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I thought the line about "Why do wealthy people own stocks, while poor people are less likely to own stocks?" was going to be a joke and not a sincere question by the Yale Economist
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# ? Oct 18, 2022 02:18 |
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# ? May 27, 2024 09:11 |
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GoGoGadgetChris posted:I thought the line about "Why do wealthy people own stocks, while poor people are less likely to own stocks?" was going to be a joke and not a sincere question by the Yale Economist On one hand, I do appreciate the need to challenge our assumptions about what appear to be obvious things by studying them empirically. For example, you might think it's better to charge EVs overnight when power demand is low, but that's not necessarily the case: https://www.latimes.com/california/story/2022-09-24/california-electric-vehicles-daytime-charging-power-grid-study That said.. lol takes a Yale economist to figure out why people with no money can't buy things with the money they don't have huh?
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# ? Oct 19, 2022 21:43 |
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totalnewbie posted:That said.. lol takes a Yale economist to figure out why people with no money can't buy things with the money they don't have huh? Economics has a huge divide between macro and micro economists and you frequently get galaxy brain takes about micro economic issues from macro economists, especially when it seems like a macro question.
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# ? Oct 19, 2022 22:02 |
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edit: wrong thread to make up for mispost, here's some long-term content very pretty chart https://twitter.com/bespokeinvest/status/1582814648507633664
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# ? Oct 19, 2022 23:00 |
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This is the kind of poo poo that people love to soak up but is so completely meaningless.
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# ? Oct 20, 2022 05:49 |
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It might help convince someone not to sell on a down day? Maybe?
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# ? Oct 20, 2022 07:17 |
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good news for next year: the IRS is increasing the 401k contribution limit to $22500 and the overall limit to $66000 (mainly due to inflation). https://www.irs.gov/pub/irs-drop/n-22-55.pdf
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# ? Oct 21, 2022 18:27 |
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Hey how about the IRA which everyone has equal access to and fully controls, how about that one? oh
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# ? Oct 21, 2022 18:39 |
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i mean that's getting a $500 bump too but yeah it's never made sense to me that it's a separate limit
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# ? Oct 21, 2022 18:43 |
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one individual retirement account that you control that your employer can contribute to would be too simple and favorable to the employee so of course it cannot be done
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# ? Oct 21, 2022 18:47 |
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Owns that my employer is tasked with providing up to $43,500 of my annual retirement savings and they're like "nah how about $3k"
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# ? Oct 21, 2022 18:58 |
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GoGoGadgetChris posted:Owns that my employer is tasked with providing up to $43,500 of my annual retirement savings and they're like "nah how about $3k" i currently have the best 401k plan i've ever heard of and there's still a $30000 gap that can only be filled by using an insane tax rules loophole (mega backdoor)
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# ? Oct 21, 2022 19:06 |
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Mr. Glass posted:i currently have the best 401k plan i've ever heard of and there's still a $30000 gap that can only be filled by using an insane tax rules loophole (mega backdoor) I don't even understand the logic behind it. Do C-level's get 200% match on the 401K or something? What is the point of having such a high total contribution limit when someone can only contribute up to a third of it, and I've never seen a company offer more than 6% match (or 100% match for the first 6% as they prefer to phrase it)
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# ? Oct 21, 2022 19:15 |
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SpartanIvy posted:Same, except my company's plan doesn't offer the mega backdoor so I'm just SoL. Uh yes. They often get things like unfunded contributions.
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# ? Oct 21, 2022 19:16 |
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SpartanIvy posted:Same, except my company's plan doesn't offer the mega backdoor so I'm just SoL. politicians are often self-employed in their side hustle that's really the entire reason
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# ? Oct 21, 2022 19:19 |
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Speaking of mega-back doors, what will I have to do if I accidentally squeak over the $61k limit? I am trying to avoid meticulously charting everything out, and have reduced my contribution now to just the point where I max my employer contribution. I think I am going to be safely below the limit by about a pay period, but curious how much I should be really making sure.
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# ? Oct 21, 2022 19:34 |
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SpartanIvy posted:Same, except my company's plan doesn't offer the mega backdoor so I'm just SoL. The IRS also places limits on the amount of compensation that can be matched (300kish), so if you get an 8% match on 300k, you're still missing out on the full amount even after your own 20k.
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# ? Oct 21, 2022 19:36 |
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ROJO posted:Speaking of mega-back doors, what will I have to do if I accidentally squeak over the $61k limit? I am trying to avoid meticulously charting everything out, and have reduced my contribution now to just the point where I max my employer contribution. I think I am going to be safely below the limit by about a pay period, but curious how much I should be really making sure. Your company doesn't cut off automatically at contribution limits? I would think most do.
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# ? Oct 21, 2022 19:37 |
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SpartanIvy posted:Same, except my company's plan doesn't offer the mega backdoor so I'm just SoL. there are various fairness tests to try to avoid having this type of stuff happen
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# ? Oct 21, 2022 19:41 |
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Mr. Glass posted:i mean that's getting a $500 bump too but yeah it's never made sense to me that it's a separate limit Shockingly it actually went up to $7500.
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# ? Oct 21, 2022 19:44 |
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ROJO posted:Speaking of mega-back doors, what will I have to do if I accidentally squeak over the $61k limit? I am trying to avoid meticulously charting everything out, and have reduced my contribution now to just the point where I max my employer contribution. I think I am going to be safely below the limit by about a pay period, but curious how much I should be really making sure. usually the only way for this to happen is if you changed jobs this year and your new 401k administrator doesn't know how much you put in on your old plan. every plan i've heard of will stop taking contributions once you hit the limit (since it's almost certainly even more annoying for them to straighten out than it is for you).
