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HSA: How to Beat Taxes Like the Rich

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The rich have a different focus. They're not worried about saving for retirement—they’re worried about passing their wealth to heirs without paying too much in taxes.  Taxes are their biggest enemy. And they've figured out how to avoid them. For the rest of us, we don’t have millions to protect. But there’s a powerful tool we can use to save on taxes. It’s called the Health Savings Account (HSA).  Here’s how it works. True Story  I recently went to the eye doctor. Here’s what I spent: Extra test: $39 Ray-Ban frames: $375 Total cost: $414 that I paid with my HSA card. Because the money in my HSA is pre-tax, I didn’t need to earn as much to cover the cost. Pre-Tax vs. Post-Tax Spending Let’s say you're in a 24% federal tax bracket, and you also pay 5% state tax. Your total tax rate would be 29%. Without an HSA (Post-Tax): To pay $39 for the eye test, you’d need $54.93 before taxes.  To pay $375 for the frames, you’d need $528.17 before taxes.  For the total ...
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ESG Investing: How Your Money Can Make a Difference

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Most investments sit there, growing without much change. But imagine your investments helping the planet, supporting fair treatment of workers, and promoting ethical business practices—all while growing your wealth. 

That’s ESG investing!

What Is ESG?

ESG stands for Environmental, Social, and Governance. It’s about investing in companies that are good for both the world and your wallet. 

Let’s break it down:

  • Environmental (E): This measures how a company impacts the planet. Do they reduce waste, use clean energy, or limit pollution?
  • Social (S): This focuses on how a company treats people—employees, customers. Are workers paid fairly? Do they ensure safe working conditions? Do they support community development?
  • Governance (G): This looks at how a company is run. Is it transparent? Are leaders ethical? Do they protect shareholder rights?

Why Does ESG Matter?

Companies with strong ESG practices tend to perform better in the long term. They’re usually better managed, face fewer risks, and attract more loyal customers.

Take Patagonia, for example. They’re known for their strong environmental focus. They use recycled materials, promote sustainability, and encourage customers to buy less. 

This creates a loyal customer base and drives long-term profitability. Companies that focus on ESG are often more forward-thinking and less likely to get into scandals or face financial risks from poor environmental practices.

Does ESG Investing Work?

Yes, it does. ESG companies often perform better financially, especially in tough times. During the COVID-19 pandemic, many ESG funds outperformed traditional investments. 

Why? ESG companies tend to be better managed and more resilient. They focus on long-term goals and sustainability, making them more adaptable to challenges.

How to Start ESG Investing

  1. Do Your Research: Look for companies with clear, transparent ESG practices. Many companies provide reports on their sustainability efforts, so check these to see if they align with your values.
  2. Avoid Greenwashing: Be careful of companies that claim to be "green" or sustainable without backing it up. 
  3. Use ESG Ratings: Companies like MSCI provide ESG ratings that can guide your investment choices. These ratings give you an easy way to see how companies perform in the three ESG categories.
  4. Start Small: If you’re new to ESG investing, start by looking for ESG-focused mutual funds or ETFs. These allow you to invest in a diversified group of companies, reducing risk while aligning with your values.

Make Your Money Matter

As young professionals, you have the power to make a difference. Your investments can support companies that prioritize the planet and people. 

So why not choose investments that not only grow your wealth but also help create a better world?












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