This will be useful to see which TurboTax you'll need: https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp#forms
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How to Invest for Retirement
- Thread starter Piecake
- Start date
Randolph Freelander
Member
That's not the case over the long view. Just looking at roughly the past 30 years, there's no reason to view January negatively. Here's the gains/losses of the S&P 500, aggregated by month, going back to 1984.
Code:
1 1.10%
2 0.37%
3 1.39%
4 1.47%
5 1.12%
6 0.04%
7 0.71%
8 -0.09%
9 -0.69%
10 0.83%
11 1.13%
12 1.96%As for the topic of going in all at once versus balancing it out, I did a historical comparison here a while back.If we were able to factor in dividends, it would probably make the day 1 strategy even more favorable.
time to look back on my year...
Return 1-Year
Total 10.95
Personal 10.83
Index 1.38 (Index - S&P500 TR)
-nods quietly-
Easystride
Member
Awesome, thanks for such a detailed, well researched response! Very useful information. I will have to rethink my strategy.
The Fronde
Member
Anybody who invests with Vanguard get this notice?
Should be fine to make the switch? It's really just operational on their end, yeah?
Should be fine to make the switch? It's really just operational on their end, yeah?
Randolph Freelander
Member
Apparently, the new year is starting off at a steep discount. Get those Roth contributions in at low, low, bargain bin prices, I guess.
Wellington
BAAAALLLINNN'
Finished 2015 at -0.9% return for the year. Investing rate of 32%*, which I am very proud of. Want to push it above 40% if I can this year. I took big time hits to my savings account and had to replenish so I should be good to go.
Kidding of course. On the plus side I am still getting some dividends trickling in so I am already getting a nice re-buy discount.
* - Investing rate = ($$ invested in 401k without the company match + $$ invested in taxable account)/(Net Income+$$ invested in 401k without the company match)
Kidding of course. On the plus side I am still getting some dividends trickling in so I am already getting a nice re-buy discount.
* - Investing rate = ($$ invested in 401k without the company match + $$ invested in taxable account)/(Net Income+$$ invested in 401k without the company match)
demosthenes
Member
Finished 2015 at -0.9% return for the year. Investing rate of 32%*, which I am very proud of. Want to push it above 40% if I can this year. I took big time hits to my savings account and had to replenish so I should be good to go.
Kidding of course. On the plus side I am still getting some dividends trickling in so I am already getting a nice re-buy discount.
* - Investing rate = ($$ invested in 401k without the company match + $$ invested in taxable account)/(Net Income+$$ invested in 401k without the company match)
My 5,500 transferred today, I appreciate the discount of when I buy tonight/tomorrow.
My investing will take a hit this year (as not as much invested, I won't pull anything out) as I almost certainly will be buying a house, but I'm only 30 in June, I can afford to take a hit :lol
PflargBlarg
Member
Yep, things are looking good. I've got around 12,000 in cash in the bank so it's about time to make another largeish transfer to the brokerage. Last year was the year I really got my act together in terms of investing so I'm pretty excited about this year. Gonna start the year off strong.
chaosblade
Unconfirmed Member
Going to dump my company stock this week and max my Roth with it. Fun stuff.
Randolph Freelander
Member
The markets were closed Friday. If you're buying equities with your contribution, you're getting today's prices. (If not, you have the worst retirement plan ever.)
nhlducks35
Member
I've funded $1,000 for my Roth IRA in July 2015 (first year doing this, 22 years old).
I wanted to add more money and was wondering if I should invest it in the 2015 year or 2016 for vanguard?
I wanted to add more money and was wondering if I should invest it in the 2015 year or 2016 for vanguard?
NYCmetsfan
Banned
So at my current job there is no 401k option (we have a pension that you get vested in after 5 years, and we have $0 in medical expenses and transportation costs so don't feel too bad) but I want to start saving on my own. Something that I could maybe combine if I get another job that does offer a 401k and a match.
