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80k posted:put your 20% bonds in tax sheltered space, fill remaining tax sheltered space with less tax efficient stock funds (active funds if you plan to use them, or small cap stocks). Put only broad market index funds or ETF's in taxable (like Total Stock Market and Total International Stock index). Thanks for the response 80k, I noticed you had said previously you held taxable accounts, so I appreciate the input. As far as tax sheltered, I don't believe I can add more money to my TSP that doesn't come from my paycheck directly. I do fall under the tax bracket for an IRA, would I be able to possibly open one of those and put the limit on those? Does it conflict with my yearly total in my TSP? Sorry like I said, I understand how an IRA, Roth, 401k works, I'm just a little confused about how its possible to hold multiple tax sheltered accounts. If anyone has a link that explains that, I'd love to read up on it. flowinprose posted:Everything 80k said sounds good. I thought about the house buying thing way back, but honestly, I don't see myself staying at this location longer than 3 to 4 years. My girlfriend and I are waiting till she finishes grad school and gets a career going before we decide where we want to live and buy a house, etc... so that could be five years from now before we're settled in and ready to go that route. I do like the idea of using the G fund as part of my bond allocation.
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Dec 24, 2010 16:36
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Hungry Hippo posted:I don't believe I can add more money to my TSP that doesn't come from my paycheck directly. I do fall under the tax bracket for an IRA, would I be able to possibly open one of those and put the limit on those? Does it conflict with my yearly total in my TSP? You are right about not being able to contribute additional money outside your paycheck to your TSP. If you do choose to increase your paycheck deduction, just be careful if you're going to get anywhere near the maximum amount, because if you contribute the maximum BEFORE the last paycheck of the year, then your matching will stop along with your contributions. The contribution limits for IRA's are separate from 401(k)/TSP limits. You can contribute a full $16,500 to your TSP and still contribute $5,000 (divided any way you choose) between multiple IRA's, be they traditional, Roth, or whatever. What you cannot do, and many people starting out get confused by this, is contribute $5,000 to a Roth for example AND some amount of money into a traditional IRA. The $5,000 limit applies to the combined contribution across all IRA accounts. For example, If I have 2 Roth IRA accounts and a traditional IRA account, one at Vanguard, one at <BigNameBrokerage1>, and one at <BigNameBrokerage2>. I could contribute 3k to one and 1k to the other two, etc, or any way I choose as long as the total combined is $5,000 or less.
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Dec 24, 2010 17:08
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jayd42 posted:I'd just like to confirm that I'm thinking about this correctly. Personally I'd say this isn't the ideal approach. Figure out the time horizon and overall portfolio you want, then put the assets into the vehicle where it will save you the most money. Generally you'll want to put: - Canadian bonds/ fixed income in the TFSA - US Stocks in your RRSP - Canadian stocks in a taxable account (or at least, lowest priority for using TFSA/RRSP room) Also, if you're not maxing them both out, prioritize the TFSA in low income years and the RRSP in higher income years. For example, I was unemployed for half of 2010, so I'm not planning on making any RRSP contributions until 2011 because the tax deduction will be more useful then. EDIT: Note that you'll want to avoid, if possible, putting US stocks into your TFSA, because they will have US income tax deducted from the dividends but you won't get a credit for it on your canadian tax return like you would if they were in a taxable account. Canada and the US have a special agreement that US stocks held in RRSPs don't have any tax witheld on the dividends, which makes RRSPs a good place for US stocks. big shtick energy fucked around with this message at 19:34 on Dec 24, 2010 |
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Dec 24, 2010 19:31
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80k, not that any bets or whatever were made, but FAIRX had ~6% in distributions SPY had ~2%
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Dec 31, 2010 23:53
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I've decided that it's finally time to open up a Roth IRA, but I'm not sure where I should open it. I was going to start one at USAA, but after reading through some of this thread, it looks like Vanguard is a better option. I couldn't find an explanation of why this is, so could anyone give me a few pointers? Having it at USAA would let me have everything in one place, but if Vanguard is really better then it doesn't make a lot of sense to open it at USAA. I have $5,000 to put in the account right now, and I would probably invest in the 2055 retirement fund. Does this make sense? The account is just going to be for retirement, and I plan on maxing it out for as long as I can. Thanks! And happy new year!
