Personal Finance Advice and Education! (3 Viewers)

[matttyl]

With the rule of 55, can you switch jobs? Example - once age 55, can I start pulling from 401k from the job I’m leaving and then go work at my local bike shop making considerably less just to have something to do?

 

[SFBayDuck]

With the rule of 55, can you switch jobs? Example - once age 55, can I start pulling from 401k from the job I’m leaving and then go work at my local bike shop making considerably less just to have something to do?

Yes, you just have to separate from the employer you have that 401k with in the year you turn 55 (or later). It's totally independent of any other/future earnings. You can only take from that specific 401k, not any other 401ks or IRAs you may have sitting out there - although before you leave you could potentially roll some of those others into your current employer's 401k to increase the funds you can access.

You do need to check the terms of your 401k with your employer. Some don't allow a partial distribution and make you take out the whole thing. That can be tricky, as I still don't have a straight answer from my HR team, who initially told me I had to actually be 55 years old for this to apply (that's not the rule) and couldn't really answer my partial distribution question. I haven't followed up on that yet, but will do so.

 

[Sand]

With the rule of 55, can you switch jobs? Example - once age 55, can I start pulling from 401k from the job I’m leaving and then go work at my local bike shop making considerably less just to have something to do?

Yes, you just have to separate from the employer you have that 401k with in the year you turn 55 (or later). It's totally independent of any other/future earnings. You can only take from that specific 401k, not any other 401ks or IRAs you may have sitting out there - although before you leave you could potentially roll some of those others into your current employer's 401k to increase the funds you can access.

You do need to check the terms of your 401k with your employer. Some don't allow a partial distribution and make you take out the whole thing. That can be tricky, as I still don't have a straight answer from my HR team, who initially told me I had to actually be 55 years old for this to apply (that's not the rule) and couldn't really answer my partial distribution question. I haven't followed up on that yet, but will do so.

Just note there are the plan rules in play. Mine does not allow partial distributions. I could theoretically use the rule of 55, but it would be one big chunk. That, obviously, isn't ideal - so one should check their plan particulars if something like this is in the cards.

 

[Steve Tasker]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

 

[Orange&Blue]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

if you don't want to get in the travel rewards game then pick a couple of cards that match your spending for cash back purposes.

Citi offers a 2% across the board cash back card.

for travel, i think chase Trifecta is a good place to start. after getting it established you can branch off to specific airlines, other cards, or even specific hotels. chase is good because you can combine with other family and can transfer to specific airlines/hotels which typically offer better rewards

look at 10xtravel to learn more

 

[SFBayDuck]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

if you don't want to get in the travel rewards game then pick a couple of cards that match your spending for cash back purposes.

Citi offers a 2% across the board cash back card.

for travel, i think chase Trifecta is a good place to start. after getting it established you can branch off to specific airlines, other cards, or even specific hotels. chase is good because you can combine with other family and can transfer to specific airlines/hotels which typically offer better rewards

look at 10xtravel to learn more

Agreed that 10x travel is a good place to start if you're really interested in learning about the CC game. They have a free course that hits pretty much every angle.

That being said, it doesn't sound like you want to go too far down the rabbit hole. So the easiest would be just find another cash back card with no annual fee (with any bonus categories aligned to your spending, as O&B noted) to achieve what looks to be your goal of increasing your overall credit limit. Or, if you do want to dip your toe into the transferable points game look at something like the Chase Sapphire Preferred or Capital One Venture Rewards to get started. A third angle which most would say isn't "optimal" would be to look at a co-branded card for an airline or hotel chain that you regularly utilize. If you only fly Delta and stay at Hyatt's, then you might get some perks that are worthwhile to you.

 

[NutterButter]

i like things simple myself. if you're gonna be doing some traveling, I think the chase sapphire preferred is pretty simple. they also have the reserve but you need to do the math if its worth the higher fee. its all just points based. you book stuff through their portal to earn the max points on stuff you're buying (flights, rentals, hotels) and to get the additional bonus if you're redeeming the points you've accrued.

 

[Desert_Power]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

What kind of categories do you typically have big spend on?

I still think the Chase Sapphires are great starter cards if interested in points. Chase points are much more valuable than most issuers due to the Hyatt and United tie-ins. These have the highest end travel protections although other issuers are catching up.

You could also look for co-branded cards of some specific airline or hotel you favor.

If you just want cash back, I would look into putting enough assets at BAC/Merrill to get their 75% kicker and go with a couple of their cards. Premium Rewards gets you 2.625% everywhere and 3.5% on dining/travel. Throw in a Customized Cash (or multiple) to get 5.25% in a category you choose (subject to $2500 quarterly limit) and 3.5% at warehouse stores like Costco.

 

[Steve Tasker]

Thanks for the comments, guys. I'll look into 10xtravel.

Most of my spending consists of your normal daily expenses (groceries and gas, I guess) with travel mixed in. I do periodically have to put work-related expenses on my personal card for reimbursement - covering small client payments, booking travel to conferences etc.

I don't have any specific airlines that I normally travel on - usually just take whatever is reasonably priced amongst the bigger carriers - Delta, American, Southwest etc. Also don't have any specific hotel chains I use - despite the negative stigma these days, I do normally still use Airbnb's when I travel. Does Airbnb often count for travel expenses or is it specifically tied to hotel chains? If I'm booking plane tickets on an aggregator site like Kayak, would those count, or do these types of costs need to be booked directly via the credit card company in order to use the points. Co-branded cards probably not a good fit for me at this point.

That Premium Rewards cash back sounds pretty good though I wasn't really anticipating moving any assets around and I don't have anything with Merrill. I'll check it out though.

 

[McBokonon]

Thanks for the comments, guys. I'll look into 10xtravel.

Most of my spending consists of your normal daily expenses (groceries and gas, I guess) with travel mixed in. I do periodically have to put work-related expenses on my personal card for reimbursement - covering small client payments, booking travel to conferences etc.

