The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: lilybluerose on December 31, 2023, 09:39:37 AM
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This is my very first year that I finally have a health insurance plan that is HSA eligible. I am going to open one with Fidelity and I would love opinions on funds to look into funding it with.
I am 36 years old and currently have around $133k in an ally savings account in my "buy a new house fund"
27k in my business checking which will be moved around in the beginning of the year. ( IRA, Solo, Bills, HSA)
168k between my IRA, Solo401 k and brokerage in vanguard. These are funded in vtsax, Vfifx(retirement 2050) and vforx(retirement2040)
I really like a more set it and forget it approach, hence the funds above. This HSA will be used as just another long term savings account. I will be paying for all health expenses outside of this.
I have never used fidelity so would love opinions based on this info please. Thank you so much, I hope you all have a great upcoming year!
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I’d go with the usual VTSAX or Fidelity’s equivalent of FSKAX.
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Mine is in VO (Vanguard midcap index, to answer the title question).
Use an ETF or a Fidelity mutual fund. Use of a Vanguard mutual fund will result in a purchase fee. The Fidelity 0 cost index funds are popular, making the Fidelity HSA the only investment option anywhere in the world with literally no cost: no taxes in money going in, none on money out, none on dividends, no account fees, no expenses. In practice there is no benefit versus VTI though.
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I use Fidelity's FXAIX, which is their S&P500 fund. Expenses are .01%. I don't use it for medical expenses, either. Just DCA every month to the max. Was easy to set up and is easy to manage. Nothing complicated about it.
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Are you eligible for payroll deductions on your HSA and below the SS cap? if so you save a decent % purely by doing payroll deductions into your work HSA. it's a hassle to roll them over sometimes, but meaningful $$ to do so.
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Are you eligible for payroll deductions on your HSA and below the SS cap? if so you save a decent % purely by doing payroll deductions into your work HSA. it's a hassle to roll them over sometimes, but meaningful $$ to do so.
I honestly have no idea! I have two tax preparers, one for business one for local/self. I am not good with this stuff at all, so not sure if I would be able to do extra steps lol
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Are you eligible for payroll deductions on your HSA and below the SS cap? if so you save a decent % purely by doing payroll deductions into your work HSA. it's a hassle to roll them over sometimes, but meaningful $$ to do so.
I honestly have no idea! I have two tax preparers, one for business one for local/self. I am not good with this stuff at all, so not sure if I would be able to do extra steps lol
What's your business structure? Inc, LLC, S-Corp, sole proprietor, partnership?
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My HSA is the only account I haven't included in my asset location strategy so it's currently allocated with my overall target AA. The main reason is that the amount is low enough that it doesn't move any needle, and the bi-weekly contributions are small enough that it barely ever needs rebalancing. So I can just keep ignoring it.
Funds I use:
- FZROX - Fidelity ZERO Total Market Index Fund
- FZILX - Fidelity ZERO International Index Fund
- FXNAX - Fidelity U.S. Bond Index Fund
I just made sure to avoid using the same funds that I use in my Roth IRA and brokerage accounts to avoid wash sales. I chose the Zero funds instead of FSKAX/FTIHX as some sort of experiment when they first came out in 2018, since this is a tax-advantaged account.
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Are you eligible for payroll deductions on your HSA and below the SS cap? if so you save a decent % purely by doing payroll deductions into your work HSA. it's a hassle to roll them over sometimes, but meaningful $$ to do so.
I honestly have no idea! I have two tax preparers, one for business one for local/self. I am not good with this stuff at all, so not sure if I would be able to do extra steps lol
What's your business structure? Inc, LLC, S-Corp, sole proprietor, partnership?
LLC
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After doing more research I think I am going to do 60/40 FSKAX FTIHX I think this will be good since my two largest accounts are in TDE 2040/2050
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I'm basically half FZROX and half in PFF.
FZROX takes care of the growth and the monthly dividends from the preferred stock ETF covers our health expenses. HSA is around $100,000.
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I have 100% in FZROX.
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VT, https://www.msn.com/en-us/money/savingandinvesting/why-vt-and-chill-is-probably-the-best-etf-investing-strategy-out-there/ar-AA1imuDI
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I have FZROX and FXNAX in my HSA. I'm about to increase FXNAX allocation as I've decided to make my Roth IRA 100% equities and will shift the bond allocation that was in there to HSA
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I'm basically half FZROX and half in PFF.
FZROX takes care of the growth and the monthly dividends from the preferred stock ETF covers our health expenses. HSA is around $100,000.
What made you choose PFF? It gives a 7% dividend, but over the past 10 years or so, the overall return has just been keeping up with inflation.
edited to add--- I'm comparing it against other dividend funds, such as DNP, which has a 35 year history of consistent payouts and has had returns almost 2x higher than PFF. I don't really know a huge amount about stocks/etfs/funds but am curious why your choice might be better than alternatives.
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VOO, which is Vanguard's S&P 500 etf.
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I'm basically half FZROX and half in PFF.
FZROX takes care of the growth and the monthly dividends from the preferred stock ETF covers our health expenses. HSA is around $100,000.
What made you choose PFF? It gives a 7% dividend, but over the past 10 years or so, the overall return has just been keeping up with inflation.
edited to add--- I'm comparing it against other dividend funds, such as DNP, which has a 35 year history of consistent payouts and has had returns almost 2x higher than PFF. I don't really know a huge amount about stocks/etfs/funds but am curious why your choice might be better than alternatives.
I added PFF and a few others in 2023.
The risk premiums for preferred stocks stopped making sense to me after 2015. ZIRP caused people to take too much risk.
Once banks and REITs crashed in March of 2023, the prefs became attractive again and I bought a bunch of individual names (https://stopironingshirts.com/passive-income-with-preferred-stock/) and indexes (PFF, PFFR, PFFD).
If the risk premiums evaporate again, I'll just sell it for a 25% to 35% gain and move back into an equity index.
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ITOT
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100% in FZROX as well