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I knew I would stumble upon a method called the lazy method!
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May 10, 2011 20:03
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Femur posted:I knew I would stumble upon a method called the lazy method! Hey it isn't a negative thing. It makes it less likely to gently caress up.
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May 10, 2011 20:04
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I am starting to wonder if there was any value into investing into those mutual funds whereas there were matching ETFs that are showing higher returns since I've been tracking.
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May 11, 2011 02:37
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Femur posted:I am starting to wonder if there was any value into investing into those mutual funds whereas there were matching ETFs that are showing higher returns since I've been tracking. sounds odd for a fund to be matching a ETF performance, what fund is this?
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May 11, 2011 05:08
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I currently have 3 retirement accounts. Two I actively contribute to, the first being a personal Vanguard Roth IRA and the second being an employer sponsored 401K plan. My third account is a 401K from a previous employer, which I cannot contribute to. In the interest of consolidating all my accounts I'd like to roll over the third account into one of the first two. Which one would make the most sense in my situation? I contribute 8% of my pre-tax salary into my current employer 401K, and they contribute 3%. I max out the Roth IRA on a yearly basis. I was thinking of rolling over into my current 401K as that has a higher yearly contribution limit. Does that sound about right? Would I have to pay any taxes on it when it's rolled over? Thanks.
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May 11, 2011 06:40
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Dr. Jackal posted:sounds odd for a fund to be matching a ETF performance, what fund is this? I think he's saying his fund doesn't match the comparable ETF and as such is wondering why he is invested in the fund. I asked that question here a while back, the answer was pretty much, "Switch to the ETF." So I did.
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May 11, 2011 14:18
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Anti-Hero posted:I currently have 3 retirement accounts. Two I actively contribute to, the first being a personal Vanguard Roth IRA and the second being an employer sponsored 401K plan. My third account is a 401K from a previous employer, which I cannot contribute to. In the interest of consolidating all my accounts I'd like to roll over the third account into one of the first two. Which one would make the most sense in my situation? Your contribution limit will not be relevant.
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May 11, 2011 14:25
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gvibes posted:Roll over to Vanguard. It won't be able to go into the same account, but Vanguard is sweet. There will not be taxes, unless you decide to convert it to a roth. Is the contribution limit not relevant during a rollover only, or not relevant if you have more than one 401k? If I understand correctly, the advice here is to maintain a 3rd account but consolidate the non-employer accounts both under Vanguard. Then he would have a work 401k, and a Vanguard Roth+401k?
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May 11, 2011 17:33
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The Welper posted:Is the contribution limit not relevant during a rollover only, or not relevant if you have more than one 401k? And your last sentence is correct.
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May 11, 2011 18:25
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gvibes posted:The contribution relevant is not relevant to rollovers. It matters when you put new money into a 401(k). This is old money that is already in a 401(k). Ok, I'll give Vanguard a call about setting up a 401(k) with them and rolling my old employer 401(k) into it.
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May 11, 2011 18:48
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Anti-Hero posted:Ok, I'll give Vanguard a call about setting up a 401(k) with them and rolling my old employer 401(k) into it. Basically, set up an empty rollover IRA, get your account number, and then get the money transferred into that account from your current 401(k) provider.
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May 11, 2011 19:04
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Murgos posted:I think he's saying his fund doesn't match the comparable ETF and as such is wondering why he is invested in the fund. Yeah, I will make the switch after the holding period I think.
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May 11, 2011 20:45
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I'm very new at this and have been researching for only about a week now, so make fun of me if you will. I have a bunch of money sitting in a savings account that I want to put into a mutual fund, but at this point I just want to get money in there as I'll have more motivation to do more research once I'm committed. I'm 24, and willing to except a reasonable amount of risk. I want to invest long term, but move it around to different funds over the years and possibly draw it out when necessary. I'm going to make a Vanguard account and to start with, I'm thinking I'll do a 50/50 split at $3,000 each in VGSTX and VTSMX. Once I get more experience with this, I want to throw an additional $6,000 into two more lower risk Vanguard funds. Do I need to do more research? I'm contributing a bunch (not max, but enough) to my 401k and plan to open a Roth IRA which I'll contribute max or close to max soon - I'm probably going to open the Roth and put money into the mutual funds around the same time. My main goal right now is to get all of that money out of my savings account and into investments. Also, in case it matters, after all of this, I'll still have about 15k left in savings, so I have plenty of liquidity.
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May 12, 2011 02:44
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Has anyone rolled over a 401k that has both Roth funds and traditional funds? I've maxed my Roth contribution each year, but my employer does some matching in traditional and some additional bonuses are paid as traditional as well. I assume this has all been recorded but curious how this will shake out. Would the Roth portion be merged and the traditional stay separate? Also is there a time limit you have to rollover? My research indicates if I withdraw I have 60 days to redeposit, but can I hold onto this 401k for a couple years and convert later. I ask because this year and next my income will likely fluctuate a lot and hopefully in December of this year I will know where I'll end up in 2011 and have a better idea of 2012.
