I just checked today and my Edward Jones 401K is up 17.4% from one year ago. Most of the investments are in growth stocks. Ed
No politics- How’s your 401K doing for you?
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Originally Posted by csandste
Originally Posted by Wolf359
Originally Posted by Ws6
This thread makes me want to figure out how to get a 401K. Can you get one without an employer being a part of it?
You don't need an employer to save money. Most don't do that much of a match anyway maybe 3-5% and you're limited by the funds that they allow.
But for normal investing, first you max out your 401k, then your IRA/Roth IRA if you can depending on your tax bracket, then regular investing in a cash account. The sooner you do it, the more time is on your side.
Take an employer match on your 401/403/457 then do a Roth to the max allowed. You can over save in a tax deferred plan and get slammed in retirement. See my earlier post about having my income taxes double in retirement.
And you need an employer who offers a 401K. If they don't match just fund your Roth to the maximum, then pay capital gains on regular investments.
I have no employer options. I do get to deduct the $3800/year I pay for insurance through my employer from my income, though, so that's nice, but it's money lost, not invested. Is it still worth it, or should I just continue to buy realestate?
Originally Posted by Wolf359
Originally Posted by Ws6
This thread makes me want to figure out how to get a 401K. Can you get one without an employer being a part of it?
You don't need an employer to save money. Most don't do that much of a match anyway maybe 3-5% and you're limited by the funds that they allow.
But for normal investing, first you max out your 401k, then your IRA/Roth IRA if you can depending on your tax bracket, then regular investing in a cash account. The sooner you do it, the more time is on your side.
Take an employer match on your 401/403/457 then do a Roth to the max allowed. You can over save in a tax deferred plan and get slammed in retirement. See my earlier post about having my income taxes double in retirement.
And you need an employer who offers a 401K. If they don't match just fund your Roth to the maximum, then pay capital gains on regular investments.
I have no employer options. I do get to deduct the $3800/year I pay for insurance through my employer from my income, though, so that's nice, but it's money lost, not invested. Is it still worth it, or should I just continue to buy realestate?
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Originally Posted by Wolf359
Originally Posted by javacontour
Originally Posted by LoneRanger
I'm in a 457b not a 401k so can't comment.
Technically I don't have a 401k, rolled that over into a Fidelity IRA years ago. I just do IRA/Roth IRA investing along with the cash account. Too bad the old stock market thread got deleted.
Yeah, me too now that I think about it. 80% in rollover IRA and 20% in a Brokerage.
I'm just sweating to maintain what's in there though 2021 without some big whoopsie-doodle again
Originally Posted by javacontour
Originally Posted by LoneRanger
I'm in a 457b not a 401k so can't comment.
Technically I don't have a 401k, rolled that over into a Fidelity IRA years ago. I just do IRA/Roth IRA investing along with the cash account. Too bad the old stock market thread got deleted.
Yeah, me too now that I think about it. 80% in rollover IRA and 20% in a Brokerage.
I'm just sweating to maintain what's in there though 2021 without some big whoopsie-doodle again
Originally Posted by Ws6
Originally Posted by csandste
Originally Posted by Wolf359
Originally Posted by Ws6
This thread makes me want to figure out how to get a 401K. Can you get one without an employer being a part of it?
You don't need an employer to save money. Most don't do that much of a match anyway maybe 3-5% and you're limited by the funds that they allow.
But for normal investing, first you max out your 401k, then your IRA/Roth IRA if you can depending on your tax bracket, then regular investing in a cash account. The sooner you do it, the more time is on your side.
Take an employer match on your 401/403/457 then do a Roth to the max allowed. You can over save in a tax deferred plan and get slammed in retirement. See my earlier post about having my income taxes double in retirement.
And you need an employer who offers a 401K. If they don't match just fund your Roth to the maximum, then pay capital gains on regular investments.
I have no employer options. I do get to deduct the $3800/year I pay for insurance through my employer from my income, though, so that's nice, but it's money lost, not invested. Is it still worth it, or should I just continue to buy realestate?
It's worth it if you pick the right funds and if the stock market maintains it's current pace. As the saying goes, past performance is no guarantee of future results, but if you've been betting that way for the last 10+ years, it's been paying off.
Yes it's worth it to do the max in a Roth IRA if you don't really need the money. You can take it out after 5 years if needed and just pay taxes unless you're over 59.5, in which case it's tax free. Tax free growth basically increases your total return. When you get a 30% return, if you have to pay 25% in taxes, that's really only a 22.5% return. So if you did 6k and got 30%, you'd make $1800 and in a regular account that's $450 you'd have to pay in taxes if you're in the 25% bracket.
You'd have to do the math if it's worth it vs real estate, it all depends on the real estate deal.
