Personal Finance Advice and Education! (2 Viewers)

[Redwes25]

So I consider the pension separate from our investment portfolio, but feel confident with a higher equity allocation in retirement, possibly 80/20.

I think this is a better way to think of it than i have been. I'm not sure it should replace a bond allocation, but instead allow for more risk leading to and into retirement like you say. In a way I suppose that's kind of the same thing, but another layer of diversity. Perhaps a pension allows for (just spitballing) an 80/20 instead of 70/30 or 60/40 with similar risk without one.

Staying close to 100% equities minus EF and dry powder for the next 3-5 years and then begin to derisk towards an 80/20 split doesn't seem unreasonable or reckless. Thanks for your thoughts.

If I were you I would think about starting to build to the 80/20 split earlier. Wouldn't want to sell big chunk in a down market but slowly building to 20% makes sense - like 2 to 3% per year.

 

[Payne]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

 

[The Longtime Lurker]

So I consider the pension separate from our investment portfolio, but feel confident with a higher equity allocation in retirement, possibly 80/20.

I think this is a better way to think of it than i have been. I'm not sure it should replace a bond allocation, but instead allow for more risk leading to and into retirement like you say. In a way I suppose that's kind of the same thing, but another layer of diversity. Perhaps a pension allows for (just spitballing) an 80/20 instead of 70/30 or 60/40 with similar risk without one.

Staying close to 100% equities minus EF and dry powder for the next 3-5 years and then begin to derisk towards an 80/20 split doesn't seem unreasonable or reckless. Thanks for your thoughts.

If I were you I would think about starting to build to the 80/20 split earlier. Wouldn't want to sell big chunk in a down market but slowly building to 20% makes sense - like 2 to 3% per year.

Makes sense, i like that approach and I'm in no rush. I'm starting to think about the draw down vs accumulation as we get closer and a slow transition is a good plan. 100% equities was never the plan and i was 80/20 for a long time, but covid and the recent turmoil had me chasing the deals at the expense of the fixed income portion of my portfolio. Then i got to thinking maybe it's not necessary with a pension, but i think it's still beneficial and seems most that commented agree. Thanks for the reply.

 

[-OZ-]

So I consider the pension separate from our investment portfolio, but feel confident with a higher equity allocation in retirement, possibly 80/20.

I think this is a better way to think of it than i have been. I'm not sure it should replace a bond allocation, but instead allow for more risk leading to and into retirement like you say. In a way I suppose that's kind of the same thing, but another layer of diversity. Perhaps a pension allows for (just spitballing) an 80/20 instead of 70/30 or 60/40 with similar risk without one.

Staying close to 100% equities minus EF and dry powder for the next 3-5 years and then begin to derisk towards an 80/20 split doesn't seem unreasonable or reckless. Thanks for your thoughts.

If I were you I would think about starting to build to the 80/20 split earlier. Wouldn't want to sell big chunk in a down market but slowly building to 20% makes sense - like 2 to 3% per year.

That’s what we’re doing. The only question right now is when to start and how fast to get to the desired allocation. There isn’t a “right” answer imo.

 

[matttyl]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Have enough cash on hand to get through an emergency (6 months of expenses if possible). Don’t have any high interest debt. Do Roth as much as you can, HSA as well if eligible. After that, it all depends on what you want to do - what your goal is, to know how to best utilize different account structures.

 

[Sand]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Just remember a FA will typically want 1% of your 4% withdrawal rate. If you can find a fixed fee person that may be more economical.

On the practical stuff 59 leaves you 6 years until Medicare. Do you have retiree medical through your company? If not you need to figure out that coverage. Easiest way to do that is build up enough money in a regular brokerage account to control your income until 65 so you can get subsidies with an ACA plan. Having the ability to control your taxable income can end up saving you a lot. So not knowing anything other than a couple sentences there that's what I'd look into.

 

[Payne]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Have enough cash on hand to get through an emergency (6 months of expenses if possible). Don’t have any high interest debt. Do Roth as much as you can, HSA as well if eligible. After that, it all depends on what you want to do - what your goal is, to know how to best utilize different account structures.

Have cash on hand. Do have some debt including some parental student loans for daughters. Should have hit the 529 more.
Looking back I would have preferred a better balance between our 401k's and 529's.
My wife likes to say "we made our kids rich".

