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legsarerequired posted:My 401k shows only contributions from myself and my employer match, but my Vanguard roth IRA labels te dividends. Thanks for answering my question! They are required to give you statements and a complete transaction history. You can also ask hr for help, they may have someone who you can email to ask these questions. You are doing the right thing with your target date plan. Go increase your 401k deposit by 1% when you ask these questions.
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Sep 11, 2017 03:26
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The OP mostly deals with Roth IRAs. Is there any good guide for SEP IRAs? I'm self-employed and need to start looking into this stuff. Ideally in a tax advantageous way. dpkg chopra fucked around with this message at 19:18 on Sep 13, 2017 |
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Sep 13, 2017 18:03
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Ur Getting Fatter posted:The OP mostly deals with Roth IRAs. A SEP IRA is just a traditional IRA that is funded based on business income. I suppose you could immediately convert a SEP to a Roth if you wanted, so all the same things that are discussed about Traditional/Roth would apply.
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Sep 13, 2017 18:40
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Just started a new gig and want to take the opportunity to reorganize some of my accounts. Looking for some general advice on how to set it up. I have:
I am getting:
I'm thinking about consolidating the two rollover 401ks and moving all of my non-new-job related accounts to a new Vanguard account. May have to hold off on the TD Ameritrade account to avoid paying short term cap gains. I am also considering opening up an Ally or some other safe savings account to stash some bonus money so it earns a bit of interest. Thoughts? Recommendations?
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Sep 14, 2017 18:24
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Do you not have an IRA? You can roll your old 401ks into that. Better fund options/prices usually.
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Sep 14, 2017 18:26
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Hoodwinker posted:Do you not have an IRA? You can roll your old 401ks into that. Better fund options/prices usually.
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Sep 14, 2017 19:01
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A straight 401k to IRA rollover has no impact on your taxes. Unless you did a 401k to Roth IRA, that would have a tax impact.
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Sep 14, 2017 19:05
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dy. posted:Don't have an IRA. Open to starting one but due to signing bonus and stock awards my tax burden is going to be kind of nuts this year so I'm not sure if flipping the traditional 401k to an IRA is a wise move.
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Sep 14, 2017 19:38
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Hoodwinker posted:You have the choice of opening either a Traditional IRA or a Roth IRA. A Traditional IRA can be rolled into from a Traditional 401k with no tax effects. Specifically make sure that the tax treatment is the same for all money being moved. If you have a mix of Roth and traditional just open one of each. There is almost never a compelling reason to roll into new 401k's short of access to institutional class funds which have million dollar minimums. (basically only large companies with huge 401k pools get them) I comingled everything years ago, once you put $1 of non-rollover money into an IRA it is locked out of moving back into a 401k.
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Sep 14, 2017 19:53
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H110Hawk posted:There is almost never a compelling reason to roll into new 401k's short of access to institutional class funds which have million dollar minimums. (basically only large companies with huge 401k pools get them) For stuff already inside a Roth account I agree, but you may want to avoid having a traditional IRA if you're planning to use the backdoor Roth trick. This is usually worthwhile even if you have to roll funds into a crappy 401k for a while (assuming you eventually switch jobs).
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Sep 14, 2017 21:19
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I've been trying to figure out how I start saving more money into my retirement account. I want to do it but going full bore scares me due to the hit to my cash flow. I saw a recommendation somewhere to just add 1% of your salary each year until you max out your contributions. I think come open elections that's what I am going to do. If that goes smoothly for a couple of years maybe I'll bump it up to 2% even.
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Sep 14, 2017 21:31
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Murgos posted:I've been trying to figure out how I start saving more money into my retirement account. I want to do it but going full bore scares me due to the hit to my cash flow. Personally I found that once I had an effective budget created for my consistent monthly expenses then I was a lot less worried about losing cash flow because I knew the regular stuff was taken care of. Same with having an e-fund set up. Do you have both a budget and an e-fund put together?
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Sep 14, 2017 21:33
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Murgos posted:I've been trying to figure out how I start saving more money into my retirement account. I want to do it but going full bore scares me due to the hit to my cash flow.
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Sep 14, 2017 21:44
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Murgos posted:I've been trying to figure out how I start saving more money into my retirement account. I want to do it but going full bore scares me due to the hit to my cash flow. I found that when I was younger it was easier to put the monthly amount into a savings account, then 2 months later move the monthly amount to an ira. This functioned like an emergency fund and "proof" I didn't need the money. I was really irresponsible back then. The 1% automatic increase programs are great. Can you not elect more money on effectively a monthly basis? As the other poster said, you need a budget. In that budget is saving. It is too important to save that it is in the required spending section along side housing. Your latte and eating out money is discretionary. (I don't know your specifics.)
