Financial Independence Daily FI discussion thread - Friday, November 05, 2021 |
- Daily FI discussion thread - Friday, November 05, 2021
- Want access to the mega-backdoor Roth? Just ask
- Weekly FI Frugal Friday thread - November 05, 2021
- The possibility of future declining returns and its impact on FIRE goals
| Daily FI discussion thread - Friday, November 05, 2021 Posted: 05 Nov 2021 02:02 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]  |
| Want access to the mega-backdoor Roth? Just ask Posted: 05 Nov 2021 06:55 AM PDT For those of you new to the concept a mega backdoor Roth conversion it's an additional funding source for your 401k. It allows you to contribute an additional $38,500 to an after tax 401k in addition to the 2021 limit for a traditional or roth 401k of $19,500. Immediately after contributing if you convert the funds to a Roth 401k and you now have a 401k limit of $19,500 traditional and $38,500 Roth or $58k of pure Roth 401k at no additional tax cost. The last two employers I've worked for didn't offer an after tax 401k when I started. Both times I reached out to our plan holders (Vanguard and Fidelity) asking if they had it and letting our rep know that I think we would benefit from it. It's important here to talk to your plan's sales rep over a general help person because they're the ones pitching new options to your HR / leadership. Then on an all hands meeting when leadership opened it up to questions I would ask if we were planning to offer an after tax 401k option for the coming year (and clarified it was different from a Roth or Traditional 401k in my question). Both times they said they didn't have plans to offer that, but both times around November they announced they were now offering it as a new option. It's not a great option for everyone since it means you have to already be contributing $24,500 between 401k and IRA to make it make sense, but for those of us that can afford to save that much it's a huge boon for tax savings. I work in tech so this is a super cheap way for them to give us yet another benefit that can really help the folks who can afford to save extra. TL;DR: if your employer doesn't offer an after tax 401k for a mega backdoor Roth, reach out to your company's 401k rep and ask about it with HR leadership. It's not an expensive benefit or hard to set up and most if not all of the major 401k companies offer it, you just need to be a squeaky wheel. [link] [comments]  |
| Weekly FI Frugal Friday thread - November 05, 2021 Posted: 05 Nov 2021 02:00 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]  |
| The possibility of future declining returns and its impact on FIRE goals Posted: 04 Nov 2021 03:57 PM PDT I just watched this video and wanted to get your thoughts on it (TLDW: climate change/climate regulation plus the lack of viable economic growth opportunities will result in stock market growth coming to a halt, making it impossible for people to retire). We can always adjust our SWR to be more conservative, but we'd have to work many years longer to support a SWR that would survive the stock market flatlining or even declining without ever recovering. Is anyone trying to take these possibilities into account, or just hoping the market indefinitely continues the way it has the last 200 years? [link] [comments]  |
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