Here is how the math works.
HSA next year will allow you to contribute $8,550 of your own money to invest. This privilege will cost you $3,900 per year, for the sake of tax free growth in your HSA account for 10 years. But keep in mind, you'll only be able to use this money for deductibles and similar, no premiums, until 65. It also depends on your HSA plan options. Many plans are crappy and require you to keep $1,000 or more in cash and their investment options are high cost.
Some things to consider:
- are your HSA plan options decent?
- are all other things equal with insurance (deductibles, etc)?
- do you have the discipline to invest the money if not used in the HSA plan?
In the end, there are many unknowns and the differences would not be that great.
I had really good HSA options and really like the low 6 figure buffer I have, but I did not have the option of a free plan.
In your shoes, I would simplify and put an extra $10k annually in an SP500 ETF for the next 10 years. Not clear if you're going to get ahead, but even if you don't the difference would not be that large. And those funds will give you a little more flexibility than the HSA. Others might have different opinions.
Good problem to have![:)]( "Smile")
HSA next year will allow you to contribute $8,550 of your own money to invest. This privilege will cost you $3,900 per year, for the sake of tax free growth in your HSA account for 10 years. But keep in mind, you'll only be able to use this money for deductibles and similar, no premiums, until 65. It also depends on your HSA plan options. Many plans are crappy and require you to keep $1,000 or more in cash and their investment options are high cost.
Some things to consider:
- are your HSA plan options decent?
- are all other things equal with insurance (deductibles, etc)?
- do you have the discipline to invest the money if not used in the HSA plan?
In the end, there are many unknowns and the differences would not be that great.
I had really good HSA options and really like the low 6 figure buffer I have, but I did not have the option of a free plan.
In your shoes, I would simplify and put an extra $10k annually in an SP500 ETF for the next 10 years. Not clear if you're going to get ahead, but even if you don't the difference would not be that large. And those funds will give you a little more flexibility than the HSA. Others might have different opinions.
Good problem to have
Statistics: Posted by idc — Wed Oct 23, 2024 1:06 am — Replies 2 — Views 137