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sadus posted:We're trying to get a company 401k going at work, though we are still really small headcount wise, Vanguard looks to deal with even startups though so hopefully that works out. I have been explaining how they have the lowest fees and are awesome, but some other thing my boss found is offering Transamerica, they are even crappier than Fidelity I'm assuming? Why do bosses always want to use terrible actively managed funds? Do the providers give kickbacks or something?
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Mar 26, 2015 13:13
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It's a subtle difference, but the *price* of the market is what others will pay for it. The *value* is what profits the market generate and how much those profits will grow over time. The underlying value of an investment is how much profit it returns, in interest, dividends, or company profits reinvested into the company. The price is a different thing altogether. Anyway, point being, if you're wondering if the market is overpriced or underpriced, you should be looking at the current price in relation to the current strength of the businesses that make up the market, and if you agree with the growth rate required to justify the current price in relation to the current earnings. Past price means jack poo poo if the companies are stronger/weaker than they were yesterday.
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Mar 26, 2015 13:30
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Nail Rat posted:Why do bosses always want to use terrible actively managed funds? Do the providers give kickbacks or something? Of course not, kickbacks would be illegal! They give maintenance fee discounts and signup bonuses.
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Mar 26, 2015 14:33
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District Selectman posted:It's a subtle difference, but the *price* of the market is what others will pay for it. The *value* is what profits the market generate and how much those profits will grow over time. The underlying value of an investment is how much profit it returns, in interest, dividends, or company profits reinvested into the company. The price is a different thing altogether. Of course, all of this kind of analysis doesn't take into account macro shocks like climate change or long term macro trends like American consumers consistently having less and less money to spend.
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Mar 26, 2015 16:19
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My bro-boss was just looking at some "outsourced HR company" that claimed they could help with 401k and health insurance despite us having < 10 employees. Besides the 401k sucking the insurance rates were like 40% higher than healthcare.gov, yeah no thanks.
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Mar 26, 2015 16:30
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What are the pros and cons of prepaid plans vs savings plans for a 529? I live in Texas, which is one of the states that has a prepaid plan that is accepting new applicants, and I want to get some savings started for my first nephew/niece that's going to be born in a few months.
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Mar 26, 2015 17:13
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The Mandingo posted:What are the pros and cons of prepaid plans vs savings plans for a 529? I live in Texas, which is one of the states that has a prepaid plan that is accepting new applicants, and I want to get some savings started for my first nephew/niece that's going to be born in a few months.
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Mar 26, 2015 20:56
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I think so, according to the website quote:Account holders purchase Tuition Units, which represent a fixed amount of undergraduate resident tuition and required fees charged by Texas public colleges and universities. The number of units needed varies depending on the school, but generally 100 units represents 30 semester hours, which is considered to be one academic year. So it looks like you buy a "Tuition Unit" and then in 18 years they are redeemed to pay for tuition, regardless of the cost?
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Mar 26, 2015 21:17
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The Mandingo posted:What are the pros and cons of prepaid plans vs savings plans for a 529? I live in Texas, which is one of the states that has a prepaid plan that is accepting new applicants, and I want to get some savings started for my first nephew/niece that's going to be born in a few months. Pro: you are using today's dollars to buy some percentage of their future college costs irregardless of what that will end up costing when they go. Which would potentially (probably) be a huge difference. Con: It locks them in to certain colleges i.e. in this case, public Texas colleges. So if your nephew/niece ends up wanting to go to any other school they are poo poo out of luck for using that college fund. I just had a kid and, personally, I went with a 529 because I don't want to be a parent who is like, "You are going to college. But only this list, sorry." But then again, the savings plan is probably a MUCH better deal if you are okay with the con. I think it's very reasonable to go with either based on personal philosophies/thoughts about colleges/how much you eventually want the investment to be worth.
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Mar 26, 2015 21:44
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ExtrudeAlongCurve posted:"You are going to college. But only this list, sorry."
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Mar 26, 2015 22:08
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So the thought is that college will get more expensive than it is today in ~18 years? That seems sort of hard to believe considering the trending value of an undergrad education.