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Sep 14, 2017 21:45
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Hoodwinker posted:Personally I found that once I had an effective budget created for my consistent monthly expenses then I was a lot less worried about losing cash flow because I knew the regular stuff was taken care of. Same with having an e-fund set up. Do you have both a budget and an e-fund put together? H110Hawk posted:As the other poster said, you need a budget. In that budget is saving. It is too important to save that it is in the required spending section along side housing. Your latte and eating out money is discretionary. (I don't know your specifics.) I do have a budget with a margin but it's not really written down. Right now, my wife's income goes directly into our savings account and we live on my income. This year we have had no reason to dip into the savings to close the budget (i.e. income vs. outflow) on any month and have even padded out the checking account, this is probably in large part due to that our children are now out of day-care ($$$$$). Looking at it this way has made me realize that it's not that we haven't been able to contribute more to pre-tax retirement it's actually that not having a sufficient cushion in savings was making me nervous about allocating budget to anything non-essential but building that back up. The savings had gotten draw down due to buying a house and paying off two cars in the last 5 years. My instinct to start moving (more) money into the retirement account is probably reflective of that growing cushion (about 8 months cushion with no change in outflows). In that light I think that next year (i.e. this fall) I will simply elect to contribute the maximum to the pre-tax account with the rationalization that I am just re-allocating the day care budget to retirement. This will likely have the effect that some months I will need to close the budget with a transfer from savings (likely well less than deposits though). Yeah, a little convoluted but it works for me to understand our spending intuitively. Thanks for helping me work through this idea.
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Sep 15, 2017 14:06
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Sounds great! Good job!
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Sep 15, 2017 14:32
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Was looking at the Vanguard Prime Money Market fund VMMXX and the SEC yield is 1.12% at the moment with an ER of 0.16%. Is that the yield after expenses? I can't ever remember. I was wondering where to park my emergency fund cash to eek out some extra bucks, but don't want to go through the hassle of opening an account with a new bank or institution. I've got a checking account that pays nearly 0%, a savings account that pays 1%, and if VMMXX is paying 1.12% after expenses it seems like I should be loading my emergency fund into VMMXX. The savings account has paid exactly 1% since I opened the account in 2009 - which makes me think that the interest paid isn't tied to what the market rate is. Generally speaking the loan and deposit rates that this credit union has are pretty crappy. The savings account has really been the only thing redeeming about it, but my expectation is that the 1% interest rate will continue to be parked in that spot for a while regardless of whether market interest rates rise. If the Fed does what they have said they will do and continue to slowly increase rates, then the gap between my savings account and the MM account will likely widen. Is there any appreciable difference in keeping the cash in the savings account vs in Vanguard's MM account? I don't see where VMMXX has FDIC insurance, so that's probably the big difference? I may even wait until the gap between the savings account and MM widens a bit more.
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Sep 16, 2017 12:34
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SweetSassyMolassy posted:Was looking at the Vanguard Prime Money Market fund VMMXX and the SEC yield is 1.12% at the moment with an ER of 0.16%. Is that the yield after expenses? I can't ever remember.
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Sep 16, 2017 15:34
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Yield is yield. Any listed ER is subtracted from yield. So 1.12-0.16=0.96 in your pocket. Not a big deal, but online savings accounts are a simple answer for cash.
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Sep 16, 2017 16:20
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SweetSassyMolassy posted:Was looking at the Vanguard Prime Money Market fund VMMXX and the SEC yield is 1.12% at the moment with an ER of 0.16%. Is that the yield after expenses? I can't ever remember. I put my money in the Ally 11-month no penalty CD. You can withdraw at any time. https://www.ally.com/bank/no-penalty-cd/
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Sep 16, 2017 16:23
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Maybe I'm missing something but isn't a penalty-free CD just a savings account?
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Sep 16, 2017 18:17
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Rex-Goliath posted:Maybe I'm missing something but isn't a penalty-free CD just a savings account? With an interest rate guarantee and I presume a minimum deposit amount.