I don't have any specific airlines that I normally travel on - usually just take whatever is reasonably priced amongst the bigger carriers - Delta, American, Southwest etc. Also don't have any specific hotel chains I use - despite the negative stigma these days, I do normally still use Airbnb's when I travel. Does Airbnb often count for travel expenses or is it specifically tied to hotel chains? If I'm booking plane tickets on an aggregator site like Kayak, would those count, or do these types of costs need to be booked directly via the credit card company in order to use the points. Co-branded cards probably not a good fit for me at this point.

That Premium Rewards cash back sounds pretty good though I wasn't really anticipating moving any assets around and I don't have anything with Merrill. I'll check it out though.

Air BnB usually counts for travel, yes.

Kayak, etc. might count as travel, but some cards will award you more for booking directly with an airline vs. a 3rd party site (and I'm talking general not co-branded.) I'd check the airline for booking, anyway, after using Kayak to find the best fare. It's usually the same price you find at those sites and if there's an issue down the line, you can deal with the airline directly instead of a third party portal.

Wells Fargo 2% Active Cash and Autograph (no annual fee for either) sounds like a good combo for you. The AC is 2% on everything. Autograph gives you 3X on Travel, gas, dining, streaming, transit, and phone plans. It's points based but you can combine with the AC and do cash back instead. There's more lucrative ways to go about this, but for no annual fees and not wanting to worry about tracking/transferring and all that, this might work. Autograph also has no foreign transaction fee.

WF also recently introduced some limited transfer partners and may add more in case you ever do get hooked on the points/miles game. The one thing I will say is that your chances for approval are much higher if you already have an account there, regardless of FICO. Not mandatory and anecdotal, though.

 

[Desert_Power]

Thanks for the comments, guys. I'll look into 10xtravel.

Most of my spending consists of your normal daily expenses (groceries and gas, I guess) with travel mixed in. I do periodically have to put work-related expenses on my personal card for reimbursement - covering small client payments, booking travel to conferences etc.

I don't have any specific airlines that I normally travel on - usually just take whatever is reasonably priced amongst the bigger carriers - Delta, American, Southwest etc. Also don't have any specific hotel chains I use - despite the negative stigma these days, I do normally still use Airbnb's when I travel. Does Airbnb often count for travel expenses or is it specifically tied to hotel chains? If I'm booking plane tickets on an aggregator site like Kayak, would those count, or do these types of costs need to be booked directly via the credit card company in order to use the points. Co-branded cards probably not a good fit for me at this point.

That Premium Rewards cash back sounds pretty good though I wasn't really anticipating moving any assets around and I don't have anything with Merrill. I'll check it out though.

Air BnB usually counts for travel, yes.

Kayak, etc. might count as travel, but some cards will award you more for booking directly with an airline vs. a 3rd party site (and I'm talking general not co-branded.) I'd check the airline for booking, anyway, after using Kayak to find the best fare. It's usually the same price you find at those sites and if there's an issue down the line, you can deal with the airline directly instead of a third party portal.

Wells Fargo 2% Active Cash and Autograph (no annual fee for either) sounds like a good combo for you. The AC is 2% on everything. Autograph gives you 3X on Travel, gas, dining, streaming, transit, and phone plans. It's points based but you can combine with the AC and do cash back instead. There's more lucrative ways to go about this, but for no annual fees and not wanting to worry about tracking/transferring and all that, this might work. Autograph also has no foreign transaction fee.

WF also recently introduced some limited transfer partners and may add more in case you ever do get hooked on the points/miles game. The one thing I will say is that your chances for approval are much higher if you already have an account there, regardless of FICO. Not mandatory and anecdotal, though.

Interesting idea. Looks like the Autograph Journey has good travel/rental protections to consider too.

 

[McBokonon]

Thanks for the comments, guys. I'll look into 10xtravel.

Most of my spending consists of your normal daily expenses (groceries and gas, I guess) with travel mixed in. I do periodically have to put work-related expenses on my personal card for reimbursement - covering small client payments, booking travel to conferences etc.

I don't have any specific airlines that I normally travel on - usually just take whatever is reasonably priced amongst the bigger carriers - Delta, American, Southwest etc. Also don't have any specific hotel chains I use - despite the negative stigma these days, I do normally still use Airbnb's when I travel. Does Airbnb often count for travel expenses or is it specifically tied to hotel chains? If I'm booking plane tickets on an aggregator site like Kayak, would those count, or do these types of costs need to be booked directly via the credit card company in order to use the points. Co-branded cards probably not a good fit for me at this point.

That Premium Rewards cash back sounds pretty good though I wasn't really anticipating moving any assets around and I don't have anything with Merrill. I'll check it out though.

Air BnB usually counts for travel, yes.

Kayak, etc. might count as travel, but some cards will award you more for booking directly with an airline vs. a 3rd party site (and I'm talking general not co-branded.) I'd check the airline for booking, anyway, after using Kayak to find the best fare. It's usually the same price you find at those sites and if there's an issue down the line, you can deal with the airline directly instead of a third party portal.

Wells Fargo 2% Active Cash and Autograph (no annual fee for either) sounds like a good combo for you. The AC is 2% on everything. Autograph gives you 3X on Travel, gas, dining, streaming, transit, and phone plans. It's points based but you can combine with the AC and do cash back instead. There's more lucrative ways to go about this, but for no annual fees and not wanting to worry about tracking/transferring and all that, this might work. Autograph also has no foreign transaction fee.

WF also recently introduced some limited transfer partners and may add more in case you ever do get hooked on the points/miles game. The one thing I will say is that your chances for approval are much higher if you already have an account there, regardless of FICO. Not mandatory and anecdotal, though.

Interesting idea. Looks like the Autograph Journey has good travel/rental protections to consider too.

Yep. Annual fee unlike the vanilla autograph but a better earner (5x hotels, 4X airlines booked directly, 3 points dining/other travel), and you cancel out half the annual fee ($95) with one airline purchase ($50 credit). $600 welcome bonus, too.

