Twelve Days of Christmas - Part 2

Day Four

How is Your Health Savings Account Invested?

This is one of the biggest mistakes I see from high-income physicians. They participate in an HSA but never invest the funds. HSAs are triple tax-free accounts. And if you are not planning to use them for years, why not invest them? Most HSAs do require a minimal amount be kept in cash, but the balance is usually free for investing.

Day Five

Be a Guinea Pig

If you are considering a big change, maybe test it out. I know an advisor who always dreamed of living on a lake. They rented a lake house for a summer and realized it was not for them (too noisy). This testing can be used for anything from having a vacation home to going with reduced hours at work. If you have the ability to test something out before you make a final decision (Regis Philbin voice), I recommend testing it out as a guinea pig.

Day Six

No Income Limit for Roth 401k

I had this argument years ago with a client who happened to be a CPA. There is NO income limit preventing you from participating in a Roth option within your employer’s 401k. While you cannot do a regular Roth, you can take part in the one through work. Assuming your employer allows them.