By Fenderputty Go To PostIf your company contributes to the Roth 401K, that money will be taxable when you retire. Only your taxed contributions to the account will not be taxed coming out.
I have a regular 401K and my company matches up to 2K a year. My contribution is automatically set to increase by 1% each year (I'm currently contributing 8%). I need to look into whether a Roth 401K is offered.
The company I work for an 100% employee owned though. As such we all get stock disbursements each year and it's a % of your income. Everyone in the company gets the same percentage from the top to the bottom. The disbursements range from 5% to 10% based on a number of factors.
I have decent equity too since I bought my first house in 2008
Neither your taxed contributions nor the earnings on those contributions are taxable when you retire in a Roth.
Employee matching is a different animal, but it's not your money and you're not paying taxes, so it functions essentially like an IRA. If I'm not mistaken, you can elect to pay taxes on those employee matching contributions now and avoid taxes later. But don't quote me on that.
By 3SidedPolygons Go To PostDoubly so because other than the interest savings, your ROR on real estate investment is actually 0%. And will always be 0%.
Most people don't understand this but real estate is a bad place to put your money.
Especially after 2008.
By 3SidedPolygons Go To PostNeither your taxed contributions nor the earnings on those contributions are taxable when you retire in a Roth.
Employee matching is a different animal, but it's not your money and you're not paying taxes, so it functions essentially like an IRA. If I'm not mistaken, you can elect to pay taxes on those employee matching contributions now and avoid taxes later. But don't quote me on that.
Right. That's what I said :P
Interesting about maybe having the company contributions taxed on the way in though. Might have to look at that when I check to see if my retirement offers a Roth 401K
By 3SidedPolygons Go To PostDoubly so because other than the interest savings, your ROR on real estate investment is actually 0%. And will always be 0%.
Most people don't understand this but real estate is a bad place to put your money.
Not always. A second home for renting out isn't a bad investment and can increase your mortgage deductions for taxes. The cost of renting is so high post 2008 mortgage payments are actually comparable to rent, you just have to have the down payment. It's also one of the few investments you can increase the value of by simply using your own hard work and sweat. Like many investments it's a matter of timing.
My parents live in a house way beyond their means and it's because they've invested wisely in the property they've owned and improved those properties themselves. My dad was an electrician his whole life and their current house is valued over 2 million of which they only owe 350K on. When he retires in 2 years they'll be set.
By Fenderputty Go To PostNot always. A second home for renting out isn't a bad investment and can increase your mortgage deductions for taxes. The cost of renting is so high post 2008 mortgage payments are actually comparable to rent, you just have to have the down payment. It's also one of the few investments you can increase the value of by simply using your own hard work and sweat. Like many investments it's a matter of timing.
My parents live in a house way beyond their means and it's because they've invested wisely in the property they've owned and improved those properties themselves. My dad was an electrician his whole life and their current house is valued over 2 million of which they only owe 350K on. When he retires in 2 years they'll be set.
What I said isn't about whether or not people should own homes. They should clearly own real estate. What I said is a principle of real estate (having worked in loans for almost 5 years) that most people don't really understand.
And that is that the amount of your own money you put into a home via mortgage payments, down payments, or extra payments have literally 0 effects on the rate of return outside of the fixed interest you pay your mortgage. None. Zero. Renovations or improvements are another matter. They do as long as you're doing improvements that increase market value
Let's do a thought exercise. Let's say there were two identical homes worth 1,000,000 each.
You buy one all cash (You spend a million dollars)
I buy one with a 10% down payment (I spend 100K)
In 5 years time BOTH of our houses, assuming the same level of care, will be worth the exact same amount of money. Your house won't be worth 10 times what mine is despite the fact that you spent 10 times your own money on this investment. Therefore, if the house doubles. I will have invested 100K (plus mortgage interest) to earn 1,000,000. And you will have invested 1,000,000 to earn 1,000,000.