 

[NutterButter]

If I'm booking plane tickets on an aggregator site like Kayak, would those count, or do these types of costs need to be booked directly via the credit card company in order to use the points.

With chase preferred, its 5 points per dollar if you book through the portal and 2 otherwise; so you'd just get 2 with kayak. Then you get another 25% multiplier if you redeem through the portal instead of transferring out and redeeming elsewhere. The reserve card is a 50% multiplier so if you do everything through the portal, it ends up as 7.5 points for flights and 15 points for car and hotel since those give you 10 points; preferred would be just 6.25 for all 3 categories. That really affects your decision to whether to go reserve instead of preferred. I'm also an airbnb guy and i do turo so can't take advantage of the portal points for that.

 

[Steve Tasker]

Kayak, etc. might count as travel, but some cards will award you more for booking directly with an airline vs. a 3rd party site (and I'm talking general not co-branded.) I'd check the airline for booking, anyway, after using Kayak to find the best fare. It's usually the same price you find at those sites and if there's an issue down the line, you can deal with the airline directly instead of a third party portal.

For what it's worth, I do end up doing this whenever I find I can get the same rate. Seems like it's about 50/50 in my experience. I've heard horror stories of booking through a third party and getting left stranded so I try to be cognizant of that.

 

[SFBayDuck]

Quarterly RSU vesting day

Stock is up 4% today

 

[Peggy]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

What kind of categories do you typically have big spend on?

I still think the Chase Sapphires are great starter cards if interested in points. Chase points are much more valuable than most issuers due to the Hyatt and United tie-ins. These have the highest end travel protections although other issuers are catching up.

You could also look for co-branded cards of some specific airline or hotel you favor.

If you just want cash back, I would look into putting enough assets at BAC/Merrill to get their 75% kicker and go with a couple of their cards. Premium Rewards gets you 2.625% everywhere and 3.5% on dining/travel. Throw in a Customized Cash (or multiple) to get 5.25% in a category you choose (subject to $2500 quarterly limit) and 3.5% at warehouse stores like Costco.

Bold is what I do.

5.25% on Gas and Dining
3.5% on Travel and Groceries
2.625% on everything else

Plus another 1% or two on gas from Kroger/Fred Meyer loyalty.

Not the very best but I don't want to spend the time churning travel cards and managing annual fees. No annual fees.

 

[-OZ-]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

What kind of categories do you typically have big spend on?

I still think the Chase Sapphires are great starter cards if interested in points. Chase points are much more valuable than most issuers due to the Hyatt and United tie-ins. These have the highest end travel protections although other issuers are catching up.

You could also look for co-branded cards of some specific airline or hotel you favor.

If you just want cash back, I would look into putting enough assets at BAC/Merrill to get their 75% kicker and go with a couple of their cards. Premium Rewards gets you 2.625% everywhere and 3.5% on dining/travel. Throw in a Customized Cash (or multiple) to get 5.25% in a category you choose (subject to $2500 quarterly limit) and 3.5% at warehouse stores like Costco.

Bold is what I do.

5.25% on Gas and Dining
3.5% on Travel and Groceries
2.625% on everything else

Plus another 1% or two on gas from Kroger/Fred Meyer loyalty.

Not the very best but I don't want to spend the time churning travel cards and managing annual fees. No annual fees.

Man that’s tempting. Does the $100k include IRAs? I’m not sure I want to leave M1 but maybe it’s worth having a fourth brokerage (TSP, Robin Hood, M1) plus E*Trade for the kids.

Currently the best I got is 5% gas and dining, 6% grocery (annual fee card), 5% utilities, 5% Amazon, 3% warehouse clubs, 1.5% everything else.

Credit Cards: Find the Right Bank of America Credit Card For You

Bank of America offers credit cards for all your financial needs, from travel rewards to cash back. Choose a Bank of America credit card based on the benefits you want.

www.ml.com

That’s a lot of options.

 

[Peggy]

I know we have some credit card people here - can I get some good resources to pick a new card? Something with layman's terms? I find the concept of the reward points to be pretty overwhelming, to be honest - I hear a lot about travel perks and whatnot but I get (frankly) overwhelmed at all of the options and don't understand logistically how accessing the rewards work. Hence why I've always stuck with a cash-back option, because I understand how it works. Most of my spending is on the Capital One Quicksilver. I'm a CPA and a partner at an accounting firm, so it's not like I'm financially illiterate, but for some reason this has been something I've never been able to wrap my head around.

For what it's worth, I don't really have a particular need for new credit - I pay my current cards off every month. The issue I'm finding is that my credit limits are very low relative to my income, and even a moderately priced vacation (for example) is tripping my credit utilization metrics on my credit score. I'm in the 790s but would love to beef that up a bit, I think having more access to credit would help, even if I don't end up using it. May as well consider some options for new cards.

What kind of categories do you typically have big spend on?

I still think the Chase Sapphires are great starter cards if interested in points. Chase points are much more valuable than most issuers due to the Hyatt and United tie-ins. These have the highest end travel protections although other issuers are catching up.

You could also look for co-branded cards of some specific airline or hotel you favor.

If you just want cash back, I would look into putting enough assets at BAC/Merrill to get their 75% kicker and go with a couple of their cards. Premium Rewards gets you 2.625% everywhere and 3.5% on dining/travel. Throw in a Customized Cash (or multiple) to get 5.25% in a category you choose (subject to $2500 quarterly limit) and 3.5% at warehouse stores like Costco.

Bold is what I do.

5.25% on Gas and Dining
3.5% on Travel and Groceries
2.625% on everything else

Plus another 1% or two on gas from Kroger/Fred Meyer loyalty.

Not the very best but I don't want to spend the time churning travel cards and managing annual fees. No annual fees.

Man that’s tempting. Does the $100k include IRAs? I’m not sure I want to leave M1 but maybe it’s worth having a fourth brokerage (TSP, Robin Hood, M1) plus E*Trade for the kids.