Originally Posted by csandste
Originally Posted by Wolf359
Originally Posted by Ws6
This thread makes me want to figure out how to get a 401K. Can you get one without an employer being a part of it?
You don't need an employer to save money. Most don't do that much of a match anyway maybe 3-5% and you're limited by the funds that they allow.
But for normal investing, first you max out your 401k, then your IRA/Roth IRA if you can depending on your tax bracket, then regular investing in a cash account. The sooner you do it, the more time is on your side.
Take an employer match on your 401/403/457 then do a Roth to the max allowed. You can over save in a tax deferred plan and get slammed in retirement. See my earlier post about having my income taxes double in retirement.
And you need an employer who offers a 401K. If they don't match just fund your Roth to the maximum, then pay capital gains on regular investments.
I have no employer options. I do get to deduct the $3800/year I pay for insurance through my employer from my income, though, so that's nice, but it's money lost, not invested. Is it still worth it, or should I just continue to buy realestate?
It's worth it if you pick the right funds and if the stock market maintains it's current pace. As the saying goes, past performance is no guarantee of future results, but if you've been betting that way for the last 10+ years, it's been paying off.
Yes it's worth it to do the max in a Roth IRA if you don't really need the money. You can take it out after 5 years if needed and just pay taxes unless you're over 59.5, in which case it's tax free. Tax free growth basically increases your total return. When you get a 30% return, if you have to pay 25% in taxes, that's really only a 22.5% return. So if you did 6k and got 30%, you'd make $1800 and in a regular account that's $450 you'd have to pay in taxes if you're in the 25% bracket.
You'd have to do the math if it's worth it vs real estate, it all depends on the real estate deal.
![[Linked Image]](https://www.bobistheoilguy.com/forums/attachments/usergals/2019/12/full-84637-39404-e6c4fd9c_1b37_4b2d_9754_35dfa4f2c9ea.png "[Linked Image]")
Originally Posted by Shannow
Was doing great...looks likeit'sonlyhalfgreat now...
What is holding the Australian stock market back lately?
Was doing great...looks likeit'sonlyhalfgreat now...
What is holding the Australian stock market back lately?
I'm doing very well and for this I'm greatful.
Originally Posted by P10crew
Good for you Dallas , my son is now in vanguard.
Thanks and a clarification I have been a Scott Burns devotee "Couch Potato" portfolio. Once retired I was directed to be ultraconservative by VG Advisor.
Not bad life of a kid who came to this great country on F1 visa and at one time had 0.11 Cents balance in bank, after paying International student fee and used books. I was dirt poor in college, I didn't had money to go to Commencement, so I just had the college mail my last transcript and Degree. Bottom line it can be done whatever your goals are and to Pay Yourself First.
Good for you Dallas , my son is now in vanguard.
Thanks and a clarification I have been a Scott Burns devotee "Couch Potato" portfolio. Once retired I was directed to be ultraconservative by VG Advisor.
Not bad life of a kid who came to this great country on F1 visa and at one time had 0.11 Cents balance in bank, after paying International student fee and used books. I was dirt poor in college, I didn't had money to go to Commencement, so I just had the college mail my last transcript and Degree. Bottom line it can be done whatever your goals are and to Pay Yourself First.
Originally Posted by P10crew
One thing I'm still unclear on. When I start doing my monthly disbursements isn't the IRS forcing us to disperse the Roth balance first?
There's no minimum withdrawal for Roth IRAs. That's just for regular IRAs. You can also just ask the fund holding the IRA to just calculate the minimum and send you a check by the end of the year.
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions
One thing I'm still unclear on. When I start doing my monthly disbursements isn't the IRS forcing us to disperse the Roth balance first?
There's no minimum withdrawal for Roth IRAs. That's just for regular IRAs. You can also just ask the fund holding the IRA to just calculate the minimum and send you a check by the end of the year.
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions
Originally Posted by madRiver
Originally Posted by Mr Nice
Wolf,
It depends on you age if you're willing to lose 55% of your IRA balance (your personal story).
If you are 45 years old that's not really a problem.... If that happens at 65 years old BIG PROBLEM.
Again, any investment game plan depends on your age and risk tolerance.
In the Dot Com explosion I lost about $60K and learned my lesson the hard way. I earned an MBA in DUMB from the school of hard knocks. ...¤ ...± 🤣. That's a Dave Ramsey joke.
You do t lose anything till you withdraw money. Age 65 you can still take on risk as you'll live 20 more years likely and won't pull it all at once.
I rarely look at balance statement.
Just trying to say you have to shelter money as you approach retirement age and not rely 100% on the stock market. Most 65 year old folks don't have time to recoup their losses if they only have Social Security to count on for living expenses.
