There is some info on H.S.A. (to avoid incorrect MFO hyperlink) at
https://ybbpersonalfinance.proboards.com/thread/258/hsa-health-savings-accounts
M* had a recent update, https://www.morningstar.com/specials/the-best-hsa-providers
2023 M* Update on Top HSAs
A brief explanation of HSAs is followed by rating tables and then by more detailed descriptions of a few top plans.
HSA - Spending
Fidelity, First American Bank, Health Equity, HSA Bank, Lively, etc.
HSA - Investing
Fidelity, Associated Bank, Health Equity, Lively, UMB, etc.
Many HSAs have brokerage windows
Fido HSA https://www.fidelity.com/go/hsa/investing-hsa-your-way
Schwab HSA/HSBA https://www.schwab.com/hsba

Serious question. Does anyone know if there is a brokerage etc where you can open/ transfer into a HSA where you could invest in mutual funds, stock, tbills etc? It seems to me that most/all HSAs you put your monies in and they put you into a savings account that pays deminimus interest? Or it's kind of an online only outfit like Lively where there is nowhere to walk into a place and speak to someone.
Pls advise if you have further insight
Tks
Baseball Fan

COVER STORY “It’s Time to Stop Crying About BONDs and Buy Them Instead”. 2023 may (hopefully) end the worst-ever 3-yr stretch for TREASURIES. Other investment-grade bonds have also suffered. But the RATES are peaking, and focus should be on what comes next (rather than crying over the spilled milk). Hedge-fund manager Bill ACKMAN has covered his Treasury shorts. Yields are much higher now, and much of the bond return is from their starting yields. Bond prices are related to DURATION and longer-term bonds have more kick (up/down). Taxable bonds are oversold and are more attractive than comparable munis. INFLATION-expectations are moderate around +2.5%. Investment-grade bonds may resume their traditional BALLAST role and 60-40 portfolios also look attractive. RISKS include higher persistent inflation, the FED losing control to BOND VIGILANTES, reduced global DEMAND for Treasuries and DOLLAR. The high short-term yields won’t last and it’s time to extend duration/maturity through intermediate-term bonds and/or bond ladders. Mentioned are funds representing a broad spectrum: VMFXX, PFIAX, AGG/BND, OSTIX, BASIX, BINC (new).
Long-Treasury etf TLT is having a lousy year again (3rd), but investors continue to pour money into it (#3 etf inflows YTD) in the hopes of a turnaround soon (2024?). The better performing HY JNK may do the opposite.
(At MFO, ETF incorrectly hyperlinks to something. So, using etf to avoid that. @Charles)
INCOME. Attractive consumer-staples include CLX, HLN, KVUE (JNJ spinoff), LW, PG; etf XLP.
FUNDS. Ouch! If you own bond index funds, then you are suffering from a 3rd bad year. Indexing is difficult for bonds. Many issues are illiquid and may not trade often. Active bond funds may be desirable in specialized FI areas.
Core – Indexed AGG, BND
Core – Active VCORX
Multisector PONAX (these combine sovereigns, corporates, HYs, EMs)
HY – Indexed HYG
HY – Active BHYAX, RSIVX, VWEHX
Munis – Indexed MUB
Munis – Active HMOP, MDNLX, VWAHX
(by @LewisBraham at MFO)
FUNDS. BERKOWITZ’ LC value FAIRX is doing well YTD due to its 82% of assets in FL real estate developer St Joe/JOE (extreme concentration). Almost 33% of the $340 million AUM fund is held by Berkowitz’s family members and they don’t mind paying 1% ER. The AUM peaked after Berkowitz was named Manager of the Decade by M* in 2010, but there have been persistent outflows since then. Institutional holders may redeem the fund for JOE stock. Investor/personal returns (M* statistic on asset-weighted returns) have been poor. (by @LewisBraham at MFO)
Byron WIEN passed away at 90 (1933-2023). He was well-known for his annual lists of 10 Surprises, 20 Life Lessons, Summer Lunches in Hamptons, etc. His philosophy on predictions (and he made many) was that they were meant to be thought-provoking contemporaneously and it didn’t matter whether they turned out to be right or wrong (and he didn’t keep score himself, but others did). A world traveler, his mobility recently was limited by a hip injury, and he relied on Zoom. A nerdy Chicago kid, he was lucky to get into Harvard. His long career was at Morgan Stanley/MS (retired in 2001), Pequot, Blackstone/BX (2009- ). He was quoted often in the media and in Barron’s which did a Cover on him in 2016. He noted that sleep is more critical than diet or exercise. A multimillionaire, he lived modestly – he flew commercial; brought leftover restaurant food home; didn’t move from NYC to FL “because” he wasn’t a billionaire to avoid taxes. His philanthropy was for people who needed help and support rather than for arts and museums. He did endow 2 professorships at Harvard and also funded several scholarships there. He was married twice but didn’t have children and had many godchildren.
RETIREMENT. According to a study by MetLife/MET, 75% of employees could benefit from high-deductible health plans (that is poor naming/framing) and HSAs. But only 45% of employers offer HSAs and only 29% of employees use HSAs. The employee benefits are from lower plan premiums and because the HSA funds can be used tax-free for qualified medical expenses and in retirement (so, it’s like a super-401k/403b). HSAs are also portable. But HSA contribution must stop when Medicare begins; however, the HSA-funds can still be used for medical expenses. (Incorrect MFO hyperlink for HSA)
https://ybbpersonalfinance.proboards.com/board/12/market-insights

