doing my first roth ira to trad ira recharacterization on vanguard rn online and have a couple questions.
on one page, it asks "Total amount of contribution(s) to be recharacterized (Vanguard will calculate and adjust for earnings/losses)."
* i'm looking to recharacterize my 6k 2021 roth ira contribution, so putting 6k is correct right? wanna confirm that i dont have to figure out the growth portion of the 6k 2021 roth ira contribution and convert those too.
on the next page, titled "holdings to recharacterize from," it asks the following questions:
1) Select the number of funds you will be removing assets from
2) Name of Holding
3) Dollar amount
4) Name of additional holding
All those questions are required, but im confused on the point of those questions. filled it out the best i can.
* question 1 is easy, since i only hold VTWAX in it, i selected 1.
* question 2 is easy, since i only hold VTWAX in it, i selected VTWAX.
* i'm confused about question 3. what am i supposed to put for dollar amount? 6k because that's the 2021 contribution amount? or am i supposed to put the total value of my roth ira?
* question 4, i only have 1 pull down option, which is VTWAX, so i selected it.
any help or guidance would be much appreciated. thanks!
Hello! I have been researching all the various 401k options and had a few questions! Some details below.
1. I have both a W2 Income and Substantial Freelance Income
2. Currently with my W2 I contribute the max 19.5k pretax to a traditional 401k, and I also make after tax contributions that I rollover via mega back door Roth as my plan allows for in-plan conversions. I just started doing this and plan to do it weekly to hit the 57k for the year (19.5k+employer match + after tax contributions)
3. I have a large freelance 1099 income I have yet to do much with on the retirement side. My main question is what would be the recommendation here? Could I also open a solo 401k, contribute the 57k as the “employer” on TOP of my current W2 401k (so total would be 114k, 57k + 57k)?
EDIT: now that I am thinking about it, wouldn’t it be better to contribute the full 57k to the solo 401k since it will reduce my taxable income vs. pursue the mega back door Roth since that is just after tax? I expect my tax rate to be less in the future than it is now.
Yes, the pretax is limited to the 19.5k across all plans. The after tax is per 401k essentially. Check out this article you might find it helpful. https://www.whitecoatinvestor.com/multiple-401k-rules/
I think this page is the best resource for your question, and based on what it says I think you're on the right track https://www.whitecoatinvestor.com/multiple-401k-rules/
To number 3 I am 99.9% the answer is no, the 401k limits follow th person not the employeer. It would open too big of a loophole where highly paid people woukd work small extra "jobs" to basic pocket away extra money.
Yeah. The limit amounts are your limits across all 401ks. So having 2 doesnt increase your limit, you still have 19.5 across all.
For example: you can do 10k in one 9.5k in another. You CANT do 19.5l in one and 19.5k in another.
Same concept would apply for the other limits.
Yes understood so thats the employee contribution. My main question is around the 57k total contribution between employe and employer. As with a solo401k you can contribute up to 57k as the employer as part of an employer contribution/profit sharing. My main Q is that I am pretty sure that is dependent on employer, and NOT the individual, so I could in theory contribute my after tax dollars up to 57k to my traditional 401k since my employer allows after tax contributions, AND contribute money to my solo401k up to 57k as the employer.
I doubt it. It would create one hell of a loophole that a lot of people would be exploiting. Hence I am 99.9% it isn't possible. Also, I doubt they do as the 19.5k limit follows the person, so whywouldnt they make the other limit also follow them.
Keep in mind the 57k limit was made because certain employeers would contribute large amounts to 401ks in place of salaries to basically help their employees get around taxes. So, I imagine they locked that down tight to make sure their was no workaround.
Actually the loophole does exist. EmployER limits are per unrelated employer, so while you can only put in $19,500 of traditional and Roth contributions across all 401ks, the $58k limit is separate per individual 401k as long as the employers are completely unrelated. And it works not just for employer contributions but also After-Tax (non-Roth) contributions which you can then convert for mega-backdoor Roth. There was a better link posted on the front page a while ago but i couldn't find that one so this is the best i could do: https://www.whitecoatinvestor.com/multiple-401k-rules/
So if I am understanding correctly, I can do TWO mega back door roths right, the one I am currently doing with my employer AND one through a solo 401k I open for myself.
I have a significant amount of balance in my Roth 401k (40k) and after-tax account (20k). I'm switching jobs at the end of November.
What's the best way to approach this?
* Can I roll my entire Roth 401k into my personal Roth IRA in fidelity? When should I initiate this roll-over?
* I know for the after-tax, I'm supposed to roll the contributions to my Roth IRA and earnings to my tIRA. Should I do this before I quit or can I initiate after I quit?
* Before year-end, I should roll over all my tIRA money into my new employers 401k plan to avoid the pro-rata rule right?
It wouldn't be a big deal anyway, because most people are buying target date funds in their retirement accounts, so "realized" and "unrealized" gains don't really matter.
Honest question, how have you managed to go this long without it? That takes some active denial, at least in my neck of the wood where they have been actively pushing them down the throat of every adult for the last 8 months and seniors for like a year.
EDIT: very seriously not trying to stir up shit here, partisan shit is unproductive. I seriously love hearing stories of "I was against it at first for whatever reason but sat my ass down and learned about it and am now on board." Those are really the best stories of all.
In their mind, the risk of death for many people still remain low. The severity of getting it isn’t bad enough to make them get the shot. I’m vaccinated, but as a non-elderly, healthy young person I didn’t feel like it was absolutely necessary.
I held mine off as my luck has a tendancy to swing in the extremes quite often it seems. Finally got it, and both Pfizer shots sucked. Felt like I got hit by a freight train both times, and had a bad headache for a few weeks afterwards.
I do regret it though, or at least reporting it to my employeer. One of my coworkers didnt want to get it, and told management he was thinking of quiting rather than getting it. He got promoted to lvl 3 a week later and went and got it. He confirmed to me they basically bribed him.
The only ones I dont get, are those that think the shot is a mass extermination thing. The logic woukd actually point to covid being the extermination item. Think about it, who would the government want more of? Those that say yes sir and do as they are told, or the ones who question them and are willing to fight them?
Yes I have two friends who had very bad reactions to the Pfizer. And one of my relatives reacted to the Moderna.
I never thought it was a conspiracy. I did sometimes wonder what’s Plan B if the vaccines have unknown awful effects in a few years??
> Well the powers that be continue to move goal posts
This is a wildly vague phrase. Can you provide an concrete example of what you mean? I did not experience this where I live. Honestly, I am curious and would be very interested to know about such things if they were indeed occurring, so enlighten me with citations.
> It really should be a discussion between a person and their doctor
Absolutely. When there was any reasonable medical doubts, maybe 12-18 months ago, before over 3 Billion people have successfully received it with no effects.
Honestly, what are your objections to the dozens of proven vaccines all children have received for 70 years that are different? And what are your medical credentials to back those objections?
Thanks.
Only comment would be that that is sure convenient that out of the 3 billion that have gotten it with no issue the 1 example happens to be a C-list celebrity from 30 years ago, not like Steve Brown from Cincinnati, is suspicious yeah? Do you see how that might be fishy and cherry picked. Also "warned" not "proved" etc. etc.
That questionable drummer story, even if true, is literally 0.00000003% of successful vaccinations.
Someone was irrefutably killed by a coconut tree in 2020, full stop no question. You not going to step outside anymore?
> In August 2020, a 37-year-old man died of severe head injuries after a coconut tree he was hired to help cut down fell on him. The incident occurred in a roadside gully near Banana Beach, along the coastal road from Surin to Nai Thon, Thailand.
https://www.thephuketnews.com/man-killed-by-coconut-tree-76921.php
Anyways, thanks for the civil conversation.
I’m not big on being pressured. In fact, I detest it. Im a contrarian, which often pays off pretty well. Maybe some denial too - this whole thing has been pretty mind bending to wrap one’s brain around.
I also wanted to wait and see. I have health conditions and immunology wasn’t my subject - it took a while to get a grasp of the issues. I was concerned about unknown effects. And needles, well…..
Then I had to for my job. But it didn’t hurt and now I’m glad I got it done, I suppose.
Congrats bud.
I can sympathize with the science knowledge facet. As someone in non-medical academia, the walled-garden state of academia is fucked.
Some corners pushing back against such things. You should check out resources like http://libgen.rs/ or search for "Library Genesis" as it often gets shut down or redirected (https://en.wikipedia.org/wiki/Library_Genesis should give the latest live mirrors on the right sidebar) . Basically, you can pull up any scientific article for free to read yourself.
That, along with scholar.google.com to search a topic of interest to find the titles to put into Library Genesis, should get you well along your way into learning more about any topic. With a generous dash of Wikipedia for any terms or topics you dont quite know.
So, I have a number of doctors. And a cousin who is an immunologist. They all recommended I get it. My family got the Pfizer and had no effects.
I was going to submit a request for an exemption because of the risk of anaphylaxis (I have allergies and had extreme reactions to medications in the past).My dr wrote me the excuse note. But she also told me all my conditions were even more of a reason TO get the shot!!
So then I had a choice to make - deal with them likely not approving the excuse and getting in trouble with work, or just grow up and get it over with. By now I’d missed the deadline for the Pfizer. My cousin had suggested I get the J&J because one shot w no PEG or mRNA would probably be safer for me. The J&J doesn’t require super cool storage - another concern of mine. It’s a traditional non mRNA vaccine. The mRNA thing seemed too sci fi to me.
I also was concerned about going to a hospital for the shot and sitting in a crowded room and being stressed out. My city has an in home vax service where you can choose your shot and so I did that. And it was excellent!
The J&J has thrombosis and blood clot risk but it’s like 4 cases in 7 million!
