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Personal Finance Advice and Education!

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On 2/11/2020 at 4:30 AM, pollardsvision said:

For most. But there are some that really only see it as an investment vehicle. 

Withdrawals for reimbursements for medical expenses can be drawn during a later tax year, and there's currently no limit to what "later" means. So, you can pay current medical expenses out of pocket, keep good receipts and records, then say, 20 years from now, go ahead and take the withdrawals to reimburse. So, you pay for the medical expenses, but still get the tax-free growth from having it invested long-term.

 

There are good arguments for making your HSA your absolute wheels off high risk account.  If it ####s the bed fall back to something else. 

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On 2/11/2020 at 4:30 AM, pollardsvision said:

For most. But there are some that really only see it as an investment vehicle. 

Withdrawals for reimbursements for medical expenses can be drawn during a later tax year, and there's currently no limit to what "later" means. So, you can pay current medical expenses out of pocket, keep good receipts and records, then say, 20 years from now, go ahead and take the withdrawals to reimburse. So, you pay for the medical expenses, but still get the tax-free growth from having it invested long-term.

 

There are good arguments for making your HSA your absolute wheels off high risk account.  If it ####s the bed fall back to something else. 

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11 hours ago, SFBayDuck said:

True, and there’s a reason for that, it’s awesome here.  Today after my morning trail run we went to the beach, then ate lunch outside.  But it obviously comes with some pretty significant financial trade-offs for those of us non-hedge fund, VC, or CEO types. 

I just assumed you were the CEO of a VC hedge fund... :shrug:

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22 hours ago, SFBayDuck said:

That’s pretty much me. I drive a 10 year old car, we live in a small 4-bedroom rental house that is one of the best deals in town, and I haven’t been on a tropical vacation that wasn’t paid for by work in years. The only “extravagance” in terms of spending is private high school for my daughter. But the cost of living is just so damn high here that it’s hard to save, outside of maxing my retirement accounts. And it’s not just housing, which is ridiculous, it’s everything - $400/month for gas/electric (don’t even have a/c), gas is $.50-$1.00 more a gallon, restaurants or a cocktail or two (which we don’t do often) are double what they are elsewhere, and a combo of high state taxes and sales taxes. Throw in child support (even though I have 50/50 custody and the ex is long remarried), and many months I do coast into the next paycheck on fumes. 


 

 

I should have added that I live in an area where the median income is about $67k and you can find a decent house to live in for $250-300k. 

I understand people in expensive cities like NYC, SF, etc living paycheck to paycheck when they’re making $200k

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Well I'm at the time of the year where I reshuffle everything.  Bonuses all came in and life is good.   I still struggle this time of year figuring out if I should allocate retirement funds differently than main savings.    

I'm mid 40s and after last year and the years prior I'm way ahead of schedule retirement wise.  Maybe by 8 or more years.   Does that change things?   I can now realistically see myself calling it at 55 or having my wife quit at 50 and going onto 60.  

I never see this topic discussed.  

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21 minutes ago, culdeus said:

Well I'm at the time of the year where I reshuffle everything.  Bonuses all came in and life is good.   I still struggle this time of year figuring out if I should allocate retirement funds differently than main savings.    

I'm mid 40s and after last year and the years prior I'm way ahead of schedule retirement wise.  Maybe by 8 or more years.   Does that change things?   I can now realistically see myself calling it at 55 or having my wife quit at 50 and going onto 60.  

I never see this topic discussed.  

Lots of things factor into this.  

Do you like your job (what is it you do)?

Does your wife like her job?

Stress level of jobs?

Other income sources?

House paid off?

Do you have kids (and are college plans take care of)?

 

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10 hours ago, culdeus said:

There are good arguments for making your HSA your absolute wheels off high risk account.  If it ####s the bed fall back to something else. 

The current administration (keeping this politics neutral) is knocking around an idea for a new tax advantaged account.  According to this - "Money put into the account would be done so on an after-tax basis, and taxed when withdrawn as well; but any accumulation of profits during the investment timeframe, known as capital gains, would not be taxed."

Yeah, they might as well name it the GBGH account.  I'd put a bit in there and take a number of moonshots with this vehicle, join the Furley investment club, dream of TVIX every night, etc.

