Reply
Page 1 of 2 1 2 LastLast
Results 1 to 30 of 44
  1. #1
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline

    investors and stock brokers

    say you are putting the max into a roth, $6500 for me, instead of leaving a chunk in the bank basically earning nothing , what would you put it in?

    i use vanguard for roth so, to make it easy , something they offer


    is there something you could put it in and be able to write off the contributions /gains?

    with a roth you can't
    Reply With Quote

  2. #2
    Ph.D Broscience DoctorKazama's Avatar
    Join Date: Jul 2010
    Location: United States
    Posts: 14,463
    Rep Power: 39236
    DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000) DoctorKazama has much to be proud of. One of the best! (+20000)
    DoctorKazama is offline
    g4p
    Reply With Quote

  3. #3
    Don't Diss the Cats BrianK.'s Avatar
    Join Date: Nov 2008
    Posts: 1,124
    Rep Power: 7998
    BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000) BrianK. is a name known to all. (+5000)
    BrianK. is offline
    Look up a traditional IRA or a health savings account (HSA) and see if you qualify. They both have limitations.

    If you own a business, then SIMPLE, i401k or SEP.

    Everything I mentioned above is available on Vanguard.

    Edit: you can’t contribute $6500 to both a traditional AND roth. Has to be a total of $6500. Not sure if you mean after you max your Roth or wanting to contribute elsewhere instead of Roth.
    Last edited by BrianK.; 08-11-2018 at 12:59 PM.
    Reply With Quote

  4. #4
    Duke of New York ANumber1's Avatar
    Join Date: Jul 2013
    Location: New York, United States
    Posts: 14,722
    Rep Power: 105948
    ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000)
    ANumber1 is online now
    If you're in a higher tax bracket and are out of tax-advantaged space, consider high-yield munis as a substitute for leaving it in savings. They are bonds, but issued by state and local governments for regional projects instead of the Treasury. Unlike other bonds, the distributions are not subject to federal income tax so it's either tax-free reinvestment or tax-free beer money for you, and tax-free beer tastes pretty good.

    Vanguard offers VWAHX starting with a $3,000 minimum, but VanEck does an ETF called HYD that has historically performed better. A national high-yield bond fund is pretty diverse geographically so you won't be overly exposed if the City of Chicago (or whatever) tanks.

    If you're in a high-tax state, you can also specifically buy municipal bonds in your own state and so (in most states) won't have to pay state income tax on the yield, either. Blackrock runs some good state-specific funds called Municipal Opportunities. However, you're probably trading off a quarter to a third of a percentage point of yield (maybe 6-10% tax rate on 3-4% yield distributions) for a higher default risk. Doesn't seem worth it to me since the Venn diagram of high-tax states and states heading for a default is almost just one big circle. Decision only you can make for yourself depending on how you feel about your tax situation.
    Last edited by ANumber1; 08-11-2018 at 01:12 PM.
    "I will respond by saying that it is you who is the dumbass." - Wincel, 6/20/19
    Reply With Quote

  5. #5
    Registered User sirrancelot's Avatar
    Join Date: Jan 2009
    Posts: 1,400
    Rep Power: 1728
    sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000)
    sirrancelot is offline
    Gains are tax free in Roth. You pay taxes on the amount you put in. That's the beauty. Tax free growth. Just plan to leave it at least 5 years and don't withdraw early or you'll pay penalties.
    ***Misc Get Ripped By Halloween Crew***

    PSN- [dogs]rancho33craig
    Reply With Quote

  6. #6
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by sirrancelot View Post
    Gains are tax free in Roth. You pay taxes on the amount you put in. That's the beauty. Tax free growth. Just plan to leave it at least 5 years and don't withdraw early or you'll pay penalties.
    i've had one before my life fell apart , the money put in is taxed all ready when you earn it ................??


    10 yrs at least
    Reply With Quote

  7. #7
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by ANumber1 View Post
    If you're in a higher tax bracket and are out of tax-advantaged space, consider high-yield munis as a substitute for leaving it in savings. They are bonds, but issued by state and local governments for regional projects instead of the Treasury. Unlike other bonds, the distributions are not subject to federal income tax so it's either tax-free reinvestment or tax-free beer money for you, and tax-free beer tastes pretty good.

    Vanguard offers VWAHX starting with a $3,000 minimum, but VanEck does an ETF called HYD that has historically performed better. A national high-yield bond fund is pretty diverse geographically so you won't be overly exposed if the City of Chicago (or whatever) tanks.

    If you're in a high-tax state, you can also specifically buy municipal bonds in your own state and so (in most states) won't have to pay state income tax on the yield, either. Blackrock runs some good state-specific funds called Municipal Opportunities. However, you're probably trading off a quarter to a third of a percentage point of yield (maybe 6-10% tax rate on 3-4% yield distributions) for a higher default risk. Doesn't seem worth it to me since the Venn diagram of high-tax states and states heading for a default is almost just one big circle. Decision only you can make for yourself depending on how you feel about your tax situation.

    you're making my head spin lol, i'm in ny .....65-70k ish
    Reply With Quote

  8. #8
    2012 Transformation Fit1NYC's Avatar
    Join Date: Apr 2010
    Posts: 18,903
    Rep Power: 50851
    Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000) Fit1NYC has much to be proud of. One of the best! (+20000)
    Fit1NYC is offline
    I would put that in a large index fund for a while then when you have a good base and researched more you can go for something woth some risk in te portfolio for gains
    Any posts made are purely fictional in nature and by no means is anything I say to be taken seriously. Any and all pictures I post are pictures widely available on the internet and any discussions I am involved in are purely hypothetical or are commentary in nature and should not constitute advice or be considered advice
    Reply With Quote

  9. #9
    Duke of New York ANumber1's Avatar
    Join Date: Jul 2013
    Location: New York, United States
    Posts: 14,722
    Rep Power: 105948
    ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000)
    ANumber1 is online now
    Originally Posted by wasp9166 View Post
    i've had one before my life fell apart , the money put in is taxed all ready when you earn it ................??

