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Fidelity is the abusive parent that's extra nice when the CPS worker is in the room
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Apr 13, 2018 17:09
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Minty Swagger posted:I have an IRA with a sizeable 5 figure amount in it that I could roll into my 401k (so i dont get taxed) which should enable the backdoor roth for me in 2018, but sadly I cant do the "MEGA BACKDOOR ROTH" due to it being discriminatory, at least according to finance and HR at my company. You should definitely do this rollover if your company allows IRA --> 401k transfers (some don't). Just remember your form 8602 reflects IRA balances on Dec 31, so you need to complete the rollover by then. Don't put it off till January and then do the contribution before the tax day deadline or you will get bent over.
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Apr 13, 2018 17:26
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About two years ago my company 401k switched to Fidelity. Would just like a quick sanity check on my allocations as it's been a while since I looked at it. Was just going for set and forget. Allocations are equally spaced between the 3 funds. I'm 34, have around 117k in the 401k now. 
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Apr 14, 2018 21:18
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I'm just starting to pay attention to this stuff again, wondering if my current 401k choice is correct. I'm 34 and I have about 30k in my 401k, all in a T Rowe Price 2050 target date fund. My question is about fees, continuing on the discussion from a couple of days ago. This fund charges 0.74%, which is really high compared with a lot of the other funds that I have access to. Should I try and do my own asset allocation into S&P 500, bonds, etc or is this fee low enough that I'm OK letting them manage it? Is there a cost associated with re-allocating to different funds? I can post what other funds I have access to if necessary, but the cheap ones are Vanguard S&P 500 and small cap value, and bonds. Vanguard mid-cap growth is cheaper than most but way higher than the other two.
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Apr 15, 2018 03:21
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74bps is a really bad ER. For comparison the Vanguard 2050 charges 15bps. Can you post what your choices are? It should be very easy to help you select much better funds.
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Apr 15, 2018 04:34
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DrGonzo90 posted:I'm just starting to pay attention to this stuff again, wondering if my current 401k choice is correct. I'm 34 and I have about 30k in my 401k, all in a T Rowe Price 2050 target date fund. My question is about fees, continuing on the discussion from a couple of days ago. This fund charges 0.74%, which is really high compared with a lot of the other funds that I have access to. Should I try and do my own asset allocation into S&P 500, bonds, etc or is this fee low enough that I'm OK letting them manage it? Is there a cost associated with re-allocating to different funds? A Proper Uppercut posted:About two years ago my company 401k switched to Fidelity. Would just like a quick sanity check on my allocations as it's been a while since I looked at it. Was just going for set and forget. Allocations are equally spaced between the 3 funds. I would suggest you change your stock allocation to 60/40% US/Intl, and bonds either at the same 1/3 or to the Vanguard-recommended ~10%. code:
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Apr 15, 2018 04:56
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Syrinxx posted:74bps is a really bad ER. For comparison the Vanguard 2050 charges 15bps. Invesco Diversified Dividend R5 DDFIX .54% T. Rowe Price Growth Stock PRGFX .68% T. Rowe Price International Value Equity TRIGX .83% T. Rowe Price Mid Cap Value TRMCX .80% T. Rowe Price New Horizons PRNHX .79% Vanguard 500 Index Admiral VFIAX .04% Vanguard Mid Cap Growth Inv VMGRX .36% Vanguard Small Cap Value Index Insr VSIIX .06% MassMutual Diversified SAGIC 2 .55% T. Rowe Price US Bond Enhanced Index Tru .15% That seems to be it besides the target date funds. Help. edit: I cant figure out how to format this so it's easy to read because I'm stupid. Sorry. DrGonzo90 fucked around with this message at 06:02 on Apr 15, 2018 |
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Apr 15, 2018 05:54
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Come on man post the expense ratios
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Apr 15, 2018 06:03
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KYOON GRIFFEY JR posted:Come on man post the expense ratios DrGonzo90 posted:
Man, your intl option sucks even more than mine... Higher ER (I said double, I was wrong, 20bps more) and half the return... I'm not sure what small/mid cap you want to add in to large cap, but some amount. Some people (Paul Merriman comes to mind) suggest substantially over-weighting small cap value. This is probably a little aggressive. code:SiGmA_X fucked around with this message at 06:25 on Apr 15, 2018 |
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Apr 15, 2018 06:04
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my bad I didn't scroll on the iPad You don't need to balance the portfolio within your 401k - you just need to balance across your investment vehicles. I would stick everything in your two low ER vanguard funds and balance for bond and intl in an IRA
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Apr 15, 2018 09:02
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SiGmA_X posted:This is worth what you're paying for it, but here is my take. Those funds are really good, very low cost. Being you said you're doing 1/3 into each fund, it sounds like you want to do approx the "your age in bonds" thing. I think that is too high in your 30's, but that is a personal call. Were you investing during the recession? How'd you handle it? Well I was off on what my allocations were, they're actually 40/40/20 US/Intl/Bonds. Like I said, it's been a while since I checked this. I think I'm happy with that. And yes, I've had this 401k since 2002. I'm kind of bad with money so I never asked anyone for advice on how to invest with my old 401k (and didn't know who to ask. Never thought of asking here, though I don't know how long this subforum has been here). So yes, I was investing during the recession, but I never touched it, and honestly don't remember what kind of funds I was investing in.
