Depends on the value of your pensions and how much you're putting into the 401k.If my wife and I both have pensions and I have a 401k is there anything else we should be working on?
Depends on the value of your pensions and how much you're putting into the 401k.If my wife and I both have pensions and I have a 401k is there anything else we should be working on?
I respectfully disagree with this post. No one knows what life will throw at them therefore making a list is futile. An emergency fund should be liquid and in extremely safe investments.
Depends on the value of your pensions and how much you're putting into the 401k.
Well first of all, definitely get more info on your 401k.When we retire, our pensions combined should roughly bring in around 11k/month.
As far as 401k, I really don't know. I just signed up for it and dont remember.
Friendly reminder: For 2018, the max contribution for a 401k goes from 18k to 18.5k. The Roth IRA income phase-out range maxes are increasing as well. You can read about it here.
End of 2017 financial results:
- 48.51% growth in worth for husband and I! A little bit more if it's network since we're paying down mortgage too. We only just started a couple of years ago though, so this isn't BIG MONEY just yet.
- hit about 11% compounded interest overall! Could have been more were we more risky, but I think it's okay.
- went 2k+ over budget in fun money! Haha.. bad. But I also got an increase in pay and will adjust my budget to be a bit more "realistic".
overall I am on track to retire comfortably, but with future markets likely to tank or stagnate a bit at least, who knows! That just means I gotta hoard more, right?...
Is it better to max out a 401k vs. putting it into a Vanguard investment account? Our 401k has a measly match and I already put in 8%, but that's not 18k. How do I add a lump sum into it? Increase paycheck contribution?
Depends on 401K investments. In some scenarios, you may have to put money in a fixed rate over investing in any fund due to very high costs (fee for buying, selling, annual "managing").Is it better to max out a 401k vs. putting it into a Vanguard investment account? Our 401k has a measly match and I already put in 8%, but that's not 18k. How do I add a lump sum into it? Increase paycheck contribution?
Depends on 401K investments. In some scenarios, you may have to put money in a fixed rate over investing in any fund due to very high costs (fee for buying, selling, annual "managing").
What I've heard is you contribute to the 401k until you equal your employer match. Then you max out your IRA. Then you return to contributing to your 401k up to the max allowed.
When I contribute at fidelity I can specifically choose what tax year I want to contribute to. I would assume vanguard can do something similar.Stupid question time.
I got approved for a Roth IRA account with Vanguard in late December, and today, I put the full $5,500 into their Target Retirement 2050 fund (VFIFX).
As I understand it, this still falls under the 2017 tax year since it's before April 17th, 2018. If I wish to go ahead and contribute $5,500 for the 2018 tax year, can I go ahead and do that right now, or is there some other step that I need to do first in order to differentiate that this next $5500 is for the next tax year rather than the current tax year?
When I contribute at fidelity I can specifically choose what tax year I want to contribute to. I would assume vanguard can do something similar.
This what?
If you're an expert, then start a business in hedge fund management. Maybe your active investment skills are better than the market's.
You can qualify for an HSA if you have a high deductible health plan (HDHP). You have to have the latter first. If your employer offers a HDHP, then you sign up for that, then ask them about enrolling into an HSA. $6,650 is what is considered the maximum out-of-pocket expenses in HDHPs. Your $4000 and $5000 numbers seem to qualify as a HDHP, so ask your HR people if there is an HSA you can switch to.Can someone help me understand the HSA eligibility requirements? I have an HRA plan with with a deductible of $4,000 and an annual out of pocket maximum of $5,000.
I understand the deductible requirement, but I don't follow the out-of-pocket limit. For example, 2018 is $6,650. Are you eligible for an HSA if your out-of-pocket maximum is less than that (i.e. $5,000) or are they saying it needs to be greater than $6,650
https://tax.thomsonreuters.com/chec...-deductibles-and-hdhp-out-of-pocket-maximums/
Great, thanks for the information! HSAs seem like great retirement vehicles.You can qualify for an HSA if you have a high deductible health plan (HDHP). You have to have the latter first. If your employer offers a HDHP, then you sign up for that, then ask them about enrolling into an HSA. $6,650 is what is considered the maximum out-of-pocket expenses in HDHPs. Your $4000 and $5000 numbers seem to qualify as a HDHP, so ask your HR people if there is an HSA you can switch to.
