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GhostofJohnMuir posted:a bad year, especially early on in retirement, can have a very negative effect on the long-term success of a retirement portfolio. see the monte carlo simulations comparing a $1,000,000 initial portfolio, with a 4% withdrawal, over 30 years. Thanks I think this helps me frame my question better. If you change to 60/40 stocks cash, success rate goes down. Of course this all depends on the definition of success, but matching financial product to goal is key. I think this will help me see how bonds fit in the strategies.
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Feb 3, 2022 21:38
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I'm currently in the middle of doing my taxes and stupidly, did not set any money aside for the money I owe. I received a 1099-DIV and my overall taxes is much larger than what I'm used to. What do I need to do in the future, to prepare for something like this, aside from just randomly saving money to pay my taxes.
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Feb 4, 2022 00:38
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obi_ant posted:I'm currently in the middle of doing my taxes and stupidly, did not set any money aside for the money I owe. I received a 1099-DIV and my overall taxes is much larger than what I'm used to. What do I need to do in the future, to prepare for something like this, aside from just randomly saving money to pay my taxes. I put single and zero withholdings (not sure what that equals on the newer W4) and that covers my other earnings unless I sell a bunch of stock at a gain for some reason. I usually end up at around $1000 refund which is close enough for me.
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Feb 4, 2022 00:42
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If you received a 1099-DIV you received money, so some of that money probably should have been saved to cover taxes. If it was a dividend that got reinvested into a taxable account you presumably have some shares that you might be able to sell? Unless things tanked hard for you you're still better receiving the dividend and paying taxes on it than not.
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Feb 4, 2022 00:45
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lots of people have auto dividend reinvestment
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Feb 4, 2022 00:52
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Who has a tech-heavy-portfolio-and-had-been-wondering-when-to-stop-gambling-and-just-change-the-tech-fund-to-a-TDF-like-the-rest-of-his-holdings-for-like-an-entire-year-but-kept-riding-it-because-dumb and has two thumbs?
Jows fucked around with this message at 15:58 on Feb 4, 2022 |
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Feb 4, 2022 15:56
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Oh...oh dear God
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Feb 4, 2022 18:54
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If 80% of their portfolio is going to do "great", why do they need help with the other 20%? They could light it on fire and still come out good. If they are going to put 80% into a single stock, why even try to pretend that they believe in diversification to reduce risk, just go 100%.
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Feb 4, 2022 20:23
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These people have put their life completely into the hands of Elon Musk. I cannot think of a worse idea.
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Feb 4, 2022 21:30
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My girlfriend used to work at Citibank and had a 401k with them. When she left, they automatically moved the money out of her 401k into a Citi managed rollover IRA (traditional). It's in a 0.2% money market account. She has a 401k with her current employer and a Roth IRA through Vanguard. Obviously we don't want to leave it in the money market fund but we also don't want to do anything that would be a taxable event. What do we do?
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Feb 4, 2022 21:59
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If it's in a trad IRA dump it in to her 401(k) plan assuming a) it's a traditional 401(k) and not a Roth 401(k), and b) the 401(k) plan allows you to roll in IRAs.
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Feb 4, 2022 22:05
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KYOON GRIFFEY JR posted:If it's in a trad IRA dump it in to her 401(k) plan assuming a) it's a traditional 401(k) and not a Roth 401(k), and b) the 401(k) plan allows you to roll in IRAs. I'm 99.9% sure it's a traditional 401(k). I'll have her check with her HR if they allow rolling in IRAs.
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Feb 4, 2022 22:07
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jjack229 posted:If 80% of their portfolio is going to do "great", why do they need help with the other 20%? They could light it on fire and still come out good. I highly doubt the Twitter guy is being completely honest, but I suppose it's possible. If the latter, I'd guess that they invested a bit of cash in TSLA a few years back and much of their $1MM portfolio is simply from Tesla's huge stock price increase in recent years. Good news, though. If your stock is trending NE, it always will.
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Feb 4, 2022 22:10
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Tell them to put the other 20% into Tesla, obviously
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Feb 4, 2022 22:12
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My suggestion will not incur any taxes. If for whatever reason you can't do that, at minimum you can change what she's invested in within the Trad IRA to something more aligned with long term goals like a TDF or total market / SPY fund.
