I believe the HSA (health savings account) is dollar for dollar the best vehicle that eligible Americans should use.
Because your money:
Goes in tax free
It grows tax free
And it comes out tax free
Now you might be thinking, “But Sharran there’s got to be other accounts that will let you do this?”
No.
No other account allows for this.
401k: Get in tax-free, grow tax-free, but pay taxes on the way out
Roth IRA: Get in after tax, but grow tax-free, and out tax-free
And so, here’s exactly what you need to remember to use an HSA account effectively:
Tip 1: You need a high-deductible plan. Your employer should have this option, so ask.
Tip 2: You should save all your medical receipts, because you can get reimbursed in the future.
Bonus Tip: There is a cap of $8,750 per family in 2026.
And remember…
The highest ROI investment is the tax you legally never pay.
If you enjoyed this money memo, could you please share this with a friend or family member you think it could help?
Until next week, for your next money memo.
Your main man,
Sharran
P.S. A thought that’s on my mind:
Taxes are the No. 1 drag on wealth creation.
P.P.S. Money Memos is a new series I’m starting where every Tuesday I’m sending you a tactical money tip you can use to create more wealth today.