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secret volcano lair posted:Is everything that performed unusually well over the last 5 years going to continue performing unusually well for the next 30 years? Is that the way it works Seriously, I'd try to flat-out ask that and if they weasel out of it start raising hell.
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Oct 26, 2017 17:24
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secret volcano lair posted:My 403b plan through TIAA-CREF was recently changed dumping the old funds in favor of "ones with better long-term performance" and even the index funds have expense ratios of like 0.60% now. What are the old and new index funds being offered?
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Oct 26, 2017 17:40
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H110Hawk posted:What are the old and new index funds being offered? Principal S&P Small, Mid, and Large Cap R4 are the index funds available to me To be fair the selection we had before didn't seem great either. I was putting most of the money in CREF Stock / Growth R2 which had expenses more like 0.38%, 0.40%. Their "Lifecycle" funds had expenses of like 1.3%
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Oct 26, 2017 18:10
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I currently have a 457(b) that I'm maxing out. I was doing Roth 457(b) before that but my understanding at least is that my household income is above the Roth threshold. I recently learned that apparently I can max both a 457(b) and a 401(k) because my employer offers both. Is it worth it to do that before the 401(k) cap potentially gets slashed, or is it all going to go up in smoke with the inevitable upcoming stock market collapse?
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Oct 26, 2017 19:27
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Mons Hubris posted:with the inevitable upcoming stock market collapse? This should keep the thread going for a day or so 
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Oct 26, 2017 22:46
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Jon Von Anchovi posted:This should keep the thread going for a day or so If I’m wrong then that’s fine. I am not an expert by any means. Happy to be wrong about that!
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Oct 26, 2017 22:51
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Mons Hubris posted:If I’m wrong then that’s fine. I am not an expert by any means. Happy to be wrong about that! It's felt like the market is about to crash for several years now. Not to say that it won't, of course - could happen tomorrow. Just that nobody knows, and trying to time the market isn't likely to work out in your favor. As a bit of entertainment, here's an article reviewing a bunch of other financial things people were sure were going to happen this year. Spoiler: most of them did not happen
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Oct 26, 2017 23:01
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A future significant market downturn is highly likely, such is the nature of the market. But of that day and hour no one knows 
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Oct 27, 2017 03:32
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Ally saving accounts are now at 1.25%. I think AmEx is a little higher but Amex rejected me a couple times when I was a teen so gently caress them.
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Oct 27, 2017 06:10
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FYI, Alliant Credit Union is transferring over their HSA to a private entity. I know some of you guys here use it.
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Oct 27, 2017 07:32
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it was awful imo, happy they are dropping it
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Oct 27, 2017 08:09
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Mons Hubris posted:If I’m wrong then that’s fine. I am not an expert by any means. Happy to be wrong about that! Would be awesome if you're right. My savings rate is increasing each month, could really use a fire sale right now.
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Oct 27, 2017 11:56
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Kylaer posted:A future significant market downturn is highly likely, such is the nature of the market. But of that day and hour no one knows In the long run we are all dead, etc.
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Oct 27, 2017 12:36
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I was looking at Ally's CDs as a possible consideration for my emergency savings, since rates have been going up. I'm not leaning towards it very much since their regular savings accounts are close, but I was just curious how the %yield compared. Right now, their 12 month CD has rates of 1.5, 1.55, and 1.65 depending on your deposit amount. That said, their 18 month CD has rates of only 1.2, 1.25, and 1.35 respectively. How does this make sense?
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Oct 27, 2017 13:49
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Can somebody smarter than me explain if 'Banking on Yourself' is not a scam? A good coworker has been raving about it and claims that after the company 10% 401k match he invests the rest his money into this thing as a retirement vehicle. Smells fishy as gently caress to me, but Nerdwallet claims its legit, with caveats. I'm not planning to stop contributing to my Roth IRA to do this any time soon, but if someone can clear this up for me so that I can respect him for it when he brings it up again instead of looking at him with side-eye.
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Oct 27, 2017 18:36
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I read the article pretty quickly, but I have a hunch that the con portion of it is if you gently caress up at any point, your rear end is grass.
