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Harry posted:I forgot to ask this, but where did you get a savings account with that high of a rate? Did it have a minimum amount to get that? There are a few online banks offering rates like that. Incredible Bank is offering 1.05% on balances between $2500-$250,000. Most seem to fall in the .75% to .90% range however.
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Feb 22, 2012 19:04
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Niwrad posted:There are a few online banks offering rates like that. Incredible Bank is offering 1.05% on balances between $2500-$250,000. Most seem to fall in the .75% to .90% range however. How easy is it to transfer between those and your checking account? I have a penfed savings account sitting around which gets like .2%, and my main problem with it is they send a check.
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Feb 22, 2012 19:08
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Harry posted:How easy is it to transfer between those and your checking account? I have a penfed savings account sitting around which gets like .2%, and my main problem with it is they send a check. I haven't used Incredible Bank (I use ING), but I assume it's like the other online savings accounts. You essentially link accounts to it similar to Paypal. Then you can transfer money in and out within 2-3 business days by putting in a request. You may want to double check on that though. ING has a competitive rate (0.80% I believe) and is extremely easy to use. They are supposedly going to be adding an option to deposit checks via your smartphone in the Spring. When my checking account gets too large, I just login to ING and make a transfer for money into the ING account. When I need money from it, I login and make a request for a withdrawl and it's in my checking account in a couple days. About as easy as you can get.
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Feb 22, 2012 19:34
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Harry posted:I forgot to ask this, but where did you get a savings account with that high of a rate? Did it have a minimum amount to get that? Harry posted:How easy is it to transfer between those and your checking account? I have a penfed savings account sitting around which gets like .2%, and my main problem with it is they send a check.
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Feb 22, 2012 19:52
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Niwrad posted:ING has a competitive rate (0.80% I believe) and is extremely easy to use. They are supposedly going to be adding an option to deposit checks via your smartphone in the Spring. When my checking account gets too large, I just login to ING and make a transfer for money into the ING account. When I need money from it, I login and make a request for a withdrawl and it's in my checking account in a couple days. About as easy as you can get. FYI, I got that email from ING about the Capital One purchase and mobile app as well. Went straight into a Capital One branch to close my checking account there, and they told me that the ING and CapOne accounts/systems are only going to stay separate for another 1.5 years.
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Feb 22, 2012 20:22
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Our 401k at work finally switched over (it's been a months-long process as Vanguard takes over our retirement accounts, our pension and retirement plans changed, etc). If you guys could help me out I would appreciate it. Here's my existing 401k asset mix: 93% short term reserves, .7% bonds and 6.3% stocks. I've only got 2 funds that I'm putting money in which is Vanguard Retirement Savings Trust IV and the Vanguard Target Retirement 2050 Fund. The majority of my balance is in the first, which, from the description, appears to be very conservative. I'm 30 and don't plan on retiring until 65 (if I can). I put 6% of my income to the 401k, the company matches 5% and I have another 3% of my salary contributed to a self-directed retirement plan by my company as well. This is just how my funding transferred over to Vanguard, I can change the allocations and funds easily, but I don't know which ones to look at or target. My wife's mixture is totally different, but she's been at this company a lot longer than I and has more money in her account. Neither of us understand enough to know if we've got our allocations set correctly. I don't know what to aim for - Vanguard says 'Hey, you'll want 85% of your income in retirement' which my calculators say is just not going to happen without me throwing in a poo poo ton more money every month. Where should I go to learn more about what to do? Thanks.
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Feb 23, 2012 14:51
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Solaron posted:Neither of us understand enough to know if we've got our allocations set correctly. I don't know what to aim for - Vanguard says 'Hey, you'll want 85% of your income in retirement' which my calculators say is just not going to happen without me throwing in a poo poo ton more money every month. Where should I go to learn more about what to do? As far as allocations go, you'll want mostly domestic stock (S&P 500, Russel 2000), some foreign stock and some bonds/fixed income (the rule of thumb is your age in bonds). A good starting place would be age% in bonds, then divide the rest equally among the other 3 index funds. I think the 85% number is bogus. What you need is enough money to cover all of your expenses. Speaking of which, what are your expenses? Do you have any debt?
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Feb 23, 2012 15:23
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streetlamp posted:Should I be putting more towards the repayments or keeping it around that and putting more towards my 2012 Roth IRA? Honestly, the thing you need to be doing right now is applying yourself to getting a better salary. If in a year you get a job making $10k more, this won't be a problem. I don't know what line of work you're in, but make sure you are kicking rear end and taking names and also applying to lots of jobs even if the one you have is okay. The best way to earn pay bumps is by job hopping when you're young, so always be on the lookout!