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Feb 4, 2022 22:16
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KYOON GRIFFEY JR posted:My suggestion will not incur any taxes. If for whatever reason you can't do that, at minimum you can change what she's invested in within the Trad IRA to something more aligned with long term goals like a TDF or total market / SPY fund. If we need to keep it in an IRA, can we move the IRA over to Vanguard? She invests into a Roth there, but doesn't make enough that she has to backdoor (yet). I guess it would probably be a problem if she ever needed to start backdooring though.
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Feb 4, 2022 22:19
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Long Term Investing & Retirement: Talking to your Girlfriend about Backdooring
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Feb 4, 2022 22:39
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Long Term Investing & Retirement: Backdooring gets harder when you're married.
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Feb 4, 2022 22:43
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Residency Evil posted:Long Term Investing & Retirement: Backdooring gets harder when you get married. It gets easier because then we both have to do it instead of just me 
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Feb 4, 2022 22:44
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Welp, at least I'm seeing something else outside of the endless "Just buy real estate!" advertisements or gold.
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Feb 4, 2022 23:41
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KillHour posted:If we need to keep it in an IRA, can we move the IRA over to Vanguard? She invests into a Roth there, but doesn't make enough that she has to backdoor (yet). I guess it would probably be a problem if she ever needed to start backdooring though. The existence of any trad IRA balance will interfere with your ability to backdoor, I think. You can definitely move it over to Vanguard. If you are willing to pay some taxes, you could convert the whole balance to Roth and roll it in to her IRA, but you said you didn't want to pay any taxes so I didn't suggest that (and anyway, rolling in to the 401(k) if possible is better)
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Feb 4, 2022 23:57
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MrLogan posted:Long Term Investing & Retirement: Talking to your Girlfriend about Backdooring 
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Feb 5, 2022 00:05
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I backdoored my wife this year since she is interested in having her own retirement account but she seemed very bored by what I was doing.
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Feb 5, 2022 00:16
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YanniRotten posted:I backdoored my wife this year since she is interested in having her own retirement account but she seemed very bored by what I was doing. Maybe she would be more interested if it was a larger transaction?
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Feb 5, 2022 05:20
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KillHour posted:Maybe she would be more interested if it was a larger transaction? And exceed the contribution limit? If that's what she wants she'll have to get it somewhere else!
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Feb 5, 2022 12:59
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Ok, so I'm 80% sure this falls within the purview of this thread, but my apologies to those who feel it falls into the 20. Upon the death of both of my girlfriend's paternal grandparents a few years ago she began receiving distributions from what I believe is their estate trust. She receives 3K monthly, her mom receives 1K (her dad died 20+ years ago). My understanding is that the assets of the trust include 6 properties in the Austin area. Having some accounting education, there's some elements of this trust that make me extremely suspicious. For one thing the trust was set up and I believe is executed by a friend of the grandparents in their 70s who is a CPA. He has been doing the family's taxes, including the taxes for the estate for free since the father passed. This seems like a rather large opportunity for fraud, though I can't speak to the other two elements of the fraud triangle as I don't know the guy personally. The trust is set up to be liquidated to her upon her turning 40, which seems insanely late too. The other thing is that relative to the assets in the trust the payout amounts seems extremely low. Given the bonkers increase of rents in the Austin area, I can't help but wonder where the rest of that money is going (other than property tax). At best I would assume it's being put back into the trust and invested, but neither her nor I have any visibility on that currently. So all that said, what I'm concerned about is that the executor of her trust may be embezzling the trust. While I suppose he has been doing the taxes for free much longer than the trust has existed I can't help but wonder. Is there like some kind of statement of cash flows of the trust that we can request from them? Could we trust the statement they produce? Is this something we need to hire a professional to look into? For all I know this is legitimately an old family friend CPA helping out the family, am I wrong to see red flags all over this? She confirmed the details of this post, and knows I'm making it.
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Feb 6, 2022 02:53
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Residency Evil posted:Long Term Investing & Retirement: Backdooring gets harder when you're married. I'm honored.
