What Is The Best Way To Invest HSA Funds?

I just started to invest the funds in my HSA account - no longer the 96% of people using it as a clearing account. How do you recommend setting up the allocations? Do you recommend a similar target fund?

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[Poindexter]

I just created my first HSA last year, maxing out it every year going forward, and 100% into VOO. I am paying for the small medical expenses I have in cash and letting the HSA grow. If I have a big expense and need to use the funds, I can easily sell shares to free up that cash and it rarely takes more than a couple days. I'd have the funds well before any medical bill due dates.

But I am also 33, single, no kids and no major medical issues so I rarely need liquid cash for medical expenses.

[jeffotten]

Love, love, love our HSA's!!!
It took several years to get this point (and launching kids), but the wife and I now max both and never touch the invested funds. With the rising costs of healthcare I really wish the annual max was a lot higher.

[chemquests]

My wife and kids are covered on her awesome government employee health insurance and I stay in my high deductible plan just so I can invest in the HSA. It’s the best of both worlds.

[atl]

Have almost $32k in my HSA. I max it each year and invest in an S&P 500 index fund and a growth fund. Love this account and wish I had started earlier.

[todd]

We have our HSA at Fidelity and put 100% of it in FXAIX and never make a withdrawal.

[PA-Minuteman]

I transfer my HSA account from my employer to my HSA account with Fedelity. Then invest in the same funds as my Roth IRA.
I also keep my Max OOP in savings that way I don't have to withdraw/use from my HSA

[JonMcMaken]

Yeah I'm straight up in the messy middle with kids. I'm currently at FOO step 4/5. I'm blessed enough to capture my 5% employer match and max out my HSA, which uses Schwab. I have the deductible in a money market mutual fund earning ~5%. I do use it as expenses come up, hello 5k ER bill last month. But I have several thousand sitting in an s&p500. Until I'm able to max out my Roth IRA, currently not contributing, I plan to keep reimbursing myself from the HSA.

My logic being, eventually, the reimbursements can go into the Roth IRA and making that money work better with less restrictions on it. But I'll get there soon. I love the content guys.

[NewGuy]

Two points to remember:

1) HSA accounts cannot be transferred to anyone after death besides your spouse---not even kids.

2) Keep a digital copy of paper receipts for future reference since the ink CAN fade---Don't ask me how I know.

We are in our 40's and healthy and had an HSA since 2012. We also have Federal Health insurance so medical expenses are very low. We have iver $100k in our HSA invested in the S&P500.

[seegz]

I am experiencing a similar situation. My daughter is autistic and goes to multiple therapies per week. I recently joined a new company where they fund $4000 into a HSA account and wanted to know if I should max out the remaining. After watching this video my decision has been made.

Thanks guy and hope all is well! Miss chatting with you guys coming to Moes in McDonough every week!!

[SandraChirsm]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

[Ahennem]

This is pretty much what my wife and I do. Deductible in cash then its a 50/50 split between a conservative growth fund and a target date fund for when we turn 55 and might need more access to the money/early retirement

[seansingel]

I have a question about investing my HSA. I’m single and have enough saved to cover my maximum out-of-pocket medical expenses. My employer’s health insurance covers $1, 000 toward the annual HSA contribution and I contribute the rest every pay period. Brian’s book says to max out your HSA every year and invest in a target date retirement fund. My question is this: Since I’m contributing to my HSA every pay period, should I wait until I hit the maximum contribution at the end of the year and invest in a lump sum or dollar cost average for my contributions?

[BA-khfb]

My HSA investments are doing well. Should I sell them, keeping the $ in the account, to lock in profit? I know other investments I should hold, but here I don't know if I should sell then reinvest. None of the money would actually leave the HSA account, it would just be uninvested then reinvested. Hopefully this makes sense.

[kingchomp]

Does investing my HSA count toward my 25%?

[deannahenderson-martin]

Is there a benefit to investing in REITs or MLPs in the HSA account?

[erice]

does funding your HSA as an investment account get deprioritized in the FOO if you live in a state that taxes the interest and contributions? California, for example

[QuickPLFMA]

How do you actually do it? Everyone says to just do it but I cant find any resources on the actual details of doing it.

[lorenabell]

I am new to finding about an HSA and was confused on how to reinvest the contributions without getting penalized for making a purchase that is not considered a health purchase. Any help from anybody would be appreciated.

[dannelson]

What is meant by using it as a clearing account?

[chaselesser]

Yeah My fidelity has returned 4.37%, so I thought that was the fund return rate they put HSA money into.
I didn’t know I could actually push it to an index or mutual fund. Like Roth or 401k. Lol.