Search found 834 matches

by CnC
Fri Nov 08, 2019 8:36 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

From what I read I think we can. But I am not certain. Yes, you can. Pub. 969 (linked previously), for an IRS publication, is quite readable. In there one finds "You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish...
by CnC
Fri Nov 08, 2019 5:07 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

From what I read I think we can. But I am not certain. Yes, you can. Pub. 969 (linked previously), for an IRS publication, is quite readable. In there one finds "You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish...
by CnC
Fri Nov 08, 2019 4:56 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 290
Views: 19340

Re: Will we be OK at 3% WR?

You might find this link interesting and useful: https://portfoliocharts.com/portfolio/withdrawal-rates/ Not only does it explain (albeit briefly) the back-testing methodologies employed in previous studies, it has a fantastic calculator that allows you to see both the safe withdrawal rate (which m...
by CnC
Fri Nov 08, 2019 4:47 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

Ok one more question. Say we both have HSA plans. But 5 years from now our employers both decide to be kind and give us great low cost high coverage insurance that is not longer "high deductible" can we still use that has money even if we are "covered" by non HSA eligible insurance? Or do our expens...
by CnC
Fri Nov 08, 2019 4:32 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

One more question, my HR department said that I can cover my wife and children's medical bills out of my HSA even if they are not covered by my insurance. (wife had her own this year that was not HSA eligible) Sometimes, as here, HR gets it right. ;) From https://www.irs.gov/pub/irs-pdf/p969.pdf: Q...
by CnC
Fri Nov 08, 2019 2:02 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 290
Views: 19340

Re: Will we be OK at 3% WR?

" If history is any guide for the future , then withdrawal rates of 3% and 4% are extremely unlikely to exhaust any portfolio of stocks and bonds during any of the payout periods shown in Table 1. In those cases, portfolio success seems close to being assured." Throughout the period used for backte...
by CnC
Fri Nov 08, 2019 1:54 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

Right now my employer have a very unique hsa plan. 100% self insurance to 3k then 100% employer coverage after that. If that plan doesn't change even accounting for inflation I should have more than 10x my yearly maximum within 10 years and possibly 30x out of pocket maximum by the time I retire. I...
by CnC
Fri Nov 08, 2019 12:23 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

Since you can use it as a pretax IRA in the very worst case scenario, I would say you can never have too much. Keep in mind you can use it for Medicare premiums and Long Term Care insurance. Huh? It can only be used for qualified medical expenses. How is it a pretax ira? HSA withdrawals for non-med...
by CnC
Fri Nov 08, 2019 12:12 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

Re: How much is too much in an HSA?

aristotelian wrote:
Thu Nov 07, 2019 4:24 pm
Since you can use it as a pretax IRA in the very worst case scenario, I would say you can never have too much.

Keep in mind you can use it for Medicare premiums and Long Term Care insurance.
Huh? It can only be used for qualified medical expenses.

How is it a pretax ira?
by CnC
Thu Nov 07, 2019 4:12 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4230

How much is too much in an HSA?

Or is there such a thing as too much? We are very new to the whole hsa concept, I just started an HSA this year and put ±3000 in it. My wife's nice high quality low cost insurance went down the tubes finally this year. Her company held on and continued offering wonderful coverage at low costs for qu...
by CnC
Thu Nov 07, 2019 12:53 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 290
Views: 19340

Re: Will we be OK at 3% WR?

There have been numerous studies of SWR in various countries as well as globally invested, as well as numerous discussion on this forum about them. US results are near the top. Almost all the countries with low SWR are limited by years where the country was bombed to near oblivion. To elaborate on ...
by CnC
Thu Nov 07, 2019 12:44 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 290
Views: 19340

Re: Will we be OK at 3% WR?

What's your opinion? Ages 54 and 52. Will 3% be OK going forward? Throw it all out there. I'd like to hear both sides. Currently living on interest and dividends, which is about 2.2% Are we sacrificing lifestyle enjoyment for paranoia, or a just a sense of safety? Short answer yes, long answer is w...
by CnC
Fri Nov 01, 2019 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Possible Layoff: Need Assurance That We Will Be Okay
Replies: 153
Views: 12514

Re: Possible Layoff: Need Assurance That We Will Be Okay

This literally MUST be a joke. It isn't a joke. Since the news hit, I have felt pretty sick and worried and couldn't sleep at all last night. Got up at 2:00 and came into the office to think and ponder. And to post my query. I do not handle uncertainty well. The problem is that the OP is not thinki...
by CnC
Fri Nov 01, 2019 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Maximum salary to contribute to a 401k?
Replies: 8
Views: 1315

Re: Maximum salary to contribute to a 401k?

