This is why I haven't made a taxable account with them. Even your spouses account can interfere. They're selling TLH as if anybody can use it but when you get in the fine print it seems like almost no one would be safe turning it on.
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How to Invest for Retirement
- Thread starter Piecake
- Start date
This is why I haven't made a taxable account with them. Even your spouses account can interfere. They're selling TLH as if anybody can use it but when you get in the fine print it seems like almost no one would be safe turning it on.
The IRS has a special rule to help people with this.
You are allowed to 'recharacterize' an IRA contribution up until the tax filing deadline for the tax year you made the contribution. If you contribute to a Roth IRA and end up making too much money at the end of this year, you can say "actually let's turn that into a Traditional IRA contribution instead" up until April 15th 2016.
What do you define as rich? My issue with this whole thing is the government's inconsistency.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
That ain't true. I'm not rich, still in my studies working 25hrs a week and I was able to set aside 10k for my TFSA.
Pointless for them to bring it down to $5500, I'm sure there are other things they could prioritize...
Bay Maximus
Banned
That's good to know. Thanks tokkun
There are others (Fidelity has a nearly identical total stock market index), but unless you are with Fidelity already, might as well go with Vanguard.
fatty
Member
Darn, I missed this. Did you stumble upon this or did you get some type of notification? Just wondering as I want to be on the lookout for these types of deals again. I love these type of books. Thanks!
mercenar1e
Member
just a question.. am i allowed to sell VTSMX in a Roth IRA when i make a profit and buy when its down constantly or is that not allowed?
Randolph Freelander
Member
So what happens when VTSMX keeps going up after you sell? Don't try to time the market.
I can't speak to Vanguard, but Fidelity will hit you with a short-term redemption fee if you hold the fund for under 90 days, they don't want you to try to use the fund for active trading. If that's what you want to do, though, more power to you, but I'd suggest trade their ETFs in a non-retirement account with "play money," and otherwise don't play games with your retirement funds.
Thoughts on Psychonauts 2 as an investment? (Or the platform in general I suppose).
https://www.fig.co/campaigns/psychonauts-2/invest
To be honest, I'm kinda worried alot of people are going to be making their first real investments on this and there just gonna get burned and turned off of investing in general. I suppose there's a chance it'll be profitable for people but the terms really don't seem favorable for people who invest through fig.
https://www.fig.co/campaigns/psychonauts-2/invest
To be honest, I'm kinda worried alot of people are going to be making their first real investments on this and there just gonna get burned and turned off of investing in general. I suppose there's a chance it'll be profitable for people but the terms really don't seem favorable for people who invest through fig.
chaosblade
Unconfirmed Member
Huge risk, IMO. I'd put money into that because you want the game to happen, not because you hope for returns.
That said, I put some money into Project CARS during the GAF initiative for it (not even sure what happened with that) and have gotten a >50% return on it and will probably continue to get a little bit more every quarter for a while. Wouldn't use that as a basis for anything though.
That said, I put some money into Project CARS during the GAF initiative for it (not even sure what happened with that) and have gotten a >50% return on it and will probably continue to get a little bit more every quarter for a while. Wouldn't use that as a basis for anything though.
Darren870
Member
You mean, I shouldn't be cashing out my 401k to dump my cash into this??
I rather do this then putting money into a kickstarter to be honest. Not that I'll do this though.
Randolph Freelander
Member
Terrible idea, though this is at least better than stupid Kickstarter campaigns.
Still, no. If you have money to burn, then maybe. But no. Thing will not likely break even, but that's not even the point.
RumblingRosco
Member
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I'm not saying that I'm personally considering investing in the thing. ( I don't think I could anyway as a Canadian, and even if I could I'd probably have to file SEC forms and start doing IRS forms and it'd be terrible).
I just think it's an interesting concept. My worry is that they're basically taking advantage of people who don't really know much or anything about investing. Not a scam exactly, but not entirely honest either probably. Certainly there doesn't seem to be enough financial info disclosed for proper due diligence. I'd definitely want to see audited financial statements and real market research before ever considering something like this.
I just think it's an interesting concept. My worry is that they're basically taking advantage of people who don't really know much or anything about investing. Not a scam exactly, but not entirely honest either probably. Certainly there doesn't seem to be enough financial info disclosed for proper due diligence. I'd definitely want to see audited financial statements and real market research before ever considering something like this.
Lifetime sales for the first one are under 1.7 MM, including a significant number of Humble Bundle sales. Realistically that's the ceiling. They estimate that they'll sell for $21 on average. Their intended retail price seems very high given that this can't possibly be a AAA major game release at the amount they're requesting. I have to think they're on the high end for their wholesale price average.
