Health Savings Account recommendation

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dave1054
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Health Savings Account recommendation

Post by dave1054 » Wed Oct 04, 2017 6:45 pm

Not happy with my HSA with Bank of America. Any recommendations? Would like option to purchase Vanguard funds
through a linked brokerage account. Thanks.

kazper
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Re: Health Savings Account recommendation

Post by kazper » Wed Oct 04, 2017 7:05 pm

I found a link a while back that provided a good overview of several options. I'll see if i can dig it up again.
I currently have hsa bank, no investments. They allow vanguard funds and charge around 3 per month for the account. The fee might be waived if you keep a minimum amount in the hsa account.

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FrugalInvestor
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Re: Health Savings Account recommendation

Post by FrugalInvestor » Wed Oct 04, 2017 7:09 pm

HSA Bank with linked TD Ameritrade account is the best option I'm aware of. None are particularly good in terms of fees especially for those of us who don't require much service because we're saving in the accounts for the long-term.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

aristotelian
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Re: Health Savings Account recommendation

Post by aristotelian » Wed Oct 04, 2017 7:31 pm

Selectaccount is cheaper than HSA Bank and has a full investment option with Schwab once you hit $10k.

There is an active thread on Lively which is the cheapest and also has TD brokerage.

HSA Authority also looks good.

hirlaw
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Re: Health Savings Account recommendation

Post by hirlaw » Wed Oct 04, 2017 7:33 pm

I have been happy with Optum Bank HSA. The investment options include several Vanguard funds.

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indexfundfan
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Re: Health Savings Account recommendation

Post by indexfundfan » Wed Oct 04, 2017 7:50 pm

You can also use Saturna if the HSA is used only for investment, and you invest lump-sum only once a year.
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WorkToLive
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Re: Health Savings Account recommendation

Post by WorkToLive » Wed Oct 04, 2017 7:56 pm

Another vote for Optum Bank. I'm happy with them. My new employer uses HSA Bank so now I have them as well. I'm almost ready to invest with TD Ameritrade now that I've built up the required $5,000 in cash.

forkhorn
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Re: Health Savings Account recommendation

Post by forkhorn » Wed Oct 04, 2017 8:06 pm

I'll second HSA Bank/TD Ameritrade. Been using them for maybe ten years; no issues, but not much in the way needs either. I do reimburse myself at the end of each year. Other than being limited to $500 per transfer, no complaints. We used to use the debit card, which was super easy, but for the past 5 years or so we pay with our own credit cards (for the points) and then reimburse with cash at the end of the year. Once every year or two I move excess to TD Ameritrade.

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abuss368
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Re: Health Savings Account recommendation

Post by abuss368 » Wed Oct 04, 2017 8:53 pm

Bogleheads -

Our HSA is presently with Optum Bank. Previously it was with Wells Fargo, however the bank recently sold their HSA services to Optum. Thus far we have no complaints.

Best.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

skylar
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Re: Health Savings Account recommendation

Post by skylar » Wed Oct 04, 2017 9:12 pm

We use HSA Bank+TD Ameritrade, and also HealthEquity (no choice there, as that's through my employer). At this point we make enough in dividends from the TD Ameritrade account to more than cover the low balance fees on the HSA Bank side, so we only leave enough in HSA Bank to cover ~6 months worth of fees, and once or twice a year transfer money from HealthEquity.

cas
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Re: Health Savings Account recommendation

Post by cas » Thu Oct 05, 2017 6:15 am

Bogleheads Wiki "Health Savings Accounts", Custodians and Options section: https://www.bogleheads.org/wiki/Health_ ... nd_options

Morningstar white paper evaluating HSA administrators: google "Morningstar 2017 Health Savings Account Landscape filetype:pdf" (It is behind an annoying fill-in-the-form wall at Morningstar, but it is also loose in the wilds of the internet)

Bogleheads 2017 central thread on HSA administrators: "Best HSA (2017)" viewtopic.php?t=207051

Big Dutch
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Re: Health Savings Account recommendation

Post by Big Dutch » Thu Oct 05, 2017 6:28 am

We just started using SelectAccount this year and have been very pleased so far. Very easy to use and can do almost everything online. Low cost access to index funds was key for us.