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Mar 26, 2015 22:10
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SiGmA_X posted:IMO parents should do this, and same with degree lists they're willing to pay for. A lot of 18yo's aren't able to figure that crap out on their own. My parents basically did this when it came down to NYU at $45k/year or UW at $7k/year. They were all "congratulations on getting in, but..." I was mad at them for about a week, but in retrospect it's the best decision they ever made for me. And I had a loving fantastic and productive time at the UW without graduating well into six figures of debt.
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Mar 26, 2015 22:14
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SiGmA_X posted:IMO parents should do this, and same with degree lists they're willing to pay for. A lot of 18yo's aren't able to figure that crap out on their own. Well sure, but you can do it in a different way, you might think? "Here's our budget, and here's our suggestions for what you might want to be looking for, so here's a list of colleges but feel free to do more investigation on your own, just make sure it's within the budget"?
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Mar 26, 2015 22:15
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ExtrudeAlongCurve posted:Con: It locks them in to certain colleges i.e. in this case, public Texas colleges. So if your nephew/niece ends up wanting to go to any other school they are poo poo out of luck for using that college fund. IIRC, most prepaid plans allow you to go anywhere, but they end up only paying up to the maximum in state rate.
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Mar 27, 2015 02:11
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What the gently caress are you going to do if your kid wants to study something best taught at an out of state school... even a cheap one? Or earns a full-ride scholarship? Or joins the military? Or... gasp... wants to go into a vocation or trade, instead of college? A gift of tuition is a wonderful thing, if you can afford it. Deciding 18 years in advance that a kid not only has to go to college, but it has to be one of the handful you picked out 18 years ago, before you knew anything at all about them, is hosed up. I'm sure it occasionally works out fine, but why take the risk? How much extra money are you really getting out of that deal, in exchange for the restrictions? Just invest the money normally, or at worst, in a vehicle where you can take it out without severe penalty if the kid needs something else. Like a trust fund, for example. Or just buy some treasury bonds, you can get tax free ones. Make your gift an actual gift, one you can retract if the kid winds up in jail or whatever, but not some extortion headgame bullshit "do what I want you to do, or not only do you give up thousands of dollars, but the money is all wasted.
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Mar 27, 2015 05:51
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Leperflesh posted:What the gently caress are you going to do if your kid wants to study something best taught at an out of state school... even a cheap one? Or earns a full-ride scholarship? Or joins the military? Or... gasp... wants to go into a vocation or trade, instead of college? The 529 plan itself lets you disburse the contributions without penalty, and 10% on earnings unless the kid gets a scholarship (or dies), and while it's taxed, you can direct it to the beneficiary who probably has no income tax burden of note and either get it back as a gift or just fund whatever dumb poo poo they're up to. The only reason I can imagine the pre-paid making sense is that college is less than 4 years away, you know the kid's school preferences and tuition inflation is massive. If you think there's going to be a student loan bubble, that might be the case, but I'd probably wager they'd handle it with printing money instead of tax increases, and probably a really idiotic approach to tuition price freezes which will lead to massive contraction in university systems. Basically keep your poo poo in fungible assets, like dollars.
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Mar 27, 2015 06:30
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My small company just started a 401k, and we have access to American Funds, which as far as I can tell are poo poo garbage. Money market fund with a 0.65% ER. "Balanced" funds with 1.36% ER. I get a decent employer match, so it's still worth it, but I was so excited for decent place to stash my money 
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Mar 29, 2015 17:02
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Low-Pass Filter posted:My small company just started a 401k, and we have access to American Funds, which as far as I can tell are poo poo garbage. Money market fund with a 0.65% ER. "Balanced" funds with 1.36% ER. Say something to whoever chose it maybe?
