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Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.
+1 for Schwab
Went with Schwab and maxed it out for 2022. Ouch
Your future self will thank your current self
been debating between paying down my student loans or starting my roth, but i feel like maxing out the roth every year should be priority #1
Really debating no longer contributing anything over employer match to my 401k. It’s got enough with hopefully doubling 3x over the next 30 years I’d rather grow my brokerage account. Issue is that sweet sweet tax sheltering.
Trying to FIRE in ~30 months. Makes more sense to me to have that ~$20k be accessible. Open to any ideas about tax shelters though.
I'd do backdoor Roth and megaback door Roth if available. Then the contributions would be available while the growth would still be there.
So if you're looking to FIRE in 30 months, I assume you've got enough in taxable to last you for 59.5-your age accounting for health insurance, expenses, etc. If that's the case it probably doesn't matter much what you do, but might as well as take advantage of Roth while you can.
Yea unfortunately a lot of the strategies just don’t make much sense, or there’s very little reward for the perceived effort.
I could FIRE today at a 4% SWR but I’d like to drive it under 3% before I hang it up. Ofc I fucking hate work right now, so I might just saw screw it, find a side hustle, and call it quits at any moment.
I would definitely be at or below 3% if you are in your 30s or 40s. That's my target for retiring in 10-15 years in my early 50s.
I feel like paying off debt is the first priority, but I admittedly don’t know much about investing (and my parents paid for college )
The cut off is often around 3-4%, basically where you would expect the market to exceed the interest. But there is the added nicety of not being in debt.
Not being in debt is fucking rad and is worth way more than the dollars and cents. I don’t owe anyone shit besides mortgages on my investment properties and it feels amazing.
yeah that's why as of now i'm planning on doing the roth IRA then aggressively paying down my student loans each year
i will take all 3% and lower debt you'll give me
Depends on what it’s on imo
i'd take 3% debt on money I'm just parking in the stock market
You’d be losing your ass on that this year.
Especially if you didn’t dollar cost average
only need to come ahead at the end, inflation took a chunk off that decline too. i'll send you the papers for my loan.
I know low cost debt is how you use leverage but my own personal philosophy is keep debt if it’s an income producing asset otherwise fuck debt. But I’m always waiting for the other shoe to drop and the worst to happen so I’m prob not typical I guess. But the lack of stress over making monthly payments was a huge quality of life improvement for me
you should do plans that fit with your emotional risk proclivity
even if it's not optimized financially
Really quite amazing how we just can’t go like one week without some global supply chain issue. Now it’s protests in China.
What I wouldn’t give for no news for a couple months.
they’re doing a bit at this point. Simulation.
Just wait until the rail workers strike.
Love how easy it is to roll in and out of monthly CDs on Schwab, picked up 3.8% today.
Wait am I doing something wrong? You’re saying instead of cash I can just park it in a monthly CD for like .3% monthly? Never thought of this.
I assume you at least have your cash in a high yield savings account? I’m getting 3.5% on that right now. If the monthly CD thing was higher I might consider it but at least this way I have access without an early withdrawal penalty.
nah it’s just sitting in Schwab while I puss out and don’t but VOO with it
You may not be doing anything wrong but if you have cash and you don't plan on deploying it you may as well earn something instead of it just sitting there. In Schwab your CDs will show at the bottom of your portfolio, once they mature the money goes right back into your account. I buy them in blocks and just keep rolling them over until I find somewhere else I want to put the money. It's like two or three clicks to buy them.
Under the TRADE drop down click CDs, then click one month or six months or whatever you want (default is the one year), the best rates are automatically shuffled to the top and you hit buy.
Why not 4 or 5 or 6?
article talks about this!
but I know you're a deflation monetarist guy so it won't really land
It’s all just arbitrary nonsense. If 2% inflation is good, surely 4% is better. Especially when the natural progression of technology is for things to get cheaper over time…oh wait that doesn’t make any sense at all.
Plenty of accounts have called this out from miles away. If at first you don’t succeed, just change your 2% goal by increasing it by 50+%.
yeah i knew you had no interest in a genuine discussion
have a good night man
lol. Been talked about literally the whole year if you follow enough people. Pretty funny it’s hitting your radar now as some new brilliant concept.
thank you for agreeing
And lofuckingl at that article. Surely you can do better than this nonsense logic.
“The question is what rate of inflation leads to salience. A hint is given in a recent paper, which looks at Google searches for “inflation” as a function of the actual inflation rate. It found that, for the US, if inflation was around 3-4 per cent, people simply did not pay attention. Above 3-4 per cent, they did. Altogether, these arguments have led me to conclude that, while a higher inflation target is desirable, the right target for advanced economies such as the US might be closer to 3 per cent than our original 4 per cent proposal.”
yes behavioral economics being included in modeling is good
"how do humans actually respond to economic conditions" - an absurd field of inquiry
Inflation is a class war issue.
My mortgage is 3.25%, so I'm willing to settle for 4% inflation.
I don’t see this anywhere in the app. Guess I’ll have to get into the browser when I’m off the road later this week.
You should really read Everybody Lies if you doubt the utility of Google Search data.
They won’t notice high inflation until its 4% is a dubious justification for doubling what is already an arbitrary number. Is it 2% due to google search data? If not, why is it 2%? Why has the justification for 2% now changed to justify 4%?
We could skip all this nonsense if anyone was willing to admit that a handful of unelected old white guys aren’t smart enough to set the global price of money, whether relying on google search data (lol) or otherwise.
Im 99% sure this has to be done on the actual computer.
Yes. Savers and pensioners will get screwed, but folks with debt (mortgages etc) will benefit tremendously.
I've said it before but government debt is at such high levels the only realistic solution is to inflate or deflate away and inflating while keeping interest rates low is far more palatable than the deflationary way.
See this I agree with. No sense pretending that 4% is some new brilliant idea. Let's just be honest: the debt is so high that sustained levels of high inflation are probably the only palatable option.
But spare me the Fed "actually high inflation is great" puff pieces.