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I'm in my mid 30s and don't have much in long term retirement. Probably more than most but probably not as much as I should. I have a ROTH IRA that I can no longer contribute to because I exceed the MAGI and no longer eligibile. I also have a TRAD IRA account that I (correct me if I'm wrong) cannot contribute to without getting taxed because I currently also have a 401K account with my company. I have about 35K in the roth ira, trad ira and rollover ira. I need to merge the rollover into my traditional ira. Parts of my IRAs are still in money market funds since when I put the money in I wasn't sure what to invest in so I just let it sit in the account without it doing anything. I'm going to eventually put that into some additional Fidelity Retirement accounts. My initial plan was to buy a house within the year back in early 2020. Obviously with the housing boom I'm probably going to have to reconsider buying for a while. All that money that's just sitting in my savings account is now doing nothing and I would like parts of it to do something. I'm still trying to buy the books mentioned in the OP.. but in the meantime, since it seems my avenues for putting in money in funds into IRAs are closed. What's the best way to use my previous HOUSE FUND money for long term retirement funds?
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May 23, 2021 05:23
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Why do Fidelity Target Retirement Funds have a higher net expense than their Vanguard equivalents? I have money in Fidelity Target Retirement Funds and looked at the huge difference. How difficult is it to switch to Vanguard (assuming they're basically the same?). There's no penalties for selling off these Target Retirement Funds right?
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Jun 3, 2021 20:25
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raminasi posted:Are you sure you’re comparing the Fidelity Investor-class funds?
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Jun 3, 2021 20:51
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Leperflesh posted:Fidelity Freedom Funds are not passive-index funds. Avoid them as you would any actively managed fund, unless you're actually trying to find an actively managed fund. In which case, the .75 ER is still pretty crap, so still avoid. I already have money in their Freedom Fund... Is there any penalty with selling it off?
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Jun 3, 2021 21:17
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Guinness posted:If it's in a tax-advantaged space, no. It's in a Trad IRA. So if I sell off my shares but leave it in the IRA.. I don't incur taxes on any profits from selling it right?
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Jun 3, 2021 21:23
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so i bought some FXAIX and was waiting for it to settle to let me buy shares... but its already end of day and they haven't resolved? i bought it at like 1AM today... did i miss the window or something?
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Jun 5, 2021 00:11
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so how "balanced" do we need to have our retirement funds? i read the posts from friday-ish or so where people are talking small cap, large cap, 500 index, etc... does that matter that much? also another question i have. i have a rollover ira that i haven't put back into a roth ira/traditional ira.. i want to merge that into my current roth/trad ira account... couple questions on that: 1. are there any penalties i need to be aware of if i put the money into my roth or trad ira? i recall the irs only allows one of these transfers... a year? per job switch? 2. seeing how its already tax deferred money.. wouldn't i want to put it into my roth ira so i don't have to worry about which parts of the fund have already been taxed, and/or avoid the tax on the money when its eventually pulled from a trad ira? 3. if i do put this money into either IRA, does this count as part of the $6000 i'm allowed to contribute every year?
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Jun 7, 2021 07:10
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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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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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to be clear i'm not talking about general downturns in the economy/dips in the stock market due to (for lack of a better term) natural phenomena; things that happen like major world events, or just general slow downs in the economy. i'm talking more about when these big corporations gently caress around because they know the government will bail them out. yeah sure, the general "economy" eventually bounces back up but tons and tons of individual people get screwed even when they technically did the right thing. saving, 401ks, index funds... like it seems like people responding are just saying this poo poo is inevitable, it happens.. so what else can you do? am i correct in that? people just accept that the banks will find some way to screw the individuals, and we just have to pray we don't retire within 10 years of these catastrophic events.. or even if it happens during our retirement, we have to hope that we can survive on our funds while the stock market recovers? cause what else can you do with your money, right? hoard it under your mattress? not trying to be flippant here but it just all seems a bit nutty, no? drainpipe posted:You probably weren't close to losing all your money since it was likely in an FDIC insured account. Sardonik posted:Because the banks own both parties. There was never hope for meaningful reform.
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Jun 14, 2021 03:04
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pmchem posted:you seem to have entirely forgotten about this thanks i did completely forget about this legislation, although to be fair i don't remember anything from it other than the volcker rule, which i had to also look up. i've been getting into putting money into the stock market... but it just seems really lovely that these banks can just kinda gently caress these up and seemingly not get punished for it. but yeah i guess what other alternative is there...
