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KYOON GRIFFEY JR posted: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. Well nuts, I saw Ally settled over supposed racial discrimination in loans about a decade ago, but the methodology used to prove bias was shaky so I gave them benefit of the doubt. Oh well, I don't bank with them anyway. Personal data points: I am white, my wife is not. She earns more than I do and has a solid credit profile. Wells Fargo offered her a worse loan than me. Our local credit union offered us similar (and better!) terms. These differences should matter whether she is my partner or not. lovely banking practices reinforce lovely community biases and stunted generational wealth. I am not naive enough to believe that there is a platonic ideal of banking virtue out there, but my money will move according to the actions of imperfect institutions.
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Jul 26, 2023 18:38
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I may spin the house hunting process back up in December. The down payment and the closing+maintenance savings (which is ~1/4 the size of the former) are in a couple Ally HYSA buckets. Keeping my timeline in mind, is there a better place to keep them? CDs, T-bills, Vanguard money market? My HYSA is at 4% right now.
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Jul 27, 2023 17:23
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I’m pro T-Bills especially if you hold them to maturity, but realistically you’re talking about a hundred-something basis points which may not really be worth the effort. You’ll want the funds in a liquid form when you go searching. But if I was buying a house in December I’d probably buy 13 week duration treasuries at next auction and then dump the proceeds back in to the HYSA. I think you’re in  so even (1/4th of) 100 bps of your down payment money is likely to be a few hundred dollars at minimum.
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Jul 27, 2023 17:52
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I’m bad with finances and need a gut check on these numbers. In following recommendations as lazily as possible, in Dec 2021 I started a “Schwab intelligent portfolio” brokerage account and put ~$200k in. As of today, I’ve accrued 10,700$ in interest/dividends, and $12,067 in investment losses, so I have less money than when I started. There’s a toggle for risk acceptance (how many stocks etc), and mine is set to medium ish risk. I’m not regularly contributing to it. I understand stocks are volatile and risk is risk, just trying to see if this performance seems normal to you folks or if I need to make some immediate changes
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Jul 27, 2023 19:05
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Thom ZombieForm posted:I’m bad with finances and need a gut check on these numbers. In following recommendations as lazily as possible, in Dec 2021 I started a “Schwab intelligent portfolio” brokerage account and put ~$200k in. As of today, I’ve accrued 10,700$ in interest/dividends, and $12,067 in investment losses, so I have less money than when I started. Read the OP. (Someone else do a better post)
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Jul 27, 2023 19:16
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Thom ZombieForm posted:I’m bad with finances and need a gut check on these numbers. In following recommendations as lazily as possible, in Dec 2021 I started a “Schwab intelligent portfolio” brokerage account and put ~$200k in. As of today, I’ve accrued 10,700$ in interest/dividends, and $12,067 in investment losses, so I have less money than when I started. Yea, your timing was just unlucky, as December 2021 was pretty much the top of the market before a pretty significant stock and bond bear market. Any mix of stocks and bonds did bad in 2022 and has recovered a bit this year... so being down a small amount since December 2021 is normal. The only thing you could have done better is to continue contributing, especially through a market downturn like 2022.
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Jul 27, 2023 19:16
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Thom ZombieForm posted:There’s a toggle for risk acceptance (how many stocks etc), and mine is set to medium ish risk. I understand stocks are volatile and risk is risk If you can handle the volatility, then you can leave it be. If you are losing sleep over it, then shift 10% into treasuries / CDs / HYSA and check your emotions again. The pendulum of volatility will have you flee to safety just as the market bounces back and charge into risk in time for another dip. Your emergency fund is in place, right? Buy right and hold tight!
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Jul 27, 2023 19:25
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I’m going to be pulling some money out of my taxable brokerage account at Vanguard. It is 100% in VTSAX and has been for 2 years (plus dividend reinvestment), where it has mostly broke even with it currently being up a small amount. My question is, is there any reason why I shouldn’t pick MinTax for the cost basis method? My overall tax situation is very normal, just job income for the most part and nothing tricky.
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Jul 27, 2023 19:30
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Set an auto investment and stop staring at it. Market downturns are actually sales!
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Jul 27, 2023 19:35
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Elysium posted:I’m going to be pulling some money out of my taxable brokerage account at Vanguard. It is 100% in VTSAX and has been for 2 years (plus dividend reinvestment), where it has mostly broke even with it currently being up a small amount. My question is, is there any reason why I shouldn’t pick MinTax for the cost basis method? My overall tax situation is very normal, just job income for the most part and nothing tricky. I guess this is new? Neat. I had mine set to SpecID ages ago but this looks like it automates it for you.