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May 12, 2011 02:52
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alreadybeen posted:Has anyone rolled over a 401k that has both Roth funds and traditional funds? I've maxed my Roth contribution each year, but my employer does some matching in traditional and some additional bonuses are paid as traditional as well. I assume this has all been recorded but curious how this will shake out. Would the Roth portion be merged and the traditional stay separate? Yea roth and pretax will stay separate. No time limit to initiate the rollover unless the plan has a time limit. But might as well do a rollover now as it is not a taxable event and you can get the process over and done with. As your tax situations change, it is a piece of cake to do conversions between the traditional portion and the roth portion after it has been rolled out of your company plan and already in your personal iras. If at all possible avoid the withdraw/redeposit within 60 days method because tax will be withheld and you need to cover the amount with your own money. Do a direct rollover between custodians if the plan allows it. Just tell them you want a direct transfer and never want to touch the money so as to avoid withholding. 80k fucked around with this message at 18:14 on May 12, 2011 |
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May 12, 2011 18:09
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Yeah so i'm totally new to all of this and i'm trying to find out where to start learning what to do, i'm from the UK and all the long term investment advice past what stocks/mutual funds/debt investments seem to either be different over here or have wildly differing names. Anyhoo so i'm about to come into a large amount of money for me (~£65,000) and for now I just plan to stick it into an easy access saving account of some kind (one of those ones with 3% + 2.5% for the first 12 months) until I work out what to do with it. I'm currently not contributing anything to a savings account or have the income to support it so i've never really looked into all this. Is there a good guide for the various low to medium risk investing options specifically for someone from the UK? I don't want to go down one route without knowing all the options available and so on. Any help would be absolutely fabulous!
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May 18, 2011 00:35
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brian posted:Yeah so i'm totally new to all of this and i'm trying to find out where to start learning what to do, i'm from the UK and all the long term investment advice past what stocks/mutual funds/debt investments seem to either be different over here or have wildly differing names. http://www.bogleheads.org/wiki/UK_Investing
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May 18, 2011 00:42
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gvibes posted:Maybe this will give you a start? Brilliant, thanks, it seems like a good starting point to learn what most of this means, even if stuff like tax implications seem confusing at first.
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May 18, 2011 01:12
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So I'm a little overwhelmed at the moment.. At the moment, I have ~$13,000 in a Roth-IRA that is un-invested, along with $4,500 in a SEP (with Fidelity). I've spent most of today reading Ramit Sethi's "I will teach you to be rich" chapter on investing and his recommendation to either use a life-cycle fund and not worry about it or to manage your own diverse portfolio of index funds / bonds / etc. I guess pretty basic stuff that you all know.. I thought at first that I would manage my own portfolio, but the research and the reallocation / reevaulation every 12 months seems intimidating to me. Not sure if I can trust myself to make the right decisions. So at the moment, I'm leaning toward buying a life-cycle fund. Since I'm 22 now and my retirement age is 59.5, I'll be looking at retirement at around 2045 or so .. What do I look at when picking a life-cycle fund? I feel a bit overwhelmed and felt like I just spent a lot of hours reading and all I got out of it is more confusion. Which is why I'm leaning toward perhaps simply buying into a life-cycle fund. I'm even having second-guesses about having all this money in my Roth-IRA. It's great and all, but I guess I'd rather use the money to travel + hike, etc. Who the gently caress knows if I'll even live to retirement age? On second thought, I do have enough money to travel+hike,etc otherwise I wouldn't have put it in here in the first place so I guess it's a nice perceived safety cushion? Bah, help me out goons! ABlix- fucked around with this message at 16:26 on May 18, 2011 |
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May 18, 2011 03:15
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Well, once it is in a Roth IRA, you can't take it out without penalties. So I'd say don't take it out. Target retirement funds are fine, they sound good for you. If you decide down the road that you want to take a more active role in managing your money, you can always sell the fund and but other things. As long as it stays in the Roth IRA, there are no penalties.
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May 18, 2011 05:38
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spf3million posted:Well, once it is in a Roth IRA, you can't take it out without penalties. So I'd say don't take it out. Target retirement funds are fine, they sound good for you. If you decide down the road that you want to take a more active role in managing your money, you can always sell the fund and but other things. As long as it stays in the Roth IRA, there are no penalties. My understanding of Roth IRA rules is that you can withdraw any money up to the amount you have contributed at any time without penalty. Am I misunderstanding something?
