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Xenoborg posted:I have Health Equity for my HSA also. Like you quoted they charge and extra 0.40% a year to invest in the Vanguard funds, but even with that they are still cheaper than their preferred (actively managed) options. Thanks everyone. I guess I'll just stay the course. You really can't beat the tax advantages of the HSA so oh well.
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Apr 17, 2018 02:45
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Residency Evil posted:I'm currently doing this, but reconsidering. On paper, this sounds great, my employer gives us extra $$$ to fund the account, the insurance is cheaper, and I get to put away extra money tax free. They also claim to cover the same things that the insanely nice "Cadillac" plan my workplace offers. In practice, the insurance company who administers the HDHP doesn't let me do the same things for patients/treat them the same way as the Cadillac alternative. It's still within the standard of care, but not as state of the art, and I know how I'd want to be treated. This probably applies to specialties beyond my own. Makes me wonder if I shouldn't change. GoGoGadgetChris posted:Don't sell your sp500 to buy TSM. You'll probably whip up a nice tax bill if you do that. Just buy TSM in the future rather than sp500 if you want! There's not much of a different between the two, although TSM has you covered in the event that a rando small cap company shoots up 69,000% Sobriquet posted:I have my retirement accounts pretty much all invested in Vanguard Target Retirement 2050 for my Roth IRA (at 0.16% ER) and my 401k (at 0.06% ER). Your house is not part of your portfolio. A 40bps management fee, jebus... I pay nothing for investments via Payflex, I will pay $25 to close the account when I leave the company (or a management fee at that point). I would stick with Vanguard, but do see what those funds are. Payflex has a poo poo interface but I can find all the info I need with a (lot) of work.
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Apr 17, 2018 03:23
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In the "good kinds of problems to have" department, my FIL gifted my wife and I 100 shares of PRU. This is the 3rd time he's done so. We sold some shares to cover the cost of redoing our attic insulation, and now with this, we might just be able to renovate our kitchen. PRU seems like just a slightly riskier savings account these days, although with better dividends. Should I sell the PRU and allocate it amongst the rest of my portfolio, which stands at 40% VFORX, 36% VTSAX, 10% VXUS, 14% VBTLX (assuming all the PRU gets sold), or should I be looking into that kitchen spend? Without the Pru it's around $185k in brokerage, 401k is maxed, I'm income-limited for IRA contributions, wife isn't and her IRA is maxed for 2017 and 2018. My logic here is that this is our generic long-term brokerage account for big things - my wife's car if/when it dies, home improvements, etc. Anything we don't spend we'll just hang onto for retirement. We'd be looking to gut and redo the whole kitchen, so if selling a total of 278 shares of Pru wouldn't cover it, we'd probably do a HELOC for the remainder unless it'd be smart to sell brokerage stocks to avoid the HELOC. An earlier poll of Facebook groups for our area put kitchen costs at anywhere from $30k-$60k, and I have yet to sit down with a kitchen designer, so this is all still in the investigation stage.
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Apr 17, 2018 13:35
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supercow posted:HSAbank is marginally better. I think you pay $2.50/mo for accounts with less than $5k in cash and an additional $3/mo if you choose to invest. They give you a tdameritrade account and you do whatever. Tdameritrade use to have fee free etfs which included some vanguard ones but now they took those away so your choices are worse. I made the switch but meh. Not sure why but all HSAs suck. My company just started an HDHP/HSA this year, so this is still all new to me. They use HSAbank and I have a TDamaritrade account set up. What do I need to do to put my money in something that matches a Vangaurd Target 2045? I had looked at the beginning of the year and wasn't clear on mutual funds vs ETFs vs whatever other options they had as well as what the most fee efficient route was. I didn't have enough money in my account at the time to do much, so I had planned to get back to it now that I have a grand in there to spend.
