|
My wife changed jobs, and has her old 403(b) she needs to do something with. The new employer offers a plan with the same company as her previous employer, with the same plans. it looks like the ER is the same or lower than her previous employer. Should she just roll it over to the new employer's plan? The other option would be making a vanguard account and rolling it over to a pre-tax vanguard account. Either way the funds will probably be put in a TD 2055 Vanguard fund.
|
#
?
Oct 28, 2019 02:12
|
|
|
|
| # ? May 24, 2024 21:39 |
|
|
The Slack Lagoon posted:My wife changed jobs, and has her old 403(b) she needs to do something with. The new employer offers a plan with the same company as her previous employer, with the same plans. it looks like the ER is the same or lower than her previous employer. Should she just roll it over to the new employer's plan? The other option would be making a vanguard account and rolling it over to a pre-tax vanguard account. Either way the funds will probably be put in a TD 2055 Vanguard fund.
|
|
#
?
Oct 28, 2019 02:13
|
|
|
I am transferring some money between my old bank and my new bank. As of yesterday, it's gone from my old one but not yet in the new one. I've never done this before, so I don't know if this is normal. Is it?
|
|
#
?
Oct 29, 2019 23:12
|
|
|
Some money showed up in my bank account this morning that I don't think I put there. I think the transfer notes said something about magnets, but I spent it all already. Is this normal? (Moving between two banks, it's normal for it to take a day or two. It's especially normal if the receiving bank is a smaller one. My old bank in New York took 5-7 days to transfer funds before they got bought out by a big place.) Sundae fucked around with this message at 23:34 on Oct 29, 2019 |
|
#
?
Oct 29, 2019 23:32
|
|
|
Transferring my 401(k) to an IRA over a weekend resulted in a nerve-wracking three days between the money leaving one account and arriving in the other. Almost as bad as when I checked my 401(k) and had a balance of $0 because my old employer never gave me notice that they changed plans and moved my money into a new account for me. (hence moving it into an IRA)
|
|
#
?
Oct 30, 2019 00:02
|
|
|
I'm just piling on the dumb questions, and this one should be googlable, but I can't find something that says it in black and white. Are Roth IRA contributions restricted by Calendar Year or the Tax Year? I went to set up automatic Roth contribution and it seemed to automatically configure for a large amount, so I thought it was trying to make up lost time. Later, I came across other sources say that IRAs go by tax year but it did not explicitly for Roth IRAs.
|
|
#
?
Nov 1, 2019 20:34
|
|
|
Magnetic North posted:I'm just piling on the dumb questions, and this one should be googlable, but I can't find something that says it in black and white. Tax year. You can contribute to your 2019 limit until April 15 2020.
|
|
#
?
Nov 1, 2019 20:37
|
|
|
It's by tax year. So you can make 2019 contributions up until April 15, 2020, however you need to make sure you fill out the right forms to indicate that you are in fact making a prior year contribution. So say you win a $10k lottery ticket in March 2020. You could put half in your 2019 Roth, and then the other half in your 2020 Roth. This is assuming you didn't already max out your 2019 Roth, and also that you were qualified to contribute to a Roth IRA in 2019.
|
|
#
?
Nov 1, 2019 20:41
|
|
|
That probably explains the Vanguard website's behavior, as it's trying to keep it as simple as possible for something meant to be automated. Thanks for the help.
|
|
#
?
Nov 2, 2019 00:55
|
|
|
Continuing the line of questioning: What is the gooncensus on voluntary long term disability insurance from an employer? The money it would cost would never outstrip the potential benefit if something were to happen, but it still feels kinda like buying one of those crooked coverage plan on a tablet or something.
|
|
#
?
Nov 7, 2019 20:44
|
|
|
Magnetic North posted:Continuing the line of questioning: What is the gooncensus on voluntary long term disability insurance from an employer? The money it would cost would never outstrip the potential benefit if something were to happen, but it still feels kinda like buying one of those crooked coverage plan on a tablet or something. I know a lot of people who have needed and used it. I keep it on my benefits at whatever the highest level is that I can select.
|
|
#
?
Nov 7, 2019 23:19
|
|
|
I’m not an expert but I’ve always heard that long term is worth having while short term you’re way better off just putting the same money in the bank.
|
|
#
?