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On 2/15/2020 at 10:14 PM, Long Ball Larry said:

Not sure if this can really be answered, but  just kind of thinking out loud.

we have an opportunity for an illiquid investment (real estate) that would tie up 60k for 3-5 years.  Offers 9.5% dividend each year with an additional projected 47.5% return at the end.  This would leave us with roughly $15k in cash reserves, which makes me a little nervous as not enough security.

We can build up about $3-5k per month in savings for the foreseeable future and I have another property that I am going to try to sell soon to net some additional cash.  We have Roth IRAs as well, which could theoretically be tapped if any huge emergency.

Does this seem like a safe enough backstop for the return?

Pretty sure I'd pass on this.  Return is no better than getting 13% compounded for 5 years on your 60K.  Is there more or less risk here than a typical sp500 index fund?  Might be ok if you're looking for diversification, but I wouldn't consider this a home run.

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1 hour ago, Random said:

Lots of things factor into this.  

Do you like your job (what is it you do)?

Does your wife like her job?

Stress level of jobs?

Other income sources?

House paid off?

Do you have kids (and are college plans take care of)?

 

Also don’t forget healthcare until Medicare

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2 hours ago, Random said:

Lots of things factor into this.  

Do you like your job (what is it you do)?    Yes, I'd keep at this for decades if I could. 

Does your wife like her job?  Yes but it is stressful and she's in a cycle where she's constantly asked to do more with little in return. 

Stress level of jobs?  Mine is seasonally stressful, but manageable.  

Other income sources?  I do anticipate some inheritance, mostly in the form of mineral royalties that will provide cash flow.  I'm thinking of that as a bonus now as the stability of that cash flow for 40 years is in question given the political environment.  If lets say that came due tomorrow with the prices as they are it would roughly replace my wife's salary.  

House paid off?  No, but that's a priority to speed that up. At interest rates this low I'm just hesitant to do it and take that money out of the stock market.  

Do you have kids (and are college plans take care of)?  Kids college is more than done now, with the stock market run-up.  I won't give them another dime, and if they blow through all this it's on them.  

There was also a followup question on medical till medicare, if I can manage to stay on at my job thru this year I'll be eligible to buy into the work health plan at the employee rate for life.  That is a massive benefit. 

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2 hours ago, Random said:

Pretty sure I'd pass on this.  Return is no better than getting 13% compounded for 5 years on your 60K.  Is there more or less risk here than a typical sp500 index fund?  Might be ok if you're looking for diversification, but I wouldn't consider this a home run.

thank you.  this is exactly the kind of bottom line that i was trying to meander toward.  fundamentally, how to quantify the opportunity cost and the illiquidity premium.  very helpful way to think about it for me.

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3 hours ago, Random said:

Pretty sure I'd pass on this.  Return is no better than getting 13% compounded for 5 years on your 60K.  Is there more or less risk here than a typical sp500 index fund?  Might be ok if you're looking for diversification, but I wouldn't consider this a home run.

give me a locked in 13% and I'll take it all. @Long Ball Larry please PM me.  

please.  

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33 minutes ago, Binky The Doormat said:

give me a locked in 13% and I'll take it all. @Long Ball Larry please PM me.  

please.  

I highly doubt its locked in.

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8 minutes ago, ghostguy123 said:

So where is a better place to put that money?

TVIX.  The answer is always 42 TVIX.

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On 2/16/2020 at 8:36 PM, Gawain said:

Wondering if anyone wants to give advice on a couple of jobs:

Job A: 87K + 5% bonus. Roughly 50 hours a week and 50 min commute each way each day. Very stable. Growth path to my bosses job (110-125) in the next 3-5 years.

Job B: 110K + 6% bonus. Roughly 45 hours a week working from home. Traveling away from home 12 weeks out of the year. 2 year contract, but very unstable afterwards. No growth path.

Left Job B 4 months ago because I was moving. Liked the job/boss. Received a call from him on Friday saying my replacement wasn't working out and they want me back.
Have three kids; 3, 2, 7 months. Wife is SAHM. Decent amount of support around us.

Realize not the right thread, but value the opinions of a lot of posters in here.