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Apr 17, 2018 13:40
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MJP posted:We'd be looking to gut and redo the whole kitchen, so if selling a total of 278 shares of Pru wouldn't cover it, we'd probably do a HELOC for the remainder unless it'd be smart to sell brokerage stocks to avoid the HELOC. I would rebalance the PRU into mutual funds, but at ~1% of your portfolio it isn't going to be life changing to let it ride. HELOC vs Brokerage is a harder question, what rate can you get on your HELOC, how long until you pay it back, is the interest tax deductible, how big of a LTCG hit are you going to take selling stuff? If it's 12-18 months could you let other expenses ride on a 0% interest credit card instead of paying interest OR selling your investments? In short it's spreadsheet time.
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Apr 17, 2018 17:46
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H110Hawk posted:I would rebalance the PRU into mutual funds, but at ~1% of your portfolio it isn't going to be life changing to let it ride. HELOC vs Brokerage is a harder question, what rate can you get on your HELOC, how long until you pay it back, is the interest tax deductible, how big of a LTCG hit are you going to take selling stuff? If it's 12-18 months could you let other expenses ride on a 0% interest credit card instead of paying interest OR selling your investments?
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Apr 17, 2018 18:22
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HSA question, I get health insurance through work, and it's a high-deductible plan. My employer doesn't sponsor any sort of HSA, so do I just go and open one myself wherever I want? It seems weird to me that it'd be that straightforward.
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Apr 17, 2018 18:30
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MockingQuantum posted:HSA question, I get health insurance through work, and it's a high-deductible plan. My employer doesn't sponsor any sort of HSA, so do I just go and open one myself wherever I want? It seems weird to me that it'd be that straightforward. Yes, it is that straightforward. Just be sure to double-check that your HDHP is assuredly qualified to be paired with an HSA.
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Apr 17, 2018 20:38
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H110Hawk posted:I would rebalance the PRU into mutual funds, but at ~1% of your portfolio it isn't going to be life changing to let it ride. HELOC vs Brokerage is a harder question, what rate can you get on your HELOC, how long until you pay it back, is the interest tax deductible, how big of a LTCG hit are you going to take selling stuff? If it's 12-18 months could you let other expenses ride on a 0% interest credit card instead of paying interest OR selling your investments? My thoughts are that I'm already willing to accept risk as my portfolio is laid out - might as well accept that risk across the portfolio and get better returns on it than PRU, because if we don't remodel this year we'll remodel the year after that. I don't have a HELOC yet and will admit I haven't looked into the details. I don't know the LTCG rate, but we can probably assume 4.75-4.99% APR depending on a few rate quotes for my area. Since it's for purposes of home improvement, interest is tax deductible, and LTCG -wise, the stock was vested as part of stock options, so it probably would be LTCG from 2012. We could do the 0% credit card thing but we use our excess monthly cash to invest further in the brokerage accounts, and redirecting them to a CC would probably not let us pay it down without compromising those extra $ investments for the future.
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Apr 17, 2018 20:41
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MJP posted:We could do the 0% credit card thing but we use our excess monthly cash to invest further in the brokerage accounts, and redirecting them to a CC would probably not let us pay it down without compromising those extra $ investments for the future. I'd probably use cash. Start sticking your brokerage deposits into a MMMF and pay for the remodel.
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Apr 17, 2018 20:49
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Guinness posted:Yes, it is that straightforward. Just be sure to double-check that your HDHP is assuredly qualified to be paired with an HSA. I will do my due diligence, but I'm guessing since my health plan has "HSA" in the name (and the deductible is $13,000 for me and my wife) I probably qualify.
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Apr 17, 2018 21:38
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MJP posted:We could do the 0% credit card thing but we use our excess monthly cash to invest further in the brokerage accounts, and redirecting them to a CC would probably not let us pay it down without compromising those extra $ investments for the future. Yeah you would have to use it to pay for a kitchen instead. That's the whole point of your initial question. 5% loan with deductible interest iff you are already itemizing is a 4% loan (20% off 5% is 4%.) If you aren't itemizing it's not deductible. You're going to have to take money from your pocket into someone else's somehow. You figure out what makes sense to you.
