NIRP and HSAs

“When’s the top?” a reader writes, responding to out question last week. “The top is right before it starts to go down, down. I’m surprised you didn’t know that.”

Helpful. But we get it.

Our next contributor says: “Elect Warren or Bernie and you will see the top very quickly.”

Last — and this is a head-scratcher — a reader says: “How will negative interest rates affect HSA accounts?”

Since health savings accounts (HSA) are interest-bearing, that’s a good question; however, most people opt for an HSA for the tax-saving benefits. (Because, really, interest rates are ridiculously low. But interest-bearing and tax-free? That’s a winning combination.)

We weren’t able to come up with any research on the topic.

Perhaps the only applicable nugget is how the IRS might handle negative interest rates on deposit accounts — making expenses resulting from negative interest tax-deductible. But how to do that on HSAs that are already tax-free?

It’s a conundrum.

We’ve got some smart readers: What are your thoughts on HSAs and negative interest rate policy?

Your Rundown for Monday, Dec. 9, 2019:

One Enterprising Tech Stock (You Might Not Know)

Last week, we said Microsoft’s had a phenomenal year: up almost 50%.

While Microsoft is a household name, an up-and-comer tech stock Upland Software Inc (Nasdaq: UPLD) is making a splash in 2019.

First, take a look at the software company’s acquisitions to date:

  • PostUp and Kapost (combined $80 million)
  • CIMPL ($23.1 million)
  • InGenius ($26.4 million)
  • Altify ($84 million)

It’s apparent Upland’s growth model is not exactly organic. So considering the company’s spending spree, is Upland’s balance sheet overloaded with debt?

The answer: Yes, the company’s almost doubled its debt year-over-year; however, Upland also has a large pile of cash to offset.

Taking a look at smart money…

chart

The way key hedge funds — General Equity Partners and Portolan Capital Management, for example — are bullish on UPLD is instructive.

Market Rundown for Monday, Dec. 9, 2019

S&P 500 futures down 4 points to 3,142.

Oil’s lost 1.13% to $58.53 per barrel.

Gold’s up $3.60 per ounce to $1,468.70.

Bitcoin is down $28.16 to $7,535.04.

Thanks for reading. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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