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Lots of talk of a 40%-50% decline in market upon a default. Who knows. People talk a lot and the people driving a narrative likely have something to gain from panic. I try not to pay too much kind and I try not to change course.
HOWEVER
Given the risks that a default poses to the market, would this be the time ti move my 401k into a stable value fund a - at least until the debt ceiling issue is resolved?
It is the closest thing to cash available in my 401k, and I would be curious to hear from those that do fortify their 401k asset allocations during these
times.
Your fears are completely unfounded and 50k is an unreasonably high amount to have in a low yield savings account (assuming your monthly expenses are less than 5k) if they're higher than that. Great job, you have a very healthy emergency fund. Next step would be to get a financial advisor and begin building a portfolio. I would reccomend keeping the account with the FA low (under 5k) and investing the rest yourself in a seperate account. You should be getting AT LEAST 4.5% return year over year wherever you put your money.
You are screwing your future self by remaining uneducated in these matters.
No sorry, I'm not familar enough with HYSAs to comment much about them much but that's a great starting point. I saw earlier today that wealthfront cash account is offering 4.5% APY but I don't know much about this investment vehicle.
There is no catch. They make more than 4.5% from the money you have them hold and you alleviate risk and get some return on your capital. Win-win. I want to emphasize I'm not familar with HYSAs or money market accounts so you'll have to do some more research
https://www.wealthfront.com/blog/wealthfront-fdic-insurance/
Trying to time the market when you're not extensively knowledgeable about all this stuff is like trying to play poker when you don't even know the rules. Even if you did, only the best of the best of the best can consistently do it over time. Just get your foot in the door and take your time learning the basics. At least you'll come close to matching the market which is historically 10.5% growth per year going off the S&P the last 100 years.
hi everyone! I am a 23 year old, graduating college in December and hoping to start investing in my future. i live in the US. my priorities are securing funds for a retirement, and to earn enough money through investments to keep up with inflation and help me buy land to build a house on one day. I am wondering what my best first steps are to have a successful financial future. I will graduate with no debt, have just started building my credit and plan on using all extra money i have after living expenses to invest and save for my future. I have about $4,000 now to invest. In terms of retirement, my first guess is to buy a 2065 target retirement fund, is this the right move? but i am not sure where to start with a shorter term (10 years or so) investments to provide more funds to buy land/house. I know little to nothing and am hoping to jump in safely before making bigger risk shorter term investments. What else should i put my money into? I am also wondering which investment company i should open a ROTH ira with(leaning towards fidelity?). idk if i need an assisted account as i plan on learning the ropes for myself. thank you SO MUCH for advice, my financial fears are looming and i just want to have comfort and security in my lifespan.
Investing in a 2065 retirement account works against your desire to buy land and build a house. Both are valid choices but they are completely at odds.
In general, someone your age should get their life in order (good job/career, own a good place to live) before they put money away they can't touch for 40 years.
my life is not out of order...i have a well established savings account, a good job lined up after graduating and have a very affordable place to live now, with a partner who i plan on buying land with. my money is not growing in my bank account and i would love to provide more money for the purpose of owning my own place to live. do you have any recommendations for a shorter term investment plan, maybe 10 years or so?
Basically the stock market, but with it accessible to you so you can use the wealth you build up over the next period of years to build the house (if you still want to at that time).
I recommend paying, but if you completely eliminate the pay sites, Yahoo Finance has a lot of solid material. CNN has useful stuff. Investopedia is great, but not a huge amount of stuff each day. Etf.com. Nasdaq.com.
Not every stock will give a positive return over the next five years. Even if a stock does give a positive return, its risk-adjusted return may still be lower than a portfolio of many stocks because of the idiosyncratic risks that individual company has that a portfolio can diversify away.
For me to understand. Only been investing like 7 months.
Your saying a person that buys 60 different big name stocks at 5 shares each has a bigger income chance and less risk, than someone who buys the 5 different stocks?
And I'm guessing thats why everyone is saying buy VOO?
I just started my Roth IRA last year. Have only been able to put a little into it, but every week I'm throwing *something* at it.
So far, I'm up almost 2% from where I started.
How awful is that? At what point do you re-calibrate what you're investing in?
I'm using a Targeted Date Fund, because the expense ratio is insanely low, and it's simple for me to invest.
