While the iShares fund has impressive average returns, performance from one year to the next has varied widely. In 2013, for example, the fund grew nearly 34% — but then it showed a 0.78% loss in 2018.
That’s the nature of growth funds; they can be a rollercoaster ride. Keep that in mind as you decide how to use this position. It could be appropriate for a long-term savings goal, like saving for retirement healthcare costs that you’ll incur 25 years from now. But if you need the money within the next 10 years, you might want something more stable.
An inexact science
Planning for your future healthcare expenses is not an exact science. Even so, it is safe to assume that your medical costs will probably be the largest line item on your retirement budget. And that means you’re smart to save and invest as much as you can now in your HSA. You can always adjust your plan later, but you can’t go back and make up for earnings missed because you didn’t start saving soon enough.
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