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Sundae posted:
Yeah, these are often-overlooked things that get buried in the fine print... also to consider are coverage limitations. OP mentioned a therapist, so it'd be good to make sure that mental health stuff is covered by your plan of choice. The "Summary of Benefits and Coverage" is the document that SHOULD summarize all this. edit: Sundae posted:Normally I'd agree with this (I hate coinsurance), but that's a remarkably good HDHP all things considered. The numbers just don't line up in the low-deductible's favor on this one. I'm not sure I've ever seen a HDHP that didn't have coinsurance after the deductible. Rx stuff is typically copay, but I'm pretty sure every HDHP I've been on had a 20% coinsurance after deductible.
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Feb 18, 2020 22:12
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Low Plan: Annual premium - 2148 Deductible - 750 OOP max - 3000 Total without OOP - 2898 Total with OOP - 5898 High Plan: Annual premium - 936 Deductible - 2000 Funding - (750) OOP max - 4000 Total without OOP - 2186 Total with OOP - 6186 Even without including the tax savings of being able to contribute money to the HSA yourself, the HSA plan wins out if you're going to hit the deductible. In all of the following circumstances, the HDHP is better (notation is low vs. high): 1. You only pay the premium. (2148 vs. 936) 2. You hit the low plan deductible. (2898 vs. 936) 3. You hit the high plan deductible (2898 vs. 2186) 4. You hit the low plan OOP max. (5895 vs. 5186) The only situation where you don't immediately see the savings is when you hit the high plan OOP max, but if you factor in tax savings by using HSA contributions then that comes out ahead too. In other words, there's no situation where the HDHP is worse. Edit: Forgot to factor in the effect of co-insurance but I think the HDHP is still very strong. Hoodwinker fucked around with this message at 22:31 on Feb 18, 2020 |
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Feb 18, 2020 22:23
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cars are dumb to spend money on unless you really like cars they're dumb to spend money on if you really like cars too but at least you get something out of it
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Feb 18, 2020 23:35
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cheese eats mouse posted:I'd rather spend the cash and live some experiences, but that's part of my rebalancing I'm working on within myself (and part of the perspective of losing a friend who was 30). 30k+ would get you a nice trip around the world and you're still young enough to handle jet lag and the stresses of travel with ease. I'm 32 and active/physically fit, and starting to notice some aspects of aging. Nah, I want to get a dumb car that turns fuel in to noise. And maybe pick it up in Europe. KYOON GRIFFEY JR posted:cars are dumb to spend money on unless you really like cars Yup. And yup.
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Feb 18, 2020 23:40
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DaveSauce posted:I'm not sure I've ever seen a HDHP that didn't have coinsurance after the deductible. Rx stuff is typically copay, but I'm pretty sure every HDHP I've been on had a 20% coinsurance after deductible. Sorry - I meant on the PPO. You're right that HDHPs are almost always coinsurance after deductible. I tend to prefer standard insurance because I prefer "$35 after deductible" or "$150 straight cost" sorts of things, rather than "20% after deductible, which in this case worked out to your entire OOP anyway because lol American healthcare." Here's an example from (part of) mine:  I save $300 per year on family coverage if I get the HDHP, get taxed on my company's HSA contribution as normal income, have to do my HSA contributions post-tax for the purposes of state taxes, and then have triple the deductible and substantially larger OOP Maxes. Because of the differences in "100% after $$ copay" vs "100% after deductible," this actually turns into a pretty substantial difference for a family with moderate medical needs. Not visible on that screenshot (it's on page 3 of the doc), but for prescription coverage it ends up sucking too. $10 copay on all generics for the standard plan, and $10 copay after deductible on the HDHP for generics, with the HDHP plan also having a 20% coinsurance for non-generic drugs, after deductible, while the standard plan is "20% coinsurance up to a maximum of $25, no deductible" for prescription coverage. Since it's basically impossible to figure out what a medical procedure or visit is going to cost, I prefer a "it will be $250" to anything involving percentage of cost. (Also, my HDHP sucks rear end compared to my standard plan, so that makes it really easy.)
