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Ancillary Character posted:$19k limit is aggregate across all your 401ks, so if you max out with your W2 job, you can only utilize the employer limits on your solo 401k (~$4k), there's a worksheet to calculate and it's closer to 20% most of the time beyond a certain threshold that I can't recall. Ah yeah, that’s a bummer but makes sense. Guess I need to make more money. 
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Sep 30, 2019 17:23
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totalnewbie posted:Let's say it costs 125k to start this vending machine thing. My numbers were actually almost exactly the same, although the margin per unit is quite a bit higher...but the cost for licenses/renting space/etc are also destructively high. It seriously is a hell of a payoff for someone who has some extra free cash about and some places they could put the things for free...the thing that really killed it for me (in addition to the 401k taxes/penalties) was having to pay whoever to put the thing on their property. anyway I proposed to my wife that she instead take ten grand out of some mutual fund and invest it however the hell she wants and see if she can beat my "generic middle class retirement portfolio" returns. She seemed to be on board with this and hopefully this will kill off any lingering interest in building a vending machine empire. She also wants to throw a couple grand at a friend of hers who is re-starting her baking company, which I'm actually on board with...this friend did really well with it before a truckload of kids came along, and is an absolutely brilliant baker, so that's kind of a cool and inexpensive non-stock investment opportunity. Look forward to future me posting about the ongoing dramatic saga between my wife and her ex-friend and a $1500 small claims court case revolving around spoiled cakes.
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Sep 30, 2019 20:15
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I could get behind that so long as this isn't one of those places that's addicted to fondant.
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Sep 30, 2019 20:36
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Who knows, maybe someday you can put an ice cream vending machine in your friend's bakery.
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Sep 30, 2019 20:37
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Yeah getting involved with that bakery sounds like a bad idea just cause you're mixing personal and business.
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Sep 30, 2019 20:37
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bewbies posted:My numbers were actually almost exactly the same, although the margin per unit is quite a bit higher...but the cost for licenses/renting space/etc are also destructively high. It seriously is a hell of a payoff for someone who has some extra free cash about and some places they could put the things for free...the thing that really killed it for me (in addition to the 401k taxes/penalties) was having to pay whoever to put the thing on their property.  https://forums.somethingawful.com/showthread.php?threadid=3878671If you already have space, like say in an outdoor mall where it's already hot out, it seems like icecream vending could print money. Otherwise, lol nope.
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Sep 30, 2019 20:37
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Beer4TheBeerGod posted:I could get behind that so long as this isn't one of those places that's addicted to fondant. FUNNY YOU SAY THAT good thing rich golf moms around here love beautiful, flavorless cakes
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Sep 30, 2019 20:39
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bewbies posted:My numbers were actually almost exactly the same, although the margin per unit is quite a bit higher...but the cost for licenses/renting space/etc are also destructively high. It seriously is a hell of a payoff for someone who has some extra free cash about and some places they could put the things for free...the thing that really killed it for me (in addition to the 401k taxes/penalties) was having to pay whoever to put the thing on their property. Here's the other question I've got - why the hell does it cost 100+ grand to start plopping down vending machines? How many loving vending machines does your wife want to buy?! Buy one for 4 grand and stick it where you think is best and see how it goes. Also, does she or her family have any history of bipolar disease? I'm not an expert and just some dude on the internet but this sounds similar to mania.
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Sep 30, 2019 21:18
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Holy poo poo that escalated quickly. His wife is a solid earner with good savings habits that has a less than stellar investment idea, that doesn't make her bipolar jfc.
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Sep 30, 2019 22:04
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I'm not trying to make a medical diagnosis, but mental illness is real and people who experience mania can exhibit this type of irrational behavior. I certainly hope it's just that she just potentially belongs in the BWM thread but I also don't think it's wrong to suggest that if someone has a (family) history of mental illness that they consider that possibility. People often don't consider the possibility of mental illness until it becomes very apparent, whether it's because they don't want to believe it, it doesn't occur to them, or whatever, but by that point they've probably already caused considerable harm in some way. If he comes back and says, "Yeah, no, it's definitely not bipolar and just the way my wife is" then that's fine. That's actually better than fine, because the alternative is that she has a disease that she has to deal with, which is a much more difficult thing than convincing her that pulling 100k out of their 401k to buy a bunch of ice cream vending machines is a bad idea.
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Sep 30, 2019 22:18
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H110Hawk posted:
There are certain places that close up shop during cold months. Ralph's Italian Ice in New York does that, I believe, but its a full on store rather than just a machine. It is also really drat delicious.
