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baquerd posted:Maybe include spouse too, even if you're a DINK. Lol, yeah my spouse whos working need life insurance
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Mar 14, 2016 23:56
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anne frank fanfic posted:Lol, yeah my spouse whos working need life insurance I used to carry it when I was married. She would have got a paid off house and had a bunch of money left to offset my lack of income. I don't think it is at all crazy. Especially for people who budget for both salaries.
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Mar 15, 2016 00:04
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Alhireth-Hotep posted:And if you have no dependents, but your job buys unnecessary life insurance for you anyway as part of the benefits package... Why not leave it to charity and give decent people everywhere a reason to kill you?
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Mar 15, 2016 01:23
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Mine is going to my brother's family, which I told them, but I don't really want to tell him how absurdly much it's for. No matter how much we love each other, it would be a legitimate incentive for fratricide.
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Dik Hz posted:Why not leave it to charity and give decent people everywhere a reason to kill you? HEY EVERYBODY! Kill me and you win a prize!
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Mar 15, 2016 01:32
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Dik Hz posted:Why not leave it to charity and give decent people everywhere a reason to kill you? Probably will do this once their kid is a bit older and their financial situation is more stable.
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Mar 15, 2016 01:36
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Hmmmmmm... Do you have the wherewithal to become a Pinata person?
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Mar 15, 2016 01:38
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VendaGoat posted:HEY EVERYBODY! Kill me and you win a prize!
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Mar 15, 2016 02:38
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 .... My days are numbered.
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Mar 15, 2016 02:41
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I can drop ship milk goats to hungry children? What is the markup?
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Mar 15, 2016 19:01
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Elephanthead posted:I can drop ship milk goats to hungry children? What is the markup? You must have missed the year GBS bought bees for the Christmas charity drive. So many bees.
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Mar 15, 2016 23:09
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I recently quit my job without another job (a story for another thread but I will say that I'm looking into freelancing) and I'm debating on what to do with my SIMPLE IRA from my previous employer. I am thinking about rolling it over to a ROTH IRA. I have about $8,500 in the account, and was with my employer for more than two years. As well, I want to move the monies from American Funds to Vanguard; I have a ROTH with Vanguard, plus AF has been poo poo for me. It seems from this article that rolling my SIMPLE into a ROTH won't be straightforward: http://www.forbes.com/sites/josephs...n/#4bfa75f4468c Any advice on converting SIMPLE IRAs into something better? The self-employed 401K piqued my interest but I haven't completely decided if I want to go that route.
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Mar 16, 2016 02:55
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Alright, thanks for the advice everyone! It was very sound and not very goony and angry like the other subforums. Another question then. My wife has access to a Roth401k plan now. We intend to file married but separate (for reasons!). This precludes us from using the regular Roth IRA vehicle without incurring a few hundred dollar penalty. It actually surprised me this year because I had contributed the full $5500 and then BOOM I had to pay a small penalty. You have a literal max of $0. Yeesh... I am trying to figure out if a similar penalty exists with the Roth401k. Or can we basically use this as our Roth IRA alternative? Maybe even put "my" $5500 in there via excess contributions from her salary?
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Mar 16, 2016 03:02
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I don't get why you have a max of zero - is your income so high that you're past the cap for a Roth when filing separately and that's why? I believe there's no similar cap on a Roth401k (https://www.irs.gov/Retirement-Plans/Roth-Comparison-Chart) so you should be fine contributing to that. Also are you sure that filing separately makes sense? It usually doesn't. I would maybe ask in the income tax megathread though.
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Mar 16, 2016 04:18
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We had to file separately one year for reasons and IIRC, either of you can still contribute to a Roth 401k. The Roth IRA, however has a max income limit of $10k or something stupid low.
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Mar 16, 2016 05:13
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moana posted:I don't get why you have a max of zero - is your income so high that you're past the cap for a Roth when filing separately and that's why? I believe there's no similar cap on a Roth401k (https://www.irs.gov/Retirement-Plans/Roth-Comparison-Chart) so you should be fine contributing to that. Also are you sure that filing separately makes sense? It usually doesn't. I would maybe ask in the income tax megathread though. * MFS only makes sense when you're gaming IBR, from what I understand.
