> stash your money under your mattress like grandma taught you

This is, unfortunately, the wrong conclusion to draw from this experience.

First, the charge was not waived. You were provided a provisional credit or temporary removal of the charges while an "investigation" can be performed.

Sometimes these "investigations" are cursory at best (at least initially) and it seems that many of the bigger banks do tend to rule against the customer (again, at least initially).

Often a reason is provided. Often you are allowed to contest the decision.

It is at this point that you may be asked to submit further documentation. This may include an affidavit attesting that the charges were fraudulent. This may include a copy of a police report.

If all that fails to result in a satisfactory conclusion, then moving to government regulatory agencies may be considered. This would include the CFPB.

As to stashing money, "under your mattress" will lead to financial inefficiency.

Instead, you should be following the Prime Directive.

• https://www.reddit.com/r/personalfinance/wiki/commontopics

Have you already hit the max or on track to hit the max on all of your available tax advantaged space?

Have you read the Prime Directive? Have you seen the Flow Chart?

• https://www.reddit.com//r/personalfinance/wiki/commontopics

Once you've done all that...

u/billthecatt has arguably the best answer to this question linked and pasted below:

• https://reddit.com/r/personalfinance/comments/ub71n3/how_to_set_up_an_investment_account_for_my_kid/i629d25

Typical kid options:

529 - Great for college/education, but not all kids go to college/private schools, etc. More Details here: https://old.reddit.com/r/personalfinance/comments/mq0rjb/information_about_college_529_savings_plans/

UTMA (Custodial) - Invest on behalf of the child, Pros - lower taxes (assuming amounts don't get too high, see below), fewer restrictions on usage than 529. Cons - Is the child's money, so no takebacks. Minor takes full control at the age of termination (varies by state, typically 18 to 21). Also, will reduce/impact financial aid for college. You should tax gain harvest this type of account (realize gains periodically, while in the 0% tax bracket).

IRA (Roth/Traditional-Custodial) - Cons: Requires earned income, which most minors don't have or have much of.

Normal investment account in your name - Cons: Probably higher taxes than UTMA, Pros - you keep control

HYSA - Pros: Won't "lose" nominal value, low risk Cons: May lose out to inflation.

CD - Pros: Like HYSA, but with guaranteed returns over investment period. Cons: May lose out to inflation.

I-Bonds: Currently high-yielding bonds that can be purchased in accounts for minors: (up to $10k/year; interest changes every 6 months) /r/personalfinance/comments/qprqpy/ibond_questions_answered/

The first 4 options (529, UTMA, IRA, investment account) are account types that allow for investing based on your time horizon. If your child is young, a more aggressive investment mix may make sense for you (Stock ETFs/funds), and you may want to shift to a more conservative mix over time, depending on your goals for your child(ren).

More information:

UTMA Kiddie Tax Info: https://www.marketwatch.com/story/the-kiddie-tax-is-getting-easier-and-maybe-cheaper-under-the-new-tax-law-2018-05-24

UTMA Taxes: In general, in 2020 the first $1,100 worth of a child's unearned income is tax-free. The next $1,100 is taxed at the child's income tax rate for 2020. Anything above $2,200, however, is taxed at the marginal tax rate of the parent(s), which usually is higher than the child's rate.

Overfunding a 529 isn't so bad: /r/financialindependence/comments/hqexle/oversaving_in_a_529_is_a_much_smaller_problem/

Keep note that only the gains portion is penalized and taxed.

• https://old.reddit.com/r/financialindependence/comments/hqexle/oversaving_in_a_529_is_a_much_smaller_problem/

Personally, I'll be looking into taking a culinary class in France (or similar) if I can't figure out how to use up the rest of the 529 funds.

You can set the beneficiary of your deed to whoever/whatever you want.

You can also set beneficiaries on your bank/brokerage accounts.

• https://legacy.humanesociety.org/beneficiary-designations

Have you already hit the max or on track to hit the max on all of your available tax advantaged space?

Have you read the Prime Directive? Have you seen the Flow Chart?

