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Purple Prince posted:What proportion of your portfolio would you consider investing in exotics like art? If you want to buy some art from students then do so. It's not an investment, and that money will not generate a return, but if you like art and would like to have some nice art to display there's nothing wrong with that! Not everything needs to be an investment. Enjoy your hobbies!
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Aug 19, 2019 22:55
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This person is just confusing illiquidity with value.
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Aug 19, 2019 22:59
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You're all the greater fools for even having this argument. Someone tell me when bitcoin bottoms out so I can spend my 401k on it thanks.
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Aug 19, 2019 23:19
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Eyes Only posted:Is this assumption even true? The current dividend+buyback yield is close to 5%. In 1955 the dividend yield was under 4% (buybacks unknown). Well, by "olden days" I meant like the 1800s, and dividend yield isn't just a function of how many companies do dividends; particularly since yield is a function of stock price, so when stock prices rise, yields drop. That said, with a long-term chart you can see the trend:  If you smoothed out the spikes you'd see a general downward trend over the last century; and you can see that since the 1980s, dividend yield has dropped even over long periods of upward markets. The huge spikes on the chart are an artifact of stock market crashes, where calculated yield skyrockets because the entire value of the S&P drops while companies haven't yet canceled their next scheduled dividend payment. e. I haven't included buyback "yield" here because it's impossible to separate the rise in the stock price caused by a buyback from market participants bidding up a stock on the basis that a buyback improves its situation, or for other factors. Further, while it ostensibly represents returning value to investors through concentration of the outstanding shares, companies can also do things like sell bonds that in theory dilute share value but isn't represented on a chart only showing buyback yields. I suspect that a deeper analysis of how company's disposition of cash and debt affect price is needed. Leperflesh fucked around with this message at 23:33 on Aug 19, 2019 |
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Aug 19, 2019 23:30
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Yo why did they call it black tuesday/Monday when being in the black is good and being in the red is bad???
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Aug 20, 2019 03:04
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It's a good thing companies never, ever change their dividend rates, either, or else they might change their productivity!
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Aug 20, 2019 13:55
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Vox Nihili posted:If you want to buy some art from students then do so. It's not an investment, and that money will not generate a return, but if you like art and would like to have some nice art to display there's nothing wrong with that! Not everything needs to be an investment. Enjoy your hobbies! Yeah this is what my curator friends said too, so all good. All it affects from my budget perspective is whether the cash comes from savings / investment or long term discretionary spending after all. Just means I buy art more slowly and it competes with other things like new clothes and refurbishing the gooncave. Cheers all for the interesting read on inherent vs ascribed value and collectibles / exotics as an asset class though.
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Aug 20, 2019 16:29
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just buy art sculptures made of gold and then its a REAL investment
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Aug 21, 2019 02:18
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Animal posted:just buy art sculptures made of gold and then its a REAL investment It’s not a Real art investment unless it is actually land.
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Aug 21, 2019 03:07
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crazypeltast52 posted:It’s not a Real art investment unless it is actually land. Like Mt Rushmore?
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Aug 21, 2019 04:29
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Hey stupid question: 401(k) contributions: for the max, do they count for the tax year that they are taken out of your paycheck, or the year they are deposited in to your account? I'm set to max my 401(k) for 2019, but my last paycheck from my previous job in 2018 was 12/31, so while the contribution came out in 2018, it didn't hit my 401(k) until a few days in to 2019. I assume this is 2018 money, but I'd like to know for sure.
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Aug 21, 2019 12:28
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2018 money
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Aug 21, 2019 14:16
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I'm doing okay enough with going beyond my and my wife's 401k maximums and investing post-tax dollars in a regular brokerage account with a four-fund portfolio. Our savings account has a solid emergency fund. We've got around $280k in that brokerage account. It's mostly intended for retirement with occasional minor vacations (like maybe $1500/$2000 of stocks sold to defray costs). When should I start thinking about some kind of tax advantaged setup for the very long-term? I'm in the process of converting our existing traditional IRAs to Roth IRAs, around $5k a year factoring in setting aside for taxes, so that'll help, but I'm completely clueless about how to work at tax advantaged investing. I'm 37, my wife is 33. We both intend to retire in our mid to late 60s if all goes well. The house will be paid off in 19 years at this rate.
