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TooMuchAbstraction posted:I have a 401k where a nontrivial portion of the fund balance is in stocks in the company I was working for at the time. I'd prefer to have a more broad market investment. Is it possible to rebalance that fund without, like, paying early withdrawal penalties or something? My impression was that any time you sell a stock, it's a taxable event, even if you only sell it so you can buy something else in the same account. Nope it's just like a IRA. Either taxes on the way out (trad) or the way in (roth.)  that company stock into a index fund.
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Feb 14, 2023 04:28
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Cool, thanks! ...pity I only noticed this because the stock dropped like 30% this last year. 
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Feb 14, 2023 04:41
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TooMuchAbstraction posted:Cool, thanks! Good thing you didn't pay 24% federal income tax on it! (or more I don't know. Sorry for your loss. Always be diversifying.) My company stock is currently all deeply red. Whoops.
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Feb 14, 2023 05:34
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My company stock was up over 100% last year. Somewhat disappointed I sold my ESPP shares right away, but I'm also more satisfied with my sound financial decisions vs missing out on gambling winnings.
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Feb 14, 2023 14:32
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Feels good. 
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Feb 15, 2023 22:25
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How do you expect the upcoming US debt default discussion to affect the markets? I read that in the past when this has happened, the market always goes down a month / a few weeks prior. I know that one should not time the market but is this upcoming event something one should consider when buying into the market?
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Feb 17, 2023 10:17
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Busy Bee posted:How do you expect the upcoming US debt default discussion to affect the markets? I read that in the past when this has happened, the market always goes down a month / a few weeks prior. You can’t time the market there’s no way to know for sure.
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Feb 17, 2023 14:06
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Busy Bee posted:How do you expect the upcoming US debt default discussion to affect the markets? I read that in the past when this has happened, the market always goes down a month / a few weeks prior. US goes bankrupt and we all have to learn Chinese.
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Feb 17, 2023 19:12
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If 100% of an Rollover IRA is in one ETF and there is a automatic RMD withdrawal setup, do the gains from the ETF being sold for the RMD be taxed?
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Feb 19, 2023 12:24
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I assume that since you are talking about RMDs that you are talking about a trad IRA. RMDs are taxed as regular income. There are no capital gains taxes paid.
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Feb 19, 2023 16:33
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And specifically it's the withdrawal that is taxed, not the sale specifically. It's pedantic but matters if you say sold $2000 of etf for a $1000 rmd/actual withdrawal you do for some unknown reason. Perhaps to buy a different etf with the rest of the money or whatever.
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Feb 19, 2023 16:45
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I have a friend about to buy a still-in-construction luxury townhome for over a mil on a 5/5 ARM, through the developer’s financing. I tried talking him out of it but he’s too far down the rabbit hole. Edit: I swear to God my friend just asked “who’s doing the financing?” And the developer said “my friend Tom”. He did not elaborate. dpkg chopra fucked around with this message at 22:13 on Feb 19, 2023 |
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Feb 19, 2023 22:07
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Duckman2008 posted:You can’t time the market there’s no way to know for sure. No, but if you're really worried about your stocks tanking due to some external event like that, you can buy puts on an extremely liquid broad market index like $spy with an expiration date after the fiscal cliff deadline, with an effective value equal to your portfolio. It's like buying insurance on your stock holdings. If we avoid defaulting on the debt, great, you maintain the value of your investments and you're only out the price spread premium when you sell the options. If we fall over the fiscal cliff, great, you make bank when you immediately sell your vastly in-the-money options! (please don't ask about what happens to the economy and financial system after that)
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Feb 20, 2023 01:19
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dpkg chopra posted:I have a friend about to buy a still-in-construction luxury townhome for over a mil on a 5/5 ARM, through the developer’s financing. I know very little about mortgages. What does the 5/5 part mean? Is he agreeing to pay 5% for 5 years, then whatever rate "my friend Tom" sets it to from then on? 
