Author Topic: What HSA provider do you use during FIRE?  (Read 3030 times)

andysandp

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What HSA provider do you use during FIRE?
« on: December 07, 2017, 09:12:55 AM »
Anyone have a good HSA provider during FIRE?

less4success

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Re: What HSA provider do you use during FIRE?
« Reply #1 on: December 07, 2017, 10:05:39 AM »
I havenít actually had to make a decision yet, but the info in this article looked useful:

http://www.livefreemd.com/health-savings-account/

Iím planning on looking closer at Optum when the time comes.

DTaggart

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Re: What HSA provider do you use during FIRE?
« Reply #2 on: December 07, 2017, 10:19:18 AM »
My employer offered HSA is through Optum Bank and I've been happy enough with them. I haven't FIREd quite yet but so far don't see any reason I won't stick with Optum. They have my basic Vanguard funds and no monthly fee (once your balance is above a couple grand), and the web interface is acceptable.

diapasoun

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Re: What HSA provider do you use during FIRE?
« Reply #3 on: December 07, 2017, 10:46:25 AM »
PTF. I have Optum right now and I'm not sure I'm on for it (though if the monthly fee goes away after my balance gets higher, I'm so very in).

Enigma

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Re: What HSA provider do you use during FIRE?
« Reply #4 on: December 26, 2017, 04:25:20 AM »
I'm using HealthEquity for my HSA provider.  Before that my company was using Wageworks.  It is worth noting that I have left that company and have continued to use HealthEquity.  I am not sure if it is better or worse than the others but I did like that they carry some of the Vanguard Funds that I would have used anyways.

Fishingmn

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MoseyingAlong

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Re: What HSA provider do you use during FIRE?
« Reply #6 on: December 26, 2017, 12:19:13 PM »
I've been looking at HSA options.

HealthEquity has an "Index Investor HSA" that I think I'm going to go to. I don't plan to submit any medical expenses any time soon so am looking for the best investment option.
According to their website and a rep I talked to this morning, it has an annual admin fee of $36 and investment fee of 0.24% per year.

What I like about it is that it's all Vanguard funds, some Institutional and Admiral class, and you can invest everything over $50. Some of the other custodians make you keep $1-2K in cash.

I haven't actually gone to it yet but, if the above turns out as advertised, I'll be very happy.

BTDretire

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Re: What HSA provider do you use during FIRE?
« Reply #7 on: December 27, 2017, 07:58:16 AM »
I have an account with 'Select Account' they allow you to move the money into 33 different Mutual funds offered by Schwab. You must keep a minimum in your Select Account, account.
I think it is $1000.
Here's the list, including Gross Expense Ratio.
https://hsainvestments.com/fundperformance/?p=HSA&newwindow=true
They even have a Vanguard 0.04% Expense Ratio fund.
 ISTR an $18 dollar fee to get into the Schwab accounts.
 I don't use my HSA, I just fund it, so I can't vouch for any outgoing payment problems,
but I have no reason to think anyone has any problems either.

Nick_Miller

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Re: What HSA provider do you use during FIRE?
« Reply #8 on: December 28, 2017, 07:41:32 AM »
I havenít actually had to make a decision yet, but the info in this article looked useful:

http://www.livefreemd.com/health-savings-account/

Iím planning on looking closer at Optum when the time comes.

@less4success, that article was VERY helpful. Thanks for posting it!

amicableskeptic

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Re: What HSA provider do you use during FIRE?
« Reply #9 on: January 02, 2018, 04:51:22 PM »
I had Discovery Benefits at my last job and I kept them when I retired. They charge $2.50/month and require $1k in cash before you can invest. Sadly this cash only earns 4 cents a month in interest so I'm losing out on about $70 in annual investment gains with it (on the plus side the monthly fees come out of this $1k and don't need to be replaced so it just keeps dropping and thus the lost interest also drops). Luckily, Discovery Benefits offers good investment options. I put ~10k in VFINX in it 2 years ago and it's up to ~13k now (it also offers VGTSX, VBMFX, and others). Avoiding the 15% capital gains tax on this 3k gain has saved me over $200/year so as much as I hate the the $30 annual fee and the lost investment income it has been made up.

With only 13k invested the breakeven point is actually pretty close. For example, if the market was gaining a more normal 7%/year then it would only be saving 13k*.07*.15=136.50/year all while costing $30 and losing me $70 in annual returns, so only $36.50 in annual gain. It's even a bit worse than this because the tax savings don't show up till you sell while the fees are taken out immediately. If the market gains 3.16% or less in a year then this HSA will actually be costing me more money than it saves. As the assets in the account grow the breakeven point will improve (and conversely if the market falls and assets in the HSA drop then the breakeven point will get worse).