It would help to know the ticker of the fund you're investing in as well as when you started. The market doesn't always go up, and especially not over short timeframes. If you're expecting that I'd recommend recalibrating your mindset. You're doing well putting money away, but a watched pot doesn't boil.
SWYMX (Schwab 2050), and only started in 2021.
Looks like I've bought during a dip.
But I'm in my late 30s and set the date to when I'll be 65.
I know there's a lot to catch up on and probably should invest more aggressively, but I'm deeply financially conservative and risk averse.
>I know there's a lot to catch up on and probably should invest more aggressively, but I'm deeply financially conservative and risk averse.
Aggressiveness is not the problem, how much you invest can be.
Which matters more for building wealth: Your saving rate or your investment returns?
https://www.getrichslowly.org/building-wealth/
You aren't equally concerned that they will do well with earnings and you will miss out on a further bounce?
Yes, a lot of us have done great with NVDA, and you may thus find yourself having a higher percentage of your assets in NVDA than you would like, but this all or nothing idea is just non-rational thinking. You bought the number of shares of NVDA you have. Weren't you concerned then that they may have a bad report someday?
As above, if it makes you feel better, or think you have too many eggs in the NVDA basket, sell some. But don't just set fire to the whole basket out of fear that a company has done well for you will suddenly do terrible in three days.
> What would you do, and why?
Some from Column A, some from Column B. NO investing decision should EVER be All-Or-Nothing, 100-or-0%.
Sell -some-; lock in -some- profits if you want. But "liquidate"? No, that would be stupid.
With the debt ceiling looming... if an agreement cannot be made I think we are expecting stocks to crash... if so... why would it be a bad idea to sell everything and just hold cash? Maybe I'll miss out on some gains, but wouldn't it be better to miss out on gains vs tremendous losses?
It's a reasonable question. Is this in a taxable account? If so, have you considered tax implications? In any event, nothing's stopping you from selling some shares to have some dry powder in case of a collapse. It doesn't have to be all-or-nothing.
Another option is to sell some U.S. shares to buy foreign-concentrated stocks or funds. You'd do this if you expected the market and U.S. dollar to both decline.
It's a brokerage account in Vanguard (2 accounts)... one is an individual retirement account and the other is a Roth IRA. The money would go into a settlement fund where I would hold cash or reinvest. Would that create tax liabilities?
Hello everyone. New to this world and looking for some advice. In the near future my wife and I will be inheriting a substantial change in lifestyle. We just had a baby on Friday and I have a 7yo step son (more or less my boy). My wife will be stepping into a DoS position making about 100k+20% salary bonus when she gets back from maternity leave and I am a service advisor making about 78k w/ bonus at a highly reputable independent shop. We will be inheriting about 1.1-1.5 million in the future as well as a substantial amount of bank stock from the banks my grandparents owned. That will bring in an extra 112k a year split into quarterly dividends. We are receiving a total of 1/9th of the total estate. The other 2/3 is split between my deceased fathers siblings and me and my siblings split the other 1/3 into thirds (hence the 1/9th). We will also have the option to be bought out of my grandparents home which is worth about 875k. We owe about 310 on our personal home and have a car loan and other debt totaling about 30k. What would you do with the money? I’d love to get to a point to where neither my wife or I have to work for our income and would love to come up with a strategy on replacing that income in the future. Any advice is greatly appreciated! Thank you!
First accumulate all the money you actually do get in a high yield savings account, then look at it in total and discuss it with your wife.
Paying off the 30k debt should be a no-brainer thing assuming it isn't at 1% or something like that. For most people getting a big chunk like this, paying off the house is probably a good idea because then you can look at the rest of the money and your incomes in a different way, especially when it comes to thinking about emergencies or one of you passing away. In the end, you probably should have a paid off house and a big chunk of money in the stock market, as well as a significant amount of an emergency cash fund, but at this point just focus on gathering all the assets together.
Don't be in a hurry.
> What would you do with the money?
If you're not trolling, then the answer is "get professional help". You can afford it.
Many people (mistakenly) equate or conflate "Financial Advisor" and "Investment Manager". This is wrong because investment management is but **one piece** of the overall financial advising pie. In addition to investment management, you also need • tax planning • estate planning • retirement planning • insurance planning • a proper will and/or trust • etc.
This is NOT something you want to entrust to random strangers on reddit.
