One strategy I’ve done: we have an auto transfer option in our HSA from investment to cash if you have an expense that you can toggle on and off. When I’ve had an expense I use the HSA for, I turn it off, then let the cash build back up through our contributions while keeping the invested dollars untouched.
Retirement Targets
- Thread starter yowza
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One strategy I’ve done: we have an auto transfer option in our HSA from investment to cash if you have an expense that you can toggle on and off. When I’ve had an expense I use the HSA for, I turn it off, then let the cash build back up through our contributions while keeping the invested dollars untouched.
Yep. I have a $2k auto transfer rule set up. If I build up to $2k amount in cash, excess funds start auto transferring into stock index funds.
Question for those retirees with an HSA account and on Medicare. I have been using my HSA account to pay my monthly Medicare charges (as well any other medical bills). Once I start taking Social Security (at age 70) and then also reach the age of RMD's kick in, the monthly cost for Medicare will go up from the base rate and start to burn through the HSA much quicker.
It made we question why use HSA funds for a while. They grow tax free. Does it make more sense to let them grew a while longer and pay Medicare and medical bills with other funds (whose growth would be taxed)? The risk is you pass on before using up the entire HSA balance and when inherited by my children, they would have to pay taxes on the HSA funds.
Would appreciate any thoughts or recommendations.
It made we question why use HSA funds for a while. They grow tax free. Does it make more sense to let them grew a while longer and pay Medicare and medical bills with other funds (whose growth would be taxed)? The risk is you pass on before using up the entire HSA balance and when inherited by my children, they would have to pay taxes on the HSA funds.
Would appreciate any thoughts or recommendations.
Palm Springs is pretty awesome, but my thought was always that if I'm moving to the desert I'll just keep going to Arizona.
San Diego - amazing and possibly worth the price due to the overwhelming amount of things to do and see.
St. George is beautiful from what I saw. Have relatives who live there. They like it but more from a political perspective
Vegas could be cool. It's much more than the strip. Places to hike. But I've never been any place that still didn't have that Vegas/desert vibe
Idyllwild was a place we considered buying before markets went nuts. We took weekends there quite a bit. But they get snow.
I’m far from retirement, but I’d probably think about Vegas when I get to that stage.
Warm. No income tax in NV. Once you’re out in the burbs it feels more like PHX, not like you’re going to be living on the Strip or Fremont St. Not as massive as PHX either.
Of course assuming they still have water in 30 years
Assuming of course Vegas still has water by the time you want to retire
San Diego would be my dream location. Probably out of my price range, but it would be the dream. But other than that, I could see North Carolina. Honestly, I'll probably stay in Iowa.
Yes, but there are also people with the mentality of "I'll start tomorrow, or next year." Etc and then years later they're like oh crap I can't retire and then work themselves to death. Then there's some who just can't walk away regardless because they have no hobbies and die on the inside.
Funny you say that, I somehow feel the opposite… we’re 25-30 years out from retirement and only started dumping significant money into retirement about 5 years ago…. So we feel a bit happy when the market goes up, but then we realize that just means the money we pump in at the next paycheck will buy fewer shares!
I stopped contributing a year ago and have mine set up the same way. If the cash fund drops below a certain amount they cash out some of the investments to put into cash. So far the investments have out gained the withdrawals.
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Yeah, mine's set up the same way.
I figured out that workaround because my investment balance was low enough I didn't want to completely sacrifice it to pay any expenses.
Hers is neither. I believe the halfway point in the area she’s in. Beautiful piney area.
You are doing much better than I was at that age. I am doing okay now. Just working to pay off some land purchases now. Also concerned about nursing home costs with my wife’s health issues. No sense in thinking about traveling since she really can’t. Keep putting it away and it will add up.
The Carolina's are beautiful, great weather during the winter, but it does get humid and the cost of living is cheaper than Iowa in many parts if you stay away from the tourist areas.
Just one other note regarding the discussion on how much you need saved to retire. Sure, Social Security may not be reliable. Pensions are a thing of the past. But one thing doesn't change: if you do manage to sock away that suggested sum of $1 million or more, you can invest that conservatively and have a pretty good monthly gain. Right now, T-Bills are paying over 5%. So, $1 million will net you about $4,500 a month. Even at 3% you collect $2,500 a month. And that will help you to not have to spend down your savings as much.
Just another way of stating the obvious: save as much as you can for retirement.
Just another way of stating the obvious: save as much as you can for retirement.
