Not feeling super great about investments right now – not because I don’t want to be buying (I do want to be buying!) but I have some expensive healthcare costs at the moment AND my job is getting increasingly less secure as the pandemic progresses. Our work relies on the state and federal courts going on as usual and if courts start closing in large numbers, our work is going to start drying up.
So, we’ll see if I do or don’t max. I’m going to keep my 401k and HSA on track to max right now, but I think the Roth is going to be on hold for a few months as I get some extra cash thrown into savings and at my #$@#@$ healthcare expenses.
Finally called and set up the backdoor roth! I’m not going to max out the full $57k, but I’m shooting for $30k by the end of the year. I might frontload it a bit right now for the next couple weeks though.
I’m thinking of battening hatches as well. I may actually cut down on HSA contributions. I’m sure my job is safe if my university reopens in the fall. I’m not as sure of the latter. Husband had a very good shot at a position at another university (in a different direction about 45 miles away to my 35), but who knows now if that position will be filled.
Suppose I could also cut 457 contributions, but I’m actually leaning toward HSA. Not sure I’ll do anything, but feeling the need for more cash on hand.
I had decided to change strategies and not max everything out right away but I missed the deadline for bonus allocation so as of March 17 my 401K has been fully funded (employer match will keep slowly rolling in each month) and my Roth is fully funded into a savings account (we usually do the backdoor Roth at the end of the year…will have to decide what to do now that the bank accounts are full).
HSA will max out by the end of the year and can’t change the schedule.
Anyone have insight on if timing the market is a fool’s game right now? I know that whatever I buy right now is on deep discount compared to January, but I also keep thinking “what if I wait just a few more days?” But that’s what everyone thinks, and I’m smart enough to know that I’m not smarter than everyone. I wouldn’t mind so much except I just shoveled $4k in my 2019 Roth IRA and I’d like to not immediately see a negative return.
Watching the markets this year it’s really sunk in for me just how imaginary the stock market is. It’s wild that we just keep acting like it has anything to do with reality (me included).
Timing the market is always a fool’s game. By definition, nobody has enough information to make well-informed decisions, because if they did, that would be insider trading. But statistically, the market will go up over time, so I wouldn’t worry about it too much.
This month I learned my grandfather was giving everyone a bunch of money, so I basically split that into giving and investing. We are currently at:
2019 Roth IRAs: Mine is maxed, Mr Darling’s is at $2.5k/$6k
401ks: I put in an increase I swear in February that still hasn’t gone through. He told his work to max it out, but the amount they pulled from his first paycheck seemed low to me. $1,125/$19,500 and $557/$19,500
2020 IRA’s: $0, we’re finishing the 2019 ones first
2020 HSA’s: His doesn’t seem to be set up yet, so $1500/$7500
Total: $11,702/$70,100, 16.7% of the way.
Plus I made my spreadsheet color coded, so that’s always nice.
End of month update and still generally cranking along boringly, which is a very good thing under the circumstances. HSA at 30%, pre-tax 401k at 74%, and post-tax at 15%. Post tax is the only one I might fiddle with since the other two are either forced to be automated or at the point where messing with them will also mess up the match from here on out. The most interesting part is that a new quarter starts tomorrow so work limits on donations reset and I can start pushing up that number again. Not that I’m not fine with just donating my own money, especially now, but if work is going to set a match for 501c3s I’m going to do my part to make sure they hit it.
Continuing along…HSA at 38%, pre-tax 401k at 82%, post-tax at 28% with some fiddliness to follow. Given the circumstances, boring is probably the best way to be right now.
I stop getting a paycheck next week but already hit the 401k limit by putting in 50% of my pay and bonuses! No more savings for me, only spending from now on. It’s a bit scary going from two incomes to one. Gotta get through this ridiculously expensive renovation, too.
I’ve deliberately decided not to prioritize this goal to the exclusion of everything else, but I’ll continue tracking here because we’re saving much more than 20%, and our joint salaries mean we’re saving more than $20,000 as well.
The realignment comes because I was trying to figure out how to max my 401k. Because I was only contributing 6% for a few months, and because it takes them forever to update my withholding, I’ll need to withhold 37% of my paycheck for the rest of the year (and that’s if they update it within the month which who knows). That’s… at lot. We still could probably reach the goal, but as I said on Discord, I’m really not interested in delayed gratification right now. What’s helping me get through this clusterfuck of a world is a nice, comfortable place to live, good food, and high donation levels, and I’m not interested in scrimping or delaying any of those purchases. So the new goal is max out 401ks, contribute to other accounts as able.
And so it continues…HSA at 46%, pre-tax 401k at 84%, post at 36% with first transfer to Roth begun, and donations are at 69% of max (max meaning what work will match, not my personal max…hoping they make some exceptions to their limit for more than just covid, but we shall see).