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Oct 27, 2017 18:42
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Animal posted:Can somebody smarter than me explain if 'Banking on Yourself' is not a scam? Seems like a sort of special whole life insurance dealie that lets you borrow against your account. You pay for this extra liquidity in the form of getting an extremely low rate of return and also presumably in assuming the risk of losing the whole thing should you fail to pay back your borrowed amounts in accordance with the schedule. Overall it seems real bad, since you're essentially bundling a bunch of products/instruments you don't necessarily want or need and paying for them out of the potential rate of return on your retirement investment.
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Oct 27, 2017 19:39
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Ok I think the reason he loves it is that he can borrow from it at any time to, say, pay for a car without having to get a bank loan. Then he just pays it back into “what is basically my own personal bank!” I have good credit and get very low APR’s on loans from my credit union so I really don’t care about that.
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Oct 27, 2017 20:05
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I'm almost 32 y/o, self-employed. I'm a US citizen but I live and work abroad. I pay taxes both where I live and in the US (just self-employment, everything else falls under the FEIE). My take-home is about 40-45k from various sources. This is above average to where I live and with my usual expenses I have money left over at the end of the month. I have decent savings where I live, plus a great support network of family and friends, excellent health insurance that would most likely cover almost 100% of any non-borderline medical cost. Retirement vehicles in the country where I live suck for the most part, and I have no interest in playing the stock market. Right now in the US I have about $12k stashed in an Ally Savings account. I use that money to cover the occasional expense on my US cards but mostly it's just accumulating interest. Should I just drop all of that money into a Vanguard SEP IRA? Seeing as I pay Self-Employment taxes in the US. At the very least I can get some tax benefits. Additionally, what would be a good sum to contribute to that IRA per month?
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Oct 27, 2017 21:15
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Animal posted:Can somebody smarter than me explain if 'Banking on Yourself' is not a scam? It's not a scam, but whether or not it works is dependent on a ton of moving parts, any of which changing basically fucks you. The rules are definitely specific to your jurisdiction, and likely between. I know in Canada, the whole thing falls apart, because our tax rules don't apply the same way, so withdrawals are not tax free (although growth and benefits are). I imagine this is true in some states as well. The 80s version of this, Infinite Banking, really did work, but that was mostly because there were tons of policies where you could take out loans at 6% fixed when rates everywhere else were 15%.
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Oct 27, 2017 21:22
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Ur Getting Fatter posted:I'm almost 32 y/o, self-employed. If you qualify, yes, use a SEP IRA. I think this is something your employer sets up, are you incorporated? If not, call up Vanguard, explain your situation, and ask what you do qualify to use. Limits are currently: Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of: 25% of the employee's compensation, or $55,000 for 2018 ($54,000 for 2017) Without knowing your cost of living, monthly savings rate, or emergency fund situation I say: $10k/year or $833.33/month. (25% of $40k.)
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Oct 27, 2017 21:48
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Animal posted:Can somebody smarter than me explain if 'Banking on Yourself' is not a scam? I know that in a lot ways, since we're posting in a thread about long term investing, this is a bit off-brand, but you cross a certain point where the complications outweigh any benefit from min-maxing the gently caress out of everything and having to keep track of all of that poo poo. Even if this does work out mathematically, it just seems needlessly complicated. Along the same lines of people sperging out about changing who they keep their savings account with over a few tenths of a percenatage point. For me personally none of it is worth the mental energy. I will do the upfront work to figure out my long term plan, and then keep it as simple as possible from then on out. There just seem like too many moving parts with this insurance thing. If you put away as much as you can and balance between tax advantaged and non-tax advantaged (and non-retirement taxable too IMO), and try to set yourself up so you don't have a mortgage or whatever when you retire, bingo-bango you are good to go.
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Oct 28, 2017 00:37
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Animal posted:I have good credit and get very low APR’s on loans from my credit union so I really don’t care about that. Exactly. Right now you can get below-inflation interest rates on auto loans. Even used cars (which are my preference). If you can save enough to make this worthwhile it seems you should be in a good enough position to make all of the gymnastics totally not worth the few hundred bucks you could save providing you did absolutely everything right.
