Health savings accounts can be valuable components of individuals’ savings toolkits, especially for those who can afford to pay their actual healthcare expenses out of pocket while leaving their health savings account assets in place to grow. If investors are able to pay out of pocket for healthcare costs and allow their HSA accounts to grow, the HSA assets can better harness the power of compounding, and the tax benefits are also more valuable when stretched over a longer period of time. Before they employ an HSA as a long-term investment vehicle, though, investors need to do their due diligence.
