New job. First time HSA. Help me with investments

[jamesbond007]

I have a new job and I signed up for HDHP + HSA for the first time. My employer works with Connect Your Care for HSA investments and I am not sure how to allocate my HSA investments. Could you please help me with this? For some context, I am almost 100% VTSAX for my other investments. I am don't know if I have to treat my HSA account the same way. Also, they don't have VTSAX.


Here is a full list of options: https://hsainvestments.com/fundperformance/?p=CYCB


Thank you.

[Scandium]

Sort by expense ratio.. 80/20 mix of Schwab S&P 500 and Vanguard extended market will mimic VTSAX. Doesn't look like any good options for international, but sounds like you don't do that anyway. You do know you don't have to use your employer's HSA? You can transfer to any other. Mine is just a bank so twice a year I transfer to Fidelity and invest in whatever I want.

[terran]

This article on approximating total stock market should be helpful. Something around 80% Schwab S&P 500 Index  (SWPPX) and 20% Vanguard Extended Market Index Instl  (VIEIX) would be close enough to approximating VTSAX. Or you could just go for one of the Schwab target date funds offered.

[jamesbond007]

Sort by expense ratio.. 80/20 mix of Schwab S&P 500 and Vanguard extended market will mimic VTSAX. Doesn't look like any good options for international, but sounds like you don't do that anyway. You do know you don't have to use your employer's HSA? You can transfer to any other. Mine is just a bank so twice a year I transfer to Fidelity and invest in whatever I want.

oooh. I didn't know this. Very enticing.

[jmechanical]

As a secret agent you might want to keep more in bonds as it's less volatile and you may have some hospital bills after some missions.

Jokes aside, I keep more of my HSA in bonds and my Roth IRA/401k in stocks. HSA may be 60% bonds and Roth IRA 10% bonds, but it all balances out to a 80% stock/20% bond portfolio across all accounts. This way that money is there in case I need to use it for health related expenses god forbid a major health event and it's value will be less volatile.

[jamesbond007]

As a secret agent you might want to keep more in bonds as it's less volatile and you may have some hospital bills after some missions.

Jokes aside, I keep more of my HSA in bonds and my Roth IRA/401k in stocks. HSA may be 60% bonds and Roth IRA 10% bonds, but it all balances out to a 80% stock/20% bond portfolio across all accounts. This way that money is there in case I need to use it for health related expenses god forbid a major health event and it's value will be less volatile.

This makes sense as bond are much more stable, although returns are low. I somehow never bought bonds or bond funds. Do you recommend bond funds or just straight up bonds if the option is available.