How To Maximize The Value Of Your Health Savings Account

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[Zorlig]

You should be always putting the max into an HSA. You should always invest everything.

And you pay medical out of your normal checking account

[jeremyolsen]

I'm maxing it out. Not touching it, and having it all allocated to an s&p500 fund. I pay for all medical with credit card to get cash back bonus. Essentially 1% discount on medical bills. I always ask for a paid in full discount.

I will use my HSA to pay for medicare/insurance premiums and healthcare when I retire.

[rapfreak]

Each HSA will generally make you hit a cash balance before you can invest. It’s also quite possible your HSA will let you sell investments to replenish your cash balance. The first year or two can be scary but once you have enough saved for a year or two to cover maximum out of pocket expenses all worry should cease.

[ddellwo]

I am 56 and this year I dropped my 401(k) contribution a bit to begin funneling more money into my HSA account over the last 5 years of my working career. I’ll bulk it up as best I can and use it to cover medical expenses between retirement at 62 and Medicare at 65.

[shanathomas]

As a real safety net, I took my max out of pocket and doubled it. Anything over, I began to invest. If you were to have a medical emergency at the end of the year, the deductible would reset on Jan 1. That way you are covered.

[mikebarnes]

Another value maximizing technique they did NOT mention was if a large part of your out of pocket expenses are for vision or dental expenses, see if your employer has a limited purpose FSA account that you can allocate money to for these. Be careful as this MUST be a LIMITED purpose FSA and NOT a general purpose one. This will enable you to pay these expenses with pre-tax dollars while preserving your HSA for other future medical expenses (which keep in mind can include reimbursing yourself for your Medicare Part B premiums when you retire - an expense most of us will have no matter how healthy we are).

[MrGETINdizy]

I work for a UK/US wealth management firm and yours guys content is super informative thanks.

[marym]

2022 is my first yr I am able to open a HSA. Plan in fully funding it and am a little nervous. But am a healthy 57 yr old. Once I pass my 1st year maxing out HSA. How can I invest going forward after 1st year? Love u guys!! I've learned so very much!!! Mary

[DemetriPanici]

“Triple tax advantage” makes it sound so cool 😂

[UliSwag]

What do you mean by "liquid" ??

[mildsriracha]

My HSA only allows me to invest balance over $2, 000

[elizabethbaldwin]

The video fell a bit short of the “how to” I was looking forward to. Many of us have HSAs and fail to invest them because we have a way to get the money in and a way to get the money out, but have never been instructed on where to go or what to do in order to invest the funds for growth. Will you please do a video on that?

[theApeShow]

Trying to find the right ballance with it is the tough part. Food Inflation hasn't helped planning.

Just enrolled for second year and I little more than doubled the contribution as have had to pay a just two medical bills with cash onhand (ack) in late October. Hopefully will see some HSA gains this next year. New to this six figure game.

Thanks for the helpful tips and info.

[reversiontothemean]

I like to keep a year of max out of pocket on the available side and invest the rest. A tip for those that can't resist using the tax savings money in the account throughout the year, see if your budget can handle the FSA as well (up to 2850 next year). That way you still get the benefit of more pre tax dollars for medical in the present. Of course that is a use it or lose it account, BUT you can roll over up to 500 I believe.

[seanohara]

Good to hear. I'm wrapping up year two and was wondering the same thing. I've stayed liquid with the goal of saving up enough for the out of pocket max before investing. Maybe that's a bit more than is needed, but I guess it is about time to start investing.

[nickdoyle-achievefinancial]

I pay medical out of pocket to let it compound. My HSA is 100% invested in the S&P 500 (minus $500 min cash balance).

[alanyoung]

My thought is:

If you have high tolerance to risk, minimally keep enough in cash for a yearly deductible

If you have avg risk tolerance, keep enough cash for yearly maximum out of pocket

If you have low tolerance to risk, maybe keep enough cash for two years of maximum out of pocket.

[djpuplex]

My HSA forces a $4k cash hood than investing.