|
Do we have a thread like this for Australian finances?
|
#
?
Jun 22, 2021 16:36
|
|
|
|
| # ? May 31, 2024 00:22 |
|
|
I was looking for a general stock market questions thread but couldn't find one so I figured I would post here. If there's a better place for this let me know. I bought some BST a while back and I was checking my account this morning and I saw that now I have a bunch of BST.RT shares in addition to my BST. I did a little bit of digging and I see that there's something called a rights offering that happened but because I am a moron I don't know what that is or what it means or if I have to do anything. I tried to do some research but my eyes glazed over as soon as I started reading. Can someone explain this to me in small words? I don't know if I have to do something or what this means. It's in an etrade account if that matters.
|
|
#
?
Jun 22, 2021 16:47
|
|
|
here's the stocks thread
|
|
#
?
Jun 22, 2021 20:20
|
|
|
My workplace is going to change the funds offered in their 403b so I will need to move my international allocation out of Fidelity's Total International Index Fund (FTIHX, ER 0.06). Would an 80%/20% split between Fidelity International Index Fund (FSPSX, ER 0.035, developed markets only) and Fidelity Emerging Markets Index Fund (FPADX, ER 0.075) approximate this well? The only other international fund choice has a 0.71% ER so I'm not considering it. Any downsides to doing it this way vs. just going 100% FSPSX?
|
|
#
?
Jun 23, 2021 03:24
|
|
|
runawayturtles posted:It's been a few months since I last posted about this, but I want to thank the thread for encouraging me to ask my office about the possibility of improving our bad 401k plan. I heard from the COO yesterday that he pulled the trigger on moving us to a direct plan with Vanguard. Aside from their low-cost fund options that we all know and love, their 401k fee is flat and based only on number of participants, so while I don't know exactly how that fee will be split yet, it's infinitely better than the large percentage fees I'm currently paying on expensive funds. So, huge win there. And now I hear they're adding a 3% match at the same time. It's not huge, but still all due to this thread... best  I ever spent 17 years ago.
|
|
#
?
Jun 23, 2021 04:22
|
|
|
runawayturtles posted:And now I hear they're adding a 3% match at the same time. It's not huge, but still all due to this thread... best Dude, that is awesome. Way to go. Everyone at the office owes you a beer.
|
|
#
?
Jun 23, 2021 04:47
|
|
|
runawayturtles posted:And now I hear they're adding a 3% match at the same time. It's not huge, but still all due to this thread... best free money's free money. good job!
|
|
#
?
Jun 23, 2021 12:52
|
|
|
drat, nice job. I wish I could effect change at my work 
|
|
#
?
Jun 23, 2021 13:54
|
|
|
runawayturtles posted:And now I hear they're adding a 3% match at the same time. It's not huge, but still all due to this thread... best Way to be a real force for good at your job. That's amazing.
|
|
#
?
Jun 23, 2021 15:18
|
|
|
I would be so much worse off if I hadn’t joined SA.
|
|
#
?
Jun 23, 2021 15:38
|
|
|
Pollyanna posted:I would be so much worse off if I hadn’t joined SA. Ditto. I learned financial basics from this very thread as a lurker in the first few months of my career a decade ago
|
|
#
?
Jun 23, 2021 15:44
|
|
|
Pollyanna posted:I would be so much worse off if I hadn’t joined SA. I don't know if I'm crazy for basing my financial life on a $10 online forum, but here we are.
|
|
#
?
Jun 23, 2021 15:52
|
|
|
Residency Evil posted:I don't know if I'm crazy for basing my financial life on a $10 online forum, but here we are. I'm sure there are other financial forums that cost way more to access that give the same or worse advice.
|
|
#
?
Jun 23, 2021 15:57
|
|
|
I got my advice from here specifically because it was too expensive and too small to be worth astroturfing
|
|
#
?
Jun 23, 2021 16:12
|
|
|
All of the long term advice from coworkers is “become an over-leveraged landlord” and while that can work for some people I hate being in debt and I hate the idea of living as a professional landlord/leech. Boring long term investments and high savings rates it is!
|
|
#
?
Jun 23, 2021 16:26
|
|
|
spwrozek posted:Dude, that is awesome. Way to go. Everyone at the office owes you a beer.  Funny thing is, I inadvertently found out through this process that my 401k balance is about 25% of the plan's total. Will be over 30% when my roll-in finally goes through. Small company of course, but still... I hope this move encourages more coworkers to take part, for the match at least if nothing else.
|
|
#
?
Jun 23, 2021 17:00
|
|
|
runawayturtles posted:
 Holy moly. That's a low participation rate.
|
|
#
?
Jun 23, 2021 17:12
|
|
|
runawayturtles posted:
Jesus, Why would people leave free money on the table. I just don't understand peoples economic decisions
|
|
#
?
Jun 23, 2021 17:30
|
|
|
Gaius Marius posted:Jesus, Why would people leave free money on the table. I just don't understand peoples economic decisions Remember before our intrepid poster the 401k was an unmatched pile of fees if I recall correctly.  But yeah, even at 1% if you have space above an IRA account it's still worth doing. This thread gets a pretty rosy picture painted because our cohort is all people saving for retirement, but the stats in the USA are way more grim than that.
|
|
#
?
