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ObsidianBeast posted:I recommend reading this blog series about stocks, market crashes, and portfolio ideas. I'm not saying you have to follow it exactly, but it may help you rethink your ideas on the market. I suggest at least the first 6 parts: http://jlcollinsnh.com/category/stock-investing-series/page/2/ Thanks for linking this, it helps a lot in understanding how to use the stock market. I do have a question though - is there anything particularly complicated about investing in Vanguard? (VTSAX) It's an index fund that apparently has been outperforming the Dow in growth recently. How have everyone's experiences with it been? Is it an appropriate place to start investing long-term?
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Aug 17, 2013 22:09
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Okay, the way life ins. was explained to me is that e.g., dad pays like 20k into an insurance that gives 50k upon death. If he's out, then we get the highest of either the money paid to the company, or the amount insured for. Never both. Is that how it works? Is there a way to get both 20k AND 50k, then?
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Aug 25, 2013 18:13
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So wait. This is assuming you're using LI as investment, rather than...well, literally insurance. Is that actually a thing? Why not just pay for the insurance and invest elsewhere instead of trying to pull double duty?
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Aug 25, 2013 19:06
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I need someone to double check my dad's retirement/investment approach. I talked to him about what I should do with the money I'm saving up. He says that index and mutual funds are not the options I should go for, and that the best way to make my money work for me is to start a life insurance policy. Something about contributing to it while I'm young would yield better results than putting it in a mutual fund, and it's what he's doing to help us kids with finances further down the road. This advice goes against what I've typically heard (e.g. If You Can), which is to leverage mutual/index funds and then don't touch it. I feel safer doing that, though I don't know ow where to start yet. Honestly, I just wanna know what the smartest yet most reliable thing to do with my savings is. Keep in mind that this is the same guy who keeps bugging me to get into HFT and is kinda weird about gold and silver, so I'm a bit wary of his financial/investment advice. I just don't want him to do something stupid with his money.
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Jun 16, 2017 16:29
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Droo posted:Your dad is an idiot and you should never listen to anything he says. You will also never convince him to change the way he thinks about anything and I wouldn't bother trying if I were you. Hoodwinker posted:Your dad is super wrong. Read every book mentioned in "If You Can" (I've done it myself and so this is a recommendation from direct experience) and ignore any advice he tries to give you. Reading those books should give you a good starting point to explain to him why he is wrong, which you are certain to be cornered to do at Thanksgiving, Christmas, and at the birth of each of your children. Space Gopher posted:Insurance and investments are opposites. When you buy insurance, you're paying somebody else to take on an unlikely risk*. When you invest, you're exposing your capital to some level of risk, with a likely return. I'm really worried, now. I don't want him to get scammed by capitalists and assholes and lose all the retirement savings that he and my mom have built up over time. I know full well that I can't change his mind on basically anything (he's stubborn as gently caress), but this sounds dire and I really don't wanna end up in a position where I'm paying for their retirement, too.  I'm gonna have to watch what he's doing very very closely.
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Jun 16, 2017 18:00
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Mom and dad are gonna have to deal with that poo poo on their own, I guess. Dad probably isn't doing anything monumentally stupid, so they're probably fine - I'm just aware of how they'll eventually be my responsibility once they get old(er). Reading the If You Can handbook, it seems like the basic idea is to max out employer 401k matching, max out a Roth IRA for each year, and dump the rest in the 33/33/33 portfolio split (i.e. Vanguard stuff). The handbook does say to avoid mutual funds that aren't Vanguard, so should I just directly open an account with Vanguard and get that set up, or go through Scottrade or something instead? Pollyanna fucked around with this message at 20:16 on Jun 16, 2017 |
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Jun 16, 2017 20:12
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Ixian posted:There is no reason to not open the account directly with Vanguard unless for some reason you are emotionally attached to another institution. Sounds good to me. When they say to put emergency funds (was that the "6x monthly expenses" thing?) in a taxable account, are they referring to a non-401k/Roth thing? Would my BofA savings account be one? If so, is the general idea that I keep ~6x monthly expenses in my BofA savings account for emergency funds, while the rest goes into a Roth IRA and...uh, something else? Am I expected to hold a Roth IRA/401k alongside what Vanguard calls a "general savings account" (e.g. individual account, joint account, trust account)?
