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Herr Tog posted:Thank you so much, could I move it to a trad IRA with a credit union and still pick stocks I am invested in? It will be a trad IRA rollover account. I think most of use would suggest Vanguard, Fidelity, or Schwab. Your credit union may or may not have an investment division and it is probably high cost even if they do. You can pick stocks for sure. just will cost you money and increase your risk.
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Feb 5, 2021 19:47
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Space Gopher posted:What you're asking here isn't very clear. Thank you, sorry. I meant the last one, into an IRA. I forgot to mention the 'I do not want to take direct possession of the funds'.
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Feb 5, 2021 19:48
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In a taxable account that I’m just sticking extra money after maxing out 401k, is there any real difference between choosing between ETFs or mutual funds (specifically vtsax and vti)? I see vti has negligibly lower expense and is a little more flexible to trade but vtsax would be easier to just auto file money away regularly and reinvest dividends? As far as I can tell, that’s basically the only difference and they’re otherwise identical. Its money I won’t need to touch for awhile so I’d like to put to work.
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Feb 5, 2021 19:50
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Herr Tog posted:Thank you so much, could I move it to a trad IRA with a credit union and still pick stocks I am invested in? Others will undoubtably comment on the stock picking aspect of this, but just to note two things 1) Don't do this if you might ever want to do backdoor Roth IRAs. You'll get a tax hit in the conversion. 2) In the unlikely case you get sued or declared bankruptcy, 401ks have stronger legal protection than IRAs.
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Feb 5, 2021 19:50
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spwrozek posted:It will be a trad IRA rollover account. I think most of use would suggest Vanguard, Fidelity, or Schwab. Your credit union may or may not have an investment division and it is probably high cost even if they do. Thank you, I will look into opening a Vanguard account since they seem cheap and good.
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Feb 5, 2021 19:51
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Vlonald Prump posted:I do (for real) apologize for not realizing y'all are trying to keep the discussion here strictly about 401ks and bonds etc though. I'll stop spamming up your thread now.
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Feb 5, 2021 19:51
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Small White Dragon posted:Others will undoubtably comment on the stock picking aspect of this, but just to note two things thank you too
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Feb 5, 2021 19:56
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Vlonald Prump posted:I posted in this thread because the other thread is full of noise about meme stocks and because I DON'T known how to tell which companies are undervalued and wanted advice about that, and wanted to spark a discussion about taking long-term advantage of the biggest mass vaccination push in human history more generally. Have you considered the possibility that "taking long-term advantage of the biggest mass vaccination push in human history" caries the same relevance as "noise about meme stocks" when it comes to valuation theory? Whoever posted upthread the analogy about the orange juice was spot on. Seeing as how you only listen to advice if a Real Doctor(Tm) recommends it, go read Bernstein's Four Pillars of Investing (Or any of his other works, Four Pillars might be too entry-level for someone of your vast intellect)
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Feb 5, 2021 19:56
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King of all Machines Operate posted:In a taxable account that I’m just sticking extra money after maxing out 401k, is there any real difference between choosing between ETFs or mutual funds (specifically vtsax and vti)? I see vti has negligibly lower expense and is a little more flexible to trade but vtsax would be easier to just auto file money away regularly and reinvest dividends? As far as I can tell, that’s basically the only difference and they’re otherwise identical. Its money I won’t need to touch for awhile so I’d like to put to work.
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Feb 5, 2021 19:58
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What’s the implication of putting a majority of my checking account balance into a brokerage account instead? That I cannot use those funds without waiting 1-3 days to transfer back what I need to my checking account? Why do people opt for a high yield savings account over a brokerage account? So they can make emergency withdrawals without waits? Based on my limited research, the lowest effort path here is to place my money in a vanguard brokerage acct and invest in VFISX
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Feb 5, 2021 20:00
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Herr Tog posted:Thank you so much, could I move it to a trad IRA with a credit union and still pick stocks I am invested in? Picking stocks as an individual investor with no insider information is gambling. (Picking stocks as an individual investor with insider information is also gambling, but the downside is less "go broke" and more "go to jail") If you want to play around with stock picking, great, but please don't use the same money that's earmarked for "not eating cat food in old age." King of all Machines Operate posted:In a taxable account that I’m just sticking extra money after maxing out 401k, is there any real difference between choosing between ETFs or mutual funds (specifically vtsax and vti)? I see vti has negligibly lower expense and is a little more flexible to trade but vtsax would be easier to just auto file money away regularly and reinvest dividends? As far as I can tell, that’s basically the only difference and they’re otherwise identical. Its money I won’t need to touch for awhile so I’d like to put to work. They're very very close to each other. ETFs are a hair more tax efficient, because you're generally not exposed to taxable capital gains in the underlying fund like you are with a mutual fund investment. But it's typically easier to set up recurring auto-investments with mutual funds, because you don't need to worry about fractional shares, and the tax impact is pretty marginal. Personally, I like the no-touch convenience that VASGX gives me. My employer direct deposit sends a chunk to Vanguard, then a standing auto-invest sweeps money from my settlement account into the fund twice a month. I could eke out a tiny bit better performance with ETFs, but there's a lot more convenience for not a lot more money.