What is my best option for right now?
What is my best option for right now?
No reason not to stick with 2015 if you're still under the limit. There'd be a decision to make if it was a traditional IRA, but with Roth, go with 2015 so you have the room to max 2016 if you decide to.
Opening up an IRA with an online broker like Vanguard or Fidelity would be the best option. You can't combine it with a 401k, but an IRA has the same tax advantage nature of a 401k. a traditional IRA and 401k basically work the same - you get the tax advantage now. A Roth IRA is different in that you pay taxes now, but won't pay them when you finally sell (when you are 59.5+). I personally prefer the Roth IRA, but I think it is best to have a balance, and you will have that balance when you get a job that does have a 401k + match.
chaosblade
Unconfirmed Member
Unless there is something I'm not aware of, there isn't any reason not to do 2015, that way you can contribute more for 2016.
Oops, beaten, didn't see it was the last post on the page.
PflargBlarg
Member
Another 5000 into the RRSP today 
The price actually went down a little again today so that's nice.
The price actually went down a little again today so that's nice.
I'm sure that this has been discussed to death, but I just noticed that i have a traditional IRA with two years of contributions but could have sworn I had decided on a Roth. I can't remember why I made the decision to do traditional.
Household gross earnings are around $145k, married, wife has access to a 401k program, i do not.
So currently I have $11k in a traditional IRA, total household savings (combining 401k accounts, savings accounts and ira accounts) around $150k.
We are both 32.
Should I switch to a Roth? I know the basic differences between the two but not the real life advantages /disadvantages of each.
Household gross earnings are around $145k, married, wife has access to a 401k program, i do not.
So currently I have $11k in a traditional IRA, total household savings (combining 401k accounts, savings accounts and ira accounts) around $150k.
We are both 32.
Should I switch to a Roth? I know the basic differences between the two but not the real life advantages /disadvantages of each.
I'm the opposite, in that my investing for the year is very front loaded due to the timing of my bonuses and annual employer contribution. I'm buying in at an (increasing) discount.
Last year I doomed the entire market. I'll keep my mouth shut this year though so China takes the heat.
TangoAlphaLima
Member
I'm just glad I didn't top off my 2015 Roth yet. I usually do before the end of the calendar year, but I decided to wait out any additional contributions when the China stuff hit last summer. Now I just have to figure out where the bottom is going to be prior to doing my taxes.
I'm the opposite, in that my investing for the year is very front loaded due to the timing of my bonuses and annual employer contribution. I'm buying in at an (increasing) discount.
Last year I doomed the entire market. I'll keep my mouth shut this year though so China takes the heat.
Just hope that the market stops falling before you have to make your investments
I have a few k i COULD put back in right now... But not sure if worth it. Gonna wait a bit more given China isnt exactly proposing solutions atm lol.
Just hope that the market stops falling before you have to make your investments
I have a few k i COULD put back in right now... But not sure if worth it. Gonna wait a bit more given China isnt exactly proposing solutions atm lol.
Yeah, I'd be tied up in knots right now if I were trying to time it. The big employer contribution lands at the end of January, and both it and my regular contributions (and from bonuses) are all automated. So I just sit back and let it ride. And try not to look on weeks like this. :lol
The research on dollar-cost-averaging shows that historically it is a better strategy on the whole to just put everything in at the beginning of the year (if you are able to) than to stagger it out. There have been plenty of years where the market was up at the end of January, so don't fall victim to recency bias.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
Well this is a shitty start for 2016
In the long run it really won't matter.
PantherLotus
Professional Schmuck
Can someone explain what's happening? I'm seeing dumb articles on CNN like "is this another 2008?" but nobody really explaining what the hell is going on.
Fear about the world economy. China is fucked. There have been mass selloffs to the point that they actually shut down the market two(?) days in a row. Today it was only open for 15 minutes.
