For Spenders, the Down Market Has an Upside.

Though saving money during tough economic times is always a smart idea, sometimes a little splurge here and there does not hurt either. Need a short trip to escape the daily grind? Now may be the time to start looking.

http://finance.yahoo.com/banking-budgeting/article/113286/spenders-down-market-has-upside-smartmoney?mod=bb-budgeting

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Best Belly-Fat Buster

Which should you cut back on first if you want to trim belly fat — carbs or fat?  You might think that dietary fat goes straight to your middle, but research suggests that too many empty carbs is really the first thing to do your belly in.

Dueling Diets
In a study, healthy overweight men and women went on two consecutive 8-week diet interventions. The first diet period was focused on weight maintenance and the second aimed for weight reduction by cutting calories. Through each phase, the participants followed either a reduced-fat or a reduced-carbohydrate diet. When all was said and done, both groups lost weight. But it turned out that the group on the reduced-carb diet — which, incidentally, also focused on quality, low-glycemic-index carbs — lost 11 percent more deep belly fat compared with the group on the low-fat diet. Plus, the low-carb group lost more fat mass overall.  Shrinking the amount of belly fat you have is always a good idea for your health, because too much visceral — or intra-abdominal — fat increases your risk of diabetes, stroke, and heart disease.

Information from RealAge.com.  Follow this link for tips and tricks to lose the fat:  http://www.realage.com/tips/cutting-carbs-reduces-belly-fat?eid=1010643054&memberid=16585953
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We’re Growing!

The Safe Harbor Family broke ground for Phase II of the Safe Harbor Center on Thursday, July 21.  Phase II will consist of 7 executive suites and 2 virtual offices in addition to a reception and break area.  There will also be a salt water fish tank in Phase II which is a favorite gathering place for Phase I tenants, employees, and visitors.

Phase I tenants and Safe Harbor Benefits employees celebrated this long anticipated day with a wonderful catered Mexican luncheon.

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IRS Increases 2011 Standard Mileage Rates

The IRS released Announcement 2011-40 that increases the optional standard mileage rates due to recent gasoline prices. Effective July 1, 2011 through December 31, 2011, the new six-month rate for computing deductible business, medical, and moving expenses will increase by 4.5 cents.

Type of Reimbursement 1/1/11 – 6/30/11 Effective 7/1/11
Business Mileage 51 cents per mile 55.5 cents per mile
Medical & Moving Mileage 19 cents per mile 23.5 cents per mile

As a reminder, the use of a personal automobile to obtain medical care may be a deductible medical expense if primarily for, and essential to, medical care. This mileage is an eligible health flexible spending account (FSA) expense, and employers may include mileage as an eligible expense under their health reimbursement arrangement (HRA). The new mileage rate is for eligible expenses paid or incurred on or after July 1, 2011.

For additional information regarding the standard mileage rate increases, visit the IRS website at http://www.irs.gov/pub/irs-drop/a-11-40.pdf.

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Hatch Introduces Legislation to Strengthen, Expand HSAs, FSAs

Provides American Workers, Retirees with Common-Sense Way of Helping Pay for Health Services

WASHINGTON – U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, today unveiled the Family and Retirement Health Investment Act of 2011, bicameral legislation to strengthen and expand Health Savings Accounts (HSAs) and Flexible Spending Arrangements (FSAs) for American workers and retirees. Companion legislation was introduced in the U.S. House of Representatives by U.S. Rep. Erik Paulsen (R-Minn.).

“This legislation will provide American workers and retirees with a common-sense way of improving access to quality, affordable health care,” said Hatch. “These health plans empower Americans to take control of their health and well-being. Health Savings Accounts and Flexible Spending Accounts allow consumers to make informed decisions about their health care and will help restrain costs by putting people in charge of their health choices. ”

This year health care costs are expected to rise by eight percent, more than double the rate of inflation. HSAs and FSAs provide individuals with opportunities to put away tax free savings for everyday medical expenses.  When Congress first made HSAs available, these plans only covered 454,000 lives.  Today, more than 10 million people are covered under a health plan that is eligible for an HSA. 

The Family and Retirement Health Investment Act of 2011 will streamline these health care products and simplify them for American families, seniors, and entrepreneurs.

Specifically, the legislation will:

• allow a husband and wife to make catch-up contributions to the same HSA;
• remove the onerous new restrictions on the use of HSA and FSA dollars for the purchase of over-the-counter drugs;
• allow individuals to roll-over up to $500 from their FSA accounts;
• clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible;
• reauthorize the use of Medicaid health opportunity accounts;
• promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better diet;
• allow seniors enrolled in Medicare Part A to continue contributing to their HSAs; and
• allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars

Source: http://finance.senate.gov/newsroom/ranking/release/?id=6d950164-fe1a-4a6a-b43e-d2ee142841af

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Sitting Can Be Dangerous

The human body is meant to move. That is the reason why doctors increasingly warn that sitting for long periods of time threatens wellness. Standing, on the other hand, promotes health. But exercise is the best. Sitting is, in fact, an independent risk factor for several illnesses. It raises risk all on its own – whether a person exercises or not.

