New To Investing Thread

[steve dave]

why do you use both td and ib? out of curiousity.

One for holding long positions and one for trading options.

I also prefer the charting on TOS (TD owned platform) over IB. Better fill rates in high volatility on IB though.

got it. I do sort of the same. retirement on one platform. fun on the other. mullet style.

[Brock Landers]

I bought I-bonds this morning. The max you can buy is $10,000. The interest rate you receive is a fixed rate plus the inflation rate which they set twice a year. The current rate is 9.62%. Anyone else do this?

I was gonna throw at least $5k into this but then got lazy/forgot about it.  Just looked at the current rates and they're at 6.89%

[Stupid Fitz]

I bought I-bonds this morning. The max you can buy is $10,000. The interest rate you receive is a fixed rate plus the inflation rate which they set twice a year. The current rate is 9.62%. Anyone else do this?

I was gonna throw at least $5k into this but then got lazy/forgot about it.  Just looked at the current rates and they're at 6.89%

still pretty good for cash you aren't doing anything with.

[catastrophe]

I bought I-bonds this morning. The max you can buy is $10,000. The interest rate you receive is a fixed rate plus the inflation rate which they set twice a year. The current rate is 9.62%. Anyone else do this?

I was gonna throw at least $5k into this but then got lazy/forgot about it.  Just looked at the current rates and they're at 6.89%

It changes every 6 months regardless so don’t beat yourself up. IMO they’re much better short term investments than long term (i.e., if you’re planning to hold onto it for more than 15-20 years before selling). Long term you’re practically guaranteed to do better in the S&P 500.

[bucket]

I bought I-bonds this morning. The max you can buy is $10,000. The interest rate you receive is a fixed rate plus the inflation rate which they set twice a year. The current rate is 9.62%. Anyone else do this?

I was gonna throw at least $5k into this but then got lazy/forgot about it.  Just looked at the current rates and they're at 6.89%

It changes every 6 months regardless so don’t beat yourself up. IMO they’re much better short term investments than long term (i.e., if you’re planning to hold onto it for more than 15-20 years before selling). Long term you’re practically guaranteed to do better in the S&P 500.

Ya, I just did it while the market was funky. I wish I had done it sooner like SD. Pleased with the new rate!

[WillieWatanabe]

My wife had a Roth 403(b) at her previous job. Her new job's retirement is not a roth.
Can we rollover hers to my Roth? or is that not allowed?
What would be the best option since she doesn't have any other Roths to rollover to?
We're talking around 15k.

[DQ12]

My wife had a Roth 403(b) at her previous job. Her new job's retirement is not a roth.
Can we rollover hers to my Roth? or is that not allowed?
What would be the best option since she doesn't have any other Roths to rollover to?
We're talking around 15k.

I think you can just roll it over, but the 403(b) will basically just be two buckets...roth and non-roth.

I just tansitioned my 401 to the roth option, and they said that the non-roth portion would stay non-roth, but future contributions would be taxed-roth style.  I'll pay tax on the non-roth portion when distributed or whatever. 

I'd have her talk to HR or the administrator or whoever just to make sure.

[steve dave]

My wife had a Roth 403(b) at her previous job. Her new job's retirement is not a roth.
Can we rollover hers to my Roth? or is that not allowed?
What would be the best option since she doesn't have any other Roths to rollover to?
We're talking around 15k.

I think you can just roll it over, but the 403(b) will basically just be two buckets...roth and non-roth.

I just tansitioned my 401 to the roth option, and they said that the non-roth portion would stay non-roth, but future contributions would be taxed-roth style.  I'll pay tax on the non-roth portion when distributed or whatever. 

I'd have her talk to HR or the administrator or whoever just to make sure.

Yeah, they will just lump that stuff together. I have some old Roth 401k contributions in my 401k and it takes some digging to see where it is.


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[catastrophe]

I think the employer has a fair amount of leeway in what they offer, so they’re going to be the ultimate authority on what the options are as far as Roth vs. traditional contributions and rollovers.

I do believe that you have no obligation to roll an old work retirement plan into a new job, though. I think the usual play is to roll the old Roth account into a regular Roth IRA (like through Vanguard) that you can control.

[WillieWatanabe]

I think the employer has a fair amount of leeway in what they offer, so they’re going to be the ultimate authority on what the options are as far as Roth vs. traditional contributions and rollovers.

I do believe that you have no obligation to roll an old work retirement plan into a new job, though. I think the usual play is to roll the old Roth account into a regular Roth IRA (like through Vanguard) that you can control.

I'll have ms. ww talk with HR, which I'm sure she'll love. I tried handling this through the investment company site chat, they said it should be possible but they just told me to call the rollover dept.

I have regular Roth IRA but my wife doesn't.

[Stupid Fitz]

I think the employer has a fair amount of leeway in what they offer, so they’re going to be the ultimate authority on what the options are as far as Roth vs. traditional contributions and rollovers.

I do believe that you have no obligation to roll an old work retirement plan into a new job, though. I think the usual play is to roll the old Roth account into a regular Roth IRA (like through Vanguard) that you can control.

I'll have ms. ww talk with HR, which I'm sure she'll love. I tried handling this through the investment company site chat, they said it should be possible but they just told me to call the rollover dept.

I have regular Roth IRA but my wife doesn't.

Just roll to vanguard so you can control it and have minimal fees. You can't combine with yours.