One other note about HSAs, you cannot roll an individual HSA into a family one (if someone knows a way around this let me know). Since I now contribute to my family HSA that means that this account will not get any future contributions and only grow due to the market. I originally planned on holding it for 30-50 years before withdrawing anything, but since it is so close to breakeven if I ever get enough medical expenses built up to drain it I will. I do plan to continue max contribution to my family HSA and not withdrawing from it. With $6750 annual contribution cap you can hit 50k in assets in about 7 years. Once you're at $50k the monthly fee and lost interest on the $1k cash pale in comparison to your savings on capital gains tax (the break even point is when the market gains under 0.5%)

smoghat

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Re: What HSA provider do you use during FIRE?
« Reply #10 on: January 03, 2018, 07:45:43 AM »
https://healthsavings.com

Itís the one you are linked to from Vanguardís web site. Good enough for me, right there.

peabody58

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Re: What HSA provider do you use during FIRE?
« Reply #11 on: January 21, 2018, 01:04:53 PM »
Have BenefitWallet from previous employer.  $2.90 month for Investment management.  Looked at changing last month, but in the end, BW is a good low cost and I'm happy with my returns.  Will be looking at moving some of the funds over to the Vanguard options soon.

Will

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Re: What HSA provider do you use during FIRE?
« Reply #12 on: June 13, 2018, 07:37:37 PM »
Does anyone use Lively (as recommended here: https://www.whitecoatinvestor.com/the-best-health-savings-account/ )?  It sounds pretty good to me.

Paul | pdgessler

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Re: What HSA provider do you use during FIRE?
« Reply #13 on: June 15, 2018, 08:41:20 AM »
Does anyone use Lively (as recommended here: https://www.whitecoatinvestor.com/the-best-health-savings-account/ )?  It sounds pretty good to me.

I opened a Lively HSA account a few months ago and have had no issues so far. My contributions go there directly from payroll, show up in the account in a timely fashion, and I haven't had any problems to date. Chat support was very responsive when I asked a few questions prior to opening the account.

I haven't invested yet. I'm waiting to do that until I get some more money built up there such that the dividend yield of my invested balance will basically cover the fees.

So far, albeit with my basic usage, no complaints at all!

Will

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Re: What HSA provider do you use during FIRE?
« Reply #14 on: June 15, 2018, 06:50:15 PM »
Does anyone use Lively (as recommended here: https://www.whitecoatinvestor.com/the-best-health-savings-account/ )?  It sounds pretty good to me.

I opened a Lively HSA account a few months ago and have had no issues so far. My contributions go there directly from payroll, show up in the account in a timely fashion, and I haven't had any problems to date. Chat support was very responsive when I asked a few questions prior to opening the account.

I haven't invested yet. I'm waiting to do that until I get some more money built up there such that the dividend yield of my invested balance will basically cover the fees.

So far, albeit with my basic usage, no complaints at all!

Thanks!  If I end up with a qualifying plan (which seems likely) I am pretty sure Lively is who I will end up going with.

Financial.Velociraptor

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Re: What HSA provider do you use during FIRE?
« Reply #15 on: June 15, 2018, 07:09:17 PM »
I'm also on Lively.  No issues.  Easy to upload receipts.  Seamless transfer to self directed TD Ameritrade brokerage.  Recommended.

terran

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Re: What HSA provider do you use during FIRE?
« Reply #16 on: June 15, 2018, 08:58:14 PM »
Not retired, but so far so good with Lively. They seemed like the best option when I looked about 4 months ago.

We were with HSA bank because that's who my wife's previous employer used. We didn't invest at the time, but if we had I think fees would have ended up around $60/year.

My wife's current employer uses Optum bank, so we have her payroll deductions go there and then do an indirect transfer to lively to avoid transfer fees (legally limited to 1 every 12 months). With them you have to leave the first $2000 uninvested and they charge an additional expense ratio on top of what the underlying investment charges. I don't remember how much the fee is, but I think this might be specific to the account type (employer, individual, etc) anyway.

Lively charges $2.50/month to invest, and that's deducted from your linked bank account, so it doesn't come out of your HSA balance which is cool. Investments are through TD ameritrade (as they would have been with HSA bank), so you want to use one of their commission free ETFs. We use SPTM (total US market index).

