|
100 HOGS AGREE posted:Whole life is absolute garbage. Why does a kid need a life insurance plan anyway. I think it's due to insurance companies having lots of money and thus able to convince old dumb people to buy stupid products. I even heard a radio ad the other day about how "there must be a catch with a reverse mortgage right? Well there's not." 
|
#
?
Sep 29, 2014 20:58
|
|
|
|
| # ? May 26, 2024 22:03 |
|
|
Nail Rat posted:I think it's due to insurance companies having lots of money and thus able to convince old dumb people to buy stupid products. Not only that but it's based on some policy that AMERICAN HERO RONALD REAGAN supported and is therefore obviously good! I hate those drat ads, I'm sure they scam old folks all the time.
|
|
#
?
Sep 29, 2014 21:37
|
|
|
Nail Rat posted:I think it's due to insurance companies having lots of money and thus able to convince old dumb people to buy stupid products. My mother decided to get one of those policies for $10k for me. I cashed that out once I was 18, the whole thing was worthless and a waste of money. There seems to be an obsession with bad insurance plans. Also what could possibly go wrong with a reverse mortgage and uncontrolled spending/living longer than expected.
|
|
#
?
Sep 29, 2014 22:12
|
|
|
Echo 3 posted:Out of curiosity, what country are you from? After reading your post I searched on Wikipedia and was surprised to see how many countries don't have capital gains tax. I'm from the uk, but I was 23 when I lived there and never had to learn about this. tax is pretty much automated and for your early life doesn't really need much attention, in comparison to the US. Thanks to everyone for answering my question!
|
|
#
?
Sep 30, 2014 20:05
|
|
|
I have a 401k rollover question. I contributed 11k to a pretax 401k for a job where I was a FTE. When the contract ended I went and found a job with another company. My new company does not offer a 401k plan. I have already fully funded my Roth IRA for the year. I would like to get the money out of the 401K sooner than later because the fee structure is pretty awful and the funds blow compared to Vangaurd. If that 11k is counted as income that will push me over the limit for a Roth IRA and I will have to deal with that. My two question are, Would rolling over my 401k count against the $5,500 contribution limit? Will I have to claim it as income if I roll it into a Roth IRA?
|
|
#
?
Oct 1, 2014 00:48
|
|
|
Sound_man posted:Would rolling over my 401k count against the $5,500 contribution limit? Nope quote:Will I have to claim it as income if I roll it into a Roth IRA? Yup... although not so much "claim" as "your 401k provider will tell the IRS about it so you'd better pay up"
|
|
#
?
Oct 1, 2014 00:55
|
|
|
Sound_man posted:I have a 401k rollover question. Just checking because I can't tell from your post if you know this or now: did you know that you can (and is generally the default choice) rollover a 401k to a traditional IRA, which keeps it pretax? No reason to roll to a roth unless you specifically want to convert to Roth and pay taxes on it. In the past, rolling over a pretax 401k into a Roth was not allowed, and so rolling over and conversion were two separate processes. Ever since they allowed rolling over directly into a Roth (combining the rollover and conversion process), it has only added to confusion, it seems.
|
|
#
?
Oct 1, 2014 01:21
|
|
|
Sound_man posted:I have a 401k rollover question. You have up to 60 days after leaving the company to do the custodian to custodian transfer for a 401k to IRA rollover. After 60 days it's counted as ordinary income by the IRS. Going IRA to Roth is also another taxable event but the tax can be kept fairly small if you have a smaller size IRA account.
|
|
#
?
Oct 1, 2014 05:24
|
|
|
etalian posted:You have up to 60 days after leaving the company to do the custodian to custodian transfer for a 401k to IRA rollover. According to the best information I can find, this is not true. The 60 day limit is for depositing a 401k payout into a qualifying IRA. This can be done years after leaving a job. In fact, if your employer is willing, they can perform a direct transfer at any time after you leave. Am I misunderstanding the internet?
|
|
#
?
Oct 1, 2014 05:44
|
|
|
Peanut3141 posted:According to the best information I can find, this is not true. The 60 day limit is for depositing a 401k payout into a qualifying IRA. This can be done years after leaving a job. In fact, if your employer is willing, they can perform a direct transfer at any time after you leave. Your information is correct. If its done as a custodian-custodian transfer, the 60 day limit doesn't apply.
|
|
#
?