Another type of IRA “conversion”:
If money is tight and you are over 59 1/2, one might consider an IRA withdrawal that funds your HSA. This could be done each year until age 65. Taxes due on the IRA withdrawal (in the amount equal to the tax deductible HSA contribution) cancel each other out.
IRA “withdrawal” to HSA “contribution” Strategy:

If money is tight and you’re 59½ or older, you could take a regular withdrawal from your IRA and use it to contribute to your HSA. The tax bite from the traditional IRA withdrawal and the tax deduction from the HSA contribution should nearly cancel each other out. And most importantly, you can do this more than once—in fact, every year if you want.

investopedia - transfer-ira-money-to-an-hsa

SECURE Act 2.0 Section 307 (see p 2237(!) here) amends IRC Section 408(d)(8) by adding a new subsection (F).
This new tax code provides for a QCD to any "split interest entity" (408(d)(8)(F)(ii)) including (I) a CRAT, (II) a CRUT, or (III) a charitable gift annuity. I haven't yet searched for mix-and-match restrictions, i.e. whether one can contribute to more than one gift annuity or, say a CRAT and a gift annuity. Fidelity seems to think that one cannot mix and match, though it is silent on making QCDs to two entities of the same type.
https://www.fidelitycharitable.org/articles/secure-act-2-0-retirement-provisions.html
Fidelity's page on charitable gift annuities says that they may have mins as low as $5K but depending on the annuity the min could be much higher. OTOH, it also says that CRTs typically have mins of $250K which would exclude most of them from this new section of the tax code.
https://www.fidelitycharitable.org/guidance/philanthropy/charitable-gift-annuity.html
A QCD donation to a split interest entity can only be done in one tax year, similar to the restriction about using an IRA to fund an HSA. You're allowed to make multiple contributions in the same tax year. Keep in mind that if you want the QCD to apply to an RMD, then it must be made before other distributions (standard QCD/RMD rule).
I can understand the loophole about treating the full amount as a QCD even though one receives a taxable benefit later (what Yogi labeled as (i)). Any other treatment would make this whole thing too complicated - that you would get only a partial QCD exemption from taxes. And that would defeat the objective of using a QCD for RMD purposes.
QCD decision flowchart (showing where CGA, CRAT, CRUT fit in, and a paragraph on each).

Oh to answer the mutual fund question, I did a quick run through MFO for health care funds with best risk related returns, Martin numbers etc in last five years
Several to consider. I think active management is probably a better bet than an index
BHCFX is retail version of BHCHX
SHSAX SWHFX And PHSTX all come in close to top.
Interesting the only "Great Owl" is Schwab's SWHFX

Thanks@David_Snowball. I contribute monthly to BRUFX into my HSA account. I use bill pay. Very simple.
My condolences to the Bruce family.

The other question, which is more personal and Bobpa does not have to answer is does he need an emergency fund? While I worked hard to wean my kids off my checkbook, and they happily followed thru when they had jobs, in a true financial emergency involving several thousands of dollars, we would gladly help.
It is important at young ages to adapt responsible budgeting, a savings plan and to be able to swing emergency car repairs for example, but a new roof might be beyond that funds capacity.
I would agree with paying off student loan.
Having received similar equity inheritances, I would also suggest keeping a little bit of at least one position as a sentimental reminder of someone else’s largesse.
I have a few shares of Exxon that “were” originally my grandfathers in 1920s. They are only electrons but they are still a reminder of his life and career.