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Apr 15, 2018 10:25
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If you didn't touch it during the recession then you came out ahead of all the people that panicked and sold.
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Apr 15, 2018 10:37
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Maybe it’s the fee-loving Canadian in me but lol at 74bps being "horrid". There’s plenty of better options around, sure, and if it pays to switch then you should switch. But it’s not like sitting in a 74bps index fund is some kind of monumental fuckup.
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Apr 15, 2018 14:56
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pokeyman posted:Maybe it’s the fee-loving Canadian in me but lol at 74bps being "horrid". There’s plenty of better options around, sure, and if it pays to switch then you should switch. But it’s not like sitting in a 74bps index fund is some kind of monumental fuckup. It is when you have access to a 4bps index fund!
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Apr 15, 2018 15:53
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A Proper Uppercut posted:Well I was off on what my allocations were, they're actually 40/40/20 US/Intl/Bonds. Like I said, it's been a while since I checked this. I think I'm happy with that. I'd say setup annual automatic rebalancing at your given allocation and leave it be. pokeyman posted:Maybe it’s the fee-loving Canadian in me but lol at 74bps being "horrid". There’s plenty of better options around, sure, and if it pays to switch then you should switch. But it’s not like sitting in a 74bps index fund is some kind of monumental fuckup. KYOON GRIFFEY JR posted:It is when you have access to a 4bps index fund!
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Apr 15, 2018 20:37
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KYOON GRIFFEY JR posted:It is when you have access to a 4bps index fund! Agreed! SiGmA_X posted:What's your thought on 1% AUM? Expensive when you have cheaper, reasonable alternatives? All I’m saying is if you’ve been paying no attention, having $30k in a 74bps target date fund is pretty alright. Could do better, could do way way worse.
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Apr 16, 2018 00:47
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pokeyman posted:Agreed! What type of fees do Canadians pay?
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Apr 16, 2018 01:28
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SiGmA_X posted:Fair enough, you make a good point. I think we’re on the same page, I just don’t want anybody to feel shame for not minmaxing their fees when they’re doing ok  quote:What type of fees do Canadians pay? We're finally catching up to y’all but it was dismal for a long time. As far as I know right now the cheapest broadly diversified indexed mutual funds are 0.33-0.51% MER, indexed ETFs are 0.06-0.24% MER. A couple months ago Vanguard brought in some "asset allocation" funds at 0.22% MER, before that if you wanted a one-fund solution you were looking at 1% or higher. (Vanguard Canada only does ETFs, so they don’t have such a downward pressure on mutual fund fees.) As I understand, it was common until quite recently for fee-weary Canadians to hold US-listed index funds. The headache and fees of exchanging currency a couple times was totally worth the way cheaper management fees. Thankfully that predates my entry into the investing world so I get to use my home currency. And this is just for low-cost diversified investing. To read more about banks charging you loonies for the privilege of having a chequing account, head to the Canadian finance thread appropriately subtitled "paying more is our national pastime".
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Apr 16, 2018 03:18
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Just stick it all in the SP500 fund at 0.04. Maybe some bonds if you're, like, 50.
