posted in Asklemmy
40 year olds, what financial advice would you have for a 30 year old?
50 and older, I’m sorry, but in my personal experience, your advice has been a little out of date.
Replying to @StarvingMartist@sh.itjust.works
HSA > 401k > Roth or backdoor your Ira. High yield savings changes every time you can get an extra half point of interest.
Do not, I repeat do not touch your fucking hsa unless you absolutely must and are dead dying on the ground. Take out a small loan before you touch your hsa. A little interest will be cheap as fuck compared to a years loss of hsa funds.
Look at how much fees cost. They are sneaky. Vanguard is the standard with low cost target date and index funds.
do not fuck with day trading unless you feel like gambling
Replying to @makeshift0546@lemmy.today
WTF is an HSA or 401k? We’re not all US Americans…
Replying to @helix@feddit.org
They’re both tax advantaged accounts - meaning you don’t have to pay taxes on them in most situations.
HSA is supposed to be a Health Savings Account, but has turned into more of a retirement account. 401k is Americas sad replacement for pensions as workers need to contribute to it and so it largely only helps wealthier people.
The more general advice would be - make sure to save and invest money (preferably in ways that avoid taxes if possible).
Replying to @jacksilver@lemmy.world
Can you explain what you mean about the HSA being more of a retirement account? Can’t you only use that money on medical or health related purchases? I understand the possible tax savings through an HSA, but I don’t see how it could be a retirement account.
Replying to @foxwolf@pawb.social
After you turn 65 there is no penalty for using your HSA for non-medical purchases, you just have to pay income tax on withdrawls. This effectively turns an HSA into an IRA after you turn 65. So you can contribute pre-tax, it grows tax-free, then you can withdraw without any penalty - making it effectively just another retirement account.
https://ourtaxpartner.com/hsa-distribution-rules-after-age-65-medicare-premiums/