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ChadSexington posted:Apologies if this question has already been answered - this thread is pretty massive. You should compare the options that you have in your new 401k to the options you would have in at Vanguard in a personal account. If the expense ratios and funds in the new employer 401k are better than Vanguard then rollover into that, otherwise roll it over into a personal account. Also someone else might have more information, but I believe you can rollover the 401k into a Roth IRA if you wish, though that does require that you pay taxes on it.
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Mar 11, 2013 01:47
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I believe insurance plans are now required to have out of pocket maximums per year and no life time caps so your total potential expenditure per year should be known.
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Oct 6, 2013 17:34
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80k posted:But you can just keep your receipt and reimburse yourself later. If you have the funds to pay from your taxable account, the timing of reimbursing yourself is better the longer you wait. Either way, you pay with pretax dollars. If you don't max out your 401k then by doing what Dik Hz said you essentially receive tax free income while still maintaining the same amount in your investment accounts except that the money is in the 401k account instead of the HSA.
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Oct 30, 2013 21:32
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I don't believe it's currently possible to not be able to invest in a ROTH IRA, because if you're over the income cap you can just a loophole to convert a normal IRA to a ROTH.
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Oct 30, 2013 22:58
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80k posted:If that is the final conclusion and you prefer a higher 401k or Roth account due to investment options or fees, then i agree. But there was some faulty logic along the way. The "you can't beat the 25% savings by paying medical costs with pretax dollars..." comment has no relevance to the idea of keeping money in your HSA, and paying with taxable dollars and reimbursing yourself later, regardless of whether or not you max your 401k or Roth or not. If you can still contribute to your 401k then you avoid tax on your normal income for the amount of the expense. Quick example, if you have a 1k medical expense, you pull 1k from the HSA which is tax free and then divert 1k from your paycheck into your 401k which is also tax free and thus you avoid paying taxes on 1k of your normal income and the total amount in your investment accounts stays the same. Since the distributions of the HSA can be taken any time after they occur you can still delay this so you can probably optimize more based on your future tax rate and 401k contributions.
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Oct 31, 2013 00:20
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80k posted:But your total amount invested does not stay the same. 1k in your 401k is worth less than 1k in an HSA that has receipts to ensure tax free withdrawal. That 1k in the 401k has a future tax bill associated with it. By your logic, why would anyone do a Roth, since a traditional can give you the same amount in your investment accounts? The reason is the same. Maybe I'm just confusing myself, but if you account for the fact that you can contribute more into the 401k than you would need for income don't you come out on top. This does assume that the growth of the account will be withdrawn at 65 for something over than medical expenses which may not be a valid assumption. Example if that didn't make sense: 1k medical expense and assumed tax rate is 20% Option A: HSA has 1k in it and grows at 5% for 10 years for a total of $1628.90 of which $628.90 is taxable at say 20% so final total is $1503.11 Option B: Take 1k out of the HSA and contribute $1250 to 401k, $1250 is equal to $1000 post tax, and once again 5% over 10 years for a total of $2036.11 of which all is taxable for a final total of $1628.90.
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Oct 31, 2013 01:11
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Popete posted:Yeah I just punched in $55k as my income from W2 on the H&R tax return calculator, single, no dependents and that's the number it spit out. Who knows how accurate that is. Are you sure you aren't mistaking the amount of taxes you would owe? I just plugged 55k and single into a tax calc and it shows that you should owe 7.1k in taxes over the year. Regardless you can change the number of dependents to lower the amount of taxes you pay each paycheck if you want to get the money over the course of the year instead of as a tax return.
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Nov 10, 2013 15:38
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The problem isn't that he didn't answer your question, he did. The problem is that the question you asked doesn't actually get you to a budget. You say this, "Maybe $300 is an estimate of what we should spend, but $200 is what we're going to spend.", but you're entirely leaving out how you got to the $200 number which is the important part. I think this approach is a little backwards since it may make more sense for most people to decide a value in say January and then save that amount over the year. Ignoring that, I think you can start with what you want to spend and then you need to ask what can you spend. If those numbers aren't the same, then you need to resolve them either by reducing the amount you want to spend or by moving money from some non-essential budget item. I'm also not sure if I'm reading to much into a short post, but one aspect of this confusion might be that it sounds like your Christmas budget is separate from your normal budget. This should not be the case, you make X in a month or year and you budget it out including Christmas along with everything else. Thus if you want to spend $300 for Christmas, the rest of your budget items need add up to X - $300.
