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So this is what I’d do if I wanted a portfolio of 100% US stocks without any redundancy/overlap (assuming you don’t have access to a total US market fund):
If I was enrolling in this plan with the options you listed, I’d go:
No way to answer that. I personally would invest most of it and do it myself but I do use services which are basically FAs. That said there’s no way to answer the rest without knowing your life. 100k just in checking is not good, especially if it’s been there a while. Just 2020 alone, an index fund would have you at 120k.
Give $0 to an FA. Use this site and others (bogleheads a good one) if you need advice
Never heard of Bogleheads, thanks.
There is a 'first time poster' summary format at bogleheads. Post your situation over there and you'll get many responses / feedback / advice, all very smart and seasoned advice, and all for free. It's a no brainer. I can almost guarantee you'll come away with something more than before you posted there
You're probably right.
You've been talking about this for a couple of years now it seems. I'd really like to see you follow through on this.
I'm trying this now (well, pre-retirement) so let me know if you have any questions or want to discuss.
Wife and I are approaching this ballpark..close enough to discuss anyways.
. Not as sophisticated as most in here.
Listen, we all still love you. We're just not paying for your services.I'm trying this now (well, pre-retirement) so let me know if you have any questions for want to discuss.
I've learned to mostly ignore the anti-FA sentiment on here.
You mean you're not paying for THOSE services...Listen, we all still love you. We're just not paying for your services.
what courses did you take?I'm trying this now (well, pre-retirement) so let me know if you have any questions or want to discuss.
I've learned to mostly ignore the anti-FA sentiment on here.
I took the SIE first, then Series 7 and Series 66. Have taken the SIE exam since I didn't need to work for the FA company. But now I'm waiting until I finish learning the 66 and then will join the company and study for the exams and take them. I might need to take an insurance course as well since sometimes annuities are used.
A Roth IRA is an individual retirement account to which you contribute after-tax dollars that upon retirement you can withdraw tax free. There are finer details and I encourage reading up on Roth vs traditional IRAs. Link
https://www.investopedia.com/terms/r/rothira.asp
I don't know your circumstances, but unless you have no room to cut expenses if needed, 30x should be plenty.
Need more specificity here. Do you mean you've already contributed the maximum amount for 2021 or have your payroll set to take out the right amount you max for the year?
The latter. I'll be doing the max this year in equal distributions throughout the year and I'm thinking of switching to the roth as I believe its the best use of the additional money that I will have available.
Gotcha.
Probably still some math involved, but wanted to throw out an example to make sure we're on the same page. Say I have 25k pre-tax income (19.5 post tax income); the math probably doesn't add up exactly, but just trying to keep it simple. I can go all traditional which leaves me with 5.5k pre-tax (25k-19.5k); say 4k post tax. Now I have no where to put that 4k other than a trading account which means I get taxed at the very least on dividend distributions as well as earnings when I start withdrawing during retirement. Or I can take the whole 19.5k post-tax income and put it into a roth 401k and now its all tax free going forward. I know those roth/traditional comparisons are usually fairly close. Without doing the math, I thought that this wrinkle would make the roth an obvious choice, but maybe its not as obvious as I thought. As an added benefit, that additional roth money gives you a lot more flexibility to lower your earned income during retirement thus potentially reducing SS taxes and/or making you eligible for obamacare subsidies (pre-medicare retirement years) so it would be nice to have a big chunk of that.
The flexibility makes for a fair case if otherwise it's close (and it probably is).
Why is that? I could argue that you that might be way easier to do. For a traditional IRA, you can argue that every dollar put in or gained will get hit with a tax eventually. For a Roth IRA, some congressmen from NY on a tax increase bill could argue that the gains never get taxed and so a 10% levy isn’t a bad way to pay for stimulus bill 56.-OZ- said:
I'm in the 24% individual bracket if that changes anything. I'd definitely be in the 22% bracket in retirement except if I chose to be in a lower bracket by leveraging non-taxable income.
The political fall out of taxing Roth accounts would be huge. I'm not saying it absolutely won't happen but it would be political suicide and impact the relatively less wealthy or high income individuals.
There's no definites with future tax rates. (You probably just mean the current bracket, but that's the point and advantage of the Roth, we don't know future tax rates)
Possibly, just saying that if the government is trying to find places to raise taxes that I wouldn’t say it’s off limits. Do I think it will happen? No, but slapping on a 5% or 10% tax on gains could be pretty easy to do especially if you see “wealth” type taxes like Biden wants on capital gains. He has a plan with incomes over $1M to pay income tax rates on long term capital gains. If you have a Roth over $500k, 10% on money withdrawn over the initial investments.
Yup, i always just plan for the current. I really dont try and predict the future in terms of whats gonna change as far as the government. I like the roth bc the options it gives u.
Ish? I am aware of it and looked at this in the past but felt that for some reason that going brokerage was better than that. Maybe the flexibility? I tend to value flexibility fairly high (potentially too high) but will look at it again.
Have been looking into that if the wife retires early.wilked said:
Good luck.
Where rates are right now and what future fed policy looks like I doubt you find anything good out there.
