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jokes posted:To that end, while fire-and-forget is an excellent strategy, there is still some due diligence expected. They'll tell you what their holdings are (by law), and their picks might not jive with you or your goals. If, for example, they're deep into TSLA or something and you're not okay with that, you might want to consider a different one. Thank you! I’ll look into those things now. I might just go all in for now then maybe transfer some of it as I learn more. -and thanks to the others who replied while I wasn’t hitting post 
Snowy fucked around with this message at 19:43 on Feb 27, 2021 |
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Feb 27, 2021 19:41
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I unexpectedly got a “retention” stock bonus this year, vested over four years. I assume this falls under the same theory of ESPP and I should sell as soon as I am able?
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Feb 27, 2021 23:52
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smackfu posted:I unexpectedly got a “retention” stock bonus this year, vested over four years. I assume this falls under the same theory of ESPP and I should sell as soon as I am able? Yes.
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Feb 27, 2021 23:59
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i just figured out that i'm doing way worse on fees in one of my retirement accounts than i had thought. the underlying administrative fee is 0.8%, not the 0.35% i had in the back of my head. the expense ratios of the available funds are not bad, but still looking at total expanses of 0.85-0.95%. i'm not getting a match on my contributions, and i'm not in love with the limited funds on offer, so this prompted me to look into how the fees for how a retirement brokerage account at vanguard would compare. i had looked into this several years ago, and for some reason i remember the expenses and fees being comparable to 0.35%, but looking at it now i'm only seeing a flat fee which is easily waivable. are there fees i'm missing, or is it really the case that essentially the only expenses in a vanguard account is the expenses of the funds you hold? if it is that cheap, i have another account from an old employer with an administrative fee of 0.2% that i'd want to roll over as well. some of the funds are in a roth ira and some are in a traditional ira. i'm sure it differs institutionally, but generally how difficult is it to rollover an account like this without getting into complicated tax stuff?
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Feb 28, 2021 00:27
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GhostofJohnMuir posted:i just figured out that i'm doing way worse on fees in one of my retirement accounts than i had thought. the underlying administrative fee is 0.8%, not the 0.35% i had in the back of my head. the expense ratios of the available funds are not bad, but still looking at total expanses of 0.85-0.95%. i'm not getting a match on my contributions, and i'm not in love with the limited funds on offer, so this prompted me to look into how the fees for how a retirement brokerage account at vanguard would compare. i had looked into this several years ago, and for some reason i remember the expenses and fees being comparable to 0.35%, but looking at it now i'm only seeing a flat fee which is easily waivable. are there fees i'm missing, or is it really the case that essentially the only expenses in a vanguard account is the expenses of the funds you hold? It's super easy as long as you don't just literally not deposit the check(s) you might receive. Open up a rollover IRA, traditional IRA, and a Roth IRA at vanguard. Get all of your account information in front of you and call vanguard and ask for help. You will probably get 1 rollover per-tax-treatment-per-account. So if you have a trad 401k, trad ira, and roth ira around with bad fees, you will get 3 total checks. Ask them to help you out. Match like for like in tax treatment, with your 401k landing in the rollover account.
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Feb 28, 2021 00:36
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I have a Fidelity retirement account from a job 10 years ago that has like 4K in it. Can I do anything to that besides just withdrawing it with a penalty for being under 65? I see it in my Fidelity app but like, there are no options to do much with it. It’s a DCP account getting like .10% interest now, but kinda just sitting there. Edit - I’m not hurting for the money or anything, I just thought I’d ask if I can actually put this poo poo into anything with a higher return than .10% jeeves fucked around with this message at 01:55 on Feb 28, 2021 |
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Feb 28, 2021 01:45
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jeeves posted:I have a Fidelity retirement account from a job 10 years ago that has like 4K in it. Can I do anything to that besides just withdrawing it with a penalty for being under 65? Roll it into a fidelity rollover ira or your current 401k. Then buy a index fund with it.