Oct 1, 2014 12:38
|
|
|
Oscar Statue posted:Your information is correct. If its done as a custodian-custodian transfer, the 60 day limit doesn't apply. Correct since the IRS rule only applies when you go the lump sum distribution route to moving 401k money over to a IRA 
|
|
#
?
Oct 2, 2014 02:00
|
|
|
That helps a lot. The downside is I have to pay taxes on the money now but the upsdie is I can contribute over 15K to my IRA this year. I do plan to have the 401K money in a separate account for easy of tracking purposes.
|
|
#
?
Oct 2, 2014 16:46
|
|
|
If you rollover your 401k to a traditional IRA, this basically means that you can't backdoor Roth anymore, correct?
|
|
#
?
Oct 2, 2014 17:03
|
|
|
Henrik Zetterberg posted:If you rollover your 401k to a traditional IRA, this basically means that you can't backdoor Roth anymore, correct? You still can, but it will require you to pay taxes on a percentage of the conversion determined by the ratio of tax-deferred to post-tax contributions. So it doesn't work like it would without any tax-deferred IRA component where you can backdoor without paying any taxes.
|
|
#
?
Oct 2, 2014 17:28
|
|
|
The girlfriend is leaving her job where she had a Roth 401k, and the employer match went into a traditional 401k. She'll essentially initiate two rollovers on Vanguard, correct? Opening a Trad IRA and a Roth IRA? (She has neither yet). EDIT typo. GoGoGadgetChris fucked around with this message at 17:47 on Oct 2, 2014 |
|
#
?
Oct 2, 2014 17:40
|
|
|
flowinprose posted:You still can, but it will require you to pay taxes on a percentage of the conversion determined by the ratio of tax-deferred to post-tax contributions. Or you can roll it back into a 401k and do the backdoor.
|
|
#
?
Oct 2, 2014 18:51
|
|
|
GoGoGadgetChris posted:The girlfriend is leaving her job where she had a Roth 401k, and the employer match went into a traditional 401k. She'll essentially initiate two rollovers on Vanguard, correct? Opening a Trad IRA and a Roth IRA? (She has neither yet). Yes. If she ever anticipates a future where she might need to do backdoor Roth in the future though, it might be worth it to roll the traditional IRA into the Roth IRA immediately after the rollovers, and just pay the taxes. Also because if she prefers Roth in general, I'm guessing that traditional IRA balance would be too low to be of much help in asset balancing, etc.
|
|
#
?
Oct 2, 2014 18:58
|
|
|
If I want to setup direct deposit to my roth IRA on a monthly basis, am I going to bump into any problems setting the contribution to 458.34 and being $0.08 over the $5500 maximum end of year?
|
|
#
?
Oct 2, 2014 21:10
|
|
|
Yes, you will be over the maximum and probably have to file a bunch of bullshit paperwork over 8 cents. Personally, I put it in a savings account every month and dump it in the IRA before tax day.
|
|
#
?
Oct 2, 2014 21:15
|
|
|
Doesn't Vanguard let you set up a monthly, inbound transfer from a bank account, though? And it is smart enough to cap at exactly the limit? If so, set up your paycheck to DD into an online savings, and have Vanguard set up to withdraw from the online savings once a month.
|
|
#
?
Oct 2, 2014 21:20
|
|
|
.Z. posted:If I want to setup direct deposit to my roth IRA on a monthly basis, am I going to bump into any problems setting the contribution to 458.34 and being $0.08 over the $5500 maximum end of year? Yes it will be a hassle. Just contribute 458.33 and if the 4 cent difference really bothers you make an additional 4 cent contribution.
|
|
#
?
Oct 2, 2014 21:21
|
|
|
GoGoGadgetChris posted:Doesn't Vanguard let you set up a monthly, inbound transfer from a bank account, though? And it is smart enough to cap at exactly the limit? It does and that's what I'm currently doing. I just want to set it up so I never see the money in my bank account, for some reason the current setup annoys me. I'll just make some tiny deposit beginning of year and let the auto deposit take care of the rest.
|
|
#
?
