|
spwrozek posted:Arguably keep your international exposure in your taxable account. Here is a write up on tax efficiency. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement If I'm currently in a lower tax bracket, would it really be best to move my international holdings to my taxable account? Seems like it would be slightly less convenient, if nothing else.
|
#
?
Nov 3, 2020 04:51
|
|
|
|
| # ? May 30, 2024 04:08 |
|
|
pmchem posted:those assumed inflation and investment returns are probably too large for the next decade or so. how’s it look at 1.7% inflation and 5% returns? The relative positions of the various types of invest wouldn’t change. The loans get 2.3% less interest for the same relative positions. Ie the 9.5% loan to beat 401k matching becomes 7.2%. Overpaying car/house loans starts to look attractive, but you can refinance those to 2.75% now anyway.
|
|
#
?
Nov 3, 2020 07:24
|
|
|
I'll be permanently leaving the US in about 6 months after my work visa ends. I have a Roth 401k. If I withdraw what's in it when I leave do I just pay the 10 percent penalty and take home 90 percent of what's in there, or do I pay any additional taxes or other fees?
|
|
#
?
Nov 3, 2020 18:02
|
|
|
After reading about the issues with Beam, as a test I initiated a $10k transfer out of my new HMBradley account to my Chase checking account to see how long it took. I initiated the transfer on Saturday 10/31 and it showed up in Chase on 11/2. Feel pretty ok with that.
|
|
#
?
Nov 3, 2020 21:19
|
|
|
I can also confirm that I got my first interest payment from Bradley. And it's what I expected for my first month given how much I transferred in .
|
|
#
?
Nov 3, 2020 21:22
|
|
|
spf3million posted:After reading about the issues with Beam, as a test I initiated a $10k transfer out of my new HMBradley account to my Chase checking account to see how long it took. I initiated the transfer on Saturday 10/31 and it showed up in Chase on 11/2. Feel pretty ok with that. My biggest concern with them (besides their direct deposit requirements, which restrict me from using them) is if they can really keep offering 3% on up to literally this big fucked around with this message at 22:23 on Nov 3, 2020 |
|
#
?
Nov 3, 2020 21:25
|
|
|
MagicBoots posted:My employer just added some kind of advisor to our 401k that charges 0.5% of our total balance per quarter. I asked about an in-service rollover to my IRA and apparently that isn't allowed under our plan, so my savings are just stuck I guess? It might not be easy for you to jump jobs but if my employer signed me up for some fuckers to steal 2% of my largest retirement savings account annually I'd quit that day and do so very loudly. That's worse than the very worst ERs we've seen from the worst 401(k) plans ever posted in this thread going back many many years, and that's really saying something.
|
|
#
?
Nov 3, 2020 21:32
|
|
|
literally this big posted:If there actually were to be any issues, they likely wouldn't show until HM Bradley started to become insolvent, or began to have financial troubles. They'd want to keep up the facade long enough to lull everyone into a false sense of security and maximize the amount of cash deposited with them before declaring bankruptcy.
|
|
#
?
Nov 3, 2020 21:42
|
|
|
literally this big posted:If there actually were to be any issues, they likely wouldn't show until HM Bradley started to become insolvent, or began to have financial troubles. They'd want to keep up the facade long enough to lull everyone into a false sense of security and maximize the amount of cash deposited with them before declaring bankruptcy. Agreed here. At least everything when you link it shows Hatch Bank (routing, etc). I am going to guess that the 3% will maybe last a year? It will pull in more money, allow the building of other products, and then start to ratchet it back based on what actual rates are. By keeping deposits high I would think it would give them more lending options though.
|
|
#
?
Nov 3, 2020 22:41
|
|
|
Leperflesh posted:It might not be easy for you to jump jobs but if my employer signed me up for some fuckers to steal 2% of my largest retirement savings account annually I'd quit that day and do so very loudly. That's worse than the very worst ERs we've seen from the worst 401(k) plans ever posted in this thread going back many many years, and that's really saying something. Better way to think of it is that they are stealing as much as 30% of your gains every year!
|
|
#
?
Nov 3, 2020 22:43
|
|
|
spwrozek posted:Agreed here. At least everything when you link it shows Hatch Bank (routing, etc). I don't understand why this matters. Unless you are 100% positive that is YOUR account at Hatch Bank the FDIC insurance doesn't apply to you. Why wouldn't this be just like the other place: a sweep account owned by the company you are "investing" with.
|
|
#
?
