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Volkerball
Oct 15, 2009

by FactsAreUseless
Me personally, I'd do 30 in the nationwide international, 40 in the nationwide s&p 500, 15 in columbia small cap, and 15 in nationwide mid cap.

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movax
Aug 30, 2008

Hoodwinker posted:

In the case that you did the backdoor? Nothing.

Yep, in the case I do the backdoor and end up under the amount. Sounds good to me, thanks!

ellic
Apr 28, 2009

I never asked for this

Grimey Drawer
Hey there thread,

I could use some advice and sanity check on how I can optimize my situation.
I have a Roth IRA in American Funds composed of The Investment Company of America (AIVSX) and I'm concerned about that fund.
These are Class A shares, but I'm not sure if that is important, or really if holding Class A of anything means anything special.
I do know this account is set to automatically reinvest it's dividends and gains into itself and, as I am now out of debt, I am looking to start fully funding this IRA going forward.
(To much regret, I really wasn't able to do this until recently.)

I'm certain this fund's expenses in fees aren't the best offering around and I'm trying to understand if there are specific benefits that justify it.
Would it be wiser to switch to to a matching VTSAX or other index fund? Would it be better to just dump American Funds entirely and roll it to a Vanguard account/fund?

It is a load fund with a 0.57 expense ratio.





Also, I have a small Traditional IRA that is sitting with USAA as a result of a previous employer's 401K being rolled over.
It's roughly $2400 in USCRX - Cornerstone Moderately Aggressive Fund.
I don't touch this at all (all my contributions go to the ROTH IRA) and I would rather combine the value into one IRA just so I don't have to keep track of it. What I don't know is if that is possible or wise to do so.

I appreciate your time and thoughts on this as I'm trying to become more financially literate. I'm happy to answer any questions.
Also if it would be easier to get on a VoiP client to talk 1x1 I'm down for that as well. Plenty of open goon servers for that.

ellic fucked around with this message at 23:37 on Apr 20, 2019

Kylaer
Aug 4, 2007
I'm SURE walking around in a respirator at all times in an (even more) OPEN BIDENing society is definitely not a recipe for disaster and anyone that's not cool with getting harassed by CHUDs are cave dwellers. I've got good brain!

ellic posted:

Would it be better to just dump American Funds entirely and roll it to a Vanguard account/fund?

YES.

Run, do not walk, run away. That fund is absolute poo poo in every way imaginable. Move your money over to Vanguard, put all your money into a target date fund, and that's probably all the effort you'll need/want to put into it.

spwrozek
Sep 4, 2006

Sail when it's windy

Kylaer posted:

YES.

Run, do not walk, run away. That fund is absolute poo poo in every way imaginable. Move your money over to Vanguard, put all your money into a target date fund, and that's probably all the effort you'll need/want to put into it.

I might as well empty quote this.

Move that poo poo vanguard Monday morning.

moana
Jun 18, 2005

one of the more intellectual satire communities on the web

ellic posted:

These are Class A shares, but I'm not sure if that is important, or really if holding Class A of anything means anything special.
A stands for "rear end hosed" which is what happened when you bought the shares initially: class A shares are front loaded. Morningstar says 5.75% haircut right off the top. That means if you put $100k into it in the beginning, they just took $5750 right away and toasted marshmallows over your money. Sorry to tell you this. Get thee to Vanguard and never ever buy a class A share of anything ever again.

ellic
Apr 28, 2009

I never asked for this

Grimey Drawer
Thank you. I've created an online account and will transfer this with Vanguard's help.

Am I leaving any advantages behind by exiting my Class A stuff with American Funds?
I'm interested in assigning funds, such as VTSAX in my IRA rather than a target date fund. Is that frowned upon?
I'm currently investing in 4 funds for my 401k rather than the default Target Date Fund and I am expecting to take the same control with my IRA.

For my 401k (Fideily) I have a distribution of:
30% SM Midcap Core Index
25% Equity Index
25% US Large Cap Equity
20% International Index

I expect to re-balance these 1 or 2 time a year.
I wasn't planning to follow that exact template for the IRA, but I didn't want to just throw in a TDF.
If that is an absurd plan, just let me know as I'm here to learn and appreciate the guidance.

