I left my old job in mid 2015. That was a grand moment. As the year came to a close, I enjoyed the last few remaining winter months happily unemployed and free. Then, in March, I went back to work.
Anyway, that doesn’t matter. This story isn’t about work. Instead, it’s all about a little HSA account I adopted way back in 2013, and its now rather imminently impending replacement.
Major news! The GBP/USD has fallen HUGELY since June 23.
Everyone on investing boards and blogs should be discussing this en masse:
GBP/USD Brexit Effects
See that? That is a 10.43% decrease between June 23rd and today, July 5th. And now what a great time to buy in!
That title just sounds a lot slicker than “Unusual Retirement Account Funding Techniques.”
Last year in April I wrote Debt Free, my ode to faithfully filling up my Vanguard Traditional IRA to its $5,500 brim. At that time I was about $2,500 short of maxing out my IRA. My solution was to fund my Target REDcard (since discontinued by American Express) by charging the $2.5k to my Capital One VentureOne card, withdrawing the balance from REDcard to my checking account, and finally transferring the funds to my IRA account.
Milestone attained. I’m debt free!
No longer have I the big scary education loan or distasteful car note. Nope. All paid off as of January 2015, and on schedule too!
Instead I’ve recently taken out a $2,500 ‘loan’ from Capital One. Not wanting to miss out on contributing to my Traditional IRA for tax year 2014, I took my VentureOne credit card over to Target and loaded funds onto a Target REDcard. Once loaded, the funds were withdrawn to supplement my linked bank account. From there it was simple to transfer the full $5,500 to my Vanguard retirement account. That account holds just 1 fund, VTSMX Investor Shares with a lowly 0.17% expense ratio.
A Health Savings Account (HSA) incentivizes saving for medical expenses and is made available as a feature of high deductible health plans. With my employer, I have the choice of either a high deductible health plan (HDHP) or a normal health plan. Opting for a HDHP makes sense at this point in my life because I am young and have great health. A HDHP is also one-fourth the cost compared to the normal health plan and still allows annual medical checkups and coverage of the common medical disaster scenarios (albeit at a higher deductible).