I'm 58, and my net worth is approximately $80k, under the median. I have $10k in an emergency fund, no debt, I max out my HSA, and I'm contributing 25% of my income to a 401k. I can increase that percentage each year. I know I'm behind, what can I do to catch up?
Keep up the great work! Better late than never, and your progress is something to be proud of. Stay positive, focused, and committed - you've got this!
I'm 52 and under the median as well with about 80K. I don't have debt and do max out my 401K, and I'm very grateful to have my current job which I enjoy very much.
you just said you were behind and looking for how to catch up. Max out your retirement accounts first and max your Hsa as a last resort. You’re 58 so you can add more to your 401k and Roths in catch up contributions. HSA is the icing on the cake but 401k and Roth is the cake. Hopefully you’re healthy and won’t have to use it as much because it won’t be an investment vehicle till you turn 65.
100% agreed. The HSA can be contributed to regardless of income as well, so it can be utilized as a traditional IRA of sorts for higher-earners. Total no-brainer to do.
I keep emailed receipts and a spreadsheet of medical expenses. That way I can invest and then withdrawal the money tax free in retirement. And I guess in an extreme emergency, I could withdrawal it at any point tax free as long as I have the receipts.
@@dannelson3673 Exactly. There is no statute of limitations for HSA distributions on medical expenses. You can let the money in the account sizzle for as long as you want before paying yourself back!
I could make an argument for the roth. Your contributions in a roth can come out tax free if needed. I really like maxing both. DCA through the year. :)
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
It's true that many people underestimate the importance of advisers until their own feelings burn them out. A few summers ago, following an ongoing divorce, I needed a significant push to keep my company afloat. I looked for licensed advisors and found someone with outstanding qualifications. She has contributed to my reserve increasing from $275k to $850k regardless of inflation.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
REBECCA NASSAR DUNNE is her name. She is regarded as a genius in her area and works for Equity Services inc. She’s quite known in her field, look-her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I maxed out my HSA contributions before I retired. Then I had quite a bit of money in my HSA so I called my financial guys and asked what would be a good thing to invest part of the money in so I woulld get some growth and it wouldn't sit in the cash account like a lump of clay. They gave me an ETF to put it in and that decision really paid off for me. The account has quadrupled. I use my HSA for all my medical and dental out of pocket expenses. I've never had to draw out any money from the ETF. It gives me a lot of peace of mind to know that I have a medical/dental bucket of money. I highly recommend funding an HSA.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Wendy Hubbard Stewart.
There's no reason not to invest inside of your HSA. There's no penalty for that. If you need to pay medical expenses you liquidate the investment and pay the expense.
I keep the deductible in cash in my HSA. Everything else is invested. I strive for the Money Guy show’s 25% investing and I do not factoring HSA money into the percent. The HSA is icing on the cake for later.
Why not invest the deductible? Correct me if I’m wrong, but in the event you have to pay the deductible, can’t you just sell your investments and withdraw the money? There is no penalty for doing so.
@@grahamsiebring5227what if we happen to be in a bear market? Now you are force to sell it at 20-30% discount. If you don’t have access to other liquidity, I think the OP’s strategy is sound. But then everyone needs to make their own decision. Personally, I only leave $1k in my non-invested HSA account.
@@grahamsiebring5227 Same reason you keep an emergency fund out of the stock market is so it isi liquid and you do not have to sell at a bad time to use it.
@grahamsiebring5227 The penalty is that it's short term and a downturn in the Market can more than negate any upside you may hope to get. Additionally with rates hovering at about 5%, it's a no brainer to park cash there than the Market
Lot of retirees use their retirement funds for health expenses. Why won’t you start putting money way and investing in HSA. Another thing is if you keep all your receipts for healthcare expenses and you pay non-HSA money for healthcare you can always reimburse yourself if you get into a pinch. For example, you get a medical procedure done at 25yo for $10k but need $10k when you are 55yo, you can reimburse yourself for $10k with no penalty but better keep good records.
Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires, thanks Charlotte Grace Miller
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I’m 50 and earn around $450k annually, only save about 2% in HSA's. I've been reading a lot of articles mentioning how worthless 'cash savings' are in this current economy, thus my question. Real estate, stocks or gold, which will be a better investment as of now?
Agreed, opting for financial advise is the best way to go about the market right now. I got 120k in my HSA invested in total stock market and average 4 figures/month in dividends, my overall ROI just hit $550k and still counting up. I only have 30 or so stocks (20%) of my portfolio with more of my investments in digital assets.
@@everceen I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now.. mind if I look up the professional guiding you please?
I'll be kind to leave just her name here ''Sophia Verdekal O'neal''. She's a renowned figure in the financial sector with over two decades of experience. I'd suggest you research her further on the web.
thanks for sharing, I must say Sophia Verdekal O'neal appears to be quite knowledgeable.. curiously copied and pasted her full name on the web and at once came across her consulting page, no bs!
The U.S. economy can actually get better if only the govt can start making better decisions for the sake of it's citizens, cos' they've really made life more difficult for its residents.inflation has left the less haves bearing the brunt of the burden. Its already eating into my entire $620k retirement portfolio. Like where else can we invest our money with less risks?
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.
Agreed! this is why I work with one. My $520k portfolio is well-matched for every market season yielding 85% rise from early last year to date. I and my advisor are working on more figures for this year. IMO, financial advisors are the most sought-after professionals after doctors.
Talking about advisors, do u consider anyone worthy of recommendations? I have about 100k to taste the water now that large cap stocks are at a discount... Thanks.
Amy Lea Kohlert is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I love my HSA. I almost never pay for my medical, dental, eye bills because I use the HSA money to pay them while the HSA continues to grow. I don't think people realize how great of a tool this is in life!
obviously he wants you to invest the money you put in there... you think dave ramsey is telling you to leave a pile of cash in your HSA sitting there earning 0% interest for 30 years...?
