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timn posted:Save up for a larger emergency fund first if you spook yourself this easily. I mean, that’s what I did? I increased my emergency fund in the presence of what I perceive to be an increased risk. When the increased risk disappeared I put the now excess emergency fund into retirement.
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Jan 22, 2021 03:49
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I do recall putting a bit of play money in UXVY, then getting spooked enough at the concept of leverage to pull out and never touch it again. Which is not to say that leverage is bad - I just don’t understand it well enough to be using it. Nitrousoxide posted:Nah, I just wanted to have money on hand in case poo poo hit the fan. I mean, honestly, I feel you. I avoided contributing to my IRA because I thought the US was going into some deep dark poo poo it’d take decades to pull out of. It still might, but I figured I’d hedge my bets. Pollyanna fucked around with this message at 03:55 on Jan 22, 2021 |
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Jan 22, 2021 03:49
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Truthfully your best bet for your mental health or whatever would be to continually invest over the year instead of waiting for An Event to happen. No it’s not mathematically significant over the long term, and it’s not really a good idea but I like not having shot my shot before the market drops. I LOVED buying cheap stocks in early/mid 2020 but it really doesn’t matter in the long run because the reason I was able to buy cheap stocks in early/mid 2020 meant I was still buying the same stocks when they were near ATHs at the end of the year because time in market > timing market. But I’m in my 20s, I’m hosed anyways.
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Jan 22, 2021 03:58
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If your efund is small enough that events like that cause you to increase it, you should probably have a bigger efund. It's easy enough to be satisfied with a small cushion when things are going well, but that's not what it's for. It's for the bad times. You shouldn't be happy with the size of your fund in good times, you should be slightly uncomfortable with the size being too big. That way when SHTF it's actually enough.
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Jan 22, 2021 06:12
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Pollyanna posted:I do recall putting a bit of play money in UXVY, then getting spooked enough at the concept of leverage to pull out and never touch it again. i mean, something like uvxy literally is a short term play. it’s expected to drop massively all the time forever except for a few brief spikes upwards i don’t think the volatility decay is what’s killing you on this long term investment:  in fact, the volatility decay is working in your favor so that you’d only be at -82% cagr instead of -150% cagr that a naive person would expect from leveraging vixy fart simpson fucked around with this message at 07:00 on Jan 22, 2021 |
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Jan 22, 2021 06:48
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Etuni posted:The best gift you can give your children is your own financial independence. They can take out loans for their college, you can’t take out loans for food/housing in your old age. Better to fund your own retirement first, so they won’t have to take care of themselves AND you once they get their first job. I know this is a popular opinion but I get the vibe that kids would rather have their parents help pay for their college education. Just a hunch.
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Jan 22, 2021 09:20
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laxbro posted:529 plans are for the wealthy. Prioritize retirement. You can cash flow or take loans out when it’s tuition time. Congrats on being wealthy and having a 529 and being wealthy I guess. (USER WAS PUT ON PROBATION FOR THIS POST)
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Jan 22, 2021 09:22
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ranbo das posted:If your efund is small enough that events like that cause you to increase it, you should probably have a bigger efund. It's easy enough to be satisfied with a small cushion when things are going well, but that's not what it's for. It's for the bad times. My efund is enough for 6 months at current expense levels.
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Jan 22, 2021 13:32
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zaurg posted:I know this is a popular opinion but I get the vibe that kids would rather have their parents help pay for their college education. Just a hunch. That's because at age 18 or whatever the kid is thinking about how they are going to pay for college because it's the next big challenge in front of them. They're not thinking about when they're 35 and Mom and Dad are retiring without enough money in the bank to see them through.
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Jan 22, 2021 13:40
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Kind of a follow up from my last question about the 401k being terminated now that its official. I have a SIMPLE IRA from a previous job >3 years ago that I still have around that was never rolled into my current 401k. HR is saying that we have to either rollover our 401k to something else or possibly take a tax hit. If I roll everything to the SIMPLE will I then be able to roll THAT over to a new employers 401k without penalty? This poo poo is maddening as I really just intended to roll everything over to my new employers retirement once I secured a new job but that may be happening sooner than I anticipated. Plan terminations are a real fucker it seems like.
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Jan 22, 2021 15:58
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Can I ask why you don't want to keep control over the money yourself in an IRA? The only reason I can really think of is backdoor roth reasons.
