Author Topic: What's Your Asset Allocation in Your HSA?  (Read 2008 times)

ReadySetMillionaire

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What's Your Asset Allocation in Your HSA?
« on: March 15, 2018, 08:01:26 AM »
I am in the process of transferring my HSA to a bank that doesn't allow me to invest the funds to a bank that does (Health Equity...side note, let me know if you have any other recommendations). 

All of our investments (my 401k, wife's 401k, wife's Roth IRA, my traditional IRA) are either 100% stocks or 90% stocks/10% bonds. 

I'm a little hesitant to be this aggressive an HSA, however, because those funds are there to pull in case of a health emergency.

So, I'm curious, what's your asset allocation in your HSA?

swinginbeef

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Re: What's Your Asset Allocation in Your HSA?
« Reply #1 on: March 15, 2018, 08:47:39 AM »
I keep enough to cover the yearly plan deductible in the money market tied to the plan debit card. Everything beyond that, I invest at the same AA as my retirement stuff.

ketchup

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Re: What's Your Asset Allocation in Your HSA?
« Reply #2 on: March 15, 2018, 08:57:16 AM »
Mine's 100% VTSAX.

terran

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Re: What's Your Asset Allocation in Your HSA?
« Reply #3 on: March 15, 2018, 09:22:43 AM »
We've just transferred to Lively, which seems to be the best option right now (see https://www.whitecoatinvestor.com/the-best-health-savings-account/ and many Bogleheads threads). The only fee is $2.50/month to invest, that's taken from your linked bank account (so you don't reduce your tax advantaged HSA holdings), and you can invest everything you have held there.

We're going to continue to contribute through payroll deduction to the company my wife's employer uses and transfer (indirectly to avoid trustee to trustee transfer fees) once a year, so we'll generally have somewhere between $0 and the annual limit available in cash in the employer-linked account. We only reimburse ourselves at most once a year anyway.

Since Lively (like many HSAs) allows investing through TD Ameritrade I'm looking at their list of commission free ETFs sorted by expense ratio and will probably go with 100% SPTM - SPDRŽ Portfolio Total Stock Market ETF and even out our asset allocation with extra international in taxable to take advantage of the foreign tax credit. Our taxable account is 100% stock. All the rest of our tax advantaged space has far out target date funds (so 90% stock) so I don't have to worry about rebalancing them, and I don't have to worry about dividend reinvestment causing wash sales with any tax loss harvesting I might do it taxable (since other tax advantaged and taxable are at the same brokerage, so if I went 100% stock there would be overlap between taxable and tax advantaged).

starbuck19

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Re: What's Your Asset Allocation in Your HSA?
« Reply #4 on: March 15, 2018, 10:38:57 AM »
100% VIIIX  (HSA account value is a small percentage of my total investments).

I currently have HealthEquity and am trying to move everything away from them to HSA Authority (one single $36/year fee), they have really terrible terms w.r.t. fees: .033% monthly fee of the total value of your investments, plus $3.95 monthly account administration fee (this was previously covered by my former employer; I'm now on COBRA so they make me pay it), plus forcing you to hold $2k in your HSA account (i.e. you cannot invest it). I called them to see if they'd be willing to waive some fees, and the lady said oh you shouldn't be charged the monthly admin fee as your HSA account + investment value is over some threshold. Bear in mind they'd been happily charging me the monthly admin fee, and would have continued to do so had I not called.

« Last Edit: March 15, 2018, 10:41:13 AM by starbuck19 »

Midwest

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Re: What's Your Asset Allocation in Your HSA?
« Reply #5 on: March 15, 2018, 10:41:12 AM »
Posting to follow.

sisto

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Re: What's Your Asset Allocation in Your HSA?
« Reply #6 on: March 15, 2018, 11:20:11 AM »
I have HealthEquity too. I'm 100% in VIIIX they don't offer me VTSAX or VTSMX so it's in VIIIX. They require me to keep  $1000 in the account and the rest can be invested which is what I do.

boarder42

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Re: What's Your Asset Allocation in Your HSA?
« Reply #7 on: March 15, 2018, 11:24:10 AM »
100% VTSAX but i have to keep 2k in cash.

Eleden

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Re: What's Your Asset Allocation in Your HSA?
« Reply #8 on: March 15, 2018, 12:16:49 PM »
I did 50/50 VTSAX/VBTLX until the VBTLX balance was equal to the max payout per year for my health insurance plan.
All contributions since then have been split 90/10 VTSAX/VBTLX.

boarder42

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Re: What's Your Asset Allocation in Your HSA?
« Reply #9 on: March 15, 2018, 07:25:06 PM »
I did 50/50 VTSAX/VBTLX until the VBTLX balance was equal to the max payout per year for my health insurance plan.
All contributions since then have been split 90/10 VTSAX/VBTLX.

It would make more sense to hold your bonds outside of your hsa. Since the earnings are tax free holding bonds here is inefficient from a tax stand point. You can pull money from an HSA at anytime for past charges that could have been paid with money that would head to a taxable account.

pdxvandal

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Re: What's Your Asset Allocation in Your HSA?
« Reply #10 on: March 15, 2018, 07:28:51 PM »
About 80% VIIIX and 20% VWIAX through HealthEquity via a work-sponsored plan.