Author Topic: New To Investing Thread  (Read 327415 times)

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Offline ben ji

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Re: New To Investing Thread
« Reply #125 on: April 16, 2013, 03:27:39 PM »
Congrats, ben ji, you're hired! Just bring your cute ass puppy to our meetings and we'll get along just great. Also don't spend all my money on fishing stuff cuz I'm gonna need it at some point.

No meeting neccesary, just ask questions here and send me 1 fishing pole a year as payment.

Offline The Whale

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Re: New To Investing Thread
« Reply #126 on: April 16, 2013, 03:30:56 PM »
investing tips for new grads:

At least make sure you invest enough to get the complete company match coming out of school.

Consider upping your retirement % with each raise.  4% raise -- try to add 1-2% to retirement.   

Since you'll eventually be hitting the 401k max, figure out how your company does matching.  Some may only match X% every paycheck that you actually contribute at least X%.  So if you hit the yearly max in October and shut off contributions, you may be leaving money on the table.

Don't invest much (if any) in company stock.

Offline The Tonya Harding of Twitter Users Creep

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Re: New To Investing Thread
« Reply #127 on: April 16, 2013, 03:33:13 PM »
investing tips for new grads:

At least make sure you invest enough to get the complete company match coming out of school.

Consider upping your retirement % with each raise.  4% raise -- try to add 1-2% to retirement.   

Since you'll eventually be hitting the 401k max, figure out how your company does matching.  Some may only match X% every paycheck that you actually contribute at least X%.  So if you hit the yearly max in October and shut off contributions, you may be leaving money on the table.

Don't invest much (if any) in company stock.

ben ji! should i listen to this guy?
I think what my friend Mitch is trying to say is that true love is blind.

Offline tdaver

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Re: New To Investing Thread
« Reply #128 on: April 16, 2013, 03:34:10 PM »
I changed jobs a couple years ago and still haven't done anything with my old 401k.  It's all in one of those age-based retirement funds except for maybe 1% in the old company stock.

Should I leave it, roll-over to new 401k, roll-over IRA?  I'm already maxing out Roth and current 401k up to match.

Offline steve dave

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Re: New To Investing Thread
« Reply #129 on: April 16, 2013, 03:34:51 PM »

open your IRA, throw it all into whichever one of these you fit into:

https://personal.vanguard.com/us/funds/vanguard/TargetRetirementList

thanks super awesome life planner steve dave!

Yeah, the one thing about Index funds is that most(at least mine) 401k's dont offer them so you will have to get an IRA first.

Our company's 401k is through Vanguard so we have about 20 different Vanguard funds to choose from as well as all their target retirement funds. It's pretty baller. We also have a Roth 401k option. 100% match to 6%. Also a pension. Yep, a pension. In 2013. If I quit today I already get like $500 a month starting at age 65.

Offline steve dave

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Re: New To Investing Thread
« Reply #130 on: April 16, 2013, 03:36:10 PM »
I changed jobs a couple years ago and still haven't done anything with my old 401k.  It's all in one of those age-based retirement funds except for maybe 1% in the old company stock.

Should I leave it, roll-over to new 401k, roll-over IRA?  I'm already maxing out Roth and current 401k up to match.

Since you already have an IRA you should prolly just roll it over into the current IRA. More for ease of use than anything.

Offline steve dave

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Re: New To Investing Thread
« Reply #131 on: April 16, 2013, 03:36:28 PM »
Since you'll eventually be hitting the 401k max, figure out how your company does matching.  Some may only match X% every paycheck that you actually contribute at least X%.  So if you hit the yearly max in October and shut off contributions, you may be leaving money on the table.

good tip here

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #132 on: April 16, 2013, 03:40:20 PM »
Also, max individual contribution to Roth IRA is (right now) $5000.  Why do I, ever year, contribute $5200 thinking that is max?  I don't know folks.  So like learn from my mistake here young folks.

