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yea I don't have kids and don't care about helping relatives (hah, suck it relatives) and will be on my wife's health insurance, so no HSA (and no need for one) can you max both Roth IRA and traditional IRA? And then I guess plow into an ETF after that?
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Jun 8, 2021 17:34
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Owlspiracy posted:can you max both Roth IRA and traditional IRA? It's one contribution pool: $6000 across both accounts combined.
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Jun 8, 2021 17:37
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In case you're not clear on this, both you and your spouse can contribute $6k to an IRA, even if one of you has no earned income (that is: all the IRA contributions have to be from earned income, but it can come from either spouse). If your goal is $15k between you, that gets you closer.
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Jun 8, 2021 17:59
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Leperflesh posted:In case you're not clear on this, both you and your spouse can contribute $6k to an IRA, even if one of you has no earned income (that is: all the IRA contributions have to be from earned income, but it can come from either spouse). If your goal is $15k between you, that gets you closer. Just to be clear, can I pay into an account under her name? She has better options for retirement from her job than IRAs
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Jun 8, 2021 18:09
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Owlspiracy posted:Just to be clear, can I pay into an account under her name? She has better options for retirement from her job than IRAs No. 401k/403b/whatever employer plans must be contributed to via payroll deduction, so it must come out of her paycheck. You can't make ad hoc contributions to that type of account. Now of course if you are a married couple with fully joint finances, you could ramp up her paycheck deduction to fill up more of that account space, and cover more other expenses out of your paycheck.
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Jun 8, 2021 18:40
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When your wife opens her IRA, which is separate from her employer-sponsored retirement accounts, she can transfer money into the account from a bank account that you share, or send a check or whatever. Basically you can just hand her the six k however you want. This isn't some kind of loophole, either, it's explicitly allowed in the tax code. https://www.investopedia.com/retirement/making-spousal-ira-contributions/ You need to be earning enough to cover both accounts with earned income, and you need to file jointly. Income limits for eligibility for roth and trad IRAs still apply. Just to be 100% clear. Anyone with earned income and under age 70 1/2 making less than the income cap, can contribute to an IRA, regardless of whether or not they're participating in an employer-sponsored plan like a 401(k) (exception: a SEP IRA is an employer-contribution to an IRA, it doesn't let you have two IRAs per person). The contribution limits are separate from those employer plans. Leperflesh fucked around with this message at 19:13 on Jun 8, 2021 |
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Jun 8, 2021 19:09
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Leperflesh posted:When your wife opens her IRA, which is separate from her employer-sponsored retirement accounts, she can transfer money into the account from a bank account that you share, or send a check or whatever. Basically you can just hand her the six k however you want. This isn't some kind of loophole, either, it's explicitly allowed in the tax code. OK that makes sense and good to know! And yea to previous posts - I'm talking about non-employer sponsored plans. My wife's current role offers her a 401k with matching up to 12%, so thats where her payroll deduction go. My new role would offer nothing for a few years so I'd be entirely on my own in terms of investments, and would be investing probably around 15k post tax from earned income. If it's 6k into my IRA and "her" IRA (and our money is shared... so its really our money, all pooled together) that would go a long way towards that, and I can throw the remaining 3k into meme stocks and ETFs.
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Jun 8, 2021 19:49
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Owlspiracy posted:OK that makes sense and good to know! And yea to previous posts - I'm talking about non-employer sponsored plans. My wife's current role offers her a 401k with matching up to 12%, so thats where her payroll deduction go. My new role would offer nothing for a few years so I'd be entirely on my own in terms of investments, and would be investing probably around 15k post tax from earned income. If it's 6k into my IRA and "her" IRA (and our money is shared... so its really our money, all pooled together) that would go a long way towards that, and I can throw the remaining 3k into meme stocks and ETFs. If she isn't hitting the $19,500 cap in her 401k your $3k excess is likely best stored there by way of a increased salary deduction on her part. Her 401k would have to be impressively bad to outpace getting taxed over time on your earnings.