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Mar 29, 2015 19:44
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Leperflesh posted:What the gently caress are you going to do if your kid wants to study something best taught at an out of state school... even a cheap one? Or earns a full-ride scholarship? Or joins the military? Or... gasp... wants to go into a vocation or trade, instead of college? My wife and I are putting money for our two kids into the Florida Prepaid program, and it allows you to use the money at out-of-state and private schools as well. It is actually very flexible even if they get full scholarships. We looked at 529 plans as well, but decided that future unknown costs of tuition and market conditions for acceptable return wasn't a risk we wanted to take in this case. There is also no "severe penalty" if we decide to take the money out and use it for something else, we would just lose any potential earnings had we put that money in some other investment instead of the Prepaid account. We wanted to make sure that our kids could afford to go to college, if they chose to, and this plan lets them do that and we don't have to worry about there being enough in the account to cover their tuition when the time comes. If not, there should be more than enough in the accounts to buy a new, fully loaded F-150 to get a head start on building some decent truck equity.
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Mar 30, 2015 15:32
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Celador posted:My wife and I are putting money for our two kids into the Florida Prepaid program, and it allows you to use the money at out-of-state and private schools as well. It is actually very flexible even if they get full scholarships. We looked at 529 plans as well, but decided that future unknown costs of tuition and market conditions for acceptable return wasn't a risk we wanted to take in this case. There is also no "severe penalty" if we decide to take the money out and use it for something else, we would just lose any potential earnings had we put that money in some other investment instead of the Prepaid account. We wanted to make sure that our kids could afford to go to college, if they chose to, and this plan lets them do that and we don't have to worry about there being enough in the account to cover their tuition when the time comes. If not, there should be more than enough in the accounts to buy a new, fully loaded F-150 to get a head start on building some decent truck equity. Dude you're in Flordia. Gotta get that boat equity where you can.
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Mar 30, 2015 15:41
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Still gonna need that shiny new pickup with super tow package to haul that boat around!
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Mar 30, 2015 15:46
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Why not both at the same time? Pretty sure I saw this truck and boat last year at a Barrett Jackson auction. https://www.youtube.com/watch?v=ARG4o9Une54
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Mar 30, 2015 16:04
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Florida also doesn't have state income tax, so you don't get the benefit of excluding money from state income taxes like some other state 529 plans offer (nor would you have to pay state income tax on the earnings if you had to pull them back out).
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Mar 30, 2015 16:19
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MJBuddy posted:Dude you're in Flordia. Gotta get that boat equity where you can. Without boat equity you can't get those dock slip dividends
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Mar 31, 2015 03:14
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District Selectman posted:Without boat equity you can't get those dock slip dividends The F-150 doubles as a boat/submarine when it can't get up the boat ramp. https://www.youtube.com/watch?v=QUvqG6cxMx4
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Mar 31, 2015 04:28
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My company just went from offering a wide variety of Spartan funds to only offering the S+P 500 along with a bunch of really high expense ratio funds! They took the liberty of transferring my existing money into one of those funds, and I'm pretty mad. It's some sort of 401k, and we don't have an IRA, can transfer all my funds to Vanguard and just have my own IRA, is that possible?
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Mar 31, 2015 05:27
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Manstrocity posted:My company just went from offering a wide variety of Spartan funds to only offering the S+P 500 along with a bunch of really high expense ratio funds! They took the liberty of transferring my existing money into one of those funds, and I'm pretty mad. It's some sort of 401k, and we don't have an IRA, can transfer all my funds to Vanguard and just have my own IRA, is that possible? Looks like your boss made a friend at the golf course :/
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Mar 31, 2015 05:30
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Manstrocity posted:My company just went from offering a wide variety of Spartan funds to only offering the S+P 500 along with a bunch of really high expense ratio funds! They took the liberty of transferring my existing money into one of those funds, and I'm pretty mad. It's some sort of 401k, and we don't have an IRA, can transfer all my funds to Vanguard and just have my own IRA, is that possible? I was tempted to ask the thread a while back if its possible to roll over a 401k to an IRA for a job you currently have, but I figured that would have come up many times if it was possible. I believe you can do it for post tax non-roth dollars, if your 401k program allows you to do post tax dollars, but I don't believe you can for tax advantage dollars. Sucks about your 401k. That is a total dick move.
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Mar 31, 2015 14:26
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It's definitely plan dependent and called an in-service rollover. I'm not sure what the legal restrictions are on which types of funds can do that.
