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I have a 403b, the match is something between 6-9% maybe. Can anyone remind me why, in addition to a small match each pay period, I get a rather large sum each February? I assume it's related to previous year contributions. So each pay period I get some small amount that says "Employer contribution" in addition to my (much larger) "employee contribution" but each February I get two large amounts, one which says "Employer match" and one which says "Employer base"
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Jul 10, 2019 04:17
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three posted:Why do some places like Citi with their "Citi Accelerate" Savings account provide 2.36% APR but my bank (e.g. BB&T) provides a 0.03% APR? Is there some sort of gotcha? They pay you 0.03%, then turn around and put your money in something government-backed that pays them 3% and pocket the difference.
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Jul 10, 2019 04:32
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three posted:Why do some places like Citi with their "Citi Accelerate" Savings account provide 2.36% APR but my bank (e.g. BB&T) provides a 0.03% APR? Is there some sort of gotcha?
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Jul 10, 2019 05:00
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Gazpacho posted:Citi offers the high rate in 41 states and point-oh rates elsewhere on the same account, which suggests they're trying to boost their presence in those states and could discontinue the high rate when they're done. Which isn't necessarily a problem, if you are always prepared to move on.
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Jul 10, 2019 05:33
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Citi Bank savings is 0.04% here in California
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Jul 10, 2019 05:37
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Mu Zeta posted:Citi Bank savings is 0.04% here in California
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Jul 10, 2019 06:42
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withak posted:If you like credit unions, Alliant is an online credit union with a 2.something % savings account. I switched over to Alliant a few years ago and have been happy with them. I do everything online and haven't been inside a physical bank for years. A friend tried going through them for a mortgage and it was a mess, evidently they are just a middleman and the loan would be owned by Fannie Mae or some big bank anyway. They are still happy with Alliant though and use them for everything else.
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Jul 10, 2019 13:29
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WithoutTheFezOn posted:I notice the Accelerate thing isn’t available in four of the five largest states, only Texas.
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Jul 10, 2019 18:00
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DaveSauce posted:Many online banks do high interest as well. Ally and Marcus are typical favorites. With these, there are no gotchas except maybe some minimum balances or something. I don't have one (see above CU interest bonanza), but my understanding is that they're dead simple to set up and transfer to/from via your normal bank. When I say dead simple, I mean that after the first few transfers to establish things, it typically takes 1-2 business days at MOST to move money around electronically (someone please correct me if I'm wrong here). Noted non-mega-national-globo-banks: Goldman Sachs and Ally Financial, one of the largest banks in the country that went in deep on subprime loans leading up to the financial crisis and with a few recent dings on racial discrimination to boot. If you want to feel good, park the money at a CU even if the rate is slightly lower. At least the money those places make get put back into the institution instead of off to shareholders. Neon Belly fucked around with this message at 19:40 on Jul 10, 2019 |
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Jul 10, 2019 19:36
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Neon Belly posted:Noted non-mega-national-globo-banks: Goldman Sachs and Ally, one of the largest banks in the country and with a history of racial discrimination. Yes, I'm aware of the irony of my statement. The intent is not to use Marcus and Ally as regular banks, but simply to take advantage of their widely-regarded high-yield savings accounts. There are plenty of other options if you don't like those two.
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Jul 10, 2019 19:42
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I have a 401(k) from my previous employer at Fidelity, filled entirely with pre-tax contributions and employer matches. I'd like to move it to Vanguard because they have all my other savings. I've also been unemployed for over a year. Since that means my earned income is currently $0, and my unearned income is tiny... wouldn't it be a perfect time to convert the traditional 401(k) to a Roth IRA? As far as I can tell, I "just" create a traditional IRA at Vanguard, transfer the contents of my traditional 401(k) at Fidelity into it, and then roll the entire thing over to a Roth IRA also at Vanguard - are there contribution limits, or just the "pay income tax on it as though it's taxable income" is the only thing that applies? Doesn't appear that I have to use any fancy backdoor strats, since I don't hit income limits or anything. Just straight up transfers, plus tax on the rollover. Am I missing anything here, whether factually or just a reason this wouldn't be as good an idea as it seems?
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Jul 10, 2019 20:11
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DACK FAYDEN posted:I have a 401(k) from my previous employer at Fidelity, filled entirely with pre-tax contributions and employer matches. I'd like to move it to Vanguard because they have all my other savings.
