HSA Investing When You're Over 65

Older savers should revisit the investment mix in their health savings account as their tolerance for risk falls and their health care spending rises.

(Image credit: Justin W Dennis(Justin W Dennis(Photographer) - [None])

Question: What are my investment options after age 65 with the remaining balance in my health savings account?

Answer: As with your retirement accounts, you’ll generally want to shift toward a less-aggressive portfolio as you age to match your risk tolerance. That means decreasing the percentage you hold in stocks and increasing your cash and bond holdings. If you’re likely to need to withdraw the money from the account soon, keep a portion of the funds in the HSA’s money market or checking account so it’s not affected by market fluctuations.

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Kaitlin Pitsker
Associate Editor, Kiplinger's Personal Finance
Pitsker joined Kiplinger in the summer of 2012. Previously, she interned at the Post-Standard newspaper in Syracuse, N.Y., and with Chronogram magazine in Kingston, N.Y. She holds a BS in magazine journalism from Syracuse University's S.I. Newhouse School of Public Communications.