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Jun 14, 2021 04:00
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StormDrain posted:The two bolded sections tell me something about your understanding of long term investing. Short term saving should be in accounts that are unaffected by the overall market. The worst thing that would happen to savings account is the interest rate plummets to zero. yes you're right about savings. that was just me being ranty and needing to put something in. the second part you bolded, I'm referring to the general math problem where most of your compounding interest gains come within the last 10 years of whatever period you're trying to save over. just plugging very generic numbers, $10K initial, $500 monthly contribution over 40 years at 6% interest rate. Looking at the chart you'd hit ~$1 million+ within those 40 years. But most of the earnings start to come at year 30 of the graph. so if you get hit with a 2008 type of recession in that time you are kinda hosed even if you have other investments because you're generally out of time. seems like most people they're option is to just defer retirement. if you had retired before the crash hit, i assume you'd have put your money into much less volatile investments. Duckman2008 posted:Tbh , yes. As I think this post is a good explanation why. thanks i appreciate this comment... since i don't want to occupy this thread much further with this if it isn't the right place but yeah i just wanted to understand that other people recognized this aspect of it... that we're just doing this because there's no real realistic alternative..
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Jun 14, 2021 16:58
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H110Hawk posted:100% FXAIX is what I do for broad market coverage in my 401k. I buy FSKAX in my IRA and Taxable Brokerage. Close enough for me. what's the diff between FSKAX and FZROX ?
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Jun 15, 2021 20:50
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Baxate posted:I wouldn’t hold FZROX in a a taxable account unless you plan to be on Fidelity till the day you die because you can’t exchange it out to another brokerage without triggering a taxable event by selling it first. It’s exclusive to Fidelity brokerage accounts you mean a normal individual account and not like a traditional ira right?
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Jun 16, 2021 15:48
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i think i asked this already but didn't get an answer but i have a rollover ira account that i want to transfer over to my current IRAs... 1. can i put this into my roth ira? i'm guessing no since the rollover is tax-deferred... 2. does putting this money count towards the $6000 i can put into my trad ira? i'm reading that it doesn't but wanted to make sure there's no weird, "except if" clauses.
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Jun 18, 2021 17:31
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drainpipe posted:1. Yes, you will need to do a Roth conversion (any brokerage should have this option available to you). As a heads up, you will need to pay income tax on all that you convert since you are turning something tax-deferred to tax-free. thanks! since there's a cost regardless i think i'll just put it into my trad ira since i'll prob be at a lower tax bracket when i retire. Strong Sauce fucked around with this message at 17:53 on Jun 18, 2021 |
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Jun 18, 2021 17:50
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bawfuls posted:If your Roth IRA isn't worth $5Billion by the time you're 50, you're doing it wrong I just read that. hosed up IMO... ah well nonetheless.
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Jun 24, 2021 17:10
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literally even had no idea that was even legal to place non-public shares into a roth ira.. not like normal people even has access to lawyers or accountants who could even do this for them.
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Jun 24, 2021 18:30
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regarding backdoor roth ira: i'm in the top or second from the top taxed income... my understanding was that by the time i near retirement i'd probably be earning way less than what i am now so i should just keep the money i have in my trad IRA since the taxes will be much lower... is that understanding correct?
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Jun 28, 2021 17:34
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drainpipe posted:More or less. The one issue is that you don't know for sure what taxes will be like when you retire so Roth can be a tax policy hedge. It's why I'm aiming for something like 33% Roth 66% trad for my retirement accounts.
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Jun 28, 2021 17:48
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H110Hawk posted:Yeah. The key is that you cannot take a benefit now so the real alternative is a taxable brokerage. Roth is better than that, even at 37% marginal income rate. It's super dumb. oh... so i should try to do a backdoor roth? even with the tax hit now? quote:Roll your Rollover into your 401k. Does this get you a $0 balance in your trad ira? If yes, then slap $6k in there, and then roll it over into your roth ira. As with many things in loophole land it's important for you to click those buttons in order to benefit. It's super dumb. to be clear, i have roth ira trad ira rollover ira if i roll over my rollover ira, i'll still have my trad ira.. so is your suggestion to roll my rollover ira into my 401k, then roll over my entire trad ira into a backdoored roth ira?