Nov 3, 2020 23:17
|
|
|
Motronic posted:I don't understand why this matters. Unless you are 100% positive that is YOUR account at Hatch Bank the FDIC insurance doesn't apply to you. Why wouldn't this be just like the other place: a sweep account owned by the company you are "investing" with. Fair question. From the way stuff reads it is your account opened at Hatch but maybe I am wrong. I will still try it out with some money and see.
|
|
#
?
Nov 3, 2020 23:39
|
|
|
literally this big posted:My biggest concern with them (besides their direct deposit requirements, which restrict me from using them) is if they can really keep offering 3% on up to We'll see how it plays out. But I think very few people will get the 3% all year with large balances. First, you need to be able to DD and, ideally, split DD (I get the impression this is rare). Second, you need to be net saving 20% per quarter of the money that they see. Third, you need to be saving that money without a better place to put it (why aren't you putting in into your IRA or other long term savings vehicle?). Fourth, eventually you take some of the money out and that'll lower your APR to 0.5% or 0% for the next quarter. The optimal strategy is to dump some emergency savings in there, have a split DD that bleeds a tiny % of your paycheck in, let it grow to $100,000, and then take out all the money, have it somewhere else for a quarter hopefully earning something, while building up your savings tier again and move $90,000 or so of it back, let it grow etc. That's huge hassle and my bet is that their models have them counting on most customers not being optimal and instead using it as a checking account that sometimes gives high interest and sometimes does not depending on how well mid-term saving is going.
|
|
#
?
Nov 3, 2020 23:54
|
|
|
spwrozek posted:Fair question. From the way stuff reads it is your account opened at Hatch but maybe I am wrong. I will still try it out with some money and see. I mean, best of luck. But you won't know unless an until something bad happens. I simply don't understand the business model of open account at other bank on your behalf, make you talk to us to talk to that bank and we give you more money. Where is the money coming from? What could they possibly be doing to make any money if your cash is in an FDIC insured cash account under your control (FBO) even indirectly? Makes no sense. But maybe I'm missing something.
|
|
#
?
Nov 4, 2020 00:17
|
|
|
Trying to understand the withdrawal rules for backdoor and megabackdoor Roths. Example Scenarios: A) Backdoor Roth - $5k converted from Trad IRA to Roth IRA on 7/1/2020. B) Megabackdoor Roth - $20k converted from After-tax 401k to Roth IRA on 9/1/2020. Q1) When is the earliest one would be able to withdraw penalty-free from each of the above? Is it (date + 5 years)? Q1) Suppose that 5 years after these conversions, balances are now $6k and $24k and person's age is like 30 or something. What is the maximum amount that can be withdrawn penalty-free? Is it 5k and 20k?
|
|
#
?
Nov 4, 2020 04:25
|
|
|
Motronic posted:I mean, best of luck. But you won't know unless an until something bad happens. It’s burning VC money on customer acquisition. It’s part of the new Fintech startup boom. https://www.explorebit.io/article/L...allenger%20bank Hatch Bank is a real FDIC bank. https://research2.fdic.gov/bankfind...ame=false&tabId Their business model is to partner with Fintech companies. https://a16z.com/2020/06/11/the-partner-bank-boom/
|
|
#
?
Nov 4, 2020 13:30
|
|
|
doingitwrong posted:It’s burning VC money on customer acquisition. It’s part of the new Fintech startup boom. Not a single word of any of that explains how HM Bradley makes money. "Wealth transfer from VCs" is not a long term business plan. It's what the founders do to get rich. Also, none of it describes the banking relationship between an HM Bradley customer, HM Bradley and Hatch. So I'll ask again to make sure: did I miss something?
|
|
#
?
Nov 4, 2020 16:59
|
|
|
UnfurledSails posted:I'll be permanently leaving the US in about 6 months after my work visa ends. So lucky!
|
|
#
?
