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Unsinkabear posted:I have heard both of those things in quite a few places and imo there is room for both to be true. They can historically have had great service and still have made cuts to drop it in the shitter recently. I actually had to deal with Ally customer service yesterday for a somewhat complicated matter (handling a trust account after the death of the initial trustee). I got a person quickly and they were totally fine to deal with. The overall processing time is getting a bit long, is my only complaint.
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May 17, 2023 17:30
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I know generally active management isn't going to beat the market long term. I have seen historic performance from managers where they consistently beat the market by their management fee (say 1%). That situation seems like a reasonable trade off, where I break even but also have someone professional to talk to if I have questions. Has anyone here done this? I'm talking to Brown Advisory in a preliminary way now, and would love to hear anyone's recommendations or experiences.
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May 19, 2023 00:18
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KYOON GRIFFEY JR posted:or your or the prior account holder’s predicted lifespan. That would fall under "[option 2 is irrelevant because I am not a spouse of the deceased]" I believe.
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Jul 24, 2023 23:57
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My current employer 401(k) offers Roth 401(k) option, though the employer match has to go into regular 401(k). I'm maxing my 401(k) contributions and putting them all into Roth, not putting anything extra into an IRA but could afford to do so. Given that the vast bulk of my 401(k) funds are Roth, I'd think it would make sense to do regular IRA for more potential tax diversification when drawing down in retirement, rather than try to backdoor into even more Roth. Thoughts?
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Aug 17, 2023 19:15
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KYOON GRIFFEY JR posted:you're definitely going about this backwards as traditional 401(k) contributions are always tax advantaged regardless of your income level, and Roth IRA contributions are always tax advantaged regardless of your income level (through the backdoor). if you do things the other way around, your Roth 401(k) contributions are always tax advantaged, but as Jows started to explain, you don't get any tax advantages for traditional IRA contributions if you make over $153K/$228K (single/MFJ) - since you talk about the backdoor you're likely already over income limits. So you should probably max your 401(k) contributions as trad, or do like, $6,500 as trad to offset the additional $6,500 you would contribute to your Roth IRA. Right, I forgot about the cut-off for deducting traditional IRA contributions. I guess I could offset the 401(k) contributions by some amount as you say, though that leads to the question of "what is the optimal balance between Roth and traditional?" If the answer is "as much Roth as possible" then I'd just max Roth 401(k) and backdoor Roth IRA without any offset. I know that answer depends heavily on one's situation. I'm in a higher tax state (California) with no plans to leave either during my working years or in retirement. MFJ in the range of $275-300k though that will be increased during the next few years by drawing down an inherited IRA -- probably by whatever amount each year will get me to just under the 32% tax bracket. In our late 30s and would've been anticipating a normal mid-60's retirement age but may be able to push that earlier by a good amount due to recent inheritance. Current retirement balances are $40k Roth IRA (from roll-overs), $130k Roth 401(k), $60k traditional My wife also just started her own business so I guess there's that to consider in case there's anything fun we can do with a solo 401(k) or similar plans. Muir fucked around with this message at 16:35 on Aug 18, 2023 |
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Aug 18, 2023 06:10
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KYOON GRIFFEY JR posted:Nobody knows the optimal balance between Trad and Roth contributions because that requires knowledge of a) your future income in retirement (this is relatively projectable) and future tax policy (lmao). Since you make pretty good money, it is probable that you are currently in a higher income tax bracket than you will be in retirement. Given that is the case and no change in tax rates, it's relatively better to contribute to a traditional 401(k) and avoid a 32% fed + state tax on those contributions now so that you can take retirement distributions at 24% or 22% + state tax. Doing this also lowers your MAGI which might help with your IRA distributions. The bad outcome would be that you actually are in the same or higher income tax bracket in retirement. My general view is if this happened - congratulations, you Won. Pay your taxes. I misspoke, sorry, the trad balance is in the 401(k) -- it's the employer match funds that accompany my Roth 401(k) balance. I have zero trad IRA balance. Assuming current tax policy, I don't expect to ever be in the 32% bracket, but I guess it's possible in like 10 or 15 years depending on how things go. Definitely not any time soon. So it sounds like you'd recommend moving some or all of my 401(k) contributions to traditional at this point, given the points you outlined. I always figured the optimal balance would shift as one gets closer to retirement as well, since the time for tax-free growth in Roth would be shortening and lose value versus the immediate tax savings of traditional. I think for the inherited IRA is that I can only do the 10 year rule, since I am not a spouse or other eligible designated beneficiary of the original account holder. I spoke to a CPA and he confirmed my understanding and that there were no tax optimization strategies beyond "drawn down as much as you can each year without hitting the next tax bracket" which I should be able to do within 5 years or so.
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Aug 18, 2023 15:48
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If you have the money to cover it easily either way, then paying down the higher interest debt will net you more money in the long run. However, if cash flow is an issue, completely paying off the lower interest debt will remove that monthly payment, and that's a valid reason to pick that option.
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Jan 29, 2024 22:17
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Medullah posted:I max out my 401k annually, my company has the option of Roth and Traditional that I can split however I want. I assume it's overall better to go with the Roth as much as I can since I pay taxes for it up front? I know it's not a traditional Roth IRA That will depend greatly on your current tax bracket, expected future tax bracket, and many other factors.
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Mar 1, 2024 21:38
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| # ¿ May 10, 2024 05:07 |
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RPATDO_LAMD posted:Isn't that how interest always works? How is this different from "normal" interest on credit cards, loans, or any other kind of debt? Why does the loan exit counseling page have a whole section on "understand when interest capitalizes"? A student loan may very well be the first time someone is encountering these concepts in their life and dealing with them first-hand. I don't think a bit of explanation is unwarranted.
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Mar 29, 2024 06:26
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