Go with job B.   Enjoy the time spent with the kids and get that MBA.   Sounds like you don’t really like job A and don’t really want the bosses job.    

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10 hours ago, ghostguy123 said:

So where is a better place to put that money?

Hard to say without knowing his entire financial landscape and the risk associated with the investment.  Maybe a REIT?

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On 2/11/2020 at 4:30 AM, pollardsvision said:

For most. But there are some that really only see it as an investment vehicle. 

Withdrawals for reimbursements for medical expenses can be drawn during a later tax year, and there's currently no limit to what "later" means. So, you can pay current medical expenses out of pocket, keep good receipts and records, then say, 20 years from now, go ahead and take the withdrawals to reimburse. So, you pay for the medical expenses, but still get the tax-free growth from having it invested long-term.

 

I think the HSA is becoming by emergency cash fund.  I am paying for medical costs out of normal income, but saving the receipts in case I need to cash out for an unexpected expense.  I put $600 month in and 80% goes into index funds.  

Think my new saving strategy is:

  • 401K contribution to get maximum employer match
  • Max HSA contribution (20% fairly liquid until overall balance is $25K)
  • Max Roth IRA
  • Combo of 401K contribution and taxable investment funds - not sure on the balance between these two
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2 hours ago, Nugget said:

I think the HSA is becoming by emergency cash fund.  I am paying for medical costs out of normal income, but saving the receipts in case I need to cash out for an unexpected expense.  I put $600 month in and 80% goes into index funds.  

 

Am I right in that the only need for documentation for an HSA reimbursement is if you are ever audited?  I'm used to the FSA where I had to submit the receipts to get reimbursement, but as I'm doing my taxes for the first time with an HSA TurboTax just asked me the question of whether the funds were for medical expenses.  They were, but I just want to be clear on the requirements.

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7 minutes ago, SFBayDuck said:

Am I right in that the only need for documentation for an HSA reimbursement is if you are ever audited?  I'm used to the FSA where I had to submit the receipts to get reimbursement, but as I'm doing my taxes for the first time with an HSA TurboTax just asked me the question of whether the funds were for medical expenses.  They were, but I just want to be clear on the requirements.

I've had an HSA since 2009, but I just used the debit card provided whenever I had a medical expense.  I am hopeful that between EOBs and receipts I should be good for future reimbursements or audits.  When I've filled my taxes in the past, I just submit form 8889 and move the HSA contribution to Schedule 1.  They've never asked me for any additional documentation.

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18 minutes ago, Nugget said:

I've had an HSA since 2009, but I just used the debit card provided whenever I had a medical expense.  I am hopeful that between EOBs and receipts I should be good for future reimbursements or audits.  When I've filled my taxes in the past, I just submit form 8889 and move the HSA contribution to Schedule 1.  They've never asked me for any additional documentation.

I don't have an HSA, not eligible. But I was listening to a podcast the other day, the podcaster commented that a smart move is to just keep your medical receipts, pay out of pocket, then if you really need the funds you can just use the receipt from years ago to justify the withdrawal.  I had assumed the expense would have to be in the same year as the withdrawal, but that seems to be incorrect.

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19 minutes ago, -OZ- said:

I don't have an HSA, not eligible. But I was listening to a podcast the other day, the podcaster commented that a smart move is to just keep your medical receipts, pay out of pocket, then if you really need the funds you can just use the receipt from years ago to justify the withdrawal.  I had assumed the expense would have to be in the same year as the withdrawal, but that seems to be incorrect.

Yeah I'd heard that part, that's what makes it such a great thing - tax free going in and coming out, and you can use it years down the line.  To me that'd be the real win if you can swing it - build it up over years to a sizable amount and have it available to either pay for medical expenses during retirement or to supplement retirement income by reimbursing yourself for past expenses.

I just wasn't sure on the logistics for reimbursement other than "keep all your receipts".

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Not sure which thread I posted it in, but make sure to scan your receipts, the ink sometimes fades very quickly. Many HSA providers will let you upload and save the receipt images without having to claim a reimbursement... or you can just stick them in the cloud. Honestly, it would be a good idea to do this for regular taxes as well, I've seen receipts fade to unreadable within the span of weeks.

