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I don't think Robinhood is a fundamentally trustworthy company so I would be very unsurprised to see that they can change terms at will and that they will do so.
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Mar 29, 2024 14:31
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pmchem posted:check out hood's q4 earnings slides: This is the sort of revenue source that is going to fluctuate wildly from quarter to quarter. I would expect short activity to be rather low when the market is going up like Q4 of last year. During downturns they probably make a whole lot more from it. Honestly their recent offerings feel like blitz scaling to me. I somewhat doubt that its going to be sustainable. Antillie fucked around with this message at 14:45 on Mar 29, 2024 |
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Mar 29, 2024 14:42
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Boris Galerkin posted:I finally got around to transferring money from my lovely employer sponsored HSA into a Fidelity HSA. I was going to invest it all into the S&P 500. Is there any reason not to go with FNILX? Portfolio Visualizer shows it's basically equal to VOO, so all else being equal 0% ER sounds better than 0.03% or whatever. I don't foresee needing to transfer HSA custodians unless Fidelity goes to poo poo for some reason. Ok so the amount I had transferred in was $1000 in cash as a test run to make sure the deposit went smoothly. It transferred in via a mailed check and I probably let it sit in my Fidelity HSA for about a day or two. Purchased $1000 of FNILX and I just noticed my position looks like this:  FDRXX is the core position. According to the activity, it said I got $0.14 in dividends on 3/28, and then on 4/1 (hello from the future?) it auto reinvested $0.41 into FDRXX.  0.14 - 0.41 = -0.27 Can someone explain what's going on here? Are these automatic reinvestments keyed in by hand? Someone typed in 0.41 instead of 0.14? Do I need to do anything about having -0.27 shares of FDRXX? I'm so confused. E: check was deposited 3/26, I purchased FNILX on 3/27. This account sat at $0.00 until 3/26. Boris Galerkin fucked around with this message at 15:15 on Mar 29, 2024 |
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Mar 29, 2024 15:00
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Antillie posted:This is the sort of revenue source that is going to fluctuate wildly from quarter to quarter. I would expect short activity to be rather low when the market is going up like Q4 of last year. During downturns they probably make a whole lot more from it.
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Mar 29, 2024 15:13
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KYOON GRIFFEY JR posted:I don't think Robinhood is a fundamentally trustworthy company
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Mar 29, 2024 15:29
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pmchem posted:check out hood's latest So I looked through this for the most important number: ARPU, which is $80. And of course their average profit per user is negative. So, there is no way these generous matches and CC rewards can last. Even if Robinhood could magically operate at no cost, they still only have revenue of $80 per user per year. If they arent already planning on slashing or eliminating these incentive programs, they'll be forced to soon enough. edit: or move all the benefits to Robinhood Platinum with a $695 annual fee drk fucked around with this message at 15:40 on Mar 29, 2024 |
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Mar 29, 2024 15:33
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Antillie posted:They lend out your securities to short sellers by default and keep 90% of the profit from doing so. No other brokerage does this. This isn't necessarily terrible but its risk not everyone wants to take. You can do securities lending at places like Fidelity and capture a larger share of the gains if that's something you want to do. That’s weird what I was taught was almost all brokerages have the right to lend your shares to short sellers buried in their t&c.
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Mar 29, 2024 18:47
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Boris Galerkin posted:I posted in the CC thread about this but in Robinhood's announcement page for the gold card they also mentioned that starting in May they will offer an uncapped 1% bonus on deposits. There's no other info on this other than that the bonus will be paid out over 24 months and that you forfeit the remainder of the bonus if you cancel gold. I don’t care what their returns, free money, etc is, I would never trust robinhood with my cash, retirement or credit.
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Mar 29, 2024 18:59
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I have to imagine it'll be like that HYSA people were flocking to a year or two back: promise high returns on deposits then walk it back after enough people have joined/switched.
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Mar 29, 2024 19:05
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Antillie posted:They lend out your securities to short sellers by default and keep 90% of the profit from doing so. No other brokerage does this. This isn't necessarily terrible but its risk not everyone wants to take. You can do securities lending at places like Fidelity and capture a larger share of the gains if that's something you want to do. Digging around myself it looks like stock lending can only be enabled if account value is over $5000, so for people keeping under that amount in their RH brokerage that won't be an issue. Also it looks pretty simple to disable stock lending by account if you do go over, just a couple clicks. But it's a good detail to know for people who are considering moving larger amounts of money into their RH brokerage to take advantage of the 1% bonus they're offering on deposits starting in May. I think I'm going to bite on the Robinhood 3% match offer for IRAs. I was already planning to keep my taxable at Fido, but this info reinforces that decision.