Great idea about keeping the reminders. I have my Grandfather's tax forms from the beginning of the income tax. Much heavier than electrons, but interesting to contemplate from time to time.
He could keep a 1000 bucks each, pay off the student loan, and still have some left over for the emergency fund/IRA/HSA account.

(This Article First Appeared in Bloomberg)
“UP AND down Wall Street, forecasters were caught flat-footed by how the first half of 2023 unfolded in financial markets. That seems to have rattled their faith in what the winning playbook for the rest of it should be. Heading into the year, a handful of predictions dominated strategists’ annual outlooks. A global recession was imminent. Bonds would trounce stocks as equities re-tested bear-market lows. Central banks would soon be able to stop the aggressive rate hikes that made 2022 such a year of market misery. As growth stumbled, there’d be more pain for risky assets.
“However, that bearish outlook was shattered as stocks rallied even as the Federal Reserve continued to ratchet up interest rates in the face of stubbornly elevated inflation. And what was supposed to be the year of the bond fizzled: US Treasuries have nearly wiped out their tiny gain for the year as yields test new highs and the economy remains surprisingly resilient in the face of the Fed’s monetary policy onslaught. As a result, financial soothsayers have rarely disagreed more about where markets are headed next.
“There’s a 50 per cent difference between the most bullish one from Fundstrat (which sees it rising nearly 10 per cent more to 4,825), and the most bearish call from Piper Sandler (down some 27 per cent to 3,225), according to those compiled by Bloomberg. The mid-year gulf hasn’t been that wide in two decades. “
https://www.businesstimes.com.sg/wealth/wall-street-soothsayers-have-rarely-been-so-bewildered-about-whats-next

We've had nice feedback about Devesh's synopsis of his time with David Sherman and David's investment reflections. I think that Lynn makes a good case for concern about a "hard landing." And I'd love to find a way to raise the visibility of the HSA piece. It's one of those weird devices that seems a bit off-putting to novices, even though it has the potential to do great good for them.
Cheers!

Hi, guys.
Chip continues her recovery from surgery, which is a bit more sporadic than we'd hoped. In consequence, the June issue will go live somewhere between Friday evening and Saturday.
Good stuff coming:
investing like Taylor Swift, in CEFs (me)
the HSA as a backdoor to wealth building (msf)
advice for a young investor (Lynn)
dinner and a walk with David Sherman (Devesh)
recession watch (Lynn, with the note "buckle up")
Buffett, inflation and equities (Devesh)
Leuthold Core, with a sidetrip to Global and Core ETF (me)
cool churnings in the industry (Shadow)
And stuff!

Can we assume the instructions for having IRS send your refund to your TD account instead of your Bank account are the same as TD instructions to have employer send in money directly
"To have your employer send the money
You will fill out a direct deposit form that needs this information:
The "receiving bank name": TREASURYDIRECT (all capitals, no space)
The routing number for TreasuryDirect: 051736158
Your 10-digit TreasuryDirect account number, no hyphens, with a P at the end
(Example: A123456789P)
How much money you want to have your employer send from each paycheck
Where the form asks if this is a savings account (22) or a checking account (23), you can choose either. That doesn't matter to our system."
The form 8888 instructions say
An account can be a checking, savings,
or other account such as an IRA, HSA,
Archer MSA, ESA, or TreasuryDirect®
online account.
IT would probably work, but I am not sure I want to risk my $2500 refund. Still the form 8888 instructions say if the electronic account rejects your refund, they will issue paper check.
Anybody tried this?
I have to file on paper this year so who knows how long it will take for me to find out.

HSTRX
I will look at it again, although I am always concerned about Hussman's consistency and performance.
He writes these amazingly clear market commentaries with those beautiful graphics, claiming the roof is about to fall in, with data to support his position on valuations etc.
Then HSAFX is 75% stocks, HSTRX 75% short term bonds and HSGFX is 103% long with a short position of 35% so net 70% equity
I can never figure him out

The following two funds have performed well for me and have been worry-free.
Collectively they comprised 36% of my total portfolio at the beginning of the year.
Interm. Core-Plus Bond: DOXIX
Foreign Large Blend: MIEIX (invested in CIT "clone")
Edit/Add:
I've owned the following fund for ~5.5 years in my HSA and am pleased with its overall performance
but it's only a small slice of my portfolio.
Large Blend: PRILX

From @NumbersGal linked article:

Bruce Fund (BRUFX)
Inception date: 3/20/1968
Capital gain in 2022: 58.7%
This fund invests in domestic stocks and bonds, along with zero-coupon government bonds. It currently has about $505 million in assets, and its price declined 20% last year. With a current NAV of $520, an investor with 10 shares worth would have a capital gains bill of about $3,100 to then pay taxes on.

