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I need some advice. I have little-to-no bond exposure over my total portfolio -- 401k, Roth, ETF's (@ Scottrade), and cash in savings/money market. Would right now be a good time to attempt correcting my bond percentage a little bit, by using cash to make both 2010 and 2011 Roth contributions ($10k) for Vanguard Admiral shares in the Total Bond Fund?
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Mar 25, 2011 16:25
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Fuschia tude posted:Unless you are holding 50-100+ individual stocks, of course. Late to this one but 40 individual stocks across different industries is enough to diversify the stock portion of the portfolio. 40+ is just diminishing returns with added transactional fees per stock.
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Mar 25, 2011 17:02
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substitute posted:I need some advice. I have little-to-no bond exposure over my total portfolio -- 401k, Roth, ETF's (@ Scottrade), and cash in savings/money market. Sure that would work fine.
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Mar 25, 2011 17:18
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Orgasmo posted:Late to this one but 40 individual stocks across different industries is enough to diversify the stock portion of the portfolio. 40+ is just diminishing returns with added transactional fees per stock. I'll let William Bernstein answer why this is misleading and shouldn't really be considered by the average investor: http://www.efficientfrontier.com/ef/900/15st.htm
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Mar 25, 2011 17:19
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substitute posted:Would right now be a good time to attempt correcting my bond percentage a little bit, by using cash to make both 2010 and 2011 Roth contributions ($10k) for Vanguard Admiral shares in the Total Bond Fund? I'm in a similar situation (had decent cash at the end of 2008, and threw everything I could spare into stocks for two years, with the DJIA under 7k it seemed a no-brainer). Now I'm telling myself the above as I re-balance my portfolio by buying Total Bond Market.
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Mar 25, 2011 17:24
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This isn't particularly "long-term" (more medium-term), but I'm hoping someone in here can give a brief opinion on what I've done. I'm totally new to investing personally (though I've been exposed to investment concepts through college courses) so I guess I just want to know if I'm being completely dumb. Feel free to laugh at me if I am; I was basically just picking funds based on their holding %s. I recently took $23K and invested it in 3 Vanguard funds for a medium-term investment: mainly that I have no plans to need the money in the next 5 years, but I could envision scenarios in which I might, so I wanted to be somewhat conservative. I got advice awhile back in the thread and tried to use it appropriately. I picked: $10K to the Balanced Index (Admiral) - VBIAX $10K to the Short Term Bond (Admiral) - VBIRX $3K to the LifeStrategyIncome - VASIX I also have $25K still in savings. Based on my back of the envelope calculations that got me to about 70% Bonds / 30% Stocks with some very slight international exposure, which is what I was aiming for, and Vanguard's tools bear me out that I basically got there. Is this dumb? Is my targeted mix wrong for my time horizon? Am I in the wrong funds? If I take some of the rest of the $25K and put it in something, what would be a good idea? In case this helps: I've been maxing out my Roth with Vanguard and putting it in the Target 2050 fund, my 401(k) is with another company and in the highest risk option they have, and I'm 27. Thanks in advance for any insights; I get very nervous about money... Sophia fucked around with this message at 22:56 on Mar 25, 2011 |
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Mar 25, 2011 22:53
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Chin Strap posted:I'll let William Bernstein answer why this is misleading and shouldn't really be considered by the average investor: http://www.efficientfrontier.com/ef/900/15st.htm Just for grins I compared performance of an equal-weighted stock fund (Rydex S&P Equal Weight (RSP)) with Vanguard's VTI (total return index ETF) and SVSPX (State Street S&P 500 index fund ). Over 8 years the equal-weighted RSP fund outperformed both index funds, even though RSP's management fees (at 0.4%) were slightly higher than the index funds's fees, per the linked chart: http://finance.yahoo.com/echarts?s=...ource=undefined Over a 5-year period the RSP fund also performed better than the two index funds, but during the bear market downturn the equal-weighted RSP fund appeared to drop a little further than the index funds. http://finance.yahoo.com/echarts?s=...ource=undefined
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Mar 26, 2011 19:06
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skyscream92 posted:Or find a cheap used and pay cash. This is really what you should be doing anyway. Even if you invested the money, your $1000 isn't going to turn into $25,000 overnight or anything. Just stash it away in a smarty pig account or something similar for a few months and in no time, you'll be able to purchase a used car. And don't go into debt to get a new one. You guys are in a great position right now - both of you no debt, high combined income, living rent free - that's awesome. You should post your budget in the "Post Your Budget" thread and have people take a look. Or if you don't have one - make one. And then use mint.com like people have suggested. Chin Strap posted:3k a month for two people and feeding a third is still a holy fuckload when you have no debt and no rent. If you can't find it in yourselves to budget enough for a car without financing it with the giant amounts you have available now, you are going to have issues down the line when faced with real poo poo. I spend $1.5k/month on myself and it doesn't include rent (rent brings up my total to $3100/month just for myself) and I'm debt free. However, it would be really easy to cut back if I were saving for something like a car or a down payment.