I am no longer able to fund an HSA. My company was merged (closed) shortly after we were acquired, and I lost my job in 2023.
Do not have an HD HSA plan at new employer. However, I do have about $15k currently sitting in my HSA account.

 

[Payne]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Just remember a FA will typically want 1% of your 4% withdrawal rate. If you can find a fixed fee person that may be more economical.

On the practical stuff 59 leaves you 6 years until Medicare. Do you have retiree medical through your company? If not you need to figure out that coverage. Easiest way to do that is build up enough money in a regular brokerage account to control your income until 65 so you can get subsidies with an ACA plan. Having the ability to control your taxable income can end up saving you a lot. So not knowing anything other than a couple sentences there that's what I'd look into.

Can you elaborate or direct me to where I can educate myself in regard to the highlighted above.
How is a brokerage account funded? Cash in bank?

My old 401k is just sitting there. I believe my options are I can leave it, transfer it to new 401k or move to traditional IRA.

Appreciate everything.

 

[Sand]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Just remember a FA will typically want 1% of your 4% withdrawal rate. If you can find a fixed fee person that may be more economical.

On the practical stuff 59 leaves you 6 years until Medicare. Do you have retiree medical through your company? If not you need to figure out that coverage. Easiest way to do that is build up enough money in a regular brokerage account to control your income until 65 so you can get subsidies with an ACA plan. Having the ability to control your taxable income can end up saving you a lot. So not knowing anything other than a couple sentences there that's what I'd look into.

Can you elaborate or direct me to where I can educate myself in regard to the highlighted above.
How is a brokerage account funded? Cash in bank?

My old 401k is just sitting there. I believe my options are I can leave it, transfer it to new 401k or move to traditional IRA.

Appreciate everything.

What I mean by brokerage is just post-tax monies. Money in a bank, savings account, regular brokerage account. Not a Roth, 401k, IRA, etc. So building up monies outside your retirement accounts. Since that money has already been taxed it isn't income when you use it (401k, regular IRA is regular income when you take it out after 59.5 years old - before that it's regular income plus a 10% penalty).

Since that money is already taxed and doesn't have to be regular income like a 401k withdrawal does you can do some cool things with it - take out enough 401k/IRA monies to get to the standard deduction (and maybe a bit more) and then use regular money for expenses. To the IRS this means you earned 30k this year and if you need ACA insurance you'd get pretty good subsidies. It's all a money shell game to (legally!) keep as much money in your pocket and out of the IRS's hands as possible.

 

[matttyl]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Have enough cash on hand to get through an emergency (6 months of expenses if possible). Don’t have any high interest debt. Do Roth as much as you can, HSA as well if eligible. After that, it all depends on what you want to do - what your goal is, to know how to best utilize different account structures.

Have cash on hand. Do have some debt including some parental student loans for daughters. Should have hit the 529 more.
Looking back I would have preferred a better balance between our 401k's and 529's.
My wife likes to say "we made our kids rich".

I am no longer able to fund an HSA. My company was merged (closed) shortly after we were acquired, and I lost my job in 2023.
Do not have an HD HSA plan at new employer. However, I do have about $15k currently sitting in my HSA account.

Reading your answers below, I think it again comes back to what do you want to do? You’re 51, and currently working. When would you like to retire? If after 59.5, you’ll have (penalty free) access to your 401k. If before that, you’ll need to adjust your plan, possibly incorporating a brokerage account (after tax bucket). If you’re planning on closer to 65/67, then you’ll not only have access to your 401k, but also social security. Lots of factors to consider.

Personally, my plan is to be financially independent as quickly as possible, within reason. I’m younger than you (wife and I still in early 40s), with a kid in the 3rd grade - but as my job centers around health insurance sales - one government shift and I could be out of a job, or at least out of that particular income stream. I’d like to be able to go do something because I want to, not because I have to, by age 55 or so. Because of that I’m trying to use all three types of “buckets” for money - pretax (traditional 401k and IRA), tax free (Roth and HSA) as well as after tax (brokerage) as each work differently in both accumulation rules as well as distribution rules when it comes to taxes. Your results could vary, and likely do.

 

[Peggy]

So I consider the pension separate from our investment portfolio, but feel confident with a higher equity allocation in retirement, possibly 80/20.

