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spwrozek posted:I don't know if you are humoring us but I really hope this is true.  it's not the OP
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Jul 10, 2020 23:01
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Hoodwinker posted:Yes, emphatically, you should move it over to Vanguard. Raymond James might charge you a one-time fee to transfer your assets out. It'll still be cheaper than the cost of expense ratios they're charging you in the long run. Done. Thanks! Do I have to worry about any taxes etc. when I exchange those funds into something else?
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Jul 10, 2020 23:08
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Bird in a Blender posted:Part of it, from some reading, is that if I paid a little bit each year, then it counts as income, which also reduces their aid availability. Ah yeah, could be. I guess you will just have to look it all up. If the kid has an expected contribution of say $4K I didn't think it mattered where it came from, maybe you have to just give the money to the parents to pay or something. Just another stupid financial game to play in America... Sundae posted:
you have burst my bubble.
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Jul 10, 2020 23:12
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Anti-Hero posted:I changed jobs two years ago and have been dodging the paperwork requests to do something with my old 401(K) balance. Why do you need to do anything with it? Can’t you just leave it there?
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Jul 10, 2020 23:28
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raminasi posted:Why do you need to do anything with it? Can’t you just leave it there? I think I can? I keep getting the same informational packet from my ex-employer on a quarterly basis and I was assuming I should do something about it.
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Jul 10, 2020 23:40
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spwrozek posted:you have burst my bubble. 
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Jul 10, 2020 23:45
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Anti-Hero posted:I changed jobs two years ago and have been dodging the paperwork requests to do something with my old 401(K) balance. If you're happy with the investment options in your newer 401(k), then sure, rolling it over is harmless. If your'e not happy with the investment options in your newer 401(k), then you could also opt to roll it over into a traditional IRA. The only issue there is if you ever want to do a backdoor roth IRA, having a significant balance in a traditional IRA is a problem (it has to be rolled over first, which would cost you some tax money). The advantage of the trad IRA is you pick the custodian (like, say, Vanguard) and have the full range of investment options int here, with no tacked-on expenses and fees, which you might have in a 401(k). so tl;dr, read through what the investment options are in your new employer 401(k) and if the ERs are as low as they ought to be for Vanguard index funds, go ahead and do that rollover. e. also yeah it's totally fine to just leave it there. Unless your old employer goes out of business or something. If you think that's about to happen, you'll save yourself some annoyance by rolling over before it does.
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Jul 11, 2020 00:44
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Sundae posted:
You're a monster. 
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Jul 11, 2020 01:32
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Murgos posted:So, is it your position that bond prices going up would be problematic for a portfolio that was heavy bonds? I don't understand. When bond rates go up, the already issued bonds which are paying out a lower rate than the new rate lose value, yes. Those will be the bonds that you have bought. When bond rates fall (which they have been steadily doing for decades to today) previously issued bonds gain value because they have the old rate locked in. So any backtesting you do that relies heavily on bonds for performance will suggest a performance by the portfolio that it is close to mathematically impossible to reproduce going forward (unless we go very far into negative interest rates in the coming decades). This makes backtesting bonds pretty difficult to do.
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Jul 11, 2020 01:42
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spwrozek posted:That makes sense. Honestly I didn't even know this job had a pension when I started in 2011 and then I figured it wouldn't really be a thing but almost 10 years later it is around $200K in value. So my whole financial retirement planning has been with me ignoring the pension completely. I will do some more reading on this topic though as I should probably understand it more. (I also ignore SS in my retirement planning which is probably dumb too) For the purposes of asset allocation, I’ve simply decided that so long as I’m at my current job racking up pension years, I’ll stay 100% equities. I’d consider rebalancing if/when I ever leave to a more traditional allocation, though there’s good reasons to be skeptical of bonds in the medium-term anyway (as is being discussed in thread). Ultimately I tried different ways of valuing pensions and I never found one I found super satisfying. These days, I just tend to run a variety of scenarios by adjusting different variables to get a sense of the range of possible outcomes. I’ve found MarketWatch’s retirement calculator to be good for this. Another element to consider if you’re a pension-haver is that it may push you towards Roth IRA or Roth 401k contributions, since you’ll already have a chunk of taxable income from the pension. So any withdrawals from an IRA/401k being Roth/taxfree is an even bigger benefit. Obviously depends on your personal situation whether or not that’s enough to switch from traditional to Roth though.