This is what I read. 2020 Compensation Limit for 401(k)s Another critical thing to know about IRA contribution limits is that your contribution can get phased out altogether if you are a highly-compensated employee. The IRS sets limits for the maximum allowable income to be eligible to make 401(k) ...
by CnC
Fri Nov 01, 2019 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Maximum salary to contribute to a 401k?
Replies: 8
Views: 1315

Re: Maximum salary to contribute to a 401k?

I'm not talking about HCE I have done some research on that. I just had never hear of a maximum salary to contribute to a 401k According to Spirit Rider "the limit is the maximum compensation employer contributions can be based on." Then that doesn't matter to me at all I guess the idea is a 5% matc...
by CnC
Fri Nov 01, 2019 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Maximum salary to contribute to a 401k?
Replies: 8
Views: 1315

Maximum salary to contribute to a 401k?

I suppose the idea that I'm even concerned about this is great news, but I was checking contribution limits for 2020 to get an idea what my planned withholding would be next year and I saw that 280k was the maximum salary that you could have and contribute to a 401k and it was increasing to 285k. Wh...
by CnC
Fri Nov 01, 2019 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Freezing Credit? Questions 2019
Replies: 19
Views: 1624

Re: Freezing Credit? Questions 2019

Thanks for the replies.
by CnC
Tue Oct 29, 2019 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Freezing Credit? Questions 2019
Replies: 19
Views: 1624

Freezing Credit? Questions 2019

My wife has recently became concerned with identity theft due to the security nature of her job and the fact that we now have what I would call substantial assets. We have max and near max credit scores substantial assets with very low liabilities. I had never been concerned with "identity theft" be...
by CnC
Tue Oct 29, 2019 3:57 pm
Forum: Personal Investments
Topic: What should a mid 30s Asset Allocation be?
Replies: 45
Views: 2301

Re: What should a mid 30s Asset Allocation be?

3) Then, you should read enough that most people do not prepare for the possibility of zero income over a long period in a recession. They were forced to sell their stocks. KlangFool Klang, I have to play the devil's advocate here. Please tell me how long you are prepared for with a 50% drop in the...
by CnC
Tue Oct 29, 2019 3:44 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 201
Views: 20534

Re: I’m done with index funds

At some point $3000 a year is meaningless. Regardless of how far out you extend it. Expecially if you have . 7% er on 5 million bucks. It seems like you are spending dollars to save pennies. Forget about the 3k a year. As you suggest, it is a rounding error in the grand view of things. It is about ...
by CnC
Tue Oct 29, 2019 3:06 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 201
Views: 20534

Re: I’m done with index funds

Op I'm assuming this thread is still alive and while I'm late to the party I am having some trouble with the math. I simply don't understand what the goal is with your tax loss harvesting. At some point $3000 a year is meaningless. Regardless of how far out you extend it. Expecially if you have . 7%...
by CnC
Fri Oct 25, 2019 3:23 pm
Forum: Personal Investments
Topic: 29yo Targeting FI at 40 - Review Request
Replies: 28
Views: 3504

Re: 29yo Targeting FI at 40 - Review Request

I'm not seeing 40 as doable. We are making a bit more and spending a bit less per year ages 33 and 34 and the absolutely earliest we could be confidently FI is 45. We have a paid off house and a ± 670k cash net worth. While you are a bit younger than me and my wife you still have quite a bit of accu...
by CnC
Wed Oct 23, 2019 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Do you plan to actually spend down your portfolio?
Replies: 104
Views: 9736

Re: Do you plan to actually spend down your portfolio?

Simple, most of us view passing with ≤$0 as failure. Passing money into our children is not a failure so since only running out of money is the failure we error on the side of caution. It's a simple equation if you have a 90%+ chance of having more than $0 in atleast 50% of the times you will have m...
by CnC
Mon Oct 21, 2019 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: I bought a STOLEN vehicle!!!
Replies: 106
Views: 15201

Re: I bought a STOLEN vehicle!!!

$13,000 cash Like, $13,000 in paper money?! That was my thought too. I am sorry for what you are going through, but why would you make a major purchase from a private seller in cash? Any chance of getting fingerprints off the car? Why would you not pay cash? No person would sell a vehicle for a che...
by CnC
Thu Oct 17, 2019 10:14 am
Forum: Personal Investments
Topic: I'm an indexer, but should I be buying my companies discounted stock?
Replies: 42
Views: 3224

Re: I'm an indexer, but should I be buying my companies discounted stock?

