Have a healthy amount ~$40k in what was a My Benefit Wallet HSA that recently transferred in kind to a Health Equity HSA as part of Health Equity acquisition of MBW.
My company is no longer using Health Equity as HSA and all new payroll contributions will be to a new Fidelity HSA that my company will use going forward.
Here is the dilemma. We are being given a one-time offer to have all our Health Equity HSA transfer to the new Fidelity HSA without fees or penalties. Here is the catch, we have to liquidate all Health Equity HSA investments to cash by August 1, and then there will be a 3 week period where the funds are out of the market until Fidelity receives, and then around August 20 we'd have access to invest the proceeds in the Fidelity HSA.
Right now, the Health Equity funds are in the following Vanguard Index funds: 40% Vanguard Total Stock Market, 20% Vanguard Total International, 20% Vanguard Small Cap, 20% Vanguard Total Bond. Health Equity does not offer those funds, but they transferred in kind from My Benefit Wallet.
If I stay with Health Equity for the existing funds, I'd have to pay a $10/month "fee" to Health Equity that increases the overall ER. I also cannot purchase more of the existing transferred in kind funds, which means I could not rebalance. I'm hoping it would still reinvest dividends, but I haven't confirmed that either way.
With Fidelity HSA, I'd have access to whatever investments Fidelity allows for HSA, but I'd have to liquidate before the transfer, and the proceeds would be sitting out of the market in cash for the first 3 weeks of August in a highly volatile stock market that could easily swing 5-10% either way.
This is my behavior: if the market is anywhere from down any amount to up ~3% in the uninvested period, I'm likely to put back in the Fidelity equivalent investments immediately in a lump sum. If the market is up higher, especially ~10%+ in 3 weeks, I'm much more likely to slowly get back in.
What would you do? Stay with Health Equity or move to Fidelity and why?
My company is no longer using Health Equity as HSA and all new payroll contributions will be to a new Fidelity HSA that my company will use going forward.
Here is the dilemma. We are being given a one-time offer to have all our Health Equity HSA transfer to the new Fidelity HSA without fees or penalties. Here is the catch, we have to liquidate all Health Equity HSA investments to cash by August 1, and then there will be a 3 week period where the funds are out of the market until Fidelity receives, and then around August 20 we'd have access to invest the proceeds in the Fidelity HSA.
Right now, the Health Equity funds are in the following Vanguard Index funds: 40% Vanguard Total Stock Market, 20% Vanguard Total International, 20% Vanguard Small Cap, 20% Vanguard Total Bond. Health Equity does not offer those funds, but they transferred in kind from My Benefit Wallet.
If I stay with Health Equity for the existing funds, I'd have to pay a $10/month "fee" to Health Equity that increases the overall ER. I also cannot purchase more of the existing transferred in kind funds, which means I could not rebalance. I'm hoping it would still reinvest dividends, but I haven't confirmed that either way.
With Fidelity HSA, I'd have access to whatever investments Fidelity allows for HSA, but I'd have to liquidate before the transfer, and the proceeds would be sitting out of the market in cash for the first 3 weeks of August in a highly volatile stock market that could easily swing 5-10% either way.
This is my behavior: if the market is anywhere from down any amount to up ~3% in the uninvested period, I'm likely to put back in the Fidelity equivalent investments immediately in a lump sum. If the market is up higher, especially ~10%+ in 3 weeks, I'm much more likely to slowly get back in.
What would you do? Stay with Health Equity or move to Fidelity and why?
Statistics: Posted by OldSport — Sat May 25, 2024 10:07 am — Replies 7 — Views 324