Flexible Funding

Updated: 11 March 2024

What Does Flexible Funding Mean?

Flexible funding is a type of pooled investing in which a money manager has the ability to change the investments from asset class to asset class as they see fit. This differs from other types of funds in which only one asset class is invested in.

Many insurance companies invest capital through flexible funding.

Insuranceopedia Explains Flexible Funding

Flexible funding can also refer to the process of creating a pre-tax spending account for health-related expenses that are not covered by insurance. These accounts can be exempt from income taxes; however, they have to be used only for specific types of expenses to be valid. Expenses related to dependent care, for example, would qualify.

Flexible funding can help people to save money on income taxes when they are forced to pay a lot for non-covered medical care.

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