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Jul 10, 2019 20:25
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DACK FAYDEN posted:I have a 401(k) from my previous employer at Fidelity, filled entirely with pre-tax contributions and employer matches. I'd like to move it to Vanguard because they have all my other savings. Remember that is you become employed this year your taxes are cumulative for the year. If you get employed tomorrow your taxable earnings will be ~5/12ths your annual salary + amount converted from Trad-> Roth.
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Jul 10, 2019 21:59
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H110Hawk posted:Remember that is you become employed this year your taxes are cumulative for the year. If you get employed tomorrow your taxable earnings will be ~5/12ths your annual salary + amount converted from Trad-> Roth.  (and I do have some savings, thanks for the sanity check!)
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Jul 11, 2019 01:30
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Hello thread. Liked and subscribed. I'm about to switch my 401(k) from pre-tax to Roth. Not a conversion (like DACK FAYDEN is considering) but simply to stop contributing to the pre-tax and start contributing to Roth. I've maxed it out and get the full company match and will continue to do so. My employer is now allowing post-tax contributions of another $29k above the 401(k) limit which can be automatically converted in-plan to Roth. So unless my investments gain like crazy in the 24 hours it takes Fidelity to make the conversions, I should have no real tax bill due to the conversion, and both the contribution and the gains should eventually be tax-free. Assuming that I'm comfortable with the increased tax hit up front (due to the switch from pre-tax to Roth) and lower take-home (due to the additional post-tax contributions), can anyone give me a good reason not to do this?
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Jul 11, 2019 05:06
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When I login to myvanguardplan.com, where do I find the things I should paste here for goons to tell me whether it's good, mediocre, or lovely? EDIT: This is for my current company's 401k, and it's 100% in Vanguard Target Retirement 2045 Inv (VTIVX) TITTIEKISSER69 fucked around with this message at 05:13 on Jul 11, 2019 |
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Jul 11, 2019 05:11
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Trabant posted:Hello thread. Liked and subscribed. If you are happy with 100% Roth then it sounds fine. If you want a blend then still do the first $19k pretax. Make sure you talk to your plan administrator about what happens to missed match if you max out. Will they do a "return of excess" with you the deposit the rest? TITTIEKISSER69 posted:When I login to myvanguardplan.com, where do I find the things I should paste here for goons to tell me whether it's good, mediocre, or lovely? It's Vanguard do they even make bad plans?
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Jul 11, 2019 05:26
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Probably not. Just wish my company had a match 
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Jul 11, 2019 05:52
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You can change the fund date to a later one if you want to be more aggressive, but other than that you really can't go wrong with vanguard target date funds. They're a diversified mix of all the best index funds we recommend here.
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Jul 11, 2019 06:07
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What do you good goons suggest for long-term tracking? I'd really love to get some kind of application/webapp/etc. that I can either input my holdings by stock symbol, buy/sell date, buy/sell quantity, buy/sell cost, and have it track over time. Or bare minimum, something that can connect to my Vanguard (brokerage, IRA, wife's IRA) and Schwab (401k) accounts that shows growth/decline over time. Basically I want old Google Finance back. I don't mind if I gotta buy or pay for something; I'm presently doing this on a goon-designed Google Sheet that I can't quite wrap my brain around changing the names of the holdings it detects.
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Jul 11, 2019 14:49
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Personal Capital does all of that and is useful if you have significant amount of active stock/funds in taxable accounts. If you mostly have passive funds, then Mint is enough to keep track of balances / net worth.
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Jul 11, 2019 15:36
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MJP posted:What do you good goons suggest for long-term tracking? I'd really love to get some kind of application/webapp/etc. that I can either input my holdings by stock symbol, buy/sell date, buy/sell quantity, buy/sell cost, and have it track over time.
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Jul 11, 2019 15:37
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Currently, our retirement portfolio consists of: 1. 401k for my current job 2. 401k for my wife's current job 3. 457 for my wife's current job 4. 401k from my wife's old job 5. Backdoor Roth for me/wife 6. Taxable account I'm using a 4 fund account (Total Stock, International, Bond, REIT) across these accounts, which are across 3 companies. I'm trying to maximize the accounts for tax efficiency. Is it ok if I just worry about that during my yearly rebalance, and not try to figure that out each month? IE: can I just totally VTSAX my brokerage account, and then worry about rebalancing so my target bond ratio is what I want once a year? Residency Evil fucked around with this message at 16:09 on Jul 11, 2019 |
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Jul 11, 2019 15:58
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That is what I do.
