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MockingQuantum posted:Is it common for savings accounts to cap APY once you hit a certain balance? It feels like ages since I've seen something say "4.00% APY up to a balance of $3000"
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Apr 23, 2019 17:46
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DJCobol posted:Thats a checking account, and yes for checking accounts since they aren't usually places to horde cash. Not always true for a checking account. For example, see Ally, a low APY up until a minimum daily balance of $15k at which point it switches to a higher APY: https://www.ally.com/bank/interest-checking-account/ (I stick with the non-internet big boys for my checking account, I don't care about the APY there and being able to deposit cash at ATMs is fun)
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Apr 23, 2019 18:59
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Something Offal posted:Not always true for a checking account. For example, see Ally, a low APY up until a minimum daily balance of $15k at which point it switches to a higher APY: https://www.ally.com/bank/interest-checking-account/ It's typical to go from a really low APY to a higher, but still low, APY after; such as in your Ally example. What isn't typical is for a high APY to stay high or get higher after certain balances. So if you find a checking account that offers say 2% APY, it is very likely that it drops down after a certain balance. You can find high yield checking accounts that accept cash deposits at ATMs, and they're definitely nice to have available since I find CD ladders and such too much work and most money market accounts have garbage rates.
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Apr 23, 2019 23:27
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Beer4TheBeerGod posted:Yeah I can definitely beat the market. It's why I work for the federal government. Of my three coworkers I’ve explicitly talked TSP allocations with, 2 put 20% in each fund. So 20% S&P, 20% small cap, 20% international, 20% G, and 20% private bonds. I don’t know why. I’m pretty sure no rebalancing is happening either.
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Apr 24, 2019 00:10
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Raldikuk posted:It's typical to go from a really low APY to a higher, but still low, APY after; such as in your Ally example. What isn't typical is for a high APY to stay high or get higher after certain balances. So if you find a checking account that offers say 2% APY, it is very likely that it drops down after a certain balance. I wonder if the same people who don't understand tax brackets also get super stumped by these accounts. "If you keep more money with them, you get less interest paid to you. Nice try, banksters!"
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Apr 24, 2019 03:40
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SpelledBackwards posted:I wonder if the same people who don't understand tax brackets also get super stumped by these accounts. "If you keep more money with them, you get less interest paid to you. Nice try, banksters!" Well...I truly loled at this. Thanks
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Apr 24, 2019 03:44
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Velius posted:Of my three coworkers I’ve explicitly talked TSP allocations with, 2 put 20% in each fund. So 20% S&P, 20% small cap, 20% international, 20% G, and 20% private bonds. I don’t know why. I’m pretty sure no rebalancing is happening either. Lifecycle funds exist for a reason. I don't understand why anyone wouldn't use them unless they plan on being particularly active. 100% L2045 for me.
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Apr 24, 2019 04:05
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Beer4TheBeerGod posted:Yeah I can definitely beat the market. It's why I work for the federal government. Well congress IS the one body of investors who outperform the S&P 500 reliably
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Apr 24, 2019 07:28
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El Mero Mero posted:Well congress IS the one body of investors who outperform the S&P 500 reliably It's good to be the King.
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Apr 24, 2019 19:22
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Hey guys, I lurk this thread and post about once a year to get some opinions on my 401k allocations, just hoping to do that again. 40% FSKAX 40% FTIHX 20% FXNAX I've got 130k in there now. I'm 35, make like 85k a year. I've thought about just sticking everything in one of Fidelity target date funds, but the expense ratio is a lot lower on the index stuff, sooo maybe not?
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Apr 25, 2019 00:37
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Looks good to me, although I personally only hold 10% bonds instead of 20% bonds, and I maintain a 3:1 ratio of USA to International instead of 1:1
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Apr 25, 2019 00:38
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Beer4TheBeerGod posted:Lifecycle funds exist for a reason. I don't understand why anyone wouldn't use them unless they plan on being particularly active. TSP's lifecycle funds have double the bond portfolio that Vanguard's allocation is for the same target retirement, so I do the funds myself to mimic Vanguard and rebalance yearly.
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Apr 25, 2019 22:04
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Neon Belly posted:TSP's lifecycle funds have double the bond portfolio that Vanguard's allocation is for the same target retirement, so I do the funds myself to mimic Vanguard and rebalance yearly. The G/F allocation on the lifecycle funds are too conservative for me. I'm doing 90/10 and allocated enough on G to make up 10% of my overall portfolio which has TSP (separated so adjusting the allocation every 6 months ish), a 401k through work, and a Vanguard roth. Planning to bump up the allocation on I as soon as they change the index.
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Apr 25, 2019 23:51
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Go on...