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Feb 23, 2012 15:53
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nelson posted:As far as allocations go, you'll want mostly domestic stock (S&P 500, Russel 2000), some foreign stock and some bonds/fixed income (the rule of thumb is your age in bonds). A good starting place would be age% in bonds, then divide the rest equally among the other 3 index funds. We have debt, but not a lot compared to our income. We make ~130k/yr together, we each save ~14% of our income via 401k/employee match and the self-directed retirement plan. Our debt is $50k in student loans between the two of us, $65k on a home and $20k between our 2 cars. I've changed the allocations to be more stock heavy and move out of some of the short-term things we had. Vanguard has a 2045 Retirement Fund that appears to be a decent deal - I assume those work out pretty well, since as we get closer to the retirement date the fund will gradually move from stocks to more bonds, etc, yes? Thanks for your help. 
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Feb 23, 2012 16:02
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Okay, I have a ton of savings and am already contributing to my 401k quite a bit. I just, however, started a Roth IRA last year (technically this year but for 2011) and just stuck 5k into Vanguard's 2050 fund or whatever. Here's my question. I'm going to put another 5k in, and then another 5k for my (to be) wife when we get married this year. Should I just keep on with the 2050 fund? Or is there a significantly better way of investing for retirement than target funds? I'm not great at picking individual funds and doing proper research.
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Feb 23, 2012 16:18
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silvergoose posted:Okay, I have a ton of savings and am already contributing to my 401k quite a bit. I just, however, started a Roth IRA last year (technically this year but for 2011) and just stuck 5k into Vanguard's 2050 fund or whatever. Personally, I have come to the conclusion that the TR funds are a little more heavilty tilted towards equity than debt, and domestic than international, than I would prefer, so I self-manage. e: re a "ton of savings," your asset allocation should consider all investments, not just each account separately.
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Feb 23, 2012 16:26
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gvibes posted:Generally, the TR funds are going to be pretty solid. Once you get to 15k or so, with typical 3k fund minimums, you could certainly self-manage if you wanted, but I don't think it's necessary. So it would be reasonable to, if I think the target funds are too tilted towards stocks (which I think I do agree with you on, at least a bit) I could maybe go for putting some into a bond fund (still through an IRA) for the fourth 5k or whatever? I guess it's hard for me to grasp good asset allocation when it feels like I need to actively manage it but still treat it as an incredibly long-term deal. Hence just tossing my retirement stuff into target funds, where I can kinda ignore them. "a ton of savings" meaning I have some non-retirement money in large-cap, emerging markets, bonds, some stocks. But all non-retirement, so I don't know if it is part of my asset allocation in that respect? Bwee!
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Feb 23, 2012 16:40
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silvergoose posted:So it would be reasonable to, if I think the target funds are too tilted towards stocks (which I think I do agree with you on, at least a bit) I could maybe go for putting some into a bond fund (still through an IRA) for the fourth 5k or whatever? If it's simply a question of stocks/bonds ratio, you can simply buy a more near-term target retirement fund.
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Feb 23, 2012 16:47
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flowinprose posted:If it's simply a question of stocks/bonds ratio, you can simply buy a more near-term target retirement fund. Huh, quite true. I actually did that for my 401k and completely forgot the fact that I could do similar for IRA. Thanks!
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Feb 23, 2012 19:29
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silvergoose posted:So it would be reasonable to, if I think the target funds are too tilted towards stocks (which I think I do agree with you on, at least a bit) I could maybe go for putting some into a bond fund (still through an IRA) for the fourth 5k or whatever? silvergoose posted:"a ton of savings" meaning I have some non-retirement money in large-cap, emerging markets, bonds, some stocks. But all non-retirement, so I don't know if it is part of my asset allocation in that respect? Bwee!
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Feb 23, 2012 19:49
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gvibes posted:If it's just the equity/bonds ratio that bothers you, yeah, flowinprose is right. Down payment on a house, babies in the future. Essentially, it's money that I don't need right now, but will probably want some of in the next 5 years, but don't want it sitting in a really tiny % savings account if possible. Plus none of them are pre-tax or gains post-tax (i.e. they are not 401k or IRA).
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Feb 23, 2012 20:02
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I am looking for some quick advice here. I liquidated an IRA to fund a down payment in 2011. I now owe approximately $980 on my 2011 taxes. I've read that I can open and contribute to an IRA account before April 17th and still have it be tax deductible, however I am also participating in an employer sponsored retirement program. Where can I find out what kind of tax-deductible contributions I can make to an IRA so I don't have to write a check to the IRS?
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Feb 23, 2012 20:27
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flowinprose posted:If it's simply a question of stocks/bonds ratio, you can simply buy a more near-term target retirement fund. I would point out that there isn't much of a difference in stock/bond ratio until you hit almost 50 years old. The difference in the Vanguard 2050 fund and 2035 fund is 2% more bonds. Even the 2025 fund is only 20% bonds as opposed to 10% when you start. So if someone planned on doing something like 120 minus age to determine their ratio, they'd need to buy additional bonds separately.
