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Ok. I thought that was correct, just wanted to make sure. I do not have an already existing IRA. Thank you.
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Mar 6, 2023 00:50
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DACK FAYDEN posted:I am not, but that's got the yearly cap, hasn't it? It's generally not advisable to roll traditional 401(k) contributions in to a Roth IRA or 401(k) because you have to pay a pretty hefty tax bill. Instead, you can just roll that old 401(k)in to a traditional IRA. This will become annoying if you ever get above Roth IRA contribution limits, because it will prevent you from doing the backdoor contribution method. Your other options are keep it as it lies (if there are low fees and good funds, this isn't a bad idea), or to try to do an in-service roll in to your current job's 401(k). Not all 401(k) plans offer in-service roll-in, so you'll have to check with your current plan's administrator.
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Mar 6, 2023 02:50
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I'm trying to roll-my-own portfolio instead of using one of the T. Rowe Price Target Retirement funds which have a 0.37% expense ratio. I don't have a ton of options:  I'm trying to approximate the portfolio mix from my Vanguard TR 2055 fund (VFFVX) which is Vanguard Total Stock Market Index Fund Institutional Plus Shares (VSMPX) 53.8% Vanguard Total International Stock Index Fund Investor Shares (VGTSX) 36.7% Vanguard Total Bond Market II Index Fund (VTBIX) 6.8% Vanguard Total International Bond II Index Fund (VTILX) 2.7% With the funds I have available, I'm thinking: VANGUARD INST INDEX (VINIX) 53.8% VANGUARD TTL INT STOCK IND ADM (VTIAX) 36.7% ISHARES US AGG BOND INDEX K (WFBIX) 9.5% Any suggestions or criticism of this idea? SpartanIvy fucked around with this message at 04:33 on Mar 6, 2023 |
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Mar 6, 2023 04:27
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You want VINIX instead of FSMAX. VINIX is the S&P500 large cap blend FSMAX is small and medium, so it can be a part of your holdings to replicate the target retirement fund, but it's a small amount. Personally I'd just stick with VINIX. The performance of the S&P500 and US Total Stock Market is almost identical. Mu Zeta fucked around with this message at 04:39 on Mar 6, 2023 |
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Mar 6, 2023 04:30
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I’m assuming you have an IRA where you have a wide variety of available funds. You don’t need to be balanced within your 401(k). You only need to be balanced across your total portfolio you intend to use for retirement. In my case I have cheap S&P 500 funds in my 401(k) but not a lot of other better options. I have my whole 401(k) in a Fidelity S&P 500 and then have bonds in taxable accounts in the form of Series I bonds and treasuries. I carry international index fund exposure in my IRA. So if you look at any of my brokerage (for retirement), IRA, and 401(k) they’re all wildly unbalanced but the overall effect is a portfolio that is balanced but overweighted to US equities as I intend.
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Mar 6, 2023 11:46
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My HDHP contributes $75 to my HSA at HSABank each month, just want to confirm: 1) HSABank's site says there is no minimum balance required and no transfer fees, so there shouldn't be any problems (taxes, fees, penalties) if I just pull whatever's in it over to Fidelity each month, correct? I keep seeing recommendations to do it as a rollover but from what I understand that seems to be mainly to avoid transfer fees and minimize the amount of time the funds stays uninvested (and I'm not investing until they hit my Fidelity account anyway), and it seems more complicated + can only be done once every 12 months. 2) I learned a few months back that TSP contributions count for the year you were actually paid, so for example whatever I paid in pay period 26 of last year counts towards this year's limit since payday was in January. The HDHP contributions to my HSA each month occur a few days after the start of the next month, so should I expect something similar here? (I.e. If the $75 for December isn't paid until January, does it count towards the 2024 limit instead?)
