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Health Savings Accounts (HSA): The Ultimate Retirement Account


Roll call - Who uses their HSA as the "ultimate retirement account"?

The wife and I were discussing our plan to save for our house downpayment. She did not realize we were shoveling 53k per year into our retirement accounts and wants to cut back. She also doesn't like the idea that I want to cash flow medical expenses (will be trying to have a baby in the near future) as opposed to using her HSA. I had to explain why we are doing that and pointed her to the Mad Fientist article as well.

No.  I have uses for it now.  But I do want it to keep accruing-- so it eventually will be retirement health.

While I agree with the concept, I'd rather just have the money now on the medical expenses. Once the three years has passed you can toss the receipts.

A bird in the hand is worth two in the bush.

The extra money now lets us do more... but then we are already investing a significant amount for retirement/long-term as well as saving/spending more on the non-long term. Not including the HSA, since it's still in the cash accumulation phase, we are putting in over $66k in 2016... by far our highest amount ever in one year. More than double what we put in during our first year using [the other budgeting software], and 5 times what we put in the year before starting [the other budgeting software].

[the other budgeting software] has helped control our spending which has allowed us to save/invest more in general.

ETA... our HSA investment options are pretty limited. The only investments of interest are Investor Shares of Vanguard 500 and Vanguard Total International.

Hadn't read that article - interesting info!  I just opened my HSA for 2017 and set up recurring monthly payments to total the max yearly contribution.  Had no idea I could reimburse myself... whenever... for my expenses if they're tracked.  Honestly probably won't, though.  :P


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