Retirement question -- do you have any advice on investing HSA funds? My husband's employer uses HSA bank, and we're at a savings level of about $8k, so I opened an account with their partner TD Ameritade and I can invest the HSA funds into stocks, funds, options, almost anything.Have you invested your HSA funds in the stock market and what have your experiences been like? HSA bank charges a $3/mo fee if their cash balance is less than $5k, but for $36/year, I might suck that up and invest more of our balance via Ameritrade.We should be able to pay our med expenses out of pocket and let this money grow for 5-10 years. Karen
I have held an HSA without investing for a few years. probably should do something with the funds - but health issues keep DW and I in suspense. We are never sure whatwill be covered and what will be questioned.
KarenThe answer to your question really depends on how quickly you may have to access these $$ to be used for some sort of medical emergency. If you have medical insurance with a maximum out-of-pocket of, say, $6,500, then you'd need $6,500 of liquidity above your 'normal' emergency cash fund (there to cover things like a broken car, inability to go to work due to a disability (continue paying the bills) or other unplanned financial demands).But let's say you have sufficient household liquidity to meet most 'common' unexpected loss such that you doubt you'd need to invade the HSA balance for 10 years. If so, I'd consider one of the Vanguard conservative allocation funds, such as the Wellington (VWELX)or Wellesley (VWINX) funds. Very low expense, conservative allocation and stellar long term returns. Now, Vanguard does not pay 'participation' fee sharing to those broker-dealers who offer multiple funds on their platforms and so you may have to pay a commission to buy shares or you could see about moving your HSA to Vanguard, although I'm not sure this is even possible...you'd have to check.A good place to discuss this and other options is the Morningstar 'Discuss' forum, which you can visit herehttps://socialize.morningstar.com/NewSocialize/forums/defaul...You have to register, but its free. Lots of very experienced investors there more than willing to offer their opinion.BruceM
FWIW, this is what we have done.We have kept one year's worth of deductible in cash/money market. Even though we can pay out of pocket, just a worst case scenario planning. Another reason was to keep minimum balance in the account to avoid fees (we are with HSA Bank as well).After that, I invested (via TD Ameritrade) in widows/orphans stocks that I was buying anyway in other accounts. However, I did wait until I had about $15k to distribute among 5 stocks (3 per). Wash, rinse, repeat. JLC
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