|
KYOON GRIFFEY JR posted: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 Whisky and vodka, too. Booze will be important.
|
#
?
Nov 5, 2021 05:33
|
|
|
|
| # ? Jun 5, 2024 16:15 |
|
|
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 describes the worldview of most of the posters on the SA forums, who desperately try to interpret news stories and current events as signs of the imminent apocalypse. The writer of the Book of Revelation would have been a goon, had SA existed back then.
|
|
#
?
Nov 5, 2021 11:21
|
|
|
The outcome that is much more likely to occur from all the global problems is that society continues, but quality of life for the (global) average person takes a dip. Humans are eminently adaptable so I don’t see sustained catastrophe as a likely outcome. Additionally, if you make enough money that you exceed the Roth IRA limit, you will be fine. So you owe it to yourself to ensure that your future is funded because there probably won’t be an apocalypse to give you a quick out.
|
|
#
?
Nov 5, 2021 11:45
|
|
|
silence_kit posted:doom brain describes the worldview of most of the posters on the SA forums, who desperately try to interpret news stories and current events as signs of the imminent apocalypse. The writer of the Book of Revelation would have been a goon, had SA existed back then. And the prophet thus spake: "A Doom House?" Then the spirit warned him in reply: "Yeah, Doom."
|
|
#
?
Nov 5, 2021 14:23
|
|
|
“You can’t just kill thousands of people and get away with it!” everyone says, all the time, forever. “This is unsustainable!” And yet here we are, 10% annualized gains on my VTI poo poo despite the everything that’s been happening
|
|
#
?
Nov 5, 2021 14:33
|
|
|
not mentioned in the press release but stated in the actual Notice is that the 415(c)(1)(A) limit is also increasing from $58k to $61k (relevant for my fellow mega-backdoor users).
|
|
#
?
Nov 5, 2021 14:50
|
|
|
Mr. Glass posted:not mentioned in the press release but stated in the actual Notice is that the 415(c)(1)(A) limit is also increasing from $58k to $61k (relevant for my fellow mega-backdoor users). https://www.cnbc.com/2021/11/04/democrats-put-401k-and-ira-restrictions-back-into-build-back-better.html 
|
|
#
?
Nov 5, 2021 15:06
|
|
|
I know there’s some weird trick to stuff assets that increase in value dramatically into Roth IRAs, but I love the idea that backdoor Roth definitely must be removed because computer touchers in high COL areas might manage to put a few thousand dollars a year into a tax sheltered account. The phase out is a dumb idea anyway imo. It’s $6k; who cares? Meanwhile companies “move” to Ireland or wherever and get away with paying nothing at all. Cool cool.
|
|
#
?
Nov 5, 2021 15:47
|
|
|
These moves are not about taxing the rich. They're about stomping on the fingers of people attempting to climb the socioeconomic ladder. The actual rich at the top care nothing about backdoor Roth shenanigans, that level of tax avoidance is so small as to be meaningless to them.
|
|
#
?
Nov 5, 2021 16:02
|
|
|
^^^^^^ Yeah, it's this.Loucks posted:I know there’s some weird trick to stuff assets that increase in value dramatically into Roth IRAs, but I love the idea that backdoor Roth definitely must be removed because computer touchers in high COL areas might manage to put a few thousand dollars a year into a tax sheltered account. The phase out is a dumb idea anyway imo. It’s $6k; who cares? Don't forget that if you have really big boy money you can just buy shiny baubles/artwork for millions of dollars and store them in warehouses that aren't technically a part of any country. But that extra $6k a year for people who make enough to save it.......well, that's a bridge too far.
|
|
#
?
Nov 5, 2021 16:10
|
|
|
Kylaer posted:These moves are not about taxing the rich. They're about stomping on the fingers of people attempting to climb the socioeconomic ladder. The actual rich at the top care nothing about backdoor Roth shenanigans, that level of tax avoidance is so small as to be meaningless to them. Yup
|
|
#
?
Nov 5, 2021 16:14
|
|
|
drainpipe posted:The outcome that is much more likely to occur from all the global problems is that society continues, but quality of life for the (global) average person takes a dip. Humans are eminently adaptable so I don’t see sustained catastrophe as a likely outcome. jokes posted:“You can’t just kill thousands of people and get away with it!” everyone says, all the time, forever. “This is unsustainable!” Yeah this, entirely this. Apparently the best modern policy can do at easing suffering is removing the SALT cap. 
|
|
#
?
Nov 5, 2021 16:21
|
|
|
I definitely think they should limit IRAs to publicly available investments to prevent another billion dollar tax avoidance Thiel situation. But yeah, preventing using them entirely is dumb. The only good reason to completely remove the backdoor is to open the front door at the same time.
|
|
#
?
