I started an HSA this year after opting out of my university HMO for a HDHP (never go to doctor and don't need to at this point).
I have to use PayFlex in order to get "free money" from my employer (~$600 a year). PayFlex is awful, they have limited funds available and the fees are sneaky. Once you start investing, they charge $2/month for an "investment account fee." Considering I can only invest the balance over $1000 in the account, it will take some time before the account principle is >> fees. With only $2000 in the account so far ($1000 investable), it seems like a bad idea to start investing, considering the fees would be about 2% of the account annually. That's more egregious than most actively managed mutual funds and that's just for the privilege of investing in a limited set of vanguard and schwab ETFs and some crappy mutual funds.
My strategy has so far been to not invest to avoid the fees and just use the account for dental/medical bills to take advantage of the immediate tax savings worth >30%. Any thoughts or advice on when to start investing with the account?
I have to use PayFlex in order to get "free money" from my employer (~$600 a year). PayFlex is awful, they have limited funds available and the fees are sneaky. Once you start investing, they charge $2/month for an "investment account fee." Considering I can only invest the balance over $1000 in the account, it will take some time before the account principle is >> fees. With only $2000 in the account so far ($1000 investable), it seems like a bad idea to start investing, considering the fees would be about 2% of the account annually. That's more egregious than most actively managed mutual funds and that's just for the privilege of investing in a limited set of vanguard and schwab ETFs and some crappy mutual funds.
My strategy has so far been to not invest to avoid the fees and just use the account for dental/medical bills to take advantage of the immediate tax savings worth >30%. Any thoughts or advice on when to start investing with the account?
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