Thank you again for your advice.

---
e: I didn't see Moana's reply until after I posted. thanks for the heads-up on the Class A stuff.

GoGoGadgetChris
Mar 18, 2010

i powder a
granite monument
in a soundless flash

showering the grass
with molten drops of
its gold inlay

sending smoking
chips of stone
skipping into the fog
American Funds generally shares that 5.75% with whoever referred you to them. How did you end up holding it? They waltzed off with your money.

ellic
Apr 28, 2009

I never asked for this

Grimey Drawer

GoGoGadgetChris posted:

American Funds generally shares that 5.75% with whoever referred you to them. How did you end up holding it? They waltzed off with your money.

I believe it was from the advice of a financial adviser who is a "friend" of the family.
My brother and I have both firmly stated to my parents who trust this guy, that we both think he's wasting their money.

The fund was started when I was 18 as I was working at the time. I didn't know anything about setting this stuff up and asked them for help.
In the 90's, web-based finance tools, and for that matter finance information and advice in general, wasn't really as freely accessible as it is now.
They trust the professional who manages this, and that's how the account was created. Me not knowing any better and happy to have at least gotten the account started was happy to contribute what I could.
To be honest, even if the expenses and costs would have been explained to me, at the time I still wouldn't have known how to compare or question the norm of paying fees for this type of account.

I've only started to seriously question my financial fitness and this sub-forum has been a wonderful resource to help arm me with how to scrutinize and question the products around me.

moana
Jun 18, 2005

one of the more intellectual satire communities on the web

ellic posted:

I'm interested in assigning funds, such as VTSAX in my IRA rather than a target date fund. Is that frowned upon?
I'm currently investing in 4 funds for my 401k rather than the default Target Date Fund and I am expecting to take the same control with my IRA.

For my 401k (Fideily) I have a distribution of:
30% SM Midcap Core Index
25% Equity Index
25% US Large Cap Equity
20% International Index

I expect to re-balance these 1 or 2 time a year.
I wasn't planning to follow that exact template for the IRA, but I didn't want to just throw in a TDF.
If that is an absurd plan, just let me know as I'm here to learn and appreciate the guidance.
It's not absurd, but where is your bond allocation? Also that's a weird tilt with a ton of overlap, why not a more straightforward small, mid, large cap 3 fund selection? You can do a nice thing with your IRA and 401k where you slice and dice by picking the lowest cost thing in your 401k (usually a SP500 index or something similar) and then do the other funds in your IRA where it's (usually) cheaper. What are the expense ratios and actual tickers for your Fidelity stuff?

Volkerball
Oct 15, 2009

by FactsAreUseless
Nah, it's not frowned upon, just understand that at that point, you're really splitting hairs. The target funds have a .15% expense ratio. For a three fund portfolio, VTSAX is .04%, VTIAX is .11%, and VBTLX is .05%. You'll have more control over your stock to bond ratio and your international to domestic ratio if you do the three fund, so if you want to micromanage a bit, that's a good way, and it can be cheaper. Just understand that it's not going to be a night and day difference because the target funds are already so cheap, mainly because they are going to be heavy into the same sorts of index funds. Thinking about which method you prefer is going to be nowhere near as important as figuring out how to put in as much as you can, because that is going to determine what you end up with way, way more than whatever little deviation there is between these two approaches.

moana
Jun 18, 2005

one of the more intellectual satire communities on the web

ellic posted:

I believe it was from the advice of a financial adviser who is a "friend" of the family.
My brother and I have both firmly stated to my parents who trust this guy, that we both think he's wasting their money.
While you probably don't want to start a family fight over this, it is in your best interest to have some transparency with your parents' finances, especially since you'll be the one supporting them if their nice trusted advisor ends up selling them a bag of poo poo for their retirement. Without being pushy, it may be worthwhile to ask them if you can all sit down with an independent fiduciary (use NAPFA to find one) and do a fee analysis on what they're holding, just as a second opinion. Not having the advice come from you is the best way to get through to them.