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Jan 1, 2011 06:26
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I have accounts at USAA and Vanguard. USAA has fewer fund choices than Vanguard, including not having some of the basic market indexes if that's what you're into. Also the fees are decent but they're higher than Vanguard's. USAA will link to your Vanguard account so you can at least look at the balance from the USAA site, but you'd have to log into Vanguard to get transaction details. Since you know you're just interested in the specific fund, you can compare expense directly - I think USAA's is 5 times the cost at 0.80% expense ratio vs. 0.16%: https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/expense_cal1.asp You can always change your mind next year so it's not a big deal anyway. The big deal is getting started in the first place, so good on you.
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Jan 1, 2011 17:23
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TheCobraEffect posted:I was going to start one at USAA, but after reading through some of this thread, it looks like Vanguard is a better option. I couldn't find an explanation of why this is, so could anyone give me a few pointers? Comes down to two basic points. 1) General sentiment in this forum is that passive index investing is the best way to accumulate wealth for the long term. Passive index funds are ones which mimic the market as a whole and don't chase specific companies/sectors. You can still get different types e.g. US index funds, Europe index funds, total world index funds etc. 2) If you do this type of investing, the only thing that really matters is the expense ratio. Two funds that mimic the US market and have the same market returns can return drastically different over a long period of time if the expense ratios are different. As an example of if you contribute $20,000/year (roughly 401k/IRA) for the next 30 years in three different funds that all have the same return and the only different is investment fees, the fund that has .15% expense ratio will have over 20% higher balance just due to the lower expenses. http://www.dinkytown.net/java/CompareFees.html 
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Jan 1, 2011 19:32
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Slightly confused about IRAs with regards to already being covered by a 401k. For 2010 I should qualify for a Roth IRA, because my current job was not for a full year, and my future year's incomes will be far higher than it was this year. I will make sure to make a retroactive contribution before the deadline. In future years, I think my MAGI will be above the qualification limits for a Roth IRA though. I always thought that if that was the case, then fine you just use a traditional IRA instead. However I read today about the severely reduced income limits placed on being able to deduct a traditional IRA contribution for tax purposes, if covered by a qualified retirement plan like a 401k. So say I put the money in a Trad IRA anyway. It is now post tax dollars (because I can't deduct it). When it matures and I become able to start withdrawing from it, will those dollars be taxed again? Or only the interest earned on them? Getting doubly hit on that seems like a bad investment strategy... I max out my 401k as it is, so I don't even necessarily need to more retirement savings, but I would rather save too much than too little.
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Jan 1, 2011 19:44
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Chin Strap posted:Slightly confused about IRAs with regards to already being covered by a 401k. I am not your cpa, but: http://en.wikipedia.org/wiki/Individual_Retirement_Account http://www.schwab.com/public/schwab/research_strategies/market_insight/retirement_strategies/planning/saving_for_retirement_ira_vs_401k.html You got the details backwards for the IRA vs Roth IRA. Roth is taxed now, and tax free upon distribution. The traditional IRA is the opposite. edit: (subject to the low phaseouts) And as clarified below, the basis can be applied on a post-tax IRA contribution. The big advantage for you if you can make a traditional IRA available is the ability to retroactively put money into your 401k which does not allow April 15 retro-active deposits the way that IRA's do. Which brings me to... Hungry Hippo posted:As far as tax sheltered, I don't believe I can add more money to my TSP that doesn't come from my paycheck directly. I do fall under the tax bracket for an IRA, would I be able to possibly open one of those and put the limit on those? Does it conflict with my yearly total in my TSP? Sorry like I said, I understand how an IRA, Roth, 401k works, I'm just a little confused about how its possible to hold multiple tax sheltered accounts. If anyone has a link that explains that, I'd love to read up on it. If you make less than the cutoffs for an IRA (non-roth) you can always Fund Transfer into the TSP ("rollover"). I actually just filled out my TSP-60 form and will be heading to Fidelity (my old job) on Monday. It's a pain, but you can contribute any money that is still pre-tax. You can not contribute post-tax money. I don't think they limit how many times you can do this, and the TSP site does say that you can roll in any amount from an eligible account irrespective of your annual contribution. It's very difficult to make this work due to the cutoff amounts. It almost requires a period of significant unemployment that creates a dramatic temporary drop in income that is cured when you return to a higher paying job. KennyG fucked around with this message at 08:00 on Jan 2, 2011 |
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Jan 2, 2011 06:02
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Jan 2, 2011 06:14
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KennyG posted:You got the details backwards for the IRA vs Roth IRA. Roth is taxed now, and tax free upon distribution. The traditional IRA is the opposite. The Traditional IRA is essentially a personal 401K and this is why there is a phase out if you contribute to a 401k. It depends entirely on your income situation but if your income qualifies (sub ~55k for single and ~110k for mfj) you can essentially get an extra $5k into your 401k. No I don't, both trad and roth have modified AGI limits, roth for if you can contribute, and traditional for if you can deduct your contribution (making it contribution with pretax dollars). Anyone is able to donate to a traditional IRA regardless of how high their AGI is, it just may not be a tax deduction. If not, then it is a contribution to a traditional IRA with after tax dollars. My question is, does that get taxed again when I try to take it out at age 59 1/2, or is it like I would hope, and only the gains made in the IRA get taxed?
