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When selecting funds to invest my HSA dollars, should I be looking for funds that pay a quarterly/annual dividend, or should I invest my dollars in a growth fund to take advantage of the decades of work I have left until retirement?

What’s your advice on selecting funds for my HSA Investments? I am 28 years old with no student debt, no car payments, I am participating in the company 401(k), participating in the company ESPP, and I am also saving for a down payment on a house. The majority of my money is going to rent, & dinning out with friends twice a week.

I’ve contributed enough to my HSA to cover the out-of-pocket maximum for my health insurance, and now I am looking into selecting funds to invest the extra money. My goal is to contribute the max to my HSA every year since these funds have triple tax savings, and I can use the funds to pay for emergency medical expenses.

When selecting funds to invest my HSA dollars, should I be looking for funds that pay a quarterly/annual dividend, or should I invest my dollars in a growth fund to take advantage of the decades of work I have left until retirement? Should I wait to move the HSA dollars into the funds now, or should I wait until the markets dip?

Banking, Debt, Financial Planning, Retirement, 401(k)
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Given your relative youth, I would advise you to pay little attention to current dividends. Invest your HSA balance in a total stock market index fund. If you wish to reduce overall risk, add a short-term US Treasury fund to the mix.  Before investing, you should assess your risk tolerance

Not a fan of waiting for the market to dip but you could give it a shot. Be aware that for most people, though, market timing's a losing strategy.

May 2019