Why does the fed make such hawkish rate forecasts? No way they're going to make three rate hikes next year. When the market realizes that it's overvalued the Trump effect and that fundamentals still matter, there will be a nice pullback. We are nowhere close to fully employed as a nation - we still have tons of people dropping out of the labor force, as well as law school grads working at starbucks - as evidenced by the lack of real wage growth. Plus, how likely is a massive stimulus package if the rates go up 100 bps before congress clears anything? Yellen talked tough a year ago and then spent the year being ridiculed for poor rate hike forecasts. I expect the same to happen again this year.
I work at a financial services firm and am required to house all of my retirement/investment accounts with them. I'm quitting next month and will be looking to move my Roth IRA somewhere. Not sure what I'm doing with the ESOP and PSP. I guess I'll keep those along with my 401(K) at Principal? Anyhow, where should I rollover my Roth IRA to? Betterment? Wealthfront? Are those the two premiere robo advisors? I simply don't have enough assets to retain an advisor at my current firm, and I don't wish to look for one elsewhere. Thanks.
Not gonna lie the new breed of 1% period the end advisors who dont fucking get jacked up commissions for selling you bs securities arent all bad.
I realize that. I know many of our advisors that are smart, trustworthy, and actually look out for their clients' best interests. However, they're not taking on my small amount of assets in a fee based platform where they will earn next to nothing. I don't nearly meet the minimum requirement that they're looking for.
i've only had Wealthfront since April I want to say and have been pleased for my goal of pretty broad investment (mostly vanguard funds) to let sit until retirement. if you get a referral link you get an extra 5k managed for free too (pm me if u want), their fees seem real low but someone here who is better versed in the game may be better able to elucidate that.
Just to be clear and not trying to be a dick at all. You hate people? Not trying to be too literal for you but are you resigned to the robo solution because you hate people or you don't want to research or what? I hate people personally so no judgement here, I get it.
No, not at all. Enjoy people very much. There's simply not many advisors looking to take on a $50K retirement account with the new DOL fiduciary rule. Too much risk/responsibility for a fee based account with very little in assets. I'm open to any options. Simply mentioned Wealthfront/Betterment as they were recently discussed in here. Unfortunately I don't have any experience with what else is out there because I've had to keep my investments at my firm, resulting in me never looking elsewhere.
Fwiw that fidcuiary rule gonna be on the choppin block in a few weeks. Soo maybe just park it in a short CD and look around come mid spring?
Plus if youre in your early 30s starting family etc an advisor would be dumb not to take you. 529s comin for college. You got 30 more years of earning potentially... You arent buying them THEY are acquiring a customer
I'm hoping so. Been keeping up with the situation from our legal department and consultants we've contracted. My firm is definitely in no position to get out in front of this. The hope is, even if it's put into place, there's no enforcement arm so no real need to act. Also, am I correct in reading that Wealthfront and Betterment only offer a limited number of MFs and ETFs? Do I have to go to a etrade scottrade fidelity if I want individual equities?
Forgot the DOL thing. When I changed jobs a few years ago I threw all my stuff into a managed services account with an advisor. I know there are different thresholds though for minimum investment, pretty sure 50k is one threshold. If it's managed pretty sure FA won't care about the size of your account assuming their book isn't ridiculous. Pm me and I can let you know who I moved mine through.
I'm looking at buying a place in the next year or two and want to transfer a large chunk from an index fund into a savings account. Any clue if and when retail bank savings accounts rates will increase? Think I'm going to move to either GS Bank or Ally which are at 1% now. Just wondering if the rate will increase due to the rate hike or if that doesn't have an effect or takes a bit longer.
I've been using blooom for my 401k and have been pretty happy. I've returned over 14.2% this year, which outpaces the S&P by almost 2%.
I do think that Wealthfront is worth the .25% advisor fee. They rebalance for you, take advantage of tax loss harvesting etc. Its enough, that over the long term it will return far more than the adviser fees.
Speaking for wealthfront, they diversify your portfolio based on a questionnaire. There is no ability to pick individual ETF's or mutual fund. Wealthfront is your best bet IMO.
Is there any rational argument against the fiduciary rule? It seems asinine to me that it hasn't been in place forever.
http://www.usatoday.com/story/opini...t-investor-sifma-editorials-debates/77944968/ costs primarily, and confusion. plus increased liability which means more costly insurance.
I day trade options for a living. ThinkorSwim is a good platform. Check out Interactive Brokers too. I can try to answer any questions if you have them.
The biggest hurtle right now is the needing 25k according to FINRA. I've been using Robinhood and it seems that if you only do it like 3 times in 5 days, you can get by it.
I am looking to open a traditional IRA. I don't know anything about investing and basically just want to contribute to it without ever doing anything and have someone else handle it. Since I'm starting out, I obviously want to avoid a lot of transaction fees. Any advice?
Anyone shop 529 plan products? I need to open one and have no idea where to begin. I currently do not use a financial advisor.
This. Unless you have some unique tax requirement, Roth all day. I invest in super low expense ratio ETFs that cover the S&P and Dow and have highish dividends. That's about as set it and forget it and you can get.
