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Hi Fishes, I left Infosys and wants to transfer pf to my new company- Tata Consultancy . When I logged into EPFO Portal and try to view the passbook details, it says - PASSBOOK NOT AVAILABLE. Does that mean it is an exempted trust and epfo don't have access. Can I still go ahead and raise PF transfer from my infosys account to tcs account through EPFO ?
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Damn, freelancing getting 4K weekly is awesome!
I charge 7k pw, we’re in advertising.
More of a budget question - if you’re taking in $16k per month, you may want to take a hard look at your spending if you only have 40k saved
look into solo 401k or sep IRA / simple IRA. the freelance retirement world is a bit more confusing to me, but you actually have a lot of options. a one time session with a fee only professional could help a lot (maybe you already have someone for taxes)
Is 40k 6+ months of expenses for you? If so, throw that in a HYSA getting 2% interest. That’s your emergency fund if work dries up or shit happens.
Next is your tax advantaged. If you are full time freelance, look into a self employed 401k. You’ll be able to contribute the $19k as an employee and then match when you put on your ‘employer’ hat. It’s likely going to be the best option to get money in a tax advantaged account.
You are likely over the Roth income limits but you can do what’s called a mega backdoor roth conversion. You contribute to a traditional IRA and convert to roth. Google it but it’s very common and most major brokerages providers have an easy process for it.
Fund your emergency fund first. Then the 401k. If you feel you may need to access your money easily before you retire, hit the roth limit then go back to your 401k. You can pull out Roth contributions at any time without penalty - although avoid it if you can. If you’ve still got money to invest after that throw it into a taxable brokerage account.
Within the accounts figure out your asset allocation (stocks/bonds/international/etc). Then buy low expense ratio index funds. If you don’t wanna do the research, nearly every brokerage will have target date retirement index funds. The ‘index’ is the key word there and they balance asset allocation for you and because they are indexes expense ratios should be less than 0.2%.
Then just ignore the market and keep adding money consistently every month.
Thank you so much for the advice so far! Lots to research.
Also no debt and cash isn't earning interest because I've just been sitting on it for too long.
At least put it into high interest saving account first
just started freelance life from ft so have a few 401ks etc I need to consolidate.