Lake Michigan CU HSA - New investment options

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tbradnc
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Joined: Wed Apr 02, 2008 8:30 am

Lake Michigan CU HSA - New investment options

Post by tbradnc » Sat Jan 06, 2018 8:48 am

Looks like Lake Michigan Credit Union is adding investment options to their HSA product. Till now their HSA product was free and paid 1% when balance was $5k or more (.5% if under $5k).

(edited to add) Link about HSA investment platform here: https://lmcu.org/banking/hsa.aspx

Now they've added mutual funds at what appears to be a flat rate of $30 per year. If you have a LMCU login you can read more here: https://onlb.lmcu.org/Transfers/HSADisclosure.

Here is a list of available funds anyone can view: https://hsainvestments.com/fundperformance/?p=LMC

Fee info from disclousre:

I. Annual HSA Investments Service Fee for the HSA Investments Account. The self-directed HSA Investments Account includes a variety of mutual funds selected for the Lake Michigan Credit Union as custodian, by Devenir Investment Advisors, LLC, (Devenir) a registered investment adviser. The HSA Investments Account is available when your Base Balance exceeds a ($1000.00) threshold amount established by The Lake Michigan Credit Union. When you activate your HSA Investments Account, you pay an annual Service Fee on investment account balances of ($30.00) annually, deducted from your investment account at account opening and annually on your anniversary month of account opening thereafter.

a. Purpose of annual HSA Investments Account service fee. The annual service fee is used to pay:
b. Matrix Settlement and Clearing Services (Matrix) for services it provides in connection with the trading the investment options on behalf of the custodian.
c. Devenir Recordkeeping for investment recordkeeping services it provides in connection with the investment options.
d. Devenir Investment Advisors for investment advisory services it provides in connection with the HSA Investment Program and the investment options available under it.
e. Change in annual HSA Investment Account service fee. Matrix Settlement and Clearing, Devenir Recordkeeping and Devenir Investment Advisors reserve the right to amend their fee schedules from time to time. Changes in any of these fees may cause a change in the annual HSA Investment Account service fees. If the annual HSA Investment Account service fees change, a notice of the change in fees will be posted on the Lake Michigan Credit Union website. If you continue to maintain an investment account balance after an increase in the annual HSA Investment Account service fee, you consent to the deduction of the new annual HSA Investment Account service fee.

II. Payments to Service Providers. The Lake Michigan Credit Union will pay Devenir for its services as the investment adviser to the Lake Michigan Credit Union in connection with the HSA Investments.

III. Mutual Fund Fees and Expenses. The available mutual Funds may also charge fees and expenses, including 12b-1 fees, as described in each fund’s prospectus. All applicable 12b-1 fees will be paid directly to Devenir as the broker dealer of record and any applicable Sub-T/A fees will be paid directly to the Recordkeeper for recordkeeping services. Some may also impose exchange fees and/or redemption fees. This information is included in the fund’s prospectus, and you should carefully read it to learn about any such charges or expenses.

IV. Voluntary Liquidation Fees. As set forth in more detail below, there may be several situations in which you wish to liquidate one or more of your HSA Investments. If you choose to liquidate one or more of your HSA investments that charges a redemption fee, that fee will apply according to the terms of the applicable prospectus.

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camillus
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Re: Lake Michigan CU HSA - New investment options

Post by camillus » Sun Jan 07, 2018 1:05 am

Some lovely admiral class Vanguard funds there. If there's no wrap fee, this could be a very good option.

Edit: I did some looking around on the LMCU FAQ and elsewhere, and it seems there are no wrap fees. Just a flat $30/mo for admiral class Vanguard funds.

Nothing to see here folks.

tbradnc
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Joined: Wed Apr 02, 2008 8:30 am

Re: Lake Michigan CU HSA - New investment options

Post by tbradnc » Sun Jan 07, 2018 5:58 am

$30 per year. Not $30 per month.

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camillus
Posts: 476
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Re: Lake Michigan CU HSA - New investment options

Post by camillus » Sun Jan 07, 2018 2:31 pm

tbradnc,

Sorry, that was a typo! I was meaning to write $30/yr. I was also meaning for my post to come off as sarcastic.

This new offering from LMCU seems to be among the best, if not THE best, HSA available.

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jhfenton
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Location: Ohio

Re: Lake Michigan CU HSA - New investment options

Post by jhfenton » Sun Jan 07, 2018 5:02 pm

camillus wrote:
Sun Jan 07, 2018 2:31 pm
tbradnc,

Sorry, that was a typo! I was meaning to write $30/yr. I was also meaning for my post to come off as sarcastic.

This new offering from LMCU seems to be among the best, if not THE best, HSA available.
Why? It seems inferior to Lively for investments. Lively charges $2.50 per month from a linked checking account, not from the HSA funds. There is no cash minimum. You get access to a TDAmeritrade brokerage account with a commission-free ETF list with some outstanding low-cost choices, not an oddly-curated list of random funds.

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