I think this is a better way to think of it than i have been. I'm not sure it should replace a bond allocation, but instead allow for more risk leading to and into retirement like you say. In a way I suppose that's kind of the same thing, but another layer of diversity. Perhaps a pension allows for (just spitballing) an 80/20 instead of 70/30 or 60/40 with similar risk without one.

Staying close to 100% equities minus EF and dry powder for the next 3-5 years and then begin to derisk towards an 80/20 split doesn't seem unreasonable or reckless. Thanks for your thoughts.

If I were you I would think about starting to build to the 80/20 split earlier. Wouldn't want to sell big chunk in a down market but slowly building to 20% makes sense - like 2 to 3% per year.

That’s what we’re doing. The only question right now is when to start and how fast to get to the desired allocation. There isn’t a “right” answer imo.

I prefer getting to your desired allocation right away. That way you can rebalance in the current volatile market selling high and buying low. I've rebalanced twice in the last two months.

 

[Peggy]

Ok, I am just going to throw this out there. Obviously, a financial advisor appt might be in my future.

51 years old. I have a good amount of money in my 401k, which was transitioned from a Profit-Sharing plan after my company was acquired.
Wife has a traditional 401k also with a fair amount of money in it.
We each have a Roth IRA with a much smaller amount.

Currently we have our dollars spread out over several mutual funds. We have done very well just letting things ride.

Should we be doing something else?

Well, what’s your goal? How close are you to that goal. Much different answer here if you are hoping/planning to retire at 55 than at 67.

Great question. My 401k is currently managed by Empower. Using their tool and entering 59 as my retirement age, it states I am at 100% of my goal.

I understand your question, but I was looking for more high-level, basic advice. This is probably why an appt with an advisor would be wise.
I knew enough 20 years ago to just sit it and forget it, but as I get closer, I wonder if there are things I should be doing that I'm not.

Just remember a FA will typically want 1% of your 4% withdrawal rate. If you can find a fixed fee person that may be more economical.

On the practical stuff 59 leaves you 6 years until Medicare. Do you have retiree medical through your company? If not you need to figure out that coverage. Easiest way to do that is build up enough money in a regular brokerage account to control your income until 65 so you can get subsidies with an ACA plan. Having the ability to control your taxable income can end up saving you a lot. So not knowing anything other than a couple sentences there that's what I'd look into.

Can you elaborate or direct me to where I can educate myself in regard to the highlighted above.
How is a brokerage account funded? Cash in bank?

My old 401k is just sitting there. I believe my options are I can leave it, transfer it to new 401k or move to traditional IRA.

Appreciate everything.

Yes, brokerage is just cash at a bank that let's you invest it. It's a taxable account though so you can't just buy and sell without tax consequences like you can in a retirement account. If you have the cash you'd want to use that in retirement first though, usually, why the retirement accounts grow tax sheltered.

If you transfer your 401K to a regular IRA you wouldnt be able to do backdoor roth conversations any longer. But you do want it somewhere where you can invest it how you see fit.

I wouldn't pay a financial advisor, the basics and fundamentals are pretty easy to learn. There are a bunch of book recommendations in the Retire Early thread.

 

[-OZ-]

So I consider the pension separate from our investment portfolio, but feel confident with a higher equity allocation in retirement, possibly 80/20.

I think this is a better way to think of it than i have been. I'm not sure it should replace a bond allocation, but instead allow for more risk leading to and into retirement like you say. In a way I suppose that's kind of the same thing, but another layer of diversity. Perhaps a pension allows for (just spitballing) an 80/20 instead of 70/30 or 60/40 with similar risk without one.

Staying close to 100% equities minus EF and dry powder for the next 3-5 years and then begin to derisk towards an 80/20 split doesn't seem unreasonable or reckless. Thanks for your thoughts.

If I were you I would think about starting to build to the 80/20 split earlier. Wouldn't want to sell big chunk in a down market but slowly building to 20% makes sense - like 2 to 3% per year.

That’s what we’re doing. The only question right now is when to start and how fast to get to the desired allocation. There isn’t a “right” answer imo.

I prefer getting to your desired allocation right away. That way you can rebalance in the current volatile market selling high and buying low. I've rebalanced twice in the last two months.

Understood, and that makes sense if it works for you. For me, while I’m buying I don’t mind if things go on sale. I want the best return for my target. While in retirement, stability becomes important.