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Apr 17, 2018 22:27
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MockingQuantum posted:I will do my due diligence, but I'm guessing since my health plan has "HSA" in the name (and the deductible is $13,000 for me and my wife) I probably qualify. I don't know what all counts as qualifying but you'd think 13k deductible should be, that's brutal. The HSA I have (single) the deductible is 2k, for conparison's sake
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Apr 17, 2018 23:28
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single-mode fiber posted:I don't know what all counts as qualifying but you'd think 13k deductible should be, that's brutal. The HSA I have (single) the deductible is 2k, for conparison's sake Yeah it's a rough deductible, the tradeoff is that my employer covers pretty much the entirety of the premiums. And I have an honest-to-god pension in TYOOL 2018.
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Apr 18, 2018 00:41
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MockingQuantum posted:Yeah it's a rough deductible, the tradeoff is that my employer covers pretty much the entirety of the premiums. And I have an honest-to-god pension in TYOOL 2018.
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Apr 18, 2018 01:53
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So long term what do we think of David Hogg demanding that everyone with money invested with Vanguard divest themselves because GUNS?
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Apr 18, 2018 03:10
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SiGmA_X posted:Just curious, because I love hearing about expensive insurance, what is your OPM and premium, and what would it be for a PPO plan? Hilariously my deductible is equal to my OPM($13,000 Family) which I guess makes some sort of weird sense, my share of monthly premiums is about $150 as a pre-tax payroll deduction. When I was on a PPO plan before getting this job in April 2017 I was paying a little over $720/mo (post tax, obvs) for pretty restricted network coverage with a $10,000 family deductible. Can't remember what the OPM was for that one, but it wasn't much below the Marketplace max, so probably somewhere in the $12-13k range.
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Apr 18, 2018 03:25
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My girlfriend (soon to be wife) and I have about 30K saved for future projects which have not been defined and have no clear timeframe. We both agreed that a 5-year horizon before we would need that money is reasonable. Would investing that money in something like VTSAX make sense? We understand that there's a risk that the investment will devalue, it's not money out of our emergency fund.
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Apr 18, 2018 03:25
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I have a 401k from an old job I want to rollover, but I've never done that. Is there a major difference in rollover IRA options like Fidelity or Vanguard?
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Apr 18, 2018 06:33
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SeaWolf posted:So long term what do we think of David Hogg demanding that everyone with money invested with Vanguard divest themselves because GUNS? He’s not wrong.
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Apr 18, 2018 06:37
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I’m starting a federal government job in a couple weeks and their version of a 401k is the Thrift Savings Plan which also comes in regular and Roth forms. I’ve always heard that you should use a Roth 401k/IRA, but it seems that your income would actually be lower in retirement than your late 40s and 50s. It seems that the main benefit of Roth is that your capital gains over those 20-30 years is tax-free. Is that interpretation correct? I’m a fairly active stock trader so my preference has always been to just have my “retirement money” in a brokerage account that doesn’t have rules or penalties for withdrawals. But since I can withdraw my contribution from a Roth IRA penalty-free, I should probably set one up right? Josh Lyman fucked around with this message at 08:29 on Apr 18, 2018 |
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Apr 18, 2018 08:09
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SeaWolf posted:So long term what do we think of David Hogg demanding that everyone with money invested with Vanguard divest themselves because GUNS? While I value my wiener dogs opinion I have chosen not to eat dead squirrels and poop, both things he assures me are awesome. I can’t imagine anything Hogg says ever influencing me. Ropes4u fucked around with this message at 11:31 on Apr 18, 2018 |
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Apr 18, 2018 10:51
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Josh Lyman posted:I’m starting a federal government job in a couple weeks and their version of a 401k is the Thrift Savings Plan which also comes in regular and Roth forms. If you want flexibility, that sounds about right. Going Roth means you should both enjoy tax-free capital gains, and have no particular rules or penalties for withdrawals after a certain age. The TSP looks like it also has the funds you'd really need. You might as well do this, and you can of course do a rollover later if you really need to.
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Apr 18, 2018 12:36
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oXDemosthenesXo posted:I have a 401k from an old job I want to rollover, but I've never done that. Not really. Rollovers aren't too difficult as long as your previous employer/custodian aren't dipshits. Your main focus should be on the fees the IRA provider has. As long as you're paying attention, you can get funds at Fidelity with similar fees to Vanguard's. I've only used Vanguard myself though.