You clearly missed details in the video because he isn't saying that you shouldn't use it. He literally has an HSA himself. It would be stupid for him to say not to invest in it. @@MichaelAnderson-wk1no
Don't agree. If you have access to one, use it. Majority will need that money for health purposes way before retirement age. Dont shortchange yourself. I appreciate the insight into how rich people set up their kids to be rich from childhood... unfortunately we cannot all do that but it's good to know the bootsstraps ain't equal
rich is a relative term, to many ppl arnd the world who are struggling to put food on table due to real poverty(not because they want to starve to buy a new iphone), the fact you have investments is already making you a rich person
I'm 39 and just started an HSA this year. Not liking the high deductibles. Was like $1500 out of pocket between a few back appointments and standard PCP appointment 😅
You’re simplifying HSAs and leaving important aspects out. They are more tax advantaged than retirement accounts, and you can withdraw funds from them if you have saved eligible medical bills you have paid out of pocket over the years. So they are more flexible on top of the better tax treatment. The one disadvantage may be that your max contribution is rather limited, if you’re Dave Ramsey-rich it may not be worth your effort. For folks of more modest means, they are worthwhile.
HSA should be second after Employer 401k match, it's triple tax advantaged. Tax free to contribute, tax free growth, and tax free withdrawal for qualified medical expenses (which if you hold onto the receipts and pay cash for medical expenses, you can use the receipts to withdraw tax free at a later date to let the principal grow). Its like a roth account on steroids for medical expenses and a regular 401k account otherwise.
1. Employer match 2. Personal Roth 3. Brokerage (creates available cash beyond reserves) 4. HSA It is called HSA (Health Savings Account) because it is for health care expenses until age 65.
Terrible advice. If an HSA can be used JUST LIKE an IRA after 65, why not use it before the IRA (or 401k) vehicle? It's the same thing, other than requiring 65 vs 59.5 to withdraw, but if any future expenses are for medical, the HSA withdrawl is FREE OF ALL TAXES!
@@marcenelj If your company supports it. Its like any other investment account. Putting money in there doesn't necessarily invest it. You have to do something with it.
Nah. His steps work well for a lot of people. It's rigid, and a lot of people need that. I think that if you put another spread sheet in front of people they will typically get bogged down. What is it, 1 in 5 people in America have an HSA?
It can only be used for medical... but there's no time restrictions. Save your invoices and you can get refunded for that amount any time in the future. Have a year you spent 2k? Save that for when you actually need the 2k and pull from your hsa in retirement. FURTHER! most companies will match an hsa by some amount so it's a free 100% return on your money
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HSA is just like a traditional Ira but better. There’s no required minimum distributions and you can pull money out any time to cover medical expenses tax free.
Dave is clueless on this. If you can afford to pay out-of-pocket for deductible medical expenses then use your HSA as a retirement account. 1. Max out company match 401K 2. Max out HSA 3. Max out Roth IRA
BAD advice IMO. As someone else here said - this comes right after 401k required for match, keep equivalent of some significant percentage of family deductible in cash and rest invested, also based on how frotht the market looks.
WOW. Calling the HSA a last resort is crazy. No payroll tax, no tax for medical expenses, and at worst it's a better IRA. I get you probably don't want all 15% in an HSA. But to put it last is wild.
Dave’s response makes 0 sense. HSA requires you to be 65 to take out for non-healthcare. Trad 401K requires you to be 60 to take out at all. What’s the difference?
I'm in the same boat. I started an HSA 2 years ago and contribute $35 per week plus the match.. By reading these comments somewhere I must have missed the class on the "triple tax advantage" and the ability to invest it.
FWIW, I do count the HSA as a small component of my retirement savings. I max out my HSA contribution, and keep it invested in mutual funds. So far I have avoided spending from it. For 401k, I contribute only enough to max my employer's match. All together, with the match, I am investing 18% of my income. Most people don't really get why the HSA is so advantageous. First, if you spend from it on eligible medical expenses, those amounts remain tax-free, forever. Secondly, starting at Age 65, you may spend from it however you like, and it is taxed only per your income in that year. However, the hole that you must avoid is spending from it on non-eligible expenses prior to Age 65. Not only will you incur income tax, but also a 20% penalty, on those amounts, brutal.
I mostly disagree. This is terrible advice. The one point i agree with is you shouldn't count it as your 15%. Its really intended for medical. If you have to dip into your medical fund.. things are kinda bad. Most retirement people spend over 300k. I mean i get it. You can look at it as a traditional ira when your 65+. But unless you have exhausted all your roth investment options. Whatever you do to this account i wouldn't count it. Especially if your considering going out before 65. Do you want to take out 20k for fun and pay the government 5k in taxes? Or pay 20k to you doctor and owe nothing? My point is if your thinking the money here is for fun... thete are better investment options. That said. You should fully fund it if you can afford to. The investment options are more limited, and the amount you can contribute is pretty low. The power of your hsa is more dictated by time. The less time invested the worse off it is. Even if you can only do $50 per check. Its around $110 per month. Over a 40 year work history thats around 600k. If you fully fund it for 20 years its only 250k. Theres practically no catching up in hsa. Time wins here. You should contribute as soon as your able. I mean sure.. pausing for 2 years to take care of consumer debt is fine. I just mean.. you shouldn't fund it last. Especially if you have health issues. Waiting too long to contribute to hsa basically makes it almost not worth doing.
I think the person who asked this question referred to investing with in HSA from the contribution he/she put in. As long they have cash equivalent to their max deductible for a given year, they can invest remaining cash they have in that account. HSA is now becoming part of main retirement account even though it was intended to be for medical purpose.
It's pretty unlikely anyone will hit their 15% using just their HSA. I don't know if I'd count it towards my 15%, but after that if you're looking for other places to save and invest, it's a great option, I would argue the best!
I wish they would let people have a their own FSA/HSA/HRA and NOT go through their employer. My employer doesn’t offer this option but I still have one through and previous employer and it’s been great. My husband got hurt really bad and then had health issues as a result and we were stuck with $7K in expenses the insurance didn’t cover. Our HSA was so helpful in that case. Heaven forbid anyone be responsible
@@Kaycee226 how? You can get a high deductible insurance plan outside of your job. It costs alot more money, but you can get it. With the high deductible, Hsa's are automatic
Contribute to the HSA and maintain a healthy balance in the safe side (my company has a minimum of 2k to be there), and invest the rest. If you want to be conservative maintain your deductible on the safe side. I agree not to consider the HSA part of your 15%, but assuming you are not blowing through what you contribute you can still invest it once you built up the fund.
Dave you are so wrong in this. Your HSA can be used as a retirement account and you aren’t taxed when putting the money in or when you take it out at retirement.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $2m+ before retirement
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I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
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how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally.. What's your take on this approach? and How can i reach her, if you don't mind me asking?
