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Two things - HSA and all at VG??
Old 07-05-2006, 08:09 AM   #1
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Two things - HSA and all at VG??

Today is DH's last day on the job, making us both RE's now at 52. Most all our planning objectives are done -- HDHP insurance is in place, income stream direct deposit is coming, etc. But just a few more activities to finish up -- and I'd like your help.....

1) Haven't found an HSA yet. Been shopping online and at institutions I use (for example Vanguard does not offer one, but say they just might in the future -- likewise my local bank Compass doesn't but should). Don't like the low interest rates and highish maint. fees I'm seeing. Interest rate improves for acct. balances >$10K, but it will take us into the third year before eligible contributions will allow us to accumulate that.

Can anyone recommend a good source for HSA??

2) We will have one last 401K to rollover, and it only makes sense for us to bring it into our Vanguard holdings. But I'm concerned that so much of our total nest egg is at Vanguard as it is. I have read some of your statements that you are not too worried having it "all" or "most" at one firm. In our case, Vanguard would hold a little more than 1/2 of our investable assets. Should I be concerned with this, and perhaps split this with another firm (Fidelity, for example) or just continue my faith and loyalty to VG and enjoy our Flagship status?? I've been very happy with their service all these years.

Any thoughts!!
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Re: Two things - HSA and all at VG??
Old 07-05-2006, 09:45 AM   #2
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Re: Two things - HSA and all at VG??

Trombone Al and Peter76 have posted a lot about HSA custodians.* I think Al ended up going with www.hsaadministrators.com, which holds their funds in
Vanguard.

I wouldn't worry too much about having most of your assets at Vanguard.* Vanguard's ownership structure provides for the ownership of mutual funds by the individual fund investers.* If Vanguard the managment company went under, the mutual fund would still exist.* If one fund went under, the other funds would still exist.
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Re: Two things - HSA and all at VG??
Old 07-05-2006, 11:15 AM   #3
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Re: Two things - HSA and all at VG??

I have an HSA at Cattle Bank in Nebraska. Their rates are pretty good.

http://cattlebank.com/rates.asp

Variable 4.72% 4.82%


I'm planning an HSA at US Bank as well. They offer Fidelity index funds when the $2500 minumum is reached. Before that minimum, though, they'll nickel and dime ya to $0. The interest rate on cash sucks too.
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Re: Two things - HSA and all at VG??
Old 07-05-2006, 11:36 AM   #4
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Re: Two things - HSA and all at VG??

Click here for the thread on my HSA research.* It may be out of date now.

HSAadministrators has worked out fine.* Good customer service, though I haven't needed any.* I've already contributed the max for 2005 and 2006, and my money is in the Vanguard Total International Stock fund.* The only drawback is the .5% extra annual expense plus $35 annual fee. That is, I'm currently spending about $55 more than I would if the money were directly in Vanguard, but I get tax deferral (or total avoidance if I spend it on health care) in exchange.
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Re: Two things - HSA and all at VG??
Old 07-30-2006, 12:19 PM   #5
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Re: Two things - HSA and all at VG??

Sorry for taking so long to reply....I had been down in the dumps for a while due to a "lack of financial negotiations" at work, and wasn't in the mood to think about ER.

I haven't researched the current players/offers with HSAs in a while (the banks that offer it - as well as the deals/investment options - do change somewhat often).....but I have been with HSA Bank. Their setup is as follows:

No minimum Balance in checking account
$2.25 monthly fee
$20 one-time setup fee

Interest rates on cash balances: (see www.hsabank.com)
Stock/MF trading available through Ameritrade. HOWEVER - it's through Ameritrade's "corporate" division, so their commissions are $20 each, not $9.99. However, you're still free to trade whatever Ameritrade trades, which is a good deal, and even at $20, it's not bad.

I keep a bareass minimum of $40 cash in my HSA Checking account,and keep the remainder in my Ameritrade account (you just call HSA Bank and tell them how much you want transfered to Ameritrade). There, I invest mainly in preferred stocks and REIT ETFs. So, even though I pay $2.25/month, my accumulated balance of $8,000 (and growing) will help reduce that down to a very small percentage of assets (and beat the 3% on their savings account).
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Re: Two things - HSA and all at VG??
Old 08-22-2006, 12:06 AM   #6
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Re: Two things - HSA and all at VG??

I am thinking of going with patelco... they are offering 5.12% interest right now, although I'm guessing that's just a temporary promotion. Most importantly it looks like they only charge $1/mo maintenance, and it's waived the first year. $20 account setup fee.

I figure this is a good option for my first year or two while I build up an account balance... just $20 total feesfor the first year and $36 for the second year as far as I can tell. Later I can roll it over into one of the plans with more investment choices once I have enough of a balance not to be nickel and dimed to death. And by that time maybe vanguard will have a plan.

http://www.patelco.org/rates/hsa_rates.aspx
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Re: Two things - HSA and all at VG??
Old 08-22-2006, 12:25 AM   #7
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Re: Two things - HSA and all at VG??

It looks like Patelco had the same 5.12% rate back in January when TromboneAl did his survey:

http://early-retirement.org/forums/i...p?topic=5531.0

So it might last a bit longer.
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Re: Two things - HSA and all at VG??
Old 08-23-2006, 08:26 PM   #8
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Re: Two things - HSA and all at VG??

Opened the HSA at Patelco today (in person since I live near a branch in CA). It took three trips to the CU because they were busy, but got it all sorted out. They didn't charge me the $20 account opening fee (so they say), just $5 to go in the savings account and about $10 for a box of checks.

Without my asking they opened a free no minimum checking account which I can access via ATM. I'm sure the employees get a bonus for opening new accounts.
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