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Mar 29, 2024 20:38
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Residency Evil posted:I have to imagine it'll be like that HYSA people were flocking to a year or two back: promise high returns on deposits then walk it back after enough people have joined/switched. Yeah I'm sure the 1% deposit bonus and 3% cash back card will go through some adjustments before long, but the 3% IRA match is already a temporary offer and I don't think they can go back on that one.
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Mar 29, 2024 20:45
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Residency Evil posted:I have to imagine it'll be like that HYSA people were flocking to a year or two back: promise high returns on deposits then walk it back after enough people have joined/switched. at least at that HYSA you didn't have to stick around for years to get the benefit.
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Mar 29, 2024 20:59
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Do international funds ever outperform US funds? Why is it so important I maintain 20-30% international in my accounts? For reference, I'm in: FSGGX, VTIAX, VGTSX
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Mar 30, 2024 04:16
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runawayturtles posted:Yeah I'm sure the 1% deposit bonus and 3% cash back card will go through some adjustments before long, but the 3% IRA match is already a temporary offer and I don't think they can go back on that one. I’m sure the matches will be reduced and their goal is to get you to switch then cut it.
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Mar 30, 2024 04:30
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zaurg posted:Do international funds ever outperform US funds? 
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Mar 30, 2024 04:30
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pseudanonymous posted:I’m sure the matches will be reduced and their goal is to get you to switch then cut it.
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Mar 30, 2024 04:43
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Ive inheritted some IRAs that are managed by Raymond James. Can i just leave them be or do i need to distribute at a certain point? I have another inheritted retirement account i have to distribute. Should i talk to a cpa or someone specific about whats the best way to do it?
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Mar 31, 2024 18:59
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ZombieCrew posted:Ive inheritted some IRAs that are managed by Raymond James. Can i just leave them be or do i need to distribute at a certain point? I have another inheritted retirement account i have to distribute. Should i talk to a cpa or someone specific about whats the best way to do it? Sorry for your loss. SECURE Act 2.0 changed things related to taking Required Minimum Distributions for inherited IRAs. If you're a non-spouse beneficiary you generally have 10 years to deplete the account. However, there are some some special circumstances which could allow you to take life-expectancy distributions. Some light reading here - https://www.schwab.com/learn/story/...e%2Dyear%20rule Probably best to talk to a tax accountant to explore your options. Make sure to find out if the IRAs are Roth or Traditional or some mix, as that will help determine tax implications when you take a distribution. I'm not familiar with Raymond James, but if the portfolio(s) or fund options aren't to your liking (try to avoid high expense ratios) you could always move the money elsewhere. Vanguard, Fidelity, and Schwab are generally recommended by this thread. jfff fucked around with this message at 19:40 on Mar 31, 2024 |
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Mar 31, 2024 19:30
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This may fit more in the income tax thread, but I recall SPAXX coming up here before in terms of state tax treatment. I'm filing with Turbotax and it asks me to "Enter the amount of dividends reported on this 1099-DIV that represents interest from U.S. Government obligations." Is it correct that I can look up the percentage here: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/TY23-GSE-Supplemental-Letter.pdf SPAXX falls under "Fidelity® Government Money Market Fund - All Classes* Various 41.18%" And therefore I can enter 41.18% of my 2023 SPAXX dividends to answer that question?
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Apr 2, 2024 01:43
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caluki posted:This may fit more in the income tax thread, but I recall SPAXX coming up here before in terms of state tax treatment. I'm filing with Turbotax and it asks me to "Enter the amount of dividends reported on this 1099-DIV that represents interest from U.S. Government obligations." Probably, but depends on the rules of your specific state. For example, in CA and NY the fund has to have 50% or more, otherwise it doesn't count.
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Apr 2, 2024 04:38
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runawayturtles posted:Probably, but depends on the rules of your specific state. For example, in CA and NY the fund has to have 50% or more, otherwise it doesn't count. TurboTax should handle that correctly, though. Just enter the number that you found.
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Apr 2, 2024 13:03
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So I'm getting an inheritance and I want to figure out what to do with it. Kicker is I'm a US citizen and I live abroad so right now the money is in a swedish bank account. Should I try to invest that money in the US? I tried looking into some high interest savings accounts at least but the whole living abroad thing has acted like a hard barrier. Thing is I am probably moving in a few years and who knows where I'll end up so I'd rather it be something I can manage without having to physically visit branches or whatever. Any advice?
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Apr 2, 2024 23:59
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Do we know/have a good idea on the ibond fixed and variable rate starting in May? I’m trying to advise my mother to either buy now or wait.
