Many Americans simply don’t have any savings at all. According to Bankrate data from January 2022, 56 percent of Americans would not be able to cover an unexpected $1,000 bill with current savings.
But did you know that prior to 2016, Floridians with disabilities were unable to save without fear of jeopardizing the critical benefits that they rely on?
Individuals receiving Supplemental Security Income or Medicaid are subject to a $2,000 asset limit – but with an ABLE account, they are able to become savers and investors for the very first time.
Florida’s qualified ABLE program, ABLE United, believes that every individual with a disability deserves the opportunity for an independent life – and with these tax-advantaged savings and investment accounts, thousands of Floridians with a disability can now secure their future without impacting their benefits.
These accounts are designed to cover a wide range of expenses, with the opportunity for the earnings to grow tax-free.
Now that Floridians with disabilities have the power to save (and spend) for things they need and want, it’s important to begin establishing a financial plan for success. We collaborated with ABLE United Brand Ambassador and Keith Seago, Certified Financial Planner, to provide these eight tips:
- Begin with a budget. Without knowing where we are spending, we can’t begin to start saving.
- Establish savings goals. Consider short term (0-3 years), medium term (3-5 years) and long term (5+ years).
- Open accounts. This includes savings accounts (liquid, safe), retirement accounts (investments for the long term, tax-advantaged), investment accounts (consider for excess savings, after establishing savings and retirement accounts) or ABLE accounts (allows individuals receiving benefits like Supplemental Security Income and Medicaid to save above the $2,000 asset limit).
- Determine the investments that make sense for you and establish your risk tolerance. Consider a professional advisor.
- Address the “what ifs”. This includes death, disability/incapacity, health crisis, hurricanes, fires, etc.
Now all that’s left is to sign up, save up – and when you enroll before November 11, you’ll receive a FREE $50 contribution in your new ABLE account.
To further enhance your financial plan, we recommend that you take the time to fully optimize your ABLE United account:
- Enter the annual contribution goals for the account. Take the time to think about what you want or how you plan on using their ABLE account.
- Setup recurring contributions. Link your bank account and setup daily, weekly, monthly, or quarterly contributions so you don’t have to think about it.
- Create your gifting page. Use it like a GoFundMe by setting a goal and sharing with individuals and/or organizations as a way for them to give gifts instead of physical presents for a birthday or holiday.
It’s more than just saving; it’s investing in a brighter future.
Enroll in an ABLE United account between September 19, 2022 and November 11, 2022 on ableunited.com, and you will receive a $50 contribution into your new ABLE United account. This offer only applies to new accounts for beneficiaries who have not had an account with ABLE United previously and are opened between September 19, 2022 and November 11, 2022. Funds earned will be deposited directly into your ABLE United account 6-12 weeks after the promotion ends. ABLE United is a savings and investment plan that may be used to set aside funds for qualified disability expenses. Funds may be used tax-free to pay for any qualified disability expense. This promotion is limited to the first 1,000 accounts. ABLE United reserves the right at its sole discretion to disqualify any individual it finds to be in violation of the guidelines or any laws, or to be attempting to undermine the legitimate operation of the promotion by cheating, hacking, deception, or any other unfair practices. Please review the Program Description and Participation Agreement before opening an account.