|
I AM JAMES FRANCO posted:Not so much living off of interest and more like trying not to lose money actively while I hold it (or even maybe make a little bit on interest). My plan was to use the actual 60K live off of $1,250 a month and have nothing left at the end of it save for any minute interest that I had (and the stuff in index, retirement, and stock not touched at all). Dental school doesn't really have stipends or fellowships or jobs to offset tuition Right my point is you would have only got $5K at 2% interest if you left it all there but you are going to burn down the amount so who cares about trying to eek out a few more percent for 1-2 years. That said the 1 year CD seems fine since you know your burn rate. Dental school is no joke that is for sure. Too many schools now, too many dentists, too many DSOs. The only way to get out of the dental loan debt is to go super rural (insurance pays more) or own your practice. It is kind of crazy that an associate at a Hartland or PDS office in any city will only make $100-150K.
|
#
?
Aug 13, 2020 21:26
|
|
|
|
| # ? May 16, 2024 12:16 |
|
|
Don't forget the REAL reason being a dentist is so depressing
|
|
#
?
Aug 13, 2020 21:34
|
|
|
spwrozek posted:Right my point is you would have only got $5K at 2% interest if you left it all there but you are going to burn down the amount so who cares about trying to eek out a few more percent for 1-2 years. That said the 1 year CD seems fine since you know your burn rate. Thats fair. I just dream about striking it rich and not having to worry about money  but the extra potential money vs risk doesn't seem to add up like you said. Yeah, luckily the state I am going to practice at is "under-served" state that has one of the highest salaries (like 180K) in the country for 1st year associates. I plan to purchase a practice after the year since apparently banks love loaning money to dentists. 100-150 is probably high for 1st years, I've heard offers in NYC or Chicago in the 80k range. I do probably have additional 20K or so coming in the rest of the year. Should I just sit on those? I'm worried about investing that given the seemly volatile state we are in right now. GoGoGadgetChris posted:Don't forget the REAL reason being a dentist is so depressing I mean I'm not one of those people that think dentistry is my ~**~calling~~*~~. I just hated my old career that was making me drink myself to an early grave in a hotel room every week. I just like working with my hands and I'm too bougie to be poor so dentistry seems like a natural choice. Plus I just think the work is super fun, even if repetitive. I AM JAMES FRANCO fucked around with this message at 21:40 on Aug 13, 2020 |
|
#
?
Aug 13, 2020 21:36
|
|
Oscar Wild posted:Theoretically precious metals are an inflationary hedge or hedge against equity risk. I could never understand the gold bugs who would talk about end times investment in precious metals against the risk of catastrophic government failure. But 10% of your net work in a mix of physical gold, silver...etc. Not in companies exploring or extracting.
|
|
|
#
?
Aug 13, 2020 21:57
|
|
|
NGC773 posted:But 10% of your net work in a mix of physical gold, silver...etc. Not in companies exploring or extracting. Even if you have gold that was dug up ages ago, its value is still dramatically impacted by the supply. You can't completely disentangle the value from the current extraction. Check out the spot price of Pt and I think gold during the mid 00s when there was turmoil and blackouts in South Africa
|
|
#
?
Aug 13, 2020 23:10
|
|
|
I AM JAMES FRANCO posted:
Don't you mean, "What's the real reason being a dentist is so depressing"?
|
|
#
?
Aug 13, 2020 23:15
|
|
|
GoGoGadgetChris posted:Don't you mean, "What's the real reason being a dentist is so depressing"? I honestly don't know what you're talking about.
|
|
#
?
Aug 13, 2020 23:32
|
|
|
You're always looking down in the mouth!!
|
|
#
?
Aug 13, 2020 23:35
|
|
|
GoGoGadgetChris posted:You're always looking down in the mouth!! Lol I've never heard of that expression before. Thanks for that.
|
|
#
?
