> You can withdraw from your 401(k) whenever you want
Absolutely not generally true. There are substantial restrictions, penalties, and/or limits.
I mean you could just leave it there and let it accrue interest while you continue to save for a house. You can withdraw from your 401(k) whenever you want. It’s your money.
Yup, a 401(k) loan is actually pretty good for your retirement savings when the market is tanking. As long as you can pay it.
Solo 401(k)'s are trivial in comparison to registering a legal entity with the IRS as an IRA custodian so that you can buy I-bonds in that account in the name of a trust. Especially since you already have to educate yourself about tax law more than the average person if you're going to start a business - this applies to 16% of working age Americans, not "everyone". And finally it is worthwhile to spend some time creating a tax shelter for $61k per year of retirement savings; $10k per year of I-bonds is a waste of time.
Now shoo little troll, I'm done with you.
I'm not planning to work here for long-term because I'm student and work about 30 hours per week.
I'm currently doing 5% 401(k), $200/month Roth IRA, $70 for company stock, have emergency funds and cash as well.
I take the 50% match already because they offer 50% match up to 4% and I'm doing 5% right now.
I'm thinking whether should I put more in 401(k) or Roth IRA.
You're talking about an LLC, a corporation, and a partnership. Those are three different kinds of business entities with completely different rules for creation, accounting and taxation. They also have three completely different designations on the SS-4. You're incorrect that the EIN doesn't change, you're incorrect that a LLC would file a corporation return, and you're incorrect that an LLC or corporation would issue K-1s to partners. Your advice to consult with a CPA is good advice.
You haven't lost anything unless you sell at a loss. The number on your screen isn't money in this account, it's the valuation of the shares you bought. You have the exact same number of shares that you purchased.
Keep putting money into your 401(k), it will grow over time.
Read The Simple Path to Wealth to get a better understanding of how this works.
So should I max out my 401(k) (19,500 a year) first and then max Roth IRA (6,000) next?
I'm just curious because my 401(k) has a 50% match but the investment options are only target date funds while with Roth IRA I can pick different index funds.
also when the values are that (relatively) small, closing costs are going to represent a MASSIVE hit relative to the amount you're taking. Might be a few k in closing costs, which on a 50k HELOC is.... a lot
You can. But keep in mind for a traditional 401(k), the tax you save now is your current marginal tax rate, and the tax you pay later is your future effective tax rate. Even if you expect to have higher income in retirement, your future effective tax rate might be lower than your current marginal tax rate.
Something else to keep in mind is that if your employer matches your contributions, their contribution will be considered pre-tax (traditional).
Your current understanding is correct.
Total allowable IRA contribution is $6,000.
Total allowable 401(k) contribution is $20,500.
Contributing to an IRA does not impact your contribution limit for a 401(k) and vice versa.*
*Unless you are at the income limit for contributing to a Roth IRA, in which case contributing to a traditional 401(k) can reduce your taxable income enough that you can still contribute to the Roth IRA. In this case, contributing to your 401(k) increases how much you can contribute to your IRA (but not beyond $6,000).
The EIN doesn't change. The LLC paperwork is simple, just add a member and put the % ownership. The problem is the taxes get more complicated. You'll have to file a corporate return - both state and federal - and produce K-1s for the partners and split everything by the % ownership. I would talk to your CPA about the costs involved before you decide to go down this road.
If I sold some cryptocurrency this year to like the tune of 40-50k profit, it would be worth it to tax loss harvest that out of my brokerage if I could right?
I could potentially negate all the gain in 2022 taxes saving me 15ish K tax in California. I’ve already prepayed that tax but it would come out in tax refund time.
They goin for that K-pop look 😂
bit over 10k k on 152.5 apple and fed ex calls. I'll be eating something other then my underwear for once
Will soon get a few k from my grandparents for my first flat. I will put all of it in the market. Might gamble with a few% of it but most of it will go into normal stocks. Unless i fomo and yolo it all ok weekly options lol
6% match is free money. Think long term. 12% of your salary compounded out over your lifetime is substantial. Go for Roth 401(k) if possible.
Keep plowing money into your 401k, like others have suggested. Unless you are looking to retire soon you will almost certainly make it for it and then some.
