HSA provider good for investment for individual account

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phrelo
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Joined: Wed Jun 13, 2018 3:13 pm

HSA provider good for investment for individual account

Post by phrelo »

I would like to ask recommendations on good HSA provider for investments (e.g. low/no fees and good investment options).


I did some research on my own. The Morningstar ranked HSA Authority as the best HSA provider for investment.( https://www.morningstar.com/articles/89 ... plans.html). HSA Authority still charges $36/per account annually for investment.

Just came across Fidelity HSA (https://www.fidelity.com/go/hsa/why-hsa) does not have any fee except fund's expense for investment.
According to Fidelity website, Fidelity HSA is also a brokerage account. Can someone who has used Fidelity HSA as individual account not through employer provide some feedbacks on investment options?


Can anyone tell whether the savings (spending part ) HSA are FDIC insured?


Thanks,



Patrick H.
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jpsfranks
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Re: HSA provider good for investment for individual account

Post by jpsfranks »

The individual HSA is a new product from Fidelity in the last few months and you can find much discussion on it in this thread.

To answer your question, the cash core settlement fund is FDIC insured. I only recently opened the account and transferred in my HSA money there myself, but so far I'd say if you like the Fidelity platform it's great. It behaves just like any other Fidelity account and doesn't have any recurring fees.
lstone19
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Re: HSA provider good for investment for individual account

Post by lstone19 »

phrelo wrote: Wed Jan 16, 2019 10:15 pm According to Fidelity website, Fidelity HSA is also a brokerage account. Can someone who has used Fidelity HSA as individual account not through employer provide some feedbacks on investment options?
It’s not “also” a brokerage account, it IS a brokerage account. Anything you can buy in any other Fidelity brokerage account (stocks, mutual funds, bonds, CDs) you can buy in the Fidelity HSA. The only difference is the core account is a low interest bank account rather than a money market fund. But you can put your money in a money market fund if you desire.
willyd123
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Re: HSA provider good for investment for individual account

Post by willyd123 »

Hello -

I have all of my HSA assets with Lively HSA and their broker is TD Ameritrade. So after you open a TDA account you can buy any stock, mutual fund, ETF, etc. via TDA.

Lively HSA charges zero fees (they reduced their fees from $2.50/month to $0 on January 1, 2019). Depending on what you are investing in via TDA, there may be commissions (they do offer "no commission" funds) but the commissions are very low ($6.95, I believe). I have been pleased with Lively HSA's service although admittedly, I have not asked them for much help.

Good luck!
Topic Author
phrelo
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Re: HSA provider good for investment for individual account

Post by phrelo »

Thanks All for sharing your experience! I have two follow-up questions.

1. Investment options: I took another look at HSA authority investment options (https://hsainvestments.com/fundperformance/?p=TBH). It offers passive Vanguard mutual funds and active mutual funds. The $36 annual fee is equivalent to 0.08% for a balance of $45,000 account. For Fidelity (no maintenance fee ), it offers commission-free iShares ETF, other no transition fee mutual funds, and stocks. Given this, will the Fidelity HSA better than HSA authority with regard to investment options? Are there any good investment recommendations for HSA account (The goal of HSA investment is to save for retirement (25 years later) and/or to save for long-term care/health care after retirement)?

2. Lump sum investing or Dollar cost average investing: For a HSA transfer from another provider to a new HSA provider with balance of $45,000+, given the current marketing condition, will it be better to 1) put all the transfer balance into (US equity, international equity, REIT) in a lump sum or 2)put majority of the balance in money market/short term bonds and dollar cost average to invest in (US equity, international equity, REIT)? Any suggestions will be greatly appreciated.

Many Thanks,

Patrick H.
Corgitodd
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Re: HSA provider good for investment for individual account

Post by Corgitodd »

Last October I opened an HSA with Old National Bank/HSA Authority. I put the funds into a VG Wellington admiral fund. I recently learned of Fidelity HSA and I am debating whether to transfer the HsA Authority over to Fidelity. My $36.00 fee I think wont be charged again until October. I think theres a $25.00 transfer fee. Ive been researching Fidelity HSA here and other forums to learn how its worked out fir peiple whove transfered. Havent seen anyone yet who has transferred from HSA Authority to Fidelty.
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thedeadlybishop
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Re: HSA provider good for investment for individual account

Post by thedeadlybishop »

Will give another vote for Lively. I have had nothing but positive interactions with them (cannot say the same for my old provider Health Equity).