Jun 23, 2021 17:36
|
|
|
Here to pile on that this thread has def helped me a ton and caused me to discover that maybe having my 401k with Edward Jones with a 1.25% ER may not be in my best interest. Plus I was able to find similar index funds in my work retirement , which was huge. Fun thing, my wife started a new job, small company. Her 401k , we just found out, is serviced through Edward Jones. So I’m bracing to see what the options are (waiting to hear back).
|
|
#
?
Jun 23, 2021 17:51
|
|
|
H110Hawk posted:Remember before our intrepid poster the 401k was an unmatched pile of fees if I recall correctly. When I read the success stories I feel behind, and when I look at the stats of average people I feel fantastic about myself. It averages out. Some very good posts in these threads helped me start short term investing with my cash over what I want as an emergency fund, so that's good. Sadly I'm not maxed on the contribution limits but I'm also projected to be where I want to be. So I'm maximizing happiness right now.
|
|
#
?
Jun 23, 2021 18:06
|
|
|
mlmp08 posted:All of the long term advice from coworkers is “become an over-leveraged landlord” and while that can work for some people I hate being in debt and I hate the idea of living as a professional landlord/leech. Boring long term investments and high savings rates it is! I know way too many aspiring landlords in real life. It's like it's the only "advice" people get exposed to, of course without any of the risks or downsides. Sure some people make it work and can be very successful at it, but they have to work at it. Or else just be scumbag slumlords, I guess. If/when I move primary residences, the thought of keeping the current house around as a rental instead of selling it just makes me shudder. I don't need that worry in my life. One house is enough. I just don't want to be a landlord at all. Guinness fucked around with this message at 18:14 on Jun 23, 2021 |
|
#
?
Jun 23, 2021 18:11
|
|
|
If I ever buy a house or apartment thats about as much real estate I'm comfortable being exposed to. Actually putting *more* money than that into RE seems horrifying to me. Ofc where I live a nice 2 bed apt will set you back half a lifetime of income so YMMV.
|
|
#
?
Jun 23, 2021 18:28
|
|
|
I bought a bunch of funds a while back because I did not like the idea of leaving my eggs in one basket. Tell me what I'm doing right and wrong. Expense Ratio - Vanguard Fund - Portfolio Percentage 0.41% - VEXPX - 11.5% 0.14% - VFTAX - 11.5% 0.08% - VHYAX - 11.5% 0.15% - VFIFX - 6.0% 0.11% - VTIAX - 17.5% 0.04% - VTSAX - 30.0% 0.38% - VWUSX 11.5% Also, is there anyway I can hedge myself against a reduction in demand for U.S. dollars? (Oil is paid for in U.S. dollars and between that and a reduction in its usage as foreign reserve currency.) However I expect in the next 20-40 years... less oil trading and the growth of other reserve currencies. (If we do see Hydrogen trading take off, there is a very fair question of what currency will be used. Maybe Euro, maybe special drawing rights, who knows.)
|
|
#
?
Jun 24, 2021 06:38
|
|
|
SA-Anon posted:I bought a bunch of funds a while back because I did not like the idea of leaving my eggs in one basket. I’m not sure on the balance, but I would say I don’t think there’s a need for the Vanguard explorer fund at .41% expense ratio vs just having Small cap index VSMAX. Same with VWUSX and the index large cap growth. Is there a reason you picked social index and dividend yield ? I don’t know if I would say “never have those,” but I personally would think having some form of small cap, mid cap, S&P 500, would be better to start with ? I haven’t researched the social index fund myself, but I think the consensus here was that they still mostly keep the same large cap companies so it really doesn’t make a huge difference versus regular large cap. Looking at it, the top holdings include Tesla and Amazon, so yeah. You do it similar to what I do otherwise in having multiple funds. I’ve just been balancing between adding to existing and occasionally expanding and adding another mutual fund. Although I’m also trying not to go crazy with it. It’s easy for me to diversify via having multiple funds because my vanguard is a lot smaller than my work 401k, which only has 4 reasonable options. I automatically have balance just via work, so it doesn’t affect my overall risk if I have small cap, mid cap, etc, versus just all VTSAX (and international). Duckman2008 fucked around with this message at 11:58 on Jun 24, 2021 |
|
#
?
Jun 24, 2021 11:53
|
|
|
If your Roth IRA isn't worth $5Billion by the time you're 50, you're doing it wrong
|
|
#
?
Jun 24, 2021 16:43
|
|
|
bawfuls posted:If your Roth IRA isn't worth $5Billion by the time you're 50, you're doing it wrong I just read that. hosed up IMO... ah well nonetheless.
|
|
#
?
Jun 24, 2021 17:10
|
|
|
Well, I mean, it was also likely that his IRA would have been worth nothing if his compan(ies) went under. In some ways it's like if you bought options with your Roth IRA. Of course when you have significant control over the performance of stocks in your IRA, maybe that should change something. I don't know, I don't work for the IRS. I think that nobody should have $5 billion though, taxed or otherwise.
|
|
#
?