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Feb 20, 2023 08:22
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A X/Y ARM means your interest rate is set initially and stays constant for X years. After that it is adjusted every Y years.
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Feb 20, 2023 15:31
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5/5 is actually not super bad in a high rate market. Most of them are 5/1.
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Feb 20, 2023 22:26
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Do 1099s for ESPPs universally take forever to show up or is mine being particularly slow? (Morgan Stanley is the broker if that matters)
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Feb 24, 2023 06:22
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Jows posted:Do 1099s for ESPPs universally take forever to show up or is mine being particularly slow? (Morgan Stanley is the broker if that matters) They should have an eta for you but yes. Mine came in last week. Do you also have your 3922? And just to make sure: you sold espp shares in 2022?
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Feb 24, 2023 15:39
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Fuschia tude posted:No, but if you're really worried about your stocks tanking due to some external event like that, you can buy puts on an extremely liquid broad market index like $spy with an expiration date after the fiscal cliff deadline, with an effective value equal to your portfolio. It's like buying insurance on your stock holdings. How do you actually buy options? It seems complicated.
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Feb 24, 2023 16:39
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PerniciousKnid posted:How do you actually buy options? It seems complicated. What specifically are you asking when you say how? The trading screen through Schwab (at least) is very straightforward, the complication all comes from the fact that it's a complicated financial instrument and you need to understand the implications of all 5-10 inputs in order to not do something boneheaded. In some brokerages (everyone except Robin Hood maybe?) you need to apply and get approved for the ability to trade options before you can actually do so. The ability to buy a call or put should be relatively easy to get access to.
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Feb 24, 2023 21:21
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H110Hawk posted:They should have an eta for you but yes. Mine came in last week. Do you also have your 3922? They said between 2/15 and 2/28. I was hoping closer to the former than the latter. Yes, I got my 3922 and sold my shares last year. This is my first time with an ESPP. Only worked for ESOPs or privately held companies before.
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Feb 24, 2023 22:56
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Jows posted:They said between 2/15 and 2/28. I was hoping closer to the former than the latter. Yes, I got my 3922 and sold my shares last year. Also just double check their website. I got an email today from e-trade (under the MS umbrella now) that my 1099-B and supplement were available to me. They've been on the website for about a week now. Also lol at thinking they will be early.
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Feb 24, 2023 23:24
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My wife and I were able to get our house, student loans, and cars paid off, and we never carry any credit card debt. We've got at least 6 months in expenses in a "high yield" savings account. We both work full time, we max out our 401k/IRA every year. Across our retirement and investment accounts we have about 600k total. The only regular expenses we have are food, utilities, property taxes, car insurance, gas, etc., and day care for the kids. We're both under 40 and all in all we're in pretty good shape financially? We're not in the "retire at 40" zone, but we both keep asking ourselves and each other what is next. Do we keep dumping money into our investment accounts until we retire?
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Feb 24, 2023 23:51
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George Wright posted:Do we keep dumping money into our investment accounts until we retire? yes. how far do you think that 600k gets you in retirement?
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Feb 25, 2023 00:07
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You're doing great - better than most. Next step is to figure out your "number" - the target amount you will need to retire in the way you want to retire. This is adjusted for tradeoffs you're willing to make based on (generally speaking) age ceilings. You get this by backing in to it from the amount of expected income you're going to need to pay for your expenses in retirement, and keep in mind medicare is great but your annual medical bills are not going to be zero.
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Feb 25, 2023 00:12
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George Wright posted:The only regular expenses we have are food, utilities, property taxes, car insurance, gas, etc., and day care for the kids. In addition to what others said, you may want to look into college savings plans for the kids. There are tax advantages to throwing money in there now if you plan on contributing to their educational costs in the future. I don't have kids, though, so I'll defer to others with experience to weigh in on any specifics.
