Details for EDWARD JONES - NORTH - Ad from 2021-02-21

Remote Work May Offer Financial Benefits
full time or at least a few days a week,
how might you benefit? Here are a few

Mark D. Berghuis, CFP®, AAMS®,
Financial Advisor
Edward Jones Investments

During the COVID-19 pandemic,
many of us have been forced to work
from home. But once we’ve moved past
the virus, many workers may continue
working from home. More than onethird of companies with employees
who started working from home now
think that remote work will stay more
common post-pandemic, according
to a Harvard Business School study.
This shift to at-home work can affect
people’s lives in many ways – and it may
end up providing workers with some
long-term financial advantages.
If you’re one of those who will
continue working remotely, either

• Reduced transportation costs –
Over time, you can spend a lot of
money commuting to and from work.
The average commuter spends $2,000
to $5,000 per year on transportation
costs, including gas, car maintenance,
public transportation and other
expenses, depending on where they
live, according to the U.S. Bureau of
Economic Analysis and the U.S. Census
Bureau. If you are going to work
primarily from home, you should be
able to greatly reduce these costs
• Potentially lower car insurance
premiums – Your auto insurance
premiums are partially based on how
many miles you drive each year. So, if
you were to significantly reduce these
miles by working from home, you
might qualify for lower rates.
• Lower expenditures on lunches – If
you typically eat lunch in restaurants or
get takeout while at work, you could
easily be spending $50 or more per
week – even more if you regularly get

coffee drinks to go. By these figures, you
could end up spending around $3,000 a
year. Think how much you could reduce
this bill by eating lunch at home during
your remote workday.
• Lower clothing costs – Despite
the rise in “casual dress” days, plenty
of workers still need to maintain
appropriate office attire. By working
from home, you can “dress down,”
reducing your clothing costs and
dry-cleaning bills.
As you can see, it may be possible
for you to save quite a bit of money by
working from home. How can you use
your savings to help meet your longterm financial goals, such as achieving
a comfortable retirement?
For one thing, you could boost your
investments. Let’s suppose that you
can save $2,500 each year by working
remotely. If you were to invest this
amount in a tax-deferred account,
such as an IRA or your 401(k) or similar
employer-sponsored plan and earned
a hypothetical 6% annual return for
20 years, you’d accumulate more than
$97,000 – and if you kept going for an

additional 10 years, you’d have nearly
$210,000. You’d eventually pay taxes on
the amount you withdrew from these
accounts (and withdrawals prior to
age 59½ may be subject to a 10% IRS
penalty), but you’d still end up pretty
far ahead of where you’d be otherwise.)
You also might use part of your
savings generated by remote work
to help build an emergency fund
containing a few months’ worth of
living expenses. Without this fund,
you might be forced to dip into
your retirement accounts to pay for
something like a major home repair.
Becoming an at-home worker will
no doubt require some adjustments
on your part – but, in strictly financial
terms, it could lead to some positive
This article was written by Edward
Jones for use by your local Edward
Jones Financial Advisor. Edward Jones,
Member SIPC
To schedule an appointment to meet
with Mark, call 262-551-8089 or email: