If you already have or plan to set up or start a health savings account (HSA), how do you make sure it is efficient to build wealth and possibly invest?
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to best manage HSAs.
- HSA: Best tax shelter that exists as a vehicle to put your money into
- HSA vs. Flex Spending Account (FSA): What’s the difference?
- HSA Strategy:
- Rule #1: It’s best not to spend out of your HSA
- Rule #2: If using HSA to build wealth, make sure to invest cash
- Rule #3: As you have healthcare expenses, save the receipts
- When to start using your HSA? Balance equals future expected healthcare costs
- HSA Beneficiaries: Make sure to identify spouse or dependents
- When is the best time to fund HSA? Max out sooner than later
- Cafeteria Plan: Better to funnel money through employer HSA for matching funds
- Switching Providers: Keep up with transfers and minimize number of HSAs