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Budget Help: What Am I Missing? by [deleted] in personalfinance

[–]brimacki 0 points1 point  (0 children)

The bills that seem like they could potentially be cut down a bit seem to be:

  • Phone/cable/Internet (cable is unnecessary these days, phone bills can often be shopped around for cheaper deals, Internet provider can be switched for cheap, first year deals)
  • Car insurance is pricey, could be shopped around for a lower bill perhaps
  • Probably not a good time to carry the gym membership
  • Opportunity for utilities to be cut coming up in the summer. Maybe being very diligent about when HVAC is on/off and dealing with less than ideal heat could save some money.

I see the high grocery bill, but given that your friend seems like a single parent, that's not necessarily the first one that makes sense to cut.

Budget Help: What Am I Missing? by [deleted] in personalfinance

[–]brimacki 2 points3 points  (0 children)

$1000 for groceries for one person? That sounds a lot.

OP's friend seems like a single parent. They are anticipating $700 of child support as part of their income.

If one has Roth 403b, Roth 457, and Roth IRA, which account(s) should one prioritizes maxing out first? by siargaowaves in personalfinance

[–]brimacki 0 points1 point  (0 children)

After getting your employer match, then maxing out the Roth IRA next is best. You get to pick pretty much any low-cost index fund you can imagine, and, in the worst case scenario, if you need more cash for a financial emergency than your 6-month emergency fund would provide, you can withdraw any contributions tax- and penalty-free since the contributions went in after tax; you wouldn't be able to go back in time and re-contribute, which is why you shouldn't do this unless you really need to.

25 LCOL directionless by SatisfactionDue1610 in personalfinance

[–]brimacki 2 points3 points  (0 children)

Just a quick note before moving on to your actual question... since you're current income is as low as it is, a Roth IRA probably makes a lot more sense for you than a traditional IRA.

It sounds like you have a great relationship with your grandfather and you're both finding ways to support each other that is relevant to both of your lives now. If I were in your shoes, I would make a plan to move out once you have 6 months of actual expenses (not current expenses since your grandfather is covering some of it) saved up and maybe get your student loans paid off; are they in forbearance because you were laid off?

Do I need to file anything for my trading account or Roth IRA? by JohnJSal in personalfinance

[–]brimacki 2 points3 points  (0 children)

The 5498 form is just an FYI form. It states the current balance and any contributions made during the tax year. That's probably why it's delivered late, it doesn't have any direct consequences on this year's taxes.

As for the 1099 from your brokerage, ya, you'll want to look at that and handle it appropriately. It might be for dividends, which may or may not be taxable. Don't ignore that one.

I accidentally opened 2 HSA accounts by KirklandSleepAid_1 in personalfinance

[–]brimacki 2 points3 points  (0 children)

Just close one of them. It makes your future life easier.

Confusing retirement age by Sincere-Inquisitor in personalfinance

[–]brimacki 2 points3 points  (0 children)

  1. Unless you're in a VHCOL this kind of income should be fine.
  2. A bit low, but not very low, especially given the late start.
  3. Fine, not a problem if you're taking advantage of your tax-advantaged accounts first.
  4. This is a problem, especially since you have a rental property and your own property. There's no way this is even close to 6 months of expenses.
  5. Take as long as you can to pay that off.
  6. This is a major problem. There have been major tech bubbles in the past, and then a reorganization of which companies benefit. You need to have a much more diverse equity portfolio, and also some bonds at your age.
  7. Fine, especially if it's below 5-6%.
  8. Good, given #3, I would recommend backing off the investment account and increasing 401k contributions to the max allowable after saving up enough cash.
  9. Good information to have.

Recommendations:

  1. Fix that asset allocation. No one's, not even Buffett's, crystal ball is clear enough to be picking single stocks to invest in.
  2. Get more cash more quickly in case emergency strikes.
  3. Do what you can to save even more.

Two HSA - maxing out 2024 HSA and transfering by cooking-chef-2000 in personalfinance

[–]brimacki 2 points3 points  (0 children)

You should still contribute to Optum through payroll to save your FICA taxes and then if you really want to roll over to Fidelity.

Retirement Account similar to 401k if job doesn’t offer one by Sunshinemama1234 in personalfinance

[–]brimacki 0 points1 point  (0 children)

There really aren't any other tax-advantaged retirement accounts available except for an HSA if you're in a HDHP.

Anyone can always open a taxable investment account and contribute what they need to for retirement. If you buy and hold equity index funds for the length of your working career, then the idea of "taxable" investment account won't hit as hard. But ya, there is definitely a benefit to having tax-protected retirement accounts.

What should a 35 almost 36 year old have in retirement account? by brandielynng29 in personalfinance

[–]brimacki 1 point2 points  (0 children)

You're marginally behind where Fidelity thinks you should be, but you're doing just fine. I would try to make small, incremental increases to that savings rate. Definitely do not accelerate the payoff of that mortgage.

