Author Topic: VIIIX, VEMPX, VIGIX in my HSA?  (Read 5436 times)

Satin Shoestring

  • 5 O'Clock Shadow
  • *
  • Posts: 15
VIIIX, VEMPX, VIGIX in my HSA?
« on: July 29, 2017, 03:00:38 PM »
Hi all,

I opened a health savings account with Healtjequity.
I have it invested in:

VIIIX
VEMPX
VIGIX

In thirds.

I'm looking to hear from the gurus here re: whether this is how you'd allocate it. Or if you have a better idea, I'm open.

VTSAX was not an option. All the options are Vanguard.

Thank you!

VoteCthulu

  • Bristles
  • ***
  • Posts: 409
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #1 on: July 29, 2017, 11:00:03 PM »
VTSAX is about the same as 81% VIIIX and 19% VEMPX.
www.bogleheads.org/wiki/Approximating_total_stock_market

I just put all of my HSA in VIIIX and then increase the VEMPX in my 401k to compensate.
« Last Edit: July 29, 2017, 11:14:28 PM by VoteCthulu »

seattlecyclone

  • Walrus Stache
  • *******
  • Posts: 5473
  • Age: 36
  • Location: Seattle, WA
    • My blog
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #2 on: July 29, 2017, 11:12:01 PM »
Given that most people don't have an HSA worth more than a few percent of their overall net worth, I personally think that putting it in more than one fund just tends to unnecessarily complicate your financial life. Pick one fund such as a US total market fund (or S&P 500 fund if total market isn't available), and put the whole thing in there. Adjust your other accounts as appropriate to make sure that your total portfolio matches up with your desired asset allocation.

Satin Shoestring

  • 5 O'Clock Shadow
  • *
  • Posts: 15
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #3 on: July 30, 2017, 08:17:59 PM »
Thank you. This helps.

sisto

  • Pencil Stache
  • ****
  • Posts: 973
  • Age: 51
  • Location: Sacramento, CA
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #4 on: July 31, 2017, 03:23:00 PM »
I'm in the same boat as you and I also agree with Seattlecyclone that it's not enough money to split up. I would have put it all in VTSAX, but that was not an option so I put all of mine VIIX. I'm also set to auto invest so each month when I'm paid the money for my HSA goes into VIIX.

Clean Shaven

  • Pencil Stache
  • ****
  • Posts: 821
  • Location: Wild Wild West
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #5 on: July 31, 2017, 03:34:12 PM »
Given that most people don't have an HSA worth more than a few percent of their overall net worth, I personally think that putting it in more than one fund just tends to unnecessarily complicate your financial life. Pick one fund such as a US total market fund (or S&P 500 fund if total market isn't available), and put the whole thing in there. Adjust your other accounts as appropriate to make sure that your total portfolio matches up with your desired asset allocation.

^^ This is my approach, and I have Health Equity for a HSA too.  I dump it all into VIIIX -- it's the best option available to me in my Health Equity plan. 

My plan lets me invest anything above $2,000.00 (must keep a minimum $2K in cash), but I get charged a monthly fee if I do not keep a minimum $2,500 in cash.  So, I invest everything above $2,520.  I keep a small buffer to make sure that I meet that minimum $2,500 -- the monthly fees for the investing portion of the HSA get deducted from the cash portion, and I don't want to dip down below $2,500 cash.

VoteCthulu

  • Bristles
  • ***
  • Posts: 409
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #6 on: August 01, 2017, 04:47:52 PM »
That's funny, I also have HealthEquity, and I can invest everything over  $1,000 for no extra fee (beyond their normal monthly fee and extra shrink wrap fee on all their Vanguard funds).

They must offer different plans for different companies  (or in different states).

StudentEngineer

  • 5 O'Clock Shadow
  • *
  • Posts: 88
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #7 on: August 02, 2017, 10:21:16 AM »
I agree with everyone else, VIIIX seems like the easiest and best bet.

Good job on utilizing an HSA! Many people haven't even heard of them.

morethanconquerors

  • 5 O'Clock Shadow
  • *
  • Posts: 26
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #8 on: August 02, 2017, 10:49:47 AM »
I have a general question on HSAs. Wouldn't it make more sense to invest in a more conservative fund like a total bond market index fund? The thought process behind this being that you would not want to risk having a large medical expense when your HSA is heavily invested in stocks during a market downturn. Any thoughts or guidance would be appreciated!

Clean Shaven

  • Pencil Stache
  • ****
  • Posts: 821
  • Location: Wild Wild West
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #9 on: August 02, 2017, 10:54:29 AM »
I have a general question on HSAs. Wouldn't it make more sense to invest in a more conservative fund like a total bond market index fund? The thought process behind this being that you would not want to risk having a large medical expense when your HSA is heavily invested in stocks during a market downturn. Any thoughts or guidance would be appreciated!

If your goal is to avoid any losses in the HSA, then sure.

Personally, I'm using the HSA account as a sort of ultimate IRA account, and am not withdrawing anything from it for purposes of paying medical bills.  I'm just dumping the max I can into it, and investing the max I can within it.

morethanconquerors

  • 5 O'Clock Shadow
  • *
  • Posts: 26
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #10 on: August 02, 2017, 11:03:32 AM »
I have a general question on HSAs. Wouldn't it make more sense to invest in a more conservative fund like a total bond market index fund? The thought process behind this being that you would not want to risk having a large medical expense when your HSA is heavily invested in stocks during a market downturn. Any thoughts or guidance would be appreciated!

If your goal is to avoid any losses in the HSA, then sure.

Personally, I'm using the HSA account as a sort of ultimate IRA account, and am not withdrawing anything from it for purposes of paying medical bills.  I'm just dumping the max I can into it, and investing the max I can within it.

That makes perfect sense. Thanks for explaining.

runewell

  • Bristles
  • ***
  • Posts: 417
  • Age: 49
  • actuary
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #11 on: August 02, 2017, 11:44:44 AM »
That's all [expensive] US stocks - what about assigning 1/3 to an international component?

Clean Shaven

  • Pencil Stache
  • ****
  • Posts: 821
  • Location: Wild Wild West
Re: VIIIX, VEMPX, VIGIX in my HSA?
« Reply #12 on: August 02, 2017, 11:57:11 AM »
That's all [expensive] US stocks - what about assigning 1/3 to an international component?

I have other investments outside of my HSA -- in my rollover IRA, my Roth IRA, my current 401k-type plan, and in a taxable account -- in which there are international holdings.  No need to duplicate that in the HSA.