Aug 13, 2020 23:44
|
|
|
GoGoGadgetChris posted:You're always looking down in the mouth!! Booo. Booo. Looking at the timestamp of your post, it happened just after the most common dental appointment time on the west coast would have ended. The hour long time-slot that starts at 2:30.
|
|
#
?
Aug 13, 2020 23:59
|
|
|
NGC773 posted:But 10% of your net work in a mix of physical gold, silver...etc. Not in companies exploring or extracting. Physical ownership means having to spend money to secure your stash, insure it, and also paying transaction costs on both the buy and sell leg of your transaction. On top of the price of metals still being strongly affected by geopolitical events, including in particular events that affect the major producing countries. There's really only two reasons to stack up gold coins in your basement instead of owning GLD or IAU or similar: because you have fantasies of total governmental collapse and somehow your gold being the thing that lets you keep your wealth, or as a hobby because you just love to  some coins. The former is a fantasy, the latter is an expensive hobby masquerading as "investment." There is a "respected" point of view that says to include gold in a well-diversified portfolio: the so-called "Permanent Portfolio" that Harry Browne came up with, which you can find on the Bogleheads Lazy Portfolio page. It advocates holding: quote:25% US total stock market Note this strategy also involves putting a quarter of your money in bonds and a quarter in short-termT-bills/cash-equivalents (I think, I'm a little confused on the this bit). The long-term performance of this allocation is actually... not as terrible as one might expect? It looks pretty swingy year to year, bonds sure seem not good right now, gold is very volatile, and this really small investment in US stocks (with no international investment) means missing out on the long-term performance of stocks. But I've never seen someone in this thread actually advocate for the Permanent Portfolio and I am definitely not advocating it either. I'm just pointing to this as something you can research and read about if you want. Leperflesh fucked around with this message at 00:43 on Aug 14, 2020 |
|
#
?
Aug 14, 2020 00:37
|
|
|
crazypeltast52 posted:The hour long time-slot that starts at 2:30. Groan.... Doc: How often do you floss? Patient: You should know that doc! You were there the last time.
|
|
#
?
Aug 14, 2020 01:15
|
|
|
GoGoGadgetChris posted:Don't you mean, "What's the real reason being a dentist is so depressing"? I thought you were referring to their high suicide rate
|
|
#
?
Aug 14, 2020 12:46
|
|
|
I'm currently maxing out my Roth IRA, trad 403b, and trad 457, but my work also provides Roth 403b and 457s. I may still have some money left over to invest. Would it be better for me to contribute to a brokerage account or increase Roth contributions to 403b? I'm in no danger of jumping to a higher marginal tax bracket.
|
|
#
?
Aug 14, 2020 16:47
|
|
|
NGC773 posted:But 10% of your net work in a mix of physical gold, silver...etc. Not in companies exploring or extracting. I dont mean to be a dick but gold and silver are correlated rather strongly. I wouldn't consider them as diversified with each other. Do what makes you comfortable. I've never been a believer in metals as a great investment vehicle but its definitely a popular one by many.
|
|
#
?
Aug 14, 2020 17:29
|
|
|
drainpipe posted:I'm currently maxing out my Roth IRA, trad 403b, and trad 457, but my work also provides Roth 403b and 457s. I may still have some money left over to invest. Would it be better for me to contribute to a brokerage account or increase Roth contributions to 403b? I'm in no danger of jumping to a higher marginal tax bracket. The amount you can contribute to a trad and Roth 403b/457b is cumulative, if you're already maxing the trad you can't add any more Roth. Caveat: unless you can do an after-tax non-Roth contribution and then convert it to Roth money (the "mega backdoor Roth"). But not every retirement plan offers this option and I don't know if it's ever available for a 457b.
|
|
#
?
Aug 14, 2020 19:12
|
|
|
No, I meant if you had (say) $2k, would you rather put it in a brokerage or change your 403b contribution to 50/50 Roth/trad (or however much it would take for your tax bracket) and use the 2k to pay for the taxes of Roth.
|
|
#
?