 

[jm192]

Had a decent sized money market fund on Vanguard. Threw it all into VXUS yesterday. Portfolio has gotten way lopsided with like 70% VOO/VTI.

My new aim has been to clean up which assets are in which account to make it simpler to tax loss harvest in the taxable account.

We've got like no bonds. Just our I-bonds purchases.

 

[b-snatchers]

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

 

[Runkle]

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

 

[-OZ-]

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

I listen to far too many. Stacking Benjamin’s is an old standby. Two sides of FI was great in the early episodes. If you want to nerd out, risk parity has good stuff but if you don’t like sound bites you’ll hate it.

 

[Desert_Power]

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

I listen to far too many. Stacking Benjamin’s is an old standby. Two sides of FI was great in the early episodes. If you want to nerd out, risk parity has good stuff but if you don’t like sound bites you’ll hate it.

Two sides of FI is one of the only ones I listen to each episode of when they come out.

Wonder why you put the early qualifier on it as I’ve never listened to their archive.

 

[-OZ-]

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

I listen to far too many. Stacking Benjamin’s is an old standby. Two sides of FI was great in the early episodes. If you want to nerd out, risk parity has good stuff but if you don’t like sound bites you’ll hate it.

Two sides of FI is one of the only ones I listen to each episode of when they come out.

Wonder why you put the early qualifier on it as I’ve never listened to their archive.

Might just be me, but I feel like their last few months haven’t been as good as previous episodes.

 

[Desert_Power]

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

I listen to far too many. Stacking Benjamin’s is an old standby. Two sides of FI was great in the early episodes. If you want to nerd out, risk parity has good stuff but if you don’t like sound bites you’ll hate it.

Two sides of FI is one of the only ones I listen to each episode of when they come out.

Wonder why you put the early qualifier on it as I’ve never listened to their archive.

Might just be me, but I feel like their last few months haven’t been as good as previous episodes.

They are very much in the post-FI/going through RE mindset right now. I find those conversations very interesting. YMMV, of course.

 

[Sand]

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

 

[jm192]

2nd HSA

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

Just my general impression to listening over the last few years: I think they're actually pretty decent dudes. I assume they make decent coin off the podcast. They really try to give you the information to do it yourself.

But to be fair, If you can manage 50K in investments, you can manage 10 million in investments.

If you're maintaining your investing plan and keeping your asset allocation, you're just always doing the same thing. This is a big reason I think Financial advisors that charge a % or AUM fee are a rip off. It's not like the money becomes harder to manage. You keep investing it. You let it sit there and grow. You occasionally tax loss harvest

 

[matttyl]

2nd HSA

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

Just my general impression to listening over the last few years: I think they're actually pretty decent dudes. I assume they make decent coin off the podcast. They really try to give you the information to do it yourself.

But to be fair, If you can manage 50K in investments, you can manage 10 million in investments.

If you're maintaining your investing plan and keeping your asset allocation, you're just always doing the same thing. This is a big reason I think Financial advisors that charge a % or AUM fee are a rip off. It's not like the money becomes harder to manage. You keep investing it. You let it sit there and grow. You occasionally tax loss harvest

Agreed, I think they are good dudes in general. Brian recent wrote a book which became a NYT best seller I believe. Their basic advice is pretty simple, the FOO (financial order of operations) similar to “the baby steps”, but I think is more mathematically sound and applies to more folks. It’s interesting how many people contact them with a question and their simple answer is right there in the FOO - like “I’d like to start a college savings plan for my child while paying off my 15% interest credit card, how much should I invest?” On the FOO, “high interest debt” is a step 3 deal while college savings is a step 8 deal.

All that said, their contest can be very repetitive - though I’ve been enjoying their recent line of podcasts “making a millionaire” where they take real people and do a financial checkup and give advice in real world situations. And these are real people, not the multi millionaires who already have all they will ever need. These are folks with a household income of around $100k with kids just trying to do the best they can.

 

[brun]

2nd HSA

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

Just my general impression to listening over the last few years: I think they're actually pretty decent dudes. I assume they make decent coin off the podcast. They really try to give you the information to do it yourself.

But to be fair, If you can manage 50K in investments, you can manage 10 million in investments.

