is this a bad HSA investment option?

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meadowrue
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is this a bad HSA investment option?

Post by meadowrue »

My new employer uses BenefitWallet as their HSA provider. Not many investment options to choose from but there is VITSX (Vanguard Total Stock Market) at a 0.03% expense ratio. Prospectus says in second half of 2023, there will a reorg of this Vanguard fund. It will be “acquired” by a “series of Vanguard Montgomery Funds.” Same number of shares and value.

Debating whether this is even worth messing with or do I just open up a Fidelity HSA and keep only enough in BenefitWallet for current medical expenses (minimal)?

Is VITSX a good fund? Is it equivalent to VTSAX? And for those who have a Fidelity HSA plus a separate employer HSA, how often do you transfer funds over to invest? I would love to set up auto investment monthly but in that case, maybe BenefitWallet is my best option?

Thanks for the guidance!
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David Jay
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Re: is this a bad HSA investment option?

Post by David Jay »

meadowrue wrote: Thu Jun 01, 2023 11:57 am Prospectus says in second half of 2023, there will a reorg of this Vanguard fund. It will be “acquired” by a “series of Vanguard Montgomery Funds.” Same number of shares and value.
This has no effect on anything an investor should worry about. Vanguard is changing which Vanguard trust "owns" which fund. There are a bunch of Vanguard trusts and they are just making adjustments as to which trust holds which fund.
meadowrue wrote: Thu Jun 01, 2023 11:57 am Is VITSX a good fund? Is it equivalent to VTSAX?
It is more than equivalent, it is actually the same fund. VITSX is the Institutional class of Total Stock, just as VTSAX is the Admiral class. The Institutional class has slightly lower ER.
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Glockenspiel
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Re: is this a bad HSA investment option?

Post by Glockenspiel »

That would be a fine investment option. Same thing. You shouldn't have to worry about it being "acquired". Vanguard will handle it all and you won't have to do anything.
invest4
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Re: is this a bad HSA investment option?

Post by invest4 »

Fund is good and should not have any concerns.

More broadly, I would encourage you to examine your HSA closely to ensure you have a solid understanding of the full costs borne by you to support your choice of your employer provided HSA or would be better off with an alternative such as Fidelity where you can transfer and invest periodically from your employer fund, invest as you please, and keep with you regardless of your employer.
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meadowrue
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Re: is this a bad HSA investment option?

Post by meadowrue »

invest4 wrote: Thu Jun 01, 2023 1:14 pm Fund is good and should not have any concerns.

More broadly, I would encourage you to examine your HSA closely to ensure you have a solid understanding of the full costs borne by you to support your choice of your employer provided HSA or would be better off with an alternative such as Fidelity where you can transfer and invest periodically from your employer fund, invest as you please, and keep with you regardless of your employer.
Can you elaborate on the costs that might be borne by me? In the overview it says “There are no transaction costs or load fees when you buy mutual funds at BenefitWallet. There may be funds that impose an early redemption fee associated with the sale of shares.”

If I went the Fidelity route, auto investing would be more difficult. Alternative option: I could transfer my two other (old) HSAs to Fidelity rather than consolidate at BenefitWallet, and then invest all new funds at BenefitWallet. Thoughts? I admit I’m sometimes tempted to tinker with investments so I am really striving for a set-it-and-forget-it approach.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
steadyosmosis
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Re: is this a bad HSA investment option?

Post by steadyosmosis »

meadowrue wrote: Thu Jun 01, 2023 11:57 am Is VITSX a good fund?
VITSX has been great for me.
I have held it for more than a decade.
Age<59.5. Early-retired. AA ~55/45. Taxable account, Roth IRA, HSA...all are 100% equities. 100% of fixed income is in tIRA. I spend from taxable and re-balance in tIRA.
Topic Author
meadowrue
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Re: is this a bad HSA investment option?

Post by meadowrue »

steadyosmosis wrote: Thu Jun 01, 2023 2:29 pm
meadowrue wrote: Thu Jun 01, 2023 11:57 am Is VITSX a good fund?
VITSX has been great for me.
I have held it for more than a decade.
Thanks! This seems like the simplest approach. I plan to transfer all current HSA funds (around $15K) here and then invest more with every paycheck. And then ignore it for 20 years until I retire :D
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
invest4
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Re: is this a bad HSA investment option?

Post by invest4 »

meadowrue wrote: Thu Jun 01, 2023 1:22 pm
invest4 wrote: Thu Jun 01, 2023 1:14 pm Fund is good and should not have any concerns.

More broadly, I would encourage you to examine your HSA closely to ensure you have a solid understanding of the full costs borne by you to support your choice of your employer provided HSA or would be better off with an alternative such as Fidelity where you can transfer and invest periodically from your employer fund, invest as you please, and keep with you regardless of your employer.
Can you elaborate on the costs that might be borne by me? In the overview it says “There are no transaction costs or load fees when you buy mutual funds at BenefitWallet. There may be funds that impose an early redemption fee associated with the sale of shares.”

If I went the Fidelity route, auto investing would be more difficult. Alternative option: I could transfer my two other (old) HSAs to Fidelity rather than consolidate at BenefitWallet, and then invest all new funds at BenefitWallet. Thoughts? I admit I’m sometimes tempted to tinker with investments so I am really striving for a set-it-and-forget-it approach.
Any / all fees you may incur by using their account. Maybe they would charge an annual investment fee for example. Fantastic if there is nothing you would care about…just that you do some due diligence to know.

Otherwise, would be great to consolidate if possible.

Best wishes.
Topic Author
meadowrue
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Re: is this a bad HSA investment option?

Post by meadowrue »

invest4 wrote: Thu Jun 01, 2023 5:55 pm
meadowrue wrote: Thu Jun 01, 2023 1:22 pm
invest4 wrote: Thu Jun 01, 2023 1:14 pm Fund is good and should not have any concerns.

More broadly, I would encourage you to examine your HSA closely to ensure you have a solid understanding of the full costs borne by you to support your choice of your employer provided HSA or would be better off with an alternative such as Fidelity where you can transfer and invest periodically from your employer fund, invest as you please, and keep with you regardless of your employer.
Can you elaborate on the costs that might be borne by me? In the overview it says “There are no transaction costs or load fees when you buy mutual funds at BenefitWallet. There may be funds that impose an early redemption fee associated with the sale of shares.”

If I went the Fidelity route, auto investing would be more difficult. Alternative option: I could transfer my two other (old) HSAs to Fidelity rather than consolidate at BenefitWallet, and then invest all new funds at BenefitWallet. Thoughts? I admit I’m sometimes tempted to tinker with investments so I am really striving for a set-it-and-forget-it approach.
Any / all fees you may incur by using their account. Maybe they would charge an annual investment fee for example. Fantastic if there is nothing you would care about…just that you do some due diligence to know.

Otherwise, would be great to consolidate if possible.

Best wishes.
Thank you! I will read the fine print for sure.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
ebeb
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Re: is this a bad HSA investment option?

Post by ebeb »

My benefitwallet HSA is fully invested in Vanguard Total Stock Mkt fund. Note that Benefitwallet charges about $2 per month for their fees which is not bad.
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Topic Author
meadowrue
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Re: is this a bad HSA investment option?

Post by meadowrue »

ebeb wrote: Thu Jun 01, 2023 7:10 pm My benefitwallet HSA is fully invested in Vanguard Total Stock Mkt fund. Note that Benefitwallet charges about $2 per month for their fees which is not bad.
Good to know. For $24/year, saving myself the hassle of transferring to Fidelity every few weeks/months seems worth it. I like the idea of having everything in one place, and putting my new contributions on auto-pilot.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
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