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Mar 26, 2011 20:52
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I've got an investment issue that removes the simple zero sum game of interest and time calculations due to the IRA contribution cutoff. I can pay off $2000 in credit card debt this month and make a reduced $3000 contribution before the April 18th deadline and be debt free or I can wait another month or so with my credit card and make the full $5k and get my money into the IRA for 2010. I'm 27, I made ~34k last year, I will make about 64k this year, and being a federal employee, I am fairly certain that this will be the last year of my career that I can contribute to the traditional IRA as a deduction. Here's my choices and I'm just not sure what I want to do. Pay the minimum on the CC this month, put the 5k in a deductible traditional IRA for 2010, amend my return and collect ~$962, pay off the CC the following month with income/tax refund. Interest on the CC for the month should be about ~$40. Do the same as above, except for a ROTH. I don't get any immediate tax breaks, but I keep access to the money (subject to limitations) and would benefit later. Pay the credit card and use $3k in either of the above options. My thought is that $40 to defer or eliminate taxes on 35+ years of compound interest earnings is a good tradeoff. If it wasn't a hard and fast window where I could put as much in as often as I'd like at any time, I'd pay the CC and then go for the investments later. However, because the IRA contributions have a finite contribution window I think this seems a little harder to contemplate. Basically, am I an idiot for thinking the $2,000 earning tax free compound interest for 35+ years outweighs the $40 in interest from one month of CC debt. My thought is to use the 5k ROTH option, someone talk me out of it, or tell me this is a good idea. Edit: If I got a 5% return for 35 years on the 2k, that's $11,032 vs the $40 on interest. KennyG fucked around with this message at 21:52 on Mar 26, 2011 |
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Mar 26, 2011 21:50
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How much can an employee contribute to a 401(a) defined contribution retirement plan, where the plan says 8% employee contribution and 5% employer contribution? Is 8% a hard limit or is it like a 401(k) where you can contribute up to a federal limit? If you can contribute more than 8%, is the additional contribution before or after taxes? I found some resources (like this one) that said $49K is the limit for total 401(a) contributions (employer and employee combined), but I didn't understand all the limitations on that. $49K seems high, but 8% seems low, so either way I feel like I'm missing something. If this was a job offer in hand I'd just ask HR or whatever, but at this point I'm just curious about how these generally work.
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Mar 27, 2011 02:04
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KennyG posted:IRA/Roth IRA/Credit Card If you're sure that you'll be paying off the debt quickly, get the money in retirement. As for pre vs. post tax, you'd need to provide a lot more information for that to be answered, but either is a good idea. I'm a fan of the Roth myself, since I don't see taxes getting any lower any time soon, but YMMV. intensive purposes posted:defined contribution plan The plan is exactly what it says it is: Defined. You'll put in 8% exactly, and you'll likely be required to do so. The plan pools the money from all those who pay in and manages it as 1 giant fund - you don't get to pick specific investments, but you get a cheaper retirement plan (expense wise) because everything is all setup and it just runs. You cannot contribute more to the plan, but you can still open a personal (Roth) IRA or whatever for additional retirement savings, not to mention straight up investment accounts.
