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Subject:  Re: HSA - retirement investment? Date:  10/20/2007  11:40 AM
Author:  ziggy29 Number:  4457 of 5260

>> I've had an HSA plan now for about 4 years. I decided to keep two years of deductibles in the original account to get a decent interest rate. I then funnel new contributions to Ameritrade via my HSA. There I can trade just about anything. I'm keeping it simple, IVV. <<

The teaser info we got in the mail yesterday tells me that we're basically going to have only two options (down from 4-5 last year) -- one a traditional PPO and one an HSA, both from Aetna. (We had been on BCBS through this year.) It remains to be seen what the difference in premium we'd have to pay between the two, but I'm guessing it's more than $200 a month (based on the differences in this year's plans), which would mean for the same cost I could get the HSA and put $2400 a year in it as well as the company contribution to it. So most likely I'll be going with the HSA option which will use Chase as the HSA administrator.

It looks like we will have the option to invest in a selection of JP Morgan and American Century funds with amounts over $2,000.

The first $2000 would be in a savings account paying about 3% (not too great, but I've certainly seen worse for HSA savings). But we could put amounts above that in a JP Morgan money market fund now paying about 4.7%. I'd probably put a year or two of deductible in the money market and then invest the rest in a mix of their index fund and a conservative growth fund.

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