Clean Shaven

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Re: What HSA provider do you use during FIRE?
« Reply #17 on: June 15, 2018, 11:08:57 PM »
PTF. I'm using health equity for a HSA currently, because it was from my employer. I'm now part time and in a different health plan and cannot contribute to the HSA anymore. Health equity charges more than I would like to pay so am looking for a different HSA company.

If you have investments through your HSA, and switch HSA providers, how does that work? Do I have to sell the investments to go to all cash before moving HSA accounts?

Acastus

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Re: What HSA provider do you use during FIRE?
« Reply #18 on: July 25, 2018, 02:04:01 PM »
I am in month 1 of FIRE, and I spent a week choosing one. I chose Lively, a new internet startup. The bank account is FDIC insured at Choice Financial, and investments are at TD Ameritrade. Their big selling points are customer service, a host of features online, and small fees. You need $1000 to start investing, but you don't need to keep anything in cash. As with a bank account, I can change if I don't like it.

For those who have not shopped for an HSA, it is like choosing a credit card or a bank, but most of the choices are terrible. There are few clearinghouses to help you choose one, and many details are completely opaque.

My old company used Payflex, and I personally do not pay maintenance fees or investment fees. I think they charge $3/mo and $1.5/mo, respectively. Their choice of funds - 4 funds + 4 fund of funds - is weak. Their website is also pretty cryptic. My money has not grown much over the last 5 years.

I relied on the Can I Retire Yet review
https://www.caniretireyet.com/best-investing-hsa/

, and a handful of googled reviews. I liked the HSA report card, but I cannot tell whether the reviewer is worth listening to.

https://thehsareportcard.com/the-top-10-investor-hsas

My BCBS plan partnered with HSA Bank, and the above reviews rated them bottom half. That is probably good compared to most, but they have $90 per year in fees if you want to invest in low cost funds and ETFs, $2 ATM, $10 checks, $25 closing fee, $6 debit card, and some others. They do not require you keep money in cash. Most require $1000.

Vanguard recommends Health Equity, because they use Vanguard funds exclusively. They have about $50/year fees plus 0.40% custodial fee, and similar special item fees similar to HSA Bank. Need to keep $2000 in cash. No Thanks!

stoaX

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Re: What HSA provider do you use during FIRE?
« Reply #19 on: July 25, 2018, 02:17:26 PM »
Posting to follow.. I might be switching to an HSA plan next year so I need to get educated. 

Will

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Re: What HSA provider do you use during FIRE?
« Reply #20 on: July 27, 2018, 01:16:25 AM »
Does anyone use Lively (as recommended here: https://www.whitecoatinvestor.com/the-best-health-savings-account/ )?  It sounds pretty good to me.

I opened a Lively HSA account a few months ago and have had no issues so far. My contributions go there directly from payroll, show up in the account in a timely fashion, and I haven't had any problems to date. Chat support was very responsive when I asked a few questions prior to opening the account.

I haven't invested yet. I'm waiting to do that until I get some more money built up there such that the dividend yield of my invested balance will basically cover the fees.

So far, albeit with my basic usage, no complaints at all!

Thanks!  If I end up with a qualifying plan (which seems likely) I am pretty sure Lively is who I will end up going with.

I did end up in a qualifying plan and I dd go with Lively.  So far so good.

SilverAg47

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Re: What HSA provider do you use during FIRE?
« Reply #21 on: July 28, 2018, 08:46:17 PM »
I use Saturna because they have the lowest fees.  I pay just $18.95 per year and am able to be fully invested in the VTI index fund (0.04 ER).  I front-load my HSA contributions through my first few paychecks, then I do a Rollover (done over the phone) to Saturna.  I then execute my 1 trade for the year by buying more VTI.  That incurs a $14.95 fee.  I pay $1 per quarter to have the VTI dividends reinvested.  If your account balance is low enough, then it may make more sense to not pay that $1 reinvestment fee.  For those like me that are using the HSA to pile in as much money as possible to grow tax free, and who are saving up receipts for withdrawing many years from now, I find Saturna to be the #1 choice.

Padonak

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Re: What HSA provider do you use during FIRE?
« Reply #22 on: July 28, 2018, 08:49:57 PM »
ptf

Trifele

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Re: What HSA provider do you use during FIRE?
« Reply #23 on: August 08, 2018, 05:40:42 AM »
FIREing next year -- posting to follow.