Good luck on your search!

~Big Dutch

naghebe
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Re: Health Savings Account recommendation

Post by naghebe » Thu Oct 05, 2017 8:48 am

I have BenefitWallet and I'm happy with it. It allows investments in the typical 3 fund portfolio with TSM being institutional and International and Bonds being Admiral class.

$2.90 a month flat fee for investing.
Last edited by naghebe on Thu Oct 05, 2017 10:06 am, edited 1 time in total.

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Pranav
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Re: Health Savings Account recommendation

Post by Pranav » Thu Oct 05, 2017 9:56 am

We have HSA with UMB Bank through employer’s medical plan. It has $3/month fee. It requires $1000 of deposit balance. The rest can be invested several Vanguard funds. The wiki mentioned earlier should be a good resource for comparison.
Pranav

Morgan22
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Re: Health Savings Account recommendation

Post by Morgan22 » Thu Oct 05, 2017 10:18 am

You can go to hsasearch.com and compare all of the HSA providers mentioned above.

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indexfundfan
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Re: Health Savings Account recommendation

Post by indexfundfan » Thu Oct 05, 2017 8:27 pm

dave1054 wrote:
Wed Oct 04, 2017 6:45 pm
Not happy with my HSA with Bank of America. Any recommendations? Would like option to purchase Vanguard funds
through a linked brokerage account. Thanks.
If you are using the HSA for investments only, consider using a provider with "first dollar" investing. Three that I currently know of are HSA Authority, Saturna and Lively.

Any HSA provider with a cash balance requirement in a low APY account gives your investments a "cash drag". Each $1000 kept in cash could be like a fee of $40 ~ $50 per year.
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theplayer11
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Re: Health Savings Account recommendation

Post by theplayer11 » Fri Oct 06, 2017 2:55 pm

had HSA Bank, but did not like having to keep $5k in cash to avoid the fees. Switched to Saturna..the cheapest option if you are trading 1 or 2 times a year.

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hoppy08520
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Re: Health Savings Account recommendation

Post by hoppy08520 » Sat Oct 07, 2017 9:01 am

naghebe wrote:
Thu Oct 05, 2017 8:48 am
I have BenefitWallet and I'm happy with it. It allows investments in the typical 3 fund portfolio with TSM being institutional and International and Bonds being Admiral class.

$2.90 a month flat fee for investing.
Same here, but I'm about 99% sure that BenefitWallet is only available through employer plans, meaning an individual investor cannot open an account there.

The downside to BenefitWallet is that in order to invest, you must maintain a $1,000 balance in the linked ultra-low-interest savings account. Depending on the terms of your specific HSA plan at your specific employer, you must keep a high minimum balance (can range between $3,000 and $5,000) in the ultra-low-interest savings account to avoid monthly low balance fees of $2 - $3+, depending on your own plan. So you have to choose between paying another ~$30 of annual fees for low balance, or paying a cash drag penalty to avoid the fees.

Rather than pay the cash-drag penalty, I keep the $1,000 minimum in the savings account and pay the low-balance fees, and invest the difference at a higher return; it's about a wash. This means that to use BenefitWallet, I'm paying $61.80 annually in fees ($2.90 * 12 for investing, plus $2.25 * 12 for low balance fees in the savings account), in addition to the standard fund expense ratios, which fortunately are very low because the only fund I use is Vanguard TSM institutional.

This makes BenefitWallet more expensive than some of the other options. I stick with BenefitWallet because it's offered through my employer.
Last edited by hoppy08520 on Sun Oct 08, 2017 7:23 am, edited 1 time in total.

gbounce
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Re: Health Savings Account recommendation

Post by gbounce » Sat Oct 07, 2017 1:18 pm

theplayer11 wrote:
Fri Oct 06, 2017 2:55 pm
had HSA Bank, but did not like having to keep $5k in cash to avoid the fees. Switched to Saturna..the cheapest option if you are trading 1 or 2 times a year.
It's only $3/mo if your cash balance is under $5k isn't it?

For other people using HSA Bank just invest all the money you can and eat the $3/mo fee. I'd rather have an extra 0.06 ER than keep $5k in cash.

