An HSA in early retirement can be one of the most impactful financial tools available if you are looking to achieve Financial Independence, Retire Early. The triple tax savings provides flexibility for those looking to retire early. Additionally, an HSA allows you to invest in dividend growth ETFs like SCHD and DGRO or something as simple as the total US stock market with VTI. In this video, I go into detail on how we plan to use an HSA in early retirement. 1) What is an HSA 3:18 2) Tax benefits 11:57 3) Investing with an HSA while working towards early retirement 13:40 4) How to use an HSA in early retirement 18:17 ▸ Try M1 Finance: ▸ Seeking Alpha Premium (get 58% off): ▸ Net Worth Tracker (Personal Capital): How to transfer to M1 Finance: My dividend growth portfolio: How to pay ZERO taxes on JEPI or SCHD dividends: How to invest with a Roth IRA for the long-term: 5 things you probably didn't know about a ROTH IRA: Dividend ETF Portfolio: How to invest based on your time horizon: I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you. #FIRE...(read more)
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Early retirement can be a challenging phase in one's life, especially when it comes to managing healthcare expenses. This is where an HSA or Health Savings Account can come in handy. An HSA is a tax-advantaged savings account that allows you to save money for future healthcare expenses. The account can be used to pay for qualified medical expenses like doctor visits, prescriptions, and other healthcare services. Here's how you can use an HSA in early retirement: 1. Understand your HSA Before you start using your HSA, it's crucial to understand the terms and conditions related to the account. The IRS has set annual contribution limits, which vary depending on your age and whether you have an individual or family plan. Knowing these limits can help you plan your contributions better. Furthermore, it's essential to remember that the HSA funds roll over from year to year, so it's a long-term investment. 2. Plan your contributions Once you understand the HSA's basics, the next step is planning your contributions. Since you're in early retirement, you'll likely have a limited income source. Hence building a balance in your HSA could be crucial to managing healthcare expenses in the future. If you're not eligible to make contributions because of your retirement status, you can use the funds in your account for eligible expenses. Additionally, there's no age limit for using your HSA funds. 3. Invest your HSA funds Unlike traditional savings accounts, HSAs allow you to invest your funds in stocks, mutual funds, and other investment options. This could help your HSA balance grow over time, especially if you're in early retirement. However, make sure you understand the investment options available to you and allocate funds according to your risk tolerance. 4. Use HSA funds for medical expenses As a retiree, you're likely to have some medical expenses that you will need to pay for out of pocket. For qualifying expenses, use your HSA to pay for those medical bills. Eligible expenses include deductibles, prescriptions, prostheses, and other treatments not covered by your insurance plan. Remember to keep your receipts as proof of your HSA expenses. 5. Take advantage of HSA catch-up contributions If you're 55 or older, you can make catch-up contributions to your HSA. The catch-up contribution limit is $1,000, and it's designed to help older adults save more for healthcare expenses in retirement. In conclusion, an HSA can be a valuable financial tool for retirees to pay for healthcare expenses in retirement. By understanding the account's basics, planning contributions, investing funds, and taking advantage of catch-up contributions, you can use your HSA to manage healthcare expenses in early retirement. https://inflationprotection.org/utilizing-hsa-in-early-retirement-a-comprehensive-guide-on-health-savings-account/?feed_id=89048&_unique_id=643ed1344fee2 #Inflation #Retirement #GoldIRA #Wealth #Investing #dividendgrowthinvesting #dividendinvesting #dividends #EarlyRetirement #FinancialIndependence #FinancialIndependenceRetireEarly #FIREmovement #healthsavingsaccount #howtoinvest #howtoinvesthsafunds #howtousehsaaccount #HSA #hsaaccounts #hsaaccountsforFIRE #hsabank #hsabankinvestment #hsabenefits #hsaexplained #hsainvesting #hsainvestment #hsainvestmentoptions #investingforbeginners #investinghsafunds #whatisanhsa #QualifiedRetirementPlan #dividendgrowthinvesting #dividendinvesting #dividends #EarlyRetirement #FinancialIndependence #FinancialIndependenceRetireEarly #FIREmovement #healthsavingsaccount #howtoinvest #howtoinvesthsafunds #howtousehsaaccount #HSA #hsaaccounts #hsaaccountsforFIRE #hsabank #hsabankinvestment #hsabenefits #hsaexplained #hsainvesting #hsainvestment #hsainvestmentoptions #investingforbeginners #investinghsafunds #whatisanhsa
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