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When you guys say max out the 401k, does that mean that I have to contribute a max of $15,500, or does my employers match count towards the same maximum?
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Aug 25, 2008 19:10
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I am trying to have all of my expenses centralized through Mint, but unfortunately my 401k can't be linked because my company has a personal 401k site that doesn't integrate well or whatever. Also, I need to start a Roth IRA plan soon, so is it possible to find an established site that offers both roth ira and 401k plans that I can integrate with mint, AND have my company 401k roll into it while I am still employed? Or is a rollover only going to work if I no longer work there? Will the company still match if I am contributing to a different 401k than they offer?
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May 4, 2010 11:48
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If I open a Roth IRA account, can I deposit the $5000 in one shot or is there a monthly limit like my 401k? My plan is take my income tax refund which is exactly 5k every year and drop it in there.
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May 18, 2010 11:49
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I am looking for some long term guidance. A buddy of mine set up my 401k contributions a while ago, but I'd like to know if I should change them. I am 27 years old, earning $98,000/year. I am contributing 19% towards my 401k which currently has about $23,400 in it (was contributing less before). The contributions are currently: Vanguard Wellington Fund - Admiral Shares 5.00% LifePath Index 2050 Fund M 10.00% Equity Index Fund T 20.00% Invesco U.S. Mid Cap Value Portfolio 25.00% Fidelity Diversified International Fund 40.00% Which apparently has been working well since I see a lot of green in the pretty chart and underneath it says: Your cumulative personal rate of return during this period: 31.9198% (Annualized Return: 19.4472%) Total net investments made during this period: $15,949.81 Change in market value over this period: $19,338.86 My buddy suggested scaling the international fund back a little and dumping the rest into the 2050 fund. What do you think I should do? Also forgive my lack of math but does anyone have a quick estimate on what percentage I need to contribute to max my 401k evenly across the year?
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Jul 26, 2010 16:36
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I am currently saving for retirement by maxing out my 401k. I had also planned to open up a Roth IRA, but unfortunately I am over the income limit and cannot do so. A friend of mine suggested opening a life insurance fund and overfunding it, which he said would be the next best thing. Does this sound like a good idea? What other options do I have?
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Nov 19, 2010 12:32
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So to save for retirement, I've done my best to max out my 401k plan for the past several years. My 401k has about $110k in it. To max out my contribution I've been putting in 14% of every paycheck (salary at $119k), and thats that. Recently I got a 5% raise, and a letter that my contribution was changed to 6% which I obviously didn't choose to do. I learned I'm now classified as a high compensated employee and my limit is capped. This really sucks because I was proud to be maxing out my 401k.. I almost wish I didn't get the raise. What are some options I have for my missing 8%?
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Aug 22, 2014 00:48
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Henrik Zetterberg posted:Do you have a Roth IRA? You can backdoor $5500 into that a year. No I thought I read that my salary was too high for it.. I'll have to look into it again
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Aug 22, 2014 02:16
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Dumb question here. I mentioned earlier I have 100k in my 401k, but I am now capped at 6% due to being a high income employee. I plan to contribute to a Vanguard 2055 plan for the remainder of what I used to max out my 401k with (so another 8% of my salary). However, am I missing out on compound interest since I am essentially starting from scratch with this new account? Does the value of a long term retirement savings account come from continually putting monthly contributions, or compound interest on top of those contributions? Same question can be boiled down to this: If I had one maxed out 401k for 30 years straight, vs 2 401ks at half the max, would the net income be the same in the end?
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Aug 30, 2014 03:10
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Question guys, I max out my Roth and 401k with Target funds and after my emergency fund I want to invest in a brokerage account. Does anyone see any problem with dumping everything into VTWAX for the next 20 years? I'm hoping the bonds from the Target funds and above average 1 year emergency fund is enough to balance out the low risk portion of my portfolio.
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Mar 29, 2019 13:22
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Oh no I don't pretend to know anything, I just love the idea of the simplest possible approach. I'm not changing the target stuff around, just hoping that the additional into VTWAX doesn't skew me into bad territory
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Mar 29, 2019 16:45
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GoGoGadgetChris posted:Honestly I'd just go 100% VTSAX but I'm not a big international guy That was my original plan but I was swayed by the Investing Demystified video on YouTube.
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Mar 30, 2019 02:33
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Mao Zedong Thot posted:What's the (absolute simplest) approach to taxable investing? I just posted an almost identical question and my answer is VTWAX (which is VTSAX plus international), feel free to look a page back for the explanation (on my phone or I would paste)
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Apr 1, 2019 01:16
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Hah, I read that article too. Isn't the logical conclusion, if active funds provide better returns than passive, to dump all of your money into them? Why is he recommending a mix of passive and active? If the active ones are raising the average, then why bother with the passive. If the passive is covering for the active funds, then why bother with the active?
