Check out the wealthfront.com website. Even if you don't use it, it has a ton of great information about portfolio management. https://www.wealthfront.com/proven-methodology https://blog.wealthfront.com/ The used to have a Frequentlt Asked Questions page that was great. Didnt find it on my quick glance, but its probably still there somewhere.
seems like the general consensus is to put into your 401k whatever your employer will match and then max out a roth if you can. i know some folks who just put in 17.5k per year or whatever into their 401k and think they have a bunch of money and i'm like... you do realize that you will have to pay taxes on that shit at some point, right? and half of the time they dont.
Or if you aren't sure, get a Roth. If nothing else, it provides flexibility of choosing between taking a taxable (from 401k) vs. tax-free distribution (from Roth) and minimizing marginal tax rates.
It looks like others have answered your question about "total market index" vs "s&p index." Honestly, though, the difference between s&P and total market historically is pretty small, so you could treat s&p index like a total market index. Or you could add in some small cap and mid-cap indices as well to make it mimic the market more closely. Bogleheads.org is probably a great place to start doing some reading if you want to learn more about investing and have a general understanding.
I'm not one upping, I'm giving you a frame of reference. I'm not doing anything special, I'm invested in company stock, two vanguard funds, US large index and US mid/small index. Every single one of those is +20% or more over the last year. She's killing your money with whatever she's doing
What do you guys do for healthcare? I've been on a high deductible plan with an HSA since my employer started offering it. The general design is that people use the money for medical expenses in close to real time but you can carry over unused balances to future years. However, I feel like the best way to use these plans is to treat them like a Roth IRA for health care and just keep putting money in them and investing it for later years. I pay my actual health care expenses (not covered by insurance) out of pocket instead of touching my balance that keeps growing. I feel like more people should be talking about these (or I'm just missing it).
I'm in awe of what somebody would have done to get 1.93% in the last year. The S&P 500 is up 24.7% in the last year. Anybody that is 30-ish should have at least 30% allocation to that or something like it. Even if you say it is just a 25% allocation, that should be +6.25% return for the account if the rest was in cash. The current rolling 12-months is more advantageous than calendar 2016 but that still would have been 11.95% (assuming you reinvested dividends) in the S&P which is +3% with a 25% allocation.
I just have regular health insurance. I don't really know much about a HSA because I believe my accountant told me I would be better off (or equivalent) maxing out my SEP. I think that after maxing out my SEP and then contributing to my kids 529 plans I don't have too much need for a tax free savings account. If you would expand on how you use it as a tool I would be interested to hear about it.
An HSA is like a turbocharged Roth. If you have access to do one, do it. It's amazing because when you turn retirement age, you can use those moneys for other things.
if you are at most our ages, which is sub-35, you should have enough in a broad variety of stocks that at minimum you'd be at 10% over the last 12 months team this, everyone should max a roth every year either backdoor or regular based on your income after maximizing tax advantaged options(401k or whatever your employer offers). imo people jump way too quickly into taxable accounts when I suspect the vast majority of this board doesn't take advantage of the tools at their disposal. although if you're fully investing in a 401k you'll likely have to backdoor the roth. such as using the HSA as like you said, another tax advantaged plan. read a lot about using the HSA this way
I'm throwing some extra in my HSA in hopes to grow it to the point where the interest would pay my premiums later in life.
Probably put him all in chipotle and under armour lmbo But yeah youd have to try and get lucky to be that bad
First, you have to have a high-deductible plan to use one. In summary -- No tax on the money that goes in and no tax on the money that comes out as long as it is used for "qualified medical expenses." Qualified medical expenses are not hard to come by...doctor visits, eye, dentist, surgeries, prescriptions,even some over-the-counter stuff, etc. The money in the account belongs to you rather than your employer so if you leave your job you keep it. Max annual contribution is $3350. Once you have more than $1k in the account you can invest the excess in mutual funds. That about sums it up. I've been doing it for 5-6 years so it is enough to start caring how the investments are allocated.
You should prob be paying your health care expenses with those funds because that's pre-tax money (or deductible) right? Do you think you will get a return that is greater than your marginal tax rate?
