HSA allocation

[Mountain skier]

Hi. What is your HSA allocation? I just had mine in cash until very recently and now is in Fidelity US Bond Index Fund.

I don't think I am too happy with this choice.

Hoping you can give me insights as I will learn from what your allocations are.

Thanks

 

[jimbee]

My HSA is 100% in Fidelity's zero total stock market. FZROX

I don't plan to use the money for a while.

 

[rodi]

Don't know if this is the correct choice - but it works for me.

I keep about 5% in cash - and use it for in office copays as needed.

The rest is in Vanguard Welllington - which was the best balanced fund offered.

If I need more $ to pay bills I just transfer and wait a few days before paying the medical bills. Knock wood - haven't had that experience last year or this year. (I've posted a lot about 2015-2018 maxing out my high deductible plans deductible and max oop with kids' sports injuries and a tumor on my son's jaw that required surgery.)

The funds available are dependent on your HSA administrator. I've got Health Savings Administrators... chosen mainly because of the availability of the vanguard funds and lowish annual service charges.

 

[FLSUnFIRE]

I keep 1 year max out of pocket in cash, rest in equities. I currently pay as I go building up the balance and keep my receipts if I ever need to reimburse myself to raise cash.

 

[cathy63]

My HSA is 100% in Fidelity's zero total stock market. FZROX

I don't plan to use the money for a while.

Same here.

 

[pb4uski]

I used to be in FZROX.

Mine is in SWAN but that my not be a good answer for everyone. I view SWAN as a quasi-equity substitute with less volatility. For those not familiar with SWAN, they invest 90% in mid-term Treasuries and 10% in 12-month SPY calls to get some equity participation. YMMV.

 

[Mulligan]

I own a bunch of preferred stocks and trade them and have for years. I dont consider it a health savings account. I consider it a tax free investing account. If a medical issue would arise I would pay out of pocket and stick the receipt in my envelope that has all my mickey mouse bills paid out of pocket. Maybe in 15 years I will use receipts and withdraw, or more likely use as a medicare Insurance payment slush fund.

 

[Clone]

I have 95% of my HSA in FBGRX (Blue Chip Growth Fund). It was a toss-up between that or FZROX. Over all of the investment accounts I try to maintain about a 50/50 between a growth fund and a market (S&P or Total Market) type fund. I watched FBNDX take a dip with the rest of the market, and that made me question what role it played in a portfolio. It has since recovered, as has the rest of the market.

 

[sergio]

100% TRowePrice New Horizons (Institutional Class)

 

[Mountain skier]

seems like moving HSA $ into equities and using as an investment vehicle is the smart choice

 

[Montecfo]

Mine is invested in individual growth stocks stocks. It has done extremely well. I wanted it to grow at least as fast as medical costs.

I have never tapped it and no longer have high deductible policy, so not currently adding.

I just have it on my "menu" of tax favored fund sources.

 

[sengsational]

My HSA funds are considered of Roth type. So tIRA, Roth, and after tax are the three liquid assets types. But my AA spans all three. So, for example, I might have equities in the HSA/Roth and want to pull funds from there while the equities are "low". On the surface, that seems like a problem, but I can "sell the equities to myself" by liquidating an appreciated position in tIRA, for instance (concurrently "selling low" and "buying low" is a wash). So cash comes out without changing the AA.

 

[RetireAge50]

100% IVV
If I need to withdraw at low stock value I buy IVV in another account.

 

[pb4uski]

Mine is invested in individual growth stocks stocks. It has done extremely well. I wanted it to grow at least as fast as medical costs.

I have never tapped it and no longer have high deductible policy, so not currently adding.

I just have it on my "menu" of tax favored fund sources.

I have been doing similar, and was keeping a tally with receipts, etc. of qualified medical spending since we opened the account in 2010. I'm wary that DW or DD would know that money can be taken out tax-free if something were to happen to me so I recently did my first ever withdrawals for all of our documented quaified medical costs from 2010 to 2019, inclusive. I'll probably do an annyal withdrawal for the prior year qualified medical expenses from now on.

I also don't want to leave too much of a balance as it would be taxable income to our kids in the year that they receive it. We have pretty close to a year's worth of nursing home care in the now and the balances should continue to grow as annual groth should exceed our Medicare Part B premiums and any qualifying medical expenses.

 

[geeky_grrl]

100% in ITOT. I've never spent any of my HSA but save receipts so I can eventually pull money out tax free.