See, stocks don't work that way. If you invest a 100K into a portfolio and I invest a 1,000,000. And our stocks both rise at the same rate, I will have made 10 times more money. Therefore, by investing more of my money, I'm making more money back. In Real Estate, the market dictates home prices, and your investment in the property's equity has literally no effect.
What investors do, is if they have a million dollars, they divvy that up and buy 10-20 homes with 5-10% down payments and mortgage the rest so that they'll make 10-20 times as much money on real estate values as compared what putting a million dollars into one home would do.
So, in conclusion, Steam's original point about why the fuck are people paying higher payments than their 3-4% mortgages to pay off their homes is a bad idea is still true, that extra money literally has no bearing whatsoever on your rate of return (outside of the 3-4% you're saving)
By Fenderputty Go To PostRight. That's what I said.
You said, "Only your taxed contributions to the account will not be taxed coming out. ". you didn't mention the tax-free withdrawals on the EARNINGS over time on those initial contributions. Could have been a simple slip up, but I just wanted to clarify :). If all you did was defer taxes on contributions, a ROTH would be pointless. The value is that you get tax free earnings too.
By 3SidedPolygons Go To PostProperty Stuff
.
Awww that makes sense.
By 3SidedPolygons Go To PostYou said, "Only your taxed contributions to the account will not be taxed coming out. ". you didn't mention the tax-free withdrawals on the EARNINGS over time on those initial contributions. Could have been a simple slip up, but I just wanted to clarify :). If all you did was defer taxes on contributions, a ROTH would be pointless. The value is that you get tax free earnings too.
Yes I figured earnings into my comments. Only the employer portion and earning that portion are taxed.
Got my dividend check deposited.
Wtf
This shit was a lot lower than I expected, unless I have a false idea of how dividend payouts work, which is entirely possible.
Loving pls
Wtf
This shit was a lot lower than I expected, unless I have a false idea of how dividend payouts work, which is entirely possible.
Loving pls
By Smokey Go To PostGot my dividend check deposited.
Wtf
This shit was a lot lower than I expected, unless I have a false idea of how dividend payouts work, which is entirely possible.
Loving pls
Use your dividends to buy more stocks. There's an automatic option for that. They're usually too small to affect your quality of life but valuable if you let them accumulate tax free growth for a couple of decades.
It's called DRIP. (Dividend Re-Investment Program).
By 3SidedPolygons Go To PostUse your dividends to buy more stocks. There's an automatic option for that. They're usually too small to affect your quality of life but valuable if you let them accumulate tax free growth for a couple of decades.
It's called DRIP. (Dividend Re-Investment Program).
I've done that for the past 6 years or so. I decided to do the cash option just because. Thought I would get more lol. Gonna switch it back to reinvest.
Smokey, honestly, I'm going to reiterate what I said earlier. If I were you I would try to find a reputable financial planning firm near you because at this juncture you have certain goals and wants, you're young, have a good career, not to mention responsibilities that an expert would be able to help you. You most likely go to a mechanic to fix your car, a doctor to make sure your physically where you should be, etc. A CFP for your finances is no different. I'm not saying that to brush you off but rather to express the great benefit you would gain.
http://www.cfp.net/utility/find-a-cfp-professional
Use that and then take a look at the reviews. It's a great feeling to have an actual comprehensive plan to go by.
http://www.cfp.net/utility/find-a-cfp-professional
Use that and then take a look at the reviews. It's a great feeling to have an actual comprehensive plan to go by.
By lovingsteam Go To PostSmokey, honestly, I'm going to reiterate what I said earlier. If I were you I would try to find a reputable financial planning firm near you because at this juncture you have certain goals and wants, you're young, have a good career, not to mention responsibilities that an expert would be able to help you. You most likely go to a mechanic to fix your car, a doctor to make sure your physically where you should be, etc. A CFP for your finances is no different. I'm not saying that to brush you off but rather to express the great benefit you would gain.
http://www.cfp.net/utility/find-a-cfp-professional
Use that and then take a look at the reviews. It's a great feeling to have an actual comprehensive plan to go by.