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Feb 28, 2021 02:03
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H110Hawk posted:It's super easy as long as you don't just literally not deposit the check(s) you might receive. Open up a rollover IRA, traditional IRA, and a Roth IRA at vanguard. Get all of your account information in front of you and call vanguard and ask for help. You will probably get 1 rollover per-tax-treatment-per-account. So if you have a trad 401k, trad ira, and roth ira around with bad fees, you will get 3 total checks. Ask them to help you out. Match like for like in tax treatment, with your 401k landing in the rollover account. thanks so much for the info. it was a breeze to set this up, the administrator of my old retirement plan will even send the check directly to vanguard so i don't have to worry about remailing them not only am i going from using three separate accounts with completely different fund offerings to two accounts with matching (superior) offerings, but my savings in one year's worth of administrative fees will more than cover the $100 in distribution fees i have to pay i'm glad i caught this after 3 years rather than 3 decades. i don't know what i was smoking when i originally looked into a rollover to vanguard and thought it was going to be a wash
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Feb 28, 2021 02:34
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GhostofJohnMuir posted:thanks so much for the info. it was a breeze to set this up, the administrator of my old retirement plan will even send the check directly to vanguard so i don't have to worry about remailing them  Glad it was that easy. Just make sure to follow up on it in a few weeks and make sure they actually sent Vanguard the money, and that it was actually invested in an index fund (e.g. VTSAX.)
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Feb 28, 2021 02:40
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smackfu posted:I unexpectedly got a “retention” stock bonus this year, vested over four years. I assume this falls under the same theory of ESPP and I should sell as soon as I am able? H110Hawk posted:Yes. Hawk may I have some explanation? If I recall correctly this is common advice, but why? I may run into similar scenario in 2022 and need to start researching my plan.
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Feb 28, 2021 04:04
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Employee stock programs leave you with little diversification. You want to immediately sell and reinvest in a more diversified vehicle.
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Feb 28, 2021 04:08
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Nitrousoxide posted:Employee stock programs leave you with little diversification. You want to immediately sell and reinvest in a more diversified vehicle. What happens if your company’s stock drops and they have to start doing layoffs - could you potentially find yourself out of a job with worthless stock? I’d hate to lose my paycheck and a bunch of money in the company, so yes, it’s a diversification play. Another way to look at it - if they gave you $X in cash instead of $X worth of their stock, how much of their stock would you go out and buy with that cash? My guess is - not a lot, or maybe zero. So, sell it as soon as you can. dexter6 fucked around with this message at 05:01 on Feb 28, 2021 |
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Feb 28, 2021 04:40
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Noted. Thank you.
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Feb 28, 2021 04:58
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In the cases where it's vesting over time you also have exposure to the company stock through the amount that is still vesting.
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Feb 28, 2021 06:52
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The only consideration I could think of that would incentivize not immediately selling is long term vs short term capital gains, but I guess that depends on how your stock options vest.
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Feb 28, 2021 06:57
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acidx posted:The only consideration I could think of that would incentivize not immediately selling is long term vs short term capital gains, but I guess that depends on how your stock options vest. Timer doesn't start ticking until you gain control of the stock.
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Feb 28, 2021 07:17
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acidx posted:The only consideration I could think of that would incentivize not immediately selling is long term vs short term capital gains, but I guess that depends on how your stock options vest. Also, on whether they're actually stock options, or if they're SARs or RSUs. The tax treatment is completely different for those. Make sure you (OP, not you you) check what the structure is on the stock bonus. RSUs and SARs are treated as ordinary income, with RSUs being taxed at time of vesting and SARs at time of execution. Both are subject to ordinary income tax treatment, so there is no innate advantage to holding them for any period of time.
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Feb 28, 2021 07:29
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So my IRA transfers are just about finished, and it would be great if I could get some feedback/recommendations on how to allocate my 401k/Roth IRA going forward. Generally aiming for a standard three fund portfolio (target retirement around 2050), and currently about 70% of my retirement funds are in the 401k (with the investment options in the image below) and 30% in the Roth IRA (at Vanguard). Maybe I should do some sort of mix of Great-West S&P 500 Index Fund, Great-West S&P MidCap 400 Index Fund, and Great-West S&P SmCap 600 Index Fund to emulate a total market index, because those are the cheapest? Maybe put like 10% of the 401k in Great-West Bond Index Fund and the whole Roth IRA in international?
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Mar 1, 2021 05:24
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So I was about to file my taxes on freetaxusa but apparently it's only free if I make less than $39,000 a year? Would Tax Act be a good choice?
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Mar 1, 2021 06:32
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punk rebel ecks posted:So I was about to file my taxes on freetaxusa but apparently it's only free if I make less than $39,000 a year? Federal is free, state is like $12.
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Mar 1, 2021 06:43
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withak posted:Federal is free, state is like $12. What's the benefit of using freetaxusa over any of the other free ones? Like they will all give me the same amount of money back right?