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Jun 8, 2021 19:55
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H110Hawk posted:If she isn't hitting the $19,500 cap in her 401k your $3k excess is likely best stored there by way of a increased salary deduction on her part. Her 401k would have to be impressively bad to outpace getting taxed over time on your earnings. that's also a good point - yea I can get her to up that, too
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Jun 8, 2021 20:26
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How does this thread feel about online high-yield savings accounts? I made a fairly well times exit from meme stocks and am looking to diversify into something a bit more stable? Is SmartyPig by Sallie Mae recommended? Seems easy and they appear to have the highest APY.
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Jun 8, 2021 20:50
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I keep my emergency fund in a Discover online savings, currently at 0.4%. No complaints!
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Jun 8, 2021 20:56
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Avian Pneumonia posted:How does this thread feel about online high-yield savings accounts? I made a fairly well times exit from meme stocks and am looking to diversify into something a bit more stable? Is SmartyPig by Sallie Mae recommended? Seems easy and they appear to have the highest APY. Just depends what you want to do/how much you have. If it's an emergency fund you want to get some return on, a high yield savings or money market fund is good. The yield is low but you can liquidate it immediately if you need the money. If it's money you want to invest for the future, you'll get much better returns off index funds.
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Jun 8, 2021 21:01
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Grand Fromage posted:Just depends what you want to do/how much you have. If it's an emergency fund you want to get some return on, a high yield savings or money market fund is good. The yield is low but you can liquidate it immediately if you need the money. If it's money you want to invest for the future, you'll get much better returns off index funds. Currently, money market funds are zero at best, net negative at worse. This has to do with the yield on the T-Bills which generally back them. Vanguard's money market fund has a SEC yield of 0.01% but an expense ratio of 0.11% : https://investor.vanguard.com/mutual-funds/profile/overview/vmfxx Money market funds are not a happy place to be right now.
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Jun 8, 2021 21:10
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pmchem posted:Currently, money market funds are zero at best, net negative at worse. This has to do with the yield on the T-Bills which generally back them. Vanguard's money market fund has a SEC yield of 0.01% but an expense ratio of 0.11% : Good times. Savings is the way to go I guess. Glad I posted to get corrected before I moved my emergency fund into a money market.
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Jun 8, 2021 21:14
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Avian Pneumonia posted:How does this thread feel about online high-yield savings accounts? I made a fairly well times exit from meme stocks and am looking to diversify into something a bit more stable? Is SmartyPig by Sallie Mae recommended? Seems easy and they appear to have the highest APY. High yield savings accounts are very good for emergency funds and any money you're saving inside a 5ish year horizon. The returns are crap (probably not even keeping up with inflation right now) but that FDIC insurance is very nice when you need your money to stay put more than anything else. Ally is a default recommendation, because they have competitive rates and OK service including good access to human agents and non-horrifying fees. I wouldn't use SmartyPig, because they're 0.45% APY over $10k (which is a reasonably sized emergency fund for a working adult) compared to Ally's 0.50%, and also because gently caress Sallie Mae.
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Jun 8, 2021 21:30
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Avian Pneumonia posted:Is SmartyPig by Sallie Mae recommended? Seems easy and they appear to have the highest APY. I've been using SmartyPig for many years (well before it was acquired by Sallie Mae). I will say that over the years, the APY has slowly dropped, but it's a decent place to park your money. I know some people have qualms with Sallie Mae, but the service has never been bad for me. Edit: ^^^^ I also have ~15k split across separate accounts (mine and my wife's), so we still hit the 0.70% rate. I have other money parked in Synchrony Bank, which is fine and at 0.50%. Good-Natured Filth fucked around with this message at 21:37 on Jun 8, 2021 |
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Jun 8, 2021 21:31
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Good-Natured Filth posted:I've been using SmartyPig for many years (well before it was acquired by Sallie Mae). I will say that over the years, the APY has slowly dropped, but it's a decent place to park your money. I know some people have qualms with Sallie Mae, but the service has never been bad for me. That was going to be my next question is if/when I hit the balance cap where the APY lowers should I then open a second account somewhere else or would the higher balance and compounding of interest make it pointless?
