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MJP posted:::hacker voice:: I'm in check the terms and conditions and make sure there isn't a cap on that 3%, sometimes they say something like "Earn 3% (on up to $5,000, 0.5% on all other balances)
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Oct 9, 2020 18:32
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Mad Wack posted:check the terms and conditions and make sure there isn't a cap on that 3%, sometimes they say something like "Earn 3% (on up to $5,000, 0.5% on all other balances) The APY is on the entire balance up to 100k
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Oct 9, 2020 18:36
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nice, wasn't sure what bank it was from the screenshot
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Oct 9, 2020 22:19
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I tried to use the thread search to find it, but don't we have a goon CFA or two who visit the thread occasionally? Looking to get some input for the new year and I could have sworn I saw that someone in this thread was a CFA.
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Oct 11, 2020 20:22
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Dumb question for the thread, but what are the ETF equivalents to VTSAX and VFIAX?
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Oct 12, 2020 00:47
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Senor P. posted:Dumb question for the thread, but what are the ETF equivalents to VTSAX and VFIAX? Resident SA ETF enthusiast here. VTI and VOO, respectively. If you go to vanguard’s page for the mutual fund it will have a link to the ETF (for all funds where equivalents exist).
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Oct 12, 2020 00:53
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I know this was mentioned about 100 pages back, but what was the general conscious of Vanguard's Digital Advisor? I did a bit of research and it seems decent enough. They charge a 0.20% quarterly/yearly fee, but aim for a total of 0.15% ER. It also seems that the ERs for each individual fund is bundled into that 0.20%? Vanguard Website posted:Vanguard Digital Advisor is an all-digital service that targets an annual net advisory fee of 0.15% across your enrolled accounts, although your actual fee will vary depending on the specific holdings in each enrolled account. To reach this target, Vanguard Digital Advisor starts with a 0.20% annual gross advisory fee to manage Vanguard Brokerage Accounts. However, we'll credit you for the revenues that The Vanguard Group, Inc. ("VGI"), or its affiliates receive from the securities in your managed portfolio by Digital Advisor (i.e., at least that portion of the expense ratios of the Vanguard funds held in your portfolio that VGI or its affiliates receive). Your net advisory fee can also vary by enrolled account type. The combined annual cost of Vanguard Digital Advisor's annual net advisory fee plus the expense ratios charged by the Vanguard funds in your managed portfolio will be 0.20% for Vanguard Brokerage Accounts. For more information, please review the I also like the idea of the robot being able to "allocate efficiently between taxable and tax-deferred accounts within the service." (Is this a Personal Advisor thing only?) From a few of the reviews that I read, the robot seems to give the same advice as the Personal Advisor which seems a bit disappointing. Also, the $50k minimum, and 0.30% fee with the ERs *not* being included kind of kills it for me.
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Oct 12, 2020 01:29
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obi_ant posted:I also like the idea of the robot being able to "allocate efficiently between taxable and tax-deferred accounts within the service." You know, I thought the same thing when I was injecting investment knowledge into my brain matrix-style, but for boring index fund investments I'm no longer sure this really matters. The 30-day SEC yield for a S&P 500 index fund is higher than a long-term treasury or total bond fund. Bond yields are seriously depressed. Until that changes (which, well, it probably will one day), does it really matter if you have the stock index in your taxable account and bond index in your IRA? I guess if you're expecting stocks to go up and to sell before LTCG tax rates kick in, then you want to do that in an IRA. But short-term trading in an IRA is more for the stock picking thread and not this thread.
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Oct 12, 2020 01:43
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My cd is about to mature and I’m looking for any other areas to reinvest it since the new APR will likely suck. It was just a one-year CD through Discover. It’s about $21k that I don’t think I’ll need for at least the next 3 years. I already max my 401k and Roth IRA. I want it relatively low risk and am just seeing if there’s anything I’m missing besides doing a 3-year CD or something. I feel like a CD isn’t the best idea right now since rates are low.
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Oct 12, 2020 02:30
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Jesus In A Can posted:I tried to use the thread search to find it, but don't we have a goon CFA or two who visit the thread occasionally? Looking to get some input for the new year and I could have sworn I saw that someone in this thread was a CFA.
