I don't think there is a right answer. Just keep some kind of documentation that you can use to give the IRS a roadmap of why/how funds were moved. Receipt and contemporaneous notes should work. If your HSA/Payflex account offers an online mechanism to save/upload pics/receipts, you could certainly use that. I'm a tax lawyer, and I don't even keep sophisticated records in this area. Just a manila envelope filled with my receipts and a handwritten ledger of reimbursements Even with all the enforcement money being pumped into the agency, I don't think the IRS is going to be pushing any resources into looking at whether a few HSA charges or reimbursements were proper. There's going need to be other significant flagged issues for them to even start an examination.
That's whatever your company selected. I have Fidelity and the highest we have is 0.38, which is the target date funds. Otherwise I have 0.07 and 0.01 funds.
Is this a long term play or no? Admittedly haven’t looked at this at all yet, but always interested in what other people are seeing.
Ty Webb BWC - not sure if you’ve seen anything on $MMTLP since the fuckery, but I got this today from sofi Spoiler
Thanks for sharing. Haven’t received anything from TD yet. Everything makes sense though. We now own private company that isn’t traded. Going to get some old school stock certs.
dunno where else to put this but helping my parents with wills and estate planning, also going to do my own as i'm lazy and haven't done it yet Quickens willmaker seems great for basically 95% of people.
In the spirit of attempting to understand both sides of this debate, what’s the counter argument to this data point specifically, if there is one? How does team transitory respond to this?
oh it has nothing to do with transitory or not, it was related to a comment I made a while back regarding pricing of the SP500 and how it’s basically been a “price” side of the P/E equation so far. My post was more to try and help people understand why markets are valued roughly where they are today and what drives that.
What am I misunderstanding then, bc the twitter comments seem to imply impending doom in contrast to those who believe we’ll avoid a recession/soft landing?
Sorry I was in Vegas over the weekend, so lets see how I do framing this question. The crux of this debate was centered around how long you believe the word "transitory" is supposed to last. I don't disagree that inflation is transitory, what I did disagree with was that inflation would only last a few more months and why inflation was rising in the first place. We started discussing inflation being transitory in here June of 2021 with inflation that month coming in at 5.4%. Most of the folks proclaiming transitory at the time were very firm in their beliefs that it was all just from past supply chain bottlenecks from shutdowns and that the 5.4% number would be close to the top. But it wasn't, which led to Powell abandoning the word transitory in November of 2021. Why I agree that inflation is transitory for two reasons: 1. Mathematically in the way inflation is compared it is transitory in nature, for example in the second half of 2023 it will be extremely hard to have higher headline CPI numbers than the 2022 multiple month stretch of 8-9% inflation. 2. Central bank reaction function. Whenever you have bouts of inflation this high, they go into restrictive policy in an effort to bring inflation down. Transitory was a policy error, it was an incorrect belief on how long inflation would last and that 5 trillion in fiscal stimulus, not supply chain bottlenecks, was what was driving that inflation. Ultimately those two incorrect beliefs led to a central bank reaction function that was delayed and with already high inflation left itself exposed to external shocks, ie war in ukraine, to drive inflation to even higher levels. This results in a panicked reaction of a central bank that raises rates at one of the fastest paces in US history. So yes, inflation is coming down and will pretty precipitously this year because of the two points (1., 2.) I mentioned above. The question for 2023/2024 is what will the be the result of going from 0% to 5% interest rates in a short time do to an economy that has been very strong. Unprofitable tech stocks are the quickest to rerate, housing has followed that coming to a halt (KB homes with a 68% cancellation rate last quarter), but the rest of the economy takes longer to digest rate increases (12-18 months). No one knows the answer yet to that question, I have a belief but it remains to be seen if that is the right one.
