Financial mega-firm Fidelity Investments has made what it claims is the industry’s “only full-service health savings account (HSA)” available to RIAs and broker-dealers.
Firms and advisors that use Fidelity Clearing & Custody Solutions can help clients manage their health care expenses through the HSA solution, which was established in 2005 and has $5.4 billion in assets.
Morningstar’s latest assessment of the largest health savings accounts has Fidelity at the top for HSA spenders and investors, due to the Boston-based behemoths low fees, strong investment options, and first-dollar investing.
Investors are concerned about their health, and of the four areas of well-being identified in Fidelity’s 2019 Investor Insights Study (health, financial, life and work), health is the leading cause of stress for all investors, and more than a third are either stressed or not confident about their own health in particular.
“Our research shows that paying for health care is a top concern for many people, and HSAs help advisors provide peace of mind for their clients around their financial futures, including the ability to handle health care costs, which are often difficult to plan for,” Begonya Klumb, head of HAS with Fidelity Health Care Group, said in a statement. “We continue to experience tremendous growth with our HSAs for employer clients and individual investors, and know there is significant demand from the advisors we work with, since HSAs are a way to help clients invest in their long-term well-being in a highly tax-efficient way.”
Advisor opportunity
HSAs help advisors to diversify their product offerings and potentially increase assets under management with clients who are looking to invest in their future well-being.
According to Morningstar, as of mid-2018, total HSA assets surpassed $51 billion, $10 billion of which is invested (i.e., not in a checking account) and is growing at a faster rate than total HSA assets.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.