Author Topic: Tell me how to invest my HSA  (Read 3882 times)

ShoulderThingThatGoesUp

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Tell me how to invest my HSA
« on: May 21, 2015, 10:15:17 AM »
Here's the set. Low ER funds are weird, target date funds have very high ERs. I guess my first instinct would be to split three ways between ADFIX, MDSKX, and HLEIX since those have relatively low ERs.

CategoryFund NameTickerGross Expense Ratio
Intermediate-Term BondBlackRock Bond Index-Invest ABMOAX0.0044
Foreign Large BlendBlackRock International Indx-AMDIIX0.0048
Money MarketJPMorgan Prime Mny Mrkt-MorganVMVXX0.0051
Intermediate-Term BondAmerican Century Diverse Bd-AADFIX0.006
Small Cap BlendBlackRock Small Cap Index - AMDSKX0.0062
Large Cap BlendJPMorgan Equity Index - SelectHLEIX0.0065
Intermediate-Term BondPIMCO Total Return - DPTTDX0.0075
Inflation-Protected BondPIMCO Real Return - DPRRDX0.0087
World BondTempleton Global Bond - ATPINX0.0091
Short-Term BondJPMorgan Limited Duration Bd-AONUAX0.0096
Mid-Cap GrowthPrincipal MidCap - R4PMBSX0.0097
High Yield BondMainStay High Yield Corp Bd-AMHCAX0.0099
Retirement IncomePrincipal LifeTime Strt Inc-R4PLSSX0.0102
Real EstateT. Rowe Price Real Est-AdvisrPAREX0.0103
Target Date 2000-2010Principal LifeTime 2010 - R4PTASX0.0106
Target Date 2011-2015Principal LifeTime 2015 - R4LTSLX0.0107
Mid-Cap GrowthRoyce Premier - InvestmentRYPRX0.0109
Target Date 2016-2020Principal LifeTime 2020 - R4PTBSX0.011
Target Date 2021-2025Principal LifeTime 2025 - R4LTEEX0.0112
Large Cap ValueMainStay ICAP Equity - AICAUX0.0114
Small Cap GrowthBlackRock Sml Cap Grwth Eqty-ACSGEX0.0114
Target Date 2026-2030Principal LifeTime 2030 - R4PTCSX0.0114
Target Date 2031-2035Principal LifeTime 2035 - R4LTSEX0.0115
Target Date 2036-2040Principal LifeTime 2040 - R4PTDSX0.0116
Nontraditional BondEaton Vance Glbl Mac Abs Ret-AEAGMX0.0117
Target Date 2046-2050Principal LifeTime 2050 - R4PTESX0.0117
Target Date 2041-2045Principal LifeTime 2045 - R4LTRLX0.0118
Target Date 2051+Principal LifeTime 2055 - R4LTFLX0.0119
Large Cap GrowthJPMorgan Large Cap Growth - AOLGAX0.0121
Conservative AllocationPrincipal SAM Flexible Inc-R4PFILX0.0126
Foreign Large Cap GrowthThornburg International Val-ATGVAX0.0126
Conservative AllocationPrincipal SAM Conserv Bal - R4PCBLX0.0133
Mid-Cap GrowthJPMorgan Mid Cap Growth - AOSGIX0.0134
Moderate AllocationPrincipal SAM Balanced - R4PSBLX0.0137
Aggressive AllocationPrincipal SAM Conserv Grwth-R4PCWSX0.0141
World StockDeutsche Global Growth Fund-ASGQAX0.015

Beyond that, anybody have HSA investing advice? And thanks to everybody who recommended the HSA as part of one's tax-deferred savings.

seattlecyclone

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Re: Tell me how to invest my HSA
« Reply #1 on: May 21, 2015, 10:54:39 AM »
Those are some pretty high expense ratios overall. I might go with one of the first two funds (the BlackRock intermediate bond fund or their foreign large-cap fund) to help fill out those portions of my asset allocation. If you plan to withdraw money from the account as you accrue medical expenses rather than stockpiling receipts for the future, you may prefer the bond fund so that you have less volatility in the account.

charis

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Re: Tell me how to invest my HSA
« Reply #2 on: May 21, 2015, 11:05:33 AM »
Can you transfer your HSA funds to a bank with better investment side options?  My employer provided HSA has investment options with only high fees, like yours.  I recently opened a second HSA with another institution so I can invest with TD Ameritrade, which has much lower cost options.  I have to keep my first HSA to receive the employer contributions and make tax free contributions through my employer.