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Feb 18, 2020 23:48
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Residency Evil posted:Nah, I want to get a dumb car that turns fuel in to noise. And maybe pick it up in Europe. Me and my wife have seriously considered that program but I just can’t bring myself to pay for a new car. Though I have talked to someone who did it and she said it made it all worth it, and now they have an irrational emotional attachement to that V60 which means they are probably gonna keep it until they are too old to drive.
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Feb 18, 2020 23:54
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Animal posted:Me and my wife have seriously considered that program but I just can’t bring myself to pay for a new car. Though I have talked to someone who did it and she said it made it all worth it, and now they have an irrational emotional attachement to that V60 which means they are probably gonna keep it until they are too old to drive. good luck keeping it on the road
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Feb 19, 2020 02:34
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KYOON GRIFFEY JR posted:good luck keeping it on the road I have my own doubts about the long term reliability of a turbo-supercharged 4 cylinder putting out over 250hp.
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Feb 19, 2020 02:36
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Animal posted:I have my own doubts about the long term reliability of a turbo-supercharged 4 cylinder putting out over 250hp. What do you mean, that car will last you a lifetime
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Feb 19, 2020 03:28
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please knock Mom! posted:What do you mean, that car will last you a lifetime 
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Feb 19, 2020 04:42
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Given we are in post-rationality 2020 hellscape, take the $30k for a car, put it into a certain car stock, then buy multiple $30k cars in a couple months or lose everything to the grift
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Feb 19, 2020 16:22
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Democratic Pirate posted:Given we are in post-rationality 2020 hellscape, take the $30k for a car, put it into a certain car stock, then buy multiple $30k cars in a couple months or lose everything to the grift I like this plan. You'll know you earned it too.
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Feb 19, 2020 17:26
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Democratic Pirate posted:Given we are in post-rationality 2020 hellscape, take the $30k for a car, put it into a certain car stock, then buy multiple $30k cars in a couple months or lose everything to the grift Oh God Dave Ramsey was right after all
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Feb 19, 2020 18:24
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Made my pre-tax % contribution based on my post-tax income  gdi why can you only make one election per day!!
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Feb 19, 2020 20:21
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Xguard86 posted:I like this plan. You'll know you earned it too.
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Feb 19, 2020 21:40
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dexter6 posted:Done For your sake I hope this is true.
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Feb 19, 2020 23:08
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Inner Light posted:For your sake I hope this is true.
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Feb 19, 2020 23:24
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dexter6 posted:VTSAX counts right? Close enough, welcome to the ride. https://www.youtube.com/watch?v=gy1B3agGNxw Inner Light fucked around with this message at 00:21 on Feb 20, 2020 |
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Feb 20, 2020 00:19
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Principal’s retirement calculator thing complains when I do X% pre-tax 401k to get me to 19.5k for the year compared to the post-tax/Roth % I had earlier. They both contributed 19.5k to the 401k in the end - how come it complains for pre-tax?
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Feb 20, 2020 17:57
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What do you mean by complains?
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Feb 20, 2020 18:20
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Pollyanna posted:Principal’s retirement calculator thing complains when I do X% pre-tax 401k to get me to 19.5k for the year compared to the post-tax/Roth % I had earlier. They both contributed 19.5k to the 401k in the end - how come it complains for pre-tax?
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Feb 20, 2020 18:38
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I mean, it doesn’t error, it just says I’ll have less money in retirement. I assume that 19.5k pre-tax to a 401k is less money in the end than 19.5 post-tax?
