I aim for 60-70%, but I don’t want to work ever again in 5 years unless it’s something I’m interested in.
You either have an incredibly good salary or ridiculously low expenses if this is feasible for you. Like, 50% of my take home pay is gone just after rent and immediate bills and I don't think that's hugely unusual.
Yes, my wife and I have incredibly high salaries. It’s a benefit of our industry and location.
Rent comes out to around 10% of my personal take home pay.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
Civics is not a consumer product that you can ignore because you don’t like the options presented.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
The key is to just set it all up as automatic, then just stop paying attention to it.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
I share this feel
Let us pour one out for the trough that was 2018
I hope it was a trough, but fear it will be worse.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
The key is to just set it all up as automatic, then just stop paying attention to it.
I do a fair amount of that. About 15% of my total before-tax income goes into investments automatically. The "issue" is that I make about 250% of what I did five years, but I spend about the same amount as I did five years ago. Even with keeping my emergency fund topped up appropriately, I keep having money pile up. That means that I need to make decisions about where and how to invest it.
Civics is not a consumer product that you can ignore because you don’t like the options presented.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
The key is to just set it all up as automatic, then just stop paying attention to it.
I do a fair amount of that. About 15% of my total before-tax income goes into investments automatically. The "issue" is that I make about 250% of what I did five years, but I spend about the same amount as I did five years ago. Even with keeping my emergency fund topped up appropriately, I keep having money pile up. That means that I need to make decisions about where and how to invest it.
Canned food and Campbell's stock.
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daveNYCWhy universe hate Waspinator?Registered Userregular
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
I share this feel
Let us pour one out for the trough that was 2018
I hope it was a trough, but fear it will be worse.
The joke my old boss had for these situations was, "Dollar cost averaging your way down to zero."
Shut up, Mr. Burton! You were not brought upon this world to get it!
I got to experience the ~20% drops in 2009 and 2010, so this isn't so bad. The problem is that most index fund investors saw ~15% increase last year and had about....3 years right around 10% before that (I'm going from memory so I could be way off). I'm also not touching mine for a long time, so I just try to check in with it on occasion.
at least i got to do some tax loss harvesting to offset some of my company's stock options i sold
that's a thing that can be useful to offset some income for tax purposes
(basically selling an investment for a loss and buying a similar thing so it's as if you didn't touch the money because you're back in the market at the same position, but you get to put those losses on your taxes)
If I'm trying to save up for a downpayment on a house within the next couple years, how should I be holding that money? Just in a savings account? Stocks seems really risky on such a relatively short time scale.
You're right! For short-term capital holding your best bets are something like a high-yield online savings account or a CD ladder of some kind, probably.
*throws the past two weeks numbers into his spreadsheet*
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
*throws the past two weeks numbers into his spreadsheet*
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
Contracts are still getting paid out, and the computers think it will end at some point.
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TL DRNot at all confident in his reflexive opinions of thingsRegistered Userregular
*throws the past two weeks numbers into his spreadsheet*
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
Yes, why would the numbers go up when people are going to be racking up debt, late fees, repossessions, and desperate for precarious gig work
*throws the past two weeks numbers into his spreadsheet*
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
Yes, why would the numbers go up when people are going to be racking up debt, late fees, repossessions, and desperate for precarious gig work
And cutting down on non-essential spending. Plenty of recessions happen when millions of people collectively decide to spend less.
*throws the past two weeks numbers into his spreadsheet*
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
Contracts are still getting paid out, and the computers think it will end at some point.
The computers don't even understand the concept of a shutdown seems more likely, imo.
*throws the past two weeks numbers into his spreadsheet*
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
Contracts are still getting paid out, and the computers think it will end at some point.
The government shutdown means that some economic reports aren't being released, so the market is running on less perfect information than normal right now.
Shut up, Mr. Burton! You were not brought upon this world to get it!
So, my lady friend had a 401k at her previous job, which she has since left and rolled into an IRA.
Our understanding is that both 401ks and IRAs are pre-tax income (ie. You pay income tax when you withdraw the funds), but she has been contributing monthly post tax income since starting a new job as well.
Is she crossing the streams here and causing a problem, or are we confused about something?
(She also has a Roth with a different company/broker, which is funded only with post tax income).
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thatassemblyguyJanitor of Technical Debt.Registered Userregular
So, my lady friend had a 401k at her previous job, which she has since left and rolled into an IRA.
Our understanding is that both 401ks and IRAs are pre-tax income (ie. You pay income tax when you withdraw the funds), but she has been contributing monthly post tax income since starting a new job as well.
Is she crossing the streams here and causing a problem, or are we confused about something?