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Jul 11, 2020 09:54
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escalator dropdown posted:For the purposes of asset allocation, I’ve simply decided that so long as I’m at my current job racking up pension years, I’ll stay 100% equities. I’d consider rebalancing if/when I ever leave to a more traditional allocation, though there’s good reasons to be skeptical of bonds in the medium-term anyway (as is being discussed in thread). All good things to think about. Thanks.
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Jul 12, 2020 02:16
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So...I found the epitome of our current 2020 hell world. They've brought back sharecropping. Except now it's crowdsourced sharecropping. https://www.acretrader.com This company finds farmland, crowdsources investment capital, then buys it from the farmer and charges them rent every year and the investors get a return. I've been seeing the ads for MasterWorks everywhere, which is crowdsourced art investing. I thought it was dumb, but could at least see some reasoning behind it. I guess because I visited the MasterWorks site I got targeted for Acre Trader, now the ads are all over my Facebook. I am sitting here just gobsmacked at this website. There are so many things wrong with this. Somebody met with some VCs and said "what if we bring back sharecropping with crowdsourcing this time?" and they said "hell yeah, I'm in!"
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Jul 12, 2020 04:30
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Most farmland in Iowa at least is already leased. Farmers want to plow more acres and no one wants to sell, so they end up leasing land from people as they retire or the kids don’t want to run a farm. This just puts dumber money into the process.
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Jul 12, 2020 05:43
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D-Pad posted:So...I found the epitome of our current 2020 hell world. They've brought back sharecropping. Except now it's crowdsourced sharecropping. Just about anything that is crowdsourced is not new; it's just getting the attention of those with low capital now. Sharecropping implies that the person never owned the land to begin with. Farmers boom and bust in all sorts of ways. Some own outright and go bankrupt. Some lease from a neighbor and are upside down until they have a good season, then get fractional ownership over time (self-crowdfunding? LOL. Better analogy is Rent-to-Own). Some have been sharecropping the old fashioned way in blissful ignorance but nobody uses the term anymore (meaning "this land has been in the family for generations and we've always paid on time, kept the profits, and reinvested in the land. We don't know where the deed is"). The irony of this whole system is that this may be the only viable way for small local farmers to survive against commercial farmers now.
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Jul 12, 2020 17:12
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The other thing that is totally different is a lot of the land owners are relatively small holders with like a section or less, and the people doing the "sharecropping" (eg leasing the land, planting, and harvesting) tend to be big corp farms.
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Jul 12, 2020 17:18
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MockingQuantum posted:I do think it's funny that a lot of my friends are discovering their risk tolerance isn't what they thought it was and changing course in response to COVID, but I kind of get it. I know logically that I should probably be putting as much money as I can in the market right now, but given that I work in an industry that has been hit hard by the pandemic, and might never recover from it, I do feel like maaaaybe my emergency fund could use a little more meat than I thought. I'm not about to shift around the allocation on what I already have invested, though. Covid has altered my plans somewhat because, while I had an emergency fund that was plenty to cover any emergency I might have, it wasn't enough to cover an emergency affecting the whole economic system. I have been helping out friends and family who have been impacted, with no expectation of repayment, and because of that I've been keeping all my excess income in cash for the past few months instead of investing as I usually would. I've already maxed all tax-advantaged investment options for the year, so this would have gone into a taxable brokerage otherwise. I haven't altered anything in my existing investments so I don't know if I'd say my risk tolerance has changed as such, the pandemic just introduced a factor I hadn't even considered.
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Jul 12, 2020 19:05
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Kylaer posted:Covid has altered my plans somewhat because, while I had an emergency fund that was plenty to cover any emergency I might have, it wasn't enough to cover an emergency affecting the whole economic system. I have been helping out friends and family who have been impacted, with no expectation of repayment, and because of that I've been keeping all my excess income in cash for the past few months instead of investing as I usually would. I've already maxed all tax-advantaged investment options for the year, so this would have gone into a taxable brokerage otherwise. I haven't altered anything in my existing investments so I don't know if I'd say my risk tolerance has changed as such, the pandemic just introduced a factor I hadn't even considered. I am doing the same thing. I don't know if family is going to need help but based on the jobs they have all it takes is another shut down with "normal" unemployment (aka barely any money). I want to be ready though if it is needed. I don't want to leave my family out on the street. So I have held of on my taxable investments for now. I haven't changed my allocation or anything else (other than some tax loss harvesting in March).
