getting to the those individuals, apart from I securities in fact it is most likely temporary.

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.