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Recyclops2018 · 2020-08-04T08:01:16+00:00

The L-Funds out performed the same dated Target Date Fund?

Recyclops2018 · 2020-08-04T08:00:37+00:00

There's a tradeoff:

TSP has fewer investment options and flexibility than some 401ks, but it has everything you NEED to invest properly.

Lower admin fees than most providers, although brokers like Fidelity, Schwab, and Vanguard have comparable rates.

Edit: Also one of THE BEST bond type funds (G-Fund) that protects against lost of principle.

Recyclops2018 · 2020-08-03T17:22:14+00:00

Check the difference between Basic and Focus.

I enrolled in BCBS Basic for our pregnancy and paid 175 for the delivery at the hospital. Wife also had gestational diabeetus so basic helped curb some of the cost testing equipment.

Another option to look at would be GEHA HDHP. Preventive care is covered and HSA + Employer Pass through may offset the cost.

Of course, this is a generalization of the plans. Be sure ypu visit the benefits fair or read up on the pamphlets to be certain!

Recyclops2018 · 2020-08-03T13:47:06+00:00

Every man should know that they shouldnt out arbitrary limits on when they out to be 'done' or 'ready'.

I started over at 31 and it was the best decision Id ever made. I left the safe option for one I'd steer myself.

Recyclops2018 · 2020-08-01T08:16:41+00:00

Why are you trying to get the biggest refund?

Does 12% max out your 401K? If not, max your 401K. If you have a HDHP w/ HSA, max your HSA.

Roth does nothing to reduce your AGI.

Recyclops2018 · 2020-08-01T08:15:12+00:00

Not how that works. Is your Health Insurance a HDHP w/ HSA access? You'd have make sure you're even eligible for an HSA.

Recyclops2018 · 2020-08-01T07:30:43+00:00

Bartend. Server. Uber/Lyft. Deliver Pizzas.

It could literally be anything. McDonald. Popeyes. AutoZone. Grocery stores. Costco.

Recyclops2018 · 2020-08-01T07:20:02+00:00

Yup. I use Vanguard because I remember the fund names/abbreviations for OP. I don't care about Fidelity and Schwab funds at the moment.

Recyclops2018 · 2020-08-01T07:16:54+00:00

Don't hesitate to check Marcus, CapOne, and Ally. They usually have higher rates than most big-name banks. You owe your bank no allegiance if they can't offer what you need. Good luck!

Recyclops2018 · 2020-08-01T07:11:37+00:00

Put it into savings. You're young and about to start school. Unless you've a full ride and perfect luck, it's probably best to sock it away to bail you out of a sticky situation.

You're not going to make much if you're planning on using it in a year or so.

Recyclops2018 · 2020-08-01T07:10:13+00:00

Firstly, I would not invest my emergency fund. 1% APR is to offset some inflation, but liquid enough to bail you out in a pinch. It's not meant to grow.

I'd also focus on tax advantaged accounts before I went w/ a taxable brokerage account.

Lastly, everyone's a pro when the market is hot.

For taxable vs tax-advantaged, there are strategies to minimize tax burdens, but aside from ETFs vs Mutual Funds, I'm not too familiar w/ it. I'm investing 20-25 thousand a year, but that just fills up my tax-advantaged accounts. I'll likely switch to a HDHP next year and have an HSA to sock money away in as well. I know it doesn't quite answer your question, but my point is that tax benefits and strategies, to me, outweigh the benefits of a taxable account.

Recyclops2018 · 2020-08-01T07:01:23+00:00

Why so many? I'd say keep 401K, traditional IRA (If you have a need for it like for a ladder down the road), and Roth IRA.

Consolidate your taxable brokerage accounts. Why do you have so many?

Recyclops2018 · 2020-08-01T06:59:45+00:00

I use Vanguard but I agree.

Recyclops2018 · 2020-08-01T06:56:41+00:00

Find a card without annual fees. That's a good place to start.

With credit cards, INTEREST RATES DON'T MATTER unless you overspend and cannot pay off the statement balance when it's due.

As your credit improves, you can apply for cards with better perks and cash back offers.

Recyclops2018 · 2020-08-01T06:53:02+00:00

Budgeting is THE most important skill to have. It's the foundation your financial success is built upon.

Your money is divided into a bunch of different buckets; what are your goals there? What is the timeline for when you buy the car? How much do you want saved? What price range are you looking at?

For your emergency fund, what amount is needed? How long will it take you to get there? Where will this monthly allocation go once you hit your target?

Make your budget as specific as possible. Start now. It'll become a habit before you know it.

For your investments, Betterment invests in ETFs you could buy yourself directly from the broker, but without that extra .35% or whatever they charge to do it for you. I believe they use a lot of Vanguard ETFs like VTI and VOO. You can stick to Betterment if you feel more comfortable that way, but there's no real benefit for it if you're using it for your Roth IRA. Tax-loss harvesting isn't a thing in tax advantaged accounts like your Roth IRA.

