Trending Topics


This Month’s Trending Topics

 

Health Savings Accounts (HSAs): A Valuable Retirement Planning Tool

Whether you already contribute to a Health Savings Account (HSA) or are considering one, these accounts offer valuable tax benefits for both current healthcare expenses and retirement planning. HSAs are available only to individuals enrolled in an HSA-eligible health insurance plan, typically offered through an employer. With open enrollment approaching, now is a good time to see if this option is available to you and whether it makes sense for your situation.

 

  • Triple Tax Advantage: Contributions are tax-deductible or made pre-tax, earnings grow tax-free and withdrawals for qualified medical expenses are tax-free.
  • Long-Term Investment Opportunity: If you are younger and can afford to pay current medical expenses out of pocket, consider investing your HSA contributions for future healthcare expenses. Unused funds roll over each year and can continue growing tax-free.
  • Healthcare Expenses in Retirement: HSA funds can be withdrawn tax-free during retirement for qualified medical expenses, including some Medicare premiums, deductibles and other eligible healthcare costs.
  • Not an Ideal Estate Planning Account: Unlike IRAs and other retirement accounts, HSAs generally do not pass favorably to non-spouse heirs. While a surviving spouse can inherit an HSA tax-free, non-spouse beneficiaries generally must recognize the account's value as taxable income in the year of death.
  • Plan to Use Your HSA: While accumulating HSA assets during your working years can be an excellent strategy, the goal should generally be to use these funds for healthcare expenses during your lifetime rather than leave a substantial balance to your heirs. Once retired, consider strategically drawing down your HSA to take full advantage of its tax benefits.

HSAs can be one of the most tax-efficient savings vehicles available, particularly for younger individuals with time to invest and grow their balances. However, unlike some other retirement accounts, HSAs are generally better spent during your lifetime than passed on to the next generation.

 

Market Outlook: Reasons for Optimism, but Risks Remain

With the midterm elections approaching and the stock market posting solid gains so far in 2026, investors may be wondering whether the positive momentum can continue. While uncertainty remains, there are several reasons to maintain a cautiously optimistic outlook.

 

What History Tells Us About Midterm Elections

  • Since 1950, the S&P 500 has historically performed well following midterm elections, with positive returns in the 12 months following each election and an average gain of approximately 15%.
  • The fourth quarter of midterm election years has also historically been strong, averaging gains of approximately 6.6%.
  • One possible explanation is that markets dislike uncertainty. Once elections are over, investors gain more clarity about the political landscape and can refocus on economic fundamentals.
  • While encouraging, historical trends are not guarantees of future performance.

Our Perspective

With markets having delivered strong returns and the midterm elections approaching, it's understandable to question whether a pullback may be ahead. Elevated stock valuations, persistent inflation, uncertainty surrounding interest rates and geopolitical tensions could all contribute to increased volatility.

We recognize market declines can be unsettling, particularly when you've worked hard to build your savings and want to protect the gains you've made. That's why we continue to monitor economic conditions, market valuations and the investments within your portfolio to determine whether changes make sense. Sometimes that means making adjustments, while other times it means recognizing that the best decision is to stay the course. Either way, those decisions are being thoughtfully evaluated, not driven by the latest headlines.

We appreciate your continued trust and the opportunity to help you navigate whatever the markets bring. Remember, we're always just a phone call or email away if you have questions, concerns or simply want to talk things through.

 

This material is meant for general illustration and/or informational purposes only.  Views expressed in this newsletter may not reflect the views of Osaic Wealth, Inc.  It is our goal to help investors by identifying changing market conditions.  However, investors should be aware that no financial advisor can accurately predict all of the changes that may occur in the market.   This material should not be relied upon as investment advice.  Investors should note that there are risks inherent in all investments, such as fluctuations in investment principal.   There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. This article contains forward looking statements and projections.  Past performance is no guarantee of future results.  Neither Osaic Wealth, Inc. nor its representatives provide tax or legal advice.  If you don’t wish to receive marketing emails from this sender, please reply to this email with the word REMOVE in the subject line.