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Sep 30, 2019 22:21
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totalnewbie posted:Here's the other question I've got - why the hell does it cost 100+ grand to start plopping down vending machines? How many loving vending machines does your wife want to buy?! I believe the problem is that you only start making money when you can buy enough product to get it in bulk and refill all the machines at a low cost, and one vending machine is not going to allow that. I'd love to know more of the wife's logistics of this plan. I'm just trying to comprehend how it would even work with ice cream, ordering it, storing it, restocking the machines, not having the stuff melt, all with a full time job and kids. Like, you'd certainly be spending your entire weekend trying to break even on the thing
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Sep 30, 2019 22:28
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How much does a refrigerated truck cost? Or 100 yeti coolers and a used uhaul?
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Sep 30, 2019 22:41
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totalnewbie posted:Here's the other question I've got - why the hell does it cost 100+ grand to start plopping down vending machines? How many loving vending machines does your wife want to buy?! The ones she was interested in are soft-serve/self-serve, they cost $8k or so per unit, plus delivery, plus licenses, plus space rental, plus some sort of franchise fee. If we just did standalone instead of the franchise, the units cost about the same or slightly more, but we'd have to figure out the entire operation on our own, which...blah. She wanted to start with 6 units. I *think* this is similar to what she was considering: https://www.youtube.com/watch?v=v0Zh7uA3aRU. If anyone is actually interested I can ask her for more detail. She is definitely not bipolar, she just wants to retire young. As far as logistics, the machines are pretty self sufficient, they can serve several hundred customers without needing a refill. The most attractive thing about this specific kind of machine is that you don't need a reefer truck to do your supply runs...the ingredients aren't frozen (the machine does the freezing on its own). That said a big element of my lack of interest was the prospect of having to spend some portion of my weekend going around refilling vending machines. We never really got that far along on the plan.
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Sep 30, 2019 22:54
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y'all have 800 grand at somewhere around 37-39 so i think you are gonna be just fine to retire early assuming you continue to grow earnings to keep up with inflation and you maintain good spending discipline what's your retire early number? have you talked about that together? what does retirement look like for one or the other or both of you?
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Sep 30, 2019 23:32
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KYOON GRIFFEY JR posted:y'all have 800 grand at somewhere around 37-39 so i think you are gonna be just fine to retire early This. Franchises are terrible investments. With Franchises you are buying a Job where corporate HQ has total control. Like with subway, corporate profits were down so corporate squeezed the franchise owners by forcing them to run more specials while still franchisees still paid the same amount for product from corporate. grenada fucked around with this message at 11:51 on Oct 1, 2019 |
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Oct 1, 2019 11:48
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laxbro posted:You should be able to split contributions between Traditional/Roth for your TSP if you want to not go all in for Roth. Ok now I have a question. I’m active duty military, 13 years in-so in 7 years I’ll retire and get a new job. I’ll be 44 at retirement. I’m currently doing the Roth TSP and a vanguard Roth IRA. I never bothered doing much with TSP until the last 1-2 years and I max it out now ($19k a year). The Roth IRA I put about 3k/year. My current taxable income is $80k/year. When I’m at 20 years it should be about $96k/year. Once I retire my taxable income will be 48k from retirement, plus whatever job I end up getting. For my Roth IRA it looks like I’ve got about $36k. For my TSP, I’m at $35k. I’ve got them both in lifecycle funds. The TSP is 2040 and the vanguard Roth IRA is 2050. So, given all the above information-should I stick with Roth TSP? Would I incur any penalties for moving from a Roth to traditional TSP? One benefit I see of switching is I would have more money to put towards the Roth IRA since I’d be using pre-tax money for the TSP, correct? I’m not sure what kind of job I’ll be getting once I retire, but let’s assume I’m making $70k.
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Oct 1, 2019 12:41
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https://twitter.com/charlesschwab/status/1179017134288117760?s=21
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Oct 1, 2019 14:03
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For those of you guys that do individual 401ks, while all of my standard retirement stuff is with Vanguard, it looks like they may not be the best option for an individual 401k? No brokerage option, no admiral shares, no rollovers. Schwab looks like a decent option in that they allow rollovers, allow ETFs, and I have a bank account through them. Sticking with Vanguard for everything is kind of tempting though.
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Oct 1, 2019 14:50
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Residency Evil posted:For those of you guys that do individual 401ks, while all of my standard retirement stuff is with Vanguard, it looks like they may not be the best option for an individual 401k? No brokerage option, no admiral shares, no rollovers. Schwab looks like a decent option in that they allow rollovers, allow ETFs, and I have a bank account through them. Sticking with Vanguard for everything is kind of tempting though. They started allowing Admiral shares late 2018, which I found out like last month, but I haven't gotten around to switching over my target date fund. Still $20/fund service fee if you haven't hit at least Voyager status ($50k in assets) with them. Vanguard also allows Roth contributions if that's important to you and not offered by Schwab.