Offline steve dave

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Re: New To Investing Thread
« Reply #133 on: April 16, 2013, 03:41:09 PM »
Also, max individual contribution to Roth IRA is (right now) $5000.  Why do I, ever year, contribute $5200 thinking that is max?  I don't know folks.  So like learn from my mistake here young folks.

$5500 (unless you are old balls and then it's more)

1998–2001 $2,000
2002–2004 $3,000
2005 $4,000
2006–2007 $4,000
2008–2012 $5,000
2013 $5,500

Offline Kat Kid

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Re: New To Investing Thread
« Reply #134 on: April 16, 2013, 03:42:27 PM »
Also, max individual contribution to Roth IRA is (right now) $5000.  Why do I, ever year, contribute $5200 thinking that is max?  I don't know folks.  So like learn from my mistake here young folks.

$5000 for 2012 $5500 for 2013.

http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits

Offline mocat

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Re: New To Investing Thread
« Reply #135 on: April 16, 2013, 03:44:18 PM »

open your IRA, throw it all into whichever one of these you fit into:

https://personal.vanguard.com/us/funds/vanguard/TargetRetirementList

thanks super awesome life planner steve dave!

Yeah, the one thing about Index funds is that most(at least mine) 401k's dont offer them so you will have to get an IRA first.

Our company's 401k is through Vanguard so we have about 20 different Vanguard funds to choose from as well as all their target retirement funds. It's pretty baller. We also have a Roth 401k option. 100% match to 6%. Also a pension. Yep, a pension. In 2013. If I quit today I already get like $500 a month starting at age 65.

I just checked my 401(k) options and there are 2 options for Contribution Rate: Pre-tax, and Roth. Do i switch to Roth?

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #136 on: April 16, 2013, 03:44:40 PM »
Also, max individual contribution to Roth IRA is (right now) $5000.  Why do I, ever year, contribute $5200 thinking that is max?  I don't know folks.  So like learn from my mistake here young folks.

$5500 (unless you are old balls and then it's more)

1998–2001 $2,000
2002–2004 $3,000
2005 $4,000
2006–2007 $4,000
2008–2012 $5,000
2013 $5,500

I meant for 2012.  But good to hear it went up!  :thumbs:

Offline ben ji

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Re: New To Investing Thread
« Reply #137 on: April 16, 2013, 03:47:29 PM »
investing tips for new grads:

At least make sure you invest enough to get the complete company match coming out of school.

Consider upping your retirement % with each raise.  4% raise -- try to add 1-2% to retirement.   

Since you'll eventually be hitting the 401k max, figure out how your company does matching.  Some may only match X% every paycheck that you actually contribute at least X%.  So if you hit the yearly max in October and shut off contributions, you may be leaving money on the table.

Don't invest much (if any) in company stock.

ben ji! should i listen to this guy?

Good advice here. Only difference I have is that I would invest into your 401k just enough to get the full match. Some companies will match X amount with no limit but most companies will only match the first 6% or 50% of the first 10% etc.

Say your compay will only match the first 5% you invest but you want to invest 15% of your income. Put the first 5% in your 401k to get the company match and then put the remaining 10%(after tax) in your roth ira to get access to more fund choices. If you max out your IRA and still have some of that 10% left then throw it back in the 401k.

Offline Brock Landers

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Re: New To Investing Thread
« Reply #138 on: April 16, 2013, 03:50:21 PM »

open your IRA, throw it all into whichever one of these you fit into:

https://personal.vanguard.com/us/funds/vanguard/TargetRetirementList

thanks super awesome life planner steve dave!

Yeah, the one thing about Index funds is that most(at least mine) 401k's dont offer them so you will have to get an IRA first.

Our company's 401k is through Vanguard so we have about 20 different Vanguard funds to choose from as well as all their target retirement funds. It's pretty baller. We also have a Roth 401k option. 100% match to 6%. Also a pension. Yep, a pension. In 2013. If I quit today I already get like $500 a month starting at age 65.