Do you have your son or wife on your plan? It's $6,750 for a family. I got a tax estimate from my accountant last year and was like hell no, fuck that, so I ended up contributing like $3,500 into my HSA since I hadn't maxed to the family amount (and two traditional IRAs as well but we were already into a phase out so it wasn't that much). Turned an $1,800 tax bill into a $1,300 return by moving a little money around.
Where can I get a general list of "qualified medical expenses?" Just started a high deductible HSA plan. I'm only 26, so I don't have a ton of medical expenses right now. Want to use it for everything that I can.
Also, Im surprised at how much is on that list. I have one question though. What happens if I try to use my HSA card for a non-"qualifying medical expense?" Will it get rejected? Or will the IRS be on my ass at the end of the year?
You can use it for whatever you want, but it's on you to properly report that spending to the IRS and pay taxes on it accordingly.
As part of my current healthcare plan, my employer makes a quarterly contribution into my HSA. Which is pretty boss since I'm still young and healthy (~BLeSSeD~).
You get the deduction just by putting it in the account. Since it is no tax in/no tax out, it is more do you expect your capital gains to be a positive number and if so, you're better putting it in a tax deferred account (assuming you can afford to pay the medical expenses out of pocket). No. My wife and son are on her plan (which is not high deductible). I have like $100-200 in annual medical expenses so it works particularly well.
Correct. I max mine out and pay out of pocket for medical expenses. This will pay for my health care after retirement of be no worse off tax wise than 401k.
help me decipher a few things from a recent article on emerging economies: -"South Africa's central bank has also stuck to its inflation mandate in the face of a slowing economy and weaker rand." I'm guessing they are lauding inflation even in the face of a slowing economy because inflation drives up the cost of goods and services which actually helps the overall industry and business of the nation in terms of their bottom line? It might suck for the consumer but its good for business. -"Despite a brutal recession, Brazil's central bank has also concentrated on pulling inflation back towards its goal of 4.5%; the country is getting to grips with the fiscal laxity which is the source of much of its economic misery. With interest rates at 13% there is ample room to ease a monetary policy." Some juggsian research shows me that Brazil's inflation rate in 2016 was around 9%. Our goal rate is 2% in the US. So apparently the cost of goods and what not in Brazil are way high due to inflation which might be good for industry but is bad for the consumer and real wages. So they want to bring that down to help the working class afford the cost of living. And they're saying at 13% interest rate they have room to get the interest rate way down which would bring down inflation rates and help the average consumer.
fuck off. i was reading the economist this has nothing to do with investing for me. i generally enjoy finance and economics and was asking legit questions. i wasn't going to try and invest in emerging markets based off something i found out with those questions.
I think it has to be administered by your employer and in concert with a high-deductible insurance plan. I'm not sure what options somebody that is self employed would have for one.
Self-employed individuals can have them for sure. I'm not sure what route you need to go to open one though.
I'll give it a shot for the sake of discussion. Not my specialty though so others might have better input. Discussion in bold.
I didn't get this tag. The health plan is usually through an employer but the actual account is either set up through your employer or you go set it up at a bank yourself. Just check and see if your bank has that account option or if there's a better option elsewhere. I'm sure most banks have them.
RJF-GUMP Other item to remember, emerging economies, by in large, are emerging because of the population potential of their market. So keep in mind that all those nations are still absolute dumpster fires in terms of poverty, corruption, taxes, infrastructure, labor force, etc...... Just realize they are not truly a free market, they are "developing". Brazil and Russia both have huge corruption challenges and poverty. Then think about your inflation question as it relates to interest rates, then realize you are talking about a relatively small sustained middle class (without a track record) here. So who is really borrowing more money? The rich already have money then a possible 25% of the nation has no collateral because they live below the poverty line. China manipulates their currency which leads to all sorts of interesting questions. India is extremely bureaucratic from getting a business license, paying taxes and people have a hard time even getting electricity and also extreme poverty. That's about 65-70% of the world's population right there. Point is, even domestically some of these questions you could literally read volumes on theory and practice. Same principle with the Japanese example, that's an extremely solid economy as well.
nah dude he reads the economist, he is gonna get the next big thing outta brazil and make everyone else look like chumps
Highly recommend that you read The Boglehead's Guide to Investing based on some of the earlier questions you were asking
brazil is a fucking dumpster fire. know a lot of guys who lost a lot of money in PBR because herp derp emerging markets.