Captain.Falafel
Neo Member
TangoAlphaLima
Member
Dave Ramsey recommends 3 to 6 months of expenses in emergency savings. Suze Orman is a little more conservative and recommends 8 months.
Liquid savings are those with no volatility and immediate access (i.e. you don't have to sell shares to access the money). Generally, a checking account or money market account.
Wellington
BAAAALLLINNN'
I got pretty lucky. Pulled my money from betterment end of the year and it finally cleared today headed for my Vanguard account. That and I get paid tomorrow and with that goes my automatic 401 contribution
Chine opened their market, it sank, they closed it 15 minutes later. The rest of the world markets saw that and freaked out and... well... yeah
Looking for some advice.
I currently invest $300 per month into an IRA and a non-retirement account. $200 into my non-retirement account and $100 into my IRA.
The IRA is TRRKX, the non-retirement funds are PRWCX and PRHSX. PRHSX has been very good to me, but is much more volatile that PRWCX. I'm afraid that I'll lose more money if I stay in it until the market improves.
I also have a 401K at work and a pretty large amount in a different IRA at Vanguard. The Vanguard IRA consists of three funds, VTSAX, VGSLX and VTIAX.
I'm considering stopping the money going into my non-retirement funds. This isn't just because the market has been awful over the last year, but partially because I'd like to save up some extra money to keep in my savings account as an emergency fund (I have about $8-10K in there now, depending on circumstances) and I have some things I would like to put money into, like finishing my basement and doing some other home improvements and other things.
1- Would taking my money out of PRHSX right now be a good or bad idea? I'm open to investing my non-retirement money into a new fund for now, or just moving it to PRWCX, since it's a little safer.
2- I've been thinking about dropping my VTIAX, or shuffling around to different funds in my Vanguard account. I'd love any suggestions. VTIAX has been my biggest loser in my portfolio, by far. I think that it may be better to find a different fund for the money, maybe something domestic. I posted a few days ago asking about this, but I'm having trouble deciding where to put the money.
I currently invest $300 per month into an IRA and a non-retirement account. $200 into my non-retirement account and $100 into my IRA.
The IRA is TRRKX, the non-retirement funds are PRWCX and PRHSX. PRHSX has been very good to me, but is much more volatile that PRWCX. I'm afraid that I'll lose more money if I stay in it until the market improves.
I also have a 401K at work and a pretty large amount in a different IRA at Vanguard. The Vanguard IRA consists of three funds, VTSAX, VGSLX and VTIAX.
I'm considering stopping the money going into my non-retirement funds. This isn't just because the market has been awful over the last year, but partially because I'd like to save up some extra money to keep in my savings account as an emergency fund (I have about $8-10K in there now, depending on circumstances) and I have some things I would like to put money into, like finishing my basement and doing some other home improvements and other things.
1- Would taking my money out of PRHSX right now be a good or bad idea? I'm open to investing my non-retirement money into a new fund for now, or just moving it to PRWCX, since it's a little safer.
2- I've been thinking about dropping my VTIAX, or shuffling around to different funds in my Vanguard account. I'd love any suggestions. VTIAX has been my biggest loser in my portfolio, by far. I think that it may be better to find a different fund for the money, maybe something domestic. I posted a few days ago asking about this, but I'm having trouble deciding where to put the money.
TangoAlphaLima
Member
FYI, I'm in PRHSX as well, and it closed to new investors in the middle of 2015. It's had ups and downs over the past year, but it has historically performed very well. I'd just hold onto it if I were you, as you'll never be able to get back into it if you divest yourself completely.
RumblingRosco
Member
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Wow, thanks. I wasn't aware of that. I'd probably keep at least some in there. I'm not sure what to do. I just remember that the few down days that I've had were significantly worse than PRWCX, when it was actually down. I just don't want it to tank my portfolio if we are heading into a recession.
It doesnt really. IRAs are for the long term. Unless you plan on selling in the immediate future (unless you are retiring soon, don't), then the ups and downs of the market don't matter.