Devenir’s Eric Remjeske and Jon Robb were recently quoted in a series of Investor’s Business Daily articles discussing the HSA market and what individuals should be looking for when selecting an HSA provider.
What Is An HSA? Health Savings Account Tax Advantages Draw Fans
Consider investing HSA funds if you think you won’t incur many health care expenses and you’re comfortable with the risk associated with investing.
“It’s dependent on individual circumstances,” said Jon Robb, senior vice president at Devenir, an HSA research firm. “If you have the ability to pay medical expenses out of pocket, hold on to those receipts (and claim them later); invest those dollars.”
Not planning to use HSAs as an investment tool to boost retirement funds? The accounts are still worth a look, says Eric Remjeske, Devenir’s president and co-founder.
“Even if you’re in a 15% tax bracket, you can still benefit from putting money in an HSA from a tax perspective and from a convenience standpoint. It’s the only triple-tax advantage product out there,” he said.
How To Compare HSA Fees, HSA Investment Options And More
Jon Robb, senior vice president at HSA research firm Devenir, says people should be “thinking about how they are going to be using HSAs.”
“If you’re going to be using it as a transactional kind of account for spending, then focus on debit-card functionality and online banking options,” he said. “If you are looking to use it more for investment and retirement planning, look at the long-term investment options that are offered and pay attention to fees.”
HSA Investment Advice: Think Twice Before Spending HSA Funds
Industry reports show that more and more HSA holders are considering investing their funds. HSA research firm Devenir found that health savings accounts grew to an estimated $45.2 billion in assets in over 22 million accounts at the end of 2017. By the end of January 2018, HSA assets had risen to almost $50 billion, according to its website.
Over the last eight years, the portion of HSA funds that were invested has steadily increased, from just under $1 billion in 2010 to $8.3 billion in 2017. Devenir expects that figure to grow to $10.5 billion in 2018 and $13.3 billion in 2019.