It’s Open Enrollment Season - Don’t Miss these Opportunities
October and November are the open enrollment months for many companies. If you are employed at a company that offers benefits, this is your window to make updates.
Typically, you cannot change your benefits outside of this period unless you experience a qualifying event - such as a new baby or a change in marital status.
Review your latest Financial Plan
During the planning process, I often give clients a checklist of items to put on their calendar so they don’t miss important elections during open enrollment. Take a look back at your latest financial plan to see if there were recommendations tied to your workplace benefits.
Common Benefits to Review
Enroll in Legal Services
This is becoming more and more common and it is significantly cheaper than paying for an attorney (on the order of $200 versus $2,000). It is particularly helpful if you need to create or update your estate planning documents. If you don’t document who you want to receive your assets, the courts will decide - and it may not be the outcome you would have chosen..
Buy Additional Life and Disability Insurance
If we determined you needed additional coverage, and you decided to wait until open enrollment, don’t forget to bump up the coverage now.
Most employers provide a “basic” disability benefit, but many also offer a buy-up option you have to elect during open enrollment. This higher level of coverage is often essential, and in most cases virtually everyone should elect it. The same goes for supplemental life insurance if your family’s needs exceed the basic coverage.
Health Plan Changes
If your needs have changed, this is the time to revisit your health plan. While I usually let clients make the final choice based on their doctors and preferences, I can help you understand supplemental savings options—such as a Health Savings Account (HSA) or Flexible Spending Account (FSA) - to make sure you’re maximizing both your benefits and tax savings.
A Note on 401(k) Changes
One of the most common misconceptions I hear is, “I’ll wait until open enrollment to make my 401(k) changes.”
Unlike insurance and most workplace benefits, 401(k) contribution changes can be made at any time of year. Don’t wait if your plan recommends adjusting your savings rate or investment allocation. Open enrollment is about insurance, legal, and other benefit elections - not retirement contributions.
Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients in Virginia Beach, throughout San Diego county, and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.
Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in Virginia Beach, San Diego, and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.