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Mar 6, 2023 19:46
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Atahualpa posted:1) HSABank's site says there is no minimum balance required and no transfer fees, so there shouldn't be any problems (taxes, fees, penalties) if I just pull whatever's in it over to Fidelity each month, correct? I keep seeing recommendations to do it as a rollover but from what I understand that seems to be mainly to avoid transfer fees and minimize the amount of time the funds stays uninvested (and I'm not investing until they hit my Fidelity account anyway), and it seems more complicated + can only be done once every 12 months. A custodian to custodian transfer is what you want. I've had good experiences initiating these transfers through the Fidelity side. You can do them as many times a year as you want/your HSA custodians will allow.
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Mar 6, 2023 20:12
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Atahualpa posted:(I.e. If the $75 for December isn't paid until January, does it count towards the 2024 limit instead?) Yes
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Mar 6, 2023 20:46
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KYOON GRIFFEY JR posted:I’m assuming you have an IRA where you have a wide variety of available funds. This is an interesting thought I hadn't considered. However, doesn't the blend of Roth and Pretax contributions make it trickier? My IRA is a Roth and my 401K is almost entirely pretax contributions. Wouldn't splitting stocks/bonds across that cause the portfolios to grow differently and possibly throw off my eventual options for retirement distributions?
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Mar 6, 2023 21:57
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So you look at your breakdown once a year and adjust your contributions if you need to to bring it back to the balance you want.
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Mar 6, 2023 22:19
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Randomly chatting with my dad yesterday and he mentioned getting into a higher yield savings account with online banks. I contribute to a 401k and max out an IRA every year, but right now most of my cash is just sitting in a basic bitch Wells Fargo savings acct making FU%. Over the last few pages I've seen Ally and USB mentioned, is there a general recommendation for an online bank to use to just hold a wad of cash for you at ~5% and that sweet sweet FD insurance?
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Mar 7, 2023 00:26
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Takes No Damage posted:Randomly chatting with my dad yesterday and he mentioned getting into a higher yield savings account with online banks. I contribute to a 401k and max out an IRA every year, but right now most of my cash is just sitting in a basic bitch Wells Fargo savings acct making FU%. Over the last few pages I've seen Ally and USB mentioned, is there a general recommendation for an online bank to use to just hold a wad of cash for you at ~5% and that sweet sweet FD insurance? I've been using SPAXX - Fidelity Government Money Market Fund to keep my cash. The 7 day yield has been around 4.2% The reason I like to keep it there since in case I want to buy any equities, treasuries, CD's etc all the money is there and available in cash.
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Mar 7, 2023 00:59
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Takes No Damage posted:Randomly chatting with my dad yesterday and he mentioned getting into a higher yield savings account with online banks. I contribute to a 401k and max out an IRA every year, but right now most of my cash is just sitting in a basic bitch Wells Fargo savings acct making FU%. Over the last few pages I've seen Ally and USB mentioned, is there a general recommendation for an online bank to use to just hold a wad of cash for you at ~5% and that sweet sweet FD insurance? If you already have a brokerage account, there are lots of good options right now. FDIC insurance is nice, but its not any safer than any other federal government obligation (like Treasury bills, federal money markets, etc). The real problem with banks is that as you've seen, they only tend to offer good interest rates when they are trying to attract deposits. Right now the best savings accounts pay in the low 4.x% range and many popular ones are only 3.x%. Personally most of my cash-like money is in Treasury bills right now. $SGOV is an ETF that gives you cheap exposure to the short end of Treasury bill maturities and is a good choice too.
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Mar 7, 2023 01:45
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Atahualpa posted:2) I learned a few months back that TSP contributions count for the year you were actually paid, so for example whatever I paid in pay period 26 of last year counts towards this year's limit since payday was in January. The HDHP contributions to my HSA each month occur a few days after the start of the next month, so should I expect something similar here? (I.e. If the $75 for December isn't paid until January, does it count towards the 2024 limit instead?) Check the contribution details in your HSABank account. It will tell you which year's 5498-SA the contribution applies to. Mine counted for the previous year.
