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KYOON GRIFFEY JR posted:$16K sounds light for an emergency fund - how many months of expenses does that cover?
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Jun 29, 2020 22:03
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Yeah a $7k whole life policy is just a straight scam, it's never gonna pay out a significant amount, and they're probably took like 5% up front, and are scraping another percent or two annually, just to underperform the S&P. Get the paperwork and find out how to get rid of it, and then (since IIRC you have dependents) see what term life policies your auto and home insurer offers and bundle it all up for a big discounted rate on a basic term life insurance policy that will take care of your family if you die in a car accident. And then push the cash you get back from closing the whole life policy and put it into your retirement savings and get a much better return. Did we just talk about this a couple weeks ago? That might have been another thread. Time is going so slowly now that a couple weeks ago seems like last year.
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Jun 29, 2020 22:38
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My grandmother bought a 5k some kind of insurance thing for me when I was a kid. She passed and I received ownership of the account. Forgot about it until I thought about buying a house. Cashed it out for 10k or so after tax. Would have been 30-35k if it was just an index fund. So yeah, they suck.
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Jun 30, 2020 02:09
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just found out my parents 'financial advisor' is with ameriprise and that's where their retirement stuff is. what are the chances they aren't getting ripped off?
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Jun 30, 2020 17:56
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Illusive gently caress Man posted:just found out my parents 'financial advisor' is with ameriprise and that's where their retirement stuff is.
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Jun 30, 2020 17:56
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Illusive gently caress Man posted:just found out my parents 'financial advisor' is with ameriprise and that's where their retirement stuff is. Rip.
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Jun 30, 2020 20:39
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Does Transamerica fit that category as well? Old acquaintance from school got a job with them, tells me he needed a certain number of consulting sessions so I have a video call with him tomorrow. I don't have money to give them and even if I did probably would not anyway, so that's not on the table, just curious
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Jun 30, 2020 21:14
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Moonshine Rhyme posted:Does Transamerica fit that category as well? Old acquaintance from school got a job with them, tells me he needed a certain number of consulting sessions Yes. You're part of the scam by listening to him. His job is likely 100% commission or close to it. You pay that commission. It's literally MLM but for finance products. H110Hawk fucked around with this message at 21:30 on Jun 30, 2020 |
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Jun 30, 2020 21:27
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Almost every financial "advisory" company is trying to rip you off, hth
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Jun 30, 2020 21:29
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Illusive gently caress Man posted:just found out my parents 'financial advisor' is with ameriprise and that's where their retirement stuff is. I hope he also pushes some new silverware on you too while he is at it.
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Jun 30, 2020 21:38
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It's a different company, it's a different quality of product. One of the worst things about becoming a financial advisor is that when people ask me what I do, I have to tell them I'm a financial advisor. Before, I could just say I write werewolf porn and it wouldn't be nearly as awkward.
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Jun 30, 2020 22:15
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H110Hawk posted:Yes. You're part of the scam by listening to him. His job is likely 100% commission or close to it. You pay that commission. For sure, thanks for this. we'll see how eager he is to talk when I make it clear that I will never be investing money with them. Was a pretty strange thing to hear from him considering dude was working in the fitness industry before this
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Jun 30, 2020 22:29
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the fitness industry is mostly about selling equipment and memberships and supplements to people who will never use them, e.g., grift, so becoming a grifter for a financial services company is probably a really good fit
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Jun 30, 2020 22:32
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Moonshine Rhyme posted:For sure, thanks for this. we'll see how eager he is to talk when I make it clear that I will never be investing money with them. The fitness "industry" is about sales too my dude efb You can do fitness by lifting heavy things, eating right, and running around the block. The industry is a sham built to tell people they're out of shape because they haven't bought the right product or advice
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Jun 30, 2020 22:32
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Illusive gently caress Man posted:just found out my parents 'financial advisor' is with ameriprise and that's where their retirement stuff is. hope you dont plan to inherit
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Jun 30, 2020 22:48
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Moonshine Rhyme posted:Does Transamerica fit that category as well? Old acquaintance from school got a job with them, tells me he needed a certain number of consulting sessions so I have a video call with him tomorrow. Transamerica does at least have some "legitimate" investment products like IRAs and 401ks. My company's 401k is through Transamerica and I invest in Vanguard funds in it, and the plan fees are fine but not great (0.2% premium on the underlying ER). I of course have little to no choice in the custodian selection, but it could be a hell of a lot worse. But their consumer financial advisors are the same level of hucksters selling lovely whole life plans and high fee/load mutual funds.
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Jun 30, 2020 23:24
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Just finished maxing out my 2019 IRA contribution limits. 
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Jul 1, 2020 05:26
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Congrats!