As our parents get older, they get more and more susceptible to scams and scammy advice. It's hard to have these discussions, but even harder to deal with the mess that comes from not having them. Do your parents have one of you as their power of attorney/have they done their estate planning with one of you in mind as the person to deal with this stuff when they pass? That person should be the one to take the reins on this.

ellic
Apr 28, 2009

I never asked for this

Grimey Drawer

moana posted:

It's not absurd, but where is your bond allocation? Also that's a weird tilt with a ton of overlap, why not a more straightforward small, mid, large cap 3 fund selection? You can do a nice thing with your IRA and 401k where you slice and dice by picking the lowest cost thing in your 401k (usually a SP500 index or something similar) and then do the other funds in your IRA where it's (usually) cheaper. What are the expense ratios and actual tickers for your Fidelity stuff?

Sure, and thanks for asking.
I'm frustrated that I cannot find the actual tickers for these to share with you.
I do have the expenses, though.
What key information would be helpful on the individual funds? Asset allocation and top holdings?

Passive Funds:
Equity Index Fund
Expense Ratio: 0.04%

Sm Midcap Core Index
Expense Ratio: 0.06%

International Index
Expense Ratio: 0.12%

Actively Managed:
US Large Cap Equity
Expense Ratio: 0.27%

You've made a great call out, I do not hold anything specifically for bonds but I'm certainly willing to make that change.
I was of the (wrong) mindset that I should just be focusing on index and growth investments now and slowly pick up bonds over time.
Having absolutely no bonds seems like an unnecessarily high amount of risk, however.

There is a Bond Index Fund offering with a 0.05% expense ratio available.

My current choices were based around owning a
- Large Cap Fund
- Mid Cap Fund
- Growth Fund (which seems to be mostly mid cap overlap)
- and an International Fund

I think the 3 fund allocation for the IRA per Volkerball sounds like a great plan.

spwrozek
Sep 4, 2006

Sail when it's windy

Also if you want your can use Fidelity since your 401k is with them. They have ERs basically the same as vanguard.

pookers
Jul 9, 2007
So, being new to making enough money to plan for retirement, I read a lot of the amazing advice in this and other BFC threads (thanks zaurg!). I opened up a vanguard traditional IRA in November, rolled an old 401K into it, maxed it out for 2018 and then maxed out for 2019 in January. Its all in a target retirement account. However, I found out while doing my taxes that my AGI was too high (78k) to deduct my contributions.

Knowing what little I know about traditional vs. roth, I should convert my IRA to roth and I'd just be charged taxes on the $1500 that it has grown since opening, right? I guess I don't have a great understanding of what happens at retirement... if the traditional IRA is taxed at withdrawal and I already paid taxes on my contributions, how does that work? If I'm already paying taxes on my contributions I should do roth so I won't be taxed at withdrawal right? I have to be missing some vital piece of information, or I just don't get it.

Chu020
Dec 19, 2005
Only Text

pookers posted:

So, being new to making enough money to plan for retirement, I read a lot of the amazing advice in this and other BFC threads (thanks zaurg!). I opened up a vanguard traditional IRA in November, rolled an old 401K into it, maxed it out for 2018 and then maxed out for 2019 in January. Its all in a target retirement account. However, I found out while doing my taxes that my AGI was too high (78k) to deduct my contributions.

Knowing what little I know about traditional vs. roth, I should convert my IRA to roth and I'd just be charged taxes on the $1500 that it has grown since opening, right? I guess I don't have a great understanding of what happens at retirement... if the traditional IRA is taxed at withdrawal and I already paid taxes on my contributions, how does that work? If I'm already paying taxes on my contributions I should do roth so I won't be taxed at withdrawal right? I have to be missing some vital piece of information, or I just don't get it.

If your income is above the traditional IRA deduction limit but below Roth IRA limits, then just contribute to a Roth IRA moving forward. Since you haven’t filed taxes for 2019 yet, I think you can just recharacterize your IRA contributions for the current year to Roth without any issues, which just makes it as if you had directly made a Roth contribution in the first place.