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Mar 7, 2023 01:46
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Additional money market thoughts for those in CA, CT, NJ or NY and using Vanguard: I found out this tax season Vanguards settlement fund money market (VMFXX) is *not* exempt from state income tax, despite being a "Federal" money market. Only ~38% of its holdings were considered US government obligations. VUSXX (Treasury Money Market) is state income tax exempt, and currently yields a few bp more than VMFXX. 100% is US government obligations. Not a big deal if you just have spare change in your settlement fund, but if you are using it as a savings account equivalent and you have high state income taxes, it could be worth it to switch to VUSXX.
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Mar 7, 2023 01:58
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I second the Fidelity recommendation. I use their cash management account for banking needs (direct deposit, direct debit, ATM fee refunds) and their investment account for treasury bonds and money market account.
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Mar 7, 2023 02:03
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SpartanIvy posted:This is an interesting thought I hadn't considered. Well, they’ll grow at different rates because they’re invested in different stuff, not because they are pre/post tax. Tax treatment does not impact growth, it just impacts the real value of the investment . The tax treatment only matters when you take money out. If you want to account for it, you can discount your trad 401(k) value by your anticipated tax rate as a quick rule of thumb. Then your total balances are both in post tax terms.
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Mar 7, 2023 02:12
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Anyone have any experience or a good how-to guide for writing a will? Am I going to have to hire an attorney? I have some stock and savings I want to allocate. I also want a do-not-resuscitate order. A coworker mentioned this, but wanted to see if there are any alternatives or caveats: https://www.fivewishes.org/for-myself/ Sorry if this isn't the right thread for this. VV Thank You VV T Zero fucked around with this message at 03:44 on Mar 7, 2023 |
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Mar 7, 2023 02:50
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BFC has a somewhat new thread for estate planning which was a great idea and deserves more posts: https://forums.somethingawful.com/showthread.php?threadid=3989734
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Mar 7, 2023 03:09
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Takes No Damage posted:Randomly chatting with my dad yesterday and he mentioned getting into a higher yield savings account with online banks. I contribute to a 401k and max out an IRA every year, but right now most of my cash is just sitting in a basic bitch Wells Fargo savings acct making FU%. Over the last few pages I've seen Ally and USB mentioned, is there a general recommendation for an online bank to use to just hold a wad of cash for you at ~5% and that sweet sweet FD insurance? Assuming this cash is some or all emergency fund, emergency fund you want in some kind of savings account where it can be easily accessed in an emergency. Ally is currently at 3.4% ish, other ones like AmEx are similar. In general a HYSA rate will fluctuate pretty close to whatever the Fed has interest rates at. 2 years ago Ally was at 0.5%. The Fed is apparently raising rates again this week , and normally Ally will raise their rates accordingly in a few weeks. I would def look into it, it’s a great option and it’s FDIC insured, which IMO is very important for an e fund. If you have extra cash to do both HYSA and treasuries , great. I would just def ear mark whatever number is your efund to stay in said HYSA, since in general it’s more liquid than a treasury.
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Mar 7, 2023 13:46
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I think most people keep at least a month's worth in their checking. Do you really need more than a month to get at your cash if it's in something like $SGOV? drk posted above that FDIC coverage isn't any more safe than treasuries or money markets. So what is Ally's HYSA giving you that's worth taking a 1-1.5% hit each year?
