Anyone who employs the covered call strategy for income/hedging have a good resource to read up on it? Curious to better understand if I could be making more from my portfolio by using it.
Anyone have experience with 529 plans? Looking to open one in the near future and doing some research. Seems like Michigan or Utah may be the best options from my initial research.
I’m using my states 529 just for the state tax deduction since it’s so damn high. Options aren’t great but it the benefit in the backend I like.
That makes sense. With Florida not having a state tax I don’t get that benefit so seems to me like I should focus on lower fees but want to make sure I’m not missing anything.
We don't get a state tax deduction so I've always used Utah's. It's pretty great. Cheap with a ton of options.
I live in TN so don’t get any state tax benefits. I use Utah’s, it’s got some cheap vanguard funds and has been good. It always tends to rank as one of the best state plans, but I know the list fluctuates so google may help find the best options as of 2023.
Plus it's fun to use Utah's so you can explain to people that don't understand how it works that you use Utah's because you want both your teenage daughters to become sister wives.
We just opened a Roth for our 14 year old as she started her first job. Thinking of splitting money between and index fund, mutual, and 25% for her to pick stocks. Any suggestions for getting her started?
I have one for my kids. Good way to grow your money tax free. One downside (with caveat below) is that you have to pay tax on gain plus penalties if you don't end up using it for qualified education expenses (kid doesn't go to college, gets a scholarship, future legislations reducing college cost, etc.). I understand recent legislation now allows you to rollover unused 529 savings (subject to a cap) into an IRA for the beneficiaries. One catch is that the 529 and IRA must both be for the same named beneficiary. B/c 529 savings generally can be moved from one beneficiary's to another, 529 sponsors typically just open the account in the name of one kid with the understanding that it will be used for all your kids. I haven't looked into this, but one thought I had when i saw the new legislation is that you may want to make sure you have a separate 529 account for each named beneficiary if you want to have the ability to roll their respective savings into their own IRAs.
One correction: if your kid gets a scholarship, you can take money out of the 529 equal to the scholarship amount without paying any penalty. You do owe taxes on the gains though still.
Think there is also a certain amount of time the account needs to be active/funded before you can roll over so the earlier you start it the better
I have about 25k that I'm considering putting into VTI & VOO, but I already have a bunch in those two as well as VEA. Any other recommendations for solid ETFs?
I also have SCHB, SCHD, and SCHG as well as ITOT. D for high dividend yield and stability but lower growth, G for low dividend yield and higher growth, B for a mixture. ITOT is total market like SCHB. Decent dividend and growth but neither the highest dividend nor the highest growth. All have low expense ratios.
My 16yo has his all in VOO. (He has a UTMA that he plays with blue chips, but in the Roth it’s only VOO.)
I get what it is, I guess I’m not understanding the appeal. It’s an interesting concept but can’t see the eventual return outpacing growth and/or dividend growth ETFs.
Tastytrades is what I used to learn. I sell 45dte calls for OOM 20% above strike selling (“buying”) on 21 DTE. nice steady profits whenever I use it. But I did get crushed twice or rather missed out on gains. Once in 2020 on AMD and another time couple months back when I had CC on Facebook at $165. I read an article once that said on a long enough timeline you’re breaking even between buy and hold SPY and selling 20% OOM 45 dte calls on SPY. So bunch of work for nothing. However if steady, smooth income flow appeals to you, look into tasty trades.
Are you funding it for her or is she just putting a percentage of her income towards it? My kids are 13 and 10 so thinking of setting this up whenever they start earning income. *edit* sorry to answer your question… why pick stocks? something she is interested in? i’d just stick with just funds
She funds based on her income from her job. We also set it up so her monthly allowance can used towards it. funds are the primary long term investment but the idea with stocks is to get her something for her to be involved in. Instead of just being passive.
gotcha. do many people buy individual stocks in their IRA? what if you setup both the Roth IRA and a brokerage account and setup a rule like 20% income goes to Roth IRA (with a nice dad match) and 5% goes to brokerage account to use for purchasing individual stocks. May still be “building bad habits” Lyrtch if you consider individual stock gambling a bad habit - but at least it’s not in the IRA account. Saw a nice sounding child investment account at Fidelity but I have no experience with it. No hate on your plan though appreciate you sharing this, I’d like to do something similar when my kids are a little older.
I say let these kids live a little and fuck around with some stocks they like with at least a portion of their money
Anyone have a good tool or template for putting together a monthly budget? I’m slowly talking myself into exploring the option of buying a new house. And want to make sure I’m not setting myself up for disaster. I’m pretty frugal so anytime there’s a potential for a new expense I feel like I have to convince myself multiple ways that it’s OK. I keep reading a general rule should be 28% of your gross monthly income but that seems way too high. I’m not in a huge hurry due to rates and what not, but we’ve found a couple builders that appear to be within budget, so I figure I should at least start considering everything even if it’s not until 2024.
YNAB is a popular tool. There's the 50/30/20 one. 50% for needs, 30% for wants and 20% for saving or paying off debt.
I guess to follow up on that, when I bought my current house my base income was like $30K lower. I’ve also paid off my student loans in that timeframe so the only debt I have right now is my car, but I’ve made double payments on that so it’s down to like $12K. So it’s kind of messing with my mind to realize I could probably afford to upgrade. I’m hoping rates decline even a little bit by the time I’m ready to decide, but I’m also getting sick of living in (aka maintaining/worrying about) a house that gives me more anxiety than anything else lol I’ll probably feel a little more at ease once I talk to a realtor and figure out a realistic sales price. I’m low balling an estimate right now and accounting for 10% of that going to commission/fees which might be high too.
I agree with some of what’s being said here but I don’t know how you can say zero notice. Didnt the CFO kill himself over this?