Help me plan my retirement

[OldShooter]

Quote:

Originally Posted by sourcream I am on w-2 but a IT contractor to a bank. I do have LLC but they will cut all taxes and i will get a paycheck in my personal bank account not in LLC. so, am I self employed?

My guess is that you are employed by a help agency that supplies contract employees to the bank. If so, the bank pays the agency an hourly rate and considers you to be a "contractor." But you are actually employed by the agency as a regular W-2 employee. My company use to do this quite a bit; we would often send a candidate new employee to an agency and "hire" the employee from the agency for a couple of months. My strategy was "try before you buy." Other companies have different approaches. 3M used to have a sort of "circles of defense" strategy where there was a layer of part-time W-2 employees, then a next layer of contractors, then finally the regular 3M W-2 employees. In a downturn they hoped to be able to shed enough people from the first two layers that their "real" employees would be safe. Another common strategy is to staff a big project using contractors, then RIF them when the project is over.

If in fact you are hired by an agency then "rented" to the bank, any 401K or other opportunities you may have will come from the agency and not the bank. And, you are not "self-employed." To the IRS you are just a guy with a job -- an employee of the agency.

But on this matter as in most, an ounce of facts trumps a barrel of internet theories. Find out from whomever cuts that W-2 what your legal relationship is. Ask for it in writing. They, or other agency employees, should also be able to tell you what your retirement savings options. are.

[sourcream]

Quote:

Originally Posted by SumDay You asked if you should get a Financial Advisor. If you decide to do that, I'd recommend one who won't harass you to manage your assets. You just need some guidance on how much to save, and where, and how to mange a HSA with a high-deductible health care plan. I'd suggest you find a FEE ONLY planner and sit down with them for a couple of hours. This was recommended to me from folks here on this board, and has saved us a boatload of money. It's given me confidence to manage our portfolio, with just an tune-up from her every couple of years. I found ours here: https://www.napfa.org/ Feel free to check back in here if you have questions about what they're trying to convince you to do. Managing your money is a great deal FOR THEM. Advising you on how to manage your money is a great deal FOR YOU. JMHO, of course.

any idea how much do they charge?

[sourcream]

how do you create w-4 so that maximum tax is not withheld?

I have created this pdf on IRS site for withholding after using their tool but how to translate it to w-4 to give it to my employer?

https://drive.google.com/file/d/1PP7...ew?usp=sharing

[sourcream]

Quote:

Originally Posted by pacergal What is your current spend/budget? Oldshooter has listed some good books--enjoy reading and learning from them! I would max out pre tax retirement limits, then save post tax as much as you can, in whatever way you can. I would save in a low cost, broad based index fund(s) rather than individual stocks. Allow yourself some fun, but avoid lifestyle creep as you get raises. I am glad your health issues are improved.

Max 2k per month as of now

[mickeyd]

Quote:

Originally Posted by sourcream and how is Vanguard? I am working to sign up for Vanguard digital advisor.

I have invested with VG for 15+ years and can envision much further joy and excitement with them If you love low cost, VG is for you.

[sourcream]

Quote:

Originally Posted by mickeyd I have invested with VG for 15+ years and can envision much further joy and excitement with them If you love low cost, VG is for you.

I tried opening account with them and they said they could not verify my identity and asking me to mail full application with proof of identity. Now that could take days!

[cnocmmz]

Quote:

Originally Posted by DrRoy Live as cheaply as you can, but not so much that you never have any fun.

I agree with most of what has been said. Eat Rice and beans (figure of speech) and don't forget to have some fun along the way. In 20 years or so you will be in good shape. Things will happen along the way, i.e if you remarry and/or have children. Biggest advice is to not let $$$$ clould your judgments in life. Be smart, thirty and happy. Believe it or not, you can have all three! :-)
I wish you all the best on your journey, and, for a lot of us here, if we were 41 years old again....Well you know the rest

[sourcream]

Quote:

Originally Posted by cnocmmz I agree with most of what has been said. Eat Rice and beans (figure of speech) and don't forget to have some fun along the way. In 20 years or so you will be in good shape. Things will happen along the way, i.e if you remarry and/or have children. Biggest advice is to not let $$$$ clould your judgments in life. Be smart, thirty and happy. Believe it or not, you can have all three! :-) I wish you all the best on your journey, and, for a lot of us here, if we were 41 years old again....Well you know the rest

Thanks

[sourcream]

bad news. My start date at new job is unknown as bank just put a hiring freeze. ;(
Expectation is that I will start with them when it lifts but no ETA for it.