Why HSAs are the Right Choice for Young Professionals
This is a special blog series from Sears Insurance on Health Savings Accounts, or HSA plans, and how they work. Previous Health Savings Account (HSA) blog posts in the HSA series have focused on the benefits of an HSA, setup and funding an HSA. In the last HSA post, we will highlight why it pays to help young professionals fund future medical expenses using an HSA.
Young Professionals + HSAs
Young professionals should absolutely consider an HSA in the early stages of their professional life. Because HSA fund roll over automatically each year, they will be in your account until you choose to use them. Even better? There is no time limit in which you must use the funds.
Not only can you count on the triple tax advantages, including tax-deductible contributions, earnings and interest invested in mutual funds grows tax-free and withdrawals for eligible medical expenses that are tax-free, but you can compound your savings by beginning early. HSAs are an easy choice if you have a High-Deductible Health Plan (HDHP). The HSA can offer an opportunity to grow wealth, and this is often a key component for many young professionals who choose the HDHP/HSA combination. It’s a win-win to save money, invest and watch those savings grow over the course of your career and in preparation of any medical or retirement expenses that will pop up in the future. According to HealthView Services Financial, a healthy 65-year-old couple can expect to spend more than $387,000 for retirement healthcare costs. This statistic was from 2019, so you can imagine the costs have increased since then, and these costs do not include long-term care expenses.
The power of the HSA lies in early enrollment and tax-friendly saving. However, while this post is aimed at young professionals who have many years of their careers to take advantage, it’s never too late to look into how an HSA could help you. If you have questions about how to sign up for your own HSA, read the previous HSA blog posts on benefits and funding or visit searsinsurance.info.
Looking for tools to help grow your startup or small business? Visit the Small Business Resources Hub to find the information you need or sign up for Mentor Connection to build relationships with a trusted group of mentors.
Whether you’re working from home or in the office, your wellness should be a top priority. Learn more about getting active and keeping tabs on your mental health here.
Debra Sears is the owner of Sears Insurance, an independent health and life insurance agency in Greater Des Moines (DSM).