If they match the first game's sales (unlikely), and match their expected price average (also unlikely), you'd make $800 on a $500 investment for a 60% return. Let's say they make their anticipated release of Summer 2018, and that all the sales happen immediately; we're looking at two and a half years from when your cash goes out. That makes your annual return, at the high end since we're using several generous assumptions, ~21%. This is not a good return for a high-risk investment like this.
Feel free to put some money into this if you have money to burn and really want to be part of history or whatever, but I strongly suggest you not consider it an investment.
I set up my Vanguard Traditional IRA today. I bought into a fund right at the $3k minimum opening balance.
How do I contribute to the IRA properly? For my employer 401k I'm pretty sure the money is deducted pretax. And since Traditional IRAs aren't taxed until you withdraw, aren't I paying taxes twice on the money I'm transferring into Vanguard from my checking account? Am I missing something super obvious?
edit: I have a feeling it all comes out OK when you file your taxes, but I just want to make sure.
How do I contribute to the IRA properly? For my employer 401k I'm pretty sure the money is deducted pretax. And since Traditional IRAs aren't taxed until you withdraw, aren't I paying taxes twice on the money I'm transferring into Vanguard from my checking account? Am I missing something super obvious?
edit: I have a feeling it all comes out OK when you file your taxes, but I just want to make sure.
Randolph Freelander
Member
That's exactly it. As long as your income qualifies, the traditional IRA contribution will be deductible. Your tax bill will be lessened, which will either equate to a larger refund or a smaller tax amount due at filing, depending on your overall situation.
Wellington
BAAAALLLINNN'
A week before Christmas and I will be at the $18k per year contribution limit with no issues once I get my last paycheck of the year
My company matches 5% of my pay into my retirement fund, and I *have* to contribute to get the free money. For next year I have determined the minimum dollars I will have to deposit per pay check - my intent is to take the delta between the $18k limit and the minimum and front load my account for next year. I won't be able to cut the year in half but I will be close.
My company matches 5% of my pay into my retirement fund, and I *have* to contribute to get the free money. For next year I have determined the minimum dollars I will have to deposit per pay check - my intent is to take the delta between the $18k limit and the minimum and front load my account for next year. I won't be able to cut the year in half but I will be close.
Retirement saving is for the long term. You'll have up and down days, months, years and occasionally, decades. Don't worry about it, stick to your plan and keep going.
Randolph Freelander
Member
I topped off my 401K during the summer this year (and then the market went to crap).
It's an odd feeling. On the one hand, front-loading is generally the better approach as you consider the market being on a relatively consistent upward trajectory (in the long view). Buy early, reap greater rewards. But there is still something satisfactory about seeing a deposit with every paycheck, and I have missed it for these past few months.
Market is down across the board. Ergo index funds are down across the board. Best way to think about it is to say "oh look, my VTSMX is on sale! I should buy more" - well that and don't check it more than once a month (for long term investments) as the constant fluctuation is maddening.
mercenar1e
Member
i just found out about savings credit.. has anyone ever claimed it on their tax returns?
Wellington
BAAAALLLINNN'
Something I have been kicking around and I need some advice:
As some may know I joined Betterment in April mostly because of the tax loss harvesting angle. My timing was very fortunate and the market immediately tanked allowing me to secure $1200 in Betterment's TLH and further, my account is currently down 5.7%.
For a number of reasons I would like to pull my money out from Betterment and just go straight to VTSAX. So I have two questions
1) Betterment's mix includes a number of Vanguard ETFs (VTI, VTV, VOE, VEA, VBE, VBR), will I get myself into trouble wash sale-wise if I go straight into VTSAX or should I just wait the 30 days?
2) If I sell before the end of the year, I get both the Betterment TLH benefit as well as the natural loss benefit, right?
Reason I am so gung-ho on claiming the losses is I had to cash in on some gains earlier this year and I am trying to make up the deficit.
As some may know I joined Betterment in April mostly because of the tax loss harvesting angle. My timing was very fortunate and the market immediately tanked allowing me to secure $1200 in Betterment's TLH and further, my account is currently down 5.7%.
For a number of reasons I would like to pull my money out from Betterment and just go straight to VTSAX. So I have two questions
1) Betterment's mix includes a number of Vanguard ETFs (VTI, VTV, VOE, VEA, VBE, VBR), will I get myself into trouble wash sale-wise if I go straight into VTSAX or should I just wait the 30 days?
2) If I sell before the end of the year, I get both the Betterment TLH benefit as well as the natural loss benefit, right?
Reason I am so gung-ho on claiming the losses is I had to cash in on some gains earlier this year and I am trying to make up the deficit.
It is supposed to be for retirement. Why do you even bother with the number after 1/2 a year? Check back when you are actually retiring, it is guaranteed to be higher than what you put in.
