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2018 403B Contribution Limits Just Increased Per Irs

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It seems you and I agree on a lot. [edited out political talk about importance of contacting representatives that publicly support your position].

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Hi, Ed. Well, I don't think we really have a difference here. I totally agree about keeping a vigilant eye on the pols, including those who seem congenial, and on registering one's concerns with them via writing or calling their offices. I certainly didn't mean to imply that California is some sort of socialist utopia guided by impeccable politicians. (We've had some awful ones, including some who portray themselves as progressive tribunes of the people while stealing their communities blind.) My point was narrow: my federal reps are publicly committed to vote against the currently promoted Republican tax modification plans, they get political currency out of their public stands against Trump, and it appears to me that if this tax plan passes it will depend overwhelmingly, perhaps entirely, on the votes of Republicans. There could come a situation where the Dems compromise on some revised version and if it looks like that compromise is wrongheaded, I'll be sure to make my concerns known.

 

I confess that I'm not terribly well informed about some of the issues you raise; I'm not sure whether single payer is really workable at the state level, and in any case there is much less consensus among the California pols on that issue than on, say, preserving the state tax deduction or funding Medicaid. I do seem to remember Cory Booker voting against something that would make it legal to import ###### ###### from Canada (at lower prices for the identical ######)--I don't know what his rationale was--but I don't recall Democrats obstructing Medicare from negotiating prices, though that is (disgracefully, in my view) plausible, given the monies that come to elected officials (and their opponents) from "big pharma."

 

 

PS: Good grief, censored by the discussion board. The offending phrase rhymes with "subscription slugs."

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IMUA 808

 

If you stay in the profession the day will come when you can do it if you get regular pay raises and if you school system honors its yearly step increases. I never imagined being able to do so either but wife and me where both able to do so as we got older. It all comes down to cutting your costs in other areas and saving more each year. Everyone's circumstances are different but I truly believe if you make saving a priority, it can be done.

True, I always forget about that... Our steps were frozen for a time and we did mandatory furlough days for pay cuts to balance the states budget a few years back... which was under a Republican governor, though a Democratic one imposed leave days which amounted to the same thing. Hawaii almost always comes in last in all the cost-of-living-adjusted-for-pay polls....

 

I am making more (gross) now than I was when I started... but switching from single to family coverage for medical, and starting the 403b and then increasing contributions has kept my take-home pay pretty much the same. haha... My husband works for a big box warehouse club and our take home pay is almost the same, even though my gross pay is higher. Our union negotiated pay raise each year over the next 4 years and the first one kicks in next paycheck. I've already told my husband I'm going to put the difference toward the 403b.

 

Hawaii is pretty strongly Democratic, and I know they are opposed to the Republican plans.

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Imua808, almost no teachers can afford to max, but it sounds like you're doing everything right. I love reading your posts because I wish everybody here in OCPS (FL) would follow your lead.

 

Hi, Ed. Well, I don't think we really have a difference here.

I think you're right. Oh well, I guess we will have to agree to agree. It was interesting hearing your thoughts. Thanks for posting.

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But there is something unsettling about the ideological segregation of the country.

 

A radioactive topic for sure. Capping 401k is political suicide. So is eliminating the mortgage deduction. Has anyone mentioned privatizing Social Security ? I read this is also silently back on the table. It seems to me that everything in this bill is design to hurt people trying to survive and make it in our country. Don't like either party though . One side too extreme left. One too extreme right. We need moderate leaders. You need both wings to fly!!

 

I plan on making some calls.

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Until we address right vs. wrong, I don't have time for political arguments/preferences.

1. It is immoral that our schools are still segregated and education is rationed largely based on your parents' wealth.
2. It is immoral that tens of millions don't have insurance and tens of millions have insurance too expensive to use.
3. It is immoral that virtually all of the wealth is concentrated into the hands of the few.
4. It is immoral that millions of our children (and adults) don't have regular access to food!
5. It is immoral that so many millions are locked in cages for victimless "crimes" and then stripped of their rights when they're released.
6. It is immoral that we are in a never ending state of war and the financial burden impacts everything else we do.

 

Until we address underlying morality, I think it'll infect everything we do. For example, I think this same force works to allow advisers to act against your best interest and to allow firms on campus to trick teachers into high cost exploítative plans. Some may see all of these issues as unrelated or political, but I genuinely don't see it that way.

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Boglehead Ladygeek would have this thread locked by now! She monitors any talk of politics with an iron fist! I met her and she is a tiny gal and very sweet. Dan must have loosened up a bit, as I wrote a political post year ago, and he called me up to explain why my post was deleted.

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Dan must have loosened up a bit, as I wrote a political post year ago, and he called me up to explain why my post was deleted.

 

I understand why the forum admin might want to stop the discussions from devolving into political arguments. But in this case--where congress is discussing changes in the law that will directly and powerfully effect 403b contributions--I think banishing political arguments would be tantamount to abandoning the topic that this board exists to discuss.

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I'd actually be fine with Dan deleting my post. I definitely crossed beyond just financial talk. I see it all as interrelated and I just couldn't help myself.

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I understand why the forum admin might want to stop the discussions from devolving into political arguments. But in this case--where congress is discussing changes in the law that will directly and powerfully effect 403b contributions--I think banishing political arguments would be tantamount to abandoning the topic that this board exists to discuss.

If it has to do with retirement issues it should be allowed. What isn't political these days? Regardless , I love Ed's Fire and Passion. He brings so much excitement to this board .

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Political discussions are pointless because the discussions do not and never will affect what I can do:

 

1. I vote and that's all I can do politically. (I chose to vote instead of not voting).

 

2. My retirement plan is something I can do too. IMO, there is no political, economic, or social decision that will ever change my plan. My plan for somebody my age and financial situation who needs income is 30/70 allocation, extremely low costs, broadly diversified in the core asset classes (small, med, large cap, international, cash, and a variety of bonds including TIAA Traditional annuity paying 3.0%, all liquid) and stay the course no matter what happens out there.

 

The only exception might be a natural disaster when my house might be wiped out by an earthquake when I would need to take more money out of my retirement, but that's it.

 

I get more excitement learning new things such as ballroom dancing lessons, meditating, getting pampered such as a massage once a week, attending my bereavement group, giving talks about my cancer experience to other cancer survivors, and investing for my LAUSD colleagues, revising my book, being the Treasurer of a 250 member organization, meeting new single seniors (OMG! single seniors in their 60s to 90s act no different than middle school students!).

 

Steve

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Hey All,

 

As Steve points out we do want to avoid political discussion that strays into opinion. If we are stating factually what one political party or the other is doing or advocating I think that is fine. We just have make sure we avoid emotion and accusation. Ed, feel free to edit your post(s) that you think may be too political.

 

Thanks again for everyone's participation here. - Dan

 

p.s. I am with Steve in advocating for voting. I think we can also vote with our dollars. That is who we choose to do business with.

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Dan, I edited out things I thought were maybe too political or irrelevant. Feel free to edit further if you see things differently.

 

I couldn't more strongly endorse the idea of voting with your money. If done collectively it is incredibly powerful.

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If you mean voting with our money by investing our money only with TIAA and/or Vanguard (and possibly Fidelity) and away from the big banks, expensive brokerage firms and broker/dealer advisers, I agree 100%.

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