Oct 2, 2014 21:28
|
|
|
.Z. posted:I'll just make some tiny deposit beginning of year and let the auto deposit take care of the rest. You're actually going to deposit 4 cents in because you want to be exactly at the limit? What the gently caress.
|
|
#
?
Oct 2, 2014 22:30
|
|
|
Assuming they keep the limit the same, just do 440 a month and put an extra 220 in on Jan 1st.
|
|
#
?
Oct 2, 2014 22:50
|
|
|
Inept posted:You're actually going to deposit 4 cents in because you want to be exactly at the limit? What the gently caress. I was thinking more along the lines of what Smugly suggested, but that's not a bad idea either. It's the same outcome either way.
|
|
#
?
Oct 2, 2014 23:21
|
|
|
I think they have a minimum amount allowed for a transaction.
|
|
#
?
Oct 2, 2014 23:27
|
|
|
Henrik Zetterberg posted:If you rollover your 401k to a traditional IRA, this basically means that you can't backdoor Roth anymore, correct? The backdoor Roth only works nicely if you don't have a big IRA balance or have a year of low income. 
|
|
#
?
Oct 3, 2014 03:54
|
|
|
GoGoGadgetChris posted:Doesn't Vanguard let you set up a monthly, inbound transfer from a bank account, though? And it is smart enough to cap at exactly the limit? Yes and yes.
|
|
#
?
Oct 3, 2014 15:39
|
|
|
SmuglyDismissed posted:Assuming they keep the limit the same, just do 440 a month and put an extra 220 in on Jan 1st. And if they do raise it, it'll be 6000 and thus divisible by 12! However after it goes up to 6500 it'll be a long wait before that happens again 
|
|
#
?
Oct 3, 2014 22:11
|
|
|
IRA contribution limit is staying the same for 2015, but 401k limit is going up to 18k.
|
|
#
?
Oct 3, 2014 22:13
|
|
|
Guinness posted:IRA contribution limit is staying the same for 2015, but 401k limit is going up to 18k. Is that going to raise the SIMPLE IRA limit to 12.5k? VVVV Yay! Next year I get to contribute 1040/month instead of 1000/month! VVVV MickeyFinn fucked around with this message at 02:18 on Oct 4, 2014 |
|
#
?
Oct 3, 2014 23:51
|
|
|
MickeyFinn posted:Is that going to raise the SIMPLE IRA limit to 12.5k? According to this, yes: http://thefinancebuff.com/2015-401k-403b-simple-ira-limits.html
|
|
#
?
Oct 4, 2014 00:22
|
|
|
This is the dumbest of dumbest questions but when looking at investment options i.e. on an ETF they often say things like their fees are 1%. My question is 1% of what? Simply everything you put into the account? Is it paid whenever you invest money, when you withdraw, or annually? Has there been a mega-post in here somewhere regarding fees/charges and how that relates to what makes the best fund to go with? Sorry for the basic questions. I'm in the UK so more general answers are probably better.
|
|
#
?
Oct 4, 2014 10:27
|
|
|
Sri.Theo posted:This is the dumbest of dumbest questions but when looking at investment options i.e. on an ETF they often say things like their fees are 1%. 1% of everything that's in the account, annually. It's a good idea to go for index funds that should have charges of much less than 1%.
|
|
#
?
Oct 4, 2014 10:57
|
|
|
Qwertycoatl posted:1% of everything that's in the account, annually. It's a good idea to go for index funds that should have charges of much less than 1%. I see, it's quite difficult to make a judgement on some of these funds due to the variation in fee structure. Thanks for the help.
|
|
#
?
Oct 4, 2014 13:07
|
|
|
Sri.Theo posted:I see, it's quite difficult to make a judgement on some of these funds due to the variation in fee structure. Thanks for the help. Do the maths (or look at the maths loads of other people have done for you) and see why you really really really want to avoid managed fund unless you have significant cash and know exactly what your doing. Im UK based too and I know HSBC and I believe Blackrock have the lowest fees on index funds unless you are investing > £100K or have access to some preferential rates for some reason. Edit also not sure if your aware but you can wrap these up in a nisa for tax free goodness of up to 15k a year depending on what if any contributions you make to a cash isa. Cast_No_Shadow fucked around with this message at 14:07 on Oct 4, 2014 |
|
#
?
