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sadus posted:Ally going down from 2.1% to 1.9% as of tomorrow, thanks a lot trade wars Aren't the HYS accounts essentially tied to the fed rate?
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Aug 5, 2019 22:45
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Residency Evil posted:Aren't the HYS accounts essentially tied to the fed rate? Yes they are, and the Fed is cutting mainly because of the trade war so his point stands
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Aug 5, 2019 23:41
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Closed out my old HSA to transfer the funds to mthe one with my new company a week ago 
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Aug 5, 2019 23:58
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My partner's new job offers a 457b AND a 403b, which it looks like you can max both on. Is this right? If your employer offers both you can max both up to 19k? That's kinda crazytown but ooooooookay
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Aug 6, 2019 03:00
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Looks like CiT Bank Savings Builder is still holding steady at 2.3%. I hope it stays that way.
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Aug 6, 2019 04:41
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El Mero Mero posted:My partner's new job offers a 457b AND a 403b, which it looks like you can max both on. Is this right? If your employer offers both you can max both up to 19k? This is correct, however do some reading on employer sponsored 457s. Some (such as government ones) are essentially just extra 401k space. Others can be restrictive/have poor fund choices. You also need to look in to what happens when you leave/change jobs.
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Aug 6, 2019 11:04
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El Mero Mero posted:My partner's new job offers a 457b AND a 403b, which it looks like you can max both on. Is this right? If your employer offers both you can max both up to 19k? 457s range from literally the best place to park your money bar none (a governmental 457 because of no early withdrawal penalty, catch up contributions, unlimited rollovers to 401k/403b/IRA, Roth basis available) to a totally shaky investment and bad idea (when it can be raided, like with some private plans). It's great to have more tax advantaged space, and I'm super excited for my wife and I to get 457 space starting (hopefully) January 1, 2020, but we work for the State(ish) and so our plans are legally relatively bulletproof.
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Aug 6, 2019 15:24
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EAT FASTER!!!!!! posted:457s range from literally the best place to park your money bar none (a governmental 457 because of no early withdrawal penalty, catch up contributions, unlimited rollovers to 401k/403b/IRA, Roth basis available) to a totally shaky investment and bad idea (when it can be raided, like with some private plans). It's great to have more tax advantaged space, and I'm super excited for my wife and I to get 457 space starting (hopefully) January 1, 2020, but we work for the State(ish) and so our plans are legally relatively bulletproof. On this topic, my wife has a 457 that has decent fund selections and a very stable employer. We've been investing in the 403b as well as the 457. Here's what happens if she decides to change jobs: quote:If your employment ends, you have several options for your savings, including: Are these pretty standard?
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Aug 6, 2019 15:32
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Residency Evil posted:On this topic, my wife has a 457 that has decent fund selections and a very stable employer. We've been investing in the 403b as well as the 457. Here's what happens if she decides to change jobs: Yes, except that a true G457 would allow rollovers into any other qualified retirement plan instead of just another 457. The 15 year disbursements are unlikely to really, really screw up your income but keep in mind that those disbursements are taxable as income unless they were put in on a Roth basis. 420 smoke no taxes every day.
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Aug 6, 2019 16:01
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EAT FASTER!!!!!! posted:Yes, except that a true G457 would allow rollovers into any other qualified retirement plan instead of just another 457. Yeah no, unfortunately her 457 isn't a government one.  My understanding is that worst case, if she leaves and there's no 457 offered at her new job, we take the disbursements and they're taxed at our marginal rate, so essentially a taxable account, albeit with money that was originally put in tax-free. Is that right?
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Aug 6, 2019 16:21
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The worst case is that the company goes bankrupt and she loses all the money in the account. It's not money held by her, unlike a standard 401k, it's explicitly money held by the company and she is just another creditor with unsecured debt.