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Jan 22, 2021 16:18
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I figured 1 big snowball was better than a couple smaller snowballs.
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Jan 22, 2021 16:25
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Rolling it in to your SIMPLE IRA would be fine. So would opening up a rollover IRA at vanguard and dumping the funds there. Just don't end up taking it as a distribution with the tax and penalty associated.
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Jan 22, 2021 17:14
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George H.W. oval office posted:I figured 1 big snowball was better than a couple smaller snowballs. Money fully in your control is better than money not fully in your control.
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Jan 22, 2021 17:46
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I'm at the point where I've maxed out pre-tax contributions and paid off all debts, have 20% savings of a home, etc, and can start investing post-tax dollars. So far I've just been plugging everything into target date funds in my 401k, Roth and HSA. Am I doing anything really tax inefficient or regretful by just putting all post tax investments into a target fund as well? I'm willing to get more involved if it would actually be beneficial, but I've also found psychologically it's better to keep it simple, or I start psyching myself out with all the fluctuations this year (really should have started post -tax investment last January, but didn't, and now I'm cash heavy).
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Jan 22, 2021 19:51
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fenixwb posted:Am I doing anything really tax inefficient or regretful by just putting all post tax investments into a target fund as well? If you want to keep things relatively easy, I would put all post tax into a split of US total stock and International total stock (so just 2 index funds). You can up the bond portion of your allocation elsewhere by switching to an earlier target date fund (say from 2040 to 2035) if you want to make it more conservative to balance out your all-stock taxable portfolio. The more you slice and dice, the more you can control things like tax loss harvesting or just taxes in general when you end up selling, since each lot you buy will have a different tax impact. It's a tradeoff of control vs. laziness.
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Jan 22, 2021 21:29
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I've got 2 small 401ks and 1 big one from my past 3 jobs. I'm planning on rolling the small ones into the big one, but just out of curiosity is there any financial benefit to this or is just for the sake of convenience?
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Jan 23, 2021 00:15
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is pepsi ok posted:I've got 2 small 401ks and 1 big one from my past 3 jobs. I'm planning on rolling the small ones into the big one, but just out of curiosity is there any financial benefit to this or is just for the sake of convenience? You might have some advantage there if the big one has lower fees or general better plan offerings, but there's no intrinsic benefit.
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Jan 23, 2021 00:41
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So the Mega Millions is up to a billion dollars. Who's fantasizing about maxing out all their retirement accounts if they have the winning numbers?
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Jan 23, 2021 01:36
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TITTIEKISSER69 posted:So the Mega Millions is up to a billion dollars. Who's fantasizing about maxing out all their retirement accounts if they have the winning numbers? If “maxing out retirement” means “immediately retiring* and disappearing to an island” then yeah we are on the same page. *after contracting a law firm to make sure I can anonymously claim the winnings and then stay at work a few months so the timing is not suspicious
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Jan 23, 2021 02:02
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is pepsi ok posted:I've got 2 small 401ks and 1 big one from my past 3 jobs. I'm planning on rolling the small ones into the big one, but just out of curiosity is there any financial benefit to this or is just for the sake of convenience? Are you even allowed to rollover funds into a former employer's plan? They're usually lowkey pushing you to roll your funds out. Unless you mean roll them all into your current 401k then nevermind.
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Jan 23, 2021 02:02
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fart simpson posted:all of the leveraged etf versions of big index funds have done well since inception All the leveraged etf versions of big index funds were launched in like 2009.
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Jan 23, 2021 02:46
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doingitwrong posted:All the leveraged etf versions of big index funds were launched in like 2009. sso launched in 2006 
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Jan 23, 2021 09:01
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So whose coworker went all-in with their retirement fund in gamestop? Just gotta pick when it's going to peak..
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Jan 23, 2021 09:50
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totalnewbie posted:So whose coworker went all-in with their retirement fund in gamestop? Just gotta pick when it's going to peak.. Seeing people gamble on WSB poo poo with retirement accounts is very funny to me. Brokers should absolutely build in the price is right horn when people make stupid bets and lose half their lifetime's tax-deferred retirement savings because of a reddit post.
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Jan 23, 2021 10:41
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TITTIEKISSER69 posted:So the Mega Millions is up to a billion dollars. Who's fantasizing about maxing out all their retirement accounts if they have the winning numbers? A billion is an insane amount of money, arguably more trouble than it’s worth. But I would definitely roll around reminding everyone that they should pull themselves up by their bootstraps like I did.
