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I finally got around to moving my old HSA account from HSA Bank to Fidelity, and now have a few nice options, including no-trade-fee Fidelity funds.
I'm planning to leave ~1000 as cash and invest the rest. I know I should treat this the same way as retirement account. I know not to time the market, but with this crazy run up over the past month or so, I'm kinda thinking to wait until mid-January, maybe?
Also, what funds should I consider? I'd rather stay with Fidelity funds, although I have access to other ETFs, stocks, bonds etc. at some nominal transaction fee. I'm 39. To be honest, I was thinking about putting it in to a total market fund, like ITOT.
Any advice from investment gurus?
I chose to invest my HSA funds in FGRIX (Fidelity Growth & Income) as I wanted something a bit safer. But a total market fund is certainly doable as long as you are okay with the risk level. Plus you're young enough to recover any losses over time.
HSA just became available at work and to be honest I don't really understand them. I was pretty sure we were told our money does not grow but can roll over from year to year. So in time it can represent decent money. So can I withdraw that money, assuming it really does not grow, and roll it into my own investment choices as long as it remains an HSA?
HSA just became available at work and to be honest I don't really understand them. I was pretty sure we were told our money does not grow but can roll over from year to year. So in time it can represent decent money. So can I withdraw that money, assuming it really does not grow, and roll it into my own investment choices as long as it remains an HSA?
It all depends on who your HSA money is with. It has to remain in HSA account. Mine is with Fidelity (not my choice, but employer's) and they have some nice investment choices (for us) - no minimum cash requirements etc. My current employer also contributes to my HSA (not many employers do). The fact that they do that, forces me to have it with Fidelity, although I'm not complaining.
I used to have my money with HSA Bank, when I worked for a previous employer and they didn't provide any guidance for HSA, except they had a HDHP and told us that if we wanted to open HSA account we could do it on our own.
It all depends on who your HSA money is with. It has to remain in HSA account. Mine is with Fidelity (not my choice, but employer's) and they have some nice investment choices (for us) - no minimum cash requirements etc. My current employer also contributes to my HSA (not many employers do). The fact that they do that, forces me to have it with Fidelity, although I'm not complaining.
I used to have my money with HSA Bank, when I worked for a previous employer and they didn't provide any guidance for HSA, except they had a HDHP and told us that if we wanted to open HSA account we could do it on our own.
Thanks, I need to check with my HR person about this.
$1k seems awfully low to have in cash in an HSA. I didn't start investing until I had the OOP max out-of-network sitting in the HSA. Not to mention, my administrator does not allow you to invest any money until you have a minimum balance of $3k.
I see an HSA as a possible retirement vehicle, but more like what it is, a super tax advantaged sinking fund for health expenses, a way to pay for health insurance in times of unemployment, etc. If I get to normal retirement age without ever having to touch the money, great, but I'm not sure that is realistic. I don't know many people in their 50s even who haven't had some major health issue or another. Basically, I am maxing this out every year I can with the expectation that I, or someone else in my family, will fall seriously ill before 65. But if everyone keeps their health, awesome. If not, that is what my other retirement vehicles are for.
Anyway, I don't have access to any good funds to invest in without huge fees. I am offered some no fee ETFs. So, I have a plain jane, conservative 65/35 split of VT (Vanguard Total World Stock ETF)/BIV (Vanguard Total Intermediate-Term Bond ETF).
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