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Aug 6, 2019 18:36
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Non-governmental 457 plans never allow for Roth contributions. The options you've listed for disbursement are pretty standard. IMO the big decision points about using the NG-457 (assuming a low credit risk) are about how it has to be distributed upon leaving the employer. So ideally, if you can't roll the balances over to another employer if/when you change jobs, then you first want to see if they are willing to hold onto the account and do disbursements at a later date. Of note, I didn't find out I could do this with my current NG-457 until I asked them to tell me every option I had if I left. If they require you to start taking disbursements immediately, then it's a question of how long a period can you spread them out over. If I had to throw a random number out there, I'd say 5 years is probably the minimum I'd accept, and 15 is actually quite generous in my experience. Having the account pay out over 15 years means it's really unlikely that, even if you're both still working full time and you made contributions for 10-15 years, you'd end up having the contributions taxed in a higher tax bracket than you're currently in. So assuming you max out the 457 and get 7% annualized growth, you'd end up with $505k in 15 years. Divide that by 15 years of distributions and it's an additional $33,666/yr of taxable income, which probably won't hugely change the bracket you're in. Only thing is that I think you're locked into the disbursement plan you select once you choose it, so you have to be ok with the money coming out at whatever rate and over whatever period you decide on initially. Last time I ran the numbers comparing a 457 that you have to withdraw earlier than expected to putting in the equivalent post-tax amount in a taxable account, you end up coming out ahead with the 457. And best case scenario, you just contribute until you're ready to retire, then draw down this money first.
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Aug 6, 2019 18:50
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Chu020 posted:And best case scenario, you just contribute until you're ready to retire, then draw down this money first. That's the dream, my man.
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Aug 6, 2019 18:53
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Here's the deal on 457(b) plans, straight from the IRS: https://www.irs.gov/retirement-plans/non-governmental-457b-deferred-compensation-plans quote:Plan must remain unfunded The critical point here is that last sentence. If the employer finds itself unable to pay its debts, it can go into bankruptcy. Any form of bankruptcy leaves the assets of the 457(b) plan as likely to be used to pay the company's creditors. IMO you should treat a non-governmental 457(b) as being a bonus place to stash some money that you can afford to lose, e.g., not how you'd view "retirement savings." It's a better deal than investing in your own company's stock, because of the lack of volatility; but unlike investing in your own company's stock, you do not have the opportunity to sell it if the company is tanking. You could quit and try to cash out if you think your company is on the verge of failing, but there's a risk you won't know that's happening. If you feel your employer is more or less immune to failure during the foreseeable future you'll be there, then you might risk putting a chunk of money into this sort of plan in order to take advantage of the tax advantaged savings. But be careful and be serious about your willingness to bail if your company hits hard times.
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Aug 6, 2019 19:24
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 This is for my HSA investments. 30 y/o, healthy (so far). Could someone please peep over the list and make a recommendation on individual funds to move the target fund into? Payflex didn't make it easy, sorry, this is what I see. Not sure what expenses get added on to the fund's own expense ratio (if any). And recommend percentages equities/bonds I should select, I guess - I suppose the allocations might be different than a 401k since you could potentially get sick at any time. Vanguard 500 Admiral and Vanguard Dividend Admiral, I guess? Paul MaudDib fucked around with this message at 22:51 on Aug 8, 2019 |
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Aug 8, 2019 22:44
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Post expense ratios. But even without knowing that I’d hold 2x deductible in cash and then go 100% Vanguard 500 fund. This is mostly because I’d know exactly where the money is going and have some faith in the brokerage to consistently act in my best interests over a 30+ year period.
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Aug 8, 2019 22:52
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We need expense ratios, but probably.
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Aug 8, 2019 22:52
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aha, the ERs were buried three pages down. Looks like Vanguard 500 it is then
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Aug 8, 2019 23:00
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I only use those artisanal bespoke portfolios crafted by hedge fund artisans that have spent the last 20 years in a drug fueled state to better commune with the animal spirits of Wall Street. Yeah, it's expensive, but you can't put a price on quality.
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Aug 8, 2019 23:10
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artisanal small-batch investments and it actually is the most expensive fund on the sheet 
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Aug 8, 2019 23:16
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Ur Getting Fatter posted:I only use those artisanal bespoke portfolios crafted by hedge fund artisans Curse you for uttering such good thread title fodder that is too long to use
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Aug 8, 2019 23:44
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Ur Getting Fatter posted:“I only use bespoke portfolios crafted by hedge fund artisans” Does that work?
