I’m a Financial Expert: This Hidden Retirement Strategy Could Add $100,000 to Your Nest Egg
Written by
Stacy Sare Cohen
Edited by
Molly Sullivan
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As President Donald Trump’s initiatives, led by Elon Musk’s Department of Government Efficiency (DOGE), cut staff and shut down multiple Social Security offices, an already understaffed system — with 7,000 fewer full-time employees and 7 million more beneficiaries than a decade ago — has become a significant concern for Americans, Newsweek reported.
With the future of Social Security hanging in the balance, it is more critical than ever for Americans to implement wealth-building retirement strategies and grow their nest eggs.
The Hidden Goldmine Retirement Strategy
One overlooked retirement strategy for reaching a six-figure income is a health savings account (HSA), said Neal K. Shah, hedge fund manager turned CEO and chief financial officer of Counterforce Health. A financial advisor can help determine if an HSA is right for your financial needs.
“As you construct your nest egg through steady 401(k) contributions — optimally 15% of your wages — consider opening a health savings account. An HSA is a special account that, like a 401(k) or an IRA, allows you to set aside money for future expenses and pay no taxes on it,” Shah said.
“But, unlike a 401(k) or IRA, an HSA lets you take money out tax-free if you use it for a qualified medical expense.”
Shah said that as you grow the money in your HSA, you will not have to pay taxes on that growth as long as you keep it inside the account; thus, the HSA also functions like a Roth account.
Triple Tax Benefits
To open an HSA, you need to be enrolled in a qualifying high-deductible health insurance plan, said Eric Schwartz, CFP, senior financial advisor at Retirable.
“Once you satisfy those initial requirements, you can experience its great benefits,” he said.
“The biggest advantage of an HSA is its triple tax benefit: Contributions are tax-deductible going in, growth is tax-free and withdrawals are tax-free when used for medical expenses, making it one of the most efficient financial investment tools,” Schwartz added.
“First, the money going into the account does not count toward your income and therefore is not taxed; second, the funds grow tax-free; and third, if you use the money on a qualified medical expense, it is again not taxed.”
Building Long-Term Wealth
The annual contribution limit for an HSA in 2025 is $4,300 for an individual and $8,550 for families.
“The other number to keep in mind is the investment threshold required by your HSA custodian,” Schwartz said.
“Ideally, you want to max out contributions each year, avoid using the funds, and then invest everything else so that by the time you hit retirement, you will have a substantial account after age 65,” Schwartz said.
Once you turn 65, you can withdraw the money for any reason without paying a penalty tax; you only have to pay income tax on the withdrawals.
“Once you decide how you want to invest your money, it becomes an easy long-term strategy because the constant flow of new contributions plus market growth can propel the account into that six-figure range,” Schwartz said.
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