Nov 7, 2019 23:51
|
|
|
Sundae posted:I know a lot of people who have needed and used it. I keep it on my benefits at whatever the highest level is that I can select. Here's hoping I never need it and am just wasting this money powderific posted:I’m not an expert but I’ve always heard that long term is worth having while short term you’re way better off just putting the same money in the bank. Yeah I did decide to skip the cockamamie Accident insurance and the other weird stuff Aflac offers, since I have an emergency fund for that.
|
|
#
?
Nov 8, 2019 01:47
|
|
|
Long term disability is important if SSI disability benefits would not be able to cover your cost of living (realize this is on the order of $1500-$2000/mo or so), or if it's possible for you to be disabled in such a way that would prevent you from doing your usual job, but not any job (SSI only pays out if you're completely and totally disabled). So if you work a higher paying job that requires a specialized skillset, it's probably something to look into. I tend to recommend evaluating individual policies because they 1) are portable in case you switch jobs and maybe your next employer has a crap policy or none at all, and 2) the definition of disability is usually not as strong with group policies. Since you're not talking about life insurance (can't quibble about death really), the definition really matters, and whether they cover certain things, for example disability due to mental health or substance abuse is often limited or not covered at all, varies tremendously depending on the policy. Disability insurance is a pretty complex topic though, so if you're thinking it'd be good to have then do your research first.
|
|
#
?
Nov 8, 2019 03:21
|
|
|
Chu020 posted:Long term disability is important if SSI disability benefits would not be able to cover your cost of living (realize this is on the order of $1500-$2000/mo or so), or if it's possible for you to be disabled in such a way that would prevent you from doing your usual job, but not any job (SSI only pays out if you're completely and totally disabled).
|
|
#
?
Nov 8, 2019 03:25
|
|
|
Hoodwinker posted:LTD is a topic I wish I knew more about. I feel pretty confident that STD is covered by having a simple e-fund and I can skip that, but my new job has free STD/LTD and I'd like to know more about where I can get a better sense of how LTD might factor into my planning going forward. I hardly ever see it talked about on this board and it seems important but I can't get a sense for how much/if it really is. I have a LTDI policy through my employer that covers 60% of my salary, for a $25/month pretax deduction. I also carry a portable LTDI policy for another 30%, which cost about 2% of monthly payout. Like all catastrophic insurance it’s unlikely I’ll ever use it, but I have 3 dependents and it helps me sleep better.
|
|
#
?
Nov 8, 2019 06:03
|
|
|
howdoesishotweb posted:I have a LTDI policy through my employer that covers 60% of my salary, for a $25/month pretax deduction. I also carry a portable LTDI policy for another 30%, which cost about 2% of monthly payout. Like all catastrophic insurance it’s unlikely I’ll ever use it, but I have 3 dependents and it helps me sleep better.
|
|
#
?
Nov 8, 2019 06:05
|
|
|
howdoesishotweb posted:I have a LTDI policy through my employer that covers 60% of my salary, for a $25/month pretax deduction. I also carry a portable LTDI policy for another 30%, which cost about 2% of monthly payout. Like all catastrophic insurance it’s unlikely I’ll ever use it, but I have 3 dependents and it helps me sleep better. Is that 2% annually? Like $100k salary, you are covering 30% so $30k/year benefit. Does that cost $600/year? Is it a fixed rate for a certain time or does it go up each year?
|
|
#
?
Nov 11, 2019 02:59
|
|
|
H110Hawk posted:Is that 2% annually? Like $100k salary, you are covering 30% so $30k/year benefit. Does that cost $600/year? Is it a fixed rate for a certain time or does it go up each year? It’s paid monthly, but yes the monthly premium is equivalent to 2% of full monthly benefit. I was ale to qualify for the highest tier, and under 30. My premium is locked in. I purchased cost of living and future purchase riders, but there is a 2 year benefit limit for mental/substance disorders.
|
|
#
?
