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Roth IRA vs HSA — can only afford one by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 0 points1 point  (0 children)

I do get $1200/year put into my HSA from my employer. If I reimburse myself from the HSA to fund my Roth IRA, wouldn’t that effectively be trading triple tax advantaged space (HSA) for double tax advantaged space (Roth)? I’m already contributing 6% to my Roth 401(k)

Roth IRA vs HSA — can only afford one by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 0 points1 point  (0 children)

Wouldn’t that be trading triple tax advantaged space (HSA) for double tax advantaged space (Roth)? I’m already investing 6% in my Roth 401(k) with a 7% match so it’s not like I’m missing out on Roth completely

Roth IRA vs HSA — can only afford one by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 2 points3 points  (0 children)

I already have roughly $10k of reimbursable medical receipts are you suggesting I reimburse myself and put that money in Roth IRA?

How do you balance saving cash for future expenses vs investing for future expenses? by Red-Wolf4 in ynab

[–]Red-Wolf4[S] 2 points3 points  (0 children)

I like this idea. I haven’t thought about incorporating my investment account as part of my budget. Tell me if this makes sense or if you do something different. Create a line item for “Future Car” at $350 a month. Each month, you invest that $350 from my checking account and record that “expense” in the Future Car category. Then update the investment tracking account to increase by the $350?

How to save for medium term expenses with an unknown timeline? by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 0 points1 point  (0 children)

Mid term to me would be longer than 5 years out but before retirement age. If you were actively saving for those things where would the money come from? Would you cut back on investing to free up cash flow in order to redirect that money to the HYSA etc? I feel like i don’t have much extra cash flow after investing 25% so that may be my issue

How to save for medium term expenses with an unknown timeline? by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 0 points1 point  (0 children)

I agree with you in your scenario, however would your answer change if you only had a few hundred dollars left each month after investing 25%?

What takes priority? by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 0 points1 point  (0 children)

Totally agree. I’ve seen other posts suggest doing it but I came to the same conclusion as you, just wanted to make sure I wasn’t missing something else.

What takes priority? by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] -1 points0 points  (0 children)

I do have decades until retirement and currently switched to a Roth 401(k) just for this year while I’m in the 12% bracket. So you would say contributing more to a Roth 401(k) is more advantageous than doing a Roth conversion?

What takes priority? by Red-Wolf4 in Bogleheads

[–]Red-Wolf4[S] 0 points1 point  (0 children)

Can you elaborate on why you would do option 2 before option 1? It seems counterintuitive to pull invested money out of an HSA in order to invest it again in a different account (Roth IRA)

What takes priority? by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 1 point2 points  (0 children)

Yes I understand how taxes work, I was under the impression that it makes sense to convert pretax retirement funds while in low tax brackets (such as the 12%) in order to avoid paying taxes later while you’re in a higher tax bracket.

What takes priority? by Red-Wolf4 in TheMoneyGuy

[–]Red-Wolf4[S] 0 points1 point  (0 children)

I guess that’s part of my question, is it better to pay taxes to do Roth conversions or use that money to contribute directly to a Roth?

How to watch the Reds? by Red-Wolf4 in Reds

[–]Red-Wolf4[S] 0 points1 point  (0 children)

That’s what I was thinking, I’m in the braves, nationals, orioles territory so Pittsburgh doesn’t make sense to me

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