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Mar 27, 2011 02:51
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T0MSERV0 posted:The plan is exactly what it says it is: Defined. You'll put in 8% exactly, and you'll likely be required to do so. The plan pools the money from all those who pay in and manages it as 1 giant fund - you don't get to pick specific investments, but you get a cheaper retirement plan (expense wise) because everything is all setup and it just runs. You cannot contribute more to the plan, but you can still open a personal (Roth) IRA or whatever for additional retirement savings, not to mention straight up investment accounts.
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Mar 27, 2011 04:05
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T0MSERV0 posted:The plan is exactly what it says it is: Defined. You'll put in 8% exactly, and you'll likely be required to do so. The plan pools the money from all those who pay in and manages it as 1 giant fund - you don't get to pick specific investments, but you get a cheaper retirement plan (expense wise) because everything is all setup and it just runs. You cannot contribute more to the plan, but you can still open a personal (Roth) IRA or whatever for additional retirement savings, not to mention straight up investment accounts. This is picky, but while TomServo is correct that with a 401(a) the employer can mandate a certain employee contribution, that's not why it's called a defined contribution plan. 401(k) plans are also defined contribution, and are a subset of 401(a) plans in general, but they have no compulsory contribution amount. For those who care, it's called a defined contribution plan as an opposite term to a traditional pension plan, also called defined benefit. In defined benefit plans, your benefit amount is determined based on a specific formula (i.e. it's the part that's defined) and must be paid regardless of the money set aside for it. In a defined contribution plan, the money set aside is determined based on specific elections (i.e. the cash put in is the part that's defined, and can be $0 if someone doesn't contribute), but the end benefit is not guaranteed and fluctuates due to the vagaries of the market. However, intensive purposes, in your case with a 401(a), your contributions are indeed mandated by your employer and you cannot elect any more or any less. You can open up your own IRAs to make up for any lack in your retirement savings, though.
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Mar 27, 2011 05:03
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KarmaCandy posted:You should post your budget in the "Post Your Budget" thread and have people take a look. Or if you don't have one - make one. And then use mint.com like people have suggested. I just started using Mint, but it's a bit wonky because me and my fiancee share accounts, but have different CCs. The way that Mint pulls our online accounts means that alot of the account information is pulled twice (saving amounts, checking amounts, paycheck in/out), so I don't know how accurate it is. I want to put both of our online accounts on Mint just so it automatically pulls info from BOTH credit cards. I think I fixed it (by excluding the repeats from Mint manually), but I guess I'll have to wait until April to see if everything is being pulled correctly. I do really like how it maps everything out for you though. To be honest, our budget is pretty much all over the place right now. Prior to our current situation, we lived in a 1 bedroom with car loan/rent totaling up to over 1600$/mo on lower incomes (this was actually only about 2 months ago). During that time, we sat down every month and checked our budget to make sure we were still saving enough. Afterwards, we got moved into this house and we've been trying to buy furniture and other things since this house was completely bare so our spending has been a bit out of control. Definately thanks for the advice in this thread. I think for now (for minimal headache), we are thinking about moving our 900$/mo savings into two seperate Roth IRAs and keep our 10k in savings for emergency liquid funds. This way, we should be able to max our 401(k) work contributions, as well as max out two Roth IRAs every year.
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Mar 28, 2011 23:51
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I had a SIMPLE IRA with my previous employer through a local accounting firm. I've just started the process of transferring it to Vanguard into one of their target retirement funds. Originally, I was going to convert it into a Roth, since I'm more interested in a Roth IRA for continued retirement investment. The person I spoke to said that they will have to bring it over as a traditional first, and then convert the traditional to a Roth. I got to thinking that maybe I should leave that money in a traditional, and open a new Roth with Vanguard to put new money into. I'm also not too keen on paying the taxes I'll owe by converting the traditional. I have a Roth IRA with sharebuilder that I also want to bring to Vanguard, but it has less than $3000 in it. I wouldn't mind adding cash to it to bring it up to $3000 in order to be able to bring it to Vanguard. So does this make any sense? Should I keep the ~$9,000 or so I'm bringing from the SIMPLE IRA in the traditional, or should I convert it? If I should keep it, should I contribute to it in addition to the Roth, or does it not make sense to contribute to both? Thanks!