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Oct 28, 2017 01:41
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I agree wholly with Motronic. I have a friend who's WAY upside down on an X5M he's leasing (lol) and it's like - my dude, why didn't you just buy the same car 2 years older as a certified pre-owned with all (most) of the depreciation squeezed out and a 1% interest rate?
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Oct 28, 2017 09:00
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There are tons of articles around on term vs whole life insurance and how they affect investing strategies. So if anyone really wants to dig in I would recommend starting with the bogleheads wiki. The short of it is that you are paying someone else a (significant) portion of your potential returns to, hopefully, lock in a payout under certain conditions. There are times where it can work out in your favor, those generally also happen to be the cases where the insurer is likely to become insolvent. Also, insurance scams are as old as insurance itself so, uh, good luck actually getting the payout. Whole life makes sense for some people under certain circumstances. It’s probably not you though.
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Oct 28, 2017 13:08
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EAT FASTER!!!!!! posted:I agree wholly with Motronic. I have a friend who's WAY upside down on an X5M he's leasing (lol) and it's like - my dude, why didn't you just buy the same car 2 years older as a certified pre-owned with all (most) of the depreciation squeezed out and a 1% interest rate? Because you want to hand the keys back to BMW right before the expensive scheduled maintenance hits, and the really expensive stuff starts breaking despite your best efforts. And, if you're the kind of person who drives an X5M, you probably don't want to be seen in something... used. There is no cheap way to own a $100,000 SUV with a 500+ horsepower engine. That's why it's a status symbol.
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Oct 28, 2017 14:49
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EAT FASTER!!!!!! posted:I agree wholly with Motronic. I have a friend who's WAY upside down on an X5M he's leasing (lol) and it's like - my dude, why didn't you just buy the same car 2 years older as a certified pre-owned with all (most) of the depreciation squeezed out and a 1% interest rate? My most recent purchase was a Land Cruiser for the wife. They are like $82k new, which is nauseating. CPO 2 years old with 80k miles for like $43k. That is an INSANE amount of savings for essentially the same thing. Was gonna pay cash, but they gave me something like 1.8% 0 cash down from a local credit union so I told them to throw $30k on there because, not that it matters because I have emergency funds, I will be at NO point anywhere even close to upside down.
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Oct 28, 2017 15:59
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Motronic posted:My most recent purchase was a Land Cruiser for the wife. They are like $82k new, which is nauseating. CPO 2 years old with 80k miles for like $43k. That is an INSANE amount of savings for essentially the same thing. Was gonna pay cash, but they gave me something like 1.8% 0 cash down from a local credit union so I told them to throw $30k on there because, not that it matters because I have emergency funds, I will be at NO point anywhere even close to upside down. Holy cow, 40k miles a year? That is a huge savings but also a gigantic amount of the cars usable life eating up.
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Oct 28, 2017 16:47
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TraderStav posted:Holy cow, 40k miles a year? That is a huge savings but also a gigantic amount of the cars usable life eating up. Yeah, LCs aren't very common and it was the demo vehicle that was run up and down the east coast to sit in front of dealerships during events (they change so little from year to year it hardly matters). It was previously titled, but to Toyota USA so I believe the story. Also CPO so not my problem. Had it for like 6 months now - thing is a tank. No problems other than a bad wiper motor which was of course repaired for free. I considered it a pretty good bargain hunt. I'll probably unload it in a couple of years and it's almost sure to be problem free for that long.
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Oct 28, 2017 20:47
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TraderStav posted:Holy cow, 40k miles a year? That is a huge savings but also a gigantic amount of the cars usable life eating up. the TLC regularly does 500,000 kms with very indifferent maintenance in like loving East Africa so it's definitely not going to be an issue
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Oct 29, 2017 21:51
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KYOON GRIFFEY JR posted:the TLC regularly does 500,000 kms with very indifferent maintenance in like loving East Africa so it's definitely not going to be an issue This guy gets it
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Oct 29, 2017 22:25
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KYOON GRIFFEY JR posted:the TLC regularly does 500,000 kms with very indifferent maintenance in like loving East Africa so it's definitely not going to be an issue No doubt. This one is even white, so all I need are some "UN" magnet mount signs for the doors. There is a reason they cost what they do - or at least partly. The wiring harness looming look more like what you'd find on an aircraft than a passenger vehicle among other things that contribute to it being largely unkillable. Motronic fucked around with this message at 22:55 on Oct 29, 2017 |
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Oct 29, 2017 22:52
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I would suggest that you get the UN magnets, but in some parts of this country people will certainly think you're part of the UN/NWO takeover and you could possibly get shot at.
