Talking stocks, trading, and investing in general

Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.

  1. AriGold

    AriGold Senior member

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    SCTY has the benefit of Elon Musk, but I am about to pick up some SPWR for their innovation in this space.

    Just took a nibble on AMZN too. both have strong long term potential.
     
  2. GreenFrog

    GreenFrog Senior member

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    God my new employer's 401k plan sucks.

    The number of investment options is laughable at best and the expense ratios on all these funds are outrageous.

    It's 72 bps for an S&P 500 index!
     
  3. jbarwick

    jbarwick Senior member

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    I am wondering about my new employers plan as well but I can't enroll for 6 months. They touted a great medical benefit but that sucked so we will see.
     
  4. GreenFrog

    GreenFrog Senior member

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    Ours is through ADP, which explains a lot of the suckage.

    Thankfully, our medical benefits are fairly generous.
     
  5. stevent

    stevent Senior member

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    Yeah wish employers gave you better options. Sticking with maxing out roth right now

    My first job had tiny match percentage and was with a tiny bank. Think there were about 15 options for what you could buy without paying 1.5% management fee for the ability to buy anything else. Healthcare also cost pretty much what I paid independently (before Obama insane price increases :fu:) and had arguably less coverage
     
  6. jbarwick

    jbarwick Senior member

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    My wife has ADP for her 401k and we only invest in the S&P option. A little better now that she gets a 4% match from her employer but still. Also realized recently that we are over the deduction limit for a Trad IRA so I will need to figure out if it is worth putting money in there vs. a normal investment account. I suppose future taxes are unpredictable so it is more of a Normal Income vs. Capital Gains tax guess.
     
  7. GreenFrog

    GreenFrog Senior member

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    I'm 100% in the S&P index fund as well.

    Re: taxes, I actually figure taxes will be higher over the next several decades. We're at historically low rates. I sometimes wonder why I don't contribute to a Roth 401k.

    --

    Pissing me off: fuckin Putin and his fucking antics fucking up my returns. Fuck that shithead.
     
    Last edited: Aug 12, 2014
  8. jbarwick

    jbarwick Senior member

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    A Roth is a solid idea in my book since taxes will go up. We do 401k to match, then Roth, then back to max out 401k though we aren't maxing out 401k currently. Paying off student loans (done in March at the latest!) then we will probably max.

    As for this market, the Dow is flat YTD and the NASDAQ is pulling away at a whopping 6%!!! Our best performing investment this year is our REIT. Up 18.45% after dogging last year. It spits off a nice dividend plus I had to rebalance it as we were pushing 15% of our portfolio to our desired allocation of 10%.
     
  9. Medwed

    Medwed Senior member

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    This is certainly one way to look at it...:D
    Did you vote for Obummer?
     
  10. GreenFrog

    GreenFrog Senior member

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    Noap.

    --

    Intrigued by LOCO after this drop.
     
  11. stevent

    stevent Senior member

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    KING getting hammered, a little tempting to gamble now
     
  12. Concordia

    Concordia Senior member Dubiously Honored

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    You've finished buying, then?
     
  13. SchwererGustav

    SchwererGustav Senior member

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    I am entering this thread with a lot of questions, and would be most grateful for constructive suggestions and recommendations.

    I will be starting a job with the federal government in two weeks, and am currently completing my on-boarding procedure.

    One item concerns retirement savings and investing:

    Quote: For the Thrift Savings Plan, I have the following options:
    -Keep the contribution at 3% per pay period
    -Contribute an alternate % per pay period
    -Contribute a defined dollar amount per pay period
    -Make no contribution

    The Roth TSP:
    -Contribute a defined percentage amount per pay period
    -Contribute a defined dollar amount per pay period
    -Make no contribution

    I am 30 years old, and this is my first significant job. Additionally, I have no debt or loans to pay off.

    My intent is to reserve one-third of my pay exclusively for investing. Of that, I want to separate 2/3 for a retirement savings plan, and 1/3 for index funds. What resources can I use to help me determine whether to use the TSP or Roth TSP (the latter seems more attractive to me) and in what values? Or should I look elsewhere for other options?
     
  14. Concordia

    Concordia Senior member Dubiously Honored

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    I'm not familiar with these specific plans, but in general the relative merits of the plans depends on your tax status and what you expect it to be. If you expect to have a low-ish retirement income, a conventional IRA-type thing is better. You get deduction against your higher taxes now, and withdraw when you're in a lower bracket. Conversely, if you have a lot of money or expect to down the line, a Roth account is great. You do pay taxes today, but never again. Also, there's no requirement to withdraw when you're alive, so if you plan to leave an estate to your kids it can grow longer under the tax-free umbrella.

    Other things to think about in general are the match from the employer-- if any-- and the investment options. And expenses charged by the available funds. It sounds as though you're just getting bonds in each of these, and if that is true you might want to look for an outside retirement plan if you're eligible to contribute to it. Broadly speaking, you want higher-return assets parked where you can't spend them casually, and most of the time that won't be government bonds. On the other hand, a 100% match can overcome a lot of mediocre investment returns, at least in the shorter term.
     
    Last edited: Aug 12, 2014
  15. jbarwick

    jbarwick Senior member

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    I agree with Concordia in that if you expect to be a a higher tax bracket when you retire then the Roth option is a good idea. A couple of questions you need to answer for us to help a little more:

    -With the 1/3 income being saved, do you want 2/3 of that for retirement specific then 1/3 for some sort of savings for a house or other large relatively soon (<5 years) purchase?
    -What is your risk tolerance? Since you are 30 I assume it is pretty high.

    I follow the Bogleheads mantra of a 3 or 4 asset class retirement plan. I have seen quite a few threads over the with questions from government employees. You will want to get answers in the next couple months before you start having your retirement sitting in bonds.
     

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