Nov 4, 2020 19:58
|
|
|
Motronic posted:Not a single word of any of that explains how HM Bradley makes money. "Wealth transfer from VCs" is not a long term business plan. It's what the founders do to get rich. No, I don't think you did. They appear to have some kind of plan to market credit cards to their users but that doesn't seem like it would overcome the extra cost of interest. I think there are two questions: 1. Is this a sustainable business model or better understood as a customer acquisition teaser rate that has an expiry? 2. Will I safely get my money back out If I decide I move on to another bank? I am more worried about the 2nd than the 1st. If this is more like Beam, then the answer to 2 is "no" if this is more like Marcus or Ally then the answer to the 2nd is "yes" but probably the answer to 1. is "it's a teaser".
|
|
#
?
Nov 4, 2020 20:17
|
|
|
zaurg posted:So lucky! help me with my financial question zaurg
|
|
#
?
Nov 5, 2020 03:09
|
|
|
UnfurledSails posted:help me with my financial question zaurg Get money Put money in stonks Watch the gainz Not sure what comes after that. Spend it I guess.
|
|
#
?
Nov 5, 2020 16:35
|
|
|
 can’t even read
|
|
#
?
Nov 5, 2020 17:11
|
|
|
I can barely remember the past several years because 2020... has been quite eventful. Time for a curiosity question. What did I miss from this dumb image of mine? I can't recall with confidence what happened during the previous years. I was trying to understand the impact of world events on my measly retirement portfolio. All I ever do is keep chipping away no matter what so that I'm always buying during those tough, discount periods that many people can't stomach.  I also love letting my long-term mindset gaze at the ups and downs. Curious to see how it'll look further down the line.
|
|
#
?
Nov 6, 2020 06:35
|
|
|
Jamfrost posted:I can barely remember the past several years because 2020... has been quite eventful. Time for a curiosity question. Are we just talking about things? Cause my friends and I have a rolling list going in no particular order... Australia is on fire, the pope slapped some woman, WW3 (Iran), RIP Kobe, murder hornets, Wakanda Forver, Lebanon boom, California is hell, RIP RBG, Trump gets THE VIRUS and is high on steroids.
|
|
#
?
Nov 6, 2020 07:09
|
|
|
I completely forgot about Australia turning into ash and the California wildfires. And I live in the latter. That's a good list.
|
|
#
?
Nov 6, 2020 07:14
|
|
|
Jamfrost posted:I completely forgot about Australia turning into ash and the California wildfires. And I live in the latter. That's a good list.
|
|
#
?
Nov 6, 2020 07:38
|
|
|
obi_ant posted:Are we just talking about things? Cause my friends and I have a rolling list going in no particular order... Pope did what?!
|
|
#
?
Nov 6, 2020 10:56
|
|
|
I think he's talking about the time that a woman grabbed on to him when he was greeting people and refused to let go so he gave her a light slap to basically say it let go
|
|
#
?
Nov 6, 2020 17:06
|
|
|
Did she turn the other cheek?
|
|
#
?
Nov 6, 2020 18:13
|
|
|
Here is a challenge from an extremely working class immigrant household (hiii, nice to meet you:) What would you say to a 63-year old lady (about 2.5 years from retirement) who has been recommended to move about 60% of her very modest 401K to a fixed indexed annuity for about 10 years? Details- The financial advisor is a full-time fiduciary and also sells life insurance. The product itself is through F&G Life Insurance and is supposed to have no fees, with 10% of the account value available without a surrender charge. The financial advisor says on average the account would accrue 4-5% which is also modest but low-risk, ensuring that none of what has been taken from the 401K is lost. The idea would be to work as long as possible without touching the annuity until the 10 years are up, at which point they could supplement social security income. TLDR: seemingly legit financial advisor gives advice about fixed indexed annuity tailored to circumstances for immigrant woman close to retirement; without being able to understand all of the small print I thought to ask about anyone's knowledge about this kind of policy. I have the specific name of the policy if at all useful. Thank you for reading through and if you're able to HALP! 
|
|
#
?
Nov 6, 2020 18:45
|
|
|
Not a financial advisor but I would bet serious money that guy is making 5 to 7% commission on that annuity and it's not the best path forward. Generally annuities bad ideas for all but very specific people which I'm betting she's not. red flag # 1 is having her move money out of her 401k to buy said annuity. There's other ways to guard against losses right now. How much we talking about? mid 5 figures? low 6?
|
|
#
?
Nov 6, 2020 20:03
|
|
|
Residency Evil posted:Pope did what?! https://www.youtube.com/watch?v=3WySwhj2SwE
|
|
#
?