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Mar 7, 2023 15:14
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I just got laid off and I can either roll my 401k balance to my Roth IRA or my new employer's 401k - which would you guys choose and why? The 401k is all-in on the Vanguard Target Retirement 2045 Inv Fund and has had a 4.93% return rate so far this year. Also, what's a good general strategy for a Roth IRA? Just buy a bunch of index funds? I also have a TSP that I haven't touched in a while - which funds would you guys recommend for long term? Triggs fucked around with this message at 17:07 on Mar 7, 2023 |
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Mar 7, 2023 17:02
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Unless it's a Roth 401k, you'd be rolling it over into a traditional IRA, not a Roth IRA. You should check the investment options in your new 401k, with a particular eye to its expense ratios on the index funds. If they're very good, a rollover into your new employer 401k may keep things simple for you. Rolling over into an IRA gives you total control over your investment options, with literally every fund and option out there open to you. However, if you will ever make enough money to need to do a backdoor Roth IRA, you will want to have zero dollars in a traditional IRA, which implies converting your rollover trad to a Roth... which will be a big tax event depending on the total amount of money. So this is a reason to put it in the new employer 401k instead. For all of your long-term retirement investing, a basket of index funds consisting of (definitely) a big amount of domestic stock (like an S&P500 or total domestic market index stock fund), a smaller amount (definitely) of international stock such as an international stock index fund, and a small amount (maybe) in a bond index fund. This is called the classic three-fund portfolio and there are some resources to read about it in the OP. If choosing and maintaining a ratio between these three funds is an issue for you, you can just pick a target retirement fund. These manage the balance for you, gradually adjusting the ratios as you approach your target retirement date. Pick one with a low ER and you'll be fine. Leperflesh fucked around with this message at 17:17 on Mar 7, 2023 |
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Mar 7, 2023 17:15
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If your 401k is traditional be careful about rolling it into a Roth IRA, because you'll have to pay taxes since the traditional money is pretax. That doesn't make it a bad idea, but it's something to be aware of so you don't get surprised with a tax bill. You can always roll it into a traditional IRA as well. As far as where to put the money, generally the IRA is preferable to the 401k because you get to choose the IRA provider, while you are stuck with whoever your employer chooses in a 401k. If you have a vanguard or fidelity 401k, or some other really good one, then it doesn't really matter. Putting all your money into one target date fund is fine, but you could also create your own blend of 2-3 index funds like VTSAX and VTIAX.
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Mar 7, 2023 17:15
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Is your old employer forcing you to take a distribution or rollover on your old 401k? Because if not, you can keep it there and manage it as usual (which would be not managing it if it's all in a target date fund). You just won't be able make contributions.
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Mar 7, 2023 17:27
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I would caution a little against holding an old 401k. There are sometimes benefits to doing it but there are cons as well. - They sometimes charge additional account fees that were previously covered by your employer. Expect maybe $50/year. - It's yet another account to keep current with address and beneficiary data. - It's yet another account to keep current with investment allocation. If they eliminate a fund choice that you have, you might not go into the best option. - There can be system errors that don't get caught, especially if they choose a new provider. For example, it might get moved to a new system and they end up defaulting your primary contact info to your defunct work email. Or they might lose the vested percentage on your match and take a bunch of your money (this happened to me and took 3 months before I luckily noticed it and another 3 months to sort out). If you no longer work there it's an even larger pain to sort out than normal. These all also apply to old HSA accounts that you might have through a prior employer.
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Mar 7, 2023 17:53
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Triggs posted:I also have a TSP that I haven't touched in a while - which funds would you guys recommend for long term? Don't be tempted by the newer private fund options. They're a ripoff and it's embarrassing (but not surprising) that the lobbying to get them added actually worked. You could just toss it into a target date fund. The core TSP funds all have the same low ER so there's no extra cost for going with a target date.
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Mar 7, 2023 18:20
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Not sure if this is even Long Term now but a 1-month T-BILL is now at 4.521% EY. 2-months: 4.706 and 4-Months: 4.930. Can pretty much put everything that's not emergency fund into rolling 1-month t-bills for a rate that's better than my HYSA now. Obviously not as liquid but if you can wait out 1 month seems pretty good?
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Mar 7, 2023 19:33
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How do rolling 4-week T-bills work actually function with the auction dates? The 3/9 auction settles on 3/14 and matures on 4/11, and the next auction after that occurs on 4/13 settling on 4/18. Seems like you'd be losing anywhere from 5%-25% of of those returns, but I don't know 100% how it works.
