Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by UNC41
I read the other day that 45% of Boomers do not have anything saved for retirement. While the basic principles for building wealth may have not changed significantly, it's definitely worthwhile to make sure Millennials understand those principles so they are not in the position so many Boomers are.
I'm interested to see how this plays out over the next few decades. SS and Medicare will not be enough for most of these folks. They can try to keep working, but with coming automation and ageism in hiring it could be very dire straights for some. If it gets really bad will there be some form of government intervention?
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by UNC41
I read the other day that 45% of Boomers do not have anything saved for retirement. While the basic principles for building wealth may have not changed significantly, it's definitely worthwhile to make sure Millennials understand those principles so they are not in the position so many Boomers are.
Yes, for sure. It seems like every other month, I read another article about how less than 50% of people can get ahold of $1,000 in a pinch.
In a sense, it's kind of like losing weight. We all "know" the recipe to do it, we just don't always have the self-discipline to stay the course.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by Route_2
I'm interested to see how this plays out over the next few decades. SS and Medicare will not be enough for most of these folks. They can try to keep working, but with coming automation and ageism in hiring it could be very dire straights for some. If it gets really bad will there be some form of government intervention?
Was thinking about this last night. The whole potential upcoming retirement crisis and student loan crisis haven't necessarily gone away.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by Route_2
I'm interested to see how this plays out over the next few decades. SS and Medicare will not be enough for most of these folks. They can try to keep working, but with coming automation and ageism in hiring it could be very dire straights for some. If it gets really bad will there be some form of government intervention?
I am interested as well. We have far too many people approaching a typical retirement age with nowhere near enough money to retire on.
Quote:
Originally Posted by rconverse
Yes, for sure. It seems like every other month, I read another article about how less than 50% of people can get ahold of $1,000 in a pinch.
In a sense, it's kind of like losing weight. We all "know" the recipe to do it, we just don't always have the self-discipline to stay the course.
I don't agree that the majority of people are knowledgable about what it will take to have enough saved to retire on. I would be surprised if more than 50% of people understood the importance of compound interest.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by scrock25
Is this like, not a thing or something?
I was 21 when I graduated college and got my first job, signed up for my 401k first day on the job - they matched 100% up to 6%.
People that don't sign up for their 401k at the first opportunity are morons.
I would say putting away 12% towards retirement among twentysomethings (and hell, even folks in their 30s and 40s) is pretty rare. I'm investing 10% of my gross income right now at age 31, but from age 23-29 I was only doing 4%.
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The Investment Thread (help with savings, stocks, retirement funds, etc.)
I’ve been maxing 403b since 2017. My first few months in 2016 I just matched what my employer gives me (employer doesn’t match, just hands me 8%).
My 403b has made back what I lost in December and then some so happy there. I’ll have my Roth maxed out next week.
When I total all my savings, checking, and retirement accounts, I have over 100% years salary possible at age 29 years and 9 months. Eliminating my debt has literally turned all I have into net worth. And it’s amazing to see it grow when that expense isn’t there each month.
To the 23 yo, I think you’ll be in better position than me at age 29. I know nothing about the nitty gritty investment side—meeting with a different professional soon—but I think by sheer numbers you’ll be in a better relative position than me. Good work
And thanks to all in the this thread. Just the way you talk and make suggestions for priority really solidified my mindset and influenced my diligence
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Quote:
Originally Posted by efraser77
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Quote:
Originally Posted by Prime Minister
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Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Bought the Intelligent Investor last week. Can't wait to dive in.
__________________ "I've been to a lot of parties here in Atlanta, and I've uh been to a lot of big parties here, but I think this might be the biggest one I've been to in Atlanta" - DJM 9/8/07
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Does anyone have recommendations on sites, tools or otherwise that can help in choosing funds in a 401(k)? I have been looking at my employer 401(k) and I definitely have some re-allocating to do. I have looked at ALL the articles and tools for how much I should allocate stocks vs bonds but now I'm debating which specific funds available to me to select.
How much weight should I give to a fund's annual operating expenses? For stock funds, I don't have many to choose from and they are starkly different in terms of expenses. My 401(k) is managed by Vanguard and they give me 2 Vanguard index funds which are dirt cheap (0.01%, 0.05%) and 3 funds managed by Primecap and T. Rowe Price which are significantly more expensive (0.64%-0.66%) but appear over the long run to beat their benchmarks by a point or two. The cheaper Vanguard index funds don't have long-term performance data but have been matching their market sector since inception. Should you always go for the cheapest funds or does that percentage point above the benchmark more than cover the additional operating expenses?