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1 hour ago, -OZ- said:

I don't have an HSA, not eligible. But I was listening to a podcast the other day, the podcaster commented that a smart move is to just keep your medical receipts, pay out of pocket, then if you really need the funds you can just use the receipt from years ago to justify the withdrawal.  I had assumed the expense would have to be in the same year as the withdrawal, but that seems to be incorrect.

This is correct.  There is no time limit on when you can use a receipt to cash out a bill.  And, yes, you only need to show proof if you're audited over it - definitely not like an FSA.  So save all the receipts.

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1 hour ago, Buckna said:

Not sure which thread I posted it in, but make sure to scan your receipts, the ink sometimes fades very quickly. Many HSA providers will let you upload and save the receipt images without having to claim a reimbursement... or you can just stick them in the cloud. Honestly, it would be a good idea to do this for regular taxes as well, I've seen receipts fade to unreadable within the span of weeks.

Different, but I bought a trumpet for our middle schooler this summer. He ended up switching to the baritone, rented that from the school.  the store owner just said keep the receipt and whenever we want we can get a full exchange (we had kept the trumpet longer than the refund policy normally applied). So yesterday I took it back, opened the case to pull out the receipt. It was almost completely blank. He knew how much it cost so it worked out, got two violins instead for our 9 and 5yos. 

So now we're doing violin lessons. 

And people without kids wonder why there's a small tax credit for them.

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Yeah I had a season-long NFL bet placed at one of the Caesar's sportsbooks, and by the time the season ended, the ink had burned out and faded. :angry: 

 

Not sure if keeping it in my toiletry bag got it exposed to heat or what, but it was nearly unreadable. It was a loser anyway. :kicksrock:

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Question(s) for FBG real estate moguls:

I’m looking to move (we want to upgrade our primary residence for school district quality and commute reasons). Fully own our current ‘starter’ home in a solidly middle class neighborhood. The metro area is low housing cost but with high property taxes (upstate NY).

I’ve been thinking about keeping our starter home and renting it out as an extra source of income/portfolio diversifier (all other investments are in HYS accounts (new home down payment) or vanguard index funds (retirement and college savings accounts).

I used this calculator to determine my cash flow and return and it spits out a value called the IRR that is at best 6% (with rosy estimates for rental income and maintenance).

1. Is this calculator any good? Any other hidden costs I should consider when deciding to rent (other than sweat equity)?

2. How is this projected return? Honestly doesn’t seem worth it to me if I consider it an approx 2.5-3% bump over just throwing the amount into payments on the new home (assuming a mortgage rate of 3-3.5%) plus the work involved in managing the property (wife and I both work full time but with decent hours). Am I doing that math right?
 

Thanks for any tips!

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29 minutes ago, D_House said:

Question(s) for FBG real estate moguls:

I’m looking to move (we want to upgrade our primary residence for school district quality and commute reasons). Fully own our current ‘starter’ home in a solidly middle class neighborhood. The metro area is low housing cost but with high property taxes (upstate NY).

I’ve been thinking about keeping our starter home and renting it out as an extra source of income/portfolio diversifier (all other investments are in HYS accounts (new home down payment) or vanguard index funds (retirement and college savings accounts).

I used this calculator to determine my cash flow and return and it spits out a value called the IRR that is at best 6% (with rosy estimates for rental income and maintenance).

1. Is this calculator any good? Any other hidden costs I should consider when deciding to rent (other than sweat equity)?

2. How is this projected return? Honestly doesn’t seem worth it to me if I consider it an approx 2.5-3% bump over just throwing the amount into payments on the new home (assuming a mortgage rate of 3-3.5%) plus the work involved in managing the property (wife and I both work full time but with decent hours). Am I doing that math right?
 

Thanks for any tips!

I would want 10% to make it worth my while. Suggest to sell. Buy some REITs if you want some real estate diversity in your portfolio. REIT won’t call you on vacation with a plumbing issue 

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1 hour ago, D_House said:

Question(s) for FBG real estate moguls:

I’m looking to move (we want to upgrade our primary residence for school district quality and commute reasons). Fully own our current ‘starter’ home in a solidly middle class neighborhood. The metro area is low housing cost but with high property taxes (upstate NY).

