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SFAAX. I'm still not with any broker/dealers, so the 5.75% load is a non-starter. Thanks for the info, though, Old Skeet. Others might need it. Also, anything with the Wells name gets a score of zero from me. Screwing customers, opening false accounts... The very culture is toxic. The courts gave them a slap on the wrist "punishment." We bought bedroom furniture through a local store at the mall. Interest rate of zero for 5 years. Through whom? Wells. Shit! OK...
Hi @Crash, I'm thinking that the fund can be bought somewhere as a No-Load - NTF fund. In checking Schawb's site it looks to be a No Load / NTF fund. Perhaps there other places it can be purchased to avoid the sales load. And, I agree it would be nice if the fund were under a different parent company. I'm not fond of Wells Fargo myself. But, that, in of itself, would not keep me away from a fine product like this.
@bee Sorry if I'm being dense. My wife has an HSA through her employer. I understand contributions are tax deferred and I also understand it converts to IRA after you retire, or if you lose your job. What I didn't know however is you can invest it right away. First, will find out if the HSA is even invested is some fund at her employer plan. Second, if possible to divert funds into external fund.
However, most important question. Isn't investing it risky? I mean what if fund tanks right about the time you need to pay doctor and you run out of cash? For us, HSA just started last year and we used a bit of it of course already, so not much there at this time.
@carew388. I'm invested in RPGAX (for my MIL) and GAOAX as well. Not in SGENX but in FEBAX. I'm sticking with all of the above. MDLOX is available in my 401k. I used to be in it but unless I'm mistaken, the manager left and for me its almost automatic rule to change fund if that happens.
HSA doesn't convert to IRA after retirement. You can save all receipts and withdraw money from HSA account whenever you want. My employer HSA is with Fidelity and they allows us to invest anyway I want so I let the investment ride. No tax payment on withdrawal as long as you spend on deductible and vision expenses. I think recently the changes were passed where you can also use for OTC drugs (please confirm).
@kings53man, I have been retired for more than five years and I may use my HSA to cover medical, dental, eye, prescription meds and most recently over the counter meds not covered by my Medicare PPO.
@bee Sorry if I'm being dense. My wife has an HSA through her employer. I understand contributions are tax deferred and I also understand it converts to IRA after you retire, or if you lose your job. What I didn't know however is you can invest it right away. First, will find out if the HSA is even invested is some fund at her employer plan. Second, if possible to divert funds into external fund.
However, most important question. Isn't investing it risky? I mean what if fund tanks right about the time you need to pay doctor and you run out of cash? For us, HSA just started last year and we used a bit of it of course already, so not much there at this time.
We have had many thorough conversations here at MFO. Here's what I searched:
Just a few points I have gathered about how an HSA works:
HSA is triple tax advantage. Tax deductible when contributed (you have many contribution options...including mutual funds...Fidelity seems to be providing a great platform for HSA investment options).
HSA's grow tax deferred. If used after 65 for non-medical withdrawals you will pay taxes in the year you make those withdrawals much like an deferred IRA. There is a 10% penalty for non-medical withdrawals prior to 65. There is no actual RMDs, but if you plan on reimbursing yourself later don't leave tax free withdrawals on the table forever...HSA withdrawal rules change for beneficiaries after you die.
Medically qualified withdrawals are always tax free at anytime and withdrawals can be reimbursable at a later point in time (this could be many years later) if you pay out of pocket instead of your HSA. Keep track of medical qualified expenses for these reimbursements. Keep track of what you have already paid for and what you plan on being reimbursed for. Make a spreadsheet...save records.
Inheritable HSA provisions are completely transferable to your spouse as a Spousal HSA. If your beneficiary is a spouse it continues to have tax-free withdrawal status. A non-spouse inherits an HSA much like an Inherited IRA (taxable)...Inherited HSA. If your beneficiaries are non- spouse(s) make sure you reimburse yourself before you pass. In this manner you have made a tax free withdrawal (your withdrawal is tax free while alive). Even if you don't need this withdrawal you can at least pass it tax free to beneficiaries.
For those that have been following my post about CTFAX. It trimmed it's equity allocation again yesterday and it's allocation is now 65% bonds and 35% stocks. Since, the stock market swoon it did reach a 30% bond and 70% stock allocation before it began to trim stocks and load bonds. It adjust it's stock allocation based upon the movement of the S&P 500 Index. When stocks are cheap it buys more of them and when stocks become expensive it hold less of them. I'm still with my plan to buy more of this fund after it makes it's June distribution payment to shareholders. Indeed, it is an interesting fund.
I am going to use this fund as a placeholder. I still had AQR Long/Short Dog which went down when the market was up and down when the market was down. I am using the AQR cash to buy CTFAX. IRA so I am not worried about Taxes. @Old_Skeet are you in a taxable account?
No intention to hijack this thread, but I wish you hadn't reminded me of AQR Long/Short I added that dog to my "good until it wasn't" list and sold it a short while ago.
The contributor who recommended it seems to have disappeared (at least from this forum) long ago.
@MikeM, I hold a good slug of it in my taxable account and a little slug in my self directed IRA. There are a couple of reasons that I'm holding off until CTFAX makes it June distribution. One, I feel as though I'd be buying the distribution as it, for the most part, has already been made through its investment activity. Two, I have a CD that matures towards the end of May that I will be using some of the CD money to make this purchase. And, three, I want to keep my cost basis in the fund as low as possible (return on invested capital). Some funds (owned for years) have paid out more than enough to cover my cost of buying them. I'm thinking that the June distribution will be a sizeable one. Possibly, double (or more than) what it normally makes. Skeet
Comments
However, most important question. Isn't investing it risky? I mean what if fund tanks right about the time you need to pay doctor and you run out of cash? For us, HSA just started last year and we used a bit of it of course already, so not much there at this time.
CTFAX looks interesting.
https://mutualfundobserver.com/discuss/search?Search=HSA
Just a few points I have gathered about how an HSA works:
HSA is triple tax advantage. Tax deductible when contributed (you have many contribution options...including mutual funds...Fidelity seems to be providing a great platform for HSA investment options).
HSA's grow tax deferred. If used after 65 for non-medical withdrawals you will pay taxes in the year you make those withdrawals much like an deferred IRA. There is a 10% penalty for non-medical withdrawals prior to 65. There is no actual RMDs, but if you plan on reimbursing yourself later don't leave tax free withdrawals on the table forever...HSA withdrawal rules change for beneficiaries after you die.
Medically qualified withdrawals are always tax free at anytime and withdrawals can be reimbursable at a later point in time (this could be many years later) if you pay out of pocket instead of your HSA. Keep track of medical qualified expenses for these reimbursements. Keep track of what you have already paid for and what you plan on being reimbursed for. Make a spreadsheet...save records.
Inheritable HSA provisions are completely transferable to your spouse as a Spousal HSA. If your beneficiary is a spouse it continues to have tax-free withdrawal status. A non-spouse inherits an HSA much like an Inherited IRA (taxable)...Inherited HSA. If your beneficiaries are non- spouse(s) make sure you reimburse yourself before you pass. In this manner you have made a tax free withdrawal (your withdrawal is tax free while alive). Even if you don't need this withdrawal you can at least pass it tax free to beneficiaries.
[Thanks, @bee]
https://irs.gov/publications/p969
State Info:
https://thehsareportcard.com/the-hsa-report-card-1/2017/12/2/any-bank-basiconlinecom
The contributor who recommended it seems to have disappeared (at least from this forum) long ago.