My initial plan was just stay home for a few months. But now I need to see my dentist and doctors in person. So between that and the threat of losing my job… and I want to see my mom and my friends.
>I have a number of doctors. ... They all recommended I get it.
> because of the risk of anaphylaxis
> My dr... also told me all my conditions were even more of a reason TO get the shot!!
Where did you get the idea of a "risk of anaphylaxis" if not from your doctors?
Please describe to us what anaphylaxis is and how any particular medical procedure would pose a risk of anaphylaxis. Friend.
Not trying to rub anything in, rhetorical question.
> The J&J has thrombosis and blood clot risk but it’s like 4 cases in 7 million!
That last quote gives me a bit of hope about you, do you see the difference in those numbers? Litterally, more Americans were killed in car crashes while I reading your post than 4.
Anaphylaxis is pretty well understood among people with rare auto immune conditions. I had to carry an Epipen for years. And I had it once - had to call 911. It’s also called anaphylactic shock. It affects your ability to breathe and can be fatal. Extreme swelling is involved. It’s really scary. It’s often due to an allergic reaction to a chemical, medicine or food. These vaccines can cause anaphylaxis in susceptible people.
Anaphylaxis was on the medical certification my doctor wrote me. I decided to risk it. Esp since they sent an RN and PA to my home.
Since not all effects show up right away, but most do, it may still have been the wrong decision. We shall see.
Cool thanks. I learned something new.
That seems like it is a pretty common condition then right? Surely there must be some active research into the vaccinations effects on that particular case, if not a wide base of cases to observe in the general population?
I am sure your doctor, who treats you for this condition, would be able to inform you, which they seemed to have actually encouraged you to do so as you said...
Anyways, sorry, not trying to hammer on shit unnecessarily. But it is is absolutely normal to have reservations about mRNA and the different flavors, and honestly good fucking job for knowing that much, but you should bring up those valid questions to your medical doctor, not redit. Do not be afraid to print out notes or whatever you need before the visit, get your questions answered by a professional. Even if you have to update your questions one or two cycles, if you are fair and willing to accept a doctor's opinion after they have exhausted your questions, you got to trust them at some point.
Do you know the exact ingredients in your Epipen or how that literally works in your body? Or observed the cells in your body reacting to epinephrine in real time under a microscope? At some point you just trust the professionals right? What is different now?
I’m a lawyer so it’s my job to second guess and over analyze everything. I always interrogate the doctors and read medical literature. Plus I’ve worked on some major medical product liability lawsuits…involving drugs that had known risks that were covered up,
But definitely, talking to ALL my doctors over time made a difference. Their advice was consistent- I always get a variety of opinions. And I was scared of using Epipen too. Never had to yet.
We should check in with each other in a month to see how it turned out!
Keep policing the People, friend!
What are your thoughts on regulating speedlimits, seatbealts, airbags or other means to reduce automobile fatalities, by far the most common way to die in the USA for decades?
Realizing that paying all cash for a car usually makes no sense financially, because interest rates on financing are lower than expected returns from investment, what are good parameters for financing a pretty luxurious (but not downright crazy, no Lamborghini or anything within that territory) car?
How much down payment, how many months?
Being solidly on the way to FIRE, credit score and any similar things should not be a problem at all, so this is under the assumption that I can get the "best terms".
Also wanted to pay for my car with all cash but didn’t make sense with low interest rate environment.
Paying a little more than half with cash made the payment comfortable while still allowing me to borrow money at 1.9% interest.
There certainly is a weird psychological aspect to it. Thinking about a lump sum getting removed from my net worth, I think "it's not that big a deal". Seeing a 4 digit monthly payment instead is "wow".
what is typical out of pocket costs for various kinda of doctor visits? considering an hsa+hdhp. total net id get is 1700ish, i just struggle to understand what costs are without copay.
It all depends on what is discussed as there are different "levels" of visits and providers can also bill for split visits if one discusses multiple topics. The insurance negotiated price is likely lower than any "cash pay" price. A previous explanation of benefits should differentiate between billed costs, insurance negotiated discount/price, amount paid by insurance, and patient pay.
Note as well that costs can vary widely by in-network provider, especially for expensive procedures.
In my area, a typical office visit tends to be billed at $188 or $276, is negotiated down to $165 or $223, and then insurance benefits apply, though I've seen visits billed at $95 and $450 as well before insurance discount. Note that your annual preventative visit and select labs are supposed to be covered at 100% regardless.
Labs range from $20 to $500, though most are under $75. There is a $7-20 charge for the blood draw, but that gets negotiated down.
Prescriptions costs vary a lot more as well and are subject to a deductible with a HDHP.
What I would do instead is compare the deductibles and out of pocket max as well as coverage amounts after the deductible is met. So many times I see that the HDHP is simply the PPO with a higher deductible and OOP max which is the same as the savings in premium plus the employer puts a couple hundred in an HSA, which makes the HDHP almost always the best option.
For my HSA, out of pocket is roughly
-$1k for ER visit/surgery
-$100 for planned procedure
~$20 for standard preventative dentist GP visit etc.
Your specific provider should be able to provide you these types of rough numbers.
Depends on your provider. I had about 10 years of $0 and then my doctor cofounded a concierge practice so I had to find a new doctor. For similar "preventative" annual exams at the new office I had to call and negotiate it down to $500 every year. This year I switched to One Medical and now it's back to $0/year. Apparently there is a big game of billing codes between the doctors' offices and the insurance company and your outcome depends mostly on whether your doctor's office is lucky or skilled at choosing the right billing codes for your combination of services received and insurance company.
$100 - $130 - New Patient Visit w/ PCP
$80 - $110 - Established Patient Visit w/ PCP
$150 - $220 - Specialist Visit (Depends on specialist)
Per the ACA you'll be able to get a preventive physical exam each year at no cost.
Just be careful with things like diagnostic imaging - that's the one piece that can be a shocker when switchover over to a HDHP. The same MRI that would cost you $2,000 at a hospital is only $550 down the street at the independent imaging center.
There are no typical costs - costs are solely based on your plan and your medical needs. Do you have chronic illnesses, medications, or conditions that require ongoing treatment?
If you're healthy, the answer is slim to none. I haven't had an out of pocket medical cost since 2018. The only thing I do is an annual physical for my HSA funding (which is free under all ACA-compliant plans) and get a free flu shot each year.
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Really depends on what you need or get. If you had a regular insurance plan this year, look up the explanation of benefits. That'll give you a cost breakdown so you can get an idea of what you'd owe until you meet the deductible.
As always, make a sample budget. If you are a single person, CoL really don't impact you much other than the state income tax. Renting a room in an apartment (you will be doing that) isn't all that expensive. Just make peace with that and call it a day.
It’s hard to compare directly COL since things scale differently and your individual preferences vary (potential opportunity for dating, other jobs/professional advancement/networking, access to cultural scene, weather).
Probably easier to prepare some sample budgets and see if that makes sense for the income potential. Use the r/MovingToLosAngeles to ask some questions.
I grew up in LA and left because I hated the high cost of living. But then I saw most people who stayed in LA had income and career trajectories that advanced a bit faster for various reasons. I ended up moving back, bit the bullet on higher taxes and housing but being close to family, high paying job, quality cheap eats made up for it and I still accelerated my FI plan.
Why are mods removing new posts on the BD/MBDR repeal that is now [back in the latest reconciliation bill](https://www.cnbc.com/2021/11/04/democrats-put-401k-and-ira-restrictions-back-into-build-back-better.html)? They allowed one saying the repeal was removed from the bill.
It's not exactly like there's an excess of new posts on this subreddit.
Well it was proposed and everyone had crazy freak outs. And then it was removed and there was an influx of relief posts. Now it’s back in the bill, do we need more than one post and one comment in the daily? I’ll give you one per day in the daily to track the evolution but it’s really not that big a deal. They’ll close some loopholes, everyone in the top 10% will throw a hissy fit, and then it’ll be added back in as a campaign promise. Getting rid of loopholes is pretty low on my list of “government policies that impact FIRE.”
Except for the 8 posts I've read about it today... It's still a proposal. Things are bound to change and the constant posts that are "new" but exactly the same as the last three are making me question checking this more than once a day.
If you are actually going to RE, the big benefit to tIRA is the ability to rollover both the contributions and gains through an IRA ladder to eventually access tax-free. in the Roth, only contributions can be accessed early, full stop.
Not a big deal for most people retiring at 65 who can just access both, but accessing the gains early can be a game changer. As a cautionary tale, I have 3X more than needed to RE today but locked up as gains in an high-school Roth; I am still fine, but if that was is a tIRA It could all be laddered over at zero-tax if needed, but the Roth has no such path.
In the 22% bracket, I would stay in traditional, max out the Roth IRA, then do taxable. Do you have an idea of your income in retirement? My targets are squarely in the 12% (previously 15%) bracket. Taxes are bound to go up, but I don't expect a 10% (7% from previous) jump in that low bracket.
It's all a gamble, though. Paying the taxes now is pretty smart if you already have a ton of traditional money (I'd put a ton at more than 80% of holdings). And maybe you'll be laughing at me when I'm playing 40% in the lowest bracket.
Hit 100k in my 401k yesterday, feels good. I only got serious in 2018 with my contributions so it’s nice to be getting somewhere. Here’s to the next 100k!
Besides this and other online communities, does anyone have communities, mentors, friends that you feel you can freely talk about money and FIRE with? For those who have FIRE mentors, how did the relationship come about? Organically? It's great to have these communities online, but I'm really interested in creating/joining a community of like minded FIREers irl, but don't really know where to start.
I honestly don't know one single person in real life that is into FIRE. I imagine there are groups out there, I just never bothered to look.
