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If you’re lucky you don’t get into major medical / mental health / legal issues with kids (or some combination). I remember my dad having to declare my older brother incorrigible or whatever the legal definition was because he just kept running out stealing cars and breaking into houses. Didn’t want to pay for it anymore. Seems like I got off lucky that I only had to pay for years of therapy with my daughter.
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Jan 13, 2020 19:28
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Loan Dusty Road posted:And you never think you’ll be the one to have
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Jan 13, 2020 19:31
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Loan Dusty Road posted:And you never think you’ll be the one to have twins... Yeah, twins for our second pregnancy... 
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Jan 13, 2020 19:37
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Tyro posted:My wife would just NOT listen to my arguments against asking for the china. My wife and I wised up after we got pregnant and returned all that garbage that had been sitting at her parents house collecting dust. Bed bath and beyond store credit works at buy buy baby and we got way more use out of it
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Jan 13, 2020 20:26
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My well-meaning midwestern boomer family members just could not comprehend why someone would not want more stuff, stuff is great!
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Jan 13, 2020 20:33
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MockingQuantum posted:My well-meaning midwestern boomer family members just could not comprehend why someone would not want more stuff, stuff is great!
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Jan 13, 2020 20:36
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MockingQuantum posted:My well-meaning midwestern boomer family members just could not comprehend why someone would not want more stuff, stuff is great! I definitely felt like we got more stuff than we needed for our kid. Luckily, we have a friend who only had one kid, and their parents were in the same mindset of 'here is all this stuff!' so they gave us a ton of their old stuff because they didn't want to store it and felt weird selling it because they didn't pay for it. So we used it, and then ended up selling a lot of it after we were done with it. We might have made money on this kid so far.... So we got all her clothes, and then I have a boss that had a little girl that is a year older than mine, and regularly gives me her hand me down clothes as well. I literally have not shopped for clothes for my kid, ever. I've gotten so much hand my down stuff that it's insane. I know this train is going to stop one day when they don't outgrow their clothes within months, and that will make me sad.
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Jan 13, 2020 21:05
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I forgot to say, my well-meaning midwestern boomer family members loaded us down with a bunch of cruft for our wedding shower, I don't have kids. Much harder to find someone who wants a hand-me-down fiesta-colored garnish tray with matching inexplicably small salsa dishes.
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Jan 13, 2020 21:16
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Space Gopher posted:I have a DD into Vanguard taxable from my employer. It shows up in the "credits and debits" on payday, at the same time my paycheck DD hits my checking account. I can submit trades against it at that point. If I don't, it will turn into money market funds in a few days. You can just set up the direct deposit to convert directly into whatever proportion of funds you like on arrival, no need to set up complicated chains of scheduled operations.
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Jan 13, 2020 21:45
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I'm not sure if this is the right place to ask or not. Through work I have a pension plan that I am automatically entered into. I contribute 6.5% gross, my employer does 7.5%. I also have a 457b plan that I can contribute too, but that doesnt get matched. Currently I throw $200 a paycheck into that account, which ends up being about 10% of my net paycheck. Is there any reason to start an IRA through Vanguard if I cant max out the 457b? Or I'm I better off at trying to throw more money into that?
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Jan 13, 2020 22:22
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You can almost definitely choose better (read: cheaper with similar or better performance) options in your own IRA vs. your 457b.
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Jan 13, 2020 22:26
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BaseballPCHiker posted:I'm not sure if this is the right place to ask or not. I am a fellow 457(b) haver, and while I max out both my IRA and my 457(b), I would prioritize the 457(b) if my total retirement savings for the year were going to be less than $19,500. Unlike the IRA, the 457(b) allows for distributions before age 59.5 without a 10% penalty. I am trying to retire by age 40ish, so having a tax-advantaged savings vehicle with no early distribution penalty is great. Note that the 457(b) is only good for early distributions after you separate from service. If you're still employed, it's actually harder to access the 457(b) money than it is for a 401(k). I think this is a good thing and you shouldn't be touching that money during employment anyway unless a bona fide emergency crops up, but it's worth knowing. Finally, the above only holds true if fees are relatively low. For an IRA you can access insanely low fees through Vanguard. What are the fees like in your 457(b)? If they're above 0.50-0.60%, you may want to think about maxing the low-fee IRA and then contributing any overage to the 457(b).
