The Stock Watcher
Sign InSubscribe
Research

Maximizing Your Investments Through an HSA

 
Share this article

Learn how to make the most of your health savings account.

description: an anonymous person sitting at a desk, looking at a computer screen with financial graphs and charts, with a calculator and pen in hand, making investment decisions.

Investing through an HSA can be a smart financial move for those looking to save for medical expenses in a tax-efficient way. Think of your HSA as a home for your medical money. Just like a brokerage account or an IRA, you'll need to put money into your HSA before you can start investing it.

Health savings account experts urged employers to select HSA providers carefully due to the fee structures and available investment options. Retirement and health experts encourage the use of health savings accounts, but also warn that not all HSA providers are the same when it comes to investment opportunities.

Health savings accounts provide triple-tax benefits on contributions, growth, and withdrawals for medical expenses. They offer a three-pronged tax benefit: tax-free contributions, investment growth, and withdrawals. HSAs are a favorite among advisors, but research shows that many people use them like checking accounts and do not invest their funds wisely.

When it comes to choosing investment options for your HSA, consider funds like Vanguard Wellesley Income Fund Investor Shares (VWINX) and Vanguard Balanced Index Fund Admiral Shares (VBIAX). These funds can help grow your HSA balance over time.

After comparing 10 different providers for spending accounts, investment options, fees, and customer experience, Fidelity emerged as the top choice. Fidelity's HSA stands out for its low fees, investment options, annual percentage yield (APY) on cash balances, and no minimum balance requirement.

Labels:
hsainvestmenttax benefitsvanguardfidelityfeesretirementmedical expenses

May Interest You

Share this article
logo
3640 Concord Pike Wilmington, DE 19803
About
About TheStockWatcher
© 2024 - TheStockWatcher. All Rights Reserved