Main question to answer now is how likely it is your income in the future will phase you out of direct Roth contributions. If it’s a possibility, then you’d want your IRA balance to be 0 so you can do backdoor Roth contributions, which is basically just making a non-deductible traditional IRA contribution like you accidentally did this year, then converting it to a Roth contribution. This is different than recharacterization because you would have to pay taxes on the entire conversion if it was a deductible contribution before, but since it’s non-deductible, you don’t owe anything extra. However, if you have existing IRA balances, then a pro-rata calculation is done and you do end up owing some in taxes. Short version of pro-rata is that all your trad IRA money is considered mixed together, so if you have $9k or pre-tax money in there, do a $1k non-deductible contribution and convert $1k to Roth, you’d be taxed on $9k (amount of pre-tax money in account) / $10k (total amount in IRA) = 90% of the $1k contribution, so ordinary income tax rates would be applied to $900 of the conversion.

So your options right now are to convert all of your IRA balances to traditional and pay ordinary income tax rates on the entire conversion, try to roll over your former 401k balances to your current 401k and then convert whatever’s left over, or to just leave your trad IRA money alone assuming you’re not planning on doing backdoor Roth contributions in the future.

Chu020 fucked around with this message at 11:29 on Apr 21, 2019

pookers
Jul 9, 2007

Chu020 posted:

good stuff

Awesome, thank you. Thats what I thought I had read online but in much simpler terms. I hope to make enough to be over roth eligibility one day, I'm a nurse and would like to make it to California eventually. I'll be recharacterizing to roth this week, contributing to it directly in the future, and then doing a back door once I get close to the income cap. Thanks!

I'm also maxing out my TSP into one of their target retirement accounts. That's the best move like it is in Vanguard, correct?

Thanks guys!

moana
Jun 18, 2005

one of the more intellectual satire communities on the web

ellic posted:

Sure, and thanks for asking.
I'm frustrated that I cannot find the actual tickers for these to share with you.
What key information would be helpful on the individual funds? Asset allocation and top holdings?

Passive Funds:
Equity Index Fund
Expense Ratio: 0.04%

Sm Midcap Core Index
Expense Ratio: 0.06%

International Index
Expense Ratio: 0.12%

Actively Managed:
US Large Cap Equity
Expense Ratio: 0.27%

You've made a great call out, I do not hold anything specifically for bonds but I'm certainly willing to make that change.
I was of the (wrong) mindset that I should just be focusing on index and growth investments now and slowly pick up bonds over time.
Having absolutely no bonds seems like an unnecessarily high amount of risk, however.

There is a Bond Index Fund offering with a 0.05% expense ratio available.

My current choices were based around owning a
- Large Cap Fund
- Mid Cap Fund
- Growth Fund (which seems to be mostly mid cap overlap)
- and an International Fund

I think the 3 fund allocation for the IRA per Volkerball sounds like a great plan.
I don't like a growth tilt for the long term, and why is the large cap actively managed? That's weird. But those expense ratios are fantastic, so no worries about that. And hey, some people go all equities, but usually a handful of bonds will help you out and let you sleep a little easier.

actionjackson
Jan 12, 2003

Couple questions:

1) For early 403b withdrawal, is there a penalty even if you're only taking out the money you put in? i.e. not any of the gained value.

2) Any thoughts on Roth and 403b splits if I can't max both? 50/50? It looks like the maxes next year will be 19k and 6k. There's no way I'm going to be able to hit both, mainly because I'm spending a lot on home remodeling. Last year I maxed the Roth and did 17.5k on the 403b. I'll be 37 in July, no kids, no debt except my mortgage. I'd like to retire by 50, but if I can't take anything out without penalty until 59.5 then maybe not.

