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Is there any point to enrolling in my company's 401k plan if they don't do matching? It seems like a terrible idea to me, but my boss keeps harping me on it because I guess he thinks I'm just being stupid or something. I tried to explain that at 22 years old, deferring taxes on my income until I retire is self-defeating, because I'm in such a low tax bracket right now and expect to be better off later in life. I guess I'll have to see if they offer a Roth 401k, but again, I don't see the point. I haven't even hit my contribution limit for my Roth IRA yet.
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Dec 9, 2008 19:13
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Don Wrigley posted:The fact that you haven't hit the contribution limit on your IRA tells me you need not worry about the 401(k) option, unless of course they offer a Roth 401(k), which is the best thing in existence as it takes the best parts of Roth IRAs and traditional 401(k)s and puts them together. I only make somewhere in the area of $30,000 a year at the moment, so 5k in IRA contributions probably represents something like a 20% savings rate compared to my after-tax income, not including the money I've been stashing away as a hedge against unemployment or my car breaking or something. That's already a pretty aggressive savings strategy for someone my age, I think. (I only have 4k in my Roth at the moment because I've only been working full-time for five months. Most of it comes from savings I had just sitting around in a checking account.) Now I have to sit through my boss and CFO shaking their head at me and thinking I'm just some dumb kid who wants to spend his paycheck on hookers and blow. Chad Sexington fucked around with this message at 22:20 on Dec 9, 2008 |
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Dec 9, 2008 22:17
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Don Wrigley posted:Ugh...I hope not. What you do with your money is nobody's business but your own. I guess they're just trying to be helpful, but in so doing they sell me short on my ability to manage my own money. So it is when you're young, I guess. They don't actually match after x amount of years. The company is an internet start-up that is less than a year old, and they're only just now starting the 401k plan, which is why it came up. They say there isn't matching currently, but there may be in the future. I don't see the company living for another year, so I don't anticipate ever seeing the day they do a match.
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Dec 9, 2008 23:03
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kys posted:I am a newbie when it comes to investing, but how can I take advantage of a Roth 401k? It just seems to me like a Roth but with a higher limit. My employer does not offer it, but Im trying to find if that is the only way I can contribute. It's still liquid enough in a Roth IRA. You can withdraw your contributions whenever you want, it's just the the interest you can't take out without penalty.
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Dec 10, 2008 16:12
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NashAsh posted:When you withdraw your contributions from a Roth IRA, can you deposit it back? Or does any deposit go against the yearly limit? You can only contribute $5000 in a year. If you pull money from past years, it's pulled out for good, I think.
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Dec 10, 2008 17:21
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doingitwrong posted:Gold fundamentally does not do its alleged job. A stable store of value should not look like this: To just assess gold as a store of value using this chart with no accompanying historic context is pretty funny. It's probably more accurate to say that, at least since 1971, gold has been a hedge against monetary crisis. That's why you see it sort of uncouple from inflation between 1980-2000 and reemerge after the dot com bubble. I bought a bunch of ETFs and miners stocks back in 2009 because I thought the whole system was shaking in its foundations. It's a bit silly in hindsight because if the whole system is breaking down and the monetary system and supply chains are freezing or flying apart, an ETF isn't going to do jack poo poo for you. In any case, I look at more like a trader now. I tripled my money on those stocks and I'm taking some profits now, but I'd probably buy back in when and if we ever see the other side of this economic situation.
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Aug 16, 2020 20:15
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doingitwrong posted:Sir, this is the buy and hold thread. Well I did roll those gains into AMZN, which I plan to hold so  And AAPL, which I'll probably flip after the split.
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Aug 19, 2020 13:06
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There's no way to set up a joint IRA with a spouse, is there? Want to take advantage of the additional $6,000 contribution limit for my wife (who works! but her money mostly just sits there), but I'd prefer not to have to create and maintain a separate brokerage account.
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Sep 21, 2020 17:15
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Leperflesh posted:Good news! Inflation is so low that even at nearly 0% you aren't losing money just by being in cash. I can't tell if you're joking or not.
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Sep 25, 2020 20:16
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Residency Evil posted:He’s right though? Food prices alone were up 4.6% YoY in August.
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Sep 25, 2020 23:48
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Residency Evil posted:Seems like 1.3% overall though? CPI is a fantasy to keep government expenditure low and real GDP numbers looking better than they are.
