Main Street Business

#525 3X Your HSA: The Secret To Supercharging Your Wealth

• Mark J Kohler and Mat Sorensen

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In this latest episode of the Main Street Business Podcast, host Mark J. Kohler explains the strategic benefits and mechanics of Health Savings Accounts (HSAs). Unpack the tax advantages, flexible contributions, and the array of investment opportunities available through HSAs. From cryptocurrencies to real estate, learn how to maximize your HSA for both health and wealth.

Here are some of the highlights:

  • Mark explains how an HSA is portable and can be set up with any employer or as an entrepreneur.
  • Mark breaks down the 2024 contribution limits: $4,150 for singles, $8,300 for married filing jointly.
  • Users have the ability to invest HSA funds in various assets (e.g., cows, crypto, rental property)
  • How HSAs can be used for retirement at age 59.5 if not used for medical expenses.
  • Two investment options: Traditional HSA with limited investment choices and Self-directed HSA with broader investment options.
  • The importance of reimbursing yourself for past medical expenses.
  • Potential for higher returns compared to traditional investments
Speaker 1:

Welcome to the Main Street Business Podcast with your distinguished hosts, mark J Kohler and Matt Sorenson. Both are best-selling authors and have over 25 years of industry experience, with 10,000 client consultations, making them the leading tax and legal experts in the nation. Together, they'll unpack the most complex tax, legal and financial strategies crucial for saving more, stressing less and building generational wealth. Today they're your personal advisors, ready to break it down for you and make the tax and legal game easier than ever. Here is Mark and Matt.

Speaker 2:

Today I am going to teach you a secret about the health savings account the power of being able to invest your HSA in what you know best.

Speaker 2:

I've actually invested my HSA in cows, a crypto mine, a rental property and tripled the value of my health savings account with this little-known secret called self-directing. Did you know that you could invest your health savings account when you're not using it for medical expenses? Did you know you could self-direct your HSA and buy cows or rental property or cryptocurrency? Well, you're going to learn how today. Now. I'm a registered CPA attorney, best-selling author and own several businesses in the tax and legal industry, and over the last 15 years, I've been teaching this strategy to thousands of clients, saving thousands of dollars in taxes by better deducting their medical expenses. I've even been using the HSA myself, and you know what's even fun. I own cows and a crypto mine inside my HSA, making money tax-free to pay for my medical expenses. Now let's get into it. I want to first explain what an HSA is, the benefits of an HSA, and then how you can invest your HSA to make tax-free money and pay for your medical. That's where the cows come in.

Speaker 2:

All right, so now, what is an HSA? It's a savings account. Think of it like a retirement account for your medical. But you don't have to wait until you're 69 and a half to use it. You can use it tomorrow. So it's an account that you can take with you anywhere you go, get a tax deduction to put money in it, invest it in whatever you want, let it grow and then pull it out tax-free for medical expenses. Yeah, did you catch all that Incredible? But and this account goes with you anywhere you want. You don't have to be an entrepreneur to have one. You don't have to have an employer that provides one. You can set one up easily if you have the right type of insurance policy. That's it. That's it. There's very, very few drawbacks and I'm going to go through the list of the good and the bad here in a moment. But first of all, just know it's an account. You can manage it, grow it, build it and pull money out tax-free for medical expenses.

Speaker 2:

Now some of you are like well, mark, I have a lot of medical expenses, or I've got to put money in this first and then I can write off my medical expenses. No, no, no, it's even easier than that. Let's say, you had some medical expenses just a few months ago. If you have a health savings account, you can put the money in on day one and on day two pull the money right back out and reimburse yourself for your medical expenses. You just manufactured a tax write-off. See, you can get write-offs for medical expenses you wouldn't otherwise be able to.