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Jul 11, 2019 16:50
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Trabant posted:Hello thread. Liked and subscribed. edit: Also, if you don't have any pre-tax IRAs, you can ALSO do a Backdoor Roth IRA. The tax savings alone on doing $19k pre-tax are probably enough to max out one of those ($19,000 * 32% ~= $6000). Small White Dragon fucked around with this message at 20:16 on Jul 11, 2019 |
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Jul 11, 2019 20:13
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Good points -- thanks! I'll try to add more context around my situation: I'm a bourgie gently caress but not a save-$50k-per-year-level bourgie gently caress. I don't know how much of that after-tax $29k max I will consume after maxing out my 401(k), but it certainly won't be the full amount. Turning 40 soon, so I hope I'm not at the peak of my earning yet. I mean, I might be if anyone at my employer actually realizes I'm massively overpaid for what I do... but I'm not about to volunteer that information. Anyway, I do think taxes will go up both for myself (if I'm able to keep tricking employers into getting overpaid) and because the US just has to raise them at some point. Or the country will default in which case  at any attempt at planning anything. (I know, I know, that's been said for decades and we're still waiting...) I'll consider a pre/post-tax 401(k) mix as well, but on this: Small White Dragon posted:edit: Also, if you don't have any pre-tax IRAs, you can ALSO do a Backdoor Roth IRA. The tax savings alone on doing $19k pre-tax are probably enough to max out one of those ($19,000 * 32% ~= $6000). Doesn't a backdoor Roth IRA essentially end up double-taxing your contribution? My understanding is that I'd put $x into a traditional IRA and ask Vanguard to convert it to Roth, but IRS will first see that $x as income and tax me on it again. Granted, I get the benefit of the Roth after all that, but the upfront bill is annoying. Am I not better off using my employer's post-tax scheme to instead get taxed just once?
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Jul 11, 2019 21:08
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Trabant posted:Doesn't a backdoor Roth IRA essentially end up double-taxing your contribution? My understanding is that I'd put $x into a traditional IRA and ask Vanguard to convert it to Roth, but IRS will first see that $x as income and tax me on it again. Granted, I get the benefit of the Roth after all that, but the upfront bill is annoying. Am I not better off using my employer's post-tax scheme to instead get taxed just once? No, on your taxes you just indicate that you're not deducting the $x (since, if you're using the backdoor contribution, you're way above the $74,000 IRA deductibility ceiling anyways), so the IRA contribution has a non-deducted basis. The IRS sees that taxes have/are already being paid. Since you don't make any money between contribution and conversion (maybe a few bucks in bank interest) you don't have any earnings to pay taxes on.
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Jul 11, 2019 21:17
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You only pay taxes on it once. The people who have a big tax bill after a conversion are the people who previously deducted the Trad IRA from their taxes. If you couldn't deduct the contributions to the Trad IRA then you only have to pay taxes on any gains that came before the conversion.
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Jul 11, 2019 21:18
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Trabant posted:Turning 40 soon, so I hope I'm not at the peak of my earning yet. I mean, I might be if anyone at my employer actually realizes I'm massively overpaid for what I do... but I'm not about to volunteer that information. Anyway, I do think taxes will go up both for myself (if I'm able to keep tricking employers into getting overpaid) and because the US just has to raise them at some point. Or the country will default in which case Sure, the US government will almost certainly need more revenue down the line, but the jury is out on how that might be accomplished. For example, if push came to shove, we might end up with a federal VAT in addition to income tax, like most every other country has. What I'm trying to say is, future tax benefits could always be taken away or lessened, but a deduction now is for-sure. edit: removed other parts, as other commenters already addressed the backdoor IRA part
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Jul 11, 2019 21:23
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Thanks for the clarification, everyone. To make sure I understand the One Simple Trick: 1) Contribute to the traditional IRA basically as much as you can (since there is no limit to the backdoor conversion) using... any source of money, including savings? 2) Ask IRA administrators to convert it to Roth ASAP to make sure the gains before the conversion are minimal 3) Do not claim a tax deduction on any of this since you're over the MAGI limit 4) Enjoy the Hide The Money lifestyle of the moderately well off?