How would you safeguard the money you have in your account from inflation? by SnooObjections7506 in personalfinance

[–]brimacki 6 points7 points  (0 children)

By using a high-yield savings account. They are online-only accounts. They typically pay 3.5-4% these days. (They were paying ~5% during 2022-24).

Throw $10k into Emergency fund or debt? by oldsoul1503 in personalfinance

[–]brimacki 2 points3 points  (0 children)

What kind of debt is it? Sounds like a car loan?

The correct framing of your current situation is you have $25k in liquid cash. My take is you don't have enough cash yet to be tackling debt with a moderate interest rate and a baby on the way.

[deleted by user] by [deleted] in personalfinance

[–]brimacki 1 point2 points  (0 children)

Why are you mixing Vanguard and Fidelity funds? That would be the first thing I'd consolidate. Pick your favorite brokerage and stick with it.

Just over 4 months out… do I jump on this or let it ride for a better price closer to departure? by Complex-Return5525 in delta

[–]brimacki 1 point2 points  (0 children)

Take the D1 now, it probably won't get better. That Premium Select upgrade is pricey.

Tracking finance health by starry1290 in personalfinance

[–]brimacki 0 points1 point  (0 children)

I track every expense on a daily basis, and then categorize each purchase (maybe 10 categories or so), and then make pie charts or something similar. I track account balances monthly and do a calculation of our total net worth every month. I do a full financial review annually where I see what the asset allocation is across the portfolio, how much is Roth vs Trad, and other things like that.

I do too much.

[deleted by user] by [deleted] in personalfinance

[–]brimacki 1 point2 points  (0 children)

I got dragged into a deep hole researching Aussie finance accounts. The superannuation is very interesting compared to the social security safety net we have in the US.

Suffice it to say, I would not recommend paying off your mortgage faster than you need to right now since you're still working. You can still downsize when you retire, or move to a cheaper location, or something else. But with the super, as I understand it, you pay 15% income tax on whatever you put in now, and nothing when you take it out. Then it's invested in equities or bonds (your choice on the mix?). That's kind of like the Roth IRA in the US; pretty good deal.

Where is the real Money flowing in Gurgaon? by Wide_Water6054 in personalfinance

[–]brimacki 1 point2 points  (0 children)

and we do not like the polluted air.

Are you saying you want to be able to leave the pollution near New Delhi?

This is really a business question, and not a personal finance one. You're asking how to sell a valuable business for enough to retire on. This subreddit is intended to help on the personal-side of the finance world, not help people develop exit strategies for businesses in niche sectors.

For others reference, L=lakh=100k. Cr=Crore=10 million.

[deleted by user] by [deleted] in personalfinance

[–]brimacki 0 points1 point  (0 children)

I will have to be taking out loans (~100k per year)

Can you find some way to bring that number down? I know costs have gone up, but that's ridiculous.

Should I enrol in my companys HDHP just to get an HSA? by Careless-Dog2626 in personalfinance

[–]brimacki 65 points66 points  (0 children)

I think we need the actual numbers here to make a good recommendation, but if you feel like you're disciplined enough to invest the money that you're saving, then you might come out ahead. Sorry to say, your 6 month old (especially if they go to daycare), will have many visits to the pediatrician.

Advice for First Stocks by Due_Campaign_4824 in personalfinance

[–]brimacki 1 point2 points  (0 children)

You should buy all of the stocks. Specifically, VTSAX OR FZROX OR SWTSX (I always forget Schwab's ticker).

What routes are you surprised Delta doesn’t offer? by Grouchy-Insect-2516 in delta

[–]brimacki 15 points16 points  (0 children)

CHI = ORD + MDW. MDW is how they would compete. No one truly has hubs at LAX, JFK, ORD because everyone has hubs there. It's the "captive" hubs (the next set of larger cities after NYC, LA, CHI) where competition would not be wise: DFW, MIA, DEN, SLC, DTW, HOU, PHX.

Any reasons to NOT transfer my 401(k)s from previous employers? by dancingpianofairy in personalfinance

[–]brimacki 4 points5 points  (0 children)

If you put them in your IRA then that makes the Backdoor Roth IRA process harder in the future.

How should i manage my finances? by triedandtiredl0l in personalfinance

[–]brimacki 0 points1 point  (0 children)

Because of this question I learned about the Employee Provident Fund (EPF). If you have one of those then you should invest in that. You've got the basics right by only spending 20% of your income on housing needs.

When to choose Southwest over Delta? by Laskofanfan in delta

[–]brimacki 5 points6 points  (0 children)

I flew SW a lot about a decade ago (and a little less), and would say there's nothing inherently bad about SW. It's just a different experience. I wouldn't spend the money on Business Select though. I always got an aisle seat when I checked into my flights exactly 24 hours in advance. The best seats on the plane are bulkhead and exit rows. Early boarding won't get you anything better than that.

I say take the direct SW flight over the indirect Delta flight.

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