Investing, Stock Market and Retirement Planning Thread

[NTP66]

Yeah, Excel works if you put in the effort, and there are places who created custom budgeting spreadsheets as a template.

[dodint]

I downloaded this one about 15 years ago and I've been using it ever since: https://www.vertex42.com/ExcelTemplates/budgets.html

[mac5155]

Thanks, yeah I'm probably just going to use excel. I want to track I/O from my bank account and less concerned about real time balances

[mac5155]

What's The deal here crypto bros. Should I liquidate this stuff for 1000% gains this time around or keep hodling

[mikey]

I cashed. Will buy back in.

[robbiestoupe]

I think IRAs and Brokerage accounts are the only options, which is unfortunate. You could also do what we do and invest in the IRA and then do a backdoor Roth conversion to get around restrictions/having to do any calculations.

Looks like this is the way I’ll go since our income may push us over the limit to go directly into a Roth IRA. Do you do the back door immediately after you invest into the IRA, or do you wait until the end of the year? Do you just set up your own IRA account for the sole purpose of using the back door?

[NTP66]

I think IRAs and Brokerage accounts are the only options, which is unfortunate. You could also do what we do and invest in the IRA and then do a backdoor Roth conversion to get around restrictions/having to do any calculations.

Looks like this is the way I’ll go since our income may push us over the limit to go directly into a Roth IRA. Do you do the back door immediately after you invest into the IRA, or do you wait until the end of the year? Do you just set up your own IRA account for the sole purpose of using the back door?

This guy’s blog is what I always recommend for backdoor Roth conversions because he plays out every step with details. I have always done the same exact steps myself, so I can vouch for them.

https://www.physicianonfire.com/backdoor/

In a nutshell, you’d be doing the following:

• Ensure that your Traditional IRA account has a $0 balance as of 12/31 of the prior year (same goes for any SEP or SIMPLE IRAs)
• Contribute up to the max of that year’s Traditional IRA
• Wait for the “Convert to Roth IRA” link to be available in Vanguard, usually 2-3 business days later
• Once available, convert the entire balance to your Roth IRA
• Once complete, use the funds in your Roth IRA’s Settlement fund to invest in whatever fund you want to use
• Let your accountant know that you performed a backdoor Roth, how much and when

I’ve been doing this for a very long time and have never had an issue. You just have to check annually to make sure that they didn’t change the laws banning them.

[mikey]

Thanks for that. My wife insists that I'm lying about these...to which I said, "Do you think that the possibly, mildly wealthy just don't save for retirement?"

I just haven't had the time to seek out a good step by step guide for the action...

[robbiestoupe]

I think IRAs and Brokerage accounts are the only options, which is unfortunate. You could also do what we do and invest in the IRA and then do a backdoor Roth conversion to get around restrictions/having to do any calculations.

Looks like this is the way I’ll go since our income may push us over the limit to go directly into a Roth IRA. Do you do the back door immediately after you invest into the IRA, or do you wait until the end of the year? Do you just set up your own IRA account for the sole purpose of using the back door?

This guy’s blog is what I always recommend for backdoor Roth conversions because he plays out every step with details. I have always done the same exact steps myself, so I can vouch for them.

https://www.physicianonfire.com/backdoor/

In a nutshell, you’d be doing the following:

• Ensure that your Traditional IRA account has a $0 balance as of 12/31 of the prior year (same goes for any SEP or SIMPLE IRAs)
• Contribute up to the max of that year’s Traditional IRA
• Wait for the “Convert to Roth IRA” link to be available in Vanguard, usually 2-3 business days later
• Once available, convert the entire balance to your Roth IRA
• Once complete, use the funds in your Roth IRA’s Settlement fund to invest in whatever fund you want to use
• Let your accountant know that you performed a backdoor Roth, how much and when

I’ve been doing this for a very long time and have never had an issue. You just have to check annually to make sure that they didn’t change the laws banning them.

I’m guessing you do this as one transaction at the end of the year? I was thinking of contributing a monthly amount based on a percentage of my wife’s income for that month. That way I could earn the interest on it immediately instead of waiting until the end of the year.

[NTP66]

I think IRAs and Brokerage accounts are the only options, which is unfortunate. You could also do what we do and invest in the IRA and then do a backdoor Roth conversion to get around restrictions/having to do any calculations.

Looks like this is the way I’ll go since our income may push us over the limit to go directly into a Roth IRA. Do you do the back door immediately after you invest into the IRA, or do you wait until the end of the year? Do you just set up your own IRA account for the sole purpose of using the back door?

This guy’s blog is what I always recommend for backdoor Roth conversions because he plays out every step with details. I have always done the same exact steps myself, so I can vouch for them.

https://www.physicianonfire.com/backdoor/

In a nutshell, you’d be doing the following:

• Ensure that your Traditional IRA account has a $0 balance as of 12/31 of the prior year (same goes for any SEP or SIMPLE IRAs)
• Contribute up to the max of that year’s Traditional IRA
• Wait for the “Convert to Roth IRA” link to be available in Vanguard, usually 2-3 business days later
• Once available, convert the entire balance to your Roth IRA
• Once complete, use the funds in your Roth IRA’s Settlement fund to invest in whatever fund you want to use
• Let your accountant know that you performed a backdoor Roth, how much and when

I’ve been doing this for a very long time and have never had an issue. You just have to check annually to make sure that they didn’t change the laws banning them.

I’m guessing you do this as one transaction at the end of the year? I was thinking of contributing a monthly amount based on a percentage of my wife’s income for that month. That way I could earn the interest on it immediately instead of waiting until the end of the year.

