The Investment Thread (help with savings, stocks, retirement funds, etc.)

[cazzie34]

Originally Posted by smokew11

i wish i knew about IRA's earlier than 29 yrs old, but its never too late to start

im also curious why you're doing roth and traditional?

My guess is that he doesn't have a 401K option so it is giving him two vehicles to save for retirement. Seems like a decent idea.


Any negative to doing that?

I've got one Roth IRA and one medium risk investment account. Company doens't offer 401k or anything else, any other options I should be looking at?

[dpresti]

Originally Posted by cazzie34

My guess is that he doesn't have a 401K option so it is giving him two vehicles to save for retirement. Seems like a decent idea.


Any negative to doing that?

I've got one Roth IRA and one medium risk investment account. Company doens't offer 401k or anything else, any other options I should be looking at?

even with a roth & traditional you still can't invest more than 5500 per year.
i see no real benefit to having both.

What's your medium risk investment account?

Talk to an investment advisor about individual 401k's. that's what i did, and have been very happy.

[cazzie34]

Originally Posted by dpresti

even with a roth & traditional you still can't invest more than 5500 per year.
i see no real benefit to having both.

What's your medium risk investment account?

Talk to an investment advisor about individual 401k's. that's what i did, and have been very happy.

Are you saying that max total is $5,500 or that each account can take on $5,500 for a total of $11,000? If it is the former, yeah, makes no sense.

Medium risk is just an account I have with Franklin Templeton. "moderate allocation fund"

I'll definitely look into that.

[dpresti]

Originally Posted by cazzie34

Are you saying that max total is $5,500 or that each account can take on $5,500 for a total of $11,000? If it is the former, yeah, makes no sense.

Medium risk is just an account I have with Franklin Templeton. "moderate allocation fund"

I'll definitely look into that.

Your combined Roth & Traditional can't be more than 5500. Yes, the former

If you need help shopping the 401k solo (or "i" 401k) feel free to PM me.

[cazzie34]

Looks like I need to be self-employed or run an owner only business for an i401k. I don't do that. I work for a small employer (10ish employees)

[UCFish]

I threw 10k in an ETF last week. Fun to watch it go up. I don't like it when it goes down.

[dpresti]

Originally Posted by cazzie34

Looks like I need to be self-employed or run an owner only business for an i401k. I don't do that. I work for a small employer (10ish employees)

ah, that might be true!

check with a pro... Maybe ask these guys as a starting point (no affiliation) https://www.mutualfundstore.com/cont...ask-a-question

[Lee3691]

What ETF did you chose?

[dpresti]

got 2 ETFs in my 401k

http://etfs.morningstar.com/quote?t=VNQ
and
http://etfs.morningstar.com/quote?t=rpv

[TheLastStop123]

Originally Posted by dpresti

smart! i wish my parents told me to open a roth at an earlier age! oh well.

why both roth and traditional? i like the roth only max....

Originally Posted by smokew11

i wish i knew about IRA's earlier than 29 yrs old, but its never too late to start

im also curious why you're doing roth and traditional?

Originally Posted by cazzie34

My guess is that he doesn't have a 401K option so it is giving him two vehicles to save for retirement. Seems like a decent idea.


Any negative to doing that?

I've got one Roth IRA and one medium risk investment account. Company doens't offer 401k or anything else, any other options I should be looking at?

That's exactly right. I'm an independent contractor, so I'm on an hourly rate with no 401k option. After talking with my family and my financial advisor, they all agreed that was a good way to go.

I'll be honest when I say I don't know all that much about it, but I certainly trust my parents. If any of you have any other suggestions for me, I'd certainly be willing to listen.

[dpresti]

Originally Posted by TheLastStop123

That's exactly right. I'm an independent contractor, so I'm on an hourly rate with no 401k option. After talking with my family and my financial advisor, they all agreed that was a good way to go.

I still don't know why you'd do both? What's the benefit?

Why not just max out one or the other? You can't put more than $5500 / year... combined...


The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

• $5,500 (for 2014 and 2015), or $6,500 if you’re age 50 or older by the end of the year; or
• your taxable compensation for the year.

[TheLastStop123]

Originally Posted by dpresti

I still don't know why you'd do both? What's the benefit?

Why not just max out one or the other? You can't put more than $5500 / year... combined...


The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

• $5,500 (for 2014 and 2015), or $6,500 if you’re age 50 or older by the end of the year; or
• your taxable compensation for the year.

I'm only doing $100 per month to each if that helps. And I do $400 per month for my mutual fund.

[dpresti]

Originally Posted by TheLastStop123

I'm only doing $100 per month to each if that helps. And I do $400 per month for my mutual fund.

understood.

the question we were wondering, is why both? benefit?