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Jul 13, 2020 00:55
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I think it's rational to strive for at least a 6 month emergency fund now. I used to have 3 months and it's getting tight.
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Jul 13, 2020 08:03
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I always liked 10 months because if I ever eliminate an expense or payoff a loan early, I can take out 10x my monthly amount to do it
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Jul 13, 2020 08:42
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I’ve always had a 6 month emergency fund, but like everyone else that fund was if something happened to me, but I hadn’t considered as much if something happens to my entire industry or the country or world. I realized that since I am in tech, if something bad happened my large tech company would be one of the last to start layoffs, but if they did, it would mean that things are REAL BAD and many other companies had already been doing layoffs for a while. So, while my allocations (90% stocks) stayed the same, and I continued contributions to max my 401k Pre Tax, Roth IRA, Mega Backdoor Roth and HSA... I diverted any extra money that would normally go to my Brokerage, and instead am using that money to build up my HYSA to get 1 years’ worth of expenses.
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Jul 13, 2020 11:33
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I thought that the mega backdoor roth precluded use of a traditional 401k.
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Jul 13, 2020 17:28
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raminasi posted:I thought that the mega backdoor roth precluded use of a traditional 401k.
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Jul 13, 2020 18:00
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dexter6 posted:I’ve always had a 6 month emergency fund, but like everyone else that fund was if something happened to me, but I hadn’t considered as much if something happens to my entire industry or the country or world. I realized that since I am in tech, if something bad happened my large tech company would be one of the last to start layoffs, but if they did, it would mean that things are REAL BAD and many other companies had already been doing layoffs for a while. That's me exactly right now. My whole field (live event production) has unsurprisingly been absolutely destroyed by all this, so basically all my spare cash is just going into a HYSA until I have even a glimmer of what my job outlook is like in the next year or so. I currently have about a year's worth of what would be my normal after-tax income sitting in my savings and it feels like such a huge stack of cash that could be put to better use, but the idea of doing anything with it right now makes me feel a bit panicked. My investments, though, are untouched and are actually doing pretty fine, all things considered.
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Jul 13, 2020 18:55
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On the bright side - being stuck at home all day and unable to travel or go to restaurants has made me realize that my 6 month fund was actually like a 15 month fund.
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Jul 13, 2020 19:01
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Did your bills change? I only calculate my e fund based on what my expenses would look like unemployed.
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Jul 13, 2020 19:02
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Loan Dusty Road posted:Did your bills change? I only calculate my e fund based on what my expenses would look like unemployed. My mortgage, taxes, insurance etc. didn't change, but certain things like "gas", "food", and "buying things" can be a lot lower than I thought!
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Jul 13, 2020 19:05
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Loan Dusty Road posted:Did your bills change? I only calculate my e fund based on what my expenses would look like unemployed.
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Jul 13, 2020 19:29
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dexter6 posted:Same. E-fund is literally "stay alive and have a bed and roof" money. Restaurants, bars (HAHA REMEMBER WHEN WE USED TO GO PLACES), etc. are not factored in. I used to do this, then had to pay like three unexpected repair bills in about a month and a half and decided I'd be a bit safer if my efund was just representative of my actual expenses, more or less.
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Jul 13, 2020 19:30
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MockingQuantum posted:I used to do this, then had to pay like three unexpected repair bills in about a month and a half and decided I'd be a bit safer if my efund was just representative of my actual expenses, more or less.
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Jul 13, 2020 19:32
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I recently took a look at the bank account and decided that with ~2 years of emergency fund on hand, it might be time to put some more money in the investment account, so I transferred $10k to Fidelity. I'm currently at a 2:1 ratio of FSKAX and FXAIX (total market index fund, and s&p 500 index fund). I believe I chose those based on advice in this thread. Given ~these times of Covid-19~, should I look into something different for the new money, or buy more of the same? Edit: that should be FXAIX, not FSAIX. Fixed. Pham Nuwen fucked around with this message at 20:58 on Jul 13, 2020 |
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Jul 13, 2020 20:42
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You don't need S&P 500 if you already have total market. You're probably looking for total international in its place. Also, I don't know if it was a typo, but FSAIX is not S&P 500 but some weird high fee fund that you'll want to get rid of if you actually own it.