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Mar 16, 2016 05:15
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I need to choose a company to go with to start a Solo 401k for my company. I am the only employee and will never hire anyone for this company. I'm having a tough time evaluating my choices of which company to go with. I can't seem to find any good, neutral comparisons online. The things I care about are:
Any recommendations? a cat fucked around with this message at 16:21 on Mar 16, 2016 |
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Mar 16, 2016 16:04
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DOOP posted:So my employer held a meeting today to go over the 401k program they're creating/sponsoring/initiating. From the limited research I've done, this 401k plan is, uh, not very good. Help me learn more, fellow goons. I work at a chemical plant with <50 employees near Philly Old, but just wanted to weigh in here as someone who just went through all of this on the employer side of things. Basically the exact same situation, aside from me being the cheapest gently caress imaginable  , and came out with a very similar plan (our ERs are more like 1-1.2% and we give immediate eligibility, but still).The discretionary match is because if poo poo hits the fan, we would much rather be skipping retirement account matching than laying people off, which just happened in 2009. I don't know what your business is like, but we can't just go to VCs or investors or something to round up money when we're short. We have our line of credit and the money we take in from accounts, and if that runs out then we're hosed. Those expense ratios are basically what you get for a $0 balance account. The ERs people talk about here usually aren't available with a total plan balance of less than $500k. I did look into Vanguard briefly, but they don't offer the administrative services that the more expensive plans do (like compliance testing and record keeping) and the idea of shoving that off onto our combined HR/payroll department that consists of one old lady was a non-starter. We'll probably look back into it once she has some experience with the paperwork. Whether it's worth investing in or not is a separate question, but I just wanted to point out that this type of plan isn't necessarily your employer trying to gently caress you. It could very well be the only feasible option.
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Mar 16, 2016 17:03
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What does your company do/make?
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Mar 16, 2016 17:19
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Michael Scott posted:What does your company do/make? Software development. This is all under guidance of a CPA, this is just my first year as technically-an-employee and no longer able to use a SEP IRA. a cat fucked around with this message at 05:55 on Mar 17, 2016 |
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Mar 16, 2016 17:44
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jjttjj posted:Software development. Low six figures. This is all under guidance of a CPA, this is just my first year as technically-an-employee and no longer able to use a SEP IRA. Why can you have a Solo 401k but not a SEP IRA? The IRS guidance I read lumped them together. Vanguard offers individual 401k's, but doesn't offer loans on them. They do offer loans in small plan 401k's but I think there are moderately more fees related to it. I assist with an individual 401k for my mother via Vanguard and it's both cheap and easy.
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Mar 16, 2016 18:49
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jjttjj posted:Software development. Low six figures. This is all under guidance of a CPA, this is just my first year as technically-an-employee and no longer able to use a SEP IRA. What kind of software? I'm trying to learn programming languages and I'd like to figure out what's in demand moving forward and what might put me in the best position to reach the level you're at. I'd take this to PMs but I don't have plat! Any resources you'd recommend?
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Mar 16, 2016 19:05
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SiGmA_X posted:* MFS, living together, and income >= $10k, you can contribute $0. Yes to both these points. So yeah, hence the question about Roth401k being permitted. Ideally I can find the tax code stating it. But maybe when the code says "401k" they mean regular and Roth401k...
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Mar 17, 2016 01:42
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French Canadian posted:Yes to both these points. So yeah, hence the question about Roth401k being permitted. Ideally I can find the tax code stating it. But maybe when the code says "401k" they mean regular and Roth401k... https://www.irs.gov/Retirement-Plans/Roth-Comparison-Chart Roth 401(k): Income Limits: No income limitation to participate. I'm pretty drat sure you're safe to max the Roth 401(k) while MFS. I see nothing stating otherwise. SiGmA_X fucked around with this message at 04:57 on Mar 17, 2016 |
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Mar 17, 2016 04:54
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Michael Scott posted:What kind of software? I'm trying to learn programming languages and I'd like to figure out what's in demand moving forward and what might put me in the best position to reach the level you're at. I'd take this to PMs but I don't have plat! This thread is probably more geared towards your question: http://forums.somethingawful.com/showthread.php?threadid=3376083
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Mar 17, 2016 17:44
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I've realized I need to start investing in retirement. I haven't even started...properly anyway. So here's a quick run down of my situation. I know nothing about retirement plans by the by. I'm 30 this year. I live at home with my family because I can save more money this way. I currently work retail, earning about $1.1k a month (generously rounded down, it tends to be higher) I've been through college and have an AA & BA. No debts or loans. Graphics designer, but had little luck in California's Valley, and I'm too far away from San Francisco to consider even working there, much less moving closer would hurt my finances for all the job offerings I've had. I plan to move to Washington from California this year for personal growth and job opportunities. All else fails I can come back, but things look promising for my finances there (start up contacts), even under less than ideal circumstances. At the moment, I have no retirement plan started. I have $22k in the bank. I've come to terms with needing to work in my 70s to even have a decent retirement. I hear some plans will evaporate based on company/stock market health, while with others the government may just not even be able to pay me. My jobs are likely to change frequently, I doubt I'll be able to stick to just one company. What should I do? Honestly feeling like I've already hosed up. 
