HSAs have only been around since 2004, yet traditional financial institutions burdened them with hidden fees from the onset. Even newer, HSA investments share the same fate. HSA investments can be riddled with hidden fees that can limit your investment growth and financial returns. Not all HSAs or HSA investments are created equal, let us show you what to look out for to make the most of your HSA investment.
Common HSA Investment Fees
- Account Opening Fee – these are not super common, but are part of some HSA platforms. Account opening fees are a one-time fee to start investing.
- Monthly or Yearly Fees – These are common fees for HSA investments but can vary. Sometimes it depends on account balances. Keep in mind that your investment account must grow enough each year to cover these costs, otherwise, you will lose money in your HSA.
- Investment Platform Options – allows users to select the investment options that works best for them and some HSA platforms even offer both like a self-directed account or pre-selected mutual funds. However, there can be fees to access both platforms. So do your research to determine which investment platform options works best for you so you don’t get caught with double fees.
- Trading Fees (buying & selling) – many self-directed accounts can have additional trading fees. Keep in mind, there are often fees for buying and selling, that will affect your investment returns. Do your research or consult an investment professional to see what investments will work the best for your HSA savings.
Lively’s HSA investment solutions are free* to access with Self-Directed Brokerage Accounts (powered by TD Ameritrade), or for a 0.50% annual fee with HSA Guided Portfolio (by Devenir). There are no cash minimum requirements to start investing with either solution.
One of the most common restrictions for HSA Investments are minimum account balance requirements. While this has no cost to your actual HSA balance, it can have a large impact on the return of your HSA investments because you must wait to invest. Time is money and HSA investments are subject to this basic financial pillar. The sooner you can invest, the more opportunity you can have to see returns on your investments. Review your HSA platform’s terms to understand how soon you can invest. If you get confused, know this, at Lively you can invest from Day 1, no minimum required.
The content presented on our website is for informational purposes only, and is not, and must not be, considered investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate investment, accounting, legal, and financial professionals, as appropriate, before making any investment or utilizing any financial planning strategy. Investments involve risk and are not guaranteed.
*Additional TD Ameritrade transactional fees may apply. Please see TD Ameritrade’s fee schedule here.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.