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Oct 29, 2017 23:49
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The irony being that the shenanigans those parts of the country have been up to in the last year indicates that they would be better off for some UN intervention.
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Oct 30, 2017 00:27
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So I just realized that due to my job change from a position with medium pay (sub-$100k) and no retirement plan to a position with high pay ($150k+) and a 401k plan that the max $5500 IRA contribution I made earlier this year (for 2017 tax year) won't be deductible. I will also be beyond the standard Roth IRA income limit. I can still do a backdoor Roth conversion to save my bacon here, right? What happens to any investment gains attributable to the $5500 contribution--should that be converted also, or left behind? For clarity, I also have money and investment earnings from 2016 sitting in that IRA account. This whole thing is a loving mess. I don't understand why they limit IRA deductibility in this manner: https://www.irs.gov/retirement-plan...nt-plan-at-work Vox Nihili fucked around with this message at 01:16 on Oct 30, 2017 |
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Oct 30, 2017 01:12
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I think you have one of those "good problems" that I hear a lot about
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Oct 30, 2017 03:42
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Vox Nihili posted:So I just realized that due to my job change from a position with medium pay (sub-$100k) and no retirement plan to a position with high pay ($150k+) and a 401k plan that the max $5500 IRA contribution I made earlier this year (for 2017 tax year) won't be deductible. I will also be beyond the standard Roth IRA income limit. I can still do a backdoor Roth conversion to save my bacon here, right? What happens to any investment gains attributable to the $5500 contribution--should that be converted also, or left behind? I don't mess around with backdoor Roth stuff so no comment there. File a ticket with your broker and ask them. I did it with Fidelity with a 1ish page form. They handled the rest,took 3 days including handing them the form in a branch. There is a place to tell them which things to convert otherwise they have an algorithm. Ask them about it. If you aren't doing backdoor Roth then you can track your basis annually and not pay taxes on any non-deductible traditional contributions in retirement (just not gains.) it's not much but my accountant handles it all. H110Hawk fucked around with this message at 03:51 on Oct 30, 2017 |
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Oct 30, 2017 03:49
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Vox Nihili posted:So I just realized that due to my job change from a position with medium pay (sub-$100k) and no retirement plan to a position with high pay ($150k+) and a 401k plan that the max $5500 IRA contribution I made earlier this year (for 2017 tax year) won't be deductible. I will also be beyond the standard Roth IRA income limit. I can still do a backdoor Roth conversion to save my bacon here, right? What happens to any investment gains attributable to the $5500 contribution--should that be converted also, or left behind?
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Oct 30, 2017 07:29
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Mu Zeta posted:Ally saving accounts are now at 1.25%. I think AmEx is a little higher but Amex rejected me a couple times when I was a teen so gently caress them. Amex is at 1.25%. They accepted me when I arrived in the country w/ no credit history... so lol.
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Oct 30, 2017 08:44
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Vox Nihili posted:So I just realized that due to my job change from a position with medium pay (sub-$100k) and no retirement plan to a position with high pay ($150k+) and a 401k plan that the max $5500 IRA contribution I made earlier this year (for 2017 tax year) won't be deductible. I will also be beyond the standard Roth IRA income limit. I can still do a backdoor Roth conversion to save my bacon here, right? What happens to any investment gains attributable to the $5500 contribution--should that be converted also, or left behind? Tell your broker you want to withdraw the $5500 and they will calculate the gains for you. You fill out a form and bingo bango it's done. The rollover is seperate, but yes, you can just do a rollover for the same effect. I actually just had the same issue this year.
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Oct 30, 2017 12:55
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