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Jan 2, 2011 07:18
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Chin Strap posted:No I don't, both trad and roth have modified AGI limits, roth for if you can contribute, and traditional for if you can deduct your contribution (making it contribution with pretax dollars). Anyone is able to donate to a traditional IRA regardless of how high their AGI is, it just may not be a tax deduction. it is as you hope. also consider a backdoor Roth method starting with a nondeductible traditional IRA contribution if that situation applies to you. http://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html
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Jan 2, 2011 07:46
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Chin Strap posted:No I don't, both trad and roth have modified AGI limits, roth for if you can contribute, and traditional for if you can deduct your contribution (making it contribution with pretax dollars). Anyone is able to donate to a traditional IRA regardless of how high their AGI is, it just may not be a tax deduction.  you're right... fixed my post to be more accurate.
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Jan 2, 2011 08:01
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80k posted:it is as you hope. also consider a backdoor Roth method starting with a nondeductible traditional IRA contribution if that situation applies to you. Wow that sounds shady as hell. I mean I am sure it all above water, but that seems like one big game to effectively subvert the AGI limitations. I'll still consider it though, because it is certainly better than a non-deductible traditional IRA. Another question: When it comes to 401k vs. Roth IRA vs. Taxable accounts, is there some strategy you want to employ in terms of what sorts of things you hold in each to comprise your whole portfolio? I don't quite know what, but it would seem to tax implications of bond funds vs stock funds etc would be different and you would want to leverage the tax free aspects of the Roth or the tax deferred of the 401k in certain ways.
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Jan 2, 2011 15:46
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Help me goons, I think I’ve made kind of a mess by setting and forgetting my investments. I’m in my late 20s and my employment seems safe. I seem to have redundant US funds. Should I add international/specialty funds? Add VEIEX to my Roth for 2011? Change up my 401k allocations? Breakdown of investments in combined retirement and non-retirement accounts: (Through Vanguard, taxable) VNYTX- 5% VIPSX- 5% VGTSX- 12% VTSAX- 18% VWELX- 11% Roth IRA: VFIFX- 19% 401k (through Schwab, allocated per paycheck 50% VIGIX, 15% VISGX, 15% VMGIX, and 20% DIPSX) DIPSX 5% VIGIX 15% VISGX 5% VMGIX 5% (Below is the selection I get from my 401k) Stocks Large Company DFA US Large Cap Value I Vanguard Growth Index Instl Small/Mid Co. DFA US Targeted Value I Vanguard Mid-Cap Growth Index Inv Vanguard Small Cap Growth Index Inv Intl/Global DFA Intl Small Company I DFA Large Cap International I Specialty DFA Intl Real Estate Securities I DFA Real Estate Securities I Bonds DFA Five-Year Global Fixed-Income I DFA Inflation-Protected Securities DFA One-Year Fixed-Income I frankylazers fucked around with this message at 17:28 on Jan 3, 2011 |
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Jan 2, 2011 21:49
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Chin Strap posted:Wow that sounds shady as hell. I mean I am sure it all above water, but that seems like one big game to effectively subvert the AGI limitations. I'll still consider it though, because it is certainly better than a non-deductible traditional IRA. the backdoor roth should be taken advantage when you can. if you have no other non-Roth IRA's, then half of the procedure is unnecessary (due to no pro-rata rule) making the backdoor Roth a no-brainer to deal with. A few posts back, i posted on taxable vs tax-sheltered strategy. The majority of my investments are in taxable accounts.
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Jan 2, 2011 21:56
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80k posted:the backdoor roth should be taken advantage when you can. if you have no other non-Roth IRA's, then half of the procedure is unnecessary (due to no pro-rata rule) making the backdoor Roth a no-brainer to deal with. What do you mean by "when you can"? It seems from the how I understand the rules, that there is no income cutoff for this. Or by "when you can" do you mean "if/until the loophole is closed"?
