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I feel like TD funds fit somewhere in that spectrum too but I'm not sure what they replace, I definitely fall into the box of knowing enough about investing that I could reconstruct a TD fund from ETFs or mutuals and fine tune it to my risk profile, but I'm too lazy do so and/or it's better for my mental health if I don't have anything to entice me to check my investments very often
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Jul 5, 2020 20:05
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What's the long-term thread opinion on ESPPs? I finally became eligible for mine, the current offering period started on the 1st and closes on 9/30. I can contribute up to 10%, they have a lookback to buy at the lowest price at any point during the purchase window, and it's at a 15% discount. It seems like a no-brainer to contribute the maximum percentage I can since I'm already hurling my long-term money into my 401k after maxing IRAs. My current job is a really stable place, so I'm not concerned too much about long-term loss and might just sell directly depending on what the lookback price options are.
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Jul 6, 2020 16:06
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MJP posted:What's the long-term thread opinion on ESPPs? I finally became eligible for mine, the current offering period started on the 1st and closes on 9/30. I can contribute up to 10%, they have a lookback to buy at the lowest price at any point during the purchase window, and it's at a 15% discount. I think the consensus is to enroll the maximum dollar amount that you can and sell the stock on the day that it is given to you. It's a guaranteed 15% return on the money put aside with essentially no risk.
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Jul 6, 2020 16:12
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MJP posted:What's the long-term thread opinion on ESPPs? I finally became eligible for mine, the current offering period started on the 1st and closes on 9/30. I can contribute up to 10%, they have a lookback to buy at the lowest price at any point during the purchase window, and it's at a 15% discount.
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Jul 6, 2020 16:19
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Espp is a great bargain, do it! Max it out!
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Jul 6, 2020 16:28
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Note that the 15% discount will probably be more like 6-7% after taxes and commission, and the stock market this year can make a lot of that 6-7% also disappear if you sell on the wrong day. It's a good way to teach yourself how to accurately time the market though.
withak fucked around with this message at 16:31 on Jul 6, 2020 |
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Jul 6, 2020 16:28
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With many (most?) ESPPs that give you the lower price of the start of purchase window / end of purchase window it’s free money as long as you sell immediately. (I guess there’s probably a day or two of risk if you can’t sell the same day it closes, to be pedantic). Yes, transaction costs will eat into that 15%. Yes, you won’t get LTCG treatment. Yes, opportunity cost. But ignoring all that you’re still getting some guaranteed free money.
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Jul 6, 2020 18:27
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My plan makes the buy on the 1st of the month after the period closes, but it doesn't show up in my account to sell until mid-month.
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Jul 6, 2020 18:38
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And good plans give you 2 years of lookback. So if you stock is $20, and 2 years later it's at $30, that is $10 in free upside on top of the discount just for playing the game. For companies which explode that change is...astronomical. Buying shares worth $250 for $50/share was uh, nice for the ole pocket book. BAML at least removed commissions for us, making the transaction cost to sell only a buck or so in whatever fees they pass through.
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Jul 6, 2020 19:07
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I just wanted to check in with this thread and say that since I’ve been saving so much I decided to treat myself and I put in a deposit on a Tesla Model 3 on Friday!! And then I canceled it Sunday night because WTF I can’t afford a $55k car my loving 8 year old Mazda it’s perfectly fine and it is paid off. Jesus that was a close one gently caress.
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Jul 6, 2020 23:22
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dexter6 posted:I just wanted to check in with this thread and say that since I’ve been saving so much I decided to treat myself and I put in a deposit on a Tesla Model 3 on Friday!! you kick rear end, way to go
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Jul 7, 2020 01:00
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dexter6 posted:I just wanted to check in with this thread and say that since I’ve been saving so much I decided to treat myself and I put in a deposit on a Tesla Model 3 on Friday!! Way to dodge a bullet there, a comparably priced mazda/bmw roadster is the obvious answer, not some barely painted trash heap.
