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Can you Fund your HSA from your IRA???

If you have an HSA (Health Savings Account), you know the great value is that you can use funds from the account Tax-Free to pay for medical expenses.  Unfortunately like most government created financial instruments, there is a limit on how munch you can contribute to the account each year.  But even with a contribution limit, Employee Benefit Research Institute (EBRI) reports that in 2017 only 13% of all HSA accounts were fully funded and 36% of HSA accounts were not funded at all. Typically, the reason accounts are not fully funded is the owner is either not educated on how the accounts work; or they do not have the cash flow/income to make the contribution. So, there is a strategy that most people do not know about, where you can take dollars from your IRA and move them to your HSA.  And most importantly you pay no tax or penalty to do this.  It is called a QHFD (Qualified ...

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Was Your Mutual Fund A One Hit Wonder?

We love lists.  In fact, we have become addicted to them.   Every year, magazines and newspapers publish lists of the best and worst performing mutual funds.   As investors, we often have an impulsive nature to chase the latest and greatest mutual funds often without doing the proper due diligence before we invest new money or transfer our IRA accounts.   What should you ask before investing in a top performing mutual fund from last year? Was this a sector play?   In any given calendar year, one specific sector of the market may dominate versus other sectors of the market.  Just because gold or technology or emerging markets were the top performing sector from the year prior doesn’t necessarily mean they will repeat in the following years to come.   You should be certain that particular sector matches your long term investment objectives before you invest your money. Is it the same manager?  Sometimes mutual funds perform very well and then a given ...

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