Nov 11, 2019 16:18
|
|
|
I'm considering cashing out some index funds to pay off my mortgage, basically as a way to reduce my risk if the market crashes (i.e. I'm expecting there to be a market crash between now and when my mortgage nominally pays off in ~9 years). As I understand it, in the worst case (no market crash until after the mortgage would be paid off anyway) I miss out on the difference between the interest rate on the mortgage and the rate of return the money would have generated in the market. In the best case (crash immediately after paying off the mortgage), I reduce my losses due to the market crash by not having to withdraw money to make mortgage payments while the market is in a slump. The realistic case is of course somewhere in the middle; I don't think it's reasonable to assume that we'll continue to be in a recovery for the full remaining duration of the mortgage. I'm well aware that this amounts to an attempt to time the market, and that the statistically best decision, all else being equal, is to keep the mortgage so long as its interest rate (3%) is less than the long-term average market rate of return. I'd feel personally more secure with the mortgage paid off, though. My question basically amounts to: my analysis above feels a bit simplistic, so what am I missing?
|
|
#
?
Nov 12, 2019 05:18
|
|
|
TooMuchAbstraction posted:I'm considering cashing out some index funds to pay off my mortgage, basically as a way to reduce my risk if the market crashes (i.e. I'm expecting there to be a market crash between now and when my mortgage nominally pays off in ~9 years). As I understand it, in the worst case (no market crash until after the mortgage would be paid off anyway) I miss out on the difference between the interest rate on the mortgage and the rate of return the money would have generated in the market. In the best case (crash immediately after paying off the mortgage), I reduce my losses due to the market crash by not having to withdraw money to make mortgage payments while the market is in a slump. The realistic case is of course somewhere in the middle; I don't think it's reasonable to assume that we'll continue to be in a recovery for the full remaining duration of the mortgage. Did you account for capital gains tax on your index funds?
|
|
#
?
Nov 12, 2019 05:26
|
|
|
TooMuchAbstraction posted:I'm well aware that this amounts to an attempt to time the market, and that the statistically best decision, all else being equal, is to keep the mortgage so long as its interest rate (3%) is less than the long-term average market rate of return. I'm not really clear on what you're looking for here. None of have crystal balls. Well....I don't want to speak for everyone, but at least not the type that can reliably predict something that is going to topple decades of market history. There is certainly an emotional component to this. And you need to do you, but be honest about what that is likely to cost and decide if that's worth it.
|
|
#
?
Nov 12, 2019 05:27
|
|
|
Motronic posted:I'm not really clear on what you're looking for here. I'm not expecting you to predict the market for me, just to mention factors I had neglected to consider, such as Sundae posted:Did you account for capital gains tax on your index funds? this. No I did not. That makes the mortgage payoff ~20% more expensive, which is enough that I doubt it's worth it. Thanks for the fact-check. EDIT: not 20% total, I'm an idiot. 20% of whatever the change in value of the investment is. That's still a nontrivial chunk of money, but not quite as dire as the me of yesterday thought. TooMuchAbstraction fucked around with this message at 17:06 on Nov 12, 2019 |
|
#
?
Nov 12, 2019 05:35
|
|
|
But it also should be factored into the future return rate of your investment.
|
|
#
?
Nov 12, 2019 15:29
|
|
|
Motronic posted:None of have crystal balls. So don't tell anyone, but I actually have one; unfortunately, the view inside is really dim and the only thing that resolves are the words "this time it's different, just like the last time."
|
|
#
?
Nov 12, 2019 16:27
|
|
|
Motronic posted:None of have crystal balls Crystal balls may be bad with money https://twitter.com/meakoopa/status/1194062297284648960
|
|
#
?
Nov 12, 2019 17:58
|
|
|
If poo poo hits the fan, you lose your job, and you run out of cash on hand, you can always sell index funds in order to make your mortgage payments so you don't lose your house. Obviously this isn't ideal, but in a worst case scenario you probably would like to avoid foreclosure Edit: this is only if you're not paying off the entire mortgage. Not sure if you are or not, but even if you are, it's relevant to others that may consider the same question.
|
|
#
?
Nov 13, 2019 15:10
|
|
|
the issue is that your index fund value is probably negatively correlated with your odds of losing your job. your efund should cover singificant market based risk and allow you to cover your mortgage for a period of X this is why people don't advocate putting efunds in the market
|
|
#
?
