|
jokes posted:If I had a specific drawdown schedule I'd talk to an advisor about laddering out treasuries to be held to maturity to avoid market/interest rate risk. Laddering is a good idea, but no particular reason to talk to (read: pay) an adviser to figure it out for you. Should be very straightforward to buy treasuries maturing in 2024-2030 to meet required withdrawals. (I'd probably keep at least half the money in equities, but thats more of a personal decision on how much risk you want to take)
|
#
?
Jul 20, 2023 21:37
|
|
|
|
| # ? May 31, 2024 09:05 |
|
|
drk posted:Anyone have a take on including international bonds in long term taxable portfolios? I have a small allocation but I'm thinking about dumping it. If you can I would put them in a tax sheltered account so you don't have to pay taxes as they earn income.
|
|
#
?
Jul 20, 2023 21:59
|
|
|
H110Hawk posted:If you can I would put them in a tax sheltered account so you don't have to pay taxes as they earn income. My taxable account isnt exclusively for retirement. I dont want it to be 100% equities since I expect to spend some or possibly even most of the money in the next 25 years or so, which is when I can withdraw money from tax advantaged accounts.
|
|
#
?
Jul 20, 2023 22:06
|
|
|
jokes posted:If I had a specific drawdown schedule I'd talk to an advisor about laddering out treasuries to be held to maturity to avoid market/interest rate risk. drk posted:Laddering is a good idea, but no particular reason to talk to (read: pay) an adviser to figure it out for you. Thank you both - I really appreciate the advice. I’m not very well versed in any investing outside of the general advice of the thread for retirement accounts (low-cost, passive index funds), but I’ll read up on laddering.
|
|
#
?
Jul 21, 2023 02:17
|
|
|
I am in the lucky position of not being able to deduct traditional IRA contributions and have been looking at the back door plan. I have about $12k in a traditional IRA and can transfer that to my work’s 401a plan to clear that out by 12/31. That was my plan until I saw somewhere online about the great idea of just transferring it to my Roth IRA, taking the tax hit, but being happy that I in essence increased my Roth IRA limit for the year. I ran this through the Schwab conversion calculator and based on what I put in the result was transferring would be about $1k higher after 20 years. Considering I may need funds for 40 plus years it seems that a larger tax free future might be worth it. Is there anything I’m not seeing here or blind spots? I can’t think of any other metrics to judge this on
|
|
#
?
Jul 21, 2023 02:43
|
|
|
rockamiclikeavandal posted:I am in the lucky position of not being able to deduct traditional IRA contributions and have been looking at the back door plan. I have about $12k in a traditional IRA and can transfer that to my work’s 401a plan to clear that out by 12/31. That was my plan until I saw somewhere online about the great idea of just transferring it to my Roth IRA, taking the tax hit, but being happy that I in essence increased my Roth IRA limit for the year. I ran this through the Schwab conversion calculator and based on what I put in the result was transferring would be about $1k higher after 20 years. Considering I may need funds for 40 plus years it seems that a larger tax free future might be worth it. Is there anything I’m not seeing here or blind spots? I can’t think of any other metrics to judge this on Depends on your current and expected future tax rates when you will be withdrawing. I would roll into the 401 and then start doing the backdoor, but that's based on my own situation.
|
|
#
?
Jul 21, 2023 05:25
|
|
|
I generally assume that for most people in the thread that their current income from work is greater than their probable future income from investments in retirement. And if that isn’t the case and you have so much god drat money in retirement that you end up paying a marginally higher tax rate: congratulations, you won. What I’m saying is roll that in to the 401a and fund your IRA separately. That allows you to save more money for retirement anyway.
|
|
#
?
Jul 21, 2023 14:44
|
|
|
e: Probably best to move the Trad funds to the 401k. Since you previously took the tax deduction on those contributions, the full conversion amount would be taxed as income.
Subvisual Haze fucked around with this message at 15:17 on Jul 21, 2023 |
|
#
?
Jul 21, 2023 14:56
|
|
|
Thanks for the input. Rolling it into the 401a was my original plan so I should probably stick with it.
|
|
#
?
Jul 21, 2023 16:13
|
|
|
rockamiclikeavandal posted:Thanks for the input. Rolling it into the 401a was my original plan so I should probably stick with it. Having both taxable and non taxable assets you can draw down can provide helpful flexibility.
|
|
#
?
