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Experiments With HSA Portfolio

Summary

HSA Portfolio setup, progress.

Some Background :

After a decade+ of paying high premiums via employee sponsored healthcare plans, for past 6 years, I am selecting high deductible health care plan and moving premium payment to HSA account. This part is good however when I checked account, bank is paying mere 0.2% on balance. With 30K+, Similar to IRA, I felt laziness is not an option.  My objective is make ~ 4% return. So during July first week, I moved 60% of account balance in to the following four funds evenly. I picked based on morning star ratings/dividend payout history etc.

Portfolio Composition:

  • BlackRock Equity Dividend
  • PIMCO Commodity Real Ret Strat Instl
  • PIMCO StocksPLUS Small Institutional
  • VANGUARD VALUE INDEX

Performance

Following chart shows how Portfolio fared over last  two quarters of 2018.

HSA performance

Thinking back, I made few mistakes

1) Moving entire amount in one go.

2) Not realizing some profit after reaching 5%+ returns

3) During December, not adding some more cash.

Only saving graces is all monthly contribution amount $500 is going to the funds regularly.

Bottom-line, even with quality funds, my HAS  Portfolio  total return was -12%.  Disappointed however I don’t want to make any changes for now.

2019-year plan:

With 6 weeks of market gains, my account will reach break-even very soon. Continue with monthly contributions and If a fund is returns 5%+, realize some profits. Regularly contribute additional $ when indexes drop heavily i.e. -500+.  Will update this post with any changes to this  portfolio.