Speaker 2:

Another point a lot of people think well, mark, I get to write off my medical expenses anyway. Oh really, who told you that? For us that are a little older and have been turning in our medical expenses over the years to our accountant and I'm the accountant breaking them the bad news but if you've been turning in those medical expenses and your accountant goes, yeah, you make too much money you can only write off your itemized medical expenses after a certain level and it's based on your adjusted gross income. Here's the short end of it you don't get a write-off. The number you may have heard is this 7.5%, that you can write off any medical expense over 7.5% of your adjusted gross income. So if you make a hundred grand on your tax return, you can't write off any medical expenses. No write-off at all until you're $7,500 and next dollar. So I can write off $1 if I have $7,501 in medical expenses. That's how it works. It's terrible. And so the average taxpayer getting into bigger medical expenses soon realizes I can't write off any medical. Now, if their day job has an HRA or a flexible spending account, that's the use it or lose it plan. Those are fine, they're okay. But the creme de la creme, the silver bullet, the holy grail of writing off all of your medical expenses is the health savings account.

Speaker 2:

Now let me try and say this one other way. Then we're going to go through the pros and the cons. You own a small business, you don't. You have a day job, you don't. But if you have the right type of medical plan, you can open a health savings account this year, put into it $4,150 if you're single or $8,300 if you're married, filing joint, get a tax deduction and then invest that money and pull it out whenever you want for future medical. Or you can have that account open to live and well, and when you do have a medical expense, pay for it with your debit card or out of pocket whatever, and then turn around, put it in your savings account and pull it right back out and reimburse yourself. You just manufactured a write-off, so in effect, you are now getting a hundred percent write-off for all of your medical expenses. It's ingenious, it's beautiful, it's amazing.

Speaker 2:

Insurance companies don't really want you to know about the health savings account because they want you to pay for expensive insurance where they cover everything. Oh, I just have a little $5 copay for prescription drugs or a $10 copay if I go to the doctor and the insurance company makes money off of you. With a health savings account, you're still going to have health insurance and it's there for any catastrophic bad stuff. It's going to be a high deductible plan. I'll explain that in a moment, but in the meantime, if you're healthy, you can have this health savings account growing and building tax write-offs for you and tax-free wealth that when you do have a medical expense, you can pull it out or again reimburse yourself for a medical expense. Now, if it's still a little hazy, hang with me, keep listening. I'm gonna explain the pros and the cons and at one point it's gonna click and you're gonna go oh my gosh, this is crazy. Because I've taught this so many times, I know that it can seem a little complex, but then all of a sudden it's going to come together and you're going to see the power of the health savings account.

Speaker 2:

Who is this perfect for? It is perfect for the person that's generally healthy. They don't even use their health insurance. That's a lot of Americans. It might be you. Your employer provides you insurance. You buy your own healthcaregov insurance Fine but you really don't use it. You're generally healthy. You're a perfect candidate for the health savings account.

Speaker 2:

Now, if some of you have a lot of medical expenses, you need great insurance. There's a certain network that you've been in for years that you may want to hold off on doing an HSA because you need this health insurance plan that really pays for a lot of medical for you. You're on a tight budget and you need great health insurance because you're maybe a little unhealthy. I've been there. I get the. It's overwhelming. The number one cause of bankruptcy in America now is medical expenses. So I get the strain on your family. When you have high medical expenses, go out, get the best insurance you can. But for the rest of you, you might be in that phase of life right now where you're generally healthy, you're not even using your health insurance.

Speaker 2:

Oh my gosh. This is the golden opportunity. So what you're going to do is get a high deductible plan and with this high deductible plan, you're telling the government, eh, I'll self-insure myself. If I got to go to the doctor, I'll come out of pocket for my deductible, which you're going to get a write-off for. But you say, eh, I'm okay, I'm going to just get a policy where, if something really bad happens, I get in an accident, I need some surgery, I go to the emergency room, I get cancer, whatever. You have health insurance but you're going to have a higher deductible.