Jul 21, 2023 18:20
|
|
|
I made the horrible, horrible decision to save up for a house, so my not-house savings are somewhat lopsided in favor of taxable/non-retirement.  Now that I’m about as saved up as I want to be (because god drat maybe I’ll just keep renting), I’m gonna bump up my non-taxable contributions.At least I have a large chunk saved up. It always feels like I never have enough, though, and I should really stop assuming and start crunching numbers instead.
|
|
#
?
Jul 22, 2023 14:54
|
|
|
Someone talk me off the ledge of moving over to another bank from Alliant for the sake of a slightly better HYSA. Tell me 3.1% on savings is good enough and that an economic tide shift will quickly wipe out the current slate of options for >5% APY. Alternately, tell me to trust the math and chase a couple extra percentage points of yield. On another note: as someone who bought his first I Bonds in November 2021, I am planning to cash them out on August 1 and max my Roth IRA for the year, with the rest going into savings (we'll see how the fixed/composite I Bond rate looks in January). I feel like I was slightly ahead of the curve because of this forum sounding off about I Bonds in October 2021, especially compared to the gold rush of people once the composite rate hit >9% six months later.
|
|
#
?
Jul 23, 2023 04:13
|
|
|
Space Fish posted:Someone talk me off the ledge of moving over to another bank from Alliant for the sake of a slightly better HYSA. Tell me 3.1% on savings is good enough and that an economic tide shift will quickly wipe out the current slate of options for >5% APY. Alternately, tell me to trust the math and chase a couple extra percentage points of yield. 2% of how much? How much time/effort will it take to do the button-clicks? Is that higher than your currently hourly rate, assuming you're working?
|
|
#
?
Jul 23, 2023 04:43
|
|
|
Pollyanna posted:I made the horrible, horrible decision to save up for a house, so my not-house savings are somewhat lopsided in favor of taxable/non-retirement. If I'm reading this right, are you me? Because I've also quasi given up on house buying for the moment and increased my 401k contribution in response. Not quite where I want to be atm on savings but I am very close.
|
|
#
?
Jul 23, 2023 05:57
|
|
|
Space Fish posted:Someone talk me off the ledge of moving over to another bank from Alliant for the sake of a slightly better HYSA. Don’t forget every new bank is another 1099 you need to wait for when you do your taxes.
|
|
#
?
Jul 23, 2023 13:31
|
|
|
Space Fish posted:Someone talk me off the ledge of moving over to another bank from Alliant for the sake of a slightly better HYSA. Tell me 3.1% on savings is good enough and that an economic tide shift will quickly wipe out the current slate of options for >5% APY. Alternately, tell me to trust the math and chase a couple extra percentage points of yield. 2% is a lot ...
|
|
#
?
Jul 23, 2023 14:11
|
|
|
Yeah, Alliant still at 3% seems a bit low. Min / maxing on money stuff can get penny wise pound foolish, but on the flip side don’t feel obligated to stay with a bank just because you’re already there. I would recommend comparing Ally and other HYSA, and if you want to switch, most of the main HYSAs are at 4% right now and have been pretty reliable at moving interest rates decently soon after the Fed changes them (note this does apply going both up and down).
|
|
#
?
Jul 23, 2023 14:17
|
|
|
Space Fish posted:On another note: as someone who bought his first I Bonds in November 2021, I am planning to cash them out on August 1 and max my Roth IRA for the year, with the rest going into savings (we'll see how the fixed/composite I Bond rate looks in January). I feel like I was slightly ahead of the curve because of this forum sounding off about I Bonds in October 2021, especially compared to the gold rush of people once the composite rate hit >9% six months later. Why wouldn't you keep the I-bonds until the 5 year mark so that you don't sacrifice any interest?
|
|
#
?
Jul 23, 2023 14:35
|
|
|
Space Fish posted:Someone talk me off the ledge of moving over to another bank from Alliant for the sake of a slightly better HYSA. With a Fidelity Cash Management Account you can put transfer money into a money market fund and get a highish rate with hardly any effort. Or for slightly more effort and larger yield, buy short term treasuries.
|
|
#
?