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Jan 2, 2011 22:01
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Chin Strap posted:What do you mean by "when you can"? It seems from the how I understand the rules, that there is no income cutoff for this. Or by "when you can" do you mean "if/until the loophole is closed"? yea i mean to do it while it is possible (before loophole is closed). and of course if the numbers work out (in the case that you DO have non-Roth IRAs complicating the issue).
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Jan 2, 2011 22:06
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So my bank has this option that I found out called a round-up savings account. It's a pretty good idea on their part as it's pretty much an account that the user will never touch as you can't directly deposit into it. I've had it for maybe two years now, and I use my debit for everything, I hate using cash. But man it's going to take 20 years for this to be worthwhile. Talk about long-term quote:
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Jan 3, 2011 00:07
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80k posted:yea i mean to do it while it is possible (before loophole is closed). and of course if the numbers work out (in the case that you DO have non-Roth IRAs complicating the issue). Can you clarify what loophole (or "backdoor Roth" thing) you are talking about? Is this the one where there is an income limit that can exclude people from making direct Roth contributions but not on a series of IRA contributions and IRA-Roth conversions? I remember reading something about that last year. vvv-- ah, thanks- sorry, I missed the string of posts up the page somehow. Everett True fucked around with this message at 04:57 on Jan 3, 2011 |
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Jan 3, 2011 01:26
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Everett True posted:Can you clarify what loophole (or "backdoor Roth" thing) you are talking about? Is this the one where there is an income limit that can exclude people from making direct Roth contributions but not on a series of IRA contributions and IRA-Roth conversions? I remember reading something about that last year. read the link i posted to a few posts back.
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Jan 3, 2011 02:30
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I was thinking of adding 10% in REIT's to my portfolio, but after reading http://www.bogleheads.org/wiki/Percentages_of_REITs_Present_in_Vanguard_Index_Funds VLACX has 1.3% and VISVX has 9.4% in RETI's so I'm wondering if I should even bother? My current portfolio is: VBMFX 30% (Total Bond) VGTSX 30% (Total Internatnional) VLACX 25% (Large Value) VISVX 15% (Small Value)
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Jan 3, 2011 04:25
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80k posted:put your 20% bonds in tax sheltered space, fill remaining tax sheltered space with less tax efficient stock funds (active funds if you plan to use them, or small cap stocks). Put only broad market index funds or ETF's in taxable (like Total Stock Market and Total International Stock index).
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Jan 3, 2011 07:04
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Fuschia tude posted:My understanding was that you should favor stocks over bonds in tax shelters over the long run (decades), because stocks tend to grow much more over that time scale, which means more capital gains. The distributions from bonds are a much smaller factor, comparatively. This Morningstar article goes into some details. The Morningstar article cites a T Rowe Price study that was done using a typical actively managed fund that had regular distributions and was done at the conclusion of a 20-yr unprecedented bull market in equities. It also assumed complete liquidation after x number of years with no tax management optimization. Based on longterm expected returns, and using tax efficient index funds or ETF's, and adding the ability to: - tax manage: specific share identification, tax loss harvest, donate appreciated shares to charity. - step-up basis upon death for hopefully a substantial remainder at the end of your lifetime. ... the situation changes drastically. Morningstar articles are among the most underwhelming articles i've ever read. Rarely terrible, but never useful.
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Jan 3, 2011 20:31
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80k posted:- tax manage: specific share identification, tax loss harvest, donate appreciated shares to charity. Any good articles/books on any of this sort of thing?