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Sep 16, 2017 18:26
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I need some sanity-checking and maybe advice on managing my mom's financial situation: My mother's house sale is closing soon and she wants me to stash most of her proceeds into interest-bearing accounts. I'm thinking of portioning into two parts. --- 10%-15% in her checking account that has a little interest so she has spending/emergency money. --- The rest goes to a brokerage fund at either a 100% bond fund or high bond-to-stock ratio mutual retirement fund, to be kept over at least a year before any action is taken. After the first year, I can sell and distribute any funds she needs, and she should only pay longterm capital gains. She's retired, so her tax liability should be pretty low-to-none. Am I missing or forgetting anything to consider? I also looked into fixed annuity payments as mentioned a while back and it didn't look like a very good option.
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Sep 16, 2017 19:57
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Hoodwinker posted:Why wouldn't you put it into an Ally savings account, which is definitely FDIC insured, gives 1.2% interest, and is probably easier to withdraw than dealing with a MM account? I would, but for just a few bucks a month, I don't want the hassle of another bank and the associated 1099-int to keep up with. Moving it to the MM account would keep all of the existing banking relationships the same with the potential bonus of those extra few bucks. balancedbias posted:Yield is yield. Any listed ER is subtracted from yield. So 1.12-0.16=0.96 in your pocket. Which apparently wouldn't actually be an extra few bucks. Mu Zeta posted:I put my money in the Ally 11-month no penalty CD. You can withdraw at any time. Do you have to keep renewing that product every 11 months, or does it renew automatically at that competitive of a rate? I ask because my parents have recently started taking care of my 90 year old grandmother's finances and found that she had some CDs that auto renewed, but the rates were garbage compared to what other institutions such as Ally were offering. Thanks for the responses folks!
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Sep 17, 2017 01:07
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SweetSassyMolassy posted:I would, but for just a few bucks a month, I don't want the hassle of another bank and the associated 1099-int to keep up with. Moving it to the MM account would keep all of the existing banking relationships the same with the potential bonus of those extra few bucks.  quote:Tax reporting: Interest from Money Market Funds. Interest amounts you receive from money market funds are considered dividends and are reported on Form 1099-DIV. Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest reported on Form 1099-INT.
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Sep 17, 2017 01:53
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I like Able Bank for my savings account. I just checked and their Money Market is 1.3%. Their password security is really annoying and like every 6 months when I check on it I have to create a new password but whatever. I work for a Financial Advisor and I'm just a low level flunkie so I'm definitely not an expert but why would you try to min/max your cash deposits when vanguard total market bond index has had a pretty steady upward price for the past decade? 2008 didn't seem to phase VBLTX at all (Yahoo! historical stock prices seems to show maybe 1-2 months where it lost all of $0.15 from open to close and it closed up at the end of the year). Trade settlements just went down to T+2 how quickly are you gonna need such a large amount of money that you can't put it on one or several credit cards?
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Sep 17, 2017 06:48
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Hoodwinker posted:This is reasonable, but wouldn't you be getting a 1099-DIV for a money market account anyway True! But I already get a 1099-DIV from them, so no additional paperwork. cumshitter posted:I like Able Bank for my savings account. I just checked and their Money Market is 1.3%. It's a risk thing, and my wife and I have already agreed to keeping some cash for emergencies because it makes us feel good. True VBLTX doesn't have a whole lot of drama to it, but it *can* go down and that wouldn't feel good in an emergency. The argument of why waste time on min/maxing what routinely is the smallest, least risky, and lowest reward portion of anyone's portfolio is valid. Time is better spent getting the big stuff right, like asset allocation, costs, minimizing taxes, etc.
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Sep 17, 2017 18:44
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A different 1099-int is going to take all of 5 minutes a year for you to deal with just put it in a decent FDIC savings account like Ally and stop worrying about this for christ's sake.
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Sep 18, 2017 01:30
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SweetSassyMolassy posted:I would, but for just a few bucks a month, I don't want the hassle of another bank and the associated 1099-int to keep up with. Moving it to the MM account would keep all of the existing banking relationships the same with the potential bonus of those extra few bucks. You have the option to auto renew or to dump it to whatever account when it has matured. The rate isn't guaranteed to stay the same, but I don't see the big issue with checking up on it once a year. Their regular savings account is quite good at 1.2% as well.
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Sep 18, 2017 09:02
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Ixian posted:A different 1099-int is going to take all of 5 minutes a year for you to deal with just put it in a decent FDIC savings account like Ally and stop worrying about this for christ's sake. trying to avoid empty quoting here
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Sep 18, 2017 12:29
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Ixian posted:A different 1099-int is going to take all of 5 minutes a year for you to deal with just put it in a decent FDIC savings account like Ally and stop worrying about this for christ's sake. Spergers gonna sperg
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Sep 18, 2017 13:28
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Why wouldn't you want to enter a 1099-INT? I get hard as a rock punching that into my tax program or whatever I end up using each year. Edit: My bad was thinking of 1099-DIV but the INT is nice foreplay.
