Should I invest my HSA funds now if I want to use them in one year’s time?

Submitted by SonoftheMorning t3_yfzp6o in personalfinance

I am 29 years old and am becoming more financially responsible. I understand that it’s a smart move to invest HSA funds and I’m considering investing most of my HSA funds into an index fund while keeping enough in the HSA to cover my out of pocket maximum for the year. Is it bad timing to do so right now if I plan to use the funds for vision correction surgery in a year’s time? I am worried with the predictions of a recession next year, though I understand that it’s impossible to know what will happen with the economy. Thanks for any advice!

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Rave-Unicorn-Votive t1_iu6180v wrote

It's only a smart move to invest HSA funds if you're using the HSA as an auxiliary retirement account. If you're using the HSA for present-day medical expenses it should be kept in cash/equivalent.

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SonoftheMorning OP t1_iu62e4h wrote

Thanks for the advice. I have a significant chunk of change in there right now so I want to make sure I’m using it wisely.

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Werewolfdad t1_iu61t4e wrote

Can you afford to pay for it out of pocket? If so, do that and just leave the hsa funds until you truly need them

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SonoftheMorning OP t1_iu62b1q wrote

It’s a $12,000 procedure unfortunately. I could pay out of pocket to do it right now but I’m hoping to buy a house in the somewhat near future. I have a good chunk of the procedure cost in my HSA and the game plan is to pay a small amount out of pocket to get the procedure done this time next year.

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Werewolfdad t1_iu62icx wrote

Then don’t invest because you may have less money then than now.

Or buy something risk free like treasuries.

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SonoftheMorning OP t1_iu65wlc wrote

Thanks for the advice. I don’t believe I can use HSA funds for treasury bonds.

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Werewolfdad t1_iu665og wrote

Why not? They can be bought in any brokerage account

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SonoftheMorning OP t1_iu66jys wrote

Good point. I have not looked into it, but I assume I could do that if I moved my HSA funds from Optum to Fidelity. Through Optum, I’m limited to index funds.

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