Based on your situation and goals, here's a tailored strategy for managing your credit cards:

1. Don't close any cards immediately:

Your oldest cards (Target Mastercard and Cap One Quicksilver) contribute significantly to your credit history length. Keeping these open is beneficial for your credit score.

2. Focus on debt repayment:

Prioritize paying off balances, especially on higher-interest cards. This will improve your credit utilization ratio and overall financial health.

3. Consider consolidating:

Look into balance transfer options to consolidate debt onto a card with a 0% intro APR, potentially saving on interest.

4. Streamline your card usage:

• Keep using the Quicksilver, Apple Card, and WF Autograph as you're doing.

• Consider using the Discover It for its rotating 5% cashback categories.

• The Cap One Savor can be good for dining and entertainment purchases.

5. Cards to potentially close later:

After paying off balances and ensuring no negative impact on your credit score, consider closing:

• Petal 2 Card

• WF Reflect

• Venmo Card

These are newer, have lower limits, and likely overlap with your other cards' benefits.

6. Timeline for limit increases:

Wait at least 6 months after paying off balances before requesting limit increases. Focus on consistent, on-time payments in the meantime.

7. Preparing for car purchase:

Continue paying down debt and maintaining on-time payments. This will improve your debt-to-income ratio and credit score, crucial for auto financing.

8. Long-term strategy:

• Keep your total credit utilization below 30% across all cards.

• Set up autopay for at least the minimum payment on all cards to avoid late payments.

• Review your credit reports annually to ensure accuracy.

Closing credit cards can temporarily lower your credit score by increasing your overall credit utilization ratio. Focus on debt repayment first, then gradually streamline your credit card portfolio as you approach your car-buying goal in 2025-2026.

First, it's important to recognize that your regret is a common feeling among many young investors. However, at 27, you're still in an excellent position to build long-term wealth through investing. Here's how to move forward:

1. Reframe your perspective: Instead of focusing on missed opportunities, consider that you've built a strong financial foundation with substantial savings and no debt. This puts you ahead of many peers.

2. Start investing now: The best time to invest was yesterday; the second-best time is today. Don't let past inaction prevent future action.

3. Create an investment plan:

   • Emergency fund: Keep 3-6 months of expenses in your HYSA (about $13,200-$26,400).
   • Retirement accounts: Maximize contributions to tax-advantaged accounts like 401(k) and Roth IRA.
   • Taxable investments: Allocate a portion of your remaining savings to a diversified investment portfolio.

4. Investment strategy:

   • Consider a simple three-fund portfolio: Total US stock market, Total International stock market, and Total Bond market index funds.
   • Start with a 90/10 or 80/20 stock/bond allocation given your age and risk tolerance.

5. Dollar-cost averaging: To address market timing concerns, invest a fixed amount regularly (e.g., monthly) rather than all at once.

6. Educate yourself: Read books on index investing (e.g., “The Simple Path to Wealth” by JL Collins) to build confidence in your strategy.

7. Prepare for potential layoff: Keep a larger emergency fund until your job situation stabilizes.

8. Automate investments: Set up automatic transfers to your investment accounts to maintain discipline.

9. Regular review: Assess your investment strategy annually and rebalance as needed.

10. Professional advice: Consider consulting a fee-only financial advisor for personalized guidance.

Remember, successful investing is about consistency and time in the market. By starting now and sticking to a solid, long-term strategy, you're setting yourself up for financial success. Focus on the decades of growth ahead rather than the years behind you.

Action Plan

1. Boost Income

• Freelance Diversification: Explore fields like content writing, data analysis, or teaching online (language skills or tutoring). Platforms like Fiverr, Upwork (despite current challenges), or LinkedIn Learning could help.
• Skill-building for Transition: Dedicate time to learn high-demand, non-IT skills (e.g., digital marketing, financial planning, UX design). Free platforms like Coursera or Khan Academy can be invaluable.
• Leverage Free Days: Use 3–4 free days to pursue small, low-commitment gigs (e.g., pet sitting, transcription).

2. Optimize Spending

• Rent: While you're unwilling to downgrade, re-evaluate shared housing or co-living options to save ~$200/month.
• Food: Bulk buying and meal prep could further cut costs by 5–10%.
• Social Spending: Limit outings to twice/month; replace some with cost-free meetups (e.g., walks or home gatherings).

