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Ropes4u posted:My employer just sent out an email making sure people knew they will true up front loaders. One complication to be aware of is whether you're going to stay the whole year at your employer. Can't get the true up if you switch firms.
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Jul 14, 2019 06:49
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zaurg posted:One more question on this topic. If IRA is already maxed and you're trying to get 401k maxed for 2019, which is the smarter option? Also you, specifically, probably shouldn’t be dipping into your savings.
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Jul 14, 2019 13:53
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WithoutTheFezOn posted:A couple thousand over a couple of months isn’t going to mean poo poo to overall long-term growth (in your case, probably 25-30 years). Thanks for the responses. I think that bolded part is the key point here. Also my employer will stop matching if I front load... so it would be more complex action of front loading only a little bit then averaging out the rest of the year. So I'm just setting the contribution % to the same for the rest of the year to hit the 19k limit. With that said, how do I ensure the 19k limit is reached exactly? What if in the last pay period the % is set so that it will go over 19k slightly? Will Accounting adjust it to hit 19k exactly? I'll ask HR just curious how ya'll do it.
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Jul 14, 2019 16:21
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My employer has the option for "after-tax spillover" where any contributions in excess of the limit are taxed as regular income and presumably taxed upon withdrawal too since they aren't tax-advantaged. They don't do matching true-up so this is a way for employees to get the full matching even if they go slightly over the contribution limit. I'm not sure if you can withdraw the spillover amount without penalty. You could also up your contribution percentage for the last paycheck or two of the year to get as close to the limit as possible.
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Jul 14, 2019 16:47
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So the scuttlebutt on Wall Street is that Jeffrey Epstein probably blackmailed other wealthy sex predators into investing with his "firm", and that his money management business probably consisted of "smart goon investing 101":quote:So what did Epstein do with the money he did have under his management, setting aside the questions of how he got it and how much he had? One hedge-fund manager speculates that Epstein could have just put the client money in an S&P 500 index fund, perhaps with a tax dodge thrown in. “I put in $100 million, I get the S&P 500 minus some fees,” he says, speaking of a theoretical client’s experience. Over the past few decades, the client would have “made a shitload” — as would Epstein. A structure like that wouldn’t have required trading desks or analysts or complex regulatory disclosures.
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Jul 15, 2019 23:17
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Sadly that would mean that Epstein was actually a more responsible hedge fund manager than most.
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Jul 15, 2019 23:40
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Ur Getting Fatter posted:Sadly that would mean that Epstein was actually a more responsible hedge fund manager than most. the last thing a pedo/sex trafficker needs is an SEC investigation
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Jul 16, 2019 01:04
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hes both a pedo and an index funds guy, whats his username
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Jul 16, 2019 01:28
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He is a smart guy. He was teaching high school physics and later was hired at Bear Stearns all without any college degree or any credentials whatsoever.
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Jul 16, 2019 02:15
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Mu Zeta posted:He is a smart guy. He was teaching high school physics and later was hired at Bear Stearns all without any college degree or any credentials whatsoever. That’s probably because he was good at finding other monsters and bending them, but smarts are smarts I guess.
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Jul 16, 2019 03:04
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Anyone here dealing with an inherited IRA? My dad recently passed and named my sister and I as beneficiaries on his IRA with Primerica. I'm already in the process of moving that out of Primerica and in to inherited IRAs at Vanguard for both my sister and I. From what I can tell, since my dad was younger than 70.5 and not at a point where he had to take RMDs yet, I can either take out the money now in lump sum (not an option I'm pursuing), take it out over a period of 5 years (also no pursuing this option), or start taking RMDs next year based on my life expectancy. Since I'm not anywhere close to retirement age yet, the RMDs start out pretty small for the first 10 years or so. My initial thought was to start taking these RMDs sometime early in the year, set aside the 32% I will need for federal income tax, and use the left over amount to jump start my Roth IRA contributions for the year. Eventually when the RMDs exceed my Roth contributions, then put the rest into a taxable brokerage account. I plan on meeting with a financial advisor of my own to go over some other options because I'm almost to the point where I can't contribute to a Roth, so I'll have to either look into backdoor conversions, or just leave it all in taxable accounts.
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Jul 16, 2019 13:29
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Eyes Only posted:One complication to be aware of is whether you're going to stay the whole year at your employer. Can't get the true up if you switch firms. Surprisingly the organization has been pushing out a ton of newsletters and conference calls designed to help people save more and retire. I have attended a few of the live sessions and they have been informative if a little basic for this crowd.
