Hey Jeremy, I just opened up a Fidelity HSA. I’m transferring my old workplace HSA via Optum bank to Fidelity. It’s not that much money, less than $2500. I was thinking of doing a total stock market index (similar to VTSAX) FSKAX or FZROZ. Do you think I should diversify a bit and do a US bond index fund like FXNAX? I’m currently 48 and thinking more aggressive like 80% stocks/20% bond or just go 100% stocks. Appreciate any input, thank you #GoBlue
Yeah, for just $2,500 in an HSA getting the exact asset allocation right isn’t the biggest deal. I’d probably throw it all in FZROX or maybe a target date index fund like FIPFX which will give you your international and bond portions automatically. If you want to be more aggressive (higher proportion stocks) just pick a later year TDIF. :).
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Thx for the FZROX recommendation- I will do that (I currently own the FXAIX for my Fidelity ROTH IRA (.02%)). Some FI/RE folks were wondering why FZROX has zero fees - probably they want to lure customers in & as the open other accounts/need services, etc.
Another question:
I currently have a workplace HSA w/ Sterling Bank. They have a brokerage partnership w/ TD Ameritrade. What’s good about Sterling (vs. Optum bank- my previous employer’s) is that a minimum cash balance is only $20 vs. $2000 at Optum. Sterling charges $3/month in fees.
So, for ease of use and a little less paperwork since my HSA contributions will be automatically calculated on my W-2, should I just go thru TDA?
Or do I do a transfer of assets over to my newly opened Fidelity HSA (no fees, etc.). Also Sterling bank will charge an annual fee of $16/year to have my TD account. TDA should have similar index funds w/ zero load fees that I can invest in.
I might have to do a transfer of assets like 4 times year?
Jeremy, if you were in this situation, just curious what you would do? Again, appreciate your time and insights!
Marc
#GoBlue
Ahh… yeah, I’m not a huge fan of Sterling and/or Ameritrade. Higher fees, pain in the ass interface (for Sterling at least) and less access to good index funds. BUT is it worth all the hassle to try to go against the vendors your company has set up for you? Probably not. I’d probably just stick with them until I switch companies, then transfer everything to Fidelity at once. It’s not worth the hours of time and headache to chase a few bucks in fees for a few years.
You’re awesome - thank you!
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