Lively HSA Review & Tour: Invest with your Health Savings Account

Set up your FREE LIVELY HSA (and get $25!) HERE: https://rebrand.ly/lively-38619

If you are under age 40, and you have no pre-existing conditions, not expecting child, generally a healthy person, you should have a high deductible health plan (HDHP). And what else do you get with the HDHP? That's right, an health savings account (HSA), which is possibly one of the best investment and retirement vehicles you can have.

Tax-Free (medical expense) Millionaire Calculator: https://rebrand.ly/tax-free-009d6

A Health Saving Account (HSA) allows you to invest money before taxes, make qualified medical withdrawals tax-free over the course of your life, and when you turn 65, you can begin making penalty-free non-medical withdrawals, taxed at your income tax rate, just like a 401K or IRA.

I'm assuming you've already liked the video ; -), but please SUBSCRIBE and hit that cowbell to receive more GAMECHANGING personal finance, investing, career & personal development videos!

Note, if you make non-medical withdrawals before 65, you will incur early withdrawal penalties of 20%, on top of income taxes....

The key is to keep in mind that you will have medical expenses as you age, so there is no reason not to horde as much money as you can in an HSA. Please keep in mind that an HSA is different than a Flexible Spending Account (FSA), which is "use-or-lose."

For 2020, the IRS limits annual HSA contributions to 3,550 for single people and 7,100 for married people. These numbers go up about $50 per year (if your single) and $100 per year (if you’re married). So next year the limits will be 3,600 and 7,200, respectively.

So, if you start maxing out your 401K at age 25, by age, 65, you should have about $1 million dollars of tax-free medical expense money, according to my calculator. Feel free to download the calculator and mess around with it.

Tax-Free (medical expense) Millionaire Calculator: https://rebrand.ly/tax-free-009d6

My assumptions are based on the average healthcare inflation rate, an annual HSA contribution limit increase of 2%, and $600 per year of medical expenses at my current age, which is inflated over the years according to the medical cost inflation rate. The investment return is based on the general assumption of an 8% long term market return over time.

Please SUBSCRIBE and hit that notification bell to receive more relevant personal finance videos!

Immediate reimbursement is great if you need the cash now. Getting a reimbursement is great if you use a credit card to pay for medical expenses, so you can get the points, but then your reimbursement can cover the bill.

Future reimbursement is kind of like a savings account for un-reimbursed medical expenses. You can let the money sit in there for as long as you want, but then withdraw it whenever you need to, because you have already accounted for it. Most HSA servicers don’t have this feature, so this is why I really like Lively because it helps you keep track of all your expenses. Most HSA servicers put the burden on you to prove you incured those expenses, and that is what the IRS will expect, they will expect you to have records of all of your expenses. Lively lets you do it within their platform easily.

How to get that 8% return? I use the self-directed brokerage account at TD Ameritrade that is linked to Livelyme.com. I set up Lively to “Sweep” (known as a sweep transfer) any value of my account over $500 into the TD Ameritrade investment account, which exposes my money to the stock market. This is generally the best method, it ensures that you have a minimum amount in the cash account, while the rest is invested. I am invested in several ETFs within the brokerage account.

My iPhone filming rig: https://amzn.to/2SHknTQ
My wired lightning port mic: https://amzn.to/37la9ht
My very affordable tripod: https://amzn.to/31O6x6l
Auxillary lighting: https://amzn.to/2ONMQ9o
Tripod extension plate: https://amzn.to/2OObV4q
Tripod-mounted aux lighting: https://amzn.to/2tNmrRU

-Disclaimer: There may be affiliate links in the description above, which means I may receive a small commission which really helps the channel!

-Disclaimer: I am not a financial, investing, tax or legal advisor. The information presented is for entertainment and should not be taken as financial, investment, tax or legal advice. I invest based on my own research and principles. I am not responsible for any financial losses that may result from following my actions. Do your research and develop your own investing philosophy!

#hsa #lively #tdameritrade

Видео Lively HSA Review & Tour: Invest with your Health Savings Account канала Ian Seabrook