How people are now investing HSA with Fidelity?

[JK]

I currently have a low 5 figure amount in my HSA and had previously been investing it with Lively (WCI previous #1 HSA custodian). I previously made one purchase per year of VTI through TDAmeritrade. However now that Fidelity is offering their own HSA (https://www.fidelity.com/go/hsa/why-hsa) which seems like the current best option out there, I was wondering how people were planning to invest. Currently the rest of my assets are at Vanguard (and nothing at Fidelity) but it seems silly to invest in VTI through Fidelity due to extra charges. I was still planning on doing one investment and purchase per year, all in one fund, to keep with my overall desired asset allocation. I was considering...

-FZROX (Fidelity ZERO Total Market index fund): there is some appeal to using a ZERO expense ratio

-FSKAX (Fidelity Total Market Index Fund): I saw WCI article about not obsessing over ER (https://www.whitecoatinvestor.com/expense-ratios/) so this option is very appealing due to low ER and higher volumes

-VTI: love Vanguard, it's what I have been investing in, but it seems silly to do this at Fidelity due to costs.

-Just keep things at Lively because costs aren't that bad in aggregate and they have a good interface (uploading receipts, easy to use, etc...). Not sure what Fidelity's interface will be to upload health receipts and help track expenses if anyone has been trying it already.

Thanks.

 

[treesrock]

Did you see the Lively update?

https://www.businesswire.com/news/home/20181220005189/en/Lively-Drops-Investment-Fees-Offers-No-Fee-Health

Still need to move? I would think it’s probably not worth it.

[JK]

treesrock wrote:

Did you see the Lively update?

https://www.businesswire.com/news/home/20181220005189/en/Lively-Drops-Investment-Fees-Offers-No-Fee-Health

Still need to move? I would think it’s probably not worth it.

Click to expand...

Wow, I didn't see that. That's great news. I love the competition. Thanks for sharing. Might not be worth switching now.

[HumbleInvestor]

I think this thread is still valid for those that do not have any other HSA account or already moved funds to Fidelity. What are some good options to invest in?

[Xeno]

Yes. I have a high 4-figure amount at HSA Bank sitting in cash (which has actually been performing relatively well, lately) and am looking for someplace cheap/free to move it to. Was gonna do Fido, but Lively seems like a good option. Maybe I should wait until HSA Bank drops their fees due to pressure from competition? Any recommendations?

[The White Coat Investor]

I wouldn't switch from Lively, but if HSA Bank/TD Ameritrade don't match soon, I'll probably go to Fidelity in a few weeks.

[Lithium]

Partially moved from Saturna to Fidelity.  Too cheap to pay their $75 closing fee.

[Hank]

I suppose you could leave a dollar with Saturna to avoid a $75 account closing fee!

[The White Coat Investor]

JK wrote:

I currently have a low 5 figure amount in my HSA and had previously been investing it with Lively (WCI previous #1 HSA custodian). I previously made one purchase per year of VTI through TDAmeritrade. However now that Fidelity is offering their own HSA (https://www.fidelity.com/go/hsa/why-hsa) which seems like the current best option out there, I was wondering how people were planning to invest. Currently the rest of my assets are at Vanguard (and nothing at Fidelity) but it seems silly to invest in VTI through Fidelity due to extra charges. I was still planning on doing one investment and purchase per year, all in one fund, to keep with my overall desired asset allocation. I was considering…

-FZROX (Fidelity ZERO Total Market index fund): there is some appeal to using a ZERO expense ratio

-FSKAX (Fidelity Total Market Index Fund): I saw WCI article about not obsessing over ER (https://www.whitecoatinvestor.com/expense-ratios/) so this option is very appealing due to low ER and higher volumes

-VTI: love Vanguard, it’s what I have been investing in, but it seems silly to do this at Fidelity due to costs.

-Just keep things at Lively because costs aren’t that bad in aggregate and they have a good interface (uploading receipts, easy to use, etc…). Not sure what Fidelity’s interface will be to upload health receipts and help track expenses if anyone has been trying it already.

Thanks.

 

Click to expand...

I went with the FZROX over FSKAX simply because the return in the last 3 months was 5 basis points better. There is really little difference. I'm rolling some VTI in kind in there so maybe I'll hold that for a while.

[Lithium]

Hank wrote:

I
Suppose you could leave a dollar with Saturna to avoid a $75 account closing fee!

Click to expand...

I posted in another thread that it looks like their closing fee was cut to $35.

But I thought this through, and even if you are willing to tolerate the hassle of keeping a Saturna account open, there is no foolproof way to stop them from nickel and diming you.  The problem with your suggestion is that you'll get charged $12.50 a year in inactivity fees.  I thought I could outsmart them by keeping $1 in a NTF fund and exchange it every year, but it turns out that those funds have a minimum, so that doesn't work either.

I have all of my money there in FXNAX.  Most likely I will sell it and eat the $25 transaction charge, then take a distribution and send it to Fidelity via indirect rollover.  I just can't do that until November because that is only allowed once every 12 months.  At least then I'll be done with it.

I realize this is a bit of a tempest in a teapot, but that is how I plan to break up with my HSA custodian.