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Antillie posted:Just be sure to get the home inspected before you buy it. Then again, my inspector missed the fact that the garbage disposal under the sink was hooked up wrong and poured water into the cabinet whenever you ran the dishwasher. Nothing some towels, a quick call to a local plumber, and $500 couldn't fix. Still a pain in the rear end though. Yes get a home inspected, but be aware that home inspections are super cursory and can and will miss all sorts of stuff all the time. Just because a house passes inspection doesn’t mean there’s no issues, and home inspections really cannot find major lurking issues since an inspector cannot move anything or open anything up. No matter what, plan on having a sizable maintenance and repair budget for all the things that will happen or be discovered in your first couple years of ownership. And beyond. Home maintenance and repairs tend to be lumpy and come in waves, not just a nice $X/mo like rent. It’ll be nearly zero for a while and then bam $15k for some big issue that needs addressed now.
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Sep 5, 2023 20:13
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Subvisual Haze posted:Life is a series of marshmallow tests but maybe the people who immediately eat the marshmallow have their own wisdom. What if the promised second marshmallow was a lie? In that case eating the marshmallow immediately was the smart choice. This is basically what runs through my head when I sit staring at the screen to elect how much of my paycheck to sock away in a 401k after maxing employer match. (Which is where I am in that giant flowchart of responsible financial tactics, but I think it's something everybody hits once they're out of crisis mode and start saving.) You could be hit by a bus tomorrow. On your death bed, would you rather have put that extra few percent pre-tax in a retirement account or gone on a trip with your family to the beach?
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Sep 5, 2023 20:55
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Mr Newsman posted:Why wouldn't you just be able to rent in the same school district? School districts for elementary schools are tiny and our kids are separated by 3 years (our first kid enters elementary school next year, for context). So even if we manage to maintain a rental in the same tiny zone for the duration that kid #1 is in elementary school, our next one will be entering right then and we risk moving #2 between schools during a move even if the move keeps #1 in the same middle school, unless, again, we stick within this tiny area. Obviously, things get easier as they get older because the area covered by a single school expands, but its not as simple to manage as you might think when we're talking about a large population-dense city. Our city's public school system has over 120 elementary schools in it so you dont have to move far to cross a boundary.
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Sep 5, 2023 21:05
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Mr Newsman posted:Why wouldn't you just be able to rent in the same school district? this is a matter of some considerable debate but a lot of studies have found that school moves are pretty heavily correlated with lower performance post-move
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Sep 5, 2023 21:06
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quote is not edit but I'll add here that I agree about the damaging effects switching schools can have CompeAnansi fucked around with this message at 21:52 on Sep 5, 2023 |
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Sep 5, 2023 21:06
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Chad Sexington posted:This is basically what runs through my head when I sit staring at the screen to elect how much of my paycheck to sock away in a 401k after maxing employer match. (Which is where I am in that giant flowchart of responsible financial tactics, but I think it's something everybody hits once they're out of crisis mode and start saving.) depends on if you're on your death bed destitute because you didn't save enough money for retirement
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Sep 5, 2023 21:07
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*on my deathbed, in an old conversion van* I'm glad I bought all of those sick video games
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Sep 5, 2023 21:29
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death comes for us all
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Sep 5, 2023 21:37
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My family would probably have more fun at the beach without me after the bus incident.
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Sep 5, 2023 21:40
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Valicious posted:I’m looking for a good iOS app that’ll let me enter all my info across multiple accounts, then show data on the portfolio as a whole. (Preferably with a handy pie chart) I have a lot of distaste for personal capital but it... basically does this unless you very specifically need to see from the top level what % of your overall portfolio a fund is? That's one of the reasons I still put up with their absolute trash-tier support. Just go to Investing > Allocation. The top level is % by asset type instead of by fund (which seems generally more useful anyway), but if you click in to an asset type you can see the breakdown of what % of your Large Cap Growth US Stock or whatever is in what fund.