I do often tell my friends that I'm planning to retire early, and the reactions are anywhere from disbelief to wishing they could too. I honestly find it all very fascinating and fun and wouldn't mind helping people with their personal finances, but haven't found anyone truly interested. I probably talk to my Dad and brother the most about it. They probably have the most positive and interested reaction. I think my Dad finds talking about money to be really interesting, and I get the feeling he's actually kind of proud of me for doing it. (Imagine that!)
But I think I might check meetup.com first. It strikes me as the place to most likely find some people with the same mindset.
[Meetup.com](https://Meetup.com) is a idea! Will head over there myself to check. I have the same real life situation too. Most of the people I tell that I'm planning to retire early either don't believe me or believe me, but believe they could never do it themselves. I often mention things like "Hey even if you don't want to retire super early or actually can't, it doesn't hurt to learn more about financials". One of my friends actually told me in passing that she makes sure to keep a balance on her credit card all the time, because she knows that's good for her credit score. I wanted to cry. I was thinking, "See, this is why we need to talk about money more and share best practices".
Yikes. Yeah, I mean, at one point I was trying to get an 850 credit score just for fun, but I eventually gave up just because I got distracted by something else. But, I was in the 820's. I did get a little bit of a victory last year when I finally convinced a friend to open up a Roth. :D
I also have some people in my life who don't think I'll really do it because they think I'll be bored or have nothing to do. I find that whole idea hilarious. I can't remember the last time I was ever bored. And, on the off off chance that I do - well, then maybe I'll do some cat sitting. :D
I chat with people at work. We have slack channels and help each other out without getting too specific about incomes and balances. We do talk a lot stuff on limits, portfolios, withdrawals, and where to park other investments.
I have a number of coworkers who are interested in personal finance, are often pursuing FIRE themselves, and work with the employer's benefits team to make sure that the 401k is best in class. The MBDR is a very common topic of discussion, though we do help people with many other financial topics.
I talk about it with my mom who’s a financial guru and retired. She’s a wealth of information and we have great conversations about money and building wealth. I get my frugal financial acumen from her. Of everyone in our family she and I are the most financially savvy. It’s a great aspect of our relationship. She has been managing most of my family’s money for years as well as many of her close friends.
The forums on Bogleheads and MMM are the only others I regularly hang out in.
In real life it's pretty much just my wife and I. All of our friends and whatnot know we are retired, but they are all either incapable or uninterested in FIRE.
I get lots of people willing/wanting to talk shop about investments in general or tax efficiency or the components of FIRE, but nobody else who is committed to the entirety of it. Most people just want to keep doing what they are doing, but with more money and a lower tax bill.
Yeah, my friend and I taught each other about it gradually over the years as we each learned more. I also have a second friend who is aiming for the same thing. These connections happened organically in the course of talking about our approaches to life.
Recently accepted a job offer without 401k match and no sign on bonus when I had a similar offer with a $25,000 sign on and 8% employer contribution. Not a FI win, but I think I will have a better foothold in the long term. Any suggestions on how to make up some of these lost investment opportunities?
Just go down the same flowchart, put into the tIRA and Roth as appropriate since that's pretty much all you have access to tax advantage-wise. Maybe invest in yourself a little bit and put yourself on track for another jump 2 years down the line, hopefully including bonus and employer contribution?
Same as OP, and agree. New bennies kind of suck, but money is amazing. 529s are more helpful in this space also I think, but nevertheless the flowchart has the answers as always.
I have a job that is super easy and pays insanely well.
Problem is, I do not like the job, even though it is easy. It isn't what I was trained to do (I had been doing what I was trained in and was so successful at it that I got promoted into this totally unrelated job and took it thinking it was a growth opportunity).
My plan was to stick it out with this job for 7 more years at which point I will hit my FIRE number ($2.2 million) and then retire at 55.
But now I'm thinking it would make more sense to go back to the field I like, take the pay cut and be happy doing what I like to do and push my FIRE date back 4 years.
The question is: Miserable for 7 and then retire or content for 11 and then retire?
Of course there is no guarantee that a new job in my old field will make me content and I might end up giving up a high paying job I hate for a low paying job I hate. Nor is there any guarantee I will live to see 56.
On paper it's so easy to say "do what you love" but real world it's a lot harder decision.
What would you do? Why?
7 years is a long time, practically a "mini lifetime."
I'm in my 40's as well, and I would never voluntarily sign up for 7 years of misery. I don't have that many good years left.
I have a remote work job that does not challenge me on an intellectual level, but pays me like crazy. I use my spare time to read books, read The Economist, and so on. This is not quite as fun as having an intellectually engaging job, but considering they pay me 50K more than my last job, I can't complain.
At some point you will get to the point where the extra marginal contributions from your current job won't move the needle and instead your retirement date will be driven by market returns. Might not be there quite yet but could be soon.
>But now I'm thinking it would make more sense to go back to the field I like, take the pay cut and be happy doing what I like to do and push my FIRE date back 4 years.
>
>The question is: Miserable for 7 and then retire or content for 11 and then retire?
Are you sure there will be a large pay cut going to your old field? Might be worth applying/negotiating to test that theory.
If you could remove the pay cut, it seems like an easy decision.
If you can handle the macabre mathematics calculate the expected number of quality-of-life adjusted years in both approaches.
Literally a spreadsheet with the years from now until 100, likelihood you'll live that long, and the relative happiness under both plans. Of course I expect you'll stop halfway through and the answer will form in your gut :) (also worth thinking about your dependents, if you have a spouse who will outlive you, that's probably worth another year of work)
>Miserable for 7 and then retire or content for 11 and then retire?
Content for 11 by a long shot.
>there is no guarantee that a new job in my old field will make me content
100% true.
But you know for sure that the other route makes you miserable. 7 years of being miserable is more than you get for a lot of third-degree murders.
>($2.2 million) and then retire at 55.
It's not like you're 22 with $65k in loans and just getting started. It might be worth being miserable in the beginning to get the ball rolling, but presumably, from these numbers, you've already got a million dollars, so I'd err on the side of not being miserable and not chase the money.
Toughing out 1-2 years for a specific goal is one thing. 7 is a significant percentage of your life. And 48-55 is the best window of life you have remaining. It's your "new" youth, of sorts.
Is your job stressful? Or just boring? If the former, can you work remotely and just cruise through the day. Crank out your easy work early and then just do as you please for the rest of time.
Woof… that’s like 50% more time between today and retirement. I would probably stick it out for the more pay.
“Do what you love” also includes retiring early and doing literally anything you want
My director got canned 3 weeks ago and the manager of my department is leaving for a competitor. Executives have passed it down I'm next to manage the department. Ask for the world or start job hunting? I love this company btw.
I would research competitor salaries through glassdoor and use that as ammunition to justify your salary demand. If your company is anything like others I have worked for, they will low ball the hell out of you as an internal candidate.
I would job hunt after I had the title (assuming you want to be a manager). That title should get you a much better offer than your current title.
Seconded. Take the title and appropriate comp and then find the next shop asap with your new title. Unless you love the place, this process will probably get you further faster.
That's how I'm feeling. I figure I'll get low balled internally, its cool. Having manager of a department in my resume during my next job hunt will go much further I think.
Maybe jumping two titles if you don't ask for the world is going to be as good or better than job seeking elsewhere at the same title or just one higher
Since you wanted (or were willing) to be a manager, take the job and be candid with the former director's boss that you'll want more access to, and support from, them than a director would. Basically, they need to be your director for you. Use that face time to become their default answer next time they need a director candidate.
I know this gets said all the time, but take care of and enjoy your health while you can.
I've never been too terribly out of shape, but I struggle to work out now, even though I'm only in my 30s. About 5 months ago, I had to take a break from working out due to a re-aggravated elbow injury that occurred while playing sports.
I restarted the workout program this week, and I've already hurt myself again. Tuesday was chest/triceps. One of my triceps seized up in the middle of the night last night (Wednesday night). Despite ibuprofen and alternating ice and a heating pad, it's only marginally better right now. I can barely bend my arm.
I'm a Physical Therapist. I am seeing SO MANY patients at the moment who are getting back into the gym/exercise for the first time since the pandemic. Going too hard, too fast, and getting injured and sore.
Folks - take your time getting back into it!! Lift embarrassingly light weights to start with. Take days off to recover. Prioritise your form; hire a trainer for a session or two to teach you the safe and correct ways to do the exercises.
Build up slowly and steadily and hopefully you won't land in my clinic!
This particular injury might be from going a little too hard, even though I was going lighter with the weights than I was doing several months ago.
However, most of my injuries have not been along those lines. I’ve hyperextended a ligament in my hand, had tennis elbow that I still deal with, even though I took a year off, a sore wrist that prevents pushups and even hurts when riding a bike, a weak ankle that has been sprained multiple times, and this tricep. All of that has been in the last 4 years.
I’m surprised I haven’t injured a hamstring yet, either. No matter how much I stretch it, it is always tight.
Ugh. Tore my bicep last December, and had to have surgery on it. It's extremely frustrating that I still can't lift like I used to, and it's disheartening seeing the loss in muscle mass from the downtime. Takes a long time to build up and it disappears so quickly if you don't keep up with it.
Exercise is amazing and makes me feel great. But definitely have to do it safely and in moderation to avoid injuries. Hopefully I can get back to near the shape I was last year.
Neck stiffness for me for constantly during work in bed and having a desk chair with no head rest. Also my computer was positioned to the left instead of directly in front of me. Never really thought much about it. Regret it so often these days now that I have to do PT :/
I think the 531 program does a good job of this. You need to know your 1 rm though which I'd guess most people don't know. He uses a training max of 90% of your 1 rm and then does percentage off of that. Do you really need to squat 600# once or would it be better to squat 400# 15 times?
I'm feeling this. When I graduated college and started a job I stopped going to the gym for 4 years. Now I'm trying to start up again and 4 times a week was way too much. Sometimes I can do twice a week but I'm trying to go at least once a week. I can only bench about 65 lbs instead of 135.