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Jun 8, 2021 21:48
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Avian Pneumonia posted:How does this thread feel about online high-yield savings accounts? I made a fairly well times exit from meme stocks and am looking to diversify into something a bit more stable? Is SmartyPig by Sallie Mae recommended? Seems easy and they appear to have the highest APY. Recommended in this thread earlier was HMBradley and their tiered savings/checking account. So far I'm still hanging strong at 3% and making almost double the interest each month that I was from Alliant.
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Jun 8, 2021 21:54
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Space Gopher posted:I wouldn't use SmartyPig, because gently caress Sallie Mae. Not an empty quote! Go with Ally or HMBradley if you can swing being in the 3% tier.
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Jun 8, 2021 22:58
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Avian Pneumonia posted:That was going to be my next question is if/when I hit the balance cap where the APY lowers should I then open a second account somewhere else or would the higher balance and compounding of interest make it pointless? You can get $10k a year in I Bonds, which are the cool thing to do now a days. Just note you can’t liquidate for a year, so make sure it isn’t emergency funds. Plus up to year 5 if you liquidate you lose 3 months of interest, although to me that doesn’t seem like a huge penalty.
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Jun 8, 2021 22:58
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Grand Fromage posted:Good times. Savings is the way to go I guess. Glad I posted to get corrected before I moved my emergency fund into a money market. from an earlier post in thread, pmchem posted:yeah. the next closest thing to a high-yield savings or money market fund, but where principal can actually go down, would be an ultra-short term bond fund such as JPST, ICSH, or VUSB so if you're really driven to chase yields that exceed a HYSA by a small amount, that's the next place I'd look. but, you're no longer guaranteed to see your number go up. so a very different mindset. nevertheless, unless the entire market poops itself at the same time, they're generally pretty boring and outperform a HYSA: https://stockcharts.com/freecharts/perf.php?JPST,ICSH&n=500&O=011000
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Jun 8, 2021 23:16
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Any review on Vio or Alliance HYSA? I just need to stash money for some interest. https://www.nerdwallet.com/reviews/banking/vio-bank https://www.nerdwallet.com/reviews/banking/alliant-credit-union Duckman2008 posted:You can get $10k a year in I Bonds, which are the cool thing to do now a days. Just note you can’t liquidate for a year, so make sure it isn’t emergency funds. can you only buy these from treasurydirect? seems like a hassle :o Also what about CDs..? I see some online ones offering 1-year CDs with 0.7/0.65APY, and 2 year CDS with 0.80/0.75APY. These are legit right? Assuming I'm willing to park my money for a year or 2. https://www.bankrate.com/banking/cds/best-1-year-cd-rates/ https://www.bankrate.com/banking/cds/best-2-year-cd-rates/
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Jun 8, 2021 23:38
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Strong Sauce posted:can you only buy these from treasurydirect? seems like a hassle :o You can buy up to $10k a year of I bonds from Treasury Direct, and you can also buy up to 5k a year of I Bonds using your federal income tax refund, by filing Form 8888. Those are the only ways to buy I bonds. e. one more detail worth noting: the 1-year restriction on selling I bonds is waived in federal disaster areas. So if you wanted part of your "emergency fund" to be for, say, covering the deductible in your earthquake insurance policy, I bonds are actually a reasonable way to do that, since any major damaging earthquake is very likely to be declared a federal disaster. There's some more interesting details here: https://www.irs.gov/refunds/using-your-income-tax-refund-to-save-by-buying-us-savings-bonds Leperflesh fucked around with this message at 00:16 on Jun 9, 2021 |
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Jun 9, 2021 00:09
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Strong Sauce posted:Any review on Vio or Alliance HYSA? I just need to stash money for some interest. Alliance is fine.