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Mar 18, 2016 08:32
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French Canadian posted:Another question then. My wife has access to a Roth401k plan now. We intend to file married but separate (for reasons!). This precludes us from using the regular Roth IRA vehicle without incurring a few hundred dollar penalty. It actually surprised me this year because I had contributed the full $5500 and then BOOM I had to pay a small penalty. You have a literal max of $0. Yeesh... Or contribute to a non-deductible Traditional IRA and then do a Roth conversion.
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Mar 18, 2016 11:39
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Bel Monte posted:I've realized I need to start investing in retirement. I haven't even started...properly anyway. And make sure the pay from whatever job opportunity you have solidified before moving to Washington is going to outweigh the increase in your living expenses from not living with family. Gray Matter fucked around with this message at 12:10 on Mar 18, 2016 |
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Mar 18, 2016 12:08
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Gray Matter posted:My recommendation: start a Roth IRA with Vanguard immediately, like before April 15th. Contribute $5,500 for year 2015 (you can only do this until April 15th), contribute another $5,500 for year 2016. This is assuming that the $11k you would have left in the bank would cover you for at least 6 months of living expenses. Put all those Vanguard monies in either the Target 2045 Retirement or Target 2055 Retirement fund depending on which year you expect to retire. Make that $5,500/year maximum contribution every year you can going forward from here, and if you end up working for an outfit with a 401k (you should do this), put as much as you can into that account too. This is good advice if you think $11k is enough savings to make your move. Also you can always withdraw your contribution without any penalty, which you would only want to do in case of an emergency. But you should know that it's an option. quote:And make sure the pay from whatever job opportunity you have solidified before moving to Washington is going to outweigh the increase in your living expenses from not living with family. I wouldn't phrase it that way, because they likely won't be able to save as much after the move as they were living with family. But that doesn't mean moving and starting a career isn't worth it. I took a paycut to move from waiting tables to working at a bank call center, but that job helped me get my foot in the door. quote:I hear some plans will evaporate based on company/stock market health, while with others the government may just not even be able to pay me. 95% of retirement plans at private companies are 401ks, which give you a choice in how to invest your money. When you find a job you can post the options here and people will help you find a good plan. You also take the money in your 401k with you when you change jobs. I don't know much about government plans, but my understanding is that only cities like Detroit have had to cut pensions. Someone else can jump in here. The #1 thing that's holding you back in terms of retirement is your income. You need more income. Choosing a plan and saving is easy, if you have enough income. $1,100 a month isn't going to do much unless you plan on living at home for decades.
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Mar 18, 2016 13:42
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Bel Monte posted:I've realized I need to start investing in retirement. I haven't even started...properly anyway. Since you make so little, you can take advantage of the Savers Credit and get 50% of what you put into an IRA/Roth IRA back each year as a tax credit (up to $2500 max): https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Savings-Contributions-Savers-Credit So if you put $5000 into an IRA this year, you'll get back $2500 of free money at tax time
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Mar 18, 2016 14:39
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EugeneJ posted:Since you make so little, you can take advantage of the Savers Credit and get 50% of what you put into an IRA/Roth IRA back each year as a tax credit (up to $2500 max): I believe it's 50% of your contribution up to $2000, so max $1000 back if Single and AGI under $18,250. Still a good deal of course.
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Mar 18, 2016 15:27
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Also it's a non-refundable credit. In practice it's hard to actually get back the full $1000. It's still worth it, especially because he can afford to put half his savings into funding two IRA buys for 2015/2016 and that $11k should be worth about $350k when he's 70 (going by the napkin math method of doubling every 8 years on average). Bel Monte, the thing is there's still plenty of time for you if you get on it now. Step one is funding those IRAs, step two is figuring out what you can do to step up your income(it sounds like you are, with the move to Washington). If you can max IRAs from here on out (will probably require you to boost your income by 50%, not counting any lifestyle inflation) you should be able to be pretty good by what people consider "normal" retirement age now. Not having a shitton of debt and actually having a sizable cash reserve puts you ahead of a lot of people. If you do pump that 11k into the two IRA buys, you would have until April 15, 2018 to get together your 2017 contribution, so you'd have some time to move and get stabilized. I started at 30 myself too(had zero saved for retirement, almost zero cash in the bank), and at 33 I consider myself to be in a pretty good position. I had more income at that point than you have right now, but I also had a massively underwater condo (50k underwater) and a fiancee with big credit card debt, and I didn't have your cash reserves. It's not going to happen overnight, but the fact you're taking it seriously now and not ten years from now is great. Nail Rat fucked around with this message at 15:43 on Mar 18, 2016 |
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Mar 18, 2016 15:33
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Probably a dumb question, but I'm new to this whole thing. I have a basic Roth IRA with Vanguard using a Target Retirement fund. I know there's better ways to do it, but I want to keep it as passive as possible, and I've heard it's a decent fund. Anyways, simple question: Is it better to frontload the $5,500 yearly maximum into the fund as early as possible, or to split it up monthly? I realize the fund can go up and down frequently, so would it be a good idea to throw a bunch of money at it when it takes a significant negative dip? Again, I'm really new to this stuff, so sorry if this is obvious.