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Apr 3, 2024 02:07
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Valicious posted:Do we know/have a good idea on the ibond fixed and variable rate starting in May? I’m trying to advise my mother to either buy now or wait. The variable rate will be fully known in a couple weeks. Its mostly known now, and will almost certainly be lower than the last variable rate. Haven't seen any speculation on the fixed rate yet. TIPS yields are slightly down vs 6 months ago, but only a little.
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Apr 3, 2024 02:26
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Valicious posted:Do we know/have a good idea on the ibond fixed and variable rate starting in May? I’m trying to advise my mother to either buy now or wait. TIPSWatch is predicting either 1.3% or a drop to 1.2% for the fixed rate. Combined with the variable rate almost certainly dropping I'd suggest buying now, but there's no way to know for sure, and my past history of I-bond buying hasn't always been the best decisionmaking in hindsight.
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Apr 3, 2024 05:05
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https://www.etf.com/sections/news/fidelity-adds-surcharge-etf-platform Excerpts: "Fidelity Investments is introducing a $100 surcharge for buying non-Fidelity ETFs on its platform and the majority of ETF issuers have agreed to absorb the cost. Adding the fees illustrates an increasing challenge in the ETF industry: how to generate revenue as competition among firms pushes expense ratios lower. Fidelity said the fees will be used to improve its investing platform. ETF issuers appeared unhappy with the fees, and resigned to paying them at the same time. “If we agree to the charge, it costs us $100 every time someone buys one of our ETFs, or we could not agree to pay and maybe lose an investor,” Markiewicz said. “We’re dammed if we do, and dammed if we don’t.” " Toil and trouble, something's brewing in the service fees space and it'll probably only get worse. Considering how many retail investors buy in and out of sector ETFs, the surcharges will quickly add up to a consequential chunk of change.
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Apr 3, 2024 05:54
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Space Fish posted:https://www.etf.com/sections/news/fidelity-adds-surcharge-etf-platform This only applies to 59 ETFs from 9 obscure companies I've never heard of: Simplify Asset Management, AXS Investments, Day Hagan Asset Management, Sterling Capital, Cambiar Investors, Regents Park Funds, Rayliant Funds, Adaptive ETFs and Running Oak Capital
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Apr 3, 2024 06:16
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drk posted:This only applies to 59 ETFs from 9 obscure companies I've never heard of: Simplify Asset Management, AXS Investments, Day Hagan Asset Management, Sterling Capital, Cambiar Investors, Regents Park Funds, Rayliant Funds, Adaptive ETFs and Running Oak Capital Not sure I agree. As I read it they are charging everyone - it's just these nine who haven't agreed to pay it and so Fidelity may charge customers directly.
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Apr 3, 2024 11:22
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That is a suspicious article to publish on April 1st, but it's actually real:Fidelity's fee schedule posted:Certain ETF sponsors pay an asset-based fee in support of their ETFs on Fidelity’s I wonder how they will handle active trading in those ETFs
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Apr 3, 2024 14:30
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Will I be charged a fee for VOO at Fidelity? That's a lot of words in the quotes I just need yes or no.
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Apr 3, 2024 15:24
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I bought VTI at Fidelity yesterday and didn't have a fee, as usual e: the article says the fees start in June. But it also says it'll only apply to ETFs from those 9 companies.
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Apr 3, 2024 15:34
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Boris Galerkin posted:Will I be charged a fee for VOO at Fidelity? That's a lot of words in the quotes I just need yes or no. No.
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Apr 3, 2024 16:13
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Just wanted to point out a new elder care thread. https://forums.somethingawful.com/showthread.php?threadid=4057760
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Apr 3, 2024 16:19
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Baddog posted:Just wanted to point out a new elder care thread. This is a great thread but also surprisingly relevant w/r/t LTI&R given how much time/money/effort is spent keeping the older generation going. Out of curiosity, are there are any current reasonable Long-Term Care Insurance options out there? I've heard of GE's ridiculous platinum plans from the late 90s/2000s that covered amazing amounts of monthly payments but when I checked a year or two ago everything was significantly capped/hobbled.
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Apr 3, 2024 16:46
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I suspect the best insurance you can have for potential long term care is a solid amount of retirement savings. Once you are in or near retirement, annuities are worth considering too if longevity is a concern. Also, people dont like to hear it, but the cheapest long term insurance you can get is eating a healthy diet, maintaining a healthy weight, and getting regular physical activity, all of which also pay dividends while you are investing in them.