Also don't look at your 401(k) if seeing it go down stresses you out. At most review what the money goes into (SPY, some other mutual fund, w/e) every quarter. Preferably less often. Have faith that the world economy will grown between now and retirement. Cuz if it doesn't, well we have bigger problems.
Read “rich dad poor dad” by Robert k
K good cuz I need 70 hookers while I drink some sangria and become a pussy slaying pirate out in the Caribbean.
K. So tax that as well. It's the only way for this to end peacefully.
What? You’ve made less than $110 K over 10 years?
At that point there’s more than enough warehouse jobs that will quadruple your average annual salary.
Fidelity has these things called fidfolios where you can invest say $100 into a basket where you set the percentages ahead of time and it puts say 10 in aapl 15 in PEP 5 in Tsla etc and you can have a bunch. I’ve got mine set up into 11 baskets, one for each sector and with companies that I like in that sector. For example my consumer discretionary basket is split between Crox, KDP, Celh, k, deck, and LVMH
All the oils and crap in them makes them terrible for our bodies. Anyone that thinks otherwise does not k ow the literature.
>Does it make more sense to adjust my contributions so that some of my traditional 401(k) money will go into a Roth
First off, that's a question regarding money you already have allocated as contributions, so I'm not sure why this question is resulting from the situation you have described (maxed out IRA and 401k already). The answer to this doesn't have anything to do with the additional money you want to invest.
Second, it starts getting to be pretty unlikely that your effective tax rate in retirement will exceed your marginal rate currently when you start getting into the 24% or higher tax bracket, but answering "pre-tax vs. roth" is definitely something that you need to start looking at what your potential tax environment will be when you retire, instead of having zero clue.
I’m dealing with this now. I have enough equity to buy another home but do I want to mess up my current life. My so makes good money so do I so I now work 30 hrs a week. We can easily pay the mortgage that is 850 plus taxes. Got the home in 2016 for 110k I owe 90k. We just paid off our car loan we paid monthly over double to pay it off. Car has 55 k on it. It’s an accord. I’m leaning toward staying like this not taking leverage. The car payment money is going to savings now 768.
Nothing is better like being a 20 year old Virgin $12,400 in an investing account ready to Yolo any second with 100 K in your bank in reserve thanks to mom
I don’t get how you’re making 50+K per year at $10/hr.
I hate the word cuck, but I hate the cucks on r/investing so much.
"If the economy crashes, I have a lot more to worry about than losing a couple hundred k in the market, I'll buy all the way down."
"Time in the market beats timing the market."
"Stocks are on sale 20% from January. Don't go to cash unless you have a crystal ball telling you when to get back in."
I'm all cash and have been since January except for short term trades. I sold half my 401k at 4700 and the other half at 4200. If I listened to these cuckbag morons, I would be doing a lot worse than them this year.
"Hur dur stocks go up and if they don't we are screwed anyway so buy buy buy,"
>Cheap foreign labor is gone.
Doubt it. Plenty of cheap foreign labor to choose from China is not the only game in town.
>Inventory is gone
Well what did you expect to happen to inventory when people at home with stimmy checks have nothing to do?
What you’re seeing is a slow rebound or K shape recovery, globalization isn’t going anywhere.
My wife and I make 140k a year about. Pre Tax. Our Mortgage is $1700 so not terrible. We live pretty close to paycheck to paycheck and put away a combined 8-10% a month into 401k’s. My parents are retired and sitting good. Their home is paid off moms on Medicare. I should get a good windfall after they pass one day. Otherwise we’ll be poor and retiring with a few hundred K if we’re lucky. Sucks being middle class. I dont know how the poors do it. If they make too much they lose public aid so they are stuck.
> Well both accounts are Roth so does it really matter much?
This has nothing to do with it.
The reason that IRA contributions are often recommended ahead of non-matched 401(k) contributions is that an IRA is cheaper (no fees) and has more investment options. With a 401(k) you often have limited investment options (chosen by your employer) and possibly admin fees.
> My 401k is managed by someone and is put into high risk stuff.
I would question whether this is necessary. Assuming you are paying a management fee, you are probably wasting money on this service.
> Thing is I'm not great at picking the investments myself.