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Feb 20, 2020 18:39
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Pollyanna posted:I mean, it doesn’t error, it just says I’ll have less money in retirement. I assume that 19.5k pre-tax to a 401k is less money in the end than 19.5 post-tax? If your marginal rate is 22% then the numbers look like this: Pre-tax: $19,500 * 0.78 = $15,210 spendable money Post-tax: $19,500 * 1.00 = $19,500 spendable money But since with the pre-tax you have $4,290 in tax savings you can invest, you can end up pretty close to even by doing exactly that. The slightly shorter answer is that basically every online calculator that isn't based around FIRE calculations is going to be boomer bullshit that's lying to you so you'll buy their advisory services. Hoodwinker fucked around with this message at 18:43 on Feb 20, 2020 |
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Feb 20, 2020 18:40
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Pollyanna posted:Principal’s retirement calculator thing complains when I do X% pre-tax 401k to get me to 19.5k for the year compared to the post-tax/Roth % I had earlier. They both contributed 19.5k to the 401k in the end - how come it complains for pre-tax? ING's calculator would complain that the % you chose is too low, even if it's going to max you out. When you went to up it it would then error out saying it would be too high and you would go over. If you're below 10% it's probably just chiding you for making too much money. Let's say you make $225k and set it to 9%, "omg! You're under 10%! You will be eating cat food in retirement! You experts suggest 10%!" then you go to set it to 10% and it's like "that's too high." Their system was dumb. It was also 10 years ago give or take, so I hope they've improved it by now.
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Feb 20, 2020 18:44
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Okay, good to know. I had a feeling the calculator was wrong, but I wanted to double-check. Just moved my non-emergency money from BofA to Vanguard. Will probably invest it in an Admiral mutual fund, maybe VFIAX. Hopefully it’ll do something instead of just rot in BofA.
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Feb 20, 2020 18:53
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Pollyanna posted:Okay, good to know. I had a feeling the calculator was wrong, but I wanted to double-check.  And you can feel marginally better about vanguard, they are a co-op, so they are in theory in this with you. It's why they've always been so low fee. Not saying the stuff you're investing in isn't bad in your opinion, but Vanguard itself is pretty neutral, and objectively less evil than BofA.
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Feb 20, 2020 18:56
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Also, today I learned that “financial independence“ doesn’t mean “living at least partially on your parents’/caretakers’ money”  NGL financial independence sounds real nice.H110Hawk posted:
Vanguard seems cool, yeah. I’m alright with them, if “we’re in this with you” holds true.
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Feb 20, 2020 19:16
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Pollyanna posted:Also, today I learned that “financial independence“ doesn’t mean “living at least partially on your parents’/caretakers’ money” Vanguard is great for what you're looking for. You made a solid decision. Never put savings in BofA. The SP500 returned 29% in 2019. BofA pays savings deposits about .03% / year.
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Feb 20, 2020 20:02
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Pollyanna posted:I mean, it doesn’t error, it just says I’ll have less money in retirement. I assume that 19.5k pre-tax to a 401k is less money in the end than 19.5 post-tax? Exactly. Post-tax money can be thought of as concentrated money, whereas pre-tax money is diluted money, since it has the chunk that's going to end up being taken as taxes still mixed into it. But this is still only looking at one aspect of the whole picture, as Pollyanna and Hoodwinker said.
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Feb 20, 2020 20:24
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I'm taking a guys trip to Nashville this spring, which I will dip into my "fun money" brokerage account to pay for. Planning on taking out about $1,500 to cover the trip. The broker I use for this account is M1, which sells its share on a "first in, first out" basis. How would I go about estimating the tax implications of the sale?
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Feb 20, 2020 22:25
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Sock The Great posted:I'm taking a guys trip to Nashville this spring, which I will dip into my "fun money" brokerage account to pay for. Planning on taking out about $1,500 to cover the trip. The broker I use for this account is M1, which sells its share on a "first in, first out" basis. How would I go about estimating the tax implications of the sale? Did you have $1500 in the account for more than a year? That’s long term capital gains.
