Hey ,

There is one account that sits inside most Americans' benefits package, opened during their first week at a new job, barely glanced at during annual enrollment, and almost never used to its full potential.

It is called the Health Savings Account. And it is the most underused wealth-building tool in the entire US tax code.

Here is what most people do with their HSA:

• Leave the balance sitting in cash earning 0.01% interest
• Use it to pay every medical bill as it comes in
• Never look at the investment options inside the account
• Treat it like a medical checking account and nothing more

Here is what the people who actually understand it do:

• Invest the full balance in low-cost index funds
• Pay current medical bills out of pocket
• Save every receipt — there is no time limit on HSA reimbursements
• Let the balance compound tax-free for decades

The difference between those two approaches on a $4,300 annual contribution at 7% average annual return over 20 years:

The cash approach leaves you with roughly $4,300 plus minimal interest.

The invested approach leaves you with $16,626 — completely tax free.

And here is the part that makes the HSA unlike any other account in America.

It carries a triple tax advantage that no other account in the US tax code can match:

You contribute pre-tax — which reduces your taxable income immediately. It grows completely tax-free — no capital gains tax, no dividend tax, nothing. And you withdraw tax-free — for qualified medical expenses at any age, or for any reason after age 65.

No 401k. No IRA. No Roth. No brokerage account offers all three of those simultaneously.

The action step for this week is simple.

Log into your HSA provider account right now. Find the investment tab. If your entire balance is sitting in cash — move it into a low-cost index fund today.

That one action, taken in under 10 minutes, could be worth $50,000 to $200,000 over the next 20 to 30 years depending on your contribution level and time horizon.

Talk soon,

Grant
The Compound View