Retirement Targets

yowza

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Jun 2, 2016
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Do you keep all of it in the investment, or a portion in cash/stable fund?

I currently have mine set to keep one year deductible in cash, anything above that gets invested.
I keep $1k to $2k in liquid stable and balance in index funds. It takes a day or two to cash out some in a fund if cash needed to pay a bill. So far (knock on wood), 99% of our medical stuff has been stuff we scheduled ahead and no real unknown emergencies. Have been in a HDHP with HSA for about 9 years.
 

Cyched

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May 8, 2009
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I keep $1k to $2k in liquid stable and balance in index funds. It takes a day or two to cash out some in a fund if cash needed to pay a bill. So far (knock on wood), 99% of our medical stuff has been stuff we scheduled ahead and no real unknown emergencies. Have been in a HDHP with HSA for about 9 years.

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.
 
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yowza

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Jun 2, 2016
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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.
 

BleedCycloneRed

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Sep 1, 2009
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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.
 

KnappShack

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May 26, 2008
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Speaking about retirement, any suggestions on places to check out? Here are my must haves:

Warm
Low humidity
Somewhat affordable
Within an hour of a decent airport

So far we've checked out:

Palm Springs-Love it, too expensive
San Diego-Love it, WAY too expensive
Phoenix-Suburbs are nice, enjoyed our time there.
Tucson-Really liked Tucson. A little cooler than Phoenix, a lot smaller, a lot more relaxed.
Vegas-Been to Vegas a lot but never any of the suburbs.
St. George-Never been but looks nice
Albuquerque-Never been but my wife didn't seem to love it

I feel like I'm missing some smaller areas but the desert states don't seem to have as many options.

Other options?

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.
 

Clark

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Jun 24, 2009
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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 :cool:

Assuming of course Vegas still has water by the time you want to retire
 

jsb

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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.

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.
 
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KnappShack

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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.

Lived just up the coast for a lot of years. I've missed it every day since I moved away.

Great place to be
 

bos

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My sister moved from Phoenix to Show Low for milder weather. She loves every minute.
 

4theCYcle

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Many come from poor families and living to pay check to pay check is the only way of life they know. Many do not have much education, going from job to job and the idea of saving for retirement is foreign concept for many. Its live for today, because I might not be around for tomorrow, so I am going to enjoy my life. That line of thinking was fine they could get factory jobs that had a pension, but those types of jobs are few and far between these days.
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.
 

clonechemist

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Watching the numbers flash red is tough. It takes a bit of conviction and will power to keep from easing up

But the market can work wonders if an investor lets it work.

My wife is 7 years younger than me. She's an earner. In theory I won't need to touch my retirement funds until there's an RMD. We can make ends meet on her salary.

At this point I don't see a change in strategy for decades. But the ol' "we plan, God laughs" wildcard can change everything

(Of course everyone's situation is different. Stick with your own comfort level and don't swap everything because it's on here!)
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!
 

dmclone

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My sister moved from Phoenix to Show Low for milder weather. She loves every minute.
I had never heard of it but it looks interesting. The first 3 homes I clicked on were trailers, the next two were over a million dollar homes.
 

Cyclones_R_GR8

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Do you keep all of it in the investment, or a portion in cash/stable fund?

I currently have mine set to keep one year deductible in cash, anything above that gets invested.
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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Cyched

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May 8, 2009
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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.

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.
 

bos

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I had never heard of it but it looks interesting. The first 3 homes I clicked on were trailers, the next two were over a million dollar homes.
Hers is neither. I believe the halfway point in the area she’s in. Beautiful piney area.
 
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JP4CY

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Hers is neither. I believe the halfway point in the area she’s in. Beautiful piney area.
Looks like a lot of golfing opportunities in that greater area.
 
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cjclone

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Genuinely curious, how? I'm over the $200k mark at 32 and I feel like I'm behind. Certain professions with pensions maybe I could see it, but anyone who has to live off 401k's, Roth's and other savings plus SS, that number seems extremely low.
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.
 

CascadeClone

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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.
My kids live here, and my grandkid will soon. Im not going anywhere either.

Extended vacations to somewhere warmer in january are a strong possibility however...
 

1SEIACLONE

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My kids live here, and my grandkid will soon. Im not going anywhere either.

Extended vacations to somewhere warmer in january are a strong possibility however...
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.
 
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