• STYLE. COMMUNITY. GREAT CLOTHING.

    Bored of counting likes on social networks? At Styleforum, you’ll find rousing discussions that go beyond strings of emojis.

    Click Here to join Styleforum's thousands of style enthusiasts today!

Talking stocks, trading, and investing in general

Piobaire

Not left of center?
Joined
Dec 5, 2006
Messages
68,113
Reaction score
35,264
You're forgetting the growth on the 5k for the hypothetical 20 years. Also, I figure cash flow today vs. cash flow in retirement.
 

otc

Stylish Dinosaur
Joined
Aug 15, 2008
Messages
19,240
Reaction score
9,634
You're forgetting the growth on the 5k for the hypothetical 20 years. Also, I figure cash flow today vs. cash flow in retirement.
But it isn't the growth itself--just the difference between the pre-tax vs post-tax money growing (assuming you don't just blow any money you don't put in). You'd still get growth on your taxable funds, and that growth would only get taxed at cap gains vs income rate for non-receipt HSA distributions.

I'm too lazy to work out the math, but I don't think the gains are insane, especially considering the 3.5k/person limit.

You still come out ahead...but you'd better come out ahead if you are the crazy person stashing receipts for 20 years.
 

Marc Voorhees

Distinguished Member
Joined
Sep 16, 2012
Messages
1,214
Reaction score
996
But it isn't the growth itself--just the difference between the pre-tax vs post-tax money growing (assuming you don't just blow any money you don't put in). You'd still get growth on your taxable funds, and that growth would only get taxed at cap gains vs income rate for non-receipt HSA distributions.

I'm too lazy to work out the math, but I don't think the gains are insane, especially considering the 3.5k/person limit.

You still come out ahead...but you'd better come out ahead if you are the crazy person stashing receipts for 20 years.
Is there a chart to prove this?
 

chickenfark

Senior Member
Joined
Nov 16, 2013
Messages
577
Reaction score
1,687
The funny thing with insurance is you don’t want to use it but when you need to for something big, you say f-it and spend as much as possible.

Someone smarter than me needs to make something where the incentive to be healthy and not spend so the savings are shared with the patient. I realize there are weird Co-op plans but those don’t work for large pools.
i work in healthcare and there’s an optimist part of my brain wants to build something that does that. Insurance is such a wild industry to me where one hand is not taking the other, for example where pharmacy budgets and physician administered budgets are tracked in silos so there’s no incentive (broadly) to make an investment in one side that could pay dividends on the other. And then you have entire systems built to just kinda make it annoying to provide the stuff patients ultimately need, which adds churn to the system and so on. Unfortunately you’d really need to move mountains to make big systemic change in this space with how much money is involved in it.

(just my two cents after some beers)
 

gettoasty

Stylish Dinosaur
Joined
Feb 8, 2010
Messages
15,710
Reaction score
9,727
@Marc Voorhees

JP Morgan Asset Management prioritizes an HSA even before your 401(k). Here's a chart to prove it. As retirement accounts go, this supports the benefits of HSA as described so far if only it is marginal difference. If you really want to see the math behind, I may ask someone to run this at work as I am little curious too.

1602998396049.png
 

brokencycle

Stylish Dinosaur
Moderator
Joined
Nov 21, 2008
Messages
18,634
Reaction score
12,873
I would never put money into my HSA before hitting the 401k match. That's incredibly stupid. I get an instant 100% return on my 401k contributions. How would I come close to that in an HSA?
 

Texasmade

Stylish Dinosaur
Joined
Apr 26, 2008
Messages
10,078
Reaction score
7,898
I would never put money into my HSA before hitting the 401k match. That's incredibly stupid. I get an instant 100% return on my 401k contributions. How would I come close to that in an HSA?
How the fuck do you get an instant 100% return?
 

gettoasty

Stylish Dinosaur
Joined
Feb 8, 2010
Messages
15,710
Reaction score
9,727
FWIW after making my post I did reread that bottom line and it says "...if eligible for match."

I've wanted to open up an HSA for a year or more now but still trying to find out how to connect my employer's payroll with a provider. Our company recently added some life and AD&D for everyone. Maybe HSA can be next.

The most common 401(k) match I've seen is "put in 5 to get matched 4" or 100% of first 3%, then, 50% of the next 2%. This is before any safe harbor and profit sharing.
 

Texasmade

Stylish Dinosaur
Joined
Apr 26, 2008
Messages
10,078
Reaction score
7,898
FWIW after making my post I did reread that bottom line and it says "...if eligible for match."

I've wanted to open up an HSA for a year or more now but still trying to find out how to connect my employer's payroll with a provider. Our company recently added some life and AD&D for everyone. Maybe HSA can be next.

The most common 401(k) match I've seen is "put in 5 to get matched 4" or 100% of first 3%, then, 50% of the next 2%. This is before any safe harbor and profit sharing.
My company match is 100% on first 3% and then 50% on the next 2% so in total it’s 4% of my total salary.

If you’re on a high deductible plan with an HSA, it makes sense to contribute to get max ER 401k match and then max contribute to the HSA. The HSA comes in handy when you have an accident and your deductible is like $3500. I know from personal experience when I had to go to urgent care earlier in the year.
 

Styleforum is proudly sponsored by

Featured Sponsor

Most Interesting Fashion Collaboration of 2020

  • JW Anderson x Uniqlo

  • Nigo x Virgil Abloh

  • Converse x Midnight Studios

  • Rick Owens x Champion

  • Barbour x Engineered Garments

  • Adidas x Bed JW Ford

  • Jordan Brand x Dior

  • Billie Eilish x Takashi Murakami

  • Lego x Levi's


Results are only viewable after voting.

Related Threads

Forum statistics

Threads
446,297
Messages
9,650,960
Members
201,665
Latest member
Rob H
Top