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Sep 5, 2023 23:27
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so i suddenly ended up a large amount of money i wasnt planning on getting. i currently have two bank accounts and i need to divvy up the money so that its FDIC insured while i look out for a house. whats the safest way of doing this? just open more banking accounts?? is this the right thread to ask. idk.
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Sep 6, 2023 00:36
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anime was right posted:so i suddenly ended up a large amount of money i wasnt planning on getting. i currently have two bank accounts and i need to divvy up the money so that its FDIC insured while i look out for a house. whats the safest way of doing this? just open more banking accounts?? FDIC insurance works per depositor per bank. So having two $250k accounts at the same bank leaves you only half covered. This can get complicated pretty quick if you have a large amount of money that you want to have covered. Most brokers offer cash management accounts that automatically spread your money across multiple banks in such a way that it will all be FDIC insured. If you are willing to forgo FDIC insurance you can look into government money market funds like SPAXX or VMFXX. SGOV is also a popular ETF to park cash in for the purposes of emergency funds and general savings. Although these options forgo FDIC coverage they are generally considered to be very safe and highly liquid. They also tend to pay as much or more than a high yield savings account. Antillie fucked around with this message at 00:48 on Sep 6, 2023 |
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Sep 6, 2023 00:43
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yeah my current accounts are in two different banks. ill look into a cash management option with fidelity or something. thanks.
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Sep 6, 2023 00:48
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Also, while it makes sense to talk to a tax preparer or accountant, please beware that you are now a target of financial advisors, many of whom are charlantans and the large majority of whom charge what might sound innocuous like 1% AUM but are in the long run completely exorbitant fees, and their main job is not to pick safe secure investments for you, it's to extract fees from you. Please come back here with detailed questions if you decide you need advice about how to reasonably safely invest your money for the long term. The OP is a good place to start.
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Sep 6, 2023 01:16
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anime was right posted:yeah my current accounts are in two different banks. ill look into a cash management option with fidelity or something. thanks. Fidelity should also auto-roll treasuries for you for free, which is nice. Its currently a very good time for risk-free returns on an all cash portfolio. If you think you need the money in less than a month or so, maybe not
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Sep 6, 2023 01:49
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I have a rollover IRA with Fidelity from an old 401k. I want to move that to my current employer 401k to clear the way for making a backdoor Roth IRA contribution. My current employer 401k allows this. I am almost positive this is the case, but there's nothing taxable about this transaction, since it's just one pre-tax account to another, correct? It will just require requesting a check from Fidelity and then sending it on to my current 401k provider?
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Sep 6, 2023 14:51
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caluki posted:I have a rollover IRA with Fidelity from an old 401k. I want to move that to my current employer 401k to clear the way for making a backdoor Roth IRA contribution. My current employer 401k allows this. I am almost positive this is the case, but there's nothing taxable about this transaction, since it's just one pre-tax account to another, correct? It will just require requesting a check from Fidelity and then sending it on to my current 401k provider?
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Sep 6, 2023 15:02
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Someone remind me what a good/bad expense ratio is on retirement funds? I checked on an old 401k from a previous job and the gross/net expense ratios on the biggest investments are in the 0.4-0.6% range. Meanwhile my current job's Fidelity target date fund is at 0.38% while the individual Fidelity index funds (after I started building my own blend) are all below 0.06%. I feel like I should just rollover unless there's a reason to have a 401k you're no longer contributing to? I remember trying to rollover when I left that job and the company rep talked me out of it with some blurb, but they were probably just trying to keep the money
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Sep 6, 2023 15:38
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caluki posted:I have a rollover IRA with Fidelity from an old 401k. I want to move that to my current employer 401k to clear the way for making a backdoor Roth IRA contribution. My current employer 401k allows this. I am almost positive this is the case, but there's nothing taxable about this transaction, since it's just one pre-tax account to another, correct? It will just require requesting a check from Fidelity and then sending it on to my current 401k provider? It's best if you can arrange a custodian to custodian transfer where Fidelity sends the check directly to your 401k rather than to you. Less chance of making a costly mistake and owing taxes and penalties that way.