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Jun 16, 2017 20:37
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Is this mutually compatible with the stock market? Is this an avenue for trying to get your money to make more of itself, or is that a totally different thing? From what I can tell, the whole "MAKE MONEY WORK FOR YOU!!!" thing is a lot harder to pull off than people make it out to be. That doesn't stop my dad from constantly talking about it and trying to goad me into doing that. Also, how do I determine whether I want a Roth IRA or traditional IRA? Pollyanna fucked around with this message at 23:27 on Jun 16, 2017 |
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Jun 16, 2017 23:24
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Yeah, that makes sense. I wonder what my dad was talking about then, but whatever. I prefer the mutual fund idea anyway, so this will work. Way I understand it, Roth IRAs assume that you'll be using it more actively, while traditional IRAs are the set-and-forget type. Is there an advantage to messing around with Roth, i.e. taking things out more often? Sounds a bit more useful, I guess, but...
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Jun 16, 2017 23:57
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I was comparing them on the Vanguard website, but I might be totally misinterpreting it.
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Jun 17, 2017 00:11
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greasyhands posted:rule of thumb on the rule of thumb: future tax rates are not predictable. Always do Roth if available. Doesn't that go the other way too? They could be higher, they could be lower.
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Jun 17, 2017 01:21
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I'm probably just gonna go for a Roth IRA cause it's a simpler option. At this point, I'm likely to gently caress up either way.Ixian posted:401k rollovers. So the basic idea is to open a Vanguard 401k, then when you quit a job, roll your job's 401k's money into your own 401k? I will need both an IRA and a 401k from Vanguard?
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Jun 17, 2017 15:52
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Okay, so I set up a Vanguard IRA, then roll that 401k money into it when I change jobs. That sounds about right.
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Jun 17, 2017 16:18
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Setting up my Vanguard account now. Do I want it to debit (i.e. tie it to) my savings account, or my checking account? I usually have all my money in savings, and try to keep ~2k in checking at all times. Is that what I should be doing?
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Jun 19, 2017 14:20
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Thanks! Just opened my first Roth IRA. I guess I'm an adult now. Once the money is in the account, what do I do with it? Do I let it sit? It seems to be going to something called Vanguard Federal Money Market Fund, am I expected to move the Roth IRA money around to different places? Pollyanna fucked around with this message at 15:53 on Jun 19, 2017 |
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Jun 19, 2017 15:25
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2055 would put me at 65 years old, so that sounds about right. I think I get it now, the Roth IRA holds money I then put into symbols like VFFVX. Investing in something like VFFVX is only what I do with the money I contribute to an IRA.
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Jun 19, 2017 16:32
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No worries, I think I can figure it out. Once the transaction goes through I'll move stuff around. I got my reading to do, too. Edit: looks like it takes a week for transactions into a Roth IRA to go through. I'll come back in a week, I guess? Pollyanna fucked around with this message at 18:11 on Jun 19, 2017 |
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Jun 19, 2017 16:43
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Leon Trotsky 2012 posted:Not really. There's a small inverse correlation. Seems more associated with Dem/Rep presidents judging by that data 
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Jun 19, 2017 17:24
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The money to my Vanguard Roth IRA went through, and now it's in the Vanguard Federal Money Market Fund. Do I want to continue placing the money there, or should I move it all to VFFVX (2055 Retirement)? Also, it's asking me to do a microdeposit or something to confirm my bank. Is this taking stuff from my IRA and putting it into my bank? Why?
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Jun 21, 2017 18:46
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I’m going to be changing jobs soon. Assuming Trump and company don’t facefuck the standard retirement strategy (big if), what do I do with the 401k that my current company has been keeping? Do I just roll it into my Vanguard Roth IRA? Will I still have access to my 401k after I leave, or should I roll it in before my tenure at the company ends?
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Oct 23, 2017 19:57
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Okay, so let me get this straight: I have a pre-tax 401k that I’m contributing to at work. After I leave and am no longer at the company, I log onto Vanguard or whatever site my company uses for 401k management, and roll it into a a new IRA. This IRA has to be traditional, since I’m going from a pre-tax 401k to an IRA that is also pre-tax and therefore much be traditional and not Roth. So now I have two IRAs: my Roth, and my traditional. I contribute $5.5k post-tax (i.e. directly from my bank account) yearly to my Roth IRA, and leave my trad IRA alone while rolling whatever employer’s pre-tax 401ks I get into it if/when I move on. Would I do the same for any post-tax 401ks from an employer? Roll it into the Roth IRA after I leave? Do I roll it into a new IRA every time, or just roll it into what’s already available? What I mean is, do I need more than just one Roth IRA and one traditional IRA? Or will only those two be sufficient?
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Oct 26, 2017 15:38
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Today is my last day at work. Just so I get this right: 1. Open a traditional (not Roth) IRA with Vanguard 2. After my last day, log on to whatever service manages my 401k, and roll it into my traditional IRA at Vanguard That’s it, right?