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# ? Oct 21, 2022 19:46 |
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spwrozek posted:Shockingly it actually went up to $7500. I'm reading that's the catch-up limit if you're over 50.
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# ? Oct 21, 2022 19:48 |
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It's $6500 if you're under 50
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# ? Oct 21, 2022 19:48 |
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Fezziwig posted:I'm reading that's the catch-up limit if you're over 50. The first result on google has all the wrong info. great. lol.
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# ? Oct 21, 2022 19:53 |
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withak posted:Your company doesn't cut off automatically at contribution limits? I would think most do. I was assuming the worst and wasn't trusting my employer to be that smart, but maybe fidelity is? I guess I will call. Thanks!
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# ? Oct 21, 2022 20:08 |
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spwrozek posted:The first result on google has all the wrong info. great. lol. Seems to work fine for me
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# ? Oct 21, 2022 20:19 |
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withak posted:Your company doesn't cut off automatically at contribution limits? I would think most do. It's not that simple, since $61K includes your pretax, your match, your profit sharing contributions, everything. It'd be bad to be cut-off prematurely, since you still want to squeeze in your non-mega-backdoor contributions/matches. In short, you should plan carefully ahead of time.
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# ? Oct 21, 2022 20:23 |
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Super Dan posted:Seems to work fine for me had I guess? The article has been edited that it took me to. doesn't really matter. $6500, it is dumb, keep maxing it out.
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# ? Oct 21, 2022 21:42 |
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This all sounds unnecessarily dumb and complicated.
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# ? Oct 21, 2022 21:46 |
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fans of logging in to treasurydirect: I got around to making a tampermonkey script to allow logging in with a password managercode:
drk fucked around with this message at 01:36 on Oct 22, 2022 |
# ? Oct 22, 2022 00:02 |
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I’m catching up in the thread, and I’m a bit confused. What’s the $61k limit that’s being talked about?
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# ? Oct 22, 2022 00:19 |
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Valicious posted:I’m catching up in the thread, and I’m a bit confused. What’s the $61k limit that’s being talked about? Limit of 401k employEE AND employER contributions.
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# ? Oct 22, 2022 00:43 |
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Which means it's effectively the maximum amount of dollars that rich self-employed people can stuff into the 401k space of their tax advantaged savings. If you're self-employed and your business makes like $400k a year you can pay yourself a salary, put your $22k out of your salary into the 401k, and then your business adds in another 39k in employee contributions. Do this every year for thirty years and you've stuffed 1.8M just in contributions into tax-advantaged space. Note: it is a little more complicated than I'm making it sound, see https://www.bankrate.com/retirement/401k-contributions/ but this is the gist. Leperflesh fucked around with this message at 01:07 on Oct 22, 2022 |
# ? Oct 22, 2022 01:04 |
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helpful table for the not at all confusing US tax-advantaged retirement/savings accounts
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# ? Oct 22, 2022 16:53 |
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Which seems like a better thing to do, the ~9% for 6mo I Bonds for a year or so, or buying more risky stocks during the bear market?
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# ? Oct 24, 2022 14:25 |
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The only reason to not take a risk-free 9% is: •locking money away for 1 year •you forfeit 3mo of returns if you withdraw before 5yrs (turning the above into a risk free ~4.5%, which is still wildly good) DNK fucked around with this message at 17:21 on Oct 24, 2022 |
# ? Oct 24, 2022 14:31 |
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CmdrRiker posted:Which seems like a better thing to do, the ~9% for 6mo I Bonds for a year or so, or buying more risky stocks during the bear market? The reason one would choose one vs the other are nearly opposite. Ibonds are capital preservation that is appropriate for short term needs. "Buying risky stocks" is a gambling addiction. Buying broad market index funds is a long term investment. So what matters is the intent of the money you're investing.
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# ? Oct 24, 2022 14:32 |
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DNK posted:The only reason to not take a risk-free 9% is: Is that right? I read this: quote:You can cash in (redeem) your I bond after 12 months.
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# ? Oct 24, 2022 15:04 |
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As long as the I Bonds are so high I'd max that out first. Even the 6.4% the next 6 months is a great guarantee. Then throw it in stocks after ~15 months so you lose the last 3 months of the presumably crappier I Bond rate.
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# ? Oct 24, 2022 15:10 |
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# ? May 27, 2024 09:11 |
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While on the topic of I-bonds: My semi-retired parents have a few hundred thousand dollars in cash that they want to do something low-risk with. My mom is probably going to put it in a 9-month CD for now, but I've suggested also buying two $10,000 I-bonds. They also want to put something extra away for their 3 grandkids. I've read a little at TreasuryDirect and they should be able to buy bonds as gifts for them. It looks like any gifted bonds would stay in a "gift box" in my mom's account until the grandkids' parents set up accounts for each recipient. Does anyone know how long the bonds can stay in the "gift box" before being delivered? Could they just stay in there (while earning interest) for like 10 - 15 years before transferring it to accounts controlled by the kids/parents? I know the rate will lower at the end of the week, so I'm planning to help them buy today/tomorrow.
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# ? Oct 24, 2022 16:33 |