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Mar 1, 2021 07:48
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Yes. If it is free then any of the services should work fine as long as you didn’t have any complicated changes this year. Just don’t give any money to Intuit.
withak fucked around with this message at 07:58 on Mar 1, 2021 |
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Mar 1, 2021 07:55
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punk rebel ecks posted:What's the benefit of using freetaxusa over any of the other free ones? Like they will all give me the same amount of money back right? The other ones on the IRS page aren’t free for federal if you make too much, unlike freetaxusa.
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Mar 1, 2021 13:57
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There's also https://freefilefillableforms.com, the tool directly from the IRS. It's basically like doing a paper return, but with electronic filing. But it's completely free. I've been using this since 2008 or so without a hitch.
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Mar 1, 2021 14:37
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It's probably worth it to use a tax filing service this year however. There's been a lot of temporary tax breaks introduced in the trillions of dollars of legislation that has been passed over the last 12 months. It would be a shame to miss out on some because you were trying to save $12 from a state filing.
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Mar 1, 2021 14:43
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Jows posted:There's also https://freefilefillableforms.com, the tool directly from the IRS. It's basically like doing a paper return, but with electronic filing. But it's completely free. I've been using this since 2008 or so without a hitch. Yeah, I use this too. It works pretty well. Like you said though, it is just like filling out the paper forms with an auto-sum feature, so unlike the tax software, you will have to read the line instructions for the form and have some level of understanding of the 'theory of the Federal Income Tax' in order to use it.
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Mar 1, 2021 14:45
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Jows posted:There's also https://freefilefillableforms.com, the tool directly from the IRS. It's basically like doing a paper return, but with electronic filing. But it's completely free. I've been using this since 2008 or so without a hitch. Thirding this. Been using it for ~10 years and found it much more straightforward than tax prep programs. You get to see why they ask what they ask. I'm also the kind of person who subscribes to the SA tax thread for fun though so YMMV.
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Mar 1, 2021 16:12
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Xenoborg posted:Thirding this. Been using it for ~10 years and found it much more straightforward than tax prep programs. You get to see why they ask what they ask. I'm also the kind of person who subscribes to the SA tax thread for fun though so YMMV. LOL, SA threads are circular - I have a post very early in that thread about a situation that came up because I plugged my stuff into turbotax that year. I still filed with freefilefillableforms, but I learned about overcontributions to IRAs thanks to turbotax!
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Mar 1, 2021 16:45
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Nitrousoxide posted:It's probably worth it to use a tax filing service this year however. There's been a lot of temporary tax breaks introduced in the trillions of dollars of legislation that has been passed over the last 12 months. It would be a shame to miss out on some because you were trying to save $12 from a state filing. This is very true this year. You can take a $300 charitable deduction this year without itemizing as an example.
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Mar 1, 2021 17:49
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spwrozek posted:This is very true this year. You can take a $300 charitable deduction this year without itemizing as an example. If you're used to doing taxes on paper that really stands out as a new thing. I was really surprised when I saw it and asked my wife for any receipts she had. Personally, I don't see any reason to use tax prep software if you take the standard deduction and don't have complicated child situations like joint custody or something. Due to the Trump SALT limits I think most people are taking the standard deduction now. As an aside, I think it's loving hilarious that he bragged about the new tax form being the size of a postcard and all they did was just move half the poo poo to a set of new forms. And that postcard size only applied for the first year - this year's is almost full page front and back again.
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Mar 1, 2021 17:59
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Jows posted:If you're used to doing taxes on paper that really stands out as a new thing. I was really surprised when I saw it and asked my wife for any receipts she had. Personally, I don't see any reason to use tax prep software if you take the standard deduction and don't have complicated child situations like joint custody or something. Due to the Trump SALT limits I think most people are taking the standard deduction now. 1040-EZ (or whatever the new equivalent is) filers should definitely just use something, anything, free. The FUD comes from Intuit to drive sales.
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Mar 1, 2021 18:24
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I'm trying to do a backdoor Roth for the first time in my life, and it looks like I'm going to shuffle money around in order to not get taxed on converting tax-deferred dollars. I have, managed in Vanguard:
Outside of Vanguard, I have a Roth & Traditional 401(k) with my current employer's provider, non-Vanguard. It looks like if I open up a new non-deductible traditional IRA, fund it, and then try to convert it to Roth, I'll owe taxes even though I'm not getting any deduction on contributions because of the IRA pro-rata rule, saying that all of my traditional IRAs will be considered together. If I roll my entire rollover IRA into either my current employer's 401k or possibly the previous employer's 401k, then make a non-deductible contribution, I should be able to convert the new Traditional all over to Roth without paying any taxes, because it was funded entirely with non-deductible contributions, right?