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Jul 7, 2020 01:15
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But I thought Miata Is Always The Answer
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Jul 7, 2020 01:50
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dexter6 posted:I just wanted to check in with this thread and say that since I’ve been saving so much I decided to treat myself and I put in a deposit on a Tesla Model 3 on Friday!! good job
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Jul 7, 2020 02:04
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After long being a proponent of, 'determine your risk tolerance and set your target' I've decided that I am not as risk tolerant as I thought and have just significantly rebalanced my retirement portfolio to a less exposed position. I suppose in risk terms I am more willing to accept the risk of reduced performance over the next year or two than I am to watch the capital depreciation that occurred earlier this year happen again but for a dramatically prolonged period. Yes, there is some implicit timing the market in there but there is so much uncertainty in the July 1st fed report that I don't want to be exposed to. quote:JULY 1 2020: FEDERAL RESERVE RELEASES MINUTES FROM JUNE 9-10 POLICY MEETING Murgos fucked around with this message at 17:28 on Jul 7, 2020 |
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Jul 7, 2020 14:45
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I just signed up for Personal Capital as a way to keep track of all of our retirement accounts/savings accounts/net worth. They want to set up a phone call. Presumably this is to sell me on their management/advisor stuff?
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Jul 7, 2020 15:59
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Residency Evil posted:I just signed up for Personal Capital as a way to keep track of all of our retirement accounts/savings accounts/net worth. They want to set up a phone call. Presumably this is to sell me on their management/advisor stuff?
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Jul 7, 2020 16:06
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What does Personal Capital do that Mint doesn't? I currently have our retirement accounts in Mint and it more or less just tracks the balances.
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Jul 7, 2020 17:39
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incogneato posted:What does Personal Capital do that Mint doesn't? I currently have our retirement accounts in Mint and it more or less just tracks the balances. Personal Capital is a better investment tracking tool, because it'll do things like evaluate your specific investments and give you an allocation breakdown. They also start selling you on robo-adviser services once you hit a six figure balance. It has budgeting features, but they're not particularly good, even compared to Mint.
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Jul 7, 2020 17:44
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Personal Capital's UI is pretty dang good, but I only use it to track expenses since those are under my direct control. I don't hook up my brokerage/retirement accounts since it's not a good idea to be looking at your net worth fluctuate with the market everyday anyways. An added benefit is that PC doesn't seem to care too much about me (although they have tried to get in touch with an advisor once).
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Jul 7, 2020 17:53
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drainpipe posted:Personal Capital's UI is pretty dang good, but I only use it to track expenses since those are under my direct control. I don't hook up my brokerage/retirement accounts since it's not a good idea to be looking at your net worth fluctuate with the market everyday anyways. An added benefit is that PC doesn't seem to care too much about me (although they have tried to get in touch with an advisor once). I think you are using the wrong tool for the job, Mint/Personal Capital is meant for overall net worth, something like YNAB is far better for direct expenses under your control. These aren't exclusive by the way, I use both of them every day.
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Jul 7, 2020 18:26
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Yeah you may be right, although I don't really need the full power of YNAB, as I don't really "budget". My basal spending rate is naturally low so it's not something I stress about. Connecting my credit cards to PC and letting it split my spending into categories and produce graphs is enough for me to keep an eye on my spending and look for areas to possibly work on.
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Jul 7, 2020 18:45
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Residency Evil posted:I just signed up for Personal Capital as a way to keep track of all of our retirement accounts/savings accounts/net worth. They want to set up a phone call. Presumably this is to sell me on their management/advisor stuff? I have never answered the call or called them back. They try every 3-4 months.
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Jul 7, 2020 19:15
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spwrozek posted:I have never answered the call or called them back. They try every 3-4 months.
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Jul 7, 2020 19:57
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Mint is really good at tracking what you’ve spent, but not good at tracking your investments and allocation. Mint is also owned by Intuit which I loving hate as a company so I don’t use them for that reason. Personal Capital also tracks what you spent, but their visualizations and data on your investments across all accounts is really stellar for me. However, they will try to sell you on their advisory services one time, after you sign up.