I've tried using the free Morningstar tool but it's not the easiest tool to use and interpret. I'm too dumb, I guess.
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Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Operating expenses is hugely important. For your 401k go with low cost index funds all day long. You have Vanguard for your 401k? That is perfect. I would suggest following this for a 3-fund mix. It's what I've been doing for a couple years.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
I swear I saw it on this thread but someone referenced a free PDF book along the lines of "How to invest for millennials" or something along the line of that. I went back 20 pages and couldn't find it. I wanted to grab it for my next trip. Does this ring a bell for anyone?
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by spccowboy1
I swear I saw it on this thread but someone referenced a free PDF book along the lines of "How to invest for millennials" or something along the line of that. I went back 20 pages and couldn't find it. I wanted to grab it for my next trip. Does this ring a bell for anyone?
It's this one. "How Millennials Can Get Rich Slowly". Really great read, follows the Bogle principles pretty tightly.
To the above poster, stick with Vanguard. The other funds that "appear" to beat a benchmark in the long-term aren't doing it long-term enough. 10 year averages don't mean much, it almost a guarantee they cant do it for 15-20 and that is what you are investing towards.
It's this one. "How Millennials Can Get Rich Slowly". Really great read, follows the Bogle principles pretty tightly.
To the above poster, stick with Vanguard. The other funds that "appear" to beat a benchmark in the long-term aren't doing it long-term enough. 10 year averages don't mean much, it almost a guarantee they cant do it for 15-20 and that is what you are investing towards.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by spccowboy1
I swear I saw it on this thread but someone referenced a free PDF book along the lines of "How to invest for millennials" or something along the line of that. I went back 20 pages and couldn't find it. I wanted to grab it for my next trip. Does this ring a bell for anyone?
Yeah, I mentioned it a few pages back. If you do pick it up and read it, let us know what you think.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by spccowboy1
I swear I saw it on this thread but someone referenced a free PDF book along the lines of "How to invest for millennials" or something along the line of that. I went back 20 pages and couldn't find it. I wanted to grab it for my next trip. Does this ring a bell for anyone?
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
this review of that book is hilarious
I'll spoiler it since it's so long:
This book was an absolute game changer for myself and my family. I've always been deeply interested in personal finance and real estate, but this book motivated me to take action. This book released on April 23rd just one week before my wife and I were prepared to sign a new lease on a 3 story, very large town home. Thankfully, Set for Life caught us just in time. We ripped up the lease and decided to totally change our future. We immediately got to work and found a tiny basement apartment for $250 a month with ALL utilities and internet included. It's centrally located, less than 1 mile from both the grocery store and the hospital. So we packed up myself, my wife, our 6 month old newborn daughter and our Shitzu and humbly moved in. Fast forward a few months and we are still here in the basement apartment, happily living WELL below our means saving up piles of cash. My wife works from home and I recently accepted a remote position with a University that I start next week. This is huge considering I drove nearly all day for my former job. I put an average of 150 miles per day on my car, 5 days per week. So this well not only save me gas, maintenance, etc, but it will also be a huge relief for me to not be sitting in a car most of the day. Now that our offices are literally in our home, we'll be selling one of our cars and becoming a one car family. Our next step is hitting the $25,000 cash reserves and we are well on our way. We plan to be a multifamily property and house hack after that. Our goal is to never directly pay rent or a mortgage with our own income ever again. To put it practically, this is how your book changed our monthly cash flow:
Previous Rent + Utilities = $1,320/mo
Current Rent + Utilities = $250/mo + $100/mo for a storage unit.
Total Savings = $970/mo or $11,640/yr
Previous Total Car Payments + Insurance = $566/mo
New Total Car Payments + Insurance = $310/mo
Total Savings = $256/mo or $3,072/yr
Previous Average Fuel and Oil Costs = $505/mo
New Average Fuel and Oil Costs = $175/mo
Total Savings = $330/mo or $3,960/yr
Total Change in Positive Cashflow = $1,556/mo or $18,672yr
Over $18,000 per year. That's unbelievable and is absolutely life changing. Of course, there will be more savings, but those are simply the savings from drastically cutting our two largest expenditures.
Click the "Show Spoiler" Button to reveal hidden text.
$250 in rent, give me a break why didn't he just say he moved in with his parents.
