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Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.
Compensation doesn't equal cash
said everybody, before they started making double.
lifestyle creep is difficult to manage
does anyone have a good cash flow modeling app for retirees? New York Life stopped doing it for my parents and they desperately want to track that but I haven't seen a place where I can do it easily.
Might have to just spreadsheet it.
I know that eMoney Advisor sites used to have a great tool for that but it went away. I'm not sure if it just went away for me as a client or if it's out of the software all together.
it seems everybody is pay walling it. New York Life legit would do it and send them a copy every year before HQ told them to stop two years ago.
That sucks. It's very useful info.
GF put $5K into her traditional IRA for the 2022 contribution year. She exceeded the income limit to receive a tax deduction, so what is the play here? Leave it? Is this the first step for a backdoor Roth? I'm out of my lane here.
If we're married filing jointly, is it true that my wife can make deductible traditional IRA contributions even if I couldn't?
EDIT: Nm, ignore my previous post. I didn't see it was traditional. I think you can pull it out, but you might have to pay a penalty + taxes on it. If you leave it in, it's 6% a year tax on it I believe. Someone can correct me if I'm wrong.
First step in backdoor Roth imo
Don't think so. I think the limits are based on MAGI. So has to be <$116k MAGI between the two of you.
That makes sense. Schwab was feeding me some nonsense.
There’s not a 6% penalty leaving it alone, that only applies if you contribute to a Roth directly and aren’t eligible. In her case, if she’s in that income spot between 78k (where you can’t deduct traditional contributions) and 129k (start of Roth phase out), she can contribute directly to a Roth. Otherwise, it’s back door Roth time. These numbers are for 2022 tax year and have bumped up slightly for 2023. She could convert it to a Roth if she really wants to, but would owe tax on any income generated while it was in the traditional
my parents financial advisor melted down today as he realized the jig was up regarding taking advantage of them
in reference to going more aggressive because financially my parents are secure he said "why do you want to make more money"
brother you're a financial advisor what are we doing here
Is he a fiduciary? Out of curiosity what was he doing that you felt was taking advantage of them.
ehh it wasn't ALL his fault, my parents didn't have the financial knowledge to know better and are like obscenely conservative investors (and I'm a conservative investor). he put them in a bunch of annuities, got them new whole life policies when there was ZERO reason to do so and they were enormous policies for the stage of life he sold them to them. put them in high fee managed funds, etc. i've unraveled a lot of it over the last year but today was probably the true end.
no idea if hes a fiduciary
the treasury website compound interest calculator is so good
yea that’s trash good that you got them out.
honestly non fiduciary financial advisors shouldn’t even be allowed.
this is my folks (and my grandmother prior to her death) exactly. I need to talk to their guy. My parents (who were already comfortably retired then inherited a large six figure sum after my grandmother passed) have an absurd mish mosh of holdings through their guy. Then I saw what stocks/bonds/crap got passed to them and it was 10x worse.
On top of this my parents meet with him like quarterly and he never leaves them feeling great about their financial position. I ran the Monte Carlo simulators for them to try and convince them to be more aggressive for their grandkids (my nephews) sake and I cannot get through to them.
i was chromecasting my screen onto their tv to show them what the savings they'd get from going from a .9 fee fund to a .03 vanguard fund on similarly performing funds with the compounding calculator, what their whole life policy cash value would be in 10 years if they surrendered them (more than the death benefit), etc etc. should have done it a long time ago cause i think it finally sank in how much money they were leaving on the table.
my MIL has much more money than my parents and based on my cursory knowledge of her and her advisor I can't even imagine how disastrous her situation is. she asked my advice like 6 years ago and I told her broadly invested index funds benchmarking the total market and she responded "but that's so boring"
she also opened an account with whoever IPO'd Rivian so she could buy it
Yep their guy charges them .6% a year to (now, after prodding my mom to ask him about ETF’s) put them in Vanguard funds.
I at least had my dad negotiate him from .9 to .6 but i should have just had them yank it. If they had at least been been sound advice or pointed towards the right investments that’s one thing. But to have the absurd portfolio they do AND pay someone 10k+ a year to “manage” is is absurd.
