Investing in an HSA: Yay or Nay?

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A qa a. Hey, major, how you doing girl?

I'm doing well? Long time, no see, I'm excited for the question this week. We haven't talked about this topic in.

A minute, but before we do, because this is a financial question, remember that we are not you'll financially advise us, and we're not your attorney, and we're not even your mama, but we are to really keep brown girls you can girls friends though we could be friends. But what that means is this is not professional advice. It's purely for entertainment only. You're going to lean it to the people

Salt aka suya Granny not us?

Okay, okay, please for Granny.

Well, I got to get.

Sued, all right, Okay, this question? Shall I read it?

Yeah?

All right? We got a good juicy money question today from Instagram. Oh, by the way, did we tell them how to send a question.

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Yeah may so it's the way, all right. This is from IG from listener Adriel. Adriel says, Hello, I'm a longtime listener, first time DM er. Y'all have helped me get my life together and I'm on track to maxing out my four oh one K and my HSA for the first time ever. Thank you. I'll go, Adriel. My question is about HSA. She says, I'm in my thirty early thirties and I'm generally healthy with no plans to

Well, question, First, let's talk about what it's in HSA.

Yeah, a little recapy cup.

So, just so you know, HSA stands for help Savings Account. White people love it is because it's tax advantage savings.

It's a tax evand savings.

Account that lets you set aside pre tax money. So what that means is that, like, hello, this money like your four one k. It means that you won't pay taxes on the money right now, which would lower your taxes currently, and then later you'll pay taxes.

Leader.

Well no, actually, wa pay taxes leader, not if you use it for quality.

Like a triple tax benefit. So it's the Yeah, you don't pay taxes on it as long as you use it for medical expenses, retirement. I think that's like the thing.

Yes, yeah, And so the goal is to help you save money for medical expenses that your health insurance company might not fully cover.

You can use HSA funds to pay for like deductibles, co payments, co insurance, prescriptions, dental care, contacts, eye glasses, bandages, X ray girl on the worps do works.

So the girls love HSA. It's like a win win, win win win. Now here's the thing about HSA that's also really great is that, unlike an FSSA, a flexible spending account right, that hsas don't have a use it or lose it rule. Because with the FSA right isn't if you don't use it.

They're like, girl, you.

Thought so you sometimes okay, yeah, sometimes you need to like ask because yes, most of the time, I think up until a certain amount, it's like if you have more than five hundred, I think you lose it. Yeah, sometimes it can a little bit can roll over to the next year, but typically it is like a use most of it or lose it kind of situation.

So hsas don't have that, which is great. So any used funds and your HSA will automatically roll over to the next year and to continue to grow tax free, which is great. So then you can still use these funds for medical expenses. So with that being said, what I really like about it too, you can keep your account even if you change jobs, retire, or are terminated.

Okay, So they're portable, which is really great.

And hsas can also be invested, which I don't think you know, which sounds like crazy, but it's really awesome. So you can invest a portion of your HSA balance once you have at least a thousand dollars in your account before you can open though an investment account. Most HSA's are going to require you to maintain a minimum cast balance to come for healthcare costs, and so just keeping keep that in mind. Yeah, So here's the thing. So you can definitely invest in mutual funds. Sometimes you

Should I you know, like, I don't need it.

I'm I'm healthy, which is great because you can run it over year by year.

What's young and healthy one year? Is I need the money the next year. So it's something to keep in mind.

So for example, I just went to the dentist and your girl has a crown that I've had for quite some time, and I should have had a replace, but honestly, I was grieving.

Girl wasn't the right thinking about that.

And so as a result, I now have to like get it taken off because I have like that there's some like cavity underneath it and blah blah blah blah, and it's costing me more than what my insurance is going to cover. So I have to come out of pocket, I don't know, like twelve hundred dollars or something like that.

Toile insurance is notoriously the worst and least useful.

I'm just like I just it just allowed me to say I'm here.

So I'm just saying that to say that, like, even though you're young and all the other stuff that you don't know, you don't know what life can bring, so you want to be mindful that.

Like the good thing about HSA is that it can build and build and build.

So not all money it's meant to be put to work. Some money is meant to protect you, you know, in an evident because inevitably everyone needs some sort of health like coverage. So I just would just say, just be mindful before putting it all into the market, really asking yourself how much do you want to have set aside, because no one wants to come out of pocket two, three, four or five six thousand dollars, you know, when that money can been sitting in your HSA waiting for you.