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Aug 23, 2019 14:26
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MJP posted:I'm doing okay enough with going beyond my and my wife's 401k maximums and investing post-tax dollars in a regular brokerage account with a four-fund portfolio. Our savings account has a solid emergency fund. We've got around $280k in that brokerage account. It's mostly intended for retirement with occasional minor vacations (like maybe $1500/$2000 of stocks sold to defray costs). 1. 401k 2. IRA 3. HSA (might not be available to you) If you're already maxing all of those, congratulations, you've completed your tax-advantaged space. If your 401k allows you to do in-service conversions of after-tax (not Roth) contributions, you can fill in some more space that way, but having access to the mega backdoor Roth is uncommon.
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Aug 23, 2019 14:48
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Generally bonds in a sheltered account, International can be pretty good in a taxable account. Is that the type of stuff you are talking about?
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Aug 23, 2019 15:21
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Hoodwinker posted:If you're already maxing all of those, congratulations, you've completed your tax-advantaged space. If your 401k allows you to do in-service conversions of after-tax (not Roth) contributions, you can fill in some more space that way, but having access to the mega backdoor Roth is uncommon. Can you explain what the Health Savings Account does?
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Aug 24, 2019 02:50
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obi_ant posted:Can you explain what the Health Savings Account does?
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Aug 24, 2019 03:28
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I love my HSA. We are pregnant and our due date is in January so we will easily reach 2019 and 2020’s out of pocket maximum for our health plan. It’s nice paying for all of that with pre-tax money from the HSA and thus lowering our taxable income substantially. After the baby is born I plan to continue maxing out the HSA as long as I can because in retirement you can expect a big chunk of your money to go into health related expenses. The best way to manage your HSA is to keep your family’s yearly out of pocket maximum available liquid in your HSA bank as a medical emergency fund, and then invest the rest of your funds just like you would an IRA. If you are rich and can afford to pay for all your medical expenses out of pocket, then just invest all of your HSA and save it for retirement. Its an awesome benefit to have but simultaneously sad that our healthcare system is so hosed up that we have to play these games. Animal fucked around with this message at 05:06 on Aug 24, 2019 |
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Aug 24, 2019 05:03
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MJP posted:I'm doing okay I'm going to super pretend that I didn't just discover your SA account here; hey friend! If your 401(k) allows IRA rollovers, see if you can move your trad. IRA balance over so that you can start doing backdoor roth IRA contributions right away. Agreeing that it's pretty uncommon to allow post-tax 401(k) contributions (with in-service conversions to Roth to open up the mega backdoor Roth contribution strat), but it can be done. There's an increased risk of failing your 401k non-discrimination testing if your 401(k) allows this though, so you might get pushback from your Finance/HR team, especially if your company is relatively small/the percentage of IRS-defined HCEs ($120k+ salary) vs NHCEs is higher than normal. Which might be the case if you're in a high COLA/highly-comped field. EDIT: Your 401(k) may re-define HCEs (highly compensated earners) as being the top 20% of earners instead of folks earning over $120k. Your plan docs need to be amended in order to redefine it, so if you're getting pushback due to risk of failing NDT, suggest that they look into redefining HCEs to that for next year, and then revisit.
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Aug 24, 2019 16:30
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Hoodwinker posted:you can get reimbursed for something 30 years ago if you have the receipt to prove it happened, meaning you're actually kind of better off paying out of pocket now and getting reimbursed forever from now if you can swing it. Caveat: you'll need to haul receipts around for 30 years to do this. Some plan administrators allow you to scan/upload/save receipts and they'll track which ones you've reimbursed, but if you change HSA administrator then you're screwed (and you WILL change in 30 years, probably multiple times). That said, when you get old you'll need to use it anyway because your body will inevitably fall apart. Also after age 65 (?) you can use HSA money to pay for certain health insurance premiums, so if by some miracle you don't have actual expenses to use it on then you can put it towards that.