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Quote:
Originally Posted by FromTheMorning
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Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by Benny003
Operating expenses is hugely important. For your 401k go with low cost index funds all day long. You have Vanguard for your 401k? That is perfect. I would suggest following this for a 3-fund mix. It's what I've been doing for a couple years.
Thanks for the link. I hadn't read that one yet. I've basically did what they suggested. Unfortunately, the options in my 401(k) are really lacking. My new allocation going forward:
60% Vanguard Target Retirement 2050
20% Vanguard Institutional Extended Market Index
20% Vanguard Institutional 500 Index
This is a portfolio heavy in stocks which I am okay with. The Target Date fund includes foreign stock and bonds so I'm getting exposure to those types of assets in that. All 3 of these funds have annual operating fees of 0.07% or less. This allocation should be good for me to set it and forget it for the next decade.
Prior to updating my allocation, I found that my 401(k) had 5% in a "savings trust" which is basically cash. Jesus Christ. I can't believe I could've been that dumb. Check your 401(k) funds, people.
__________________
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Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by TheLastStop123
this review of that book is hilarious
I'll spoiler it since it's so long:
This book was an absolute game changer for myself and my family. I've always been deeply interested in personal finance and real estate, but this book motivated me to take action. This book released on April 23rd just one week before my wife and I were prepared to sign a new lease on a 3 story, very large town home. Thankfully, Set for Life caught us just in time. We ripped up the lease and decided to totally change our future. We immediately got to work and found a tiny basement apartment for $250 a month with ALL utilities and internet included. It's centrally located, less than 1 mile from both the grocery store and the hospital. So we packed up myself, my wife, our 6 month old newborn daughter and our Shitzu and humbly moved in. Fast forward a few months and we are still here in the basement apartment, happily living WELL below our means saving up piles of cash. My wife works from home and I recently accepted a remote position with a University that I start next week. This is huge considering I drove nearly all day for my former job. I put an average of 150 miles per day on my car, 5 days per week. So this well not only save me gas, maintenance, etc, but it will also be a huge relief for me to not be sitting in a car most of the day. Now that our offices are literally in our home, we'll be selling one of our cars and becoming a one car family. Our next step is hitting the $25,000 cash reserves and we are well on our way. We plan to be a multifamily property and house hack after that. Our goal is to never directly pay rent or a mortgage with our own income ever again. To put it practically, this is how your book changed our monthly cash flow:
Previous Rent + Utilities = $1,320/mo
Current Rent + Utilities = $250/mo + $100/mo for a storage unit.
Total Savings = $970/mo or $11,640/yr
Previous Total Car Payments + Insurance = $566/mo
New Total Car Payments + Insurance = $310/mo
Total Savings = $256/mo or $3,072/yr
Previous Average Fuel and Oil Costs = $505/mo
New Average Fuel and Oil Costs = $175/mo
Total Savings = $330/mo or $3,960/yr
Total Change in Positive Cashflow = $1,556/mo or $18,672yr
Over $18,000 per year. That's unbelievable and is absolutely life changing. Of course, there will be more savings, but those are simply the savings from drastically cutting our two largest expenditures.
Click the "Show Spoiler" Button to reveal hidden text.
$250 in rent, give me a break why didn't he just say he moved in with his parents.
I can't even imagine what shithole would cost $250/month almost anywhere in the country.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by rconverse
I can't even imagine what shithole would cost $250/month almost anywhere in the country.
my grad school apartment was a 2 bedroom summer home on a lake that wasn't transitioned to year round living. so it was cold in the winter.
utilities were free aside from gas. i think my roommate and i split all costs and i never paid over $275 a month.
that being said, in the spring time, the groudn thawed and i guess it wasn't used to having 2 full adults living in it with our stuff. the living room wall fractured
but, all and in all, it was a great place for what we wanted
__________________
Mao's WWYS Quest: fin @ show 39 MattsMarching 1 Gorge Medal
Quote:
Originally Posted by efraser77
*renounces DMB fandom*
Quote:
Originally Posted by Prime Minister
In fairness Brian Wilson's Beard > Amy Winehouse & the grammys & spoot.