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Apr 16, 2018 12:41
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single-mode fiber posted:If you're healthy and your employer offers it, you could enroll in a qualifying HDHP, treat the HSA contributions like another retirement account and just pay whatever expenses you have out of pocket. I'm currently doing this, but reconsidering. On paper, this sounds great, my employer gives us extra $$$ to fund the account, the insurance is cheaper, and I get to put away extra money tax free. They also claim to cover the same things that the insanely nice "Cadillac" plan my workplace offers. In practice, the insurance company who administers the HDHP doesn't let me do the same things for patients/treat them the same way as the Cadillac alternative. It's still within the standard of care, but not as state of the art, and I know how I'd want to be treated. This probably applies to specialties beyond my own. Makes me wonder if I shouldn't change. Residency Evil fucked around with this message at 14:50 on Apr 16, 2018 |
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Apr 16, 2018 14:41
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Interesting, mine did similarly say that almost everything is within the same realm of coverage as the next higher plan, which is a PPO (this is all done through Cigna). Wonder if they'd want to do the same to me. Course, I think in the last 3 years of me doing the HDHP, I've gone to an urgent care clinic once, to the tune of $250, so they could've been treating me with rocks they found in a stream for all the difference it's made so far. I was thinking of switching back to a PPO prior to having kids if I ever got married, might have to lean more strongly in that direction based on what you're saying.
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Apr 16, 2018 14:55
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Thanks for the advice. It's funny, I just got an email today saying that my company is switching out of the international value fund to a new one at .54% (previously .85%) and a new mid cap fund at .39% (previously .68%) so that gives me some better options. I'm going to do some more reading and move into these better options soon.
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Apr 16, 2018 17:11
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EAT FASTER!!!!!! posted:Just stick it all in the SP500 fund at 0.04. Maybe some bonds if you're, like, 50.
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Apr 16, 2018 17:34
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Got a quick question about S&P 500 index vs Total Stock Market index: What's the advantage of one over the other? For context, I have a couple of retirement account (SEP-IRA and Roth IRA at Vanguard, no 401k) that are just Target Retirement funds, I used to care enough to keep them in individual funds and balance every year but switched to Target Retirement last year. Only reason I could see switching back to index funds would be to get access to Admiral funds. Since my tax-advantaged space is limited to the annual $5500 cap, I've also got a taxable brokerage account that is currently all S&P 500 index. Should I trade that to Total Stock Market? I'd like to keep my taxable account in stocks to avoid more taxable events with bond funds.
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Apr 16, 2018 17:48
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MockingQuantum posted:Got a quick question about S&P 500 index vs Total Stock Market index: What's the advantage of one over the other? Edit: Looked it up, looks like it's 9%?
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Apr 16, 2018 17:50
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Don't sell your sp500 to buy TSM. You'll probably whip up a nice tax bill if you do that. Just buy TSM in the future rather than sp500 if you want! There's not much of a different between the two, although TSM has you covered in the event that a rando small cap company shoots up 69,000%
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Apr 16, 2018 17:54
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GoGoGadgetChris posted:Don't sell your sp500 to buy TSM. You'll probably whip up a nice tax bill if you do that. Just buy TSM in the future rather than sp500 if you want! There's not much of a different between the two, although TSM has you covered in the event that a rando small cap company shoots up 69,000% Yeah, sorry, I misspoke-- I meant moving towards TSM on future contributions, not selling off the S&P to buy it. I was still thinking in terms of IRA and exchanging one fund for another.
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Apr 16, 2018 17:56
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MockingQuantum posted:Yeah, sorry, I misspoke-- I meant moving towards TSM on future contributions, not selling off the S&P to buy it. I was still thinking in terms of IRA and exchanging one fund for another. If you want to get closer to a TSM allocation right away, you can buy "Extended Market Index"! It's all the funds from TSM except for sp500 funds. In an 80/20 ratio, it's identical to TSM. As always, vanguard offers a great one.
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Apr 16, 2018 17:59
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Is the ER something you can just deduct from the return to get a real return year over year? Like when doing YoY projections using a lifetime annualized return, if the annualized return is 10% with an ER of 0.50, are you looking at an annualized return of simply 9.50% or is it more complicated than that? For example I'm looking at a fund with a (including the recession) trailing total return of 13% with an ER of 0.54 vs a similar fund with a trailing total return of 7.5% with an ER of 0.01. So am I simply looking then at 12.46% vs 7.49% when I try to project YoY, or am I missing something extra?
