Investing, Stock Market and Retirement Planning Thread

Postby **DigitalGypsy66** » Fri Sep 25, 2020 1:17 pm

Yeah, I transferred some money last month and it took a lot longer than usual. No notice or explanation from them, either. This can't be blamed on the pandemic, can it?

We buy those Lays variety packs of Doritos, potato chips, etc. for the kids' lunches and there was a inkjet printed notice that some flavors may be missing due to COVID-19 supply restrictions, but the total number of bags is correct. I mean, really? Lays can't get ingredients for Doritos?

(I still cringe when you tag me in this thread!)

Postby **NTP66** » Fri Sep 25, 2020 1:23 pm

Right after I hit Submit I thought, "man, he's gonna think Marcus dropped their rates again".

Everyone's rates are ****, which is why I haven't made any moves yet. I have 3 or 4 big CDs maturing early next year, and that will factor heavily in to which direction I go.

Postby **mac5155** » Fri Oct 02, 2020 11:50 am

Based on research and suggestions from our long-term investment partner Vanguard, Ohio's 529 Plan will be converting the Money Market Portfolio on Oct. 23.

Can someone explain if this is a good or bad thing? Or doesn't really even matter?

Postby **MrKennethTKangaroo** » Fri Oct 02, 2020 12:08 pm

Converting the money market portfolio to what

do you keep any of jr macs 529 $$$$ in a money market account in the 529

Postby **mac5155** » Fri Oct 02, 2020 9:02 pm

I am 100% invested into an age based portfolio. Currently at 100% stocks also. Lil mac just turned 2. I think it gradually changes allocations based on his age.

So I guess that means nothing to me.

Postby **mac5155** » Sat Oct 17, 2020 9:46 am

Question.

I know everyone says to wait until stock options expire to exercise them, but, well, they're worth an absolute pile of money right now, and while I'm not about to actually pull the trigger, I want to be prepared.

My options are NSOs. So as I understand it, Id be subject to payroll taxes on the current price - exercise price, and then capital gains on any difference after I exercise and then sell (but if I exercise and sell right away then nothing). Am I correct on this?

That said... Is there really a need to strategize when to exercise the options? Is there a calculator or something I can use to figure out if I spread it out over two tax years that my tax burden will be lower?

TIA

Postby **dodint** » Fri Oct 23, 2020 3:40 pm

USAA divested themselves of their security trading functions. They partner with Schwab now. I'm looking to just poke around with some stocks. Is there a particular brokerage/company that is best for the casual guy like me? I just have a few thousand I want to fuss around with for a few months before I liquidate it to buy race car parts in the spring.

Should I just do Schwab or is there an obvious industry leader I should open an account with?

Postby **willeyeam** » Fri Oct 23, 2020 3:50 pm

honestly for a few K for a few months I'd just go to robinhood

Postby **dodint** » Fri Oct 23, 2020 3:56 pm

Reddit says it's bad.

YouTube · Postby **mikey** » Fri Oct 23, 2020 4:07 pm

I say it's fine for what you're trying to do...

Postby **Dickie Dunn** » Fri Oct 23, 2020 5:19 pm

Nobody charges fees anymore so it’s really just about finding which interface and platform you like the most. Personally, I like Schwab.

YouTube · Postby **mikey** » Fri Oct 23, 2020 6:02 pm

Let me know if you need that sweet, sweet referral link...

Postby **Shyster** » Wed Nov 04, 2020 6:32 pm

Does anyone here have any experience or insight into the mutual-fund offerings of Capital Group / American Funds?

Postby **MrKennethTKangaroo** » Thu Nov 05, 2020 6:58 am

Does anyone here have any experience or insight into the mutual-fund offerings of Capital Group / American Funds?

My insight isn’t particularly useful but at least it is insight. Before index funds ruled the world, American Funds was one of the top dogs in the mutual fund world. The Income Fund of America and the Growth and Income fund were two “name brand” funds available to pretty much anyone. My perception is that the funds were very popular with an older set of people more accustomed to active funds. So their reputation overall is good but also outdated.

