Where Did All Of Our Money Go?

Every couple of weeks I look at my pay stub and go through the growing list of deductions from my pay… taxes, 401K, and healthcare. Taxes have always been relatively consistent (too high and annoying but consistent), the 401K contribution is something that I set (this I hope to increase in the future), and the healthcare costs have gone up over time according to how many people are covered under my plan which now covers my whole family. However, it is this last significant deduction from my pay that is really annoying. Not because of the direct costs outlined in the deduction but because of the high costs that my wife and I have encountered recently.

For years, every month we have encountered a co-pay in one form or another, office or pharmacy, that is in addition to the insurance premium that we have already paid for that month. Over the past year, those required payments have become more frequently as we have had more doctor visits and prescriptions that needed to be filled. However, these last few months have been atrocious and it really makes you wonder where the money is going. Since our son was born, we have sent out checks for approximately $2500 just to cover the astronomical co-pays. I have seen enough doctors during my life that I have gotten used to the various expenses associated with healthcare but this is simply ridiculous.

I can hear some of you now saying this is why we need Obamacare. Well, in my experience, that is a load of crap! While the delusional utopian concept is intriguing to many it is not something that fits into the confines of reality. This is why we have seen those premiums increase faster since the bill was signed than at any other point in history. Additionally, due to the ridiculous requirements therein, not only have the premiums gone up but the co-pays have seen a sharp increase as well.

Of course, there is also the basic employment fallout. I know for a fact that many employers have set limits on hours simply to avoid having to offer healthcare benefits. Frankly, I have no problem with employers not offering benefits to full time employees so long as said employees understand that they will not be offered. So, instead of someone getting paid for 35-40 hours per week, they are limited to 29.5 hours per week. In the end, they still aren’t getting benefits and now have less money in their pockets.

Furthermore, there are some benefits that were being offered to those who worked 30 or more hours per week. A perfect example that I have seen is that of extended leave. However, because hours are now eliminated that benefit disappears as well. So not only are you getting paid less at the end of the week but you are also losing some of the benefits that you once had. An when you go back to the original gripe in this post, you are also going to pay more for insurance and more in co-pays. You couldn’t afford to get sick before and you still can’t afford it now. Thanks Obamacare!

Maybe we should focus on making sure people can have jobs where they can work full time hours. Maybe we should stop regulating and forcing coverage on people and stop strong arming companies to cover employees. Maybe we should address the high premiums and co-pays that have become the accepted norm in this country. Maybe we should provide a true freedom to choose to have coverage and what coverage to have, whether someone is willing to take a job without healthcare benefits, and whether an employer offers healthcare benefits. Maybe this is the change that we really need!

Investing Again

When I started at my current company there were many things that were discussed. The firm was newly formed when I first walked through the door in September 2013. In fact, the owner of the company was still waiting for the cable company to arrive later that afternoon to set up the internet. It was an interesting experience and much different from the previous conversation I had with her.

It was during that initial discussion when we talked about the clients, my role in the company, and many of the other benefits that would be part of my employment including healthcare, profit sharing, and a 401K (among others). Every salary position I have ever had, and then some, have offered healthcare so that was not a surprise to me. However the other two piqued my interest and were really bonuses to the position that I was not expecting.

Since that time over a year and a half ago, she has been true to her word. While none of us expected any sort of profit sharing at the end of 2013 we weren’t really holding out for 2014 either. After all, we are a new company. However, we were all pleasantly surprised at the end of the year when we each received an extra deposit into our accounts (which was particularly useful at that point in time).

Toward the end of last year we also continued our conversations regarding setting up a 401K. It had taken some time but things were progressing and as the calendar turned over we all started contributing to the future. While we don’t have much extra at the moment, I started with a small contribution from each pay check.

While I have had investment accounts in the past, this was my first time having a 401K. Previous accounts have long since been liquidated to pay for graduate school and other expenses. Many would consider this a tremendous loss but given the fact that I finished graduate school in the spring of 2008, it wasn’t a bad way to use the funds.

Since that time, my ‘investments’ have been on a much smaller scale and consisting of hard assets. I honestly can’t recall how many times I bought silver (and a tiny bit of gold) over the past decade but it is safe to say that I didn’t lose money or break even. A coin here and there can add up especially before the market shifted and the prices began to spike.

All the small items were nice and served a purpose when we needed that little extra. Now, it is a great feeling to be contributing to our future even though it may be one small deduction from my pay every couple of weeks. It may not seem much at the moment, it never does, but it will certainly add up in the end (especially when I start decreasing my take home pay). And it sure beats flipping coins.