Per M*:
BRUFX had a loss of (8.76%) while the Category average was a loss of (14.96%).
NAV can be impacted by distributions. BRUFX distributed both LT gains and a dividend but $3100 on 10 shares? This article seems a bit off. More Like $1000 on 10 shares. Maybe the author is a ChatGPT 'bot?
Interestingly, the last time BRUFX had an NAV of $520 (aside from the COVID hiccup) was 2/4/2019. Yesterday its NAV was $520, but had you owed the fund over that time period you would have gained almost 35%. I personally own this fund in an HSA so I pay no taxes on these gains.

BRUFX, long term, has been berry berry good to me.

This is my summary of the Cover Story; I didn't see it as an ESG story and searches on "ESG" and "sustain" produced zero results. It is a story on how technology has changed farming.
COVER STORY (ECONOMY) “The Boom Time for FARMERS Can Last. Who Will Reap the Rewards”. AG-TECH is booming (biotech, AI, mechanization, hybrids, crop rotations). Higher grain prices and wind energy installations are helping. Farmland prices are up; institutions including pension funds are active in farmland. Grains are used for human consumption, animal feed, biofuels. But farm labor is hard to find, and many are turning to immigrants. Mentioned are AGCO, CNHI, CTVA, DE, TITN; farmland REIT FPI.
There are couple of general fund stories too:
FUNDS. BIOTECH funds are attractive now. They peaked in 02/2021 after a deluge of biotech IPOs following the pandemic in 2020. Mentioned are ETAHX, FBDIX, FBIOX, JAGLX, LYFIX, PRHSX, SHSAX; ETF XBI. (by MFO @lewisbraham)
FUNDS. Barnaby WILSON, Lazard Asset Management (OCMPX, etc). He is searching the GROWTH stock rubble globally for quality stocks with good cash flows, reasonable valuations, competitive moats, pricing advantage. He avoids companies with unprofitable growth.
LINK

I've been stepping into TAVFX, Third Ave Value fund and MOWNX, Moerus Worldwide funds...they own stocks of companies that deal in real assets...I'm thinking this is going to the wire meaning the debt limit and could get very wonky...US$ would go down bigly...do like the fund mgr comentary of TAVFX.."magical thinking the past 5 to 10 years, refers to SPACS, "private currency" dunno if he means shitcoins, trees growing to the sky US equities and transcending our physical world and reducing our dependcy of old economy activites like mining...I don't beleive any of those funds hold any Chinese company stocks as well which I consider a good thing, I don't care how they have doing lately etc. Also opened small position in SGGDX First Eagle Gold. To go along with strong bank, FDIC balance sheets CDs when my Tbills roll off. Still hold my PMEFX, PVCMX and HSAFX, Hussy which could hold up better than most during a debt limit crisis.
As far as all the politico comments, I'll just say I have an opposite viewpoint of most of what was written in this thread and will refrain from adding my comments as to not offend anyone and keep the focus on investing.
I also hope I am wrong but I can see the war in Ukraine spiraling out of control rapidly,,,my parents were in Europe during the War and the stories make me shiver....Mom saw folks chewing on the soles of their shoes and eating grass for nutrition....this has got to be de escelated. somehow someway, not pour more and more weapons in there.
Good Luck to All,
Baseball Fan

HSAFX is available with a transaction fee at Schwab and Vanguard-not available at E-Trade.

Unavailable also at Merrill Edge. But it is available at Firstrade (all funds NTF). At least it shows up at Firstrade if one logs into an account ($500 min); it isn't on Firstrade's public list of funds.

HSAFX is available with a transaction fee at Schwab and Vanguard-not available at E-Trade.

One factor is whether brokerages are carrying HSAFX. Don't know about all of them, but Fidelity continues to refuse to make it available. I've put in a request for it three times now, and the answer continues to be no.