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11-16-2017, 11:21 AM | #6376 | |
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Join Date: Nov 2002
Location: #blp
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Quote:
What are you current medical expenses? Which plan are you using (single, family, etc)? How much money do you have to contribute to the HSA? Just the premium difference? Max it out? What investment options are available in the HSA? Does the company provide any automatic deposits into the HSA (for health screening or other lifestyle improvement type activities)? If you choose the HMO HSA (family plan), you have $960 in deductible difference to use for any medical expenses. That still exposes you to 2K risk in Deductible, then another potential for 3K in co-pays before you reach max out of pocket (which is unlikely unless you have a lot of visits). But if you have the ability to pay for those out of after-tax money, then you can keep your pre-tax contributions in the HSA, and they grow just like your 401K.
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11-16-2017, 11:27 AM | #6377 | |
Scooby Specialist
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BAIC
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Generic advice time. Max out your HSA if you can before any other retirement plans aside from company match programs. You will very likely need the money at some point for medical expenses in your life and this way it’s tax free, and on the off chance you don’t you can still use it like you would a 401K when it’s time to retire. That is my understanding of the general rule of thumb regarding HSAs. |
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11-16-2017, 11:35 AM | #6378 | |
Scooby Guru
Member#: 178811
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MAIC
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Vehicle:2011 White Corolla Over 400hp |
Quote:
Single. I don't have to contribute any - my current spreadsheet math assumes maximum contribution for single at $3450. The HSA is through BenefitWallet and a cursory glance included some standard investment options, though oddly the Vanguard options are NOT Admiral shares for some stupid reason: https://mybenefitwallet.com/CMS/docs...tment_Link.pdf. My employer provides NO additional benefits. |
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11-16-2017, 11:49 AM | #6379 | ||
Scooby Guru
Member#: 92634
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Chapter/Region:
RMIC
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1) What's your marginal rate? 2) Do you ever use out of network care? 3) Would you be able to max out the HSA and still manage your other retirement savings ok? 4) IIRC you're recently divorced? Would you be covering your kids on this plan or just you? |
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11-16-2017, 11:52 AM | #6380 | |
Scooby Guru
Member#: 178811
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MAIC
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Vehicle:2011 White Corolla Over 400hp |
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11-16-2017, 11:58 AM | #6381 |
Scooby Guru
Member#: 30342
Join Date: Nov 2002
Location: #blp
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It sounds to me, that if you can afford to max out the HSA and have minimal planned medical expenses, that the HSA plan makes the most sense.
One last point, do you have $1500 in savings to pay for an unexpected hospital visit that might happen before you've funded your HSA? |
11-16-2017, 12:07 PM | #6382 | |
Scooby Guru
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11-16-2017, 12:25 PM | #6383 | |
Scooby Guru
Member#: 92634
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2018 numbers are $128.7k for FICA limit, $275k for IRS annual compensation limit. Using these: Employee contribution is $13,106. Employer contribution is $29,958. So $43,064 total in the 401(a) per year, making the total limit of $55k irrelevant. The upside of the IRS compensation limit is that compensation beyond this will feel 10% (ex taxes ) richer for the last few (? not few? ) months of the year. Thus the yearly 1-2%er pay cycle: X number of months feeling relatively cash poor due to FICA, then post-FICA, then finally post IRS compensation limit/post 401(a) time, then January and time to rinse and repeat. |
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11-16-2017, 12:38 PM | #6384 | |
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RMIC
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At 25% and able to max out HSA, plus possible out of network use (not covered at all by the left two plans in your table!) I would 100% go for the rightmost HSA plan. |
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11-16-2017, 12:38 PM | #6385 | |
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Join Date: Mar 2009
Location: I'll see myself out
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Quote:
"Plan Type 403(b)/401(a): Employee contributions may be pre-tax salary reductions or Roth 403(b) after-tax payroll deductions for Federal Income Tax purposes." Then it goes on to state under a heading "Voluntary Contributions"..."Allows employees to make contributions on a pre-tax or Roth 403(b) after tax basis). So it sound like in addition to the mandatory 401, you can contribute 18.5k into the 403(b) (which is not matched). Last edited by SoapBox; 11-16-2017 at 12:44 PM. |
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11-16-2017, 12:40 PM | #6386 | |
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I do not have any plans on acquiring conditions that require out of network treatment and I'm 27 so god help me I shouldn't have anything wrong with me that I haven't caught yet. |
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11-16-2017, 12:40 PM | #6387 | |
Scooby Newbie
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Location: MI
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- Essentially the new plan would move all 401k's to a more Roth 401k type system and your analysis says that is a bad thing for the user. So why do I see a lot of people advocating Roth 401k's instead of a traditional tax deferred 401k? |
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11-16-2017, 04:10 PM | #6388 | |
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Unless you're in a lower tax bracket now then you'll be in retirement, such as is true for medical residents unless they do a **** job of saving later on, then I don't see the point, really, and certainly not before filling up all tax-deferred spaces. |
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11-16-2017, 06:47 PM | #6389 |
Scooby Specialist
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Location: University of Florida
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After nearly 3 weeks, Trans America stopped holding his old 403b hostage.
http://i59.photobucket.com/albums/g2...betterment.jpg Finally in shikataganai-Betterment type money. chris619 dr_wheel Full_Clip is happy for the lower Betterment fee rate. |
11-22-2017, 04:33 PM | #6390 |
Scooby Guru
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RMIC
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Anyone else use Mint and update their Chase account(s) to the new direct access method recently? They apparently have a problem with duplicate accounts showing up.
