Check Essential

After what happened to the stock market this week, I'm thinking Powerball tickets might be a better option.

hammer189

The web site doesn't take into account how much you have/will contribute to your 401k or HSA before the profit sharing money is deposited. You have to guess and not go over or there might be problems, especially with the HSA. This is the main problem with the web site.

FL370esq

I personally don't buy mutual funds outside of a retirement plan because of the capital gains tax issues that can present themselves. Numerous times fund managers have cashed-in on upside swings and they simply pass through the capital gains of the fund to you which could generate an unexpectedly large tax event (based upon the size of your holding of course) and the NAV of the fund is reduced by that gain so, in the end, you are where you started but subject to possibly both long term and short term gains.

I have invested in several big name (but boring) common stocks through their dividend reinvestment program and made my own mutual fund of sorts where I can control the capital gains exposure.

Good luck - it is a nice problem to have.

Check Essential

In past years Delta/Fidelity have successfully administered the 401k contributions from profit sharing checks to cut off contributions when you reached the limit. Even if you elected a percentage that would have taken you over the limit.

The option to contribute to the HSA is new this year. Hopefully that will work in a similar fashion and they will also be able to cut off those contributions before you would go over the limit based on your election.

Its hard to say what will happen because this website is a new thing also. Its always been done through the Fidelity website in the past.

I expect they will get it right. The programming shouldn't be that difficult. They know the limits. Allow contributions to the limits and pay the rest in cash. They do it all year long with our 415 limits. Shouldn't make any difference whether you hit the limit in February or November.

SawF16

Looking at the fine print on the allocation page, they inform you that IF you make ANY contribution from the profit sharing to the HSA any further deductions from your regular pay will be halted until April, when they will reconcile balances and ensure you don't go over. If your contributions from paycheck and PS have already set you to go over in Feb, I'd presume the company has some recourse to correct it at that point as well.

The company definitely has the limit set correctly on the 401k side, but it is odd that in previous years you could set PS to whatever percentage you desired (including 100%) even if it would take you over the contribution limit, and then contributions would stop, whereas this year you have to make a guess that puts you as close as possible without going over.

BobZ

Remember to take into account the company 401 15% kick in on the ps payout.

DYODD.....but one school of thought on retirement security is to have fractional income streams. Part from savings/investments.....part from hard assets...... part annuitized....and part earned income.

In this job if you are socking away at or near the 415c limit every year.....I would suggest you are more than covering the reasonable income from savings component of retirement.

hard assets..... income property/business assets. Historically a good inflation hedge... and in the right circumstances an additional tax shelter.

Annuitized....ssi/and any military or private frozen/terminated pension. Probably the most suspect component in sustainability.

Earned income.... retire and do nothing is a recipe for an early demise. I expect to do be doing something for a few bucks.... and mental health.

Of course if you are in line to inherit a wad-o-cash..... forgetaboutit...

full of luv

How can they have a PS payout notice when the company hasn't announced 4th quarter earnings yet?

Gunfighter

My favorite is income producing real estate. You get cash flow from the property, depreciation to offset the income and long term capital gains when you sell. If you are willing to take a little more risk, you can leverage your investment and finance a portion of the purchase. Stay away from speculation and invest for cash flow if you are using any kind of leverage. DYODD

If that isn't your game, look at ETFs, tax efficient mutual funds or individual stocks. Berkshire Hathaway shares are a good choice to own outside of a retirement account. It is a well diversified company that is similar to a mutual fund, but it doesn't generate taxable income like an actively traded mutual fund. If you hold it long enough you are taxed at long term capital gains rate.

If you are in your 40s, debt free and already have a good start on your 401k, buy the Ferarri you've always wanted. 53k per year into retirement is plenty if you have two decades to go before you need it.

forgot to bid

I was wondering that too.

Big E 757

The quarter is closed out, they have a good idea of where our earnings are going to be. I would bet, though, that they estimated 4Q earnings using the street estimates so as not to give anything away. It could be a little higher. It could be a little lower.