New HSA provider Lively offers investments for $30/yr fee

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Muse94552
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by Muse94552 » Wed May 02, 2018 1:15 pm

I'm enjoying the boglehead discussion about Lively, and have confirmed I am eligible for a one-time transfer from IRA to HSA. But I hesitate- is anyone ELSE worried that Lively will disappear in a couple of years/be sold or actually fail? :oops:
I realize that Lively deposits are theoretically in SPIC or FDIC insured accounts, but only indirectly. Is my concern unwarranted?

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jhfenton
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by jhfenton » Wed May 02, 2018 1:35 pm

Muse94552 wrote:
Wed May 02, 2018 1:15 pm
I'm enjoying the boglehead discussion about Lively, and have confirmed I am eligible for a one-time transfer from IRA to HSA. But I hesitate- is anyone ELSE worried that Lively will disappear in a couple of years/be sold or actually fail? :oops:
I realize that Lively deposits are theoretically in SPIC or FDIC insured accounts, but only indirectly. Is my concern unwarranted?
It's possible that Lively will go under and that I'll have to move my account to another provider that I won't like as much. That would be an inconvenience, though, not a disaster. My investments are custodied at TD Ameritrade. Any cash in my Lively HSA account (usually zero) is custodied at Choice Financial bank. Lively going under would not put any of my assets at risk.

The worst part of Lively going under would be what it says about the viability of the business model of the low-cost HSA investment provider.

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indexfundfan
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by indexfundfan » Wed May 16, 2018 8:21 am

Just completed my latest money transfer from my bank to Lively/TDA. This time it took T+4 days for money to appear in TDA for trading, an improvement of one day from my last transfer.
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tenkuky
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by tenkuky » Wed May 16, 2018 10:45 am

indexfundfan wrote:
Wed May 16, 2018 8:21 am
Just completed my latest money transfer from my bank to Lively/TDA. This time it took T+4 days for money to appear in TDA for trading, an improvement of one day from my last transfer.
To confirm, did you do from an HSA trustee-to-trustee transfer? Or just an individual contribution to Lively?
I was planning (once I start) to do the employer linked HSA provider distribution to me, I deposit check and simultaneously ACH the same amount from checking to Lively. The Lively rep suggested it is seamless and both send me 5498 so I can handle my taxes. Plus, this way no fees vs. $25 for the transfer way.

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indexfundfan
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by indexfundfan » Wed May 16, 2018 11:53 am

tenkuky wrote:
Wed May 16, 2018 10:45 am
indexfundfan wrote:
Wed May 16, 2018 8:21 am
Just completed my latest money transfer from my bank to Lively/TDA. This time it took T+4 days for money to appear in TDA for trading, an improvement of one day from my last transfer.
To confirm, did you do from an HSA trustee-to-trustee transfer? Or just an individual contribution to Lively?
I was planning (once I start) to do the employer linked HSA provider distribution to me, I deposit check and simultaneously ACH the same amount from checking to Lively. The Lively rep suggested it is seamless and both send me 5498 so I can handle my taxes. Plus, this way no fees vs. $25 for the transfer way.
My example was a bank-to-TDA transfer. It is not a trustee-to-trustee direct transfer.

If you are going to deposit the check into your account and ACH the money to Lively, yes, you are going to see the same T+4 days as me before money can be invested at TDA.
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MJR84
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by MJR84 » Sun May 20, 2018 9:26 pm

jhfenton wrote:
Wed May 02, 2018 1:35 pm
Muse94552 wrote:
Wed May 02, 2018 1:15 pm
I'm enjoying the boglehead discussion about Lively, and have confirmed I am eligible for a one-time transfer from IRA to HSA. But I hesitate- is anyone ELSE worried that Lively will disappear in a couple of years/be sold or actually fail? :oops:
I realize that Lively deposits are theoretically in SPIC or FDIC insured accounts, but only indirectly. Is my concern unwarranted?
It's possible that Lively will go under and that I'll have to move my account to another provider that I won't like as much. That would be an inconvenience, though, not a disaster. My investments are custodied at TD Ameritrade. Any cash in my Lively HSA account (usually zero) is custodied at Choice Financial bank. Lively going under would not put any of my assets at risk.

The worst part of Lively going under would be what it says about the viability of the business model of the low-cost HSA investment provider.
Naive question: How do we know that, if Lively went out of business, investments made through the Fidelity platform would be safe? It makes perfect sense to me that they would, but (unlike FDIC protections) I don't really understand the mechanics of how a scenario like this would work.

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MossySF
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by MossySF » Mon May 21, 2018 1:00 am

MJR84 wrote:
Sun May 20, 2018 9:26 pm
Naive question: How do we know that, if Lively went out of business, investments made through the Fidelity platform would be safe? It makes perfect sense to me that they would, but (unlike FDIC protections) I don't really understand the mechanics of how a scenario like this would work.
The accounts are under your name so Lively is just an administrator. For them to access your accounts for their own purposes, they'd need to make some type of fraudulent activity -- say example making up some fake medical bills to then use your funds to pay themselves. SIPC exists for this purpose ... you are protected to up to $500K of assets ($250K cash) against fraud/improper comingling/etc in a brokerage account. (It does not protect you against value drops of the underlying assets.)

financeidiot
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by financeidiot » Mon May 21, 2018 8:21 am

Switched to Lively a few months ago. I've since lost my HSA eligibility (new employer has no HSA eligible plans) and they've been extremely helpful in navigating how much I need to withdraw and what the rules would be if I get my eligibility back later this year. Best and fastest service I've ever had from a financial institution. For contrast, my old HSA provider would just send me a link to the IRS website and tell me to figure it out.

captpete
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by captpete » Sat Jun 16, 2018 12:00 pm

Hello,

My wife's employer just started offering HSA HDHP and she is to choose her own HSA custodian. I set her up with Lively to find out that they do not receive direct deposits.

Does anyone on here use lively anyway, by taking the contribution to a savings account then contributing from there to the Lively account?

Thanks for any guidance on this

Pete

Muse94552
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by Muse94552 » Wed Jun 20, 2018 10:35 am

Apologies if this is the wrong place to ask this question: I read somewhere that California now taxes both the HSA contributions AND, earnings when HSA funds are withdrawn to pay qualified expenses. This changes the calculation for me somewhat as I was planning to make the 'once in a lifetime' trustee to trustee transfer from an IRA to fund the HSA. Can anyone confirm or deny the story on California tax on HSA? Our legislators sure make things complicated at every opportunity.

aristotelian
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Re: New HSA provider Lively offers investments for $30/yr fee

Post by aristotelian » Wed Jun 20, 2018 10:53 am

captpete wrote:
Sat Jun 16, 2018 12:00 pm
Hello,

My wife's employer just started offering HSA HDHP and she is to choose her own HSA custodian. I set her up with Lively to find out that they do not receive direct deposits.

Does anyone on here use lively anyway, by taking the contribution to a savings account then contributing from there to the Lively account?

Thanks for any guidance on this

Pete
I have direct deposit set up from my employer to Lively.

Before it was set up I did it manually from my employer custodian.

Muse94552
Posts: 4
Joined: Thu Apr 26, 2018 12:18 pm

Re: New HSA provider Lively offers investments for $30/yr fee

Post by Muse94552 » Wed Jun 20, 2018 12:32 pm

Just now created a Lively account. There IS a $25fee for 'early' account closure if closed within 12months listed in the Choice Bank Terms, approx page 15. Just wanted to give all a heads-up.
Upon application completion, a popup indicated account setup would take 1-2 days. I did not link existing bank account to this HSA, nor roll an existing HSA into this one.

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