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Jul 16, 2019 13:35
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DJCobol posted:Anyone here dealing with an inherited IRA? My dad recently passed and named my sister and I as beneficiaries on his IRA with Primerica. I'm already in the process of moving that out of Primerica and in to inherited IRAs at Vanguard for both my sister and I.
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Jul 16, 2019 13:41
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I'm changing jobs and based on some quick calculations it may put our AGI (married filing jointly) over the limit for Roth IRA contributions for 2019. So far this year we have both been contributing monthly on course to max. Is this easy to fix at tax time if in fact it turns out we overcontributed? Can we then hopefully put them back in through a backdoor, since contributions are OK through April? Would it help at all to stop contributing now if I can determine we are likely to hit a cap?
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Jul 16, 2019 13:50
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Sobriquet posted:I'm changing jobs and based on some quick calculations it may put our AGI (married filing jointly) over the limit for Roth IRA contributions for 2019. So far this year we have both been contributing monthly on course to max. Is this easy to fix at tax time if in fact it turns out we overcontributed? Can we then hopefully put them back in through a backdoor, since contributions are OK through April? Would it help at all to stop contributing now if I can determine we are likely to hit a cap? Completely ineligible or just into the phase out range? If you're flirting with the phaeout range and you don't have any existing deductible Traditional IRA balances, I would just start backdoor contributions right now. If you're likely fully ineligible, you'll have to recharacterize all the previous contributions you made this year.
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Jul 16, 2019 18:27
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Hoodwinker posted:If you invest your money and it doesn't pan out, then it really didn't matter what you did with your money because we're all eating dirt and trading bullets for handjobs in the wasteland. If you don't invest your money and it doesn't pan out, then you're eating cat food in a ground floor studio apartment below an aspiring DJ. There is the other option that the US stock market ends up in a lost decade (or two) like Japan's Nikkei index. The Nikkei is still lower than it's all time high in 1991, but Japan itself is fine. If that was the US, you would have a whole bunch of people pouring money into 401ks, and IRAs, and essentially have not much in the way of real gains when it came time for retirement.
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Jul 16, 2019 20:58
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Bird in a Blender posted:There is the other option that the US stock market ends up in a lost decade (or two) like Japan's Nikkei index. The Nikkei is still lower than it's all time high in 1991, but Japan itself is fine. If that was the US, you would have a whole bunch of people pouring money into 401ks, and IRAs, and essentially have not much in the way of real gains when it came time for retirement. Anything besides equities doesn't have the ability for sustainable growth and should not be entertained for any kind of long-term gains. If your interest is in capital preservation, then you look at bonds. But if the apocalypse comes, it didn't matter if you dumped all your money in gold or crypto instead because we're the same flavor of hosed.
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Jul 16, 2019 23:04
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Bird in a Blender posted:There is the other option that the US stock market ends up in a lost decade (or two) like Japan's Nikkei index. The Nikkei is still lower than it's all time high in 1991, but Japan itself is fine. If that was the US, you would have a whole bunch of people pouring money into 401ks, and IRAs, and essentially have not much in the way of real gains when it came time for retirement. If the Nikkei was a flat line straight across from 1991 until now, you would be right, but it's not. There's been 2 crashes in between during which it dropped to half the value that it is now. If someone was investing monthly or weekly from 1991 until now, then the money they invested in 1991 may not have had a return, but it also doesn't have significant losses. Meanwhile, the money they invested in the mid-90's and after 2008 has returned a lot. And assuming someone was 30 in 1991, they would be 58 now, which means they could still have another 5+ years for the Nikkei to potentially go to record highs and generate even higher returns on what would already likely be a sizeable chunk of money. I don't know enough about the Japanese economy to talk about the annualized returns you would've gotten relative to the US total stock market index, but the principle clearly stands in either case. Steadily and consistently investing in broad indexes over a period of decades works out over the long run. Volkerball fucked around with this message at 00:03 on Jul 17, 2019 |
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Jul 16, 2019 23:51
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There is a calculator out there for this, and it turns out that, even including reinvested dividends, between 1991 to now you'd have a negative real return is USD, though it shows a positive (0.7%) annualized return in Yen, which I assume is related to changing exchange rates. So it's entirely possible that relying on just one country's economy to fuel your retirement may not work, though there are very clear structural differences between the US and Japan, but who knows what the future holds. https://dqydj.com/nikkei-return-calculator-dividend-reinvestment/ Chu020 fucked around with this message at 00:30 on Jul 17, 2019 |
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Jul 17, 2019 00:28
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Bird in a Blender posted:There is the other option that the US stock market ends up in a lost decade (or two) like Japan's Nikkei index. The Nikkei is still lower than it's all time high in 1991, but Japan itself is fine. If that was the US, you would have a whole bunch of people pouring money into 401ks, and IRAs, and essentially have not much in the way of real gains when it came time for retirement. Japan has also gone through deflation. A stock market treading water while the economy remains on the cheap is really unique and tends to break our investment brain.