Oct 4, 2014 14:05
|
|
|
Sri.Theo posted:I see, it's quite difficult to make a judgement on some of these funds due to the variation in fee structure. Thanks for the help. Nope, it's easy. Just pick index funds and pick the ones with the lowest fees. Edit: I guess you're in the U.K. I've heard things are a bit worse there (not as many index funds available, higher fees) but I hope you can find some good ones. Any fee that's not a basic expense ratio (like a load that you pay when you buy in or when you sell) is bullshit, try to avoid those.
|
|
#
?
Oct 4, 2014 15:20
|
|
|
Cast_No_Shadow posted:Im UK based too and I know HSBC and I believe Blackrock have the lowest fees on index funds unless you are investing > £100K or have access to some preferential rates for some reason. Do you have any recommendations to look at? I've just got my first 'real' job and have managed to save up £5,000 in an ISA with my bank. That feels like enough to cover any emergencies for me and now I want to put any future savings to better work (Natwest offers terrible rates). I've been looking at Nutmeg simply because it seems so much easier to add and remove funds, the difficulty is when you're dealing with such low amounts you don't get preferential rates. The HSBC FTSE 100 index offers these charges: quote:Annual Management Charge*² 0.10% Which I'm not sure how to compare versus Nutmeg's 1% for anything less then £25K and decreasing from there. Echo 3 posted:Nope, it's easy. Just pick index funds and pick the ones with the lowest fees. I really haven't seen any that don't add other charges on, are you saying that there should be funds available that only charge a percentage fee when you add or remove money? That would be vastly easier to calculate for me. Sri.Theo fucked around with this message at 23:02 on Oct 4, 2014 |
|
#
?
Oct 4, 2014 22:58
|
|
|
Sri.Theo posted:I really haven't seen any that don't add other charges on, are you saying that there should be funds available that only charge a percentage fee when you add or remove money? That would be vastly easier to calculate for me. Sorry, I realize now that I typed that sentence in a terribly confusing way. Let me try again: A "load" is a fee that you pay upon buying shares in a mutual fund ("front-end load"), or upon selling shares ("back-end load"). This is like a sales commission. An "expense ratio" is a fee that is taken out of a fund's assets every year. It pays for the costs of running the fund, which include the salaries of the people who manage the fund, and the costs of trading securities (because your mutual fund company will have to pay fees to buy and sell stocks). The expense ratio will be low for an index fund for two reasons: 1.) They don't pay some fancy active manager who claims to be a super-genius of stock-picking, they are just paying a regular Joe who knows how to buy and sell all the stocks in the index in the correct proportions, and 2.) They don't trade actively, so their transaction costs are just from whenever people buy into the fund or sell out of it. Loads are the type of fees I was referring to as "bullshit." They typically just go straight into the pocket of whatever rear end in a top hat convinced you to put your money into that fund (a.k.a. a middleman). There is no reason to pay a load so never do it.
|
|
#
?
Oct 4, 2014 23:34
|
|
|
|
| # ? May 26, 2024 22:03 |
|
|
OK everyone, I have questions and would like suggestions for how to move forward with investments/savings. I only started putting money into my 401k this last year for what are likely bad reasons. I have two primary questions; how much money should I spend on a new car (i know this might be the wrong thread for this) and how should I start investing and savings for the future. My stats: 26, living in San Diego, CA. Working in pharmacueticals and was just converted to a full time employee making 47k a year, plus benefits. I've been working in this career for 2.5 years now, and prior to this was a contractor and trying to save a nest egg + money for a new car when mine dies (93 honda civic, so maybe never but 250k miles says otherwise). My take home pay after paying for health benefits/a small amount in my FSA is roughly $1200 (I'm hourly and get about 5-10 hours of overtime weekly). I pay 850/month in rent/utilities. I don't eat out a whole lot, or buy a whole lot and am in general fairly frugal. I currently have ~$15k saved up, and want to keep 5K available as a nest egg. I will also need to have something as a downpayment on a car in the next six months (my car likely won't pass smog in january/february). I know my roth/401k aren't anywhere near the yearly max. Should I divert most of my income for the next two months to those to maximise on the pre-tax money? What kind of budget should I decide on for a few/used car? I'm sure there is a lot of expected info I didn't include, what else is missing? thanks
|
|
#
?
Oct 5, 2014 00:47
|
|