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Aug 9, 2019 00:27
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A subtitle of just "artisanal bespoke portfolios" might work. edit: but you have to promise to pronounce it "are-tiss-anal" in your head.
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Aug 9, 2019 02:15
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Long term and Retirement Investing: Only artisanal bespoke portfolios for me, thanks
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Aug 9, 2019 02:34
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It's just amazing to me in the era after indexing has been mathematically and historically shown to be superior again and again and again that people can default to active management (especially shaving 101 bips off the top) instead of low cost index funds. Fund managers are truly shameless.
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Aug 9, 2019 14:14
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I've been thinking of going into the biodynamic farm-to-table route of investing
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Aug 9, 2019 14:23
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I only invest in organically grown, grass-fed index funds.
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Aug 9, 2019 14:28
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I never knew this, but the SPY fund ETF is technically an unit investment trust linked to the lifespan of 11 millennials. I wonder how many other ETFs are set up as unit investment trusts.
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Aug 9, 2019 14:50
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I have to migrate my IRA from a university job to a private IRA (leaving academia, wooooo!). However, my credit union does not have any way to deposit into an IRA except for in-person deposits, and I'll be traveling around the world for the foreseeable future. Can anyone recommend a bank that lets me mobile deposit into IRA accounts?
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Aug 9, 2019 15:15
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lord funk posted:I have to migrate my IRA from a university job to a private IRA (leaving academia, wooooo!). However, my credit union does not have any way to deposit into an IRA except for in-person deposits, and I'll be traveling around the world for the foreseeable future. Almost any brokerage can accept an ACH deposit. Open a Vanguard account. Deposit checks into your bank normally and move money to Vanguard as appropriate. (Also, open a Schwab checking account - but don't worry about using them for significant investments, just get that sweet ATM card)
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Aug 9, 2019 15:17
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Sounds good, thanks. Might get that Schwab account too.
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Aug 9, 2019 16:18
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EAT FASTER!!!!!! posted:It's just amazing to me in the era after indexing has been mathematically and historically shown to be superior again and again and again that people can default to active management (especially shaving 101 bips off the top) instead of low cost index funds. Actually, index funds are destroying the economy: https://www.marketwatch.com/story/your-love-of-index-funds-is-terrible-for-our-economy-2018-12-10 
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Aug 9, 2019 17:02
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Darkrenown posted:Actually, index funds are destroying the economy: Oh yes, it sure is a tragedy that hedge fund managers can't actively manipulate the stock market for their own personal gain as well as they used to, egads Who would have ever thought my career of state-sanctioned gambling on the market would be ruined by a bunch of plebes holding stock in index funds
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Aug 9, 2019 17:48
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Yeah, Index Funds are incredible because if they don't do well the market is totally ruined beyond repair and nothing would save it anyway. By virtue of being the average, I am fine with beating half the people who deal in stocks with no effort and very small fees.
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Aug 9, 2019 17:54
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Half? Isn't it more like 80%?
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Aug 9, 2019 18:01
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quote:But the truth is that index funds have gotten so big that they now pose a major risk to our economy — and even to capitalism itself. Great. Go buy more index funds. Destroy capitalism.
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Aug 9, 2019 18:58
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EAT FASTER!!!!!! posted:It's just amazing to me in the era after indexing has been mathematically and historically shown to be superior again and again and again that people can default to active management (especially shaving 101 bips off the top) instead of low cost index funds. Are you a member of the wci Facebook group? It's amazing to me, that in a Facebook group theoretically centered around doctors investing in index funds there are still people talking about paying advisors 1-2%.
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Aug 9, 2019 19:00
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So I either get rich OR destroy capitalism? 
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Aug 9, 2019 19:01
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Residency Evil posted:Are you a member of the wci Facebook group? It's amazing to me, that in a Facebook group theoretically centered around doctors investing in index funds there are still people talking about paying advisors 1-2%. I've been Facebook-free for 17 months now! And that doesn't surprise me at all - the other day a friend who got her MBA with me - asked me the other day "who I used for my financial advisor?" I wasn't very nice about it I suppose.
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Aug 9, 2019 19:07
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GoGoGadgetChris posted:Half? Isn't it more like 80%? In practice, yeah. But it should be the average of all trading.
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Aug 9, 2019 19:10
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