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Apr 18, 2018 14:06
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Anaxite posted:If you want flexibility, that sounds about right. Going Roth means you should both enjoy tax-free capital gains, and have no particular rules or penalties for withdrawals after a certain age. The TSP looks like it also has the funds you'd really need. You might as well do this, and you can of course do a rollover later if you really need to. To avoid over contribution to a Roth 401k due to a mid-year salary increase, should I avoid maxing out my TSP until the end of the year to avoid the penalty? Or should I just max it as early as possible and withdraw the excess before April 15 the following year? Similarly, if I'm close to the income limit for Roth IRA, should I just do a backdoor Roth right? In that case, would I need to open a new traditional IRA every year and then I could convert it into my existing Roth IRA? Josh Lyman fucked around with this message at 16:33 on Apr 18, 2018 |
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Apr 18, 2018 15:21
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Inept posted:Not really. Rollovers aren't too difficult as long as your previous employer/custodian aren't dipshits. Your main focus should be on the fees the IRA provider has. As long as you're paying attention, you can get funds at Fidelity with similar fees to Vanguard's. I've only used Vanguard myself though. I just rolled over from Etrade into Vanguard and it was the easiest thing I've ever done. Just type in your account number, really. First time I haven't had to be mailed a paper check I mailed to someone else. That said, the transfer is confirmed on both sides but not done, so there's plenty of room for something to gently caress up still.
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Apr 18, 2018 15:41
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Josh Lyman posted:I’m starting a federal government job in a couple weeks and their version of a 401k is the Thrift Savings Plan which also comes in regular and Roth forms. It doesn't have to be one or the other. You can split your TSP contributions between both Traditional and Roth. Overall, I think it is a gamble on what your tax bracket will be in retirement, which is why I think it is best to hedge and try to contribute to both. I prefer Traditional contributions for my TSP, because it minimizes my tax burden immediately, and I can then allocate those tax savings to additional investments or other family expenses. I do max out my Roth IRA each year, which I believe is enough of a balance against my Traditional TSP contributions.
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Apr 18, 2018 17:11
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SeaWolf posted:So long term what do we think of David Hogg demanding that everyone with money invested with Vanguard divest themselves because GUNS? I long denied this would ever be the case for me, but it turns out once you're rich enough that there's a point in your politics where you really do just say, "nah, lol" and move toward the right.
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Apr 18, 2018 17:18
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SeaWolf posted:So long term what do we think of David Hogg demanding that everyone with money invested with Vanguard divest themselves because GUNS? I get the rationale behind it, but I feel like saying you should dump Vanguard because they "invest in gun manufacturers" is mostly a misunderstanding of how index funds work. Vanguard is probably not investing so heavily in these companies because they think yay guns are great, let's buy em! It's because they're one of the largest companies offering passively managed index funds so they have to buy the underlying stocks representative of market cap. Also it sounds like they (Vanguard) are trying, at least in some nominal way, to use what leverage they have to confront gun manufacturers about it. I guess if it's really something you lose sleep over you can always just divest yourself of all the index funds that invest in gun manufacturers, they do have a bunch that don't. Or just buy bond funds and VFTSX.
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Apr 18, 2018 17:29
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The venn diagram of "people who invest any significant amounts of money" and "people who take instructions from Twitter pseudo celebrities" looks like this OO
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Apr 18, 2018 17:31
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Re: tax rate hedging in retirement - My dad just turned 64 and is starting to realize that his retirement account setup has been non-optimal since he has been dumping all of his money into a SEP IRA over the years for the immediate tax savings. He's now recognizing that income pulled from traditional accounts will not only be taxed and have to be withdrawn through RMDs starting age 70.5, but will also count as income for the purposes of reducing his social security payments. Granted, he spent a lot of his career making too much money to contribute to a Roth directly, but now he's got to figure out how best to spend the next 6 years living off my mom's income (which is thankfully sufficient for the both of them to survive on) while he makes annual conversions of traditional money into a Roth account. Point being: do try to find a way to mix up your contributions so you can do your tax hedging better. That poo poo will creep up on you and start to matter someday. They have more than enough saved for retirement, and my mom will never stop working because she loves what she does and will continue to do it until either her eyesight goes or we have to put her in the ground (she writes and speaks on a particular subset of the medical field), but it's a pain in the rear end to suddenly realize that decisions you made over the years reduce the flexibility of dipping into your nest egg. GoGoGadgetChris posted:The venn diagram of "people who invest any significant amounts of money" and "people who take instructions from Twitter pseudo celebrities" looks like this
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Apr 18, 2018 17:46
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If Hogg can get Blackrock and Vanguard to influence the gun companies at least a little then he did good work.
