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Talking stocks, trading, and investing in general

Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.

  1. Texasmade

    Texasmade Distinguished Member

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    Depends on your situation. I’m single, pretty healthy, with a good income with the cheapest insurance that’s a high deductible plan so makes sense for me to contribute every year to at least my deductible regardless if my company contributes or not. Your situation may be different and an HSA may not make sense.
     

  2. stimulacra

    stimulacra Senior Member

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    It depends on the plan (minimum requirements, deductibles, max out of pocket, fees associated with it, etc…) and how much healthcare you consume on average. If you are a low consumer of health care or a very high consumer of it, an HSA is usually worth it compared to regular employer provided healthcare coverage. If you are a moderate consumer of healthcare, you have to crunch your own numbers and see if it is worth the hassle.

    The reason most employers kick in $500 - 1000 / year for employees as an incentive is that transitioning their workforce to HDHP/HSA coverage saves them money in the long run. The thing I've noticed though is that most HR departments are not well informed about benefits in general, HSAs specifically.

    For me it's worth it because the triple tax advantage (Pre-tax going in, reduces my taxable income, grows tax free for the next 30 years, and I pay no taxes on it if spent on medical expenses). We each have a finite amount of tax-advantaged space to utilize during the accumulation phase of our careers, this one is the most versatile to use and I suspect will gain in popularity like 401k and Roths.
     

  3. otc

    otc Stylish Dinosaur

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    I Max the shit out of that HSA.

    Although I might have to give it up. My girlfriend should probably be on my employer plan (rather than chilling out on Medicaid), but she is a high user of healthcare right now so a high deductible plan would not be good.
     

  4. lawyerdad

    lawyerdad Stylish Dinosaur

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    In my experience most HR Departments are 4% really smart, capable professionals and 96% deadwood.
     

  5. Omega Male

    Omega Male Senior Member

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    School fee time again. Post-tax dollars, yay. Should probably also add back a fat portion of the fat property taxes I also get fuck-all for, but why add insult to injury? Pay the Selfish Gene.
     

  6. patrickBOOTH

    patrickBOOTH Stylish Dinosaur Dubiously Honored

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    I don't know, I have some health stuff that needs regular follow ups and also I take a few different meds, one of which is pricey. I kind of feel that the whole tax free savings account growing 30 years idea isn't a reality for me because I would regularly be using whatever I put into the account. I am not clear on what is covered under it vs. what I would have to dip into the account for.
     

  7. brokencycle

    brokencycle Stylish Dinosaur Moderator

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    Most OTC medicines are eligible to use HSA dollars but require a prescription anyway. All doctors visits/deductibles/copays/prescription drugs can use HSA dollars.
     

  8. patrickBOOTH

    patrickBOOTH Stylish Dinosaur Dubiously Honored

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    I know that, what I am saying is the money I would be putting into the HSA would be continuously used so looking at this kind of account as just another savings asset is misguided. this is why I am skeptical that an HSA is better for me than my current Cadillac plan.
     

  9. stimulacra

    stimulacra Senior Member

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    The way I would approach it if I was in your shoes would be to calculate the total out-of-pocket for both plans based on your last 2-3 years of healthcare consumption and see in which scenarios you come out ahead.

    If you go the HSA route, I would contribute the max and keep it all in cash for the first year or so. For me, I target my max out of pocket to be the amount I keep in cash. Anything over that amount I can allocate for investing.

    The tax advantaged stealth retirement aspects of the HSA account strictly a bonus for me. I like it mainly because it is a Flex account without the “use-it-or-lose-it” downsides. After 2-3 years the advantages start to snowball.

    Everyone's mileage may vary and not all HSA plans are the same (currently on my third one at the same employer).
     

  10. patrickBOOTH

    patrickBOOTH Stylish Dinosaur Dubiously Honored

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    Ignoring tax savings and stealth savings vehicle my main reason for wanting to go to it is because more and more I am finding good doctors aren't taking insurance. I end up paying out of pocket and submitting claims against a high out of network deductible. I'm at the point where I am asking myself wtf am I actually paying for?
     

  11. jcman311

    jcman311 Distinguished Member

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    Piob’s palace.
     

  12. Piobaire

    Piobaire Not left of center?

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    So I finally came up with a way around the IRS's pro-rata and IRA aggregation rules. Form my own shell company and start a 401(k) that allows IRA rollovers. Roll all of our current IRAs into it and then there's no corpus that impacts backdoor Roths. I'm just not sure what the cost would be and if I want to go to that bother for little more than 100k in contributions over the next decade.
     

  13. jbarwick

    jbarwick Distinguished Member

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    Where are you guys sticking your "Emergency" cash? I am thinking of opening a Marcus savings account at Goldman as it is currently paying 2.25% vs. my shitty bank of 0.01%.

    To add to my shitty bank woes, I have to go to a branch to fix one of their issues. We set recurring transfers that go to savings. When the system was upgraded we lost the ability to adjust/cancel those recurring amounts. Let's just say this caused some stress as our cash kept getting depleted quicker than I thought.
     

  14. stimulacra

    stimulacra Senior Member

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    Heard good things about Ally bank (online only). Pays 2.20% for savings and up to 2.75% for a 12 month CD.
     

  15. jcman311

    jcman311 Distinguished Member

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    Second for Ally. We have accounts with them and Capital One. All online and not a single issue so far (4+ years)
     

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