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ranbo das posted:It's actually very easy, it just sounds complicated. Tl;dr sell all your shares, don't buy more for 30 days and you're fine. I'll dig into the nitty gritty below. The link doesn’t explicitly spell out the wash sale question/answer, so thanks. And it sounds like all of your accounts count, right? So you have to also not buy shares in your iras/401ks/457s/etc?
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Jan 30, 2020 11:39
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Here’s my deal: I’m in the military and will retire in 6 years. I’ll be 44 at retirement retire at O-4, which in today’s money gives me about $50k a year before taxes once I retire, for life. That number should go up about 2% a year based on active duty pay raises. I currently have $40k in my 401k and $40k in my Roth IRA. I’m behind the ball a bit but now max out both each year. Each month I can put about $400/month into savings. Once I hit 60 and can begin using my 401k I’m set. Once I can tap into my Roth IRA and my social security, I’m really set. But it’s the time period between retirement and 60 years old I need to make money, because $50k a year will not support me and my family (wife and one kid for now, maybe a second in the future). So I’ll need a job obviously. And I need to know how much money I will need to make during that in between time and how much money I want from 60 years old and onward. I don’t own a house. Moving around the country kinda made me not want to do that during my career. Too many risks for me. We have savings of about $50k currently which will help with a down payment. My kids school will be fully funded with the GI Bill, though if we have a second kid I need to find their schooling. My wife will be going back to work within the next few years and she has a 401k with $100k in it, but not actively contributing. So those are my unknowns. What else do you need to know to help me or what else do I need to figure out to help myself? nwin fucked around with this message at 18:55 on Jan 30, 2020 |
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Jan 30, 2020 18:52
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So get a job and rake it in
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Jan 30, 2020 18:58
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Doghouse posted:So get a job and rake it in That’s the obvious answer. But I don’t want to kill myself working 80 hour weeks to take it in, either. I’ll be leaving the military with a master’s degree so I should be able to have my pick of jobs and I plan on retiring in Arizona where the cost of living isn’t crazy high. I’m just trying to get an idea of what to shoot for I guess. More is always better, but would $40k be acceptable? $60k? Right now I make about $80k before taxes but my housing is paid for. I’m also paying $24k in 401k and Roth IRA, so I guess I’m “living off of” $55k. So I would need, at a minimum $55k plus whatever a mortgage and insurance costs. That means my pension should roughly cover what I live off of now. If I make an extra $30k/year to cover mortgage and insurance I should be flush?
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Jan 30, 2020 19:04
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nwin posted:Here’s my deal: I don't know exactly what your question is or if I can help, but I can suggest you check out federal employment if you go job hunting. Military gets you automatic hiring preference, pushing your application to the top of consideration. I work for the federal government, and a lot of my coworkers are former military. I'm pretty sure your time in service carries over for pension purposes (don't quote me on that, I wasn't in the military), and you can keep contributing to TSP. Hours are usually pretty decent and stress usually fairly low. Check out usajobs.gov. There is a federal jobs thread somewhere around here, too.
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Jan 30, 2020 19:09
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incogneato posted:I don't know exactly what your question is or if I can help, but I can suggest you check out federal employment if you go job hunting. Oh that’s on the radar. There’s plenty of gs12/13/14 jobs I’ll be eligible for.
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Jan 30, 2020 19:13
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Knowing nothing else about you, it sounds like you should: 1. Move to Arizona. 2. Buy a house you plan to retire in. 3. Get a job aiming for 80k before taxes or more. With a master's, experience, and military, that sounds pretty easy. Maybe middle management is in your future if that's something you're remotely qualified for? 4. Your wife should definitely get a job in the next few years just to get a head start on job hunting after you move to Arizona if she plans to work then as well. Congratulations, you sound like you're in a great place.
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Jan 30, 2020 19:13
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incogneato posted:I'm pretty sure your time in service carries over for pension purposes This is not accurate except in certain circumstances or if you voluntarily waive your military retirement pay. Otherwise good advice. OPM has all the details about the transition on their website. Depending upon experience you’re likely to be able to step into at least a GS-12 or equivalent with no issue.
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Jan 30, 2020 19:50
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Loucks posted:This is not accurate except in certain circumstances or if you voluntarily waive your military retirement pay. Otherwise good advice. OPM has all the details about the transition on their website. Depending upon experience you’re likely to be able to step into at least a GS-12 or equivalent with no issue. Fair enough, I was just going off what a coworker had told me about his pension. But he was in a different situation (left the Army due to injury, not retirement). And it's also possible he was just wrong.