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Jan 23, 2021 15:33
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fart simpson posted:sso launched in 2006 I went heavy into SSO in 09, it paid off but was stupid as hell.
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Jan 23, 2021 15:41
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moana posted:You're talking about in a taxable brokerage account? Yeah, a target date fund is inefficient. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement Thanks for that link. That's exactly the info I had scoured the internet for before posting, but just couldn't seem to find in an organized way.
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Jan 23, 2021 16:25
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fenixwb posted:Thanks for that link. That's exactly the info I had scoured the internet for before posting, but just couldn't seem to find in an organized way. when in doubt check Bogleheads
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Jan 23, 2021 16:48
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I usually get tax forums for savings accounts if they’ve made over $10 for the year. But do I get tax forums for money that I placed into the market (ETFs / mutual funds / a few individual stocks), which I haven’t sold, but have made money? I know I’ll have to pay capital gains tax when I sell, which should generate a tax form. Last year was the first time I placed money into the market that wasn’t a ROTH IRA or a 401k, which is the reason for the newbie question.
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Jan 23, 2021 19:11
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obi_ant posted:I usually get tax forums for savings accounts if they’ve made over $10 for the year. You only get a tax form for gains when you realize them. This means sell, most of the time, and only in a taxable account. Your roth literally never pays taxes again, and the 401k only on withdrawal.
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Jan 23, 2021 19:12
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It'll be a 1099b that you get, probably in the "tax documents" section of the brokerage website. But yeah, nothing until you actually sell something and realize the gains. You can check your unrealized gains report to see what you would be paying if you sold.
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Jan 23, 2021 19:19
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moana posted:It'll be a 1099b that you get, probably in the "tax documents" section of the brokerage website. But yeah, nothing until you actually sell something and realize the gains. You can check your unrealized gains report to see what you would be paying if you sold. He mentioned mutual funds/ETFs, so it's possible to have sold nothing but still have realized gains from moves the fund(s) made which of course will result in a 1099b as well.
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Jan 23, 2021 19:24
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obi_ant posted:I usually get tax forums for savings accounts if they’ve made over $10 for the year. If those funds paid any dividends you'll get a form for that you will have to pay tax on.
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Jan 23, 2021 19:32
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Motronic posted:He mentioned mutual funds/ETFs, so it's possible to have sold nothing but still have realized gains from moves the fund(s) made which of course will result in a 1099b as well. Does this include automatically reinvested dividends from a mutual fund like VTSAX?
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Jan 23, 2021 20:46
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zaurg posted:Does this include automatically reinvested dividends from a mutual fund like VTSAX? Yes, dividend reinvestment is two transactions: 1) receiving the cash dividend and 2) buying more shares with that cash. Brokers just automate it for you. The first part is where the tax is, and you'll receive a 1099-DIV for it.
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Jan 23, 2021 20:48
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Guinness posted:The first part is where the tax is, and you'll receive a 1099-DIV for it. Yeah, I was thinking only about the fund selling securities and forgot about the dividend part. So yeah....both. I actually don't remember which 1099-whatever I see those on, but I know it's part of my tax liability.
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Jan 23, 2021 21:13
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H110Hawk posted:You only get a tax form for gains when you realize them. This means sell, most of the time, and only in a taxable account. Your roth literally never pays taxes again, and the 401k only on withdrawal. This bears repeating since it can be especially confusing at first. Roth and 401k are orthogonal concepts. You can have traditional and Roth IRAs, and you can have traditional and Roth 401ks. Traditional vs. Roth pivots on tax treatment, while IRA vs. 401k pivots on account type and who's offering/controlling it. That said, most 401k contributions are to traditional accounts, whereas IRA contributions are common for both traditional and Roth depending on the person's income and access to other retirement account types through their employer.
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Jan 23, 2021 21:27
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My wife has a mutual fund she inherited from her grandma that's managed by a local firm. Is there a way to transfer it into her Vanguard account? It's split across 3 funds and we're trying to consolidate while eliminating fees. Would she have to cash it out and pay tax before reinvesting?
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Jan 23, 2021 21:50
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My broker (europe tho) sends me a pdf every year which says what I need to declare, and iirc they also inform the tax agency so I usually don't even have to enter anything, just press next on the tax app
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Jan 23, 2021 22:05
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