Right now it's showing I have a current balance on my dozens of Chase cards (! little do they know that I have dozens of unused cards with other vendors in reality...) of nearly $300k. |
11-22-2017, 05:13 PM | #6391 | |
Scooby Newbie
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11-25-2017, 11:34 AM | #6392 | |
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Member#: 124113
Join Date: Aug 2006
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NESIC
Location: Rich Coast
Vehicle:Pura vida! Yellow V standing by |
Since the other thread is about 401k YTD returns, could we discuss projected balances, ages and targets here? You could be as detailed or vague as you want. I found this with a quick Google:
https://www.investopedia.com/article...alance-age.asp Quote:
Hopefully this doesn't get too "humblebraggy" but I think we could weigh in on if these are reasonable expectations and where we stack up. Personally, I'm 33 and at 2.5x my salary in my 401k. I contribute 12% and have great company matching (which makes up 10% of my account) and a profit sharing plan (which makes up an impressive 24% of my account after 6 years working there). So 66% is due to my own contributions, which I think is quite good. I'm pretty content that I'm ahead of the game but am still wary of what curveballs life can throw at you. My dad was a scrupulous saver and extraordinarily disciplined and informed investor and was able to retire before 50 and I'm glad he was able to because he died of cancer a few months after hitting 65. That was a bit of a slap in the face of my expectations based on averages/life expectancies and prior family experience of all 4 grandparents living into their 90s. So a tiny part of me went from of "I need to have enough saved for 20+ years of retirement" to "I could die any time and not even have a retirement". I didn't do anything in response to change my 401k or retirement strategies, but it has definitely shifted my long term outlook and approach to life. |
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11-25-2017, 11:44 AM | #6393 |
Scooby Guru
Member#: 92634
Join Date: Aug 2005
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RMIC
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I think those rules of thumb are too vague.
Better to project what your savings will amount to in a given year/age, and then see whether that passes muster with the usual Trinity Study 4% safe withdrawal rate. In other words, if you want to retire at age XYZ, make sure you have 25x your desired retirement spending by that age/time. |
11-25-2017, 12:02 PM | #6394 | |
Scooby Specialist
Member#: 64196
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11-25-2017, 12:04 PM | #6395 |
Scooby Guru
Member#: 92634
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In other finance related news, I found out that my sister makes somewhere north of 2x of what I make! She also works about 2x the hours, effectively--she was charting from clinic visits nearly 2 weeks beforehand throughout my family's visit to her place on Thanksgiving, has an 1 hr+ each way commute, and works 1 of 4 weekends.
I asked her whether she's ok with her work-life balance, and she said yes. Not sure if she's honest with herself or if she really has priorities way different than what I'd expect. Go figure. I am ok with my ~52ish hour average weeks (45 hours + 4-5 elective 5 hour shifts per month), q12w call, and short commute even if it means I'll probably never have estate tax issues unlike her... Last edited by shikataganai; 11-25-2017 at 12:22 PM. |
11-25-2017, 12:08 PM | #6396 |
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That's awful. What does she do?
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11-25-2017, 12:13 PM | #6397 |
Scooby Guru
Member#: 92634
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Chapter/Region:
RMIC
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Partner at a private practice med-onc group. Apparently her only option to cut hours would be go to a job sharing setup, and she doesn't want that for whatever reason (even though it'd still be plenty of money--her husband works, their kids are or will be in public schools, and their house is very reasonable).
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11-25-2017, 12:23 PM | #6398 |
Scooby Specialist
Member#: 64196
Join Date: Jun 2004
Chapter/Region:
RMIC
Vehicle:2010 Family Sedan |
Some oncologists make absurd neurosurgery kind of money. Screw that. At some point you're just pissing your life away.
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11-25-2017, 12:23 PM | #6399 | |
Scooby Newbie
Member#: 17948
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SCIC
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It is a decent starting point for thinking about savings. However, you really have to consider a lot of factors. Marital status, spouse's savings, home ownership, preferred consumption, Social Security expectations, ...
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11-25-2017, 12:31 PM | #6400 | |
Scooby Guru
Member#: 92634
Join Date: Aug 2005
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RMIC
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Ah, life choices. There's variance of opinion about what's optimal between people but objectively her setup sounds quite ****ty save for the money, and what's that good for without time or hobbies? Edit: Also no vacation. No one to cover her clinic if she's not there, so she works and works. Last edited by shikataganai; 11-25-2017 at 12:41 PM. |
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