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Jul 17, 2019 00:39
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Chu020 posted:There is a calculator out there for this, and it turns out that, even including reinvested dividends, between 1991 to now you'd have a negative real return is USD, though it shows a positive (0.7%) annualized return in Yen, which I assume is related to changing exchange rates. So it's entirely possible that relying on just one country's economy to fuel your retirement may not work, though there are very clear structural differences between the US and Japan, but who knows what the future holds. I have no idea how this actually works out, but wouldn't a country's broader market (i.e. as captured by a broad market index) normally heavily correlate to increases or decreases in the cost of living when we're talking about decades of time? At least in a marginally well functioning economy (not talking about fundamentally broken ones with hyperinflation). How does this correlate to what actually matters for an individual: the ability to retire.
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Jul 17, 2019 00:41
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Ancillary Character posted:Completely ineligible or just into the phase out range? If you're flirting with the phaeout range and you don't have any existing deductible Traditional IRA balances, I would just start backdoor contributions right now. If you're likely fully ineligible, you'll have to recharacterize all the previous contributions you made this year. The phase out is only a range of like $10k so it’s hard to tell and it might come down to the difference in a bonus or something. I’ll do some more careful math after my first new paycheck and then look into it again. I guess from there it would mean changing my remaining contributions to non-deductible trad, recharacterizing my Roth contributions so far to non-deductible trad, and then recharacterizing it all back to Roth.
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Jul 17, 2019 01:38
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Yea I was taking a pretty superficial view of what happened in Japan. I don’t really know how things would be here is the Dow was essentially flat for 20 years or something. Pretty sure Japan has a much more robust pension system for retirees too. The crazy thing is that investing in a 401k for retirement is a very recent thing. Like 401ks started in the 80s. So we’re just now seeing people retire who worked their whole career putting money into a 401k and not a pension plan.
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Jul 17, 2019 01:42
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It's not just Japan. Europe has been mostly stagnant the past decade too. Vanguard target date funds are p.good but 100% VTSAX is not something I'd count on for the long term. Vanguards own research estimates US significantly underperforming Intl for the next 10 years.
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Jul 17, 2019 06:34
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Sobriquet posted:... and then recharacterizing it all back to Roth. No, convert it back to Roth. There is a difference.
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Jul 17, 2019 06:53
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Anarkii posted:It's not just Japan. Europe has been mostly stagnant the past decade too. Vanguard target date funds are p.good but 100% VTSAX is not something I'd count on for the long term. Vanguards own research estimates US significantly underperforming Intl for the next 10 years. This whitepaper should also be in the OP: https://www.vanguard.com/pdf/ISGGEB.pdf
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Jul 17, 2019 13:21
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I generally like this podcast (financial symmetry) and thought the lastest one on sequence of returns was really interesting. They generally discuss stuff that most of us know about on the podcast but they have what we think is the right approach. On the sequencing I found it really interesting when considering what impact returns have on your funds depending on when the market is good or bad in your retirement. It is basically explaining how Monte Carlo simulation works (one of the reasons I really like personal capital since that is part of the features of the site) but still good I think. Anyways give it a listen if you would like (they have a bunch of other good ones as well). https://www.financialsymmetry.com/sequence-of-returns-risk-ep-89/
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Jul 18, 2019 17:32
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Trying to be more proactive with my retirement portfolio, I just got a new job a few months ago and they have 401k with matching, I was super busy at the time so just dumped money into a few different available investments. I've got a Roth and mutual funds that I need to look at after the 401k but want to deal with this now since it's on my mind (and the other stuff will take longer to deal with because I need to call support to get password reset etc). Currently 34, my savings are poo poo and I'll probably be working until the day I die, thankfully I'm in IT so sitting in a chair in front of a computer all day is doable basically forever anyway.... Company goes through Charles Schwab and the following funds/investments are available: quote:Asset Allocation (all are .45% expense ratio) I know folks say Vanguards are the way to go, but figured I'd throw everything else in as well. I'm not averse to some risk, especially since my current retirement savings are pretty limited (though I have 401k from my last job that I need to roll into this one hopefully I didn't miss the cutoff period...) MF_James fucked around with this message at 19:50 on Jul 18, 2019 |
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Jul 18, 2019 18:24
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Set and forget option would be one of the dated funds in the top selection, like 2045 or 2050 Also post the expense ratios as well
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Jul 18, 2019 18:37
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air- posted:Set and forget option would be one of the dated funds in the top selection, like 2045 or 2050 Added to the original post. I don't mind having to jump in and change some things around, but also I can't be excessively active especially if it involves a lot of other homework.
