Author Topic: New To Investing Thread (Read 341869 times)

ben ji · « **Reply #3425 on:** February 05, 2021, 11:36:01 AM »

That definitely sounds like a nightmare. Every time I've changed a job I roll my 401k into an my IRA ASAP so that the # in my IRA is bigger and I cant just stare at it.

420seriouscat69 · « **Reply #3426 on:** February 05, 2021, 11:38:03 AM »

Quote from: ben ji on February 05, 2021, 11:36:01 AM

That definitely sounds like a nightmare. Every time I've changed a job I roll my 401k into an my IRA ASAP so that the # in my IRA is bigger and I cant just stare at it.

I don't even know what an IRA is.

star seed 7 · « **Reply #3427 on:** February 05, 2021, 11:39:18 AM »

420seriouscat69, if you want some serious 401k shaming, I dumped everything I saved in my 20's on tuition and living expenses when I quit my job and went back to school and started over from 0 at 33.

420seriouscat69 · « **Reply #3428 on:** February 05, 2021, 11:43:55 AM »

Quote from: star seed 7 on February 05, 2021, 11:39:18 AM

420seriouscat69, if you want some serious 401k shaming, I dumped everything I saved in my 20's on tuition and living expenses when I quit my job and went back to school and started over from 0 at 33.

That's just goddamn impressive, bud. Good for you!

Now that i'm a parent, i'm starting to worry about this stuff now. I was too busy giving my paychecks to student loans in my 20's to give a damn about this stuff.

michigancat · « **Reply #3429 on:** February 05, 2021, 11:50:20 AM »

the way some providers force you to transfer funds should be illegal IMO. mailing requests and checks? gtfo

420seriouscat69 · « **Reply #3430 on:** February 05, 2021, 11:53:37 AM »

Quote from: memphis on February 05, 2021, 11:48:42 AM

At least you aren't in a crunch for the cash (hopefully) so sorting it out now is just kind of annoying . I had a HSA from my past job that was just hanging around for like 4 years (mostly out of mind) before I finally transferred it into my new one. Kind of wonder what would have happened to it if I didn't.

This is true.

Quote from: michigancat on February 05, 2021, 11:50:20 AM

the way some providers force you to transfer funds should be illegal IMO. mailing requests and checks? gtfo

I honestly thought some of my past 401K companies would just blow me up some day and remind me that I have $ with them still. Unfortunately, that's not how it's working.

Also, remember when I worked for "for profit" institutions in recruiting? A lot of these places are closed now and there's no HR company to tell me where to go.

I'm such an idiot.

steve dave · « **Reply #3431 on:** February 05, 2021, 12:05:06 PM »

wacky, we all do stupid stuff when we are younger. The important thing is you are doing smart stuff now!

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420seriouscat69 · « **Reply #3432 on:** February 05, 2021, 12:11:54 PM »

Quote from: steve dave on February 05, 2021, 12:05:06 PM

wacky, we all do stupid stuff when we are younger. The important thing is you are doing smart stuff now!

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Thanks, friend! Well said.

ben ji · « **Reply #3433 on:** February 05, 2021, 12:19:51 PM »

Quote from: 420seriouscat69 on February 05, 2021, 11:38:03 AM

Quote from: ben ji on February 05, 2021, 11:36:01 AM
That definitely sounds like a nightmare. Every time I've changed a job I roll my 401k into an my IRA ASAP so that the # in my IRA is bigger and I cant just stare at it.
I don't even know what an IRA is.

Its an Individual Retirement Account that you can open with any provider out there. Instead of rolling all your old 401k's into your new 401k you can move the old 401k into your IRA which usually has lower fee's and better investment options.

It's perfectly fine to roll your old 401k's into your new one but I think its easier to just open an IRA and every time you change jobs just roll your 401k into that.

You can also contribute directly to your IRA up to 6k per year (depending on how much money you make) for a tax break but I don't want to overwhelm you in one post. Keep throwing cash in your 401k and you'll be good.

420seriouscat69 · « **Reply #3434 on:** February 05, 2021, 12:30:39 PM »

Thank you!

puniraptor · « **Reply #3435 on:** February 05, 2021, 07:10:11 PM »

Index bros what's the deal with new these fidelity zero expense ratio funds? Gimmick? Subsidized from other funds for Market share grab?

Kat Kid · « **Reply #3436 on:** February 05, 2021, 08:56:10 PM »

It is only offered if you are on a fidelity account apparently?

ben ji · « **Reply #3437 on:** February 05, 2021, 09:33:24 PM »

Quote from: puniraptor on February 05, 2021, 07:10:11 PM

Index bros what's the deal with new these fidelity zero expense ratio funds? Gimmick? Subsidized from other funds for Market share grab?