Aug 14, 2020 19:19
|
|
|
I'd put it in a taxable brokerage. My tax rate right now is much higher than I expect it to be in retirement, so maximizing trad makes more sense over paying extra for Roth.
|
|
#
?
Aug 14, 2020 19:20
|
|
|
My fed + state marginal tax rate is around 17%. I'm considering locking some of that in in addition to my Roth IRA.
|
|
#
?
Aug 14, 2020 19:28
|
|
|
Oscar Wild posted:I dont mean to be a dick but gold and silver are correlated rather strongly. I wouldn't consider them as diversified with each other. All of the precious metal charts might as well be copies of each other. Gold, silver, platinum, and pallodium have the same ups and downs at the same time. Buying metals is great if you buy at the right time. I think it's a terrible long term investment. If you bought your stuff in 2011 or 2012, you would have seen barely a return right now, and that's only because the price has jumped up a lot this year. If you bought in 2001, then you've made an absolute ton of money. If you bought in like 1980, you would have held on to it to make almost zero money. Seems more like a day trader thing to do than a long term investment.
|
|
#
?
Aug 14, 2020 20:37
|
|
|
Kylaer posted:I'd put it in a taxable brokerage. My tax rate right now is much higher than I expect it to be in retirement, so maximizing trad makes more sense over paying extra for Roth. We've just spent several trillion dollars in the last few months. I expect tax rates to be much higher in the future than they are now. I may be totally wrong, but it's something to consider: not just "how much would my taxes be, at current rates" but also the risk that tax policy could and likely will change in the future. I hedge against the uncertainty of future tax rates by doing both roth and traditional retirement investing.
|
|
#
?
Aug 14, 2020 21:25
|
|
|
Leperflesh posted:We've just spent several trillion dollars in the last few months. I expect tax rates to be much higher in the future than they are now. I may be totally wrong, but it's something to consider: not just "how much would my taxes be, at current rates" but also the risk that tax policy could and likely will change in the future. I hedge as well. That said I expect top rates to go up. I am not sure they can really increase them much on 22% and below. Above that though they have to go up. Or you print money and pay yourself...seems bad.
|
|
#
?
Aug 14, 2020 22:38
|
|
|
Leperflesh posted:We've just spent several trillion dollars in the last few months. I expect tax rates to be much higher in the future than they are now. I may be totally wrong, but it's something to consider: not just "how much would my taxes be, at current rates" but also the risk that tax policy could and likely will change in the future. Agreed. I likewise think tax rates will almost certainly be higher for me at retirement than now (both because they’re so low now, and also because I’m a pension-haver)... but just to illustrate why hedging with both Roth and trad contributions is a good idea, we could always raise non-income taxes like eg implementing a VAT. I don’t see it necessarily happening, but... even if we’re at a tax-rate minima for our lifetimes, we can’t predict how the future higher rate tax environment will be structured.
|
|
#
?
Aug 14, 2020 22:50
|
|
|
Sovereign debt and its impact is a black box that literally nobody has a single clue of what's inside, least of all the people responsible for running the system.
|
|
#
?
Aug 15, 2020 02:34
|
|
alnilam posted:Even if you have gold that was dug up ages ago, its value is still dramatically impacted by the supply. You can't completely disentangle the value from the current extraction. Leperflesh posted:Physical ownership means having to spend money to secure your stash, insure it, and also paying transaction costs on both the buy and sell leg of your transaction. On top of the price of metals still being strongly affected by geopolitical events, including in particular events that affect the major producing countries. There's really only two reasons to stack up gold coins in your basement instead of owning GLD or IAU or similar: because you have fantasies of total governmental collapse and somehow your gold being the thing that lets you keep your wealth, or as a hobby because you just love to alnilam posted:Even if you have gold that was dug up ages ago, its value is still dramatically impacted by the supply. You can't completely disentangle the value from the current extraction. Thanks all for your input. I will do more research in to it.
|
|
|
#
?