• https://www.reddit.com//r/personalfinance/wiki/commontopics

Once you've done all that...

u/billthecatt has arguably the best answer to this question linked and pasted below:

• https://reddit.com/r/personalfinance/comments/ub71n3/how_to_set_up_an_investment_account_for_my_kid/i629d25

Typical kid options:

529 - Great for college/education, but not all kids go to college/private schools, etc. More Details here: https://old.reddit.com/r/personalfinance/comments/mq0rjb/information_about_college_529_savings_plans/

UTMA (Custodial) - Invest on behalf of the child, Pros - lower taxes (assuming amounts don't get too high, see below), fewer restrictions on usage than 529. Cons - Is the child's money, so no takebacks. Minor takes full control at the age of termination (varies by state, typically 18 to 21). Also, will reduce/impact financial aid for college. You should tax gain harvest this type of account (realize gains periodically, while in the 0% tax bracket).

IRA (Roth/Traditional-Custodial) - Cons: Requires earned income, which most minors don't have or have much of.

Normal investment account in your name - Cons: Probably higher taxes than UTMA, Pros - you keep control

HYSA - Pros: Won't "lose" nominal value, low risk Cons: May lose out to inflation.

CD - Pros: Like HYSA, but with guaranteed returns over investment period. Cons: May lose out to inflation.

I-Bonds: Currently high-yielding bonds that can be purchased in accounts for minors: (up to $10k/year; interest changes every 6 months) /r/personalfinance/comments/qprqpy/ibond_questions_answered/

The first 4 options (529, UTMA, IRA, investment account) are account types that allow for investing based on your time horizon. If your child is young, a more aggressive investment mix may make sense for you (Stock ETFs/funds), and you may want to shift to a more conservative mix over time, depending on your goals for your child(ren).

More information:

UTMA Kiddie Tax Info: https://www.marketwatch.com/story/the-kiddie-tax-is-getting-easier-and-maybe-cheaper-under-the-new-tax-law-2018-05-24

UTMA Taxes: In general, in 2020 the first $1,100 worth of a child's unearned income is tax-free. The next $1,100 is taxed at the child's income tax rate for 2020. Anything above $2,200, however, is taxed at the marginal tax rate of the parent(s), which usually is higher than the child's rate.

Overfunding a 529 isn't so bad: /r/financialindependence/comments/hqexle/oversaving_in_a_529_is_a_much_smaller_problem/

Perhaps you would benefit from some good reading material.

Read this for everything you need to know about Backdoor Roth and Form 8606:

• https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/

Read this list of common screwups and solutions with respect to backdoor Roth. Beware of Screwup #5.

• https://www.whitecoatinvestor.com/fix-backdoor-roth-ira-screw-ups/

That won't matter one single bit.

Here's some reading for you:

• https://thefinancebuff.com/how-to-rollover-an-hsa-on-your-own-and-avoid-trustee-transfer-fee.html

Depends on what you're talking about.

But generally untrue.

Just like bank loyalty doesn't really matter.

There exists products where you deposit a certain sum of money to collateralize a loan. But that is unlikely what you are referring to.

You have a pre-existing Traditional IRA?

Or do you have a pre-existing Roth IRA?

It's the presence of a pre-existing Traditional IRA (sourced from deductible contributions) that presents an issue. Having a pre-existing Roth IRA doesn't matter.

If you're at a single employer for the entire year, most payrolls will cut off their employees automatically at the max.

Speak to your HR for confirmation.

> I expect to move into a higher tax bracket as I get older.

A common mistake I observe is that "get older" may be in reference to "working life."

The proper analysis should be tax rate now vs tax rate at disbursal. For most people, disbursal is when they are not just older, but also retired. And for most people, retired means low/no income.

Why?

Because retired.

If you're still working when you're old and in a high tax bracket, do you need to be disbursing your retirement funds? Most likely you'd leave them alone until you stop working.

> $6.5k would only ding me maybe 2-3 months of expenses. I still have the $10k+ worth of I-bonds as last resort if my life really went to shit after 10 months lol

Fine.

As long as you acknowledge that you have a plan or are willing to accept a smaller emergency fund for a period of time.

Perhaps it should also prompt you to re-evaluate whether or not you actually desire a 12 month EF.

> I’ve been listening and reading articles, books, and podcasts to understand that Lump Sum is best in the long run. I understand it’s not by much that’s lump sum is better than DCA, but doing it monthly or weekly would it feel like I’m timing the market. That’s a psychological issue that would mentally kill me if I kept seeing the market go up or down and then have 2nd thoughts. I’d like to keep emotions out if I can.

Investing as the money comes available is a reasonable approach too. (ie Set auto-investments to occur every payday) This is often mistaken to be DCA, but it is not. DCA involves intentionally holding cash and avoiding investing until a defined time period.