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Nov 3, 2017 16:48
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Interesting. My 401k with my old company is actually under Vanguard. I wonder if that will affect the rollover? Taking a look at the rollover process under Vanguard and they want me to get my old institution to send the checks to me, then I send it to them. Can't they just do it themselves 
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Nov 14, 2017 22:22
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I have to physically fill out and mail a form to my old jobs 401k place to roll over.  Maybe I can get Vanguard to do it for me.
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Nov 22, 2017 17:24
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I’m just annoyed that I have to do so much song and dance to transfer my fuckin money. Is Bancorp a legit thing? Apparently I have a small amount of money in an IRA with them from a couple jobs ago, and they sent something to my parents’ house trying to figure out what the gently caress.
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Nov 25, 2017 16:03
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I have a significant amount of money sitting in a BofA savings account - enough for a down payment on a small house, or about 6 months of salary (~$25,000). What should I be doing with the money? Should I be opening something up under Vanguard and investing it? Is this what I use to open a 401k?
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Nov 28, 2017 18:42
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OctaviusBeaver posted:If you will need it within 3-5 then use a high interest savings account (~1%). If not then I would follow this chart when choosing where to keep it: Hmm, okay, thanks. I’ll keep it there for now, and once it gets higher, I’ll reevaluate.
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Nov 28, 2017 18:54
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So I asked the people who managed my old retirement plan, MassMutual, for a pre-tax check I could give to my non-Roth Vanguard IRA. They sent a check over, but forfeited a chunk of the savings, so I think they gave me a post-tax check. Is that normal? How do I get them to directly give the pre-tax money to Vanguard? I really want that loving money.
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Dec 29, 2017 18:13
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So it looks like no taxes were actually withheld, but some money was forfeited due to the vesting schedule. About 30% of the money was forfeited because you need to be at the company for 3 years to get 100% of your invested money back. If you're there for 1 year you get 40%, 2 years you get 80%. I was there for approximately 1 year and 11 months, so they only gave me 70% of the money.  Fuckin' cool. I assume there's nothing I can do about that and the most I can do is give what's left to Vanguard?
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Dec 29, 2017 18:34
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Steampunk Hitler posted:That is correct, even if you had kept it there at some point your previous company would have clawed back that money, so it never was going to be yours, even if it showed up in your balance.  Then why show me more than what I actually have? Whatever, I hated that place anyway.
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Dec 29, 2017 18:37
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Yayyy my rollover made it to Vanguard and it's incoming now. Got a nice chunk of money saved up, somehow...
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Jan 23, 2018 18:19
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I have a bit of leftover money in my savings account after contributing to my IRA and my 401k for the year. Setting aside the emergency money, what do I do with the rest? Open another Vanguard account and buy more VFFVX?
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Feb 15, 2020 20:42
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silvergoose posted:Meaning you hit the federal 401k limit, not the employer match? And the IRA limit? I mean that I bumped up the % of my paycheck that goes to the 401k to get to roughly the federal personal 401k limit, and I've contributed to the IRA limit for 2019 and 2020. (I'm putting away money that I've saved up for about 6 years and haven't been doing anything with.) The 401k isn't actually maxed yet.
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Feb 15, 2020 22:15
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air- posted:If you have access to a HSA, that should be next, you're toward the bottom purple steps of the flowchart: quote:A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP).  What the gently caress are we doing. Why are we tying funding for health and medical expenses to yet more taxation/investment-based bullshit. Why. JUST PASS MEDICARE FOR ALL, YOU DIPSHITS. gently caress, fine, I'll contribute. Fuckin' Republican garbage. Pollyanna fucked around with this message at 00:34 on Feb 16, 2020 |
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Feb 16, 2020 00:32
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 I will never understand this poo poo.
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Feb 16, 2020 02:10
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Sorry, just to be clear - should I be contributing to my 401k pre-tax, or post-tax?
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Feb 18, 2020 15:44
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Rip. Oh well, ez change.
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Feb 18, 2020 15:47
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silvergoose posted:So to actually explain. Are we sure this will hold? Not that I doubt a lower income after retirement, just that tax rates will remain lower than earlier in life.
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Feb 18, 2020 15:58
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Made my pre-tax % contribution based on my post-tax income  gdi why can you only make one election per day!!
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Feb 19, 2020 20:21
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Principal’s retirement calculator thing complains when I do X% pre-tax 401k to get me to 19.5k for the year compared to the post-tax/Roth % I had earlier. They both contributed 19.5k to the 401k in the end - how come it complains for pre-tax?
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Feb 20, 2020 17:57
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