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Jun 28, 2021 22:23
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H110Hawk posted:Gotcha. Does your 401k accept Traditional IRA roll-ins that aren't a "Rollover IRA" ? The only difference between the two is semantic for some 401k's. you said a lot of words that i know individually but put together.. not quite sure. okay so with that rollover ira. if i put that into the trad ira, since the rollover ira has been taxed already that will create issues with the trad ira right? everything in the trad ira right now is non-deductible. i haven't put in that rollover ira money anywhere because last time i asked and someone told me and they said i'd have to file additional forms and keep track of the money thats been taxed already. 1) what you're saying is.. if i can dump my trad ira into my 401k, i should do that, zeroing out that trad ira. then i can execute the backdoor roth ira at that moment after i have $0 in my trad ira. is that part right? 2) do i have to worry about the rollover ira i have or is that fine? should i also put that rollover ira into my roth ira then? if its already been taxed that should be okay then right?
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Jun 29, 2021 03:14
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runawayturtles posted:Hold up. Either you or the thread is misunderstanding something. The term "rollover IRA" is usually used for a traditional 401k that has been rolled over into a traditional IRA. So it hasn't been taxed, and is essentially just another traditional IRA. The semantic difference is just because some 401ks allow you to roll any traditional IRAs into them, and some only allow you to roll rollover IRAs into them. honestly its probably just me not following along well enough i had a previous 401k, that, once i left the company became this rollover ira. i was reading an article that said you get taxed on it if you don't roll it over within a period of time but reading the article again it seems like that's only if they disbursed a check for your rollover ira. so i think the rollover ira i have right now hasn't been taxed. i think h110hawk's advice was to see if my 401k will let me merge in my trad ira. if it does, merge the trad ira, and rollover ira into the 401k so i'll have $0 in a trad ira.. this then will let me to execute a backdoor roth ira conversion.. i think what confused me was he discussed how it was difficult for him to do this because he had placed money that had already been taxed into his trad ira, so to put that into his 401k, he would have to calculate the amount of his trad ira that had already been taxed.. i think based on what was said... as long as i hadn't co-mingled taxed money with my trad ira, the backdoor roth ira conversion should be relatively easy (again assuming my 401k will accept the money i have in my trad ira)
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Jun 29, 2021 07:20
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Adhemar posted:Nope. What he was referring to that makes things difficult is the pro rata rule. I recommend googling that first. hmm i thought the first part you wrote is what i was talking about... don't mix any money into a trad ira that has non-deductible money... but also my untaxed trad ira is not my rollover ira. i have both a trad ira and i have this rollover ira that's been sitting there by itself for a while.
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Jun 29, 2021 18:03
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so i went to check on my 401k yesterday because of all this backdoor talk and ... what exactly is a good amount of money to have in my 401k? i'm in my mid-late 30s and i guess i'm hoping i can retire at 50-65? 50 if i run into a string of good luck i suppose. its with t-rowe, and they have an estimate of how much i could pull out by the time i "retire" and it looks like a number that seems a bit high? maybe not so high by the time i retire and stuff i guess but more than i was expecting.. which makes me a little less stressed about it.
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Jun 30, 2021 04:32
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Okay I know I already asked but the discussion kinda wandered off what I wanted to talk about so I want to reask this question after doing some research. I had a 401K plan at my old company, I left and they converted my 401K into an IRA. It's currently sitting in my Fidelity account as "Rollover IRA". At first I wanted to take this rollover into my 401K, which is in T Rowe Price. They're directions say I have to ask Fidelity for a check, then I have to send T. Rowe Price info about the rollover account (I'm uncertain where this money came from. It was either from my previous company (ended employment in 2015) or from a way older company (ended employment in 2012) as well as a cover letter??? That seems like a hassle. So I think my other option is to just dump that money into the current traditional IRA account I have with Fidelity right now. That way there will be less paperwork to deal with. Is there any issue with doing the latter? Looking at Fidelity's FAQ for Rollovers I just have to call them up and ask them to merge it. I think what's holding me up is that I may have already converted this thing into an IRA back when I quit in 2015 and I ended up just not putting the money into any stocks/bonds. So assuming that's true I'd just like to combine it with my account that holds my traditional IRA so its all one account. The only downside Fidelity says is that I can't roll these funds back into an employer-sponsored retirement plan. I don't think that should be an issue if I want to keep this money separate from my current employer's 401k anyways, right? To summarize, I have two accounts that look like they're traditional IRA accounts. One of them is just from a previous company's 401K that I think I just ended up not doing anything with it... so for simplicity's sake I'd like to just combine the two. I don't really care if I can't put this money into my _current_ company's 401K. This should be easy without any weird tax issues right?