Currently the best I got is 5% gas and dining, 6% grocery (annual fee card), 5% utilities, 5% Amazon, 3% warehouse clubs, 1.5% everything else.

Credit Cards: Find the Right Bank of America Credit Card For You

Bank of America offers credit cards for all your financial needs, from travel rewards to cash back. Choose a Bank of America credit card based on the benefits you want.

www.ml.com

That’s a lot of options.

Yes, all accounts at BoA/Merrill combined including IRA or Roth IRA at Merrill Edge.

The Elite card has an steep annual fee. Use either the Premium or the Travel card. I've been using the travel card so it looks like I might be missing out on a half percentage point there. It worked great though. No international fees and I used it for a cracked windshield on a rental car, a lot of paperwork but got reimbursed just fine.

ETA: The Premium card has an annual fee too, just not as big as the Elite's. That's probably why I've always just stuck with the Travel card.

 

[bcat01]

I was reading about Roth 401k's and saw that there is a five year withdraw rule for these as well. This also includes rollover funds from a standard 401k. Would it be a good idea to contribute something to a Roth 401k now just incase I would want to rollover funds in the future?

 

[SFBayDuck]

I was reading about Roth 401k's and saw that there is a five year withdraw rule for these as well. This also includes rollover funds from a standard 401k. Would it be a good idea to contribute something to a Roth 401k now just incase I would want to rollover funds in the future?

Are you talking contributions or conversions, as there are different 5 year rules for those. There's actually another for inherited Roths as well, we'll ignore that one here.

Contributions - you can withdraw anytime. But earnings on those contributions, you must have had any Roth account open for at least 5 years and be 59 1/2. So if you've never had a Roth and you are in your 50s, and plan to contribute in the future, get one open so that clock starts ticking.

Conversions - each conversion has its own 5 year period. So doing a little now doesn't really do any good.

This spells it out pretty well.

 

[bcat01]

I was reading about Roth 401k's and saw that there is a five year withdraw rule for these as well. This also includes rollover funds from a standard 401k. Would it be a good idea to contribute something to a Roth 401k now just incase I would want to rollover funds in the future?

Are you talking contributions or conversions, as there are different 5 year rules for those. There's actually another for inherited Roths as well, we'll ignore that one here.

Contributions - you can withdraw anytime. But earnings on those contributions, you must have had any Roth account open for at least 5 years and be 59 1/2. So if you've never had a Roth and you are in your 50s, and plan to contribute in the future, get one open so that clock starts ticking.

Conversions - each conversion has its own 5 year period. So doing a little now doesn't really do any good.

This spells it out pretty well.

Thanks for the link. I was looking at conversions.

 

[SFBayDuck]

I was reading about Roth 401k's and saw that there is a five year withdraw rule for these as well. This also includes rollover funds from a standard 401k. Would it be a good idea to contribute something to a Roth 401k now just incase I would want to rollover funds in the future?

Are you talking contributions or conversions, as there are different 5 year rules for those. There's actually another for inherited Roths as well, we'll ignore that one here.

Contributions - you can withdraw anytime. But earnings on those contributions, you must have had any Roth account open for at least 5 years and be 59 1/2. So if you've never had a Roth and you are in your 50s, and plan to contribute in the future, get one open so that clock starts ticking.

Conversions - each conversion has its own 5 year period. So doing a little now doesn't really do any good.

This spells it out pretty well.

Thanks for the link. I was looking at conversions.

You also specifically mention Roth 401Ks. Those have a 5 year rule from the first contribution, just like a Roth IRA does. But if you roll it over to a Roth IRA, and have had one open for at least 5 years, it would meet that. Remember a rollover is not a conversion.

ETA - A rollover is just moving funds from one account to another of the same type - so like a trad 401K to an IRA, or a Roth 401K to a Roth IRA. A conversion is moving from one type of account to another, so a traditional IRA to a Roth, or after-tax 401k funds to Roth 401K.

Also the five year clock is based on tax years - so you could conceivably contribute on April 14th in 2025 for the 2024 tax year, and the 5 year clock would start Jan 1, 2024.

 

[Peggy]

I was reading about Roth 401k's and saw that there is a five year withdraw rule for these as well. This also includes rollover funds from a standard 401k. Would it be a good idea to contribute something to a Roth 401k now just incase I would want to rollover funds in the future?

Are you talking contributions or conversions, as there are different 5 year rules for those. There's actually another for inherited Roths as well, we'll ignore that one here.

Contributions - you can withdraw anytime. But earnings on those contributions, you must have had any Roth account open for at least 5 years and be 59 1/2. So if you've never had a Roth and you are in your 50s, and plan to contribute in the future, get one open so that clock starts ticking.

Conversions - each conversion has its own 5 year period. So doing a little now doesn't really do any good.

This spells it out pretty well.

Thanks for the link. I was looking at conversions.

You also specifically mention Roth 401Ks. Those have a 5 year rule from the first contribution, just like a Roth IRA does. But if you roll it over to a Roth IRA, and have had one open for at least 5 years, it would meet that. Remember a rollover is not a conversion.

ETA - A rollover is just moving funds from one account to another of the same type - so like a trad 401K to an IRA, or a Roth 401K to a Roth IRA. A conversion is moving from one type of account to another, so a traditional IRA to a Roth, or after-tax 401k funds to Roth 401K.

Also the five year clock is based on tax years - so you could conceivably contribute on April 14th in 2025 for the 2024 tax year, and the 5 year clock would start Jan 1, 2024.

And the timeline for conversations is Dec 31st, so it seems December is a good time because you should have a good grasp on that year's income and then it's just 4 years and a few days. I think?1

 

[Chadstroma]

There is a lot of emphasis in this thread about retirement. I thought I would post this for information on reverse mortgages as it is something not many people really understand. (ignore the marketing tone of it, I wrote it for my socials)

Unlock Retirement Freedom with a Reverse Mortgage from UMortgage​

If you're 62 or older and looking for a way to boost your financial freedom in retirement, a reverse mortgage may be the perfect solution. Whether you want to access the equity in your current home or use a reverse mortgage to purchase a new one, UMortgage makes the process simple, fast, and hassle-free—allowing you to enjoy your retirement to the fullest.