3. Grow Savings

• Emergency Fund: Aim to have 3–6 months' expenses in savings (~$3,800–$7,600). Prioritize this before major purchases or travel.
• Crypto Risk: Crypto can be volatile; consider reallocating some funds to safer assets like high-yield savings accounts or index funds.
• Side Hustle Allocation: Dedicate extra income to savings (70%) and personal growth (30%).

4. Long-term Growth

• Career Exploration: Use free time to intern, volunteer, or shadow in fields of interest to identify a sustainable path outside IT.
• Invest in Knowledge: Books like “The Simple Path to Wealth” by J.L. Collins and “I Will Teach You to Be Rich” by Ramit Sethi offer actionable steps. YouTube channels like Graham Stephan or Ali Abdaal can help with financial literacy.

5. Travel and Big Buys

• Start a “future goals fund” for discretionary goals (e.g., travel or large purchases). Contribute a small fixed amount monthly, starting with $50–$100.

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Tailored Recommendations

1. Short-term: Focus on increasing income through diversified gigs and reducing social expenses.

2. Mid-term: Build an emergency fund and acquire skills for career transition.

3. Long-term: Align financial habits with future aspirations (travel, career freedom, and financial independence).

1. Employer's Limited Adjustment: Your employer's statement is correct. For prior year overpayments, they can only adjust Medicare and Social Security taxes on the W-2, not federal income tax withholding.

2. Medicare Tax Adjustment: The $680.86 reduction in Medicare tax (box 6) is correct, as it represents 1.45% of the $50k bonus repayment.

3. Social Security Tax: No adjustment was made for Social Security tax, likely because you exceeded the 2021 wage base of $142,800.

4. Federal Income Tax Impact: While not reflected on the W-2, you're entitled to recover the federal income tax paid on the $50k bonus.

5. Determining Refund Amount:

   • Review your 2021 return to find your marginal tax rate.
   • Multiply $50k by your marginal rate to estimate federal tax overpayment.
   • Add this to the $680.86 Medicare tax adjustment.

6. Filing Amended Return:

   • Use Form 1040-X to amend your 2021 return.
   • Reduce your 2021 income by $50k.
   • Recalculate your tax liability.
   • Claim a refund for the difference in tax plus the $680.86 Medicare adjustment.

7. Documentation: Keep copies of original and amended W-2s, proof of bonus repayment, and employer correspondence.

8. State Tax Considerations: Check if state taxes were affected and file a state amended return if necessary.

9. Timing: File your amended return within 3 years of the original filing date or 2 years from the date you paid the tax, whichever is later.

These points summarize the essential steps and considerations for addressing your situation effectively. 

Pension checks are typically distributed on a regular schedule based on the terms of the pension plan, not political events. Your father's pension likely started due to reaching retirement age or years of service requirements, coinciding with the 2016 election timing by chance. Government pensions, including those for police officers, are managed by state or local pension systems, not the federal government.

Detailed Information for references:

1. Pension Eligibility:

Police pensions usually become payable when an officer reaches a certain age (often 50-55) and/or completes a specific number of years of service (typically 20-25 years). Your father's pension likely started because he met these criteria, not due to the election.

2. Pension Management:

State and local governments manage their own pension systems. Arizona's public safety personnel retirement system (PSPRS) would handle your father's pension, not the federal government or the president.

3. Distribution Schedule:

Pension checks are typically distributed monthly on a fixed schedule. The start date is determined by when the retiree becomes eligible and completes the necessary paperwork, not by political events.

4. Pension Funding:

Pensions are funded through a combination of employee contributions, employer contributions, and investment returns over many years. They're not suddenly “released” by a new administration.

5. Federal vs. State Control:

Police pensions are typically managed at the state or local level, so federal elections generally don't directly impact their distribution.

6. Pension Portability:

If your father moved between states, his Arizona pension would likely continue to be paid by Arizona's system, regardless of his current residence.

7. Timing Coincidence:

The timing of your father's first pension check coinciding with the 2016 election was likely a coincidence, not a causal relationship.

8. Pension Information:

Your father can contact the Arizona PSPRS for specific details about his pension, including when and why payments began.

