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Happiness Commando posted:You can, but you can also defer it. TreasuryDirect link Good link thank you. Just to make sure I am reading right: so I can report it all at once when the bond matures in 30 years. Do I need to report it on each years tax, or basically I don’t report it until said final year?
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Nov 3, 2021 17:09
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Duckman2008 posted:Good link thank you. Yep that’s right. Or if you redeem early, you report that year.
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Nov 3, 2021 17:11
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There's no way to get TreasuryDirect to show up in Personal Capital or Mint, right?
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Nov 3, 2021 17:19
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If you annualize interest from savings bonds, it's a lifetime election for all current and future savings bonds that you own.
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Nov 3, 2021 18:29
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Duckman2008 posted:Just to make sure I am reading right: so I can report it all at once when the bond matures in 30 years. Do I need to report it on each years tax, or basically I don’t report it until said final year? A small aside: My uncle had a many Savings Bonds, paper ones. Almost 100k worth, most purchased in the 1970s and 1980s. He paid taxes on the interest each and every year. He passed away in 2000, but the bonds were not found until 2015 or so, well after all had matured. His heirs/estate were able to show that he had paid tax each year, so they were able to avoid most of the taxes due in the year they were cashed out. So paying the taxes later may be a good idea if you project yourself to be in a lower tax bracket, but from an estate planning stand point, it might be better to pay the tax ever year.
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Nov 3, 2021 19:10
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runawayturtles posted:There's no way to get TreasuryDirect to show up in Personal Capital or Mint, right? I just add it manually.
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Nov 3, 2021 19:20
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esquilax posted:I took a lump sum pension payout (but for less money - low 5 figures). My primary concern was keeping track of the account, and keeping all my information up to date, and hoping they don't make an administrative error over the next 40 years or whatever. It'll be a relief to know that that money isn't tied up in some black box calculation that seems like it can be changed arbitrarily. I never could get an equation out of them that I could use to calculate the payout at some future date. I had to use the projection function on the website but never knew what was going on under the hood.
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Nov 3, 2021 21:34
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So I'm torn on something and need some outside input. Here's the scenario, I just learned that someone I'm close to but is not me has had an investment account with a major bank for over a decade and the performance, particularly the last 3 years as the markets gone banana's, has been very poor, basically just above keeping up with inflation. Aside from the fees the bank is taking it appears to also be very conservatively invested. I suspect they've lost out on 6 figures of gains vs if the money had simply been invested in a low fee index fund and long term it may already be the difference between a very comfortable, even early, retirement, vs a borderline one. Obviously the money shouldn't stay where it is but... I'm not sure what to do. I'd have to count myself among those who thought we were in for a market crash for years now and it keeps not happening, instead they just keep going up. I can admit I've been very wrong about a major market correction so far but I still can't get over the worry that one is due and I'd feel terrible if the money was moved into a more aggressive fund then got caught in a market crash after having sat out all the gains. Any advice?
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Nov 4, 2021 01:30
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Elem7 posted:So I'm torn on something and need some outside input. The best time to invest is yesterday. The second best time is today. Unless “they” are retiring in the next like, 5 years, Move everything to said low fee index funds immediately. Even with a crash it’ll recover before you need it. Anyone who would have gone “all in” in say, early 2007 or Feb 2020, would have made their losses back by now. Sometimes it may not be that quick, but eventually it would. In other words. Don’t time the market.
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Nov 4, 2021 01:34
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if it's not you, i advise not giving a gently caress unless you're somehow gonna be on the hook if the person doesn't have a confortable retirement if this is a weird "someone who is not me!!!" device, that's weird dude don't post like that and put your poo poo in broad index funds with a reasonable fixed income allocation proportionate to your risk tolerance
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Nov 4, 2021 02:04
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If you had a lump sum and where retiring somewhere between the next 5 years and now, what are the best options? Vanguard or Fidelity target 2020 or 2025?
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Nov 4, 2021 02:06
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For Elem7, If you are super concerned with an imminent crash, you can tell the person to dollar cost average into the market over a year or so. It's historically suboptimal, but if it allows them to pull the trigger, it's still worth it.
