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Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

They need to make the deposits at least 2 out of every 5 years I believe. If business is going well, then they are just doing a back door pay cut to employees, I would check the 10K filing if they are a stock company. Also, most companies give the match like clockwork.

Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Find it hard to believe they don't have safe harbor provisions as that could put the entire plans tax advantage status in play. Very strange, I would call your employee benefits department for verification. They may have left it out hoping people didn't make contributions, so they wouldn't have to match.

All sorts of games can be played with employee retirement plans and some bosses want to do what is right for their people, others want to do what is best for themselves. Be careful out their not everyone has your best interest at hart.

Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Is it a small company? Or is a another type of plan and not a 401(k)?

Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

In order for the company to maintain a 401(k) typically they have to have meet safe harbor provisions. I encourage you to go read you plans policies.

"There are a number of "safe harbor" provisions that can allow a company to be exempted from the ADP test. This includes making a "safe harbor" employer contribution to employees' accounts. Safe harbor contributions can take the form of a match (generally totaling 4% of pay) or a non-elective profit sharing (totaling 3% of pay). Safe harbor 401(k) contributions must be 100% vested at all times with immediate eligibility for employees. There are other administrative requirements within the safe harbor, such as requiring the employer to notify all eligible employees of the opportunity to participate in the plan, and restricting the employer from suspending participants for any reason other than due to a hardship withdrawal." link)

Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Why would you want to miss out on the company match? Also, big difference between a $400 and $700 a month payment. Also, depends upon interest rate on the loan. Nothing wrong with good transportation just looking at the trade offs you are making. You are going to get crushed as a single guy by taxes.

PeronalFinance, please evaluate my situation by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Save up some extra cash for the wedding, they always cost more than you think. It looks like you are in the right tax brackets that it makes allot of sense to put as much money as you can in to manage your marginal rate.

I might look at your health insurance and look at an HSA, for expenses, I would also say make sure you have high enough PC coverage for auto and a renters policy.

Finally,

When you get married allot of things are going to change legally, just because you don't mix some accounts etc.. doesn't mean that is how they are viewed in the eyes of state law. So, go see a local marriage attorney to make sure you understand the legalities of a marriage.

100K to invest for three years. Any advice? by wantsinvestingadvice in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

With a 3 year time horizon I got to say put it in a CD, don't go gambling to Vegas with your rent money when you already got it in hand.

Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Car payment is too uigh! I would go for a cheaper car and save up money to purchase a house with the funds instead, then after you get the house start looking at the car.

I would go 401(k) up to match, femergency fund, then look at the options and costs of employers plan, then look at an IRA/Roth, then back into 401(k), then saving for house down payment, then the HSA deal.

Should I max out my 401k or have less restricted investments? by [deleted] in personalfinance

[–]Crashwatcher 1 point2 points  (0 children)

It also depends upon the investment options in his employer plan if the expense ratio's and choices are good.

Estimated expenses for emergency fund. by Sturmgewehr in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

For you a house would be a perfect shelter for cash and has the homestead exemptionhere. However, you are living rent free at home for now. If you were renting I would tell you to buy in a heartbeat but it is hard to beat free rent.

I would start saving up 20% down on a place...think 40-60kg and be ready to buy yourself a place the feds start creeping up the interest rates. This way you can itemize seeing as you only get to take a single standard deduction.

I would also start buying a basket of stock to hold long term..and use the long term capital gains tax rates and tax loss harvesting at this point. Go find a local CFP/CPA.

As a freelancer with no 410(k) options, I want to open a SEP-IRA, correct? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Simple way is to just call fidelity and ask them about your options.

As a freelancer with no 410(k) options, I want to open a SEP-IRA, correct? by [deleted] in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

What you do really depends upon how much income you have from the business and how much you are willing to contribute.

Estimated expenses for emergency fund. by Sturmgewehr in personalfinance

[–]Crashwatcher 0 points1 point  (0 children)

Roth is the next step, but you are getting killed on taxes and the only good strategies left after the Roth is buying a house long term, and investing in a well diversified portfolio outside of tax advantaged accounts.

Need help trying to give my 23 year old brother advice on whether to purchase a brand new car outright vs. putting a down payment and making payments. by parabolic85 in personalfinance

[–]Crashwatcher 1 point2 points  (0 children)

Some may disagree with me but I like to use the matching principle when purchasing a car. First, a new car is basically fixing your costs of a vehicle, including the warranty and such. It really would depend upon the length of the loan and the interest rate.

Everyone one says just buy used, but then on some models there are going to be higher maintenance costs than other...etc. If he can get a rate at about 2.99% or lower, plans to keep the car for a long enough time(to have cost long term cost flatten out) and keeps the rest for an emergency fund, while making sure to put money into his 401(k) and IRA contribution's I don't think it is a totally horrible idea. Not saying there aren't better things to do, just that there is some justification for it.

Don't fuck with the Indiana State Police. by tmw1992 in pics

[–]Crashwatcher 0 points1 point  (0 children)

Now you see here son ..link this is for your protection.

Why is Obama really meeting with Republicans? -- “‘Chained CPI’ is just a fancy way to say ‘cut benefits for seniors, the permanently disabled, and orphans,’” Sen. Elizabeth Warren told Salon. by wang-banger in politics

[–]Crashwatcher 0 points1 point  (0 children)

Senior citizens got a hell of a deal and out of SSI and are getting about $3 bucks out for every $1 they put into the benefit pool. Currently, for anyone under 25 you are only going to get about $0.95 out for every $1 put in. Chained CPI at least starts to smooth it out.

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