Where to invest HSA funds?

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pmorgan2020
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Where to invest HSA funds?

Post by pmorgan2020 »

Hello,
I have about $4000 in HSA currently what would be the best place to invest? Please advise any stocks or index funds I can get started investing into. Most of my current allocations are into Real Estate and I am not much in to stocks.

I will appreciate your inputs

Thanks
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InvestorHowie
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Re: Where to invest HSA funds?

Post by InvestorHowie »

pmorgan2020 wrote: Fri Oct 22, 2021 4:06 pm I have about $4000 in HSA currently what would be the best place to invest? Please advise any stocks or index funds I can get started investing into. Most of my current allocations are into Real Estate and I am not much in to stocks.
Where is your HSA currently? Can you provide the offerings there including the expense ratios? Any inexpensive Vanguard index and/or Target Date funds there? They'd likely be in the .02% to .09% range. If you share your list of offerings I'm sure you'll get a lot of good advice within your current HSA or possibly advice to move to a new HSA provider.
Time is your friend; impulse is your enemy. --John C. Bogle
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pmorgan2020
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Re: Where to invest HSA funds?

Post by pmorgan2020 »

Than you very much. I got $2500 in bofa and $1500 in fidelity. Hope this information
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anon_investor
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Re: Where to invest HSA funds?

Post by anon_investor »

pmorgan2020 wrote: Fri Oct 22, 2021 4:23 pm Than you very much. I got $2500 in bofa and $1500 in fidelity. Hope this information
Can you consolidate at Fidelity?
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InvestorHowie
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Re: Where to invest HSA funds?

Post by InvestorHowie »

anon_investor wrote: Fri Oct 22, 2021 4:29 pm
pmorgan2020 wrote: Fri Oct 22, 2021 4:23 pm Than you very much. I got $2500 in bofa and $1500 in fidelity. Hope this information
Can you consolidate at Fidelity?
Agreed - you're probably paying at least $2.50/mo in fees at BofA. https://healthaccounts.bankofamerica.co ... fees.shtml Perhaps more? Fidelity will do you better for sure.
Time is your friend; impulse is your enemy. --John C. Bogle
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anon_investor
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Re: Where to invest HSA funds?

Post by anon_investor »

InvestorHowie wrote: Fri Oct 22, 2021 4:33 pm
anon_investor wrote: Fri Oct 22, 2021 4:29 pm
pmorgan2020 wrote: Fri Oct 22, 2021 4:23 pm Than you very much. I got $2500 in bofa and $1500 in fidelity. Hope this information
Can you consolidate at Fidelity?
Agreed - you're probably paying at least $2.50/mo in fees at BofA. https://healthaccounts.bankofamerica.co ... fees.shtml Perhaps more? Fidelity will do you better for sure.
Fidelity also has great low cost or 0 cost index funds to use.
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InvestorHowie
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Re: Where to invest HSA funds?

Post by InvestorHowie »

anon_investor wrote: Fri Oct 22, 2021 4:35 pm Fidelity also has great low cost or 0 cost index funds to use.
Exactly. Depending on your asset allocation in the rest of your portfolio you could easily create a very inexpensive 3-fund portfolio with FZROX, FZILX and FXNAX. I'm not at Fidelity myself but my employer covers my fees and I'm 100% in a Vanguard index fund with 0.04% expenses. I'd head to Fidelity in a heartbeat if I were on the hook for fees or had poor offerings with my current provider.
Time is your friend; impulse is your enemy. --John C. Bogle
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anon_investor
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Re: Where to invest HSA funds?

Post by anon_investor »

InvestorHowie wrote: Fri Oct 22, 2021 4:45 pm
anon_investor wrote: Fri Oct 22, 2021 4:35 pm Fidelity also has great low cost or 0 cost index funds to use.
Exactly. Depending on your asset allocation in the rest of your portfolio you could easily create a very inexpensive 3-fund portfolio with FZROX, FZILX and FXNAX. I'm not at Fidelity myself but my employer covers my fees and I'm 100% in a Vanguard index fund with 0.04% expenses.
My employer is moving my HSA to Fidelity early next year, I plan to use FZROX (Fidelity ZERO Total Market Index Fund). My current HSA is with PayFlex (company pays all fees) and I am 100% VITNX (Vanguard Institutional Total Stock Market Index Fund Institutional Shares) with an ER of 0.03%.
Strifey
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Re: Where to invest HSA funds?

Post by Strifey »

I consolidate mine at Fidelity and just stick it all in a total market fund (i.e. FSKAX).

1. Because I live in CA which still taxes HSAs so I don't want to tinker with this account at all
2. I balance my ratios (US/Intl/Bonds) overall across all accounts, which means I generally am using my 401K to tinker with reallocating Intl and Bonds.
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grabiner
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Re: Where to invest HSA funds?

Post by grabiner »

Whatever part of the HSA you are not using for current expenses is being invested for your medical expenses in retirement. Therefore, it makes sense to treat the HSA as part of your IRA or 401(k), which are also invested for expenses in retirement.

Since the HSA is a small part of your portfolio, you may want to invest it in one fund for simplicity.
Wiki David Grabiner
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