[smokew11]

We just had a baby so I'm gonna take $500 from my tax refund and open a 529 for college. I'm only gonna put like $25/month in for now, but thats more than our parents did for us and the rate of return is very good. If I can pay for 1 or 2 years of school for each kid (we'll have another in like 3 years), i'll be very happy with myself

plus its pretty much the only thing you can deduct from Pa state taxes

[dpresti]

Originally Posted by smokew11

We just had a baby so I'm gonna take $500 from my tax refund and open a 529 for college. I'm only gonna put like $25/month in for now, but thats more than our parents did for us and the rate of return is very good. If I can pay for 1 or 2 years of school for each kid (we'll have another in like 3 years), i'll be very happy with myself

plus its pretty much the only thing you can deduct from Pa state taxes

good plan!

[jiggajm18]

Originally Posted by dpresti

In case anyone needs a refresher - http://www.rothira.com/traditional-ira-vs-roth-ira

One way the Roth was simply explained to me.... Do you think taxes will
be going up in 20 plus years? Of course... So why not pay the tax NOW,
then pull out tax free when needed?

plus roth contributions can be withdrawn penalty-free at anytime.

i'm not recommending that you do WD early from a roth. but if you have to in an emergency, you don't pay a penalty.

i really don't think there are any big downsides to doing a roth. there are tons of advantages.

[smokew11]

hopefully i can eventually contribute a little more, but between my student loans, car loans, mortgage, and savings plans we're spread thin. I struggled/am struggling to pay for school, and while I'd love to help my kids, that will be their struggle as well. Right now my new house mutual fund and my retirement plans are more important

[smokew11]

Originally Posted by jiggajm18

plus roth contributions can be withdrawn penalty-free at anytime.

i'm not recommending that you do WD early from a roth. but if you have to in an emergency, you don't pay a penalty.

i really don't think there are any big downsides to doing a roth. there are tons of advantages.

only downside is you cant deduct it for taxes, but the tax-free factor at the end more than makes up for it

[jiggajm18]

Originally Posted by smokew11

i wish i knew about IRA's earlier than 29 yrs old, but its never too late to start

im also curious why you're doing roth and traditional?

totally agree about this. it's a shame how many people in their 20s don't know about it. and those are the people who really should know, as they stand to benefit the most from it.

[smokew11]

Originally Posted by jiggajm18

totally agree about this. it's a shame how many people in their 20s don't know about it. and those are the people who really should know, as they stand to benefit the most from it.

been trying to get my sister (29) and brother in law (26) to talk to my financial adviser but they are both lazy about it

[UCFish]

Originally Posted by Lee3691

What ETF did you chose?

USO

United States Oil ETF.

Not going to really touch it...at least not for a year.

[dpresti]

Originally Posted by UCFish

USO

United States Oil ETF.

Not going to really touch it...at least not for a year.

i don't love that selection... here's why. look at the 5 and 10 year on the ETF. there has been very little growth. You're gambling with the one year jump. I don't see it going high enough to pop the champagne

[UCFish]

I am just happy if it makes more than what I am seeing in my lame savings account.

I am maxing out 401K as well for the year.

Also got in at USO at the basic low last week(Very new to this and no clue what I am really doing).

[jiggajm18]

a lot of economists and analysts aren't expecting oil to have much of an increase within the next few years.

you invested 10K into stock and don't have any idea what you're doing? what percentage of your portfolio is that?

[dpresti]

Originally Posted by jiggajm18

a lot of economists and analysts aren't expecting oil to have much of an increase within the next few years.

you invested 10K into stock and don't have any idea what you're doing? what percentage of your portfolio is that?

what he said

[jiggajm18]

and, how do you even know USO is even at a low?

[dpresti]

it's the lowest it's been since 2006.

[UCFish]

It is money that I had to play with that I am not concerned about. A buddy gave me a tip on it. I looked at it being at or about its 52 week low and I am hoping it can recover to even where its average was around 30 over the next year.

However if anyone wants to give some better spots to throw it in I am all ears. Although really don't want to pull it out.

[dpresti]

Originally Posted by UCFish

It is money that I had to play with that I am not concerned about. A buddy gave me a tip on it. I looked at it being at or about its 52 week low and I am hoping it can recover to even where its average was around 30 over the next year.

However if anyone wants to give some better spots to throw it in I am all ears. Although really don't want to pull it out.

you're in now, i wouldn't pull out yet (TWSS!)

[jiggajm18]

Originally Posted by dpresti

it's the lowest it's been since 2006.

that doesn't mean it's at a low.