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Jun 9, 2021 03:24
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runawayturtles posted:Thanks, sent these options over to the COO, hope he'll have time to actually look into them in the not too distant future. At first glance, I can't imagine our current provider being cheaper than Guideline, and their fund options are clearly much better. It's been a few months since I last posted about this, but I want to thank the thread for encouraging me to ask my office about the possibility of improving our bad 401k plan. I heard from the COO yesterday that he pulled the trigger on moving us to a direct plan with Vanguard. Aside from their low-cost fund options that we all know and love, their 401k fee is flat and based only on number of participants, so while I don't know exactly how that fee will be split yet, it's infinitely better than the large percentage fees I'm currently paying on expensive funds. So, huge win there. If only I followed all the other advice of this thread in years past, my financial position right now would be absurdly amazing instead of just really good...
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Jun 9, 2021 06:44
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I just started my first job with an ESPP and from hearing about other people's ESPPs, I'm not sure how this one compares. Am I thinking about this the right way? Can contribute up to 15% of each paycheck to be placed into a separate, non-interest bearing account. After each pay period, monies are transferred from the account to the broker to purchase company shares at market price. Employee does not pay commissions/fees to purchase shares. Stock must be held for 1 year to be eligible for a quarterly match, then the match is paid out once per quarter following that 1 year holding period. Match is 33% and the benefit is taxable. Match shares can be sold immediately. Employee pays commissions/fees on sale of any/all shares. It's a financial services company, so I'm not expecting the stock to go to the moon or anything, but if the match is 33%, am I generally assuming that if the shares I purchase don't drop 33% in that 1 year period, I'm coming out ahead, less taxes and fees?
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Jun 9, 2021 20:28
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Fhqwhgads posted:I just started my first job with an ESPP and from hearing about other people's ESPPs, I'm not sure how this one compares. Am I thinking about this the right way? That is a really interesting incentive for you to hold them longer. If the stock remains perfectly flat, then you get 33% annual interest. Do they match on the $ amount or the quantity? It matters if the stock value drops specifically, as if it goes up it's just more payday. Do they match on "match" shares in the future? If you hold your base or match shares for an additional year do they match you again? Are you allowed to sell your base shares whenever you want, even if it's just even money back out? It's a big gamble - there is no benefit to the plan under a 1 year holding period. It should very much be with your "hookers and blow" budget, not the "saving for retirement" budget. Given they do this monthly the degenerate in me would probably do it, but only if it didn't impact my ability to max out my retirement goals first. If it compounds annually as well with the match shares it would certainly tickle my gambling itch to "let it ride" constantly, but you should probably sell the second you hit the match as that's the big upside to your gamble.
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Jun 9, 2021 20:44
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33% annually if you cash out immediately each time. 33% per quarter if you let it ride I think.
withak fucked around with this message at 20:55 on Jun 9, 2021 |
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Jun 9, 2021 20:49
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H110Hawk posted:That is a really interesting incentive for you to hold them longer. If the stock remains perfectly flat, then you get 33% annual interest. Do they match on the $ amount or the quantity? It matters if the stock value drops specifically, as if it goes up it's just more payday. Do they match on "match" shares in the future? If you hold your base or match shares for an additional year do they match you again? Are you allowed to sell your base shares whenever you want, even if it's just even money back out? Really good questions and I will ask the benefits team. Also they would withhold applicable taxes in some form. But I'll try to get plain answers out of the administrator. I can sell the shares whenever I want. The one year lockup isn't really a lockup, it's just one year to be eligible for the match. Shares don't compound as in I don't get double matches if I hold it two years. I make enough to max out 401k, Roth, and HSA and by my calculations I should still be able to comfortably put in all 15% to this with the intention of selling after one year and also immediately selling the match. So long as I can specify FIFO which I'm sure the plan can take into account. So after a year I'd most likely be doing rolling sales at the earliest time possible to get the 1 year credit and cashing out the match every quarter as an additional "cash bonus". Edit: They don't match on match shares. The way it's worded is so it's like this: The stock I buy in 2022Q1 and hold for 365 days gets a 33% match paid to my account right after the end of 2023Q1. No more match is paid for that quarter's worth of purchased stock. The stock I buy in 2022Q2 and hold for 365 days gets a 33% match paid to my account right after the end of 2023Q2, and so on and so on. One match per quarter, once a match is paid on those particular shares no other matches are paid on those particular shares. Fhqwhgads fucked around with this message at 23:21 on Jun 9, 2021 |
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Jun 9, 2021 23:12
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How much does it cost to hedge? Let's say I have a million dollars in the S&P 500 and I want to buy protection to cover my loses over 20% for the next 3-6 months. I assume options are the best path to do this. Assuming the market doesn't drop and they expire worthless. Roughly what does that cost?