(She also has a Roth with a different company/broker, which is funded only with post tax income).
There are 401k plans that allow you to make after tax contributions up to the yearly maximum for qualified retirement plan contributions. There are two limits to consider:
1) The 401k individual limit is $19,000 for 2019.
2) Yearly Maximum into a qualified retirement plan: $56,000
e: (sorry half finished this part) If the 401k is one of those plans that allows post-tax income, you're limited to the amount defined by: 56k - (401k + Employer Match), so no stream crossing is occuring.
If the money is going into the Traditional IRA and not the 401k, check with a tax professional because there are some trickier rules surrounding income limits and qualifying for an employer retirement plan which may mean you cannot deduct the contributions to the Traditional IRA (but you can still possibly contribute).
ee:
If you're saying that she's rolling over from a 401k account that is a mixture of pre-tax and post-tax money, then she can roll only the post-tax contributions into a Roth IRA, and the remaining pre-tax contributions and all gains into the Traditional IRA. Double check, however, as the last I checked on this was the IRS clarification note back in 2014.
The 401k was I think, though I could be mistaken, only pretax money. She left that job, and rolled it into a traditional IRA (still a pre-tax account at this point). Now, she is contributing post-tax funds to the same traditional IRA account. We’re just wondering how or when do we need to account for which money has already been taxed and which has not?
Completely separately, she is also contributing post tax funds to a Roth. I’m not worried about that account, as everything in it is from the same place.
The 401k was I think, though I could be mistaken, only pretax money. She left that job, and rolled it into a traditional IRA (still a pre-tax account at this point). Now, she is contributing post-tax funds to the same traditional IRA account. We’re just wondering how or when do we need to account for which money has already been taxed and which has not?
Completely separately, she is also contributing post tax funds to a Roth. I’m not worried about that account, as everything in it is from the same place.
The money she puts into the IRA will basically get deducted from her adjusted gross income when she files her tax bill.
The 401k was I think, though I could be mistaken, only pretax money. She left that job, and rolled it into a traditional IRA (still a pre-tax account at this point). Now, she is contributing post-tax funds to the same traditional IRA account. We’re just wondering how or when do we need to account for which money has already been taxed and which has not?
Completely separately, she is also contributing post tax funds to a Roth. I’m not worried about that account, as everything in it is from the same place.
The money she puts into the IRA will basically get deducted from her adjusted gross income when she files her tax bill.
this is correct. Be careful, IRA contribution limits are much lower than 401k limits. Only $5,500/year for most people.
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TL DRNot at all confident in his reflexive opinions of thingsRegistered Userregular
Is there any reason not to max HSA contributions before increasing IRA contributions, after hitting the employer match?
The 401k was I think, though I could be mistaken, only pretax money. She left that job, and rolled it into a traditional IRA (still a pre-tax account at this point). Now, she is contributing post-tax funds to the same traditional IRA account. We’re just wondering how or when do we need to account for which money has already been taxed and which has not?
Completely separately, she is also contributing post tax funds to a Roth. I’m not worried about that account, as everything in it is from the same place.
The money she puts into the IRA will basically get deducted from her adjusted gross income when she files her tax bill.
this is correct. Be careful, IRA contribution limits are much lower than 401k limits. Only $5,500/year for most people.
Also be careful because this is the combined limit. You can't do 5500 in a Roth and 5500 in a traditional IRA. It's 5500 total, split up however you want.
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DemonStaceyTTODewback's DaughterIn love with the TaySwayRegistered Userregular
How does taking money out / moving money from an HSA work?
It acts like a regular retirement account basically but you can use a card to pay for your approved medical bills via the funds in it and the get used tax free.
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TL DRNot at all confident in his reflexive opinions of thingsRegistered Userregular
How does taking money out / moving money from an HSA work?
It acts like a regular retirement account basically but you can use a card to pay for your approved medical bills via the funds in it and the get used tax free.
I don't have a card - you can just withdraw to your savings account and be sure to document your receipts in case of audit, yeah?
How does taking money out / moving money from an HSA work?
It acts like a regular retirement account basically but you can use a card to pay for your approved medical bills via the funds in it and the get used tax free.
I don't have a card - you can just withdraw to your savings account and be sure to document your receipts in case of audit, yeah?
The HSA I used to have had a specific process for getting reimbursed
You basically just turned in a form on their website and then they deposited the money
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DemonStaceyTTODewback's DaughterIn love with the TaySwayRegistered Userregular
When I had the HDHP with a HSA it came with a debit card, but I'm pretty sure that was just for the convenience of being able to track things for tax purposes and was technically no different than having to show receipts.
Sort of like how I used to have a corporate card to order books and then uploading the invoice at the old place, but now it's a form for accounting.