What is a Reverse Mortgage?​

A Reverse Mortgage, specifically a Home Equity Conversion Mortgage (HECM), allows you to tap into your home’s equity without the burden of monthly mortgage payments. You can use the funds to cover medical expenses, supplement retirement income, or even downsize or upsize to a new home that better fits your lifestyle.

Key Benefits of a Reverse Mortgage:​

• No Monthly Mortgage Payments: Enjoy living mortgage-free, as long as you meet program requirements such as paying property taxes, insurance, and maintaining the home.
• Minimal Income & Credit Requirements: Reverse mortgages are FHA-insured, making them accessible with minimal income and no credit score requirements.
• Retain Ownership: You remain on the title and keep full ownership of your home.
• Flexible Payout Options: Choose to receive your funds as a lump sum, monthly payments, a line of credit, or a combination of these options.

Using a Reverse Mortgage to Purchase a Home​

Did you know you can also purchase a new home with a reverse mortgage? Whether you want to downsize, move closer to family, or buy your dream retirement home, a reverse mortgage can make it easier to afford your new property without the stress of monthly mortgage payments.

By using a reverse mortgage for a home purchase, you’ll need to provide a significant down payment, typically from the sale of your current home or other savings. The reverse mortgage will cover the remaining cost, allowing you to enjoy your new home without the financial strain of a traditional mortgage.

How Does a Reverse Mortgage Work?​

To qualify for a reverse mortgage, you need to meet these basic requirements:

• Age 62 or Older: You must be at least 62 years old.
• Primary Residence: The home must be your primary residence.
• Sufficient Home Equity: You need enough equity in the home to qualify.

Once approved, you can access your home’s equity based on current interest rates, the home’s appraised value, and the age of the youngest borrower. Whether you’re looking to supplement your retirement income, pay off medical bills, or purchase a new home, a reverse mortgage offers flexibility and freedom.

Flexible Payout Options:​

• Lump Sum: Receive all the money upfront.
• Monthly Payments: Enjoy a steady income stream.
• Line of Credit: Draw on the funds as needed, with unused credit growing over time.
• Combination: Mix and match payout options to fit your financial needs.

Why Choose UMortgage for Your Reverse Mortgage?​

At UMortgage, we specialize in making the reverse mortgage process smooth, fast, and stress-free. Our common-sense underwriting approach eliminates unnecessary delays, and most loans close in as little as 15 days. Plus, as an FHA-insured loan, you can feel confident knowing your reverse mortgage is backed by the government.

Security & Peace of Mind:​

• Government Insured: All HECM loans are FHA-backed, providing a secure and reliable loan process.
• No Repayment While Living in Your Home: As long as you live in your home, maintain it, and continue paying property taxes and insurance, you don’t have to worry about repaying the loan.
• Equity Growth: Any remaining equity in the home goes directly to you or your heirs once the loan is repaid.

Is a Reverse Mortgage Right for You?​

A reverse mortgage may be the ideal financial solution if:

• You are 62 years or older.
• You plan to live in your home as your primary residence.
• You have sufficient equity in your home.
• You want to purchase a new home or access funds for retirement without monthly mortgage payments.

Additionally, before closing on a reverse mortgage, you’ll attend a HUD-approved counseling session to ensure the loan aligns with your financial goals.

Ready to Unlock Your Home’s Equity?​

Take control of your retirement with a reverse mortgage from UMortgage. Whether you’re accessing the equity in your current home or purchasing a new one, our easy, no-hassle process ensures you get the financial freedom you deserve. Contact me today to explore how a reverse mortgage can help you live the retirement of your dreams!

 

[Redwes25]

There is a lot of emphasis in this thread about retirement. I thought I would post this for information on reverse mortgages as it is something not many people really understand. (ignore the marketing tone of it, I wrote it for my socials)

Unlock Retirement Freedom with a Reverse Mortgage from UMortgage​

If you're 62 or older and looking for a way to boost your financial freedom in retirement, a reverse mortgage may be the perfect solution. Whether you want to access the equity in your current home or use a reverse mortgage to purchase a new one, UMortgage makes the process simple, fast, and hassle-free—allowing you to enjoy your retirement to the fullest.

What is a Reverse Mortgage?​

A Reverse Mortgage, specifically a Home Equity Conversion Mortgage (HECM), allows you to tap into your home’s equity without the burden of monthly mortgage payments. You can use the funds to cover medical expenses, supplement retirement income, or even downsize or upsize to a new home that better fits your lifestyle.

Key Benefits of a Reverse Mortgage:​

• No Monthly Mortgage Payments: Enjoy living mortgage-free, as long as you meet program requirements such as paying property taxes, insurance, and maintaining the home.
• Minimal Income & Credit Requirements: Reverse mortgages are FHA-insured, making them accessible with minimal income and no credit score requirements.
• Retain Ownership: You remain on the title and keep full ownership of your home.
• Flexible Payout Options: Choose to receive your funds as a lump sum, monthly payments, a line of credit, or a combination of these options.

Using a Reverse Mortgage to Purchase a Home​

Did you know you can also purchase a new home with a reverse mortgage? Whether you want to downsize, move closer to family, or buy your dream retirement home, a reverse mortgage can make it easier to afford your new property without the stress of monthly mortgage payments.

By using a reverse mortgage for a home purchase, you’ll need to provide a significant down payment, typically from the sale of your current home or other savings. The reverse mortgage will cover the remaining cost, allowing you to enjoy your new home without the financial strain of a traditional mortgage.

How Does a Reverse Mortgage Work?​

To qualify for a reverse mortgage, you need to meet these basic requirements:

• Age 62 or Older: You must be at least 62 years old.
• Primary Residence: The home must be your primary residence.
• Sufficient Home Equity: You need enough equity in the home to qualify.

