Brennan Schlagbaum left his job as a Certified Public Accountant (CPA) in 2021 to focus full-time on his company, Budgetdog. Him and his wife were able to pay off over $300,000 in debt and accumulate a net worth of almost $2 million through various investments, including index funds across different accounts, with Brennan’s favorite being his health savings account (HSA). At 31 years old, and with seven different types of accounts to manage, Brennan described his investment strategy as simple yet effective.
Aside from their retirement accounts, the couple also invests in a high-yield savings account for their yearly property taxes. Brennan’s passion for investment and finance led him to focus on Budgetdog, where they educate people on managing their finances and investments.
In making the most of his savings accounts, Brennan has chosen not to touch his HSA funds, allowing them to grow tax-free. The triple tax advantage of an HSA is one of the key factors in their investment strategy, providing them the flexibility to withdraw the funds tax-free for medical expenses when needed. The family explains that the HSA is a savings vehicle and, while they have chosen not to use it for their medical expenses right now, it provides them with the financial flexibility in the future.
Ultimately, the Schlagbaums are making the most of their HSA, contributing the maximum amount annually and treating it as an important part of their long-term financial plan, including potential retirement expenses. They advise close scrutiny in choosing the right health insurance plan before considering an HSA, especially for those with frequent medical visits or health concerns. Their strategic and methodical approach to their finances demonstrates how they are making the most of their wealth and enhancing their financial security.