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Mar 1, 2021 18:39
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Twerk from Home posted:I'm trying to do a backdoor Roth for the first time in my life, and it looks like I'm going to shuffle money around in order to not get taxed on converting tax-deferred dollars. I hope that’s how it works, because that’s what I’ve done, and the Fidelity rep I talked to thought it was reasonable. I haven’t made it through tax season after doing it yet though - my tax person may yet tell me I screwed something up.
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Mar 1, 2021 18:50
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Twerk from Home posted:I'm trying to do a backdoor Roth for the first time in my life, and it looks like I'm going to shuffle money around in order to not get taxed on converting tax-deferred dollars. yup.
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Mar 1, 2021 18:54
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raminasi posted:I hope that’s how it works, because that’s what I’ve done, and the Fidelity rep I talked to thought it was reasonable. I haven’t made it through tax season after doing it yet though - my tax person may yet tell me I screwed something up. Thanks! This sucks. Why on earth can't they just remove the income limit on Roth IRA contributions, or prevent the ability to make non-deductible IRA contributions at all? This current system seems to just add complexity for no reason.
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Mar 1, 2021 18:59
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Twerk from Home posted:Thanks! Probably because the IRS got blindsided by people using the backdoor loophole, and rich people lobbied like hell to keep them from closing it.
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Mar 1, 2021 19:12
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what are the threads thoughts on slice and dice vs total market funds? i've been doing a three fund portfolio that roughly aligns with the vanguard target date fund for my age, since i was working across three pretty different portfolios with limited offerings and total domestic equity, total international equity, and total domestic bonds were the only three style of funds that the portfolios had in common. now that my old 401k and current roth are being rolled into vanguard, and my hsa has a fairly robust offering of vanguard funds, things seem simplified enough that i could handle adding different funds to approach a 6 to 9 fund portfolio, if that level of specificity represents an advantage over a 3 or 4 fund portfolio. i'm a couple decades out from even an early retirement, i have plenty of tax advantaged space, and i have to time and inclination to keep track of a slightly more complicated portfolio if it's worth it i just finished william bernstein's four pillars of investing, and while some of his advice seems a bit dated (the constant downward trend of vanguard expense ratios for one), i'm curious over a couple points his writing on asset allocation raises. does it still make sense to hold treasuries directly and buy into a more focused bond fund to save on the management expense of government bonds? and if so, what is a good method of adding to my treasury holdings after my ladder is setup if i'm contributing a small amount every two weeks, just buy a few dollars in 5 year treasury notes? vanguards total stock market has a small portion of reit holdings, and the total bond fund has about a quarter of its holdings in mortgage backed bonds. how much additional reit index holdings are considered necessary to diversify? what about bernstein's advice to hold total market funds and supplement with large and small cap value stocks? is it really a necessary step to offset the weight that large cap growth stocks have in the total stock market funds? i can't put my finger on exactly why, but i would rather just hold the total stock market
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Mar 1, 2021 21:02
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GhostofJohnMuir posted:what about bernstein's advice to hold total market funds and supplement with large and small cap value stocks? is it really a necessary step to offset the weight that large cap growth stocks have in the total stock market funds? i can't put my finger on exactly why, but i would rather just hold the total stock market I found this video to be super informative on this, but essentially market cap weighted index funds are only exposed to market risk. You can get exposure to additional risk factors which have a positive premium vs the market by buying small cap and value stocks because historically small cap value stocks have outperformed the market. https://www.youtube.com/watch?v=2MVSsVi1_e4 Baxate fucked around with this message at 21:50 on Mar 1, 2021 |
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Mar 1, 2021 21:38
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Considering target date retirement funds and I’m just wondering if it’s better to “overshoot” or “undershoot” on my target date. I’m a lucky individual and could foresee a scenario where I can possibly retire before 60, which might be appealing, but I can also envision a scenario where I choose to keep working well into my 60s. The question being, given an indeterminate desired age of retirement at age 30, do I target my portfolio to mature by 60, 65, or like 70?
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Mar 1, 2021 21:51
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what is the math on when it's better to do FIFO or LIFO on an individual (non-retirement) investment account? Seems like for a long-term investment account FIFO would be better to hit capital gains, and if you're doing short-term trading then LIFO to minimize taxable gains as you trade?
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Mar 1, 2021 21:55
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