My HSA plan
1. Currently I have 18,000 total in HSA funds
2. My goals is to consolidate my 2 account.
One account has 12,000 and the other has 2,000. My goal is consolidate all into my Fidelity account.
3. Fidelity is my HSA provider
They seem to be the best
4. Every month I add $300 into the account.
The total you can add per year is $3,850 for 2023.
In December I will add enough to get reach the maximum.
In 2024 the total will be $4,150.
The IRS sets the amount that can be added into the account each and it generally increases with inflation. Which means that it should go up each year or every other year over time, how much you may contribute.
5. My employer does not contribute to my HSA, some do
If you have an employer find if they do, because that might be part of your compensation.
6. Keep enough cash to pay health insurance deductible
I always plan to keep enough cash in the account that would cover my health insurance deductible, which is high. My deductible is about $5,000/year. HSA require the participant to be in a High Deductible Health Insurance Plan.
7. I plan to contribute until I retire
Which means that I could be contribute for the next 30+years.
8. If I contribute for the next 10 years just the principal would be $36,000
It will likely be much more than that, because they amount you are allowed to add to your account will increase as well as any gains you receive from your investments.
9. Investing for growth
I do not plan to use the majority of the cash in this account until I am older. I am investing the majority of the money into individual growth stocks. Or at least stocks that I believe will grow over time. Right now I have about $8,000 invested into 14 different individual stocks.
A few are: DIS, GDDY, BRK.B, CRM
Each month I add more money into the account I divide the money equally into the 14 investments.
10. Saving the receipts
An important key to this strategy is to save any receipts right now that could be considered 'health' related. You can and will need to reimburse yourself at a later date to use these funds.