Nov 5, 2021 18:17
|
|
|
Ok I have a long list of individual responses below, feel free to scroll on past. What I do want to get feedback on is if the following sounds like a good course of action: 401k: 40% VFFSX 40% VRGWX 20% BND - rebalance once per year, don't look at it otherwise, give the login info to my spouse so I'm not accessing it without someone else around. 20k of iBonds per year. Will slowly replace much of our emergency fund, but won't evaporate to inflation. Once we get the last of our new home repairs done ($$$ roof) start putting cash into a mega-backdoor Roth, if that remains an available option. Is this how you do it and not gently caress it up? CubicalSucrose posted: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. Already said I paid debt off first. Well, maxed 401k and then paid off debt. I'm an idiot in some aspects of finances, but not all of them. Unsubbing from econ news is a good idea. Thank you. KYOON GRIFFEY JR posted: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 This is really reductive, views on doom and the best way to approach it are more varied than this (which is separate from arguments about the actual likelihood of doom). Trying to build a community with your neighbors is likely infinitely more effective than prepper fantasies. Making sure your shelter etc. are all in good repair and working order is probably going to do a lot more for you if suddenly there are shortages everywhere. My specific "pull the money out" actions are more about the idea of "preserving any safety net at all" if I start to feel like it is all crashing down. It's not rational or the right decision, but that's where it came from. My last portfolio move was when the whole evergrande thing started, and I did time it before that dip in October, but instead of buying back in I stayed out. Ultimately a bad move. Your response really seems to be about trying to get a quick dunk in rather than trying to help someone who already recognizes their problem, so please post better. Duckman2008 posted: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. This is it. Duckman2008 posted:And don’t time the market !!!! And so is this. drainpipe posted:Additionally, if you make enough money that you exceed the Roth IRA limit, you will be fine. So you owe it to yourself to ensure that your future is funded because there probably won’t be an apocalypse to give you a quick out. Hey, this framing is incredibly loving helpful, thank you. 100% serious. jokes posted:“You can’t just kill thousands of people and get away with it!” everyone says, all the time, forever. “This is unsustainable!” This is why my brain keeps breaking. The complete disconnect between markets and material reality.
|
|
#
?
Nov 5, 2021 19:03
|
|
|
GEMorris posted:This is why my brain keeps breaking. The complete disconnect between markets and material reality. The reality is that prices went up and there are enough people with money that are still buying, so the companies that comprise "the market" are worth more. There is no disconnect with reality unless you're missing the part where economic inequality is very much a thing and getting worse. People with money still have plenty of it to spend.
|
|
#
?
Nov 5, 2021 19:10
|
|
|
We need a boilerplate bot so that every time someone posts about timing the market, we just respond with "!markettiming" and it posts the sim city advisor image with appropriate text
|
|
#
?
Nov 5, 2021 19:13
|
|
|
The stock market is not and has never been an indicator of total economic performance. Often, stocks themselves are an absolutely terrible indicator of the company’s performance. This is why you diversify and invest only in the long term. Please stop thinking about the stock market and just invest in the stock market!!
|
|
#
?
Nov 5, 2021 21:38
|
|
|
Sigh...my wife wanted to talk to a financial advisor today on a recommendation and lol this person was bad. "Keep your combined earnings below $400k so you don't get into the new higher tax bracket". "Ok I'll let my boss know not to give me that raise. Or maybe do you know how I can hide my earnings from the IRS?" 
|
|
#
?
Nov 5, 2021 23:03
|
|
|
Some financial advisors don’t know the difference between margin and margarine. I forget the link but there are good fee-only CFPs who will do thangs for you(r wife), easily findable via NAPFA. IIRC goons recommend NAPFA to find good advisors.
|
|
#
?
Nov 5, 2021 23:47
|
|
|
jokes posted:Some financial advisors don’t know the difference between margin and margarine. I forget the link but there are good fee-only CFPs who will do thangs for you(r wife), easily findable via NAPFA.
|
|
#
?
Nov 6, 2021 00:16
|
|
|
GEMorris posted:This is really reductive, views on doom and the best way to approach it are more varied than this (which is separate from arguments about the actual likelihood of doom). try investing better
|
|
#
?
Nov 6, 2021 01:26
|
|
|
KYOON GRIFFEY JR posted:try investing better Or just try getting out of CSPAM, guaranteed to improve your outlook within a week or your money back.
|
|
#
?
