Question

Any HSA tips or resources? Young, healthy, and I barely have any medical costs throughout the year. I currently have enough in the account to cover my yearly deductible. I would like any further contributions to go toward investments for growth when I’m older. I’d also like to have LASIK eye surgery in the next 1-2 years. Any ideas on types of investments or stock/bond splits that work best for this type of account?  

Answer 1

If you know you’re going to have LASIK in 1-2 years I would want to have some multiple of my deductible + the LASIK covered in cash before I invested anything. We have ours set up to have 2x our annual deductible in cash, and everything above that in a total stock market index fund. We rarely dip into it (most medical expenses we just pay out of pocket) but when we do contributions are set to refill the cash balance before more investing.  

Answer 2

Mine is all in an S&P fund, less $100 for scripts and such.  

Answer 3

Aaron’s post about HSA’s is a great resource, though it can be burdensome to keep track of. I choose the simple route of keeping cash equal to my annual MOOP expenses (usually 5-10k does the trick). Then, the rest is invested aggressively for retirement healthcare or as another source of income that would be taxed if not used for medical.  

Comments

@capri I agree with you and your educated perspective. But, from the perspective of a normal person needing advice I typically recommend focusing on simplifying finances

Answer 4

Side note, LASIK is amazing and totally worth saving up for.