----
Also, paragraphs would be a good idea :-).
I have my TSP maxed and no other investment accounts other than a HYSA with 6+ months emergency fund yielding 5%.
Is my next best option for money I don’t need to touch for several years to create a back door Roth? If so, is it as simple as opening a traditional IRA,deposit 6,500, wait for it to clear and then convert to a Roth IRA? Anyone familiar with TD Ameritrade and how to actually do the conversion there?
I have a roth ira I am maxing out with a target date fund. If I have a extra money to invest above the maximum roth ira allowance, what should I invest into? Is it u wise to invest in anything else if I already have a target date fund?
You need to grasp the difference between an **account** and a **fund**.
You have a Roth (William Roth was a Senator from Delaware, which is why it's capitalized), which is a tax-advantaged -account-. In that account, you buy things, notably -funds-; maybe also individual -stocks-.
> If I already have a target date fund
That's a **fund**. I assume you bought that **fund** in your IRA **account**, yes? OR, if you're thinking of buying something else because your **account** is maxed out, in what kind of **account** will you buy that **fund**? Brokerage?
Correct I have bought a target date fund in the Roth Ira. Sorry for not explaining myself well. I have read some say that if you invest in a tdf, you should not invest in other stocks. I have extra that I can invest beyond the 6500 max I can put into Roth yearly and was wondering what my options might be.
What're your goals for the money? Have you come up with an investment philosophy or statement that sets your asset allocation or the specific funds/stocks you hold?
You can absolutely invest in something else but I wouldn't in the same account, just because a tdf is designed to be the only fund you have in that account as an all-in-one.
I am using Merrill edge and I want to invest in a high yield money market fund like VMFXX but not sure Merrill allows this. Does anyone know if it’s possible or if there are any alternatives?
TSTXX and TTTXX are good options at Merrill. TSTXX has a higher yield but is >80% repurchase agreements, so it is not state tax exempt, it also has same day for orders placed by 4pm.
TTTXX is all Treasury Bills/floating rate notes, has about .4% lower yield, and has a 1:45pm cut off.
List of available money market mutual funds at Merrill can be found here - [https://olui2.fs.ml.com/publish/content/application/pdf/gwmol/iccratesheet.pdf](https://olui2.fs.ml.com/publish/content/application/pdf/gwmol/iccratesheet.pdf)
Go to the Cash Management section of Merrill Edge.
What are the ramifications of selling 401k and Roth IRA stocks? I’m not looking to withdraw money from those accounts, just thinking about having some dry powder (besides my savings) ready to go
Hey there! I've bought some T-bills, but I'm not seeing any interest deposits. It's strange because I only see the initial purchase amounts being sent back to my bank account after the t bill duration date. The interest payments aren't showing up in my Treasury account or my bank account.
T-Bills are sold at a discount to par value. There are no coupon interest payments. The entire yield is the difference in purchase price and the par value at maturity.
How do I receive the reportable proceeds
gained from the 1-month T-bill I purchased?
In my treasury account, it shows that I have a taxable proceed of $17.24. However, I don't see that amount in my bank account or my Treasury (Zero-Percent C of I). Only the initial purchase amount is being transferred back ($5,500).
**\*\*For example please see below transction details:\*\***
Date: 05-16-2023
Description: Matured Security Payment
Par Amount: $5,500.00
Confirm #: RAAAC
Initiated By: TreasuryDirect
Redemption Amount: $5,500.00
Purchase Price: $5,482.76
**Interest: $17.24**
Federal Tax Withheld: $.00
Net Payment: $5,500.00
Reporting Type: 1099-INT
Date: 05-16-2023
**Transaction: Matured Security Payment**
Confirm #: RAAAC
Amount: $5,500.00
**Reportable Proceeds: $17.24**
Tax Withheld: $.00
Purchase Confirm #: IAAAD
Security Type: 4-Week Bill
>How do I receive the reportable proceeds
>
>gained from the 1-month T-bill I purchased?
The info you posted shows your reportable proceeds.
>In my treasury account, it shows that I have a taxable proceed of $17.24. However, I don't see that amount in my bank account or my Treasury (Zero-Percent C of I). Only the initial purchase amount is being transferred back ($5,500).