I second this. Just stay away from people who make commissions on transactions they make if at all possible. You'd be better served in many cases paying consulting fees than having people switch you over from this to that investment because they make commissions.
By Smokey Go To PostI've done that for the past 6 years or so. I decided to do the cash option just because. Thought I would get more lol. Gonna switch it back to reinvest.
I mean, Coca Cola pays something like 35 cents a quarter per share of stock. Their stock price as of today is 46 bucks. So you'd need something like 46,000 invested in coca cola to get 350 bucks a quarter. Using dividends as income is really just for super rich people with tons of money in stocks, and tons of other income streams or revenue sources, who want to make some money while passing their vast stock portfolio to their children or to some kind of endowment or charitable contribution. It's not for folks on the younger side who are still in the accumulation stage of their investing portfolio I would say.
Yep, that's called churning (basically having you go from one current investment/insurance product to another without a justifiable reason) and it could cause planners to lose their licenses. Doesn't stop some from doing it, unfortunately.
By 3SidedPolygons Go To PostI mean, Coca Cola pays something like 35 cents a quarter per share of stock. Their stock price as of today is 46 bucks. So you'd need something like 46,000 invested in coca cola to get 350 bucks a quarter. Using dividends as income is really just for super rich people with tons of money in stocks, and tons of other income streams or revenue sources, who want to make some money while passing their vast stock portfolio to their children or to some kind of endowment or charitable contribution. It's not for folks on the younger side who are still in the accumulation stage of their investing portfolio I would say.
So if a dividend quarter payout is say $2...I thought that got multiplied against he amount if shares you hold. I was expecting something like $1,000 and instead I got like $260 lol
But yeah I always reinvest the payout...except this one time.
By Smokey Go To PostSo if a dividend quarter payout is say $2…I thought that got multiplied against he amount if shares you hold. I was expecting something like $1,000 and instead I got like $260 lol
But yeah I always reinvest the payout…except this one time.
A dividend payout of $2.00 a quarter? That's pretty crazy.
Going back to Coca Cola they're at like a dollar and some change a year, not a quarter.
Dividend payout at 2 bucks a quarter and 8 bucks a year would probably mean the stock price is worth hundreds of dollars a share.
(By your math it seems to me that it's 2 bucks year and not a quarter and that's why you got a fourth of what you were expecting?) because when companies announce dividend payout amounts in terms of dollar amounts - they're usually talking about the annual amount. They pay quarterly but the figure they cite is annually.
By 3SidedPolygons Go To Post(By your math it seems to me that it's 2 bucks year and not a quarter and that's why you got a fourth of what you were expecting?) because when companies announce dividend payout amounts in terms of dollar amounts - they're usually talking about the annual amount. They pay quarterly but the figure they cite is annually.
I m pretty sure this is where I goofed .
Yeah I just looked...its $3 annually...which is $0.75 quarterly and now it all makes sense.
TIL
By Smokey Go To PostGot my dividend check deposited.
Wtf
This shit was a lot lower than I expected, unless I have a false idea of how dividend payouts work, which is entirely possible.
Loving pls
not where the money is made fam
Brexit vote is looking closer than I'd like. Hold on to your butts; if it's Leave then you might want to avoid looking at your portfolios for a while.
Thread like this makes me wish we had a save thread on this board. I love finance suzie orman type threads
By reilo Go To PostWhy can't this be the savings thread, too?
No I meant a subscription thread feature...... In hindsight I see where I made in confusing. Sorry.
By Zeus Ex Machina Go To PostNo I meant a subscription thread feature…… In hindsight I see where I made in confusing. Sorry.Oooh got it. It's a subject I've discussed at length with Sharp and will bring it up again.
In short: I could implement a very simple solution in a few hours if need be. The downside is that we need to determine if we ever implement caching and how that will work with subscriptions and that it will be a huge performance concern.