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Apr 4, 2011 17:00
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Briantist posted:I had a SIMPLE IRA with my previous employer through a local accounting firm. I've just started the process of transferring it to Vanguard into one of their target retirement funds. Originally, I was going to convert it into a Roth, since I'm more interested in a Roth IRA for continued retirement investment. The person I spoke to said that they will have to bring it over as a traditional first, and then convert the traditional to a Roth. Depends on a lot of circumstances. Diversification is a great idea in every sense, and by keeping money in the pre-tax account you're gaining some tax-status diversification. On the other hand I personally don't see taxes getting any lower, so getting money into a Roth when you can is a good idea. On the other other hand if you've got a Roth 401(k) or something that you didn't bother telling us about with 6 figures in it, this changes things again. So does your income for the year, as you'll pay income tax on whatever amount your roll over, which can swing a lot depending on your bracket. Basically we don't have enough information at the moment to overwhelmingly point to one or the other as the "best" move. That said, neither option is bad, really. If for simplicity's sake you want to combine the accounts so you've only got 1 account to mess with, do it. This is particularly true if you'll be locked into a different type of pre-tax account (like your employer's 401k plan) that can get you pre-tax exposure back. If you want to post some more details, go ahead, but for 9k in the grand scheme of things it probably won't matter much one way or another - do what works best for you.
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Apr 4, 2011 21:33
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We got bought out last year and the new company is switching us new underlings from our existing American Funds 401(k)s (which I have been reasonably happy with) to ING. This was announced in November and I've been pestering HR for details ever since. While they have been unable to provide me with minor details like, say, our fund selection, I have managed to glean the following:
We're finally having a presentation/meeting with the ING people on Wednesday in preparation for a rollover on April 15th. I plan to come prepared. Besides basic questions about fees, commissions, etc., what should I ask?
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Apr 5, 2011 05:57
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T0MSERV0 posted:Depends on a lot of circumstances. Diversification is a great idea in every sense, and by keeping money in the pre-tax account you're gaining some tax-status diversification. On the other hand I personally don't see taxes getting any lower, so getting money into a Roth when you can is a good idea. On the other other hand if you've got a Roth 401(k) or something that you didn't bother telling us about with 6 figures in it, this changes things again. So does your income for the year, as you'll pay income tax on whatever amount your roll over, which can swing a lot depending on your bracket. Basically we don't have enough information at the moment to overwhelmingly point to one or the other as the "best" move. Right now I don't have any other retirement accounts. I just started a new job in January, and while I don't have anything with them at the moment, after 2 years they will contribute (not match, just give me) 9.3% of my salary to a retirement account of some kind, so assuming I'm still there by then, I'll have a pre-tax account at that time. I think what I'll do based on your description is complete the rollover to Vanguard as a traditional IRA, and then I'll rollover my Roth from Sahrebuilder into a Roth at Vanguard, so I'll have one of each at Vanguard. I'm thinking at that point that I should really just make additional contributions to the Roth, but I'm still not sure on that point. Do you still not have enough information to tell one way or the other?
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Apr 5, 2011 18:50
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Briantist posted:Thanks T0m, Sounds like a fine plan to me. This will leave you with both a Roth and Traditional IRA at Vanguard, and your employer's retirement account eventually. Once you are like this, you can rollover money from the trad to the Roth if you wish, or you can just leave it alone. A good reason to do so would be if you are paying a low income tax and expect the make more money in the future (promotion/raise/etc.) - you can pay the taxes when its low and never mess with it again. A second benefit of combining the accounts is that it would open up additional investment options to you: since Vanguard's fund minimums can be somewhat large for people starting out, you can get more flexibility if all the money is in one pool vs. split. Obviously this problem will (hopefully) go away over time, so it's not a major concern. One other comments: you don't have to roll the entire account over at once - if you find yourself butting up against a tax bracket and want to move a portion over, you can just move some of the money rather than the whole account. Basically if you do what you plan on doing, you'll be set to stop or move on as you wish. There's no great wisdom that makes rolling over vs. keeping it a great/terrible idea, so if you want 1 account, roll it, and if you don't mind having 2, then keep them separate.