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Jul 18, 2019 19:50
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VINIX - Vanguard Institutional Index 60% VBTIX - Vanguard Total Bond Market Index 10% VTSNX - Vanguard Total Intl Stock Index 30% That's roughly what you get with the target date funds but at a fraction of the expense ratio. You can just rebalance once a year and it's like 5 minutes of work. You can start increasing the Bond percentage when you're 50. Your 401k is great.
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Jul 18, 2019 20:02
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Mu Zeta posted:VINIX - Vanguard Institutional Index 60% Yeah I'm lucky, the company I was hired by got bought out by a fairly large enterprise but has mostly been left alone, so getting the benefits of a large company (good insurance, 401k etc) without as much of the hassle. Thanks for the assistance, I'm sure I will be back later for help with my other investments... MF_James fucked around with this message at 21:35 on Jul 18, 2019 |
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Jul 18, 2019 20:40
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MF_James posted:Currently 34, my savings are poo poo and I'll probably be working until the day I die, thankfully I'm in IT so sitting in a chair in front of a computer all day is doable basically forever anyway.... Be careful with this line of thought. Ageism is real and skill requirements will probably continue to change. A lot of people don't so much retire as can't find another job at 50+. That's what I'm saving for more than anything; because it's outside my control.
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Jul 18, 2019 23:05
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This is probably a stupid question, but if I’m over the Roth IRA threshold for contributions, I know we can do a back door Roth, but why would I do that instead of just putting that and more into a Vanguard taxable brokerage account and dumping it all into VTI?
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Jul 18, 2019 23:13
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Xguard86 posted:Be careful with this line of thought. Ageism is real and skill requirements will probably continue to change. A lot of people don't so much retire as can't find another job at 50+. My mother in law was a high earner until she hit 50ish and then she hasn't been able to get anywhere bear as good of a job since then. She's very qualified on paper but she made way more in her 30's than her 50's.
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Jul 18, 2019 23:17
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Xguard86 posted:Be careful with this line of thought. Ageism is real and skill requirements will probably continue to change. A lot of people don't so much retire as can't find another job at 50+. Also I have recently discovered that sitting in a chair all day every day is super bad for your health.
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Jul 18, 2019 23:29
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Cacafuego posted:This is probably a stupid question, but if I’m over the Roth IRA threshold for contributions, I know we can do a back door Roth, but why would I do that instead of just putting that and more into a Vanguard taxable brokerage account and dumping it all into VTI? Dividends and capital gains aren’t taxed in a Roth IRA.
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Jul 18, 2019 23:29
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Xguard86 posted:Be careful with this line of thought. Ageism is real and skill requirements will probably continue to change. A lot of people don't so much retire as can't find another job at 50+. I just saw this happen to a senior guy on my team; he's 54 and got laid off after over 30 years working at the same company. He has no idea how to even look for a job. I'm 34 and am planning to max my contributions to both 401k and IRA every year for the rest of my career so that I'll (probably) be OK when I'm in my 50s and my employer decides I cost too much.
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Jul 18, 2019 23:31
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Guinness posted:Dividends and capital gains aren’t taxed in a Roth IRA. Ahh, ok, thank you for the clarification. I knew it was a dumb question! Edit: We file taxes married, jointly and will likely be over the MAGI Roth cutoff so I'm trying to figure this out now. My wife has rolled over 401ks from previous employers into a rollover IRA. Will this affect backdoor Roth in any way? Cacafuego fucked around with this message at 23:54 on Jul 18, 2019 |
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Jul 18, 2019 23:40
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Cacafuego posted:Ahh, ok, thank you for the clarification. I knew it was a dumb question! Pro Rata rule screws this up, depending on how much is in there. It basically means you'll owe the taxes on the portion of gains/dividends that comes from the rollover IRA when you convert to Roth. You can't separate out the yearly contribution separately; it all gets counted together.
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Jul 19, 2019 01:13
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