LETSGOBROWNIES Posted October 4, 2017 Share Posted October 4, 2017 Just now, ramssuperbowl99 said: I work in pharma. My interest in personal finance is a combination of being a nerd, having a mom who listened to Dave Ramsey with me in the car for years on end, and just being a white person with a genetic predisposition for avoiding taxes whenever possible. Lol, well thanks for the good info. Quote Link to comment Share on other sites More sharing options...
theJ Posted October 5, 2017 Share Posted October 5, 2017 7 hours ago, ramssuperbowl99 said: Why would you want to do both a Roth IRA and a Roth 401k? Most people's income (and therefore expected tax rate) goes down in retirement, so they'd come out ahead with the traditional 401k. Having a roth IRA on top of that might not be optimal, but is good for tax diversification. Well i did say "or". Not "and". Most people's tax rates go down in retirement, but they go down from the end of their career earnings, when they're earning the most. If you're 25, you're being taxed less now than in retirement in all likelihood. Maybe it's a different answer if you're 60 and 2 years from retirement. But i'm not. 1 Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted October 5, 2017 Share Posted October 5, 2017 13 minutes ago, theJ said: Well i did say "or". Not "and". Most people's tax rates go down in retirement, but they go down from the end of their career earnings, when they're earning the most. If you're 25, you're being taxed less now than in retirement in all likelihood. Maybe it's a different answer if you're 60 and 2 years from retirement. But i'm not. That's a good point. Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 6, 2017 Share Posted October 6, 2017 I will 2nd @ramssuperbowl99 3 fund plan. Can't beat it. Personally my AA is a little different. I'm 32, wife, 2 kids, but am 100% in stocks with a 50/50 domestic/international split. FSTVX & FTIPX Why no bonds incog? Because my wife will have a state pension, which acts a pseudo huge bond upon retirement, so we are, without trying ~50/50 stock/bond as a household so there's no way I'm going to stick more money into a bond fund for my accounts. My 401(k) (and former) are both through Fidelity and my Roth IRA is moved there as well. We live comfortably below our means and next year I will start maxing out my 401(k) personal contribution (beyond the maxing the employer's match 150% on 8% I currently do). Here's a good summary of what funds are similar across providers: https://www.bogleheads.org/wiki/Three-fund_portfolio Quote Link to comment Share on other sites More sharing options...
cddolphin Posted October 6, 2017 Share Posted October 6, 2017 On 10/4/2017 at 4:02 PM, ramssuperbowl99 said: just being a white person with a genetic predisposition for avoiding taxes whenever possible. I think that's called a libertarian 1 Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted October 13, 2017 Share Posted October 13, 2017 On 10/5/2017 at 8:37 PM, incognito_man said: I will 2nd @ramssuperbowl99 3 fund plan. Can't beat it. Personally my AA is a little different. I'm 32, wife, 2 kids, but am 100% in stocks with a 50/50 domestic/international split. FSTVX & FTIPX Why no bonds incog? Because my wife will have a state pension, which acts a pseudo huge bond upon retirement, so we are, without trying ~50/50 stock/bond as a household so there's no way I'm going to stick more money into a bond fund for my accounts. My 401(k) (and former) are both through Fidelity and my Roth IRA is moved there as well. We live comfortably below our means and next year I will start maxing out my 401(k) personal contribution (beyond the maxing the employer's match 150% on 8% I currently do). Here's a good summary of what funds are similar across providers: https://www.bogleheads.org/wiki/Three-fund_portfolio Meant to ask this and just never did. Why 1:1 domestic:international? Quote Link to comment Share on other sites More sharing options...
wackywabbit Posted October 14, 2017 Share Posted October 14, 2017 On 10/5/2017 at 9:37 PM, incognito_man said: (beyond the maxing the employer's match 150% on 8% I currently do) *Drools* Quote Link to comment Share on other sites More sharing options...
Pats#1 Posted October 14, 2017 Share Posted October 14, 2017 7 hours ago, wackywabbit said: On 10/5/2017 at 8:37 PM, incognito_man said: (beyond the maxing the employer's match 150% on 8% I currently do) *Drools* Yea, I get a whopping 25% on 6%. Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 14, 2017 Share Posted October 14, 2017 On 10/13/2017 at 11:48 AM, ramssuperbowl99 said: Meant to ask this and just never did. Why 1:1 domestic:international? Quote The relative percentage of domestic and international stocks is a subject of intense discussion in the forum. One sensible option is to hold domestic and international stocks in the same proportions as they represent in the total world economy. As of October 2014, that would be about 50% U. S. and 50% international. This option is recommended by Burton Malkiel and Charles Ellis https://www.bogleheads.org/wiki/Three-fund_portfolio Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 14, 2017 Share Posted October 14, 2017 43 minutes ago, Pats#1 said: Yea, I get a whopping 25% on 6%. My employer has a very generous plan. I think it used to be 150% on 10% but they decreased it to 8% shortly before I started. I'm a fan Quote Link to comment Share on other sites More sharing options...
Pats#1 Posted October 14, 2017 Share Posted October 14, 2017 Just now, incognito_man said: My employer has a very generous plan. I think it used to be 150% on 10% but they decreased it to 8% shortly before I started. I'm a fan Yea, my company has always had pretty crappy benefits overall. Used to be 50% on 6%, but with the oil industry struggling hard the past 3 years, they've been trimming cost everywhere they possibly can. Quote Link to comment Share on other sites More sharing options...
Iggles Posted October 15, 2017 Share Posted October 15, 2017 20 hours ago, incognito_man said: https://www.bogleheads.org/wiki/Three-fund_portfolio It's a fascinating theory. One thing about it that bears scrutiny is the multinational issue. Equities domiciled internationally can derive the majority of their revenues from domestic markets, and vice versa. Rules of thumb rarely delve that deep and therefore don't get into the country of revenue question. Conversely, rules of thumb like that prevent people from trying to time domestic/international equity valuations, thereby avoiding negative market timing investor behavior. Quote Link to comment Share on other sites More sharing options...
incognito_man Posted October 16, 2017 Share Posted October 16, 2017 6 hours ago, Iggles said: It's a fascinating theory. One thing about it that bears scrutiny is the multinational issue. Equities domiciled internationally can derive the majority of their revenues from domestic markets, and vice versa. Rules of thumb rarely delve that deep and therefore don't get into the country of revenue question. Conversely, rules of thumb like that prevent people from trying to time domestic/international equity valuations, thereby avoiding negative market timing investor behavior. yep, i know and recognize I am not smart enough on it to and don't necessarily have the time to commit to it, so I also picked it for simplicity. Quote Link to comment Share on other sites More sharing options...
Iggles Posted October 17, 2017 Share Posted October 17, 2017 22 hours ago, incognito_man said: yep, i know and recognize I am not smart enough on it to and don't necessarily have the time to commit to it, so I also picked it for simplicity. It's part of why rules of thumb can work here. You leave something off the table but avoid getting taken under the table. It takes a certain amount of humility to acknowledge that one doesn't have the skill to time the market, but that's imperative if you want to maximize long-term returns without true professional investment expertise and skill. Quote Link to comment Share on other sites More sharing options...
LETSGOBROWNIES Posted October 20, 2017 Share Posted October 20, 2017 On October 14, 2017 at 9:08 AM, wackywabbit said: *Drools* Lol right?!? I get 100% up to 4%. Our real benefit is the stock option plan, 15% off the lowest price at the beginning or end of the 6 month purchase period (whichever is lower). They also throw in 500/1000 into your HSA (single/family). Quote Link to comment Share on other sites More sharing options...
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