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I just bought this house last Sept and did a 30 year. Took a damn minute but just sold my other house, so I've been paying both mortgages since then. We close in a couple weeks
NT: Official Personal Finances Thread
I just bought this house last Sept and did a 30 year. Took a damn minute but just sold my other house, so I've been paying both mortgages since then. We close in a couple weeks
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Anyone have retirement accounts with TD Ameritrade ? Thoughts ? I'm too late to start an account with Vanguard since they want me to mail forms in and I wont be able to get it done by the April 18th deadline.
antidope
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Just open one. You can always just transfer it to vanguard later in the year. Opening it and contributing is the more pressing issue.
You can contribute to an IRA somewhere, contribute and hold it in all cash then transfer it to Vanguard if you really have your heart set on having it there.
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I have TD Ameritrade for my HSA. It works, just like any of the other major brokerages. I've got no beefs with it right now and, like @Antidope said, you can just open it and then transfer to Vanguard later if you want to.
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Hey guys, I really appreciate all the helpful advice in here. Really feels good to be able to take control of your financial situation and start saving up for future security.
Just a few questions, if anyone can lend some advice:
Currently a med school student, who's debt free and earns a stipend for living expenses. I've currently been able to stash away approximately $700 a month for saving/investments. My main focus is building up my emergency fund, which I currently have at about $3000. $300 a month into my emergency fund, and $400 into my investments.
I have 2 brokerage accounts, one with Wells Fargo and the other with T. Rowe Price investing in mutual funds valued at $12K and $19K, respectively. I have been thinking about taking some of the money and opening a Roth IRA. I'm assuming I would have to sell some shares of the mutual funds, then take that cash and put that into the Roth IRA. Is that correct?
If so, am I taxed on both the gains from the sales of the mutual fund shares, as well as the money which is then being put into the Roth?
I can't take advantage of any employer matching programs since I'm still a student, but I wanted to start saving now while I'm not really making much money. What would be the best strategy?
Thanks!
Just a few questions, if anyone can lend some advice:
Currently a med school student, who's debt free and earns a stipend for living expenses. I've currently been able to stash away approximately $700 a month for saving/investments. My main focus is building up my emergency fund, which I currently have at about $3000. $300 a month into my emergency fund, and $400 into my investments.
I have 2 brokerage accounts, one with Wells Fargo and the other with T. Rowe Price investing in mutual funds valued at $12K and $19K, respectively. I have been thinking about taking some of the money and opening a Roth IRA. I'm assuming I would have to sell some shares of the mutual funds, then take that cash and put that into the Roth IRA. Is that correct?
If so, am I taxed on both the gains from the sales of the mutual fund shares, as well as the money which is then being put into the Roth?
I can't take advantage of any employer matching programs since I'm still a student, but I wanted to start saving now while I'm not really making much money. What would be the best strategy?
Thanks!
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^ You will be taxed only on the long term capital gains(proceeds less cost basis) which is taxed at 15% if you're in the 25 to 35% tax brackets
antidope
Supporter
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You could also look at the tax lots, see which ones have an unrealized loss and just sell those as well (unless they all have gains in which case sell the long term tax lots)
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Good to know, thanks. Now lets say I was contributing my own money, not money from my brokerage accounts. How would that be taxed?
From what I recall, they all have unrealized gain right now. How would I go about determining tax lots?
antidope
Supporter
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If you're contributing money outright into a Roth you just wouldn't be able to deduct the contributions on your tax return whereas with a traditional IRA you would.
In regards to the second hard to answer cause I don't know how those other sites are set up. I have Fidelity and it's terrible I have to look at tax lots for each position one at a time instead of just being able to look at all of them. Generally it should be a sub menu under the holdings/positions tab.
In regards to the second hard to answer cause I don't know how those other sites are set up. I have Fidelity and it's terrible I have to look at tax lots for each position one at a time instead of just being able to look at all of them. Generally it should be a sub menu under the holdings/positions tab.
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Ok, that makes a lot of sense. Thanks. I'll look into the tax lots, and if I have further questions, I'll just give them a call and ask.
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this thread continues to be great... glad to see everyone asking good questions and increasing their net worth
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How does an unpaid 401k loan affect your taxes?
If you take a loan of 5k, make regular payroll payments and leave your job, (let's say you have a 3k balance at this point). the balance of 3k has to be paid within 60 days. What happens if you don't pay that back? I've read some places that you'll get a 1099R for the outstanding amount. Not sure if true. If true, how can this affect your taxes/tax refund/your pockets?