I think Dave missed a part of his question. By all means, invest your "significant amount" in your HSA into mutual funds inside your HSA. If you have plenty of excess money, max it out because it's triple tax savings. There's no tax on your contributions, no tax on the gains from the investments and no tax on your qualified distributions. For us commoners, it's a VERY good product.
This is really silly advice. If you know you are going to have ANY medical bills, you can literally put the money in the HSA, take the tax deduction, and then use it to pay for qualified medical bills. You don't need to be in BS7. But he's right, when you get to BS7, you should max it out, invest it, and let it grow and pay out of pocket for medical, but good lord, at least take the tax deduction before BS7. SMH
I started working at age 11 with a social security card and have paid into the program every year since then. I basically only know one thing, that’s work. That’s the dark side of starting to work at the young age.
It depends on how your family did it. My family did it to teach me about work. Work ethic. How to accomplish goals. How to pay bills & do basic money management. Job searching. Basically teaching me real adult life skills. I was not required to have a 40 hour job at 12. But they encouraged me to pursue ways of making my own money and be responsible. So i don't see the downside of what my parents did with me. Its not like i was working to put food on the table. So i look at those times positively. Because i still use a lot of those things i learned today. And it didn't interfere with me being a kid. Nor affect my grades.
@pdxmusl1510 I paid for everything outside of food, board, and car insurance (after I had a car). I had to carry over enough money through the school year to get by as I was a 3 sport athlete and wasn't able to work much. I worked long days. I didn't spend my Summers with friends at the swimming pool. It was work, work, work.
hmm... An HSA is basically a 401k. The difference being that you only qualify for it if you have a HDHP and you can pull money out at any point, tax-free, if you have a qualifying expense. But Dave is right that this is a nuance. It's a small, tactical thing that won't make a difference in your world if you get the big picture stuff wrong.
I was going to an HSA and get a HSA qualified health plan but then I found out California treats it and taxes it like a brokerage account. I was so pissed off. Fed still doesn't tax it but to me it's not even worth it anymore.
I’m maxing out my HSA and investing it in a Vanguard fund. I’m hoping they change the rules and allow covering healthcare premiums so I can retire early.
hmm. I would partially disagree with dave. While I don't count my hsa as part of my retirement investing I do max it out every year and invest it in mutual funds. Also my work gives $1200 free to the hsa. I have been getting about 15% profit growth in it every year. You contribute to the hsa tax free, you grow tax free and you can use for medical tax free. At the moment I don't even touch it for medical. I pay medical out of pocket and then save the receipt in the cloud. I imagine I will have some kind of medical issues in the next 20 years which will open up the funds to withdrawal. If needed 10 years from now if I really need money and can submit the receipts and pull that medical money out. There is no time limit. I actually didn't know that at 65 I can pull out for anything though so thanks. After that I contribute 5% for the 401 k to get the 80% match and trying to max out the roth. after that I will continue to put more in the 401 k.
Thank you so much Dave and Rachel! I believe only 9% of hsa’s are actually invested.. and only I believe less than 1% invest the way you recommend in the hsa.. I did! Now due to not having a high deductible health plan available.. I use a combine hsa/sinking fund that is after tax.. Now.. the goal to get out of this stupid deep state prison and have you free as well.. would help tremendously!
I really like the HSA, and it checks a lot of boxes. Buy and hold mentality. Goes in tax free Grows tax free Comes out for medical expenses tax free The only triple tax advantaged account It comes out at 65 like an IRA. Income taxed to balance against your capital gains tax bracket if needed There is no timeframe for reimbursement on HSA claims. Pay out of pocket for years. Show your receipts later and let that money compound. My order: Match 3% work benefits Max roth Max HSA Add to 457b/IRA Add to brokerage account
That's right, always pay extra taxes on your medical expenses, never use your HSA. What ridiculous advice from Dave. Terrible investment advice that will put people far behind.
the whole part of investing for your kid is the #1 thing that needs to be taught to every adult out there, nothing grows like a couple grand in an investment account for 20years as your children grow its also a little bit of privilege to have that extra income but if you care about your kids you'd put what you can even if its only a hundred a month not ot mention most parents wouldn't be able to let go of that money to their children
@azeemsiddiqui4764 Check again. The money guys say to invest after your HSA has at least the deductible or out of pocket max. Waiting to invest until you pay off your house is beyond stupid.
I disagree with Dave on this one. Company match>hsa>roth accouts>traditional (unless you have over 30% income tax then consider traditional over roth.)
Anything you contribute over your out of pocket max I would consider it toward investing. As long as you’re still contributing to other accounts where you can get your money earlier too
Is the marginal income tax effect not being considered here? It would seem to me that it would be wise to max out the HSA and even if not investing much get the current year tax benefits and build up a component of your emergency fund that could be used towards healthcare, etc.
The only bad thing about the HSA, you cannot transfer the funds to another HSA account for non-spouse beneficiary once you die. The non-spouse beneficiary must withdraw all the funds and pay income tax.
If you earn income as a kid. Like through a paper route. You can file taxes. Your income is reported to the government. Even if your 12. Most of the time, the standard deductions remove tax liability and you don't pay taxes. As i recall i made close to 8k one year. I think i was 15 or 14. The deductions & exemptions. I paid basically no income tax. As i recall i got some of my income taxes back. I dont recall the amounts. Anyway. My parents did similar things for me. Not the investment stuff. But showing me how to navigate things.
I don’t believe when he said that he never spent single dollar in medical which are qualified HSA expenses. I think he doesn’t know what counts towards HSA. I don’t cash out , I use only for investments, however I also save my receipt so that I can cash out later after retirement and before 64
Must be a lot of people who qualify for HSAs. According to my research, you must be in a qualified high deductible health insurance plan to qualify for an HSA. I guess that's why I don't have an HSA or know much about them because I am not in a qualified high deductible health insurance plan.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
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Careful with withdrawals at 65. Although you can for non-medical expenses, it's subject to income taxes. Folks, load up the HSA and pay out of pocket (if you can). Track those out of pocket expenses; it doesn't matter how old those receipts are, they can be used for qualified withdrawals later in life. Let that triple-tax advantaged HSA grow like crazy in the meantime. 📈
@@raiden031 To extend your comment.. its thought of as a traditional ira though. So you pay income taxes on it. So... if your adding money to it for medical expenses. For today or the future. Its a good idea. If your thinking to use t like another ira in retirement. You should look at it like a traditional ira. Meaning you should prioritize roth investing over hsa/traditional ira for fun money. Intention matters. If you max it out thinking youll use it for fun. Youll have more funds available to you if you had redirected some of that money into roth instead.
