3 Reasons Why Your HSA Needs Diversified Investment Options

March 11, 2020

Health Savings Account (HSA) investment assets cleared the $15 billion mark for the first time in 2019 and are expected to reach nearly $20 billion next year. With more HSA participants growing their funds through investment, it’s important to offer your employees an HSA that caters to every type of investor.

That’s why we recently enhanced our investment experience by introducing a Health Savings Brokerage Account (HSBA). Here are three reasons your HSA participants will be more engaged with their investment when they have access to a brokerage account.

Wider range of investment options

While a standard HSA offering typically includes 25 to 35 investment options, a brokerage account gives your employees more options to invest their funds. The increased options give your new investors more flexibility in how they invest their funds. And your experienced investors will appreciate the opportunity to choose among a wider array of options.

Our HSBA through Charles Schwab lets HSA investors choose among more than 8,500 mutual funds and other investment options. And, if for less savvy investors who are still getting comfortable with investing, they can still invest within our standard lineup of mutual funds.

Support for investors of all types

Some investors prefer to be hands-on, consistently checking the performance of their investments and making adjustments as needed. Others prefer a more automated experience. By providing diversified options and tools to support both groups of HSA participants, you are nurturing their investment strategies and helping them achieve their retirement goals. 

Our HSA participants have access to an Investment Guidance Tool and HSA calculators to help anyone choose the investments that are right for them and develop a strategy to meet their needs. And, for those who seek expanded HSA investment options, our HSBA has additional tools catered to those investors.  

Enables easy integration within overall portfolio

An HSA rivals a 401(k) and IRA for its investment potential. However, for most HSA-enrolled employees, an HSA is merely part of their portfolio. That’s why more than half of HSA-enrolled employees also contribute to a 401(k).

By offering diversified options through a brokerage account, these HSA participants have the ability to align their HSA investment strategy with their overall investment portfolio, since brokerage accounts have more options. And, through increased engagement in an HSA, that also encourages them to be more active with all of their retirement accounts, since a 401(k) often is considered as a “set it and forget it” type of account.

Would you like to learn more about how to help your employees successfully transition to an HSA and a High-Deductible Health Plan? Submit the form below and get your free eBook!

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