Aug 15, 2020 10:43
|
|
|
Gold fundamentally does not do its alleged job. A stable store of value should not look like this: https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart Apparently on a timeline measured in centuries it is a store of value, but most of us won’t live that long.
|
|
#
?
Aug 15, 2020 12:23
|
|
|
Is there anything that is a good consistent store of value over the short and long term that isn’t volatile? Even land seems to fail at this role in many cases.
|
|
#
?
Aug 15, 2020 12:34
|
|
|
lmao
|
|
#
?
Aug 15, 2020 12:41
|
|
|
Cold on a Cob posted:Is there anything that is a good consistent store of value over the short and long term that isn’t volatile? Even land seems to fail at this role in many cases. This is the problem a well-managed fiat currency is intended to solve, fwiw.
|
|
#
?
Aug 15, 2020 12:58
|
|
|
Jenkl posted:This is the problem a well-managed fiat currency is intended to solve, fwiw. Yeah I know, I meant as an alternative. I assumed the answer is "there isn't one" but I thought I'd ask.
|
|
#
?
Aug 15, 2020 13:10
|
|
doingitwrong posted:Gold fundamentally does not do its alleged job. A stable store of value should not look like this: I know so many people who thing gold is a great asset to be in to keep value. I am going to save this and show them next time!
|
|
|
#
?
Aug 15, 2020 14:37
|
|
|
doingitwrong posted:Gold fundamentally does not do its alleged job. A stable store of value should not look like this: It's almost as if the social arrangements around gold were more significant than the substance itself. Gazpacho fucked around with this message at 23:03 on Aug 15, 2020 |
|
#
?
Aug 15, 2020 19:57
|
|
|
doingitwrong posted:Gold fundamentally does not do its alleged job. A stable store of value should not look like this: To just assess gold as a store of value using this chart with no accompanying historic context is pretty funny. It's probably more accurate to say that, at least since 1971, gold has been a hedge against monetary crisis. That's why you see it sort of uncouple from inflation between 1980-2000 and reemerge after the dot com bubble. I bought a bunch of ETFs and miners stocks back in 2009 because I thought the whole system was shaking in its foundations. It's a bit silly in hindsight because if the whole system is breaking down and the monetary system and supply chains are freezing or flying apart, an ETF isn't going to do jack poo poo for you. In any case, I look at more like a trader now. I tripled my money on those stocks and I'm taking some profits now, but I'd probably buy back in when and if we ever see the other side of this economic situation.
|
|
#
?
Aug 16, 2020 20:15
|
|
|
I wrote up a bit about two more high yield CD/savings accounts, Service Credit Union’s Holiday Club savings account ($3k @ 3%) and American Heritage Credit Union’s promotional CD ($2k @ 4% for 4 months). I just got done chatting with customer service reps about each. Service’s Holiday Club account functions like an ordinary savings account with some minor exceptions. One is the $3k cap on the 3% rate (0.25% on everything above that), and another is you can opt-in to have all the funds deposited into your checking account (or have them send you a check) every year for special occasions. Seems like a good choice if you’re interested in a $3k @ 3% savings account, I'll definitely be checking it out. It also goes great with their Primary Savings ($500 @ 5%) account; together they offer $3.5k at about 3.3%. American Heritage’s promotional 4-month CD ($2k @ 4% for 4 months) is a one-time thing, and cannot be rolled-over or laddered to maintain the 4% rate. After that, none of their CDs or savings accounts offer particularly great rates, so I don’t feel it’s worth it to open an account for a one-time 4-month CD.
|
|
#
?
Aug 17, 2020 20:33
|
|
|
Can the thread offer me some guidance on how to more smartly adjust my retirement savings? I'm expecting a promotion soon (GS-11->GS-12) and I figure plowing the majority of the salary increase into savings is smarter than increasing expenses. I'm a 33 year old who's only been meaningfully saving for retirement since 31. As a federal employee I'm contributing 10% to the federal Thrift Savings Plan with 5% matching from my agency. No debt other than student loans, but I will hopefully be enrolled in my agency's student loan repayment plan in the next few months. The general advice I've seen suggests dropping my TSP contributions 5% and putting the other 5% towards a RothIRA would be a better course? Then if after my promotion I hit the RothIRA contribution limit to put the excess back towards the TSP?
|
|
#
?
