HSA Optum Investments

Investing
#1

Hello,

I have met the cash threshold amount to start investing my HSA. I have Optum Bank and have seen posts about not liking Optum Bank.
Optum Investment options:

  • Mutual Funds from a specific fund list (see screen shot below) Not a lot of good options, I guess the only one I’d do is the 2060 TDIF.
  • Betterment- Robo advisor with fees. I do not want to use this option because of the fees.
  • Potentially something called “Schwab self-directed brokerage account” although I’m not sure what this, I don’t see on Optum a way for me to access this. I will have to call and ask what this is. <<< If this is available, maybe this is what I should pick to get better flexibility instead of opening Fidelity?

Question: is there a need for me to open a different HSA? I’ve seen people use Fidelity instead, but I’m not sure in my scenario I need to do that.

Optum Fees:

  • I have no monthly maintenance fee, I guess my employer pays it?

  • $20.00 per Outbound Transfer or Rollover to another HSA Custodian. Meaning every Fidelity transfer would cost $20

  • $1.50 Print charge for paper statements. I do not pay this since mine are electronic

  • And any fees paid on the Mutual Fund, which the ones I looked at below are in between .030-.080%

Is there something I’m missing or should be on the look out for?? Sounds pretty straight forward, unless there is a reason to once a year send money to Fidelity to invest in Fidelity funds??

image
image813×1273 62 KB

#2

Hi @AriMoon! Thank you for the detailed question! I have heard some complaints about Optum in the past, but have no first hand experience.

If you have access to a Schwab self-directed brokerage account inside the HSA, it sounds like that should allow you to choose between the Schwab low cost index funds, which would be ideal.

If you haven’t already, you might want to try asking this question in the PFC Facebook Group. There are a lot of people there with opinions and some might be more familiar with Optum and can share their experience.

1 Like
#3

Thank you! I can def ask there as well.

After I posted this, I did reflect and realized the downside of Optum is when/if I leave my company. Optum Bank does not close out if I leave/get let go from my employer, just the fees the employer pays are transferred to me. In this case I would definitely want a free Fidelity HSA account with no fees.
Not to mention, if I buy Optum Mutual Funds, then if let go, transferring the funds out of Optum to Fidelity will probably cause tax events. Whereas if I just start with Fidelity and buy ETFs then I won’t trigger tax events on Capital Gains growth.

Hmmmmm some things to think about… I’d love to stay at my company but with corporate America these days never know what’s going to change or happen :slight_smile: Better to prepare for lay offs than not

Thanks!
Beth

#4

Any updates? I’m nearing the threshold for mine as well and its also through Optum. Also, I don’t have Facebook so I’m curious to know what people have suggested. Thanks in advance!