Speaker 2:

Now, in the meantime, that allows you to open the health savings account, start putting money in there, get a tax write-off, grow it tax-free. It's like a Roth account on steroids, because if you're building a Roth or an IRA or 401k, I need you doing that. That's awesome. You're building retirement, but it's the same type of account that you're building for your future medical expenses tax-free. So, in summary, when you're healthy, you want to be funding this account and getting a killer write-off and then, when the time comes, you pull it out for medical. That's where it's used most efficiently. Now let me try and close a loop on this and then we're going to go through these 10 incredible benefits and I'm going to summarize them for you.

Speaker 2:

But that money you're putting away the $41.50 if you're single, $8,300 if you're married. Finally, joint, you're putting that away every year. You're getting a tax deduction to do it. Then you're investing it. You get to choose how you invest it. Yeah, you can do ETFs, exchange traded funds, mutual funds, stocks, bonds and all that stuff, or you can invest in creative things and really grow it. Then when you pass, go again think of monopoly you're going to pass go. Next January you can put another $4,150 or $8,300, adjusted for inflation. It always goes up. So every year you're putting more gas in the tank, this $4,150, and then whatever you invested in, it could double or triple. You could buy Bitcoin, you could buy Solana, and it triples, and now it's worth $15,000 next year. And you put your next 4150 in. Now you got 20,000. So the growth in that is tax-free. You're never taxed on it, and every year you get to put another round of gas in the tank.

Speaker 2:

Now, maybe next year you see some medical expenses coming down the pipe and you're like, oh, I really need some better insurance this year that pays for more of it. I'm going to stick it to the insurance company. Fine, get on an HMO with a better plan. Guess what you get to keep the HSA. The HSA is still growing. You don't get to put your 4150 in next year because you didn't get a high deductible plan. You went for maybe a PPO or HMO plan where you needed more support, and then the year after that you're like, hey, I'm doing pretty well, I'm going to get back on an HSA plan.

Speaker 2:

You get to bounce back and forth. You're going to take advantage of the insurance company when you need them to pay for your medical and when you can best guess that I'm going to be healthy. You back off, you self-insure yourself. So you are in control of your medical savings account that's growing and growing, tax free. Oh and, by the way, if you don't use it for medical, you can pull it out for retirement at age 59 and a half, just like an IRA. So you're going to get to use it tax free for medical up until a certain age where you're like man, I'm the George Burns of medical, I'm never going to use this account and then just pull it out like an IRA.

Speaker 2:

It's always your money, it's portal, it goes with you with any employer, it goes with you with any business and it's asset protected in any type of lawsuit. No one can take it away from you, only the government. If you don't pay your taxes, or an ex-wife or an ex-husband in a divorce, you're going to have to split it. That's it. Other than that, it's your money. It's incredible.

Speaker 2:

Now I've been bouncing around trying to help you catch the vision of this and I want to explain a couple other items. Then we're going to go through that summary of the top 10 benefits of an HSA and I'll mention, I think, three or four drawbacks, things you got to be aware of. All right, what is this high deductible plan? Well, this year, in 2024, when you go to shop for that health insurance, it needs to be at least a $1,600 deductible if you're single and $3,200 if you're married or head of household. So you're going to have this higher deductible plan. Now, practically speaking, you're like Mark. That sounds complicated, you're right. So if you're going out to shop for insurance on healthcaregov, on the network, you're going to just look for the little star that says HSA qualified. Done so, you're going to look for an HSA qualifying plan Again, if you're feeling that you're healthy and this is the plan for you, that's your decision.

Speaker 2:

Now, if you're going to your employer and many of you may have your health insurance provided for you at your day job. When it's enrollment time, you're going to go, hey, can I get the HSA plan? And your employer go, yeah, check that box done. So, if you have a day job, go ask your HR department, hey, when's enrollment again for my health insurance? Because most of the time you don't care about it, you just take whatever they give you because you're healthy, right, You're healthy, you don't care, you don't ask your employer. But now you are and you're going to say to your employer, hey, when's open enrollment? They're going to go oh, it's in November. Okay, when I enroll, can I choose the HSA qualifying plan? Because all employers have them now and they'll say, okay, done, paid for Done, your employer's covering you if you have that type of benefit at your day job.