Jul 23, 2023 15:00
|
|
|
Turbinosamente posted:If I'm reading this right, are you me? Because I've also quasi given up on house buying for the moment and increased my 401k contribution in response. Not quite where I want to be atm on savings but I am very close. Maybe! If you’ve got a savings vs. predicted expenses plan or spreadsheet or whatever, I’d love to take notes. Personally I’m just not happy enough with the cost-for-opportunity in my local housing market, plus it’s more ill at the moment than I’m willing to deal with (but it’s always ill, so  ). I’m also careening into middle age so I’m reconsidering what I want out of life. That plus my job + industry of choice being turbo rocky means I just hope next year will be different.
|
|
#
?
Jul 23, 2023 16:40
|
|
|
MrLogan posted:Why wouldn't you keep the I-bonds until the 5 year mark so that you don't sacrifice any interest? I'm planning to dispose of the I-bonds I bought in May 2022 in September I bought them when the variable rate was 9.6% and the fixed rate was 0%. Now they are only 3.38% variable. The 3-month interest penalty is like $100 or less. With the current interest rate spread between that and VMFXX at 5%+ I'll make back that difference a lot sooner than holding them for 4 more years for no penalty. And if rates go down across the board both I-bonds and MM/HYSA accounts will all drop so it's kind of fuzzy math but I'll take the liquidity back regardless. I was taking advantage of the anomalous situation of I-Bonds being over 9% while everything else was still like 1% but that has, as expected, normalized. Guinness fucked around with this message at 17:49 on Jul 23, 2023 |
|
#
?
Jul 23, 2023 17:45
|
|
|
Thanks for the responses, everyone. Here's some extra context informing my decisions: -Meeting with a financial advisor who saw how all my accounts are with Fidelity and advised running my checking and savings somewhere else to avoid temptation of dipping into non-investment money. So far, with Fidelity as my brokerage (taxable and Roth IRA investing*) and Alliant as my checking/savings, there has been far less cross-pollination. Which is to say, I'm not throwing as much money at dumb stock market bets** as I might have otherwise. The behavioral benefits outweigh the SPAXX benefits for me. -Another advisor tip: viewing my I Bonds as strictly a savings bucket and not my emergency fund nor bond allocation. At this point some of that November 2021 I Bond money will likely go into a winter trip, so that utility makes sense for me. Exiting that first round of I Bonds in August will cost me roughly $100 in interest, but I want to allocate some of that to maxing my Roth IRA for the year and stashing the rest for this winter. A little extra liquidity would be nice right about now. Assuming the fixed rate looks decent through November and my emergency fund stays level, I might buy a fresh round of I Bonds in January 2024, but that's not mandatory. -Chasing 2% higher HYSA yield: this would be on roughly 20k, so an extra $400 per year at current rates. Thanks for the 1099 reminder. I am willing to drop Alliant for better/more profitable services, but I want to stick with a credit union if at all possible. I just see so many "X Bank ordered to pay massive fine for screwing over black and brown people" skeletons in banks' closets that I would like to think my basic accounts aren't funding further invisible racism or Wells Fargo levels of villainy. Fidelity isn't perfect, but them and Schwab have no-fee, no-commission IRA and brokerage accounts, and I can't find worthy competition for those. Alliant won me over at the time with the 2.5% cash back no foreign transaction fee credit card, $20/month ATM fee reimbursement debit card, then-leading HYSA and checking rates, foster care as avenue to membership, and no damning google results for "alliant credit union scandal / racism / controversy." (Ally actually comes out unscathed.) I should probably sit still and let rates settle in due time so I quit thinking about that extra sliver of percentage. Not every facet of my portfolio has to be absolutely maximized, or else I would be churning accounts at every possible bank. Writing all of this out was helpful, thanks again. *VT in my Roth IRA, where I pay 7 bps to own a self-balancing world index, and 50/50 VTI/VXUS in my taxable for the foreign tax credit on VXUS. **Thanks for the 30% pop, NVEI! It is both a shame and a badge of honor that I did not gamble more on you.
|
|
#
?