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Oct 12, 2020 02:37
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nwin posted:My cd is about to mature and I’m looking for any other areas to reinvest it since the new APR will likely suck. It was just a one-year CD through Discover. Several of us are trying out HMBradley. Nitrousoxide posted:If you can split your direct deposit from your employer into two accounts this seems like the best low effort option:
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Oct 12, 2020 13:36
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drainpipe posted:You were concerned about having your money "locked up" for 30 years in a 401k. This is not completely accurate as you can pull it out with some planning in 5 years after you leave your job. Look here for reference: https://www.madfientist.com/how-to-access-retirement-funds-early/ I am lazily looking for a new job anyway because my company's compensation is poor as software development goes (and tenure is valued over results, and my AVP screwed me over... although I ultimately won there), but COVID threw in a wrench after my first big interview and made my decades old company that's never done a layoff seem a bit more appealing amid economic uncertainty. On the bright side, a lot of companies opening up remote working with COVID so that opens career doors not previously available without relocating. Yeah, I think my earlier posts hit on that--been maxing my Roth IRA the first 3 years of my current (first proper) job and company didn't have a 401k before this year, but left it at the default withholding (6%) when that started (in addition to still maxing IRA). Anyway, thinking things over after that article and that the ideal case with this money is that it will sit untouched and growing until retirement (but could get at it sooner since I do plan on switching jobs) so it would be better in tax-advantaged state, I crunched some numbers and am planning to bump my 401k withholding to 15% (maybe more) for the rest of 2020 which should offset that leftover savings I was pondering what to do with and can reevaluate in 2021.
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Oct 12, 2020 23:59
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spf3million posted:Several of us are trying out HMBradley. Thanks I need to see if my work allows direct deposit splits. My checking account is currently free due to direct deposit and I’d rather not give that up at the moment.
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Oct 13, 2020 02:11
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I don't recall if this got any answers, so pardon the re-ask: any suggestions for how to calculate how much we should actually have per year once retirement happens? I'm sure it's gonna be "as much as you can" but it'd be best to get an idea of it's something like $70,000/year before Social Security vs. like $100,000/year.
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Oct 14, 2020 16:02
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this is going to be based on what you project your expenses to be in retirement you can use your current expenses, modify as you see fit and is reasonably projectable (eg if you are saving for your kids to go to college, you probably won't be doing that in retirement, you certainly won't be saving for retirement, but you may want to do more travel, and your housing/location may change), and use some inflationary factors and padding numbers. if you plan to retire to say, Emporia, KS and do a little hay farming and just r-e-l-a-x, your projected expenses are going to be very different than if you want your charming little pied-a-terre in New York and to spend a month in St. Anton doing some skiing every winter. it's probably useful to think about what a good retirement looks like to you, and discuss with your partner, so you can be on the same page. doesn't have to be set in stone, but you should be thinking about it and making sure your general expectations are aligned. this was hard for my parents, dad wants to travel a lot and mom doesn't.
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Oct 14, 2020 16:25
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It's not "as much as you can," but it is a budgeting question that heavily depends on your own situation. Will you be renting, paying mortgage, mortgage free? How much do you plan to travel, eat out at restaurants, etc.? There's no one size fits all. You should look at your current annual spend and see what you think would reasonably change during retirement. One big area that could increase would be health care spending. There are probably resources online for estimating that, but I haven't looked into them.
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Oct 14, 2020 16:25
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I haven't been tracking my stuff in YNAB ever since COVID really started rolling  I need to get back on that. Maybe I should start over?I'm still saving up for retirement 'n poo poo. Haven't done much other than sit and wait, especially for this year. I think in theory I could start making designs for owning my own property, but I don't know if it's actually a good idea or not yet, and if I'm not 100% committed then I won't do it.
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Oct 14, 2020 19:21
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Pollyanna posted:I haven't been tracking my stuff in YNAB ever since COVID really started rolling You've currently got an emergency fund and some stock index funds, right? If you're happy with the size of your emergency fund, and you have cash on hand in excess of it, you can return to your prior plan of buying more stock index funds. Covid caused me to reconsider how much of an emergency fund I felt comfortable with, so I put all my extra income into it for a few months, but now I've hit my new number and am back to putting money into index funds with each paycheck. Being 100% committed to owning property before going about the process of owning property seems like a very wise idea to me. I don't own any property and for the foreseeable future I don't plan to.