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Jul 13, 2020 20:53
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Pham Nuwen posted:I'm currently at a 2:1 ratio of FSKAX and FSAIX (total market index fund, and s&p 500 index fund). I believe I chose those based on advice in this thread. Given ~these times of Covid-19~, should I look into something different for the new money, or buy more of the same? FSKAX contains everything FSAIX contains, plus the mid- and small-cap corporations. You really don't need both funds; all that you do by owning them both is own the whole U.S. market, but skewed towards large caps. I'd go all into FSKAX and ignore FSAIX (although if you've got capital gains in it, I wouldn't sell it, just let it ride). Depending on your preference, you could add a bond fund, and/or you could add an international stock index fund, since currently you're holding 100% U.S. stocks, unless you have other investments not listed. Edit: As mentioned above, this is assuming you meant FXAIX instead of FSAIX.
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Jul 13, 2020 20:53
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Kylaer posted:Depending on your preference, you could add a bond fund, and/or you could add an international stock index fund, since currently you're holding 100% U.S. stocks, unless you have other investments not listed. So say FXNAX if I was looking at a bond fund, and... FSPSX for international index?
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Jul 13, 2020 21:03
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Pham Nuwen posted:So say FXNAX if I was looking at a bond fund, and... FSPSX for international index? These final fantasy names are getting ridiculous
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Jul 13, 2020 21:16
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raminasi posted:I thought that the mega backdoor roth precluded use of a traditional 401k. Megabackdoor is using the money above and beyond the $19,500 limit, up to the max "all sources" limit of $57,000. At my job you have to max the "individual $19,500" limit first, trad or roth doesn't matter, before you can start in on the After Tax Mega Backdoor Roth 401k. Just make sure you understand your matching situation, and any trueups, because every dollar counts here up to $57,000. (As always, this excludes any outside rollovers into your 401k, that money was counted against the relevant years limits when you contributed it.) 4.4 more pay periods to go until I hit the overall limit. 
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Jul 13, 2020 22:04
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H110Hawk posted:Megabackdoor is using the money above and beyond the $19,500 limit, up to the max "all sources" limit of $57,000. At my job you have to max the "individual $19,500" limit first, trad or roth doesn't matter, before you can start in on the After Tax Mega Backdoor Roth 401k. Just make sure you understand your matching situation, and any trueups, because every dollar counts here up to $57,000. (As always, this excludes any outside rollovers into your 401k, that money was counted against the relevant years limits when you contributed it.) Yeah I just it thought it worked like a regular backdoor Roth, where you have to convert everything into the Roth IRA. I didn’t know you could only convert your after-tax contributions.
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Jul 13, 2020 22:20
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Yeah the terminology is confusing. Backdoor Roth -> Used for people with high enough income that they can’t directly contribute. Involves putting the money into your Trad IRA and then converting the amount to your Roth IRA. Mega Backdoor Roth -> Used to make contributions to your Roth IRA of = $57,000-$19,500-employer match. Requires that your employer’s 401k plan allows after tax 401k contributions. Income doesn’t matter here. You can do one, the other or both depending on your situation.
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Jul 13, 2020 22:24
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Sorry, catching up with the thread. Can someone post the discord please?
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Jul 14, 2020 06:08
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I now have an HSA-eligible health plan. What's the deal with HSAs wrt retirement savings, I feel like I've read itt that you can like, roll them into your 401k after a year or something? e: dexter6 posted:Backdoor Roth -> Used for people with high enough income that they can’t directly contribute. Involves putting the money into your Trad IRA and then converting the amount to your Roth IRA. Also from experience if you are married filing separately, 10k/year counts as "high enough income" to have to do the backdoor Roth 
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Jul 14, 2020 19:04
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alnilam posted:I now have an HSA-eligible health plan. What's the deal with HSAs wrt retirement savings, I feel like I've read itt that you can like, roll them into your 401k after a year or something?
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Jul 14, 2020 19:37
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