@@pdxmusl1510 it makes little sense to prioritize Roth over HSA. More likely than not as you get near or into retirement age you are going to spend that money on medical bills. Roth is only better than traditional if the typical retiree ends up paying more taxes in retirement than they did in their working years because of higher tax rates in the future. I think betting on accumulated medical bills is the better bet.
I count hsa contribution and employer match as partnof the 15% because I cant get to 15% without them. Life is expensive now. Most people borrow from the 401k and are drowning in debt.
The end of the day though it doesn't matter if your counting it or not. Hsa is inventivized for medical. And if your dipping in there now. Or ecpect to for medical expenses after 65. It simply means your not hitting 15%. Counting it as such just makes you feel better and doesn't match reality.
Bad advice. Don’t need to wait until home is paid off. Even being super conservative, if you have a HDHP and HSA, just keep your deductible or out of pocket max in cash within the HSA and invest the rest.
I was wondering if there was to set up an investment account for a kid under 10years old. A friend did something similar where she owned her company,pays her daughter so she has an income and therefore is eligible for a 401k account. At that time I didn't think much of it
An HSA is a retirement account. It's a home for a set of tax rules, like a roth, IRA, etc. Once you fund your HSA, you need to manage your money. Generally, you do an HSA through your work and they have designated indexes you can buy into. Finding an S&P index is very popular. If you're self-employed, there are ways to get reimbursed and tax credits towards this and it adds another step.
This episode was both very informative and entertaining. Loved Dave’s summary. What I found most entertaining, however was how Rachel still knows how to push her Dad’s buttons while maintaining a twinkle in her eye realizing she was doing it!
I always look up your videos for update! Our government has no idea how people are suffering these days. I feel for people with disabilities not getting the help they deserve. Thank you Mrs Linda, imagine investing $1000 and receiving $5,300.🎉🎉🎉
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I'm 58, and my net worth is approximately $80k, under the median. I have $10k in an emergency fund, no debt, I max out my HSA, and I'm contributing 25% of my income to a 401k. I can increase that percentage each year. I know I'm behind, what can I do to catch up?
Keep up the great work! Better late than never, and your progress is something to be proud of. Stay positive, focused, and committed - you've got this!
I'm 52 and under the median as well with about 80K. I don't have debt and do max out my 401K, and I'm very grateful to have my current job which I enjoy very much.
Stop maxing out your Hsa Bruh! and max out your 401k and retirement accounts.
@donhug Why? The contributions to my HSA, the earnings and the withdrawals for qualified expenses are all tax free.
you just said you were behind and looking for how to catch up. Max out your retirement accounts first and max your Hsa as a last resort. You’re 58 so you can add more to your 401k and Roths in catch up contributions. HSA is the icing on the cake but 401k and Roth is the cake. Hopefully you’re healthy and won’t have to use it as much because it won’t be an investment vehicle till you turn 65.
I’m going to go ahead and continue to use HSA as an investment vehicle as I have for years.
Dave missed the mark on this one.
Agreed
100% agreed. The HSA can be contributed to regardless of income as well, so it can be utilized as a traditional IRA of sorts for higher-earners. Total no-brainer to do.
Couldn't agree more
I keep emailed receipts and a spreadsheet of medical expenses. That way I can invest and then withdrawal the money tax free in retirement. And I guess in an extreme emergency, I could withdrawal it at any point tax free as long as I have the receipts.
@@dannelson3673 Exactly. There is no statute of limitations for HSA distributions on medical expenses. You can let the money in the account sizzle for as long as you want before paying yourself back!
The ONLY investment that come before HSA is the 401k company match
I could make an argument for the roth. Your contributions in a roth can come out tax free if needed. I really like maxing both. DCA through the year. :)
@Hogue_Indiana if you are withdrawing your contributions then you are missing out on tax free growth.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
It's true that many people underestimate the importance of advisers until their own feelings burn them out. A few summers ago, following an ongoing divorce, I needed a significant push to keep my company afloat. I looked for licensed advisors and found someone with outstanding qualifications. She has contributed to my reserve increasing from $275k to $850k regardless of inflation.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
REBECCA NASSAR DUNNE is her name. She is regarded as a genius in her area and works for Equity Services inc. She’s quite known in her field, look-her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I maxed out my HSA contributions before I retired. Then I had quite a bit of money in my HSA so I called my financial guys and asked what would be a good thing to invest part of the money in so I woulld get some growth and it wouldn't sit in the cash account like a lump of clay. They gave me an ETF to put it in and that decision really paid off for me. The account has quadrupled. I use my HSA for all my medical and dental out of pocket expenses. I've never had to draw out any money from the ETF. It gives me a lot of peace of mind to know that I have a medical/dental bucket of money. I highly recommend funding an HSA.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Wendy Hubbard Stewart.
I'm surprised that you just mentioned and recommended Wendy Stewart, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
You trade with Wendy Stewart too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
There's no reason not to invest inside of your HSA. There's no penalty for that. If you need to pay medical expenses you liquidate the investment and pay the expense.
Have like 100k invested in my HSA still 15 years away from 65 but glad to have it.
I keep the deductible in cash in my HSA. Everything else is invested. I strive for the Money Guy show’s 25% investing and I do not factoring HSA money into the percent. The HSA is icing on the cake for later.
Why not invest the deductible? Correct me if I’m wrong, but in the event you have to pay the deductible, can’t you just sell your investments and withdraw the money? There is no penalty for doing so.
@@grahamsiebring5227what if we happen to be in a bear market? Now you are force to sell it at 20-30% discount. If you don’t have access to other liquidity, I think the OP’s strategy is sound.
But then everyone needs to make their own decision. Personally, I only leave $1k in my non-invested HSA account.
@@grahamsiebring5227 a crash in the market could put their investment below the deductible
@@grahamsiebring5227 Same reason you keep an emergency fund out of the stock market is so it isi liquid and you do not have to sell at a bad time to use it.
@grahamsiebring5227
The penalty is that it's short term and a downturn in the Market can more than negate any upside you may hope to get.
Additionally with rates hovering at about 5%, it's a no brainer to park cash there than the Market
Lot of retirees use their retirement funds for health expenses. Why won’t you start putting money way and investing in HSA.