Nov 6, 2021 01:40
|
|
|
So, I have about AUD 70,000 to put in an investment portfolio (after a 12 month emergency fund and my superannuation (retirement) contributions are taken care of). This is a long-term portfolio, I have no real need for the money in the foreseeable future but I also don't want to pursue risky gains. I've come up with this portfolio. Would love advice on balancing...I think it might be too heavy in bonds and gold. Investment / balance Vanguard MSCI Index International Shares ETF - VGS VGS 20.00% Vanguard Australian Property Securities Index ETF VAP 10.00% Vanguard Australian Government Bond Index ETF VGB 10% Vanguard FTSE Emerging Markets Shares ETF VGE 20.00% Vanguard Australian Shares Index ETF VAS 35.00% gold.asx Gold.asx 5.00% Also not sure if this is the right place to ask for advice about this so apologies in advance  I'm 34 btw.' Edit: Oh, I should put some extra information: - Married with a kid - Own my house, mortgage about $331,000, worth about $600,000 - My income is about AUD $180k a year, wife makes about AUD $14k in a part time role Bearinabox fucked around with this message at 02:14 on Nov 6, 2021 |
|
#
?
Nov 6, 2021 02:05
|
|
|
Sardonik posted:Yeah this, entirely this. Apparently the best modern policy can do at easing suffering is removing the SALT cap. Looking forward to the $5000 a year extra I'll save on my taxes if/when this passes, although in reality when it expires in 2025 
|
|
#
?
Nov 6, 2021 02:36
|
|
|
Pham Nuwen posted:Or just try getting out of CSPAM, guaranteed to improve your outlook within a week or your money back. Nah, posting in cspam is good and cool. Just don’t let it dictate your investment strategy. 
|
|
#
?
Nov 6, 2021 02:56
|
|
|
KYOON GRIFFEY JR posted:try investing better Since you are the expert, how about providing some useful feedback on this plan then? You seem to want to be aggressively unhelpful. GEMorris posted:What I do want to get feedback on is if the following sounds like a good course of action:
|
|
#
?
Nov 6, 2021 04:34
|
|
|
is there a recommended algorithm for when to rebalance your investments? I get the whole "have a strategy, don't do it just cuz you think the market's high or whatever", but I haven't rebalanced since I last posted in 2019 and my 87/13 ongoing investment strategy has become 91/9 actual mix due to the tear stocks are on. also, I guess, in this specific case where my bonds have wandered way off the reservation - do I like, DCA it by moving down a % a week or something like that for 4 weeks, or what?
|
|
#
?
Nov 6, 2021 04:34
|
|
|
GEMorris have you considered just doing a target date fund? Why those two stock funds in particular? They cover a lot of the same ground.
|
|
#
?
Nov 6, 2021 04:38
|
|
|
Paul MaudDib posted:is there a recommended algorithm for when to rebalance your investments? I get the whole "have a strategy, don't do it just cuz you think the market's high or whatever", but I haven't rebalanced since I last posted in 2019 and my 87/13 ongoing investment strategy has become 91/9 actual mix due to the tear stocks are on. On the day that you rebalance, either sell some of the 91 and use it to buy the 9 so that it becomes 87/13 or buy enough 9 with new money to make it 13. DCA doesn't matter except for psychological games, or if you're trying to time the market.
|
|
#
?
Nov 6, 2021 04:41
|
|
|
Mu Zeta posted:GEMorris have you considered just doing a target date fund? Why those two stock funds in particular? They cover a lot of the same ground. I was trying to minimize management fees, these funds have like .011 and .02, BND is .035 I think I had read in the past that target date funds often contained products with higher management fees which is why I've always steered away from them? Could be operating off of bad info.
|
|
#
?
Nov 6, 2021 04:43
|
|
|
oh, one other question. So, I'm worried about this company's near-term future and I'm looking to job hop very soon. Like, I'm not sure if the company will exist in a year, or at least I expect it to be acquired at a huge discount by some sharks or whatever. We are the classic "for profit non profit" where all the "profit" gets shunted into real estate/etc and we have a massive war chest, like I'm guessing mid tens/low hundreds of millions of dollars, which seems to make us a huge target for acquisitions, and the CEO is trying to fluff the revenue numbers/etc by squeezing employees/etc and preaching "the numbers are down down down!"/etc. so, what happens if they go under? Does the plan continue to exist at the previous ERs and so on? Or would I have to contribute what the employer currently does? Or what? if we get acquired, I assume they then get to set the plan details/etc? Paul MaudDib fucked around with this message at 05:06 on Nov 6, 2021 |
|
#
?
