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HSA advice needed

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  • Avatar drB 
    Participant
    Status: Physician
    Posts: 2
    Joined: 02/09/2019
    Earnest refinancing bonus

    I am just starting out getting my financial life in order. Want to first start investing with my HSA money since for now I am not ready (knowledgeable enough) to fire my financial adviser. I have had and HSA account with HSA bank for a long time but never used it for investing. It seems that some of you are switching to Fidelity. What is the main reason you’re switching? Can I transfer funds I just deposited last month into my HSAbank account if I open a Fidelity HSA or do I need to wait until I make the next HSA contribution next year? ( I maxed out for this year already)

    #189528 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1137
    Joined: 02/15/2016

    I am just starting out getting my financial life in order. Want to first start investing with my HSA money since for now I am not ready (knowledgeable enough) to fire my financial adviser. I have had and HSA account with HSA bank for a long time but never used it for investing. It seems that some of you are switching to Fidelity. What is the main reason you’re switching? Can I transfer funds I just deposited last month into my HSAbank account if I open a Fidelity HSA or do I need to wait until I make the next HSA contribution next year? ( I maxed out for this year already)

    Click to expand…

    Fidelity doesn’t charge fees.  Lively is the other no-fee option.  If you know you don’t want to stay with HSA Bank (and I wouldn’t), there is no reason to delay switching.

    #189596 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1663
    Joined: 01/08/2016

    Agree with Lithium.  And, yeah, you should invest the HSA money.  I have mine in a total stock market index, but I am saving my HSA and instead cashflowing medical expenses while I can.

    #189601 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3355
    Joined: 01/14/2017

    Switch. Fidelity doesn’t mandate a minimum in a savings account so you can invest all of it. Access to good funds at no fees.

    Have your current trustee transfer the amount directly.

    #189610 Reply
    Avatar drB 
    Participant
    Status: Physician
    Posts: 2
    Joined: 02/09/2019

    Thank you for your replies. Much appreciated!

    #198866 Reply
    Avatar HealthyDoc 
    Participant
    Status: Physician
    Posts: 17
    Joined: 03/17/2019

    Thanks for this thread!  Quick follow-up question for my own clarity ..

    I put the max into HSA via HealthEquity.  For investing, they do charge .033% monthly on the average value invested charged to my cash balance.

    Is this the ‘fee’ that would be avoided by moving into a Fidelity fund?  And are there penalties to withdraw and switch?

    #199124 Reply
    Avatar GasFIRE 
    Participant
    Status: Physician
    Posts: 191
    Joined: 01/08/2018

    I put the max into HSA via HealthEquity.  For investing, they do charge .033% monthly on the average value invested charged to my cash balance.

    Is this the ‘fee’ that would be avoided by moving into a Fidelity fund?  And are there penalties to withdraw and switch?

    Click to expand…

    Yes, the fee would be avoided. Penalties to withdraw depends on the agreement with your current HSA. I switched mine and my wife’s from Optum and HSA Bank respectively and both charged a $25 break-up fee. No big surprise since that’s their last chance to make money from your account.

    #199175 Reply
    Liked by ENT Doc
    Avatar HealthyDoc 
    Participant
    Status: Physician
    Posts: 17
    Joined: 03/17/2019

    Thank you!! I’ve moved my HSA to Fidelity – feeling like I’m making good proactive money moves.  Appreciate the help from WCI and everyone!

    #199633 Reply

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