My company discontinued their pension plan to new associates like 6 weeks before I started   :curse:

Offline The Tonya Harding of Twitter Users Creep

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Re: New To Investing Thread
« Reply #139 on: April 16, 2013, 03:53:18 PM »
investing tips for new grads:

At least make sure you invest enough to get the complete company match coming out of school.

Consider upping your retirement % with each raise.  4% raise -- try to add 1-2% to retirement.   

Since you'll eventually be hitting the 401k max, figure out how your company does matching.  Some may only match X% every paycheck that you actually contribute at least X%.  So if you hit the yearly max in October and shut off contributions, you may be leaving money on the table.

Don't invest much (if any) in company stock.

ben ji! should i listen to this guy?

Good advice here. Only difference I have is that I would invest into your 401k just enough to get the full match. Some companies will match X amount with no limit but most companies will only match the first 6% or 50% of the first 10% etc.

Say your compay will only match the first 5% you invest but you want to invest 15% of your income. Put the first 5% in your 401k to get the company match and then put the remaining 10%(after tax) in your roth ira to get access to more fund choices. If you max out your IRA and still have some of that 10% left then throw it back in the 401k.

Yeah, so I should be putting money into my Roth IRA every month? I basically just made a (semi) large contribution this morning, it has more money in it than my 401k does right now, about double actually. My company matches up to a certain percent and then a partial match up to another percent. I should be putting in as much as they will match even part of it, right?
I think what my friend Mitch is trying to say is that true love is blind.

Offline ben ji

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Re: New To Investing Thread
« Reply #140 on: April 16, 2013, 03:55:44 PM »

open your IRA, throw it all into whichever one of these you fit into:

https://personal.vanguard.com/us/funds/vanguard/TargetRetirementList

thanks super awesome life planner steve dave!

Yeah, the one thing about Index funds is that most(at least mine) 401k's dont offer them so you will have to get an IRA first.

Our company's 401k is through Vanguard so we have about 20 different Vanguard funds to choose from as well as all their target retirement funds. It's pretty baller. We also have a Roth 401k option. 100% match to 6%. Also a pension. Yep, a pension. In 2013. If I quit today I already get like $500 a month starting at age 65.

A PENSION  :sdeek:, thats crazy talk.

I just checked my 401k options with American Funds and they have like 10 not counting the Target date funds. Only 4 are "Growth" funds.

I havent made up my mind on target date funds, have about 30% of my 401k in one though.

Offline ben ji

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Re: New To Investing Thread
« Reply #141 on: April 16, 2013, 03:58:41 PM »
investing tips for new grads:

At least make sure you invest enough to get the complete company match coming out of school.

Consider upping your retirement % with each raise.  4% raise -- try to add 1-2% to retirement.   

Since you'll eventually be hitting the 401k max, figure out how your company does matching.  Some may only match X% every paycheck that you actually contribute at least X%.  So if you hit the yearly max in October and shut off contributions, you may be leaving money on the table.

Don't invest much (if any) in company stock.

ben ji! should i listen to this guy?

Good advice here. Only difference I have is that I would invest into your 401k just enough to get the full match. Some companies will match X amount with no limit but most companies will only match the first 6% or 50% of the first 10% etc.

Say your compay will only match the first 5% you invest but you want to invest 15% of your income. Put the first 5% in your 401k to get the company match and then put the remaining 10%(after tax) in your roth ira to get access to more fund choices. If you max out your IRA and still have some of that 10% left then throw it back in the 401k.

Yeah, so I should be putting money into my Roth IRA every month? I basically just made a (semi) large contribution this morning, it has more money in it than my 401k does right now, about double actually. My company matches up to a certain percent and then a partial match up to another percent. I should be putting in as much as they will match even part of it, right?

Correct, even if you get a partial match its free money.

Just figure out how much you need to contribute each month for max out your IRA((5500-amount you just put in)/9) and just have it automatically deducted each month and have it put into whatever fund you want it in.