I’ve been thinking about keeping our starter home and renting it out as an extra source of income/portfolio diversifier (all other investments are in HYS accounts (new home down payment) or vanguard index funds (retirement and college savings accounts).

I used this calculator to determine my cash flow and return and it spits out a value called the IRR that is at best 6% (with rosy estimates for rental income and maintenance).

1. Is this calculator any good? Any other hidden costs I should consider when deciding to rent (other than sweat equity)?

2. How is this projected return? Honestly doesn’t seem worth it to me if I consider it an approx 2.5-3% bump over just throwing the amount into payments on the new home (assuming a mortgage rate of 3-3.5%) plus the work involved in managing the property (wife and I both work full time but with decent hours). Am I doing that math right?
 

Thanks for any tips!

Does that include a property manager?  If not, then either add that in (usually 10% of gross rent) or you're working a second job for minimal return (according to your numbers).

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2 hours ago, wilked said:

I would want 10% to make it worth my while. Suggest to sell. Buy some REITs if you want some real estate diversity in your portfolio. REIT won’t call you on vacation with a plumbing issue 

 

1 hour ago, Random said:

Does that include a property manager?  If not, then either add that in (usually 10% of gross rent) or you're working a second job for minimal return (according to your numbers).

 

1 hour ago, ConstruxBoy said:

Managing a rental yourself when you have a full time job is no bueno, IMO. 

Yep

All these are reasons we have 15% of our portfolio in REITs, no rental homes. 

If possible, you'll want to put REITs in your IRA, as they often pay good dividends which would otherwise have tax implications.

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18 hours ago, Sand said:

This is correct.  There is no time limit on when you can use a receipt to cash out a bill.  And, yes, you only need to show proof if you're audited over it - definitely not like an FSA.  So save all the receipts.

My wife and I are just this year on an HSA for the first time. So this is pretty awesome.

I think they sent us a debit card - how does one reimburse themselves? Is it just a wire transfer from the HSA to your normal bank account?

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1 minute ago, ChiefD said:

I think they sent us a debit card - how does one reimburse themselves? Is it just a wire transfer from the HSA to your normal bank account?

Funny enough I have no idea.  I've never reimbursed myself from that account.  I'm just piling it in at this point.

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3 hours ago, -OZ- said:

If possible, you'll want to put REITs in your IRA, as they often pay good dividends which would otherwise have tax implications.

Note with the new tax act that REITs now get their own special dividend tax rate.  It's close, but not quite as good as, the qualified dividend rate.  It's now way better than the old rate, which was at income tax rates.

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On ‎2‎/‎17‎/‎2020 at 8:33 AM, culdeus said:

Well I'm at the time of the year where I reshuffle everything.  Bonuses all came in and life is good.   I still struggle this time of year figuring out if I should allocate retirement funds differently than main savings.    

I'm mid 40s and after last year and the years prior I'm way ahead of schedule retirement wise.  Maybe by 8 or more years.   Does that change things?   I can now realistically see myself calling it at 55 or having my wife quit at 50 and going onto 60.  

I never see this topic discussed.  

Some good discussion in the 'what is your 401K and age' thread.  Congratulations.  I'll be 56 in a couple months.  I could retire now.  My wife retires last year.  Love what I'm doing and well compensated, and I'm reluctant to pay market health care insurance.  I plan to do this for at least 18 months [bonuses paid in June, must be present to win] then consider a retirement package that allows me to keep my coverage, and some income on a part time basis or project work. 

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Churned a bank account - November, deposit $15k, got the $400 bonus a few weeks ago. Timing was decent considering the market. Transferred the money to our savings, closed that account.

Did not realize our FICO would drop 30 points this month - only thing we did was close that account. (We closed the refi last month) Not a big deal, but that was more than I thought it would drop.

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Posted (edited)
4 hours ago, -OZ- said:

Churned a bank account - November, deposit $15k, got the $400 bonus a few weeks ago. Timing was decent considering the market. Transferred the money to our savings, closed that account.

Did not realize our FICO would drop 30 points this month - only thing we did was close that account. (We closed the refi last month) Not a big deal, but that was more than I thought it would drop.

No bank accounts are reported to credit. Those are unrelated events. 