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Apr 26, 2019 00:50
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air- posted:The G/F allocation on the lifecycle funds are too conservative for me. I'm doing 90/10 and allocated enough on G to make up 10% of my overall portfolio which has TSP (separated so adjusting the allocation every 6 months ish), a 401k through work, and a Vanguard roth. Planning to bump up the allocation on I as soon as they change the index. Back in November they adjusted their allocations to be less conservative: https://www.tsp.gov/whatsnew/Content/index.html#lifecyclechanges quote:Changes coming to the Lifecycle (L) Funds — (November 29, 2018) We are planning adjustments to the L Funds in an effort to improve your investment outcomes. Effective in January 2019, we will increase exposure to international stocks (the I Fund) from 30% to 35% of the overall stock allocation in all L Funds. The L Income Fund stock allocation (C, S, and I Funds combined) will increase from 20% to 30% over a period of up to 10 years. The L 2030, L 2040, and L 2050 overall stock allocations will hold steady for a period of years before resuming their transitions from stocks to bonds. In addition to improving investment outcomes, this pause will align the L 2030, L 2040, and L 2050 Funds with the L 2060 Fund, which will be introduced in 2020 with an initial stock allocation of 99%. Visit Lifecycle Funds to learn more. https://www.tsp.gov/InvestmentFunds/FundOptions/fundPerformance_L2050.html
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Apr 26, 2019 02:56
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I'm good with 90/10, posted a few pages ago with my math but it got buried in the rrsp discussion:
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Apr 26, 2019 03:26
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El Mero Mero posted:jeeze I just found out there are massive TSP facebook groups hawking "seasonal investing" (daily/weekly/monthly) re-allocation strategies and other active trading tips for their TSP accounts. ffs people I know someone in my agency who does exactly that, claiming that he's made bunches of money timing the market moving between funds. I only found out because he was convincing my (somewhat gullible) co-worker to do the same. I tried to talk my coworker down from the idea of timing the market, but the lure of "So-and-So has been doing it and it's never gone wrong" was stronger. I try not to discuss finances with my coworkers, so I dropped it pretty fast.
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Apr 26, 2019 16:44
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incogneato posted:I try not to discuss finances with my coworkers, so I dropped it pretty fast. I only intervene when someone is about to gently caress their life up, so I can at least say I tried "no that car loan with 32% interest is not a good idea" is the least I can offer
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Apr 26, 2019 16:55
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incogneato posted:I know someone in my agency who does exactly that, claiming that he's made bunches of money timing the market moving between funds. I only found out because he was convincing my (somewhat gullible) co-worker to do the same. I tried to talk my coworker down from the idea of timing the market, but the lure of "So-and-So has been doing it and it's never gone wrong" was stronger. I try not to discuss finances with my coworkers, so I dropped it pretty fast. Timing the market works great until it doesn't.
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Apr 26, 2019 21:23
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Has anyone used Betterment or Wealthfront (or any other robos)? How did transferring your existing holdings into them go tax-wise? It seems to be that they can take your ETFs and pull them into their own without any tax implications, which would be ideal.
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Apr 30, 2019 00:32
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A Proper Uppercut posted:Hey guys, I lurk this thread and post about once a year to get some opinions on my 401k allocations, just hoping to do that again. Maybe someone else who knows more can chime in but FSPSX might be a slightly better choice compared to FTIHX (0.045% exp ratio versus 0.06%). The only difference I see between the two that explains the higher expense ratio is that FTIHX might be better diversified (4671 holdings versus 936) but I don't know how much it really matters after a certain point. Another possible option is FZILX which is a ZERO (meaning no expense ratio) version of their international index fund. Discussion about these funds probably happened at some point during this thread but I don't know what the consensus is. I also don't know what to make of a 0% turnover rate. edit: I should say that overall I think you'll do great with your current plan. I have a very similar allocation with Fidelity but use FSPSX instead of FTIHX which is why I bring it up. BattleHamster fucked around with this message at 01:35 on Apr 30, 2019 |
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Apr 30, 2019 01:27
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paternity suitor posted:Has anyone used Betterment or Wealthfront (or any other robos)? How did transferring your existing holdings into them go tax-wise? It seems to be that they can take your ETFs and pull them into their own without any tax implications, which would be ideal. We should get stuff added to the OP about them since this question comes up pretty regularly.
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Apr 30, 2019 02:28
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My wife is self employed. Is there anything she needs to do for a SEP 401k, besides open an account with Vanguard (or whatever) and put money in it (and then report on taxes)? Assume, at the moment, no matching or tricky fuckery, just trying to put 19k away out of her/our pocket pre-tax.
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Apr 30, 2019 02:51
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As soon as my company's quarterly earnings call wrapped up my phone rings. It's a 212 number. It's someone from Merrill Lynch, a company I have never done business with, congratulating me on a great quarter and telling me that he is a portfolio advisor for executives in public companies and would I mind if he emailed me some information about some of their services - he already had my company email address and asked if it would be okay to send it there. Sure, go for it.  I have to assume they actually have customers for this. The mind boggles.
