Best Index Fund for HSA

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LIGuy82
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Best Index Fund for HSA

Post by LIGuy82 » Sun Jun 17, 2018 8:15 pm

My spouse and I will switch insurance carriers this September, and will go to an HSA. As far as I can tell, I can max out our contributions for 2018 at $6,850. Once the funds are in the HSA, I can invest them with TD Ameritrade. I was thinking of putting all our contributions into SPDRA Total Stock Market (SPTM 0.03% ER). I want this to be entirely in equities, as it is part of my long-term retirement plan. Is there anything wrong with the SPDRA that I should know about?

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David Jay
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Re: Best Index Fund for HSA

Post by David Jay » Sun Jun 17, 2018 9:36 pm

Low ER, Total Stock fund. What’s not to like (as you have determined that a 100% equity allocation is appropriate for your HSA).
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grabiner
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Re: Best Index Fund for HSA

Post by grabiner » Sun Jun 17, 2018 9:52 pm

The limit for 2018 was raised back to $6900.

There is nothing wrong with having just one fund in your HSA. Since your HSA, IRA, and 401(k) are all being invested for expenses in retirement, what matters is the overall allocation across all three. Since you have a low-cost investment available which is part of an appropriate portfolio, this is a good choice,
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deltaneutral83
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Re: Best Index Fund for HSA

Post by deltaneutral83 » Mon Jun 18, 2018 8:48 am

LIGuy82 wrote:
Sun Jun 17, 2018 8:15 pm
My spouse and I will switch insurance carriers this September, and will go to an HSA. As far as I can tell, I can max out our contributions for 2018 at $6,850. Once the funds are in the HSA, I can invest them with TD Ameritrade. I was thinking of putting all our contributions into SPDRA Total Stock Market (SPTM 0.03% ER). I want this to be entirely in equities, as it is part of my long-term retirement plan. Is there anything wrong with the SPDRA that I should know about?
This is exactly what I do (SPTM) and I use Lively.

bloom2708
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Re: Best Index Fund for HSA

Post by bloom2708 » Mon Jun 18, 2018 9:23 am

I use a low cost, target date fund that matches my overall mix of stocks and bonds in our HSA. 2035 is our current pick as it matches our desired allocation for all our investments.

With a starting out balance, 100% Total US is fine. If your HSA balance grows (hopefully), you may not want to see it drop 30-40%.

The 3 fund would work great as well. Total US + Total International + Total US Bond.
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