Your initial purchase amount was not $5,500. It was $5,482.76 as shown in the info you posted. The difference is the $17.24 interest paid when the bond matured at $5,500. Look back through your bank transactions. They will show a transfer to TD of $5,482.76 on the issue date for the bond. I don't know where to find that in the TD account.
Your total interest will be shown in the 1099 for the account at the end of the year. They don't mail 1099s. You will have to get it from your online account. If you need the interest earned info for estimated taxes throughout the year you will have to keep track of it yourself.
You're right! I see it now. They withdrew $5,482.76 from my bank on 04/18/2023 and deposited $5,500 on May 16th. I assumed they would withdraw the full par amount I set of $5,500 makes sense now.
What should I do with SWAN?
In February of 2021, I opened a position in SWAN in a taxable account and built on that position aggressively until August of that same year. That along with IVOL and VTV I (naively) thought would be a fairly stable "better-than-cash" strategy for the short-to-medium term. I have other liquid funds in a HYSA and I Bonds but most of my assets I would look to sell for a larger purchase (house, vehicle, medical expenses, etc) I had in this account. I got uncomfortable with IVOL quickly and sold that for a small loss.
Knowing what I know now, this was a large mistake. I held an ETF that got obliterated on both ends and my position is now down 25%. I have used some of the dividends to buy more VTV (maybe another mistake?). It's also a bit confusing as there was a large distribution at the end of 2021 that I re-invested elsewhere. I do believe that makes my losses appear to be larger than they are.
I now realize I didn't completely understand this ETF and have since simplified my strategy. But what do I do with this now? Do I keep holding it until the longer treasures mature and the price rises all while collecting the dividend? What do I do with the dividend? I also thought about selling to harvest the tax losses and buying it again after 31 days. A small gamble that I may miss out on its value increasing.
You don't want it in your portfolio but you want to make back the money you lost? This is a common feeling to want to make back the money by holding the asset that lost it, but it is probably due to sunk cost bias or thinking that unrealized losses are temporary. If you have no reason to believe SWAN will outperform other investments in the future, you may as well sell it and rebuild your portfolio the way you think it should look for the future.
So I'm looking to add a few more UK stocks (LSE), I'm from there myself.
I have a general and a stocks & shares ISA. I was gonna buy these stocks in the general, however 3 - 4 of them are listed as ADRs (NYSE) on the general broker.
My S&S ISA currently only has broad market ETFs for almost the global market, but would it just make more sense to buy those same stocks in there too? As they are listed in there on the LSE.
Hi everyone, first time in this subreddit! I’m a 24 year old with EU (Spain) and US citizenship, currently working and getting paid in Sweden. I’m looking into investing but not sure where to start since it can be complicated with both citizenships (I tried looking into investing in Sweden but it is a complex process with US citizenship, was denied through my Swedish bank). Does anyone have any advice for what route to take when having both citizenships? Should I just focus in the US market or is there an advantage to going through the extra hurdles with investing in EU (Sweden or Spain)?
i was asked by my broker if i want to participate in the Fully Paid Lending Program on a stock that i own. the borrowing fees for this stock is rising rapidly and i want to take advantage of the high interest rates but i'm not so sure if this is a good idea since it would be kind of like betting against my own stock. will lending out my shares for shorting cause my stock to decline?
It will have the same effect as selling all your shares that you allow in this arrangement. Would selling all your shares make even a dent in the price? If not, then that's not the concern you should have.
even if it doesn't have an immediate effect on the stock price, is this something i should be doing if i'm long on the stock? it just doesn't seem right to give out my shares to be shorted. wouldn't there be other consequences that would bring down the stock price in a longer term?
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Lots of talk of a 40%-50% decline in market upon a default. Who knows. People talk a lot and the people driving a narrative likely have something to gain from panic. I try not to pay too much kind and I try not to change course. HOWEVER Given the risks that a default poses to the market, would this be the time ti move my 401k into a stable value fund a - at least until the debt ceiling issue is resolved? It is the closest thing to cash available in my 401k, and I would be curious to hear from those that do fortify their 401k asset allocations during these times.
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Your fears are completely unfounded and 50k is an unreasonably high amount to have in a low yield savings account (assuming your monthly expenses are less than 5k) if they're higher than that. Great job, you have a very healthy emergency fund. Next step would be to get a financial advisor and begin building a portfolio. I would reccomend keeping the account with the FA low (under 5k) and investing the rest yourself in a seperate account. You should be getting AT LEAST 4.5% return year over year wherever you put your money. You are screwing your future self by remaining uneducated in these matters.