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Jan 30, 2020 21:12
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nwin posted:That’s the obvious answer. But I don’t want to kill myself working 80 hour weeks to take it in, either. I’ll be leaving the military with a master’s degree so I should be able to have my pick of jobs and I plan on retiring in Arizona where the cost of living isn’t crazy high. I’m just trying to get an idea of what to shoot for I guess. More is always better, but would $40k be acceptable? $60k? Right now I make about $80k before taxes but my housing is paid for. I’m also paying $24k in 401k and Roth IRA, so I guess I’m “living off of” $55k. There are several government contractor jobs in Arizona like Boeing and General Dynamics. They love hiring ex-military. What is your master’s degree in?
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Jan 30, 2020 21:33
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nelson posted:There are several government contractor jobs in Arizona like Boeing and General Dynamics. They love hiring ex-military. What is your master’s degree in? It’s actually 2 degrees. An MBA and a finance degree. My career has mainly been in inspections and compliance and now I’m doing a payback tour as a budget analyst, funds manager.
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Jan 30, 2020 21:46
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At $41xx/month through to your death you're already doing a hell of a lot better than people who live off of social security. If you go by the FIRE folk who look at 3% as a safe withdrawal rate it's like having something like $1.7MM in your 401k on retirement. Don't beat yourself up over the low value of your 401k. You will find a job, it will pay you likely much more than the military did, and then you will wind up ALSO having social security to pay you plus whatever you saved.
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Jan 30, 2020 23:05
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Yeah I’m pretty jealous tbqh. Retiring at 40 with a pension and degrees that will set me up for a second, management level career? And I get to start every sentence with “Well, the way we handled this in the military...” GWM.
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Jan 30, 2020 23:09
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nwin posted:It’s actually 2 degrees. An MBA and a finance degree. My career has mainly been in inspections and compliance and now I’m doing a payback tour as a budget analyst, funds manager. dogg you are extremely employable in this type of thing in private sector for way better money
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Jan 30, 2020 23:17
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nwin posted:It’s actually 2 degrees. An MBA and a finance degree. My career has mainly been in inspections and compliance and now I’m doing a payback tour as a budget analyst, funds manager. Holy poo poo, dude. You are set for an easy 6 figures for as long as you choose to keep working.
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Jan 31, 2020 00:44
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totalnewbie posted:Knowing nothing else about you, it sounds like you should: nelson posted:There are several government contractor jobs in Arizona like Boeing and General Dynamics. They love hiring ex-military. What is your master’s degree in? H110Hawk posted:At $41xx/month through to your death you're already doing a hell of a lot better than people who live off of social security. If you go by the FIRE folk who look at 3% as a safe withdrawal rate it's like having something like $1.7MM in your 401k on retirement. Don't beat yourself up over the low value of your 401k. You will find a job, it will pay you likely much more than the military did, and then you will wind up ALSO having social security to pay you plus whatever you saved. Residency Evil posted:Yeah I’m pretty jealous tbqh. Retiring at 40 with a pension and degrees that will set me up for a second, management level career? And I get to start every sentence with “Well, the way we handled this in the military...” GWM. KYOON GRIFFEY JR posted:dogg you are extremely employable in this type of thing in private sector for way better money Motronic posted:Holy poo poo, dude. You are set for an easy 6 figures for as long as you choose to keep working. Well drat-this is a confidence boost and a half! Noted on my wife beginning to work. She’s a stay at home mom with our kid and once he goes to school she’ll be back at work unless we have a second one. She’s got a degree and some connections so hopefully that will stick together until she’s ready to go back. She’s ready now, but gently caress childcare expenses. I completely forgot about Boeing and General Dynamics-I’ve actually got friends that work for both back in Arizona so that would be good. I was kinda thinking a city/state finance job to double dip in retirement, but I think I’d rather make more money up front because it sounds like in actual retirement I’ll be set. This is all good to hear-I might actually be able to buy that Toyota Tacoma I’ve wanted. Not immediately, but once I retire for the first time, so that’s cool.
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Jan 31, 2020 01:04
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nwin posted:This is all good to hear-I might actually be able to buy that Toyota Tacoma I’ve wanted. Not immediately, but once I retire for the first time, so that’s cool. This is hilarious because I nearly put at the end of my reply "as long as you can avoid going neck deep in truck equity." 
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Jan 31, 2020 01:10
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H110Hawk posted:This is hilarious because I nearly put at the end of my reply "as long as you can avoid going neck deep in truck equity." Oof. Guess I’ll stick with my 2008 Vue a little longer haha
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Jan 31, 2020 01:15
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nwin posted:Oof. Guess I’ll stick with my 2008 Vue a little longer haha If what you want is a Taco when you land your 6 figure job with the military industrial complex I don't think anyone would think twice about it. Just don't pay more than like 2% interest on the loan and try to not get tricked into the $75k truck. (Because remember, add $50k to any job offer you get.) It's a trope in the Bad With Money thread that people are buying these massive brodozer trucks to get groceries at 20% interest.
