Anytime I try to do my benefits the description isn’t helpful in explaining why it’s such a good investment move, aside from stating the obvious that it saves money incase you need it. Do I have to invest it? Or do you just let it sit? I’m confused
In: Economics
It’s actually a good alternate retirement investment vehicle. My wife and I contribute to our HSA but don’t use it to pay any health care bills at this time. It grows with pre-tax money (which means it’s about 25-30% more money than investing with after-tax dollars) and we’ll let it grow until we’re close to retirement. Then it’s available as a pool of money to be used to pay the inevitable health care costs not covered by our retirement health care plans (e.g. Medicare). If you keep good records and receipts, you can even use it to reimburse yourself for out-of-pocket costs incurred until then, so you’re paying old bills with increased funds because the HSA was invested, and getting cash out without paying taxes on it.
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