Isn't your salary enough of an investment/return in your company? If your company tanks -- your investment tanks, and your income goes away. Why let both of those things happen, even at a discount? You may believe in your management, and you're probably not wrong, but would an outside investor have...
by CnC
Thu Oct 17, 2019 10:09 am
Forum: Personal Investments
Topic: I'm an indexer, but should I be buying my companies discounted stock?
Replies: 42
Views: 3224

Re: I'm an indexer, but should I be buying my companies discounted stock?

Imo with 1 mil in assets already buying company stock at a 15% discount is a no brainier. Unless you feel that it is likely that your stock will dip more than 15% in a year you are guaranteed a profit. What are the limits of how much you can buy? At 1m in assets I would keep a rolling 25k in discoun...
by CnC
Wed Oct 16, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: GE Pension Buyout
Replies: 83
Views: 11165

Re: GE Pension Buyout

I started my career at GE in 1987 and worked there for 12 years. During that time i vested in their DC pension plan. This week GE froze its pension for current employees, and offered a buyout to former employees who have not started receiving benefits. I received (online) a buyout letter which spel...
by CnC
Mon Oct 14, 2019 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: HSA plans and premiums post retirement.
Replies: 11
Views: 862

Re: HSA plans and premiums post retirement.

Wait I reread what you posted artful dodger. I think I understand that it isn't cobra coverage, but does it appear equivalent for HSA purposes? If you do some searches, you find alot of references that just say you can pay COBRA with your HSA, or in a few instances you can pay state continuation wi...
by CnC
Mon Oct 14, 2019 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: HSA plans and premiums post retirement.
Replies: 11
Views: 862

Re: HSA plans and premiums post retirement.

Wait I reread what you posted artful dodger.

I think I understand that it isn't cobra coverage, but does it appear equivalent for HSA purposes?
by CnC
Mon Oct 14, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

We already have substantial taxable contributions. I have had a previous thread on the reasoning for that so there is no benefit for having less in a pretax account. My biggest concern was that just last year we found out that her employer allows after tax contributions and in plan roll overs allowi...
by CnC
Mon Oct 14, 2019 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: HSA plans and premiums post retirement.
Replies: 11
Views: 862

HSA plans and premiums post retirement.

This question is not for me, but I'm trying to help out some of the older employees in my department. I have read up on HSA plans and the IRS's list of qualified expenses. I know you can not pay for premiums with your HSA money while you are working. However there is a caviot that you can pay for co...
by CnC
Fri Oct 11, 2019 2:37 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

It's not even a promotion that necessarily puts you over the top. I've been close to the HCE cutoff the past couple years, and my annual ~2-3% normal raises keep edging me closer, and if I get a bonus I'm immediately over which has happened before. My company's awful HCE/401K rules state that HCEs ...
by CnC
Fri Oct 11, 2019 2:30 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

No, not really. Everything has a price and value. The promotion might be worth the extra effort since it pays extra money. But making say $20,000 more and losing access to be able to save $50,000 in your 401k savings ability isn't worth it. It may or may not be worth it, but simply comparing $20K i...
by CnC
Thu Oct 10, 2019 7:14 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

Correct me if I am wrong but that bump into becoming a HCE actually is a huge penalty and unless you continue to get substantial races from that point you are better off financially not getting any raises and staying under that amount staying under that amount. So you rather decline a promotion at ...
by CnC
Thu Oct 10, 2019 5:39 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

Correct me if I am wrong but that bump into becoming a HCE actually is a huge penalty and unless you continue to get substantial races from that point you are better off financially not getting any raises and staying under that amount staying under that amount. So you rather decline a promotion at ...
by CnC
Wed Oct 09, 2019 10:55 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

My wife's employer allows for after tax contributions and in service roll overs so we are currently able to save the maximum 56k between Roth roll overs company match and pre-tax 401k. How did you come up with 56k? Is this combined between the two of you? I thought the limit was 19k per person plus...
by CnC
Wed Oct 09, 2019 3:46 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

So many replies, thank you for taking the time to straighten me out as much as possible on this. So what it seems like I am being told is that this really is a complete shot in the dark. It's not really it ignore it because it's a first world problem or that I shouldn't plan ahead. It really is just...
by CnC
Wed Oct 09, 2019 3:26 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