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Apr 5, 2011 21:40
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So it turns out I had more money in my savings account than I realized. I recently placed $5,000 into an Roth IRA through Vanguard (Buy Target Retirement 2050), which would be for 2010. Should I place another $5,000 into the same fund for 2011 or should I place it into something else?
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Apr 6, 2011 10:28
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obi_ant posted:So it turns out I had more money in my savings account than I realized. I recently placed $5,000 into an Roth IRA through Vanguard (Buy Target Retirement 2050), which would be for 2010. Should I place another $5,000 into the same fund for 2011 or should I place it into something else? If you don't want to do the research needed to manage things yourself, the Target Retirement fund is perfectly fine. Buy more.
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Apr 6, 2011 14:42
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I just recently started my first "real" job out of university and am frantically trying to find the best ways to invest my money so that A) My money can make me money for future and B) I don't want to spend all my money on dumb things so investing is a good way to get it away from me. I have read the stickies and read through some of the threads and just want to make sure I'm on the right track and making the best choices. I am in Canada, as I know that matters. Here is where I stand: I am 25, live at home and make about 36k (  ) a year. I recently switched banks to PC Financial (ya ya my bank is a grocery store) to avoid any fees, get higher interest rates and still have access to CIBC mutual funds. I currently have been putting my money into the CIB300 Canadian Index mutual fund and then just leaving some in my chequing account for spending.Aside from continuing to invest in the mutual fund whenever I can, what else or what should I be doing with my money to make it grow? should I be making use of the tax free savings account which I can open for free? it seems if the mutual fund performs even below average I would see higher return from the fund than from a TFSA, even after paying tax on gains. Please help/advise!
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Apr 6, 2011 16:55
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Naes posted:I just recently started my first "real" job out of university and am frantically trying to find the best ways to invest my money so that A) My money can make me money for future and B) I don't want to spend all my money on dumb things so investing is a good way to get it away from me. Do you have access to the same funds inside your TFSA? If you do, there's no reason not to put it into a TFSA in my opinion. Any gains you make inside the TFSA will not be taxed when/if you withdraw them whereas right now, you will have to pay taxes on gains from your mutal fund. I would max out your TFSA before doing any investing outside of it personally. Then you could look at either investing in an rrsp if you are looking for retirement planning, or seperate accounts if it is money you are going to want for something else down the road. Keep in mind a TFSA is not just a straight cash only account. You can hold stocks, funds etc in them as well depending on the bank and the type of accounts they offer for it.
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Apr 6, 2011 19:34
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You might also want to look into the e-Series mutual funds from TD. It's a bit of a pain to get an account set up and the branch doesn't want to deal with you since they're supposed to be online-only, but they offer the lowest fees for mutual funds in Canada. The minimums are pretty reasonable, especially if you do preauthorized deposits. asmallrabit is right though, a TFSA account doesn't need to be a savings account. You can have a TFSA brokerage account as well to hold stocks, bonds or mutual funds. I hold mine at Questrade, but you can get one at TD for the e-Series mutual funds as well.
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Apr 7, 2011 03:17
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Chin Strap posted:If you don't want to do the research needed to manage things yourself, the Target Retirement fund is perfectly fine. Buy more. What's the best way to make the jump? At my new job I've got almost a year and a half of max contributions and just stuck $5K in my Roth IRA, so I'm at the point where I think I should be moving away from the generic Target accounts at Vanguard but am not yet sure how to plan to do so.
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Apr 7, 2011 08:08
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Tulenian posted:What's the best way to make the jump? At my new job I've got almost a year and a half of max contributions and just stuck $5K in my Roth IRA, so I'm at the point where I think I should be moving away from the generic Target accounts at Vanguard but am not yet sure how to plan to do so. You say this as if there is something bad about a target account, and there isn't. Really without being careful doing it alone can often be worse than not because of getting swept up in trends, not sticking to your original plan, etc. However if you do want to learn more, read. A good introductory book is the Bogleheads Guide to Investing.