Another thing is if you keep all your receipts for healthcare expenses and you pay non-HSA money for healthcare you can always reimburse yourself if you get into a pinch. For example, you get a medical procedure done at 25yo for $10k but need $10k when you are 55yo, you can reimburse yourself for $10k with no penalty but better keep good records.
Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires, thanks Charlotte Grace Miller
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1400 and after a week, we received $5230. That really helped us a lot to pay up our bills.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I’m 50 and earn around $450k annually, only save about 2% in HSA's. I've been reading a lot of articles mentioning how worthless 'cash savings' are in this current economy, thus my question. Real estate, stocks or gold, which will be a better investment as of now?
as most investing-related questions, the answer is relative. I'd suggest you consider financial advisory to be on a safer side
Agreed, opting for financial advise is the best way to go about the market right now. I got 120k in my HSA invested in total stock market and average 4 figures/month in dividends, my overall ROI just hit $550k and still counting up. I only have 30 or so stocks (20%) of my portfolio with more of my investments in digital assets.
@@everceen I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now.. mind if I look up the professional guiding you please?
I'll be kind to leave just her name here ''Sophia Verdekal O'neal''. She's a renowned figure in the financial sector with over two decades of experience. I'd suggest you research her further on the web.
thanks for sharing, I must say Sophia Verdekal O'neal appears to be quite knowledgeable.. curiously copied and pasted her full name on the web and at once came across her consulting page, no bs!
The U.S. economy can actually get better if only the govt can start making better decisions for the sake of it's citizens, cos' they've really made life more difficult for its residents.inflation has left the less haves bearing the brunt of the burden. Its already eating into my entire $620k retirement portfolio. Like where else can we invest our money with less risks?
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.
Agreed! this is why I work with one. My $520k portfolio is well-matched for every market season yielding 85% rise from early last year to date. I and my advisor are working on more figures for this year. IMO, financial advisors are the most sought-after professionals after doctors.
Talking about advisors, do u consider anyone worthy of recommendations? I have about 100k to taste the water now that large cap stocks are at a discount... Thanks.
Amy Lea Kohlert is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks a lot for this recommendation. I just looked her up on google, and I have sent her an email. I hope she gets back to me soon.
I love my HSA. I almost never pay for my medical, dental, eye bills because I use the HSA money to pay them while the HSA continues to grow. I don't think people realize how great of a tool this is in life!
Exactly I literally will be using it for what it was made for...unless I become super wealthy by some miracle 😂
I can understand not counting it towards the 15%, but there's no reason to not invest the money you're already putting in there.
He said you can it’s just at step 7
@@TheSonyExperiencewhich is ridiculous
obviously he wants you to invest the money you put in there... you think dave ramsey is telling you to leave a pile of cash in your HSA sitting there earning 0% interest for 30 years...?
@@Navak_ I guess we watched different videos...
You clearly missed details in the video because he isn't saying that you shouldn't use it. He literally has an HSA himself. It would be stupid for him to say not to invest in it. @@MichaelAnderson-wk1no
Don't agree. If you have access to one, use it. Majority will need that money for health purposes way before retirement age. Dont shortchange yourself.
I appreciate the insight into how rich people set up their kids to be rich from childhood... unfortunately we cannot all do that but it's good to know the bootsstraps ain't equal
rich is a relative term, to many ppl arnd the world who are struggling to put food on table due to real poverty(not because they want to starve to buy a new iphone), the fact you have investments is already making you a rich person
I have 133k in my hsa invested in vanguard total stock market and I’m 47 years old
I'm 39 and just started an HSA this year. Not liking the high deductibles. Was like $1500 out of pocket between a few back appointments and standard PCP appointment 😅
@ you get a big tax break on your federal income taxes with hsa accounts. I started mine when I was around 32.
I already know he's going to have a bad answer before even clicking
And of course, he did.
😂😂
@@jimmymcgill6778 your answer was the bad one.
You’re simplifying HSAs and leaving important aspects out.
They are more tax advantaged than retirement accounts, and you can withdraw funds from them if you have saved eligible medical bills you have paid out of pocket over the years. So they are more flexible on top of the better tax treatment.
The one disadvantage may be that your max contribution is rather limited, if you’re Dave Ramsey-rich it may not be worth your effort. For folks of more modest means, they are worthwhile.
HSA should be second after Employer 401k match, it's triple tax advantaged. Tax free to contribute, tax free growth, and tax free withdrawal for qualified medical expenses (which if you hold onto the receipts and pay cash for medical expenses, you can use the receipts to withdraw tax free at a later date to let the principal grow). Its like a roth account on steroids for medical expenses and a regular 401k account otherwise.
You can also use it for all kinds of things you may not expect. Contact lenses, glasses, band-aids, your future wife's pregnancy.
At retirement though it's still taxable for NON medical usage which is dumb
1. Employer match
2. Personal Roth
3. Brokerage (creates available cash beyond reserves)
4. HSA
It is called HSA (Health Savings Account) because it is for health care expenses until age 65.
@@MrTmenzoyou can reimburse yourself at any point for medical expenses and use that money for whatever you want, penalty free
THIS! It is an investment vehicle!!
Triple tax advantage. No brainer.
Terrible advice. If an HSA can be used JUST LIKE an IRA after 65, why not use it before the IRA (or 401k) vehicle? It's the same thing, other than requiring 65 vs 59.5 to withdraw, but if any future expenses are for medical, the HSA withdrawl is FREE OF ALL TAXES!
Is the contribution to the HSA being invested in the market??
Another example of Ramsey not knowing what he is talking about....
@@marcenelj
If your company supports it. Its like any other investment account. Putting money in there doesn't necessarily invest it. You have to do something with it.
The triple tax advantage is indeed make HSA at least on par with Roth IRA. I didn’t know the 65 thing, sweet.
No RMDs either.
I started investing in my HSA five years ago and I plan to use all the money for my Medicare costs after 65.
Dave "Wealth Killer" Ramsey strikes again.
Nah. His steps work well for a lot of people. It's rigid, and a lot of people need that. I think that if you put another spread sheet in front of people they will typically get bogged down. What is it, 1 in 5 people in America have an HSA?
It can only be used for medical... but there's no time restrictions.
Save your invoices and you can get refunded for that amount any time in the future.
Have a year you spent 2k? Save that for when you actually need the 2k and pull from your hsa in retirement.