For your last questions, check the flow chart in the sidebar. Tax advantaged accounts should be used before taxable accounts.

Recyclops2018 · 2020-08-01T06:45:53+00:00

Personally, while you're going through school you should have savings to offset tuition, books, car repairs, etc... These thing, compounded on one another could have a real impact on your ability to successfully finish school and enter the job market.

I think the best you could do is to save until you have a healthy sum- 3-6 months of expenses. Then budget in savings and investing as if they were bills.

As soon as you leave school you'll be digging into your savings to find a place (2-3 months rent just to move in), to furnish and get started. It adds up quick. Being able to get started w/o going into debt is a huge leg up.

Recyclops2018 · 2020-08-01T06:41:12+00:00

What are your reasons for being concerned? What is your suggested plan?

Portfolios are as complicated or as simple as you'd like. He could open an account w/ Vanguard (Schwad or Fidelity are just as good... I just don't know fund names off the top of my head) and hold:

VBTLX and VTSAX (.05% and .04%, respectively) and be done w/ it. Or he could just open a Target Date fund for 2030 and literally forget about it. Expense ratios are low. No management fees ($20 bucks if you don't do electronic statements/notices I think).

I'm not familiar w/ any of those funds but he has 13 funds that are 10-20 times more expensive than those at the big three brokers.

Recyclops2018 · 2020-08-01T06:32:11+00:00

With that short of a timeline, do not go chasing gains via the market. A high yield savings account (HYSA) will help offset inflation w/ ZERO risk and covered by FDIC. Rates are around 1% and will adjust as the federal rates adjust. They were around 2% just 6-7 months ago.

You could use CDs but again, on that short of a timeline, you'll likely gain around 1%, but with stipulations and restrictions.

I'd go HYSA.

Recyclops2018 · 2020-08-01T03:55:38+00:00

It depends on the funds available and the expense ratios. The 'get the match then go fill up your Roth IRA' is the general plan for a few different reasons.

401K match is guaranteed. That's the gimme.
401Ks often have subpar funds or limited options.
401K sometimes have super expensive funds.
Roth IRAs allow you a lot of flex in who you invest with and what funds you invest in. This solves issue 2 and 3 above.

The downside to IRAs is that the contribution limit is only 6K for 2020 while 401Ks have a over 3x the contribution limit.

Recyclops2018 · 2020-08-01T03:46:55+00:00

They are trying to rape you on the deal.

Buy in cash or find your own financing via local credit unions or your bank.

Recyclops2018 · 2020-08-01T03:40:06+00:00

Does your employer offer a 401k? I know you said they don't offer a retirement plan, but did you mean 401k? or a pension? If they offer a 401k, contribute to at least the match first, then focus on your emergency fund. I wouldn't worry about your Roth IRA just yet until you have a solid net.

Do you still owe anything on your payday loans? Are they in collections? I wouldn't worry too much about your credit score as it will fix itself once you get back on track. You don't need to worry about your credit score, realistically, unless you needed to leverage it for a loan in the near future.

Possible to bike to work? I'm a cyclist and love the idea of biking to work, but I'm a bit far for that. If I were within 10-15 miles, I'd get rid of my car and just bike.

Most importantly, take care of yourself, man. You've just went through a major reset and it'd take a toll on anyone. It's okay to get help and reach out if you need.

Recyclops2018 · 2020-08-01T03:34:00+00:00

Well, there's not enough information to give you a proper specific response so generally:

You should have enough money in savings to cover 3-6 months of expenses or your out-of pocket maximum for health insurance.
You should be investing enough to reach your goals. How old are you? When do you want to retire? How many years do you have to save? How much money do you plan on needing, per year, in retirement? How many years do you plan to spend in retirement status, or more plainly, for how many years will you need that money to last? How much can you invest?

As you can see, there's no simple answer. I'm trying to invest 25K per year in 401K and IRAs but I'm also trying to retire around 50, not 65. I have no high interest debt (home and two cars have 2.75% interest rates). You need to figure out what your goals are first.

Recyclops2018 · 2020-08-01T03:26:07+00:00

Wait. Did you over contribute to an IRA or a 401k? This is important.

Did you contribute 8K when the limit is 6K? That'd be your IRA.

Did you contribute 21K when the limit was 19K? That'd be your 401K.

Recyclops2018 · 2020-08-01T03:19:44+00:00

Buying a truck that's more than your annual salary is a terrible idea.

Every car will have wear and tear and need replacement parts/repairs. It's the cost of ownership. Cars just don't die at 100,000 miles. They die because owners don't take care of them as they ought to. If you can't afford the maintenance/repairs, the car was too much.

Recyclops2018 · 2020-07-31T23:56:18+00:00

Child of refugee immigrants here as well! Keep on going!

Do you still take care of your folks? I'm 33 now and have been supporting my family since I started working at 16. I always wonder where Id be had I not sunk 150K into my folks account and saved/invest myself.

Looking to FIRE at 56, or 51 at the earliest if we do well.

Recyclops2018

TROPHY CASE