Speaker 2:

So, again, if you're healthy and you're choosing your own plan, you want to look for that little icon that says it's HSA qualifying. Or, if you have a day job, you want to go to your employer and go, hey, at open enrollment, I want the HSA. It's going to have a higher deductible and then you are going to get that tax deduction on the front page of your tax return. No phase out, no income limit. You can make a million dollars a year and still put this money in. Then you're going to invest it in what you know. Maybe it's cows, maybe it's crypto, maybe it's stock bonds and mutual funds, maybe it's a rental property. Oh, wait till I tell you what's in my HSA. Then it grows and next year you can do the same thing. Then it grows and the next year you can do the same thing. It starts to snowball and company and when you retire you can pull it out like an IRA if you need to, or you can pull it out for medical anytime you want.

Speaker 2:

Now, last thing I want to mention before I go into my list of 10 things what medical expenses qualify, believe it or not. It's a book of a whole bunch of medical expenses that you may not realize qualify. You go to IRS publication 502. It's right here on my laptop. You can go to Google and just put in IRS, pub 502. It's a publication with an index in the back of all the medical expenses you can write off, and this is going to include eyes, dental co-pays, acupuncture, chiropractic massage therapy.

Speaker 2:

There is more and more medical expenses that are preventative in nature, that you can use as a tax-deductible withdrawal from your HSA. Please look into it, at the very least the publication 502, so you can see what type of medical expenses you might incur that would be completely deductible inside your HSA. All right, now let me go through the 10 benefits and maybe a few drawbacks, and I'll show you how to set them up and how to invest them. By the way, I'm going to repeat some of the things I've already said, but these are distinct and clear and right there on your screen. To look at Number one, you're going to get a tax deduction on the front page of your tax return for any money you put in the HSA to either quickly reimburse yourself or use it for future medical. Number two you are not going to lose write-offs on medical expenses ever again. You're not going to itemize on Schedule A. You're going to fund your HSA every year and then use that ongoing growth and balance to pay for your medical.

Speaker 2:

Third, most HSA providers that have an account that would be managed for you if you go that route will give you a debit card and it's like a visa card for your medical expenses, and I used to have one. Uh, I'm investing my HSA right now I'm not pulling it out for ongoing medical this year, but I had a many years. I had a visa type card that was up in the corner it said HSA. And so when I'd go to Costco or I'd go to a Safeway and the grocery store, or I'd go to the pharmacy, I'd put all of the pharmaceutical or whatever that was right off and in the grocery store, or I go to the pharmacy, I put all of the pharmaceutical or whatever that was right off and in the part of the my grocery cart and then I'd have my food over here. And so when I go through the checkout line and go, oh, put that all on my HSA right off, and then over here I'd have my regular stuff from Costco or whatever. So you there's many times, if you're going to use your HSA in an ongoing manner, you're going to have a debit card to pay for your medical expenses.

Speaker 2:

Next, you're typically going to have a lower insurance premium. Now, I know some of you, when you go to shop for insurance you're going to say, man, it's a more expensive premium for an HSA. Well, it depends on what type of insurance plan you're looking for. If you're looking for an insurance plan that's going to give you all the juice it up, love and cool, co-pays and all that stuff and different benefits. You might pay a higher premium and still have an HSA qualified. Now, if you're like now I'm so freaking healthy, I just need a healthcare plan that, if something bad happens, I'm covered You're going to have a typically a much lower premium. Now, for those of you that are entrepreneurs, that's a big deal. You're still writing off the premium, but it's money out the door. So you want to get the lowest premium possible and still have an HSA qualifying. If you have a day job, your employer's paying for it. Who the hell cares? But again, for you entrepreneurs, you could oftentimes have a lower premium.