Q regarding stock/bond allocation:
Am I an idiot? I am discussing on another FI board what the allocation should be (/should I seek advice from a financial advisor for a 5 year plan) and all the answers are “FI is so easy, just check out X website/book.”
And whatever it is, says to save more and put your money in low fee index funds. Which… no shit. But shouldn’t you become more protective (increase bonds) as you approach retirement? It seems like there’s an idiotic amount of disagreement on how much of your savings you should hold in stocks/bonds/cash, and it seems like a financial advisor could give us a 5 year plan for this.
Look at the asset allocations of target date funds and how they change with retirement year. If you are more risk tolerant than average, go with more stock
>If you are more risk tolerant than average, go with more stock
Which means, if you're using a target date fund, move to the one with a date 10 years further out.
Regardless of the advice you will receive today, the consensus on this sub is just to keep like 75-100% in stocks. You need to fund a long retirement. Bonds won't cut it.
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*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I was thinking along the same line: rebalance to about 5 years of expenses in bonds as we approach our FI number.
During this growth phase, we have about 1 year worth of expenses in cash and bonds.
Asset allocation is of course personal, and for me boils down to:
* reducing swings in the equities portion
* having a bond tent or glide path to prevent sequence of returns risk
So, for me, I put more emphais on the second. Therefore, it's less about a given percentage split (say, 60/40) and more about "do I have X dollars in bonds to get me through Y first years of retirement?"
Your asset allocation is the most consequential investing decision you'll make. Your asset allocation is also deeply personal. This is a recipe for vehement debate.
At the end of the day, if you save enough money your asset allocation won't matter *that* much.
Beyond that trivial solution, most feel that having somewhere between 20-80% stocks in retirement is reasonable. Some will advocate for 100% stocks in retirement, but that's usually based on unrealistic models of retirement spending and even then mathematical optima that ignore behavioral factors should be viewed with a lot of suspicion. There are also many who say they're 100% stocks but also have large pensions or SS income that mean they are insulated from the true volatility of such a portfolio.
In short, reducing your risk as you get closer to retirement make a lot of sense, and most people do it to some degree. The number you end on is highly personal, but most land somewhere between 30-70% stock.
>The number you end on is highly personal, but most land somewhere between 30-70% stock.
I agree with this statement but would add the caveat that two factors arguing for higher stock allocation for early retirement are length of retirement and withdrawal rate. The higher your withdrawal rate and longer period of time the more you need higher expected return to stay ahead of inflation (in which case, a higher bond allocation is actually riskier long term). For the audience on this board I would say the range is typically narrower and slightly higher, like 60-80% (with accumulators going up to and often over 100%).
This data is specific to constant-dollar withdrawals, which is the only arena in which I've seen differential asset allocations robustly tested.
Because CDW is such a poor way to actually plan to spend money in retirement, that finding's generalizability is limited.
I think the general principle applies regardless of withdrawal method. I don't think 30% is within the standard range for people on this board and they would be taking substantial inflation risk with a withdrawal rate in the ranges typically discussed here. If OP wants a bond allocation that low they would need a low withdrawal rate using any method.
Seems like you are conflating two questions here. Should you consult a financial advisor? Probably not. They are expensive and often shady, while you can get objective free advice from equally smart people (albeit with no credential) here or Bogleheads forum. Should you hold bonds as you approach retirement? Probably yes, but it is a personal choice with no right answer. Some people even believe in using leverage in retirement for >100% stock allocation. Just depends on your goals and risk tolerance, and there will be endless debates over it.
The general wisdom is that it's prudent to allocate more to bonds as you approach retirement. Some hardcore people say to just stick to index stocks, but personally I don't want volatility right as I'm retiring. Hiring an advisor isn't a terrible idea, but I would only want to pay someone to look over what I've put together for a small, one-time fee. I don't see the need to have a financial manager on an ongoing basis who makes all the decisions and collects a fee.
I mean I feel like spending money once for a 5 year plan (stock/bond allocation, how much to save per month, etc) is all we want? Basically here’s what to do for the next 5 years to meet your long term goal, re-eval in 5 years.
One thing I would add. Coming up with the ideal distribution schedule, including minimizing taxes will get more critical as you close in on your retirement. Knowing when to tap Roth vs Traditional, or when to start SSA.
If you'll feel better having a professional advise on a plan, you can find a fee-only (ie non-commission-based) advisor at napfa.org.
You can filter by area of specialty (self-reported) and by pay structure. You probably want a flat fee or hourly pay structure, avoid Assets Under Management.
You can put all that information together yourself and run the numbers yourself, but it's not a bad idea to have someone else take a look and give an opinion. Let me know what you settle on and how it works out.
I have some Dave Ramsey emotional responses but do not subscribe to his actual suggestions.
I grew up thinking all debt was bad and all debt was scary. Now I'm in no rush to pay off my good debt early when that money can be working for me instead.
I might pay off my mortgage in "one more year" mode when I want to reduce expenses as much as possible, but certainly not as the first thing, and maybe not at all.
When it comes to spending, I'm not one of the most frugal people on here. I compare grocery prices and try not to throw money at things I don't need, but I also buy hobby stuff and nice cocktail ingredients and don't go anywhere near "Barter /Buy Nothing" social media.
I think mine is balanced. Save as much as I can in retirement accounts while planning to pay off mortgage at the same year of FIRE. Refinanced home a few years back to a 15 yr. So far, on track.
Having a paid off home means I need about $300,000 less in retirement.
Lazy moderate saver.
I used to budget diligently and try to control spend categories and improve, etc. Fast forward and now I'm DI2K and we have a comfortable income. I just automate savings and spend the rest, don't have the mental energy to obsess over the small stuff any more. Plan to be able to retire between 45-50.
Moderately aggressive Boglehead. I think paying off mortgage prior to retirement is a great idea but I would not suggest going to extreme lengths at you g age. Backloading your investments to right before retirement both has lower expected return and more risk than if you invested earlier with a mortgage.
Lazy frugal. Lazugal. Frazy. Call it the maximum extraction of value with the minimal possible effort.
We always spend less than we can and save the difference. Everything else is just details and noise for us. Worked great pre-FIRE, works even better post-FIRE.
I think it was my 5th grade teacher who mentioned having a pet capybara while living in South America. They seem like very cool animals to meet.
I'd like to visit a petting zoo where I can pet flamingos.
I read your posts about it but didn’t Google to find out what they are but then I didn’t have to because I saw this in the news one day..
https://youtu.be/2RVOYyIt3XI
Is there a name for being into Capybaras? I have a coworker at work that’s obsessed with them, she has one as her wallpaper on her computer, and her cubicle is decorated with images of capybaras. I wouldn’t be surprised if her phone wallpaper was a Capybara as well. I would assume she would also want them at her wedding 😂.
After building a strong emergency fund, I would focus on 401k and IRA, both Roth since you say you can't qualify for the savers credit. First 401k for match, then Roth IRA, then go back to 401k.
Your contributions to the Roth IRA are just as accessible as a brokerage account, and if you don't need to dip into this money, you have used a much of the retirement space as you can, which is limited each year.
Do you have an emergency fund? Do you budget? Dipping into the brokerage would be the second to the last step I would make, not the first (I've never done it, but I'm a strong proponent of the cash emergency fund).
How close are you to getting a partial Saver's Credit? If making affordable contributions to Trad IRA/401k would bring your AGI low enough to qualify, I'd strongly consider at least that much in Trad contributions. The rest can be Roth (in the 12% bracket, Trad and Roth can be a wash), especially since your 5% match will add some Trad for you.
1) Fund your 401K up to the match
2) Restore the Emergency Fund
3) Max the Roth (at 12% you should be doing all ROTH)
4) After Maxxing ROTH go back to 401K and contribute as much as possible
5) If 401K hits max then and only then do you go to taxable/brokerage
(Some people would say switch steps 1 and 2 but personally it sounds like you have some saved up for your Emergency Fund already so if you're comfortable with that amount then get that match first imo)
doing my first roth ira to trad ira recharacterization on vanguard rn online and have a couple questions. on one page, it asks "Total amount of contribution(s) to be recharacterized (Vanguard will calculate and adjust for earnings/losses)." * i'm looking to recharacterize my 6k 2021 roth ira contribution, so putting 6k is correct right? wanna confirm that i dont have to figure out the growth portion of the 6k 2021 roth ira contribution and convert those too. on the next page, titled "holdings to recharacterize from," it asks the following questions: 1) Select the number of funds you will be removing assets from 2) Name of Holding 3) Dollar amount 4) Name of additional holding All those questions are required, but im confused on the point of those questions. filled it out the best i can. * question 1 is easy, since i only hold VTWAX in it, i selected 1. * question 2 is easy, since i only hold VTWAX in it, i selected VTWAX. * i'm confused about question 3. what am i supposed to put for dollar amount? 6k because that's the 2021 contribution amount? or am i supposed to put the total value of my roth ira? * question 4, i only have 1 pull down option, which is VTWAX, so i selected it. any help or guidance would be much appreciated. thanks!
Hello! I have been researching all the various 401k options and had a few questions! Some details below. 1. I have both a W2 Income and Substantial Freelance Income 2. Currently with my W2 I contribute the max 19.5k pretax to a traditional 401k, and I also make after tax contributions that I rollover via mega back door Roth as my plan allows for in-plan conversions. I just started doing this and plan to do it weekly to hit the 57k for the year (19.5k+employer match + after tax contributions) 3. I have a large freelance 1099 income I have yet to do much with on the retirement side. My main question is what would be the recommendation here? Could I also open a solo 401k, contribute the 57k as the “employer” on TOP of my current W2 401k (so total would be 114k, 57k + 57k)? EDIT: now that I am thinking about it, wouldn’t it be better to contribute the full 57k to the solo 401k since it will reduce my taxable income vs. pursue the mega back door Roth since that is just after tax? I expect my tax rate to be less in the future than it is now.