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Apr 7, 2011 12:29
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asmallrabbit posted:words spoof posted:more words Holy poo poo, my mind is blown. I actually didn't realize that I could have tax free mutual funds etc etc. Unfortunately at my current bank I only have access to a tax free savings account and not any other tax free investment options. You guys are awesome. I assume the $5000 per year limit applies to these types of tax free accounts too? either way that's perfect for a small fish like me because I can afford to max that out every year and then just continue to invest normally into other avenues if I have "extra" (nobody has extra money) money laying around. I will have to look into other banks, including the ones you guys mentioned, to find the best tax free options for me. Aside from maxing a tax free account (mutual fund or other), any further suggestions on things I should do with my money to make it grow? I know that is such a broad question but given you know what I'm going to be doing, you guys might have some ideas. Thanks again!
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Apr 7, 2011 19:45
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Naes posted:Holy poo poo, my mind is blown. I actually didn't realize that I could have tax free mutual funds etc etc. Unfortunately at my current bank I only have access to a tax free savings account and not any other tax free investment options. You guys are awesome. I'm seriously amazed at the number of people in Canada who either aren't aware, or don't understand the TFSA. For young people especially in my opinion, it is the single best investment account out there and the huge potential it has to save you oceans of money in the future is under appreciated. Keep in mind though there are certain restrictions on TFSAs and what you can put in them (you can't go short in one, for example). What other tax free accounts are you referring to? I'm only aware of the TFSA. After maxing out your TFSA (you should have $15,000 of contribution room if you haven't put anything in it yet), the next thing you generally look at is an RRSP to lower your tax liability. The market has had a hell of a run in the last 9 months, so I'd advise caution with riskier investments at this point. Being liquid after a large pull back can give you a chubby when you look at the amazing buying opportunities. I only wish I had more cash back in early 2009... I was salivating.
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Apr 7, 2011 20:05
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Don Homhoos posted:I'm seriously amazed at the number of people in Canada who either aren't aware, or don't understand the TFSA. Same goes for IRAs and 401(k)s in the USA. Sure, many people in the 28%+ tax brackets know about it, but just about anybody can significantly benefit from these programs and those in the lowest income brackets even get double bonus points for contributing in the way of a Retirement Savings Incentive credit where they can have up to a $1000 non-refundable credit applied to their taxes, thereby increasing many of the refundable credits (like earned income and making work pay). It shocks me the number of people who have no idea what a $450/mo contribution will do for them in 40 years, especially when it's pre-tax.
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Apr 7, 2011 22:58
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Naes posted:Holy poo poo, my mind is blown. I actually didn't realize that I could have tax free mutual funds etc etc. Unfortunately at my current bank I only have access to a tax free savings account and not any other tax free investment options. You guys are awesome. You should be currently entitled to $15,000 for your TFSA. If you still want to use it for long term investment vehicles be aware that if your investment loses value you lose that contribution space. A good idea might be to keep 1/3 in cash, 1/3 in GIC, 1/3 in ETFS/mutual funds. Depending on your situation. Having all your money in both your RRSP and TFSA tied into long term investment vehicles at your age and situation isn't the best idea. Also remember that if you're just out of university and have been filing taxes through university you should have a decent amount of tax credits accumulated that you can use to knock down your tax bracket while you stuff your TFSA. If you still have money left over dump it into an RRSP. Just remember that taking out money for a housing down payment is easier with your TFSA than an RRSP (you can borrow from your RRSP but you have to pay it back). I'm in a similar position to you and I decided to just go 100% laddering 5 year GIC in my TFSA. Current rates are 3.5% which are quite reasonable. I'm not going to chase an extra couple percentage points of interest with only $15,000 in capital. I have a couple thousand dollars maturing every year that I can either use or roll into new certificates. Keeps my money liquid while earning me a fairly good return with no risk. cowofwar fucked around with this message at 03:59 on Apr 8, 2011 |
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Apr 8, 2011 03:46
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Where do you guys put your long term investments when in taxable accounts?
