The Scenario When HSA's Are a *BAD* Account (AMA, E124)

On Jesse's 11th "Ask Me Anything" episode, he unpacks four questions that sit at the center of real-life financial decision-making. He starts with a grounded look at the 15-year vs. 30-year mortgage debate, cutting through rules of thumb to show how interest rates, liquidity, cash-flow, and even your personal comfort with debt shape the right choice far more than blanket advice ever could. From there, he turns to the under-discussed strategy behind Health Savings Accounts—why the "invest and reimburse later" approach works, when it stops working, and how the tax bomb of leaving HSA dollars to non-spouse heirs should change how listeners think about funding and spending those accounts in their 50s and beyond. In a detailed case study, Jesse walks through a listener's complex 2026 tax year involving rental-property capital gains, ACA cliffs, Social Security timing, and potential Roth conversions, revealing how layered tax rules—income brackets, capital gains stacking, depreciation recapture, and NIIT—interact in ways that can either save or silently cost retirees thousands. And finally, he tackles whether a diehard DIY investor or Boglehead should ever hire a financial planner, drawing a sharp distinction between the "Uncle Franks" who truly live and breathe this stuff and the "Nicks" who love markets but miss the deeper planning work. With clarity, nuance, and practical wisdom, Jesse shows listeners not just what to do, but how to think through the tradeoffs that define good long-term planning.

Key Takeaways:
• A 15-year mortgage saves significant interest, but the higher monthly payments reduce cash-flow flexibility and increase default risk.
• A 30-year mortgage often wins mathematically when investors "invest the difference," thanks to potentially higher long-term market returns versus fixed loan rates.
• Choosing a mortgage term is partly a psychological decision, not just a financial optimization.
• HSA dollars become a tax trap if left to non-spouse heirs, who must treat the entire balance as taxable income in the year of inheritance.
• Selling a rental property triggers both capital gains and depreciation recapture, which can dramatically increase taxable income in that year.
• DIY investors vary widely—some are true experts, while others know just enough to make avoidable mistakes.

Key Timestamps:
(02:04) – 15-Year vs. 30-Year Mortgage Debate
(11:03) – Liquidity and Mortgage Payments
(13:48) – HSA Accounts: When to Fund and When to Use
(25:37) – Spending Down HSA Balances
(26:39) – Allison's Financial Planning Dilemma
(29:05) – Analyzing Capital Gains and Tax Implications
(35:49) – Considering Social Security Timing
(38:54) – The Role of Financial Planners for DIY Investors

Key Topics Discussed:
The Best Interest, Jesse Cramer, Wealth Management Rochester NY, Financial Planning for Families, Fiduciary Financial Advisor, Comprehensive Financial Planning, Retirement Planning Advice, Tax-Efficient Investing, Risk Management for Investors, Generational Wealth Transfer Planning, Financial Strategies for High Earners, Personal Finance for Entrepreneurs, Behavioral Finance Insights, Asset Allocation Strategies, Advanced Estate Planning Techniques

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Personal Finance for Long-Term Investors is a personal podcast meant for education and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.