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Feb 5, 2021 20:01
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King of all Machines Operate posted:In a taxable account that I’m just sticking extra money after maxing out 401k, is there any real difference between choosing between ETFs or mutual funds (specifically vtsax and vti)? I see vti has negligibly lower expense and is a little more flexible to trade but vtsax would be easier to just auto file money away regularly and reinvest dividends? As far as I can tell, that’s basically the only difference and they’re otherwise identical. Its money I won’t need to touch for awhile so I’d like to put to work. You are almost entirely correct. VTSAX allows you to automatically contribute on a set-and-forget basis, and VTI does not. Either will allow you to automatically reinvest dividends.
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Feb 5, 2021 20:01
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Thom ZombieForm posted:What’s the implication of putting a majority of my checking account balance into a brokerage account instead? That I cannot use those funds without waiting 1-3 days to transfer back what I need to my checking account? Why do people opt for a high yield savings account over a brokerage account? So they can make emergency withdrawals without waits? Based Your checking account won't ever crash 50% in value. Keep your emergency fund separate from your investing.
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Feb 5, 2021 20:01
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Investing in your career is a real thing. US based doctors have big salaries and very little free time. Passive index funds let you focus on your career (while also being just better long-term), which will get you way more gains than stock market fuckery unless you're already loaded. Your life is already going to be busy enough, don't add financial stress to it
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Feb 5, 2021 20:02
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Some of my friends are trading meme stocks in their IRAs. Is this something that is as horrifying as I think, gambling with irreplaceable tax advantaged space? I do my gambling in a taxable account as god intended, so I was thrown off to hear them doing this and wanted to confirm that yes, that is a suboptimal strategy relative to my degeneracy.
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Feb 5, 2021 20:06
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crazypeltast52 posted:Some of my friends are trading meme stocks in their IRAs. Is this something that is as horrifying as I think, gambling with irreplaceable tax advantaged space? Yes.
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Feb 5, 2021 20:17
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how else you gonna get the Willard Romney 100mil IRA?
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Feb 5, 2021 20:22
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I had about $3500 sitting in a money market fund with Vanguard that I didn't realize (haven't checked in a long time). It was sitting there doing nothing so yesterday I transferred $1500 to both my VTSAX and VASGX. However, the money market fund (VMMXX) is not open to new investors. So I can't add any money back into it. I can't find it now but there was an option to transfer it to an Admiral Fund(?). You need $3000 minimum to open one though. Anyone familiar with Vanguard know what an Admiral fund is and if I need it? Sorry, I don't know anything about long term trading besides throwing it into Vanguard funds and letting them take care of everything for me... which has worked out amazingly so far.
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Feb 5, 2021 20:29
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crazypeltast52 posted:Some of my friends are trading meme stocks in their IRAs. Is this something that is as horrifying as I think, gambling with irreplaceable tax advantaged space? Yes. Everyone should develop a deep aversion to gambling with their 401k or IRA. Once you normalize it, even if it’s only a small portion of it, then you’ve already lost. All it will take is one “bad beat” for you to tilt and blow the rest of the account. Or you get greedy and are swept in some sort of bubble like GME. It might go well at first but it is very likely to go poorly at some point over a long lifespan.
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Feb 5, 2021 20:52
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laxbro posted:Yes. Everyone should develop a deep aversion to gambling with their 401k or IRA. Once you normalize it, even if it’s only a small portion of it, then you’ve already lost. All it will take is one “bad beat” for you to tilt and blow the rest of the account. Or you get greedy and are swept in some sort of bubble like GME. It came up in a group chat and I was low key horrified, and then more people said they do it so I am actively horrified now. Their money to lose, but guh
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Feb 5, 2021 20:54
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Pennywise the Frown posted:
Admiral funds have a lower expense ratio in exchange for a minimum amount to invest (used to be $10,000, I think the bar's been lowered to $3,000 in most cases). Once you cross that minimum threshold you can make smaller contributions. Yes, go for the Admiral version whenever possible.