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Oct 14, 2020 19:41
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So kid #2 on the way. I’m 38 and am active duty military. My wife stays at home with kid #1. We’ve got the gi bill which we can transfer to our kids so that takes care of four years of school. I’ll probably give them each two years of it to keep it fair. Now I’ve got another four years of college I need to fund. I max my 401k and my Roth IRA, plus I’ll have my pension start when I retire at age 44 (I’ll be getting another job, just not military). However, we don’t have a lot of extra money to play with for savings. So, what’s the best play here? Should I do a 529 and start contributing to that with $100 a month or something? I’ve heard a Roth IRA can also be used for education and that has about $60k currently, so maybe that’s the way to go? Open to all ideas here. My wife will eventually go back to work in probably 4 years so that will be more income, but just trying to stay ahead of everything here.
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Oct 14, 2020 19:49
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My emergency fund is currently about [checks] 8.8 months of salary, so I’m probably fine. I ramped up on that due to covid, too, though I’m planning on also saving my IRA money in my HYSA too, so contributions continue. Sometime in January I’m checking my Vanguard account and will adjust via contributions. The only things I’m sure of for owning property is 1. it will not be an investment vehicle (i.e. speculation), and 2. it will not be a method of generating income (i.e. landlording). Everything else I haven’t even really thought of. So, I’m probably just gonna upgrade to a nicer apartment next year.
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Oct 14, 2020 19:53
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nwin posted:So kid #2 on the way. Max her Ira too. I would lean towards starting with flat taxable savings, you're in a good position once you have a pension + other work. What are your goals other than 4 years of tuition?
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Oct 14, 2020 20:34
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nwin posted:Open to all ideas here. My wife will eventually go back to work in probably 4 years so that will be more income, but just trying to stay ahead of everything here. Can you roll your CD into a 529 for the kids and use your GI Bill? The kids have time to get compound interest, you don't.
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Oct 14, 2020 20:41
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Pollyanna posted:My emergency fund is currently about [checks] 8.8 months of salary, so I’m probably fine. I ramped up on that due to covid, too, though I’m planning on also saving my IRA money in my HYSA too, so contributions continue. If you really do want to own property at some point, it's best to think about it now, before you upgrade to a new apartment. Scrounging for a down payment is a lot of work, so if that's really your goal, best to have that in mind before taking on a higher rent somewhere.
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Oct 14, 2020 21:01
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H110Hawk posted:Max her Ira too. Good idea on her IRA-she has a 401k with about $100k from her old job that we haven’t been putting anything towards. Other goals? Probably save for a down payment on a house I guess? We’ve got about 45k in savings, half of which is in a CD that’s ready to mature. cheese eats mouse posted:Can you roll your CD into a 529 for the kids and use your GI Bill? The kids have time to get compound interest, you don't. I’m sure I could put the CD into a 529 once it matures, but I dunno if that would be a good idea with the savings/house down payment idea listed above. I’m not sure what you mean by me using my GI Bill. My wife has a degree and the military paid for a masters degree for me already, so I’m good there.
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Oct 14, 2020 21:04
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Chad Sexington posted:If you really do want to own property at some point, it's best to think about it now, before you upgrade to a new apartment. Scrounging for a down payment is a lot of work, so if that's really your goal, best to have that in mind before taking on a higher rent somewhere. The easiest way is to rent below your means and save save save. That of course requires enough means or things like family support, so I'm def not saying it's available to everyone but if you can, don't waste the chance to make a lot of future stuff much easier.
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Oct 14, 2020 21:27
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nwin posted:Good idea on her IRA-she has a 401k with about $100k from her old job that we haven’t been putting anything towards. In that case I would lay out your budget, sans any ambiguous savings. Then look at that excess money and work out expected timelines to need certain cashflows. Buying a house is sooner than college, so I would suggest saving for that prior to worrying about how to pay for college. And remember, you can always finance college personally - hopefully interest rates on that stuff aren't insane in 18 years. Save for yourself and your retirement first, and start putting excess money away second. Having a lifetime pension is a HUGE step up in this area. Recall that while you will need to pay for 4 total years of college that's GI+HS, GI+HS, 1+GI, 1+GI, 0+1, 0+1 years of college at a time - at no point do you need to come up with more than 1 years tuition at a time assuming a 2 year spread in your kids and that they take the current traditional course through life. If one of them gets the
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Oct 14, 2020 21:29
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529 has to be used for ed vs something like an UGMA / UTMA can be used for other purposes, might be worth keeping in mind if you think there's a chance that college is not for them. I agree that with GI bill you probably don't need to focus too hard on funding 529 right now especially if you (realistically) project that income picture will change for the better significantly in the next couple years. One strategy for homeowners with college age kids is to use a HELOC to pull money as usually it is lower interest than Parent Plus loans. I can't speak to details, only know I have heard of parents doing this.