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Apr 16, 2018 18:13
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Fhqwhgads posted:Is the ER something you can just deduct from the return to get a real return year over year? Like when doing YoY projections using a lifetime annualized return, if the annualized return is 10% with an ER of 0.50, are you looking at an annualized return of simply 9.50% or is it more complicated than that? Most funds will publish gross and net return rates. Use the Net one directly and it should do all that math for you.
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Apr 16, 2018 19:16
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I have my retirement accounts pretty much all invested in Vanguard Target Retirement 2050 for my Roth IRA (at 0.16% ER) and my 401k (at 0.06% ER). I just bought a house with 20% down. Should I move these to some "lazy portfolio" now that I have significant exposure (not sure this is the correct word) to the real estate market through my home? On another note - is anyone using HealthEquity for their HSA? They have a really confusing system of fees for automatic/pick-your-own fund allocations. I picked a smattering of Vanguard funds (between ER 0.02% and 0.10%) on there but they all say: quote:This is a low cost fund that is not paid for by your plan sponsor. Investing in this fund will result in a monthly fee of 0.033% on the average value invested and will be charged to your cash balance. If I want different funds it looks like I have to sign up for their "Advisor" product which then charges 0.05% to 0.08% monthly to suggest and/or manage my allocations for me, and I suspect these funds will have much higher ER. I just feel like I'm getting screwed here no matter which option I go with, but as far as I know my HSA is stuck in there.
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Apr 16, 2018 19:40
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Your house is an absolutely terrible investment. It is best to think of it as a monthly expense to live somewhere, and not an investment. Maintain all your other investment allocations and strategies as if your house did not exist.
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Apr 16, 2018 19:45
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GoGoGadgetChris posted:Your house is an absolutely terrible investment. It is best to think of it as a monthly expense to live somewhere, and not an investment. Maintain all your other investment allocations and strategies as if your house did not exist.
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Apr 16, 2018 19:54
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Sobriquet posted:On another note - is anyone using HealthEquity for their HSA? They have a really confusing system of fees for automatic/pick-your-own fund allocations. I picked a smattering of Vanguard funds (between ER 0.02% and 0.10%) on there but they all say:
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Apr 16, 2018 20:01
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Xenoborg posted:I have Health Equity for my HSA also. Like you quoted they charge and extra 0.40% a year to invest in the Vanguard funds, but even with that they are still cheaper than their preferred (actively managed) options. Yeah, you're basically paying the 0.4% fee regardless, it's just a question of how well they can hide it.
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Apr 16, 2018 20:57
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I'm also with HealthEquity. I suck it up and pay the "Investor Choice" fee to invest in their institutional Vanguard funds. It makes the effective annual ERs in the ~0.4% range. Not great, not terrible, and a heck of a lot better than any actively managed junk. I've yet to find an all-around better HSA custodian though. Or at least one good enough to justify the hassle of switching. Good news is that HSAs are entirely individually-owned and portable, and you're not stuck with any single custodian like you are with a 401k. So if someone does start offering great HSA accounts you can switch.
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Apr 16, 2018 21:08
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Guinness posted:I'm also with HealthEquity. I suck it up and pay the "Investor Choice" fee to invest in their institutional Vanguard funds. It makes the effective annual ERs in the ~0.4% range. Not great, not terrible, and a heck of a lot better than any actively managed junk. HSAbank is marginally better. I think you pay $2.50/mo for accounts with less than $5k in cash and an additional $3/mo if you choose to invest. They give you a tdameritrade account and you do whatever. Tdameritrade use to have fee free etfs which included some vanguard ones but now they took those away so your choices are worse. I made the switch but meh. Not sure why but all HSAs suck.
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Apr 17, 2018 00:00
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Huh, I didn't know you could choose your own HSA plan. Is that when you switch jobs, kind of like a rollover? It seems like there aren't any that are significantly better than others?
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Apr 17, 2018 00:28
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I think you can roll over whenever you like, but of course the custodians make it a colossal pain in the rear end to take money away from them, and indeed there's no really good ones anyway. Not sure why there isn't a branch of Vanguard or something.
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Apr 17, 2018 01:04
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Our HSA is through HSABank, and like y'all said you can move providers whenever. But our company subsidizes the administrative costs (yay) such that it's inefficient to do so (boo). Taking the good with the bad here, I guess.
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Apr 17, 2018 01:53
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