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fart simpson posted:i bought $1000 of upro this year with the intent to hold it long term. it’s doing great so far
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Aug 25, 2020 23:50
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Ramrod Hotshot posted:Awesome, thanks for explaining this. In what scenario would you choose the Roth option for a 401k? - when you are in a low tax bracket (and we are at historic lows right now, so I would say this makes sense even if you're in a middle tax bracket) - when you are contributing solely to extend your legacy to heirs and not charity (since a Roth is inherited tax-free) - early on in your life when the earnings portion of your savings will end up being more significant than your contributions to principal (Roth earnings are tax-free) - if you plan on being in a higher tax bracket when you retire - to increase your flexibility in tax planning later on Some reasons to go traditional instead: - if you have low expenses, you may be able to avoid paying taxes at all on retirement contributions when you withdraw(https://www.physicianonfire.com/the-taxman-leaveth-taxes-in-early-retirement/) - if you are in a high tax bracket or nearing retirement age, Roths don't have as much of an impact - if you are in a high state income tax state, the savings from traditional contributions are higher
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Aug 26, 2020 00:01
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moana posted:Have you read this post by ERN? Sounds interesting to me, but I haven't messed around with it yet irl: https://earlyretirementnow.com/2020/04/22/three-equity-investing-styles-that-did-ok-in-2020/ not that article but i read something similar about strategy #2 with upro/tmf and decided to try it out. gonna put $1000 or so into it every quarter and see how it goes
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Aug 26, 2020 01:41
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Ramrod Hotshot posted:Oh yeah, just found out the employer match was cancelled, due to "hard times this year"! Sympathies! After years of being part time in various ways and then starting a full time clock, I became eligible for an employer contribution to my 403b which was put on pause after exactly one month.
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Aug 26, 2020 02:28
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moana posted:Have you read this post by ERN? Sounds interesting to me, but I haven't messed around with it yet irl: https://earlyretirementnow.com/2020/04/22/three-equity-investing-styles-that-did-ok-in-2020/ Careful. That backtest is using VXX which did well for this drawdown but the drag of the short term VIX futures is really bad. VIXY is right there and tracking the same index and has a longer backtest which reveals the problem. https://www.portfoliovisualizer.com...allocation3_3=6 The 55 UPRO/45 TMF is more promising. If you want to go down a rabbit hole, there is HEDGEFUNDIE’s excellent adventure. Which has seen a great deal of discussion, simulation of results further back and in recent days increasingly weird attempts to protect against Long Term Treasuries no longer having the tail wind. https://www.bogleheads.org/forum/viewtopic.php?f=10&t=288192 So far my assessment is that 55/45 seems like it’s going to be best, but I’m furiously trying to understand bonds in this new low yield environment.
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Aug 26, 2020 02:42
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yeah I’m doing the 55/45 split with some of my money. I read most of both of the bogleheads threads and I’m cautiously optimistic so I’m gonna try it out with a decent amount of money over the next few years
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Aug 26, 2020 03:35
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I'm from the UK and currently have the following: 60% Vanguard Global Market Index 30% L&G Global Technology Index 10% L&G UK Index. I am thinking of reducing the global tech index down to 20% because I feel I am heavily orientated towards tech.
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Aug 27, 2020 11:35
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Dang my equities are like 95% swtsx (Schwab equivalent of vtsax) and 3% arkw. So tempting to put a lot more in arkw, it just keeps going up.
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Aug 27, 2020 16:48
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Anyone have an article or a breakdown on how the mutual fund fees work for Edward Jones vs Vanguard? I'm trying to explain it to my brother who just opened an IRA with EJ and because it's not something that comes up when he Google's their fee's, he doesn't believe me.
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Aug 28, 2020 23:16
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Expense ratio? ER in a funds info when you Google or look at the info on any brokerage site. Do they charge mgmt fees on top or something? That should be somewhere in EJ's materials.