You would be surprised at how poor of a job the average American adult (not Wolf) does at planning for retirement. They are so tight on money from bad financial decisions they made for decades leading up to retirement age.
Originally Posted by Mr Nice
Wolf,
It depends on you age if you're willing to lose 55% of your IRA balance (your personal story).
If you are 45 years old that's not really a problem.... If that happens at 65 years old BIG PROBLEM.
Again, any investment game plan depends on your age and risk tolerance.
In the Dot Com explosion I lost about $60K and learned my lesson the hard way. I earned an MBA in DUMB from the school of hard knocks. ...¤ ...± 🤣. That's a Dave Ramsey joke.
You do t lose anything till you withdraw money. Age 65 you can still take on risk as you'll live 20 more years likely and won't pull it all at once.
I rarely look at balance statement.
Just trying to say you have to shelter money as you approach retirement age and not rely 100% on the stock market. Most 65 year old folks don't have time to recoup their losses if they only have Social Security to count on for living expenses.
You would be surprised at how poor of a job the average American adult (not Wolf) does at planning for retirement. They are so tight on money from bad financial decisions they made for decades leading up to retirement age.
Originally Posted by Mr Nice
Originally Posted by madRiver
Originally Posted by Mr Nice
Wolf,
It depends on you age if you're willing to lose 55% of your IRA balance (your personal story).
If you are 45 years old that's not really a problem.... If that happens at 65 years old BIG PROBLEM.
Again, any investment game plan depends on your age and risk tolerance.
In the Dot Com explosion I lost about $60K and learned my lesson the hard way. I earned an MBA in DUMB from the school of hard knocks. ...¤ ...± 🤣. That's a Dave Ramsey joke.
You do t lose anything till you withdraw money. Age 65 you can still take on risk as you'll live 20 more years likely and won't pull it all at once.
I rarely look at balance statement.
Just trying to say you have to shelter money as you approach retirement age and not rely 100% on the stock market. Most 65 year old folks don't have time to recoup their losses if they only have Social Security to count on for living expenses.
You would be surprised at how poor of a job the average American adult (not Wolf) does at planning for retirement. They are so tight on money from bad financial decisions they made for decades leading up to retirement age.
My plan is just to bleed assets off until I die.
Originally Posted by madRiver
Originally Posted by Mr Nice
Wolf,
It depends on you age if you're willing to lose 55% of your IRA balance (your personal story).
If you are 45 years old that's not really a problem.... If that happens at 65 years old BIG PROBLEM.
Again, any investment game plan depends on your age and risk tolerance.
In the Dot Com explosion I lost about $60K and learned my lesson the hard way. I earned an MBA in DUMB from the school of hard knocks. ...¤ ...± 🤣. That's a Dave Ramsey joke.
You do t lose anything till you withdraw money. Age 65 you can still take on risk as you'll live 20 more years likely and won't pull it all at once.
I rarely look at balance statement.
Just trying to say you have to shelter money as you approach retirement age and not rely 100% on the stock market. Most 65 year old folks don't have time to recoup their losses if they only have Social Security to count on for living expenses.
You would be surprised at how poor of a job the average American adult (not Wolf) does at planning for retirement. They are so tight on money from bad financial decisions they made for decades leading up to retirement age.
My plan is just to bleed assets off until I die.
Originally Posted by DallasTexas
I have been a Scott Burns devotee "Couch Potato" portfolio.
It's funny, people bad talk the guy.... but don't come up with a better way.
The last 10 years or so 40% bonds is a little much.
But it is the "Couch Potato" way and there are no worries doing it.
I got where I am doing it also.
I have been a Scott Burns devotee "Couch Potato" portfolio.
It's funny, people bad talk the guy.... but don't come up with a better way.
The last 10 years or so 40% bonds is a little much.
But it is the "Couch Potato" way and there are no worries doing it.
I got where I am doing it also.
Originally Posted by KJSmith
Originally Posted by DallasTexas
I have been a Scott Burns devotee "Couch Potato" portfolio.
It's funny, people bad talk the guy.... but don't come up with a better way.
The last 10 years or so 40% bonds is a little much.
But it is the "Couch Potato" way and there are no worries doing it.
I got where I am doing it also.
I don't even know who he is. You don't make any money just telling people to buy the S&P 500.
Years ago I remember telling one of the secretaries who didn't know what to do with her 401k plan to stick it in the S&P 500 fund as she just had it in a money market account. It had a good year and I think she made over 5k in the fund. She told me that at the end of the year and just thanked me for the tip.
I gave up on bond funds years ago. They were supposed to be good when the market was down, but when the market was down they were also down and of course when the market was up, it wasn't up as much so they were kinda pointless for me. And the market has been up a lot more than it's been down.
