Self-direct your HSA and invest in what you know. Listen as Mark shows how he uses his HSA to invest in owning Cows, Hay, Crypto Mining, and a rental in Chicago that he bought ten years ago. Mark explains how his rental in Chicago paid for his daughter’s braces. Mat uses his HSA to invest in public stocks and crypto. Why an HSA? You get a tax deduction when you put money in and it comes out when you have medical tax-free at any age. This is the only deal out there where you get a tax deduction on the way in, tax-free growth, and it comes out tax-free for health care expenses. This is an essential strategy that should be used by both low and high-income investors as there are no income phaseouts.

Articles and Videos referenced in the show:
“Three Unique Benefits of Health Savings Accounts You Never Knew”

“Last Chance to Write-off an HSA for 2020”

“Back Door Roth IRA Rules and Steps”

“The Coverdell ESA or Educational IRA: The Hidden Gem”

Learn more and sign up for the E-Newsletter at www.directedIRA.com/podcast.

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CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

A Health Savings Account (HSA) is a tax-advantaged savings account that is specifically designed for individuals who have high-deductible health insurance plans. The money that is placed into an HSA can be used to pay for qualified medical expenses, such as doctor’s visits, prescriptions, and medical procedures.

One of the great benefits of an HSA is that the funds in the account can be self-directed. This means that account holders have the ability to invest their funds in a variety of options, including stocks, bonds, mutual funds, and other securities. By investing the funds in an HSA, individuals have the potential to grow their savings and further reduce their healthcare costs.

To self-direct an HSA, individuals first need to ensure that they are eligible to contribute to the account. In 2021, the maximum contribution limit for an individual is $3,600 and $7,200 for families. Those who are over the age of 55 are allowed to make additional “catch-up” contributions of up to $1,000 per year.

Once an individual has contributed to their HSA, they can begin to self-direct their funds. This can be done by selecting from the investment options provided by the account custodian. It’s important to note that not all custodians offer the same investment options, so it’s important to shop around and select a custodian that offers a wide range of investment options.

When selecting investments for an HSA, it’s important to consider the long-term potential for growth, as well as the level of risk involved. Individuals should also consider the fees associated with the investment options, as high fees can erode the potential for growth.

In addition to selecting investments, individuals can also manage their HSA funds by monitoring their account balance, tracking their medical expenses, and taking advantage of tax benefits. Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free. Additionally, funds in an HSA can be carried over from year to year, allowing individuals to build up a significant amount of savings.

Overall, an HSA can be an excellent tool for individuals who are looking to reduce their healthcare costs and invest in their future. By self-directing their HSA funds, individuals have the potential to grow their savings and take control of their healthcare expenses.