“I make $1.2 million and spend $50k a year.”
What the hell is wrong with these people?
https://www.bogleheads.org/forum/viewtopic.php?f=2&t=419214&newpost=7606106
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I don’t believe a single word of that post fwiw.
He could be paying more than 50k in rent in some FAANG adjacent metro area. I suppose he could live like a monk with no candles on a grand a month, but it sure seems unlikely.
That is a creative writing prompt.
He probably owns his home outright, and has thus removed the largest monthly expense from his budget.
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His post says “rent included.”
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Setting aside whether that post is real or not, I think if I were a young single dude my expenses would be a bit higher than 50K/yr, but not by that much (assuming full time work. If I had more free time, then I’d spend more on travel and recreation and my expenses would be much higher).
I think you were the one who said “I like having money more than I like spending money”. I think a lot of people are like that.
Also if you grew up poor and didn’t always have a ton of money, sometimes it is hard to get used to splurging on stuff.
Anyone here use mint? I’ve used it almost forever mostly for basic aggregation of transactions because I never log into my credit cards. Got a banner saying it’s going away and to join credit karma???
I’ve been using YNAB classic since 2016 and swear by it. Have not transitioned over to the web/subscription version and hope I never need to. At the time of my decision making I liked YNABs offerings and methodology way better than Mint.
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I’m trying to complete a 60 day rollover of an HSA->HSA but my previous custodian seems to have lost my money. Don’t ask why I didn’t do a direct transfer. I should have but it’s too late now. I was just trying to exit my previous custodian ASAP because Optum Bank repeatedly mismanaged my funds. I never thought it would be so difficult to get a check.
Anyway they show the account closed with a check issued in late Dec. Didn’t receive it after two weeks so I called and they said they’d reissue. Another two weeks have passed with nothing so I called again and got a “it’s in the hands of another department but you should hear from them within 7-10 business days.” Reading the IRS book it sounds like the 60 days starts from when I receive the funds but I assume I’m going to get a form showing a disbursement in December so how do I handle that if there’s no money when it’s tax filing time? Also any ideas for actually getting my money? I just filed a CFPB complaint. I filed one on them before for a separate issue which prompted them to resolve it pretty quick, hoping for the same this time.
If you can cover it, I would just write a check to the new HSA just to avoid any possible tax issues. From there you can focus on just getting a check re-issued and cash it whenever it arrives. I’d recommend using ACH in the future.
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So my dad has some money in a 401k. He’s retired, 75 years old. He’s going to show me the allocation soon, but it seems to be roughly 50% equities and 50% bonds. But it’s pretty messy, like a mixture of “large cap growth fund” and a 2025 target date fund and a Russell 1000 etf and a bunch of stuff. The brokerage/whatever administering the 401K charges him stupid fees, like $75 to take a distribution and $200-300 a year just to have the account.
My thought is to roll it over into something or transfer it to a different brokerage, discuss his plans for the money with him, and shift him to a simpler allocation - either a Vanguard target date fund or something like 40-45% S&P 5-10% international etf 50% bond etfs if he wants 50-50. Then I could rebalance for him quarterly or annually, and do the ACH transfers for the distributions for him and he wouldn’t be getting screwed on fees.
Anyone have any suggestions/experience with this? I’ve never had a 401k since I’m self-employed, so I don’t know much about the specific rules for them. I know a lot of the companies that administer them charge ridiculous fees. Is there a play here like a backdoor Roth or something that is beneficial in his situation?
I am not an expert!
- Roll into an IRA because you can then buy whatever you want and have no fees.
- Watch out for required minimum distributions.
- You can do annual roth conversions until you fill the low tax brackets. This moves money from taxable to not taxable for cheap. It’s a good way to avoid future large RMDs.
- Look at the goals when balancing. If he’s trying to spend to 0 and can’t go broke the 50/50 makes sense. If he’s trying to pass something along, balance for that person’s timeline.
Finishing up my taxes and I just figured out my HSA is just another investment account to California.
oops.
The HSA thinks they are tax free, they don’t send 1099s or anything. Fortunately there is a way to download a transaction record and run a tool on it to get the numbers. I’m rolling all the previous years into this year because amending previous returns sounds painful and the numbers are relatively small.
Yeah he’s forced to take RMDs now. So far his thought is he wants to avoid spending it, just in case. My parents are living off their social security and her pension (must be nice).
So it seems like the move may be to roll it all over to a Traditional IRA, and then up to the 12% income tax bracket, backdoor it into a Roth each year? That should ~minimize tax burdens. But if he has a Traditional IRA and a Roth IRA, will the combined RMD be higher than the one he has now?
Whoa, how is that possible? There’s not continuity from state to state on HSAs? That’s wild.
California and NY taxes are legitimately nuts.
Unless we’re talking about millions of dollars, why not just stick it in 5 percent interest savings accounts? That’s what I told my mom to do with her money.
Edit Nevermind I”m tired. I missed somehow that its currently in retirement accounts.
I wish lol, we’re talking there’s a high likelihood they end up needing help from us at some point. One of the many things that keeps me up at night, cause I don’t know how we’re going to make it on our own, let alone provide for them too.
Like my parents entire nest egg is in this, and when I asked the other day, my father had no idea what it was in, what the fees were, etc. They send him a statement once a year and if it goes up he’s THRILLED and if it goes down he bitches about it. My parents bought their house in the mid 90’s for $115K and owe $150K on it now, they’re in their mid 70s with 27 years left on the mortgage. It’s all just incredible stuff. My parents, God bless em, great people, but horrible financial sense. The fact that they’re not destitute is a testament to how easy middle class white Boomers in America had it.
Boomers are getting annihilated by the financial services industry and when their kids try to help them they get mad. Won’t stop them from demanding financial help from said kids when they go broke. LOL Boomers always.
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