My guess is your lost credit history with the closing of the old mortgage. 

Edited by Chadstroma
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5 hours ago, -OZ- said:

Churned a bank account - November, deposit $15k, got the $400 bonus a few weeks ago. Timing was decent considering the market. Transferred the money to our savings, closed that account.

Did not realize our FICO would drop 30 points this month - only thing we did was close that account. (We closed the refi last month) Not a big deal, but that was more than I thought it would drop.

I stopped account churning once I got my first 1099 from Chase. Way too much hassle if I then get to pay taxes on top of it. 

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Just paid off mortgage today so officially debt free!  :excited:  Now allocating some of my “fun money” to invest in some individual stocks (getting tips from the stocks thread)

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20 minutes ago, fred_1_15301 said:

Just paid off mortgage today so officially debt free!  :excited:  Now allocating some of my “fun money” to invest in some individual stocks (getting tips from the stocks thread)

Freedom!

52 minutes ago, Chadstroma said:

No bank accounts are reported to credit. Those are unrelated events. 

My guess is your lost credit history with the closing of the old mortgage. 

Thanks. Seems weird, with getting a refi. Doesn't really matter though.

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Long post:

I’ve never really worried about retiring (both me and my wife have a govt pension and 401Ks to supplement just for some extra $) and always thought that was plenty.

A few questions:

1-I left my job after 21 years that had a great portfolio of Fidelity Funds and moved to a company with very limited choices. Should I roll the old fund over for ease of having everything in one place?  

2-Related to #1 I am 95% in equities, which has been great up to recently. This is all in the old work fund. When should I rebalance?  I don’t want to do it to early and miss the recovery.   I’m 49, so have about 10 years to I can touch. Also, related to #1 I’ve been aggressive with 401k since I’ve got the pension.  If I rebalance, do I simply increase bond funds and decrease equities?
 

3-With 401k taking a beating this seems like a good time to try and diversify as I’ve got some cash in reserve. Is it as simple as adding money to my fidelity account that houses my 401k and just buy individual stocks?


4-This one seems obvious, but we got the free match for our 401Ks without having to contribute. I’ve always added to it, but my wife just took the free 6%, it’s a no brainer to start adding the max to hers at this point or should I wait a bit longer?

 

Thanks, I’ve learned a lot following this thread!

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On 3/28/2020 at 11:41 AM, -OZ- said:

Churned a bank account - November, deposit $15k, got the $400 bonus a few weeks ago. Timing was decent considering the market. Transferred the money to our savings, closed that account.

Did not realize our FICO would drop 30 points this month - only thing we did was close that account. (We closed the refi last month) Not a big deal, but that was more than I thought it would drop.

I just opened one 2 weeks ago with a $2,500 deposit and will be getting a $500 bonus.  It was to good to pass up.

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5 minutes ago, bcat01 said:

I just opened one 2 weeks ago with a $2,500 deposit and will be getting a $500 bonus.  It was to good to pass up.

Direct deposit required? 

I've been avoiding those but might do one or two if allotments work, or other means. I won't change where my paycheck goes (most of it anyway)

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1 hour ago, -OZ- said:

Direct deposit required? 

I've been avoiding those but might do one or two if allotments work, or other means. I won't change where my paycheck goes (most of it anyway)

No.  It was for a Chase Business account.  Only requirements are keep a $2,500 balance for 60 days and use the debit card 5 times.  I already had the Chase Ink Business card so that may have made it easier.  

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2 hours ago, pmedina said:

Long post:

I’ve never really worried about retiring (both me and my wife have a govt pension and 401Ks to supplement just for some extra $) and always thought that was plenty.

A few questions:

1-I left my job after 21 years that had a great portfolio of Fidelity Funds and moved to a company with very limited choices. Should I roll the old fund over for ease of having everything in one place?  

2-Related to #1 I am 95% in equities, which has been great up to recently. This is all in the old work fund. When should I rebalance?  I don’t want to do it to early and miss the recovery.   I’m 49, so have about 10 years to I can touch. Also, related to #1 I’ve been aggressive with 401k since I’ve got the pension.  If I rebalance, do I simply increase bond funds and decrease equities?
 

