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Investing can always be like gambling. It’s like if you asked five different people for advice on this problem, you’d get five completely different and contradictory pieces of advice. Still, some advice may be better suited to your financial situation than others.
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One such piece of advice comes from Haley Sachs, a “gillennial finance expert.” In a video posted to his Instagram, Sachs describes an investment strategy that he claims is often used by wealthy people to get even richer because it has “more tax benefits than Roth IRAs and 401ks.” Explained.
Read on to find out how this investment strategy works.
Earning passive income doesn’t have to be difficult. You can start this week.
Consider a Health Savings Account (HSA)
Health Savings Accounts (HSAs) offer one of the “most tax-advantaged accounts” as long as you have a high-deductible health plan (and the opportunity to open one, Sachs said in the video). ). ).
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structure
HSAs are three tax-advantaged accounts. In short, we offer you a three-step opportunity to grow your money.
Invest pre-tax money in an account
Grow your money tax-free
Withdraw money tax-free at retirement
Sachs said this is a common tactic used by wealthy people, who maximize their investments in their accounts (you can invest $4,150 a year in an HSA), then pay out-of-pocket medical expenses and reduce your medical expenses. He argued that it should be reduced. Out-of-pocket costs are lower than those incurred within an HSA.
Additionally, the money that grows tax-free within your HSA can be withdrawn at retirement age (also tax-free) to cover medical expenses as you age. This is what Mr. Sachs revealed. According to the 2022 Fidelity Retirement Health Care Cost Estimates, the average couple spends more than $315,000 on retirement health care needs alone.
If you’re looking for a highly profitable investment plan that’s proven among the wealthy (and has helped them get even richer), consider opening a high-deductible HSA to start investing tax-free. Please.
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This article originally appeared on GOBankingRates.com: Great investing secrets only the rich know, according to financial influencer Haley Sachs
