Fidelity HSA - What to invest in?

[SunGuy]

Schd. 100%.

 

[SunGuy]

I talked to a Fidelity HSA rep yesterday about the Fidelity HSA core position and how it works with MM funds. He was unware that if the core is depleted, than medical expenses would automatically be paid by the MM fund. In my case SPRXX.

Has anyone verified this?

Just want to make sure you are not confused, I work at Fidelity but not in that department.

Your “core position” at Fidelity simply refers to where your uninvested cash goes inside your account. For example, if you have 75% in an S&P 500 index fund like VOO and 25% uninvested cash, that 25% cash will automatically go into whatever fund or vehicle you select as your “core position.”

Two generally safe rules of thumb for HSA investments

1 keep your annual deductible in cash for any emergency.

2 keep $1,000 in cash before investing so you have some stability and are able to use your HSA funds without selling investments.

 

[G-Man]

Just want to make sure you are not confused, I work at Fidelity but not in that department.

Your “core position” at Fidelity simply refers to where your uninvested cash goes inside your account. For example, if you have 75% in an S&P 500 index fund like VOO and 25% uninvested cash, that 25% cash will automatically go into whatever fund or vehicle you select as your “core position.”

Two generally safe rules of thumb for HSA investments

1 keep your annual deductible in cash for any emergency.

2 keep $1,000 in cash before investing so you have some stability and are able to use your HSA funds without selling investments.

Thanks for the advice. I will look into SCHD as well.

 

[audreyh1]

I talked to a Fidelity HSA rep yesterday about the Fidelity HSA core position and how it works with MM funds. He was unware that if the core is depleted, than medical expenses would automatically be paid by the MM fund. In my case SPRXX.

Has anyone verified this?

Our HSA core account is Fidelity Govt Cash Reserves MM fund FDRXX. At 4% now and rising that is good enough for funds to pay expected medical expenses this year, so we leave it there.

 

[G-Man]

Our HSA core account is Fidelity Govt Cash Reserves MM fund FDRXX. At 4% now and rising that is good enough for funds to pay expected medical expenses this year, so we leave it there.

Yep. That is my core position as well.

 

[freedomatlast]

Same here. When I opened the account that was the default.

 

[SunGuy]

Thanks for the advice. I will look into SCHD as well.

Yeah my personal HSA is 100% SCHD, we have our own plan with a 1% match (which actually may be increasing this year, need to double check), that I only fund for that, then contribute the rest up to the cap in my own.

 

[G-Man]

Yeah my personal HSA is 100% SCHD, we have our own plan with a 1% match (which actually may be increasing this year, need to double check), that I only fund for that, then contribute the rest up to the cap in my own.

My employer contributes $2K (wife and I), and I contribute the rest to max out my HSA each year.

 

[G-Man]

Schd. 100%.

Currently I have invested in FXIAX in my Roth IRA and soon to be HRA for long term growth.

Is SCHD a better option?

 

[Jerry1]

My HSA is now disconnected from my employer and nothing is going into it. I moved it to Fidelity. I look at it as similar to my ROTH in that I don’t think I’ll draw from it until later in life and maybe never. So, it’s in my most aggressive bucket of investments. 100% stock. I forget the fund, but it’s one of their total market funds.

If I thought I was going to need to draw from it, I’d position it differently.


ETA - Just looked it up. FSKAX

 

[qwerty3656]

Currently I have invested in FXIAX in my Roth IRA and soon to be HRA for long term growth.

Is SCHD a better option?

I don't think so - FXIAX is the whole stock market while SCHD invests strictly in dividend paying stocks. SCHD has had a good run recently, but your missing out on non-dividend paying growth stocks (like big tech companies).

 

[G-Man]

I don't think so - FXIAX is the whole stock market while SCHD invests strictly in dividend paying stocks. SCHD has had a good run recently, but your missing out on non-dividend paying growth stocks (like big tech companies).

FXIAX has done well in my ROTH IRA account since investing last year.

 

[SunGuy]

I don't think so - FXIAX is the whole stock market while SCHD invests strictly in dividend paying stocks. SCHD has had a good run recently, but your missing out on non-dividend paying growth stocks (like big tech companies).

I have a blend of index funds that cover those with my 401k, don't want to get too concentrated in the same stocks, plus my Roth IRA has over 50 stocks, and I have a few other regular accounts with even more stocks.

 

[jimbee]

I use FZROX for most of my HSA funds, aiming for long term growth. I keep a bit in FDRXX, the default core position, for any expected near term spending.