3-With 401k taking a beating this seems like a good time to try and diversify as I’ve got some cash in reserve. Is it as simple as adding money to my fidelity account that houses my 401k and just buy individual stocks?


4-This one seems obvious, but we got the free match for our 401Ks without having to contribute. I’ve always added to it, but my wife just took the free 6%, it’s a no brainer to start adding the max to hers at this point or should I wait a bit longer?

 

Thanks, I’ve learned a lot following this thread!

Just my :2cents:

1. Generally I'd recommend moving the money if tied to a business you left. But with Fidelity, you're probably okay. Just make sure you can pull it if they stop using Fidelity. 

2. There are multiple ways to rebalance, and if your pension is significant, 95% equities might be okay. It really comes down to your comfort level. If you don't want to sell now you can just start buying bonds until you're at your preferred allocation.

3. Are you sure you want to buy individual stocks? Make sure you know what you're doing. Most of us are better off with index funds or ETFs.

4. If you can afford it, increase the contribution now. And keep it steady. Some try to max as early as possible each year. 

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Posted (edited)
41 minutes ago, -OZ- said:

Just my :2cents:

1. Generally I'd recommend moving the money if tied to a business you left. But with Fidelity, you're probably okay. Just make sure you can pull it if they stop using Fidelity. 

2. There are multiple ways to rebalance, and if your pension is significant, 95% equities might be okay. It really comes down to your comfort level. If you don't want to sell now you can just start buying bonds until you're at your preferred allocation.

3. Are you sure you want to buy individual stocks? Make sure you know what you're doing. Most of us are better off with index funds or ETFs.

4. If you can afford it, increase the contribution now. And keep it steady. Some try to max as early as possible each year. 

1-New company also used Fidelity. The choices are just much fewer (NONE of the same funds are in both). If I bring over, I assume I need to allocate to the current choices?
 

2-it’s 95% equities in the old fund. I can’t add to that with bonds unless I bring over to new account?

3-No 😂, just following the stocks thread and was going to put some into BA, DIS, Amazon based on that. Would I just buy an index fund with cash the same way as an individual’s stock?  I’ve got about $20-25k I could allocate right now.

4-can do and plan to with future funds. 

Thanks for the previous response 👍. I know I have lots of reading to do!

Edited by pmedina

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6 minutes ago, pmedina said:

1-New company also used Fidelity. The choices are just much fewer (NONE of the same funds are in both). If I bring over, I assume I need to allocate to the current choices?
 

2-it’s 95% equities in the old fund. I can’t add to that with bonds unless I bring over to new account?

3-No 😂, just following the stocks thread and was going to put some into BA, DIS, Amazon based on that. Would I just buy an index fund with cash the same way as an individual’s stock?  I’ve got about $20-25k I could allocate right now.

4-can do and plan to with future funds. 

Thanks for the previous response 👍. I know I have lots of reading to do!

1. I'm pretty sure yes, but might be worth talking to HR.

2. consider both accounts, all accounts really, as one. So you might leave one as 95% equities, the other 50%, together something like 80% (or whatever you want)

3. That's an interesting thread, but don't take anything there as financial advice. Most of that thread is somewhat educated gambling / speculation. I might have like 3-5% in speculative "investments". 

4. 👍🏻

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10 hours ago, pmedina said:

1-New company also used Fidelity. The choices are just much fewer (NONE of the same funds are in both). If I bring over, I assume I need to allocate to the current choices?
 

2-it’s 95% equities in the old fund. I can’t add to that with bonds unless I bring over to new account?

3-No 😂, just following the stocks thread and was going to put some into BA, DIS, Amazon based on that. Would I just buy an index fund with cash the same way as an individual’s stock?  I’ve got about $20-25k I could allocate right now.

4-can do and plan to with future funds. 

Thanks for the previous response 👍. I know I have lots of reading to do!

1. Even though it means 2 separate places, I think most would say to move an old work 401k to an IRA instead of new work 401k. You just have more investment options. You also don't have to worry moving it next time you switch jobs.

2. You can consider old and new 401k the same bucket of money.

3. I fall under the thought of keeping things simple so I lean towards index stuff. You could do a small portion as individual stock if that would be fun for you.

4. Always keep investing, how quickly or early in the year is up to your situation.

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