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Oct 14, 2020 21:32
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H110Hawk posted:In that case I would lay out your budget, sans any ambiguous savings. Then look at that excess money and work out expected timelines to need certain cashflows. Buying a house is sooner than college, so I would suggest saving for that prior to worrying about how to pay for college. And remember, you can always finance college personally - hopefully interest rates on that stuff aren't insane in 18 years. Save for yourself and your retirement first, and start putting excess money away second. Having a lifetime pension is a HUGE step up in this area. Wow-good advice on the college and not needing everything up front. I didn’t look at it from that perspective. I’ll be out of the military in as soon as 5 years from now, so that’s the soonest I would look at buying a house. The places we want to retire aren’t where I could get stationed, so I don’t have the luxury of buying something while I’m in the service and getting the government to partially fund it.
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Oct 14, 2020 21:35
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nwin posted:Wow-good advice on the college and not needing everything up front. I didn’t look at it from that perspective. If the government will fund part of your purchase do you owe that money back when you separate? If not, why not buy one of the houses near base at whatever inflated price they're at and sell it to the next sucker when you leave?
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Oct 14, 2020 21:37
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I don't know how much notice you typically get when getting moved around in the military, but I can definitely see that being an issue if you're trying to sell a house and you've already been stationed elsewhere.
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Oct 14, 2020 21:42
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KYOON GRIFFEY JR posted:529 has to be used for ed vs something like an UGMA / UTMA can be used for other purposes, might be worth keeping in mind if you think there's a chance that college is not for them. I agree that with GI bill you probably don't need to focus too hard on funding 529 right now especially if you (realistically) project that income picture will change for the better significantly in the next couple years. This is correct but there is a bit of latitude for "education expenses" such as computers, books, and lodging. But if kids are older I'm not sure its as useful.
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Oct 14, 2020 21:45
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H110Hawk posted:If the government will fund part of your purchase do you owe that money back when you separate? If not, why not buy one of the houses near base at whatever inflated price they're at and sell it to the next sucker when you leave? The government gives me money to put towards rent or purchasing a house-its part of my pay so I don’t have to pay it back. Basic allowance for housing (BAH). I’m not a huge risk taker and I was in during the financial crisis so I had plenty of friends whom had to short sell their houses because they got transferred and couldn’t find a buyer or renter. I’ve always rented as a result. I know I’ve missed some opportunities but I’ve also avoided a few bad situations.
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Oct 14, 2020 21:47
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I think continuing to rent is wise, having known some military people who got saddled with houses near various bases.
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Oct 14, 2020 22:09
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So back in April I did an extremely dumb loving thing and panicked after watching three weeks of the market plummeting toward the abyss. Decided that I had enough and converted $90,454 of my Roth 401k assets from stocks (iShares Total U.S. Stock Market Index Fund : BKTSX @ $11.43) to bonds (PIMCO Stable Income Fund - Class I), and started stockpiling beans and rice. I've held this position, in this particular retirement account, since then, and have watched the market rocket back up. Currently BKTSX is around $16.56 a share, meaning that I've "lost" around $40,598 since selling. I've continued my automatic post-tax contributions, in BKTSX, throughout this period. I also maintain a Vanguard Roth IRA which I have rolled in all previous retirement accounts, to which I have also continued automatic post-tax contributions. Historically, I have attempted to track the asset mixture of Vanguards VFIFX fund across both accounts (as I am restricted to certain funds within my Roth 401k), but ever since April my asset mix is 6.98% US stocks, 50.9% US bonds, 38.74% International stocks, 3.38% International bonds. I'm way, way outside the VFIFX allocations and dangerously overexposed internationally. My target retirement date is 2050, and I currently have a total of $213,303 in total in these accounts. My wife has $29,968 in her own Roth IRA, same target retirement. My question to the thread is, what do I do now that I have totally thrown my asset mix out the window? Do I bite the bullet and buy back into BKTSX and get my allocations back in line with VFIFX? I envision doing this and then watching the bottom fall out for a second time after the election, so I am somewhat tempted to hold my current positions until after November 3rd, and make a decision then. It seems like the election is almost guaranteed to have some major negative repercussions in the markets no matter who wins, and given that I've waited this long does another month really matter? Should I attempt to reduce my international stocks exposure but hold my US bond positions?