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Sep 27, 2020 03:46
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GoGoGadgetChris posted:What's the good way to measure Price of Things Go Up? PCE I guess?
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Sep 28, 2020 21:04
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Leperflesh posted:
Sure, there's deflationary pressure on a macro level from a sputtering economy. But what is important when looking at how much of your net worth you hold in cash is what the prices on things you actually purchase are doing. And by and large, the prices of things goons are buying -- food (up 4.1%), rent (2.3%), medical care (5.3%) -- are going up while things nobody really needs to buy -- airfare, hotels, new clothes -- are going down. I guess you could argue that's just relative price movements. I don't know poo poo about PCE, as evidenced by the fact that it invalidated my argument, I just threw it out there since it's calculated more frequently than CPI. I don't trust CPI because the hedonic adjustments they make are completely subjective and fail to capture declines in quality of the goods being measured. Chad Sexington fucked around with this message at 22:16 on Sep 28, 2020 |
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Sep 28, 2020 22:09
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Pollyanna posted:My emergency fund is currently about [checks] 8.8 months of salary, so I’m probably fine. I ramped up on that due to covid, too, though I’m planning on also saving my IRA money in my HYSA too, so contributions continue. If you really do want to own property at some point, it's best to think about it now, before you upgrade to a new apartment. Scrounging for a down payment is a lot of work, so if that's really your goal, best to have that in mind before taking on a higher rent somewhere.
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Oct 14, 2020 21:01
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Anyone ever taken money out of a Roth IRA for a nonqualified distribution? I'm looking to take out our $12,000 of 2020 contributions temporarily to help fund the down payment on a house. The intention would be to put it back after the sale of our current home. 1. I know we're allowed to take out our contributions (but not earnings!) tax and penalty-free, but Schwab seems to classify it automatically as an early withdrawal subject to tax witholding on the transfer screen and it spooked me from doing it. 2. Will I still be able to put the funds back in for the 2020 tax year? I suppose there is a 60-day window if this was a rollover. But say it was longer than 60 days? I'm kind of floored how bad USAA and now Schwab is about keeping records of our basis. I get these accounts aren't supposed to be a piggybank, but it should be way easier to see how much is contributions vs. earnings.
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Oct 22, 2020 15:57
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Nitrousoxide posted:Are you a first time homebuyer? I think you can take up to a 10k distribution of the earning from a Roth IRA penalty free for a first time home purchase. Nope, trying to sell our first home and buy another. The D.C. market is insane, so to avoid having a home sale contingency that will make our offers look less attractive in a competitive market, we're trying to buy first with cash on hand. We should be able to swing 10% down, but I want to have a bigger cash buffer in case something goes wrong with the sale and we're trying to get poo poo done while paying two mortgages for a month or two.
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Oct 22, 2020 16:26
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Perhaps an unpopular opinion in this thread: REITs are lame because they are helping price an entire generation out of home ownership. I guess you could get into commercial REITs, but they are also not super great for small businesses either. Now to return to figuring out where to put my 2022 Roth IRA contributions, which will be likely be in index funds that are also invested in morally questionable companies.
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Jan 12, 2022 18:02
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Inner Light posted:Ugh I deviated from my usual long term strategy and bought SPY for a few weeks, I’ve lost $500 and feel like garbage about it. Keep it in or pull it out? I don't think that's particular to SPY, you just had bad timing. Like when I deposited my 2022 Roth IRA contribution and put it in sensible index funds and it basically went POOF in a week. I'm debating parking my taxable investing account in bonds or cash for the time being, but timing these things always sucks.
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Jan 24, 2022 15:47
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I consistently beat the house at blackjack, is something degenerate gamblers say.
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Jan 24, 2022 18:16
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Ornery and Hornery posted:Neat-o thank you friends. Beans should be part of your emergency fund, though the allocation is up to you. Me? I'm 20% beans / 80% USD.
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Feb 22, 2022 15:08
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Just got on treasury bills lately and I just went with new issues instead of loving with the secondary market. Also it made me feel like an old man to get hyped about these yields.
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Jun 22, 2023 16:26
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SpelledBackwards posted:I keep reading that name and think you're investing in Roblox bonds and promissory notes. Might be a better investment
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Jul 11, 2023 14:57
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smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? Telling the internet you have cash in your house and how much is always a winning strategy. I keep some just in the event of like... I don't know, a big power outage or something from a storm. Mostly I wind up grabbing it bit by bit to like... tip the lady who watches our cat.