Jul 23, 2023 18:45
|
|
|
Pollyanna posted:Maybe! If you’ve got a savings vs. predicted expenses plan or spreadsheet or whatever, I’d love to take notes. God I wish I had a spreadsheet/plan, that's most of the reason I've been lurking BFC a lot more now then I ever have before. Most of my problem is that I don't quite make enough to swing a house on my own and the market here has outstripped my ability to keep up. Plus a couple of life changes on top of that and a house that looked doable 2-3 years ago now is overpriced and out of my reach. My industry I wound up in is okay, but my specific company's health is suspect. The middle has been hollowed out: there's mostly only the knowledgeable old dudes who are of retirement age in the next 3-5 years and the young apprentice kids who don't know poo poo left. I need an exit strategy in that time frame in case the company sinks but for now I'm trying to learn as much skills as I can and just am waiting out the market and save as much money as I can in the meantime. In short, there's too many possibilities for what can happen in my personal future that I'm stuck staying the course until something happens, or I figure out what goals to risk going for.
|
|
#
?
Jul 23, 2023 19:34
|
|
|
Space Fish posted:Someone talk me off the ledge of moving over to another bank from Alliant for the sake of a slightly better HYSA. Tell me 3.1% on savings is good enough and that an economic tide shift will quickly wipe out the current slate of options for >5% APY. Alternately, tell me to trust the math and chase a couple extra percentage points of yield. We use Capital One and they have a 4.3% APY high-yield savings account. I prefer to stick with a 'too big to fail' bank if possible. It is also just a solid all-around bank if you decide to move everything over.
|
|
#
?
Jul 25, 2023 00:02
|
|
|
Wh…would that preclude Ally? 
|
|
#
?
Jul 25, 2023 00:51
|
|
|
CompeAnansi posted:We use Capital One and they have a 4.3% APY high-yield savings account. I prefer to stick with a 'too big to fail' bank if possible. It is also just a solid all-around bank if you decide to move everything over. Also with Capital One for HYSA, have been since way back in the ING Direct days. Very happy with them, their website, no fees, service, etc. They are not the absolute highest rate HYSA out there, but close enough for me. The one annoying thing I've noticed is that every few years they roll out a "new" HYSA account that you have to sign up for to keep getting the best rate. This has happened I think twice in about ten years. Fortunately it takes all of 1 minute to do. All that said about HYSAs, I currently have most of my idle cash sitting in my Vanguard brokerage account's settlement fund, which is in the Federal Money Market VMFXX which is yielding over 5% right now.
|
|
#
?
Jul 25, 2023 01:48
|
|
|
Want to mention Laurel Road here, it's not the biggest bank, but they've been running this promo for a while - Primary account holder is eligible to earn monthly rewards of $20/month from the second through thirteenth statement periods, which is considered your “first year.” From the fourteenth statement period onward, the eligible reward will be $10/month for as long as the Laurel Road Loyalty Checking account (“Account”) is open Basically you open a checking account and direct deposit to it and they give you 20$ a month (have to direct deposit at least 2500 per month) for the first year, thereafter $10 a year. They also have a good HYSA - 4.8% right now, it tends to be near the top but not the absolute top. So I just move what I want to save to the HYSA and it never hits my "main" checking account at Alliant, and I treat the direct deposit bonus as just a few hundred (thousand actually) basis points on the HYSA. There's language in there about nurses but its for nurses and non-nurses so IDK. https://www.doctorofcredit.com/laurel-road-300-checking-bonus-25-per-month-available-nationwide-must-be-a-nurse/ Laurel Road is an online only offshoot of Keybank, a PNW regional.
|
|
#
?
Jul 25, 2023 02:25
|
|
|
nelson posted:With a Fidelity Cash Management Account you can put transfer money into a money market fund and get a highish rate with hardly any effort. Or for slightly more effort and larger yield, buy short term treasuries. And you can get the Fidelity Visa card where 2% of every purchase automatically gets credited to your cash management account. Which I also dump into SPAXX because I'm lazy and it's like 4.6% 7 day yield or something
|
|
#
?
Jul 25, 2023 02:57
|
|
|
daslog posted:And you can get the Fidelity Visa card where 2% of every purchase automatically gets credited to your cash management account. Which I also dump into SPAXX because I'm lazy and it's like 4.6% 7 day yield or something I got this card recently to replace the 1% cash back card that I used to run my entire life through. I am kicking myself for not making the switch years ago. I am also kicking myself for keeping my savings at Chase where it earned zero point gently caress all for over ten years. But live and learn I guess.
|
|
#
?