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Feb 23, 2012 21:15
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bam thwok posted:Depends how "indeterminate" the timeframe really is. TIPS come with 5-year duration at the shortest, and 30 at the longest. If you want to try to do a ladder of some kind, then you'll probably want to go through a broker as you mentioned. Essentially it's a bad time to be buying houses in California, and I personally believe that the market has more to go down. Additionally, I may end up moving for work in the next 6 months. So "indeterminate" means probably 1-2 years at a minimum, probably more. quote:I'd suggest a very low risk portfolio of ETFs covering blue-chip fixed income, treasuries, and municipal bonds to both beat out inflation and earn a modest return while you figure out when you'll need the money. Is this the kind of thing I can put together myself through a low cost online broker? Or something I need to have a professional look at? It's unexciting safe, low yield holding pattern for her money, and I know that, so I'm not looking to have returns eaten up badly by fees. Tewdrig posted:You can buy them from TreasuryDirect. You have to sell TIPS on the open market, however. Great info, thank you. Clearly we should be looking at funds rather than individual bonds. quote:TIPS can be a good option, but it's an investment and has risk. A comparable investment could be an intermediate term bond fund. Check out both of these: It looks as if the TIPS fund is actually losing money with a negative yield. Is this having do with the inverse relation of price and yield from the WSJ article? quote:A safer investment would be a short-term fund, but you may not keep up with inflation: Ideally I'm trying to beat inflation because you can park the money in a CD or savings account and get around 1%, which still doesn't beat inflation but is also essentially risk-less.
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Feb 23, 2012 21:24
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moana posted:Honestly, the thing you need to be doing right now is applying yourself to getting a better salary. If in a year you get a job making $10k more, this won't be a problem. I don't know what line of work you're in, but make sure you are kicking rear end and taking names and also applying to lots of jobs even if the one you have is okay. The best way to earn pay bumps is by job hopping when you're young, so always be on the lookout! Thanks Moana, I'm a graphic designer and 30k is pretty much the average for a junior designer in my area. If you really get lucky you might get close to 35k. And actually my 5 year plan is going free lance and running my own studio. I have definitely learned quickly that the fastest way to move up is to hop around, no designer gets promoted.
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Feb 23, 2012 21:24
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silvergoose posted:Down payment on a house, babies in the future. Essentially, it's money that I don't need right now, but will probably want some of in the next 5 years, but don't want it sitting in a really tiny % savings account if possible.
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Feb 23, 2012 21:27
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Niwrad posted:I would point out that there isn't much of a difference in stock/bond ratio until you hit almost 50 years old. The difference in the Vanguard 2050 fund and 2035 fund is 2% more bonds. Even the 2025 fund is only 20% bonds as opposed to 10% when you start. So if someone planned on doing something like 120 minus age to determine their ratio, they'd need to buy additional bonds separately. You're right, there aren't very big differences until you get quite near-term. I personally don't use them, since I have to balance between my TSP, my wife and my IRA's, and my taxable accounts.
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Feb 24, 2012 00:28
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Perhaps a silly question, but I just opened an RIRA account with Sharebuilder and deposited the $5000 max for 2011. I know that since the contributions to it are all post-tax I don't necessarily need to file it on my tax return, but for tax year 2012 will I still have to file all the 1099/K-1 info for the account like with a normal taxable brokerage account (since I will have allocated it in 2012)?
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Feb 24, 2012 00:33
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Solaron posted:We have debt, but not a lot compared to our income. We make ~130k/yr together, we each save ~14% of our income via 401k/employee match and the self-directed retirement plan. Our debt is $50k in student loans between the two of us, $65k on a home and $20k between our 2 cars. You're welcome (but don't blame me if the market crashes)! The retirement fund should work nicely. It sounds like you're putting plenty into retirement accounts so concentrate on getting those debts paid off next. I'd probably start with the highest interest rate (usually the cars) and go from there. nelson fucked around with this message at 04:23 on Feb 24, 2012 |
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Feb 24, 2012 04:19
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Guinness posted:Perhaps a silly question, but I just opened an RIRA account with Sharebuilder and deposited the $5000 max for 2011. I know that since the contributions to it are all post-tax I don't necessarily need to file it on my tax return, but for tax year 2012 will I still have to file all the 1099/K-1 info for the account like with a normal taxable brokerage account (since I will have allocated it in 2012)? Roth IRAs have no annual tax paperwork unless you withdraw.
