The money in your account that you don’t use over time grows with interest and can be tapped for future health expenses or it can be moved into an investment account for retirement. If you see the doctor frequently, an HSA is probably not a good idea for you. But if you don’t, you can end up with a big pile of cash that grows with interest if you remain fairly healthy.
HSA investment picks
With HSAAdministrators.info in particular, they’re an affiliate of Vanguard and offer a full suite of 22 Vanguard no load mutual funds. There’s even a simple money market account available for those who like to take the conservative approach.
HSAs are not for everyone, but if you are in fairly good health and generally seek value in everything you purchase, this program probably will allow you to reduce health insurance costs and retain the savings.
There are some people who don’t like HSAs, of course. They think all of the money is being funneled to the healthy and rich. But it’s better than our current system.
Of all the economic output in the United States, 15 cents of every dollar goes to health care. That’s about 50 percent higher than any other developed country. We are basically sapping our nation’s economic growth with the enormous amount of money going to health care. Let’s take back some control, people!
Special thanks to Health Savings Administrators for use of their content.