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Jan 13, 2020 22:32
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Ralith posted:You can just set up the direct deposit to convert directly into whatever proportion of funds you like on arrival, no need to set up complicated chains of scheduled operations. Vanguard direct deposit only allows you to land the incoming money into a settlement fund (which is basically always money market). You can't go directly from DD to a buy order for a specific mutual fund or ETF. Are you thinking of automatic investments? Those can do an ACH pull followed by an arbitrary buy, but you can't do things like set up an external direct deposit from employer payroll or the IRS for a tax refund.
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Jan 13, 2020 22:51
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It's important to distinguish whether your 457b is qualified or non-qualified. If you work for the government, it is likely (or always? Not certain) a qualified plan. If you do not work for the government, it is always a non-qualified plan. If it is a qualified plan, that's great, put your money into it - it's yours, it's safe (with the caveat of course that if the investment options are terrible then you definitely should weigh that in the balance). If it is non-qualified then the money is not yours, it still belongs to your employer and in the case of bankruptcy or similar, you are merely a creditor with an unsecured debt. The terms of how you can get the money on severance from the company may also be wonky - you may be required to take a lump-sum distribution immediately on exit, which could be bad tax-wise. I had access to a non-qualified 457b account with a previous employer and did not use it, for these reasons, even though the provider was Fidelity and the fund options were excellent.
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Jan 13, 2020 23:05
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Space Gopher posted:Vanguard direct deposit only allows you to land the incoming money into a settlement fund (which is basically always money market). You can't go directly from DD to a buy order for a specific mutual fund or ETF.
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Jan 14, 2020 00:13
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Ralith posted:You're mistaken. I've been direct depositing right into VTSAX for years. I've been told by Vanguard support that it's not possible to do a checking account direct deposit (pushed externally) directly to a mutual fund in a taxable brokerage account. Their recommendation was to set up an automatic investment as a sweep. The Vanguard website only gives settlement fund options for direct deposit. This Bogleheads thread is full of people with the same issue, so I doubt it's just a mistake between myself and the support rep. Do you have one of the old style non-brokerage mutual fund accounts?
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Jan 14, 2020 00:48
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Space Gopher posted:I've been told by Vanguard support that it's not possible to do a checking account direct deposit (pushed externally) directly to a mutual fund in a taxable brokerage account. Their recommendation was to set up an automatic investment as a sweep. The Vanguard website only gives settlement fund options for direct deposit. This Bogleheads thread is full of people with the same issue, so I doubt it's just a mistake between myself and the support rep. That might be it. Good thing I never upgraded!
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Jan 14, 2020 01:16
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So I have a situation that's annoyingly complicated and I've been meaning to deal with it for like a year now but hey new year so might as well deal with it now, and this seems like the right thread: My wife and I started investing around 2012 and put most of our income away over several years (in our case, literally unable to spend the money due to being out of country all the time). Since I didn't know a lot about investing we just kinda threw it into a variety of USAA mutual funds. Over the past few years I've only put money into Vanguard funds going forward, but that leaves me with two issues: one, I should be doing this stuff through a Vanguard account so I don't get hit with a couple hundred dollars in fees every year; and two, we have multiple years' worth of savings in funds with ERs around 1%. I don't like the high costs and some of the funds are way too focused, so I'd prefer if I could just turn it into a simple three-fund portfolio style setup. I've been trying to work out the best order of operations to deal with those issues so I don't accidentally create a huge tax liability (at least not without fully understanding it). I've been thinking about the following plan to rebalance my portfolio but really wanted a reality check before making big changes. Basically, since we have several years worth of income saved but both have decent paying jobs now, it seems to make sense to time this for a period where we intentionally have a low income: 1. Transfer our IRAs and brokerage accounts from USAA to Vanguard now (shouldn't have to sell anything, therefore no capital gains tax) 2. Wait a year or two until one or both of us is in school on the GI bill (the benefits are not taxable so our taxable income would be below the limit for 0% capital gains) 3. Sell off the high expense ratio USAA funds and purchase Vanguard funds - theoretically paying 0% capital gains on all of it if it's long-term (state taxes aside), and no more fees to buy VTSAX. Does that work out correctly? The one caveat I think I can see is that it looks like we would have to limit the total income + capital gains below the limit for 0% capital gains, as it appears that capital gains count as income for the purpose of determining the capital gains bracket - so if we made $40,000 taxable income we should avoid capital gains over $40,000 that year if that is the case, which may mean staggering it over multiple years. If I'm way off base then I'd at least like to know so I can plan for taxes, or just not do it and eat the expense ratios, but I am very dumb about this stuff.