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Jan 3, 2011 20:37
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80k posted:The Morningstar article cites a T Rowe Price study that was done using a typical actively managed fund that had regular distributions and was done at the conclusion of a 20-yr unprecedented bull market in equities. It also assumed complete liquidation after x number of years with no tax management optimization. Also, unless I misread it, they had the capital gains at 20% and the total income tax rate at 28%. I thought capital gains were always 50% of your normal tax rate, although that may be because I'm remembering the canadian tax rules. Yup, that's it: quote:Canada quote:United States
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Jan 3, 2011 20:37
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Chin Strap posted:Any good articles/books on any of this sort of thing? not off the top of my head. But starting in 2011, brokerages are undergoing major changes to make specific share identification on sales easy to accomplish. The IRS also, for the first time, will allow those who chose average cost basis in the past to convert to specific share method. So I expect tax management to be even easier in the future. A rundown: - When you make donations to charity, ask if they accept mutual fund or stock shares. If so, when you choose shares to donate, instruct your broker to choose from the lot that has the lowest cost basis. This will raise your average cost basis at no cost to you or the charity (the charity pays no capital gains taxes). Your future tax burden is reduced. - When you sell shares, choose shares that have the highest cost basis, prioritizing shares that have been held longer than a year if it is a gain to take advantage of lower longterm capital gains rate. If selling at a loss, prioritize selling shares that have been held less than a year as short term losses are more useful for offsetting gains. - Tax loss harvesting: when you have a loss on some or all of your shares of a certain fund, sell those shares and buy a similar ETF or fund. For instance, sell S&P500 index fund and buy Large Cap index fund. You stay invested in the same asset class but can book a loss to save taxes. Pay attention to the Wash Sale rule. If you choose tax efficient broad market index funds, you have low turnover so you should have rarely any cap gains distributions. And the majority of your dividends are qualified (lower tax rate). If international funds, you can claim the foreign tax credit, which is something you loose if it is in tax sheltered space. The Morningstar missed these important details.
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Jan 3, 2011 20:52
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Any Canadians here? I have a few questions about RRSPs. Some of them seem like they might be a bit general, so if any US people want to chime in with how the system works there, I'd be curious to see. I just started looking into investment recently. Not a resident or making money here personally yet, but my husband is. However he doesn't have any investments/bonds/etc whatsoever (despite us not being big spenders and having a bit over 60K in savings) and up until my recent research had some totally crazy misconceptions about how retirement accounts work. Just money sitting in the bank and a maxed TFSA that doesn't do anything. So far I've got the idea of "max out your TFSAs with bonds and put a few good index funds (and maybe some bonds too depending on portfolio percentages) in your RRSP". I'm still confused a bit about those though. Can you have more than one RRSP? My husband's workplace matches 1k a year but only deals with the RBC bank, which doesn't seem to be as nice as TD when it comes to low fees and more index options. So can he make his main RRSP in TD, and then just put a thousand from his 18% a year into the RBC one? How do spousal contributions work? When I get residency I'll probably be studying for a while, so low income at best. Would he be able to put any additional money into my account, or is it always limited by 18% of however much I'm making? (I know I should definitely open up a TFSA for myself as soon as possible) How exactly do you get income taxed when you withdraw? Let's say you worked in province A but ended up retiring in province B, which one taxes you? What if you moved to another country? Let's say we decided to live/work in another country before retirement. Well, I assume you can't contribute anymore since you're not earning Canadian income, but I don't know. Do you just open a new retirement account in that country? Do you transfer the money somehow or just leave it in Canada? Are there any "gently caress you for expatriating" penalties? My husband's biggest worry about this stuff, other than the market crashing and burning, is that we'd need to take all the money out before retirement - e.g. for some emergency or one-of-a-kind opportunity for a project/investment that can't wait. The reason he never put money in was that he thought it was impossible to take out before 72 and wouldn't grow much (enough to compensate for that lack of liquidity) anyway. Well, now I've seen that tax-deferred growth is huge (correct me if I'm wrong), and you can take it out, you just get hit with extra taxes and can't put that amount back in later. However, is there a point where the tax-deferred growth would make up for withholding taxes? Or is it always better to go unregistered with money you think you might want to pull out before old age, even if it's 10-20+ years?
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Jan 4, 2011 05:22
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80k posted:not off the top of my head. But starting in 2011, brokerages are undergoing major changes to make specific share identification on sales easy to accomplish. The IRS also, for the first time, will allow those who chose average cost basis in the past to convert to specific share method. Thanks 80k. Just as an FYI to others in my situation. All of this sort of stuff is very new to me. I've read and understood Four Pillars of Investing, and follow the indexing philosophy. But as to tax implications of this stuff (mainly this is looking at least a year or two down the road for me, but still) I've been at a loss. I'm finding Bogleheads to be a good explanation of many of these terms. For example: http://www.bogleheads.org/wiki/Tax_Loss_Harvesting was very illustrative to me. If there are books people can recommend, I'm all ears.
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Jan 4, 2011 15:06
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I started my Roth 401K at etrade with the intent to invest in mostly Vanguard funds. Noticing now that they have 1-3K minimum deposits am I better off chipping in $1-200 a month in no minimum no transaction fee funds or should I just save for the minimum initial investment in Vanguard funds. This is just a secondary retirement plan for me as I have a pension through work that I'll be fully vested in soon!