Actually it does look like for the 403b, you can take money out penalty free at 55 if you retire (for example).

https://www.balancepro.net/education/publications/earlywithdrawal.html

"If you are “separated from service” (through permanent layoff, termination, quitting, or retiring) after turning 55 or older"

I currently have literally everything in a Vanguard index fund with an ER of 0.03% or so

TooMuchAbstraction
Oct 14, 2012

I spent four years making
Waves of Steel
Hell yes I'm going to turn my avatar into an ad for it.
Fun Shoe
Do the 401(k) first because you can put in pre-tax money.

actionjackson
Jan 12, 2003

TooMuchAbstraction posted:

Do the 401(k) first because you can put in pre-tax money.

You mean 403b I assume. Could you explain your answer a bit so I understand?

TooMuchAbstraction
Oct 14, 2012

I spent four years making
Waves of Steel
Hell yes I'm going to turn my avatar into an ad for it.
Fun Shoe
Right, sorry, 403b. Either way the contributions you make to that account do not count as income in the year you make those contributions. You don't have to pay income tax until you withdraw money from the account. That's usually when you're retired. Not only are your income taxes typically lower when you're retired (due to having lower income), but also that's a lot of time for your money to make returns before you have to pay taxes on it.

totalnewbie
Nov 13, 2005

I was born and raised in China, lived in Japan, and now hold a US passport.

I am wrong in every way, all the damn time.

Ask me about my tattoos.
From the BWM thread, thought it's more relevant here

gvibes posted:

Also, [529] contributions are deductible against state income in some states (Illinois!).

But not all states. But you also don't have to use your own state's 529. Which always confused me, but I never looked into it because I don't have any kids.

So.. if you are in a non-deductible 529 state but use a 529 from a state that is deductible, can you still deduct contributions? How does that work?

H110Hawk
Dec 28, 2006

ellic posted:

Am I leaving any advantages behind by exiting my Class A stuff with American Funds?

e: I didn't see Moana's reply until after I posted. thanks for the heads-up on the Class A stuff.

I would like to take a moment to elaborate on this, because their sales model obviously works at least a little bit. I just made these numbers up and the math isn't going to add up entirely, but it's illustrative of how you can trivially be hosed over by this stuff.

Share classes are nothing more than a mapping through to their corporate governance documents. The letters are arbitrary, unlimited, and can be literally anything. They hold no meaning in law, only what the contract states. For example, you could have a company that names its share classes B and P. They then define them as: B is for Best Buddies with Megacorp Besty McBestfriends We Definitely Love You For Who You Are As A Person. They carry 1 vote and the 100000000000 shares own 2% of the company. Then P for Pedophile - People Who Own These Shares Are Definitely Pedophiles. They carry 9800000000000 votes each and all 98 shares of it own 98% of the company and is paid a dividend of all GAAP profit quarterly because lol we loooooooooove money and are definitely pedophiles.

The Class P shares are allocated directly to the CEO(95), CTO (1), CFO (1), and CTO (1).

Which share class would you like to own?

Untagged
Mar 29, 2004

Hey, does your planet have wiper fluid yet or you gonna freak out and start worshiping us?

totalnewbie posted:

So.. if you are in a non-deductible 529 state but use a 529 from a state that is deductible, can you still deduct contributions? How does that work?

No, not typically. You could but it would only be deductible for income in that other state.

The reason people tend to use out of state 529's is because of investment and fund choices. Your home state might have a crappy plan administrator with high fees and poor choices, so you can elect to go with a state that has Vangaurd or the like.

DaveSauce
Feb 15, 2004

Oh, how awkward.

totalnewbie posted:

From the BWM thread, thought it's more relevant here


But not all states. But you also don't have to use your own state's 529. Which always confused me, but I never looked into it because I don't have any kids.

So.. if you are in a non-deductible 529 state but use a 529 from a state that is deductible, can you still deduct contributions? How does that work?

Nope, it's about the state you live in/file taxes in/whatever. If you live and earn income in a state that does not allow deductions for 529 contributions, then you're SOL. And even if you are a resident, you MIGHT be required to use your state's plans to get the preferential tax treatment... not 100% sure on that.

Doesn't matter to me, I'm in a state with a poo poo 529 plan and no tax advantages, so I opened mine through Vanguard (which is sponsored by Nevada).