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Jun 10, 2021 06:20
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Options to cover 6-12 month market timing hedge/guesses probably will get better engagement in the stock trading thread.
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Jun 10, 2021 06:32
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Roughly $10-20,000 depending on whether you want 3 or 6 months and depending on the exact strike
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Jun 10, 2021 06:33
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Leperflesh posted:In case you're not clear on this, both you and your spouse can contribute $6k to an IRA, even if one of you has no earned income (that is: all the IRA contributions have to be from earned income, but it can come from either spouse). If your goal is $15k between you, that gets you closer. do you need to be employed to contribute to an Vanguard IRA?
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Jun 10, 2021 11:23
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err posted:do you need to be employed to contribute to an Vanguard IRA? You need earned income for the year to cover your contributions.
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Jun 10, 2021 11:56
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Jows posted:You need earned income for the year to cover your contributions. You or your spouse needs earned income to cover it.
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Jun 10, 2021 15:15
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so i just rewatched the big short again and it made me realize: why are we trusting the banks to not completely gently caress this up once again? we're just at the mercy of the banks right? when the first collapse happened i didn't have much in stocks or 401k but i did nearly lose all my money since washington mutual was my bank. so am i overreacting, or is that the gist of the current situation: that since we didn't do anything 10+ years ago that there's another CDO/subprime type crash that's going to occur? assuming cryptocurrency crashes.. how much does that affect banks since they're now trying heavily to get in on cryptocurrency? even this huge surge of retail investing has me worried that once the economy downturn happens a lot of people are going to lose their shirts.
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Jun 14, 2021 01:52
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I have no idea, but as long as it doesn’t last 30 years, or as long as it doesn’t happen again right before I retire (and even then it’s mitigated by proper balancing), then whatever. Worse comes to worse, everyone else will be hosed too, and I get to laugh.
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Jun 14, 2021 01:59
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There will be another crash. The mitigating factor is you're investing in the long term. There have been lots of stock market crashes, but it always recovers and goes back above what it was before the crash. So if you're investing for 20+ years, the crashes don't really matter. If the global economy goes so tits-up that the markets crash and never recover, then nothing you could've done matters anyway because the entire economic system is gone. A more realistic possibility is decades of stagnation like Japan. But the thing every outcome has in common is there's nothing you can do about it. Investing's not guaranteed or anything, it's just that of all the things you can do with your extra money, it's the most likely to benefit you in the long term.
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Jun 14, 2021 02:02
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Strong Sauce posted:so i just rewatched the big short again and it made me realize: why are we trusting the banks to not completely gently caress this up once again? we're just at the mercy of the banks right? when the first collapse happened i didn't have much in stocks or 401k but i did nearly lose all my money since washington mutual was my bank. You probably weren't close to losing all your money since it was likely in an FDIC insured account. And stocks going down is normal and fine if you're in it for the long term. If you're early on in your investing life, it's even good since you'll have a chance to buy low. Diversify internationally if you're paranoid about the US financial system especially for some reason.
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Jun 14, 2021 02:06
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Strong Sauce posted:so i just rewatched the big short again and it made me realize: why are we trusting the banks to not completely gently caress this up once again? Also I'm by no means an expert on cryptocurrency but I have the hunch that when poo poo hits the fan in whatever the next major recession winds up being, we'll see a max exit the digital equivalent of a 1929 bank run as people need actual cash or try to switch to assets with actual underlying value. It's going to be a massive bloodbath, hopefully disproportionately effecting the worst people.
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Jun 14, 2021 02:07
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