I wait until tax season to do mine. So in February, I made my 2024 contributions to my tIRA, waited like 2 days, then did the backdoor conversion. If you are going to save money throughout the year, give yourself leeway for timing the backdoor. Do it before December, IMO.

[robbiestoupe]

I just figure it’s better to put that saved money into the Roth IRA right away so it can gain interest vs waiting until the end of the year. As long as the number of back door conversions is limitless.

[NTP66]

I just figure it’s better to put that saved money into the Roth IRA right away so it can gain interest vs waiting until the end of the year. As long as the number of back door conversions is limitless.

So, you definitely can't put it into your Roth directly over time because then you're subject to the Roth IRA limits. You can trickle money into your Traditional IRA over time, then do the one time full conversion to a Roth. Personally, I prefer to put that cash into a high yield savings account until you're ready to do the tIRA>rIRA stuff at the end of the year. Makes it far less complicated.

[robbiestoupe]

I just figure it’s better to put that saved money into the Roth IRA right away so it can gain interest vs waiting until the end of the year. As long as the number of back door conversions is limitless.

So, you definitely can't put it into your Roth directly over time because then you're subject to the Roth IRA limits. You can trickle money into your Traditional IRA over time, then do the one time full conversion to a Roth. Personally, I prefer to put that cash into a high yield savings account until you're ready to do the tIRA>rIRA stuff at the end of the year. Makes it far less complicated.

I don’t think I’ll exceed the Roth IRA limits. We’re talking $500 per month or so. And I’d put it into the traditional IRA first then do the transfer in the next couple days when available to do so. So instead of one $6000 transfer at the end of the year it’s 12, $500 transfers every month

But yeah, interest in my savings account right now is 5% so I may just do the one large transfer at the end of the year

[NTP66]

I just figure it’s better to put that saved money into the Roth IRA right away so it can gain interest vs waiting until the end of the year. As long as the number of back door conversions is limitless.

So, you definitely can't put it into your Roth directly over time because then you're subject to the Roth IRA limits. You can trickle money into your Traditional IRA over time, then do the one time full conversion to a Roth. Personally, I prefer to put that cash into a high yield savings account until you're ready to do the tIRA>rIRA stuff at the end of the year. Makes it far less complicated.

I don’t think I’ll exceed the Roth IRA limits. We’re talking $500 per month or so. And I’d put it into the traditional IRA first then do the transfer in the next couple days when available to do so. So instead of one $6000 transfer at the end of the year it’s 12, $500 transfers every month

But yeah, interest in my savings account right now is 5% so I may just do the one large transfer at the end of the year

Do you use an accountant for your taxes? If so, have him tell you what your Roth IRA limit is for this tax year so that you know for certain that you won't hit a limit. If you are going to be under the limit anyway, there's no need for the backdoor Roth. You can just invest in your Roth like normal and call it a day.

[robbiestoupe]

I just figure it’s better to put that saved money into the Roth IRA right away so it can gain interest vs waiting until the end of the year. As long as the number of back door conversions is limitless.

So, you definitely can't put it into your Roth directly over time because then you're subject to the Roth IRA limits. You can trickle money into your Traditional IRA over time, then do the one time full conversion to a Roth. Personally, I prefer to put that cash into a high yield savings account until you're ready to do the tIRA>rIRA stuff at the end of the year. Makes it far less complicated.

I don’t think I’ll exceed the Roth IRA limits. We’re talking $500 per month or so. And I’d put it into the traditional IRA first then do the transfer in the next couple days when available to do so. So instead of one $6000 transfer at the end of the year it’s 12, $500 transfers every month

But yeah, interest in my savings account right now is 5% so I may just do the one large transfer at the end of the year

Do you use an accountant for your taxes? If so, have him tell you what your Roth IRA limit is for this tax year so that you know for certain that you won't hit a limit. If you are going to be under the limit anyway, there's no need for the backdoor Roth. You can just invest in your Roth like normal and call it a day.

I don’t have an accountant now but that’ll change soon. I was given RSU’s and stock options at work and some of those will vest this year. Taxes about to get real complicated. If I can find an accountant/financial advisor in one that would be ideal. Some of this RSU/stock stuff is way above my head

And like I said earlier, we’ll be teetering on the edge of being at the limit to be able to contribute directly to a Roth IRA. My wife’s income varies so there’s no way to know what she’ll end up making this year.

[NTP66]

Source of the post And like I said earlier, we’ll be teetering on the edge of being at the limit to be able to contribute directly to a Roth IRA. My wife’s income varies so there’s no way to know what she’ll end up making this year.

This is precisely why I think it's a good idea to invest in a savings account throughout the year and then, once you figure out your MAGI to get your limit, then do the IRA stuff.

But yeah, an accountant/financial advisor in one would be nice. Ours is, but we only use him for our taxes since he knows how I invest and knows my plan is solid.

[Dickie Dunn]

Chipotle working on a 50 to 1 stock split. Prepare yourselves accordingly.

[NTP66]

...by continuing to not hold **** Chipotle stock? Will do.

[Shyster]

Obligatory:

[Pavel Bure]

Chipotle working on a 50 to 1 stock split. Prepare yourselves accordingly.

If you have an extra 3k laying around get yourself that 1 share…

[King Colby]

Why the actual **** is Chipotle share pricethat high

[Dickie Dunn]

Chipotle working on a 50 to 1 stock split. Prepare yourselves accordingly.

If you have an extra 3k laying around get yourself that 1 share…

No you dingus you buy it at 60/share in June.

[count2infinity]

Fubo TV?

[Pavel Bure]

Why the actual **** is Chipotle share pricethat high

That was the point. I was like “what is it like $200 a share. 3 effin grand. Holy hell.

[mac5155]

Even $ 60 a share is still higher than I'd expect lol