In conclusion, while the timing may have seemed significant to your father, pension payments are based on predetermined eligibility criteria and schedules, not on political events or presidential actions. The coincidence of timing does not imply causation in this case.

Based on your situation, an HSA-eligible HDHP is likely the better choice for you, given:

1. Your age and health: As a healthy person in your late 20s, you're less likely to need frequent medical care.

2. High income: At $200k, you can afford to pay out-of-pocket expenses and maximize HSA contributions.

3. Tax advantages: With your high income, the triple tax advantage of an HSA is particularly valuable.

4. Long-term savings: The ability to invest HSA funds for future use is a significant benefit.

5. Minimal premium difference: Since both plans are covered by your company, you're not losing money on higher premiums for the HDHP.

The main trade-off is higher out-of-pocket costs for immediate medical needs. However, the long-term benefits of the HSA likely outweigh this, especially given your financial situation.Key considerations:

• Ensure you have enough cash flow to cover the higher deductible if needed.
• If you proceed with the surgery, you'll hit the deductible, but the tax savings and long-term investment potential of the HSA could still make it worthwhile.
• The PPO might be preferable only if you anticipate multiple moderate medical expenses in the coming year.

Based on your situation, here are some actionable steps to potentially lower your tax burden and optimize your finances:

1. Increase 401(k) contributions:

Consider raising your 401(k) contribution from 6% to at least 10-15%. This reduces your taxable income and boosts retirement savings. The 2023 limit is $22,500 for those under 50.

2. Open a Health Savings Account (HSA):

If eligible with a high-deductible health plan, contribute to an HSA. Contributions are tax-deductible and grow tax-free for medical expenses.

3. Contribute to a Traditional IRA:

If eligible, contribute to a Traditional IRA for additional tax deductions. The 2023 limit is $6,500 for those under 50.

4. Review your W-4:

Ensure your tax withholding is accurate. Adjust allowances if you're consistently getting large refunds.

5. Take advantage of job-related deductions:

Keep track of any unreimbursed job expenses that might be tax-deductible.

6. Optimize your ESPP:

While the 15% ESPP contribution is post-tax, it can still be beneficial. Consider selling some shares immediately to lock in the discount, while holding others for potential long-term capital gains treatment.

7. Start budgeting:

Track your expenses and create a budget to maximize savings and investment opportunities.

8. Build an emergency fund:

Aim for 3-6 months of expenses in a high-yield savings account.

9. Consider additional certifications:

Look into tech certifications that could boost your value and income in your field.

10. Review your benefits package:

Ensure you're taking full advantage of any employer-provided benefits like life insurance, disability insurance, or tuition reimbursement.

Remember, while reducing taxes is important, focus on overall financial health and long-term wealth building. Consult with a tax professional for personalized advice based on your specific situation.

As an 18-year-old college student with a part-time job, you're in a fantastic position to start investing for your future. Here’s a structured approach to help you make the most of your $1,000 monthly income and build a solid financial foundation.

Investment Strategies for College Students

1. Establish an Emergency Fund

• High-Yield Savings Account: Start by setting aside a portion of your income in a high-yield savings account. This fund should cover 3-6 months of living expenses for emergencies. Since you have minimal expenses, even $500-$1,000 can provide a good cushion.

2. Open a Roth IRA

• Tax Advantages: Consider opening a Roth IRA to take advantage of tax-free growth on your investments. Contributions can be withdrawn at any time without penalties, making it a flexible option for young investors.
• Regular Contributions: Aim to contribute regularly, even if it’s just $50-$100 per month. This builds good habits and allows you to take advantage of compound interest over time12.

3. Invest in Low-Cost Index Funds or ETFs

• Diversification: Use your Roth IRA or a taxable brokerage account to invest in low-cost index funds or exchange-traded funds (ETFs). These funds provide exposure to a broad market without the need for extensive research on individual stocks13.
• Dollar-Cost Averaging: By investing consistently each month, you can benefit from dollar-cost averaging, which reduces the impact of market volatility on your investments1.

