The Real TRUTH About An HSA - Health Savings Account Insane Benefits

***Lively has started charging $24 or forces you to hold a minimum of $3,000 in their HSA. Due to this change, I do NOT recommend them any longer. Please do not use this company. A Fidelity HSA is currently free at this time***

Welcome to the guide on how an HSA can change your financial life forever. In this video, we're going to go over everything you need to know about a Health Savings Account so that you can turn it into the ultimate wealth-building machine.

We'll be talking about what an HSA is, the contribution limits for an HSA, how to supercharge your health savings account, how to invest money within your HSA, a comparison of what it looks like if you invest your money vs. not investing your money, triple tax savings on investment income (interest), tips and tricks to maximize a health savings account, mistakes to avoid with an HSA, and much more!

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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

[JarradMorrow]

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[barrellcooper]

Small point of clarification: the HSA contribution does on the tax return as an adjustment to income, not a deduction. This means it lowers your "adjusted gross income". It's better than a deduction.

[niasteadley]

Perfect timing with Open Enrollment happening! I can share this with my friends and fam instead of having to explain it myself 😊 Thank you!!

[smokeyj]

I had 3400 in my HSA. I invested it, then the market tanked. My daughter then had stomach problems, medical expenses came to a tune to $4800. This was a very tough time for me. I left the money in the HSA and it's still way down. Life sometimes doesn't work as you describe.

[brucekalter]

Hi Jarrad. One other important thing to note is this: If someone is planning on enrolling in Medicare, you must STOP all HSA deductions from your paycheck 6 MONTHS PROR to enrolling in Medicare. It's kind of a stupid rule, but it's important if someone is going to retire in the near future or is 65 or older & wants to switch from their High Deductible plan & wants to switch to Medicare.

[nickv]

I did exactly the same thing some years ago. Transfer from Health Equity to Fidelity. Best move I ever made. Better fund choices and no fees. One thing to note. Even if you are 100% healthy in retirement and have no medical bills, you can still withdraw tax free every month to cover Medicare Part B premiums. For a married couple, that would be about $340 income every month tax free.

[d_all_in]

Great video. I originally signed up for an HSA but found the reimbursement process confusing and inconvenient compared to traditional insurance. This makes a lot more sense.

[ThatLittleTexanWoman]

I was helping a relative choose an insurance plan. The difference each month between the PPO premium and the HDHP premium was the same as the max HSA contribution. That meant switching from the PPO to the HDHP/HSA meant no change in her take-home pay! She started paying herself each month and when she had a hospitalization a while later she had plenty to cover it with some left over. It has worked out really well for her even with some minor regular medical expenses.

[j.l.cooper]

I'm a new subscriber!

Added tip: I also found out i can contribute to the previous year until April of this year, which will lower my tax bill!!

Thanks for spelling everything out for me with so much clarity!

[SVaya]

Great video, lots of good info. I have maxed and invested my HSA for years. My employer just switched to wealthcare investments this past summer. Terrible option, the fees are aweful. I moved it all to fidelity. Keep the videos coming!!

[Paul-GrnHil]

Great content. I maxed out my HSA as soon as it was offered at my employer and only dipped into the account once when my daughter had an appendicitis. I kept $3500 in the HSA cash account to avoid any fees and invested the rest in a growth fund. After 14 years of participation, when I retired last year I had $200, 000, enough to cover our expected medical expenses for my wife and me for our retirement years without having to take taxable distributions from our IRAs. (We also have a LTC policy to cover possible nursing/home care.)

[dtsb]

I have an HSA with Fidelity and had been investing a portion of my account balance. The better path for me after talking to an advisor from Fidelity was to have my full deductible available ($1500) as cash for medical expenses as I don't have a ton of disposable income. If/when the balance goes over the $1500, the contributions go to my investment account. I wish I had had one of these accounts when I was younger!

[savinayn]

I’ve had an HSA for years, but always fell into category #1 (spending from the HSA). Now I know so much better thanks to this video. Thank you for this!

[mybyrd]

This is the best video on HSA that I have ever seen, that it almost covers every thing that you need to know about HSA, good job!! I think I will forward it to my family.

[sridhar]

Good explanation for newbees. One other flexible way to use HSA, is to keep ALL the medical receipts (that you pay out of pocket) over the years and when you are in a pinch, you can submit the old receipts to reimburse yourself (even if you are currently not having a medical expense). So if you need extra money for a sudden hawaiian vacation, you can turn in few old receipts and tap into that money. This is perfectly legal.

[jakeabbott]

Fantastic content Jarrad, wish I would’ve discovered your channel sooner! I’m working with Health Equity through my employer. I have some nice options with a few low cost target date funds. Already had to opt out of paper statements as it was a $5 per month fee. I will keep tabs on additional fees to see if it’s worth switching my HSA to an alternative investment vehicle. Fidelity would be a great option for me as it houses my other retirement accounts. I look forward to more great videos!

[hoshaiYAH]

Jarrad I just started following you and to say you are dope is an understatement. Your delivery is just slow enough for even me to understand, yet makes me feel smarter and all the more empowered for seeing your videos to the end. My Wife and I have compared our insurance policies and have found out that me moving to her policy makes sense. With that said I'm thinking to take what I have in my current HSA (under $10, 000) and invest it. Maybe in a 2 fund portfolio (guess who I got that idea from lol). Keep in mind I'm 52 yrs old. While I know your not a fin advisor I'd love to get you thoughts. Keep up the amazing work as you are doing great work with solid videos and a voice of sound doctrine.

[samuelrojas]

Thank you for this amazing video! I just opened up an HSA and now I plan to max it out for next year

[MiguelRodriguez]

Great video! I’m an analyst for a healthcare brokerage. I’ve found that people that know how to use their HSA tend to love their HDHP coverage and the tax incentives!

[mattmarder]

Best HSA video on YouTube. Truly a game changer for me as a self employed live music industry worker and personal finance nerd. Thanks man.