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Save for Future Health Care Expenses with Low-Cost Vanguard® Funds

The New Year is a great time to consider your finances, including contributions to 401(k)s, IRAs and HSAs. Are you maximizing your options to save for the future?

Investing part of your health savings account (HSA) is a great start.

  • Contribute pre-tax (or make tax-deductible contributions to) your HSA.
  • Invest the funds (just like your retirement plan) so that the money grows tax-free over time.

Even better, this money is not taxed when used to pay for qualified health care expenses.

For example, if an accountholder contributes $3,300 per year to an HSA and invests the money (in low-cost Vanguard® funds, for example), with a 7% rate of return over 30 years, that money would grow to $323,418*.

It could be used tax-free to pay for qualified health care expenses without having to dip into other retirement savings. Our website has online calculators to show you how much you could save.

*Scenario is hypothetical. Future rates of return can’t be predicted with certainty and investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Author: Chris Lambert


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