There is such an investment that I’ve used over the years and I love it!
It’s called a Health Savings Account or HSA for short.
You can invest in an HSA if you have a qualifying high deductible insurance plan with your employer (or with your own insurance provider if self-employed). You should check to see if your current health plan has an HSA option or if it makes financial sense to switch to another health plan with an HSA option.
The contribution limit for an HSA each year is $7,300 for a family (this is the 2022 rate & it usually goes up each year).
So, check this out:
- When you contribute $7,300 over the course of the year, it reduces your taxable income by that same amount - awesome!
- Then as the $7,300 grows in a good, low-cost index fund,...