Financial Independence Daily FI discussion thread - March 27, 2020 |
- Daily FI discussion thread - March 27, 2020
- COVID-19 Stimulus Bill Relaxes HSA Withdrawal Rules
- COVID-19 stimulus and penalty-free withdrawals up to $100,000 from 401k/403b/IRA
- FIRE Deflation Hedge, and more? The EE Savings Bond...
- Weekly FI Frugal Friday thread - March 27, 2020
- Wonder how the Real Estate FIRE folks are doing.
- Daily FI discussion thread - March 26, 2020
- Anyone else using the crisis as a FIRE dress rehearsal?
- Daily FI discussion thread - March 25, 2020
- Weekly Self-Promotion Thread - March 25, 2020
| Daily FI discussion thread - March 27, 2020 Posted: 27 Mar 2020 01:09 AM PDT Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| COVID-19 Stimulus Bill Relaxes HSA Withdrawal Rules Posted: 27 Mar 2020 06:58 AM PDT I know we all love HSAs in this community, and thanks to COVID-19, they're about to get just a little bit better. Back in 2010 when the ACA was passed, a few restrictions were placed on HSAs to help balance the revenue projections of that law. One of them included a prohibition on over-the-counter medications without a prescription, which makes it a little harder to withdraw money from an HSA without penalty. Well, thanks to a very minor technical change that's easy to miss on page 364 of the COVID-19 stimulus bill, that's about to change. See below:
Now, you probably think that's just about menstrual care products, which is nice but a minor detail. But it's not. Check out that part about striking the last sentence of subparagraph (A) of Section 223(d)(2):
Ta-da. HSAs can suddenly be used for medical care without a prescription. [link] [comments]  |
| COVID-19 stimulus and penalty-free withdrawals up to $100,000 from 401k/403b/IRA Posted: 27 Mar 2020 12:22 PM PDT "Savers under age 59½ would be able to tap their 401(k) and 403(b) money without the usual 10% early withdrawal penalty. This would also apply to individual retirement accounts." "Normally, if you were to take money from your retirement plan, you would be subject to a 10% penalty if you're under age 59½, along with income taxes on the amount you're withdrawing. The relief bill gives you the opportunity to pay the taxes over the course of three years. You can also replenish the amount that you pulled from your retirement account over that time. These distributions may be taken by people who themselves are diagnosed with coronavirus, or whose spouse or dependent has been diagnosed with COVID-19, or who experience adverse financial consequences from being quarantined, laid off or furloughed." From https://www.cnbc.com/2020/03/23/congress-may-let-you-take-100000-from-your-401k.html Isn't this a huge opportunity for the FI/RE minded who may be in low taxable income years? Similar to doing Roth conversions from an IRA but without the 5 year waiting period before spending the converted principal? [link] [comments]  |
| FIRE Deflation Hedge, and more? The EE Savings Bond... Posted: 27 Mar 2020 09:07 AM PDT Hey All, I'm a lurker/finance nerd, and usually don't post. But I am hoping the hive-mind may have thoughts about an addition to our portfolio I'm considering. It seems (relatively) unmentioned in these parts, yet I feel could fulfill a useful hedging role in some FIRE portfolios - the EE Savings Bond. TLDR: Is there a place in FIRE for EE bonds, a comparative-illiquid investment vehicle that offers a guaranteed 3.5% yield after 20 years? For those who are unfamiliar, EEs are government issued, with a 10k/SSN cap. They double in 20 years (e.g. 10k becomes 20k), but if redeemed even a day earlier are still only worth ~purchase price, so with each passing year, it becomes a bit less liquid/the opportunity cost for redemption increases. Still, that represents an effective 3.5% APY if it can be held for 20 years. And EEs have several unique benefits, some of particular note for we HCOL area folks:
My thought is, for folks like me and the SO that are more than 20 years out from their 60's and already maxing out all of our tax-advantaged options (401ks, IRAs, HSA and 529 to state tax cap) this is actually a pretty good deal. I'm musing on as much as ~20% of our taxable investments going forward, alongside a standard FIRE portfolio of index funds. I feel the odds are very good that equities are the more lucrative choice. But, in the (let's call it <10%?) chance that the "Eek, Japan, deflation, sky is falling!" chicken littles could even be partially right, setting this up as long-game, semi-tax advantaged CD ladder would make FI/RE a more likely outcome in our 50's. Crazy, or sane? [link] [comments]  |
| Weekly FI Frugal Friday thread - March 27, 2020 Posted: 27 Mar 2020 01:09 AM PDT Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Wonder how the Real Estate FIRE folks are doing. Posted: 25 Mar 2020 05:05 PM PDT U.S. Retailers Plan to Stop Paying Rent to Offset Virus With stores closed, retailers can't pay rent. On top of that, retail employs a massive amount of people, many of them renters themselves. If these workers are not getting paid, I imagine they can't pay their rent either. However, Real Estate fixed expenses are not going away (mortgages, taxes, maintenance, depreciation, etc..) Curious to see what are the thoughts of the Real Estate FIRE on the current situation specially the ones who used leverage to buy properties and generate cash flow. [link] [comments]  |
| Daily FI discussion thread - March 26, 2020 Posted: 26 Mar 2020 01:07 AM PDT Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Anyone else using the crisis as a FIRE dress rehearsal? Posted: 24 Mar 2020 06:40 PM PDT For us, the dream has always been to retire to a little hobby farm and tinker with beehives, grow hot peppers, make olive oil and go turkey hunting. As we've begun to rotate toward that life in the past couple of years, we've had to make tough compromises splitting time in the city for work and the country on weekends. For example, keeping most livestock (beyond chickens) has been out of reach for us since they need more or less daily care. Now... we suddenly find ourselves asking "why not?" So far we've picked up a little flock of sheep and some more chickens and a goose. When we go back to work we'll figure it out; we were planning to hire someone to help out part time anyway. The experience we'll get with a month or two to cut our teeth on higher maintenance hobbies will be invaluable. But more than that... this is a chance to see what it will really be like. To find out if we got everything we wanted in our FIRE dream, would that dream stay the same? So far it's too early to tell for us, but so far so good. I wondered if anyone else was finding an opportunity in the crisis to test-run their FIRE plans, and how it was going? [link] [comments]  |
| Daily FI discussion thread - March 25, 2020 Posted: 25 Mar 2020 01:08 AM PDT Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Weekly Self-Promotion Thread - March 25, 2020 Posted: 25 Mar 2020 01:08 AM PDT Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
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