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Oct 1, 2019 23:43
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Ancillary Character posted:They started allowing Admiral shares late 2018, which I found out like last month, but I haven't gotten around to switching over my target date fund. Still $20/fund service fee if you haven't hit at least Voyager status ($50k in assets) with them. Vanguard also allows Roth contributions if that's important to you and not offered by Schwab. Opened my 401k today. Thanks!
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Oct 2, 2019 01:14
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nwin posted:Ok now I have a question. I think a Roth Tsp makes sense for you since it’s feasible that you’ll earn more in retirement then you are now, since you’ll be locked into such a great pension at 44 and will still have 18 years left to work and save, and possibly earn a second pension from civil service or state/local govt. I wouldn’t worry to much about Roth vs Traditional at this point since future tax rates are an unknown. I usually tell people to do both, to hedge your bets. Just a note, if you did traditional tsp you could contribute the tax savings you get now to max out your Roth. I would also go a bit more aggressive in your tsp, no reason not to do the 2050 find in the tsp .
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Oct 2, 2019 03:16
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So my brother bought some QYLD for his kids (who are both toddlers). His reason was that he wanted some kind of regular income for them. Any general reason why this would be a poor idea? I don't know enough about ETFs that do options trading so I didn't say anything to him one way or another
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Oct 3, 2019 01:15
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DeadFatDuckFat posted:So my brother bought some QYLD for his kids (who are both toddlers). His reason was that he wanted some kind of regular income for them. Any general reason why this would be a poor idea? I don't know enough about ETFs that do options trading so I didn't say anything to him one way or another I mean, it's a high expense ratio fund that is almost certainly going to lag behind the market in general. You say he bought it "for his kids" - in what kind of account? His personal taxable brokerage account? A UGTM/UTMA account in his children's names? If it's the latter, he better be sure he's spending 100% of the accounts on his children directly. If it's the former, why not just invest regularly? People love dividends. It can blind you to other facts such as raw return rate.
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Oct 3, 2019 01:34
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H110Hawk posted:I mean, it's a high expense ratio fund that is almost certainly going to lag behind the market in general. You say he bought it "for his kids" - in what kind of account? His personal taxable brokerage account? A UGTM/UTMA account in his children's names? If it's the latter, he better be sure he's spending 100% of the accounts on his children directly. If it's the former, why not just invest regularly? Yeah, that fat ol expense ratio popped out at me. I'm pretty sure he has UGMA accounts in their name for them. That ETF though, what demographic is buying into that? It looks like its for people who want to play with options but are too scared? DeadFatDuckFat fucked around with this message at 02:19 on Oct 3, 2019 |
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Oct 3, 2019 02:14
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DeadFatDuckFat posted:Yeah, that fat ol expense ratio popped out at me. I'm pretty sure he has UGMA accounts in their name for them. That ETF though, what demographic is buying into that? It looks like its for people who want to play with options but are too scared? It's people who want dividends or think it's awesome that their stock is getting promised out for money.
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Oct 3, 2019 02:41
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Under what conditions, if any, would someone prefer a UGMA/UTMA account over a 529? Seems like the latter is more flexible and has better tax advantages.
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Oct 3, 2019 02:59
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Adhemar posted:Under what conditions, if any, would someone prefer a UGMA/UTMA account over a 529? Seems like the latter is more flexible and has better tax advantages. The former is more flexible for the recipient. They can use it for anything. The later can only be used without penalty for higher education expenses. nelson fucked around with this message at 03:05 on Oct 3, 2019 |
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Oct 3, 2019 03:02
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Adhemar posted:Under what conditions, if any, would someone prefer a UGMA/UTMA account over a 529? Seems like the latter is more flexible and has better tax advantages. For my niece and newphew at least, they already have a lot of money in their 529. My parents saved a lot for me, but I'm a disappointment and didn't go to grad school so a lot of the money got transferred over to them.
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Oct 3, 2019 03:08
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Tax loss harvesting question, mainly to make sure I'm doing it correctly.  1. Verify basis is per tax lot (it is), verify that I am set to not reinvest dividends/cap gains (I'm not.) 2. Sell the red FSPSX, buy FSKAX with it. 3. Don't re-buy the international one until it's been 30 days. 4. Profit? The one question I have is I see the rule for wash sales is 30 days before or after, does that matter if I'm selling the lots I bought <30 days ago as well?
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Oct 3, 2019 21:46
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What's the thoughts on buying an annuity? I'm maxed at my total pretax 401k contribution, income limited from traditional IRA benefits (I'm moving my existing trad IRA to Roth a chunk per year to offset the tax burden), and am contributing as much as I can to my HSA for future medical costs. I already invest $1000/mo in a post tax four fund portfolio for general long term stuff, and my new job is with one of the big financial providers. If I pay $150/mo with an increase of $25/mo every year, it's a good chunk of guaranteed lifetime income if I start taking payments at 65. I don't have kids nor do we plan on having any.
