Don't Forget Your HSA!
Welcome to Saving Money with Andrew!
Almost three years ago, I wrote about two of my favorite tax-favored savings accounts in Saving Money With FSAs and HSAs.
We use a dependent care FSA so that we can pay for up to $5000/year in childcare and summer camp expenses pre-tax (the list of eligible expenses is very broad!), saving thousands of dollars in the process.
And we also have an HSA because we’re on a high-deductible health plan.[1] We contribute the maximum, both because it’s tax-deductible,[2] and because our employer makes an additional contribution each year to encourage us to use it.
If you can afford to save more, HSAs are great addition to a 401(k), an IRA, and a 529 account. And, if you don’t need to tap it for healthcare expenses, it makes a great vehicle for long-term retirement savings.
Loyal reader Michael recently reached out with a couple of other great HSA tips I hadn’t thought of.
First, make sure to check your HSA investment options. Often, your HSAs will put you in cash (often earning low interest) by default, or require a portion of the balance to be left in cash. Make sure to check your investment options - you may instead be able to invest in a low-cost index fund.
Also, if you have an old HSA from a prior employer, don’t forget about it! You may be able to roll it into your new HSA at your new employer or, if you don’t have a new HSA, into a broker like Fidelity with a wide range of investment options.
And now, Andrew’s pick(s) of the week:
Please run, don’t walk, to fix the privacy settings on your Venmo account: This Is a Reminder That You’re Probably Oversharing on Venmo
Some incredible stats from The Summer Women Flexed Their Spending Power:
Ticket sales for women headliners in the top 25 tours are up over 400% from last year, said Lesley Olenik, global tour promoter at Live Nation. Sales of tickets for Beyoncé and Swift’s tours represent 66% of all the sales for the top 10 artists on tour around the world, according to secondary market ticket seller StubHub. Among the top 50 acts globally, the average ticket price for female artists is $660, compared with $245 for male artists, said StubHub.
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Maker of Iconic Martin Guitars Competes With Fulfillment Centers for Workers
Germany’s Tardy Trains Cause Cultural Crisis; ‘an Embarrassment’
The Dream Was Universal Access to Knowledge. The Result Was a Fiasco.
I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories.
[1] Note - to have an HSA, you must be on a high-deductible health plan. If you’re on a traditional health insurance plan through your employer, you may instead be eligible for a healthcare FSA.
[2] To be more accurate, HSA contributions paid by paycheck deduction are excluded from taxable income.