TD AMeritrade basically gives you access to whatever you want to invest in which was the selling point for me.
lstone19
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Re: HSA provider good for investment for individual account

Post by lstone19 »

phrelo wrote: Thu Jan 17, 2019 12:30 pm For Fidelity (no maintenance fee ), it offers commission-free iShares ETF, other no transition fee mutual funds, and stocks.
Again, the Fidelity HSA is a full-fledged brokerage account. Anything you can buy in any other Fidelity brokerage account, you can buy in the Fidelity HSA. Unlike some HSA custodian who offer a limited set of investment options, you can invest in whatever you want (so when you say that Fidelity "offers" certain things, at least as I read it, implies a limited group of investment options). Note that the same is true of other custodians who make available a full-fledged brokerage account for the investment side (e.g. HSAbank and Lively who both make TDA brokerage accounts available for investment).
3-20Characters
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Re: HSA provider good for investment for individual account

Post by 3-20Characters »

Seems everyone is going over to fidelity. Me too. I moved from HSA Bank/TDA. I think it’s hard to beat Fidelity at this point. Nothing wrong with HSA bank/TDA but I had to hold 5k in cash or pay fees, transfer money between institutions, etc. How is having it all in one account at Fidelity and being able to invest every dime not better?

I’m just going to put it all in the total US zero fund now and even though I’m a vanguard guy, i find noting to complain about here. I’d say dump it all in. No DCA. That’s my opinion.
Last edited by 3-20Characters on Thu Jan 17, 2019 3:11 pm, edited 1 time in total.
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RickBoglehead
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Re: HSA provider good for investment for individual account

Post by RickBoglehead »

I just moved mine to Fidelity, and immediately invested with ease.

As to whether to DCA or lump sum invest, that's an often asked question and the answer most often given is that studies show that lump sum wins over DCA.

Fidelity is not FDIC insured except in the Core Account, but I don't give that a thought.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
veggivet
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Re: HSA provider good for investment for individual account

Post by veggivet »

I think Fidelity is setting the benchmark at this point. Others may follow suit with respect to eliminating monthly fees, but hard to match their no cost/no minimum mutual fund indexes.
If you watch your pennies, your dollars will take care of themselves.
pasadena
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Re: HSA provider good for investment for individual account

Post by pasadena »

I just opened one at Fidelity and am in the process of rolling over my previous employer's HSA at Optum to this new one in the next few days. My new employer offers an HSA at UMB that has rather crappy investment options, so I decided to open a personal one where I would (hopefully) be able to stay for years. I will keep some money (either up to my annual out-of-pocket max, or a year of contributions) in my UMB HSA and transfer excess funds to Fidelity once or twice a year after that.

I'm also hoping my employer will switch to Fidelity for their HSA since they're using them for almost everything else.
willyd123
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Re: HSA provider good for investment for individual account

Post by willyd123 »

Hello All -

I assume that Fidelity does not change any fees for their HSA product?
lstone19
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Re: HSA provider good for investment for individual account

Post by lstone19 »

Fidelity does not charge any HSA custodial fees. However, you will pay normal commissions on trades and any mutual funds you buy will have their expenses the same as any other Fidelity brokerage account.
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gasdoc
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Re: HSA provider good for investment for individual account

Post by gasdoc »

I am very interested in the Fidelity HSA. We currently have no assets invested at Fidelity (most are at Vanguard, with an HSA at Saturna). In an earlier Bogleheads thread, it was mentioned that there is a $12 per quarter fee at fidelity ($48 per year) for those that have less than $250K in assets at their institution. Can anyone speak to this? Thanks. Saturna currently charges us $24.99 per transaction, but we have only one transaction per year (investing our annual contribution).

gasdoc
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Re: HSA provider good for investment for individual account

Post by 3-20Characters »

Fidelity HSAs

What fees are associated with Fidelity HSAs?