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Feb 24, 2012 07:56
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edit: going to own thread
Geizkragen fucked around with this message at 23:06 on Mar 3, 2012 |
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Feb 24, 2012 08:49
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Sounds like you're being responsible and doing everything right. You mention "another option" for if you get laid off in investing. While optimizing asset class allocation and picking good funds is a great skill, understand you're not going to be killing the market enough to turn your savings into a livable income unless you're already filthy rich. Individual stock picking or making more risky leveraged bets on derivatives should be left to the investment professionals who do it for a living for hedge funds and asset management firms.
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Feb 24, 2012 09:50
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When I say options I mean "have enough money to move to a better job market" or have a few more months living expenses. I have margin trading and option trading available with my brokerage account but I haven't asked for either capability.
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Feb 24, 2012 22:00
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Guinness posted:Perhaps a silly question, but I just opened an RIRA account with Sharebuilder and deposited the $5000 max for 2011. I know that since the contributions to it are all post-tax I don't necessarily need to file it on my tax return, but for tax year 2012 will I still have to file all the 1099/K-1 info for the account like with a normal taxable brokerage account (since I will have allocated it in 2012)? If you're single and make less than ~27,000 you can get a tax benefit. If you're married, more. Otherwise, just contribute and wait for the sweet tax free returns.
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Feb 25, 2012 02:43
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Niwrad posted:I would point out that there isn't much of a difference in stock/bond ratio until you hit almost 50 years old. The difference in the Vanguard 2050 fund and 2035 fund is 2% more bonds. Even the 2025 fund is only 20% bonds as opposed to 10% when you start. So if someone planned on doing something like 120 minus age to determine their ratio, they'd need to buy additional bonds separately. There's no way around this short of "buy additional bonds separately" is there? I'd really like to have something more like the 2030 ratio, but holding it at that level for several years (the way that the newer TR funds hold at 90% stocks for awhile). Am I correct in assuming that the 3k minimum applies for moving money between funds as well, meaning that I couldn't just start with a target retirement fund and then tweak it as I saw fit until I had several thousand dollars more in it?
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Feb 25, 2012 05:11
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Torael_7 posted:There's no way around this short of "buy additional bonds separately" is there? I'd really like to have something more like the 2030 ratio, but holding it at that level for several years (the way that the newer TR funds hold at 90% stocks for awhile). Yes. If you want to have a certain ratio and keep it there then buy separate (non-target-year) funds to create the desired balance. However, if you only have $3000 to invest, I wouldn't worry about it too much. You can get a better balance when you add the next $3000.
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Feb 25, 2012 05:23
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Warren Buffett spoke about asset allocation in his latest Berkshire Hathaway shareholder letter:quote:Investments that are denominated in a given currency include money-market funds, bonds, mortgages, quote:Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it quote:My own preference – and you knew this was coming – is our third category: investment in productive Read the whole thing: http://www.berkshirehathaway.com/letters/2011ltr.pdf (it starts on page 16)
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Feb 25, 2012 17:10
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quote:no sense feeling strapped after this buying binge Nice to see that he has a sense of humor. I don't think it's ever been a secret that "investment" in gold is pretty dumb, but putting it the way he did makes it so clear just how dumb putting money in gold really is.
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Feb 26, 2012 00:10
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totalnewbie posted:Nice to see that he has a sense of humor. I also liked this one: quote:You can fondle the cube, but it will not respond. I was taking some online T/F quiz about portfolio myths and it had a doozy to the effect of: quote:Holding 5% in gold is a good idea, hedge inflation, blah blah also http://en.wikipedia.org/wiki/Nixon_Shock
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Feb 26, 2012 00:28
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How does one go about investing in farmland? (specifically a small time investor)
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Feb 26, 2012 04:18
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I'd imagine stock in related companys like Grain Corp.
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Feb 26, 2012 05:18
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Saint Fu posted:How does one go about investing in farmland? (specifically a small time investor) You didn't really ask for opinions on the idea itself, but I'd do some pretty heavy research before I put much money into farmland right now. http://www.fdic.gov/bank/analytical/quarterly/2008_vol2_4/farmland.html http://www.extension.iastate.edu/agdm/wholefarm/html/c2-70.html
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Feb 26, 2012 06:02
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BCR posted:I'd imagine stock in related companys like Grain Corp. This isn't a great idea. Lots of these companies have hedging operations which would defeat the purpose of what you're trying to accomplish.
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Feb 26, 2012 06:15
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I'm not saying its a great idea. I only know a handful of agricultural companys like Monsanto and Grain Corp and its what came to mind. I'll do some more reading.
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Feb 26, 2012 06:20
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This NPR Planet Money podcast episode is relevant to the farmland discussion: http://www.npr.org/blogs/money/2011/10/04/141053761/the-tuesday-podcast-the-land-boom In any event, Buffett is more trying to make a point that gold doesn't create any value. He's not saying to go and invest in farmland specifically, just invest in productive things like Exxon or Coke or a railroad or whatever, not a lump of metal that sits in a vault.
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Feb 26, 2012 08:07
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