Mon Jun 23 2025, by Tyler Gardner

The Number One Financial Account to Open in Your 40s or 50s

Here's the number one financial account I would open and focus on in my 40s or 50s. Hint: it's not a Roth IRA. I'm Tyler, a former financial advisor and portfolio manager, and now I spend most of my time creating a new podcast, Your Money Guide on the Side, so check it out by clicking the link in my bio.

1. Triple Tax Advantage

This account has a triple tax advantage, meaning your money goes in pre-tax, grows tax-free, and can be withdrawn tax-free for qualified medical expenses. No other account does that.

2. No Use It or Lose It Rule

There is no use it or lose it rule with this account. That’s an FSA (Flexible Spending Account). You don’t have to spend the money in one year; you can invest it and let it grow for decades. It’s always yours, even if you lose your job.

3. Pay Out-of-Pocket for Medical Expenses

In fact, you can even pay for your current medical expenses out of pocket today, and as long as you save the documentation, you can reimburse yourself in 30 years, once compound interest has worked its magic.

4. The Gold Standard of Accounts

This is the Health Savings Account (HSA), also known as the gold standard of accounts. It can and should be used to fund medical expenses in retirement. You know, that expense that none of us think about as much as we should, even though Fidelity estimates that the average retired couple will spend over $315,000 on medical expenses in retirement.

Conclusion

If this is helpful, tune into my new podcast by clicking the link in my bio.

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