Speaker 2:

Number five you have insurance. You have medical insurance. If something catastrophic occurs With the flexible spending account, the use it or lose it plan, or some of you entrepreneurs that are flying solo with no health insurance, that can be scary. So you still have health insurance and you get this tax-free account, the HSA, working on the side. Number six if you don't use the money for medical, you get to pull it out like an IRA for retirement at age 59 and a half. No penalty. You'll pay tax because you're pulling it out for retirement and not medical, but it still grows just like a traditional IRA Incredible. Number seven the monies grow tax-free if you pull it out for medical or tax-deferred if you use it for retirement and they come out tax-free for medical, so that tax-free growth or tax-deferred growth amazing.

Speaker 2:

Number eight you can invest your HSA in anything you want. That's called self-directing. We're going to talk about that more in a moment. Number nine they're easy to set up. You can go online and set up an HSA account at directediracom right now. There's a link down below if you want to set up an HSA and self-direct the investment. There's also other banks and providers and just go Google it and you're going to see sponsored plans right out of the gate. Set up your HSA here, get a debit card for your health savings account, whatever. Go out and shop around. It's easy to implement.

Speaker 2:

And number 10, which is a lot of fun you can fund your HSA up until April 15th for the prior year, so you get the right insurance You're going through the year. Oh, I need to fund my HSA. You go put the money in in April, get a tax write-off for last year and then pull the money out on day two for all your medical expenses for last year if you want. Or you can continue to invest it. 10 incredible benefits.

Speaker 2:

Now just a few drawbacks. Number one you have to have a high deductible plan. Now, conversely, that might get you a lower premium, but it's a high deductible. You're going to have to come out of pocket for some of those initial medical expenses and you'll get a write-off for it. That's cool, but it's high deductible. Number two you cannot put new money into an HSA once you turn age 65. So at that point you can get Medicaid. So the government says if you have an HSA, you can keep investing in it and keep growing it, but when you pass go in January, no more new contributions. And number three if you do have high medical expenses, the HSA may not be for you. You could go add that feature one year when you're feeling great, back off on the HSA in a year where you know you're going to have some surgery that needs to get taken care of. Stick it to the insurance company. Other than that, I don't see any other drawbacks to the HSA.

Speaker 2:

I think they're an incredible opportunity to save taxes, build wealth tax-free, pull money out tax-free, use it for retirement if you need to and take control of your medical expenses. I'm going to throw this out too, because I've seen this very I'm not going to have it on the list of 10, I should have is that a lot of doctors in different services will give you discounts when you pay for your medical expenses with cash cash paid discounts. So when you're negotiating maybe it's chiropractic or acupuncture or eyes or dental, and maybe just regular doctors I had a client once. They were getting ready to have a baby and the OBGYN said if you pay cash, I'll do this for a lot cheaper. And they got like a 20, 30% discount on the birth of their child using their HSA account.

Speaker 2:

Doctors, medical providers here's a little secret they hate insurance companies too, and so when you self-insure, they want to work with you. Now I know some medical professionals that are listening out there are saying Mark, you're wrong about this. Or some insurance professionals out there are. No, you can do it this way. Hey, do your research, look into it. There's always different issues when you're shopping for medical in different states. Everybody has different fact patterns and circumstances. But I'm just telling you I've done 10,000 consultations.

Speaker 2:

I've had my own HSA for 15 years. I've taught on the medical expense deduction for years as a certified CPA. Please trust me that this is one of the strategies that you do not want to overlook. They're incredible. All right, now, some of that may have sounded very basic to you. You've already heard all this before. That's great, mark, but what's this? Investment in cow stuff? And really you're talking about taking this to the next level. We're going to put this on steroids, no pun intended.

Speaker 2:

Okay, so you get your HSA account set up. You have two ways to really do this. You can set up an HSA account at, let's say, a bank and you put the money in and they give you a debit card and you pull the money out when you have a medical expense or reimburse yourself for a medical expense. They're only going to let you invest in their little choice of a few mutual funds. So you're going to get probably a 5% after all the fees and all the goodies, maybe a 5% or 6% rate of return inside your HSA account. In fact, the return is so low most people don't even know it's invested. They're just going to put the money in the HSA, pull it out with a debit card. They're not in it to build it. They're just putting the money in and taking it right back out.