If you're maintaining your investing plan and keeping your asset allocation, you're just always doing the same thing. This is a big reason I think Financial advisors that charge a % or AUM fee are a rip off. It's not like the money becomes harder to manage. You keep investing it. You let it sit there and grow. You occasionally tax loss harvest

Agreed, I think they are good dudes in general. Brian recent wrote a book which became a NYT best seller I believe. Their basic advice is pretty simple, the FOO (financial order of operations) similar to “the baby steps”, but I think is more mathematically sound and applies to more folks. It’s interesting how many people contact them with a question and their simple answer is right there in the FOO - like “I’d like to start a college savings plan for my child while paying off my 15% interest credit card, how much should I invest?” On the FOO, “high interest debt” is a step 3 deal while college savings is a step 8 deal.

All that said, their contest can be very repetitive - though I’ve been enjoying their recent line of podcasts “making a millionaire” where they take real people and do a financial checkup and give advice in real world situations. And these are real people, not the multi millionaires who already have all they will ever need. These are folks with a household income of around $100k with kids just trying to do the best they can.

Haven't seen them before. I have watched Caleb Hammer who does some entertaining financial audits, focusing on debt reduction. Found that The Money Guy show turned the tables on Caleb and audited him. Seemed like a legitimate and honest discussion.
https://youtu.be/JKeNDz0HNsQ?si=xb0ahtM_GBnie5Kk

 

[jm192]

2nd HSA has landed on Fidelity. Now just need the 401K moved from Schwab to Fidelity. But the HSA's were the bigger problem.

HSA Bank and Health Equity now both have their own investing platform. So you have to invest in their options. Health Equity has a monthly investing fee (at least on our employer plan). Our employer actually stopped using them recently. Not sure the reason. We switched to the Platinum plan in anticipation of having the twins. We're having Twins btw.

HSA Bank, I haven't seen their platform. Originally you invested through TD Ameritrate and then Schwab after the acquisition. They sent an e-mail a while back stating you would no longer be able to put money into Schwab. And all cash in Schwab would be kicked to your HSAB account. And you'd have the option to invest using their new "cutting edge" platform. I don't know what it looks like or what they charge to invest. But I'm sure it's closer to Health Equity than the freedom of Fidleity/Schwab.

 

[jm192]

I'm going to contact Schwab tomorrow to see if I can start the process to move our 401K. It's actually a decent 401K. But there's 50$ per year in fees. Which isn't a ton in the grand scheme. But I'm also paying about that for Fidelity through my current job. No sense in paying double fees.

Our schwab account--most of the investments have slightly higher expense ratios as well. It's a minor thing, another thing in favor of consolidating all of the money.

 

[matttyl]

2nd HSA

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

Just my general impression to listening over the last few years: I think they're actually pretty decent dudes. I assume they make decent coin off the podcast. They really try to give you the information to do it yourself.

But to be fair, If you can manage 50K in investments, you can manage 10 million in investments.

If you're maintaining your investing plan and keeping your asset allocation, you're just always doing the same thing. This is a big reason I think Financial advisors that charge a % or AUM fee are a rip off. It's not like the money becomes harder to manage. You keep investing it. You let it sit there and grow. You occasionally tax loss harvest

Agreed, I think they are good dudes in general. Brian recent wrote a book which became a NYT best seller I believe. Their basic advice is pretty simple, the FOO (financial order of operations) similar to “the baby steps”, but I think is more mathematically sound and applies to more folks. It’s interesting how many people contact them with a question and their simple answer is right there in the FOO - like “I’d like to start a college savings plan for my child while paying off my 15% interest credit card, how much should I invest?” On the FOO, “high interest debt” is a step 3 deal while college savings is a step 8 deal.

All that said, their contest can be very repetitive - though I’ve been enjoying their recent line of podcasts “making a millionaire” where they take real people and do a financial checkup and give advice in real world situations. And these are real people, not the multi millionaires who already have all they will ever need. These are folks with a household income of around $100k with kids just trying to do the best they can.

Haven't seen them before. I have watched Caleb Hammer who does some entertaining financial audits, focusing on debt reduction. Found that The Money Guy show turned the tables on Caleb and audited him. Seemed like a legitimate and honest discussion.
https://youtu.be/JKeNDz0HNsQ?si=xb0ahtM_GBnie5Kk

Yes, they are very friendly with one another - likely to feed off of each others audiences. My wife loves listening to Caleb, but she doesn’t get much financial information out of it since the vast majority on his show is in massive debt and isn’t yet at a place where they can invest. The exceptions are the only fan ladies who have massive incomes, but they are also just on his show to grow their own audience.

