The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: bosspross on November 16, 2018, 05:50:26 AM
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Any recommendations on an HSA account? I don't plan on using it for medical expenses and would prefer to invest as much of it as possible. A lot of the HSA's I've found through google appear to have high fees and poor limits on how much you can actually invest.
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As of yesterday I would recommend Fidelity. They just opened u their HSA platform to everyone (previously limited to employer sponsored plans). It looks like it will be totally fee free to invest as long as you stick with Fidelity mutual funds or iShares ETFs, both of which include excellent options.
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+1, just did this myself
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@terran - I went through search results from google, and can't find it. I see plenty of information on Fidelity's workplace HSA ("fidelity hsa"), but searches like "fidelity individual HSA" haven't shown me details, like fees. How did you learn about it, and can you share what page or search you used to discover details?
Pending that information, I've been using HSA Bank. While their fees are higher than other HSAs, they allow a $0 cash balance and 100% investment. Compared to my prior HSA which required a minimum cash balance, the higher fees are offset by allowing more HSA money to be invested. HSA bank has an arrangement with TD Ameritrade, so trading costs are $7/trade for the investment portion.
But I would hold off on HSA Bank until you learn details of Fidelity's individual HSA - it sounds like an improvement.
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@terran - I went through search results from google, and can't find it. I see plenty of information on Fidelity's workplace HSA ("fidelity hsa"), but searches like "fidelity individual HSA" haven't shown me details, like fees. How did you learn about it, and can you share what page or search you used to discover details?
Here you go: https://forum.mrmoneymustache.com/welcome-to-the-forum/fidelity-offering-retail-health-savings-accounts-(hsas)/
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@terran - I went through search results from google, and can't find it. I see plenty of information on Fidelity's workplace HSA ("fidelity hsa"), but searches like "fidelity individual HSA" haven't shown me details, like fees. How did you learn about it, and can you share what page or search you used to discover details?
Pending that information, I've been using HSA Bank. While their fees are higher than other HSAs, they allow a $0 cash balance and 100% investment. Compared to my prior HSA which required a minimum cash balance, the higher fees are offset by allowing more HSA money to be invested. HSA bank has an arrangement with TD Ameritrade, so trading costs are $7/trade for the investment portion.
But I would hold off on HSA Bank until you learn details of Fidelity's individual HSA - it sounds like an improvement.
https://www.fidelity.com/go/hsa/why-hsa
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I found this website’s reviews helpful when picking an HSA. https://thehsareportcard.com/the-top-10-investor-hsas-1/
The scorecard is an overview and then below you can see more in depth reviews for each of the top companies. Although, I see fidelity isn’t an option so it must not have been updated since it became available to individuals.
I have Lively for a small (less than $500) rollover. I don’t use it for investing b/c I felt at that amount it’s not worth the investment fees (even as low as they are). But I like the platform, it’s super easy and intuitive. DH has our family HSA in Further which is what his work picked not us. I also like their platform, although I thought Lively was slightly better. Further’s $1000 threshold to investing is annoying (Lively doesn’t have one).
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Thanks terran and Scandium, that's very interesting and might be my next choice.
So Fidelity offers a $0/year HSA? If I invest solely in iShares ETFs, I also pay $0/trade?
I think my current HSA charges about $5/mo or $6/mo, so it sounds like I'd save $60/year by switching from HSA Bank to Fidelity HSA.
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Thanks terran and Scandium, that's very interesting and might be my next choice.
So Fidelity offers a $0/year HSA? If I invest solely in iShares ETFs, I also pay $0/trade?
I think my current HSA charges about $5/mo or $6/mo, so it sounds like I'd save $60/year by switching from HSA Bank to Fidelity HSA.
Yes, that's my understanding. Fidelity mutual funds (many of which are comparable to Vanguard equivalents) should also trade without commissions.
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Thanks terran and Scandium, that's very interesting and might be my next choice.
So Fidelity offers a $0/year HSA? If I invest solely in iShares ETFs, I also pay $0/trade?
I think my current HSA charges about $5/mo or $6/mo, so it sounds like I'd save $60/year by switching from HSA Bank to Fidelity HSA.
Yes, that's my understanding. Fidelity mutual funds (many of which are comparable to Vanguard equivalents) should also trade without commissions.
This. With no tax implications there is no reason I see to choose ETFs over the less hassle Fidelity mutual funds. A zero expense ratio international fund isn’t the holy grail of investing but if it’s there, well this will be the least costly investing you probably ever do with no taxes at all, no broker fees at all, and not even any fund expenses for what would be 0.1% anywhere else.Thanks terran and Scandium, that's very interesting and might be my next choice.
So Fidelity offers a $0/year HSA? If I invest solely in iShares ETFs, I also pay $0/trade?
I think my current HSA charges about $5/mo or $6/mo, so it sounds like I'd save $60/year by switching from HSA Bank to Fidelity HSA.
Yes, that's my understanding. Fidelity mutual funds (many of which are comparable to Vanguard equivalents) should also trade without commissions.