HSA Investment Options

[PepperK]

I will be starting an HSA this new benefit period and plan on maxing it out, as I will also be getting a $1000 match!  Would you recommend VTSMX or Vanguard Small Cap Index ?? Completely new to any and all investing, but have been reading and listening to MMM and many others, so I do know these are the 2 best options available, but which one would be optimal??

[MDM]

I will be starting an HSA this new benefit period and plan on maxing it out, as I will also be getting a $1000 match!  Would you recommend VTSMX or Vanguard Small Cap Index ?? Completely new to any and all investing, but have been reading and listening to MMM and many others, so I do know these are the 2 best options available, but which one would be optimal??

PepperK, welcome to the forum!

As the saying goes, "a little knowledge is a dangerous thing." :)

The point being, nobody knows the best options in advance.  VTSMX is a reasonable option, small caps are reasonable options, but you might want to read more about Asset allocation.  Also some of the posts in HSA vs PPO - Sanity Check - Bogleheads.org.

You may end up back where you started and pick one of your original options, and that's fine.  You might also decide something else altogether.  In any case, you are in the right ballpark and will likely do well.

[PepperK]

Thank you. So much to learn!!

[OthalaFehu]

Usually the HSA you are in has a limited number of options to choose from, are you saying that those two you mentioned are covered or are you assuming they will be?

[PepperK]

I have researched the funds available to choose from and both of them are offered as options.

[startingsmall]

On a somewhat-embarrassing side note, thank you for this post.... I just realized that I never set up my HSA investments and I've been earning a measly 0.4% interest on my account since starting my job almost two years ago. I max my HSA and only use it for current expenses on an occasional basis, but that money is just sitting there. Ouch. Anyway, thanks for bringing that to my attention and motivating me to fix it tonight!!