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Nov 4, 2021 02:12
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KYOON GRIFFEY JR posted:if it's not you, i advise not giving a gently caress unless you're somehow gonna be on the hook if the person doesn't have a confortable retirement This is good advice. That most people won't follow. Yes including me.
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Nov 4, 2021 02:15
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SNiPER_Magnum posted:If you had a lump sum and where retiring somewhere between the next 5 years and now, what are the best options? Vanguard or Fidelity target 2020 or 2025? Personally, I wouldn't use a target date fund whose date has already passed. It's already far too conservative for my taste and will get even more conservative over the next decade. I'd choose something like a Vanguard LifeStrategy, probably Moderate Growth if I'm on the more conservative side.
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Nov 4, 2021 02:17
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OK thanks, I'm checking out the LifeStrategy funds. I guess it's just managing risk tolerance. The target 2020 is at about 45/45/10 stocks/bonds/TIPS now. Are you saying that's way too conservative for you, even in retirement? The target funds look great for getting to retirement, maybe not afterward.
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Nov 4, 2021 02:53
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Elem7 posted:Words So as others have said, move everything over to more aggressive low cost index funds now. And if not now, DCA: 1. Decide how many months you want to take to move it over (n months) 2. Move over 1/nth of it on the X day of every month (regardless of what the market is doing) 3. After n months you’re all in Some months you’ll have bought high and other months you’ll have bought the dip.
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Nov 4, 2021 03:14
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SNiPER_Magnum posted:OK thanks, I'm checking out the LifeStrategy funds. I guess it's just managing risk tolerance. The target 2020 is at about 45/45/10 stocks/bonds/TIPS now. Are you saying that's way too conservative for you, even in retirement? The target funds look great for getting to retirement, maybe not afterward. I’m kicking my job to the curb in 2-3years and am in 2025/2035 (younger wife). I need to look at the lifestrategy funds..
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Nov 4, 2021 04:07
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SNiPER_Magnum posted:OK thanks, I'm checking out the LifeStrategy funds. I guess it's just managing risk tolerance. The target 2020 is at about 45/45/10 stocks/bonds/TIPS now. Are you saying that's way too conservative for you, even in retirement? The target funds look great for getting to retirement, maybe not afterward. Yes, most of the research on asset allocation for retirement say that 50-75% equities is the sweet spot for safe withdrawal rates. I think erring on the higher equity side is appropriate given today's low bond yield environment. This also depends on how much money you have. If you have a boatload of money, you can afford to be more conservative.
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Nov 4, 2021 12:58
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dexter6 posted:Nine times out of ten, lump sum investing ends up better. However, for many people Dollar Cost Averaging into something can make them feel better. I think it's more like 2 out of 3. https://static.twentyoverten.com/5980d16bbfb1c93238ad9c24/rJpQmY8o7/Dollar-Cost-Averaging-Just-Means-Taking-Risk-Later-Vanguard.pdf Also, that's with an insensitive schedule. What if you instead allow for some sensitivity. For example moving a buy date up if price falls below 95% of starting price, thereby increasing your chances of "buying the dip". Maybe you're not going to tip the scale to performing better than lump sum, but seems the cost for feeling better is pretty low. Of course I'm probably just justifying my choices
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Nov 4, 2021 19:58
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Happy Limit Raise Dayirs newswire posted:IRS announces 401(k) limit increases to $20,500 It's a shame they didn't touch the IRA limit or the catch up limits. Mad Wack fucked around with this message at 20:37 on Nov 4, 2021 |
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Nov 4, 2021 20:33
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Mad Wack posted:It's a shame they didn't touch the IRA limit or the catch up limits. Yeah, that's bullshit, especially for people not covered by a workplace plan. They need to be tripled (at least) for people who aren't covered by a workplace plan. Tax advantaged retirement tied to your employer is poo poo policy.