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Mar 18, 2016 17:08
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bvoid posted:Probably a dumb question, but I'm new to this whole thing. Front load: higher expected gains, on average, because you are putting the money in earlier. That additional $5k has 1-11 months more to grow. rather than depositing $500 a month. Split up monthly throughout the year: better volatility reduction due to spreading out when you enter the market. I would recommend front loading, but the choice is yours. edit: if I wasn't clear, front load: higher expected gains at the cost of increased volatility. split up monthly: lower expected gains at the benefit of decreased volatility. Blinky2099 fucked around with this message at 17:44 on Mar 18, 2016 |
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Mar 18, 2016 17:16
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Blinky2099 posted:Split up monthly throughout the year: better volatility reduction due to spreading out when you enter the market. Split up monthly allows dollar cost averaging, which over time could equal more shares for the same  if there's enough volatility.
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Mar 18, 2016 17:37
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My Q-Face posted:Split up monthly allows dollar cost averaging, which over time could equal more shares for the same
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Mar 18, 2016 17:43
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You get the advantages of DCA without actually doing it by just investing throughout the year as you get paid. Investing your money as soon as you get it is the most optimal strategy. On a long enough timeframe (retirement timeframe) it has the highest expected returns, unless you can see the future. The exception, I guess, is if you want to maximize your IRA contribution and can't do it in the three months at the beginning of the year, so you hold on to some the year before.
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Mar 18, 2016 17:58
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I, personally, have an auto-payment monthly that equates to $2400 into each of my and my wife's IRA's, and then I front-load the rest. I mostly do it this way so that if for some reason, I can't front-load one year, I still have $400 a month in my budget for retirement contributions that I know I need to pay. Mostly a mental thing, really, to force paying myself first.
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Mar 18, 2016 19:06
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My wife and I just do $460 a month apiece into our IRAs because we're not far enough ahead on cash savings that we could plunk $11k in on January 1st. I anticipate that changing in the next couple years, however, and then we will max them Jan 1st from then on. Time in the market beats timing the market.
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Mar 18, 2016 19:17
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Quick couple questions. I have Schwab instead of Vanguard. Schwab's 2055 target date fund has expenses of .86%... Vanguards' is .16%. Question 1. I'm thinking it would be worth it to switch to Vanguard at some point down the line. Any disagreement? Question 2. Currently I'm dumping everything into SWPPX, Schwab's S&P index fund. Should I switch that to a 2055 target fund at some point probably? I figured I would want close to 100% exposure to U.S. stocks at this point in my life. Is Vanguard going to gently caress things up in the future with their court cases going on? Will they become defunct somehow or raise rates to be like Schwab? My worry is that Schwab might be more stable than Vanguard, but I am probably being silly. http://www.cbsnews.com/news/vanguard-investors-your-fund-fees-could-quadruple/ CBS News posted:The potential fallout, according to a tax expert who is working with Danon, is a bill from the IRS for back taxes of up to $34.6 billion and, for Vanguard investors, the specter of much higher fees. The typical expense ratio for Vanguard funds, which now stands at an ultralow 0.18 percent, could more than quadruple to as high as 0.82 percent, according to the tax expert's assessment. It's goddamn weird and hard trying to predict 20 years and 30 years into the future to see what Vanguard will look like. If Vanguard's target date funds so obviously blow the whole industry out of the water in terms of expenses, why aren't they the dominant player in U.S. brokerages? Maybe institutional investors are worried about its future. Michael Scott fucked around with this message at 19:41 on Mar 18, 2016 |
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Mar 18, 2016 19:23
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I wouldn't be too worried about the vanguard situation.
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Mar 18, 2016 20:05
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