 

[-OZ-]

2nd HSA

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

Just my general impression to listening over the last few years: I think they're actually pretty decent dudes. I assume they make decent coin off the podcast. They really try to give you the information to do it yourself.

But to be fair, If you can manage 50K in investments, you can manage 10 million in investments.

If you're maintaining your investing plan and keeping your asset allocation, you're just always doing the same thing. This is a big reason I think Financial advisors that charge a % or AUM fee are a rip off. It's not like the money becomes harder to manage. You keep investing it. You let it sit there and grow. You occasionally tax loss harvest

Agreed, I think they are good dudes in general. Brian recent wrote a book which became a NYT best seller I believe. Their basic advice is pretty simple, the FOO (financial order of operations) similar to “the baby steps”, but I think is more mathematically sound and applies to more folks. It’s interesting how many people contact them with a question and their simple answer is right there in the FOO - like “I’d like to start a college savings plan for my child while paying off my 15% interest credit card, how much should I invest?” On the FOO, “high interest debt” is a step 3 deal while college savings is a step 8 deal.

All that said, their contest can be very repetitive - though I’ve been enjoying their recent line of podcasts “making a millionaire” where they take real people and do a financial checkup and give advice in real world situations. And these are real people, not the multi millionaires who already have all they will ever need. These are folks with a household income of around $100k with kids just trying to do the best they can.

Have you tried the Pete the planner podcast? You might like it. Also money for couples with rahmit Sethi. I stopped listening to him a while ago but he dies the case study approach.

 

[jm192]

Fidelity is down this morning. Confirmed on Reddit others are having the same issue. Kind of an annoying day to have an issue. Should have invested the HSA money on Friday.

 

[-OZ-]

Markets looking sexy this morning.

Still not back to the highs but hopefully nobody pulled their investments out last month.

 

[Runkle]

I am starting to listen to podcasts regarding financial advice - mostly geared towards retirement. My favorite right now is Jill on Money because she answers callers questions and isn't trying to get you to join their financial institution like other shows.

Just wondering what others like for podcasts and if there are any additional recommendations of podcasts I can listen to that are similar.

Partial to The Money Guy show for newbies. It gets very repetitive after a while, though... they keep hammering the same points: time in the market beats timing the market, dollar cost average, etc. They have a thing called the "financial order of operations" which lays out exactly where your money should be going in steps: first-save enough to cover your deductibles. Then max out your employer match. Then pay off high-interest debt, then build an emergency fund, contribute to a Roth IRA, then max out your other retirement funds, etc. Once you get the hang of their spiel you can dip out. They also take questions and address current topics. They are a financial planning firm so every episode ends with a pitch to sign on, but, they're clear that most people don't need it until they've got multiple millions to manage.

In other words please don't waste our time until we can extract big fees.

The pitch is very much along the lines of "when you do need advice from someone who's seen it all and done it a thousand times, you don't need to come to us, but what you do want to look for is a fee-only fiduciary"

 

[gianmarco]

So, question about what to do about the following:

20 year old son going to be starting at a school in Barcelona for the next 3 years. Just got his student visa. Good chance he ends up staying in Europe once he's completed.

He is doing some house sitting for a colleague of mine, will earn about $3K doing so.

He currently has a Roth account from working some during the last few years.

1. Does he need to file a tax return on this income? Better question, understanding it may not be "legal", SHOULD he file a tax return on this money considering he is leaving the country in a few months for the next few years, minimum?

2. Can he put this in a Roth if he doesn't file a tax return? If not, is it better to file and invest it in the Roth or not file and just not bother with it?

 

[Wooderson]

So, question about what to do about the following:

20 year old son going to be starting at a school in Barcelona for the next 3 years. Just got his student visa. Good chance he ends up staying in Europe once he's completed.

He is doing some house sitting for a colleague of mine, will earn about $3K doing so.

He currently has a Roth account from working some during the last few years.

1. Does he need to file a tax return on this income? Better question, understanding it may not be "legal", SHOULD he file a tax return on this money considering he is leaving the country in a few months for the next few years, minimum?

2. Can he put this in a Roth if he doesn't file a tax return? If not, is it better to file and invest it in the Roth or not file and just not bother with it?

