HSA before IRA. Put it into the investment account option and don't spend it on your annual healthcare expenses - pay out of pocket.It did include a "market re-adjustment" as well. Whatever that means.
Just gets me closer to my goal of maxing out yearly 401K, HSA, and IRA contributions. And not living above my in-laws garage.
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- Thread starter Pesqueeb
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If him paying out of pocket causes him to reduce his taxable account investment or otherwise compromise other goals I don't get how it's not just shifting money from one hand to the other.
Missing out on that sweet, sweet housing appreciation by continued tenancy above his parents' garage is probably much more of a loss.
Missing out on that sweet, sweet housing appreciation by continued tenancy above his parents' garage is probably much more of a loss.
That's the plan next year. This year we will be on the hook for a decent amount to cover The Child's birth. After that though, I'll keep the yearly deductible in my HSA cash account and invest the rest.
I admit it. It's a posh, high falutin lifestyle I lead.If him paying out of pocket causes him to reduce his taxable account investment or otherwise compromise other goals I don't get how it's not just shifting money from one hand to the other.
Missing out on that sweet, sweet housing appreciation by continued tenancy above his parents' garage is probably much more of a loss.
Triple tax benefit.If him paying out of pocket causes him to reduce his taxable account investment or otherwise compromise other goals I don't get how it's not just shifting money from one hand to the other.
Missing out on that sweet, sweet housing appreciation by continued tenancy above his parents' garage is probably much more of a loss.
1. Defers taxable income
2. Money grows tax deferred
3. When used for healthcare expenses, it is not taxed. If used for regular expenses after 65, it is not penalized, just normal income taxes.
Number 3 is not an option in an IRA. If you are properly funding your employer plan, you will have access to funds there until 65. So issues with limited access (for normal spending) without penalties before then. Because you can use it for healthcare related expenses with no tax implications, if you retire pre-65, you can use it to bridge the Medicare gap (Medicare is available at 65). If you don't need it for healthcare expenses, after the age of 65 it's no different than a Traditional IRA.
Your order for saving should be employer plan (to match), HSA max, employer plan max, IRA max. All from the tax beneficial side, of course. If you make too much or plan on retiring earlier, skip the IRA and setup an after-tax (not Roth because too much income, unless you are planning a backdoor Roth, but that's a next level strategy) account with the plan for it to be a retirement account. Your realistic goal should be 25% of income; 30% would allow for retiring pre-62 for most people (assuming <45 when started saving).
Only once you've hit that 25% should you be focusing on 529 plans for kids. You can take out loans for school; you can't take out loans for retirement. Get yourself situated first, then take care of the kids. The number of people I talk to who aren't able to retire until 70, but whose kids will be able to go to school at no cost is way too high.
I get all that. My point:
1) If he's not maxing out all tax deferred spaces already then it's just trading one tax deferred investment account for another.
2) If he is maxing out all tax deferred spaces at baseline then he's trading extra investment in his HSA for extra investment in his taxable account.
3) Furthermore, investment options in many HSAs are limited. (Thankfully mine started a Betterment option recently. It was a pretty poor fund choice before.)
Given this I see minimal marginal benefits to the strategy.
1) If he's not maxing out all tax deferred spaces already then it's just trading one tax deferred investment account for another.
2) If he is maxing out all tax deferred spaces at baseline then he's trading extra investment in his HSA for extra investment in his taxable account.
3) Furthermore, investment options in many HSAs are limited. (Thankfully mine started a Betterment option recently. It was a pretty poor fund choice before.)
Given this I see minimal marginal benefits to the strategy.
Again, the tax benefit is the key factor here. If healthcare makes up 15% of your expenses in retirement (not outlandish), you get all of the benefits of saving in an IRA and avoiding the taxes. Plus there is no income limit for contributions, unlike with an IRA. An SP500 fund is available in every HSA.
a. I get fucked on taxes
b. I need to get my shingles vax next
b. I need to get my shingles vax next
Hey timing is important. This surgery I just had happened to fall on my last day of coverage from my old job. Literally the last day. I'm still paranoid about getting a call saying there's problems with the billing.
And start bitching about second home prices. Have you seen what mountain houses are going for these days?
Poor puppy... having experienced shingles, I can report that it is less than fun.
That's why I got the vax. FTS.
3 sticks with Pfizer. total side effects for Me. Stick one right shoulder sore for a day. stick 2 left should no effects. stick 3 sore left shoulder 1 day
One of my neighbors has been effed up for a few years now with nerve pain after a bout of shingles. Eff that.
Why isn’t there a bike tech thread on here? Anyway. YT have released new versions of the Capra and Jeffsy with the Rockshox ‘Flight attendant’ tech, which is their wireless automagic/dynamic shock tuning thinger. Kinda cool, I think, if it works…
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Wonder if they released new exploded diagrams to go along with it.Why isn’t there a bike tech thread on here? Anyway. YT have released new versions of the Capra and Jeffsy with the Rockshox ‘Flight attendant’ tech, which is their wireless automagic/dynamic shock tuning thinger. Kinda cool, I think, if it works…
It's called the dh forum.Why isn’t there a bike tech thread on here? Anyway. YT have released new versions of the Capra and Jeffsy with the Rockshox ‘Flight attendant’ tech, which is their wireless automagic/dynamic shock tuning thinger. Kinda cool, I think, if it works…
Perfect place to discuss a system that makes pedaling more efficient