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Jul 29, 2023 14:06
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Democratic Pirate posted:Any recs on the best set it and forget it HYSA? I’m getting in the weeds and probably just need to choose one with a bank I’ve heard of. I've been happy with AMEX but I already had a relationship with them because of my credit card so ease of use was a factor.
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Aug 2, 2023 16:01
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A GIANT PARSNIP posted:there's some giant questions like... will we get our act together as a country and provide free college. no
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Aug 5, 2023 21:22
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Easychair Bootson posted:You say that, but I have it on good authority* that a market crash is coming** on a long enough timeline, he's probably right! I've been pretty happy to squat on short term treasuries this year and take my 5% but lots of opportunity cost there too
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Aug 23, 2023 17:33
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Subvisual Haze posted:Life is a series of marshmallow tests but maybe the people who immediately eat the marshmallow have their own wisdom. What if the promised second marshmallow was a lie? In that case eating the marshmallow immediately was the smart choice. This is basically what runs through my head when I sit staring at the screen to elect how much of my paycheck to sock away in a 401k after maxing employer match. (Which is where I am in that giant flowchart of responsible financial tactics, but I think it's something everybody hits once they're out of crisis mode and start saving.) You could be hit by a bus tomorrow. On your death bed, would you rather have put that extra few percent pre-tax in a retirement account or gone on a trip with your family to the beach?
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Sep 5, 2023 20:55
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death comes for us all
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Sep 5, 2023 21:37
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Boris Galerkin posted:I know people who have their garages packed full of poo poo and empty boxes (that they don’t flatten for whatever reason) that they can’t park their car inside. I’ll never understand that. They might not have had anything in them before, but now they have cockroaches.
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Sep 11, 2023 21:46
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Instead of working I spent a decent chunk of my afternoon trying to calculate if it was worth it to use the i-bond I'll be selling next month to help pay down my mortgage principal enough to eliminate PMI. I thought it was a slam dunk but I was persuaded that while the short term ROI is pretty attractive, over a longer horizon the drag of my low mortgage rate brings the ROI down below just dumping it in an index fund or t-bills. Paying off my car also didn't make sense because of the low interest rate. Financial prudence is often less emotionally satisfying, I think I am finding. (I know, woe is me with low interest rates. I hate me too.)
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Sep 15, 2023 20:38
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SpelledBackwards posted:At the University of Texas at Austin, one of the libraries has major historical artifacts like an original Gutenberg Bible. Instead of water or potentially reactive or damaging chemicals like halon, they have a system which gives you something like 30 or 60 seconds to reach a designated refuge area, and then they evacuate all the air in the room to deprive the fire of oxygen. what a way to go that would be
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Oct 2, 2023 14:39
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e: nm
Chad Sexington fucked around with this message at 14:10 on Oct 17, 2023 |
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Oct 16, 2023 21:49
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pseudorandom posted:My company has just started offering 401k benefits. I'm not sure if there's employer matching on the contributions right now. The problem is I'm fairly frustrated with management and I'm now (slowly) looking for new jobs. They're usually pretty easy to rollover and if you can't, it just sits there and that is fine too. Retirement savings is better than no retirement savings. Doubly so if there's a match.
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Nov 16, 2023 21:48
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Guinness posted:good reminder that the current rates are not "devastatingly high" like so many people and media complain about They are devastatingly high when looked at in the context of the cost of living, which has outpaced growth in wages.
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Feb 7, 2024 16:37
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Guinness posted:hey hey hey don’t bring facts into this when my feelings say otherwise I don't disagree that low interest rates sustained zombie companies and that there is a reckoning there in a higher interest rate environment. I honestly don't think it's even really controversial though for actual humans. Housing affordability hasn't been this bad since the early 1980s, when interest rates were 10 percentage points higher. quote:“To put today’s affordability levels in perspective, it would take some combination of up to a 28% decline in home prices, a more than 4% reduction in 30-year mortgage rates, or up to a 60% growth in median household incomes to bring home affordability back to its 25-year average,” said Andy Walden, vice president of enterprise research and strategy at Black Knight. That's just housing. You could do student loans too if you wanted. Or cars. It's got knock-on effects for child care/elder care, medical expenses, leisure activities/travel, etc.
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Feb 7, 2024 20:39
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