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CmdrRiker posted:I thought MM funds were similar to HYSAs (though higher risk, but small interest and still liquid) used as tools to store funds to earn a little interest before you invest it in something. Something to note is that a money market account is a deposit account similar to a HYSA. It's not a money market fund and has nothing to do with mutual funds.
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Nov 16, 2022 22:08
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Just had an interesting situation pop into my lap. For about two years back at the turn of the millennium, I was working at a computer lab at the University of Texas. Today, for the first time ever (that I can remember), I got a statement from the Teacher Retirement System of Texas. It seems that, because of my time working there, I've got about $3200 in my retirement account with the TRS. Also, apparently because of the era in which I was employed, I'm grandfathered in to the next-highest tier for my benefits. So I've got three options. I could: - Keep my account open, wait a few decades until retirement, and then collect the (very tiny) benefit they would provide. (The amount I'd get would be below the plan minimum, so I'd get that minimum instead, $150/month.) - Get the money in the account refunded to me in cash. (Taking some small tax penalties.) - Roll this money over into another retirement account. (Right now my only retirement account is my 401k at work, so I'd need to look into how this works.) I'd feel bad taking the $150/month in retirement, as I'd definitely end up taking more money out of the system than I ever put into it. Putting the money into my own retirement account is probably the smartest option, though it will be a bit of a pain to navigate since I have no experience with anything like that. I'm very tempted to just get the cash. It would cover my holiday shopping budget with a bit left over for
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Nov 16, 2022 22:16
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Harry posted:SNSXX is state tax exempt. With that much of a spread that doesn't really matter though. do you know of any site that notifies you of new deposit bonuses? I'm looking to sign up with Ally but uhh that extra money looks tempting enough.
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Nov 16, 2022 22:36
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LanceHunter posted:Just had an interesting situation pop into my lap. For about two years back at the turn of the millennium, I was working at a computer lab at the University of Texas. Today, for the first time ever (that I can remember), I got a statement from the Teacher Retirement System of Texas. It seems that, because of my time working there, I've got about $3200 in my retirement account with the TRS. Also, apparently because of the era in which I was employed, I'm grandfathered in to the next-highest tier for my benefits. The worst option is to withdraw and pay a penalty. Rolling it over into your 401k should not be too difficult. Usually you talk to the custodian for the account you're rolling into and they will tell you how to initiate the transfer. You want to do a custodian-to-custodian transfer if you can. That avoids the situations where you can gently caress it up and have to pay penalties. Alternatively you could open a traditional IRA and roll it into that. Same advice about custodian-to-custodian transfer applies. SamDabbers fucked around with this message at 22:48 on Nov 16, 2022 |
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Nov 16, 2022 22:42
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LanceHunter posted:I'd feel bad taking the $150/month in retirement, as I'd definitely end up taking more money out of the system than I ever put into it. Putting the money into my own retirement account is probably the smartest option, though it will be a bit of a pain to navigate since I have no experience with anything like that. I'm very tempted to just get the cash. It would cover my holiday shopping budget with a bit left over for first of all: what? you're entitled to the money by rule of the pension system. do you feel bad taking tax deductions? Taking cash is the worst idea. You knew about upcoming holiday shopping requirements for 12 months, you should have already set aside money for it.
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Nov 16, 2022 22:55
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Yeah, math wise $3200 = 22ish months. So unless you plan on dying in under 2 years after retirement , def take the monthly payments. Enough poo poo is stacked against you in life, when you have wins in your favor take them.
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Nov 16, 2022 23:16
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Strong Sauce posted:do you know of any site that notifies you of new deposit bonuses? I'm looking to sign up with Ally but uhh that extra money looks tempting enough. https://www.doctorofcredit.com/ covers this but also a lot more you might not care about like credit cards and other random promotions. https://www.doctorofcredit.com/best-bank-account-bonuses/ might be more useful but is only updated once a month or so.
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Nov 17, 2022 00:02
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Duckman2008 posted:Yeah, math wise $3200 = 22ish months. So unless you plan on dying in under 2 years after retirement , def take the monthly payments. I'm too lazy to do the math but this is definitely ignoring the time value of money. $3200 today is not at all the same thing as $3200 several decades from now.