I own a couple in my fidelity IRA and I'm not exactly sure so I did some googling...this was from a few years ago and fidelity no longer charges per trade.

Quote

The hope is that after opening an account with Fidelity -- or better yet, moving your million-dollar account to the brokerage -- you'll decide to place stock trades ($4.95 each) or put some of your money into its other mutual funds, which actually have management fees. If you keep any spare cash in your brokerage account, Fidelity will make money investing that cash and keeping most of the interest. Brokers make a lot of money on the spare cash you keep in your account -- it's one of the main ways the free brokerage service Robinhood makes money.

But even if you put all of your cash in its completely free funds, Fidelity can likely shave off a few dollars a year in revenue by lending out the stock the funds hold to short-sellers. Fund managers usually split so-called securities lending revenue with the funds' investors, sums that can easily rise into the tens of millions of dollars each year.

sys · « **Reply #3438 on:** February 05, 2021, 09:59:09 PM »

it's a really good time to be a retail investor. at least in terms of how brokerages treat you.

steve dave · « **Reply #3439 on:** February 05, 2021, 10:16:24 PM »

Quote from: sys on February 05, 2021, 09:59:09 PM

it's a really good time to be a retail investor. at least in terms of how brokerages treat you.

My first brokerage was DLJ Direct as a Sr in HS. Iirc trades were $15 which was much less than most of the competition.

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sys · « **Reply #3440 on:** February 05, 2021, 10:23:58 PM »

i'm trying to decide if it's worth the effort to move part of my money from one brokerage where i have an account to another where i also already have an account to pocket a $900 bonus. both offer free trades.

Kat Kid · « **Reply #3441 on:** February 06, 2021, 07:00:53 AM »

After trying to transfer stocks off robinhood and basically saying it is too big a pain, fidelity is also hoping to get new signups because once they have you there the inertia is huge, so all the benefits Benji listed are usually for decades not just a few months.

sys · « **Reply #3442 on:** February 06, 2021, 03:08:46 PM »

in my case, the weight of the inertia seems to be well calibrated at $900, because i can't decide if i want to do it or not. if i didn't already have an account at the bonus-offering institution, i wouldn't even give it consideration.

it's boa, if anyone else wants to take advantage of the offer. i wouldn't necessarily recommend them purely as a broker, but the website is good and they offer nice perks.

chum1 · « **Reply #3443 on:** February 08, 2021, 07:59:30 PM »

Quote

The day after Alex took his own life, Robinhood sent an automated email suggesting the trade had been resolved and he didn't owe any money.

https://www.cbsnews.com/amp/news/alex-kearns-robinhood-trader-suicide-wrongful-death-suit/

chum1 · « **Reply #3444 on:** February 08, 2021, 08:01:01 PM »

What was the -$730,000 if not his losses?

steve dave · « **Reply #3445 on:** February 08, 2021, 08:05:30 PM »

Just a tragic awful gut punch of a deal. He was a Nebraska student. He didn’t understand the closing of his positions.

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chum1 · « **Reply #3446 on:** February 08, 2021, 08:20:40 PM »

Quote from: chum1 on February 08, 2021, 08:01:01 PM

What was the -$730,000 if not his losses?

https://www.forbes.com/sites/sergeiklebnikov/2020/06/17/20-year-old-robinhood-customer-dies-by-suicide-after-seeing-a-730000-negative-balance/

michigancat · « **Reply #3447 on:** February 08, 2021, 09:37:03 PM »

I'm surprised that story didn't come up more last week

Pete · « **Reply #3448 on:** February 09, 2021, 07:29:53 AM »

Man, I empathize with that kid. I have the type of personality and character defects that I'm more inclined to be afraid of financial insecurity than death. Poor kid. EVEN IF he really did have a -$700K balance, if he declares bankruptcy, then within 7 years or so he's back to full credit and well into the start of his career none the worse for it. Hell, he'd probably would have made a GREAT accounting or finance pro.

KITNfury · « **Reply #3449 on:** February 09, 2021, 07:53:00 AM »

Quote from: Pete on February 09, 2021, 07:29:53 AM

Man, I empathize with that kid. I have the type of personality and character defects that I'm more inclined to be afraid of financial insecurity than death. Poor kid. EVEN IF he really did have a -$700K balance, if he declares bankruptcy, then within 7 years or so he's back to full credit and well into the start of his career none the worse for it. Hell, he'd probably would have made a GREAT accounting or finance pro.

That's what is so mumped up. Obviously that is a lot of coin to be in debt with, but at his age he could have recovered. Definitely not something worth dying over.