(Not my situation btw)
If you take a loan of 5k, make regular payroll payments and leave your job, (let's say you have a 3k balance at this point). the balance of 3k has to be paid within 60 days. What happens if you don't pay that back? I've read some places that you'll get a 1099R for the outstanding amount. Not sure if true. If true, how can this affect your taxes/tax refund/your pockets?
(Not my situation btw)
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If you get a 1099 you have to disclose that along with your W-2 when filing your taxes. The 1099 is going to be linked to your SSN. If you don't report the income and pay your share of taxes the IRS will come after you for the taxes and penalties/fines. If you're in a refund position I'm sure they'll offset what you owe on the 1099 income from your refund.
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It would be considered an early withdrawal distribution and will be reported on a 1099-R which will state that early distribution code. Federal and/or State early withdrawal tax penalties will be calculated on your tax return on the year you receive that 1099-R however there are exceptions to that penalty if you used that money to buy your first home, you're disabled.. etc.
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6 Rings G.O.A.T.
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Information in here.. 
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Joining the party late here.
Just had a son and want to start his college fund now. What I wanted to know is the 529 plan worth it or would I be better off investing in mutual funds?
Any and all advice is appreciated.
Just had a son and want to start his college fund now. What I wanted to know is the 529 plan worth it or would I be better off investing in mutual funds?
Any and all advice is appreciated.
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Don't you invest in mutual funds with a 529? Thought it was just another tax advantaged type of account like an IRA or 401k.
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It seems as if there are some advantages but I'm worried about if he gets a scholarship or goes to a school where his tuition is covered since I'm a disabled vet, the money still has to be used for school or it will be taxed or have penalties.
Just wondering if it will be easier to pull money out if it's invested in mutual funds vice the 529.
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The money can be used for education related things such as room and board, books- which could cost 1-2k annually, and laptops.
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Good info in here
Another scenario for y'all
And this is the position I'm in now
Young dude (under 26), fully vested in 401k. Been with the company 3 years. Thinking about leaving to start with a new company (salary will be higher of course).
What's the smartest thing to do with the 401k? I know rolling it over is always the way to go. But what are your thoughts on withdrawing it upon resigning from my job, and take the cash to use as a DP for a house? And then I start fresh with the new jobs 401k?
Not sure if that even makes any sense or if ppl do that, but what do y'all think?
Another scenario for y'all
And this is the position I'm in now
Young dude (under 26), fully vested in 401k. Been with the company 3 years. Thinking about leaving to start with a new company (salary will be higher of course).
What's the smartest thing to do with the 401k? I know rolling it over is always the way to go. But what are your thoughts on withdrawing it upon resigning from my job, and take the cash to use as a DP for a house? And then I start fresh with the new jobs 401k?
Not sure if that even makes any sense or if ppl do that, but what do y'all think?
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Best case scenario is to never have to dip into your retirement for anything. I'm tempted to take something out for a down payment too, but I'm gonna try to be patient. Also, rolling over your 401k isn't necessarily "the smartest thing to do" because fund options vary from employer to employer. The funds at your old job might be a lot better than what might be available at the new gig. Rolling over is more for convenience to have everything in one account. Correct me if I'm wrong.
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Quote:
There taxes/penalties for early withdrawal.
If you REALLY need more $ for DP and are set on using 401k funds:
Roll it over to new job's 401k, take out 401k LOAN (not withdrawal). Standard is you can take out 50% of what's in there. My company has 5% interest rate (that you pay to yourself) for 401k loan and you pick your repayment timeline anywhere from 4 months to 10 years. No taxes or penalties, but a portion of your paycheck will go to paying back your 401k loan.
You should roll it over.
There taxes/penalties for early withdrawal.
If you REALLY need more $ for DP and are set on using 401k funds:
Roll it over to new job's 401k, take out 401k LOAN (not withdrawal). Standard is you can take out 50% of what's in there. My company has 5% interest rate (that you pay to yourself) for 401k loan and you pick your repayment timeline anywhere from 4 months to 10 years. No taxes or penalties, but a portion of your paycheck will go to paying back your 401k loan.
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Unless it's dire don't withdraw from your retirement account.
Only time I would do it outside of absolute necessity is if you are investing in something else that will outperform it.
Only time I would do it outside of absolute necessity is if you are investing in something else that will outperform it.
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On the loan idea, paying it back to yourself, I'd add you're also missing out on potential gains / compounding interest... that's why we putting this money in there at a somewhat young age, let time work in our favor, but it can't do that if it's taken out
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Great Lakes Credit Union offers 3.0% on up to $10k
https://www.glcu.org/accounts/personal/checking/ultimate-checking/
Have to do some things (like use your debit card 10x per month, but you can buy 1 pack of gum in 10 different purchases) but its better than most