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Dec 9, 2013 02:22
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Grumpwagon posted:I have a smallish amount of money (not sure of the exact balance, but more than $5.5k, less than $11k) in a regular, non-tax advantaged account that was a gift. I'd like to add that to my own IRA accounts at vanguard before April, so I can roll it all over at once, since it's definitely more than 1 year's contribution max. I have both a Roth IRA and a rollover IRA already established there. Your money in a normal brokerage account is no different than if you had cash and the same restrictions apply to it. You can use it to contribute up to the maximum, $5.5k, to either an IRA or a Roth IRA. The difference, as I think you understand, is that for the Roth you pay taxes on your contributions, but not on the withdrawal and vice versa for a normal IRA. If you expect to move to a higher tax bracket when you retire then the Roth is generally recommended.
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Feb 10, 2014 16:26
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I would max out the HSA over the 401k unless the investment options are ridiculously bad. HSA is essentially tax free money since it's pretty much guaranteed that at some point in your life there are going to be medical expenses.
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Mar 4, 2014 19:47
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It seems like a large risk, if you don't pay it off you owe interest for the entire period, for little gain, access to more money for X months which I guess you could invest.
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Mar 5, 2014 18:38
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semicolonsrock posted:I'm not sure where to ask this, but where would a good place be (here or offsite) to learn more about renting in cities? E.g. a neighborhood guide, or something like that. Moving places sight unseen is sorta hard and I don't want to end up stuck somewhere I'll hate or which is too expensive. Maybe I'm missing something, but why would you ever move sight unseen? You have multiple options to avoid signing a year long place before you get a feel for the area from visiting beforehand, to staying in a hotel, to finding temporary housing or a short lease.
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Mar 13, 2014 15:42
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Rurutia posted:Housing is one of those things where diminishing returns happen very fast. 30% rule for high income earners is just silly and is more of, sorry if 30% means a hovel then yes, you have to live in a hovel. I would not be at all surprised if some millionaires spent 30% of their income on housing as some people want to have a ton of houses all over the world. The 30% is just a guideline, regardless of how much you spend on housing, the amount you spend needs to be balanced with your other spending and if you want to spend a lot on housing then you probably will need to make sacrifices in other areas.
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May 30, 2014 21:06
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The amount of extra interest you'll have to pay for keeping a couple grand as an emergency fund is pretty small, something like $120 if it took a year longer.
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Oct 2, 2014 21:12
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If you don't plan on needing the money for 5+ years then invest it in a taxable account. Also, I'm pretty sure that your employer doesn't need to offer a HSA for you to use one, you just need to be on health insurance that qualifies.
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Oct 5, 2014 15:53
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Chas McGill posted:-I have about £10k that I want to invest safely. I'm somewhat concerned about not having easy access to that money in the event of an emergency, which is why I've been wary of investing it until now. I'm not going to comment on the rest because I don't know the UK, but this criteria doesn't make sense. The reason you get higher returns investing is because you're taking on risk. If you want to keep your money safe or for emergencies then you shouldn't be investing it. asur fucked around with this message at 15:33 on Nov 17, 2014 |
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Nov 17, 2014 15:27
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Star War Sex Parrot posted:On the mobile app. He said hes ok with a PC client.
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Dec 17, 2014 19:55
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You're missing the $350 misc category in the second budget.
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Dec 27, 2014 07:01
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theHUNGERian posted:Really? Each year I put $17500 into my 401k and another $5500 into my Roth-IRA. That's over 15% of my annual income that's sitting in index funds with crazy low expense ratios. I also have an emergency fund to cover about 1 year worth of expenses if I were to lose my job. Btw, all the stuff I buy for my hobby is on the used market. Whenever possible, I buy things on the used market and I never had an issue. You can get a credit score from Mint or a lot of a credit cards (Amex, Citi, Discover, probably others) will give you your official score from at least one of the three credit agencies.
