Optum Financial- 'A Tale of Two' Health Savings Account Journey [Video]

Our vibrant, fresh story introduces health savings accounts in a fun way. Meet Joe and Jill, who are using different approaches to saving and investing their HSA funds.

Joe and Jill both have high deductible plans which pair nicely with their HSAs. Joe contributes a conservative amount in his HSA, and he chooses to save on taxes by using his HSA for health care costs. Jill contributes the maximum amount, pays for her health care costs out of pocket, and uses her money to reinvest.

Watch to see why they make their choices, how they’re saving and spending their money, and how they ultimately reach their financial goals.

Whatever decisions you make with your HSA, you win. HSA all the way!

Transcription

Meet Joe: 25-years-old, three years out of college.

Joe dreams of home ownership but student loans and insurance costs stand in the way.

Joe has a high deductible health plan, for lower monthly expenses.

Meet Jill: also 25, and three years out of school.

Jill’s in a different place than Joe based on financial circumstances.

Jill has a disciplined savings strategy to build a future nest egg.

Come retirement, Jill wants to comfortably afford care, plus have cash to travel.

She’s tucking away money, plus maximizing her 401(k).

Jill has a high deductible plan, like Joe, and is concerned current insurance costs could derail her strategy.

While assessing their options, Joe and Jill learned about the health savings account, which pairs with their high deductible plans.

The HSA presents Joe and Jill savings opportunities to pay for care, tax-free. What’s more, they can accumulate interest and earn investment returns—which are never taxed by the IRS!

Joe uses his HSA for a conservative savings strategy, while Jill takes an aggressive approach.

Joe contributes $3,000 a year to his HSA until retirement, while Jill contributes the max allowable amount for the same stretch of time.

Jill marries and has children, boosting contributions up to family limits.

Joe allocates $1,500 a year for medical expenses.

Jill goes out-of-pocket to cover care as much as possible, to build up her HSA.

Down the road, Joe gets comfortable investing his HSA dollars, and reinvests all earnings.

Jill immediately starts investing, earning annual interest and investments, while reinvesting all earnings. She further leverages the $1,000 catch-up at 55.

While their balances are quite different, Jill and Joe have nest eggs for retirement.

Now retired, they can use HSA funds for non-health expenses, which helps their funds go further!