Randolph Freelander
Member
You'll pay one or the other, not both (federally). Capital gains when you hold for a year or longer, ordinary income tax for under.
Compound interest truly is a beautiful thing.
I also just learned that, for long term cap gains, if your income minus deductions and including capital gains puts you in the 10% or 15% tax brackets you owe no long term capital gains tax. If you're in 25%-35% you pay 15% on your capital gains. If the capital gains puts you over the 15% bracket, you pay capital gains tax on only some of it (the portion that puts you over, I assume). It's sort of like another set of the marginal income tax rates. Didn't know that.
State capital gains tax seems to vary quite a bit by state. rip californians.
nkarafo
Member
I'm Greek and my Grandmother now gets less than 400 euros a month and it's going to be decreased further.
I am not a tax lawyer / accountant, but I would be very surprised if VTI and VTSAX were not considered "substantially identical".
Heck yeah, it's a sweet credit. I'm probably over the phase out this year though. It was great getting a $200 credit every year. Be sure to fill out those 8880 forms to see if you can claim it! (Married filing joint with AGI under 61k or single with AGI under 30.5k)
Zaraki_Kenpachi
Member
Seriously? You pick a day when it's down after it had a couple rallies to complain about that? Unless you're retiring next month, I think you'll live.
shadowsdarknes
Member
People who don't understand investing and are new to the game haven't developed a proper understanding of market risk and return.
No need to be a dick.
Yikes, sorry about that. It is a shame that Greece just kinda disappeared from the international news because nothing has really been solved there, and the human costs are huge.
As for America, you should keep in mind that different places have different costs of living. I have no idea if 400 Euros is living in poverty in Greece, though it sounds extremely likely, and likely dire poverty, but 1.2k dollars a month in America is also living in poverty due to the cost of living in America.
Christopher
Member
A pension is a beautiful thing
PflargBlarg
Member
Well sure but it's pretty well explained in all the main posts in the thread. It's not a difficult concept to know that you' don't need to worry about day to day fluctuations if you're not retiring for another 30 years.
Maiden post, but I just bought 100 lot ( minimum )of Nintendo at 16505. This is in the portion of the speculative section in my portfolio.
I usually dive in deep in something I have more confidence in, like the previous dieselgate scandal which had me catching Volkswagen's ordinary shares at a great price.
I usually dive in deep in something I have more confidence in, like the previous dieselgate scandal which had me catching Volkswagen's ordinary shares at a great price.
Randolph Freelander
Member
Does your employer plan not have automatic guards in place to not go over, or did you perhaps switch jobs midyear (or otherwise work more than one job)? If you do go over, you will need to contact your plan provider and get a refund for the excess and any gains on it. And you'll want to do it before April 15.
Apparently not. I contribute to a Roth 401K, but my employer match goes into a traditional 401K, so I guess they aren't sophisticated enough to stop contributing based on the total of both accounts. Thanks for the info and link!
Randolph Freelander
Member
OK, to be clear, the personal contribution limit for 2015 is $18,000 (plus a $6,000 catch-up contribution for those 50 or over), this does not include the employer match. The total contribution limit between you and your employer is $53,000.
If your own funds are putting you over the 18K (or 24K if you're over 50), you need a refund. Otherwise, if you and your employer collectively go over 53K (59K), you need to work with them to rectify it.
Ahhh, OK that's great to know, I shouldn't have a problem then. Thanks for your help!
nkarafo
Member
Well, 400 euros aren't even enough to pay for bills, let alone the new taxes that even non-employed with zero income are forced to pay. And then you have to eat too. Also, my uncle lost his job and my grandmother has to give him some of that tiny some so he won't die.
The problem is not that we don't have money to pay our depts. Being broke is the least of our problems. Its the fact that those depts are accumulating everyday. You wake up in the morning and you suddenly have to pay something for some new reason. I'm unemployed for 2 years (i live because i moved back with my mother and fix a computer or two every few weeks) and never got any loan from any bank in my life. Yet, i still owe like 600-700 euros in taxes somehow atm and i still have new ones to pay in the coming months, plus the ones i already owe become bigger everyday.
I just don't care anymore. My dept can reach 1 billion for all i care. I just don't care for my country and stopped worrying about my future at this point (i'm 30+). I just hope for some kind of war to cleanse this forsaken place. It's really that bad.
I'll never forget the wtf feeling I got the first time I saw some of my funds drop by like 15% around this time of the year.
Wellington
BAAAALLLINNN'
My favorite of Santa's gifts.
mercenar1e
Member
besides dividend reinvestment does Vanguard also invest gains from your current holdings and does it happen on the same day?