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Nov 4, 2021 20:49
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Hey smack me if this is dum dum posting, but I'm looking for a little advice, I have a tech job that pays enough I can't have an ira and my wife is a homemaker. I'm maxing my 401k, but not doing any real investing beyond that. My risk tolerance is relatively low right now (doomer brain) and I just want to make sure I'm not leaving anything on the table wrt smart safe investments. Right now my list of action items to do before the end of the year is: Open a Treasury Direct account for myself and my wife, and buy 10k each of iBonds. Open a spousal IRA for my wife and contribute the max to that. Is there anything else I should be making sure I do before EoY? I'm going to try to start contributing to a mega-backdoor Roth through work next year if I can, but house repairs etc have impeded doing that this year.
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Nov 4, 2021 22:07
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GEMorris posted:Hey smack me if this is dum dum posting, but I'm looking for a little advice, I have a tech job that pays enough I can't have an ira and my wife is a homemaker. I'm assuming you earn above the Roth IRA income limit. To contribute to your wife's IRA, you need to be married filing jointly. If you're over the income limit for MFJ ($208,000) then you can't contribute to a Roth IRA for yourself or for your wife. There are almost no scenarios where you Can contribute to a spouse's IRA but can't contribute to your own. You can do a Backdoor Roth (for now) though. https://www.nerdwallet.com/article/investing/backdoor-roth-ira What are you actually investing in within your 401k? Where is all your money going if you earn more than $208k but only save the 401k max each year?
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Nov 4, 2021 22:24
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GoGoGadgetChris posted:I'm assuming you earn above the Roth IRA income limit. Good catch, I didn't realize the income limits also applied to the spousal IRA until after I posted and started googling. I earn a bit above the limit but not much. My 401k oscillates between a mix of index funds and bonds, and sitting in cash if I'm panicking about the market (again doomer brain). I should just be like 40 s&p500, 40 Russel 1000, and 20 Bond funds. I know this. Where does all of my money go? Well mostly paying down debt and buying a house (and repairing that house). My current income levels are a relatively recent accomplishment. When I got my current job I was finally where I could get out of CC debt and max my 401k, after a couple of years I was where I could pay off student loans. Now I'm just at the point where I know I should be saving more but I'm not sure where to start.
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Nov 4, 2021 22:45
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GEMorris posted:Good catch, I didn't realize the income limits also applied to the spousal IRA until after I posted and started googling. Stop trying to time the market. Just stick it in a target retirement fund and stop fiddling with it, Vanguard is better at planning your retirement than you are
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Nov 4, 2021 23:14
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Jose Valasquez posted:Stop trying to time the market. Just stick it in a target retirement fund and stop fiddling with it, Vanguard is better at planning your retirement than you are You are making a rational point against something that is entirely irrational. I *know* this is the right thing but fear/panic is a strong motivator. Despite my poor decision making wrt sticking with investments, I'm wondering what other mattresses, aside from i bonds, I should be shoving cash into. Sounds like iBonds and the backdoor Roth (while it's still available) are the main answers I need.
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Nov 4, 2021 23:25
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Nov 4, 2021 23:34
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GEMorris posted:You are making a rational point against something that is entirely irrational. I *know* this is the right thing but fear/panic is a strong motivator. Assuming the fear/panic is that you'd be investing right before a crash, this is worth a read: https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/
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Nov 4, 2021 23:46
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Mad Wack posted:Happy Limit Raise Day
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Nov 4, 2021 23:48
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GEMorris posted:You are making a rational point against something that is entirely irrational. I *know* this is the right thing but fear/panic is a strong motivator. A IRA, Roth or traditional, isn't an investment product. It's a class of investment account with a particular legal status and tax advantages. You still have to determine what you're holding in that account, otherwise your contribution is just going to sit in a money market fund making -(inflation)%.
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Nov 5, 2021 00:54
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Kylaer posted:A IRA, Roth or traditional, isn't an investment product. It's a class of investment account with a particular legal status and tax advantages. You still have to determine what you're holding in that account, otherwise your contribution is just going to sit in a money market fund making -(inflation)%. Yes, but this is a different question from "this mattress I know about is full, what other mattresses should I be prioritizing?" surc posted:Assuming the fear/panic is that you'd be investing right before a crash, this is worth a read: yeah, really just need to fully internalize this.