Jul 25, 2023 03:52
|
|
|
I keep my HYSA at Barclays online savings. They trace their history back to goldsmith banking business in 17th century London. I’m sure they’ve never done anything nefarious. I mean Wikipedia only lists Gold price manipulation, US lawsuit alleging dark pool fraud, fossil fuel investment, Exchange-rate rigging (last-look system), Unsuitable mutual fund transactions and creepy Staff monitoring. Okay, not the best. But I’m sure that was all lower level people and they’re run by wise, intelligent, good people. quote:On 31 October 2021, in a surprise move, group CEO Jes Staley agreed to step down amid investigation of his ties to the sex offender Jeffrey Epstein. He was replaced as group CEO by the Indian-born American banker C. S. Venkatakrishnan, who became the first person of Indian origin to lead Barclays.[161][162] Ah. Hm.
|
|
#
?
Jul 25, 2023 13:09
|
|
|
ABAB
|
|
#
?
Jul 25, 2023 13:13
|
|
|
daslog posted:And you can get the Fidelity Visa card where 2% of every purchase automatically gets credited to your cash management account. Which I also dump into SPAXX because I'm lazy and it's like 4.6% 7 day yield or something The cash back amount goes up the more you have with Fidelity, too. (2.25% at 250k, 2.5% at 1m, 3% at 2m). I sometimes look at that 3% and think "someday."
|
|
#
?
Jul 25, 2023 14:27
|
|
|
Bremen posted:The cash back amount goes up the more you have with Fidelity, too. (2.25% at 250k, 2.5% at 1m, 3% at 2m). I sometimes look at that 3% and think "someday." This got me curious and I looked into it a little more. Unfortunately, "In order to be eligible, you must have $250,000 or more invested in accounts that are professionally managed as part of either Fidelity® Wealth Services or Fidelity® Strategic Disciplines."
|
|
#
?
Jul 25, 2023 15:16
|
|
|
Bremen posted:The cash back amount goes up the more you have with Fidelity, too. (2.25% at 250k, 2.5% at 1m, 3% at 2m). I sometimes look at that 3% and think "someday."
|
|
#
?
Jul 25, 2023 15:34
|
|
|
Subvisual Haze posted:I had to check, and in order to get the boosts above 2% you need to enrolled in Fidelity Wealth Management which itself would charge you an advisor fee of 0.5-1.5% of assets under management (ouch). Well 3% minus a 0.5% advisor fee, you're still over 2%! It's like you're getting their wealth management for free! It's just math!
|
|
#
?
Jul 25, 2023 15:38
|
|
|
Oh, I didn't realize it had to be managed accounts.Residency Evil posted:Well 3% minus a 0.5% advisor fee, you're still over 2%! It's like you're getting their wealth management for free! It's just math! If you charge 2 million dollars to your Fidelity credit card a year, sure.
|
|
#
?
Jul 25, 2023 16:24
|
|
|
Bremen posted:Oh, I didn't realize it had to be managed accounts. gotta spend money to make money
|
|
#
?
Jul 25, 2023 22:50
|
|
|
Space Fish posted:Thanks for the responses, everyone. Here's some extra context informing my decisions: Well the solution here then is a Vanguard taxable account, where you can currently get 5% from their default cash settlement fund, or roll it into FDIC insured brokered CDs at 1-3 month terms if you really want the insurance. You can do all this at Fidelity too, but Vanguard's website is so bad you'll never want to login and yolo that money on memestonks.
|
|
#
?
Jul 26, 2023 09:57
|
|
|
Ally is ex-GMAC and if you don’t think there’s been systemic discrimination in auto loans I got some land to sell you. Picking banks on morals almost inevitably means sacrificing returns, and there’s absolutely no guarantee that a credit union has not engaged in discriminatory lending at minimum. In fact I would bet that every lending institution in America has done so. It’s up to you how much this matters. Most people have lines, you just have to decide where yours are - I won’t bank with Wells Fargo but I have no issue parking my HYSA at Goldman.
|
|
#
?
Jul 26, 2023 12:00
|
|
|
|
| # ? May 31, 2024 09:05 |
|
|
My Google Fu is failing me. Is there any way to designate Federal TSP beneficiary by Roth and traditional versus percentage? We met with an estate attorney who recommended setting up two living revocable trusts. One for Roth and one for all traditional and taxable assets. But it seems I can only designate by percentage in the Federal TSP. Am I wrong? Second choice is to just roll everything into vanguard when I retire too.
|
|
#
?
Jul 26, 2023 18:26
|
|