FURTHER! most companies will match an hsa by some amount so it's a free 100% return on your money
Hit 240k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in August 2024.,,..
I would really love to know how much work you did put in to get to this stage
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver
As a beginner in this, it’s essential for you to have a mentor to keep you accountable.
Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.
HSA is just like a traditional Ira but better. There’s no required minimum distributions and you can pull money out any time to cover medical expenses tax free.
Im shocked that Dave has had an HSA since the beginning and still doesnt realize the importance and power of funding it.
I'm shocked you and the 9 people that liked your comment half assed the video since he literally has one himself and didn't say not to invest in it.
@azeemsiddiqui4764 he said you should not consider it for your 15% investment which makes no sense
@raiden031 it does make perfect sense. It is step 7.
@@azeemsiddiqui4764 it should be step #4. Not funding it is throwing away free money
Dave is clueless on this. If you can afford to pay out-of-pocket for deductible medical expenses then use your HSA as a retirement account. 1. Max out company match 401K 2. Max out HSA 3. Max out Roth IRA
HSA is like an IRA if you don't use it for medical expenses. Otherwise it is the best tax advantaged account there is
BAD advice IMO. As someone else here said - this comes right after 401k required for match, keep equivalent of some significant percentage of family deductible in cash and rest invested, also based on how frotht the market looks.
WOW. Calling the HSA a last resort is crazy. No payroll tax, no tax for medical expenses, and at worst it's a better IRA. I get you probably don't want all 15% in an HSA. But to put it last is wild.
Dave’s response makes 0 sense. HSA requires you to be 65 to take out for non-healthcare. Trad 401K requires you to be 60 to take out at all. What’s the difference?
Exactly lol HSA is so much better too no RMD's.
@@livingunashamed4869Not near as good as roth.
@@artharrison294you can’t spend Roth
@@artharrison294HSA is triple tax advantaged. It's actually better than a Roth
@@artharrison294yeah you don't know wtf you're talking about. HSA>Roth IRA.
Huh? HSA does count towards investing. You know how much medical costs as you get older? That’s majority of their bills
I just put $25 per paycheck and my company matches it
You are missing out on the triple tax advantage status of the HSA only putting $25/paycheck.
I'm in the same boat. I started an HSA 2 years ago and contribute $35 per week plus the match.. By reading these comments somewhere I must have missed the class on the "triple tax advantage" and the ability to invest it.
FWIW, I do count the HSA as a small component of my retirement savings. I max out my HSA contribution, and keep it invested in mutual funds. So far I have avoided spending from it. For 401k, I contribute only enough to max my employer's match. All together, with the match, I am investing 18% of my income. Most people don't really get why the HSA is so advantageous. First, if you spend from it on eligible medical expenses, those amounts remain tax-free, forever. Secondly, starting at Age 65, you may spend from it however you like, and it is taxed only per your income in that year. However, the hole that you must avoid is spending from it on non-eligible expenses prior to Age 65. Not only will you incur income tax, but also a 20% penalty, on those amounts, brutal.
Remember when Dave said he would get off the air when he started spewing nonsense?
It's time Dave
I mostly disagree. This is terrible advice. The one point i agree with is you shouldn't count it as your 15%. Its really intended for medical. If you have to dip into your medical fund.. things are kinda bad. Most retirement people spend over 300k. I mean i get it. You can look at it as a traditional ira when your 65+. But unless you have exhausted all your roth investment options. Whatever you do to this account i wouldn't count it. Especially if your considering going out before 65. Do you want to take out 20k for fun and pay the government 5k in taxes? Or pay 20k to you doctor and owe nothing? My point is if your thinking the money here is for fun... thete are better investment options.
That said. You should fully fund it if you can afford to. The investment options are more limited, and the amount you can contribute is pretty low. The power of your hsa is more dictated by time. The less time invested the worse off it is. Even if you can only do $50 per check. Its around $110 per month. Over a 40 year work history thats around 600k. If you fully fund it for 20 years its only 250k.
Theres practically no catching up in hsa. Time wins here. You should contribute as soon as your able. I mean sure.. pausing for 2 years to take care of consumer debt is fine. I just mean.. you shouldn't fund it last. Especially if you have health issues. Waiting too long to contribute to hsa basically makes it almost not worth doing.
I think the person who asked this question referred to investing with in HSA from the contribution he/she put in. As long they have cash equivalent to their max deductible for a given year, they can invest remaining cash they have in that account. HSA is now becoming part of main retirement account even though it was intended to be for medical purpose.
It's pretty unlikely anyone will hit their 15% using just their HSA. I don't know if I'd count it towards my 15%, but after that if you're looking for other places to save and invest, it's a great option, I would argue the best!
I wish they would let people have a their own FSA/HSA/HRA and NOT go through their employer. My employer doesn’t offer this option but I still have one through and previous employer and it’s been great. My husband got hurt really bad and then had health issues as a result and we were stuck with $7K in expenses the insurance didn’t cover. Our HSA was so helpful in that case. Heaven forbid anyone be responsible
Hsa isn't offered through your employer. It's only offered with a high deductible insurance plan.
@ that’s offered through your employer… I’ve explored the option, and been told I cannot get one outside an employer
@@Kaycee226 how? You can get a high deductible insurance plan outside of your job. It costs alot more money, but you can get it. With the high deductible, Hsa's are automatic
There's nothing stopping you from funding a outside HSA as long as you are only funding isn't over the limit.
Contribute to the HSA and maintain a healthy balance in the safe side (my company has a minimum of 2k to be there), and invest the rest. If you want to be conservative maintain your deductible on the safe side. I agree not to consider the HSA part of your 15%, but assuming you are not blowing through what you contribute you can still invest it once you built up the fund.
people just watch dave for entertainment, its really life netflix....
😂
For real. I mean hos values are in line with mine. He just takes them too far. So i don't see it as educational.
Dave you are so wrong in this. Your HSA can be used as a retirement account and you aren’t taxed when putting the money in or when you take it out at retirement.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $2m+ before retirement
As a newbie investor, it’s essential for you to have a mentor to keep you accountable.
Kristine Lynn Weber is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Kristine Lynn Weber, for her expertise and exposure to different areas of the market.
I don't really blame people who panic. Lack of
information can be a big hurdle. I've been
making more than $200k passively by just
investing through an advisor, and I don't have
to do much work. Inflation or no inflation, my
finances remain secure. So I really don't blame
people who panic.