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Feb 5, 2021 20:56
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KYOON GRIFFEY JR posted:how else you gonna get the Willard Romney 100mil IRA? I'm genuinely curious on how the mechanics of the 100mil IRA worked. Does Bain have some sort of special IRA that Mitt gets to use to invest in companies at different valuations than we get to invest in? How do I get in on this?
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Feb 5, 2021 21:15
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I'm pretty sure it was all him buying uber cheap warrants and poo poo that he had access to through Bain's various acquisition and management projects. (it might have been his 401(k), which would have potentially had special products available)
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Feb 5, 2021 21:45
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moana posted:Your checking account won't ever crash 50% in value. Keep your emergency fund separate from your investing. Well, you could keep it in a cash fund within the brokerage. You might even be able to get FDIC protection. It would require discipline to keep it there though, and for minimal benefit.
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Feb 5, 2021 21:56
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For someone who doesn’t have a 401k (well I did but life and all), and is mostly doing IC or self employment, so no employer contributions, what type of mix of ETFs would people recommend? I mostly want high potential returns, but some diversity (or defense) to hedge against a general dramatic market decline or say S&P stuff holding Tesla and Elon accidentally blows himself up one day. Also assuming I can put in $50-$100 a month. I know it’s small and I’ll never be able to truly retire (my wife has her own 401k), because that’s the fun of law. However, I want to keep something even if it’s eventually for a down payment on a house or just a really bad emergency (which is what happened to the old 401k I had over a few years) or something else. Would perhaps just a general brokerage account be a better vehicle then a 401K (since it might be designed for earlier withdrawals), but treating it like it was a 401K in terms of ETFs vs stocks. Sorry for all the words and thanks for any advice you all may have.
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Feb 5, 2021 21:57
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If you're self employed you can set up a solo 401(k), I think. You can also withdraw Roth IRA contributions without penalty if you really need to get money out so that's a better emergency vehicle usually than cashing out a 401(k) with penalties.
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Feb 5, 2021 22:06
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Space Fish posted:Admiral funds have a lower expense ratio in exchange for a minimum amount to invest (used to be $10,000, I think the bar's been lowered to $3,000 in most cases). Once you cross that minimum threshold you can make smaller contributions. Is this always true though? VTI is a 0.03% expense ratio whereas VTSAX is 0.04%, or is this just a temporary situation as I see the expense ratio is assessed on what seems to be a yearly basis.
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Feb 5, 2021 22:12
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A SEP IRA is another good option, and once you get past that max then a solo 401k is better.
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Feb 5, 2021 22:17
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Sardonik posted:Is this always true though? VTI is a 0.03% expense ratio whereas VTSAX is 0.04%, or is this just a temporary situation as I see the expense ratio is assessed on what seems to be a yearly basis. https://www.tictoclife.com/vtsax-vs-vti/ VTSAX is a mutual fund (price updates and shares sell at end of day; more exclusive to brokerage; can set auto-purchasing and fractional shares) VTI is an Exchange-Traded Fund (price changes and shares sell instantly; open trading outside of Vanguard; cannot auto-purchase and not always available in fractional shares)
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Feb 5, 2021 22:30
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MazelTovCocktail posted:For someone who doesn’t have a 401k (well I did but life and all), and is mostly doing IC or self employment, so no employer contributions, what type of mix of ETFs would people recommend? Reading between the lines, it sounds like you might not have a sufficient emergency fund, which should be kept in a non-volatile manner (a savings account, not stock or most ETFs). Six months of expenses should be a minimum. Assuming you have enough, then the mix of what you hold (and at your low buy-in it'll probably be ETFs, not funds, for a while) will depend on your age until retirement and your risk tolerance. Assuming you're in your 20s but nervous about big market corrections, you might (this is an example and isn't meant to be instructive for you) put 20% of your investment $s in bonds and 80% in stocks e: forgot the part where you might want this as a downpayment for a house. If so, whatever amount you'd use for a downpayment goes in a savings account if it's near-term; low-volatility bonds if it's a few years out. Otherwise you risk a market correction right before you start looking. I also challenge you to consider the ways you can economize to save for retirement. BFC has some great threads that go beyond "beans and rice." (Though there are a lot of those too.) Have you and your wife ever sat down and created a budget? Admiralty Flag fucked around with this message at 01:20 on Feb 6, 2021 |
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Feb 6, 2021 01:13
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KYOON GRIFFEY JR posted:I'm pretty sure it was all him buying uber cheap warrants and poo poo that he had access to through Bain's various acquisition and management projects. (it might have been his 401(k), which would have potentially had special products available) This article speculates on it, but it seems like he could have stuck his carried interest in his IRA. https://www.theatlantic.com/politics/archive/2012/09/whats-really-going-on-with-mitt-romneys-102-million-ira/261500/ Interestingly enough, as a 73-year old, he is going to be taking RMDs on that now.