Speaker 2:

The second option is where you're like I can let this money ride, I can build it and grow it. I'm going to self-direct it. That's the second option. Now, in that case, you're not going to go to the Fidelities of the World to open your HSA. You're going to go to a self-directed custodian or trust company. This is where I serve on the board of directors of directediracom. You can go there right now and open up an HSA account.

Speaker 2:

When you put the money in that type of HSA account, they call you up on the day two. Well, we send you an email. I go what do you want to invest it in? And you're like oh yeah, you're right, I don't want to pull this out for medical right now. I want to build it for the future. I want to invest that HSA. Okay, when that call comes, when that email comes, you're now opening up the world of self-directing that HSA account and really getting 10, 15, 20% returns or more and building that HSA exponentially. So I want to go to the whiteboard and show you how that looks. All right, we're in option two and you decided to create a self-directed HSA, that's, a self-directed health savings account.

Speaker 2:

Okay, several options at this point we have, and right there at directediracom, you can open what's called a crypto HSA and when you choose that option, this account is going to be created, where a Gemini app, an account, is created for you to invest in any cryptocurrency on the Gemini platform Very common, and I have clients that will use Gemini to then invest in Solana, bitcoin, ethereum, all sorts of coins and tokens. So if you're a big investor in cryptocurrency and you're like Mark man, I'm killing it I'm making 20, 30% in crypto right now. I can buy and sell crypto anytime I want in my Gemini app. Yes, so you might put in 41, 50 or 8,300, and then you roll the money over to your crypto HSA. You're off to the races and usually two to three days.

Speaker 2:

The cost to set up your HSA a crypto HSA, I think is around three to $400. And you're off to the races. All you're going to do in the application is check a box Yep, I have a high deductible plan. That's it. We don't ask for a copy of your health insurance. That's on you. You sign the application and go yeah, I have an HSA plan. Great, knock yourself out. You set up the account, you drop your 41. You can pay for this fee separately, and so you've got your 41.50 in here buying crypto. Boom, your Solana doubles in price and all of a sudden you've got $8,000 in your account. And then next year comes along and you pop in another 41.50. Did you see the math starting to go crazy? So now your account is growing and growing and growing tax-free because you understand crypto. Okay, that's option one. You could invest in crypto if you want.

Speaker 2:

Now some of you are like yeah, mark, I'm not a big fan of crypto, I love real estate. Okay, we set these types of structures up all the time, and what I did myself maybe even I'll show you a picture of it here in a moment is I took my HSA. Oh my gosh, you a picture of it here in a moment. Is I took my HSA? Oh my gosh, it's been 10 years ago and I opened an LLC and it's called is it called? Kohler Holdings? Right now it's an LLC in the state of Illinois it's in South Chicago and I went out and bought a low-income housing rental property. I had about $5,000 in my HSA at the time. I transferred it up to this LLC and this LLC then went out and bought a rental property.

Speaker 2:

Now let's talk practical steps. This is not a typical LLC that you're going to set up. On LegalZoom, our law firm, kqs Lawyers, has been setting up LLCs like this for over 18 years, affordably for any business owner that wants to self-direct their IRA, their Roth or their health savings account. The cost to set up this LLC, with filing fees at the state, is going to be around $1,500. Again, you can pay for this personally and make sure that all of your HSA money goes into the LLC. The LLC will have a bank account. You get to be the manager of that bank account and you're off to the races when you meet with the lawyer to set up this LLC, we're going to walk you through it. We're going to teach you how to do this. We're going to give you a comfort letter. We're going to set up the LLC in the state where you're going to buy a rental property and now that rental property is owned by your HSA People.

Speaker 2:

I have literally had a low-income housing, little property in my HSA for 10 years or more and all the rent goes into my LLC, back out to my HSA, and I paid for my daughter Molly's braces with my HSA. I had a rental property paying rent tax-free that paid for my daughter's braces Pen drop. Yeah, that's how incredible it is. That was one of my investments. I still have it there today. Anyway, that is my rental property, owned by my HSA Scout's Honor and, by the way, I was an Eagle Scout.