Nov 6, 2021 04:45
|
|
|
GEMorris posted:I was trying to minimize management fees, these funds have like .011 and .02, BND is .035 If you want to minimize fees and do it yourself, you want a three fund portfolio. The Vanguard version is VTSAX, VTIAX, VBTLX. You probably don't have access to all of those. Making sure you're well diversified is at least as important as minimizing fees. But really, just dumping your money in a target date fund is fine. Totally 100% fine. Especially if you have doomer tendencies and are thinking about having a wife interlock so that you can only login when she's around.
|
|
#
?
Nov 6, 2021 05:06
|
|
|
Infra bill passed, but BBB was deferred.Kylaer posted:These moves are not about taxing the rich. They're about stomping on the fingers of people attempting to climb the socioeconomic ladder. The actual rich at the top care nothing about backdoor Roth shenanigans, that level of tax avoidance is so small as to be meaningless to them. Yeah. This is my first year having access to the mega-backdoor 401k strategy, and it looks like it may get ripped away. Not happy about that.
|
|
#
?
Nov 6, 2021 05:17
|
|
|
Paul MaudDib posted:is there a recommended algorithm for when to rebalance your investments? I get the whole "have a strategy, don't do it just cuz you think the market's high or whatever", but I haven't rebalanced since I last posted in 2019 and my 87/13 ongoing investment strategy has become 91/9 actual mix due to the tear stocks are on. What type of buckets do you have and how often are you adding new money? If you can rebalance by adjusting where your contributions go (for example if all of your funds are in a taxable brokerage account that you put money into every month), then you can just do that each month. There's some research suggesting rebalancing annually or quarterly is probably fine, unless you've got a bizarre asset allocation with a bunch of small chunks. It would be  to dig up but I think Kitces and Vanguard are two sources.
|
|
#
?
Nov 6, 2021 05:18
|
|
|
Happiness Commando posted:We need a boilerplate bot so that every time someone posts about timing the market, we just respond with "!markettiming" and it posts the sim city advisor image with appropriate text 
|
|
#
?
Nov 6, 2021 05:19
|
|
|
CubicalSucrose posted:What type of buckets do you have and how often are you adding new money? If you can rebalance by adjusting where your contributions go (for example if all of your funds are in a taxable brokerage account that you put money into every month), then you can just do that each month. it's a 401k with vanguard 500 and vanguard bond index, contributions semimonthly
|
|
#
?
Nov 6, 2021 05:22
|
|
|
Paul MaudDib posted:is there a recommended algorithm for when to rebalance your investments? I get the whole "have a strategy, don't do it just cuz you think the market's high or whatever", but I haven't rebalanced since I last posted in 2019 and my 87/13 ongoing investment strategy has become 91/9 actual mix due to the tear stocks are on. https://www.kitces.com/blog/best-opportunistic-rebalancing-frequency-time-horizons-vs-tolerance-band-thresholds/ i use the relative tolerance bands detailed in this article, essentially rebalance only when an asset move 20% relative to your target. so 20% of 13% is 2.6%, so you'd rebalance your bonds back to their target percentage when they rose above ~15.6% of your portfolio and below ~10.4%. more flexible than a calendar based approach, and splitting the difference between responding to minor market fluctuations and only responding to once a decade market movements Happiness Commando posted:If you want to minimize fees and do it yourself, you want a three fund portfolio. The Vanguard version is VTSAX, VTIAX, VBTLX. You probably don't have access to all of those. Making sure you're well diversified is at least as important as minimizing fees. seconding this, the 3 to 5 basis points of extra fees is more than worth it if the simplicity of a target date fund helps you take a more hands off approach to your investing
|
|
#
?
Nov 6, 2021 05:26
|
|
|
GEMorris posted:I was trying to minimize management fees, these funds have like .011 and .02, BND is .035 Some target date funds have much higher fees but there's plenty of good ones. If it's like .15 that's fine since it saves you from having to worry about it.
|
|
#
?
Nov 6, 2021 06:00
|
|
|
Hadlock posted:Looking forward to the $5000 a year extra I'll save on my taxes if/when this passes, although in reality when it expires in 2025 RIP my salt deduction repeal
|
|
#
?
Nov 6, 2021 10:24
|
|
|
|
| # ? Jun 5, 2024 16:15 |
|
|
Paul MaudDib posted:it's a 401k with vanguard 500 and vanguard bond index, contributions semimonthly Since it's a 401k you don't have any tax issues which is nice, so just mechanically sell and buy to get back to your target allocation. Tolerance bands if you want to pay attention, yearly if you don't want to have to think about anything.
|
|
#
?
Nov 6, 2021 13:25
|
|