Help with HSA fund selection

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div
Posts: 10
Joined: Wed Aug 08, 2018 6:52 pm

Help with HSA fund selection

Post by div » Wed Sep 19, 2018 4:38 pm

My employer uses HealthEquity for HSA. Here are the funds offered:

VIIIX - VANGUARD INSTITUTIONAL INDEX INSTL PL - 0.02%
VBMPX - VANGUARD TOTAL BOND MARKET IDX INSTLPLS - 0.03%
VIGIX - VANGUARD GROWTH INDEX INSTITUTIONAL - 0.04%
VEMPX - VANGUARD EXTENDED MARKET INDEX INSTLPLUS - 0.05%
VSMAX - VANGUARD SMALL CAP INDEX ADM - 0.05%
VVIAX - VANGUARD VALUE INDEX ADM - 0.05%
VTAPX - VANGUARD SHRT-TERM INFL-PROT SEC IDX ADM - 0.06%
VSIAX - VANGUARD SMALL CAP VALUE INDEX ADMIRAL - 0.07%
VTPSX - VANGUARD TOTAL INTL STOCK IDX INSTLPLS - 0.07%
VBIRX - VANGUARD SHORT-TERM BOND INDEX ADM - 0.07%
VMVAX - VANGUARD MID-CAP VALUE INDEX ADMIRAL - 0.07%
VIPIX - VANGUARD INFLATION-PROTECTED SECS I - 0.07%
VMIAX - VANGUARD MATERIALS INDEX ADMIRAL - 0.10%
VGSNX - VANGUARD REAL ESTATE INDEX INSTITUTIONAL - 0.10%
VEMIX - VANGUARD EMERGING MKTS STOCK IDX INSTL - 0.11%
VTABX - VANGUARD TOTAL INTL BD IDX ADMIRAL - 0.11%
and a bunch of target date funds with ERs 0.13-0.15%

My target allocation is 70% stocks (20-25% intl), 30% bonds. Which funds are recommended for my target?

jeam3131
Posts: 35
Joined: Sun Aug 26, 2018 2:48 pm

Re: Help with HSA fund selection

Post by jeam3131 » Wed Sep 19, 2018 8:15 pm

I have the same provider. I was thinking about 100% on VIIIX. Since HSA is a small amount, I was gonna go aggressive on this one since the HSA has so many tax advantages

annebert
Posts: 25
Joined: Fri Jul 20, 2018 5:39 pm

Re: Help with HSA fund selection

Post by annebert » Wed Sep 19, 2018 8:17 pm

Well, your target is overall. I assume that you have other investments, your investments within this particular bucket don't need to exactly meet your overall targets. Small Cap Value is a good place to put tax free funds, as is Total bond market index. I have the same HSA, and I have funds in the Real Estate Index. YMMV.

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mhc
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Location: NoCo

Re: Help with HSA fund selection

Post by mhc » Thu Sep 20, 2018 9:25 am

I only keep one fund in my HSA. There is no need to match your overall AA in every account. If you are using the HSA like an IRA, then one fund should be sufficient. VIIIX would be a good choice. VTPSX would also be good.

asif408
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Joined: Sun Mar 02, 2014 8:34 am
Location: Florida

Re: Help with HSA fund selection

Post by asif408 » Thu Sep 20, 2018 10:05 am

Based on your asset allocation, VTPSX, VIIIX, and VBMPX, with possibly the addition of VEMIX if you don't have emerging markets elsewhere, are all good choices.

Like others above, I keep just one or two funds in my HSA, no need to mirror asset allocation in each account unless you really want to or if you have a need to (like some for spending and some for saving), which you can read more about here: https://www.bogleheads.org/wiki/Asset_a ... e_accounts

div
Posts: 10
Joined: Wed Aug 08, 2018 6:52 pm

Re: Help with HSA fund selection

Post by div » Fri Sep 21, 2018 4:18 pm

Thanks for the responses. As a newbie, I didn't know that I don't have to mirror AA everywhere.

dkb140
Posts: 66
Joined: Mon May 21, 2018 3:30 pm

Re: Help with HSA fund selection

Post by dkb140 » Fri Sep 21, 2018 4:27 pm

If you're planning to use this as a retirement account & not touch it for XX years, I like throwing it all in VSIAX for max growth & putting your Bond/Intl allocations in another account, but I tilt towards Small Cap Value.

honduranhurricane
Posts: 99
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Location: boston, ma

Re: Help with HSA fund selection

Post by honduranhurricane » Fri Sep 21, 2018 7:20 pm

I have the same account, had it for 5 or 6 years at the family contribution level and never touched it (and always max it).

I use the Total mkt, small cap and mid cap indexes (I tilt) along with the short term bond. While not needed, I do keep it close to my over all allocation. Actually I do this with all my accounts (lucky for me, I have low cost index funds available across all).

It would be perfectly fine to be 100% in one of the indexes as prior posters have mentioned also.

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