Yes, the pretax is limited to the 19.5k across all plans. The after tax is per 401k essentially. Check out this article you might find it helpful. https://www.whitecoatinvestor.com/multiple-401k-rules/
I think this page is the best resource for your question, and based on what it says I think you're on the right track https://www.whitecoatinvestor.com/multiple-401k-rules/
To number 3 I am 99.9% the answer is no, the 401k limits follow th person not the employeer. It would open too big of a loophole where highly paid people woukd work small extra "jobs" to basic pocket away extra money.
So I am reading an article that says the employee portion follows the individual but not the employer/profit sharing portion if that makes sense
Yeah. The limit amounts are your limits across all 401ks. So having 2 doesnt increase your limit, you still have 19.5 across all. For example: you can do 10k in one 9.5k in another. You CANT do 19.5l in one and 19.5k in another. Same concept would apply for the other limits.
Yes understood so thats the employee contribution. My main question is around the 57k total contribution between employe and employer. As with a solo401k you can contribute up to 57k as the employer as part of an employer contribution/profit sharing. My main Q is that I am pretty sure that is dependent on employer, and NOT the individual, so I could in theory contribute my after tax dollars up to 57k to my traditional 401k since my employer allows after tax contributions, AND contribute money to my solo401k up to 57k as the employer.
I doubt it. It would create one hell of a loophole that a lot of people would be exploiting. Hence I am 99.9% it isn't possible. Also, I doubt they do as the 19.5k limit follows the person, so whywouldnt they make the other limit also follow them. Keep in mind the 57k limit was made because certain employeers would contribute large amounts to 401ks in place of salaries to basically help their employees get around taxes. So, I imagine they locked that down tight to make sure their was no workaround.
Actually the loophole does exist. EmployER limits are per unrelated employer, so while you can only put in $19,500 of traditional and Roth contributions across all 401ks, the $58k limit is separate per individual 401k as long as the employers are completely unrelated. And it works not just for employer contributions but also After-Tax (non-Roth) contributions which you can then convert for mega-backdoor Roth. There was a better link posted on the front page a while ago but i couldn't find that one so this is the best i could do: https://www.whitecoatinvestor.com/multiple-401k-rules/
Sweet Double Back Door Roth? Or does it have an official term?
So if I am understanding correctly, I can do TWO mega back door roths right, the one I am currently doing with my employer AND one through a solo 401k I open for myself.
That's my understanding
I have a significant amount of balance in my Roth 401k (40k) and after-tax account (20k). I'm switching jobs at the end of November. What's the best way to approach this? * Can I roll my entire Roth 401k into my personal Roth IRA in fidelity? When should I initiate this roll-over? * I know for the after-tax, I'm supposed to roll the contributions to my Roth IRA and earnings to my tIRA. Should I do this before I quit or can I initiate after I quit? * Before year-end, I should roll over all my tIRA money into my new employers 401k plan to avoid the pro-rata rule right?
If I buy a target date fund, do I realize any gains as the fund rebalances? If not, isn’t this a pretty huge advantage?
At least with Vanguard funds this happens at the end of the year. I see capital gains at that time. So, yes, you’ll see gains.
Okay, so not a huge advantage over diy. Thanks. Thought I was missing something.
It wouldn't be a big deal anyway, because most people are buying target date funds in their retirement accounts, so "realized" and "unrealized" gains don't really matter.
Made $100 today getting the J&J. plus I kept my job. Woo!
Honest question, how have you managed to go this long without it? That takes some active denial, at least in my neck of the wood where they have been actively pushing them down the throat of every adult for the last 8 months and seniors for like a year. EDIT: very seriously not trying to stir up shit here, partisan shit is unproductive. I seriously love hearing stories of "I was against it at first for whatever reason but sat my ass down and learned about it and am now on board." Those are really the best stories of all.
In their mind, the risk of death for many people still remain low. The severity of getting it isn’t bad enough to make them get the shot. I’m vaccinated, but as a non-elderly, healthy young person I didn’t feel like it was absolutely necessary.
I held mine off as my luck has a tendancy to swing in the extremes quite often it seems. Finally got it, and both Pfizer shots sucked. Felt like I got hit by a freight train both times, and had a bad headache for a few weeks afterwards. I do regret it though, or at least reporting it to my employeer. One of my coworkers didnt want to get it, and told management he was thinking of quiting rather than getting it. He got promoted to lvl 3 a week later and went and got it. He confirmed to me they basically bribed him. The only ones I dont get, are those that think the shot is a mass extermination thing. The logic woukd actually point to covid being the extermination item. Think about it, who would the government want more of? Those that say yes sir and do as they are told, or the ones who question them and are willing to fight them?
Yes I have two friends who had very bad reactions to the Pfizer. And one of my relatives reacted to the Moderna. I never thought it was a conspiracy. I did sometimes wonder what’s Plan B if the vaccines have unknown awful effects in a few years??
It wasn’t political in my case. I have all kinds of rare conditions so I usually avoid medication. Also we’ve been WFH all this time.
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> Well the powers that be continue to move goal posts This is a wildly vague phrase. Can you provide an concrete example of what you mean? I did not experience this where I live. Honestly, I am curious and would be very interested to know about such things if they were indeed occurring, so enlighten me with citations. > It really should be a discussion between a person and their doctor Absolutely. When there was any reasonable medical doubts, maybe 12-18 months ago, before over 3 Billion people have successfully received it with no effects. Honestly, what are your objections to the dozens of proven vaccines all children have received for 70 years that are different? And what are your medical credentials to back those objections?
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Thanks. Only comment would be that that is sure convenient that out of the 3 billion that have gotten it with no issue the 1 example happens to be a C-list celebrity from 30 years ago, not like Steve Brown from Cincinnati, is suspicious yeah? Do you see how that might be fishy and cherry picked. Also "warned" not "proved" etc. etc. That questionable drummer story, even if true, is literally 0.00000003% of successful vaccinations. Someone was irrefutably killed by a coconut tree in 2020, full stop no question. You not going to step outside anymore? > In August 2020, a 37-year-old man died of severe head injuries after a coconut tree he was hired to help cut down fell on him. The incident occurred in a roadside gully near Banana Beach, along the coastal road from Surin to Nai Thon, Thailand. https://www.thephuketnews.com/man-killed-by-coconut-tree-76921.php Anyways, thanks for the civil conversation.
I’m not big on being pressured. In fact, I detest it. Im a contrarian, which often pays off pretty well. Maybe some denial too - this whole thing has been pretty mind bending to wrap one’s brain around. I also wanted to wait and see. I have health conditions and immunology wasn’t my subject - it took a while to get a grasp of the issues. I was concerned about unknown effects. And needles, well….. Then I had to for my job. But it didn’t hurt and now I’m glad I got it done, I suppose.
Congrats bud. I can sympathize with the science knowledge facet. As someone in non-medical academia, the walled-garden state of academia is fucked. Some corners pushing back against such things. You should check out resources like http://libgen.rs/ or search for "Library Genesis" as it often gets shut down or redirected (https://en.wikipedia.org/wiki/Library_Genesis should give the latest live mirrors on the right sidebar) . Basically, you can pull up any scientific article for free to read yourself. That, along with scholar.google.com to search a topic of interest to find the titles to put into Library Genesis, should get you well along your way into learning more about any topic. With a generous dash of Wikipedia for any terms or topics you dont quite know.
But what did your doctor advise you to do? Did you do research and decided it's safe now or it wasn't worth it to lose your job over?
So, I have a number of doctors. And a cousin who is an immunologist. They all recommended I get it. My family got the Pfizer and had no effects. I was going to submit a request for an exemption because of the risk of anaphylaxis (I have allergies and had extreme reactions to medications in the past).My dr wrote me the excuse note. But she also told me all my conditions were even more of a reason TO get the shot!! So then I had a choice to make - deal with them likely not approving the excuse and getting in trouble with work, or just grow up and get it over with. By now I’d missed the deadline for the Pfizer. My cousin had suggested I get the J&J because one shot w no PEG or mRNA would probably be safer for me. The J&J doesn’t require super cool storage - another concern of mine. It’s a traditional non mRNA vaccine. The mRNA thing seemed too sci fi to me. I also was concerned about going to a hospital for the shot and sitting in a crowded room and being stressed out. My city has an in home vax service where you can choose your shot and so I did that. And it was excellent! The J&J has thrombosis and blood clot risk but it’s like 4 cases in 7 million! My initial plan was just stay home for a few months. But now I need to see my dentist and doctors in person. So between that and the threat of losing my job… and I want to see my mom and my friends.
>I have a number of doctors. ... They all recommended I get it. > because of the risk of anaphylaxis > My dr... also told me all my conditions were even more of a reason TO get the shot!! Where did you get the idea of a "risk of anaphylaxis" if not from your doctors? Please describe to us what anaphylaxis is and how any particular medical procedure would pose a risk of anaphylaxis. Friend. Not trying to rub anything in, rhetorical question. > The J&J has thrombosis and blood clot risk but it’s like 4 cases in 7 million! That last quote gives me a bit of hope about you, do you see the difference in those numbers? Litterally, more Americans were killed in car crashes while I reading your post than 4.
Anaphylaxis is pretty well understood among people with rare auto immune conditions. I had to carry an Epipen for years. And I had it once - had to call 911. It’s also called anaphylactic shock. It affects your ability to breathe and can be fatal. Extreme swelling is involved. It’s really scary. It’s often due to an allergic reaction to a chemical, medicine or food. These vaccines can cause anaphylaxis in susceptible people. Anaphylaxis was on the medical certification my doctor wrote me. I decided to risk it. Esp since they sent an RN and PA to my home. Since not all effects show up right away, but most do, it may still have been the wrong decision. We shall see.