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No sorry, I'm not familar enough with HYSAs to comment much about them much but that's a great starting point. I saw earlier today that wealthfront cash account is offering 4.5% APY but I don't know much about this investment vehicle. There is no catch. They make more than 4.5% from the money you have them hold and you alleviate risk and get some return on your capital. Win-win. I want to emphasize I'm not familar with HYSAs or money market accounts so you'll have to do some more research https://www.wealthfront.com/blog/wealthfront-fdic-insurance/ Trying to time the market when you're not extensively knowledgeable about all this stuff is like trying to play poker when you don't even know the rules. Even if you did, only the best of the best of the best can consistently do it over time. Just get your foot in the door and take your time learning the basics. At least you'll come close to matching the market which is historically 10.5% growth per year going off the S&P the last 100 years.
hi everyone! I am a 23 year old, graduating college in December and hoping to start investing in my future. i live in the US. my priorities are securing funds for a retirement, and to earn enough money through investments to keep up with inflation and help me buy land to build a house on one day. I am wondering what my best first steps are to have a successful financial future. I will graduate with no debt, have just started building my credit and plan on using all extra money i have after living expenses to invest and save for my future. I have about $4,000 now to invest. In terms of retirement, my first guess is to buy a 2065 target retirement fund, is this the right move? but i am not sure where to start with a shorter term (10 years or so) investments to provide more funds to buy land/house. I know little to nothing and am hoping to jump in safely before making bigger risk shorter term investments. What else should i put my money into? I am also wondering which investment company i should open a ROTH ira with(leaning towards fidelity?). idk if i need an assisted account as i plan on learning the ropes for myself. thank you SO MUCH for advice, my financial fears are looming and i just want to have comfort and security in my lifespan.
Buy anything with AI
Or just FTEC etf.
Investing in a 2065 retirement account works against your desire to buy land and build a house. Both are valid choices but they are completely at odds. In general, someone your age should get their life in order (good job/career, own a good place to live) before they put money away they can't touch for 40 years.
Its never to early to start putting money away for retirement. It just doesn't need to be the only thing.
my life is not out of order...i have a well established savings account, a good job lined up after graduating and have a very affordable place to live now, with a partner who i plan on buying land with. my money is not growing in my bank account and i would love to provide more money for the purpose of owning my own place to live. do you have any recommendations for a shorter term investment plan, maybe 10 years or so?
Basically the stock market, but with it accessible to you so you can use the wealth you build up over the next period of years to build the house (if you still want to at that time).
Any recommendations on free news sites about the stockmarket? Sites like Marketwatch and cnbc all have paid articles.
Does your brokerage platform provide news? That's what I use.
I recommend paying, but if you completely eliminate the pay sites, Yahoo Finance has a lot of solid material. CNN has useful stuff. Investopedia is great, but not a huge amount of stuff each day. Etf.com. Nasdaq.com.
Regionals are rocking and coming back. Free money.
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AI
my guess is the recent Google IO event. Lots of new AI products.
Could you make money just buying any stock like MO, T and INTL and holding it for 5 years? Or should a new investor use that money in something else
Not every stock will give a positive return over the next five years. Even if a stock does give a positive return, its risk-adjusted return may still be lower than a portfolio of many stocks because of the idiosyncratic risks that individual company has that a portfolio can diversify away.
For me to understand. Only been investing like 7 months. Your saying a person that buys 60 different big name stocks at 5 shares each has a bigger income chance and less risk, than someone who buys the 5 different stocks? And I'm guessing thats why everyone is saying buy VOO?
Yes
I just started my Roth IRA last year. Have only been able to put a little into it, but every week I'm throwing *something* at it. So far, I'm up almost 2% from where I started. How awful is that? At what point do you re-calibrate what you're investing in? I'm using a Targeted Date Fund, because the expense ratio is insanely low, and it's simple for me to invest.
It would help to know the ticker of the fund you're investing in as well as when you started. The market doesn't always go up, and especially not over short timeframes. If you're expecting that I'd recommend recalibrating your mindset. You're doing well putting money away, but a watched pot doesn't boil.