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Nov 17, 2022 00:03
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LanceHunter posted:I'd feel bad taking the $150/month in retirement, as I'd definitely end up taking more money out of the system than I ever put into it. Putting the money into my own retirement account is probably the smartest option, though it will be a bit of a pain to navigate since I have no experience with anything like that. I'm very tempted to just get the cash. It would cover my holiday shopping budget with a bit left over for You didn't provide some important info, but making some assumptions here:
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Nov 17, 2022 00:35
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It's possible you end back at the University later, probably if you cash out that money, they won't let you back on the gold plated pension plan. With that money sitting in there you can probably resume on the good pension plan. Kind of a nice backup plan if you decide at age 55 you don't want to work in private sector any more
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Nov 17, 2022 02:40
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Tyro posted:I'm too lazy to do the math but this is definitely ignoring the time value of money. $3200 today is not at all the same thing as $3200 several decades from now. Right , so maybe add a year , but my point still stands.
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Nov 17, 2022 03:08
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Hadlock posted:It's possible you end back at the University later, probably if you cash out that money, they won't let you back on the gold plated pension plan. With that money sitting in there you can probably resume on the good pension plan. Kind of a nice backup plan if you decide at age 55 you don't want to work in private sector any more This is a very good point.
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Nov 17, 2022 03:12
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Duckman2008 posted:Right , so maybe add a year , but my point still stands. Oh yeah, it's definitely the correct decision (assuming the chance of the pension fund going bankrupt is close to zero). I'm vested in my state pension system, I think I'll get something like $250/mo when I turn 62, it's been a few years since I ran the numbers. Did a similar math when i left that job and decided to leave my money in. Plus if I ever do go back to a qualifying job, in addition to increasing my number of years, I'd drastically increase the high 3 salary average.
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Nov 17, 2022 03:18
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Three months ago, I put $20,000 of my general savings into a 3-month brokered CD at 2.4%. My reasoning was that my HYSA rate was still low, I would know this month if I was moving or not, and a little extra interest in the meantime would be nice. Two days ago, it matured and exactly $20,000 was deposited back into my brokerage account. That was not the amount I was expecting. Can someone help me figure out what I'm missing here? This is my first experience with brokered CDs. Do I just need to be patient because money is slow, or did I do something wrong? I've read a bunch of online guides and none of them go into detail about what to expect after maturity. (why would they? CD goes away, money comes out  )
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Nov 17, 2022 03:22
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Strong Sauce posted:do you know of any site that notifies you of new deposit bonuses? I'm looking to sign up with Ally but uhh that extra money looks tempting enough. I was actually going to start a churning thread for CCs and Banks in Coupons and Deals.
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Nov 17, 2022 03:25
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you ate my cat posted:Can someone help me figure out what I'm missing here? This is my first experience with brokered CDs. Do I just need to be patient because money is slow, or did I do something wrong? I've read a bunch of online guides and none of them go into detail about what to expect after maturity. (why would they? CD goes away, money comes out Have you checked your account history for mystery deposits? The CD's exact behavior will vary a little bit from bank to bank and offering to offering. Most short-term CDs will pay out at maturity, but I've had some that just cut me a monthly dividend, and the principal unlocked at the end just like you describe (though you should get another separate payout as dividend for the last month).
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Nov 17, 2022 03:50
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you ate my cat posted:Three months ago, I put $20,000 of my general savings into a 3-month brokered CD at 2.4%. My reasoning was that my HYSA rate was still low, I would know this month if I was moving or not, and a little extra interest in the meantime would be nice. Two days ago, it matured and exactly $20,000 was deposited back into my brokerage account. That was not the amount I was expecting. Is it possible it was zero coupon? Did you buy it at a discount to par?