Jun 24, 2021 17:34
|
|
|
Yes but when he made that initial, single "$1700" contribution he and PayPal knew the shares were already worth far more than a 1/10th of a cent. They admitted as much in later legal filings. Romney and friends did the same thing at Bain, giving themselves undervalued shares they could stash in an IRA during their corporate raids.
|
|
#
?
Jun 24, 2021 17:55
|
|
|
Yeah I think there's grounds for an IRS regulation there. I'm imagining buying shares at par value via a Roth IRA before going into a VC meeting seeking a valuation of billions and thinking "this is cool and good and isn't hosed up"
|
|
#
?
Jun 24, 2021 17:58
|
|
|
What you described is of course literally what Thiel did. PayPal took in millions in investment at much higher valuation mere months after his Roth contribution. The easy fix is to say you can only buy publicly traded shares with an IRA, Roth or traditional. Cat's out of the bag now though, good luck getting that kinda thing passed. We still can't get the carried interest loophole closed for hedge fund managers.
|
|
#
?
Jun 24, 2021 18:08
|
|
|
It's funny because when I was in law school and learned what par value was and why it exists and all of that, my first thought was "I wonder if someone could shove millions of shares at par value into an IRA before going public or whatever" and then immediately thought "no surely the IRS wouldn't allow such an egregious misuse" Welp, lol But if you think for even a second that you can just pull your own money from your Trad IRA to pay for rent you'll get a stern letter come tax time. jokes fucked around with this message at 18:26 on Jun 24, 2021 |
|
#
?
Jun 24, 2021 18:23
|
|
|
literally even had no idea that was even legal to place non-public shares into a roth ira.. not like normal people even has access to lawyers or accountants who could even do this for them.
|
|
#
?
Jun 24, 2021 18:30
|
|
|
Meanwhile I’m over here scrambling to fix my excess contribution for 2020 because some unforeseen bonuses pushed my joint income over the contribution limit and gently caress me for investing in January 2020 to take advantage of more time in the market. Really cool system.
|
|
#
?
Jun 24, 2021 18:40
|
|
|
You can also buy real estate via an IRA. Just can’t live in it or rent it to yourself, but if you wanna be a landlord it’s fine to own the property via IRA.
|
|
#
?
Jun 24, 2021 18:55
|
|
|
Democratic Pirate posted:Meanwhile I’m over here scrambling to fix my excess contribution for 2020 because some unforeseen bonuses pushed my joint income over the contribution limit and gently caress me for investing in January 2020 to take advantage of more time in the market. Really cool system. Very fun jumping through bureaucracy while billionaires just laugh in our faces with mountains of untaxed lucre.
|
|
#
?
Jun 24, 2021 20:46
|
|
|
i just got like £1.54 in dividends from the handful of CDPR shares i have and it got me wondering if i could, over time, invest a chunk of my income into relatively "safe" companies and, eventually, hopefully amass enough to live comfortably off dividends
|
|
#
?
Jun 25, 2021 00:49
|
|
|
Yes, just increase your holdings by 100,000 and you'll be all set.
|
|
#
?
Jun 25, 2021 00:53
|
|
|
hbag posted:i just got like £1.54 in dividends from the handful of CDPR shares i have and it got me wondering if i could, over time, invest a chunk of my income into relatively "safe" companies and, eventually, hopefully amass enough to live comfortably off dividends Yes you could do that. You can do it at the index fund level, as well. Reinvesting those dividends is a big part of growing your portfolio over time, but eventually you could shift to taking them as cash. It'd take a pretty hefty portfolio of "safe" dividend-paying assets to generate enough to live on, though, considering that safe, dividend-focused funds are currently hovering about 2%. So figure a couple million invested. Most things offering higher dividend yields are going to be considerably less "safe". But dividends are effectively small bits of forced sale. Stocks that pay dividends lose an equal amount of principal value, in theory. It sounds appealing for its simplicity, but a portfolio that you control the liquidation of for cash flow is better and you can stick to the 4% rule (or whatever your tolerance/roadmap is) to theoretically be able to take out cash while maintaining principal over time. Either way, you're looking at millions for an indefinitely sustainable portfolio to live off of. That's the whole concept of financial independence. Guinness fucked around with this message at 01:08 on Jun 25, 2021 |
|
#
?
Jun 25, 2021 00:57
|
|
|
|
| # ? May 31, 2024 00:22 |
|
|
hbag posted:i just got like £1.54 in dividends from the handful of CDPR shares i have and it got me wondering if i could, over time, invest a chunk of my income into relatively "safe" companies and, eventually, hopefully amass enough to live comfortably off dividends You totally can, but keep in mind that it's exactly the same (modulo costs and taxes) as selling after capital appreciation. There's not usually a reason to prefer (reinvesting) dividends over an equivalently growing investment. You don't need dividends, growth of all kinds will do. There's a couple Common Sense Investing videos about dividends that I remember being decent, including this one https://youtu.be/f5j9v9dfinQ
|
|
#
?
Jun 25, 2021 01:16
|
|
