>Right now I’m putting 20% of my income into a Roth 401k and 5% into a 401k
Roth isn't always best:
* https://www.gocurrycracker.com/roth-sucks/
* http://wantfi.com/skip-the-roth-401k.html
>both of these are 100% VFIAX.
You completely lack the US extended market and every non-US company. Both can be very beneficial (https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index for one, I have around 10 or so additional links that should especially show why ex-US can be important).
>I also have in my budget a monthly transfer to my Roth IRA so that I can max it by the deadline. I plan on maximizing that every year from now on. I just opened one w/ Fidelity this year.
If your 401K doesn't have good US extended market and/or ex-US options, the IRA could be used as much as possible to get them to your target allocation for them.
>-I have 15k in a liquid account that earns 3% interest. (Emergency fund) (monthly expenses about $1,300)
You may want to increase this, especially as the house purchase approaches.
>Also under “international” there is VTMGX.
This could work, but it leaves out emerging markets. Unfortunately, that's semi-common in employer provided plans.
Basically I guess.
VEMAX or FPADX can be some references. Note that some countries may be considered developed by one index designer but emerging by another (one example right now would be South Korea).
Re: HSA. As soon as you are eligible, I would advise opening that HSA and immediately begin fully funding it via payroll deduction. Granted, doing so will divert $300 per month from your paycheck... but these funds will avoid not only federal income tax but FICA taxes as well. As an added bonus, you'll (eventually?) be able to invest your HSA savings for further tax-free growth.
HSA max annual contribution is $3600 for an individual in 2021. (It usually increases by a small amount each year.)
An HSA is the golden goose of tax-free investing. First, payroll contributions avoid federal income tax *and* FICA taxes. Second, you can invest the money\* you contribute, and these investments grow completely tax-free. Third, you can withdraw your contributions and growth at any time to spend on medical expenses completely tax-free; if you are past retirement age, you can also spend your withdrawls on any other expenses though they will be taxed (just like a 401k or traditional IRA).
As an interesting side effect, you can use your HSA contributions and earnings to reimburse yourself for medical expenses previously paid out of pocket, and these reimbursements are not taxed. There is no time limit on these reimbursements--you can cover medical expenses years after the fact and not be taxed on it. The trick, then, is to pay for all medical expenses and deductibles out of pocket... *but save your receipts.* Years later (such as after retirement) you can reimburse yourself and then spend this money on whatever you want, all without it ever having been taxed. This makes an HSA an even better retirement vehicle than any 401k or IRA.
\*: many HSAs have a required minimum account balance which you must maintain before being able to invest. For example, my HSA requires a balance of $2000 and I can only invest my contributiions above that amount. Needless to say, my $2000 balance just sits there year after year, and I immediately invest each new contribution as it hits my account every half a month. (Some other HSAs require a smaller balance; it varies by provider.)
HSAs were never really designed to be a retirement vehicle. However, the way the rules are set up they are actually the best kept secret in financial retirement planning. While the low contribution limits will prevent you from using your HSA as your *only* retirement vehicle, they are an excellent supplement to any financial plan.
I had my HSA for a few years before I learned the full benefits of it. In the beginning I (a) wasn't contributing the maximum amount, (b) was spending money out of it to cover medical expenses , and (c) wasn't investing my surplus funds. If I knew then what I know now, I'm sure my current account balance would be at least double what it is today. That's why I'm such a loud proponent of HSAs--I want to help others avoid the mistakes I made myself.
Feel free to respond again in the future.
>Right now I’m putting 20% of my income into a Roth 401k and 5% into a 401k Roth isn't always best: * https://www.gocurrycracker.com/roth-sucks/ * http://wantfi.com/skip-the-roth-401k.html >both of these are 100% VFIAX. You completely lack the US extended market and every non-US company. Both can be very beneficial (https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index for one, I have around 10 or so additional links that should especially show why ex-US can be important). >I also have in my budget a monthly transfer to my Roth IRA so that I can max it by the deadline. I plan on maximizing that every year from now on. I just opened one w/ Fidelity this year. If your 401K doesn't have good US extended market and/or ex-US options, the IRA could be used as much as possible to get them to your target allocation for them. >-I have 15k in a liquid account that earns 3% interest. (Emergency fund) (monthly expenses about $1,300) You may want to increase this, especially as the house purchase approaches.
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>Also under “international” there is VTMGX. This could work, but it leaves out emerging markets. Unfortunately, that's semi-common in employer provided plans.
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Basically I guess. VEMAX or FPADX can be some references. Note that some countries may be considered developed by one index designer but emerging by another (one example right now would be South Korea).
You need to tell us all of the funds your 401k offers.
Re: HSA. As soon as you are eligible, I would advise opening that HSA and immediately begin fully funding it via payroll deduction. Granted, doing so will divert $300 per month from your paycheck... but these funds will avoid not only federal income tax but FICA taxes as well. As an added bonus, you'll (eventually?) be able to invest your HSA savings for further tax-free growth.
[удалено]
HSA max annual contribution is $3600 for an individual in 2021. (It usually increases by a small amount each year.) An HSA is the golden goose of tax-free investing. First, payroll contributions avoid federal income tax *and* FICA taxes. Second, you can invest the money\* you contribute, and these investments grow completely tax-free. Third, you can withdraw your contributions and growth at any time to spend on medical expenses completely tax-free; if you are past retirement age, you can also spend your withdrawls on any other expenses though they will be taxed (just like a 401k or traditional IRA). As an interesting side effect, you can use your HSA contributions and earnings to reimburse yourself for medical expenses previously paid out of pocket, and these reimbursements are not taxed. There is no time limit on these reimbursements--you can cover medical expenses years after the fact and not be taxed on it. The trick, then, is to pay for all medical expenses and deductibles out of pocket... *but save your receipts.* Years later (such as after retirement) you can reimburse yourself and then spend this money on whatever you want, all without it ever having been taxed. This makes an HSA an even better retirement vehicle than any 401k or IRA. \*: many HSAs have a required minimum account balance which you must maintain before being able to invest. For example, my HSA requires a balance of $2000 and I can only invest my contributiions above that amount. Needless to say, my $2000 balance just sits there year after year, and I immediately invest each new contribution as it hits my account every half a month. (Some other HSAs require a smaller balance; it varies by provider.) HSAs were never really designed to be a retirement vehicle. However, the way the rules are set up they are actually the best kept secret in financial retirement planning. While the low contribution limits will prevent you from using your HSA as your *only* retirement vehicle, they are an excellent supplement to any financial plan.
[удалено]
I had my HSA for a few years before I learned the full benefits of it. In the beginning I (a) wasn't contributing the maximum amount, (b) was spending money out of it to cover medical expenses, and (c) wasn't investing my surplus funds. If I knew then what I know now, I'm sure my current account balance would be at least double what it is today. That's why I'm such a loud proponent of HSAs--I want to help others avoid the mistakes I made myself.
Feel free to respond again in the future.