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Jul 27, 2023 19:41
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Pollyanna posted:I may spin the house hunting process back up in December. The down payment and the closing+maintenance savings (which is ~1/4 the size of the former) are in a couple Ally HYSA buckets. Keeping my timeline in mind, is there a better place to keep them? CDs, T-bills, Vanguard money market? My HYSA is at 4% right now. VUSXX is the treasury based money market fund at Vanguard which is also around 5.1% yield, although they have been doing some Repos in addition to t-bills so the state/local tax deduction might not be 100%. Good SGOV alternative though for Vanguard accounts. CDs with durations under a year aren't currently offering better yields than treasuries (or treasury based ETFs/MMFs), which makes them a worse option. The highest yield t-bills are currently around 5.4% yield at around 3-6 month duration. So a little extra yield there, but more work and management on your part to pick the specific t-bill to buy and potentially reinvest it when it matures. I'd probably recommended SGOV or VUSXX to just about anyone as simple buy and hold yield upgrade to a HYSA.
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Jul 27, 2023 21:21
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Got a small question: since I'm done with my 401k contributions for this year, I don't really have much to do there other than look at how the existing indices and bonds are doing. I see that I have the option of rebalancing - is that a thing people do when they have distributions that are like 1% or so off their set balance? The standard trigger seems to go up from 5%, but the examples usually given are when people have split things like two ways, where I have things split so it's more like 10% or 20% each. The alternative is to wait for next year and mildly adjust my contributions to rebalance the resulting investments with time. I assume that saves me some fees, but I would be with whatever distribution I have now until January. There's also something about not allowing this rebalancing to happen too often, but I can't imagine doing it once or twice a year would incur any regulator's wrath.
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Jul 27, 2023 21:38
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Absurd Alhazred posted:Got a small question: since I'm done with my 401k contributions for this year, I don't really have much to do there other than look at how the existing indices and bonds are doing. I see that I have the option of rebalancing - is that a thing people do when they have distributions that are like 1% or so off their set balance? The standard trigger seems to go up from 5%, but the examples usually given are when people have split things like two ways, where I have things split so it's more like 10% or 20% each. Rebalancing once a year is fine. Very beginning/end of the year is probably a bit awkward. What do you mean by regulator's wrath? What are you worried about?
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Jul 27, 2023 21:41
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CubicalSucrose posted:Rebalancing once a year is fine. Very beginning/end of the year is probably a bit awkward. Basically, when I opened the "rebalance your account" widget or whatever on the website, it said that if I do it too frequently I might be stopped from doing it because of excessive trading restrictions by some of the funds. Rereading it it's not regulators but the specific funds` terms, I guess.
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Jul 27, 2023 21:50
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Subvisual Haze posted:SGOV (short duration t-bill ETF) is a really nice easy alternative to a HYSA. 5.1% yield currently, also since it's all t-bills This was definitely not true last year and I'm under the impression it's not true this year either. See https://www.ishares.com/us/literature/tax-information/2022-ishares-us-government-source-income-information-stamped.pdf edit: just to be clear I think SGOV is good but it is less than 100% state tax exempt drk fucked around with this message at 00:52 on Jul 28, 2023 |
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Jul 28, 2023 00:33
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Absurd Alhazred posted:Basically, when I opened the "rebalance your account" widget or whatever on the website, it said that if I do it too frequently I might be stopped from doing it because of excessive trading restrictions by some of the funds. Rereading it it's not regulators but the specific funds` terms, I guess. If you buy and sell stocks within the same day frequently, it can trigger special finra rules about day trading. It could be referring to that but I think that's only margin accounts. If it's "rebalancing" with mutual funds it's probably like you said, warning you about fund rules against moving in and out too frequently. Edit: this Fidelity page also has some ways you can gently caress up with a cash account. Though I think most brokerages just won't let you place the order on a cash account if you don't have enough settled cash. mrmcd fucked around with this message at 01:13 on Jul 28, 2023 |
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Jul 28, 2023 01:06
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drk posted:This was definitely not true last year and I'm under the impression it's not true this year either. Absurd Alhazred posted:Basically, when I opened the "rebalance your account" widget or whatever on the website, it said that if I do it too frequently I might be stopped from doing it because of excessive trading restrictions by some of the funds. Rereading it it's not regulators but the specific funds` terms, I guess. Yeah that's a fund specific issue. My 401k has one fund option that charges extra fees if you trade into and out of it too frequently. As long as I avoid that fund there's no issue.
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Jul 28, 2023 18:56
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Are there any flowcharts or guides on how to calculate/plan for actual retirement spending? We're DINK, mortgage will be paid off, we don't intend to relocate, and with our incomes combined, even estimating that we'd spend 50% of our combined incomes monthly is WAY too much. I'm actually hopeful to retire at 55 and start Social Security at 62 if I can, but even then my wife will probably still work until she gets to SS age because she isn't of the same opinion as me regarding hanging around the house and doing hobbies and gardening all day. The only things I can think of are calculate groceries, utilities, internet, auto insurance, health insurance, monthly payments if we have to replace a car, and figure out what we'd be spending for Other Retirement Stuff (traveling, helping niece and possible future other niece/nephew with college), etc. A lot of googling doesn't yield much in terms of calculators to figure out How Much Being Retired Costs as much as How Much You Should Spend for Assumed Costs.