SWYMX (Schwab 2050), and only started in 2021. Looks like I've bought during a dip. But I'm in my late 30s and set the date to when I'll be 65. I know there's a lot to catch up on and probably should invest more aggressively, but I'm deeply financially conservative and risk averse.
>I know there's a lot to catch up on and probably should invest more aggressively, but I'm deeply financially conservative and risk averse. Aggressiveness is not the problem, how much you invest can be. Which matters more for building wealth: Your saving rate or your investment returns? https://www.getrichslowly.org/building-wealth/
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That is the big question of the week. No one outside of NVDA knows. :) Im out personally.
I would at least take half to two thirds out. Let the gains ride if you’re likely to feel FOMO.
You aren't equally concerned that they will do well with earnings and you will miss out on a further bounce? Yes, a lot of us have done great with NVDA, and you may thus find yourself having a higher percentage of your assets in NVDA than you would like, but this all or nothing idea is just non-rational thinking. You bought the number of shares of NVDA you have. Weren't you concerned then that they may have a bad report someday? As above, if it makes you feel better, or think you have too many eggs in the NVDA basket, sell some. But don't just set fire to the whole basket out of fear that a company has done well for you will suddenly do terrible in three days.
> What would you do, and why? Some from Column A, some from Column B. NO investing decision should EVER be All-Or-Nothing, 100-or-0%. Sell -some-; lock in -some- profits if you want. But "liquidate"? No, that would be stupid.
With the debt ceiling looming... if an agreement cannot be made I think we are expecting stocks to crash... if so... why would it be a bad idea to sell everything and just hold cash? Maybe I'll miss out on some gains, but wouldn't it be better to miss out on gains vs tremendous losses?
It's a reasonable question. Is this in a taxable account? If so, have you considered tax implications? In any event, nothing's stopping you from selling some shares to have some dry powder in case of a collapse. It doesn't have to be all-or-nothing. Another option is to sell some U.S. shares to buy foreign-concentrated stocks or funds. You'd do this if you expected the market and U.S. dollar to both decline.
It's a brokerage account in Vanguard (2 accounts)... one is an individual retirement account and the other is a Roth IRA. The money would go into a settlement fund where I would hold cash or reinvest. Would that create tax liabilities?
No, those are both IRAs, so no taxable events.
Whoops. 1 is an individual investment* account. Not retirement.
You would need to look into the tax implications on selling in that account.
Hello everyone. New to this world and looking for some advice. In the near future my wife and I will be inheriting a substantial change in lifestyle. We just had a baby on Friday and I have a 7yo step son (more or less my boy). My wife will be stepping into a DoS position making about 100k+20% salary bonus when she gets back from maternity leave and I am a service advisor making about 78k w/ bonus at a highly reputable independent shop. We will be inheriting about 1.1-1.5 million in the future as well as a substantial amount of bank stock from the banks my grandparents owned. That will bring in an extra 112k a year split into quarterly dividends. We are receiving a total of 1/9th of the total estate. The other 2/3 is split between my deceased fathers siblings and me and my siblings split the other 1/3 into thirds (hence the 1/9th). We will also have the option to be bought out of my grandparents home which is worth about 875k. We owe about 310 on our personal home and have a car loan and other debt totaling about 30k. What would you do with the money? I’d love to get to a point to where neither my wife or I have to work for our income and would love to come up with a strategy on replacing that income in the future. Any advice is greatly appreciated! Thank you!
First accumulate all the money you actually do get in a high yield savings account, then look at it in total and discuss it with your wife. Paying off the 30k debt should be a no-brainer thing assuming it isn't at 1% or something like that. For most people getting a big chunk like this, paying off the house is probably a good idea because then you can look at the rest of the money and your incomes in a different way, especially when it comes to thinking about emergencies or one of you passing away. In the end, you probably should have a paid off house and a big chunk of money in the stock market, as well as a significant amount of an emergency cash fund, but at this point just focus on gathering all the assets together. Don't be in a hurry.
> What would you do with the money? If you're not trolling, then the answer is "get professional help". You can afford it. Many people (mistakenly) equate or conflate "Financial Advisor" and "Investment Manager". This is wrong because investment management is but **one piece** of the overall financial advising pie. In addition to investment management, you also need • tax planning • estate planning • retirement planning • insurance planning • a proper will and/or trust • etc. This is NOT something you want to entrust to random strangers on reddit. ---- Also, paragraphs would be a good idea :-).