[IPA4Me]

I think the employer has a fair amount of leeway in what they offer, so they’re going to be the ultimate authority on what the options are as far as Roth vs. traditional contributions and rollovers.

I do believe that you have no obligation to roll an old work retirement plan into a new job, though. I think the usual play is to roll the old Roth account into a regular Roth IRA (like through Vanguard) that you can control.

I'll have ms. ww talk with HR, which I'm sure she'll love. I tried handling this through the investment company site chat, they said it should be possible but they just told me to call the rollover dept.

I have regular Roth IRA but my wife doesn't.

Just roll to vanguard so you can control it and have minimal fees. You can't combine with yours.

This is the correct answer. Just did it myself.

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[michigancat]

Why wouldn't she open a personal Roth and roll into that?

[WillieWatanabe]

Why wouldn't she open a personal Roth and roll into that?

I've come to find out she has quite a few accounts spread across different companies (previous jobs, non-retirement account her dad set up for her, non-retirement account her grandpa set up for her) with not a great deal of money in each and no contributions coming into them. Now that she has a good stable job, my goal was to consolidate and simply things and then decide how much money to put where. So that is why I was hesitant to open another account.

But it seems it may be best to open a personal roth. Then she has her current employer retirement and then her consolidated non-retirement accounts.

[michigancat]

Why wouldn't she open a personal Roth and roll into that?

I've come to find out she has quite a few accounts spread across different companies (previous jobs, non-retirement account her dad set up for her, non-retirement account her grandpa set up for her) with not a great deal of money in each and no contributions coming into them. Now that she has a good stable job, my goal was to consolidate and simply things and then decide how much money to put where. So that is why I was hesitant to open another account.

But it seems it may be best to open a personal roth. Then she has her current employer retirement and then her consolidated non-retirement accounts.

Yeah so she should open a Vanguard account and consolidate everything there in her name. Open a Roth, a traditional IRA account (if she has funds in a company 401kor other retirement fund) , and a pure investment account and move everything there. She'll change jobs again, it's gonna be easier to transfer to an account in her name.

[WillieWatanabe]

[Stupid Fitz]

Someone asked me what I would do with a lump sum of cash right now. I'm honestly not sure. Normally my default would be just throw it all in an S and P index and let it roll if you don't have bad debt and won't need it for a while. Would you half it with ibonds and S and P? Just DCA it monthly in S and P? It was an interesting thought exercise. What's the consensus here?

[catastrophe]

Max out tax advantaged accounts like IRAs or 529s if you’re putting into that, then I’d dump the rest into ETFs as one lump sum.

Keep in mind I did this after a cash out refi and it turned out to be a horrible decision since it was like the very top of the market (I still haven’t gotten back to even), but over time I think it’s the soundest strategy.

[DQ12]

Someone asked me what I would do with a lump sum of cash right now. I'm honestly not sure. Normally my default would be just throw it all in an S and P index and let it roll if you don't have bad debt and won't need it for a while. Would you half it with ibonds and S and P? Just DCA it monthly in S and P? It was an interesting thought exercise. What's the consensus here?

DCA into S&P fund is my go to.  Either that or put it into my pocket if I get a wild hair about buying some real estate or something.  But the former would be what my head told me to do.

[Stupid Fitz]

Someone asked me what I would do with a lump sum of cash right now. I'm honestly not sure. Normally my default would be just throw it all in an S and P index and let it roll if you don't have bad debt and won't need it for a while. Would you half it with ibonds and S and P? Just DCA it monthly in S and P? It was an interesting thought exercise. What's the consensus here?

DCA into S&P fund is my go to.  Either that or put it into my pocket if I get a wild hair about buying some real estate or something.  But the former would be what my head told me to do.

After maxing tax advantage stuff, I think this is what I would do too. Online savings are like 4% right now so sitting and going from there to S&P each month would prob be smart.

[michigancat]

my guy has me put all windfalls in VTSAX (total stock market). A little more aggressive than the S&P.

I don't think DCA makes sense. If it's going to eventually all go into the stock market for a while, just put it all in.

[Stupid Fitz]

my guy has me put all windfalls in VTSAX (total stock market). A little more aggressive than the S&P.

I don't think DCA makes sense. If it's going to eventually all go into the stock market for a while, just put it all in.

I go back and forth on this. I guess it depends on your timeframe and view of the market during that period. If you think the market as a whole will be down over the period, DCA may make sense, but if your period is 5-10 years its prob not worth the trouble and you should just throw it all in.

[steve dave]

my guy has me put all windfalls in VTSAX (total stock market). A little more aggressive than the S&P.

I don't think DCA makes sense. If it's going to eventually all go into the stock market for a while, just put it all in.

DCA is normally a bad play. Dump it in.


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[steve dave]

Also, it’s backdoor Roth szn


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[DQ12]

my guy has me put all windfalls in VTSAX (total stock market). A little more aggressive than the S&P.

I don't think DCA makes sense. If it's going to eventually all go into the stock market for a while, just put it all in.

DCA is normally a bad play. Dump it in.


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It's more conservative for sure.  I think it makes sense to avoid "timing the market" and it's what my dad (elite financial guy in my brain) told me i should do once so that's what i do.

What I don't think I'd do is dump it into a tax deferred account (401/IRA) because if I just got some fat rough ridin' stacks all of a sudden I'd want it to be a bit more liquid.  But that's just me.