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What's a good discount broker to start an IRA at? The OP has a link, which has a link with a rundown of different brokers, but it all kind of went over my head.
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Sep 7, 2008 01:13
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| # ¿ May 4, 2024 11:17 |
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So. Schwab or Vanguard for a Roth IRA?
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Sep 8, 2008 00:02
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Unormal posted:When your post-tax, post-inflation real return is 2-3%, the difference between an average ER of 0.2% and 1% or even 0.5% or god forbid 2% is HUGE. Just keep this in mind. I have no idea what this means. What does it mean?
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Sep 14, 2008 06:18
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Unormal posted:Expense ratios that look so small you want to ignore them (1.5%) are, in fact, gigantic, because let's say your total real returns after taxes and inflation are something like 5%. 1.5% is a huge chunk of 5%, so even though 1.2 looks a lot like 0.2, There's a whole world of difference between a 0.2 and a 1.2 expense ratio in terms of your final results. I see. So what does that translate to in the context of trying to choose between Vanguard and Schwab for a Roth IRA? Your initial response was to the statement "a lot of people like Vanguard because of low fees", so were you agreeing with it?
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Sep 14, 2008 17:45
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Thanks for the awesome replies guys. I'll be opening a Roth IRA at Vanguard and go from there. I don't know where, but I'll figure that out eventually. 
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Sep 21, 2008 04:34
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Nice. I just found out that because I'm not a citizen I cannot create a Vanguard account online. I need to mail out a form, and in that form include another form that I get from the IRS. SIGH
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Sep 21, 2008 08:50
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I opened a Roth IRA with Fidelity tonight - I've been planning to do it but I found out that the deadline for 2009 contributions is tomorrow, so I just hurried to their website, filled out an app and contributed $3,500 for last year. Of course, I don't know what to do with the cash sitting in the account now. I just didn't want to miss the chance for the 2009 contribution (since the earlier you start saving/investing the better). I'm reading The Boglehead's Guide to Investing to hopefully that will give me some tips.
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Apr 15, 2010 07:14
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How does early retirement work with regards to IRAs and 401ks? I know there's heavy penalties for withdrawing from them before you're 59 or something like that. So where do people get their income from when they retire early?
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Jul 14, 2013 11:05
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silvergoose posted:Other investments? Just plain ol taxable investments. Should those be prioritized over Roth/401k if goal is early retirement, then?
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Jul 14, 2013 11:32
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obi_ant posted:So I'm looking into my 401k with greater detail and I noticed that the fund I'm invested in Hewitt EnnisKnupp 2050 Fund has a net expense ration of 0.70%. Do you have any non-managed funds, as in index funds? If not, stay with what you have (since it's the lowest exp ratio), check what types of assets it is composed of and their percentages, and then take that into account when calculating your broader asset allocation (which would involve things like IRAs). Depending on how much bureaucracy your company has, you may be able to lobby your HR's benefits person to have them add some low-cost index funds into the 401k options. I know people who have done that before, although it took a while, and many meetings. It may or may not be worth the battle in the grand scheme of things. Slow News Day fucked around with this message at 21:29 on Jul 14, 2013 |
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Jul 14, 2013 21:26
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Walked posted:Followup question. The general advice I've seen is to max 401k, wipe out debts, make sure your emergency fund is in good situation, and max out a Roth. What's after this? My fiancee are just about wrapped up on our debts as of this month (about $300 left on one card, and $900 on the other, which will be paid in full this Friday). We're past the max income for a roth contribution, we both max our 401k, and we've got about 25k in savings at this point (and I dont have any interest in going below 20k as our emergency fund). You could open a 529 and start saving for your future kids' college education.
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Jul 15, 2013 19:04
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QuarkJets posted:What's the strategy for maxing a traditional 401k, anyhow? Is the $17.5k cap just for money that you put in, or does that count employer contributions? What happens if you go over the cap accidentally, or is that usually prevented by the 401k managers? The 401k cap does not include your employer's contributions. It's basically $17.5k + whatever your employer contributes. As for going over the limit, it's up to you to keep an eye on it and make sure it doesn't happen. If you go over, the amount over the limit is taxed twice: first as taxable income, and a second time when you take it out during retirement. Perhaps someone else can answer your second question. My educated guess is that saving for a house should take priority, since larger down-payments can significantly reduce the total you end up paying for the house. But it may also be that it depends on the price of the houses in the area you're looking to settle down in. No Wave posted:The 17.5k cap is just for money that you put in - the employer cap is dependent on income but the combined max is like 51k. So you're not gonna hit that. Yes, but out of that amount, only $17,500 is allowed to come out of your pocket. It is in fact possible to hit & exceed that limit. Slow News Day fucked around with this message at 15:42 on Jul 16, 2013 |
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Jul 16, 2013 15:40
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If you make/save so much that you have to worry about not hitting the cap, then falling short several hundred dollars shouldn't be a big deal - you will die rich anyway! Just put that into a taxable retirement account or a 529 or something, and you'll be good!
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Jul 16, 2013 15:56
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Duckman2008 posted:Quick question: people keep mentioning that a 401K is capped after a certain amount. Can anyone just confirm standard policies and what to do once it's capped? I currently have a 401K, I contribute 6% of my check which is matched 100%, and anything else I put in a separate Roth. 1. Contribute to 401k up to your employer's match. 2. Max your IRA 3. Max your 401k This is generally the recommended way. Depending on the funds offered by your 401k and your current life priorities, you can replace #3 with something else such as a house savings fund or a 529, or even a taxable retirement account. For example if all the funds in the 401k have massive expense ratios (%1.5+) then it might be better to contribute up to employer's match (so you get the "free money") and then put the rest elsewhere.
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Jul 17, 2013 16:17
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Lysandus posted:Is Vanguard still the goon approved investment company? I am getting a new job and I think I want to rollover my 401k into a Roth IRA. Yes. It has the best index funds in terms of both composition and expenses.
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Jul 22, 2013 21:11
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I'm not sure if this is the right thread for this question. 15 months ago I invested $60k in a brokerage account. Today that investment is worth $70k. If I sold $60k worth of investments, how much capital gains tax would I owe? Is there an easy way to calculate? Should my broker (in this case, Fidelity) have tools for calculating this?
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Apr 26, 2018 00:31
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Leon Trotsky 2012 posted:You'll owe the long-term capital gains rate on 10k, which depends on what your income is this year. Hmm, not sure I understand the logic. What if I sold all 70k worth? What about 30k worth?
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Apr 26, 2018 00:55
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Hoodwinker posted:I'm pretty sure you don't get to decide which part of the money you're withdrawing. If I understand it correctly, the gains are the portion considered withdrawn first. I see. So if I sell and withdraw only 5k then I’m taxed on that 5k, but anything over 10k I’m taxed on 10k.
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Apr 26, 2018 01:03
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Follow up question: will I get a document from the custodian (Fidelity) early next year that specifies the amount I need to pay taxes on? Or is that something that is purely my responsibility to calculate? I'm hoping for something like a W-2 or W-4 where I take numbers from boxes and type them into Turbotax or whatever.
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Apr 27, 2018 19:55
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| # ¿ May 4, 2024 11:17 |
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Nice, thanks everyone!
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Apr 27, 2018 20:10
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