Originally Posted by DallasTexas
I have been a Scott Burns devotee "Couch Potato" portfolio.
It's funny, people bad talk the guy.... but don't come up with a better way.
The last 10 years or so 40% bonds is a little much.
But it is the "Couch Potato" way and there are no worries doing it.
I got where I am doing it also.
I don't even know who he is. You don't make any money just telling people to buy the S&P 500.
Years ago I remember telling one of the secretaries who didn't know what to do with her 401k plan to stick it in the S&P 500 fund as she just had it in a money market account. It had a good year and I think she made over 5k in the fund. She told me that at the end of the year and just thanked me for the tip.
I gave up on bond funds years ago. They were supposed to be good when the market was down, but when the market was down they were also down and of course when the market was up, it wasn't up as much so they were kinda pointless for me. And the market has been up a lot more than it's been down.
My 403b is doing well. I am in the pre-retirement phase of moving to less risky, lower earning allocations. My YTD is about 11%. I am a bit concerned that a readjustment might happen right when I am thinking about retiring in the next few years, but what can a person do? I'm enjoying my career the most I ever have and it would be no problem to work a few more years if needed. I am comfortable having no concrete plans currently - just go with the flow like when I was in my 20's, somewhat fearless, but now with more wisdom.
Things I would have done different:
- in my 20's thru 40's (maybe 50's) I would have had my allocations a bit more riskier/higher earning level. I was a bit too conservative, especially in my 20's and 30's.
- Like many above, I should have started my Roth IRA contributions sooner.
I have the choice of either TIAA-CREF or Fidelity for my 403b. I have no regrets staying with TIAA-CREF. Both are excellent, with similar cost ratios for 403b's. Both have pros and cons that can offset each other. My take is that Fidelity can earn more IF you actively participate in choices and management. I meet with my TIAA advisor 1 or 2 times a year to assess and adjust my allocations and it seems to be working well. Decent earnings and relatively safe.
I am in the process of learning how to handle my retirement money management. Maybe I will start a new thread.
Things I would have done different:
- in my 20's thru 40's (maybe 50's) I would have had my allocations a bit more riskier/higher earning level. I was a bit too conservative, especially in my 20's and 30's.
- Like many above, I should have started my Roth IRA contributions sooner.
I have the choice of either TIAA-CREF or Fidelity for my 403b. I have no regrets staying with TIAA-CREF. Both are excellent, with similar cost ratios for 403b's. Both have pros and cons that can offset each other. My take is that Fidelity can earn more IF you actively participate in choices and management. I meet with my TIAA advisor 1 or 2 times a year to assess and adjust my allocations and it seems to be working well. Decent earnings and relatively safe.
I am in the process of learning how to handle my retirement money management. Maybe I will start a new thread.
Originally Posted by Mr Nice
Just trying to say you have to shelter money as you approach retirement age and not rely 100% on the stock market. Most 65 year old folks don't have time to recoup their losses if they only have Social Security to count on for living expenses.
You would be surprised at how poor of a job the average American adult (not Wolf) does at planning for retirement. They are so tight on money from bad financial decisions they made for decades leading up to retirement age.
This is perhaps the best advice in this entire post.
My best advice is start young. Start now. Pay yourself first.
If you are lucky, your biggest problem will be what to do with all your excess portfolio.
As Mr. Nice points out, the majority of people realize too late their decisions were short term; resulting in a poor financial position once they are no longer working.
I wish you luck. Unfortunately, depending on luck is a lousy strategy.
Just trying to say you have to shelter money as you approach retirement age and not rely 100% on the stock market. Most 65 year old folks don't have time to recoup their losses if they only have Social Security to count on for living expenses.
You would be surprised at how poor of a job the average American adult (not Wolf) does at planning for retirement. They are so tight on money from bad financial decisions they made for decades leading up to retirement age.
This is perhaps the best advice in this entire post.
My best advice is start young. Start now. Pay yourself first.
If you are lucky, your biggest problem will be what to do with all your excess portfolio.
As Mr. Nice points out, the majority of people realize too late their decisions were short term; resulting in a poor financial position once they are no longer working.
I wish you luck. Unfortunately, depending on luck is a lousy strategy.
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For those who don't know, as I remember it:
Couch Potato method is 60% in a fund that tracks the S&P and 40% in a safe bond fund.
Leave it alone, rebalance when it hits 70% stock....
Sometimes its hard to find a fund that tracks the S&P so you make do with a diversified fund (or 2).
Couch Potato method is 60% in a fund that tracks the S&P and 40% in a safe bond fund.
Leave it alone, rebalance when it hits 70% stock....
Sometimes its hard to find a fund that tracks the S&P so you make do with a diversified fund (or 2).
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