A Brilliant Investment Secret Only Rich People Know, According to Financial Influencer Haley Sacks

Investments can always be something of a gamble. If you ask five different people for advice on the matter, you’re like to get five very different, and contradictory, pieces of advice. Still, some advice may better suit your finances that others.

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One such piece of advice comes from Haley Sacks, the “Zillenial Finance Expert.” In a video posted to her Instagram , Sacks explained an investment strategy that she claims the wealthy often take advantage of to become even wealthier, as it has “more tax advantages than Roth IRAs and 401ks.”

Keep reading to see how this investing strategy could work for you .

Money mistakes the super wealthy never make - that you might be doing now.

Consider a Health Savings Account (HSA)

In the video, Sacks said that a Health Savings Account (HSA) can provide you with one of the “most tax-advantaged accounts out there,” as long as it’s a high-deductible healthcare plan (and you have the opportunity to open one).

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How It Works

HSAs are triple tax-advantaged accounts, meaning that they offer a three-step opportunity to grow your money:

1. Invest pre-tax money into the account
2. Let the money grow tax-free
3. Withdraw the money tax-free in your retirement

Sacks asserted that this is a trick the rich often take advantage of, maxing out their investment into the account (you can invest $4,150 into your HSA per year) and then pay out-of-pocket for their health care costs, spending less on these out-of-pocket costs than they are accruing within their HSA.

Further, the money that grows within your HSA tax-free can then be withdrawn (also tax-free) at retirement age to cover your medical costs as you age — something Sacks made clear will be a necessity. According to a 2022 Fidelity Retiree Health Care Cost Estimate, the average couple spends over $315,000 on just their healthcare needs during retirement.

If you’re looking for a highly advantaged investment plan that has been tried-and-true amidst the wealthy (and has helped make them even wealthier), definitely consider opening a high-deductible HSA and start investing tax-free.

This article originally appeared on GOBankingRates.com : A Brilliant Investment Secret Only Rich People Know, According to Financial Influencer Haley Sacks