Nov 6, 2020 20:40
|
|
|
He's a "financial advisor" which this thread preaches to avoid since they are in the gig to make money for themselves/their company, yet is somehow also a fiduciary which this thread preaches to follow since they are obliged to work in your best interests? I think in any case his pitch is from his side gig of selling insurance, and his fiduciary responsibilities are probably just for a company and not for customers on the street.
|
|
#
?
Nov 6, 2020 20:44
|
|
|
TITTIEKISSER69 posted:He's a "financial advisor" which this thread preaches to avoid since they are in the gig to make money for themselves/their company, yet is somehow also a fiduciary which this thread preaches to follow since they are obliged to work in your best interests? But is he a Certified Financial Planner?
|
|
#
?
Nov 6, 2020 21:00
|
|
|
TITTIEKISSER69 posted:He's a "financial advisor" which this thread preaches to avoid since they are in the gig to make money for themselves/their company, yet is somehow also a fiduciary which this thread preaches to follow since they are obliged to work in your best interests? Financial advisors are extremely not fiduciaries. They are the financial equivalent of used car salesmen. I think some can potentially maybe be, but they make less money, so none are. As a general rule.
|
|
#
?
Nov 6, 2020 21:02
|
|
|
BigHead posted:Financial advisors are extremely not fiduciaries. They are the financial equivalent of used car salesmen. I agree with that, just having trouble reconciling this: dontgetbanned posted:The financial advisor is a full-time fiduciary and also sells life insurance. Maybe the guy actually isn't a fiduciary at all? I just figured it was a separate job title for a corporate role.
|
|
#
?
Nov 6, 2020 21:10
|
|
|
Thanks so much everyone!skipdogg posted:Not a financial advisor but I would bet serious money that guy is making 5 to 7% commission on that annuity and it's not the best path forward. Generally annuities bad ideas for all but very specific people which I'm betting she's not. pretty low  70 thousand in total, so 40K would go to the annuity. Advisor was saying that the annuity would essentially help to grow that amount more quickly than a CD or savings account and is all we can afford without risking more.-- Regarding the title, the advising group's website lists him as holding a "series 65 securities license and operating as a full-time fiduciary." The SEC has him listed as an investment adviser but not as a broker, which was encouraging at first but now, maybe not so much? edit: in my ignorance I assumed financial and investment advisers were interchangeable and apologize for that confusion. dontgetbanned fucked around with this message at 21:46 on Nov 6, 2020 |
|
#
?
Nov 6, 2020 21:30
|
|
|
I'll defer to Moana or someone more knowledgeable in the thread, but my "just a stranger on the internet" opinion is that is a really bad idea. There should be some vehicle available in the 401K with very little to no risk. Will it return 5%? Probably not, but I doubt that annuity will either.
|
|
#
?
Nov 6, 2020 21:42
|
|
|
skipdogg posted:I'll defer to Moana or someone more knowledgeable in the thread, but my "just a stranger on the internet" opinion is that is a really bad idea. There should be some vehicle available in the 401K with very little to no risk. Will it return 5%? Probably not, but I doubt that annuity will either. Yeah, you narrowed down what i'm having the hardest time with - is 4-5% a reasonable expectation of a fixed annuity or is there anything we should look for within the policy to make sure the option is doing what this adviser says it will. I just didn't know if anyone might have experience with a fixed indexed annuity or any other option that offers safe returns.
|
|
#
?
Nov 6, 2020 23:08
|
|
|
|
| # ? May 30, 2024 04:08 |
|
|
A fixed index annuity is very very terrible. They have caps on gains, spread fees they don't ever explain, and the index is tied to PRICE of stock, which includes zero dividend payout (which is like, half the returns of stock). Run like the loving wind. Don't try to make investing "safe", you're going to get skewered. They neutered Obama's fiduciary rule so dealers like this only have to meet "suitability" standards for their bullshit products. To talk to a real advisor, search through napfa.org and feel free to link whoever you find here so we can tell you if they are bullshit or not. Honestly, most real advisors won't take you on as a client because part of our fiduciary duty means not taking clients who can't afford the fees (if she can find someone willing to do a one time retirement review, that would probably be her best bet).
|
|
#
?
Nov 6, 2020 23:37
|
|