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Jul 8, 2021 09:32
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drainpipe posted:A target date fund is also a perfectly fine set-it-and-forget-it solution if you don't want to deal with the hassle of rebalancing. Choose the year that's closest to when you'll turn 65 and look at the composition. Then if you want more or less bonds, just choose a year that's earlier or later, respectively (although 10% bonds is the lowest you can go). make sure its an index target date fund..otherwise the fees
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Jul 15, 2021 00:50
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Someone tell me what books to read about corporate bonds or just bonds in general. Fidelity is of almost no help. They just dump the entire database of bonds and go, "here have fun"
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Jul 15, 2021 07:27
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GhostofJohnMuir posted:i'm not sure what level of detail you're looking for, but if you're looking for a basic to mid-level primer, the bogleheads wiki is generally where i go to get an intro to investing concepts thanks simple enough for me to get into. Kylaer posted:Assuming you've paid off debt and have an emergency fund appropriate to your anticipated needs, yes, the next step is taxable investing. Taxable investing isn't as good as tax-advantaged investing, obviously, but it's far preferable over having your money sit around as cash getting eaten by inflation. You're solidly in "good problem to have" territory if you have to worry about the taxes on a brokerage. One thing you might want to do is up your paycheck withholding slightly, if your employer lets you do that, because otherwise dividend payments will end up making you owe money at tax time. Of course, dividends are unpredictable so picking just how much extra to hold back is an open question i knew i should have taken a loss on $AHT instead of getting out with a slight profit. now the tax man will come for me $20 profit  H110Hawk posted:It's one more step to look at the big pool of money across all accounts and allocate the tax heavy stuff (bond allocation) outside the taxable account, rather than having all 3 funds in your myriad of accounts. This especially is important if there is only 1 good fund period in your 401k. isn't foreign tax credit to offset double taxation? so you're still getting taxed anyways right?
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Jul 15, 2021 20:12
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I have not sold anything at an auction house but if you consign something with them and they sell it for a profit... do they send you a tax form? Or is that something you'd have to handle yourself?
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Jul 19, 2021 20:05
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Leperflesh posted:For a single sale of moderate dollar amounts, they'll provide you with the documentation you need (exactly what the item(s) sold for, their commission, and the money they gave you), but you need to handle the tax stuff yourself because they don't have a record of your cost basis in the thing you sold, or even necessarily which state you live in, etc. For example, my wife has some art items that sell from a place in colorado, they mail her a document each year listing the dollar amounts but that's it, we have to handle the tax implications ourselves. do you also mean your wife paints or did she hold some old art items that held value? quote:For larger amounts, such as transfers of money of $10k+, there's reporting rules (to combat money laundering I believe). If you're operating as a business buying and selling things, there's forms for that. If you're selling hundreds of items on ebay or with paypal etc. for $20k a year or more, you may receive a 1099-k related to all those electronic transactions. i think this applies to everyone selling things on eBay/paypal. and even worse is that its being lowered to $500 in 2022 unless it's overturned
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Jul 19, 2021 23:01
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i'm in my mid-late 30s and i have tons of cash and didn't start parking my IRA funds until 2 years ago. it is good you're starting when you are. there's always a feeling of not wanting to start because you feel you're way too behind and that just completely sets you back even more. having said that. i've been really lax about putting in more money and i should probably do that more.. i already maxed all my stuff so right now i'm just looking into non tax-advantaged stuff.
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Aug 17, 2021 18:12
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so i'm trying to see if a backdoor roth ira is worth it using a calculator. i set my estimated taxes for when i take the money out pretty high (assumption would be i'd make 50K as more of a hedge.. might be too high though). then i put in the current tax rates of those since i have no other idea how to calculate that. i'll put up the numbers if that's relevant.. anyways. i went and looked at two calculators for this and both say its not really worth it for me vs putting it into a traditional IRA with a nondeductible contribution... my question is... are there any significant issues i should be aware of putting in a nondeductible contribution? my understanding is i'll get taxed initially on the $6K i can put in but otherwise afterwards they can't tax retirement funds twice so whatever is left in there should be good. also can i just dump the $6K into my current TradIRA account or is it better to split it to keep better track?