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Nov 5, 2021 01:03
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you are allowed to contribute to an IRA, fyi, your contributions just aren't tax deductible for a trad IRA. but then there's backdoor roth IRA which you should be doing while you still can. edit: please for the love of christ stop loving with your 401(k) investment allocation
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Nov 5, 2021 01:32
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I'm new to the game. What's the favored broad mutual fund now? I've got 2/3rd my money in VTI and VOO.
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Nov 5, 2021 01:34
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KYOON GRIFFEY JR posted:edit: please for the love of christ stop loving with your 401(k) investment allocation This. ChocNitty posted:I'm new to the game. What's the favored broad mutual fund now? You doing good.
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Nov 5, 2021 01:35
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GEMorris posted:Yes, but this is a different question from "this mattress I know about is full, what other mattresses should I be prioritizing?" I would look at it from the other direction. After your typical spending, and saving an emergency fund if you don't have one, how much do you have left over to invest? Maybe that number roughly aligns with maxing out two backdoor Roths (and the I Bonds, which could be considered part of your emergency fund or not, up to you). But maybe it's more, in which case further investing would be the next step. If you don't have kids for whom to open a 529 nor an HSA, then a taxable account would typically be next. Take it from me, if you have a bunch of leftover cash after maxing your tax advantaged accounts, it's not the greatest idea to let it sit around and get eaten by inflation and interest taxes. edit: And, obviously, this: KYOON GRIFFEY JR posted:edit: please for the love of christ stop loving with your 401(k) investment allocation runawayturtles fucked around with this message at 01:39 on Nov 5, 2021 |
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Nov 5, 2021 01:36
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like if you are true doom and gloom, your portfolio should consist of MREs, fertilizer, seeds, and hand tools plus 5.56 / 9x19 / .22LR, potable water, fuel, and cigarettes if you are "doom and gloom" such that you cope by switching between classes of investments / cash your idea of doom and gloom is like for infants or toddlers and you just like to think you're smart
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Nov 5, 2021 01:50
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GEMorris posted:Yes, but this is a different question from "this mattress I know about is full, what other mattresses should I be prioritizing?" Don't time the market. If you insist on timing the market, the market is not for you. Is there any other debt you have? Car loan, student loans, mortgage? Shove money there until you can learn to not time the market. Unsubscribe from any news sources that talk about the economy at all.
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Nov 5, 2021 02:41
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GEMorris posted:Yes, but this is a different question from "this mattress I know about is full, what other mattresses should I be prioritizing?" If you’re retirement is on track, spend the extra. Take the trip, buy the watch or car or boat, fly first class, or whatever. Enjoy life while you have your health and mobility. Honestly retirement doesn’t seem to be all it’s cracked up to be and it doesn’t matter how many mattresses you have filled up if your body isn’t up to it or god forbid you don’t even make it to retirement. I’m watching family a generation before me retire and honestly it’s not all it’s cracked up to be. Find a nice balance if you haven’t already.
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Nov 5, 2021 02:46
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I'm not sure what doom brain means exactly, but maybe philanthropy is another avenue that could help you feel like your money isn't just going on the roulette wheel
Epitope fucked around with this message at 05:17 on Nov 5, 2021 |
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Nov 5, 2021 04:18
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Epitope posted:I'm not sure what doom brain means exactly, but maybe philanthropy is another avenue that could help you feel like your money isn't just going on the roulette wheel Doom brain is basically the thought of “between global warming, covid, the country going to poo poo, etc, there is no way that I can save for retirement, and even if I could, the planet will be destroyed in 30 years anyway. Smaller versions of that are like when people predict the economy or stock market will crash when xx person becomes president or whatever. Find a balance between saving money for later, and also enjoying the present (like travel or whatever), that fits your risk preference is the best I guess I can politely say it. And don’t time the market !!!!
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Nov 5, 2021 05:28
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