09/09/2026
The most powerful account in the entire tax code, and lots of people don't use it right.
Some employers are starting to auto enroll workers into HSAs, the same way they do with 401(k)s.
Nearly half of employers now automatically sign employees up for an HSA if they choose a high deductible health plan. That is up from about a third just a few years ago. Some companies are even adding a match, just like a 401(k).
I have a high-deductible health plan. I have a health savings account and I love it.
It's a powerful investment tool.
Lots of people treat their HSA like a debit card for doctor visits and prescriptions. Money goes in, money comes out for medical expenses, balance stays low.
But that's not the way to do it.
Its triple tax advantaged. Contributions go in pretax. The money grows tax free. Withdrawals for medical expenses come out tax free too. No other account works like that.
Most employer HSA plans keep your money sitting in cash until your balance crosses a certain threshold. After that, you can invest it. But you are usually stuck picking from a short list of mutual funds, the same setup as a typical 401(k).
You can open a self directed HSA, roll your funds into it, and invest in alternative assets instead.
Real estate.
Private lending.
Things outside the usual menu of index funds.
Money growing completely tax free for decades, spent tax free on medical costs down the road, sitting in something you actually chose and understand.
The coolest thing is you don't need to reimburse yourself for medical expenses right away. You can pay for the expenses out of pocket now, save receipts, and then reimburse yourself 10 years down the line.
Take the money out tax-free and use it to go on vacation.
If you want to understand how a self directed HSA works and how to set one up, send me a message.
We have a custodian that we've been using for years. We have vetted them. I have multiple accounts with them and many of our investor community members have accounts with them as well.
*Not financial advice. Consult a qualified financial advisor before making any investment or tax decisions.
Zachary Richards
Co-Founder, REI Capital Guys
