livesoft wrote:You are overlooking ETFs. My spouse uses BIV in her TDAmeritrade IRA. She has automatic dividend re-investment going on, too.
alisa4804 wrote:I was just looking at investment options from HSA bank also. TD Ameritrade has a list of "no-fee" ETFs which includes many Vanguard ETFs - sounds like a great way to go with HSA funds.
livesoft wrote:You should feel comfortable enough with TDAmeritrade to call them up and ask those questions. Or walk into the local office and ask those questions.
alisa4804 wrote:What a convoluted process - thanks for sharing what you learned with us!
Easy Rhino wrote:BTW Frugalinvestor are you in a state that is also tax-exempt for HSAs? I ask just because I'm in California, where we're not, much to my chagrin. It might affect which type of bond you want to hold.
alisa4804 wrote:The last page of the HSA Bank/TD Ameritrade Enrollment Application, section 1. Commission & Transaction Fees, says No Load - $25, Load - No Fee, NTF - No Fee. I think that NTF/No Transaction Fee funds is the "free ETFs" so let us know if Ameritrade confirms this. Also hope any dividend reinvestments don't trigger fees.
grabiner wrote:alisa4804 wrote:The last page of the HSA Bank/TD Ameritrade Enrollment Application, section 1. Commission & Transaction Fees, says No Load - $25, Load - No Fee, NTF - No Fee. I think that NTF/No Transaction Fee funds is the "free ETFs" so let us know if Ameritrade confirms this. Also hope any dividend reinvestments don't trigger fees.
NTF funds are mutual funds which the brokerage lists as "no transaction fee", typically because the fund company has paid a fee to the brokerage. Vanguard funds are not NTF at any brokerage, because Vanguard does not pay such fees.
There is a separate list of which ETF can be traded commission-free; you can look that list up on the TD Ameritrade web site. (However, ETF trades still aren't free because of the spread, which may cost more than the commission if you make a large trade or trade an illiquid ETF.)
FrugalInvestor wrote:Is there some way I can determine in advance if I'm paying more through the spread or the commission? In other words, how do I determine the spread in advance of the trade?
FrugalInvestor wrote:I set up the account for DRIP thinking that would be convenient, however, after doing so I noticed the following message with regard to accounts set-up for DRIP.....
"Once you are enrolled in DRIP
In order to sell fractional shares of a stock position, you'll need to sell all your whole shares of that position.
By choosing to sell all of your whole shares of stock, you will also sell off the remaining fractional shares of that position."
Since this is an HSA it's very possible that I would eventually wish to liquidate a portion of the shares in order to cover a particular expense. As I understand the above statement since I will have likely purchased partial shares through the DRIP this will not be possible.
FrugalInvestor wrote:I am still very confused by the terminology. Is a "position" defined as the fractional share plus one whole share? And how does the term "fractional shares" make sense. Wouldn't one own at most one fractional share?
letsgobobby wrote:I think it's a waste to invest HSA funds in bonds. The money is tax free going in, and tax free going out. I want to put my highest expected return asset in an HSA, and that means stocks, probably a domestic small value ETF if one is on the no-commission list.
(if you tax-adjust holdings, you'll disregard this post).
letsgobobby wrote:matter of taste I guess. tax-efficiency matters, too. But given current yields of bonds and stocks, and probable taxation policy going forward (not proposed - can't talk about that here), muni bonds in taxable and stocks in tax-free are much more tax-efficient than taxable bonds in tax-free and stocks in taxable. Plus you have the benefit of high return assets tax free forever.