In the past an IRA would be the next account I would recommend, but the HSA has taken 2nd place in my hierarchy of investment vehicles. An HSA, or Health Savings Account, is similar to a 401K or IRA in the sense that you can use it for investment/retirement purposes. The difference is an HSA requires a health insurance plan in order to open this account type. Your insurance plan must be a High Deductible Health Plan (HDHP) to meet HSA eligibility requirements. For 2016, you can contribute up to $3,350 per year as an individual, and $6,750 as a family, if all are covered by this account. A great site to keep up with HSA maximums, as well as other Tax Related concerns, is Fairmark.com . The reason I recommend an HSA over an IRA is for access reasons. If you were to try and access your 401K or IRA for medical reasons, there would be a penalty for withdrawal in most cases (medical hardship withdrawal)...but not for an HSA! Your HSA account is made for this reason, so save some withdrawal paperwork and take advantage.
3 Month Recap of the Share Repurchase Newsletter
Stocks started the year off in the red, but are now back in positive territory. Since the release of the Share Repurchase Newsletter in mid January, our portfolio is up 7.22%! Compare this to the S&P 500 (SPY), which is up 1.94% Year to Date, and 6.6% since the release of the Share Repurchase Newsletter as of the close on March 18th. Good start to the year in the overall market, as well as our portfolio, despite the grim start.
You have to start teaching your kids what it means to own their own business at an early age. While I don't have kids myself, I think the earlier the better. They may not understand all the nuances of what they're learning, but never underestimate them. Sometimes you just have to break it down.
Am I Ready to Invest in the Stock Market? Part Two
If you've gotten this far, you've likely already started a budget, and you have a reasonably sized emergency fund to cushion from the unexpected. See Am I ready to Invest in the Stock Market? Part One if you missed it! To add to your budgeting and savings goals, lets get into your first steps to start investing.
Akeem The Dream
I enjoy discussing and learning about technology, stocks, sports, and beating my wife at Dominoes! As I learn, I love to share with family and friends so that we can share our knowledge. Thanks for being apart of the journey!