Honestly I wouldn't start worrying about it for at least another 10 years.At what age would you all suggest adjusting investment allocation towards bonds? I'll be turning 30 this year, and all of my investments since I got started at about age 25 have been in stocks (specifically, a total market index fund, FSTVX, for the majority if my investments), but lately I've been wondering if I should adjust my allocations so that a smaller proportion (10%, maybe) of that goes towards a bond fund. If the bottom dropped out of the market right now I wouldn't be too concerned because I don't have any plans of touching that money for a long time (I'd like to retire at 60), but it seems that taking on too much risk, even at my age, is frowned upon.
At what age would you all suggest adjusting investment allocation towards bonds? I'll be turning 30 this year, and all of my investments since I got started at about age 25 have been in stocks (specifically, a total market index fund, FSTVX, for the majority if my investments), but lately I've been wondering if I should adjust my allocations so that a smaller proportion (10%, maybe) of that goes towards a bond fund. If the bottom dropped out of the market right now I wouldn't be too concerned because I don't have any plans of touching that money for a long time (I'd like to retire at 60), but it seems that taking on too much risk, even at my age, is frowned upon.
Depends on age, but generally people think you will retire when age penalties don't exist for retirement accounts.At what age would you all suggest adjusting investment allocation towards bonds? I'll be turning 30 this year, and all of my investments since I got started at about age 25 have been in stocks (specifically, a total market index fund, FSTVX, for the majority if my investments), but lately I've been wondering if I should adjust my allocations so that a smaller proportion (10%, maybe) of that goes towards a bond fund. If the bottom dropped out of the market right now I wouldn't be too concerned because I don't have any plans of touching that money for a long time (I'd like to retire at 60), but it seems that taking on too much risk, even at my age, is frowned upon.
At what age would you all suggest adjusting investment allocation towards bonds? I'll be turning 30 this year, and all of my investments since I got started at about age 25 have been in stocks (specifically, a total market index fund, FSTVX, for the majority if my investments), but lately I've been wondering if I should adjust my allocations so that a smaller proportion (10%, maybe) of that goes towards a bond fund. If the bottom dropped out of the market right now I wouldn't be too concerned because I don't have any plans of touching that money for a long time (I'd like to retire at 60), but it seems that taking on too much risk, even at my age, is frowned upon.
So $20,000 is about to fall into my lap (selling property given to my brother and me 25 years ago) and I've decided I should put it all towards my retirement. However I am mostly clueless about this sort of thing. The little research I did pointed me towards something like an IRA and then contributing an additional $5,000 a year to it. Is there a better course to maximize my retirement though? Not sure if it's relevant but I currently have a 401k which I contribute the maximum of which my work will match.
So $20,000 is about to fall into my lap (selling property given to my brother and me 25 years ago) and I've decided I should put it all towards my retirement. However I am mostly clueless about this sort of thing. The little research I did pointed me towards something like an IRA and then contributing an additional $5,000 a year to it. Is there a better course to maximize my retirement though? Not sure if it's relevant but I currently have a 401k which I contribute the maximum of which my work will match.
Why not contribute directly to Roth IRA? Why through a conversion?
You should still be able to contribute to either until April for previous year.
As for a Traditional to Roth conversion, I previously incorrectly stated there is a limit once per year. Unless I'm incorrectly reading terms again, there is actually no limit. One limit per year applies to rollover accounts.
Conversions should be taxed at current year.
You only need to do a backdoor Roth if you're above the income limit. If it's just a question of timing you should be fine to contribute now for 2017.Can anyone say a little more about backdoor Roth IRAs? Been doing a bunch of reading but haven't been able to find the answer so far to my question. I think I should be doing one but I'm still a little unclear. I didn't contribute for 2017 but my understanding is that I can contribute to last year up until taxes are due, but the conversion would have to happen this year. Does that mean, if I also contribute to an IRA for 2018, can I convert both of those amounts through a backdoor Roth in 2018?
Surely you mean now, right?watching this thread for when i need to buckle down and absorb some knowledge! Thank you so much!!!