The Ultimate Millennial Millionaire Health Insurance Benefit That You Don’t Want to Miss Out On!

Background:

Free resource: Money Management estimator

Example:

Benefits of an HSA:

  1. Pay period contributions reduce your payroll taxes. If you wanted to max out from the HSA example by covering the $2,990 difference; it would take you an additional $115 per pay period. This would equate a tax saving of 7.65% or $228.74 for the year. It’s a funny math thing. Go with it.
  2. It’s tax-deductible at any income level and tax-deferred as it grows. For example, if you are in the 12% tax bracket, that’s roughly another $420 per year. It’s another math thing. Go with it. So far you are saving up to $650 per year in taxes. This ends up being a cost-efficient way to handle your medical expenses.
  3. You can use it for any medical expenses. It counts for Dental, for rehabilitation, etc. When you convert your plan for the family; if you decide to have kids, you can cover it. Your kid runs into a tree, it’s covered. Imagine saving even $3,000 annually for 5 years; that’s $15,000 just like that. It comes in handy since medical emergencies tend to happen every 4–5 years give and take.
  4. Some HSA providers let you invest your saved money into stocks and market equities which grow and yield dividends. Your money making money for you. $3,000 invested for 10 years at 7% return rate with yearly contributions of $3,000. Ending balance $47,350.80. Ding-Ding Ding. That’s an increase of $14,350.80
  5. If you save all your medical receipts toward the end and never claimed them while investing the money, it gives you one more gift. The HSA transforms into a regular IRA account (at age 65). After that, you can use the money for everything. You can theoretically offset years of expenses to the tune of $$$$ tax-free (for example). It’s an incredible proposition. Think of it, if you had $150,000 to use tax-free to buy a rental property just like that.
  6. This is why they call HSAs, the Triple tax advantage accounts. Don’t believe me listen to the other folks listed below (I wrote this in 30 mins, trust but verify):

As always, share, like and definitely begin having the conversation about money before it is too late.

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Financial Literacy Educator |Money Story 💰Negative $125k Net worth to $660k in 9-yrs 💸Paid off over $350k in debt 🔑 and Traveled to 25+ countries.

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The Neighborhood Finance Guy

The Neighborhood Finance Guy

Financial Literacy Educator |Money Story 💰Negative $125k Net worth to $660k in 9-yrs 💸Paid off over $350k in debt 🔑 and Traveled to 25+ countries.

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