Announcement

Collapse
No announcement yet.

Hsa

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Hsa

    HSA what would you do?

    Minimum threshold to invest is $2000. There is a $2 monthly fee if the HSA is under $3000. Invested funds to not count towards the 2k or 3k minimum. Do I invest the the $1000 or leave it in the interest bearing part to save the monthly fee? Interest bearing part pays crap for interest.

    Side note my HSA will be a savings account which will not be used until retirement. All excess funds will be in the market.

    #2
    In this case, look at it in terms of real dollars. $24/yr saved from the sidelining of $3k. Regardless of which way you go, it's small beans. This is not a mathematical question, but an emotional one. So I'd argue that you make an emotional decision. Do what feels right. If the fee really bothers you, then let the money sit. If you can't stomach letting the money sit idle, accept the fee. Either way, you'll be fine. The fact that you're even evaluating this carefully indicates that you're on the right track, and I'm confident that you'll be successful.

    For what it's worth, I'd park the money to save the fee, and move on with my life.
    "Praestantia per minutus" ... "Acta non verba"

    Comment


      #3
      Are you saying that if you have $3,000 in your HSA and choose to invest it, they'll hit you with a $2/month charge and the only way to avoid the charge is to keep the money in an account paying essentially nothing? If so what a lousy plan.

      That said, $24/year on $3,000 is 0.8%. That's a lot but that $24 is fixed (unless they change it) so the percentage that fee represents will steadily decrease as your HSA balance increases. I'd go ahead and invest. Even a modest return of 4 or 5% will more than offset the 0.8% fee you're paying.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

      Comment


        #4
        I have to leave $2000 un-invested no matter what If I leave 3000 un-invested I am not charged the $2 monthly fee.

        Comment


          #5
          Originally posted by Atretes1 View Post
          I have to leave $2000 un-invested no matter what If I leave 3000 un-invested I am not charged the $2 monthly fee.
          Are you spending the majority of your contributions throughout the year? If so, you may want to hold off on investing.

          I understand the triple tax advantages with HSA, but I've always viewed HSA as medical expenses first, and investments second. So like others have said, its really your call on how comfortable you are with spending $24 per year in fees.

          For the first few years, I just kept saving my amount, as I was paranoid of some medical surprise. I only started recently maxing and investing in the last 14 months when I had about 7000 to work with . My HSA just changed services, and I need to keep a minimum of 1000 in the account (I keep 1500-2000 to cover the deductible or for an ER surprise), before I invest the remaining amount (no fees that I'm aware of).

          Last edited by cypher1; 02-15-2020, 06:48 AM.
          "I'd buy that for a dollar!"

          Comment


            #6
            Originally posted by Atretes1 View Post
            I have to leave $2000 un-invested no matter what If I leave 3000 un-invested I am not charged the $2 monthly fee.
            That sucks. No, I wouldn't pay $2/month to invest $1,000. That's a 2.4% fee - not worth it. I'd wait until you build up a larger balance so that the fee takes a smaller cut.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment


              #7
              Do you have the option of looking for a different HSA?
              Are you able to contribute more to the HSA this year?
              Do you plan to continue contributing to this HSA in the future?

              Comment


                #8
                Originally posted by cypher1 View Post

                Are you spending the majority of your contributions throughout the year? If so, you may want to hold off on investing.

                I understand the triple tax advantages with HSA, but I've always viewed HSA as medical expenses first, and investments second. So like others have said, its really your call on how comfortable you are with spending $24 per year in fees.

                For the first few years, I just kept saving my amount, as I was paranoid of some medical surprise. I only started recently maxing and investing in the last 14 months when I had about 7000 to work with . My HSA just changed services, and I need to keep a minimum of 1000 in the account (I keep 1500-2000 to cover the deductible or for an ER surprise), before I invest the remaining amount (no fees that I'm aware of).
                I am going to max out my HSA every year. I am not going to spend it at all. If i have medical cost through out the year which are low anyway I will cash flow them. My HSA will be used in 12 years at 55 when I retire early for health insurance premiums probably.


                Originally posted by scfr View Post
                Do you have the option of looking for a different HSA?
                Are you able to contribute more to the HSA this year?
                Do you plan to continue contributing to this HSA in the future?
                This HSA is from my job I do not believe I have a choice if I want the tax savings from my paycheck. I plan on maxing it out every year and not using it until retirement.
                Last edited by Atretes1; 02-15-2020, 04:31 PM.

                Comment


                  #9
                  When I invest the funds I can choose Vanguard funds however, the investment account has a Management fee of 0.0300% of your average daily investment balance, not to exceed $10.00 in any given month. I am not sure how that rates with all the others.

                  Comment

                  Working...
                  X