Postby **willeyeam** » Thu Nov 05, 2020 8:37 am

Their statements suck for auditors trying to reconcile annual activity

YouTube · Postby **mikey** » Thu Nov 05, 2020 2:04 pm

Does anyone here have any experience or insight into the mutual-fund offerings of Capital Group / American Funds?

From a Wall Street friend...

"American Funds are actively managed and charge a front loaded fee so you have to pay up front to even get into the fund and then they have a 64 bps expense ratio. The up front fee is 5.75%. They have not out performed the S&P 500 so you can invest in this fund or give us a bag of money and we’ll put it into the vanguard SP500 fund after we skim some off the top. Either way you’ll end up in the same place but at least we make out in the second scenario"

Postby **Shyster** » Thu Nov 05, 2020 9:50 pm

Thanks for the comments. My brother and I are inheriting my mother's retirement accounts, and she had most of them invested in various American Funds offerings. The rate of return isn't the best, but they also seem to perform fairly well during market drops. Neither of us needs this money right now, so I'm thinking I'll probably leave it where it is.

YouTube · Postby **mikey** » Thu Nov 05, 2020 10:19 pm

I don't know your exact setup or whatever, and I don't know all the rules, and I also don't have to tell you, but really look into the taxes on this stuff and when you withdrawal or transfer it or do something with it...seems pretty likely that taxes are about to go up and all that stuff...so if you're gonna act, I'd act sooner rather than later obviously...

Postby **Shyster** » Thu Nov 05, 2020 10:29 pm

We're already on it. Two of the accounts were Roth IRAs, which should pass tax-free. The main account was a conventional IRA, which will be taxable to my brother and I as ordinary income. Under new rules that just went into effect, an heir has 10 years to take full distribution of an inherited IRA. It used to be that someone who inherited an IRA could spread the distributions out over their own expected lifespan, but it's now 10 years max. It doesn't have to be paid out as cash, however, and you can flip the IRA's holdings into your own mutual-fund account. Gotta pay income tax on it either way, however.

A lot of people make the mistake of liquidating these sorts of accounts all at once. That results in a massive income-tax bill.

Postby **willeyeam** » Thu Nov 05, 2020 10:31 pm

I don't know your exact setup or whatever, and I don't know all the rules, and I also don't have to tell you, but really look into the taxes on this stuff and when you withdrawal or transfer it or do something with it...seems pretty likely that taxes are about to go up and all that stuff...so if you're gonna act, I'd act sooner rather than later obviously...

Why are taxes going to go up?

Postby **NTP66** » Fri Nov 06, 2020 6:43 am

Yeah, I don't think Biden has proposed anything crazy that would make that post make sense. If the GOP maintains control over the Senate, which it likely will, then I'd have even fewer fears about the stock market and retirement plans.

Postby **NTP66** » Fri Nov 06, 2020 7:04 am

Speaking of the stock market, it must have blasted off this week, because updating Quicken was finally a happy event this morning.

Postby **Beveridge** » Fri Nov 06, 2020 8:19 am

This week has gotten back just about all the losses from the previous couple of weeks.

YouTube · Postby **mikey** » Fri Nov 06, 2020 9:33 am

I don't know your exact setup or whatever, and I don't know all the rules, and I also don't have to tell you, but really look into the taxes on this stuff and when you withdrawal or transfer it or do something with it...seems pretty likely that taxes are about to go up and all that stuff...so if you're gonna act, I'd act sooner rather than later obviously...
Why are taxes going to go up?

We elected a (D) and we make it a priority to socialize losses in this country...

Postby **willeyeam** » Fri Nov 06, 2020 9:41 am

I don't know your exact setup or whatever, and I don't know all the rules, and I also don't have to tell you, but really look into the taxes on this stuff and when you withdrawal or transfer it or do something with it...seems pretty likely that taxes are about to go up and all that stuff...so if you're gonna act, I'd act sooner rather than later obviously...
Why are taxes going to go up?
We elected a (D) and we make it a priority to socialize losses in this country...

Does the president unilaterally raise taxes?