Without a doubt! Kristine Lynn Weber is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted on thorough research and years of practical experience.
how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally.. What's your take on this approach? and How can i reach her, if you don't mind me asking?
I think Dave missed a part of his question. By all means, invest your "significant amount" in your HSA into mutual funds inside your HSA. If you have plenty of excess money, max it out because it's triple tax savings. There's no tax on your contributions, no tax on the gains from the investments and no tax on your qualified distributions. For us commoners, it's a VERY good product.
This is really silly advice. If you know you are going to have ANY medical bills, you can literally put the money in the HSA, take the tax deduction, and then use it to pay for qualified medical bills. You don't need to be in BS7. But he's right, when you get to BS7, you should max it out, invest it, and let it grow and pay out of pocket for medical, but good lord, at least take the tax deduction before BS7. SMH
Granted, you have to have a HDHP, HSA compatible, but if you do, it makes zero sense to not put the money in there and then pay the bill.
@@todd2456 I don't know why he get's that it's ties to a low cost deductible.
By saying that, it seems like he does not know how it works.
@jimmymcgill6778 but one needs to have a high deductible health care plan to be able to invest in it,, right? Isn't that one of the requirements?
Anyone on BS4 who is already maxing 401k match should be maxing HSA. It's AMAZING.
@@marcenelj Yes. But Dave said low cost deductible.
I started working at age 11 with a social security card and have paid into the program every year since then. I basically only know one thing, that’s work. That’s the dark side of starting to work at the young age.
It depends on how your family did it. My family did it to teach me about work. Work ethic. How to accomplish goals. How to pay bills & do basic money management. Job searching. Basically teaching me real adult life skills. I was not required to have a 40 hour job at 12. But they encouraged me to pursue ways of making my own money and be responsible.
So i don't see the downside of what my parents did with me. Its not like i was working to put food on the table. So i look at those times positively. Because i still use a lot of those things i learned today. And it didn't interfere with me being a kid. Nor affect my grades.
@pdxmusl1510 I paid for everything outside of food, board, and car insurance (after I had a car). I had to carry over enough money through the school year to get by as I was a 3 sport athlete and wasn't able to work much.
I worked long days. I didn't spend my Summers with friends at the swimming pool. It was work, work, work.
Yes you can.
It's tied to a high cost deductible, not low cost.
But you should also invest outside it.
You can easily withdraw for past medical.
hmm... An HSA is basically a 401k. The difference being that you only qualify for it if you have a HDHP and you can pull money out at any point, tax-free, if you have a qualifying expense.
But Dave is right that this is a nuance. It's a small, tactical thing that won't make a difference in your world if you get the big picture stuff wrong.
I was going to an HSA and get a HSA qualified health plan but then I found out California treats it and taxes it like a brokerage account. I was so pissed off. Fed still doesn't tax it but to me it's not even worth it anymore.
I'm doing HSA at the max. It's not a lot of money that can go in as a single person on my policy.
I count my HSA towards my investment % because I invest it for retirement. But I invest 33% total, so it’s a pretty small percentage of that.
I’m maxing out my HSA and investing it in a Vanguard fund. I’m hoping they change the rules and allow covering healthcare premiums so I can retire early.
hmm. I would partially disagree with dave. While I don't count my hsa as part of my retirement investing I do max it out every year and invest it in mutual funds. Also my work gives $1200 free to the hsa. I have been getting about 15% profit growth in it every year. You contribute to the hsa tax free, you grow tax free and you can use for medical tax free. At the moment I don't even touch it for medical. I pay medical out of pocket and then save the receipt in the cloud. I imagine I will have some kind of medical issues in the next 20 years which will open up the funds to withdrawal. If needed 10 years from now if I really need money and can submit the receipts and pull that medical money out. There is no time limit. I actually didn't know that at 65 I can pull out for anything though so thanks. After that I contribute 5% for the 401 k to get the 80% match and trying to max out the roth. after that I will continue to put more in the 401 k.
But any retirement investments are taxed and penalized if withdrawn before retirement years, right? How is that any different?
@3:27 Papa is wondering what is under the desk and discovers it's Ken's lunch leftover stash.
He found Ken's man cave he built will Dave was gone. Don't worry he'll say it's Delonys safe room
@djpuplex 😂😂😂😂
I'm really curious. By putting money in an HSA.. is the money invested in the market expecting a return or do people do it for the tax deduction?
Both
I do it for both.
I have HealthEquity for my HSA too and have earned about 13% on my money being invested there. I do it for both the tax deduction and the growth.
@QueenE789 One has to have a high deductible health care plan in order to participate, right?
@@marceneljYes, which means be prepared to use the HSA for expenses before the deductible. Better for healthy people
Thank you so much Dave and Rachel! I believe only 9% of hsa’s are actually invested.. and only I believe less than 1% invest the way you recommend in the hsa.. I did!
Now due to not having a high deductible health plan available.. I use a combine hsa/sinking fund that is after tax..
Now.. the goal to get out of this stupid deep state prison and have you free as well.. would help tremendously!
wasnt expecting this from dave
Sigh...it is an investment vehicle because 401K and IRA cant be withdrawn from without penalty until 65 plus too. So it does count toward the 15%
I really like the HSA, and it checks a lot of boxes.
Buy and hold mentality.
Goes in tax free
Grows tax free
Comes out for medical expenses tax free
The only triple tax advantaged account
It comes out at 65 like an IRA. Income taxed to balance against your capital gains tax bracket if needed
There is no timeframe for reimbursement on HSA claims. Pay out of pocket for years. Show your receipts later and let that money compound.
My order:
Match 3% work benefits
Max roth
Max HSA
Add to 457b/IRA
Add to brokerage account
Dave doesn't know what he's talking about. Company match 401k then HSA then if you have money leftover it's Roth.
Another non sense response. HSA is having trifecta advantages
That's right, always pay extra taxes on your medical expenses, never use your HSA. What ridiculous advice from Dave. Terrible investment advice that will put people far behind.
the whole part of investing for your kid is the #1 thing that needs to be taught to every adult out there, nothing grows like a couple grand in an investment account for 20years as your children grow
its also a little bit of privilege to have that extra income but if you care about your kids you'd put what you can even if its only a hundred a month
not ot mention most parents wouldn't be able to let go of that money to their children
All those who said he missed the mark, he DID NOT SAY to not invest in the HSA! He said do not count it towards 15% investment.
