150 replies to this topic

[Patrick C.]

...and how much it beat/trailed an index fund

The board should buy 1 stock every two weeks (since that's standard pay day schedule), then at the end of the year, see how much the stocks gained/lost.

[3rd party JKor]

Amazon laying off 18,000 isn’t going to bolster confidence.

[Enid Puceflange]

And it looks a lot like the markets have decided that Tesla is a car company, and not whatever it was before:

[porter]

Amazon laying off 18,000 isn’t going to bolster confidence.

No, but keep in mind that's just over 1% of their workforce.

[Augie1991]

"The S&P 500 rose during 2023’s first five trading days despite Monday’s slight loss, meaning Wall Street’s “First Five Days” indicator came in positive – giving the blue chips 83% historical odds of gaining for the year as a whole."
"There are a lot of bears out there and it’s pretty grim, but I think [the indicator’s positive reading] helps you become less bearish − or at least less cautious.”

[Augie1991]

Never heard of first 5 days indicator lol

[deejaydan]

I'm still focused just on 401k/Roth timelines - so 10 years or more.  Tesla doesn't interest me, but this is the first year we are going to come close to maxing our Roths. 

 

More a journey for the Mrs. and me, but it was a bit of a "holy shit" moment - that we have a financial advisor, and we are putting a VERY nice car payment into our Roths, instead of into a car.

 

12 more years, and I hope to retire at 60 fellas!

[Augie1991]

Does your financial advisor charge much Dan? Good plan! Chosing a Roth over a car is very smart! You're gonna enjoy watching that Roth grow in value when you drive it off the lot! We put ours in TRowe/Fidelity blue chip funds.

Edited by Augie1991, 10 January 2023 - 05:01 AM.

[Enid Puceflange]

Yeah, it's a very adult moment knowing you've maxed your contributions

 

Worth pointing out for those of us over 50 (which I suspect is the majority) that the 401k top up contribution limit has gone up quite a lot in 2023 - to $7500 from $6500 and the limit for the regular contribution is now $22500....

[Stains_not_here_man]

I'm maxing my 401k contributions but I make too much (at least right now) for an IRA which isn't the worst problem to have

[maddog]

I'm maxing my 401k contributions but I make too much (at least right now) for an IRA which isn't the worst problem to have

 

You can contribute to a traditional IRA at any income level, I believe. And then do a backdoor Roth conversion....

[AspenLeif]

You can contribute to a traditional IRA at any income level, I believe. And then do a backdoor Roth conversion....

This is very correct
And now is the time to convert, with the market being down

[DieselGopher]

This is very correct
And now is the time to convert, with the market being down

Add in the scuttlebutt about possibly eliminating the back door Roth and it should be done asap.

[Stains_not_here_man]

I may be wrong but I thought the income limit for IRAs was about whether the contributions are tax free or not? Over a certain income limit aren't they post-tax contributions?

[Stains_not_here_man]

I may be wrong but I thought the income limit for IRAs was about whether the contributions are tax free or not? Over a certain income limit aren't they post-tax contributions?

I don't remember the exact details now but I think due to the contribution limit of $6500 a year and the fact that my contributions aren't tax deductible I didn't see much advantage over just sticking an extra $6500 annually into an index fund.

Edited by Stains_not_here_man, 10 January 2023 - 07:54 AM.

[AspenLeif]

That limit is for a Roth only

[Stains_not_here_man]

But still, without a tax advantage what's the point? With a traditional IRA you are taxed on your withdrawals and with my income I'm not able to avoid taxes on the contributions either. So what's the benefit?

[davelew]

I may be wrong but I thought the income limit for IRAs was about whether the contributions are tax free or not? Over a certain income limit aren't they post-tax contributions?

My understanding:

There is an income limit for pre-tax contributions to an IRA. Above that limit you can only make post-tax contributions.

There is a limit to Roth IRAs, where above $153k/year income you can’t contribute at all.

There is a loophole. There is no limit on converting a traditional IRA into a Roth, so you can start a traditional IRA and immediately convert it to a Roth IRA, and have no in ncone limits.

[Stains_not_here_man]

So I guess I still don't see the advantage - if I have to put post-tax money in, and I'm taxed on the money I withdraw later, how is that any different from just my personal brokerage account? I buy index funds with post tax money and I won't be taxed until I sell them years from now so what more does the IRA get me?

[Stains_not_here_man]

The "conversion" thing doesn't make sense to me. I can see having an existing IRA with money in it and converting it. But you're suggesting that I can start a traditional IRA, with no money in it, "convert" it to a Roth and then I can put pre-tax money in there despite my income and not be subject to the Roth rules going forward? That doesn't sound like it would be right...