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Originally Posted by eastern motors
My HSA is all in short term bonds. Has been since I started it because I have a low risk tolerance in this account. It that a correct way to think about my HSA or should my risk tolerance be the same in all accounts?
Should I switch to the inflation protected bond fund given tarriffs, potential new QE, and rate cuts coming?
Meh you should probably have mostly equities with maybe a small % of bonds. Not sure why you wouldn’t want to aggressively invest an hsa? You should not need to money for a long time and even if we go into a recession, you might just lose 30-40% of an account/ you shouldn’t touch either way and will just be buying everything at a deep discount.
If you were say 55-65, I would say you can have a conservative allocation however all bonds seems horrible (gotta have some equities).
Just pay all medical out of pocket/ maintain your health. You can reimburse yourself down the road these expenses if you want or just take money out for medical expenses when retired / take out money at 65 and older and just pay income tax.
Not sure why you wouldn’t want to maximize growth in this type of account. Stocks average what 8% a year and tend to always be up over long runs of time (25-40 years..... this might be a bad statement to make but you aren’t going to lose money and at worst you should average 5% a year if we just had some sort of long run bad economy which is not going to happen).