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Jan 5, 2011 19:51
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This is a cross-post from my own thread. I recently switched jobs (and received a 32% pay increase) and thus switched 401(k) plans. The old plan (through Principal) had the following options:  And as of today here are my elections:  Here are the significantly lower expense ratios with Fidelity:  Should I roll the Principal balance into my new Fidelity plan and keep the same elections, or change the elections, or keep the money in the Principal account for some reason, or take it out and put it in a Vanguard fund (which I know nothing about)? Should I keep about the same elections? Should I look into this Vanguard thing? Should I cash it all out and get a Mini?
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Jan 5, 2011 20:06
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CornHolio posted:Should I keep about the same elections? Should I look into this Vanguard thing? Should I cash it all out and get a Mini? Those Fidelity options are pretty bad.
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Jan 5, 2011 20:43
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The Spartan 500 seems OK expense-wise. It's just an S&P500 index fund. Vanguard's S&P 500 index, VFINX, has an expense ratio of .18% (not sure what the management fee is, if there is one). So it compares favorably there. Otherwise I agree the Fidelity funds aren't as good as Vanguard's offerings, but if Corn gets employer matching he absolutely should max that in his Fidelity 401(k) account regardless.
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Jan 5, 2011 21:26
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Leperflesh posted:The Spartan 500 seems OK expense-wise. It's just an S&P500 index fund. Vanguard's S&P 500 index, VFINX, has an expense ratio of .18% (not sure what the management fee is, if there is one). So it compares favorably there. In his thread I advocated for just the fidelity target retirement fund. I know the S&P 500 is better in terms of expense, but then he needs to worry about offsetting that equity exposure with more bonds in the vanguard than a TR account would. Cornholio: That's fine, and in the end would be more efficient, but you'll have to do a bit more basic reading to understand what your risk profile looks like overall and what to hold in the Vanguard. Something like this: http://www.bogleheads.org/wiki/Lazy_Portfolios If you want to put the time into reading one book I would say the Boglehead Guide to Retirement Planning would be it.
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Jan 5, 2011 21:33
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Is it possible to drop an entire year's max of $16,500 at once into a 401(k)? I would prefer to do that than have some come out of my pay check every pay period... Does it depend on the company for which I work for?
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Jan 6, 2011 00:20
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Pissingintowind posted:Is it possible to drop an entire year's max of $16,500 at once into a 401(k)? I would prefer to do that than have some come out of my pay check every pay period... Does it depend on the company for which I work for?
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Jan 6, 2011 00:24
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I'm opening up a Roth IRA. I was planning on doing it through Vanguard and picking from their funds. However, I see that I can also choose my own stocks, bonds, etc to invest in and not use their funds. Is there any reason why I shouldn't do this (other than possibly losing all my money because I don't know what I'm doing)? Looks like there is a $20 annual fee for this service, which is 0.4% of $5,000 (the first 25 trades are free).
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Jan 6, 2011 01:06
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Pissingintowind posted:Is it possible to drop an entire year's max of $16,500 at once into a 401(k)? I would prefer to do that than have some come out of my pay check every pay period... Does it depend on the company for which I work for? What gvibes said. If you can afford to do without your first paychecks to do it, it would be prudent only in the sense that it allows you to guarantee company matching for the year in case you lose your job.
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Jan 6, 2011 01:06
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Brendas Baby Daddy posted:I'm opening up a Roth IRA. I was planning on doing it through Vanguard and picking from their funds. However, I see that I can also choose my own stocks, bonds, etc to invest in and not use their funds. Is there any reason why I shouldn't do this (other than possibly losing all my money because I don't know what I'm doing)? Don't pay the fee. Do a target retirement fund or one of the lazy portfolios I posted a few posts back.
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Jan 6, 2011 01:09
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gvibes posted:It has to come out of your payroll, I think, so probably not, unless you make a poo poo-ton of money. Some plans limit the percentage you can deposit from each paycheck, but I don't think there is a law preventing it. Haha, I don't make anywhere near that much money. I really am not a fan of the 401(k) system... I only want to add enough to get my company match, but it looks like that will be hard to figure out. Can I can change paycheck allocations to 401(k) on the fly? If so, I think I'll just have a few checks go 100% to 401(k) until I max my match, then turn go back down to 0%.
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Jan 6, 2011 01:12
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