The DOL ruling is much more complicated than just if someone is a fiduciary. I'm not an advisor, but I think you'll find most advisors thought of themselves as a fiduciary anyway. The rule itself is extremely complicated and people and firms are still learning how to adapt. But as far as taking care of clients - like any business - the vast majority have already been looking out for their clients' best interests.
I have a LOT of student loans I need to pay off so the tax deduction now would probably be more beneficial to me. Does that change your advice? How do I even go about that? I am completely naive. I'm on nerdwallet.com looking at the providers. Do I just sign up for it and then contribute and someone else does all that or do I have to actually pick and choose what to do? Please don't make fun of me.
The simplest response is open a Roth IRA on vanguard.com and put all your funds in a target retirement fund, based on when you plan on retiring. Vanguard invests in an appropriate ratio of stocks:bonds based on which retirement fund year you select.
My state gave absolutely no benefit for me to open one here. I did CA because the fees were low and the investment options were adequate. I probably only looked at about 5 plans before deciding they all seemed pretty similar.
Uh I would consult a CPA on the tax ramifications. For me, I have accounts with both Fidelity and Schwab. Both are great providers . I have both a traditional and a Roth and each institution is kind of the same, although I like Schwab a little better for navigation purposes. I invest in funds that don't have a trade fee to keep fees low so I have a lot in ITOT for Fidelity and various Schwab ETFs (SCHB being the biggest). I may be a rube because I'm not a professional but I just decided to find the lowest expense ratio, highest dividends, and best composition of the fund from what I could gather. I've had good returns thus far. To sign up you just go to one of their websites and give them all the info they request and then contribute from whatever checking account you have. You can set up recurring deposits if you want so you don't have to remember to invest. I have my work retirement through Vanguard and that is also good and low cost.
I did New Hampshire after looking at multiple only because a Fidelity credit card can give you 2% back to an account on anything/everything you spend with no limit and no fee and Fidelity had limited options. At the time I opened it we were paying back a stupid amount in student loans so it was the only way to invest in a 529 really. If you have generous parents or other relatives they can sign up for the card and deposit their rewards in the 529 as well. It's been a nice option and has been worth thousands at this point.
Are you taking the allowed tax deduction for your student loan interest currently? A deduction is allowed as long as you don't make over a certain amount. And are you saying the tax deduction would help generate a larger refund to then use towards your loans?
Yes I am currently deducting my loan interest. Per chance do you know what the salary limit is to deduct student loans? And yes, I would use a higher refund every year to pay down student loans. Again, I'm completely naive, so any and all advice would be greatly appreciated.
Assuming you're single, for 2015 you could deduct all of the interest if you make under 65k, none of it if you're over 80k, and a portion if you're between that range. I believe those amounts are simply doubled if you're married. Also the deduction is capped at $2500 The best advice is obviously very dependent on your particular situation. For me personally, I'd lean towards investing in a Roth still but maybe reduce that investment and put more of that money towards my loans. I'd say if you wanted to do the traditional for the tax benefit then you can look at converting it to a Roth down the line, but when you convert it you'll pay the tax on that invested amount that you would've paid previously. This means if you think your income could steadily increase and your tax rate will be higher in the next few years, you could be better off doing the Roth now. In my opinion, the future benefits of a retirement account outweigh the marginal tax benefit you'd currently receive from the additional deduction. You can only deduct up to $5500 on those contributions to the traditional IRA, so the net tax benefit may not end up being much more than a couple hundred dollars in your refund. I hope that helps some, I'll try to clarify if you have any other questions
The rate of the student loan also matters a lot. Take the rate of the loan, adjust it for taxes using your marginal tax rate, and come up with an after-tax rate on the student loan. (Interest Rate * (1-marginal tax rate...adjust if based on deductibility) = after-tax rate so for instance 4% rate with a 25% marginal tax rate is a 3% after-tax rate. Figure out how that compares to an expected return on money invested in a Roth IRA. If all that I have to do is beat 3%, I'm personally willing to take that risk. But if I have to beat 6% I am paying down the loan.
colonel_forbin do you currently have access to a retirement plan through your employer? If so, you're capped at $5,500 like tjosu said. As others have said, go with the Roth if that's the case. The long-term benefits of tax-free growth will almost certainly outweigh the current tax benefit. I never planned on opening a traditional IRA but when I left my previous employer I had pretax contribution match from them that would've been taxed going into my Roth. I just parked that in a target fund. I also like the Schwab products. I do all of my banking (except for my emergency savings) and investing (retirement and individual brokerage) with them. $8.95/trade may not be as low as some other places but I find their site easy to navigate and their customer service is top notch. Been investing a bit in the Schwab ETFs lately which are commission-free.
I think the robos would be a good fit. As an industry pro you don't need the hand holding that a typical investor might require in exchange for a higher fee. Vanguard also provides a blender service, robo tech but the ability to speak with advisors when needed. All those services though can take care of the basic upkeep for less than the expense ratios on active funds that probably don't hit their bench mark anyways ...
your state not offer one? google 'your state 529' alabama, for example, has a state run 529 with two different options of investments