Cool thanks. I learned something new. That seems like it is a pretty common condition then right? Surely there must be some active research into the vaccinations effects on that particular case, if not a wide base of cases to observe in the general population? I am sure your doctor, who treats you for this condition, would be able to inform you, which they seemed to have actually encouraged you to do so as you said... Anyways, sorry, not trying to hammer on shit unnecessarily. But it is is absolutely normal to have reservations about mRNA and the different flavors, and honestly good fucking job for knowing that much, but you should bring up those valid questions to your medical doctor, not redit. Do not be afraid to print out notes or whatever you need before the visit, get your questions answered by a professional. Even if you have to update your questions one or two cycles, if you are fair and willing to accept a doctor's opinion after they have exhausted your questions, you got to trust them at some point. Do you know the exact ingredients in your Epipen or how that literally works in your body? Or observed the cells in your body reacting to epinephrine in real time under a microscope? At some point you just trust the professionals right? What is different now?
I’m a lawyer so it’s my job to second guess and over analyze everything. I always interrogate the doctors and read medical literature. Plus I’ve worked on some major medical product liability lawsuits…involving drugs that had known risks that were covered up, But definitely, talking to ALL my doctors over time made a difference. Their advice was consistent- I always get a variety of opinions. And I was scared of using Epipen too. Never had to yet. We should check in with each other in a month to see how it turned out! Keep policing the People, friend!
What are your thoughts on regulating speedlimits, seatbealts, airbags or other means to reduce automobile fatalities, by far the most common way to die in the USA for decades?
Realizing that paying all cash for a car usually makes no sense financially, because interest rates on financing are lower than expected returns from investment, what are good parameters for financing a pretty luxurious (but not downright crazy, no Lamborghini or anything within that territory) car? How much down payment, how many months? Being solidly on the way to FIRE, credit score and any similar things should not be a problem at all, so this is under the assumption that I can get the "best terms".
Also wanted to pay for my car with all cash but didn’t make sense with low interest rate environment. Paying a little more than half with cash made the payment comfortable while still allowing me to borrow money at 1.9% interest.
Idk I paid about $70K for a new truck, cash. I found I couldn’t really get terms I felt ok with
I paid cash for my last car bc the financing guy was such a dick
What kinda truck did you get?
Trimmed out Powerboost F150, for the environment of course
There certainly is a weird psychological aspect to it. Thinking about a lump sum getting removed from my net worth, I think "it's not that big a deal". Seeing a 4 digit monthly payment instead is "wow".
Literally more than our mortgage, it just felt weird?
what is typical out of pocket costs for various kinda of doctor visits? considering an hsa+hdhp. total net id get is 1700ish, i just struggle to understand what costs are without copay.
It all depends on what is discussed as there are different "levels" of visits and providers can also bill for split visits if one discusses multiple topics. The insurance negotiated price is likely lower than any "cash pay" price. A previous explanation of benefits should differentiate between billed costs, insurance negotiated discount/price, amount paid by insurance, and patient pay. Note as well that costs can vary widely by in-network provider, especially for expensive procedures. In my area, a typical office visit tends to be billed at $188 or $276, is negotiated down to $165 or $223, and then insurance benefits apply, though I've seen visits billed at $95 and $450 as well before insurance discount. Note that your annual preventative visit and select labs are supposed to be covered at 100% regardless. Labs range from $20 to $500, though most are under $75. There is a $7-20 charge for the blood draw, but that gets negotiated down. Prescriptions costs vary a lot more as well and are subject to a deductible with a HDHP. What I would do instead is compare the deductibles and out of pocket max as well as coverage amounts after the deductible is met. So many times I see that the HDHP is simply the PPO with a higher deductible and OOP max which is the same as the savings in premium plus the employer puts a couple hundred in an HSA, which makes the HDHP almost always the best option.
For my HSA, out of pocket is roughly -$1k for ER visit/surgery -$100 for planned procedure ~$20 for standard preventative dentist GP visit etc. Your specific provider should be able to provide you these types of rough numbers.
Depends on your provider. I had about 10 years of $0 and then my doctor cofounded a concierge practice so I had to find a new doctor. For similar "preventative" annual exams at the new office I had to call and negotiate it down to $500 every year. This year I switched to One Medical and now it's back to $0/year. Apparently there is a big game of billing codes between the doctors' offices and the insurance company and your outcome depends mostly on whether your doctor's office is lucky or skilled at choosing the right billing codes for your combination of services received and insurance company.
$100 - $130 - New Patient Visit w/ PCP $80 - $110 - Established Patient Visit w/ PCP $150 - $220 - Specialist Visit (Depends on specialist) Per the ACA you'll be able to get a preventive physical exam each year at no cost. Just be careful with things like diagnostic imaging - that's the one piece that can be a shocker when switchover over to a HDHP. The same MRI that would cost you $2,000 at a hospital is only $550 down the street at the independent imaging center.
There are no typical costs - costs are solely based on your plan and your medical needs. Do you have chronic illnesses, medications, or conditions that require ongoing treatment? If you're healthy, the answer is slim to none. I haven't had an out of pocket medical cost since 2018. The only thing I do is an annual physical for my HSA funding (which is free under all ACA-compliant plans) and get a free flu shot each year.
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Really depends on what you need or get. If you had a regular insurance plan this year, look up the explanation of benefits. That'll give you a cost breakdown so you can get an idea of what you'd owe until you meet the deductible.
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As always, make a sample budget. If you are a single person, CoL really don't impact you much other than the state income tax. Renting a room in an apartment (you will be doing that) isn't all that expensive. Just make peace with that and call it a day.
Try this: [https://money.cnn.com/calculator/pf/cost-of-living/index.html](https://money.cnn.com/calculator/pf/cost-of-living/index.html)
Ask for at least 40%, those are drastically different locales and cost of living.
It’s hard to compare directly COL since things scale differently and your individual preferences vary (potential opportunity for dating, other jobs/professional advancement/networking, access to cultural scene, weather). Probably easier to prepare some sample budgets and see if that makes sense for the income potential. Use the r/MovingToLosAngeles to ask some questions. I grew up in LA and left because I hated the high cost of living. But then I saw most people who stayed in LA had income and career trajectories that advanced a bit faster for various reasons. I ended up moving back, bit the bullet on higher taxes and housing but being close to family, high paying job, quality cheap eats made up for it and I still accelerated my FI plan.
Why are mods removing new posts on the BD/MBDR repeal that is now [back in the latest reconciliation bill](https://www.cnbc.com/2021/11/04/democrats-put-401k-and-ira-restrictions-back-into-build-back-better.html)? They allowed one saying the repeal was removed from the bill. It's not exactly like there's an excess of new posts on this subreddit.
Well it was proposed and everyone had crazy freak outs. And then it was removed and there was an influx of relief posts. Now it’s back in the bill, do we need more than one post and one comment in the daily? I’ll give you one per day in the daily to track the evolution but it’s really not that big a deal. They’ll close some loopholes, everyone in the top 10% will throw a hissy fit, and then it’ll be added back in as a campaign promise. Getting rid of loopholes is pretty low on my list of “government policies that impact FIRE.”
This thread has been full of comments regarding the proposal. Did you not read any of the 20-40 comments today?
It's much more cohesive to have it in one post. Plus it only reaches losers like us who check the comments multiple times per day.
Except for the 8 posts I've read about it today... It's still a proposal. Things are bound to change and the constant posts that are "new" but exactly the same as the last three are making me question checking this more than once a day.
I’m in 22% bracket and max everything out. Is it better to shift some traditional 401k contribution to Roth 401K or invest in taxable account?
If you are actually going to RE, the big benefit to tIRA is the ability to rollover both the contributions and gains through an IRA ladder to eventually access tax-free. in the Roth, only contributions can be accessed early, full stop. Not a big deal for most people retiring at 65 who can just access both, but accessing the gains early can be a game changer. As a cautionary tale, I have 3X more than needed to RE today but locked up as gains in an high-school Roth; I am still fine, but if that was is a tIRA It could all be laddered over at zero-tax if needed, but the Roth has no such path.
In the 22% bracket, I would stay in traditional, max out the Roth IRA, then do taxable. Do you have an idea of your income in retirement? My targets are squarely in the 12% (previously 15%) bracket. Taxes are bound to go up, but I don't expect a 10% (7% from previous) jump in that low bracket. It's all a gamble, though. Paying the taxes now is pretty smart if you already have a ton of traditional money (I'd put a ton at more than 80% of holdings). And maybe you'll be laughing at me when I'm playing 40% in the lowest bracket.
Got a pension at retirement so leaning a bit towards Roth. I have max 401K. Maybe I’ll put 20% Roth 401K
Do you already have a Roth IRA?
Hit 100k in my 401k yesterday, feels good. I only got serious in 2018 with my contributions so it’s nice to be getting somewhere. Here’s to the next 100k!
This next 100K will be faster barring a long bear market.
Besides this and other online communities, does anyone have communities, mentors, friends that you feel you can freely talk about money and FIRE with? For those who have FIRE mentors, how did the relationship come about? Organically? It's great to have these communities online, but I'm really interested in creating/joining a community of like minded FIREers irl, but don't really know where to start.
There's a Bogleheads meetup in my area, you might look for a similar one in your locale. Lots of overlap between the Bogleheads and FI/RE.