Several large-scale studies show that people who spend most of the day sitting are more likely to have diabetes, cancer or heart disease. They are more prone to heart attack and stroke and more likely to be overweight. With four hours of sitting, the genes that regulate the amount of blood sugar in the body have begun shutting down. Some studies show the same with three hours of sitting and even one hour. In fact, for every two hours spent sitting, the chance of developing diabetes goes up by 7 percent. When the large muscles are not used, blood flow slows. Fewer feel-good hormones circulate. At least that’s one theory about how sitting ups the odds of depression.

Metabolism slows, too. A person burns an extra 60 calories a day by standing most of the time instead of sitting. Any kind of movement is better than no movement, say the experts. A few years ago, one study showed that the simple act of fidgeting burns 350 or more extra calories a day.

Simple lifestyle changes can help your clients’ health. Encourage your clients to take the family for a walk after dinner, stand to talk on the phone, place exercise equipment in front of their TV – and use it. At work, find a reason to get up and walk every hour – even if it’s to the water cooler.

Members should always consult a doctor about specific health concerns.

Sources: Mayo Clinic, University of Missouri at Columbia

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Even our Government knows that quitting smoking is hard

…so they are offering some help! 

Please visit their site at http://www.smokefree.gov/default.aspx.  Whatever stage you are in, from thinking about quitting, to trying to stay quit, they have something on the website that can help. There is also information about research studies if you need that extra incentive to stop.

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Ways To Save Money When You Travel

~ Money is only loaned to a man. He comes into the world with nothing, and he leaves with nothing.        —Will Durant

Whether you’re planning a summer vacation or a weekend getaway, travel costs can add up quickly. Here are some tips for keeping expens­es down:

  • Check fares on Tuesdays. Most airlines launch their sales on Monday evenings, according to Farecompare.com, a website that tracks price trends. Other airlines follow suit by the next day. Of course, you never know when a sale is going to happen, so start looking for the best deals three to four months ahead of time.
  • Then negotiate. Airlines, hotels, and car rental agencies will sometimes offer you a better rate if you make a reservation and then show you can get a better price elsewhere. Be sure you can document the rates when you call.
  • Travel after the holidays. You can often get better prices if you’re willing to travel the weekend after Thanksgiving weekend, Memorial Day, or any other big holiday when reservations are in greater demand and thus more expensive. Traveling during off-peak times also cuts down on the hassles of crowds.

–Smart Choice Agents

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Senate Sends 1099 Repeal Bill to President’s Desk

On Tuesday April 5th, there was a huge win for small business because additional new government red tape has been stopped before it was enacted.  The  U.S. Senate passed H.R. 4, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011,” to repeal the 1099 reporting requirement newly required under the recent health care reform law. Since the House of Representatives had already passed the bill by a 314-112 vote on March 3, 2011, it now heads to President Barack Obama’s desk for his signature. President Obama is expected to sign the legislation.

The 1099 reporting mandate was intended to increase tax compliance by requiring businesses to file a 1099 for all business-to-business transactions for goods or services totaling more than $600 cumulatively over the tax year. Businesses would be forced to track down and record the name, address and taxpayer identification number of each vendor.   Then the small businesses would then have to file a 1099 with the IRS and send a copy to each vendor at the end of the year. This burdensome mandate would have created a mountain of paperwork for small businesses and diverted precious resources away from business expansion and job growth.  Many other new twists of the health care reform law may be eliminated before they become required in 2014.

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Employee Loyalty is Associated with Greater Employee Satisfaction with Benefits

{From the 9th Annual Study of Employee Benefits Trends by MetLife}

Benefits can be an effective tool for the task of building loyalty and job satisfaction.  Study findings reinforce the connection between satisfaction with benefits and employee loyalty.  In fact, employees who are satisfied with benefits are nearly three times as likely to express a strong sense of loyalty to their employers.

Benefits dollars work harder when employees perceive their benefits program as valuable.  But perceived value depends on benefits being relevant to an employee’s personal needs, and this requires employers to take a closer look at workforce realities.  While nearly all workers were impacted by the recession, they were at different stages of life when it hit.  The resulting shifts in personal fancicial paradigms are also likely to be different for various age groups.  The Study highlights how this can translate into different generations of workers having different priorities and views about what benefits should include.

For a complete copy of this report, including Generational Benefits Strategies, contact Victoria Weir in our office. (Victoria@safeharborbenefits.com)

Safe Harbor can help you put together a creative benefits package with flexibility and customization to maximize benefits within your budget and strengthen employee appreciation.

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