Joined Jan 2010
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Forum Thread
Investing funds in HSA account
July 6, 2023 at
02:05 PM
in
Finance
Thread Details
I have a decent amount of money built up in my HSA account with Optum financial. In talking to them they basically have 2 options as far as investment goes:
1. I can use Betterment (independent online investor firm) that will manage the funds on my behalf. In return they will charge me 0.5% on the total amount invested on an annual basis
2. I can invest on my own into Mutual funds. Looks like they have over 25 mutual funds from leading investment firms (I do not know much about mutual funds and not sure what goes into picking these.)
My question is 2-fold:
1. What are others doing with their HSA fund balance. Are you investing?
2. If I do decide to invest, I would like to go with betterment. Has anybody here heard about them? or Should I venture on my own?
I am planning on keeping emergency funds into my HSA account so that I have enough to cover medical expenses.
Thoughts?
1. I can use Betterment (independent online investor firm) that will manage the funds on my behalf. In return they will charge me 0.5% on the total amount invested on an annual basis
2. I can invest on my own into Mutual funds. Looks like they have over 25 mutual funds from leading investment firms (I do not know much about mutual funds and not sure what goes into picking these.)
My question is 2-fold:
1. What are others doing with their HSA fund balance. Are you investing?
2. If I do decide to invest, I would like to go with betterment. Has anybody here heard about them? or Should I venture on my own?
I am planning on keeping emergency funds into my HSA account so that I have enough to cover medical expenses.
Thoughts?
About the OP
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Payflex
That said I've been lazy and not chosen any kind of investment option. Not all HSA accounts offer investment possibilities (in fact that's basically why I chose the account I chose even though the fee is a bit higher). I consulted my FA about what to put the $$ in (about $60k now) and basically just neglected to do it. At least right now we're north of the account amount needed to clear the (flat) fee with regards to interest.
Obviously I'd prefer to actually invest some of it in a mutual fund, or something at some point.
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That said I've been lazy and not chosen any kind of investment option. Not all HSA accounts offer investment possibilities (in fact that's basically why I chose the account I chose even though the fee is a bit higher). I consulted my FA about what to put the $$ in (about $60k now) and basically just neglected to do it. At least right now we're north of the account amount needed to clear the (flat) fee with regards to interest.
I'm puzzled as to why you would use the HSA for non-medical costs? Why pay tax on those funds when you can use them tax-free to pay medical expenses?
Great question & yes you can:
https://www.bogleheads.