New To Investing Thread

[ben ji]

Stumbled accross this article on HSA's.

https://www.onefpa.org/journal/Pages/JAN16-Could-a-Health-Savings-Account-Be-Better-than-an-Employer-Matched-401(k).aspx

Summary of Recommendations
The emergence of HSAs requires reexamining the traditional financial planning advice to first take advantage of the maximum employer-matching contribution to an employee’s 401(k) account. The proper rank-ordering of the annual wealth maximizing order to invest and pay down debts for an employee who is eligible to contribute to an HSA is the following:

First: if the return from the employee’s total tax savings on an HSA contribution is greater than the percentage of the employer’s 401(k) match (see Figure 1 to determine this), contribute the maximum allowed to an HSA.6 If not, reverse the first and second recommendations.

Second: contribute enough to the employee’s 401(k) account to get the maximum employer match.

If t0 < tn, contribute to a Roth 401(k), if available. If not available, contribute to a 401(k).

If t0 > tn, contribute to a (traditional) 401(k).
Third: pay off high-interest-rate debts. Pay off the one with the highest after-tax interest rate first.

Fourth: if paying for postsecondary education, contribute to a 529 higher education savings account (or accounts) if state income tax savings result.

Fifth: contribute to a retirement account (or accounts) unmatched by the employer.

TL:DR Version

[steve dave]

I like that

[HerrSonntag]

So funds contributed to a 401k (non-Roth) and an HSA both go in pre-tax, and can be pulled out after the age of 65 subject to income tax rates, just the same, i don't get why you'd contribute to your HSA versus towards your $18k cap on your 401k?  Both have the same tax implecations, however my 401k has a helluva lot greater returns than my HSA.   Am i missing something?

Also, i just got a raise and i've decided use that raise to start contributing more than my employer match 6% to my 401k to hit the contribution limit of $18k every year.   Thoughts?

[Emo EMAW]

As we (my wife and I) get raises or new jobs the past few years the extra income have just gone into additional 401k contributions or other investments.  We basically maintain our standard of living.  The last thing I want is for there to be money with no allocation and she'll decide we need a bigger house or some other unnecessary thing.

[sys]

biggr house can be an investment.  just evaluate as an investment, not as a place to live.

[Emo EMAW]

biggr house can be an investment.  just evaluate as an investment, not as a place to live.

It does get evaluated as such, but I have more lucrative investment vehicles than my own house.  Also increasing would be taxes, cost to operate, maintain, and remodel. 

[slobber]

HSA goes in pretax and comes out without being taxed.


Royals aren't gonna win 'em all

[wetwillie]

HSA goes in pretax and comes out without being taxed.


Royals aren't gonna win 'em all

Is there a point in time when withdrawals become unrestricted or is it always medical expenses for the life of the account?

[slobber]

Medical.


Royals aren't gonna win 'em all

[slobber]

That includes long term care stuff. I hope to have about $500,000 in HSA when I retire. Will probably only have $200,000. That's a big difference, but it is nice to hope!


Royals aren't gonna win 'em all

[HerrSonntag]

HSA goes in pretax and comes out without being taxed.


Royals aren't gonna win 'em all

Is there a point in time when withdrawals become unrestricted or is it always medical expenses for the life of the account?

Is it true that individuals 65 or older can take out funds from their HSA plan for any reason without a penalty?
If an individual is age 65 or older, regardless of whether the individual has been enrolled in Medicare, there is no penalty to withdraw funds from the HSA. As always, normal income taxes will apply if the distribution is not used for unreimbursed medical expenses (expenses not covered by the medical plan).


http://www.hsacenter.com/how-does-an-hsa-work/frequently-asked-questions/

[The Big Train]

That includes long term care stuff. I hope to have about $500,000 in HSA when I retire. Will probably only have $200,000. That's a big difference, but it is nice to hope!


Royals aren't gonna win 'em all

The difference between 2 million egg and a 80 million egg is so small!

[wetwillie]

Bitcoin is down $33 today and falling fast, get out those pocket books guys

Exchange rate when I posted this was 1 Bitcoin = $408.

Right now it's 1 Bitcoin = $729.   

Hope you sold high. It's at 558 and dropping like a rock.

[The Big Train]

[Fedor]

Get ready for some bargain shopping guys!!!
 

[Emo EMAW]

Get ready for some bargain shopping guys!!!
 

rough ridin' finally.  I was starting to get nervous that we weren't going to get a decent correction in 2016.

[Fedor]

Get ready for some bargain shopping guys!!!
 

rough ridin' finally.  I was starting to get nervous that we weren't going to get a decent correction in 2016.

Kind of underwhelming so far.

[Emo EMAW]

Get ready for some bargain shopping guys!!!
 

rough ridin' finally.  I was starting to get nervous that we weren't going to get a decent correction in 2016.

Kind of underwhelming so far.

I know.  Volume doesn't look great.  If the S&P gets below 2040 it'll drop quite a bit more.  I'm just not sure it will. 

[Emo EMAW]

It's not going to happen.  Volume is too weak.   

[Fedor]

It's not going to happen.  Volume is too weak.   

I guess it is tough to get a panic going when everyone is talking about a huge panic that will happen tomorrow.

[gatoveintisiete]

Now that Trump won, is it possible the market doesn't correct in the near future, I was kinda counting on one.  Experts?

[wetwillie]

I shorted everything because emo said a correction was coming

[Emo EMAW]

Definitely not an expert and I don't have a clue.  Investor sentiment is very bullish, which is supposed to be a contrarian indicator.  I closed out all my weird positions. 

[gatoveintisiete]

Haven't read this thread but I heard there should be an interest rate bubble bursting soon?

[kim carnes]

Get ready for some bargain shopping guys!!!
 

rough ridin' finally.  I was starting to get nervous that we weren't going to get a decent correction in 2016.

Lmao