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Jul 28, 2023 19:43
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https://www.retirementbudgetcalculator.com/ i have not used this tool, but Rob Bergher mentioned it as something he's currently reviewing on his show might be worth a look also my understanding is that you can do some pretty in-depth planning with new retirement's paid version, but i'm not sure it'll be at the level of detail you're looking for honestly most planning decades out is just based on rule of thumb approximations extrapolating from current expenses because there's just too many unknowns to your retirement budget till you're just a few years out
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Jul 28, 2023 20:04
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GhostofJohnMuir posted:https://www.retirementbudgetcalculator.com/ I just use firecalc, no fuckin' way I'm giving these guys my email Hope it works well for those that use it though
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Jul 28, 2023 20:07
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MJP posted:Are there any flowcharts or guides on how to calculate/plan for actual retirement spending? We're DINK, mortgage will be paid off, we don't intend to relocate, and with our incomes combined, even estimating that we'd spend 50% of our combined incomes monthly is WAY too much. I'm actually hopeful to retire at 55 and start Social Security at 62 if I can, but even then my wife will probably still work until she gets to SS age because she isn't of the same opinion as me regarding hanging around the house and doing hobbies and gardening all day. 30x expenses. Read about the retirement spending smile. Guess at healthcare.
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Jul 28, 2023 20:10
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Not a Children posted:I just use firecalc, no fuckin' way I'm giving these guys my email for most people more than like 5 years out from retirement i'd just recommend firecalc too, but mjp seems like they want a lot of specificity when calculating costs that i think only a paid product will likely give
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Jul 28, 2023 20:13
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Retirement flowchart: If you put all of your money into government bonds, would the interest cover all of your bills + a bit extra for inflation? Yes: Retire No: Keep working
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Jul 28, 2023 20:51
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I appreciate the simplicity, but that's just wrong. It's not realistic to expect to die with the same amount or more money than you had when you retired. Proper retirement planning for most people includes a rate of drawdown. It also includes social security.
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Jul 28, 2023 20:56
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If you die with as much money as you did when you retired you probably hosed up. Or you were so rich to start with you couldn't meaningfully affect your total net worth with a single humans' spending while not working.Leperflesh posted:It also includes social security. "But the news said that they're going to kill social security!"
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Jul 28, 2023 21:01
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haha yeah has it been enough pages yet to repeat? at it's worst, ss shortfall is expected to be something like only having 75% of mandated payout, meaning, if they just blanket reduced payouts across the board to match funding, everyone would still get 75% of their expected SS check it is more likely that they'll raise the retirement age, increase SS taxes (in particular, it'd be great if they raised the income cap above which income is not taxed for SS), or just keep paying out and add the shortfall to the budget deficit regardless, just assuming there will be no SS when you retire is similar to just assuming the government will collapse and dollars will be worthless: sure, maybe you're right, but if you are, this is the wrong thread
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Jul 28, 2023 21:19
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also there's a lot of guess work around the efficient frontier for a personal portfolio, but everything i've seen points to the inclusion of some equities
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Jul 28, 2023 21:22
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GhostofJohnMuir posted:also there's a lot of guess work around the efficient frontier for a personal portfolio, but everything i've seen points to the inclusion of some equities Absolutely. For example, here's the Vanguard 2020 target retirement date fund (VTWNX):  25.3% domestic stocks and 17.1% international stocks so 42.4% equities, for people who retired about three years ago.
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Jul 28, 2023 21:29
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Also worth noting that a lot of the time for close-to and in-retirement funds, the distribution of stocks is more heavily weighted with dividend/value stocks for obvious reasons which aren't really "stocks" stocks to the average internet person who thinks stocks are BBBY and TSLA only. Stonks!
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Jul 28, 2023 21:30
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Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? Here’s my list: * bail bonds
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Jul 28, 2023 22:47
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smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? Angrily repaying my student loans that are restarting payment in September and that are not eligible for PSLF by 12 payments.
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Jul 28, 2023 22:49
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smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? Paying my financial advisor who lost all my money on hail mary crypto schemes and now insists on being paid in cash
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Jul 28, 2023 23:09
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Was going to say my drug dealer, but actually he takes venmo now.
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Jul 28, 2023 23:18
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smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? I need it for buying a house I can no longer afford
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Jul 29, 2023 02:23
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...they made a movie about the Gamestop diamond hands bullshit?
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Jul 29, 2023 02:48
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Awkward Davies posted:I need it for buying a house I can no longer afford
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Jul 29, 2023 02:48
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I think there’s a bit of a disconnect regarding the definition of “cash”
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Jul 29, 2023 04:21
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DACK FAYDEN posted:...they made a movie about the Gamestop diamond hands bullshit? There's a movie about the Beanie Babies bullshit and the Flamin Hot Cheetos bullshit too.
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Jul 29, 2023 04:53
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I think a lot of the weirdness goes away when you replace "they made a movie about X" with "someone was willing to pay to produce a movie about X". If it's some finance bullshit then of course there are people willing to pay for that.
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Jul 29, 2023 04:57
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KYOON GRIFFEY JR posted:I think there’s a bit of a disconnect regarding the definition of “cash” Yeah, I'm thinking the first post was talking about paper money, dolla dolla bills y'all 
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Jul 29, 2023 07:24
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