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Sep 19, 2017 21:49
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My brother did a meeting with an Edward-Jones agent and wants to open a Roth IRA with them. I tried to convince him otherwise, but he doesn't trust my word. I know the company is not that trustworthy due to their high fees -- I mean, look at the thread title --, but I need some proof to stop my brother from making a mistake. Anyone have any articles I could send him? Or something like that?
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Sep 21, 2017 01:33
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Covok posted:My brother did a meeting with an Edward-Jones agent and wants to open a Roth IRA with them. I tried to convince him otherwise, but he doesn't trust my word. I know the company is not that trustworthy due to their high fees -- I mean, look at the thread title --, but I need some proof to stop my brother from making a mistake. Anyone have any articles I could send him? Or something like that? If he can't look at the fund expense ratios and fees and then look at the same from Vanguard and Schwab and figure it out from there there is nothing at all you can do for him.
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Sep 21, 2017 01:34
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Covok posted:My brother did a meeting with an Edward-Jones agent and wants to open a Roth IRA with them. I tried to convince him otherwise, but he doesn't trust my word. I know the company is not that trustworthy due to their high fees -- I mean, look at the thread title --, but I need some proof to stop my brother from making a mistake. Anyone have any articles I could send him? Or something like that? John Oliver did a segment about retirement accounts. He specifically talks about recommending companies like Vanguard, but the video is like 20 minutes long because retirement accounts are complicated.
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Sep 21, 2017 01:41
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Mu Zeta posted:John Oliver did a segment about retirement accounts. He specifically talks about recommending companies like Vanguard, but the video is like 20 minutes long because retirement accounts are complicated. Oh that's perfect! He loves John Oliver! I'll remind him to re-watch that video! Thanks, that might help a ton.
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Sep 21, 2017 01:42
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I believe that video was specifically about 401ks, which actually aren't bad feeswise once you reach about $10 million. 401k tax documents are public record so once you hit a certain point people will come after you if you're still with Fidelity. Had to go to a big meeting on that where one of our brokerages was pushing us to bring in 401ks and was providing search tools to look up that info. I would ask the EJ guy to provide a blanked out report for a current client with a similar sized account showing performance and holdings instead of their marketing materials showing performance for the strategy they're pushing. If all of the funds are proprietary then you won't be able to look up the tickers on Morningstar and they're definitely high expense ratio. Also if they deal with a company like Dimensional Fund Advisors there will be fees on top of that which are hidden but EJ is probably doing it on their own. Some people don't want to think about their money too much and will pay a premium to let someone else do it for them. Which is fine with me, I work in the industry. Also I wasn't a big fan of the advice in that segment. I spoke with some of the team after and decided to dump my small bond fund holdings for US small cap because I'm not touching my IRA/401k for like 30 years.
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Sep 21, 2017 02:48
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[REDACTED]
Accretionist fucked around with this message at 19:07 on Sep 23, 2020 |
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Sep 21, 2017 03:09
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Covok posted:My brother did a meeting with an Edward-Jones agent and wants to open a Roth IRA with them. I tried to convince him otherwise, but he doesn't trust my word. I know the company is not that trustworthy due to their high fees -- I mean, look at the thread title --, but I need some proof to stop my brother from making a mistake. Anyone have any articles I could send him? Or something like that? There was a Freakanomics podcast with Bogle that he should listen to: http://freakonomics.com/podcast/stupidest-money/
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Sep 21, 2017 03:13
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Accretionist posted:Seriously? Like, Merrill Lynch leaves a message every couple months asking if I'm satisfied with self-managing at Fidelity I was in a meeting with our sales staff when I learned this, with the brokerage explicitly encouraging them to go after 401ks using their search tools. So yes. Couldn't tell you how it's done though, most of the sales people seemed to go with the idea of asking referring consultants at the retail brokerages if they knew any clients who worked in HR/with 401ks at their business. I imagine once you have $10 million in managed 401k funds at a business you're sizable enough to have people researching it by that point, so someone might be receptive to the idea. Especially if you have a banking relationship with them. 401ks are only current employee funds, retiring employees take the money with them. I couldn't tell you about three funding because I don't know what it is, but my experience from working at a Financial Advisor is that once you have 7 figures in funds you can easily ask for a discount. Even more easily if you meet with a few other people and give the sales person the excuse that "we won the money away from 2 other competing firms."
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Sep 21, 2017 03:22
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