stephenandrew
Recycles dryer sheets
- Joined
- May 5, 2007
- Messages
- 148
Hi-
Earlier this year, I enrolled in an HSA to manage my famiy's health insurance needs. I plan to invest the maximum I am allowed to ($5,800 per year for a family) this year, and hopefully max out future year contributions as well. The deductible on this plan is $3000 per year, and after that, I am basically responsible for covering 10% of all medcial charges--the insurance carrier picks up the rest. I do not plan to withdraw any funds from the HSA to cover current mdical expenses--I should be able to cover those out of my existing cash flow.
My HSA has a number of invetment options--none of which I am thrilled about. First, the management company charges a fixed fee of $2.50 fee per month to use the investment options. Second, the fee structure for the fund options are higher than what I accustomed to paying--e.g. .45% expense ratio for an S&P 500 Index fund, to 1.46% for a managed growth fund (4 stars from Morningstar).
I can leave the money in my HSA in the so-called "savings account" option where I get a return of 1.5%. I don't see myself needing this money for quite some time, so feel like my long term best interest would be to start investing this in an equity or balanced mutual fund, but the expenses kind of turn me off. My immediate reaction is to say I am not going to pay these fees--I'd rather keep it in the savings account than pay inflated fees. Long term, I am thinking this is short sighted. Any thoughts or advice?
Thank you.
Earlier this year, I enrolled in an HSA to manage my famiy's health insurance needs. I plan to invest the maximum I am allowed to ($5,800 per year for a family) this year, and hopefully max out future year contributions as well. The deductible on this plan is $3000 per year, and after that, I am basically responsible for covering 10% of all medcial charges--the insurance carrier picks up the rest. I do not plan to withdraw any funds from the HSA to cover current mdical expenses--I should be able to cover those out of my existing cash flow.
My HSA has a number of invetment options--none of which I am thrilled about. First, the management company charges a fixed fee of $2.50 fee per month to use the investment options. Second, the fee structure for the fund options are higher than what I accustomed to paying--e.g. .45% expense ratio for an S&P 500 Index fund, to 1.46% for a managed growth fund (4 stars from Morningstar).
I can leave the money in my HSA in the so-called "savings account" option where I get a return of 1.5%. I don't see myself needing this money for quite some time, so feel like my long term best interest would be to start investing this in an equity or balanced mutual fund, but the expenses kind of turn me off. My immediate reaction is to say I am not going to pay these fees--I'd rather keep it in the savings account than pay inflated fees. Long term, I am thinking this is short sighted. Any thoughts or advice?
Thank you.