How to Invest in an HSA (Health Savings Account)

A Health Savings Account (HSA) offers better tax advantages than any other type of account. The catch is that the money must be used for Qualified Medical Expenses to avoid taxes (and a possible 10% penalty)

In this video I walk through 3 aspects of HSAs, 6 strategies on how to use an HSA, and how best to invest money in an HSA based on the strategy used.

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#retirement #investing #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.

[rob_berger]

HSA = Health Savings Account. Don't ask me why I called it a Health Spending Account. Brain fart!

[gapey]

This is one thing I wish I had been doing much earlier. Beginning this year I'm maxing out my contributions, investing it and saving my receipts for later. I've learned so much from binging on your videos the last few months.

[davidrogers]

Good point about keeping receipts if you are not using for current health care expenses. I let the cash balance build to equal my annual out-of-pocket before insurance pays 100%. That's about $11, 000. After that I invest the rest and plan to use in retirement and possible LTC.

[billywatson]

Thanks. I love this video, and your video on VOO and the Cash Money Account.

[markmorris]

As always thanks for another good video, Rob! Haven't seen content on how to invest an HSA before and this is great food for thought.

[joevelasquez]

Wow! Rob love the Q&A short videos.

[SGyru]

I just started my HSA last year. Great video and thanks again for everything you do Rob!

[shosansah]

Another great video from Rob! Just realized i can save receipts and claim later. Thank you Rob!

[jarrod]

One thing I always point out when HSAs come up is that state tax treatment differs. My home state California doesn’t recognize them so part of having a HSA is manual bookkeeping of cost basis (since no provider does this for you). You also need to specify state adjustments to income to undo the federal deductions and to declare dividends as they occur

[fredswartley]

I'm currently investing in an HSA to lower my tax liability since I am self employed. But I like the idea of investing the money and then using it for retirement expenses.

[OnCashFlow]

I'm going to max out the HSA for as long as I have access to it, I see it as on par with a Roth IRA.

[johnhenderson]

Decided to go with the HSA with open enrollment. It started July 1st and will give me at least 2 years before I retire. Will be transferring funds from Health Equity to my Fidelity HSA once my $2k minimum balance is there. My employer will start a family off with $2k in their HSA which is nice for the minium.

[ncooty]

I really wish you'd have talked about the prerequisites for HSAs. Here, you talked about it as if it's akin to an IRA, but my understanding is that it's more like a 401(k), in that it depends on employers' offerings.

[Direct.injection]

Left Lively for Fidelity. So far going great and was ready to transition

[jcman]

Bought all Tesla several years back in my HSA, was a good decision

[kangre]

Thank you so much Rob. This was very helpful.

[RetrieverTrainingAlone]

Lively does have an annual fee of $24 or a minimum $3000 cash account in order to invest with LIvely's Schwab HSA account portfolio.

[lb]

You don't have to wait until you leave your company to move your HSA dollars. If your company allows, and my
Company does, you open an HSA brokerage account at Fidelity and do a direct transfer. Then you have unlimited options.

[induprabhu]

Video about California HSA, please ...and how to invest for tax deferral?

[scottwillis]

Great video Rob glad I found it.
Question: I have about 20, 000 in my HSA should I invest the entire amount in a fidelity index fund? TIA