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Feb 20, 2020 22:34
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You will owe either short-term or long-term capital gains taxes on any stocks you sell at a profit. The brokerage will send you a tax form at the end of the year (and also report to the IRS) which accounts for this for you, but you should also keep your own records. If you have stocks bought at different times for different prices, you get to choose which batch of stocks you sell (but, if you then re-buy the same stocks shortly thereafter, that's a "wash sale" and look out for the IRS's wash sale rules). If you have stocks you want to get rid of that made a loss, you can use realized losses to offset realized gains and lower your tax that way. e. Note that a "first in first out" accounting of batches is usually the best approach, since it allows you to more often have the (lower) long-term capital gains taxes rather than the (higher) short-term capital gains taxes applied. But, IIRC there might be cases where you'd prefer to take a loss on a short-term batch rather than a gain on a long-term batch for example, so your brokerage should allow you to do something other than that default. e2. this is the long-term investing and retirement thread, and the posters over in the short-term stock gambling thread might know a lot more about tax loss harvesting and wash sale rules etc. You might also want to check the income taxes thread. Leperflesh fucked around with this message at 03:50 on Feb 21, 2020 |
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Feb 20, 2020 22:38
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Leperflesh posted:e. Note that a "last in first out" accounting of batches is usually the best approach, since it allows you to more often have the (lower) long-term capital gains taxes rather than the (higher) short-term capital gains taxes applied. But, IIRC there might be cases where you'd prefer to take a loss on a short-term batch rather than a gain on a long-term batch for example, so your brokerage should allow you to do something other than that default.
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Feb 21, 2020 00:26
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Guessing that's a typo? First in first out for long term gains?
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Feb 21, 2020 00:34
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Sock The Great posted:I'm taking a guys trip to Nashville this spring, which I will dip into my "fun money" brokerage account to pay for. Planning on taking out about $1,500 to cover the trip. The broker I use for this account is M1, which sells its share on a "first in, first out" basis. How would I go about estimating the tax implications of the sale? Have you held the lots or longer than a year? If so it's 15% LTCG + state taxes assuming you earn more than $40k or $80k/year (single/married). If it's under a year, it's STCG aka your marginal rate. Look it up in the tax tables. This is only on the gains. So if you bought $1250 in whatever a year and a day ago, and now it's worth $1500, then it's ($1500 - $1250) = $250 * 15% = $37.50 in taxes. Short term and you're in the 22% bracket? $55.
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Feb 21, 2020 00:35
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nelson posted:Last in, first out will more often result in short term gains or losses (“last in” means the most recently purchased). typo Xguard86 posted:Guessing that's a typo? yes sorry I'll fix it in my post too
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Feb 21, 2020 03:50
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Lol in school I got FIFO and LIFO confused constantly. I had it explained multiple times by professors, classmates etc. and never really got it. This was accounting where I think my issue was it all seemed like borderline fraud. Easier to understand with stock.
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Feb 21, 2020 05:22
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Xguard86 posted:Lol in school I got FIFO and LIFO confused constantly. I had it explained multiple times by professors, classmates etc. and never really got it. For the computer scientists out there: LIFO = Stack FIFO = Queue
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Feb 21, 2020 10:18
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What kind of asset allocation are you guys running in Hell world 2020, and does anyone have reasoning behind it? Some coworkers who I know are planning early retirement were ridiculing the idea of owning anything but domestic equities. I was surprised and asked for more info, and yes they are literally 100% S&P index in all accounts, retirement & taxable. I've been on auto-pilot using Vanguard target retirement funds and Wealthfront asset allocation with 10/10 risk configured, and even those are holding double digit percentages of bonds. I haven't thought too hard about it but also the heavy foreign and emerging market allocation that Wealthfront likes to run sure hasn't done me any favors.
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Feb 21, 2020 13:24
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Not gonna lie, it’s a bit alarming to see a large chunk of your paycheck missing from your bank statement, even if it is going to your retirement now. 
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Feb 21, 2020 13:54
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