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May 18, 2011 07:41
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spf3million posted:Well, once it is in a Roth IRA, you can't take it out without penalties. This is incorrect. flowinprose posted:My understanding of Roth IRA rules is that you can withdraw any money up to the amount you have contributed at any time without penalty. Am I misunderstanding something? This is correct. If you contribute 10k and it grows to 12k, you can draw the account down to 2k any time you like. This is one of the reasons that people tend to recommend starting Roth IRAs during the emergency fund stage: get the money in when you can, and if you need it you can get it back, but if you don't you're that much better off and got the contribution in before the window closed. There are penalties for withdrawal of earnings or rolled-over amounts, however. This site plain-Englishes them pretty nicely: http://www.obliviousinvestor.com/roth-ira-withdrawal-rules/
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May 18, 2011 11:28
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ABlix- posted:So I'm a little overwhelmed at the moment.. Target retirement funds are a great choice for someone like you. I would just say go with a well trusted company (Vanguard is one of the best), take their TR 2045/2050 fund, and go with it. As far as should it be in your account at all, tax advantaged IRA space is valuable, and if you don't fill it for a particular year, you lose it. So you want to take advantage of it as much as you can. Also with the magic of compounding, the earlier you get it in there, the more worthwile it is.
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May 18, 2011 11:45
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T0MSERV0 posted:This is incorrect. 
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May 18, 2011 12:03
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Chin Strap posted:Target retirement funds are a great choice for someone like you. I would just say go with a well trusted company (Vanguard is one of the best), take their TR 2045/2050 fund, and go with it. Hm, if my IRA is in Fidelity -- could I still buy the Vanguard TR funds? edit: looks like I could but there's a $75 transaction fee (?). Would it be better to transfer my IRA to Vanguard rather then pay this fee or buy into a Fidelity target retirement fund? ABlix- fucked around with this message at 16:33 on May 18, 2011 |
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May 18, 2011 16:20
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ABlix- posted:Hm, if my IRA is in Fidelity -- could I still buy the Vanguard TR funds? Fidelity is another fine company. Use theirs.
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May 18, 2011 17:10
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Chin Strap posted:Fidelity is another fine company. Use theirs. Are you sure? The Vanguard has a higher Morningstar rating and this article makes me think twice of using Fidelity's life cycle funds. I can buy Vanguard's lifecycle funds with my fidelity accounts, but there is a $75.00 fee.
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May 18, 2011 17:23
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ABlix- posted:Are you sure? The Vanguard has a higher Morningstar rating and this article makes me think twice of using Fidelity's life cycle funds. I can buy Vanguard's lifecycle funds with my fidelity accounts, but there is a $75.00 fee. Yeah didn't quite realize the difference in ratios. Transfering to Vanguard would be the best, but right now anything is better than leaving it uninvested. I see no reason to pay a $75 fee just to buy the fund.
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May 18, 2011 17:38
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Chin Strap posted:Yeah didn't quite realize the difference in ratios. Transfering to Vanguard would be the best, but right now anything is better than leaving it uninvested. I see no reason to pay a $75 fee just to buy the fund. Thanks. Sorry for the million questions.. I already have a Schwab investor account (I use their checking account and don't have any money in the investor account). Do you know if Schwab has any decent life-cycle funds? Also, does it cost anything to transfer my IRA's to Schwab or Vanguard from Fidelity?
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May 18, 2011 17:53
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ABlix- posted:Thanks. Sorry for the million questions.. I already have a Schwab investor account (I use their checking account and don't have any money in the investor account). Do you know if Schwab has any decent life-cycle funds? Also, does it cost anything to transfer my IRA's to Schwab or Vanguard from Fidelity? I don't really know about transfer costs. Schwab has lifecycle funds for 2010 - 2040. The ones I looked at had 0.83% net expenses. Some tickers if you want to look closer are: SWERX 2040, SWIRX 2035, SWDRX 2030
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May 18, 2011 17:57
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ABlix- posted:Thanks. Sorry for the million questions.. I already have a Schwab investor account (I use their checking account and don't have any money in the investor account). Do you know if Schwab has any decent life-cycle funds? http://www.schwab.com/public/schwab...gory&filter=All On that list there doesn't seem to be a single one that is both low expense and you don't have to pay a load/fee. As far as cost it looks like Fidelity might charge a 50 dollar transfer fee, but that will be made up for in savings from not paying 75 bucks every time you need to buy more target fund.
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May 18, 2011 17:58
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ABlix- posted:Thanks. Sorry for the million questions.. I already have a Schwab investor account (I use their checking account and don't have any money in the investor account). Do you know if Schwab has any decent life-cycle funds? Also, does it cost anything to transfer my IRA's to Schwab or Vanguard from Fidelity? They do but the ratios are much higher than Vanguards'. Just go with Vanguard. Fidelity charges around $50 to close an IRA so that will be deducted before the money is transferred to Vanguard. You will make up that money in no time with the lower expenses at Vanguard. You can initiate the transfer through the Vanguard website when you open an IRA at Vanguard (just select that the funds are coming from another institution, choose Fidelity, and continue). You may never even need to talk to a Fidelity rep. I've done about a dozen transfers from Fidelity to Vanguard and it has always been a smooth process.