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Apr 18, 2018 17:50
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MockingQuantum posted:I get the rationale behind it, but I feel like saying you should dump Vanguard because they "invest in gun manufacturers" is mostly a misunderstanding of how index funds work. Vanguard is probably not investing so heavily in these companies because they think yay guns are great, let's buy em! It's because they're one of the largest companies offering passively managed index funds so they have to buy the underlying stocks representative of market cap. “Passive” doesn’t refer to the effect of your capital on other people. When you choose to benefit from investing (indirectly and in relatively tiny amounts, sure) in a company, you’re benefiting from the actions that company takes. The underlying mechanism that caused you to be invested in those companies isn’t terribly relevant. To what extent you’re ok with that is up to you. It’s worth thinking about though.
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Apr 18, 2018 18:12
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pokeyman posted:“Passive” doesn’t refer to the effect of your capital on other people. When you choose to benefit from investing (indirectly and in relatively tiny amounts, sure) in a company, you’re benefiting from the actions that company takes. The underlying mechanism that caused you to be invested in those companies isn’t terribly relevant. I don't disagree at all, I guess I'm just hypersensitive when people say "this thing is bad" on Twitter since the format doesn't allow for really any nuance at all in the discussion. It's good that someone's saying something about it, though, I'm sure it's an area where a lot of people investing money are indirectly supporting gun manufacturers and weren't conscious of it.
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Apr 18, 2018 18:33
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The thing is, if you want to be a conscientious investor, there are an awful lot of large companies that have done some absolutely heinous poo poo. Murder, hiring paramilitary organizations to put down dissenters, collusion with oppressive governments, you name it. I'm not sure that there's a good solution other than actually holding companies accountable and making executives go to prison, but I'm not holding my breath.
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Apr 18, 2018 18:45
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EAT FASTER!!!!!! posted:I long denied this would ever be the case for me, but it turns out once you're rich enough that there's a point in your politics where you really do just say, "nah, lol" and move toward the right. MockingQuantum posted:I get the rationale behind it, but I feel like saying you should dump Vanguard because they "invest in gun manufacturers" is mostly a misunderstanding of how index funds work. Vanguard is probably not investing so heavily in these companies because they think yay guns are great, let's buy em! It's because they're one of the largest companies offering passively managed index funds so they have to buy the underlying stocks representative of market cap. Mu Zeta posted:If Hogg can get Blackrock and Vanguard to influence the gun companies at least a little then he did good work.
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Apr 18, 2018 18:46
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Does anyone else like to look at their portfolio occasionally to see how many days it would take to make that much money from just their regular w-2 income? I had a good day in the market yesterday with my portfolio up 5k, and that's a months worth of income during the day. It helps balance out the days when the market is down.
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Apr 18, 2018 18:51
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Josh Lyman posted:My main concern is being able to make withdrawals for big purchases before age 59 1/2, though I guess that defeats the purpose of a retirement account. I guess the 10% penalty on an early withdrawal is better than the 15-25% ordinary income tax I'd pay on capital gains if I put it into a brokerage account instead. Uhhhh....you pay BOTH of those things when you take an early distribution.
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Apr 18, 2018 19:05
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Dilber posted:Does anyone else like to look at their portfolio occasionally to see how many days it would take to make that much money from just their regular w-2 income? I had a good day in the market yesterday with my portfolio up 5k, and that's a months worth of income during the day. It helps balance out the days when the market is down. I stopped because my market money might as well be an abstract concept since i won't touch it another 30 years
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Apr 18, 2018 19:15
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I did that for a while but stopped when Down Days made me think "I'd have to work an extra WEEK to make up for that one day!!! AHHH!"
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Apr 18, 2018 19:59
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