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Mar 7, 2023 19:50
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Strong Sauce posted:Not sure if this is even Long Term now but a 1-month T-BILL is now at 4.521% EY. 2-months: 4.706 and 4-Months: 4.930. Can pretty much put everything that's not emergency fund into rolling 1-month t-bills for a rate that's better than my HYSA now. Obviously not as liquid but if you can wait out 1 month seems pretty good? I mean, Wealthfront with a referral (won't whore it but happy to pm) gets you 4.55% currently (and as others have said HYSAs tend to adjust to market rates relatively quickly, since they're all competing with each other) and much better liquidity - cash transfers in a business day or two or debit card for instant purchasing. I've been rolling two WF accounts, one for e-fund/short-term savings and one for making a few bucks of interest off of my credit card payments (set card to autopay statement balance every month out of WF, transfer money to WF to match my current balance every few days). Seems to work pretty well.
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Mar 7, 2023 19:53
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esquilax posted:How do rolling 4-week T-bills work actually function with the auction dates? The 3/9 auction settles on 3/14 and matures on 4/11, and the next auction after that occurs on 4/13 settling on 4/18. Seems like you'd be losing anywhere from 5%-25% of of those returns, but I don't know 100% how it works. I think it rolls you into the 4/6 auction, which settles on 4/11.
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Mar 7, 2023 19:58
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Strong Sauce posted:Not sure if this is even Long Term now but a 1-month T-BILL is now at 4.521% EY. 2-months: 4.706 and 4-Months: 4.930. Can pretty much put everything that's not emergency fund into rolling 1-month t-bills for a rate that's better than my HYSA now. Obviously not as liquid but if you can wait out 1 month seems pretty good? Even one month brokered CDs are also pushing 4.5% now and those are even FDIC insured. Plus you get the fun bonus of saying "well this month 40% of my emergency fund is on deposit at First Cow and Corn Bank of Nebraska". Edit: also you can rate shop basically the entire US market without having to constantly open and close accounts. mrmcd fucked around with this message at 21:48 on Mar 7, 2023 |
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Mar 7, 2023 21:46
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truavatar posted:I think it rolls you into the 4/6 auction, which settles on 4/11. I'm curious about how this works practically to, so I'm gonna buy a few 1 month and 2 months on Thursday's auction and see what happens.
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Mar 8, 2023 00:06
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Jows posted:I'm curious about how this works practically to, so I'm gonna buy a few 1 month and 2 months on Thursday's auction and see what happens. I set up a weekly ladder last month - first bill is maturing/rolling over on 3/14 based on the 3/9 auction, so I'll let you know how it goes.
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Mar 8, 2023 17:40
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Kinda tempted to also do some T-bill fuckery, just to see what it’s like. Considering the sizable amount of money sitting in my HYSA, it might be worth it.
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Mar 8, 2023 17:44
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what's the spread between t-bill fuckery and a MMF?
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Mar 8, 2023 17:47
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VMFXX is at 4.4% after ER. t-bill is at ~5% I believe.
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Mar 8, 2023 18:09
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spwrozek posted:VMFXX is at 4.4% after ER. t-bill is at ~5% I believe. VMFXX should be considered 4.51%. The yield is already net of expenses.
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Mar 8, 2023 18:23
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My HYSA is at 3.34~3.40%. That extra 1~1.5% is tempting for sure. I’m planning on renting in an area I’m considering purchasing in before committing, so I won’t be making a large purchase this year either. That said, I dunno if I’m comfortable locking up my savings for a long amount of time… Considering that most of my other funds are in Vanguard and weighted heavily towards the stock market, would T-bills be a better option than CDs?
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Mar 8, 2023 18:27
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80k posted:VMFXX should be considered 4.51%. The yield is already net of expenses. Ah, thanks. I did not know that.
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Mar 8, 2023 18:28
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