He also said not to do it until baby step 7 which is asinine
@@lepoj No it's not. Even The Money Guy does not recommend it until the final steps in your financial plan.
@azeemsiddiqui4764 Check again. The money guys say to invest after your HSA has at least the deductible or out of pocket max. Waiting to invest until you pay off your house is beyond stupid.
Why would you put it in mutual funds? Low cost index funds is the way to go.
I disagree with Dave on this one. Company match>hsa>roth accouts>traditional (unless you have over 30% income tax then consider traditional over roth.)
Anything you contribute over your out of pocket max I would consider it toward investing. As long as you’re still contributing to other accounts where you can get your money earlier too
Is the marginal income tax effect not being considered here? It would seem to me that it would be wise to max out the HSA and even if not investing much get the current year tax benefits and build up a component of your emergency fund that could be used towards healthcare, etc.
The only bad thing about the HSA, you cannot transfer the funds to another HSA account for non-spouse beneficiary once you die. The non-spouse beneficiary must withdraw all the funds and pay income tax.
An HSA should be managed so that a large chunk doesn't get inherited by someone other than a spouse.
@@horacepierce9210Some boomers like to horde wealth and avoid taxes even after death. Some are spenders.
@@horacepierce9210 Marry early. Marry often. Wait a minute! :)
If you filed a tax return for Rachel's $1,700.00 were you still putting her on your tax return as a dependent? Not sure I understand this. Thank you.
If you earn income as a kid. Like through a paper route. You can file taxes. Your income is reported to the government. Even if your 12.
Most of the time, the standard deductions remove tax liability and you don't pay taxes. As i recall i made close to 8k one year. I think i was 15 or 14. The deductions & exemptions. I paid basically no income tax. As i recall i got some of my income taxes back. I dont recall the amounts.
Anyway. My parents did similar things for me. Not the investment stuff. But showing me how to navigate things.
I don’t believe when he said that he never spent single dollar in medical which are qualified HSA expenses. I think he doesn’t know what counts towards HSA. I don’t cash out , I use only for investments, however I also save my receipt so that I can cash out later after retirement and before 64
Bitcoin is teaching the ignorant what is actually money.
I think it’s time to let Rachel take over Dave….
Dave doesn't have the right to retire, he's not 80 yet.
Must be a lot of people who qualify for HSAs. According to my research, you must be in a qualified high deductible health insurance plan to qualify for an HSA. I guess that's why I don't have an HSA or know much about them because I am not in a qualified high deductible health insurance plan.
Sauna installed at your house can be medical? What about a therapy pool?
"Some little fart revives the thing" 😂😂
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person
My advisor is “ Sophia Maurine Lanting’ highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.
Careful with withdrawals at 65. Although you can for non-medical expenses, it's subject to income taxes. Folks, load up the HSA and pay out of pocket (if you can). Track those out of pocket expenses; it doesn't matter how old those receipts are, they can be used for qualified withdrawals later in life. Let that triple-tax advantaged HSA grow like crazy in the meantime. 📈
Thanks Dave I didn't realize an hsa was withdrawalable with no penalty for anything at 65.
It's basically an IRA where you have to pay taxes on withdrawals not used for medical once you hit retirement age
@@raiden031
To extend your comment.. its thought of as a traditional ira though. So you pay income taxes on it. So... if your adding money to it for medical expenses. For today or the future. Its a good idea. If your thinking to use t like another ira in retirement. You should look at it like a traditional ira. Meaning you should prioritize roth investing over hsa/traditional ira for fun money. Intention matters.
If you max it out thinking youll use it for fun. Youll have more funds available to you if you had redirected some of that money into roth instead.
@@pdxmusl1510 it makes little sense to prioritize Roth over HSA. More likely than not as you get near or into retirement age you are going to spend that money on medical bills. Roth is only better than traditional if the typical retiree ends up paying more taxes in retirement than they did in their working years because of higher tax rates in the future. I think betting on accumulated medical bills is the better bet.
Its only for medical expenses...makes no sense to dump alot of money into it especially when healthy.
Tell you don't fully understand how an HSA works without telling me
I count hsa contribution and employer match as partnof the 15% because I cant get to 15% without them. Life is expensive now. Most people borrow from the 401k and are drowning in debt.
The end of the day though it doesn't matter if your counting it or not. Hsa is inventivized for medical. And if your dipping in there now. Or ecpect to for medical expenses after 65. It simply means your not hitting 15%. Counting it as such just makes you feel better and doesn't match reality.
@pdxmusl1510 Yes I cover health cost now and save receipts. Part of my emergency fund is one year of out of pocket max.
Bad advice. Don’t need to wait until home is paid off. Even being super conservative, if you have a HDHP and HSA, just keep your deductible or out of pocket max in cash within the HSA and invest the rest.
I was wondering if there was to set up an investment account for a kid under 10years old. A friend did something similar where she owned her company,pays her daughter so she has an income and therefore is eligible for a 401k account. At that time I didn't think much of it
The only thing this video taught me was I am getting hungry for some cake.
Horrible response by Dave
Hope the money guys react to this one.
HSAs are incredible vehicles for retirement.
What’s the growth on HSA?
An HSA is a retirement account. It's a home for a set of tax rules, like a roth, IRA, etc. Once you fund your HSA, you need to manage your money. Generally, you do an HSA through your work and they have designated indexes you can buy into. Finding an S&P index is very popular. If you're self-employed, there are ways to get reimbursed and tax credits towards this and it adds another step.
Duh….of course not.
This episode was both very informative and entertaining. Loved Dave’s summary. What I found most entertaining, however was how Rachel still knows how to push her Dad’s buttons while maintaining a twinkle in her eye realizing she was doing it!
Rachel❤
I hate how they don’t talk about a 529 plan here
Why not?
You gotta put it in a HYSA
I always look up your videos for update! Our government has no idea how people are suffering these days. I feel for people with disabilities not getting the help they deserve. Thank you Mrs Linda, imagine investing $1000 and receiving $5,300.🎉🎉🎉
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
Trader Linda strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
Please is there any link or information about her, how can I reach her?
please educate me, I've come across this name before, Now i'm interested
Get her on
You can tell who didn't watch the entire video by the comments. lol
So he’s investing his but says you shouldn’t? Sorry Dave disagree
This topic is common sense lol