This would at least be cheaper: https://investor.vanguard.com/advice/personal-financial-advisor
definitely doesn’t sound like a fiduciary
i had been pushing my parents to do this for a year to get everything settled, especially because they do cash flow modeling for you and the fee is very low
seems like the best option for folks who don't want to do it all solo
Side note but 0.6% AUM fee is actually one of the lower ones I’ve ever seen for a CFP
Only reason I knew .6 was possible was 4-5 years ago a friend started at Edward Jones and that’s what his proposal to me had that as his fee. No idea if that was some starter rate or typical, but I told my dad to ask their advisor if he could do that instead of .9 and he agreed.
I should run the math on what that will save them over the next 25 years, probably well north of $250k. My nephews will owe me a beer or two when they get that money
I feel like every financial advisor I've ever met with instantly tried to get me into a whole life policy. Maybe they weren't all wrong, but I never went back to any of them.
I don’t understand why the market spiked today at first on his words. He was back to his hawkish self.
theres no real logic to any day to day movements 99.999% of the time
I'm starting to build a Roth IRA through Fidelity. I wish I'd started one decades ago, but better late than never. Planning to add an S&P 500 index to my portfolio, and have been looking at SPY, IVV, VFIAX, and FXAIX. Was wondering if Fidelity gives you a discount on expense/management fees for using them as a brokerage? Otherwise, I'm leaning toward IVV given the relatively lower fees compared to SPY.
FXAIX expense ratio is .015%. Half of IVV. If you're going to use Fidelity I'd just go with that.
Also depends if you want to hold an ETF or a mutual fund I suppose.
Hadn’t even considered that, tbh. Leaning towards an etf, but now I’m looking up the differences. Seems like the big difference is you can trade ETFs like stocks, whereas you have to wait until the end of the trading day to trade a mutual fund? Have usually just put money into 401K and other 401K like accounts (and target date funds in particular, but am wanting to take on a more active roll).
If it’s a long term hold, FXAIX is perfectly fine. I have fidelity and that’s what I use for my SEP
My annual raise just went into effect so I’m upping my 401k contributions. Also taking a look at my investment direction. The majority of my contributions go into vanguard funds with very low expense ratios (0.01-0.05). These cover the s&p 500, small caps and international. I have some smaller contributions going into two blackrock funds that cover slightly different segments of the market but with higher expense ratios (0.33). Should I even fuck with those or just go all in on the vanguard funds with the lowest expenses?
Vanguard with the lowest expenses. Sp500/small cap at 85:15 is a good approximation of the total stock market.
Don't use a person who sells insurance products as a financial advisor. That's all they'll put you in.
New Griddle and Pellet line comes out 03/01. Starting to hit the fan groups now. Personally, I don't think they'll succeed with the griddle but if they do it's a pretty hefty upside category right now and there is no #2 brand. Interested to see how it does
Question for fellow Bogglehead types. Obviously this won’t apply to 401k, HSA, IRA accounts. But I have a certain amount consistently going into my taxable brokerage account.
Is there a particular strategy on reallocating (not sure if right term)? Right now I’m 100% into a total market ETF with Schwab.
1) At what point do you start introducing bonds or breaking it up to other investments?
2) Is it normal to just do this all at once and for one year take a large (hopefully) capital gains tax? Or better to start doing this over multiple years when I hit a certain age?
I'm 38 and follow a 90-10 stocks-bonds setup with my allocation. I'm also lazy and only rebalance once a year at this point. You should treat your entire retirement portfolio (401k, hsa, ira, brokerage) as a single entity as far as allocation is concerned. So I only keep total stock market in my brokerage account and rebalance my bond allocation from my 401k to get to 10% overall. That way, there is no tax issue since I'm not having to rebalance out of my taxable account. Hope this helps answer your question.
This blog has a free spreadsheet to help track it across all retirement accounts at the bottom of the page: https://www.physicianonfire.com/three-fund-portfolio-numerous-accounts/
I haven't googled it yet, so kind of lazy.
I just left my first job and want to roll over my 401K to my vanguard account. Can I then convert some of that to my Roth IRA later, or does it have to be during the rollover transaction?
I already filed taxes this year.
Doubt this changes the Fed’s plans much but Powell saying “disinflation” a bunch the past week seems pretty silly.
i mean, we still trending down