529s are state programs, not federal. So states can do whatever they want with them, really... all the 529 is, at the federal level, is a way to avoid paying federal tax on the gains. Principal is always yours. Of course in the event of a non-qualified distribution, the states will want to claw back any tax deductions you took on the principal... so the principal isn't completely safe from the states.

Pipistrelle
Jun 18, 2011

Seems the high horse is taking them all home

Hi all, just started at a new company and I'm setting up my 401(k). Not super thrilled with the choices I have so far, so I'm hoping you all may be able to help me figure out a decent portfolio. I also have a Roth IRA setup through Vanguard that I max out every year, and which is fully invested in one of the vanguard target date funds cause I'm lazy. Here are the funds I have access to through my job:




The expense ratios definitely leave something to be desired. I'm thinking of doing a mix of the fidelity index funds for my domestic stocks, but I'm not sure how much weight to give each, and the bonds and international fund ERs are so awful I'm not sure what to do. Any help or advice anyone can give me is greatly appreciated!

GoGoGadgetChris
Mar 18, 2010

i powder a
granite monument
in a soundless flash

showering the grass
with molten drops of
its gold inlay

sending smoking
chips of stone
skipping into the fog

Pipistrelle posted:

Hi all, just started at a new company and I'm setting up my 401(k). Not super thrilled with the choices I have so far, so I'm hoping you all may be able to help me figure out a decent portfolio. I also have a Roth IRA setup through Vanguard that I max out every year, and which is fully invested in one of the vanguard target date funds cause I'm lazy. Here are the funds I have access to through my job:




The expense ratios definitely leave something to be desired. I'm thinking of doing a mix of the fidelity index funds for my domestic stocks, but I'm not sure how much weight to give each, and the bonds and international fund ERs are so awful I'm not sure what to do. Any help or advice anyone can give me is greatly appreciated!

Your Fidelity large, small, and midcap stocks are top tier. Hold 'em all to approximate a Total Stock Market and use your IRA and/or taxable accounts to get your international and bond exposure!

OneTruePecos
Oct 24, 2010

Pipistrelle posted:

Hi all, just started at a new company and I'm setting up my 401(k). Not super thrilled with the choices I have so far, so I'm hoping you all may be able to help me figure out a decent portfolio. I also have a Roth IRA setup through Vanguard that I max out every year, and which is fully invested in one of the vanguard target date funds cause I'm lazy. Here are the funds I have access to through my job:




The expense ratios definitely leave something to be desired. I'm thinking of doing a mix of the fidelity index funds for my domestic stocks, but I'm not sure how much weight to give each, and the bonds and international fund ERs are so awful I'm not sure what to do. Any help or advice anyone can give me is greatly appreciated!

I wouldn't put a penny into anything listed other than the small, mid, large cap Fidelity funds. Jesus Christ, even SPAXX has a .42% expense ratio, what the gently caress!

Mu Zeta
Oct 17, 2002

Me crush ass to dust

Your FXAIX Fidelity 500 fund is fantastic with 0.015% ratio. I'd put most of my money into that.

Kylaer
Aug 4, 2007
I'm SURE walking around in a respirator at all times in an (even more) OPEN BIDENing society is definitely not a recipe for disaster and anyone that's not cool with getting harassed by CHUDs are cave dwellers. I've got good brain!
You can approximate the total U.S. stock market with the following distribution of money, according to this page by doing the following:

81% Fidelity 500 Index Fund (FXAIX)
11% Fidelity Mid Cap Index Fund (FSSMX)
8% Fidelity Small Cap Index Fund (FSSNX)

I would get your bonds (if you even want bonds) and international (if you even want that) in another account such an an IRA rather than taking any of the other options available from that list.

spwrozek
Sep 4, 2006

Sail when it's windy

Agree with everyone and those ERs are great for those three funds. Who cares if the others are garbage since you can get the international and bonds in your ira if you want.

Pipistrelle
Jun 18, 2011

Seems the high horse is taking them all home

Mu Zeta posted:

Your FXAIX Fidelity 500 fund is fantastic with 0.015% ratio. I'd put most of my money into that.