Offline The Tonya Harding of Twitter Users Creep

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Re: New To Investing Thread
« Reply #142 on: April 16, 2013, 04:02:22 PM »
 :sdeek: im not made of money, ben ji. you should know that you're my personal finance manager.
I think what my friend Mitch is trying to say is that true love is blind.

Offline The Whale

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Re: New To Investing Thread
« Reply #143 on: April 16, 2013, 04:04:56 PM »
Our company's 401k is through Vanguard so we have about 20 different Vanguard funds to choose from as well as all their target retirement funds. It's pretty baller. We also have a Roth 401k option. 100% match to 6%. Also a pension. Yep, a pension. In 2013. If I quit today I already get like $500 a month starting at age 65.

100% match to 6% WITH the pension?

 :sdeek:

Gotta figure eventually the pension will be bought out, but still...

Offline GoodForAnother

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Re: New To Investing Thread
« Reply #144 on: April 16, 2013, 04:15:07 PM »
Our company's 401k is through Vanguard so we have about 20 different Vanguard funds to choose from as well as all their target retirement funds. It's pretty baller. We also have a Roth 401k option. 100% match to 6%. Also a pension. Yep, a pension. In 2013. If I quit today I already get like $500 a month starting at age 65.

our companies have identical retirement benefits  :thumbs:

though idk really about the roth 401 option.  I get the 6% and a pension though.

WAIT MAYBE WE WORK AT THE SAME PLACE
emaw

Offline ben ji

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Re: New To Investing Thread
« Reply #145 on: April 16, 2013, 04:17:46 PM »
:sdeek: im not made of money, ben ji. you should know that you're my personal finance manager.

Okay well take 10/15%(whichever you prefer) of your salary.

x= amount you want to save
Y= amount you contribute  to 401k to get any type of match
z= amount you contribute to IRA

X-Y=Z

Once you figure out what Z is just divide it by 12 and have it automatically withdrawn each month on a certain date.

Offline The Tonya Harding of Twitter Users Creep

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Re: New To Investing Thread
« Reply #146 on: April 16, 2013, 04:20:27 PM »
:sdeek: im not made of money, ben ji. you should know that you're my personal finance manager.

Okay well take 10/15%(whichever you prefer) of your salary.

x= amount you want to save
Y= amount you contribute  to 401k to get any type of match
z= amount you contribute to IRA

X-Y=Z

Once you figure out what Z is just divide it by 12 and have it automatically withdrawn each month on a certain date.

 :thumbs: you got it, boss.
I think what my friend Mitch is trying to say is that true love is blind.

Offline GoodForAnother

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Re: New To Investing Thread
« Reply #147 on: April 16, 2013, 04:20:45 PM »
if I work for this company until I'm 55 I get 967.68 a month until I die.  or a bunch of other silly options that are all like 900 a month or so.  or I can take 1879.52 for 10 years.  or I can get a lump sum of 197,519.20.  that's pretty cool I guess.
emaw

Offline The Tonya Harding of Twitter Users Creep

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Re: New To Investing Thread
« Reply #148 on: April 16, 2013, 04:23:34 PM »
if I work for this company until I'm 55 I get 967.68 a month until I die.  or a bunch of other silly options that are all like 900 a month or so.  or I can take 1879.52 for 10 years.  or I can get a lump sum of 197,519.20.  that's pretty cool I guess.

are you looking for advice? ask ben ji, he handles that kind of stuff for me
I think what my friend Mitch is trying to say is that true love is blind.

Online CNS

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Re: New To Investing Thread
« Reply #149 on: April 16, 2013, 04:26:24 PM »
if I work for this company until I'm 55 I get 967.68 a month until I die.  or a bunch of other silly options that are all like 900 a month or so.  or I can take 1879.52 for 10 years.  or I can get a lump sum of 197,519.20.  that's pretty cool I guess.

1. Lump sum
2. craps thread
3. profit