It's really not hard. You could put 100% into a Target Date Index Fund nearest to the date you plan to retire. Or if you want something slightly more custom, go with a Total World Stock Market Index Fund, a Total US Stock Market Index Fund, or an S&P 500 Index Fund. Any of these are excellent choices for set-it-and-forget-it long-term investing.
As far as I know, Any 401(k) match or non-matching contributions made to your account by an employer do not count toward your individual contribution limit. So, no, you would not lose the company match.
That is explicitly completely wrong. Read through their 10-K sometime, especially the MD&A and get familiar with how they handle their expenses differently from other companies.
Switching cc companies to lock in additional bal savings and passing it on to members through slim margins is exactly how they work
Thx mother Teresa. J/k anyway but he may have died or smthn
Still keep putting it in your 401(k), but instead of investing it in funds you could select a money market.
I even went so far to sell my S&P500 and other funds putting it in a cash fund. I'm not riding the wave down, collecting monthly interest, and getting back in once the federal interest rate increases start to drop.
Keep putting money into your 401(k). Your employer’s match is basically free money helping you buy stocks that are on sale. Unless you have some short term goal like buying a house that you need the CD for you should just keep contributing to the 401(k) and stop looking at the current performance of the market. Your future self will thank you
There are a lot of other issues besides the idea. For one thing few investors will want to fund a dysfunctional relationship with money. Many founder teams have been floored when an investor asks, "Why should I invest my money when you risk none of yours?"
Next. You can't even begin to find information about investors. Just where besides your own immediate experience would you find out how to run this business? There's an information age, most have been institutionalized an embarrassing number of years K-12. That you are immune is no basis for funding.
Let me guess. You already know everything. Well -- everything except for what paragraphs do.
Can you get money for an idea. I have posted links to the rare examples, so the answer is yes. However your post suggests nothing of the kind. As with most posted ideas, you read only to wonder where the idea part was.
...Open for Business is not an idea. You need some specific value proposition or dare one hope, a Unique Selling Preposition. You're not there yet -- heck, your post doesn't qualify as a shower thought.
...Do you even have any idea what you will spend how munch money on? What is rent on office space in you area? No idea. Wages? No idea. Equipment? No idea.
...Business process. Okay here is your chance to explain all your work experience. And ... ? It's called a business plan in case the terminology escapes you.
Few will be amused by the 'opportunity' to fund some dreamer's napkin scribble. As for an inability to learn what investor's want or how to find one stinking article on the internet, enough said.
You already maximized I bond contributions, Roth IRA and 401(k)?
Hi. You just mentioned Ubik by Philip K Dick.
I've found an audiobook of that novel on YouTube. You can listen to it here:
I'm a bot that searches YouTube for science fiction and fantasy audiobooks.
Philip k dick also imagined this hell in Ubik.
First time adding money to a 401(k) and I’m already down 50% 🙂🙂 I’m fine….
I actually just found it in his book I think:
He differentiates between earnings calculated by S&P , operating earnings calculated by S&P and earnings calculated by Thomson Reuters. I guess since he's wrote this book he's switched to another company than Reuters. Disappointing because I'd probably have to pay a ton for the same data:
LOTS OF S&P 500 EARNINGS MEASURES
Above, I examined the relationship between forward earnings and the actual operating earnings of the S&P 500, both calculated by Thomson Reuters. The former tends to be a good leading indicator of the latter when the economy is growing but not when it is falling into a recession. Other measures of profits are worth analyzing to provide useful insights for predicting future profits. They aren’t forward-looking or available weekly; only forward earnings has those advantages. The rest represent actual quarterly results compiled by either private-sector data vendors or the government’s accountants. What many of these series offer are more historical data than are available for forward earnings, which starts in September 1978. So they can provide a longer-term perspective on the trends and cyclical performance of profits.
Let’s start our survey of these other measures with the quarterly data available for the S&P 500:
Reported (GAAP) earnings (since 1935). Standard & Poor’s has compiled S&P 500 quarterly earnings on a reported basis since the first quarter of 1935 (Fig. 11). As noted earlier in this chapter, the SEC requires that publicly traded companies include financial statements in their (unaudited) 10-Q and (audited) 10-K forms, showing figures based on generally accepted accounting principles (GAAP).
