Retirement Planning Thread

Folster

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Yeah, I recently realized I accidentally wasn’t contributing to my HSA and was super pissed. My company contributes each year, so I didn’t realize I wasn’t contributing anything since there was always some money in there. Stupid on my part. I started small to not upset my cash flow, but I’ll end up jacking it up over time. Had the last kid late last year, so hopefully no big medical expenses coming.
You should be able to make a deductible contribution to your HSA to the prior tax year up until the tax filing deadline similar to an IRA. That gives you extra time to contribute and can come in handy if you need to decrease your taxable income for the prior year.
 

dreamcastrocks

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its a shame that half of the retirement thread is about how to pay for medical costs while retired.

Has anyone purchased the long term care insurance that some companies provide? I am only in my mid 40s so I don't have any experience with it.
 

Russ Smith

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Has anyone purchased the long term care insurance that some companies provide? I am only in my mid 40s so I don't have any experience with it.

not yet but I do know many of them have all sorts of things that disqualify you. one example if you've seen a psychiatrist at any time and there's certain diagnoses, including PTSD, most of them completely disqualify you. It's a huge issue with older people where in some cases the psych will have to tell them I can treat you but if I do, you will not be able to get long term insurance do you want the meds or the insurance. Classic example of mental health being seen totally different than physical in this country.
 

dreamcastrocks

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not yet but I do know many of them have all sorts of things that disqualify you. one example if you've seen a psychiatrist at any time and there's certain diagnoses, including PTSD, most of them completely disqualify you. It's a huge issue with older people where in some cases the psych will have to tell them I can treat you but if I do, you will not be able to get long term insurance do you want the meds or the insurance. Classic example of mental health being seen totally different than physical in this country.

Of course they do.
 

Zeno

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Has anyone purchased the long term care insurance that some companies provide? I am only in my mid 40s so I don't have any experience with it.

I haven't purchased it yet but I have been doing my research, I may be disqualified from a lot of policies due to the history of dementia in my family. It's going to take some shopping around but to me the benefit outweighs the cost in the end.
 

dreamcastrocks

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I haven't purchased it yet but I have been doing my research, I may be disqualified from a lot of policies due to the history of dementia in my family. It's going to take some shopping around but to me the benefit outweighs the cost in the end.

Let me know your experience with it. I am curious to see how it goes for you.
 

Zeno

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Let me know your experience with it. I am curious to see how it goes for you.

My employer (Federal Gov't) offers a plan through John Hancock Insurance but I plan to shop around for more competitive rates (again if possible with my family history).

What I have really done is research what is and isn't covered, different types of coverage and a general idea of costs. I turn 49 in a few months and don't really plan to purchase until right about the time my wife retires (which will be 2025--I have to wait another 3-4 years after her before I retire)--the plan is my dividend paying stocks annual income will more than cover the premium amount in retirement, at least I hope it will.

This link has some good basic info...


It's a few years old but a good start.

Here is another one...

 

Zeno

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As for the specifics of the congressional proposals, the House bill would allow catch-up contributions of $10,000 to 401(k) plans for anyone age 62, 63 or 64.

At the same time, however, the House bill also would eliminate the pre-tax aspect of catch-ups by requiring that they be made on an after-tax basis — i.e., as a Roth contribution. In that case, there would be no upfront tax benefit but qualified withdrawals would be entirely tax-free.

Won't benefit me as I will be at least 5 years in to retirement before I turn 62 but good for those that plan to work longer (if they can afford it). 2022 is the first year I can do catch-up contributions, I really wish they'd raise the legal limit on IRA catch ups from $1000, I had heard there was some talk of raising that limit but with it somehow being tied to inflation but it's been quiet lately.
 

Ouchie-Z-Clown

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As for the specifics of the congressional proposals, the House bill would allow catch-up contributions of $10,000 to 401(k) plans for anyone age 62, 63 or 64.

At the same time, however, the House bill also would eliminate the pre-tax aspect of catch-ups by requiring that they be made on an after-tax basis — i.e., as a Roth contribution. In that case, there would be no upfront tax benefit but qualified withdrawals would be entirely tax-free.

Won't benefit me as I will be at least 5 years in to retirement before I turn 62 but good for those that plan to work longer (if they can afford it). 2022 is the first year I can do catch-up contributions, I really wish they'd raise the legal limit on IRA catch ups from $1000, I had heard there was some talk of raising that limit but with it somehow being tied to inflation but it's been quiet lately.
The IRA limits in general never made sense to me. Who can save effectively at those rates?
 

Zeno

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The IRA limits in general never made sense to me. Who can save effectively at those rates?

I agree, they preach all the time about saving for retirement and there is very little offered outside of employers sponsored plans and those have a ridiculously low cap amount for contributions.

The Roth income limits never made much sense to me either. If there is a contribution limit why bother with an income limit? It makes even less sense when you can backdoor a Roth legally.
 

Zeno

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This isn't an official gov't site or anything but I have followed this guy for some years now and he is super accurate in his predictions. He just updated his 2022 projections last week.


He is predicting the 401K limits to go up to $20,500 from the current $19,500 and he is predicting no increase to catch up contributions.

He also predicts the IRA limits do not change at all next year.
 

Ouchie-Z-Clown

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This isn't an official gov't site or anything but I have followed this guy for some years now and he is super accurate in his predictions. He just updated his 2022 projections last week.


He is predicting the 401K limits to go up to $20,500 from the current $19,500 and he is predicting no increase to catch up contributions.

He also predicts the IRA limits do not change at all next year.
We’ll know in about two months. IRS COLAs announced in October.
 

jf-08

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I agree, they preach all the time about saving for retirement and there is very little offered outside of employers sponsored plans and those have a ridiculously low cap amount for contributions.

The Roth income limits never made much sense to me either. If there is a contribution limit why bother with an income limit? It makes even less sense when you can backdoor a Roth legally.
My understanding is that because if there were no cap, the rich would gain the most benefit while the non-rich would only have a small benefit. In other words, if the Roth limit was $100K per year, some would throw $100K into it, having it grow without paying capital gains.
 

Zeno

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My understanding is that because if there were no cap, the rich would gain the most benefit while the non-rich would only have a small benefit. In other words, if the Roth limit was $100K per year, some would throw $100K into it, having it grow without paying capital gains.

I can understand that but why is it set at a paltry $6000 ($7k for 50+)? $15-20K seems more reasonable and is more in line with a 401K but without the benefit of matching employer contributions.
 

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