Investing for growth in an HSA

July 21, 2022

If you think of an HSA as a home for your healthcare money — especially in retirement — it makes sense to put away as much as you can into this triple-tax-advantaged account.

Healthcare expenses during retirement can really add up fast; the average couple going into retirement can expect to spend approximately $315,000 on medical bills in their golden years. Indeed, having a healthcare nest egg can mean spending less of your regular retirement income on healthcare but still being able to meet those needs as they arise.

While Medicare can help offset those expenses, it isn’t free, and it doesn’t cover everything. Let’s take a look at HSAs and how they can help retirees with their overall wellness and provide peace of mind about the cost of healthcare during those post-working-world years.

HSAs in retirement

An HSA is a great supplement to your 401(k) in retirement preparedness. Not only can you lower your taxable income while working by contributing to the account via payroll deduction, but you can also use the account as you save. When medical bills arrive in your mailbox, you can utilize the account for those bills — even before retirement age.

The triple tax savings from HSAs are unbeatable. The money you put in isn’t taxed, and the money paid out isn’t, either. But the best part? You can invest the money in your HSA and grow it — tax-free — as an added bonus. Your 401(k) is great, but it just doesn’t have the same triple-tax-advantage bragging rights.

Investing your HSA funds

Indeed, investing your HSA funds can pay off as you prepare for retirement. Of course, before investing you'll want to make sure you understand and feel comfortable with your risk tolerance, as funds may lose value due to market fluctuation. Long-term returns should hopefully net your account some substantial growth over the course of several years though. 

Omnify HSAs have plenty of investment options, with 41 mutual funds to choose from under eight mutual fund families. Our investment accounts also have low monthly fees and no transaction fees. If you want to invest your HSA dollars, it’s pretty simple. You’ll need to keep at least $500 in your deposit HSA, but you can invest anything above this threshold by simply establishing your account through our online portal, setting up your investment elections, and transferring funds from your deposit account.

We’re here to help!

For assistance with investing your HSA money or for answers to your questions about these accounts, please contact Omnify and we’ll be happy to assist you.

  • Personal
  • Investing
  • HSA

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