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Jan 14, 2020 03:54
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H110Hawk posted:If they have two kids it's cheaper to own and resell than rent. I'm not going to let some salesman scam me into buying back the baby I just sold them! Wait. Is there a way to roll negative equity from your current kid into the next acquisition?
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Jan 14, 2020 06:08
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SpelledBackwards posted:I'm not going to let some salesman scam me into buying back the baby I just sold them! Wait. Is there a way to roll negative equity from your current kid into the next acquisition? Sleep deprivation is nature's negative equity. It just compounds forever.
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Jan 14, 2020 07:02
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Is depositing my entire paycheck in to vanguard some one weird trick I should be doing?
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Jan 14, 2020 11:59
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Edward Jones hates him!
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Jan 14, 2020 12:32
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pig slut lisa posted:I am a fellow 457(b) haver, and while I max out both my IRA and my 457(b), I would prioritize the 457(b) if my total retirement savings for the year were going to be less than $19,500. The fees seem pretty decent in mine. Right now I have the following allocations: 10% Vanguard Total International Stock VTPSX with a .07% fee 20% Vanguard Balanced Index I VBINX .18% fee 70% Vanguard Institutional Index Instl VIIX .02% fee They do have some target date funds, they arent Vanguard, but the expense rate is .1%. Kylaer posted:It's important to distinguish whether your 457b is qualified or non-qualified. If you work for the government, it is likely (or always? Not certain) a qualified plan. If you do not work for the government, it is always a non-qualified plan. If it is a qualified plan, that's great, put your money into it - it's yours, it's safe (with the caveat of course that if the investment options are terrible then you definitely should weigh that in the balance). Its a qualified plan. Thanks for all of the advice. I'll forgo the IRA and just try to do a better job funding my 457b. Hopefully one day I will be in a position where I can hit the yearly max. That seems like a long ways off though.
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Jan 14, 2020 14:27
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So after finding out I might be a carrier for a gene that increases cancer risk, I've thought about buying a life insurance policy that isn't through my workplace so I can at least not get denied policies if I do indeed test positive for the gene. In the past I've heard people talk about life insurance as some kind of financial instrument, as opposed to "pay us $X00 per year every year, and when you die, your beneficiaries get $Y00,000 assuming you didn't die to terrorists, suicide, or LARPing Grand Theft Auto". Is there a Four Pillars pamphlet style guide to what the heck life insurance financial planning looks like? Or should I not even be considering such an esoteric option if I'm already maxing and exceeding 401k since I'm income-ineligible for IRA breaks?
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Jan 14, 2020 14:40
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Rob Rockley posted:So I have a situation that's annoyingly complicated and I've been meaning to deal with it for like a year now but hey new year so might as well deal with it now, and this seems like the right thread:
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Jan 14, 2020 14:57
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MJP posted:life insurance as some kind of financial instrument I believe you're talking about Whole Life, and it's a Very Bad Thing for 95% of people. Basically you pay them a boatload of money for "insurance" and they invest a portion of it (after taking a massive cut in fees/commissions). The returns are generally pretty bad, at least compared to the market in general. The insurance portion is a "guaranteed minimum" payout that is gradually replaced by your investment. Basically if you die, the payout is the larger of the 1) policy value or 2) the investment value. They are not additive. Effectively, you are self-funding your insurance policy with an investment that doesn't make a lot of money, and the risk for them is that you die before the investment exceeds the policy value. In practice, Whole Life policies are massive money makers for the There are tax reasons to do this, but it's not generally beneficial unless you're passing on a lot of money after you die and you've maxed out all your other tax advantaged space. Your best bet in most cases is to get a Term Life policy to cover you for as long as you need it (until kids are grown up and your mortgage/debts are paid off), and then invest the remainder (max out tax advantaged retirement space, then if there's leftovers put it in a post-tax account).