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Feb 25, 2023 00:19
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H110Hawk posted:You're doing great - better than most. Next step is to figure out your "number" - the target amount you will need to retire in the way you want to retire. This is adjusted for tradeoffs you're willing to make based on (generally speaking) age ceilings. You get this by backing in to it from the amount of expected income you're going to need to pay for your expenses in retirement, and keep in mind medicare is great but your annual medical bills are not going to be zero. Thanks for the info. Let’s say we decide we need 200k a year to retire and we set our retirement age at 60. Would we shoot for 200k a year in interest while trying not to touch the principle, or just 200k * however many years we would hope to have left on this godforsaken earth after 60? Also, gently caress the medical insurance industry in the US.
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Feb 25, 2023 00:24
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You would be mixing drawing down the principle as well as the annual earnings. If you wanted to do what the FIRE people do of basically living off the earnings then $7MM gets you a 3% withdrawal rate of $200k. But remember in the end you're dead. Any dollar over $0 is wasted to you, so you can adjust the slider to be a higher withdrawal rate based on some assumptions around when you will die and how close to $0 you are willing to be when that happens.
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Feb 25, 2023 00:29
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esquilax posted:What specifically are you asking when you say how? The trading screen through Schwab (at least) is very straightforward, the complication all comes from the fact that it's a complicated financial instrument and you need to understand the implications of all 5-10 inputs in order to not do something boneheaded.
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Feb 25, 2023 00:41
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PerniciousKnid posted:The approval process is what confused me. If approval is easy I guess I just need to swallow a handful of Motrin and dive in to the paperwork. You need to do this on a paper account first. Options are a force multiplier for everything and have extreme foot-gun capabilities. There is a reason you need approvals. If you are pressing buttons other than buy to open and sell to close you're in over your head. Why did you want to do options again? Recession boogeyman?
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Feb 25, 2023 00:46
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PerniciousKnid posted:The approval process is what confused me. If approval is easy I guess I just need to swallow a handful of Motrin and dive in to the paperwork. after the approval process your broker should send you a document like this https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf most people won’t read it, but, they should
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Feb 25, 2023 00:55
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PerniciousKnid posted:The approval process is what confused me. If approval is easy I guess I just need to swallow a handful of Motrin and dive in to the paperwork. No, you need to not do this at all. This is not finance, it's gambling.
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Feb 25, 2023 00:56
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H110Hawk posted:You need to do this on a paper account first. Options are a force multiplier for everything and have extreme foot-gun capabilities. There is a reason you need approvals. If you are pressing buttons other than buy to open and sell to close you're in over your head. Insurance mainly. I don't see what's so scary about basic options unless you're issuing them.
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Feb 25, 2023 01:22
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PerniciousKnid posted:Insurance mainly. Insurance from?
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Feb 25, 2023 01:29
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H110Hawk posted:Insurance from? Adverse price movements
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Feb 25, 2023 01:30
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H110Hawk posted:Insurance from? Holding on to too much of their own money for too long. Gotta redistribute it to the people.
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Feb 25, 2023 01:52
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PerniciousKnid posted:Adverse price movements I think you should head to the day trading thread then, as options are not newbies. 
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Feb 25, 2023 01:53
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H110Hawk posted:I think you should head to the day trading thread then, as options are not newbies. Okay thanks I'll look. I never bothered with day trading because I have to preclear my transactions with work.
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Feb 25, 2023 02:12
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Can I buy a put on my house because if it loses value I'm gonna be hosed. Edit: seriously though is there a good way to protect your biggest asset, besides buying in a bad neighborhood and investing the difference in an index fund?
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Feb 25, 2023 03:01
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PerniciousKnid posted:Can I buy a put on my house because if it loses value I'm gonna be hosed. Maybe buy puts on builders, not quite the same thing tho... Zillow and redfin are having to write down a ton of properties they were holding the bag on. Not sure how many are left.
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Feb 25, 2023 03:20
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