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Apr 30, 2019 23:08
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There's flattery to be had in getting whale watched!
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Apr 30, 2019 23:12
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See if they’ll take your art as collateral instead?
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Apr 30, 2019 23:17
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GoGoGadgetChris posted:There's flattery to be had in getting whale watched! I hadn't thought of it that way. I just responded to the email thanking him for introducing me to the most hilarious loan product I've seen in a long time. Why yes, I would like to set myself up for a margin call on things I already own. That sounds great! They are also offering what is essentially a personal loan somehow securitized against your portfolio through BofA. quote:The LMA account is a flexible line of credit offered by Bank of America, N.A. (the Bank). It is an account that allows you to use your eligible investments as collateral for multiple loan advances, giving you access to funds for personal and business financing needs.  crazypeltast52 posted:See if they’ll take your art as collateral instead? 
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Apr 30, 2019 23:23
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Motronic posted:As soon as my company's quarterly earnings call wrapped up my phone rings. It's a 212 number. Gotta give those poor executives a way to cash out without selling their stock and making it look like they don't have faith in the company! It's pretty amazing the leverage opportunities available to people with truly astonishing amounts of capital one restricted stock sale away. I'm going to share this at work, we use BAML for our stuff and it's atrocious.
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May 1, 2019 00:01
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H110Hawk posted:Gotta give those poor executives a way to cash out without selling their stock and making it look like they don't have faith in the company! It's pretty amazing the leverage opportunities available to people with truly astonishing amounts of capital one restricted stock sale away. The worst part about this is that they are using the right words and phrases for people with a passing interest in doing a good thing for their financials and slamming them into a bad loan product. I mean, I get it. But hoooooo so predatory. I guess it's just fun to have seen the progression of financial predators and techniques from poor->okay->middle class->upper middle class->you paid more in taxes than 95% of people make. This is temporary and I know that, but it sure is a hell of a boost in early retirement.
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May 1, 2019 00:07
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Only having 7 legs is a nice touch.
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May 1, 2019 00:22
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Hoodwinker posted:Only having 7 legs is a nice touch. I wish I could take credit for that masterpiece. http://www.27bslash6.com/overdue.html
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May 1, 2019 00:27
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Motronic posted:I wish I could take credit for that masterpiece. That gave me some giggles.
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May 1, 2019 00:48
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hoo boy I just read up on exchange funds, what a trip
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May 1, 2019 02:31
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Motronic posted:As soon as my company's quarterly earnings call wrapped up my phone rings. It's a 212 number. You laugh about this but this is exactly what Elon Musk is using to finance his whole lifestyle. Boring Co., his Malibu mansion, his jet, it's all financed by this. An additional element of hilarity is that analysts estimate he starts to have to "put up or shut up" more of his shares of Tesla if the stock price drops below (drum roll please) 240 lololol
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May 1, 2019 13:51
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EAT FASTER!!!!!! posted:You laugh about this but this is exactly what Elon Musk is using to finance his whole lifestyle. I'm laughing harder now.
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May 1, 2019 14:35
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EAT FASTER!!!!!! posted:You laugh about this but this is exactly what Elon Musk is using to finance his whole lifestyle. You beat me to it; I was about to point this out. If you ever wonder why Elon Musk gets real upset with shorts selling Tesla stock, this really explains it all. He'll be turbofucked if the stock falls too far because the only money he has to live on is what he borrows against his stock. Someone on seeking alpha did a try-hard analysis on the situation: https://seekingalpha-com.cdn.amppro...hare-price-soon
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May 1, 2019 19:38
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Begath posted:You beat me to it; I was about to point this out. If you ever wonder why Elon Musk gets real upset with shorts selling Tesla stock, this really explains it all. He'll be turbofucked if the stock falls too far because the only money he has to live on is what he borrows against his stock. Well, I'm convinced. Now someone tell me how to short TSLA so I can put 100k on it. edit: not the BWM thread, oops.
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May 1, 2019 19:53
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There is also a massive tax benefit involved with borrowing against your stock, since you avoid cap gains tax.
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May 1, 2019 19:54
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While we’re on the subject, if I find myself concentrated in a single stock and want to diversify by the old-fashioned method of selling it, are there any tricks to avoid or simplify estimated tax payments while doing so?
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May 1, 2019 20:05
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Gazpacho posted:While we’re on the subject, if I find myself concentrated in a single stock and want to diversify by the old-fashioned method of selling it, are there any tricks to avoid or simplify estimated tax payments while doing so? You can donate stock and avoid any cap gains.
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May 1, 2019 22:10
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