4. Consider a Taxable Brokerage Account

• If you want more flexibility or wish to invest beyond retirement accounts, open a taxable brokerage account. This allows you to invest in stocks, bonds, and mutual funds without contribution limits24.
• Micro-Investing Apps: You might also explore micro-investing apps that allow you to invest small amounts regularly, making it easier to start with limited funds.

5. Educate Yourself

• Investment Knowledge: Spend time learning about investing through books, online courses, and reputable financial websites. Understanding market trends and investment strategies will empower you to make informed decisions14.
• Networking: Engage with peers or mentors who are knowledgeable about investing. They can provide insights and guidance as you navigate your investment journey.

6. Avoid High-Risk Investments

• While it might be tempting to chase high returns, avoid risky investments like options trading or penny stocks until you have more experience and knowledge. Focus on building a stable portfolio first5.

Conclusion

Starting your investment journey early can significantly impact your financial future. By establishing an emergency fund, contributing to a Roth IRA, investing in diversified funds, and continuously educating yourself about personal finance and investing, you'll set yourself up for long-term success. Remember that consistency is key; even small contributions can grow substantially over time due to the power of compound interest.

Moving a portion of your savings into a Roth IRA can be a strategic decision, especially considering the tax advantages it offers. Let's address your questions based on the rules surrounding Roth IRAs and the potential benefits and drawbacks of this approach.

1. Understanding the Rules

Your understanding of the Roth IRA withdrawal rules is correct:

• Contributions Withdrawal: You can withdraw your contributions to a Roth IRA at any time, tax-free and penalty-free. This flexibility is one of the key advantages of a Roth IRA125.
• Earnings Withdrawal: To withdraw earnings without penalties, you must be at least 59½ years old and have held the account for at least five years. If you withdraw earnings before meeting these conditions, you may incur taxes and a 10% penalty unless you qualify for specific exceptions (e.g., first-time home purchase) 123.

2. Effort vs. Reward

Pros:

• Tax-Free Growth: By moving your savings into a Roth IRA, your investments can grow tax-free, which is beneficial in the long run.
• Access to Contributions: The ability to withdraw contributions without penalties provides liquidity if you need access to funds12.

Cons:

• Contribution Limits: The annual contribution limit for Roth IRAs is relatively low ($6,500 for those under 50 in 2024). If your savings exceed this amount, it may not significantly impact your overall financial strategy4.
• Investment Options: Depending on the financial institution, investment options within a Roth IRA might be more limited compared to other accounts.

3. Ease of Withdrawal

Withdrawing contributions from a Roth IRA is generally straightforward:

• You can request a withdrawal online or through customer service at your financial institution. There are typically no forms or lengthy processes involved for withdrawing contributions25.
• However, ensure that you keep track of how much you’ve contributed versus how much you’ve withdrawn to avoid confusion regarding your remaining balance and any potential tax implications on earnings.

Conclusion

Putting savings into a Roth IRA can be an effective way to grow your money tax-free while maintaining access to your contributions if needed. Given the relatively low contribution limits, consider whether this aligns with your overall financial goals and liquidity needs. If you're primarily looking for tax advantages on growth and have sufficient funds outside the Roth for immediate needs, this strategy could be beneficial. However, weigh this against other investment options that may offer higher returns or greater flexibility based on your financial situation.

How am I doing financially? And what can I do better? 30 year old in the US.

Other

I needed some advice on how I’m doing financially and what I can do to achieve better long term financial health. I live in the US in a high cost area.

I started a new job making $170k (crappy benefits, no 401k match, stocks or insurance). It’s my first job out of grad school. Here are some stats.

Debt: 0 Savings: $13k Investments: $8k

I own my own car, and currently rent and my expenses come to a total of 4K per month (supporting my parents, health insurance, car insurance, rent, travel, gym, food and partner expenses – they don’t work but pay for their food and rent, but I take care of leisure related expenses which come to about 500 per month). I aim to save about 4k per month.

My goal is to bring my savings to $100k in 2 years and then start thinking of buying a house. Parents are in a different country and come from a humble background.

What can I do better? I hear about people my age with millions and that makes me think little about myself. Also, I’m very happy that I went to grad school – but it has certainly given me a financial setback compared to my peers. Part of me wants to go out and enjoy my life. Another part of me wants to be very conservative with my spending and get very serious about savings and investing so I can get to a million before I’m 40.