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Aug 29, 2020 00:30
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That was it! Thank you, I appreciate it. It didn't help I was at the beach trying to look stuff up on my phone. Found their mutual fund fee page and sent that to him. They do have an annual fee(which is double Vanguards fee, 40 vs 20) on accounts.
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Aug 29, 2020 00:35
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Moonshine Rhyme posted:That was it! Thank you, I appreciate it. It didn't help I was at the beach trying to look stuff up on my phone. Found their mutual fund fee page and sent that to him. Want to get out? They charge you $95 to get out of their loving terrible IRA account. gently caress Edward Jones forever.
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Aug 29, 2020 01:05
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It's legal to charge a fee to close and account?
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Aug 29, 2020 01:06
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Xguard86 posted:It's legal to charge a fee to close and account? edit: in case you were thinking this is normal practice, Vanguard does not charge any account closing fees, because they are not evil scumbags like edward jones. moana fucked around with this message at 01:17 on Aug 29, 2020 |
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Aug 29, 2020 01:11
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Merrill Edge took $50 from me when I transferred to Vanguard. I had exactly $3,000 in there and when the money arrived I had $2,950 so that's what I assume happened.
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Aug 29, 2020 01:41
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moana posted:Sure, why not, how else are you gonna keep the suckers around? https://www.edwardjones.com/images/ira-schedule-of-fees.pdf So what keeps them from charging 10k? 100?
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Aug 29, 2020 01:51
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quote="moana" post="507642692"] Yeah, their management fees are the worst. This thread used to be titled "gently caress Edward Jones", that's how bad their fees are. They charge you 2% to reinvest your dividends in your IRA. They charge you 2% when you invest anything into an IRA. Want to invest your money? Okay, you can keep 98% of it, because gently caress you, we're worse than Vegas slots. If you invest into an Edward Jones fund, they're probably skimming 5% off the top as a front load fee. If you don't invest into an Edward Jones fund, they charge you $50 minimum, PER POSITION. This is all on top of their normal (usurious) fund fees that are consistently above 1.00%, when Vanguard's funds hover in the 0.05-0.20% range. Want to get out? They charge you $95 to get out of their loving terrible IRA account. gently caress Edward Jones forever. [/quote] Great stuff, thanks! I have my own (non-tax advantaged as far as I can tell) account that family had been putting money into while I was growing up, had been letting it alone for a long time but I think this will finally push me over the edge to take it out and do something else with it.
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Aug 29, 2020 01:55
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As I mention probably a good bit here, Edward Jones former investor here. I legit will say hey, I at least met someone that got me to start investing. Nice enough guy, but That said, 1 hour of his time giving me advice turned into both years of those fees, and it took me a long time to psychologically move my money from Edward Jones to Vanguard. Sunk cost fallacy and all that. Anyone in Edward Jones, get out fast. They try to keep you through the “surly this guy is trust worthy” thought. Yeah, Keith was cool, but he wasn’t worth 2-4% of my retirement costs cool when I can just invest in Vanguard total stock funds anyway.
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Aug 29, 2020 02:20
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Xguard86 posted:So what keeps them from charging 10k? 100?
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Aug 29, 2020 02:21
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Xguard86 posted:So what keeps them from charging 10k? 100? Nothing, except presumably they're worried that the first person to notice the fee would scream so loudly they wouldn't get any more customers.
