The Not Financial Advice Thread

[BayRaider]

If your job doesn’t offer a 401K, what do you guys suggest on top of a Roth IRA?

[LETSGOBROWNIES]

Just now, BayRaider said:

They are taxable in those two states. 

Just googled it.  They’re taxed by the state, but they still lower your federal tax rates.  That’s a good question.  
 

Id still prolly say yes just because you’d have (at a minimum) a federally tax deferred savings account for health expenses.

[LETSGOBROWNIES]

4 minutes ago, BayRaider said:

If your job doesn’t offer a 401K, what do you guys suggest on top of a Roth IRA?

Index funds/stocks.

You won’t get additional tax benefits or whatever, but you’ll have a lot more flexibility.

[BayRaider]

I bought the dip on coinbase because I think it will be the sixth FAANG company with time, got it at $60. Doing pretty well. 

[titansNvolsR#1]

I feel so lost reading these threads 😆

Since we work overseas and not for American-based companies, I just invest with Vanguard's index funds. Think it's 55% US stock market (VTI), 25% international (VXUS), and 20% bonds. I'm not going to become rich, but it should be enough to retire on in thirty years. We will just need to find a country that Americans can retire to for healthcare and CoL. 

[MWil23]

11 hours ago, LETSGOBROWNIES said:

Index funds/stocks.

You won’t get additional tax benefits or whatever, but you’ll have a lot more flexibility.

You can pull it whenever without having to pay a 30% tax like you would on an IRA/Roth and it can be liquid within a day. Indexed mutual funds can be as easy as setting up a vanguard account or you can always talk to a financial person to help as well.

Mine is one I hope to never touch until I retire, but if I ever wanted to pull it (3 daughters, probably 3 weddings) I absolutely can.

[ramssuperbowl99]

13 hours ago, LETSGOBROWNIES said:

14 hours ago, BayRaider said:

They are taxable in those two states. 

Just googled it.  They’re taxed by the state, but they still lower your federal tax rates.  That’s a good question.  

Just for my understanding, when you say they're taxable, do you mean that the HSA is not deductible against state income, that capital gains made in the account would add to state taxable income, or both?

It's still probably worthwhile, even if you have both. If the HSA gains accrue state income taxes and you use it like a retirement account, it doesn't really matter as long as you have moved or can find a low cost move when you need the money. 

[LETSGOBROWNIES]

19 minutes ago, ramssuperbowl99 said:

Just for my understanding, when you say they're taxable, do you mean that the HSA is not deductible against state income, that capital gains made in the account would add to state taxable income, or both?

It's still probably worthwhile, even if you have both. If the HSA gains accrue state income taxes and you use it like a retirement account, it doesn't really matter as long as you have moved or can find a low cost move when you need the money. 

I just perused it quickly as it doesn’t really impact me, but my understanding was both.

I just can’t imagine any situation in which state tax concerns outweighs the federal tax savings/benefits paired with actually having funds available for healthcare costs.

[LeotheLion]

15 hours ago, titansNvolsR#1 said:

I feel so lost reading these threads 😆

Since we work overseas and not for American-based companies, I just invest with Vanguard's index funds. Think it's 55% US stock market (VTI), 25% international (VXUS), and 20% bonds. I'm not going to become rich, but it should be enough to retire on in thirty years. We will just need to find a country that Americans can retire to for healthcare and CoL. 

If you invest 20-25% of your income in Vanguard index funds for 30 years you will definitely become rich. Or at least far better than 90-95% of retirees. 

[biggie.]

1 hour ago, LeotheLion said:

If you invest 20-25% of your income in Vanguard index funds for 30 years you will definitely become rich. Or at least far better than 90-95% of retirees. 

VTI for Roth, VOO for taxable.

[LeotheLion]

1 hour ago, biggie. said:

VTI for Roth, VOO for taxable.

I actually do this for both my Roth and Taxable. My taxable has a lot of other stuff in it too but VOO probably is about 25% of the account balance. Roth is 100% VTI.

Edited August 15, 2022 by LeotheLion

[titansNvolsR#1]

8 hours ago, LeotheLion said:

If you invest 20-25% of your income in Vanguard index funds for 30 years you will definitely become rich. Or at least far better than 90-95% of retirees. 

This is good to know. Everything I’m doing is based on Andrew Hallam’s “Millionaire Teacher”. He was an international school teacher as well and explained stock markets about as well as anyone could to a plebe like myself. Aiming for about 40% of our income the last four years as we have no debt, but that will come down once our kid gets here in January I’m sure.

[biggie.]

5 hours ago, LeotheLion said:

I actually do this for both my Roth and Taxable. My taxable has a lot of other stuff in it too but VOO probably is about 25% of the account balance. Roth is 100% VTI.

Assuming your taxable is funded with money you can afford to lose, I don't blame anyone for wanting to experiment and take a swing on something.

[kingseanjohn]

While no one has really shown interest; if you're like me and have waited to buy your I Bonds, the deadline to purchase is in 4 days -- Friday, October 28th. Purchasing by this date ensures they are issued by the 31st prior to rate changes. Get that 9.62% apy for six months locked in. Far better than any high yield savings account right now assuming you don't need the money for 12 or more months.

[ramssuperbowl99]

4 hours ago, kingseanjohn said:

While no one has really shown interest; if you're like me and have waited to buy your I Bonds, the deadline to purchase is in 4 days -- Friday, October 28th. Purchasing by this date ensures they are issued by the 31st prior to rate changes. Get that 9.62% apy for six months locked in. Far better than any high yield savings account right now assuming you don't need the money for 12 or more months.

I think this forum still skews young enough that the majority of us are nearly all in on equity.

But if anyone is overpaying their mortgage, you'd be better off with putting that money in a bond and making the minimum.