Speaker 2:

Okay, that's option two. You want to buy real estate with your HSA. That's how you do it. Call the law firm, set up your self-directed HSA account. I highly recommend you listen to my podcast on iTunes and Spotify called the Directed IRA Podcast. The first 10 to 15 episodes walk you through all the steps on learning how to self-direct.

Speaker 2:

You got to learn something here. This doesn't happen overnight, but if you know real estate, this would be the way to invest in real estate with your HSA. Oh and, by the way, your brother's HSA can be a partner. Your Roth IRA could be a partner. Your 401k could be a partner. People, this is all. I just got chills when I said that the power of the self-directed LLC with your HSA is off the chart Incredible.

Speaker 2:

Now, if you don't like real estate but you like crypto, use option one. I don't care, it's your money. Invest it in what you know. Now option three you have the same HSA. You're like Mark, I don't like real estate, I don't like crypto.

Speaker 2:

But man, I know ranching, I love Yellowstone, I love Kevin Costner, open range. I want to buy cows in my HSA, All right. So what I did oh boy, was this three years ago. I wanted to prove it was that easy to do. I went out and set up an LLC and for you Yellowstone fans, you can go look at it in the Secretary of State of Idaho website I have what's called Kohler Dutton Livestock LLC. Yep, and I called up one of my friends. It's a rancher in Eastern Idaho. He does Wagyu beef and snake river farms oh my gosh, so good. And I was like, hey, I want to buy some cows and my little HSA. He's like, all right.

Speaker 2:

Now, if you've ever bought cows, they're called pairs. So I buy a pregnant cow and I bought five cows with my HSA. Now, let's back up. So what I did is I took my HSA and I funded Kohler Dutton Livestock. I think I did it with about $10,000. And I went out and bought five cows. These pairs cost me about $1,800 each.

Speaker 2:

So I was out about $7,000, $8,000 on my cows and then I put them out to pasture for the summer and the rancher was like, yeah, I'll throw them in my herd and I'm going to charge you $50 a month per pair, because a pregnant cow is called a pair. And then my cows gave birth and I had five calves. They were all male, which is fairly rare. And I got five bulls until I turned them into steers that's a whole other story birds and the bees. And then I sold in the fall my five now pregnant moms, again because a bull was let in the herd during the summer. I had my calves and I sold all 10 cows in the fall and made about a 17% profit. And so my calves and my five moms. I sold all the calves in the fall because I didn't want to pay for wintering the cows. Then I'd have to buy hay and all those goodies. So 17%, not too bad. Oh, and then it was January again and I put another $8,000 in my HSA, took the profit and put it down to my HSA and went and did another deal.

Speaker 2:

Now if you want to go invest in a stock bond and mutual fund and make 4%, if you're lucky, knock yourselves out. But I wanted to build my HSA. I've now got close to $100,000 sitting in my HSA after investing it and using it for Molly's braces over the last 10 to 15 years. It's that easy you get to control your health savings account and how it's invested Now. I did mention this earlier, so I want to close the loop.

Speaker 2:

One thing I did after my color and livestock is I have another LLC over here and I added some Roth money with my kids over here and I've got some HSA money in it and we're doing crypto mining. I've got a crypto CPU with seven video cards for those that crypto mine. I'm using the NiceHash platform and this LLC is doing crypto mining. That's fun. I'm making about a 22% return in that. So invest in what you know. That's the beauty of this. You're going to use the law firm to create your LLC. You can partner with other retirement accounts if you want. You're going to listen to the podcast at directediracom and you're going to set up a HSA account if you have a qualifying medical insurance plan and start to take control. Save taxes the 10 benefits. Thank you for listening today. My mission is to help you and others better live the American dream, and the HSA is one of those strategies that can help you get there. Please check on the links below and see my next video on your path to building wealth.

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Mark J. Kohler

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