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Jul 1, 2020 05:35
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So I threw some money at Wealthfront because I wanted to see how well their "daily" tax-loss harvesting works. Turns out "monthly" is more accurate since it only has a pair of ETFs in cycle for each bucket, so once it sells it needs to wait a full 31 days to sell again due to the wash-sale rule. For me, I don't think it's worth the added 0.25% expense ratio while being beholden to their asset allocation. Maybe if you're new to investing, young, with a high income and are pumping in paychecks every month and can continually harvest a volatile cost basis.
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Jul 2, 2020 15:25
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wide stance posted:So I threw some money at Wealthfront because I wanted to see how well their "daily" tax-loss harvesting works. Turns out "monthly" is more accurate since it only has a pair of ETFs in cycle for each bucket, so once it sells it needs to wait a full 31 days to sell again due to the wash-sale rule.
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Jul 2, 2020 15:47
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Hoodwinker posted:I've never seen a good case for any of the robo-advisors and I've seen actual tangible negative cases for them. I'd like to know more about this, I've been pretty happy with Wealthfront's tax loss harvesting. It's doing stock-level tax loss harvesting for me, have you enabled that checkbox?
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Jul 2, 2020 18:49
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Twerk from Home posted:I'd like to know more about this, I've been pretty happy with Wealthfront's tax loss harvesting.
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Jul 2, 2020 19:33
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I have a question about pulling money out of a taxable account. Let's say I have 20k in vtsax in a taxable account and that 10k of this includes a capital gain of 1k and 10k of this includes a capital loss if 1k. If, hypothetically, I want to take 10k out, which 10k is best to take? The one one with a capital gain or the one with a capital loss?
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Jul 2, 2020 20:22
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Hutzpah posted:I have a question about pulling money out of a taxable account. Let's say I have 20k in vtsax in a taxable account and that 10k of this includes a capital gain of 1k and 10k of this includes a capital loss if 1k. If, hypothetically, I want to take 10k out, which 10k is best to take? The one one with a capital gain or the one with a capital loss? The loss lot. Assumes that you have specid turned on and just sell that lot.
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Jul 2, 2020 20:38
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H110Hawk posted:The loss lot. Assumes that you have specid turned on and just sell that lot. That's what I was thinking, and it makes sense mathematically, but it feels wrong. Thanks for confirming.
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Jul 2, 2020 21:39
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There are circumstances where you'd prefer not to realize the loss this year, but they're unusual. Let's say your income is low this year but will be high next year; and let's say you have already realized a short term capital gain this year. Taking the loss lot this year would offset that capital gain, lowering your tax, but it'd be a short-term capital gain tax taxed at this year's low income tax top marginal rate. You might prefer to save that tax loss for next year, so that you can use it to offset an anticipated higher-tax-rate gain or, if you have no capital gains, up to $3k of your regular income, next year. But like I said this is unusual. In most circumstances it's best to harvest tax losses early, and bear in mind that if you have no offsetting gain, you can carry forward losses to subsequent years. This is all subject to certain limits and conditions. https://finance.zacks.com/long-capital-gains-losses-carry-forward-3552.html
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Jul 2, 2020 21:44
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Hutzpah posted:That's what I was thinking, and it makes sense mathematically, but it feels wrong. Thanks for confirming.
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Jul 2, 2020 21:47
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Doesn't Betterment claim somewhere that their tax-loss harvesting improves returns by 0.4% (which would be more than their 0.25% fee)? I'm looking at a chatlog where I said that, and I also said my estimate of the improvement was only 0.05%, but I have no memory of how I came up with that number and I'm really not sure that I trust past Xom over Betterment on this. Xom fucked around with this message at 01:01 on Jul 3, 2020 |
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Jul 3, 2020 00:58
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I have a long-running spreadsheet that I use to track our retirement savings and goals. I'm trying to clean it up a bit and want to double-check some of my assumptions. All accounts are in Target Date funds pegged ~30 years out (when we expect to retire). Because I'm in Target Date funds, the ratio of equity to bonds will go down with time, ending at approximately 30/70 in retirement. It's a bit clunky, but I currently have one variable for growth rate pre-retirement, and one for post-retirement. Questions:
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Jul 3, 2020 01:15
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Can anyone point me to a primer on backdoor Roth IRAs? I need a really dumbed down overview/explanation.
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Jul 3, 2020 01:22
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I've seen 4% as a conservative figure so you might want to make those your bottom. I can't recall the source maybe a vanguard white paper? Backdoor IRA: https://www.physicianonfire.com/backdoor/ Does this help? He literally shows SS of what to click on vanguard's site. It helped me.
