Fidelity HSA (HOW I INVEST IT FOR MAXIMUM $$$)

Exactly how I invest my Fidelity HSA! The HSA, or Health Savings Account, is the single most powerful wealth-building vehicle out there. I talk all about how the HSA (Health Savings Account) works, what is an HSA, my Fidelity HSA investments, and a thorough Fidelity HSA review.

***ATTENTION: I have a new Instagram and TikTok handle @itsrosehan ***
That's my official account, and I will NEVER message you about investment schemes, so please be careful and block & report any scammers posing as me.

TIMESTAMPS
00:01:10 - What is an HSA and how does it work?
00:03:40 - Fidelity HSA pros and cons
00:05:00 - Where the HSA fits into your budget
00:07:35 - How to invest your Fidelity HSA

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***BOOKS I RECOMMEND 📚***

I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)

The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)

InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)

Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)

Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)

Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)

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***MY FAVORITE MONEY TOOLS 🖤***

YNAB (I literally can't live without this budgeting app, so obsessed)

Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)

Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):

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DISCLAIMERS & DISCLOSURES ❤

This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

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SAY HI ON SOCIAL! 👋🏼

[itsrosehan]

***FREE DOWNLOAD: The Ultimate Guide to Brokerage Accounts

Also - please show me some love in the comments... for the YouTube algorithim 🖤

[timwatterson]

Love your videos. When I retired I noticed I was being charged $5.50 a month for my HSA with UMB. Apparently my company pays this fee for their employees but not their retirees. 🤬 I did some research and found out that Fidelity was not only a highly-rated HSA provider but they did not charge any fees. Switching was a no-brainer.

[ryanl]

Hmm.. a better way to keep the HSA growing is to pay for those medical expenses out of pocket and then reimburse yourself down the road (in retirement even) when you really need the cash. All you have to do is keep your receipts well documented. Love the content. Keep it up!

[skylinec]

*HSA Pro-tip:* Pay your health expenses with a rewards credit card. You can claim the expense on your HSA immediately afterwards to get your reimbursement in time to pay off the credit card charge while earning some points or cash back (and without needing a cash buffer to pay the CC statement.)

*HSA Pro-tip #2:* You can claim health expenses *anytime* thru your HSA as long as the expense was incurred while you had an active HSA account. (E.g. Claiming HSA reimbursement for a 2019 medical expense in the year 2030).

[dsvillalva]

Great video Rose. My employer funds part of my HSA, so it’s easy to get to the annual contribution limit. I I vest the funds and thankfully have not needed them yet for medical expenses. One other tip I have used, when I did need to pay for medical bills, I used a credit card offering the maximum points, then requested a withdrawal from my HSA and paid the credit card bill right away. Thanks for the video you’re an inspiration and absolutely gorgeous as well.

[thomasalexander]

Rose you are amazing. I am far from a novice investor (30+ years) but recommend you to anyone looking for investing info. You are enthusiastic and knowledge, keep it up. I also just recently discovered the benefits of an HSA. I treat it like another IRA. I also chose Fidelity because you can invest in anything. I maxed out last year and this year already so i could get that money invested. Another great "hack" is you don't have to use for health today. Pay out with your regular money and keep the receipts and turn in later when you do withdrawal the money. Let your invested HSA account make money over many years. I am not going to use it until I retire. The HSA along with my regular IRA is going to greatly assist in my retirement.

[gingicomingi]

Rose. I want to thank you for this video. I was aware of what an HSA was but never made the connection of how to configure my healthcare plan for my family to take advantage of it. I work at a company that is too small to cover my family. So I use the healthcare marketplace to find an affordable plan where the monthly premiums are not so high. Unfortunately, the deductibles are high and my family has not had the need to to doctors, except for the usual check ups. I find it sad that I pay over 7k in premiums this year and won't see any of that in the new year. But if I set up a HSA and choose a high deductible health plan for 2021 that supports HSA, I could begin saving and investing a portion of what I would have had to pay for healthcare to an account that can grow and, more importantly, roll over to the next year. So as I understand this, if I contribute to a HSA and accumulate the max for that year, it will roll over to the next year and allow me to double the amount? If so, that is great.

My question is how do I fund it with pre-tax income from my job if the healthcare plan and HSA are setup outside of my job? Is it a tax credit I get when I file my taxes?

Note: I figured it out. I can fund it with after-tax dollars and claim the deduction when I file my taxes. Love it.

[nigell.]

Hey look it's the woman who inspired me to open up a Roth IRA earlier this year and gave me the blueprint on how to do it. Great video Rose.

[jellydonutsrule]

My number one financial goal is, to put food on the table this week.

[emikami]

There's a few additional hacks to be aware of with HSA's. It is best to have it funded through payroll with your employer. The reason for this is that you not only avoid paying income tax on that contribution but you permanent avoid social security (6.2%) and medicare tax (1.45%) on that contribution when you contribute to an HSA through payroll deduction. If you contribute to your HSA from your bank account, you can deduct the contribution for income tax purpose but you permanently lost the ability to deduct the social security and medicare tax. If you're self employed, you can setup your own health insurance plan and you'll avoid the employer's side of payroll tax as well thus doubling that savings to a total of 15.3% just on self-employment tax. Unfortunately, your payroll might not let you direct money directly to Fidelity HSA so you may have to transfer HSA funds to Fidelity HSA once it gets to your employer's HSA custodian if that custodian charges too much in fees. That way, you continue to benefit from payroll tax deduction and get the lowest cost from investing in Fidelity HSA.

[calinalibertine]

You are my new favorite girl! I was getting annoyed of seeing all these be a millionaire bros that have been trending these last few years - but you have been so relatable as a woman! You seem so smart and thanks for putting this content out there!

[crystalbailey]

I’m going to start using my HSA to invest!

[JohnDoe-nkdd]

Thank you Rose, for putting this information out there about HSAs. I've been researching HSAs and it was like you were able to address some inaccurate assumptions I had about HSAs. That info will help me as I go forward and actually start an HSA.

[miguelmuniz]

I'm 35 and new investor here, your vids have helped a lot. Thank you

[eric]

Found your channel this week and already going through each video, you provide so much good value and reminders. Keep up with the amazing weekly uploads excited for future videos! Didn't know you can invest the funds with HSA

[courtneyw]

I know this was posted years ago, but i just want to let you know how thankful i am for this video and the guide. I've been a self employed massage therapist for years and never knew how any of this worked. THANK YOU!!! You broke it down so beautifully.

[NewHampshireJack]

Reading over the Fidelity site on the subject of HSA, I learned that you can use IRA money to fund your HSA. This would be a huge benefit. In my situation, I am converting funds from old IRAs to ROTH accounts each year but I have to pay taxes on the money I convert each year. If I used up to $4, 550.00 USD of the IRA each year to fund the HSA, it would be tax free. The only problem I have is, I am an EX-pat with over seven years off shore and counting. No point in flying back to the US and opening the required high deductible health plan just so I can fund an HSA tax free from an IRA. I wish I could I wish I may but there ain't no way!!! This is still extremely valuable information for those who can take advantage of it. A big round of applause @ Rose for bringing the information to us all.

[jessicantina]

Thanks for the video. My company is moving our HSA to Fidelity this coming year and I'm pretty excited.

[mindsinmotion]

I just learned about HSA, that you could invest in it, and chose my funds. Excellent content!

[yousseftrachen]

Thank you Rose for this video, now I understand HSA much better. Keep it up! A lot of love!