By Forever Go To PostWELP BREXIT IS HAPPENING WE'RE ALL FUCKED HOLD ON TIGHT
Welp I had none..... Though as New Yorkers I think this is going to fuck up the tourist sector a lot.
By reilo Go To PostOooh got it. It's a subject I've discussed at length with Sharp and will bring it up again.
In short: I could implement a very simple solution in a few hours if need be. The downside is that we need to determine if we ever implement caching and how that will work with subscriptions and that it will be a huge performance concern.
Cool, hey thanks for at least considering it.
By Forever Go To PostWELP BREXIT IS HAPPENING WE'RE ALL FUCKED HOLD ON TIGHT
brexit?
e: oh..hmmm..interesting. what implications could this have?
By Smokey Go To Postbrexit?GLOBAL. FINANCIAL. CHAOS.
e: oh..hmmm..interesting. what implications could this have?
1) This probably starts a domino effect that ends in the collapse of the EU. Putin is masturbating right now.
2) It's very likely that the United Kingdom as we know it will fall apart. Scotland will demand another referendum, Wales will follow, Ireland will probably absorb Northern Ireland, and England will be on its own.
3) Markets are about to be thrown into chaos. United States will almost certainly enter recession... four months before the election.
If you own stocks for your own sake don't look at them tomorrow.
The BBC projects that the UK has voted to leave the European Union. "Leave" leads 52-48, by around 850k votes
By Forever Go To PostGLOBAL. FINANCIAL. CHAOS.
1) This probably starts a domino effect that ends in the collapse of the EU. Putin is masturbating right now.
2) It's very likely that the United Kingdom as we know it will fall apart. Scotland will demand another referendum, Wales will follow, Ireland will probably absorb Northern Ireland, and England will be on its own.
3) Markets are about to be thrown into chaos. United States will almost certainly enter recession… four months before the election.
If you own stocks for your own sake don't look at them tomorrow.
u fukin with me or nah
By Smokey Go To Postwat the fuckIt probably deserves one. I'll make it here shortly.
why is there not a thread on this
im in a mini panic after reading some more
Well trading has halted after an influx of investors moved to our currency as an insurance reserve after the news which increased the value of our currency, which means I can buy more shit and import more again since my money is worth more.
At the same time the strength of our economy and our GDP has fallen as a result of external pressure which means people are less likely to buy and import our goods, affecting the average income despite the increase in spending power.
Amazing. wow Abenomics.
At the same time the strength of our economy and our GDP has fallen as a result of external pressure which means people are less likely to buy and import our goods, affecting the average income despite the increase in spending power.
Amazing. wow Abenomics.
By Forever Go To PostGLOBAL. FINANCIAL. CHAOS.
1) This probably starts a domino effect that ends in the collapse of the EU. Putin is masturbating right now.
2) It's very likely that the United Kingdom as we know it will fall apart. Scotland will demand another referendum, Wales will follow, Ireland will probably absorb Northern Ireland, and England will be on its own.
3) Markets are about to be thrown into chaos. United States will almost certainly enter recession… four months before the election.
If you own stocks for your own sake don't look at them tomorrow.
I think this is being a tad alarmist. Especially #3. Market freakouts will occur in the short term but I think overall the United States will be just fine.
By Enron Go To PostI think this is being a tad alarmist. Especially #3. Market freakouts will occur in the short term but I think overall the United States will be just fine.Is it?
Gold surging more than 6%
Pound tumbles to $1.3315
Euro drops to $1.0924
Anyway, let's move the discussion here: http://slaent.com/thread/773944/
GOTDAMMIT now I am pissed. I can't survive another recession and may legit move to Canada.
*spends another $100 on dogecoin*
So basically I need dogecoin to hit $100 to $300 per thousand in order to retire.
*spends another $100 on dogecoin*
So basically I need dogecoin to hit $100 to $300 per thousand in order to retire.