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Sep 6, 2023 15:46
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Vesna posted:Someone remind me what a good/bad expense ratio is on retirement funds? I checked on an old 401k from a previous job and the gross/net expense ratios on the biggest investments are in the 0.4-0.6% range. Meanwhile my current job's Fidelity target date fund is at 0.38% while the individual Fidelity index funds (after I started building my own blend) are all below 0.06%. I feel like I should just rollover unless there's a reason to have a 401k you're no longer contributing to? I remember trying to rollover when I left that job and the company rep talked me out of it with some blurb, but they were probably just trying to keep the money 0.4% is definitely bad for the kind of simple index funds that this thread recommends - that 0.06% is more what you want - but 401k options aren't always great, so they might be the best you can do with that account. (This would be a reason to rollover, but there are reasons not to, as well.) As for the Fidelity TDF: what's the symbol? Fidelity has cheap index TDFs and expensive active TDFs but the former have ERs around 0.12% and the latter have ERs around 0.75% so I'm not sure what you've got.
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Sep 6, 2023 15:47
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raminasi posted:0.4% is definitely bad for the kind of simple index funds that this thread recommends - that 0.06% is more what you want - but 401k options aren't always great, so they might be the best you can do with that account. (This would be a reason to rollover, but there are reasons not to, as well.) The 401k for my current job is with Fidelity, and almost all the money is in a mix of FXAIX/FSGGX/FSMAX/FXNAX. I have about 2% of my total Fidelity investment in RFITX just because that was the default setting when I got hired and it took me a couple months to build my own mix. So my investments in my current employer's Fidelity plan are already almost all in the 0.015-0.06% gross/net ratio. It's the investments in my former employer's (non-Fidelity) 401k that are all sitting at the 0.4-0.6% range, so I feel like it'd make sense to roll them over to my current employer's Fidelity plan and shove them into the same mix?
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Sep 6, 2023 15:57
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Vesna posted:The 401k for my current job is with Fidelity, and almost all the money is in a mix of FXAIX/FSGGX/FSMAX/FXNAX. I have about 2% of my total Fidelity investment in RFITX just because that was the default setting when I got hired and it took me a couple months to build my own mix. So my investments in my current employer's Fidelity plan are already almost all in the 0.015-0.06% gross/net ratio. Most likely. One other thing you can compare, if you're willing to shovel through the minutiae of plan documents, is the record-keeping fee charged by each manager to run the plan. It's mathematically possible for your current plan's record-keeping fee to be high enough that overall you're paying more even with the cheaper funds, although I'd be very surprised if it were the case. But you can double-check if you want to be maximally diligent.
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Sep 6, 2023 16:02
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raminasi posted:record-keeping fee this is actually a thing, isnt it 401ks seem to be a deal where you get a higher contribution limit in exchange for the financial industry getting to grift you and or your employer a little. Or a lot. None of these weird fees exist with the Simple IRA I have, but for reasons, these plans are only available to employers with 100 employees or less. Looking at Vanguard's page, a couple nice things coming next year: john c bogle posted:Beginning with tax year 2024, SECURE 2.0 allows an employer to make additional contributions to each employee of the plan in a uniform manner, provided that the contribution may not exceed the lesser of up to 10% of compensation or $5,000 (indexed for inflation). Employers are also permitted to treat student loan payments as elective deferrals for purposes of matching contributions. If I read that right it sounds like you can get an additional $5k year in employer contributions "in a uniform manner" (i read this as a bonus payment), which is a huge increase. Roth also nice to have. edit: A non-elective contribution made in a uniform manner is very clear, senator the senate posted:Section 116, Allow additional nonelective contributions to SIMPLE plans. Current law requires employers with SIMPLE plans to make employer contributions to employees of either 2 drk fucked around with this message at 16:38 on Sep 6, 2023 |
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Sep 6, 2023 16:27
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Actually a lot of interesting stuff in Secure 2.0: https://www.finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf
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Sep 6, 2023 16:45
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Roth emergency savings account? One more for tax advantaged account collectorssecure two posted:Section 127 provides employers the option to offer to their non-highly compensated employees pension-linked emergency savings accounts. Employers may automatically opt employees into these accounts at no more than 3 percent of their salary, and the portion of an account attributable to the employee’s contribution is capped at $2,500 (or lower as set by the employer). Once the cap is reached, the additional contributions can be directed to the employee’s Roth defined contribution plan (if they have one) or stopped until the balance attributable to contributions falls below the cap. Contributions are made on a Roth-like basis and are treated as elective deferrals for purposes of retirement matching contributions with an annual matching cap set at the maximum account balance – i.e., $2,500 or lower as set by the plan sponsor. The first four withdrawals from the account each plan year may not be subject to any fees or charges solely on the basis of such withdrawals. At separation from service, employees may take their emergency savings accounts as cash or roll it into their Roth defined contribution plan (if they have one) or IRA.
