By In Around the Web

Monday Reading: HDHPs, Health Expenses, and Student Loan Debt Paydown

It’s Monday. Yay! Time to take on the world…or maybe just procrastinate until lunch. Here are some quick reads for your FIRE brain while you’re processing the coffee.

First, a super-awesome and informative piece by FIRE pioneer blogger Tanja Hester about how, as we’ve said here on The Benefits of FI, HSAs can be great for planning but the HDHP you’re required to have with your HSA can be lousy. In particular, Hester shows how HDHPs can keep you from getting the medical care you may need. Great advice and I plan to write some additional thoughts later this week because it’s that important!

Second, a follow-up to our piece from last month about how much you might need in retirement to pay for health care expenses. Fidelity’s annual report is out and the new number is $285,000. That’s an even spicier meatball! In addition to saving with an HSA, it provides additional insight on how to be ready for these sizable expenses in retirement. (Spoiler alert: if you retire early, you’ll need more than $285k!

“How to Plan for Rising Healthcare Costs,” Fidelity Investments

Finally, a review of a newish idea — or perhaps just the oldest idea reinvented to sound new — for paying off student loan debt: equitization. The Lambda School doesn’t charge tuition and instead takes a percentage of earnings for the first several years. A big catch is that, if you don’t find work, you don’t pay for tuition. Other educational institutions have tried something similar. Is it a good idea? Maybe while the economy is doing well but maybe not so much when it’s not. What do you think?

“A new wrinkle on student debt: Pay-as-you-earn,” BenefitsPro

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