Kylaer posted:

You can approximate the total U.S. stock market with the following distribution of money, according to this page by doing the following:

81% Fidelity 500 Index Fund (FXAIX)
11% Fidelity Mid Cap Index Fund (FSSMX)
8% Fidelity Small Cap Index Fund (FSSNX)

I would get your bonds (if you even want bonds) and international (if you even want that) in another account such an an IRA rather than taking any of the other options available from that list.


spwrozek posted:

Agree with everyone and those ERs are great for those three funds. Who cares if the others are garbage since you can get the international and bonds in your ira if you want.

Thanks all, I'll go with the three U.S. stock market blend Kylaer posted and then figure out the international stuff in my IRA. Ya'll are the best!

El Mero Mero
Oct 13, 2001

jeeze I just found out there are massive TSP facebook groups hawking "seasonal investing" (daily/weekly/monthly) re-allocation strategies and other active trading tips for their TSP accounts. ffs people :sigh:

El Mero Mero fucked around with this message at 05:10 on Apr 23, 2019

Beer4TheBeerGod
Aug 23, 2004
Exciting Lemon

El Mero Mero posted:

jeeze I just found out there are massive TSP facebook groups hawking "seasonal investing" (daily/weekly/monthly) re-allocation strategies and other active trading tips for their TSP accounts. ffs people :sigh:

Yeah I can definitely beat the market. It's why I work for the federal government.

Damn Bananas
Jul 1, 2007

You humans bore me
I'm having trouble finding good info about SEP IRAs from the POV of an employee with one instead of the small business owner themselves. Is it possible to move mine from Ameriprise to Vanguard, or is it just stuck wherever the business owner opened it? I am still employed there and will continue to receive my employer's contributions for the foreseeable future. The person running our company's plan has been pretty unhelpful and I'd rather just park it all in a target date fund with my other Vanguard stuff. If so, where can I find the forms to do so?


e: vvv Thank you!

Damn Bananas fucked around with this message at 17:56 on Apr 23, 2019

air-
Sep 24, 2007

Who will win the greatest battle of them all?

FYI if you are on T-Mobile: https://www.t-mobilemoney.com/en/home.html

MockingQuantum
Jan 20, 2012



drat Bananas posted:

I'm having trouble finding good info about SEP IRAs from the POV of an employee with one instead of the small business owner themselves. Is it possible to move mine from Ameriprise to Vanguard, or is it just stuck wherever the business owner opened it? I am still employed there and will continue to receive my employer's contributions for the foreseeable future. The person running our company's plan has been pretty unhelpful and I'd rather just park it all in a target date fund with my other Vanguard stuff. If so, where can I find the forms to do so?

I've got a SEP through work and my understanding is there's no real requirement of where it exists, at least as far as the IRS is concerned. We're a company of three people and we each have our SEP IRA at a different company. When I started, I just set up a SEP at Vanguard and my boss contributes to that. That said, he has to cut a physical check with the account number in the memo, and mail it to Vanguard with a letter of instruction saying it's for Mocking Quantum, Acct#0000, 2019 Employer Contribution etc etc. which I guess is a bit of a hassle.

I have no idea whether your employer can legally require you to have a SEP IRA at a custodian they designate, I'm sure if they're opening them at Ameriprise it's probably either because it makes their life easy or they have some sort of deal worked out with Ameriprise. Everything I've read makes it sound like there's no restriction as such, though.



Is it common for savings accounts to cap APY once you hit a certain balance? It feels like ages since I've seen something say "4.00% APY up to a balance of $3000"

Hoodwinker
Nov 7, 2005

I saw this before but I do not feel like jumping through hoops for an extra ~$60 per annum.

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DJCobol
May 16, 2003

CALL OF DUTY! :rock:
Grimey Drawer

MockingQuantum posted:

Is it common for savings accounts to cap APY once you hit a certain balance? It feels like ages since I've seen something say "4.00% APY up to a balance of $3000"

Thats a checking account, and yes for checking accounts since they aren't usually places to horde cash.

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