Author Topic: What to invest HSA account in?  (Read 2936 times)

jmr5x

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What to invest HSA account in?
« on: February 08, 2016, 07:01:16 PM »
I have the option to invest my HSA in the following.   What would a be a good method to investigate these?  I just started investing in 401k last year.  I was able to start a company HSA this January and hope to max out both this year. 

American Funds -   Foreign Large Blend, Large Growth

BlackRock -   Mid-Cap Growth

Columbia -   Mid-Cap Growth

Dimensional Fund Advisors -   Diversified Emerging Mkts, Inflation-Protected Bond, Large Value

Dodge & Cox -   Foreign Large Value

Fidelity -   Intermediate-Term Bond, Large Growth, Mid-Cap Blend

Goldman Sachs -   Mid-Cap Value

Heartland   Fund - Small Value

JPMorgan -   High Yield Bond

Oppenheimer -   World Bond

PIMCO -   Commodities Broad Basket, Intermediate-Term Bond

Royce -   Small Blend

Schwab -   Large Blend, Money Market Taxable

Vanguard -   Foreign Large Blend, Large Blend, Mid-Cap Blend, Small Blend

Cohen & Steers -   Realty

Gin1984

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Re: What to invest HSA account in?
« Reply #1 on: February 08, 2016, 07:11:40 PM »
You need to look at the expenses, plus the Morningstar ratings but I'd bet "Vanguard -   Foreign Large Blend, Large Blend, Mid-Cap Blend, Small Blend" will be among your best bets.  The only thing is I'd want to add a bond fund but I am not familiar with any of yours.

GrowingTheGreen

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Re: What to invest HSA account in?
« Reply #2 on: February 08, 2016, 08:16:09 PM »
Agree with PP regarding Vanguard.  One question to ask yourself: Are you going to keep a cash balance so that you can invest more aggressively or do you need to have a bond portion for stability?

Personally, I like to keep one year's worth of out-of-pocket maximum in cash and invest the rest in to Vanguards 500 index.

mrpercentage

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Re: What to invest HSA account in?
« Reply #3 on: February 08, 2016, 08:21:33 PM »
I would look into Goldman Sachs personally. There should be an options somewhere to display the ticker information, or it should be in the prospectus listed. Armed with that information you should go to the funds website (Goldman for example) and investigate for further information. Also check with morningstar. Sometimes retirement accounts offer premium funds that are much better than a index. It rests mostly in loads and fees. If Goldman's fee is close to 1% or less, I say go for it.

Look and see if Fidelity's is the Contrafund. Thats a good one.

I like certain funds from American Funds. It depends on the share classification and your fees. Growth Fund of America for example has a lifetime annual rate return of 13.5%. That is through the crappy 80's, the dot com boom, and the financial crisis. That says a lot. I like the New Economy Fund as well (I have both and will hold both). I have T Rowe Price too.


GrowingTheGreen

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Re: What to invest HSA account in?
« Reply #4 on: February 09, 2016, 08:11:57 AM »
I would look into Goldman Sachs personally. There should be an options somewhere to display the ticker information, or it should be in the prospectus listed. Armed with that information you should go to the funds website (Goldman for example) and investigate for further information. Also check with morningstar. Sometimes retirement accounts offer premium funds that are much better than a index. It rests mostly in loads and fees. If Goldman's fee is close to 1% or less, I say go for it.

Look and see if Fidelity's is the Contrafund. Thats a good one.

I like certain funds from American Funds. It depends on the share classification and your fees. Growth Fund of America for example has a lifetime annual rate return of 13.5%. That is through the crappy 80's, the dot com boom, and the financial crisis. That says a lot. I like the New Economy Fund as well (I have both and will hold both). I have T Rowe Price too.
I can't tell if there is any sarcasm in your post regarding the recommendation of a fund that has an expense ratio of 1% being a good idea.

jmr5x

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Re: What to invest HSA account in?
« Reply #5 on: March 01, 2016, 08:59:03 PM »
Agree with PP regarding Vanguard.  One question to ask yourself: Are you going to keep a cash balance so that you can invest more aggressively or do you need to have a bond portion for stability?

Personally, I like to keep one year's worth of out-of-pocket maximum in cash and invest the rest in to Vanguards 500 index.

I hope to keep a cash balance for as long as possible,  I do not visit the Dr very often, even those few times can really add up!

mrpercentage

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Re: What to invest HSA account in?
« Reply #6 on: March 02, 2016, 12:32:51 AM »
I would look into Goldman Sachs personally. There should be an options somewhere to display the ticker information, or it should be in the prospectus listed. Armed with that information you should go to the funds website (Goldman for example) and investigate for further information. Also check with morningstar. Sometimes retirement accounts offer premium funds that are much better than a index. It rests mostly in loads and fees. If Goldman's fee is close to 1% or less, I say go for it.

Look and see if Fidelity's is the Contrafund. Thats a good one.

I like certain funds from American Funds. It depends on the share classification and your fees. Growth Fund of America for example has a lifetime annual rate return of 13.5%. That is through the crappy 80's, the dot com boom, and the financial crisis. That says a lot. I like the New Economy Fund as well (I have both and will hold both). I have T Rowe Price too.
I can't tell if there is any sarcasm in your post regarding the recommendation of a fund that has an expense ratio of 1% being a good idea.

PAMCX is Mid Caps and it has a lifetime 14% annual return rate with a 1% annual fee... whats the S&P 500? 7%..... yeah, I think its a good idea to pay the 1% sometimes.

opnfld

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Re: What to invest HSA account in?
« Reply #7 on: March 03, 2016, 01:20:24 PM »
I consider my investable HSA balance as part of my total portfolio and choose funds based on my desired total asset allocation.  Considering the tax-efficient nature of an HSA, it makes sense (for me at least) to hold bonds there - avoids tax on the monthly distributions and preserves the balance for health care costs as necessary.  I would probably choose the Fidelity Interm Term Bond (fees .45%; 1.88% yield)...not great, but would serve my purpose.

My HSA has pretty lousy options when it comes to fees.  Your options don't seem much better.