Once approved, you can access your home’s equity based on current interest rates, the home’s appraised value, and the age of the youngest borrower. Whether you’re looking to supplement your retirement income, pay off medical bills, or purchase a new home, a reverse mortgage offers flexibility and freedom.

Flexible Payout Options:​

• Lump Sum: Receive all the money upfront.
• Monthly Payments: Enjoy a steady income stream.
• Line of Credit: Draw on the funds as needed, with unused credit growing over time.
• Combination: Mix and match payout options to fit your financial needs.

Why Choose UMortgage for Your Reverse Mortgage?​

At UMortgage, we specialize in making the reverse mortgage process smooth, fast, and stress-free. Our common-sense underwriting approach eliminates unnecessary delays, and most loans close in as little as 15 days. Plus, as an FHA-insured loan, you can feel confident knowing your reverse mortgage is backed by the government.

Security & Peace of Mind:​

• Government Insured: All HECM loans are FHA-backed, providing a secure and reliable loan process.
• No Repayment While Living in Your Home: As long as you live in your home, maintain it, and continue paying property taxes and insurance, you don’t have to worry about repaying the loan.
• Equity Growth: Any remaining equity in the home goes directly to you or your heirs once the loan is repaid.

Is a Reverse Mortgage Right for You?​

A reverse mortgage may be the ideal financial solution if:

• You are 62 years or older.
• You plan to live in your home as your primary residence.
• You have sufficient equity in your home.
• You want to purchase a new home or access funds for retirement without monthly mortgage payments.

Additionally, before closing on a reverse mortgage, you’ll attend a HUD-approved counseling session to ensure the loan aligns with your financial goals.

Ready to Unlock Your Home’s Equity?​

Take control of your retirement with a reverse mortgage from UMortgage. Whether you’re accessing the equity in your current home or purchasing a new one, our easy, no-hassle process ensures you get the financial freedom you deserve. Contact me today to explore how a reverse mortgage can help you live the retirement of your dreams!

This doesn’t cover the fact that interest and fees are added to mortgage so debt slowly increases. While it is a product right for some seems like this description is missing that key info and makes it sound like free money.

 

[Chadstroma]

There is a lot of emphasis in this thread about retirement. I thought I would post this for information on reverse mortgages as it is something not many people really understand. (ignore the marketing tone of it, I wrote it for my socials)

Unlock Retirement Freedom with a Reverse Mortgage from UMortgage​

If you're 62 or older and looking for a way to boost your financial freedom in retirement, a reverse mortgage may be the perfect solution. Whether you want to access the equity in your current home or use a reverse mortgage to purchase a new one, UMortgage makes the process simple, fast, and hassle-free—allowing you to enjoy your retirement to the fullest.

What is a Reverse Mortgage?​

A Reverse Mortgage, specifically a Home Equity Conversion Mortgage (HECM), allows you to tap into your home’s equity without the burden of monthly mortgage payments. You can use the funds to cover medical expenses, supplement retirement income, or even downsize or upsize to a new home that better fits your lifestyle.

Key Benefits of a Reverse Mortgage:​

• No Monthly Mortgage Payments: Enjoy living mortgage-free, as long as you meet program requirements such as paying property taxes, insurance, and maintaining the home.
• Minimal Income & Credit Requirements: Reverse mortgages are FHA-insured, making them accessible with minimal income and no credit score requirements.
• Retain Ownership: You remain on the title and keep full ownership of your home.
• Flexible Payout Options: Choose to receive your funds as a lump sum, monthly payments, a line of credit, or a combination of these options.

Using a Reverse Mortgage to Purchase a Home​

Did you know you can also purchase a new home with a reverse mortgage? Whether you want to downsize, move closer to family, or buy your dream retirement home, a reverse mortgage can make it easier to afford your new property without the stress of monthly mortgage payments.

By using a reverse mortgage for a home purchase, you’ll need to provide a significant down payment, typically from the sale of your current home or other savings. The reverse mortgage will cover the remaining cost, allowing you to enjoy your new home without the financial strain of a traditional mortgage.

How Does a Reverse Mortgage Work?​

To qualify for a reverse mortgage, you need to meet these basic requirements:

• Age 62 or Older: You must be at least 62 years old.
• Primary Residence: The home must be your primary residence.
• Sufficient Home Equity: You need enough equity in the home to qualify.

Once approved, you can access your home’s equity based on current interest rates, the home’s appraised value, and the age of the youngest borrower. Whether you’re looking to supplement your retirement income, pay off medical bills, or purchase a new home, a reverse mortgage offers flexibility and freedom.

Flexible Payout Options:​

• Lump Sum: Receive all the money upfront.
• Monthly Payments: Enjoy a steady income stream.
• Line of Credit: Draw on the funds as needed, with unused credit growing over time.
• Combination: Mix and match payout options to fit your financial needs.

Why Choose UMortgage for Your Reverse Mortgage?​

At UMortgage, we specialize in making the reverse mortgage process smooth, fast, and stress-free. Our common-sense underwriting approach eliminates unnecessary delays, and most loans close in as little as 15 days. Plus, as an FHA-insured loan, you can feel confident knowing your reverse mortgage is backed by the government.

Security & Peace of Mind:​

• Government Insured: All HECM loans are FHA-backed, providing a secure and reliable loan process.
• No Repayment While Living in Your Home: As long as you live in your home, maintain it, and continue paying property taxes and insurance, you don’t have to worry about repaying the loan.
• Equity Growth: Any remaining equity in the home goes directly to you or your heirs once the loan is repaid.

Is a Reverse Mortgage Right for You?​

A reverse mortgage may be the ideal financial solution if:

• You are 62 years or older.
• You plan to live in your home as your primary residence.
• You have sufficient equity in your home.
• You want to purchase a new home or access funds for retirement without monthly mortgage payments.

Additionally, before closing on a reverse mortgage, you’ll attend a HUD-approved counseling session to ensure the loan aligns with your financial goals.