Nov 13, 2019 15:27
|
|
|
Agreed, I'm talking about a scenario so bad that even a solid emergency fund isn't sufficient.
|
|
#
?
Nov 13, 2019 15:40
|
|
|
I think they sell insurance for those sorts of scenarios...
|
|
#
?
Nov 13, 2019 17:25
|
|
|
TooMuchAbstraction posted:My question basically amounts to: my analysis above feels a bit simplistic, so what am I missing? The benefits are low volatility “return”, improved monthly cash flow and peace of mind. The drawbacks are loss of liquidity, inability to claim mortgage deduction on taxes, and poor return compared to historic stock market. I treat my mortgage payoff as my “bond” allocation. So while I’m paying it off faster than scheduled, I don’t devote a lot of my portfolio to it. Loss of liquidity can be compensated with insurance and a HELOC.
|
|
#
?
Nov 13, 2019 19:47
|
|
|
My job also offers Hospital Indemnity, Critical Illness, Legal, and Accident coverages (separately) but they all seemed unnecessary when my job already gives me free LTD and STD plus I pay for the regular health insurances. Does anyone use these or think they have value? Feels like a cash grab to me.
|
|
#
?
Nov 14, 2019 15:51
|
|
|
Mad Wack posted:My job also offers Hospital Indemnity, Critical Illness, Legal, and Accident coverages (separately) but they all seemed unnecessary when my job already gives me free LTD and STD plus I pay for the regular health insurances. What is hospital indemnity? What is your field? If you have a propensity to cancer critical illness might be worth it, legal is almost certainly not, and if you do dangerous hobbies accident could be assuming they aren't excluded. LTD and term life are the big ones. I wouldn't get life insurance from your work though, it is almost certainly cheaper and better to get it on your own.
|
|
#
?
Nov 14, 2019 16:00
|
|
|
Mad Wack posted:My job also offers Hospital Indemnity, Critical Illness, Legal, and Accident coverages (separately) but they all seemed unnecessary when my job already gives me free LTD and STD plus I pay for the regular health insurances.
|
|
#
?
Nov 14, 2019 16:14
|
|
|
Mad Wack posted:My job also offers Hospital Indemnity, Critical Illness, Legal, and Accident coverages (separately) but they all seemed unnecessary when my job already gives me free LTD and STD plus I pay for the regular health insurances. I haven't looked into it much myself, so I appreciate the discussion here. My work has free (no cost to me) Life (1 x salary), AD&D (1 x salary), Business Travel Accident (2 x salary), STD (1 x salary), and LTD (1 x salary). Not sure how common this is. I don't have any dependents, so I figure this is sufficient for me for now. Maybe I should be worried about losing my job and having an accident before I have coverage from a new job. 
|
|
#
?
Nov 14, 2019 16:25
|
|
|
Who needs a job when I can just hit up Craigslist to get my STD?
|
|
#
?
Nov 14, 2019 17:16
|
|
|
 per paycheck for the one or two times a year that I go to the doctor, provided I actually remember that I have the account.E: Got FSA and HSA twisted in my head. C-Euro fucked around with this message at 21:58 on Nov 15, 2019 |
|
#
?
Nov 15, 2019 21:13
|
|
|
HSAs are good. I think you're confusing it with an FSA, which is less good but if you're in the right situation (predictable healthcare costs for things like prescriptions, medical supplies, etc) can work well.
|
|
#
?
Nov 15, 2019 21:24
|
|
|
HSAs are awesome, I recommend maxing one out after other tax advantaged savings (401k, IRA, etc.) are maxed out and emergency fund is taken care of. If you can afford it, don’t use it to pay for healthcare expenses. Invest it, save receipts, and pay yourself back later.
|
|
#
?
Nov 15, 2019 21:52
|
|
|
|
| # ? May 24, 2024 21:39 |
|
|
Goon hivemind definitely loves HSAs. They’re amazing. My family’s HSA balance is actually larger than my personal IRA balance. One might think, oh no, he hasn’t saved enough! But actually my HSA balance is just freakin huge. Also I have a lot of 6% student debt that I’m paying down instead of dumping into IRA stuff rn. DNK fucked around with this message at 21:57 on Nov 15, 2019 |
|
#
?
Nov 15, 2019 21:54
|
|