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Nov 17, 2022 04:04
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Cassius Belli posted:Have you checked your account history for mystery deposits? I have, and no mystery deposits. I'm pretty sure it was coupon at maturity also. drk posted:Is it possible it was zero coupon? Did you buy it at a discount to par? Both of these would involve purchasing it for less than the payout, right? It was a new issue CD bought for $20k, so no to both.
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Nov 17, 2022 04:22
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you ate my cat posted:I have, and no mystery deposits. I'm pretty sure it was coupon at maturity also. I'd say ask whoever you bought it from what's up, and let the thread know the outcome, because I was thinking the same thing Cassius asked. also pretend I waved at the old SGOV posts again
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Nov 17, 2022 04:25
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Hello goons. I just started a new job, and I (finally!) have access to a 401k and HSA. Not only that, but I have the choice between a Traditional or Roth 401k. No employer match (they offer an ESOP instead!). My wages will be about $65k-70k per year, with maybe another few thousand in miscellaneous interest, dividends, and Patreon money over the year. Based on that, I'm trying to decide which type of 401k to go with. I'm 30, I have a Roth IRA with about $23k in it right now, and a taxable account with another $45k in it. Generally, my plan is to max out my IRA and HSA, and put as much money into my 401k as possible (potentially maxing it out, too). I'm very tempted to go with a Roth to get access to as much post-tax space as possible, as (hopefully) my income will only ever go up from here. At the same time, being able to reduce my taxable income / tax rate with a traditional 401k is also very tempting, as maxing out my 401k in 2023 would bring my taxable income down to about $48k. If I maxed out my HSA and a Traditional IRA as well, I could get that down well below $45k, which would put me into the 0%LTCG rate for 2023, which would allow me to 0% tax gain harvest for the year in my taxable brokerage account on about $3-8k of gains. I'm used to living around the poverty line, so I could definitely survive on the remaining ~$3k a month. So yeah, please help decide on which one to go with. Thanks again!
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Nov 17, 2022 04:42
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You shouldn't need to decide between one or the other. You can contribute to both and switch it up any time (if your plan allows it, check your plan). When I had access to a Roth 401k, I used the trad 401k to get where I wanted tax-wise, then the rest in Roth 401k. Another thing to consider is that if you change jobs and need to rollover your 401k into an IRA, your Roth 401k money can go to a Rollover Roth IRA without conversion. Minimizing your trad IRA will make backdooring easier if you think that's an option for you in the future.
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Nov 17, 2022 05:43
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How old are you and how serious is your career trajectory? It’s good to think through future earnings pattern and you are smart to do so. Like for me, I’m probably at/near peak earnings and so I have not contributed to the Roth 401k at all because the reduction in taxable income from trad is super valuable to me right now at high tax rates. If I were at a lower tax rate with a path to future higher earnings I would potentially take the Roth option or at least split contributions. If you are trying to hedge against tax rate policy changes in retirement, keep in mind that if unspent your HSA functions as a trad 401k from a tax perspective.
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Nov 17, 2022 13:51
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Harry posted:Marcus and Ally usually do new funds deposit bonuses so one of each will usually net you a couple of hundred dollars every year. I would wait until Marcus is running a promotion to open an account though. Looks like the promo is generally 1% of funds deposited and you have to keep the funds there for a few months. Personally I don’t mind chasing sign up bonuses on credit cards but bank and brokerage accounts can be a pain. You are moving large amounts of your own money around which goes wrong sometimes and requires “dealing with it” which I don’t like.
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Nov 17, 2022 14:00
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pmchem posted:I'd say ask whoever you bought it from what's up, and let the thread know the outcome, because I was thinking the same thing Cassius asked. I called my brokerage, and they said it's not uncommon for the interest to show up separately, though it usually should have showed up by now. If it's not there by COB today he recommended calling tomorrow and they'll investigate further. I'm sure you're all on the edge of your seats, so I'll be sure to let you know what happens.
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Nov 17, 2022 16:22
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For someone recently retired or near retirement, is there a correct percentage of your fixed income investments to put in inflation protected instruments to reduce risk? Or even any rules of thumb or considerations.