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Oct 15, 2020 02:40
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skybolt_1 posted:So back in April I did an extremely dumb loving thing and panicked after watching three weeks of the market plummeting toward the abyss. Decided that I had enough and converted $90,454 of my Roth 401k assets from stocks (iShares Total U.S. Stock Market Index Fund : BKTSX @ $11.43) to bonds (PIMCO Stable Income Fund - Class I), and started stockpiling beans and rice. I've held this position, in this particular retirement account, since then, and have watched the market rocket back up. Currently BKTSX is around $16.56 a share, meaning that I've "lost" around $40,598 since selling. If all your money was in cash right now, what would you buy / make your allocation be? Just do that. Don’t time the market. Again!!!!
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Oct 15, 2020 02:57
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You should definitely look to put your money back into stocks since you are still fairly young. If you absolutely cannot stomach the idea of putting the money in in one lump sum, you can try dollar cost averaging it over the course of 6 months to 1 year. If you do this, you should hold strict to your dollar cost averaging schedule regardless of whether the market goes up or down. Also, your mind is doing the same thing now about waiting for after the election as it did in April. Historically, elections have not really moved markets significantly: https://www.forbes.com/sites/kristi...s/#4bdafd834f86 (look at the 1 month after graph which shows little effect, even though the author says otherwise). Of course This Time It Could Be Different, but it could also not be. drainpipe fucked around with this message at 03:04 on Oct 15, 2020 |
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Oct 15, 2020 03:01
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skybolt_1 posted:My question to the thread is, what do I do now that I have totally thrown my asset mix out the window? Do I bite the bullet and buy back into BKTSX and get my allocations back in line with VFIFX? I envision doing this and then watching the bottom fall out for a second time after the election, so I am somewhat tempted to hold my current positions until after November 3rd, and make a decision then. It seems like the election is almost guaranteed to have some major negative repercussions in the markets no matter who wins, and given that I've waited this long does another month really matter? Should I attempt to reduce my international stocks exposure but hold my US bond positions? On a more positive note, good job continuing to contribute to your accounts. Yeah, it sucks that you 'lost out' on so much potential growth, but at least you still have that money and can convert it back into stocks when you're ready. Bonds haven't done too poorly within that timeframe, either. Consider it an expensive lesson and move on, it's a mistake we've all made once before. Just don't make the same mistake twice.
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Oct 15, 2020 03:53
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nwin posted:The government gives me money to put towards rent or purchasing a house-its part of my pay so I don’t have to pay it back. Basic allowance for housing (BAH). Sounds good to me. And you will still have your VA loan to buy with on the outside.
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Oct 15, 2020 04:27
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drainpipe posted:One big area that could increase would be health care spending. There are probably resources online for estimating that, but I haven't looked into them. lol
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Oct 15, 2020 07:23
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I'm starting a new job on Monday, that's gonna give me a higher base salary and also equity / RSUs as a part of my total comp. My main goal is probably to buy a house in a couple of years, and my strategy had been saving roughly $2500 a month (so, $30k a year), and on top of that I have roughly $30k saved, so in 2 years I should have $90k in savings plus I can sell some / all of the equity I'll have as necessary plus any money from my girlfriend / partner that she gets as part of her comp. I'll probably house hunting in the south bay area and looking at houses they're around $1mil, so it'd be easy to have at least 10% for a down payment provided housing prices don't get even crazier. I have a plan to max my yearly roth contribution and I'll be contributing 10% of my salary (this won't get me to the 18k max but close) to my 401k while my employer will match around 4%. My questions: 1. For saving for a house, I'd basically been moving my money into a HYS - when I started the account this year, the rate was 1.73%. It's shrunk to .65%. Should I continue using high yield savings, or invest it elsewhere considering the rate sucks? 2. Would it be better in the short term to reduce my 401k contribution for saving for a house then switch back after the purchase? 3. Anything else I'm missing?
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Oct 15, 2020 17:51
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