2. It's my understanding he would have to file a return to show his income to contribute to a ROTH IRA. He can't contribute more than he has earned for the year.

 

[Instinctive]

So, question about what to do about the following:

20 year old son going to be starting at a school in Barcelona for the next 3 years. Just got his student visa. Good chance he ends up staying in Europe once he's completed.

He is doing some house sitting for a colleague of mine, will earn about $3K doing so.

He currently has a Roth account from working some during the last few years.

1. Does he need to file a tax return on this income? Better question, understanding it may not be "legal", SHOULD he file a tax return on this money considering he is leaving the country in a few months for the next few years, minimum?

2. Can he put this in a Roth if he doesn't file a tax return? If not, is it better to file and invest it in the Roth or not file and just not bother with it?

2. It's my understanding he would have to file a return to show his income to contribute to a ROTH IRA. He can't contribute more than he has earned for the year.

It's not like he would have any taxes owed really on that amount anyway. Worth filing to get the benefits of socking it away Roth style IMO

 

[Juxtatarot]

If a contribution is made but no income reported, it appears (via ChatGPT) that the IRS penalty is 6% of the contribution per year.

 

[jm192]

Talked to Schwab and Fidelity today. Sold out of my investments on Schwab at a pretty high point. Initiated the roll over to my Fidelity 401K.
Should have a check in 3-5 business days.

 

[Payne]

So, question about what to do about the following:

20 year old son going to be starting at a school in Barcelona for the next 3 years. Just got his student visa. Good chance he ends up staying in Europe once he's completed.

He is doing some house sitting for a colleague of mine, will earn about $3K doing so.

He currently has a Roth account from working some during the last few years.

1. Does he need to file a tax return on this income? Better question, understanding it may not be "legal", SHOULD he file a tax return on this money considering he is leaving the country in a few months for the next few years, minimum?

2. Can he put this in a Roth if he doesn't file a tax return? If not, is it better to file and invest it in the Roth or not file and just not bother with it?

My oldest daughter just came back from a month in Europe before starting graduate school.
She visited London, Paris, Amsterdam, Munich, Florence, Rome, Greece and finally Barcelona. Attended the F1 race there Sunday.
Said PAris was easily the worst and she would love to live in Barcelona. Said she never felt unsafe and it was beautiful.

 

[matttyl]

So the tax bill currently in Congress seems to have an interesting bit about a possible increase HSA contribution limit. Trying to wrap my head around it. Effectively it would roughly double the current contribution limits (4,400 for and individual, 8,750 I think for family)…..but only if you’re under an income limit of an AGI of $75k for an individual and $150k for married filing jointly. Phaseout from there to $100k for an individual and $200k for MFJ. No additional contribution amount over those.

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

 

[bcat01]

So the tax bill currently in Congress seems to have an interesting bit about a possible increase HSA contribution limit. Trying to wrap my head around it. Effectively it would roughly double the current contribution limits (4,400 for and individual, 8,750 I think for family)…..but only if you’re under an income limit of an AGI of $75k for an individual and $150k for married filing jointly. Phaseout from there to $100k for an individual and $200k for MFJ. No additional contribution amount over those.

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

I was confused with what AGI you would use if only one spouse had an HSA.

 

[Sand]

So the tax bill currently in Congress seems to have an interesting bit about a possible increase HSA contribution limit. Trying to wrap my head around it. Effectively it would roughly double the current contribution limits (4,400 for and individual, 8,750 I think for family)…..but only if you’re under an income limit of an AGI of $75k for an individual and $150k for married filing jointly. Phaseout from there to $100k for an individual and $200k for MFJ. No additional contribution amount over those.

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

Yes, that's the way I read it. Solution - move to a trailer in Iuka, MS to lower cost of living.

 

[Desert_Power]

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

Early retired people...

 

[matttyl]

So the tax bill currently in Congress seems to have an interesting bit about a possible increase HSA contribution limit. Trying to wrap my head around it. Effectively it would roughly double the current contribution limits (4,400 for and individual, 8,750 I think for family)…..but only if you’re under an income limit of an AGI of $75k for an individual and $150k for married filing jointly. Phaseout from there to $100k for an individual and $200k for MFJ. No additional contribution amount over those.

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

I was confused with what AGI you would use if only one spouse had an HSA.

You mean married filing jointly, but only one spouse had a high deductible health plan with an HSA? I’d imagine the $150 AGI number would be used (phaseout at $200k), but your additional contribution would be 4,400, not an additional $8k+.