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Apr 8, 2019 14:48
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Ok guys please convince me to do the right thing. I max out the normal retirement stuff, and I contribute the max to my companies espp. Everything I read says to sell right away, but I was viewing this as more of a fun long term gamble and I was planning on holding it for as long as I can because it's a strong young company. But then, why not be happy with a minimum 18% return? What would you do if you didn't need this money?
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Apr 18, 2019 17:18
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Maybe this is a better question. Would I have a safer form of this gamble by selling every time and just participating in the next round over and over, rather than holding all of the stock? Assuming I stay employed to participate?
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Apr 18, 2019 17:33
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What would you guys recommend for someone retiring with regular social security payments, and the only retirement funds being a pension paying either: A) $530 monthly payment or B) 100k payout. Traditional IRA? Stocks/bond mix with 3-4% withdrawal? VTWAX? Or just the payment..
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May 8, 2019 18:50
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Mu Zeta posted:Ideally your taxable account is treated as just part of your whole retirement portfolio, unless you want to use it to buy a house or something in the next 10 years. So you should be putting VTSAX and VTIAX in there and adjusting more bonds into your 401 or IRA to compensate. Even better consider VTWAX, which is a combination of VTSAX and VTIAX
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May 8, 2019 23:42
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Astro7x posted:With a mortgage that has a 3.35% interest rate, does it make sense to use this money to just pay off a mortgage with 25 years left on it, or invest it in something like VTSAX and let it sit? Is that a fixed rate? If so I would never pay that back. After mortgage interest deductions that's practically on par with inflation, dirt cheap historically low debt. If I were you I would save a hefty emergency fund (1 year even) to buffer against the urge to touch the rest of it, which I would put in VTWAX instead of VTSAX, for the rest of the world exposure.
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May 13, 2019 23:32
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Loucks posted:VTWAX has a 0.1% ER and is only 57.7% NA. At a glance it makes more sense to mix VTSAX at 0.04% and VTIAX at 0.11% to get the desired balance unless one really wants the VTWAX US/International split and doesn’t want to deal with rebalancing ever. Am I missing something? Seems like most people weight their US holdings more heavily than VTWAX does. Most people weigh US heavier because they believe it has built in international exposure. I am more convinced by this video that makes the claim that all markets should be weighted equally: https://www.youtube.com/watch?v=LwTHLtuToSY
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May 14, 2019 02:44
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Sorry, I should have said proportionally equal.
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May 14, 2019 02:58
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GoGoGadgetChris posted:How correlated are home values and domestic equities? I don't know the answer but I am in the same situation, and at least the mortgage rates are great! Locking in a low rear end rate for 30 years has got to be worth more than a short term crash. FateFree fucked around with this message at 18:03 on Jun 1, 2019 |
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Jun 1, 2019 12:45
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If the economy crashes soon, wouldn't that be the better decade to invest in?
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Jun 1, 2019 22:07
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Thats alright, im not talking about predicting anything. I'm just saying the best opportunity for investing could be the upcoming decade if there is a crash, just like 2008 was for a few years. Just trying to give those guys some optimism if they felt they missed out. Edit: Let me ask if this way, if you took two identical investors over 30 years, but one of them starts out investing during a crash, and the other starts during a long rise in the market, will the outcomes be drastically different at the end of their run?
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Jun 1, 2019 23:14
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TooMuchAbstraction posted:The general assumption is that you wouldn't buy stock in the company you work for, or indeed in any other company in the same industry, because your livelihood already depends on them. If they do badly, you want at maximum to be out of a job, not both out of a job and down on your savings. Yeah but its not so cut and dry when its offered at a 15% discount, it may feel like a perk. (Sorry im talking about ESPPs, not RSUs)
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Jun 8, 2019 00:44
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punk rebel ecks posted:I want to cancel the card because it is with Chase bank (who I am closing my checking account), and I want credit card with my credit union. I closed my bank of america account that I used when I was young and it caused my credit score to tank around 40 points because of the age of my remaining accounts. I highly recommend you leave it open and cut up your credit card instead, I regret closing mine. (Unless they charge a monthly/annual fee, in which case you don't have much choice)
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Jun 14, 2019 11:49
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Mu Zeta posted:That's what most people do. Just ghost your old card. Actually it's probably better to report your old card as lost so they de activate the number. Then just cut up the new card and never think about it again.