Ready to Unlock Your Home’s Equity?​

Take control of your retirement with a reverse mortgage from UMortgage. Whether you’re accessing the equity in your current home or purchasing a new one, our easy, no-hassle process ensures you get the financial freedom you deserve. Contact me today to explore how a reverse mortgage can help you live the retirement of your dreams!

This doesn’t cover the fact that interest and fees are added to mortgage so debt slowly increases. While it is a product right for some seems like this description is missing that key info and makes it sound like free money.

First, thank you for the response. I know sometimes people are reluctant to give constructive criticism but I an thankful for it.

I think that your comment is fair and valid. I think on my part, it was a failure of thinking through as a complete novice to it which obviously my aim was to talk to that kind of person. Just as much as if I was talking about ITIN, DSCR, or a Home Equity Loan... where I would not specifically state that there is interest and fees as part of the loan as that is something that is common knowledge. I mean, I can't think out of any of my thousands of conversations with people who more than a couple had zero knowledge about mortgage or personal finance that I had to make sure they knew there was a cost to the loan. That being said, a Reverse Mortgage is different enough where maybe someone who did not know about the product may not automatically know that it is a loan and therefore has cost to it.

This hasn't published yet so I can go in and edit to add that this is indeed a loan- that there are no free lunches- and that means the money you get does have a cost.

 

[The_Man]

25 years of buy and hold in an S&P 500 Index Fund for my and my wife's retirement account

After today, we're another 0.7% rise in the S&P from being co-millionaires. Second kid is in his final semester of college and then we can start putting away/setting aside some more significant money. My work has a retirement plan Roth IRA - am I right in thinking that I'm allowed to contribute to an employer-sponsored Roth even if our joint income surpasses the Roth income limit?

I know advisors stress the importance of some tax-free retirement money. But on the other hand, we've both gotten significant salary bumps in the last couple of years and so are now in the highest tax bracket we're ever likely to be in. I feel like if we max out on what we put into our 403B, we'd end up saving like $10 or 12K in taxes and then I could put that "found" money into a Roth

Any practical advice?

I also feel like the S&P is stupidly high right now and I should probably diversify a little, but I've felt that way plenty of times over the past quarter-century and have been rewarded many times over by never taking action on that feeling

 

[Chadstroma]

There is a lot of emphasis in this thread about retirement. I thought I would post this for information on reverse mortgages as it is something not many people really understand. (ignore the marketing tone of it, I wrote it for my socials)

Unlock Retirement Freedom with a Reverse Mortgage from UMortgage​

If you're 62 or older and looking for a way to boost your financial freedom in retirement, a reverse mortgage may be the perfect solution. Whether you want to access the equity in your current home or use a reverse mortgage to purchase a new one, UMortgage makes the process simple, fast, and hassle-free—allowing you to enjoy your retirement to the fullest.

What is a Reverse Mortgage?​

A Reverse Mortgage, specifically a Home Equity Conversion Mortgage (HECM), allows you to tap into your home’s equity without the burden of monthly mortgage payments. You can use the funds to cover medical expenses, supplement retirement income, or even downsize or upsize to a new home that better fits your lifestyle.

Key Benefits of a Reverse Mortgage:​

• No Monthly Mortgage Payments: Enjoy living mortgage-free, as long as you meet program requirements such as paying property taxes, insurance, and maintaining the home.
• Minimal Income & Credit Requirements: Reverse mortgages are FHA-insured, making them accessible with minimal income and no credit score requirements.
• Retain Ownership: You remain on the title and keep full ownership of your home.
• Flexible Payout Options: Choose to receive your funds as a lump sum, monthly payments, a line of credit, or a combination of these options.

Using a Reverse Mortgage to Purchase a Home​

Did you know you can also purchase a new home with a reverse mortgage? Whether you want to downsize, move closer to family, or buy your dream retirement home, a reverse mortgage can make it easier to afford your new property without the stress of monthly mortgage payments.

By using a reverse mortgage for a home purchase, you’ll need to provide a significant down payment, typically from the sale of your current home or other savings. The reverse mortgage will cover the remaining cost, allowing you to enjoy your new home without the financial strain of a traditional mortgage.

How Does a Reverse Mortgage Work?​

To qualify for a reverse mortgage, you need to meet these basic requirements:

• Age 62 or Older: You must be at least 62 years old.
• Primary Residence: The home must be your primary residence.
• Sufficient Home Equity: You need enough equity in the home to qualify.

Once approved, you can access your home’s equity based on current interest rates, the home’s appraised value, and the age of the youngest borrower. Whether you’re looking to supplement your retirement income, pay off medical bills, or purchase a new home, a reverse mortgage offers flexibility and freedom.

Flexible Payout Options:​

• Lump Sum: Receive all the money upfront.
• Monthly Payments: Enjoy a steady income stream.
• Line of Credit: Draw on the funds as needed, with unused credit growing over time.
• Combination: Mix and match payout options to fit your financial needs.

Why Choose UMortgage for Your Reverse Mortgage?​

At UMortgage, we specialize in making the reverse mortgage process smooth, fast, and stress-free. Our common-sense underwriting approach eliminates unnecessary delays, and most loans close in as little as 15 days. Plus, as an FHA-insured loan, you can feel confident knowing your reverse mortgage is backed by the government.

Security & Peace of Mind:​

• Government Insured: All HECM loans are FHA-backed, providing a secure and reliable loan process.
• No Repayment While Living in Your Home: As long as you live in your home, maintain it, and continue paying property taxes and insurance, you don’t have to worry about repaying the loan.
• Equity Growth: Any remaining equity in the home goes directly to you or your heirs once the loan is repaid.

Is a Reverse Mortgage Right for You?​

A reverse mortgage may be the ideal financial solution if:

• You are 62 years or older.
• You plan to live in your home as your primary residence.
• You have sufficient equity in your home.
• You want to purchase a new home or access funds for retirement without monthly mortgage payments.

Additionally, before closing on a reverse mortgage, you’ll attend a HUD-approved counseling session to ensure the loan aligns with your financial goals.