> I wanted to know if it would be smart to withdraw the funds from my 401(k) to put towards my emergency fund and speed that process up

Unless you like lighting money on fire (~$160 for you), this is always going to be the wrong answer.

> or if I should treat the account like it doesn't exist until I reach a point where I can safely contribute to the account again.

Keep it invested in the 401k.

Or roll it over to new employer 401k.

Or roll it over to an IRA at a brokerage of your choice (ie Fidelity/Vanguard/Schwab).

Keep it within the confines of a Tax Advantaged Account (ie 401k/IRA).

Keep it invested.

What analysis have you performed to conclude that going completely Roth 401k would be better for you over Traditional 401k?

What's your plan if you experience an emergency before the EF is able to be replenished?

What about maintain the EF as is and then contribute to the Roth IRA over time? (as opposed to the other way around)

You can contribute the full thing in one day or you can spread it out. "Too much" is if you contribute so much that you don't have enough to pay for your housing/food/bills/etc.

Fidelity is the only answer for you.

• https://thefinancebuff.com/best-hsa-provider-for-investing-hsa-money.html

Remember the chip shortage during the pandemic?

Yes, there's a chip in your credit/debit card.

Yes, that means everything from cars to CCs are impacted.

• https://thelocalreporter.press/microchip-shortage-now-felt-in-your-wallet/
• https://www.paymentsdive.com/news/chip-shortage-drives-up-card-costs/624317/
• https://www.catalystcorp.org/learning-center/conferences/forum/news/2022/08/09/the-global-chip-shortage-is-now-the-time-to-worry

Beware of what are referred to as "Wash Sale rules"

Probably not at the Federal level as their income is low enough to not meet reporting criteria.

You can go through this tool on the IRS website:

• https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

Generally, it's advised to file even if you do not have a filing requirement. This helps prevent someone else filing a fraudulent tax return under you. Or if someone does file fraudulently, you'd be alerted sooner (rather than discovering it several years later and having to deal with multiple years of fraudulent tax returns).

> I actually asked a tax professional at LibertyTax ... it'd cost more just to do so.

Just be aware that big box shops (like LibertyTax, H&R Block, Jackson Hewett, etc) do not generally have the best reputation. It's primarily because many of their "tax professionals" are receive a cursory education consisting of a few weeks.

A true tax professional carries a CPA or EA certification. Generally this is the qualification you should be seeking when looking for a real professional. Generally, seeking out an independent CPA/EA in your area would be advised over the big box shops.

But anyways, if you're interested in a DIY approach, there are free options out there (or at least very cheap).

• https://www.reddit.com/r/personalfinance/comments/s63hyl/tax_filing_software_megathread_a_comprehensive/

Read the Investing section of the PF Wiki:

• https://www.reddit.com/r/personalfinance/wiki/index#wiki_investing

Alternatively, pick a Vanguard Target Date Index fund corresponding to your anticipated year of retirement.

It's better to take all the money intended for retirement and treat it as one portfolio.

Then set an acceptable asset allocation commensurate with your risk.

If your asset allocation calls for a cash allocation, then sure, perhaps Series I fulfills this purpose.

But it does not sound like you have decided on an asset allocation yet and have more reading to do.

Goes back to giving the money a defined purpose and timeframe.

You should decide on the purpose of the money and the timeframe.

If the use is within 12 months, Series I Bonds are inappropriate as the money is not accessible.

If the money is for use in 30 years, you really should consider investing in total market index funds.

Define the purpose.

Define the timeframe.

Give the money a purpose.

You make 300k.

Why will it take 2 months to pay off 3k of (presumably) high interest credit card debt?

Have you written out all of your expenses?

Is there any possible way to rework things a bit to get the CC paid off sooner?

> Exactly how foolish would that be?

What kind of scale would you like to provide?

Not foolish to Foolish? Very foolish.

0 (not foolish) to 10 (foolish)? 10, maybe more.

> then they should have a duty to provide access to these kinds of services.

Think about what you're saying.

You're basically saying that the government should take over custodianship and administering of 401k/IRA/etc.

We have far more pressing issues to resolve. We can't even get healthcare nationalized.

What you're realizing is that while there's no laws against it, financial institutions in the US pretty much lack a desire to take on the risk of dealing with international customers.

Risk > Benefit