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Aug 29, 2020 03:50
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I'm a dual citizen. Born, raised, and live in Canada. Worked in the US for like, 5 years in the 2000's during which time the company I worked for set me up an IRA that they matched contributions to. It was through Edward Jones and that was just the way it was. I was in my 20's and knew enough to know that company matching is free money, but not much else than that. So the account got opened, some money went in, the sun rose and set and on and on. After I was done working with that company I moved back to Canada. After about a year back here I decided I wasn't going to live in the states anymore so I called up EJ to see what I could do with that account. After a bunch of phone calls, and multiple meetings with a Canadian EJ branch it was determined I couldn't move this money into a Canadian EJ account. Apparently this is a wicked rad way to potentially launder money so I could either A) leave it in a US IRA or B) withdraw the funds and get my rear end kicked by taxes and fees. Likewise, I can't really do much with the account because sending Canadian funds to it would be a real pain in the rear end and really pointless when I can just invest here. So it just sits there. About once a year I get a call from my EJ rep in Alaska. The first few times I talked to him was a "hey you aren't making contributions what's up?" conversation, at which point I reminded him of the situation. The last 5-ish years he's basically called me just to chat, make sure I'm still alive, and see what's happening in Canada. We talk about all the fun things I'm going to do when I come to the branch in the US when I'm 60 to start withdrawing that money, and that's about it. I'm in some generic growth fund that has done pretty well so we keep that the same and carry on with banter about fishing and other things we both like doing. That's my EJ story. I've never looked at the fees because I don't really want to know, but the guy I deal with is one of my favorite phone calls every year and I don't see any feasible way to get around this situation. No US bank account, no US permanent address, so yea, enjoy my fee money EJ and see you guys in 23 years. Moral of the story - I probably have stockholm syndrome with Edward Jones.
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Aug 29, 2020 04:50
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You could transfer it to an IRA at Vangaurd with no tax/fee other than what closing fees from EJ. I did the same a few years ago from Wells Fargo and had to pay $75 to get my own money back. I’m not actually sure if you would be able to open a new IRA from Canada though.
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Aug 29, 2020 05:54
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moana posted:The goodness of their heart. Ooh, I looked it up and Raymond James charges $125. I wonder if anyone else charges more. I think Mass Mutual charged me $300 for my 401k rollover
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Aug 29, 2020 12:27
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The Fed isn't raising interest rates any time soon. Basically instead of always targeting 2% inflation, they want to average 2% inflation over long periods of time, so they're OK with it going a bit above 2% to average out with times, like the last few months, when inflation was really low. https://www.usatoday.com/story/money/2020/08/28/interest-rates-what-fed-move-means-stock-market-economy-savers/5648978002/ So savings accounts and bonds will continue to be garbage. Hope none of you are retiring soon. If you are I guess you're supposed to put all of your money into an overvalued stock market as it shoots even higher and hope like hell that the bubble doesn't pop. Could all be a moot point since the economy is lagging bad enough that it may not even be able to sustain 2-3% inflation.
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Aug 29, 2020 14:39
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Shappa, I'm a Canadian living in the US and when I'm able to I'll visit Canada again sometime in the next year. You can transfer the money to my checking account, I'll hold onto it for you. When it's time, I'll withdraw it and put the bundles of cash in a briefcase handcuffed to my wrist. You should be able to easily identify me at the airport.
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Aug 29, 2020 16:06
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TITTIEKISSER69 posted:Shappa, I'm a Canadian living in the US and when I'm able to I'll visit Canada again sometime in the next year. You can transfer the money to my checking account, I'll hold onto it for you. When it's time, I'll withdraw it and put the bundles of cash in a briefcase handcuffed to my wrist. You should be able to easily identify me at the airport. Finally a solution. Thanks for you help. To being the transfer process can you first please send me 0.35 bitcoin to my wallet via your account? This is to ensure I have the right routing and transit numbers for the transfer. I greatly look forward to meeting your acquaintance.
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Aug 29, 2020 17:12
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Shappa posted:After I was done working with that company I moved back to Canada. After about a year back here I decided I wasn't going to live in the states anymore so I called up EJ to see what I could do with that account.
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Aug 29, 2020 17:18
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moana posted:Could you set up a SEPP to get it out over time? That's a great idea that I legit didn't know existed. Might look into doing that, even if it does mean breaking my EJ pen pals heart. Thanks!
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Aug 30, 2020 00:46
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Shappa posted:That's a great idea that I legit didn't know existed. Might look into doing that, even if it does mean breaking my EJ pen pals heart. Ahh, the world of investment advisors and brokers - when a random person on the internet goes further out of their way to help you accomplish your goals than does the person to whom you're paying a rip-off rate to help manage investments.