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Jan 14, 2020 15:14
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MJP posted:So after finding out I might be a carrier for a gene that increases cancer risk, I've thought about buying a life insurance policy that isn't through my workplace so I can at least not get denied policies if I do indeed test positive for the gene. Go check out the insurance thread in I think a/t. Last few posts are what you want. It's nearly dead otherwise. Like you will be if your insurance pays out.
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Jan 14, 2020 15:21
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What would you guys prioritize with extra money, taxable account or changing traditional 403b contributions to Roth? Even if I change completely to Roth 403b, my marginal tax rate would hold steady at about 17%.
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Jan 14, 2020 15:26
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Sundae posted:We had a baby registry and filled it with useful things like swaddles, onesies, burp cloth, an option for hand-me-down clothing, etc etc. The #1 complaint I heard from relatives and friends was "oh but it's no fun buying you that stuff! We want to give something special!" I basically told everyone that if they get something not on the registry, make sure you give us the gift receipt too because we're almost certainly going to return it. It's not on the registry because we don't loving want it. Man, we explicitly did not put things like onesies on our registry because we knew we'd have too much newborn stuff and outgrow it in a blink. And we did. The give you something special crowd asked if they could give us a rocking chair though, which was fantastic (and a 529)
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Jan 14, 2020 15:37
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MJP posted:So after finding out I might be a carrier for a gene that increases cancer risk, I've thought about buying a life insurance policy that isn't through my workplace so I can at least not get denied policies if I do indeed test positive for the gene.
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Jan 14, 2020 16:25
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This summer I am moving from PA to OR. Both states allow state tax deductions from contributions (up to a limit ofc) to their own state's 529 plan. I assume I'll be filling state taxes in two states this year. Assuming I can contribute up to the caps, can I double dip on that deduction, i.e. contribute in PA and deduct PA's max from PA, move, contribute the max to OR's plan, and then deduct OR's max from OR too? e: to be more clear, let's say PA deduction limit is 2k and OR's is 3k. I contribute 2k to the PA 529. I move and contribute 3k to a new Oregon 529 plan. Can I deduct 2k from my PA state tax and 3k from my OR state tax for the same year? alnilam fucked around with this message at 16:52 on Jan 14, 2020 |
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Jan 14, 2020 16:49
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MJP posted:"pay us $X00 per year every year, and when you die, your beneficiaries get $Y00,000 assuming you didn't die to terrorists, suicide, or LARPing Grand Theft Auto". "Fun" fact: many (most?) life insurance policies pay out for suicide from two years after the policy starts
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Jan 14, 2020 17:06
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spf3million posted:Are all of these funds in a taxable account? Or and IRA? The vast majority of it is in our taxable accounts, which is why it's a concern for us - changing funds around would trigger capital gains tax for most of our money.
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Jan 14, 2020 17:48
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pig slut lisa posted:"Fun" fact: many (most?) life insurance policies pay out for suicide from two years after the policy starts Sad with money.
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Jan 14, 2020 18:09
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pig slut lisa posted:"Fun" fact: many (most?) life insurance policies pay out for suicide from two years after the policy starts
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Jan 14, 2020 18:15
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moana posted:Wait, really?
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Jan 14, 2020 18:18
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People are so bad at planning.
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Jan 14, 2020 18:24
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https://forums.somethingawful.com/showthread.php?threadid=3488763&pagenumber=57#lastpost Yeah I think they almost-all cover suicide after 2 years.
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Jan 14, 2020 18:34
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Residency Evil posted:Is depositing my entire paycheck in to vanguard some one weird trick I should be doing? Probably not. A lot of direct deposit providers let you split things out, though - so you can say "put $X/paycheck into Vanguard and the remainder in my bank account." Not ever seeing the cash that's destined for longer term savings go through your spending-money account can be good for psychological reasons.
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Jan 14, 2020 18:38
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Hoodwinker posted:Yes. I guess the actuarial tables say that if you can make it two years without killing yourself, you probably won't. I think it's more "two year exclusion is enough to prevent the moral hazard of signing up for insurance while actually planning to kill yourself".
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Jan 14, 2020 19:44
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