Probably, but not necessarily. There can be significant differences in investment options, investments already held, fees, plan rules, etc. between 401k plans.
Retirement Ponderings
- Thread starter BigFrank
- Start date
It sure as hell does seem sketchy when you're accustomed to the US system. I sent him the full amount, then he kept his fee and transferred the difference to the hospital to pay that portion of the bill. This occurred while he and the hospital administrator were in my room discharging me.
Also don't need to necessarily consolidate into your existing 401k. Could roll them into a traditional IRA in your brokerage account - all into one or make separate IRAs.
That’s what I did with my 401ks from previous employers. Moved them into a IRA that is managed now. Started a new one with my current employer.
So far it’s been good. But let’s see how the market is this year.
GhostOfGaspar
Husband of Dime-Piece
My glorious wife was born in Panama (though she's Puerto Rican), as she was an Army Brat. They have birthright citizenship though, so she has dual-citizenship. I've done preliminary research about what a move there would look like, and frankly, it's quite appealing. Obviously her status would simplify things for us.
Though we celebrated our 10th anniversary in Costa Rica and kind of fell in love with the place. A little more complicated to make that move, but I would absolutely love to live in the region on a little plot of land and go into town twice a month to refill a freezer. I know I'm romanticizing the whole thing, but it's a doable goal.
I've struggled with this as well. Our HYSA has gone down to (i think) 3.6%. But our mortgage is at 2.625% after we refinanced down to a 15 in 2020. From when we bought in 2015 through about 2018 we were chipping a couple extra hundred bucks a month at it. At this point we have about 9 years and 90k left. For the last few years we've been investing (between 401ks and Roth IRAs) about 30% of gross income. If we cut that in half, I think we could have the house paid off in 4-5 years. But I've got goals, man! I want to FIRE or at least BaristaFIRE in about 13 years. That would put me at 56; still young enough to explore some of my many interests outside of the booze industry. In fact, as a sober person, i can't fucking wait to get out, but I'm just in too deep for too long and I don't have a ton of skills outside of my profession.
But we did our annual net-worth statement on 12.31, and that's always super-reassuring and motivating that we're on the right path. I'll sacrifice a lot of things now to be able to liberate ourselves a bit earlier.
I love talking about this stuff, but there are like 2 people in my life that will engage about monetary concerns. I think that's a societal flaw we have. I fucking wish someone would have approached a 30-year old Gaspar and talked money, investments and retirement. Hell, my own fucking father thinks about nothing but money (and Jesus), and didn't help me out for shit in terms of direction or advice.
Same. They need to teach this stuff (properly) in schools. My own parents are absolutely clueless and refuse to listen to the most basic advice.
It's one of the huge differences I see with my son's friends and their families. Most of them are from generational wealth and they have all aspects of this stuff locked down decades in advance. Everything is held in offshore trusts to protect against taxes, bad marriages, general dumb decisions. Everyone is on the same page from day 1.
No shit, could not possibly agree more with you. It's absurd. I didn't learn a fucking thing about this stuff in high school or college (mid-90s to early-00s). My parents didn't know anything except that saving money was good - we never had much, but they did all the right things with what they had.
Luckily I had an uncle who was an investment/tax professional, and he taught me some things at a pretty young age. That stuff I was taught, coupled with an absolute abhorrence of being employed, led to thinking about my retirement starting at 16 years old when I got my first job.
I know not to make the same batshit financial decisions my parents did. Or hell, even my sister. I was shocked to learn my grandparents had money because if there is one person who always lived like the rest of our middle class, getting by but not living lavishly asses, it’s my grandma.
boogercrack
🦧 Rowdy Chowder
I plan to exercise the new law allowing $35k of 529 overages to be rolled into Roth IRAs in the same beneficiaries name for kick starting both of my kids' retirement plans. Start them off at 18 or so.
That'll be a start for them. And not having to pay for college.
We've been working with them with starting savings and investment accounts. We've been lightly teaching them about compound interest and index funds. They both want to put their birthday money each year from relatives in their investment and college funds, which seems pretty mature.
The only real advice I got early on was seeing the financial impacts of my parents divorce, lol. Don't want that! That and "you can never save enough" mentality.
Im mostly self taught, but there are so many more resources available now than 25 years ago. I wish id have prioritized some more with non-tax advantaged accounts, so potentially retiring very early could be easier. I also blew stupid cash first 5 years out of college. Kinda fucked that up. But I'll be passing down those learnings too.
That'll be a start for them. And not having to pay for college.
We've been working with them with starting savings and investment accounts. We've been lightly teaching them about compound interest and index funds. They both want to put their birthday money each year from relatives in their investment and college funds, which seems pretty mature.
The only real advice I got early on was seeing the financial impacts of my parents divorce, lol. Don't want that! That and "you can never save enough" mentality.
Im mostly self taught, but there are so many more resources available now than 25 years ago. I wish id have prioritized some more with non-tax advantaged accounts, so potentially retiring very early could be easier. I also blew stupid cash first 5 years out of college. Kinda fucked that up. But I'll be passing down those learnings too.
529 overages. How much do you think college is going to cost in 2035?
boogercrack
🦧 Rowdy Chowder
According to Vanguard's calculator, 2034-2037 -> $167k for public in state 4 years all in, using today's rates for UT Austin and TAMU and growth estimates. Which is absolute lunacy to me.
I'm planning for ~$225k per kid just in case. I joke that they're going to be driving my Ferraris.
If there's overages, the Roth IRAs, then I guess decide if I want to take underwater basket weaving at the community college, hold onto it for potential grandchildren, or figure out how to avoid taxes on taking whatever pricinple is left back out.
BigFrank
Forbidden Chicharron
This amount wildly varies, depending on what you want to get out of the experience. My son can attend junior college classes well in high school for free. If he wanted to, he could complete his AA while in high school. He could live at home and attend the local state school (tuition $7k/year) relatively cheaply.
Or he could attend a sub par private school (USC for instance) at $100k a year.
boogercrack
🦧 Rowdy Chowder
I am hoping for some level of higher education reform by then though. But planning against it. The rise in cost is entirely unsustainable and predatory to the students.
Oh I know. But I also know the price has continued to skyrocket in the time since I was in undergrad.
BigFrank
Forbidden Chicharron
It’s a total scam. We are easily at a point a kid could get a free education from YouTube University.
boogercrack
🦧 Rowdy Chowder
The trades are where it's at.
Kind of hoping my kid learns a trade. Lots of jobs out there with good pay for a good tradesman.
Edit: boogercrack beat me to it.
Edit: boogercrack beat me to it.
This. AI isn't replacing mechanics, electricians, plumbers, etc.
Maybe the AI robots will tho.