Based on historical data, investing in the S&P 500 typically outperforms any management company. No active management has consistently beaten the S&P 500's performance in the market. Therefore, the value of financial service management may be overstated, as the cost-to-expense ratio often ranges from 0.0% to 0.8%. Over time, these fees can impact the investment returns.

​Even when some management companies claim to have outperformed the market, it's essential to consider that their reported returns often don't include substantial dividends. Over the past 10 years, the end index went up 190%; however, the total return for the S&P 500 has been around 250%, with dividends reinvested. In summary, investing directly in the S&P 500 and diversifying by including bonds for added security is advisable.

HSA stands for Health Savings Accounts, a federal program established in 2004 for individuals under the age of 65. People in this age group can contribute pre-tax income to the account for qualifying medical expenses.
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HSAs are typically paired with high-deductible health insurance plans, meaning the insurance requires you to pay high deductibles, ranging from $2000-$3000 per year, before insurance companies cover your cost. Typically, employers may provide benefits to contribute to HSAs, such as $1500 per year, so review your company’s benefits policy for specific details. It should be noted that the high deductible insurance typically provides 100% preventive medical support, such as annual physical examinations, vaccines, weight loss plans, and examination of high-risk diseases such as cancer.

In short, if you have low medical expenses because of good health or can afford high-deductible medical insurance, investing in an HSA account as soon as possible is a great choice

Next, let’s analyze the pros and cons in detail. First of all, HSA has the following advantages:

• No time limit: Unlike FSA (Flexible Saving Account), there are restrictions on the use of the current year. There is no time limit for using money in the HSA account. The bill also has no time limit — you can reimburse your eligible medical expenses incurred after opening an HSA at any time or even after many years.
• Not affected by job changes: HSA can migrate with users when switching jobs.
• Tax-free: The funds used for medical care in a Health Savings Account (HSA IRS Publication 502) can remain permanently tax-free. However, funds withdrawn for non-medical expenses before retirement are subject to federal income tax and a 10% penalty. Additionally, money in an HSA can be invested, and the interest and dividends earned from these investments can also be used tax-free for qualified medical expenses. After retirement, withdrawals for non-medical expenses will only be subject to federal income tax.
• Inheritable but avoid inheritance outside the husband and wife: HSA holders can leave the money in the account to the heirs by designating beneficiaries. If they are husband and wife, the spouse can transfer HSA to their own account and continue to enjoy the tax incentives of HSA. If they are spouses, the heirs must receive the full amount in the current year and pay annual income tax.

In summary, the HSA account offers a triple tax advantage: contributions are tax-deductible, medical expenses are tax-free, and non-medical expenses can be tax-deferred.

Finally, the best strategy for using HSA is as follows:

• Join HSA as soon as possible and invest the maximum amount in the HSA account every year.
• Set up the investment of the HSA account. This is very important because cash will depreciate due to inflation.
• Choose a broker such as Fidelity HSA that has no or low management fee.
• Keep all eligible medical receipts and postpone the reimbursement of the reporting fee until after age 65. The goal is to allow the tax-free growth of funds in HSA. You can take advantage of investment growth and leverage inflation by reporting expenses later.
• After the age of 55, couples each should open an HSA account to use the additional $1,000 that each person can invest (Catch Up).
• If you continue to work after age 65, you can extend the HSA contribution by delaying enrolling in Medicare. In other words, your HSA contribution will be stopped after you start Medicare.
• After the age of 65, prioritize using HSA (limited to eligible medical expenses after you reach the age of 65) or using the pre-deposited bill to withdraw all the money.
• Organizing medical bills: You can sort out HSA receipts by creating digital and physical folders and marking them by date, record type, doctor’s prescription, store, and purchased items. You can also create spreadsheets to manage.

After having your own medical insurance, create an HSA account, make contributions, set up investments, and keep medical bills for future tax-free withdrawals.