Aug 17, 2020 21:11
|
|
|
Soylent Pudding posted:Can the thread offer me some guidance on how to more smartly adjust my retirement savings? I'm expecting a promotion soon (GS-11->GS-12) and I figure plowing the majority of the salary increase into savings is smarter than increasing expenses. TSP has fairly competitive ER (0.04% last I checked). I can't really see the value in lowering contributions to it. I believe you can also do Roth TSP contributions, although I've never really looked into it so I'm not certain how that works. There's nothing really wrong with your plan of TSP + Roth IRA, and generally upping your contributions to one or the other with your raise. I don't see the point in reducing TSP contributions, though. Maybe I'm missing something.
|
|
#
?
Aug 17, 2020 21:21
|
|
|
Soylent Pudding posted:Can the thread offer me some guidance on how to more smartly adjust my retirement savings? I'm expecting a promotion soon (GS-11->GS-12) and I figure plowing the majority of the salary increase into savings is smarter than increasing expenses. Depending on how  you are, you can also make Roth contributions to a TSP (even splitting your contribs between "traditional" TSP and RothTSP). Could save you making an IRA elsewhere. But a Vanguard or whatever-brokerage IRA is probably nice to have anyway. The TSP fund options aren't that great.also note Roth TSP and Roth IRA are different creatures, there are various web pages detailing the differences
|
|
#
?
Aug 17, 2020 21:22
|
|
|
incogneato posted:TSP has fairly competitive ER (0.04% last I checked). I can't really see the value in lowering contributions to it. I believe you can also do Roth TSP contributions, although I've never really looked into it so I'm not certain how that works. I guess I'm not sure how to judge how "competitive" the TSP is relative to other options. If the TSP is solid maybe I'll wait till I max my TSP contributions before looking at IRAs or other funds.
|
|
#
?
Aug 17, 2020 22:29
|
|
|
Soylent Pudding posted:I guess I'm not sure how to judge how "competitive" the TSP is relative to other options. If the TSP is solid maybe I'll wait till I max my TSP contributions before looking at IRAs or other funds. The TSP expense ratios used to be best in the world by a mile. Now they're just essentially equal to the best in the world. What the TSP lacks is variety. Its variety of funds to pick from is poo poo. What the TSP gets you is an interesting trust structure (that probably does not matter) and the G fund, which is a world unique fund for its yield structure. But with treasury bond yields in the dumpster, the G fund is not nearly as valuable to have around as it once was. It doesn't behave like, say, TLT or VCLT when bond yields drop and gain value in bids against face value of its bonds. If you are extremely low effort just TSP target date it and forget it. But if you want to perhaps do better or learn, open that Roth elsewhere.
|
|
#
?
Aug 17, 2020 22:38
|
|
|
|
| # ? May 16, 2024 12:16 |
|
|
I've been putting away 15% of my pre tax income into my deferred compensation program at work since May of 2013. I have a healthy amount built up- nearly $70k- and I've been putting $200 a month into a roth IRA as well since June 2019. I earn a little over $50k gross per year. Would it be a huge mistake to bring down my deferred comp contributions to 3% (the minimum my employer requires) for maybe 6-8 months and use that money to pay off my mortgage and a few other things? I'm quite close to getting my house paid off in full and if I did this I could be mortgage-free by this time next year, and once that's paid off I could contribute even more to both of my portfolios. (plus with no house payment I could really live like a king) I would still be making the monthly $200 to my roth. Also, there is no matching contribution of any kind from my employer, so I wouldn't be losing out on free money. I have about 20 years to go until retirement.
|
|
#
?
Aug 18, 2020 03:39
|
|