Last edited by cry_minarets458; 04-23-2019 at 05:29 PM.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Is anyone using a 529 plan for K-12 tuition at a private school, not just college planning? In Missouri we can deduct state taxes for anything we contribute, and obviously withdrawals for qualified tuition expenses are tax free as well, but I've never invested for an expense so short term. We have college 529's that are set up using the target date, but I have a daughter in kindergarten now that it seems I should be utilizing this for just for tax purposes, but I'm not sure what the strategy should be. Do I try to put her full year's tuition into a super conservative account and withdraw her tuition monthly from that just to get the deduction on the contributions? Do I just contribute a lump sum now into a slightly more aggressive fund and then just pay her tuition out of my bank account for the next couple years and let that lump sum grow to be utilized later in middle school and high school? I can't quite wrap my head around what makes the most sense.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by MOWJO8185
Is anyone using a 529 plan for K-12 tuition at a private school, not just college planning? In Missouri we can deduct state taxes for anything we contribute, and obviously withdrawals for qualified tuition expenses are tax free as well, but I've never invested for an expense so short term. We have college 529's that are set up using the target date, but I have a daughter in kindergarten now that it seems I should be utilizing this for just for tax purposes, but I'm not sure what the strategy should be. Do I try to put her full year's tuition into a super conservative account and withdraw her tuition monthly from that just to get the deduction on the contributions? Do I just contribute a lump sum now into a slightly more aggressive fund and then just pay her tuition out of my bank account for the next couple years and let that lump sum grow to be utilized later in middle school and high school? I can't quite wrap my head around what makes the most sense.
Assuming your state and 529 plan allows this (most do), I would open 2 accounts. One with a conservative funding for the short term and one with aggressive funding for the later years that you reallocate more conservatively as you get closer to using that money.
__________________
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Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by 42graystreet
Assuming your state and 529 plan allows this (most do), I would open 2 accounts. One with a conservative funding for the short term and one with aggressive funding for the later years that you reallocate more conservatively as you get closer to using that money.
If you have the means to do that financially, then that sounds like a best of both worlds option. Nice that the 529 can be used to deduct state taxes. I get zero tax benefit for my 529 contributions except not paying taxes on the growth of course.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by Benny003
If you have the means to do that financially, then that sounds like a best of both worlds option. Nice that the 529 can be used to deduct state taxes. I get zero tax benefit for my 529 contributions except not paying taxes on the growth of course.
Yeah, I was going on the assumption he had the ability to fund both short term and long term tuition expenses. If it's one or the other, I would fund long term tuition expenses so my money had a chance to generate tax free earnings. As long as our economy doesn't go boom, the tuition expenses later in the kid's education would be paid for only partly by your own contributions and partly by the 529 earnings.
__________________
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Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by Benny003
If you have the means to do that financially, then that sounds like a best of both worlds option. Nice that the 529 can be used to deduct state taxes. I get zero tax benefit for my 529 contributions except not paying taxes on the growth of course.
Yeah, apparently to be able to deduct it, it just has to reside in the 529 at some point, isn't required to stay in there for any amount of time. So I guess I'll literally just shovel her tuition for the current school year into a conservative account relatively soon before withdrawing it and paying it to the school just to be able to deduct it? And then have a longer-term one for future years that I will just put in what I can.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by MOWJO8185
Yeah, apparently to be able to deduct it, it just has to reside in the 529 at some point, isn't required to stay in there for any amount of time. So I guess I'll literally just shovel her tuition for the current school year into a conservative account relatively soon before withdrawing it and paying it to the school just to be able to deduct it? And then have a longer-term one for future years that I will just put in what I can.
Makes sense if that's how it works. Kind of ridiculous though that they give a tax break just for putting it in there and pulling it out, but take advantage of it if that's how it works.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by Benny003
Makes sense if that's how it works. Kind of ridiculous though that they give a tax break just for putting it in there and pulling it out, but take advantage of it if that's how it works.
It seems super weird to me too and that's why I'm a little gunshy about it, but everything I've read indicates that's how it works, at least for now. Could be a little loophole that they close up if too many people do it so I guess I'll just have to keep my eye on if they change the law.
Re: The Investment Thread (help with savings, stocks, retirement funds, etc.)
Quote:
Originally Posted by MOWJO8185
It seems super weird to me too and that's why I'm a little gunshy about it, but everything I've read indicates that's how it works, at least for now. Could be a little loophole that they close up if too many people do it so I guess I'll just have to keep my eye on if they change the law.
Hopefully there's some fine print in the 529 plan you have (or someone you can call?) to verify there is no time limit in keeping the funds in there even for qualifying withdrawals. I did a cursory google search and couldn't find anything that discusses potential penalties for withdrawing funds that were just put into a 529 (for qualifying expenses, obv).
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