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Nov 17, 2022 21:33
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I believe there's several variables, unfortunately. The amount you have in cash and near-cash equivalents has to do with total portfolio size, cash requirements for the next year+ (which may include immediate or imminent health care needs), and more. Of course retirees should still typically have a significant chunk of their investments in equities, because if they expect or hope to live for decades more, much of their retirement funds are still long-term investments. But of that allocation that is likely to be drawn upon in the nearer term, a significant portion should be near-cash; and risk-free things like bonds (not bond funds but actual short-term bonds) including i-bonds are an option for that, keeping all the minimum holding requirements in mind. I'm much less well-versed in near- and mid-retirement asset allocation and don't feel confident in giving any kind of rule of thumb.
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Nov 17, 2022 22:39
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Dear long-term thread, I mildly desire a new thread title. While the current title is fine and funny, it's also a bit juvenile and may slightly offend a subset of visitors to BFC who aren't regulars here. This thread gets a lot of visits from not-BFC-regulars. With the end of the calendar year coming soon, I expect those visits to increase as people try to sort their poo poo out for EOY. If you all want to have fun and brainstorm a new thread title right now, feel free! Otherwise, let it be known, I'll be keeping an eye out for a crowd-pleasing replacement.
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Nov 18, 2022 02:13
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pmchem posted:Dear long-term thread, A lot of threads and subforums on SA now are bafflingly titled. Community is quite balkanized and insular in many ways. Secular is not the word I mean and somehow I can't recall the word. pseudanonymous fucked around with this message at 02:21 on Nov 18, 2022 |
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Nov 18, 2022 02:16
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The thread title might be a bit juvenile, but we've been buying ibonds since before it was cool so we're pretty sophisticated
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Nov 18, 2022 02:29
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Ye olde hodle The second best time is now Buffett’s hamburger buffet Report any unusual growths A subsidiary of the Vanguard Group Keep your interest piqued a package from the IRA Warhammer 401k Totally unsophisticated The 1 percent (interest) Some shrinkage is normal Sorry, that’s not nearly enough Discendo Vox fucked around with this message at 02:42 on Nov 18, 2022 |
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Nov 18, 2022 02:31
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Long Term Investing & Retirement: Belaboring basis points Long Term Investing & Retirement: Now exclusively discussing short term investing Long Term Investing & Retirement: Deferring taxes since 2008 Long Term Investing & Retirement: Close your Edward Jones account and come on in
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Nov 18, 2022 02:50
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Motronic posted:Yawn. <taps first half of thread title> Smashing Link posted:I wish someone had clued me in about Roth IRAs earlier (no thanks Mom and Dad) but I suppose it could be annoying. drk posted:"5-10% a year sounds good but what good is that going to do me now, i want to buy things/be rich now".
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Nov 18, 2022 02:57
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We can pretend it's a bank or the NYSE, etc.
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Nov 18, 2022 03:06
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Long Term Investing & Retirement: Learn how to time the market*
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Nov 18, 2022 03:14
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KYOON GRIFFEY JR posted:Long Term Investing & Retirement: Learn how to time the market* Long Term Investing & Retirement: Pulling out just in time*
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Nov 18, 2022 03:18
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Long Term Investing & Retirement: Taller and more handsome than the other thread Patrick Bateman did nothing wrong Free Patagonia vests inside All in on Masterworks
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Nov 18, 2022 03:29
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Long-Term Investment & Retirement: in case the world is still here in 20 years Long-Term Investment & Retirement: 401ks, IRAs, Bonds and Bottle Caps… just in case
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Nov 18, 2022 03:51
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Ask About Our Free Expense Ratio Evaluations
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Nov 18, 2022 04:01
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VT and chill... or die My Roth Will Go On Rock Em Sock Em Robo Advisers Goons To The Moon in 35 Years You can't take it with you, but you can leave it all behind Expense Ratio Shopping Spree On a long enough time horizon, you're still a goon Now that's making dollars... AND sense! *Wink, finger gun*
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Nov 18, 2022 04:23
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Long Term Investing & Retirement: Like It or Not You're Probably Gonna Live to Retirement
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Nov 18, 2022 04:30
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