There have been a lot of misunderstanding and misinformation in this thread. I am starting with the OP. If I'm a diligent saver maxing my 457 out at (currently) under 100k and in a few years I break 120k (or 130k due to inflation) my ability to drop to next to nothing since my employer's 457 plan h...
by CnC
Wed Oct 09, 2019 2:38 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

...If you pass 2? Or more of these you are in essence prevented from using a 401k to save for retirement... I'm not an expert, all I know is what I went through personally. But I certainly wasn't prevented from using a 401k. I just had a dollar limit that was a less than the maximum available to no...
by CnC
Wed Oct 09, 2019 1:03 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

...If you pass 2? Or more of these you are in essence prevented from using a 401k to save for retirement... I'm not an expert, all I know is what I went through personally. But I certainly wasn't prevented from using a 401k. I just had a dollar limit that was a less than the maximum available to no...
by CnC
Wed Oct 09, 2019 1:00 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

To fully explain the HCE rules would venture quickly into a discussion of public policy which is not condoned on this site. In fact, as a general rule, questions about "fairness" of almost anything are almost impossible to avoid having the thread eventually locked since the conversation often turns...
by CnC
Wed Oct 09, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

If I'm a diligent saver maxing my 457 out at (currently) under 100k and in a few years I break 120k (or 130k due to inflation) my ability to drop to next to nothing since my employer's 457 plan had moderately high fees and no match so very little participation. Is this correct? This does not seem t...
by CnC
Wed Oct 09, 2019 9:38 am
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

There are a lot of “what if’s” in life but that should not be an impediment to actually living your life. Just continue as you are already doing so and when/if you come to an actual hurdle in your path you can then figure out how to alleviate the issue. It’s a waste of time resources otherwise. Wit...
by CnC
Wed Oct 09, 2019 9:35 am
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

Re: highly compensated employee (HCE) Time bomb?

To fully explain the HCE rules would venture quickly into a discussion of public policy which is not condoned on this site. In fact, as a general rule, questions about "fairness" of almost anything are almost impossible to avoid having the thread eventually locked since the conversation often turns...
by CnC
Wed Oct 09, 2019 9:11 am
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8868

highly compensated employee (HCE) Time bomb?

I recently read a thread where a poster was told by his company that he was a HCE and it basically eliminated his ability to contribute a reasonable amount to his 401k. A few questions: Let's remove the question regarding fairness and just accept life is not fair for forum rules. If I'm a diligent s...
by CnC
Wed Oct 09, 2019 8:26 am
Forum: Investing - Theory, News & General
Topic: Only Good Argument Against Indexed Funds
Replies: 14
Views: 2947

Re: Only Good Argument Against Indexed Funds

This Reuters article posted on Yahoo Finance is the 1st and only good argument I’ve seen against passive funds (and ETFs?). Basically it says that passive funds don’t weigh in on management issues like management compensation and such, letting poorly run companies get away with more. The article co...
by CnC
Fri Oct 04, 2019 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: gifting
Replies: 30
Views: 2075

Re: gifting

In a conversation with financial planner working on estate planning he said we could gift now and if over the 15k allowed limit it will go against me personal exemption upon death. I think there are a lot smarter people here than me so I am asking opinions. I am considering paying off my daughters ...
by CnC
Fri Oct 04, 2019 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: [When my children marry, should they sign a pre-nuptial agreement?]
Replies: 95
Views: 7987

Re: Daddy I'm engaged! Pre-nup?

I’m a lawyer and I find pre-nups and post-nups sort of self defeating. You are basically saying “I want to get married, but eventually it won’t work out, so here’s the split...” I couldn’t imagine marrying someone and asking for a pre-nup. In fact, my wife once asked why I never asked her for one e...
by CnC
Thu Oct 03, 2019 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: [When my children marry, should they sign a pre-nuptial agreement?]
Replies: 95
Views: 7987

Re: Daddy I'm engaged! Pre-nup?

Not being rude but your modest estate won't be attracting any gold diggers. Stay out of it. That is My thoughts. 10+ million then yes I would think about a prenuptial agreement. But 1.3 at mid 60's that will likely be halved in value before you depart due to inflation and expenses divided by 2 chil...
by CnC
Thu Oct 03, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Car price ratio to NW
Replies: 140
Views: 9536

Re: Car price ratio to NW

I don't disagree your argument of taking 0% interest free loan. IF someone would give me free money, I would take it in a heartbeat. But what's the catch? What do you have to pay in order to get that 0% interest free loan? When it's too good to be true, it ain't. I mostly agree. But I will use myse...