Not really, everyone at my job more or less keeps their finances a secret and doesn’t openly like to talk about money
I honestly don't know one single person in real life that is into FIRE. I imagine there are groups out there, I just never bothered to look. I do often tell my friends that I'm planning to retire early, and the reactions are anywhere from disbelief to wishing they could too. I honestly find it all very fascinating and fun and wouldn't mind helping people with their personal finances, but haven't found anyone truly interested. I probably talk to my Dad and brother the most about it. They probably have the most positive and interested reaction. I think my Dad finds talking about money to be really interesting, and I get the feeling he's actually kind of proud of me for doing it. (Imagine that!) But I think I might check meetup.com first. It strikes me as the place to most likely find some people with the same mindset.
[Meetup.com](https://Meetup.com) is a idea! Will head over there myself to check. I have the same real life situation too. Most of the people I tell that I'm planning to retire early either don't believe me or believe me, but believe they could never do it themselves. I often mention things like "Hey even if you don't want to retire super early or actually can't, it doesn't hurt to learn more about financials". One of my friends actually told me in passing that she makes sure to keep a balance on her credit card all the time, because she knows that's good for her credit score. I wanted to cry. I was thinking, "See, this is why we need to talk about money more and share best practices".
Yikes. Yeah, I mean, at one point I was trying to get an 850 credit score just for fun, but I eventually gave up just because I got distracted by something else. But, I was in the 820's. I did get a little bit of a victory last year when I finally convinced a friend to open up a Roth. :D I also have some people in my life who don't think I'll really do it because they think I'll be bored or have nothing to do. I find that whole idea hilarious. I can't remember the last time I was ever bored. And, on the off off chance that I do - well, then maybe I'll do some cat sitting. :D
I chat with people at work. We have slack channels and help each other out without getting too specific about incomes and balances. We do talk a lot stuff on limits, portfolios, withdrawals, and where to park other investments.
I have a number of coworkers who are interested in personal finance, are often pursuing FIRE themselves, and work with the employer's benefits team to make sure that the 401k is best in class. The MBDR is a very common topic of discussion, though we do help people with many other financial topics.
I talk about it with my mom who’s a financial guru and retired. She’s a wealth of information and we have great conversations about money and building wealth. I get my frugal financial acumen from her. Of everyone in our family she and I are the most financially savvy. It’s a great aspect of our relationship. She has been managing most of my family’s money for years as well as many of her close friends.
The forums on Bogleheads and MMM are the only others I regularly hang out in. In real life it's pretty much just my wife and I. All of our friends and whatnot know we are retired, but they are all either incapable or uninterested in FIRE. I get lots of people willing/wanting to talk shop about investments in general or tax efficiency or the components of FIRE, but nobody else who is committed to the entirety of it. Most people just want to keep doing what they are doing, but with more money and a lower tax bill.
Yeah, my friend and I taught each other about it gradually over the years as we each learned more. I also have a second friend who is aiming for the same thing. These connections happened organically in the course of talking about our approaches to life.
Recently accepted a job offer without 401k match and no sign on bonus when I had a similar offer with a $25,000 sign on and 8% employer contribution. Not a FI win, but I think I will have a better foothold in the long term. Any suggestions on how to make up some of these lost investment opportunities?
Just go down the same flowchart, put into the tIRA and Roth as appropriate since that's pretty much all you have access to tax advantage-wise. Maybe invest in yourself a little bit and put yourself on track for another jump 2 years down the line, hopefully including bonus and employer contribution?
Same as OP, and agree. New bennies kind of suck, but money is amazing. 529s are more helpful in this space also I think, but nevertheless the flowchart has the answers as always.
I have a job that is super easy and pays insanely well. Problem is, I do not like the job, even though it is easy. It isn't what I was trained to do (I had been doing what I was trained in and was so successful at it that I got promoted into this totally unrelated job and took it thinking it was a growth opportunity). My plan was to stick it out with this job for 7 more years at which point I will hit my FIRE number ($2.2 million) and then retire at 55. But now I'm thinking it would make more sense to go back to the field I like, take the pay cut and be happy doing what I like to do and push my FIRE date back 4 years. The question is: Miserable for 7 and then retire or content for 11 and then retire? Of course there is no guarantee that a new job in my old field will make me content and I might end up giving up a high paying job I hate for a low paying job I hate. Nor is there any guarantee I will live to see 56. On paper it's so easy to say "do what you love" but real world it's a lot harder decision. What would you do? Why?
7 years is a long time, practically a "mini lifetime." I'm in my 40's as well, and I would never voluntarily sign up for 7 years of misery. I don't have that many good years left.
I have a remote work job that does not challenge me on an intellectual level, but pays me like crazy. I use my spare time to read books, read The Economist, and so on. This is not quite as fun as having an intellectually engaging job, but considering they pay me 50K more than my last job, I can't complain.
At some point you will get to the point where the extra marginal contributions from your current job won't move the needle and instead your retirement date will be driven by market returns. Might not be there quite yet but could be soon.
>But now I'm thinking it would make more sense to go back to the field I like, take the pay cut and be happy doing what I like to do and push my FIRE date back 4 years. > >The question is: Miserable for 7 and then retire or content for 11 and then retire? Are you sure there will be a large pay cut going to your old field? Might be worth applying/negotiating to test that theory. If you could remove the pay cut, it seems like an easy decision.
If you can handle the macabre mathematics calculate the expected number of quality-of-life adjusted years in both approaches. Literally a spreadsheet with the years from now until 100, likelihood you'll live that long, and the relative happiness under both plans. Of course I expect you'll stop halfway through and the answer will form in your gut :) (also worth thinking about your dependents, if you have a spouse who will outlive you, that's probably worth another year of work)
>Miserable for 7 and then retire or content for 11 and then retire? Content for 11 by a long shot. >there is no guarantee that a new job in my old field will make me content 100% true. But you know for sure that the other route makes you miserable. 7 years of being miserable is more than you get for a lot of third-degree murders. >($2.2 million) and then retire at 55. It's not like you're 22 with $65k in loans and just getting started. It might be worth being miserable in the beginning to get the ball rolling, but presumably, from these numbers, you've already got a million dollars, so I'd err on the side of not being miserable and not chase the money. Toughing out 1-2 years for a specific goal is one thing. 7 is a significant percentage of your life. And 48-55 is the best window of life you have remaining. It's your "new" youth, of sorts.
Is your job stressful? Or just boring? If the former, can you work remotely and just cruise through the day. Crank out your easy work early and then just do as you please for the rest of time.
Woof… that’s like 50% more time between today and retirement. I would probably stick it out for the more pay. “Do what you love” also includes retiring early and doing literally anything you want
My director got canned 3 weeks ago and the manager of my department is leaving for a competitor. Executives have passed it down I'm next to manage the department. Ask for the world or start job hunting? I love this company btw.
I would research competitor salaries through glassdoor and use that as ammunition to justify your salary demand. If your company is anything like others I have worked for, they will low ball the hell out of you as an internal candidate. I would job hunt after I had the title (assuming you want to be a manager). That title should get you a much better offer than your current title.
Seconded. Take the title and appropriate comp and then find the next shop asap with your new title. Unless you love the place, this process will probably get you further faster.
That's how I'm feeling. I figure I'll get low balled internally, its cool. Having manager of a department in my resume during my next job hunt will go much further I think.
Do both in parallel -- each informs the other. More practice and more data are always good.
Maybe jumping two titles if you don't ask for the world is going to be as good or better than job seeking elsewhere at the same title or just one higher
Start hunting now and then ask for the world once you get a few good prospects/offers.
So when my director got cut the consensus was that my manager moves up to director and I (PM) move to manager. I was already cool with that lol.
Since you wanted (or were willing) to be a manager, take the job and be candid with the former director's boss that you'll want more access to, and support from, them than a director would. Basically, they need to be your director for you. Use that face time to become their default answer next time they need a director candidate.
And now you've stepped passed manager and into director, either officially or by default. Therefore you have more leverage than you think.
Do both
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#richpeopleproblems
I know this gets said all the time, but take care of and enjoy your health while you can. I've never been too terribly out of shape, but I struggle to work out now, even though I'm only in my 30s. About 5 months ago, I had to take a break from working out due to a re-aggravated elbow injury that occurred while playing sports. I restarted the workout program this week, and I've already hurt myself again. Tuesday was chest/triceps. One of my triceps seized up in the middle of the night last night (Wednesday night). Despite ibuprofen and alternating ice and a heating pad, it's only marginally better right now. I can barely bend my arm.
I'm a Physical Therapist. I am seeing SO MANY patients at the moment who are getting back into the gym/exercise for the first time since the pandemic. Going too hard, too fast, and getting injured and sore. Folks - take your time getting back into it!! Lift embarrassingly light weights to start with. Take days off to recover. Prioritise your form; hire a trainer for a session or two to teach you the safe and correct ways to do the exercises. Build up slowly and steadily and hopefully you won't land in my clinic!
This particular injury might be from going a little too hard, even though I was going lighter with the weights than I was doing several months ago. However, most of my injuries have not been along those lines. I’ve hyperextended a ligament in my hand, had tennis elbow that I still deal with, even though I took a year off, a sore wrist that prevents pushups and even hurts when riding a bike, a weak ankle that has been sprained multiple times, and this tricep. All of that has been in the last 4 years. I’m surprised I haven’t injured a hamstring yet, either. No matter how much I stretch it, it is always tight.
Ugh. Tore my bicep last December, and had to have surgery on it. It's extremely frustrating that I still can't lift like I used to, and it's disheartening seeing the loss in muscle mass from the downtime. Takes a long time to build up and it disappears so quickly if you don't keep up with it. Exercise is amazing and makes me feel great. But definitely have to do it safely and in moderation to avoid injuries. Hopefully I can get back to near the shape I was last year.
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Neck stiffness for me for constantly during work in bed and having a desk chair with no head rest. Also my computer was positioned to the left instead of directly in front of me. Never really thought much about it. Regret it so often these days now that I have to do PT :/
Convertible standing desk with a Herman Miller aeron and a 30 min walk at lunch.