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Jul 11, 2019 21:45
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Trabant posted:1) Contribute to the traditional IRA basically as much as you can (since there is no limit to the backdoor conversion) using... any source of money, including savings? But otherwise, that looks about right. And FYI, there's a special form (form 8606) you'll need to include on your tax return when you do this. Small White Dragon fucked around with this message at 21:51 on Jul 11, 2019 |
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Jul 11, 2019 21:48
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I'd pick an arbitrary number to stop contributing at. Let's say, oh $6000 at random
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Jul 11, 2019 21:49
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Small White Dragon posted:While there is no limit on conversions, IRA contributions are capped at $6,000 this year ($7,000 if you're 50 or over) regardless of the kind of contribution.  And yeah, should've remember the distinction between contribution and conversion limits  edit: Thinking about it more, I happen to be in a situation where I don't really have to use the backdoor Roth IRA unless I really want to have $6k/year of my money with someone other than Fidelity. The after-tax plan my employer offers would accomplish the same thing but it also has a $29k/year cap and doesn't require my intervention. If that plan happens to get discontinued or I change employers, then the backdoor absolutely makes sense. Trabant fucked around with this message at 22:21 on Jul 11, 2019 |
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Jul 11, 2019 21:57
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Trabant posted:Anyway, I do think taxes will go up both for myself (if I'm able to keep tricking employers into getting overpaid) and because the US just has to raise them at some point. Or the country will default in which case The federal government doesn’t need taxes to pay for anything, when you pay fed tax that money is just destroyed. “all” the fed tax does is prevent inflation https://en.m.wikipedia.org/wiki/Modern_Monetary_Theory
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Jul 11, 2019 23:17
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Trabant posted:edit: Thinking about it more, I happen to be in a situation where I don't really have to use the backdoor Roth IRA unless I really want to have $6k/year of my money with someone other than Fidelity. The after-tax plan my employer offers would accomplish the same thing but it also has a $29k/year cap and doesn't require my intervention. If that plan happens to get discontinued or I change employers, then the backdoor absolutely makes sense.
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Jul 12, 2019 00:02
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Small White Dragon posted:Sure, the US government will almost certainly need more revenue down the line, but the jury is out on how that might be accomplished. For example, if push came to shove, we might end up with a federal VAT in addition to income tax, like most every other country has. What I'm trying to say is, future tax benefits could always be taken away or lessened, but a deduction now is for-sure. There's a small meltdown going on over at the Wall Street Journal comments section (paywall warning), because, in some ways, this is already starting. Nobody's coming for a second go at Roth IRA funds, but they're taking some wind out of the dynastic wealth-building potential of really big IRAs. Most of the article is guillotine bait, but the short form is that, if the SECURE Act becomes law, it'll adjust the rules on payouts for non-spousal inheritance of IRAs. Right now, if you Mitt Romney the hell out of your IRA and die with leftover money, you can leave it in trust to your kids and/or grandkids and trust-fund them for the rest of their (actuarial) lives. The new rules say that non-spousal beneficiaries will have to take out all the remaining funds in an IRA within 10 years, pushing that income A) closer to "now" and B) into higher tax brackets. Cassius Belli fucked around with this message at 00:43 on Jul 12, 2019 |
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Jul 12, 2019 00:41
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Does anybody here use the Vanguard website as their main brokerage provider for buying all of mutual funds / etfs and stocks? I've been told on multiple occasions that Schwab or Ameritrade are much friendlier from that perspective, even though you will have to pay a few more bucks for buying Vanguard assets.
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Jul 12, 2019 02:46
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Pardot posted:The federal government doesn’t need taxes to pay for anything, when you pay fed tax that money is just destroyed. “all” the fed tax does is prevent inflation https://en.m.wikipedia.org/wiki/Modern_Monetary_Theory Even if I were to agree with that theory, uncontrolled inflation alone is a horrid thing. I lived through a period of hyperinflation (  ) and it's difficult to overstate how devastating it can be.spf3million posted:There are different pre-retirement-age withdrawal rules for Roth IRAs and Roth 401ks which might matter to you of you plan on retiring early. Early retirement is probably not in the cards, but thanks -- good to know regardless.
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Jul 12, 2019 03:04
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DreadCthulhu posted:Does anybody here use the Vanguard website as their main brokerage provider for buying all of mutual funds / etfs and stocks? I've been told on multiple occasions that Schwab or Ameritrade are much friendlier from that perspective, even though you will have to pay a few more bucks for buying Vanguard assets. Friendlier how? Like interface? I don't care about that. Vanguard works. I don't day trade so I don't give a gently caress. I care about fees and the structure of the funds/values of the company as they relate to me as an investor. So Vanguard all the way.
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Jul 12, 2019 03:08
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If you're investing x amount a week into a vanguard mutual fund, you can automate the entire process, so I don't really care about the interface. I don't even use it anymore. It shows my account balance and return, what more could I need? I mean if you're day trading stocks you don't really get a whole lot of tools, but that's against the grain of what vanguard is.
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Jul 12, 2019 03:12
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