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Aug 26, 2019 15:10
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After age 65 you can also treat it like a normal IRA if you really want to and buy whatever you want, and pay income tax on the amount. I mean we'll all be dead by then anyway so it's more of a hypothetical option
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Aug 26, 2019 15:23
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Droo posted:After age 65 you can also treat it like a normal IRA if you really want to and buy whatever you want, and pay income tax on the amount. Ah, I forgot that the 20% penalty disappeared. I thought it still applied to non-qualified distributions even after 65.
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Aug 26, 2019 15:44
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This week I started a job where the 401k plan allows me to do the mega backdoor roth thing. Now, I might have the entirely wrong idea about this but, if I want to really minmax things to contribute as much as possible by the end of the year, is it possible to do something weird like specify my w-4 with witholding intentionally too low, and compensate by having my wife increase the witholding from her pay? I imagine that if I am ok at estimating this, the net effect in terms of federal taxes witheld for our married-filing-jointly household should be neutral, while at the same time allowing me to cram in more after-tax contributions? I feel like I may be missing something here? Maybe I'm just missing the realization that this is a bunch of effort and risking messing up basically correctly setup things, chasing a not very big reward? Or that this is simply forbidden for some reason I haven't yet understood?
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Aug 28, 2019 03:01
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waloo posted:This week I started a job where the 401k plan allows me to do the mega backdoor roth thing. Now, I might have the entirely wrong idea about this but, if I want to really minmax things to contribute as much as possible by the end of the year, is it possible to do something weird like specify my w-4 with witholding intentionally too low, and compensate by having my wife increase the witholding from her pay?
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Aug 28, 2019 03:09
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Why does the w4 withholding matter for the mega-backdor thing? I just specified how much to put into the 401k and it didn't seem to matter what the w4 was.
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Aug 28, 2019 03:15
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Pardot posted:Why does the w4 withholding matter for the mega-backdor thing? I just specified how much to put into the 401k and it didn't seem to matter what the w4 was.
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Aug 28, 2019 03:23
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Hoodwinker posted:This works, yes. Your tax burden at the end of the year is the combination of both you and your wife's tax burdens. If you know how to calculate your taxes (and it's pretty trivial if you have consistent paychecks from salary jobs all year), this can work. Thanks! I am probably going to be making an attempt of this in that case. Pardot posted:Why does the w4 withholding matter for the mega-backdor thing? I just specified how much to put into the 401k and it didn't seem to matter what the w4 was. Having not yet actually figured out where/how to specify those numbers, maybe this is the case? I have assumed it matters because if I am getting paid 100$ every week, and 30$ is being withheld, then only 70$ is available to me to contribute as an after-tax contribution, and that the W-4 elections would take priority over specifying a "contribute as much after-tax as possible" directive for the 401k contributions. edit: yeah basically what Hoodwinker said.
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Aug 28, 2019 03:23
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I have done some extreme min-maxing similar to what you're thinking. My advice, monitor your paystub extra closely. Your actions cause assumptions held as always true ("of course someone will always have $200 per pay period to cover insurance!") To no longer be true. Payroll got to know me on a first name basis but we figured it out together  I was the first one to pioneer mega backdoor Roth 401k and I dealt with those folks a lot.
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Aug 28, 2019 03:31
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Ah okay, that all makes sense. Thanks!
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Aug 28, 2019 03:35
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Daeus posted:I have done some extreme min-maxing similar to what you're thinking. My advice, monitor your paystub extra closely. Your actions cause assumptions held as always true ("of course someone will always have $200 per pay period to cover insurance!") To no longer be true. Payroll got to know me on a first name basis but we figured it out together
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Aug 28, 2019 03:53
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I don't think there's any penalty for underwithholding if your total withheld is at least 100% of your previous year's income tax liability, so if your total income has increased as well and you're prepared for a steep bill, you may be safe regardless.