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Sep 6, 2023 16:50
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drk posted:Roth emergency savings account? One more for tax advantaged account collectors Sounds like they're trying really hard to get employees contributing something/anything to retirement plans. From another site: quote:The savings contributions by the employee count for the purposes of any employer match in the plan, up to the same dollar amount as the account balance limit ($2,500 or less as set by the plan sponsor). These matching dollars must be directed to the retirement account within the plan, not the savings account.
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Sep 6, 2023 18:11
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SamDabbers posted:It's best if you can arrange a custodian to custodian transfer where Fidelity sends the check directly to your 401k rather than to you. Less chance of making a costly mistake and owing taxes and penalties that way. it's a pain in the rear end dealing with checks and of course my old 401k sent two of them directly to my house. rip
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Sep 6, 2023 21:19
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precious
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drk posted:this is actually a thing, isnt it Yeah basically because employees don't have a choice in their 401k provider. Employers can shop around, but maybe the HR person in charge of that doesn't give a poo poo or is easily persuaded by a nice dinner and sports tickets from the 401k sales rep. My last employer did give a poo poo and negotiated insanely low fees: $18 a year and access to all the ultra ultra low fee vanguard admiral funds that you normally gotta have a million aum to buy. My current employer, eh not so much. It's not awful but it's still objectively worse fee wise.
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Sep 6, 2023 21:55
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Vesna posted:It's the investments in my former employer's (non-Fidelity) 401k that are all sitting at the 0.4-0.6% range, so I feel like it'd make sense to roll them over to my current employer's Fidelity plan and shove them into the same mix? 
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Sep 7, 2023 08:43
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Small White Dragon posted:We have a 401k with Fidelity now and most of their fund options' fees are in this range. My own workplace has like 30 options through Fidelity, but I only use 4 index funds that are all in the <0.05% ER range
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Sep 7, 2023 10:47
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Subvisual Haze posted:As long as you have a couple cheap index funds available whatever other fluff options are also available don't matter. Same here. It’s a bummer though that of course it is setup where you can’t easily tell what the expense ratios are when picking which funds you want. All the target date funds in my work 401k (managed by Fidelity) are 0.6% ish. There are two each of small cap, large cap and international. The managed one is 0.6%. The index is 0.05%. The expense ratios you can only see when clicking each individual mutual fund to see more info. So yeah, a lot of people go “oh target date funds, that makes sense , it’ll do it for me” and end up accidentally paying more than needed with a higher expense ratio.