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Feb 6, 2022 03:05
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As a beneficiary of the trust, your girlfriend should be receiving a K1 annually and a regular accounting of the trust assets and income. Those documents will go a long way to answering what is going on with the money.
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Feb 6, 2022 03:11
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obi_ant posted:I'm currently in the middle of doing my taxes and stupidly, did not set any money aside for the money I owe. I received a 1099-DIV and my overall taxes is much larger than what I'm used to. What do I need to do in the future, to prepare for something like this, aside from just randomly saving money to pay my taxes. Try to keep your higher dividend stocks inside a tax protected retirement account if possible. Beyond that not a lot you can do, dividends are generally treated as normal taxable income. If they're qualified dividends, that income may be at a lower tax rate, but you'll still be paying taxes on them. The way the tax code treats dividends versus capital gains is silly. It goes a long way to explaining why so many corporations now prefer buying back their own stock instead of paying out dividends, buying back shares will increase the price of the stock but won't trigger taxes until the shareholders choose to sell.
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Feb 7, 2022 18:41
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Anyone run into transaction delays with Vanguard recently? I placed a buy order for VTSAX & VTIAX Sunday ~noon, and both orders are still pending. It's concerning that they didn't post at the end of the day the way they usually do.
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Feb 8, 2022 04:59
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Loucks posted:Anyone run into transaction delays with Vanguard recently? I placed a buy order for VTSAX & VTIAX Sunday ~noon, and both orders are still pending. It's concerning that they didn't post at the end of the day the way they usually do. It will go through at today’s closing price and you’ll see the completed transaction around midnight PST tonight very likely.
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Feb 8, 2022 06:31
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Loucks posted:Anyone run into transaction delays with Vanguard recently? I placed a buy order for VTSAX & VTIAX Sunday ~noon, and both orders are still pending. It's concerning that they didn't post at the end of the day the way they usually do. I just did a purchase last week and this week, both times it showed it pending immediately, and goes through overnight where I see it the next today. Tbh I don’t remember them ever showing at the end of the day, although I honestly also don’t check because I assumed it wouldn’t show until next day.
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Feb 8, 2022 14:20
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Thanks, it did go through overnight. I could be crazy, but when I did my backdoors early last month the trades went through much sooner. I could also be completely wrong I guess.
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Feb 8, 2022 14:42
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In this case it's a matter of many thousands (hundreds of thousands?) of mutual fund buy and sell transactions all happening in the same couple of hours after market closes, and Vanguard being slow to update your account to show it. I think it would be good if they updated your account with some kind of status "pending" or "processing" or something in the interim, though, it's kinda lovely to leave you in the dark.
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Feb 8, 2022 19:54
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I’m hearing a lot about the change to the 1099-K decreasing the reporting limit from $20,000 to $600 for selling personal items. Has that gone into effect yet? Are friends and family payments on PayPal included in that? (Housemates and I use PayPal to share costs)
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Feb 8, 2022 20:53
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Valicious posted:I’m hearing a lot about the change to the 1099-K decreasing the reporting limit from $20,000 to $600 for selling personal items. Has that gone into effect yet? Are friends and family payments on PayPal included in that? (Housemates and I use PayPal to share costs) PayPal only includes it if the person sending you money checks "this is for goods or services"
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Feb 8, 2022 20:56
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KillHour posted:PayPal only includes it if the person sending you money checks "this is for goods or services" Same with Venmo.
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Feb 9, 2022 02:27
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If you're checking the "tax me" box, you're really bad at tax evasion.
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Feb 9, 2022 03:20
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About to drop a chunky five figures in the retirement fund. Not sure what to do. Just choose indexes that relate to stock, market, and overseas funds? I work really hard for this so I hate being so uninformed about where I put it.
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Feb 9, 2022 03:30
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Cheese Thief posted:About to drop a chunky five figures in the retirement fund. Not sure what to do. Just choose indexes that relate to stock, market, and overseas funds? I work really hard for this so I hate being so uninformed about where I put it. You say 5 figures - is this two IRAs? Also read the OP.
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Feb 9, 2022 03:31
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