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Oct 4, 2019 18:15
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MJP posted:What's the thoughts on buying an annuity? I'm maxed at my total pretax 401k contribution, income limited from traditional IRA benefits (I'm moving my existing trad IRA to Roth a chunk per year to offset the tax burden), and am contributing as much as I can to my HSA for future medical costs. I already invest $1000/mo in a post tax four fund portfolio for general long term stuff, and my new job is with one of the big financial providers. If I pay $150/mo with an increase of $25/mo every year, it's a good chunk of guaranteed lifetime income if I start taking payments at 65. You're pretty much the use case for a variable annuity in that you've already exhausted nearly all other tax-advantaged savings. I wouldn't go with a fixed annuity because the returns are garbage, but variable annuities will generally have better returns (but incur risk because they can have 0% returns in bad year.) The good thing is that you can't lose your principal contributions to it, just might not make any returns.
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Oct 4, 2019 18:30
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zharmad posted:You're pretty much the use case for a variable annuity in that you've already exhausted nearly all other tax-advantaged savings. I wouldn't go with a fixed annuity because the returns are garbage, but variable annuities will generally have better returns (but incur risk because they can have 0% returns in bad year.) The good thing is that you can't lose your principal contributions to it, just might not make any returns.
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Oct 4, 2019 18:59
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The boglehead consensus is that variable annuities are garbage and that single premium immediate annuities are the way to go if you really want an annuity. Most bogleheads that get them usually are well off, but want to protect against cognitive decline to the point that they cannot manage their money, or want to protect against living so long that their nest egg runs out. They usually don’t recommend getting them until much later in life. If you’re looking for stability You could set up your own annuity type investment by laddering long term bonds. Some people do that with ee bonds. Starting buying them around 40ish so that they have doubled in value by 60s.
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Oct 4, 2019 19:19
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KYOON GRIFFEY JR posted:y'all have 800 grand at somewhere around 37-39 so i think you are gonna be just fine to retire early assuming you continue to grow earnings to keep up with inflation and you maintain good spending discipline Two good friends of mine who are married went and got themselves in a similar situation. His parents gave him his inheritance while they're still alive, something like $400k, and he makes close to $200k a year. They live in a super low COL area and their pretty nice house is only like $100k, and basically, they could have just sat on their now $700k worth of passive investments, banked like $100k+ a year, and lived the stress free good life until he decided to retire early or dial back his work significantly. Instead they've created some cockamamie business that is in the process of blowing through that inheritance, and all of his money goes into funding the business as well. Oh and for the pleasure of this financial deep dicking, they get to be stressed the gently caress out 24/7/365.
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Oct 5, 2019 14:22
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Yeah, one of the guys I used to work for was extremely wealthy and his whole philosophy was that if you don't need a business to survive, any business you have is just a toy. It might be a profitable toy, but if it threatens your real money just walk away. If you just need a business to fill the endless hours of retirement, and certainly some people do, just embrace that is what it is. No sense in risking things on a get rich quick scheme when you are already well off.
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Oct 5, 2019 15:16
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Residency Evil posted:Opened my 401k today. Thanks! And funded it today. 
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Oct 7, 2019 15:55
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Hoodwinker posted:Really? They're the perfect use case for continuing to just dump as much as possible into a taxable brokerage account. It really depends on if MJP is really trying to focus on maximizing his tax advantages or not. If he's looking to capture the last gasp of tax efficiency then they make sense, otherwise, yeah, he's better off just going with a taxable account and investing in index funds that are growth oriented to limit his tax exposure there.
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Oct 7, 2019 16:38
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zharmad posted:It really depends on if MJP is really trying to focus on maximizing his tax advantages or not. If he's looking to capture the last gasp of tax efficiency then they make sense, otherwise, yeah, he's better off just going with a taxable account and investing in index funds that are growth oriented to limit his tax exposure there.
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Oct 7, 2019 16:40
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Hoodwinker posted:The primary purpose of maximizing your tax advantages is generally to increase wealth gain. If you get an annuity, it's going to be worse than market investing for that. I'd agree more with Graham that preservation of capital is a fundamental goal of investing, so the gains may not be as large as staying in market investing, but what I was saying is if anyone is going to go for an annuity, he's in the only situation where it could even make sense. From his post he seems to be wanting an additional option to go with the taxable account, which is what an annuity offers in this case with the advantage of lowering his current tax burden, which is not insignificant if he's limited out of IRA's. Given how much he's investing already $1800/year isn't going to completely break his other investments given he's already investing $12,000/year into his taxable account.
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Oct 7, 2019 16:49
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