Well, I just wanted to point out some fine print with the HSA because I've actually never had an HSA because I was never I never chose the high deductible health plan. So typically when you have you have to your company wherever you get your insurance, you typically need to have a high deductible health plan, and that for example, that is when you have a health plan that is typically a lower premium each out of your paycheck or each month that you pay and in exchange for that,

Yeah, and so like, Honestly, HSA is just one of the best accounts for saving for retirement, for setting time money for potential.

Help them fire.

People love it, they do, honey, because honestly, where are you going to find a triple tax advantage account where you know that like, one, you know you save, I'm paying taxes now, Two it's allowed to grow tax free, and three if you use in a specific way, you don't have to pay tax on it later.

It's like bam, bam bam.

Because typically for example, your four one K, they're you know the tax benefit is, Hey, it lowers my taxes now, but I pay taxes later when I retire.

A row IRA is the opposite.

It's like, I pay taxes on it now, but I don't have to pay taxes on the growth and pull it out later. But this is like way you don't play taxes on when I put it in, I don't play taxes on the growth, and I don't play taxes when I take it out if I use it in a specific way. So it's it's one of these rare accounts that you have one maximizing it isn't your best

I was gonna say, no, who is it? Kik who's a good one?

And y'all know I love me some by Kiki. Yes, she's a triple threat. Beyonce's triple threat is hair care.

Yeah, I get, but I feel like Kiki, I canna say Brandy, but Brandy can't dance because she can see is You're not the best actress either.

I saw her Hallmark movie No Come On.

Now, not Moesha. Well, I don't know if that was great acting, but we all love movies.

You love Brandy and always will forever. And well, what were we talking about?

I'm like triple threats because we're talking about a triple threat. But do we know who the trouble thread of these days? Honestly, Kiki Palmer is a.

Really good one because that bitch can do everything and.

Bitch, I mean like she it's true, but I'm not dang we what about her?

Her? Herd Oh does it have to be dancing. I thought it was singing acting. Oh okay, never mind. Yeah, Tianna Taylor, Tiana Taylor, Taylor acted her ass. Yes in one thousand and one. That's a beautiful film. And I don't know why she didn't get nominated for anything.

Taylor, she's one of the few.

And I would say Mary, I mean because we love Mary's dance.

I mean I don't know her a dancer, remember she almost does she get that? Ask her because the acting was her point.

But I don't know if dancing and singing it depends on favorite.

There's only that have like a handful of reels that I go back to you on a rainy day when I just need to be cheered up. And it's not even her, but it's like the Merry impersonation. The boots, but she had those, like she has those really expensive boots now, like there rose something. Yes, I don't know what brand it is, but there are thousands of dollars, yes, and there's one of a girl dancing in those and it's like the dance moves came as well.

Yes, there are not many triple threats, y'all know. Some triple threats sign our DMS and let us know or tweet us DBA podcasts and because I loved, like, what is a choice a true triple threat? Man?

Would you call Jennifer low peznger girl?

Stop because where is the singing? The dancing?

Yes?

No, we're left.

Real singing there. Yea's beautiful because.

First of all, I've heard her set skin of no we all the acting, no, the singing.

Question on the record, defending j Lo and many times. And dance.

I think she could dance?

Can she dance?

That is okay, we're gonna give her dancing all right.

Other triple threats I google it. We have Lady Gaga. That's a good one.

Oh yes, yeah, she definite act. Yeah that's true. Okay, who else?

Alicia Keys is not?

I mean who said that?

You know what?

Tiff like, I think that you were including dance and I don't think it'll dance is necessarily. I think triple threat is like three page that's true because like Zendaya is here, although she can do all those things and Deya is a good one her as off. You saw her Bruno Mars tribute karaoke, so her and Tom Holland both went on that karaoke dance show with John Kristinski or whoever Jimmy fallon one of them. Yeah, and she was Bruno Mars and she did the most epic impersonation.

Okay, so we got some people.

Yeah, what were Queen Latifa? Donald Glove? I love Queen Latifa Rihanna herself, she asks.

I say, we just know she's that bitch, but I don't know if she's that bitch. Bitch bitch, you know what I mean?

And once again I have landed, Like I'm on the boat with you and I'm rowing, do you know what I mean? Like? I support this trip? But where are we going?

No, because we're just so much.

Are we going on this boat?

Because we're saying the HSA is a trip friend and so we're gonna bring it on back.

All right, y'all?

Any other land I see land right?

If you have any other financial triple threats, let us know before we sign off. Do we have any new reviews that we want to read?

Oh? I think yes, we have a new one. Let me just shake up my.

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