Experiments With HSA Portfolio

Feb. 20, 2019 10:23 PM ET8 Comments
Sankhya profile picture
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Contributor Since 2015

Software professional.

Early days, I made many mistakes in managing my money. Still, I have a long runway for retirement. I experiment with my401Ks are converted to IRA, spouse IRA accounts. Currently managing 3 different portfolios and experimenting with different strategies. In a couple of accounts, I just do passive investment (40/50 in bonds/index/cash funds) and yearly once/twice, I change these allocations/time the market.

In spouse IRA/HSA accounts, I do timing/trading.  For past 4+ years, things are working OK i.e. ~8% value gain plus ~5.X% dividend income.


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.   

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