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May 18, 2011 18:01
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80k posted:They do but the ratios are much higher than Vanguards'. Just go with Vanguard. Fidelity charges around $50 to close an IRA so that will be deducted before the money is transferred to Vanguard. You will make up that money in no time with the lower expenses at Vanguard. Just initiated a transfer of all Roth-IRA funds and mailed out all the forms. I guess I'll keep my SEP-IRA at Fidelity for now and maybe do something else with those funds rather then purchase into a life-cycle fund..
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May 18, 2011 22:23
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I am reading a lot of bogleheads, and there's a lot of good advice there on balance and sound investing. I tried to read Motley Fool, but the forum layout there is pretty lackluster. Are there any other websites you guys visit? I am kinda just trying to read up on ideas for good ETFS and MF to invest in.
Femur fucked around with this message at 22:35 on May 18, 2011 |
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May 18, 2011 22:33
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Are Roth IRA's unmanaged or is it just mine? I thought they were similar to 401k where they invest your money into the portfolio or fund you pick. I have a Roth IRA with USAA and I just noticed it's just been sitting in money market earning .02%. I have the option to place trades, any suggestions on what I should do with it? Stock? Mutual fund?
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May 19, 2011 06:56
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FooGoo posted:Are Roth IRA's unmanaged or is it just mine? No suggestions from me on what you should in though, I use Vanguard's target retirement fund.
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May 19, 2011 14:17
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FooGoo posted:Are Roth IRA's unmanaged or is it just mine? And yeah, I would just look at a Target Retirement/Lifecycle-type fund.
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May 19, 2011 16:04
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gvibes posted:They are self managed, so if you aren't managing it, then I guess it is unmanaged. Though I would think that it would require you to select a fund when you opened the account. Ok wow, I guess it's my fault for not doing my own homework but somehow I expected everything to work out on it's own, but turns out my money (albeit, not much) had just been sitting there for two years. Got it in a Target Retirement fund now though... Thanks for the heads up.
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May 20, 2011 07:14
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My company was recently sold, so while I get to keep my job etc., our retirement stuff is getting killed and I need to decide what to do with it. I've got a 401(k) that I plan on rolling into an IRA (still considering if I want to Roth it or not), but rather than match it my company has a profit sharing plan that the contribute to instead. Basically it means I've got money stuck in shares of company stock, both preferred and regular. I had been thinking that I would roll it into an IRA as well and that would be the end of it, but today I heard about a plan that seems to have zero downside, and I'm afraid that it seems to good to be true, so I wanted to run it past people to hopefully get some perspective on this: Apparently since it's a profit sharing plan, I'm able to get some tax advantages if I take a lump sum distribution. I can put a portion into an IRA, but if I decide to take it out of the tax-deferred account, rather than pay income tax on the market value of the shares of stock, I'm able to pay taxes on the cost basis of the underlying shares. For the regular shares, this is virtually market value and I planned on rolling them into an IRA, but for the preferred shares, the situation gets neat: apparently the cost basis for 100% of the preferred shares in the plan is $7.82, while the market value is $67.41 as I type this. I will still be subject to the 10% tax penalty since I'll be taking a distribution long before I'm 59.5 or whatever the cut off is. Based on those numbers, though, even with paying the income taxes now AND the 10% tax penalty, by my math I'm coming out WAY ahead if I pull the preferred shares out of tax-deferred and move them to a regular brokerage account. Is there some downside to this that I'm missing? The move seems like such a blatantly good idea that I'm fearful that I missed some nuance or quirk that would screw it up. Anyone got experience with this sort of deal?
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May 20, 2011 20:20
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T0MSERV0 posted:Based on those numbers, though, even with paying the income taxes now AND the 10% tax penalty, by my math I'm coming out WAY ahead if I pull the preferred shares out of tax-deferred and move them to a regular brokerage account. Is there some downside to this that I'm missing? The move seems like such a blatantly good idea that I'm fearful that I missed some nuance or quirk that would screw it up. Anyone got experience with this sort of deal? You are going to be paying a penalty that you would not pay if you left the preferred in the tax-deferred account. If you just roll the 401k to a Trad/Roth IRA, you wont pay any tax. You are paying taxes on your GAINS which is calculated from your cost-basis. So it sounds like the profit-share plan was just allowing you to buy preferred options at a lower strike price than market (or at market). You always pay taxes on your gains, not on the sales. That is unless you magically got a share for free. You should look into rolling it into a Trad/Roth IRA unless you need the cash.
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May 20, 2011 21:41
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