Operating earnings (Standard & Poor’s data since 1988). Since the first quarter of 1988, Standard & Poor’s has provided an operating version of the quarterly earnings of the S&P 500 companies (Fig. 12). It excludes one-time items that are included in the fully loaded reported series. Both are available on a per-share as well as an aggregate basis. The operating measure almost always exceeds the reported one because one-time write-offs and charges tend to occur more frequently than one-time income windfalls. Standard & Poor’s determines the one-time items that are included and excluded from the firm’s reported data series for the S&P 500 “operating” earnings series.
Operating earnings (Thomson Reuters data since 1993). To complicate matters, other widely respected data vendors calculate S&P 500 operating earnings differently than does Standard & Poor’s. The most
widely used numbers are compiled by Bloomberg, FactSet, Thomson Reuters, and Zacks. I prefer the longer data history of the Thomson Reuters version, which tends to be the same as the Standard & Poor’s series but has diverged at times (Fig. 13). Both the Thomson Reuters and Standard & Poor’s series’ data are on a pro forma basis, which means that they reflect the composition of the S&P 500’s portfolio as it was in each period. So the value of today’s index is being compared to the values of past versions of the index, when its composition of companies was different, before some companies were dropped from the index and others added to it. Mergers and acquisitions also can change the composition of the index.
The big difference between the Standard & Poor’s and Thomson Reuters measures of operating earnings per share is that the former determines which one-time items to exclude and include in reported earnings, while the latter is based on “majority rule.” In other words, it is based on the industry analysts’ consensus on operating earnings, which tends to be the same as the operating numbers reported by the companies in their quarterly filings.
Obviously, company managements prefer to determine their own operating earnings and are more favorably disposed toward industry analysts who follow their guidance. The SEC has warned some companies about hyping up their operating results by excluding bad stuff that shouldn’t be excluded. Importantly, industry analysts and investors who are after the unvarnished truth can always analyze the GAAP results, which must be reported in the quarterly filings and reconciled back to any non-GAAP measures presented. Not surprisingly, the net write-offs for bad stuff tend to be greater for the Thomson Reuters’ than for the Standard & Poor’s measure of operating earnings (Fig. 14).
Some strategists disparage the concept of operating earnings as “earnings before bad stuff,” which is sometimes shortened to “EBBS.” They insist that reported earnings is the only correct measure. I prefer following both measures, since reported earnings tend to diverge most from operating earnings during downturns and bounce back when operations are back to normal. Nevertheless, even during normal times, the Standard & Poor’s measure of operating earnings tends to exceed reported earnings. One major reason is that Standard & Poor’s doesn’t concur with the relatively
widespread practice, especially among technology companies, of excluding stock option compensation as an expense when calculating operating earnings.
I believe that the stock market reflects the Thomson Reuters measure of operating earnings since most industry analysts follow the guidance provided by company managements for what is considered to be one-time bad stuff. That’s why all of our work on the S&P 500’s Earnings Squiggles, forward earnings, and the Blue Angels is based on Thomson Reuters data.
What’s the benefit of doing a 401(k) over a regular taxable brokerage acct?
I was just gonna put all my money into VTI through my brokerage,
I'm gonna pay out vacation and stat bank and OT bank after my 2% raise next month then average down more on my natural gas decay short etf. Should be a 10k check before taxes.... So 5 k lol. Thanks Canada liberals.
Leaving this here as there has been a lot of advice around contributing to an IRA.
Well, depending on how much they make and how they file - being covered by the 401(k) for husband and/or 403(b) for the wife could limit, or even eliminate, the tax deduction for the IRA
Do not get a 40 k car and move, if anything live the same way you’ve been living. This is how u go broke
Yeah a whole lotta K lower. At 12-5k I’ll start being interested. Remember, fake internet money follows the market.
Obviously not now, 20k for corn is not good during a bear market but a few k lower then it becomes actually good for long term
I was once at a 15yrs low point. I didn't panic, i just bought more.
Its an Indian stock ( J & K Bank )
So I’m starting with something I can do myself. There’s a ride along where they did a case study. He basically acts as a 3rd party and contracts out the work. It cost 2k to start and there’s a step by step tutorial.
My plan is I start my social media marketing and SEO business. I get a few k in profit from a skill I have. Then I start one of the service based businesses. Except he doesn’t have a marketing company so I’ll have that advantage.