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Mar 31, 2015 14:46
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Manstrocity posted:My company just went from offering a wide variety of Spartan funds to only offering the S+P 500 along with a bunch of really high expense ratio funds! They took the liberty of transferring my existing money into one of those funds, and I'm pretty mad. It's some sort of 401k, and we don't have an IRA, can transfer all my funds to Vanguard and just have my own IRA, is that possible? Nope they screwed you. You have to switch jobs to be eligible for a 401k to IRA rollover.
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Mar 31, 2015 18:31
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Manstrocity posted:My company just went from offering a wide variety of Spartan funds to only offering the S+P 500 along with a bunch of really high expense ratio funds! They took the liberty of transferring my existing money into one of those funds, and I'm pretty mad. It's some sort of 401k, and we don't have an IRA, can transfer all my funds to Vanguard and just have my own IRA, is that possible?
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Mar 31, 2015 18:50
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Cicero posted:Put everything into the S&P500 fund and rebalance in your IRA/taxable accounts? And maybe ask your HR what the hell happened and can you please have the better funds back and you're worried that someone is taking bribes in exchange for bad 401k funds. ...only if you actually trust your HR department though.
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Mar 31, 2015 19:16
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Cicero posted:Put everything into the S&P500 fund and rebalance in your IRA/taxable accounts?
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Mar 31, 2015 20:45
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What's the catch with the new Fidelity offer to match 10% of your IRA contributions every year up for 3 years? I love low ER Vanguard funds but a 10% match sounds even better.
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Apr 1, 2015 19:01
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Radbot posted:What's the catch with the new Fidelity offer to match 10% of your IRA contributions every year up for 3 years? I love low ER Vanguard funds but a 10% match sounds even better. https://rewards.fidelity.com/offers/iramatch Looks like you have to transfer 500k to get 10%. Keep in mind that with 500k, an ER difference of .1% will cost you $500/year and the most bonus you can get is $1950. edit: "Account holders must maintain the minimum Qualifying Deposit account balance (minus any losses related to trading or market volatility) at Fidelity for at least nine months from the date on which the bonus award is credited to the account, or Fidelity may charge the account the amount of the bonus award." So you have to keep it in there for 3 years, 9 months minimum to take full advantage. Fancy_Lad fucked around with this message at 19:24 on Apr 1, 2015 |
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Apr 1, 2015 19:22
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Is there a convenient tool I'm missing in vanguard that helps when you want to rebalance? It can tell me percentages and throw up a handy pie chart, but when it comes to doing actual math I end up having to copy-paste my dollars/shares out and play around with them in a separate spreadsheet until I figure how many shares I need to exchange.
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Apr 1, 2015 19:24
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http://www.npr.org/blogs/thetwo-way/2015/03/31/396604082/dozens-of-countries-join-china-backed-bank-opposed-by-washington How do any of you sage goons think the AIIB will affect the US markets both short-term and long-term? Is the AIIB something that an individual could even feasibly invest in?
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Apr 1, 2015 20:21
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Bhodi posted:Is there a convenient tool I'm missing in vanguard that helps when you want to rebalance? It can tell me percentages and throw up a handy pie chart, but when it comes to doing actual math I end up having to copy-paste my dollars/shares out and play around with them in a separate spreadsheet until I figure how many shares I need to exchange. I have a handy Google speadsheet: https://docs.google.com/spreadsheet/ccc?key=0AlNYW_VA1vzPdEJpWllRN0VEVDd5dXlILUJjWGhQUnc&usp=sharing Let me know if it's not useful/unclear.
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Apr 1, 2015 20:26
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khysanth posted:http://www.npr.org/blogs/thetwo-way/2015/03/31/396604082/dozens-of-countries-join-china-backed-bank-opposed-by-washington Isn't the AIIB just a version of the World Bank run by China instead of the U.S.? If so, it shouldn't affect individual investors in developed countries at all.
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Apr 1, 2015 20:55
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Fancy_Lad posted:https://rewards.fidelity.com/offers/iramatch Thanks for finding that. Definitely doesn't seem worth it at this point.
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Apr 1, 2015 21:06
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