New HSA options

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Little Bird
Posts: 31
Joined: Wed Mar 22, 2017 10:49 pm
Location: Usa

New HSA options

Post by Little Bird »

I have an HSA this year for the first time and have finally been able to get into the website through Inspira's new stupid security walls.
I get a $500 company contri for the year. I max out my 401k and Roth and also contribute to a taxable account.
Minimum amount for investment is $1000 and this should be my balance in another 10 days after the next pay cheque.
Tbh the options looks pretty crap. I'm used to using low cost index funds but unfortunately all that are offered are Vanguard Admiral funds with a $3k minimum or a Schwab with a 0.25% ER.
So my two thoughts are, leave it all in cash until around end of August when my balance will tip over $3k and then go with Vanguard and the low ER; or start with Schwab and the higher ER and then change once I have the higher balance to use Vanguard.
I've attached the .pdf file for reference.
Thanks
https://drive.google.com/uc?id=154-Usmt ... -VZ78q-IVK
SwiftKey
Posts: 59
Joined: Fri Dec 15, 2023 6:46 am

Re: New HSA options

Post by SwiftKey »

I'm starting a new job in a month or so, and will have HSA with HealthEquity. My plan is to do periodic partial transfers out to Fidelity, where I have access to all the ETFs and most of the MMs I could want. I'm in CA, so I'm still trying to figure out exactly what I'll hold in it.
WeakOldGuy
Posts: 317
Joined: Mon Jan 01, 2024 10:42 pm

Re: New HSA options

Post by WeakOldGuy »

I think the HSA limits for 2024 are $4,150 for an individual? If you know that your employer is going to contribute $500 for the year, I would immediately contribute $3,650 and then invest in those Vanguard Admiral shares. If you have a family, then the limit is $8,300 I believe so you could fund it with $7,800.
On investing; I have lots of questions, many opinions, and little knowledge. A dangerous combination. Be warned.
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grabiner
Advisory Board
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Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: New HSA options

Post by grabiner »

SwiftKey wrote: Sun Feb 11, 2024 4:41 pm I'm starting a new job in a month or so, and will have HSA with HealthEquity. My plan is to do periodic partial transfers out to Fidelity, where I have access to all the ETFs and most of the MMs I could want. I'm in CA, so I'm still trying to figure out exactly what I'll hold in it.
If Treasury bonds or TIPS meet your investment needs, those are the best investments for an HSA in CA because of the state tax exemptions. Fidelity has very-low-cost Treasury and TIPS index mutual funds, or you can use ETFs. (If you don't want all your bonds to be Treasuries, you could hold Treasuries in your HSA and corporate bonds in your IRA/401(k).)
Wiki David Grabiner
SwiftKey
Posts: 59
Joined: Fri Dec 15, 2023 6:46 am

Re: New HSA options

Post by SwiftKey »

grabiner wrote: Mon Feb 12, 2024 7:26 pm If Treasury bonds or TIPS meet your investment needs, those are the best investments for an HSA in CA because of the state tax exemptions. Fidelity has very-low-cost Treasury and TIPS index mutual funds, or you can use ETFs. (If you don't want all your bonds to be Treasuries, you could hold Treasuries in your HSA and corporate bonds in your IRA/401(k).)
Thanks; I'm currently 100% equities, but I might treat this as a way to "ease into" fixed income, while simplifying tax time. It will be a relatively small fraction of my portfolio anyway.
the_wiki
Posts: 2716
Joined: Thu Jul 28, 2022 11:14 am

Re: New HSA options

Post by the_wiki »

Little Bird wrote: Sun Feb 11, 2024 4:06 pm I have an HSA this year for the first time and have finally been able to get into the website through Inspira's new stupid security walls.
I get a $500 company contri for the year. I max out my 401k and Roth and also contribute to a taxable account.
Minimum amount for investment is $1000 and this should be my balance in another 10 days after the next pay cheque.
Tbh the options looks pretty crap. I'm used to using low cost index funds but unfortunately all that are offered are Vanguard Admiral funds with a $3k minimum or a Schwab with a 0.25% ER.
So my two thoughts are, leave it all in cash until around end of August when my balance will tip over $3k and then go with Vanguard and the low ER; or start with Schwab and the higher ER and then change once I have the higher balance to use Vanguard.
I've attached the .pdf file for reference.
Thanks
https://drive.google.com/uc?id=154-Usmt ... -VZ78q-IVK
Your fee would be literally a few bucks a year on less than $3k on the Schwab fund. Just go with that for now.
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