Talking stocks, trading, and investing in general

[jbarwick]

There is a big 100 year celebration or something in like 2021 or 2022 in China. Sounds very conspiracy theory but I have heard good arguments that Xi would slightly weaken their economy for a year or 2 then really rev it up to have a good year for that 100yr celebration. I need to remember which podcast had the guy on mentioning this but it made sense

 

[Omega Male]

Our major problems are entirely self-created. The trade war and exploding budget deficit are the twin anvils that will drag us under into recession. Timing is always hard but it’s feeling more and more like by early next year.

 

[otc]

?

 

[Omega Male]

To cheer you up, WeWork just reported it has lost $150 million a month so far this year and is citing this as a strong positive in its IPO prospectus. The Related Party disclosures are absolutely bananas, too. Makes Enron look like the World Bank.

 

[patrickBOOTH]

For long-term investing 401k, IRA whatever do you guys typically adjust your contributions to funnel more into underperforming assets, or do you just contribute at the same percentages has your target allocation?

 

[stimulacra]

For long-term investing 401k, IRA whatever do you guys typically adjust your contributions to funnel more into underperforming assets, or do you just contribute at the same percentages has your target allocation?

For IRA and such, I redirect new inflows to whatever is underperforming. For 401k I have my targets set and it just rebalances twice a year.

 

[jbarwick]

For IRA and such, I redirect new inflows to whatever is underperforming. For 401k I have my targets set and it just rebalances twice a year.

Same here though I don't adjust 401k much unless there is some terrible underperformance in an asset class. I think the last time I adjusted % was for International a few years ago

 

[brokencycle]

For long-term investing 401k, IRA whatever do you guys typically adjust your contributions to funnel more into underperforming assets, or do you just contribute at the same percentages has your target allocation?

I just put towards the funds I always put into. No allocation adjustments, no re-balancing.

 

[patrickBOOTH]

If you have a 401k that you're not maxing out why have an IRA? Is it for the Roth option? I'd assume you don't have a Roth option in your 401k then. Is there something else I'm missing?

 

[Texasmade]

Couple of reasons.

Roth option and freedom to invest in anything I want.

Roth has an AGI limit. By the time I was able to max out my 401k, my AGI was close to the Roth phaseout starting point. I started contributing to the Roth when I was making around 60% of what I currently make. I expect to be no longer contributing max Roth limit in a couple of years.

 

[jbarwick]

I do basic 401k to company match, roth IRA, then back to basic 401k. I have not looked into the advantages of roth 401k vs. basic 401k.

Next year will be 401k to max then taxable.

 

[otc]

I think my 401k has an option where it automatically uses new contributions to try and get closer to target allocation. Not sure if I have it turned on though...

If you have a 401k that you're not maxing out why have an IRA? Is it for the Roth option? I'd assume you don't have a Roth option in your 401k then. Is there something else I'm missing?

Pretty standard advice in the personal finance world. The theory is that you have full control over IRA funds (whether roth or trad), while the 401k is at the whims of your employer. I'm fortunate to have a 401k with good fund options (and I think it even has a self-directed option for a small fee), but even then, sometimes they send out emails like "We are getting rid of these 5 funds and adding these alternatives".

So the advice goes 401k to match > IRA to max > 401k to max > Taxable.

You don't want to miss out on the match, but if you aren't maxing both...better to put the money in the thing that is entirely yours.

 

[patrickBOOTH]

Makes sense. My Company has pretty great options for the 401k as well as self managed for $50 per year.

 

[imatlas]

I thought the SF Minimum Income was well above the cutoff for contributions to both a 401(k) and an IRA?

 

[patrickBOOTH]

I did too.