There's basically no argument anymore that inflation wasn't transitory the fed made a mistake pr wise because people wrongly assumed it would be like two months and didn't know what it meant. Similar to the recession nonsense a few months ago
In my understanding: transitory = temporary supply constraints structural = oversupply of money resulting in artificial demand > productive capacity
Way I think about it is you can have temporary supply constraints and I believe a temporary oversupply of money as well. Structural to me has less to do with money and more to do with things like age demographics (lots of young families moving into their first homes buying appliances, goods, etc), a reversing of off shoring manufacturing and on-shoring production for higher labor costs, tech will always be deflationary, and high energy costs due to things like a lack of capital expenditure. All those structural things are in essence "transitory" but they can last for a decade. The long term global trend is disinflation but you can have moments in time 5 years, a decade, whatever where you get inflationary pockets.
I usually have CNBC on in the background but gotta say this whole Davos week is so disgusting I said fuck it and flipped to Bloomberg. It’s boring but I don’t feel as gross so I think I’ll stick with it moving forward.
My experience has been companies with strong balance sheets post COVID. It’s been the ultimate phase of talking people into spending less money by the Fed.
Question please regarding excess Roth IRA contributions: -I got married in 2022. We're going to be married filing separately for 2022. I just learned that this puts me over the income limit to be able to contribute to a Roth IRA. Apparently that max is only 10k in this situation. Had no idea. -I contributed my max of 6k. So my total excess contribution is 6k. -I need to remove my excess of 6k, which is simple enough. -The tricky part for me is I'm actually down on what that 6k is invested in right now. Obviously I don't want to sell at a loss to be able to withdraw. But I think I have to. -I'm reading that if I've taken a loss on my excess contribution, I might be able to subtract said loss from the amount I have to withdraw. Anyone have any experience with this?
If you don't have a traditional IRA, read these: https://www.bogleheads.org/forum/viewtopic.php?t=366215 https://www.bogleheads.org/forum/viewtopic.php?t=374189
If I go this route, I still have to sell whatever I'm invested in though, correct? In other words to to the conversion it has to be in available cash, not tied up in any investment?
I think I've posted this before, but we recently got a pretty significant pay bump so I wanted to ask again. my wife is a teacher and will retire at 55 with her teacher's pension. My stretch goal is to have the option to retire with her at that time. My 401K is on track to have plenty by the time I'm 65, but I need to fund the gap between 55 and when I can withdraw penalty free. That's 20 years from now. How would y'all prioritize investing? Does the traditional advice still hold even though I'm trying to fund that gap prior to penalty-free withdrawals? Basic stats below: Spoiler -Home is locked in at 3%, we aren't moving -215K base HHI, my target bonus is 20% but we don't always get one - currently contribute 11% to my 401K and get 7% match. I believe 13% would max me out - we have one small rental house with a modest cash flow - I contribute about 1k per year to HSA but never use it -kids private school is our largest expense, we've got that for 8 more years on oldest and 11 more on youngest. -currently have about 2200 a month "extra" to invest however makes sense. I do index funds, traditional savings and also play around with some alternative investments with maybe 5%-10% of it. I had always planned on doing rental properties and trying to build that to the point of sustaining me at 55, and I still plan to pursue that, but don't want to miss other, easier pathways.
It sounds like you should be able to retire well before 55, and you’re doing everything just fine based on what you laid out above. What’s the non 401k nest egg looking like?
Not great. Wife's is all through her pension, but beyond that we've got the rental house, about $15k in cash savings, maybe $10k in an online brokerage, and maybe another $10k in stuff like crypto, P2P lending, bourbon, etc.
I'd prob toss some cash into a money market fund every month while rates are at 4%. SWVXX at Schwab is currently paying out 4.27%. Enough where it'll add up but you won't really miss it idk. Segregate it in your head but have access to it if you have an emergency.
You can take money out of your 401k if you retire early without a 10% penalty. Look up "substantially equal periodic payments" and how to apply it to a 401k.
Look up Roth conversion ladders. Popular in the FIRE community. I would max out tax advantaged before taxable.
I have had a SoFi account for a couple years now and I rarely mess with it. Have some small money going in stuff like QQQ and VTI but I am thinking of investing a larger sum of roughly $10,000. I probably should speak to an investor but also for some odd reason trust people on here. Any recs on what to invest in? This is basically free money, vacation money, etc.
I feel like these hikes are more about sending a message than anything a 25bp increase truly impacts. They just don’t want to signal any easing will happen soon.