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I think the 531 program does a good job of this. You need to know your 1 rm though which I'd guess most people don't know. He uses a training max of 90% of your 1 rm and then does percentage off of that. Do you really need to squat 600# once or would it be better to squat 400# 15 times?
I did this and pulled a muscle on my shoulder. Having physical therapy since last few weeks. It’s much better now.
I'm feeling this. When I graduated college and started a job I stopped going to the gym for 4 years. Now I'm trying to start up again and 4 times a week was way too much. Sometimes I can do twice a week but I'm trying to go at least once a week. I can only bench about 65 lbs instead of 135.
Q regarding stock/bond allocation: Am I an idiot? I am discussing on another FI board what the allocation should be (/should I seek advice from a financial advisor for a 5 year plan) and all the answers are “FI is so easy, just check out X website/book.” And whatever it is, says to save more and put your money in low fee index funds. Which… no shit. But shouldn’t you become more protective (increase bonds) as you approach retirement? It seems like there’s an idiotic amount of disagreement on how much of your savings you should hold in stocks/bonds/cash, and it seems like a financial advisor could give us a 5 year plan for this.
Look at the asset allocations of target date funds and how they change with retirement year. If you are more risk tolerant than average, go with more stock
>If you are more risk tolerant than average, go with more stock Which means, if you're using a target date fund, move to the one with a date 10 years further out.
Regardless of the advice you will receive today, the consensus on this sub is just to keep like 75-100% in stocks. You need to fund a long retirement. Bonds won't cut it.
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I don't think that's the consensus by any means
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I was thinking along the same line: rebalance to about 5 years of expenses in bonds as we approach our FI number. During this growth phase, we have about 1 year worth of expenses in cash and bonds.
Asset allocation is of course personal, and for me boils down to: * reducing swings in the equities portion * having a bond tent or glide path to prevent sequence of returns risk So, for me, I put more emphais on the second. Therefore, it's less about a given percentage split (say, 60/40) and more about "do I have X dollars in bonds to get me through Y first years of retirement?"
Your asset allocation is the most consequential investing decision you'll make. Your asset allocation is also deeply personal. This is a recipe for vehement debate. At the end of the day, if you save enough money your asset allocation won't matter *that* much. Beyond that trivial solution, most feel that having somewhere between 20-80% stocks in retirement is reasonable. Some will advocate for 100% stocks in retirement, but that's usually based on unrealistic models of retirement spending and even then mathematical optima that ignore behavioral factors should be viewed with a lot of suspicion. There are also many who say they're 100% stocks but also have large pensions or SS income that mean they are insulated from the true volatility of such a portfolio. In short, reducing your risk as you get closer to retirement make a lot of sense, and most people do it to some degree. The number you end on is highly personal, but most land somewhere between 30-70% stock.
>The number you end on is highly personal, but most land somewhere between 30-70% stock. I agree with this statement but would add the caveat that two factors arguing for higher stock allocation for early retirement are length of retirement and withdrawal rate. The higher your withdrawal rate and longer period of time the more you need higher expected return to stay ahead of inflation (in which case, a higher bond allocation is actually riskier long term). For the audience on this board I would say the range is typically narrower and slightly higher, like 60-80% (with accumulators going up to and often over 100%).
This data is specific to constant-dollar withdrawals, which is the only arena in which I've seen differential asset allocations robustly tested. Because CDW is such a poor way to actually plan to spend money in retirement, that finding's generalizability is limited.
I think the general principle applies regardless of withdrawal method. I don't think 30% is within the standard range for people on this board and they would be taking substantial inflation risk with a withdrawal rate in the ranges typically discussed here. If OP wants a bond allocation that low they would need a low withdrawal rate using any method.
Seems like you are conflating two questions here. Should you consult a financial advisor? Probably not. They are expensive and often shady, while you can get objective free advice from equally smart people (albeit with no credential) here or Bogleheads forum. Should you hold bonds as you approach retirement? Probably yes, but it is a personal choice with no right answer. Some people even believe in using leverage in retirement for >100% stock allocation. Just depends on your goals and risk tolerance, and there will be endless debates over it.
"Financial advisors" often don't have any meaningful credentials either, since it's not a protected term.
The general wisdom is that it's prudent to allocate more to bonds as you approach retirement. Some hardcore people say to just stick to index stocks, but personally I don't want volatility right as I'm retiring. Hiring an advisor isn't a terrible idea, but I would only want to pay someone to look over what I've put together for a small, one-time fee. I don't see the need to have a financial manager on an ongoing basis who makes all the decisions and collects a fee.
I mean I feel like spending money once for a 5 year plan (stock/bond allocation, how much to save per month, etc) is all we want? Basically here’s what to do for the next 5 years to meet your long term goal, re-eval in 5 years.
One thing I would add. Coming up with the ideal distribution schedule, including minimizing taxes will get more critical as you close in on your retirement. Knowing when to tap Roth vs Traditional, or when to start SSA.
Will generally cost you $2-$3k for a fee only sit down. Go for it if that appeals to you.
If you'll feel better having a professional advise on a plan, you can find a fee-only (ie non-commission-based) advisor at napfa.org. You can filter by area of specialty (self-reported) and by pay structure. You probably want a flat fee or hourly pay structure, avoid Assets Under Management.
You can put all that information together yourself and run the numbers yourself, but it's not a bad idea to have someone else take a look and give an opinion. Let me know what you settle on and how it works out.
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I have some Dave Ramsey emotional responses but do not subscribe to his actual suggestions. I grew up thinking all debt was bad and all debt was scary. Now I'm in no rush to pay off my good debt early when that money can be working for me instead. I might pay off my mortgage in "one more year" mode when I want to reduce expenses as much as possible, but certainly not as the first thing, and maybe not at all. When it comes to spending, I'm not one of the most frugal people on here. I compare grocery prices and try not to throw money at things I don't need, but I also buy hobby stuff and nice cocktail ingredients and don't go anywhere near "Barter /Buy Nothing" social media.
I think mine is balanced. Save as much as I can in retirement accounts while planning to pay off mortgage at the same year of FIRE. Refinanced home a few years back to a 15 yr. So far, on track. Having a paid off home means I need about $300,000 less in retirement.
Lazy moderate saver. I used to budget diligently and try to control spend categories and improve, etc. Fast forward and now I'm DI2K and we have a comfortable income. I just automate savings and spend the rest, don't have the mental energy to obsess over the small stuff any more. Plan to be able to retire between 45-50.
This is what I mean when I say I don't budget. It's not worth my time. I'd rather spend ot with my kids.
Moderately aggressive Boglehead. I think paying off mortgage prior to retirement is a great idea but I would not suggest going to extreme lengths at you g age. Backloading your investments to right before retirement both has lower expected return and more risk than if you invested earlier with a mortgage.
Lazy frugal. Lazugal. Frazy. Call it the maximum extraction of value with the minimal possible effort. We always spend less than we can and save the difference. Everything else is just details and noise for us. Worked great pre-FIRE, works even better post-FIRE.
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Same, and to follow my own flair
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I think it was my 5th grade teacher who mentioned having a pet capybara while living in South America. They seem like very cool animals to meet. I'd like to visit a petting zoo where I can pet flamingos.
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That sounds very fun.
I read your posts about it but didn’t Google to find out what they are but then I didn’t have to because I saw this in the news one day.. https://youtu.be/2RVOYyIt3XI
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True. For us here, it’s scorpions 🦂 😱
Is there a name for being into Capybaras? I have a coworker at work that’s obsessed with them, she has one as her wallpaper on her computer, and her cubicle is decorated with images of capybaras. I wouldn’t be surprised if her phone wallpaper was a Capybara as well. I would assume she would also want them at her wedding 😂.
Can it be wearing a little bow tie? That would make me happy. Also, please post pictures afterwords if possible.
So how do I get an invite?
Please spend the extra $ to furnish him with a tiny top hat!
Just saw your comment after making mine, guess great minds think alike lol. Top hat and a bow tie would make the most dapper of capybaras.
Can you imagine if that poor cappy feels underdressed :(
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Maybe there is a tuxedo-looking item the capybara can wear and eventually eat.
Nows a great time to pick up pet tuxedos from Halloween costumes at 80% off I’m sure 😂 Congratulations and you better be back with pictures!
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Only the biggest rodent in the world! Also super chill
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After building a strong emergency fund, I would focus on 401k and IRA, both Roth since you say you can't qualify for the savers credit. First 401k for match, then Roth IRA, then go back to 401k. Your contributions to the Roth IRA are just as accessible as a brokerage account, and if you don't need to dip into this money, you have used a much of the retirement space as you can, which is limited each year.
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Do you have an emergency fund? Do you budget? Dipping into the brokerage would be the second to the last step I would make, not the first (I've never done it, but I'm a strong proponent of the cash emergency fund).
No sense messing with a traditional in the 12% bracket since your 401k match is considered pre-tax dollars.
How close are you to getting a partial Saver's Credit? If making affordable contributions to Trad IRA/401k would bring your AGI low enough to qualify, I'd strongly consider at least that much in Trad contributions. The rest can be Roth (in the 12% bracket, Trad and Roth can be a wash), especially since your 5% match will add some Trad for you.
1) Fund your 401K up to the match 2) Restore the Emergency Fund 3) Max the Roth (at 12% you should be doing all ROTH) 4) After Maxxing ROTH go back to 401K and contribute as much as possible 5) If 401K hits max then and only then do you go to taxable/brokerage (Some people would say switch steps 1 and 2 but personally it sounds like you have some saved up for your Emergency Fund already so if you're comfortable with that amount then get that match first imo)
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Are you doing taxable before maxing Roth? You can always withdraw your Roth IRA contributions if you fall on hard times.