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Sep 7, 2023 11:49
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Based on my previous question about choosing my 401k funds, it seems like the best option available for me for my HSA is VFIAX. The Vanguard page for that fund says the minimum investment is $3000. Does this apply to me or is that the price minimum for “retail” investors? Just wondering cause IIRC the maximum HSA contribution for 2023 is $3800 and my HSA will only allow me to invest the excess of $1000. I started the job late this year so I won’t max out the HSA, but even if I could I’d still be short of the $3000 minimum. E: Also, is the only way to get pre-taxed money from my payroll into an HSA is to use the HSA my company offers? Like if I opened an HSA with idk Fidelity for example, I’d only be able to put in post-tax money? Boris Galerkin fucked around with this message at 12:31 on Sep 7, 2023 |
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Sep 7, 2023 12:25
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Boris Galerkin posted:E: Also, is the only way to get pre-taxed money from my payroll into an HSA is to use the HSA my company offers? Like if I opened an HSA with idk Fidelity for example, I’d only be able to put in post-tax money? I'm pretty sure if you directly fund a different HSA with your own post-tax dollars, you would be able to claim those contributions as deductions from your end of year Federal and potentially State taxes. So you would get those taxes refunded, just with a delay until tax filing. The SS/Medicare taxes are lost though. Bogleheads wiki does have this interesting note though: quote:You are able to move money between HSA custodians through direct rollovers and trustee to trustee transfers - see IRS Pub. 969 page 6. The rules are exactly the same as IRA Rollovers and Transfers. You may want to do this annually if you contribute to a plan through your employer's payroll deduction to gain the social security and medicare payroll tax exemption, but you don't want to leave the funds there long-term if the investment options are not good. The HSA custodian(s) may charge a fee for a trustee-to-trustee transfer; direct rollovers can usually be done without a fee.
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Sep 7, 2023 14:26
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Subvisual Haze posted:Bogleheads wiki does have this interesting note though: Yeah I’ve done this, but be warned that the source company is incentivized to make the process as painful as possible. One pitfall to be aware of is that if you zero the account balance they might close the account which could cause problems the next time a payroll deduction contribution comes in.
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Sep 7, 2023 14:33
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I do a transfer from my employer HSA to Fidelity quarterly, initiating it on the Fidelity website. Fidelity just handles everything and a week or two later the funds are available to trade. The employer account charges a fee to do a full transfer and close the account so I leave $10 in there and they haven't charged me any fees. YMMV depending on the custodian though.
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Sep 7, 2023 14:38
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Lazy_Liberal posted:it's a pain in the rear end dealing with checks and of course my old 401k sent two of them directly to my house. rip Yeah unfortunately it looks like I have to deal with a check, which seems odd since both providers are huge (Fidelity->ADP). And I have to receive it directly and then mail it on...
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Sep 7, 2023 15:25
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Subvisual Haze posted:I believe so. Contributing to HSA directly from payroll lets you avoid Fed/State and SS/Medicare taxes on those contributions immediately. You are restricted to your workplace's chosen HSA provider though. My work has it set up where I just give them the routing info for my personal HSA and they make the contributions directly. It works out great, they even make the contributions work out so it hits the limit at the end of the year.
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Sep 7, 2023 16:04
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Subvisual Haze posted:The SS/Medicare taxes are lost though. Don't you get something for those dollars though? So not entirely lost. Depending on inflection points or whatever
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Sep 7, 2023 22:16
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The only reason I kinda considered opening my own HSA account is purely because the website for the account my employer opened is absolute dogshit. But I mean, I shouldn’t ever have to poke around it much so I guess it’s whatever and not worth the hassle. I’ll revisit this in the future if/when I change jobs and have another employer sponsored HSA account. I’d still like the answer to this though: Boris Galerkin posted:Based on my previous question about choosing my 401k funds, it seems like the best option available for me for my HSA is VFIAX. The Vanguard page for that fund says the minimum investment is $3000. Does this apply to me or is that the price minimum for “retail” investors? Just wondering cause IIRC the maximum HSA contribution for 2023 is $3800 and my HSA will only allow me to invest the excess of $1000. I started the job late this year so I won’t max out the HSA, but even if I could I’d still be short of the $3000 minimum.
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Sep 7, 2023 23:46
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No one can tell you the answer to that, the answer to that is within your HSA and whatever they allow you to invest in. If they have VFIAX available and you can buy it, it doesn't matter what Vanguard's website says.
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Sep 7, 2023 23:49
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