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Apr 3, 2024 17:13
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drk posted:I suspect the best insurance you can have for potential long term care is a solid amount of retirement savings. Absolutely. My stepdad was a pipefitter, he had both a pension and a 401k, he had is own IRA and more money stashed with an investment company and also owned a house (albeit with a mortgage) in San Francisco. His budget was $100k/year for my mom's care and they moved to Colorado Springs to sell the SF house and get into a more tax-friendly state with lower costs to make that work. She passed away after less than 2 years, but just being able to budget $100k was essential to her getting to live at home instead of being stuck in a nursing home. And let me tell you, affordable nursing homes suck. Patients do much worse than at home. Memory care patients in particular have a very hard time with being surrounded by lots of other memory care patients, plus poor staff to patient ratios, plus the institutional environment. The "nice" places upgrade the facilities, so they have prettier grounds, better rec rooms, nicer patient rooms, and marginally better food... but you have to get into the "absurdly costly" range before you actually are getting enough staff to patients, staff who aren't massively stressed out and hate their lives, reasonable response times when a resident pushes the buzzer, etc. If you can save a couple million for retirement that would be ideal. If you can't, well, every penny you can save can translate into better in-home care, which is usually preferable. It's also a good idea to move into long-term care earlier rather than later, if you're going to, because you need to socialize and make friends while you're still capable of doing that. It's way better to have familiar faces and other residents who visit and spend time with you, then to be wheeled into a cafeteria full of strangers to eat with them every day and try to remember why you're in this unfamiliar place. A corollary to all of this is: try not to alienate your kids & grandkids, if you have them. Maybe don't be a grouchy racist right wing boomer old who nobody really wants to tolerate for more than two hours. Living with your kids is way better if that is possible, and respecting them and their boundaries and choices and being a helpful grandpa instead of a lousy roommate is your best shot at not being stuck in a home.
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Apr 3, 2024 17:58
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Sorry if this is the wrong thread, I have what feels like a pretty basic question about prioritization. My current understanding is that a Roth IRA is a good idea for me because I expect to make more in the future, so I'm contributing the max to that first. My employer doesn't match 401k contributions. Then I'm contributing $500/month to a pre-tax 401k, and $100/month to a Roth 401k. I have a feeling it doesn't make much sense to split it that way. I could also afford to allocate another $500/month to something instead of letting that accumulate in my checking account, which feels like a bit of a waste. So really 2 questions - 1. Should I be putting $600/mo into a Roth 401k since I expect my income to grow over time, or might there be valid reasons to keep splitting it or prioritize pre-tax? 2. Would it be smart to put whatever surplus I get beyond that into a new investment account to help save for some big pre-retirement expense like a house, or would people recommend putting it into 401k instead? Or if the answer is do both, how do people figure out what the right proportions for them are? first move tengen fucked around with this message at 05:18 on Apr 5, 2024 |
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Apr 5, 2024 02:55
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first move tengen posted:So really 2 questions - see flowcharts in OP. generally, max tax advantaged things first. but if you know you absolutely are gonna buy a house soon, that may mean you dump some money into a HYSA or short-term bonds for savings there instead. regarding splitting accounts, I find that keeping the NUMBER of accounts minimized is helpful whenever possible. so pick roth or trad and move on with life. you can always contribute to a different type later. regarding proportions (if not maxing tax adv. first), no great answer but a spreadsheet.
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Apr 5, 2024 14:05
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Xun posted:So I'm getting an inheritance and I want to figure out what to do with it. Kicker is I'm a US citizen and I live abroad so right now the money is in a swedish bank account. Should I try to invest that money in the US? I tried looking into some high interest savings accounts at least but the whole living abroad thing has acted like a hard barrier. Thing is I am probably moving in a few years and who knows where I'll end up so I'd rather it be something I can manage without having to physically visit branches or whatever. Any advice? Vanguard -> Standard Brokerage Account -> Set up for their federal money market fund VMFXX. It's basically tied to treasury bills and return I think is around 5% with minimal risk. Would allow probably maximum flexibility without having to piddle around with things. Compared to say managing a TBills. Alternatively you could also set up a 3 or 4 fund portfolio. But VMFXX, for what it is, is pretty risk free. Senor P. fucked around with this message at 23:10 on Apr 7, 2024 |
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Apr 7, 2024 22:31
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From what I have heard Vanguard's web site isn't as user friendly as Fidelity's or Schwab's. Personally I use (and am quite happy with) Fidelity but any of the three big brokers can give you access to a super low risk government money market fund (SPAXX in Fidelity's case) to park the money in while you decide what to do with it.
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Apr 8, 2024 14:36
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