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Aug 28, 2019 17:31
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Ralith posted:I don't think there's any penalty for underwithholding if your total withheld is at least 100% of your previous year's income tax liability, so if your total income has increased as well and you're prepared for a steep bill, you may be safe regardless.
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Aug 28, 2019 17:32
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Hoodwinker posted:100%+ of prior year or 90%+ of current year. The person’s tax payments were at least 90 percent of the tax liability for 2018 or The person’s tax payments were at least 100 percent of the prior year’s tax liability, in this case from 2017. However, the 100 percent threshold is increased to 110 percent if a taxpayer’s adjusted gross income is more than $150,000, or $75,000 if married and filing a separate return.  Not the rules, but a press release regarding it for last year: https://www.irs.gov/newsroom/irs-waives-penalty-for-many-whose-tax-withholding-and-estimated-tax-payments-fell-short-in-2018 You gave me a moment of panic that it was an "and" scenario, not an "or" as I am very much relying on the 110% rule this year. As I recall I'm not required to do quarterlies this year, but if I were, does the 110% rule bypass that need? I have two big chunks of untaxed income from disqualifying ESPP sales, but I also will meet the 110% test regardless.
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Aug 28, 2019 17:40
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Not sure if this is the right thread, but does anyone have any resources or guidance on remortgaging to invest, as vague as that sounds Basically I'm in two minds as to whether I should continue to remortgage every 2 years and reduce my term each time (what I currently do), or max my term as much as possible to reduce my monthly, and otherwise invest that money I ask this because I'm based in the UK, and at first glance if I can fix my rate at what are (almost) historically the lowest they've ever been (base rate is currently 0.75%, so to remortgage now I'd be around 1.3-1.5%), it would seem a reasonable thing to do? I'm sure this is A Thing but I can't narrow down what I should be looking for exactly
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Sep 2, 2019 16:35
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Over here it's called a cash out refinance and I did it once. Probably not the best thing to do over and over again unless rates continue to drop. I would max out your term since it's a longer timeline for your returns to beat the low interest rate.
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Sep 2, 2019 19:00
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kcer posted:Not sure if this is the right thread, but does anyone have any resources or guidance on remortgaging to invest, as vague as that sounds I went from a fixed rate at something like 2,5% to a variable rate at ~ 0,4% in order to avoid having to pay for a new mortgage every time the rate drops. My new mortgage adjusts every 6 months. This is in Denmark. Definitely go for as long of a repayment period as they'll allow, since you should be able to beat the returns
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Sep 3, 2019 13:28
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Any after-tax 401k / tax experts here? This was the first year my company offered after-tax contributions to my 401k. I’ve been rolling them over periodically to my Roth IRA with Vanguard. I just looked and I’m over on contributions for Calendar Year 2019, due to a employer match true up from CY2018 that happened in Jan of this year ($1300). I talked to my payroll department and they said that since it was for CY2018, it doesn’t count against contributions for 2019. Is this true? I then asked them what happens when they catch me up in Jan of next year, because I will still be over for this year. They said that they will roll it back in January. Is this possible? Also, complicating it, I’ll have already moved the money from Fidelity to Vanguard so it won’t be there to roll back. Will they just take it back from my salary or something else?
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Sep 3, 2019 14:18
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Thanks! Good to know I wasn't missing something blindingly obvious and potentially crazy.
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Sep 3, 2019 16:59
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Got an email from Citi today saying they were changing their Accelerate Savings rate from 2.36% to 2.21%, which is a sight better than the 1.9% or whatever that Ally dropped to: Edit: this is for me in Texas Citi posted:As of 9/3/19, the Citi Accelerate Savings account variable rate will be 2.21% Annual Percentage Yield¹ (APY). Feel confident knowing that you are earning 11X the national average² on your savings. Your Citi Accelerate Savings account gives you access to these great benefits: SpelledBackwards fucked around with this message at 03:23 on Sep 4, 2019 |
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Sep 4, 2019 03:00
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0.04% in California what the gently caress
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