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Posted by jIM on May 30, 2008, 7:25 pm
On May 30, 2:11 pm, "HW "Skip" Weldon"
> wrote:
>
> >2) a Healthcare account (Flexible spending account) is not an HSA.
> >There is a huge difference. Flexible spending is a use it or lose it
> >proposition, meaning you only put in what you spend that given year.
> >An HSA carries money over year to year and also can grow like a 401k
> >with investments, interest and similar (all tax free).
>
> Do HSA accounts offer stock funds, or are they fixed accounts only?
I am in month 6 of my HSA. It currently has enough in it to pay this
years medical expenses. This is my disclaimer.
Here is my understanding:
I have an HSA which earns interest and behaves as though it is money
market account. I need a chunk of the HSA in cash because I need to
cover immediate medical expenses (for example in 2008 I knew wife
would give birth to twins, so I knew most of money in HSA would be
spent). It does not make sense to invest that money in anything other
than cash.
I have an option to use brokerage within my HSA. That costs something
like $10/year. There might be transaction costs on top of this
depending on funds chosen.
I received the paperwork for the brokerage account when I enrolled,
but did not act on the paperwork because I know I needed cash in the
account for 2008. My understanding is YES I can invest the money in
anything (mutual funds, etfs, stocks) as I could through a broker, but
the fees for doing this suggest making a single lump sum investment as
the best choice.
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Posted by jIM on June 5, 2008, 2:08 pm
>
> I received the paperwork for the brokerage account when I enrolled,
> but did not act on the paperwork because I know I needed cash in the
> account for 2008. My understanding is YES I can invest the money in
> anything (mutual funds, etfs, stocks) as I could through a broker, but
> the fees for doing this suggest making a single lump sum investment as
> the best choice.
>
My HSA (thru JP Morgan Chase) details:
no debit card fee (for transactions or having a card)
$1.85 account maintainance fee (monthly)
moving money into or out of HSA Investments ($0)
$1.67 per month Maintainace of investment account
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Posted by Mark Bole on May 30, 2008, 8:58 pm
jIM wrote:
[...]
> The key point about an HSA is that money goes in tax free, the
> interest and capital gains compound tax free, and health care expenses
> from it are with drawn tax free. That triple threat (tax free
> contributions, tax free growth, tax free withdraws) is not something
> found in too many places.
In fact, it's not even found here.
Money goes in tax *deferred*, earnings grow tax *deferred*, and tax free
withdrawals only for medical expenses, no matter what age, are the key
points about an HSA. If you take the money (earnings *or*
contributions) out for other purposes, you will always pay income tax on
it, maybe a penalty too.
> Add to that when comparing an HSA to a 401k, you can access HSA money
> at any time tax free for health care spending (there is no age to
> start withdraws). You can contribute now and spend later, contribute
> now and spend now and some employers even will contribute to this
> account for you too (mine does).
HSA's are a great idea for young, healthy people, last I heard, but the
market is changing fast, or at least I hope so!
-Mark Bole
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Posted by hoosieradvisor on May 30, 2008, 5:11 am
hh_online@mindspring.com;556041 Wrote:
> After a job change and required company stock sale, I am going to have
> around $75K after taxes. My question is, what's the best thing to do
> with this money?QUOTE]
>
> Hire an experienced independent fee based registered investment advisor
> who accepts no other compensation from any other source other than from
> his clients; and do two things: (1) Have him run a goal-based financial
> plan, and (2) build you a diversified stock portfolio. If you hadn't
> noticed we're in a bear market and bears don't hang around forever.
>
> I strongly disagree with the person who advised that you buy a couple
> of investment books and do it yourself. You're playing with fire if
> you do that. And Wall Street has a giggly truism that is bantered
> about behind the scenes: "Money always returns to it's rightful
> owner."
>
> Truisms are called truisms because they are true.
>
> Good luck friend.
--
hoosieradvisor
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
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