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Jul 3, 2020 01:27
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Tortilla Maker posted:Can anyone point me to a primer on backdoor Roth IRAs? Backdoor Roth IRAs are used in cases where either you are above the income limit to make a normal IRA contribution. Everybody can contribute up to $6,000 annually into an IRA (more if you're over 50), but only some people are eligible to take advantage of preferential tax treatment. Both traditional IRAs and Roth IRAs have income limitations (although traditional IRA limits only apply if you have a workplace retirement program like a 401k). If you do not meet those limits, you can still contribute to a so-called "non-deductible IRA." This is essentially just a traditional IRA, but when you file your taxes, you are not eligible for a deduction and instead you need to file form 8606 to denote the nature of the contribution. Once you've made the non-deductible IRA contribution, simply call up whoever manages the investment and tell them you want to do a "Roth IRA conversion." This is a common request and they'll send you some paperwork to fill out. (A few places like Vanguard even permit you to do it online, IIRC.) You will also need to file form 8606 if you do a Roth conversion in a given year. As long as the amount in the account as equal to or less than your initial investment, the Roth conversion will be tax free. Note, however, that if you have any other IRAs (except Roths), that this gets messy and you may owe tax.
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Jul 3, 2020 03:13
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Xguard86 posted:Backdoor IRA: Small White Dragon posted:Backdoor Roth IRAs are used in cases where either you are above the income limit to make a normal IRA contribution. Thank you both for the information! I'm trying to learn more about IRAs as I've been pretty good about maxing out my 401(k) contributions for several years but have neglected the world of IRAs entirely. My spouse and I each have a 401(k) through work, contribute to a 529 plan, and have a mutual fund (VFTSX) through Vanguard. Looks as though there's no need to even consider backdoor Roth IRA contributions as our AGI (married, filing jointly) is less than $196,000.
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Jul 3, 2020 14:07
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Curious to get people's opinions on roboadvisors given some of the recent comments. For people in this thread, sure, do it yourself and rebalance yearly is the better way to go. But, for most people they're weighing whether to go with a 1% AUM financial advisor to manage their investments vs a roboadvisor, because they'll never do it themselves. If that's the choice, it seemed like the roboadvisor would be a much cheaper way to go while accomplishing about the same thing. Also saw that Vanguard will be offering one shortly for a 0.15% fee.
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Jul 3, 2020 15:14
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Chu020 posted:Curious to get people's opinions on roboadvisors given some of the recent comments. For people in this thread, sure, do it yourself and rebalance yearly is the better way to go. But, for most people they're weighing whether to go with a 1% AUM financial advisor to manage their investments vs a roboadvisor, because they'll never do it themselves. If that's the choice, it seemed like the roboadvisor would be a much cheaper way to go while accomplishing about the same thing. Also saw that Vanguard will be offering one shortly for a 0.15% fee.
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Jul 3, 2020 15:37
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100% agree that people should learn how to do this stuff, and that it really isn't that hard. But I can count on one hand the number of people I've met in real life who are actually willing to DIY this stuff and keep getting asked for financial advisor recommendations.
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Jul 3, 2020 15:39
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Roboadvisors are mostly pointless imo. People who want advice seem to prefer to get it from a human rather than a decision tree. People who don't want advice are better off doing it themselves and saving the fee. People who don't give a drat can pick a target date fund and save the fee. The one possibly useful bit is having a nicer interface than a typical discount broker. If 2002-era web tech is what's stopping someone from investing their savings, I guess it might be worth knocking down that hurdle? No idea how the roboadvisors expect to get big enough to become profitable. I'm also impressed by how much money people can spend to maintain a tax loss harvesting cron job.
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Jul 3, 2020 16:02
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Robo advisors don't do anything that financial advisors actually do- insurance and estate plan reviews, tax planning, employee benefit reviews, investment management across tax efficient and tax inefficient accounts (remember that roboadvisors can't handle 401ks or take into account they exist, let alone allocating with regard to their fund selection options). They do blind tax loss harvesting, all the time, without regard to someone's tax situation. That's how they get their "alpha"- by deferring taxes until later (when you might be in a higher bracket, who cares, they are only promising to save you money now so you'll pay their fee). Robo advisors literally just rebalance and tax loss harvest blindly. They are not advisors, they are target date funds saving you money on taxes now so you can pay more in taxes later. Refer your friends to napfa.org to find an advisor who will actually advise if they really need the handholding.
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Jul 3, 2020 16:02
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Robo advisors fit in to a specific spot on the effort spectrum No loving effort, thought, learning: 2% advisor from the bank Some effort and understanding: 1% Tangerine fund thing and fund transfers A bit more understanding but I don't want to actually do trades: 0.5% robo advisor to press the rebalance button for me Full understanding: 0.1% buy ETFs directly If someone happens to land right there it makes sense to use them
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Jul 5, 2020 18:49
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Literally deceased: galaxy brain never does anything.
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Jul 5, 2020 19:56
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