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BlackDragon480Bluster KerfuffleMaster of Windy ImportRegistered Userregular
Posts
Yes, my wife and I have incredibly high salaries. It’s a benefit of our industry and location.
Rent comes out to around 10% of my personal take home pay.
Looking back at the year, the things that I've been investing in lost between 5% to 15% of their value. They're mostly index funds and bank stocks.
In the long term, I know that this is absolutely fine. I don't plan on cashing them out for another 30 years. It means that my dollar goes further in investing now.
That rational part of my brain is what I'm listening to, not the sobbing voice looking at several thousand dollars evaporating temporarily (hopefully) into the ether.
The key is to just set it all up as automatic, then just stop paying attention to it.
I share this feel
Let us pour one out for the trough that was 2018
I hope it was a trough, but fear it will be worse.
I do a fair amount of that. About 15% of my total before-tax income goes into investments automatically. The "issue" is that I make about 250% of what I did five years, but I spend about the same amount as I did five years ago. Even with keeping my emergency fund topped up appropriately, I keep having money pile up. That means that I need to make decisions about where and how to invest it.
Canned food and Campbell's stock.
The joke my old boss had for these situations was, "Dollar cost averaging your way down to zero."
that's a thing that can be useful to offset some income for tax purposes
(basically selling an investment for a loss and buying a similar thing so it's as if you didn't touch the money because you're back in the market at the same position, but you get to put those losses on your taxes)
ya that's true there's a 30 day limit if its too similar / "substantially identical"
And this is what we call "why you never try to time the market" because why the FUCK is it going up like this while there's a fucking government shutdown?
Contracts are still getting paid out, and the computers think it will end at some point.
Yes, why would the numbers go up when people are going to be racking up debt, late fees, repossessions, and desperate for precarious gig work
And cutting down on non-essential spending. Plenty of recessions happen when millions of people collectively decide to spend less.
The computers don't even understand the concept of a shutdown seems more likely, imo.
3DS: 0473-8507-2652
Switch: SW-5185-4991-5118
PSN: AbEntropy
The government shutdown means that some economic reports aren't being released, so the market is running on less perfect information than normal right now.
Our understanding is that both 401ks and IRAs are pre-tax income (ie. You pay income tax when you withdraw the funds), but she has been contributing monthly post tax income since starting a new job as well.
Is she crossing the streams here and causing a problem, or are we confused about something?
(She also has a Roth with a different company/broker, which is funded only with post tax income).
There are 401k plans that allow you to make after tax contributions up to the yearly maximum for qualified retirement plan contributions. There are two limits to consider:
1) The 401k individual limit is $19,000 for 2019.
2) Yearly Maximum into a qualified retirement plan: $56,000
e: (sorry half finished this part) If the 401k is one of those plans that allows post-tax income, you're limited to the amount defined by: 56k - (401k + Employer Match), so no stream crossing is occuring.
If the money is going into the Traditional IRA and not the 401k, check with a tax professional because there are some trickier rules surrounding income limits and qualifying for an employer retirement plan which may mean you cannot deduct the contributions to the Traditional IRA (but you can still possibly contribute).
ee:
If you're saying that she's rolling over from a 401k account that is a mixture of pre-tax and post-tax money, then she can roll only the post-tax contributions into a Roth IRA, and the remaining pre-tax contributions and all gains into the Traditional IRA. Double check, however, as the last I checked on this was the IRS clarification note back in 2014.
Completely separately, she is also contributing post tax funds to a Roth. I’m not worried about that account, as everything in it is from the same place.
The money she puts into the IRA will basically get deducted from her adjusted gross income when she files her tax bill.
this is correct. Be careful, IRA contribution limits are much lower than 401k limits. Only $5,500/year for most people.
Also be careful because this is the combined limit. You can't do 5500 in a Roth and 5500 in a traditional IRA. It's 5500 total, split up however you want.
It acts like a regular retirement account basically but you can use a card to pay for your approved medical bills via the funds in it and the get used tax free.
I don't have a card - you can just withdraw to your savings account and be sure to document your receipts in case of audit, yeah?
The HSA I used to have had a specific process for getting reimbursed
You basically just turned in a form on their website and then they deposited the money
Mine has like a credit card type card thingy.
Yeah our new one does. Ez pz.
Still waiting for my annual statement, but my 4th quarter report for my TSP was rolling 12-month of -6.88%. :rotate:
I blame Johnson & Johnson
Sort of like how I used to have a corporate card to order books and then uploading the invoice at the old place, but now it's a form for accounting.
Who knew knowingly putting asbestos in baby powder would cause issues?
~ Buckaroo Banzai