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Jan 31, 2020 01:20
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H110Hawk posted:It's a trope in the Bad With Money thread that people are buying these massive brodozer trucks to get groceries at 20% interest. literally this big fucked around with this message at 03:18 on Jan 31, 2020 |
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Jan 31, 2020 03:14
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literally this big posted:That's more Enlisted.txt, nwin's situation is more Officer.pdf. It's basically anyone suddenly making money. Oil field guys are just as prone to it.
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Jan 31, 2020 03:49
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H110Hawk posted:It's basically anyone suddenly making money. Oil field guys are just as prone to it. I’d agree with that. I worked in Houston inspecting oil barges for a while. When money was good for those guys, it was AMAZING. New truck lifted with all the options, maybe a Raptor or something, why not? Oh we need to make that repair? No worries. The second oil prices dropped? No new trucks and they fought over repairing everything.
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Jan 31, 2020 03:54
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I remember you posting earlier and being astounded at how loving made you were back then. You're gonna be fine, my dude.
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Jan 31, 2020 05:27
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Hoodwinker posted:I remember you posting earlier and being astounded at how loving made you were back then. You're gonna be fine, my dude. So I guess here’s a question. We have 50k saved up in an HYSA. A rough estimate on monthly spending for us is $7k a month (includes funding the Roth at $500/month and saving $500 a month in emergency funds), so we have the 6-month emergency fund set up. Since I’ll be pretty well off, especially once I tap into my 401k and social security, should I start putting the money I put into the Roth into something else? In 6 years we will buy a house and while I can use a VA loan with no money down, I’d prefer to put down some cash and have some extra to fix up, buy new appliances etc. I’ll still also need an emergency fund. So it seems like I should stop the Roth IRA and put that money into my HYSA or CD ladder so it can remain liquid. Tell me where I’m wrong?
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Jan 31, 2020 15:55
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One cool trick about a Roth IRA is you can pull your contributions out penalty free.
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Jan 31, 2020 15:58
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Loan Dusty Road posted:One cool trick about a Roth IRA is you can pull your contributions out penalty free. Right, but you can only contribute $6,000 per year. So you lose out on any future compounding on any principal you withdraw. Plus the principal is risked, so if the market happens to be down when you are ready to pull the trigger you may not have enough for your down payment. A Roth IRA is not an ideal place to park your money while saving for a house down payment, your HYSA is.
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Jan 31, 2020 16:14
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Sock The Great posted:Right, but you can only contribute $6,000 per year. So you lose out on any future compounding on any principal you withdraw. Plus the principal is risked, so if the market happens to be down when you are ready to pull the trigger you may not have enough for your down payment. A Roth IRA is not an ideal place to park your money while saving for a house down payment, your HYSA is.
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Jan 31, 2020 16:20
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I'd rather getting the money into a Roth IRA and keep it as cash vs not filling it. You can't get missed years back, but in 5-6 years you can decide if you want to take it out or not. And if not, maybe you left it invested low risk and are able to move it to stocks because hey, you keep winning at life, why stop now?
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Jan 31, 2020 21:32
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you're in kind of a weird position because your income is going to go up. (I promise). I would keep truckin on the IRAs IN THE MARKET because that is space with tax advantages you don't ever get back and you're not dependent on a big downpayment due to the VA loan. When your wife gets income (before you move etc) start saving some of that towards the extras and as a buffer for moving, etc. Then take the VA loan with no money down - there's no reason not to that I can find. When youget the job, you can immediately dump money in to the mortgage if you want. There is a small amount of risk if the entire world craters contemporaneously with your home purchase, but c'est la vie. You have that risk with a bigger downpayment, too.
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Jan 31, 2020 22:56
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I have recently rocketed out of marginally-crippling debt via a home sale and a big promotion. For the first time in my life, I have enough money that I can worry about how to save some of it rather than strategizing how to keep next month's credit card bills from being more than this month's.  The immediate 'problem': I now have an emergency fund. It's a few thousand bucks, and I'm looking for advice on where to put it. I moved $500 of it to a credit union savings account that pays a high rate on the first $500 in the account. I've been poking around and haven't really found any outstanding options for the rest. I guess the main requirement for an emergency fund is that one should be able to immediately withdraw from it at any time. I'd like an account that meets that requirement and will also provide the least-lovely yield possible. Any suggestions?