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Jul 7, 2020 19:59
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But if I hooked it up to Personal Capital or Mint I might find out why my Amazon store card bill was $1800 last month and  .
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Jul 7, 2020 20:02
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I like to watch my net worth swing wildly and congratulate myself for being a hard man and staying the course.
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Jul 7, 2020 20:19
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dexter6 posted:I’ve found if you send them a message through the app to not call you, or take one call and tell them you’re not interested, they will honor that request. Yeah that is what I hear. Google always just screens the call so it doesn't even show up and then weeks later I realize I have a voicemail. dexter6 posted:Personal Capital also tracks what you spent, but their visualizations and data on your investments across all accounts is really stellar for me. This is the best thing. especially when you have a bunch of accounts. spwrozek fucked around with this message at 21:00 on Jul 7, 2020 |
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Jul 7, 2020 20:57
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Okay, so my partner has an annuity that was sold to him years ago by a man who's now in jail, and the annual fee is about to come out of it again so we want to move on this quickly. It's got a current valuation of about $19k and he doesn't have an immediate use for the money. I know that if he cashes out the entire amount will be counted as income for 2020, but he's got enough deductions to cover it. At minimum we're going to stick it in a high yield savings account where it will make money for him and not the annuity people, but would it make any sense at all to backdoor it into a Roth IRA and put it all in VTSAX or something? He has no IRAs and no investments in the stock market due to residual pain from the dotcom bust. He's already retired and his current investments are providing more than enough income. Ultimately this just boils down to: What to do with a windfall of $19k?
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Jul 7, 2020 23:15
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When I rollover a older 401k from my previous job, I do that through my NEW 401k, right?
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Jul 7, 2020 23:45
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SA Forums Poster posted:When I rollover a older 401k from my previous job, I do that through my NEW 401k, right? That entirely depends on the new job's 401(k). If their choices aren't great you can roll is over into an IRA. Preferably at Vanguard.
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Jul 7, 2020 23:48
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Ok so I'm self-employed, don't make a whole lot of money, and am about to be debt free for the first time in my adult life pretty soon and I want to start looking at dipping my toe into some form of investing so that I can maybe pretend I'll get to retire some day. I've got zero experience with investing of any kind and I pretty much just want a bit of "do this, idiot" advice for my current situation. Self-employed means no free money from employer-matched contributions, so am I better off just dumping all of the money I can spare into a Roth IRA and not thinking any harder about all of this, or is there a better option? The only other advice I've really heard is to just park it in an index fund or ETF, but I dunno which of these options is ideal for a relatively young dude with a small investing budget and a moderate tolerance for risk. My lawyer uncle keeps saying the markets are all going to be dead for a decade and I should just buy gold but I'm gonna assume that's probably not the best advice. I've also got 2k in an emergency fund that I plan on shoring up a bit, but right now it's just sitting in my regular ol' savings account and I'm not sure if I should be trying to open up a high-yield savings account to stick it in or what.
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Jul 8, 2020 00:45
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Grizzled Patriarch posted:Ok so I'm self-employed, don't make a whole lot of money, and am about to be debt free for the first time in my adult life pretty soon and I want to start looking at dipping my toe into some form of investing so that I can maybe pretend I'll get to retire some day. I've got zero experience with investing of any kind and I pretty much just want a bit of "do this, idiot" advice for my current situation. When you want to invest more than your Roth IRA lets you, open a SEP or SIMPLE IRA, or a solo 401k. Please don't take investment advice from relatives, even if they are rich. Especially if they are rich. Rich people think they are smarter than they are, and often get suckered in by lousy investment schemes. Ally (bank) and Alliant (credit union) are good online options that have high-yield savings and they are easy to open. I personally use Alliant because I prefer credit unions. Both are federally insured. Congratulations on getting rid of your debt! That must feel fantastic  edit: do make sure you shore up that emergency fund or have another backup plan in case poo poo hits the fan. Investing is great and all, but you want a decent efund first.