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Apr 8, 2011 15:57
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Hey, do you guys think gold is a long term buy or sell right now at 1470? (USER WAS PUT ON PROBATION FOR THIS POST)
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Apr 8, 2011 16:07
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spf3million posted:Where do you guys put your long term investments when in taxable accounts? Of the funds in my current asset allocation, the Vanguard TSM fund looked to be the most tax efficient, so I am putting money there. gvibes fucked around with this message at 16:47 on Apr 8, 2011 |
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Apr 8, 2011 16:24
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Couple questions: if I don't have a 401(k) with my employer (no matching, etc)..what should I do after maxing out my Roth IRA? Someone who works for an investing company that I talked to suggested a life insurance policy (not a term policy), but one that he says I can contribute like $1,200/yr to and have it grow tax-free and I can choose to "cash it out." It sounded pretty good from what he was telling me about it..what do you guys think? Any experience?
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Apr 8, 2011 17:52
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ABlix- posted:Couple questions: if I don't have a 401(k) with my employer (no matching, etc)..what should I do after maxing out my Roth IRA? Someone who works for an investing company that I talked to suggested a life insurance policy (not a term policy), but one that he says I can contribute like $1,200/yr to and have it grow tax-free and I can choose to "cash it out." It sounded pretty good from what he was telling me about it..what do you guys think? Any experience? He's almost certainly trying to sell you a pile of poo poo to earn a commission. Whole life policies make sense to shelter assets under a specific set of circumstances that your tax attorney or accountant could give you more detail about, stay away from salespeople of any and all financial products.
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Apr 8, 2011 19:16
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AreWeDrunkYet posted:He's almost certainly trying to sell you a pile of poo poo to earn a commission. Whole life policies make sense to shelter assets under a specific set of circumstances that your tax attorney or accountant could give you more detail about, stay away from salespeople of any and all financial products. Yeah -- I met him at a Business Networking meeting and thought I could fish some free information out of him so I asked him casually what he was doing for his retirement (without making it seem like I was a potential client) and he said "life insurance policy and a Roth IRA" so I asked him about the life insurance policy and he had this hand out he gave me. I said I'd look into it and never wanted to buy it through him or anything if I was going to do it. Not surprisingly, I suppose, he called me today and wanted to set up an appointment to go over my finances. I told him I was too busy and to try me back in a month. I guess I'll look more into it, but my original question remains. What should I do after maxing out my Roth IRA for the year if my employer doesn't offer a 401(k) (I'm self employed).
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Apr 8, 2011 19:40
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ABlix- posted:Yeah -- I met him at a Business Networking meeting and thought I could fish some free information out of him so I asked him casually what he was doing for his retirement (without making it seem like I was a potential client) and he said "life insurance policy and a Roth IRA" so I asked him about the life insurance policy and he had this hand out he gave me. I said I'd look into it and never wanted to buy it through him or anything if I was going to do it. Not surprisingly, I suppose, he called me today and wanted to set up an appointment to go over my finances. I told him I was too busy and to try me back in a month. http://www.irs.gov/pub/irs-tege/forum08_401k.pdf
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Apr 8, 2011 19:45
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ABlix- posted:Couple questions: if I don't have a 401(k) with my employer (no matching, etc)..what should I do after maxing out my Roth IRA? Someone who works for an investing company that I talked to suggested a life insurance policy (not a term policy), but one that he says I can contribute like $1,200/yr to and have it grow tax-free and I can choose to "cash it out." It sounded pretty good from what he was telling me about it..what do you guys think? Any experience?
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Apr 8, 2011 20:30
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ABlix- posted:I guess I'll look more into it, but my original question remains. What should I do after maxing out my Roth IRA for the year if my employer doesn't offer a 401(k) (I'm self employed).
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Apr 8, 2011 20:55
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This might be a stupid question, but my broker lists 'wire transfer' as having a $35 fee. I have a national bank account connected to my brokerage account, do you think moving money between these accounts counts as a wire transfer? Seems brutal if it does. Also my broker has a huge number of canadian mutual funds available (many companies offering similar funds). Any suggestions on which mutual fund companies provide the highest quality funds with lowest MERs? cowofwar fucked around with this message at 21:27 on Apr 8, 2011 |
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Apr 8, 2011 21:23
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