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Jun 14, 2019 17:52
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How important is it to you to have your house in 8 years vs say 10 or 12? You mentioned you are right on the edge. I personally would put it in a 2% savings because I like guarantees with a life plan like that. 80k isn't that much money in the grand scheme of things though, would you gamble on your deadline to maybe have 5-10k more?
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Jun 19, 2019 11:42
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Not sure if this is the best place to ask but, I have a home mortgage balance of 100k with 5 years left from a 15 year at 4.2% interest. A family member offered me a personal loan for 100k at 3.5 percent. Putting aside the normal warnings like straining relationships and all that, does it make sense financially given that I am in the home stretch of this mortgage? Do you pay less interest towards the end that would make this a bad move? Note I don't declare mortgage interest as a tax deduction.
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Oct 16, 2019 22:54
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nelson posted:3.5% is better than 4.2% Sigh yes but you pay more principal at the end of the mortgage, does that have any effect?
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Oct 16, 2019 23:03
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Animal posted:Hopefully that’s $3k above your estimates, good job. I don’t have the patience or know-how to make accurate estimates so I just use a brute force approach of saving as much as I possibly can and hoping the green net worth number on Mint keeps getting bigger and bigger. My green number goes up despite my net income chart going horribly red month to month, mint must be double spending my credit card payments or something. Too lazy to fix though
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Dec 17, 2019 16:14
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AlteredCarbonation posted:
It would be cheaper and easier and simpler if you just put this all into VTWAX and left it alone, vanguard will balance all of it for you and the expense ratio will be less. It would be a no brainer if I was in your shoes
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Jan 16, 2020 13:51
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Speaking of refinancing, I just bought a house with 25% down like 4 months ago at 3.625%. I wouldn't be surprised if the principle hasn't moved yet. I get one free? refinance in the first year according to the mortgage guy. Since I'm so early, should I go for it even if it hasn't dropped that much? The lowest I saw was 3.25 on the website, I was thinking about doing it if it dropped to 3. Or maybe wait for the recession? Thoughts?
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Feb 13, 2020 00:39
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I've been ignoring my HSA because it just seems like a pain in the rear end. But I probably should do it huh.
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Feb 16, 2020 17:41
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Pollyanna posted:Naw I getcha, i just find it funny cuz of my poor luck. It's not poor luck if you don't cash out the money, it means nothing until you sell it. If you did panic and sell then yes you would guarantee your loss. The correct and simple action is to do nothing, it's the easiest thing in the world and yet the hardest mentally. But even if the stock price was exactly the same now as in 10 years, you would have more of it from your dividends.
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Feb 25, 2020 16:28
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Why do people recommend vtsax and vtiax instead of vtwax?
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Mar 9, 2020 18:33
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GoGoGadgetChris posted:So you can set your own US/International ratio instead of the 60/40 in VTWAX Coming from the Investing Demystified YouTube videos, why would you want to set your own ratio? Wouldn't you always want to follow the actual world index so you aren't trying to outsmart the market?
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Mar 9, 2020 18:55
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acidx posted:The world index historically can be outsmarted. 80% of mutual funds underperform the S&P 500. On the other hand, I'd bet the majority outperform the international index. If you're primarily tracking the US market, then adding international isn't about tracking the world index, but about diversification. I don't get it.. The S&P500 has proportionate shares of the top 500 US companies, doesn't VTWAX have proportionate shares of the worlds biggest companies? How can it be outsmarted? I don't mean outperform I just mean owning exactly the proportionate share of each company.
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Mar 9, 2020 19:43
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dexter6 posted:re: International vs Domestic chat... This is what I'm trying to get a clear answer on. The expense ratio for VTWAX is cheaper than VTSAX + VTIAX separately. All the answers I'm hearing seem to be because people prefer choosing this ratio themselves. But I believe in the investing demystified strategy that says the markets are well informed, and I am too dumb to know any better, so I should simply buy the vtwax. By the way, this is the video I'm referring to. I've yet to hear any convincing argument as to why this is wrong: https://www.youtube.com/watch?v=LwTHLtuToSY
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Mar 9, 2020 21:23
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doingitwrong posted:This video makes a similar argument with links to papers that support the idea. Thank you for this, this all makes perfect sense and lines up logically with the other video. I think anyone who recommends VTSAX/VTIAX over VTWAX should watch this and reconsider.
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Mar 10, 2020 02:45
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VTWAX is .11 ER and VTIAX/SAX is .14 ER, plus vtwax automatically balances itself so its just objectively better.
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Mar 10, 2020 02:58
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