There are no fees for opening a Fidelity personal HSA or for money movement.
If you choose to invest in mutual funds, expenses will still apply for those funds. There may also be commissions, interest charges, and other expenses related to transactions or holding specific investments, such as mutual funds. See www.fidelity.com/commissions for more information.

If you have a Fidelity HSA through your employer, your account may be charged an administrative fee of up to $12 per quarter ($48 annually), unless it’s paid by your employer. That administrative fee may be waved for households established before a certain date and meeting certain asset minimums at Fidelity.
https://www.fidelity.com/go/hsa/faqs
theplayer11
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Re: HSA provider good for investment for individual account

Post by theplayer11 »

gasdoc wrote: Thu Jan 17, 2019 9:09 pm I am very interested in the Fidelity HSA. We currently have no assets invested at Fidelity (most are at Vanguard, with an HSA at Saturna). In an earlier Bogleheads thread, it was mentioned that there is a $12 per quarter fee at fidelity ($48 per year) for those that have less than $250K in assets at their institution. Can anyone speak to this? Thanks. Saturna currently charges us $24.99 per transaction, but we have only one transaction per year (investing our annual contribution).

gasdoc
no fees.. I just switched from Saturna a few days ago. I had a linked bank account, requested full balance transfer to my bank(not Fidelity), took 2 days(no transfer out $75.00 fee). You then must write check with deposit slip to Fidelity.
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gasdoc
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Re: HSA provider good for investment for individual account

Post by gasdoc »

theplayer11 wrote: Thu Jan 17, 2019 9:31 pm
gasdoc wrote: Thu Jan 17, 2019 9:09 pm I am very interested in the Fidelity HSA. We currently have no assets invested at Fidelity (most are at Vanguard, with an HSA at Saturna). In an earlier Bogleheads thread, it was mentioned that there is a $12 per quarter fee at fidelity ($48 per year) for those that have less than $250K in assets at their institution. Can anyone speak to this? Thanks. Saturna currently charges us $24.99 per transaction, but we have only one transaction per year (investing our annual contribution).

gasdoc
no fees.. I just switched from Saturna a few days ago. I had a linked bank account, requested full balance transfer to my bank(not Fidelity), took 2 days(no transfer out $75.00 fee). You then must write check with deposit slip to Fidelity.

Great. I opened the account today, and I'll start the transfer tomorrow. The Fidelity website is so much better than that of Saturna, and the fees are less. Perfect. Thanks for the tip on avoiding the $75 transfer fee! I was thinking along those lines.

gasdoc
mdds
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Re: HSA provider good for investment for individual account

Post by mdds »

gasdoc wrote: Thu Jan 17, 2019 9:54 pm
theplayer11 wrote: Thu Jan 17, 2019 9:31 pm
gasdoc wrote: Thu Jan 17, 2019 9:09 pm I am very interested in the Fidelity HSA. We currently have no assets invested at Fidelity (most are at Vanguard, with an HSA at Saturna). In an earlier Bogleheads thread, it was mentioned that there is a $12 per quarter fee at fidelity ($48 per year) for those that have less than $250K in assets at their institution. Can anyone speak to this? Thanks. Saturna currently charges us $24.99 per transaction, but we have only one transaction per year (investing our annual contribution).

gasdoc
no fees.. I just switched from Saturna a few days ago. I had a linked bank account, requested full balance transfer to my bank(not Fidelity), took 2 days(no transfer out $75.00 fee). You then must write check with deposit slip to Fidelity.

Great. I opened the account today, and I'll start the transfer tomorrow. The Fidelity website is so much better than that of Saturna, and the fees are less. Perfect. Thanks for the tip on avoiding the $75 transfer fee! I was thinking along those lines.

gasdoc
I know this thread is a few months old now, but I am looking to move my Saturna HSA to Fidelity. Any tips on making it a smooth transition? It sounds like gasdoc and theplayer11 did this the indirect way where you request a distribution from Saturna then turn around and cut a check to Fidelity, correct? Were you able to avoid the $75 transfer fee this way? Did you open the Fidelity account first then initiate the distribution?
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