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Aug 30, 2020 03:11
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Shappa posted:That's a great idea that I legit didn't know existed. Might look into doing that, even if it does mean breaking my EJ pen pals heart.
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Aug 30, 2020 15:27
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i didn't know like half of these threads existed for ages cuz my eyes glaze over when i scan SA so i'm sorry. i'm a practicing CFP for about 3 years. i can answer any basics in any of the domains for free just quote one of my posts so i see it whenever i pop by (debt, retirement planning, investing, insurances, estate planning, etc etc) if you ever wanna take a neutral, non asset managing /non charging opinion to run by another advisor or planner for a point of comparison, i wouldn't mind
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Aug 31, 2020 00:13
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moana i saw a few of your posts through this thread and your advice is very sound and your av is very distinctive - are you in the field as well?
tbp fucked around with this message at 00:40 on Aug 31, 2020 |
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Aug 31, 2020 00:20
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acidx posted:So savings accounts and bonds will continue to be garbage. Hope none of you are retiring soon. If you are I guess you're supposed to put all of your money into an overvalued stock market as it shoots even higher and hope like hell that the bubble doesn't pop. I was reading a 2012 paper from AQR that showed that when the Shiller PE ratio was higher, expected returns for the coming decade were lower. Here's the table.  At the time, they were raising a concern since the Shiller PE was quite high (the highlighted band). Guess where the Shiller PE is now…  This is going to be a difficult decade.
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Aug 31, 2020 00:26
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doingitwrong posted:I was reading a 2012 paper from AQR that showed that when the Shiller PE ratio was higher, expected returns for the coming decade were lower. Here's the table. Also who the gently caress knows what the fed is going to do or who will be president and what they will do or how the pandemic will play out. or...
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Aug 31, 2020 01:13
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tbp posted:moana i saw a few of your posts through this thread and your advice is very sound and your av is very distinctive - are you in the field as well?  Good to see another planner around here, maybe we can meet up at a conference once the rona is over.
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Aug 31, 2020 02:10
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moana posted:I'm sitting for the CFP exam next month! Pretty soon I'll be charging $300 per post good luck! if you did prep work with dalton by any chance, i can personally say the practice material was significantly more difficult than the exam itself.
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Aug 31, 2020 02:50
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My privately held Danish company of ~12,000 people has given employees the opportunity to purchase B shares. They can only be purchased or sold within a certain window, but a sell is forced upon termination or if the company decides it's in their best interest to consolidate all B stock. I believe the company is in a strong position and that I probably wouldn't have a problem holding onto my job. I don't quite understand the nuances of the arrangement other than "if the company does well, the stock does well, and also you get a chance to vote on some stuff (but not really because you'll get drowned out by the A shareholders)". My gut tells me that I shouldn't invest more than a token amount for fear of overweighting myself in a single thing. Is there a layer to this that makes this kind of investment particularly advantageous/disadvantageous? I imagine that it'll make filing my taxes next year a bit more difficult, since this would technically be a Danish investment, and I file my taxes in Freedomland.
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Aug 31, 2020 14:34
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Usually you will get a discount on the stock so that you can make a profit by turning around and selling it immediately. Do they do that? If not, then I wouldn't buy any - you're already heavily concentrated in your company by virtue of being employed there.tbp posted:good luck! if you did prep work with dalton by any chance, i can personally say the practice material was significantly more difficult than the exam itself.
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Aug 31, 2020 15:00
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The Vanguard site is like super hosed right now.
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Aug 31, 2020 15:25
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moana posted:Usually you will get a discount on the stock so that you can make a profit by turning around and selling it immediately. Do they do that? If not, then I wouldn't buy any - you're already heavily concentrated in your company by virtue of being employed there. Can't sell it on the open market- I can only buy and sell it from the company, during a 6 week window each year where the price is reevaluated based on company performance vs obligations I'll probably buy a token amount to hold onto in the off chance the company goes public
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Aug 31, 2020 15:38
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