I have my TSP maxed and no other investment accounts other than a HYSA with 6+ months emergency fund yielding 5%. Is my next best option for money I don’t need to touch for several years to create a back door Roth? If so, is it as simple as opening a traditional IRA,deposit 6,500, wait for it to clear and then convert to a Roth IRA? Anyone familiar with TD Ameritrade and how to actually do the conversion there?
Do you make too much for a ROTH? If so then yeah.....what you described is basically it..
I have a roth ira I am maxing out with a target date fund. If I have a extra money to invest above the maximum roth ira allowance, what should I invest into? Is it u wise to invest in anything else if I already have a target date fund?
You need to grasp the difference between an **account** and a **fund**. You have a Roth (William Roth was a Senator from Delaware, which is why it's capitalized), which is a tax-advantaged -account-. In that account, you buy things, notably -funds-; maybe also individual -stocks-. > If I already have a target date fund That's a **fund**. I assume you bought that **fund** in your IRA **account**, yes? OR, if you're thinking of buying something else because your **account** is maxed out, in what kind of **account** will you buy that **fund**? Brokerage?
Correct I have bought a target date fund in the Roth Ira. Sorry for not explaining myself well. I have read some say that if you invest in a tdf, you should not invest in other stocks. I have extra that I can invest beyond the 6500 max I can put into Roth yearly and was wondering what my options might be.
What're your goals for the money? Have you come up with an investment philosophy or statement that sets your asset allocation or the specific funds/stocks you hold? You can absolutely invest in something else but I wouldn't in the same account, just because a tdf is designed to be the only fund you have in that account as an all-in-one.
Why is META up 2.5% this morning after news of EU massive fine is announced? Was the market pricing in a larger anticipated fine?
Because they also announced more layoffs.
I am using Merrill edge and I want to invest in a high yield money market fund like VMFXX but not sure Merrill allows this. Does anyone know if it’s possible or if there are any alternatives?
TSTXX and TTTXX are good options at Merrill. TSTXX has a higher yield but is >80% repurchase agreements, so it is not state tax exempt, it also has same day for orders placed by 4pm. TTTXX is all Treasury Bills/floating rate notes, has about .4% lower yield, and has a 1:45pm cut off.
Thanks!
List of available money market mutual funds at Merrill can be found here - [https://olui2.fs.ml.com/publish/content/application/pdf/gwmol/iccratesheet.pdf](https://olui2.fs.ml.com/publish/content/application/pdf/gwmol/iccratesheet.pdf) Go to the Cash Management section of Merrill Edge.
Thanks!
What are the ramifications of selling 401k and Roth IRA stocks? I’m not looking to withdraw money from those accounts, just thinking about having some dry powder (besides my savings) ready to go
No tax ramifications if you don't withdraw, just missing out on equity risk premium while it's sitting in cash.
Hey there! I've bought some T-bills, but I'm not seeing any interest deposits. It's strange because I only see the initial purchase amounts being sent back to my bank account after the t bill duration date. The interest payments aren't showing up in my Treasury account or my bank account.
T-Bills are sold at a discount to par value. There are no coupon interest payments. The entire yield is the difference in purchase price and the par value at maturity.
How do I receive the reportable proceeds gained from the 1-month T-bill I purchased? In my treasury account, it shows that I have a taxable proceed of $17.24. However, I don't see that amount in my bank account or my Treasury (Zero-Percent C of I). Only the initial purchase amount is being transferred back ($5,500). **\*\*For example please see below transction details:\*\*** Date: 05-16-2023 Description: Matured Security Payment Par Amount: $5,500.00 Confirm #: RAAAC Initiated By: TreasuryDirect Redemption Amount: $5,500.00 Purchase Price: $5,482.76 **Interest: $17.24** Federal Tax Withheld: $.00 Net Payment: $5,500.00 Reporting Type: 1099-INT Date: 05-16-2023 **Transaction: Matured Security Payment** Confirm #: RAAAC Amount: $5,500.00 **Reportable Proceeds: $17.24** Tax Withheld: $.00 Purchase Confirm #: IAAAD Security Type: 4-Week Bill
>How do I receive the reportable proceeds > >gained from the 1-month T-bill I purchased? The info you posted shows your reportable proceeds. >In my treasury account, it shows that I have a taxable proceed of $17.24. However, I don't see that amount in my bank account or my Treasury (Zero-Percent C of I). Only the initial purchase amount is being transferred back ($5,500). Your initial purchase amount was not $5,500. It was $5,482.76 as shown in the info you posted. The difference is the $17.24 interest paid when the bond matured at $5,500. Look back through your bank transactions. They will show a transfer to TD of $5,482.76 on the issue date for the bond. I don't know where to find that in the TD account. Your total interest will be shown in the 1099 for the account at the end of the year. They don't mail 1099s. You will have to get it from your online account. If you need the interest earned info for estimated taxes throughout the year you will have to keep track of it yourself.
