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Yup, its happened to me before. I think you're talking about "safe harbor". Basically you and all your big baller colleagues are contributing far more than all the poor folks in the company and the government don't like that. Google it for a far better explanation.
We get notices of it potentially happening every year but it has never kicked in for us
Forget the bonds.
That seems to be the case. I think when they stopped the match people stopped contributing and that's when it kicked in.
I hear ya.
I think a company wide email calling out those 401k laggards is in order.moleculo said:
Possibly. If it was a "safe harbor match" that was terminated and not a discretionary one, then yes.
Good luck affording it if you wait until age 60 to buy it. And good luck even qualifying, since odds are much higher that you'll have some disqualifying condition by that point, too.
FWIW, my financial advisor does not want to manage my (or his other clients) 401k accounts. He said he will give them some advice on security selection but he prefers that they take some ownership to help them better understand the markets and keep track of what's going on from month to month. Costs him some money though but I like that approach.
That's interesting. My firm wouldn't even allow me to advise on assets held away like that...
Interesting.
It’s worth looking into for comparison sake. You may be paying 1% for the lifecycle fund so a switch to the brokerage window could drop those costs considerably. Of course the advisor is going to charge you and you may end up back around 1% but with someone actively managing your money in a coordinated fashion. Or you could move it to the brokerage window and manage it yourself. I’m making a lot of assumptions here but worth a look.
How would I determine what the costs are for the fund I am in now (Vanguard Target Date Fund 2030). I can get into my account but don't see any costs?
It’s on your account page somewhere but as gruecdr mentioned it’s going to be low given it’s Vanguard. It will not even be close to 1% and is most likely .15%. I’d still explore the brokerage option and hear what you advisor has in mind. But definitely consider the additional cost before making any decision. Nothing wrong with a set it and forget option like a Lifecycle fund.
I know personal capital was going to add my TSP to the bill. Wasn't going to sign up with them anyway but that sealed it.
So you are looking for the price of the CUSIP on 9/6/18? Send it to me and I'll check around.
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No dice on what I can access. Sent it to a friend to look up on his Bloomberg if he hasn't already gone on paternity leave since yesterday. This would be much easier in the office where I could walk over to a terminal.
My pop has his money with Edward Jones, so I told him to call them and lean on em a bit. If you are going to pay somebody to manage your cash, they ought to be good for this.
You and Suzy Orman are not happy about this. I voluntarily underpay so much each year that I get hit with a penalty, but I make more investing the underpayment throughout the year so I haven't been motivated to submit a new w4.
My property tax and house insurance come to about $6000. I just figure on using withholding as my escrow. It's probably not right, but has worked for 30 years.
It doesn't matter if I'm happy. I just don't get the logic. Ok. At least there's a thought process to this. It's not optimal, but if you're happy.
If Desert Power can’t get it for you, you might look at https://emma.msrb.org/ and see if the bond traded that date and use that. Good chance with a MTA bond.
Any advice on additional investment options? I've been bad at investing til recently but planning on looking at all options.
Braver than me. I like breaking even. Hard to do in CA. I hate getting huge tax bills.
Correct. And to answer you other question, investing in index funds in a fidelity brokerage is a great idea. That’s my vote given you are taking advantage of the tax deferred plans, HSAs and Roth already. Build that after tax portfolio. Down the road you can get into individual stocks if you like.
So apparently this bond is very illiquid and only trades "by appointment"....which explains why information is so hard to come by. There was a trade of 109.152 on 9/4/18 and a trade of 108.513 on 9/13/18 with nothing in between on the terminal. Hope this helps.Gawain said:
Yeah, with how crazy 2020 was I had no idea if I was under or over and made some moves to make sure I wasn't underpaying. Turns out I way overpaid both feds and state. Ah, well. I just chalk it up to another reason 2020 will always be "that year".
Or maybe not.
Would it fly to just average those two and call it good? If the IRS calls you down on that it seems a reasonable solution.
Since 401 is typically pre-tax, how does that factor into your calculation? How about a company match? I assume college savings count but what about home equity? I know lots of questions. Just trying to determine if I could get to your percentage as a fun little exercise.
That’s crazy. With 3 kids, no clue how I’d ever do that until they were out on their own. I know we’re at least 20ish% although I guess I should count college payments in there since I’m trying to not touch investments for that and have done decent so far. Would definitely bump up the %.