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Dec 29, 2014 02:05
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It's not different, just another legitimate from free option if you don't have access to others. It's from Equifax I believe. Apparently I read your last question completely wrong, thought you were asking for free ways to get credit score.
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Dec 29, 2014 02:19
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Transcendi posted:Ever since I graduated from school with approximately $170k in student loans, I've been aggressively paying the loans down, since I was lucky enough to land a well-paying job. Now the loans are at $55k, and I feel that I can now more or less ignore the interest expense the loan represents, and figure out how to better use the money that was previously used for loan repayment. I think I would recommend that you go talk to a professional about this as both the account type ROTH or Trad and the country your from matter a lot. In addition, there's some risk that the tax law changes or that regulation is added that makes it difficult to actually hold an account as a foreigner.
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Dec 30, 2014 22:31
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Just change to the correct withholding and don't worry about it since you're at the start of the year.
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Jan 2, 2015 05:03
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Rick Rickshaw posted:Since lines of credit exist, I don't understand why emergency funds exist for people who have these magical lines of credit. When the financial crisis happened? You also need to be able to make the payments if you use it. It's not really that much different than just investing you're emergency fund. The line of credit just adds another potential source that has some risk of not being there. It's up to you to decide if this risk is worth the return. Just to put this in perspective, it will increase you're total investments by about 3.5% if you invest the maximum amount you currently can in a 401k and an IRA. (I'm assuming a return of 7% since that gives 80k with 10k invested over 30 years)
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Jan 11, 2015 17:55
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If they don't have fees, don't have a bonus you want to churn, and you have an easy way to track them, then you might as well leave them open.
asur fucked around with this message at 20:37 on Jan 26, 2015 |
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Jan 26, 2015 20:16
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For a short period ignoring the effects of compound interest should be pretty minimal, so you can take Z and divide by the percentage of the year (X divided by 12). The other quick option would be to pull up any compound interest calculator and just calculate the two values.
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Jan 27, 2015 17:32
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Blinky2099 posted:I was lucky enough to have a father who gave me a credit card to use during college for books and engineering tools. It's an AMEX and for some reason it's It's a charge card. They have no limits, but you can't carry a balance. I'm not quite sure how it factors utilization, but the long credit history should help your credit score quite a bit. I'd just leave it open, if your really worried about utilization ask your dad to pay it off and it use it before you apply for a loan.
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Feb 8, 2015 07:42
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Madbullogna posted:Question reference how to weigh getting out of debt versus continuing to contribute to retirement..... If you don't get a match and the interest rate on your debt isn't extremely low then you should focus on debt.
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Feb 11, 2015 23:13
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Guinness posted:You avoid short-term capital gains by holding for over a year. You can usually elect which method to use when selling partial stakes of a position with your broker (FIFO vs. LIFO). If you sell a position with a mix of short-term and long-term capital gains, you will pay a proportional mix of short-term and long-term gains. A good broker should have more options than just FIFO and LIFO including specifying tax lots.
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Mar 1, 2015 20:49
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You don't pay FICA on HSA contributions if they are directly deducted from your paycheck. That may or may not make the fees worth paying.
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Apr 7, 2015 09:55
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MJP posted:I already do have normal life insurance on myself - would that suffice or should I look into term to supplement/replace it? What are you calling normal life insurance? Term life insurance is where you have a contract with a fixed premium for a term and if you die within the term then the death benefit is paid to the beneficiaries. When the contract expires, it can be renegotiated with a potential premium increase. It's the cheapest form of life insurance and is used to cover the financial responsibilities of the life insured. If you have life insurance other than term, you should know exactly why you do as in a lot of cases other types of life insurance are more expensive for very little or no benefit. There is no ETF that has a secure short term prospect and decent growth. The price for higher return is volatility and risk which run counter to security in the short-term. You can use a target date fund, but even the most conservative is going to assume that you're withdrawing money over multiple years. If you potentially need money within 3 to 5 years then it shouldn't be in the stock market.
