Details: Late 30s, married with many children. We use our HSA for all our health expenses, but we're running at a little over $6,000. Our family deductible is $3,000 annually, with a maximum out-of-pocket of $6,000. Our account is through Optum Bank for employer reasons. Currently, the interest rate is 0.15%.
Goals: Trying to improve the account earnings. I'm willing to take a little risk but not much. I'm NOT trying to use this as an extension of our retirement accounts.
Current thoughts: I'll be honest, I'm a little leery about investing HSA funds. I'd like to grow the funds if possible, but I'm not willing to take much risk. If I invest, I would probably choose a relatively small portion of the fund (say $1,000) that we could afford to lose. It seems like we have some solid, Boglehead-friendly options through Optum Bank. The solid options are provided below and will be familiar to many of the boards regular users. I'm thinking that based on my risk adverseness (at least for this account) perhaps a bond fund would be a good choice.
My questions: Should I currently invest my HSA funds? If so, does the amount I suggested make sense? In what should I invest the funds?
Thanks for your help!
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Schwab Target 2020 Index Fund I SWYLX Large Blend Schwab Target 2030 Index Fund I SWYEX Large Blend Schwab Target 2040 Index Fund I SWYGX Large Blend Schwab Target 2050 Index Fund I SWYMX Large Blend Schwab Target 2060 Index Fund I SWYNX Large Blend Vanguard Equity-Income - A VEIRX Large Cap Value Vanguard Extended Market Index Inst VIEIX Mid Cap Index Vanguard Inflation-Protected Inst VIPIX Inflation-protected Bond Vanguard Life Strategy-Growth VASGX Aggressive Allocation Vanguard LifeStrategy-Cons Growth VSCGX Conservative Allocation Vanguard LifeStrategy-Moderate Growth VSMGX Moderate Allocation Vanguard Mid Cap Index Inst VMCIX Mid Cap Blend Vanguard REIT Index Inst VGSNX Alternative Blend Vanguard S&P 500 Index - A VFIAX Indexed Vanguard Short-Term Federal Adm VSGDX Short Term Bond Vanguard Short-Term Invest Grade Inst VFSIX Short Term Bond Vanguard Small Cap Index Inst VSCIX Small Cap Index Vanguard Total Bond Mkt Port VBTIX Fixed Income Vanguard Total Stock Market Inst VITSX Large Cap Blend Vanguard Wellington - A VWENX Equity