Hi, m9s, I'm naive in my financial strategies, but I wanted to know if now would be a good time to make a large purchase for an investment.
Not too large of course.
I'm contemplating buying just England.
I'll wait to buy the rest of the UK until after I get some return on my initial investment, which I understand may be a little while.
Not too large of course.
I'm contemplating buying just England.
I'll wait to buy the rest of the UK until after I get some return on my initial investment, which I understand may be a little while.
You joke but now is a good time to buy if you are an investor. Everything is basically on sale for the next few days or weeks or however long this market shock lasts.
By Enron Go To PostYou joke but now is a good time to buy if you are an investor. Everything is basically on sale for the next few days or weeks or however long this market shock lasts.
Yep. Smart thing to do is do the opposite of the general population. They sell, you buy. They buy, you sell. If history has shown us anything it's that the market will eventually climb. BTW, this is why it's not a good idea to have all of stuff in market correlated assets because in a situation like today, folks are more likely to touch the principle. Imagine folks who were thinking of retiring in the next few months and who will be depending heavily on their 401k. If there is a recession and it takes the market months to fix itself, welp.
Should I do nothing to my 401k...I have a pretty aggressive portfolio which has allowed me to see a return of 10%+ this year, however I as oblivious as fuck to Brexit and I find my chest starting to cave.
By Smokey Go To PostShould I do nothing to my 401k…I have a pretty aggressive portfolio which has allowed me to see a return of 10%+ this year, however I as oblivious as fuck to Brexit and I find my chest starting to cave.
You? No you shouldn't. You're young, have another 30+ years. There will be multiple recessions and multiple bump backs for you. Think about the 60-65 year olds that wanted to retire today. They may be affected. You? No. For you this is a great time, if you have the monies to buy buy buy. Invest invest invest. This was/is a sale for folks like yourself.
Yea don't sell your stocks. If you did it a week ago, fine. But not now. Once you lose the value, pulling out just means you realize the losses.
What is the safest thing to do with savings in GBP right now?
Its not enough for me to start a new life or anything like that, but it is a 3-year or so safety net if I was to lose my job or home
Its not enough for me to start a new life or anything like that, but it is a 3-year or so safety net if I was to lose my job or home
By Hitch Go To PostWhat is the safest thing to do with savings in GBP right now?The value of the pound is tanking and I don't think it's going to recover anytime soon. Britain is going to be ground zero and the rest of the world will be trying to contain the damage to your isles as much as possible. I honestly don't know what I'd do in your position. Sorry mate.
Its not enough for me to start a new life or anything like that, but it is a 3-year or so safety net if I was to lose my job or home
Dow -578
Enron, pls
Global stock markets lost about $2 trillion in value on Friday after Britain voted to leave the European Union, while sterling suffered a record one-day plunge to a 31-year low and money poured into safe-haven gold and government bonds.
Enron, pls
it's been a day. We got up to -300 or so after being down OVER 700 in overnight trading. It's a rollercoaster and will continue to be so for the next few days but after a while when the panic subsides, the same thing will happen as it always does. Everyone will realize the system is still intact and that everything is "on sale" which will spark more buying at we'll be right back where we started in terms of the NYSE and other global markets.
By lovingsteam Go To PostYou? No you shouldn't. You're young, have another 30+ years. There will be multiple recessions and multiple bump backs for you. Think about the 60-65 year olds that wanted to retire today. They may be affected. You? No. For you this is a great time, if you have the monies to buy buy buy. Invest invest invest. This was/is a sale for folks like yourself.
I just said this exact thing like 3 times and I got people jumping down my throat over it. I guess lovingsteam is just more likeable!
By Enron Go To PostI just said this exact thing like 3 times and I got people jumping down my throat over it. I guess lovingsteam is just more likeable!
Impossible! BTW Enron, seeing as you are a native Atlantian and I have only been here a couple of years, I have to say I never knew this city could have been so amazing in terms of food. Ranks up there with L.A., San Fran, Seattle, etc.