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Jul 8, 2020 00:55
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SA Forums Poster posted:When I rollover a older 401k from my previous job, I do that through my NEW 401k, right? If you mean “logistically, how do I do this?”, it could go one of two ways. You could call your current 401k, they’ll give you instructions, then you call your past 401k with those instructions and make it happen. It could also go, that you call your 401k and they do all the work for you. Sometimes you get mailed a check that you need to send onward. If you mean “should I roll my previous 401k into my new one?”, then you also have two options. Option 1: you roll it into your new one. Pro: You leave your traditional 401k at $0 balance so that you have the option of doing a Back Door Roth contribution later on, if your income is high enough. Con: you are limited to investment options of your new 401k, which, depending on your employer, could be poo poo with high expenses ratios. Option 2: You roll it over to a Tradition IRA Pro: you can choose a good institution, like vanguard, and choose from all of their great, low cost index funds and target date funds Con: Your ability to do a Backdoor Roth contribution if you are high income gets complicated, since your Tradition IRA isn’t $0.
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Jul 8, 2020 01:27
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Note that leaving a former employer 401k account empty is not necessarily an option. Some 401k plans have a required minimum balance for former employees.
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Jul 8, 2020 06:36
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Ally Bank is officially back to the savings rate when I started with them (which was about 2012) of 1%. Not a surprise with the interest rates right now, but official RIP to that 2% savings rate. I wondered for the last few years why they offered CDs at the same 2% rate that their savings account was, and I guess the answer is you locked it in for longer ? Not that I would go back and do that if I had a choice, it’s my emergency fund, so I’m not worried on the interest rate as long as “it’s decent for what’s currently out there.”
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Jul 8, 2020 12:29
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Tricky Ed posted:Okay, so my partner has an annuity that was sold to him years ago by a man who's now in jail, and the annual fee is about to come out of it again so we want to move on this quickly. It's got a current valuation of about $19k and he doesn't have an immediate use for the money. I know that if he cashes out the entire amount will be counted as income for 2020, but he's got enough deductions to cover it. Some good points have already been made on this, but I'll add that you can only contribute $6,000/year to an IRA ($7,000 if you're old), so it would not be possible to put the entire $19K in an IRA in one year. Also, if your partner is retired and of retirement age (technically 70.5), they will have to take RMDs almost immediately - not a reason to not do it, but you'll end up having to take the money back in cash, and it won't be able to grow all that significantly. But if your partner has retired early, I think it's probably a good idea. In general the answer to "what to do with a windfall of X" should start with your goals/your partner's goals. It's tough to answer the question otherwise. moana posted:edit: do make sure you shore up that emergency fund or have another backup plan in case poo poo hits the fan. Investing is great and all, but you want a decent efund first. you especially want a very decent efund if you are self employed!
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Jul 8, 2020 13:15
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dexter6 posted:I just wanted to check in with this thread and say that since I’ve been saving so much I decided to treat myself and I put in a deposit on a Tesla Model 3 on Friday!! This is the exact mentality I’ve taken with my 10 year old civic and it’s still going strong motherfucker, I’m not spending money on a new car when I can just stick with my old one. (Maybe it needs repairs and stuff tho.)
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Jul 8, 2020 13:49
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KYOON GRIFFEY JR posted:Also, if your partner is retired and of retirement age (technically 70.5), they will have to take RMDs almost immediately - not a reason to not do it, but you'll end up having to take the money back in cash, and it won't be able to grow all that significantly. Roth IRAs (which OP was talking about) don't have RMDs.
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Jul 8, 2020 14:32
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Duckman2008 posted:Ally Bank is officially back to the savings rate when I started with them (which was about 2012) of 1%. Not too surprising as you said. I see the 1 year Treasury is at 0.16% so still better than that. Plus the money in your savings is for emergencies. Sure I would love interest on it but ultimately it is not about making money. I have some money saved for my mom in a CD right now and I locked that in for a year with Ally in January at 2.05% so that is cool. I am guessing I will do something different with it next year but we will see.
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Jul 8, 2020 14:50
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