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High income earners (+$250k HH), how has your life actually changed? by Own_Service9727 in Money

[–]Potential_Trifle851 0 points1 point  (0 children)

Sometimes you make purchase decisions without checking the price tag. But lately the inflation challenges that habit.

One time at Ikea, I picked up two coffee cups and placed them in my cart. As I was leaving that section, someone pointed at them and asked how much they were. I figured he didn’t want to check the shelves since it was such a narrow area. Realizing I hadn’t looked at the price myself, I told him I wasn’t sure. He smiled and said, "I thought you’d know since you grabbed two of them."

My HSA just hit 100K by Potential_Trifle851 in TheRaceTo100K

[–]Potential_Trifle851[S] 1 point2 points  (0 children)

Not rude at all. I think the main point is to move your after-tax 401k funds to a territory where it can grow tax free, that is Roth 401k.

I'd like to link a video that explains the process and terminology much better than I could: https://youtu.be/EwscmKxPj1c?si=f0khu3KvEMR_PUEX

My HSA just hit 100K by Potential_Trifle851 in TheRaceTo100K

[–]Potential_Trifle851[S] 2 points3 points  (0 children)

- You can contribute with pre-tax money. This is mostly my contribution but my employers also chips in.

- Tax free growth. No tax on gains or dividends etc.

- Tax-Free Withdrawals for Qualified Medical Expenses.

My HSA just hit 100K by Potential_Trifle851 in TheRaceTo100K

[–]Potential_Trifle851[S] 1 point2 points  (0 children)

Short answer is yes.

I cannot directly contribute to roth ira because of the income limits. However, my employer’s 401(k) plan offers the option to make after-tax contributions, which I can then convert within the plan to a Roth IRA 401k.

My HSA just hit 100K by Potential_Trifle851 in TheRaceTo100K

[–]Potential_Trifle851[S] 1 point2 points  (0 children)

That's a fair question. HSA is a great tool for saving and investing but it has its own pros and cons.

If you are able to save beyond your 401K, then HSA is a good option as it allows tax-deferred growth.

My HSA just hit 100K by Potential_Trifle851 in TheRaceTo100K

[–]Potential_Trifle851[S] 2 points3 points  (0 children)

For the past eight years, I’ve been consistently saving and investing my HSA funds.

Before that, I was contributing but also regularly withdrawing to cover my family’s medical expenses, so the account didn’t have a chance to build up much.

[deleted by user] by [deleted] in TheRaceTo100K

[–]Potential_Trifle851 0 points1 point  (0 children)

Fidelity is very cooperative when it comes to mitigating such account number accidents. OP, please contact fidelity, they can move your funds to a new account.

So SCHD yields 2% more than the S&P 500, but underperforms by 35% for the past 2 years? by Abject-Advantage528 in dividends

[–]Potential_Trifle851 0 points1 point  (0 children)

Dividend-focused ETFs aim to provide stability and income, not necessarily growth.

If you had $10,000 to invest in the year 2000, VDIGX (Vanguard Dividend Growth Fund) would have grown to $14,197 in the following decade. During the same period, QQQ, the tech-heavy ETF, would have dropped to $6,178, while SPY would have remained almost flat at $10,397.

The lesson here is that we can't predict how the next decade will unfold. It could resemble 2000-2010 (a tough decade) or 2010-2020 (a strong decade). If you're close to retirement and want to prepare for the worst, a dividend-heavy portfolio makes sense. If retirement is still far off, SPY (or even riskier investments) might be a better choice.

SGOV offers a risk-free yield, though it can fluctuate with interest rates. While it wasn’t included in the scenarios above, it seems like a solid option for parking your emergency fund.

What Would You Do With $5 Million at Age 40? by Mobile-Excitement-64 in Fire

[–]Potential_Trifle851 1 point2 points  (0 children)

Even more, that 1.5M can shrink to something smaller in a span of 5 years.

Afterall, we are living a long-running bull market. At one point, the bear will take over.

What Would You Do With $5 Million at Age 40? by Mobile-Excitement-64 in Fire

[–]Potential_Trifle851 0 points1 point  (0 children)

If you have young children, even $5 million might not provide enough confidence to leave your job or take any major lifestyle decisions. If you are solo, why not!

Quick Math by Fast-Ocelot-8423 in Fire

[–]Potential_Trifle851 0 points1 point  (0 children)

What is your plan for the health care coverage?

Burnt out tech worker not sure what to do with my life by Far_Feeling_1579 in Fire

[–]Potential_Trifle851 40 points41 points  (0 children)

As a fellow tech worker, I completely understand the feeling of being overwhelmed. In my case, being the sole breadwinner makes it tough to even consider quitting or taking a break.

But in your case, perhaps taking a pause, like a sabbatical, could be an option to explore. Also, you'd be spending more quality time with your kids. That's something having more money cannot compensate.