 

[bcat01]

So the tax bill currently in Congress seems to have an interesting bit about a possible increase HSA contribution limit. Trying to wrap my head around it. Effectively it would roughly double the current contribution limits (4,400 for and individual, 8,750 I think for family)…..but only if you’re under an income limit of an AGI of $75k for an individual and $150k for married filing jointly. Phaseout from there to $100k for an individual and $200k for MFJ. No additional contribution amount over those.

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

I was confused with what AGI you would use if only one spouse had an HSA.

You mean married filing jointly, but only one spouse had a high deductible health plan with an HSA? I’d imagine the $150 AGI number would be used (phaseout at $200k), but your additional contribution would be 4,400, not an additional $8k+.

Yes, jointly with only one HSA. Some of the articles I read made it confusing if you could still use the $150K AGI.

 

[matttyl]

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

Early retired people...

I guess, with cash on hand (as they don’t have income). And since they don’t have income (unless pulling from pre tax accounts when over 59.5), the tax deduction isn’t as powerful.

Just to make sure I’m getting this - Say you’re MFJ with an AGI of $155k before this new rule. Can you then put the additional $8k into your HSA thus lowering your AGI to $147k which is what it would need to have been to make the $8k additional contribution anyway?

 

[Instinctive]

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

Early retired people...

I guess, with cash on hand (as they don’t have income). And since they don’t have income (unless pulling from pre tax accounts when over 59.5), the tax deduction isn’t as powerful.

Just to make sure I’m getting this - Say you’re MFJ with an AGI of $155k before this new rule. Can you then put the additional $8k into your HSA thus lowering your AGI to $147k which is what it would need to have been to make the $8k additional contribution anyway?

The before and after of tax stuff interests me.

As I understand the general rule is to take all the deductions and such to get to AGI, and then check to see if any of them are disallowed at that level.

But then some stuff is AGI and some is MAGI so it's not always as simple.

 

[gianmarco]

Btw, I don't remember seeing that new i-bond rate discussed.

Currently a pretty strong 1.1% fixed rate and a combined rate of 3.98%.

That's not much lower than my current HYSA rate and a solid fixed rate for the future.

 

[matttyl]

Perhaps a bit of a complicated question, but here goes.

My wife and I are at a point where we can just max out our annual HSA contribution limit as well as each of our 401k contribution limits (all directly from earned income) without squeezing the purse strings too tightly. We also have money in an after tax/brokerage account.

Next year, it’s looking like the HSA contribution limit may double to over 17k for a couple, and I’m not too far away from being able to take advantage of catch up contributions (an extra 7,500+ into my 401k). I’m not sure we have the income to do all of that.

How would one go about weighing the pros and cons of pulling money out of your after tax/brokerage account for living expenses so that you can take advantage of those increased contribution limits?

I’m thinking of pulling $15k from after tax (say half is basis half is long term capital gains). 15% LTCG would be lower than our 22% fed + 5% state rates, so that’s a plus, and I’m only taxed on gains. Money would no longer be as liquid, so that’s a minus. Future distributions would be at ordinary income rates rather than LTCG rates, unless for medical. At this point I’m not too worried about future RMDs. Am I missing something? I’d hate to not take full advantage of these tax advantaged accounts if I’m able to.

 

[The Z Machine]

I think pulling from LTCG asset sales and putting into a tax advantaged account would be a good idea if you can swap like for like securities.

 

[-OZ-]

While nice, I can’t see it impacting all that many people - what family with an AGI of under $150k realistically has the ability (or desire) to contribute more than $8,750 into their HSA? I mean the full contribution amount (if they are eligible) would be over 10% of their AGI. Am I reading/thinking about this right?

Depends on priorities. We’re about $150k. AGI and max two Roth IRAs, my TSP and contribute over $9k to a regular brokerage. But our health insurance is great, low cost and not HSA eligible.

Btw, I don't remember seeing that new i-bond rate discussed.

Currently a pretty strong 1.1% fixed rate and a combined rate of 3.98%.

That's not much lower than my current HYSA rate and a solid fixed rate for the future.

Yep. I’ll be putting in at least $10k before it changes. I’ve mentioned our plan but these funds are intended for a mix of a new house (or 2), third tier EF, and early retirement funds.