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Feb 1, 2020 00:41
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I did a little bit of digging into my accounts and it looks like I have a Traditional IRA, and taxable brokerage accounts with ETrade and a Roth IRA with Fidelity. My 401k is currently 8% with 4% matching. Also have a Roth 401k option at work which I am not contributing to currently. Now, If I want to hit my $6k IRA max for the year with some spare cash I have my checking account should I be contributing to the Trad IRA or the Roth? And if so should I just be grabbing Vanguard/Schwab/Fidelity funds? I have reached out to our financial advisor at work so hopefully I can get some information through them, but looking for general advice here first.
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Feb 1, 2020 00:46
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fart store posted:I have recently rocketed out of marginally-crippling debt via a home sale and a big promotion.
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Feb 1, 2020 01:00
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fart store posted:Any suggestions? Your best bet would be to find an online bank that offers a decent rate. Online banks don't have to pay rent for a physical location, or employ nearly as many staff, so they tend to offer better rates than most big banks or credit unions. Ally is the go-to goon recommendation, and what I use for some of my online savings; right now their high yield savings account earns 1.6%. We're currently in a 'low interest rate environment', so 1.5% - 2% is about what you can expect right now. There are also various online savings accounts that function similar to your credit union's (5-6% interest on the first $1k). I currently have $7k earning ~5.15% this way. That's chump change to some people, but it works really well for me. Some folks on r/personalfinance asked me to make a guide to all the different accounts, but then a mod banned me before I could for "promoting personal content". I could post it here if anyone's interested.
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Feb 1, 2020 01:25
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literally this big posted:Your best bet would be to find an online bank that offers a decent rate. Online banks don't have to pay rent for a physical location, or employ nearly as many staff, so they tend to offer better rates than most big banks or credit unions. Ally is the go-to goon recommendation, and what I use for some of my online savings; right now their high yield savings account earns 1.6%. We're currently in a 'low interest rate environment', so 1.5% - 2% is about what you can expect right now. I went ahead and applied for an elements financial helium savings which has a 2.1% rate for the first year. I'd be interested in reading your high-yield-on-low-balances post
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Feb 1, 2020 01:41
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I’d be interested as well.
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Feb 1, 2020 02:09
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I'm interested in that as well, but I'd caution anybody who is just getting their feet under them to focus on making a simple working plan and modifying it after they're a little more stabilized.
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Feb 1, 2020 02:14
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SnatchRabbit posted:I did a little bit of digging into my accounts and it looks like I have a Traditional IRA, and taxable brokerage accounts with ETrade and a Roth IRA with Fidelity. My 401k is currently 8% with 4% matching. Also have a Roth 401k option at work which I am not contributing to currently. Now, If I want to hit my $6k IRA max for the year with some spare cash I have my checking account should I be contributing to the Trad IRA or the Roth? And if so should I just be grabbing Vanguard/Schwab/Fidelity funds? I have reached out to our financial advisor at work so hopefully I can get some information through them, but looking for general advice here first. The answer is ¯\_(ツ)_/¯. It depends on your situation. In general, if you expect your marginal tax rate to be higher now than later and you are eligible for deductions, the trad IRA is best. If you don’t get a deduction now or want more flexibility to withdraw early, the Roth is better. If you expect higher marginal tax when you withdraw, Roth is better. Since you will have some control over your income at withdrawal, most people expect a lower marginal rate at retirement. But will tax rates as a whole go up or down in $YEARSTILYOURETIRE? Whatever you choose , you should invest in low cost index funds once you get in there.
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Feb 1, 2020 02:59
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timn posted:You've already been dunked on enough but I wanted to give some actual concrete feedback. Trying to improve disadvantaged people's welfare by controlling their behavior has pretty much never worked, even with the absolute best possible intentions. I wasn't really aware that I had been dunked on. I don't think there is a moral imperative for redistributing wealth so long as people aren't dying in the streets. Other people do. It's a reasonable difference of opinion; people on the interest just express that by saying "lol what a retard" Also paternalism 100% works. Look at the effect of cigarette taxes on smoking, gun control on gun deaths, etc. But even if that weren't the case I don't think that restrictions on predatory lending are really the most pernicious examples of paternalism.
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Feb 2, 2020 01:47
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You have reframed what you posted into something completely different from what people were taking exception to.
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Feb 2, 2020 02:36
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I've always contributed to a Roth IRA so I never did forms for the IRS (whoops maybe??). But in 2019 I switched to a traditional, and now it's tax time... Vanguard says forms won't be available until AFTER 4/15 because I can contribute for last year until then even though I'm definitely already way maxed... How do I do my taxes without this?? I'm getting poo poo from people about this that I am counter yelling at to back the gently caress off because they do this as a courtesy and I always say I can't give you what I do not have!
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Feb 2, 2020 03:22
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