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Jun 3, 2022 21:49
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i'm just using something like this: https://www.schwab.com/ira/understand-iras/ira-calculators/roth-ira-conversion so i already have some money in a trad ira that i've had for a while which is already tax-deducted. so i put that in as the value of my non-Roth IRAs +$6000 for the amount i want to put into a backdoor roth. for the second question, i put "no" because i haven't made a nondeductible contribution yet. then i put in $6000 for the third question.. I just filled in the rest. I reduced my state tax rate in half for expected state tax at time of withdrawal. time horizon 30 years and my risk profile is moderate at 4.92%.. 
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Jun 3, 2022 23:17
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Strong Sauce posted:i'm just using something like this: https://www.schwab.com/ira/understand-iras/ira-calculators/roth-ira-conversion yo someone yell at me about what i'm getting wrong about this.
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Jun 5, 2022 09:59
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reading all this was informative, but a little bit confusing since i have a hard time figuring out which applies to my situation and which parts are tangential.. i assumed those calculators would help me figure out if doing this vs just either not doing anything or keeping it in a posttax trad ira is better. but i guess that isn't doing what it's saying it'll do? maybe restating what i want to do will maybe make it clearer what i am asking. assuming i already have money in a trad ira that is all pretax... is it always beneficial to put in $6000 into a posttax trad ira, convert it into a backdoor roth ira and deal with the tax implications from that event. if its not always beneficial. what pieces of data do i need to know to figure out if doing this backdoor roth ira is worth it? based off this post esquilax posted:Also, for your situation a backdoor roth would look better than if you consider your contributions for the next few decades rather than just for one single year. The cost for converting your current pre-tax trad IRA contributions is a one-time thing that won't reoccur if you move entirely to backdoor roth for the future. should i just convert my entire trad IRA into a backdoor IRA now, deal with the tax implications from moving the pretax money this year and then just continue doing a backdoor roth ira every year onward which would not have any further tax implications? if i'm still in the 32% federal tax bracket and i deal with this taxable event, is that too much of a hit where it would take a long time to make up the hit? this is what i assumed those calculators were doing.
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Jun 6, 2022 02:54
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i'm sure i've asked about hysa before but i didn't put any money before but i need some place so there are some other online only banks offering 1.8 (Brio), 1.65 (Bread) and 1.40 (Live Oak)... is there a site that does good reviews? They're all FDIC insured so it shouldn't matter right if I don't care about having a checking account etc. What about CDs with these companies? NerdWallet seems to give all of them 4+/5 stars and DepositAccounts seem to go to the opposite
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Jul 15, 2022 06:18
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Is there any inherent risk of putting my money into a brokered CD over a standard bank CD? I have money I want to park and it seems like I can pull the money out with some penalty if I really need it to. Also FDIC insured. I’m looking at Fidelity’s offerings. Can I assume there was some kind of vetting or is it just a list thrown up there?
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Oct 26, 2022 21:16
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Eyes Only posted:Never looked at these myself but wouldn't they just be treasuries with extra steps? I can't imagine the rates being much different from treasuries. tumblr hype man posted:Vanguard specifically calls out that all of their brokered CDs are issued by FDIC insured banks that also pass an additional credit quality test. Not sure what that test is but as long as you buy less than $250k you should be covered by the FDIC. yeah i figured they were all FDIC insured.. so what's stopping people from just buying up to 250K of the highest rate in their timeframe (e.g 1 Year Brokered CDs)? the only thing i can think of is they're not familiar with the bank's name and are hesitant. but otherwise how is it treasuries with extra steps if i buy it through fidelity? i'm pretty sure there brokerage CDs are also no fee.
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Oct 28, 2022 04:14
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| # ¿ May 18, 2024 17:25 |
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drk posted:The rate on 1 year treasuries, as of market close today, is exactly 4.50%. Treasuries can be bought from a brokerage account, no need for treasury direct. ah thanks. you're right. found them on fidelity. here's what i'm seeing. 4.410 for Treasuries @ 1 yr vs 4.5-4.55/1 year for some banks CDs.   That's interesting about state tax though... gonna have to look up if its going to basically negate the extra ~0.1%
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Oct 28, 2022 05:08
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