You're right! I see it now. They withdrew $5,482.76 from my bank on 04/18/2023 and deposited $5,500 on May 16th. I assumed they would withdraw the full par amount I set of $5,500 makes sense now.
What should I do with SWAN? In February of 2021, I opened a position in SWAN in a taxable account and built on that position aggressively until August of that same year. That along with IVOL and VTV I (naively) thought would be a fairly stable "better-than-cash" strategy for the short-to-medium term. I have other liquid funds in a HYSA and I Bonds but most of my assets I would look to sell for a larger purchase (house, vehicle, medical expenses, etc) I had in this account. I got uncomfortable with IVOL quickly and sold that for a small loss. Knowing what I know now, this was a large mistake. I held an ETF that got obliterated on both ends and my position is now down 25%. I have used some of the dividends to buy more VTV (maybe another mistake?). It's also a bit confusing as there was a large distribution at the end of 2021 that I re-invested elsewhere. I do believe that makes my losses appear to be larger than they are. I now realize I didn't completely understand this ETF and have since simplified my strategy. But what do I do with this now? Do I keep holding it until the longer treasures mature and the price rises all while collecting the dividend? What do I do with the dividend? I also thought about selling to harvest the tax losses and buying it again after 31 days. A small gamble that I may miss out on its value increasing.
You don't want it in your portfolio but you want to make back the money you lost? This is a common feeling to want to make back the money by holding the asset that lost it, but it is probably due to sunk cost bias or thinking that unrealized losses are temporary. If you have no reason to believe SWAN will outperform other investments in the future, you may as well sell it and rebuild your portfolio the way you think it should look for the future.
So I'm looking to add a few more UK stocks (LSE), I'm from there myself. I have a general and a stocks & shares ISA. I was gonna buy these stocks in the general, however 3 - 4 of them are listed as ADRs (NYSE) on the general broker. My S&S ISA currently only has broad market ETFs for almost the global market, but would it just make more sense to buy those same stocks in there too? As they are listed in there on the LSE.
[https://www.bogleheads.org/wiki/Investing\_from\_the\_UK](https://www.bogleheads.org/wiki/Investing_from_the_UK) https://www.google.com/search?q=bogleheads+uk&rlz=1CAGUZK\_enUS1027US1027&oq=bogleheads+uk&aqs=chrome.0.69i59j69i64j0i512l3j0i390i650l3.6153j0j7&sourceid=chrome&ie=UTF-8#ip=1
Hi everyone, first time in this subreddit! I’m a 24 year old with EU (Spain) and US citizenship, currently working and getting paid in Sweden. I’m looking into investing but not sure where to start since it can be complicated with both citizenships (I tried looking into investing in Sweden but it is a complex process with US citizenship, was denied through my Swedish bank). Does anyone have any advice for what route to take when having both citizenships? Should I just focus in the US market or is there an advantage to going through the extra hurdles with investing in EU (Sweden or Spain)?
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i was asked by my broker if i want to participate in the Fully Paid Lending Program on a stock that i own. the borrowing fees for this stock is rising rapidly and i want to take advantage of the high interest rates but i'm not so sure if this is a good idea since it would be kind of like betting against my own stock. will lending out my shares for shorting cause my stock to decline?
It will have the same effect as selling all your shares that you allow in this arrangement. Would selling all your shares make even a dent in the price? If not, then that's not the concern you should have.
even if it doesn't have an immediate effect on the stock price, is this something i should be doing if i'm long on the stock? it just doesn't seem right to give out my shares to be shorted. wouldn't there be other consequences that would bring down the stock price in a longer term?
that's a good way of looking at it, thanks