Stannis wrote:Toranaga wrote:I can talk about HSAs for hours so let me know if you want to know my strategy on how I use one, which in my opinion is the best way.
I definitely wouldn't mind that if you have the time. No rush as I won't be getting it until next month.
So I treat it strictly as an investment account and invest the entire balance.
If I have medical expenses throughout the year, I pay it out of my own pocket and scan the receipts to Google drive or whatever and keep a very simple spreadsheet of my medical expenses through the years to stay organized. The reason i do that is that there is NO time restriction on when I can reimburse myself for those medical expenses from the HSA and the reimbursement will be tax free.
So let's say I go to the doctor and get a $5k bill tomorrow. If I pay it out of pocket, I can reimburse myself 25 years from now if I want the $5k from the HSA and that withdrawal will be tax free.
So... 1) I contribute to the HSA tax free 2) It grows invested tax free and 3) I can withdraw the balance tax free if I have medical expenses covering the amount that I withdraw. I will pay zero taxes on that money and the investment gains, which is crazy and doesn't happen in this country. The reason you keep the receipts is in case the IRS comes knocking about your HSA withdrawals and all you need to do is provide the receipts covering the withdrawal.
And let's say I still have money left in the HSA when I'm 65, it just turns into another traditional IRA account and I'll be able to withdraw the funds for non medical expenses.
I'll always be on a HDHP for as long as I can strictly for the HSA advantages. I'm generally healthy too so that helps.
Aq_ua on mortgages, tax deductions, renting vs owning, Page 5.
CharlesOakley wrote:How many of you "investors" are also carrying a high amount of debt? If you aren't debt-free (excluding your mortgage), you shouldn't be investing yet.
Picking up on this, I think it's probably worth clarifying when/why a mortgage can be excluded. Most people used to get tax deductions for the interest on their mortgage, but only if they file itemized deductions on their tax returns. The 2017 Tax Cuts and Jobs Act changed some of that math for people, where it makes more sense to take the standard deduction than itemized deductions. For those people, there is no longer any tax deduction available for mortgage interest. In a lot of ways, that probably changed a lot of math around the overall benefit of home ownership period.
My general advice is to always consider renting before buying. Investing the money you would have to put down on a home purchase will more likely generate a higher return than the potential rise in home prices from here on out. Plus, given how low rental yields are now, the same equivalent in rent for the costs associated in home ownership probably gets you a nicer place to live today.
Original Thread Starter Post:
Has anybody used tastyworks or thinkorswim in particular?