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jhfenton
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Re: Health Savings Account recommendation

Post by jhfenton » Sat Oct 07, 2017 3:08 pm

For ease of setup, flexibility, low cost, and first-dollar investing, Lively seems now to be the new best choice at $2.50/month (period) to access a TD Ameritrade brokerage account with 100 commission-free ETFs. There are no other fees.

Saturna was previously the most attractive, but the inconvenience had kept me from pulling the trigger: the absurd paperwork to get started and the limitation of one (or two) transfers per year in order to make it cost-effective.

I opened an account with Lively last week and a transfer from my employer-sponsored HSA is in progress. (My employer HSA has no fee for cash investments, but charges $2/month and 20 bp to invest, with $2,000 minimum kept in cash.)

The only downside I see to Lively is the startup risk. There's a not-insignificant chance they don't succeed. But I see a similar risk that someone like Saturna would exit the HSA market.

Newone88
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Re: Health Savings Account recommendation

Post by Newone88 » Sat Oct 07, 2017 3:37 pm

I just decided on Saturna because it fit my needs the best. I wanted a linked brokerage account to have more fund options and I wanted to invest the entire amount and not have any cash requirement. I plan to only make 1-2 trades per year so that was not a limitation for me. I also did not need a debit card or checking account.

It was actually very easy to set up even though you have to send them a packet of forms. I also called them several times (probably 5-6 times) during the process to make sure I had all the correct paperwork and follow up after my account was created. Each time I called, it was literally 30 seconds of wait time until I was talking to a live person who could immediately help me.

theplayer11
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Re: Health Savings Account recommendation

Post by theplayer11 » Sat Oct 07, 2017 6:16 pm

gbounce wrote:
Sat Oct 07, 2017 1:18 pm
theplayer11 wrote:
Fri Oct 06, 2017 2:55 pm
had HSA Bank, but did not like having to keep $5k in cash to avoid the fees. Switched to Saturna..the cheapest option if you are trading 1 or 2 times a year.
It's only $3/mo if your cash balance is under $5k isn't it?

For other people using HSA Bank just invest all the money you can and eat the $3/mo fee. I'd rather have an extra 0.06 ER than keep $5k in cash.
plus $2.50/mth(I believe) for having brokerage account at TD. It was costing me $66/yr...too much for my liking

naghebe
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Re: Health Savings Account recommendation

Post by naghebe » Mon Oct 09, 2017 8:15 am

hoppy08520 wrote:
Sat Oct 07, 2017 9:01 am
naghebe wrote:
Thu Oct 05, 2017 8:48 am
I have BenefitWallet and I'm happy with it. It allows investments in the typical 3 fund portfolio with TSM being institutional and International and Bonds being Admiral class.

$2.90 a month flat fee for investing.
Same here, but I'm about 99% sure that BenefitWallet is only available through employer plans, meaning an individual investor cannot open an account there.

The downside to BenefitWallet is that in order to invest, you must maintain a $1,000 balance in the linked ultra-low-interest savings account. Depending on the terms of your specific HSA plan at your specific employer, you must keep a high minimum balance (can range between $3,000 and $5,000) in the ultra-low-interest savings account to avoid monthly low balance fees of $2 - $3+, depending on your own plan. So you have to choose between paying another ~$30 of annual fees for low balance, or paying a cash drag penalty to avoid the fees.

Rather than pay the cash-drag penalty, I keep the $1,000 minimum in the savings account and pay the low-balance fees, and invest the difference at a higher return; it's about a wash. This means that to use BenefitWallet, I'm paying $61.80 annually in fees ($2.90 * 12 for investing, plus $2.25 * 12 for low balance fees in the savings account), in addition to the standard fund expense ratios, which fortunately are very low because the only fund I use is Vanguard TSM institutional.

This makes BenefitWallet more expensive than some of the other options. I stick with BenefitWallet because it's offered through my employer.
You are indeed correct, I went back and reviewed the terms and I didn't calculate the monthly balance fee since it's paid by employer. As far the minimum cash balance needed before investing; I keep my annual deductible ($1500) as the balance then invest everything else. I'm also only in Vanguard TSM institutional.

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