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Investment Thread

Discussion in 'Real Life Discussion' started by Lyndon Eye, Jul 12, 2013.

  1. Perspicacity

    Perspicacity High Score: 3,994 Prestige DLP Supporter DLP Gold Supporter

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    Last time I checked (which was some years ago, admittedly), Vanguard has a minimum investment for taxable or retirement accounts of $3000. Fidelity's minimum was comparable. This may be a higher minimum than many are willing to work with.
     
  2. SilverOtter

    SilverOtter Seventh Year

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    If you're planning to go over $15k eventually, I'd just start out with Betterment. The fees aren't really an issue and you should earn more in market changes and dividends than you'll pay out in fees anyway.

    If you start with Wealthfront and then decide to move to Betterment later you could potentially be selling and transferring at a market high, wouldn't be the end of the world but it's certainly annoying.

    On which is easier to use, I've never used Wealthfront so I'm not sure how easy theirs is to use. Betterment is really simple though.

    With Betterment you create certain "goals" like retirement, buying a house or large purchase, or general building wealth and it will give you advice on what sort of stock/bond allocation you want as well as what your growth-over-time will be with average market performance based on past data.

    There's also a Safety Net goal which some people use to replace their standards bank savings account, it's low risk with about 60% stocks, 40% bonds

    This link from peyo is a good article on why some choose to do this.

    For goals that have an end date, like wanting to purchase a house within the next 10 years, or wanting to retire at age 60, Betterment will give you advice on how much you need to put in weekly/monthly/yearly to reach your goal by the end date.

    If you have any questions let me know and I'll do my best to answer, and if you'd like 6 months free on top of the 30 days everybody gets for signing up you can use my referral link for it.
     
    Last edited: Aug 8, 2016
  3. SilverOtter

    SilverOtter Seventh Year

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  4. Inexistence

    Inexistence Seventh Year

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    So the past week or so I've gotten back on the hardcore investing, saving, etc hype. Since moving to the US two years ago, I hadn't really considered the use of 401k's, IRAs, and all that jazz, given that I likely wouldn't settle down here long term. But after getting onto

    JLCollinsNH's Stock Series, and consequently into Mad Fientist, I got really excited about it all, given that I enjoy nerding out about finances. I've been long into Mr Money Mustache, and the idea of early retirement. Never thought to save a hell of a lot more by affecting my taxes and reducing it down so much.

    So I opened up a 401k at work, and with 4 months left decided I need to max it out. Overall, maxing it out will save me around $6k in taxes, which is insane. I'm now looking into the ability to open up an HSA, which if I contributed the max, would bring my MAGI down low enough to be able to get a deduction on a Traditional IRA. Otherwise, I'm gonna bang everything I can into a Roth IRA.

    I'm so hyped up for this, this year I will have doubled my savings, and it's primarily a result of taking an active interest in this again, instead of just assuming that I can put money away that's left over.
     
  5. Shouldabeenadog

    Shouldabeenadog Auror

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    Thanks for all the advice, I went for betterment (I liked their dependance on VEA>VWO, but still lots in both) and opened a Roth for '16 and '17, and then i'll see what my actual paycheck turns into when I finished residency before I go into other vehicles.
     
  6. SilverOtter

    SilverOtter Seventh Year

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    HSA's are amazing if you can qualify for them! Betterment doesn't support them (yet!) but they have a few articles written about them and how they are great to have.

    For anyone interested: https://www.betterment.com/resources/life/truth-about-hsas-and-retirement/

    That's great! Welcome to the lovely world of investments. Remember you have until April 15th of the following year to max your IRA contributions. So if you haven't maxed 2016 before 15 April 2017 you should still be contributing to your 2016 goal up to that date.
     
  7. SilverOtter

    SilverOtter Seventh Year

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    Betterment has come out with a new feature for their service. Tax Coordinated Portfolios.

    Basically you 'link' different types of taxable, tax-deferred, and tax-exempt goals together and Betterment manages them together as a single portfolio to minimize tax impact on you and improve long term goals.

    Here's a link to the article they wrote: https://www.betterment.com/resource...t-news/introducing-tax-coordinated-portfolio/

    And here's a link to a white paper they wrote on the subject: https://www.betterment.com/resources/research/tax-coordinated-portfolio-white-paper/

    Sorry for the double post, it's been more than 30 days and I couldn't edit my previous post.
     
    Last edited: Dec 5, 2016
  8. pbluekan

    pbluekan Auror DLP Supporter

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    Keep an eye on the market right now. Things are shaky and this week is looking like the start of a genuinely bear market.

    Bond yields are extremely high, coupled with an already overheated economy and the slowly unraveling effects of Trump’s ongoing trade war, we are primed for this correction to continue for a little bit.

    There are also some rumblings in the lending world as well, due to low restriction standards in predatory auto loans and scaled back restrictions on subprime mortgages.

    By that same token, the real estate markets are throwing some red flags. For example, in Denver, home sales dropped 30% last month.
     
  9. Lindsey

    Lindsey Headmaster

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    The price of homes in Seattle has dropped in the last three months, with the inventory growing. This was at the prime buying months as well. Of course, this is the time I've been thinking about buying. I'm keeping an eye out until January to see what happens in Seattle before I sign anything. Gives me a little bit more time to get a down payment secured too.
     
  10. Darth_Revan

    Darth_Revan Secret Squirrel Prestige DLP Supporter

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    We've been in a Trump Bubble ever since election day 2016 was followed by a rally fueled by pure speculation and tax cuts. What with the trade wars and rampant deregulation, we're primed for recession.
     
  11. pbluekan

    pbluekan Auror DLP Supporter

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    Pretty much this. The rise in bond premiums is what is giving me any sort of confidence in saying that this is actually a bear market.
     
  12. Erotic Adventures of S

    Erotic Adventures of S Denarii Host

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    Dos anyone here have experience in the Nz or Aussie stock market, I’m at the point where I want to start getting some of my money out of standard savings and be a bit more proactive.

    I’m only planning upto 10k to start with then maybe adding more in the future if I am happy with it.

    Whats the best way to go about investing having never done it before? If it matters most of my finances are with Westpac.

    Ideally I would like something fairly easy to interface and low fees, that may be a pipe dream but hoping.

    I am thinking more targeted investing that just funds and indexs, i have other savings in the equiviant of those, this is more money I would like to try and grow, but I am happy to take the risk on it.
     
  13. fire

    fire Auror

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    Probably best to stick to index trackers though? I don't see the point of active investment - you'll never beat the market, and it's stressful to worry about the most minute stock movements.
     
  14. SilverOtter

    SilverOtter Seventh Year

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    Not sure if anyone has seen this yet or not, but Fidelity recently started offering HSA accounts without fees to everyone instead of just those who have an employer using Fidelity to host their HSA.

    https://www.fidelity.com/go/hsa/why-hsa

    Seems like this would be a good place to move money to if you're not actively using an HSA through your current employer.
     
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