Recent backtests of model portfolios show "HSA investing" with 70% equity exposure generated a 10-year CAGR of 8.7%, outpacing 60/40 portfolios despite higher short-term risk. “Still working and under full retirement age? Extra cash also cushions any temporary cutbacks Social Security makes if you earn above its wage limit,” she said. “Use the benefit to build or refill this emergency fund. Don’t invest until the cushion is in place.” However, it could make sense to keep only the money you’re likely to need in the near term in a money market fund and invest other amounts in higher-return but higher-risk choices below. If you have money in the account that you won’t need to touch for years, then other investments are likely to offer much better long-term returns, but there are no guarantees.