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Apr 12, 2015 17:44
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You each need a separate IRA and you can contribute up to the max. The quote is basically saying that for each individual the total amount you contribute to any number of accounts cannot exceed the max.
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Apr 13, 2015 15:39
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lol internet. posted:Couple questions: 1. Buy life insurance if you have dependents that could not comfortably provide for themselves if you died. The amount of life insurance should be the amount they need to get back on their feet. 2. You need a SSN. I think you get one when you apply for a green card?
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Apr 21, 2015 08:10
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legsarerequired posted:I feel like this is an incredibly obvious question, but how do you invest in a CD or bond? Is it possible to do this entirely online? The only explicit directions I've ever received were to set up an etrade account and buy a corporate bond through that. CDs are generally offered by banks and you probably need an account at the bank to buy one. There should be no fees to purchase the CD though there are penalties, loss of some or all the interest, if you withdraw the money early. Unless you can find a CD with abnormal rates they really aren't worth it right now as certain savings accounts give about the same return with access to the funds, Bonds are normally bought through a brokerage account, ETrade offers them as do other brokers, and you would buy through them with a fee per trade. I would probably not recommend buying specific bonds and instead buy an ETF or a mutual fund that is diversified among multiple companies and maturities.
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Jun 5, 2015 16:40
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legsarerequired posted:This question might be more appropriate for the long-term investing thread, but I feel like they're more advanced than me... How can you tell if your roth IRA is performing at an acceptable level? I've been losing money all summer, and I'm not sure how I would compare this to see if there's something I should change with the funds or if it's just how the market is performing. You would compare it to a relevant benchmark, which may not be trivial to find. A quick comparison would be to the S&P 500, but if your allocation doesn't reflect the same risk then it's not really accurate. The market has been pretty flat for the past month and a half and is only up 2% YTD. In the short term, return should probably be ignored as the market fluctuates a lot. I'd pick an allocation using index ETFs or mutual funds and then basically ignore return as the funds you pick will track the index. If you post your allocation, the thread can probably give more advice.
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Jun 5, 2015 20:40
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the spyder posted:I need some quick advise. Are you spending 10k in a month, or a short period, and then want to pay it back over a longer period? If so, I don't know of a rewards card that gives 0% APR for a long duration. I think you could do something like buy on a rewards card that offers a sign up onus and then transfer to Chase Slate, make sure to double check that balance transfers are 0% APR for the duration you need.
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Jun 6, 2015 06:30
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turevidar posted:I am setting up a 3-fund portfolio. I don't have access to a total stock market index in my 401k, but I do have a S&P500 fund (VIIIX) and a small/mid cap fund (VIEIX). How much of my domestic stocks allocation should I put into VIEIX to best approximate a total stock market fund? 80/20 per Boggleheads and Vanguard.
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Jun 8, 2015 13:42
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Annath posted:Oh god I just got my offical offer letter and there are 17 HR attachments with various bits of info. The difference is the way you interact with the network and doctors. Here is a decent explanation of the difference. You need to make sure that you understand the plan by reading the benefits guide, but there are pretty big differences between a HMO and PPO plan generally and which is better for you is going to be based on expected medical expenses and preference.
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Jun 8, 2015 21:54
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Pulling your credit report from each of the three agencies for free from https://www.annualcreditreport.com should allow you to find out who you owe money to.
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Jun 13, 2015 08:36
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22 Eargesplitten posted:Oh, cool. I hadn't seen that. Maybe I just missed it before, I think I was generally looking at the pie chart. The little bars have it, though. Click on the transaction in the Transactions tab and then click Edit Details and in the pane that expanded there's a symbol that looks like two arrows splitting which will let you split the transaction.
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Jul 13, 2015 06:50
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If anyone doesn't have a CapitalOne 360 savings account there's a promo running where you deposit between 5k and 50k and maintain the balance for 90 days to receive between $50 and $500. Not a bad deal for a good savings account, though unlike credit card promos I do believe you are required to pay tax on the bonus.
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Aug 16, 2015 08:48
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