Kriegsspiel

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Re: Tell me how to invest my HSA
« Reply #3 on: May 21, 2015, 03:10:49 PM »
Switch your HSA to HSA Bank and buy a bunch of VTI/VXUS/VT.

Felipe

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Re: Tell me how to invest my HSA
« Reply #4 on: May 21, 2015, 03:37:50 PM »
I've been looking into starting an HSA myself.

If you don't want to transfer and you'll be withdrawing soon, the bond with the lowest expense ratio has lower volatility and might work out well.

Elements and HSA both have Ameritrade as an option.

I'm 22 and investing for longer term with few withdrawals. It seems Elements has the lowest overall expenses, though there is a $24 transfer fee. I'm planning to contribute for 2015 in December, then for 2016 in January and transfer all but 2500 from savings (to prevent fees for below 2500 balance) at once to minimize my fees to only $24 for 2 years while being invested in the broad market with VTI's basic expense ratio as my only ongoing fee. I can repeat in 2 years to do 2 years contribution with $24 fee, assuming they don't introduce new fees.

Good luck!

Tremeroy

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Re: Tell me how to invest my HSA
« Reply #5 on: May 21, 2015, 03:53:39 PM »
I agree with the advice to look at 3rd party options.

Beyond that, I would advise you to remember that an HSA isn't just a retirement account; I think that you should keep some amount in cash / low volatility investments so that you don't find yourself selling stocks in a down market because of a medical emergency.

In my personal HSA, I have about 50% of one year's max out-of-pocket in cash/bonds, then the balance in VTI.

charis

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Re: Tell me how to invest my HSA
« Reply #6 on: May 22, 2015, 07:07:25 AM »
I agree with the advice to look at 3rd party options.

Beyond that, I would advise you to remember that an HSA isn't just a retirement account; I think that you should keep some amount in cash / low volatility investments so that you don't find yourself selling stocks in a down market because of a medical emergency.

In my personal HSA, I have about 50% of one year's max out-of-pocket in cash/bonds, then the balance in VTI.

An HSA can be a retirement account if you have enough money elsewhere to cover your out of pocket medical costs.  Also, it would be incredibly unlikely that if you suddenly incurred thousands in out of pocket medical costs that you would be immediately forced to sell stocks in a down market.  I have never heard of a medical providers won't allow you to make payments toward a bill.


It seems Elements has the lowest overall expenses, though there is a $24 transfer fee. I'm planning to contribute for 2015 in December, then for 2016 in January and transfer all but 2500 from savings (to prevent fees for below 2500 balance) at once to minimize my fees to only $24 for 2 years while being invested in the broad market with VTI's basic expense ratio as my only ongoing fee. I can repeat in 2 years to do 2 years contribution with $24 fee, assuming they don't introduce new fees.

Even if you transfer once a year, which is what I am doing, it still has the lowest fees.  Plus you don't miss out on a whole year of investing those funds.

ShoulderThingThatGoesUp

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Re: Tell me how to invest my HSA
« Reply #7 on: May 22, 2015, 08:12:59 AM »
Yes, this is my employer HSA that they contribute to and I make payroll contributions to. What hurdles, if any, are involved in transferring between HSAs?

charis

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Re: Tell me how to invest my HSA
« Reply #8 on: May 22, 2015, 09:23:52 AM »
You'd have to research it, but it would basically involve setting up an HSA at another institution (and whatever steps are involved) and transferring funds directly from your first HSA to the new one or transferring funds from your first HSA to yourself, then depositing them into the new HSA within a certain period (which I think you can only do once a year).