Then I just do his plan at scale.
Over 100 Redditors have followed his blue print. That’s what I want to do except I’m dedicating my life to do it at scale.
And he reaps most of his profit. That’s his choice. My choice is to reduce my cut to very small. Smaller then most owners do so I can pay my people more.
If I pay my people more I can afford the best people. I can do the best work. I will have the best value. And I will make content out of them doing their work to generate income my competitors don’t.
The pensions are your saving grace. Wouldn’t depend much on the home equity because the last thing you’ll want in retirement is to create a larger debt burden than your current mortgage. Unless you’re planning on selling, forget about the land because it’ll be next to impossible to realize any cash from it unless you can contract for the lumber on it or charge people to hunt on it. Would be nice if mortgage was paid off but daughter will be through college and hopefully working so she could fund her own grad school. You don’t mention your current annual expenses but with the annual $125k combined pension and $300+k 401k(definitely do not withdraw from it to help pay for daughter’s grad school) I think you’ll be fine. Just my non-professional opinion though.
401(k) plans are very precise, legal documents filed with the federal government. If it says “half of the contribution up to 3% each period.” that’s literally what you get.
Any well written plan has a provision where they fix that issue with an extra payment in January. Basically, as long as you contributed at least the amount to get the maximum match, they will make sure you get the maximum match.
I don’t get why K-1s get people wound up…. I file that shot with turbo tax easyyyyyy
Remarkably we have a Toyota RAV4 now. It has over 100 K miles and it's gotten a bit dinged up. We want to get a hybrid
> Is there any real reason to do a backdoor Roth IRA when my company offers a mega backdoor Roth 401(k)?
An extra $6k that you otherwise couldn't put in to a Roth account. Other than the similar names, the two processes are not related to each other.
Yes, definitely time the market, there is plenty of data showing that this is the winning strategy.
[By the way, massive flows of funds are DCAing via 401(k) contributions, so I wouldn't call DCAing going 'against the grain.']
You may find these links helpful:
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Sell them to me. I kid but not really.
You invested in RE as an alternate or diversification to stocks, so why treat them like stocks?
Max out your 401(k)/IRA, store cash in a HYSA to keep buying RE.
In short, be greedy when others are fearful…because winter is coming.
You cannot invest in your 2020, 2021, and are about to lose the ability to invest into your 2022 401(k), HSA, and roth IRA accounts. So unless you have infinite money then the opportunity cost for investing in ibonds 70k was giving up some money that would have been better off in one of those accounts instead. Long term, you are going to be losing tax savings.
So you gained 10% interest today but costed yourself 20-30-40% in taxes later.
Opportunity costs. That's how.
Are you her daddy? Spend a couple K on the ring and let her family help you with the wedding. Or take your $20k and go get married in Mexico and use the remaining $18k for a downpayment on a house.
Yes, and the loan money comes from your 401(k) balance. You will have to sell some of the investments if you do not have enough cash in your 401(k).
K. Got it. People who think that a president controls the global economy/gas prices are fucking hysterical.
Go back to trump rally and get a hug, you fucking loser.
What kinda puts how many to get that much I got the 5 k but don’t go that heavy on trades
I know, I bought 10 K for me and 10k for the wife
Adding on to what everyone is saying. Keep the house. But you should have to refinance to get him off the loan. I have not done this but I can't imagine you not being able to pull 10 or 15 k of equity out of the house so you have a small cash reserve for emergencies.
I've never read a k-10, but I've pet plenty of k9s.
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Between 401(k) and brokerage (if I am trying to avoid taxes) don't sacrifice your retirement savings for your children's 529. They have significantly more years for compounding interest than you do.
I'd max out any 401K contributions for the tax deduction first, if you have access to a 401(K). Max is $20,500. I would put that in a stock index fund (stocks are low right now, a good time to buy). Then I'd put any excess toward the mortgage.
K, thanks, little buddy, I really appreciate it. I'll make sure to check into it. Now scurry along and go outside to play.
This is a surprisingly controversial question. The law specifically states that purchases in IRAs can trigger wash sales, but doesn't specifically state that 401(k) accounts can (or can't). Most people generally interpret the rule to mean that yes, 401(k) purchases can cause wash sales, but occasionally some people will argue on the forum that they don't.