Ready to Unlock Your Home’s Equity?​

Take control of your retirement with a reverse mortgage from UMortgage. Whether you’re accessing the equity in your current home or purchasing a new one, our easy, no-hassle process ensures you get the financial freedom you deserve. Contact me today to explore how a reverse mortgage can help you live the retirement of your dreams!

This doesn’t cover the fact that interest and fees are added to mortgage so debt slowly increases. While it is a product right for some seems like this description is missing that key info and makes it sound like free money.

First, thank you for the response. I know sometimes people are reluctant to give constructive criticism but I an thankful for it.

I think that your comment is fair and valid. I think on my part, it was a failure of thinking through as a complete novice to it which obviously my aim was to talk to that kind of person. Just as much as if I was talking about ITIN, DSCR, or a Home Equity Loan... where I would not specifically state that there is interest and fees as part of the loan as that is something that is common knowledge. I mean, I can't think out of any of my thousands of conversations with people who more than a couple had zero knowledge about mortgage or personal finance that I had to make sure they knew there was a cost to the loan. That being said, a Reverse Mortgage is different enough where maybe someone who did not know about the product may not automatically know that it is a loan and therefore has cost to it.

This hasn't published yet so I can go in and edit to add that this is indeed a loan- that there are no free lunches- and that means the money you get does have a cost.

Added this before it was published today...

Keep in mind this is a loan and there is interest and other costs associated with these products.

 

[-OZ-]

am I right in thinking that I'm allowed to contribute to an employer-sponsored Roth even if our joint income surpasses the Roth income limit?

Yes. AFAIK there’s no Roth limit in 401k or similar plans. Just the IRA.

are now in the highest tax bracket we're ever likely to be in.

Then it makes sense to go all traditional. What’s your portfolio’s current total Roth vs traditional mix? I want some Roth at least but you can convert later.

I also feel like the S&P is stupidly high right now and I should probably diversify a little, but I've felt that way plenty of times over the past quarter-century and have been rewarded many times over by never taking action on that feeling

i like a blend. Something like 30% international, 40% large cap US, 30% small cap US. But it’s up to you and that hasn’t been the best lately.

 

[Peggy]

25 years of buy and hold in an S&P 500 Index Fund for my and my wife's retirement account

After today, we're another 0.7% rise in the S&P from being co-millionaires. Second kid is in his final semester of college and then we can start putting away/setting aside some more significant money. My work has a retirement plan Roth IRA - am I right in thinking that I'm allowed to contribute to an employer-sponsored Roth even if our joint income surpasses the Roth income limit?

I know advisors stress the importance of some tax-free retirement money. But on the other hand, we've both gotten significant salary bumps in the last couple of years and so are now in the highest tax bracket we're ever likely to be in. I feel like if we max out on what we put into our 403B, we'd end up saving like $10 or 12K in taxes and then I could put that "found" money into a Roth

Any practical advice?

I also feel like the S&P is stupidly high right now and I should probably diversify a little, but I've felt that way plenty of times over the past quarter-century and have been rewarded many times over by never taking action on that feeling

What Oz said.

Yes you can contribute to any 401k options your employer has. There are no income limitations. Roth contributions are after tax so no you don't want to do Roth contributions when you are in a high tax bracket. Wait until you retire, have little income and low tax bracket and then convert the regular 401k to a Roth and pay the tax then.

You can do a backdoor roth outside of the employer retirement account, if you have extra cash, to get around the income limits.

The closer you get to retirement the more you want to diversify (less risk) away from just an S&P.

 

[pecorino]

am I right in thinking that I'm allowed to contribute to an employer-sponsored Roth even if our joint income surpasses the Roth income limit?

Yes. AFAIK there’s no Roth limit in 401k or similar plans. Just the IRA.

are now in the highest tax bracket we're ever likely to be in.

Then it makes sense to go all traditional. What’s your portfolio’s current total Roth vs traditional mix? I want some Roth at least but you can convert later.

I also feel like the S&P is stupidly high right now and I should probably diversify a little, but I've felt that way plenty of times over the past quarter-century and have been rewarded many times over by never taking action on that feeling

i like a blend. Something like 30% international, 40% large cap US, 30% small cap US. But it’s up to you and that hasn’t been the best lately.

Yes, different blends for different folks with different time horizons and/or risk tolerance. I used to be 100% in equities but have been more like 90/10 after turning fifty. I am at the high end of risk tolerance. When the S&P gets richer, like now, I'll shift to more like 70/30. My guess is that purists will say you should pick your mix and forget about everything else. But I'm like the original poster and like to make tweaks when markets are pushing me that way. For example, I recently went deeper into BND and TLT thinking that rates are just beginning to come down.

 

[The_Man]

25 years of buy and hold in an S&P 500 Index Fund for my and my wife's retirement account

After today, we're another 0.7% rise in the S&P from being co-millionaires.

...

I also feel like the S&P is stupidly high right now and I should probably diversify a little, but I've felt that way plenty of times over the past quarter-century and have been rewarded many times over by never taking action on that feeling

Whee! I'm a millionaire (who still basically lives paycheck to paycheck)

S&P 500 is literally up one-third over the past year and I'm thinking this weekend might be the first time to do some rebalancing

 

[SFBayDuck]

25 years of buy and hold in an S&P 500 Index Fund for my and my wife's retirement account

After today, we're another 0.7% rise in the S&P from being co-millionaires.

...

I also feel like the S&P is stupidly high right now and I should probably diversify a little, but I've felt that way plenty of times over the past quarter-century and have been rewarded many times over by never taking action on that feeling

Whee! I'm a millionaire (who still basically lives paycheck to paycheck)

S&P 500 is literally up one-third over the past year and I'm thinking this weekend might be the first time to do some rebalancing

Congrats!

As for your earlier questions, I tend to agree that you should stuff the traditional 401K up to the limit when you're in a high tax bracket. But does your plan allow for after-tax contributions and in-plan Roth conversions?