 

[Animorph]

Our HSA's are included in our Roth AA, 85/15. Though the actual funds in the HSA may not match that AA, when added to the Roth accounts the total matches. The HSA's are treated as Roth accounts, but will be the first "Roth" funds withdrawn, to the extent our saved medical receipts allowed.

 

[Cobra9777]

Mine's at Fidelity and is 100% VTI (Vanguard Total US Stock ETF). This came up once before... I should probably move it to FZROX for the zero ER.

I'm still contributing and have never taken a distribution. I have a box full of receipts since 2008, which adds up to only about 25% of the HSA balance. Plan is to continue max contributions and collecting receipts. After 65, we'll start using it for premiums and other medical expenses.

With a box full of receipts, the HSA will function just like the Roth in our withdrawal plan. I treat the two exactly the same. If all goes according to plan, at 70, we'll have two pensions, two SS, and a big bucket of Roth/HSA.

 

[Mulligan]

Mine's at Fidelity and is 100% VTI (Vanguard Total US Stock ETF). This came up once before... I should probably move it to FZROX for the zero ER.

I'm still contributing and have never taken a distribution. I have a box full of receipts since 2008, which adds up to only about 25% of the HSA balance. Plan is to continue max contributions and collecting receipts. After 65, we'll start using it for premiums and other medical expenses.

With a box full of receipts, the HSA will function just like the Roth in our withdrawal plan. I treat the two exactly the same. If all goes according to plan, at 70, we'll have two pensions, two SS, and a big bucket of Roth/HSA.

Cobra, you think you have a decent HSA now. Not being political just stating a reality, you were one John McCain’s thumbs down vote from having HSA contributions doubled and insurance premiums being able to be used with HSA monies. That would have really got the receipts to add up quickly.

 

[audreyh1]

Now that we’re starting to tap into our HSAs, they are invested more conservatively. They had been invested fairly aggressively until switching to Fidelity last year. That was a good time to switch to the more conservative allocations.

DH will probably use his up over the next 5 years for Medicare until SS covers his Medicare premiums. Then in a little over 4 years we’ll start tapping into mine for same.

 

[pb4uski]

.... DH will probably use his up over the next 5 years for Medicare until SS covers his Medicare premiums. ...

My understanding is that even if you are having your Medicare Part B and D premiums withheld from your SS that you can still reimburse yourself for the cost of those through your HSA if you are 65 or older.

 

[audreyh1]

My understanding is that even if you are having your Medicare Part B and D premiums withheld from your SS that you can still reimburse yourself for the cost of those through your HSA if you are 65 or older.

Yes, you can. But we had planned to use up the HSAs at some point, and bridging the gap between Medicare and SS withholding seemed the most convenient for us, especially as it is super easy to document with annual Medicare statements. Plus once on Medicare, out of pocket Medical expenses drop considerably except for dental. Then we don’t have to worry about the record keeping and tax forms when we’re much older. And we can get rid of all those years of receipts we saved for just in case!

I’m sure it also depends on the amounts. If we had $100K or so, then investing most of it for LTC might have been our choice. As it happens, the few years we were HSA eligible and invested is close to covering our target.

 

[Cobra9777]

Cobra, you think you have a decent HSA now. Not being political just stating a reality, you were one John McCain’s thumbs down vote from having HSA contributions doubled and insurance premiums being able to be used with HSA monies. That would have really got the receipts to add up quickly.

Agree. Would have been nice, although not sure people like me were the "intended beneficiaries." Funny how that works...

 

[Mulligan]

Agree. Would have been nice, although not sure people like me were the "intended beneficiaries." Funny how that works...

Im used to it Cobra. I get a curveball thrown in the dirt every time a benefit comes along. Whether it be health care subsidies, no HSA increase, or even Corona aid relief. Heck I have millionaire retiree friends getting Corona money and fully employed friends. Even my Dad bless his heart who died in 2018, got a check too. Everybody but me. Its a burden I must bare alone, lol.

 

[audreyh1]

Im used to it Cobra. I get a curveball thrown in the dirt every time a benefit comes along. Whether it be health care subsidies, no HSA increase, or even Corona aid relief. Heck I have millionaire retiree friends getting Corona money and fully employed friends. Even my Dad bless his heart who died in 2018, got a check too. Everybody but me. Its a burden I must bare alone, lol.

You are not alone! lol.

 

[pb4uski]

.... Even my Dad bless his heart who died in 2018, got a check too. ...

I know three widows whose spouses died in 2019 and received stimulus payments of $2,400.... one was pretty upset when I pointed out to the that they would be expected to return 1/2 of it to the IRS.