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Feb 6, 2021 01:27
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Another important distinction between keeping your spare cash in a bank (checking/savings) vs. a brokerage, even in money market accounts, is that your bank account is FDIC insured. If the next big speculation bubble falls and your bank fails as an entity, the government guarantees that up to $250,000 of your money held by them will be returned to you. If your brokerage fails (as an entity) and they're an SIPC member, up to $250,000 in cash can be returned to you and up to $500,000 in total value. If whatever you're invested in (this includes money markets) crashes, you're out of luck and there's no insurance for that. If you're not banking with an FDIC bank or investing with an SIPC firm, what are you doing. Stop that. I always recommend keeping your e-fund and cash you're planning to use in the next five years in a savings account (or CDs if you know your timeline). To me the potential best-case gains over that timeframe are not worth the risk of suddenly losing 30% of your savings, especially since you're most likely to need that money more if the stock market loses 30% of its value.
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Feb 6, 2021 02:29
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I've never given much thought to the SIPC limits. Does anyone split up their assets between different brokerages / account types to stay under the 500k SPIC coverage limit? Or is it one of those things that if SIPC insurance comes in to play (especially with big players like Vanguard & Fidelity) things are already pretty turbofucked? Feels like extremely long tail risk mitigation that is probably nothing to sweat over, but any thoughts? Guinness fucked around with this message at 03:22 on Feb 6, 2021 |
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Feb 6, 2021 03:19
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Guinness posted:I've never given much thought to the SIPC limits. The odds of your brokerage going under and your securities being missing is vanishingly low if you're at any of the big firms (Fidelity, Vanguard, Schwab. Basically not Robinhood.) I don't worry about it personally. I wouldn't let my cash balances go over the $250k sublimit.
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Feb 6, 2021 03:24
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Related to the rollover discussion, once it's rolled over, what should I do with it? I moved some funds from an old job's 403(b) to Vanguard, since I have a Roth IRA with them and I prefer having everything in one place. Currently, it is sitting in a money market fund account. Should I move it to a new account, like a targeted index fund? I did move some to their ESG Select Stock Fund Investor shares, but haven't done more than that. I've thought about moving some to the Roth, but this year I might actually make enough to get close to maxing out from new income, so I haven't done that yet.
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Feb 6, 2021 03:27
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Does anyone have any military specific advice? I’ve been contributing to Roth TSP at 5% and getting the 5% match since the BRS was implemented in ‘18. Plan is to hit 20 years and get that sweet sweet pension but I want to save intelligently. I’ve been pretty good at saving and have a healthy savings account and a couple grand floating around the stock market in a TD Ameritrade account with ETFs. Is there anything glaringly wrong with my plan?
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Feb 6, 2021 03:53
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H110Hawk posted:The odds of your brokerage going under and your securities being missing is vanishingly low if you're at any of the big firms (Fidelity, Vanguard, Schwab. Basically not Robinhood.) I don't worry about it personally. I wouldn't let my cash balances go over the $250k sublimit. And if you're at vanguard: "To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from Syndicates at Lloyd's of London for our brokerage clients. This additional insurance has the same customer eligibility requirements as SIPC. This coverage has an aggregate limit of $250 million for all claims of securities and cash and incorporates a per client coverage limit of $49.5 million for securities and $1.9 million for cash." This is your regular reminder that you are a customer of any given brokerage, but Vanguard loves you. Maybe not anymore, but they used to.
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Feb 6, 2021 05:01
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Why not anymore? I feel pretty loved
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Feb 6, 2021 05:04
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Always better to be an owner than a source of revenue.
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Feb 6, 2021 06:01
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Vanguard is light years ahead of other folks solely because they’re not expending every effort to gently caress you over. The only other people I can think of that are also not loving you over is Schwab I guess?
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Feb 6, 2021 06:02
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