Tuesday, February 2, 2010

Health Savings Accounts

I was talking with a client and he said his HSA earns more than his investment account. Thats because HSAs generally earn 2-3% depending on size of balance at a participating bank. Thats not bad considering CDs are just below that. HSAs also receive favorable tax treatment. All contributions are tax-deductable; Its essentially a Health IRA. And premiums are lower compared to co-pay plans. The difference in premiums can be deposited into the HSA and used for medical expenses like doctor visits and prescriptions.

Put yourself in control of your health care. And another perk is that the plan is yours. Individual health insurance stays with you regardless of job situation. So if you hear the President tell you that millions of insureds will lose their coverage this year, you do not have to worry; He is talking about employer based coverage. Individual health insurance IS the solution to the problem. Lets give tax credits to people so they can purchase the logical solution.

Investment accounts are great, but having a solid foundation of health, life, dental, critical illness, disability, long term care, an irrevocable living trust, and cash savings account in conjunction with a Health Savings Account, is the best way to protect your assets, lifestyle, income, and your family from a medical bankruptcy.

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