Bob Hazard

Mr. Hazard is an Associate Editor of this paper and a former president of Birnam Wood Golf Club. Ball of Confusion

I’m confused. Prior to May 25, law enforcement officers, along with firefighters, doctors and nurses, were celebrated as America’s heroes for showing up as first responders when other workers were told to shelter-in-place. What has happened to unleash a flood of angry protestors with signs that read “Eat the rich. Hang Bankers”; “F*** Capitalism”; and “Police are Pigs”?

Where are the voices of tens of millions of Americans who are horrified at what happened in Minneapolis, but who support law enforcement, fight for social justice every day, live in peace with their neighbors and love this country? Instead, we are bombarded with the message that our “thin blue line” is inherently brutal, and worse, irredeemably racist. And just generally needs to be scrapped.

In response, President Trump just signed an executive order “Safe Policing For Safe Communities” to establish new protocols (and abandoning others) to establish better policing policies in our nation. The order promotes better social services to aid mental health and homelessness, create a federal database to monitor law enforcement conduct, and create grant programs for community-supported law enforcement models. So the federal government is responding. But are the states and cities doing their part?

Support for Peaceful Protestors

New York City’s longest serving Police Commissioner, Ray Kelly, points out that police are in the business of protecting the right of every American to peacefully protest. Kelly sensibly asks, “If reformers want to defund or dismantle police, or allow police stations to be burned down, who will show up when people or property is threatened?”

Public Safety and Personal Responsibility

According to Walter E. Williams, a Black Professor of Economics at George Mason University and a frequent editorial correspondent: “The first responsibility of elected officials who run our cities, is public safety. Some of the most dangerous big cities are St. Louis, Detroit, Baltimore, Oakland, Chicago, Memphis, Atlanta, Birmingham, Newark, Buffalo, and Philadelphia.” The most common characteristic of these cities is that for decades, all of them have been run by progressive Democrats. In my mind one of the worst bigotries is the bigotry of low expectations. I believe these Democrat electeds need to have higher expectations… and hold themselves to these higher expectations as well.

An increased flow of federal subsidies has not ended poverty. Failing inner city schools have not closed the gap in education. It can be argued that Black Americans, more than any other ethnic group, have been sentenced to a life of generational and cyclical poverty in the failed urban ghettos of America in return for the surety of

HAZARD Page 264

HISTORIC LOW RATES! 30 Year Fixed at 2.75%

Loan Amount Payment APR $300,000 ..........................$1225 ....................................... 2.94% $400,000 ..........................$1633 ........................................2.91% $500,000 ..........................$2042....................................... 2.89% $600,000 ..........................$2450....................................... 2.90%

Since graduating from UCSB in 1992, Christopher has worked with local individuals and families as a financial planner. He is a Vice President with UBS Financial and holds the CFP, CIMA, and CPWA credentials. He can be reached at christopher.t.gallo@ubs.com or 805-730-3425. Health Savings Accounts

The recent CARES act allowed for a special mid-year adjustment to benefits elections to allow employees to adjust how much they spend on medical insurance and fund their medical cost savings plans. Given that studies estimate that couples over age 65 could spend over $350,000 on medical costs – including Medicare – during retirement, funding Health Savings Accounts (HSAs) can help save for these costs and are vastly underutilized by most of us. They benefit from a triple tax-free status for qualified expenses and are offered without income limits to any individual or family covered by a high deductible health plan (HDHP).

What is an HSA?

It is a pre-tax savings account intended to cover health care expenses. Funds that go into the account grow tax free and also allow tax free withdrawals as long as proceeds are used to cover health care costs.

Who qualifies to fund an HSA?

Any individual or family that is under the age of 65 and has an HDHP as their primary medical insurance. An HDHP for 2020 is defined as a health plan with a minimum deductible of $1,400 (individuals) and a minimum of $2,800 for families. Out of pocket maximums must be less than $6,900 for individual plans and $13,500 for family plans. Out of pocket maximums do not include health care premiums. Many health care plans now fall into this range.

If your employer offers an HSA plan as part of your benefits package it is more convenient for pre-tax contributions. However, even if your employer does not offer an HSA, if you are covered by an HDHP, you can fund your own HSA with all of the same benefits.

What is the maximum contribution allowed to HSAs?

In 2020, individuals can put a maximum of $3,550 and families can add $7,100. Individuals over 55 can add $1,000 annual catch up contributions. The pre-tax benefit of this is massive since this is what is called “above-the-line” in tax terms: the contribution directly reduces your taxable income, just like a 401(k). It is much more valuable than a deduction which may not be realized in savings.

What happens once the money is in an HSA?

There are a few options with the money that has been contributed to an HSA. Of course, you can use it for qualified medical expenses: doctor’s visits, copays, prescriptions, Medicare premiums (Parts B and D) and LTC insurance premiums are among the costs that qualify. Note that normal health care premiums are not considered qualified.

A better plan, if you can afford it, may be to let the contributions collect until you are retired and you can them use them for medical costs. Many plans offer investment menus similar to a 401(k)for longer term investments. A reminder that any of the gains or interest earned inside of an HSA is not taxable.

How does money come out of an HSA?

As mentioned before you can use the funds anytime for qualified medical expenses without any tax due.

When you reach the age of 65, it becomes even more flexible. You can still take tax-free qualified distributions, but you can also withdraw money for any reason and only pay normal income taxes on the withdrawals.

With the potential triple-tax benefit, ever-rising health care costs and the flexibility of withdrawals, HSAs are an important tool for both current expenses and long-term retirement planning. •MJ

WENDY GRAGG

John Entezari Unison Financial Group President CA BRE LIC.# 01113108 NMLS# 326501 email: johne@west.net

805-689-6364

Rates as of 6/16/20.Owner occupied only. FICO OVER 700 Loan to value at 70%. Minimum loan amount of $200,000. California Department Of Real Estate License#01818741.NMLS #339238. Not all borrowers will qualify.Programs,rates and APR'S subject to change without notice.