    10 yrs at least
    Chit, I'm sorry, I misread your post. I thought you'd maxed out the Roth and were looking for what to do with the savings.

    Honestly, the Target Retirement Funds are not bad. One-stop shopping. The 2030 fund, VTHRX, is pretty balanced and has been churning out 7-8%. If you want to be more aggressive, mid-cap funds (IVOO/VMFVX) are usually outperformers, by I think there's some bad news coming for U.S. stocks in the next year or two and wouldn't want to go equity-heavy just yet.
    "I will respond by saying that it is you who is the dumbass." - Wincel, 6/20/19
    Reply With Quote

  10. #10
    Registered User CanuckGame's Avatar
    Join Date: Dec 2011
    Age: 30
    Posts: 5,169
    Rep Power: 40991
    CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000) CanuckGame has much to be proud of. One of the best! (+20000)
    CanuckGame is online now
    Bitcoin brah. Dont miss out man. Were all picking out what color lambo were getting when bitcoin moons by the end of December.


    Notsrs
    Reply With Quote

  11. #11
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by ANumber1 View Post
    Chit, I'm sorry, I misread your post. I thought you'd maxed out the Roth and were looking for what to do with the savings.

    Honestly, the Target Retirement Funds are not bad. One-stop shopping. The 2030 fund, VTHRX, is pretty balanced and has been churning out 7-8%.
    i am, i maxed out the roth and feel anything over 5k in the bank as an emergency is rotting away

    i'll search the 2030 and vthrx on van
    Reply With Quote

  12. #12
    Registered User sirrancelot's Avatar
    Join Date: Jan 2009
    Posts: 1,400
    Rep Power: 1728
    sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000)
    sirrancelot is offline
    Originally Posted by wasp9166 View Post
    i've had one before my life fell apart , the money put in is taxed all ready when you earn it ................??


    10 yrs at least
    A traditional 401(k) is taken before taxes on your paycheck.
    If you place $ in a Roth, they are from after tax $.
    They are not deductible (you've already paid taxes on this amount before you ever saw the $)
    Since you paid taxes up front, no taxes are paid on your withdrawal from Roth accounts in retirement (including all growth).

    If you place $ in a traditional retirement account (401k, 403b, etc...)you will defer payment of taxes, but will ultimately pay taxes on both the base (what you put in) as well as growth.
    ***Misc Get Ripped By Halloween Crew***

    PSN- [dogs]rancho33craig
    Reply With Quote

  13. #13
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by sirrancelot View Post
    A traditional 401(k) is taken before taxes on your paycheck.
    If you place $ in a Roth, they are from after tax $.
    They are not deductible (you've already paid taxes on this amount before you ever saw the $)
    Since you paid taxes up front, no taxes are paid on your withdrawal from Roth accounts in retirement (including all growth).
    correct.........................i have a pension and two annuities on top of this, the roth is strictly for the z06 lol


    i'm 52, i have to work till 62 to avoid getting penalized by union , then do something part time for 5 years as i wana wait till 67 for ss to not get penalized by them, it never ends ..................maybe sell hot dogs lol


    too much rep today, i'll get you guys tomm
    Reply With Quote

  14. #14
    Registered User sirrancelot's Avatar
    Join Date: Jan 2009
    Posts: 1,400
    Rep Power: 1728
    sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000)
    sirrancelot is offline
    Originally Posted by wasp9166 View Post
    i am, i maxed out the roth and feel anything over 5k in the bank as an emergency is rotting away

    i'll search the 2030 and vthrx on van
    A general rule of thumb is to keep about 3 months of expenses (all necessary bills, food budget, gas, etc...) In a savings or money market account. This isn't making any money but it's easily accessible in case of an emergency orunexpected loss if work.

    You can invest $5,500 in Roth. Max for 401k is $18,500 I believe. Beyond that, you can do stocks, mutual funds (lots of stocks bought together to diversify and reduce risk), real estate, and whatever the hell else you want to invest in. The limit is only for retirement accounts because they have tax benefits and big brother wants his money.
    ***Misc Get Ripped By Halloween Crew***

    PSN- [dogs]rancho33craig
    Reply With Quote

  15. #15
    Duke of New York ANumber1's Avatar
    Join Date: Jul 2013
    Location: New York, United States
    Posts: 14,722
    Rep Power: 105948
    ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000)
    ANumber1 is online now
    Originally Posted by wasp9166 View Post
    i am, i maxed out the roth and feel anything over 5k in the bank as an emergency is rotting away

    i'll search the 2030 and vthrx on van
    Alright, if that's the case I'd definitely look at municipal bonds and/or a good equity index fund that has a history of not throwing off taxable distributions. Vanguard has a couple of tax-managed funds that are designed for exactly this purpose, but a lot of other funds are just as effective.

    In general, don't buy corporate bonds, Treasury bonds, or REITs - or funds heavily holding them - in a regular taxable account unless you are in a low tax bracket. You'll end up paying full personal income tax on the distributions because they aren't treated as capital gains. Most other stocks will be taxed at the capital gains rate, 15%.

    Arranging your money between different types of tax situations to minimize your tax exposure is a big step toward winning big in the long-run. As an example, a lot of people put buy-and-hold stocks in conventional retirement accounts and end up paying 24%+ on what could have been 15% capital gains, etc. You want the stuff that spins off the most growth in Roth, beat that 0% tax on earnings like a rented mule.
    Last edited by ANumber1; 08-11-2018 at 01:50 PM.
    "I will respond by saying that it is you who is the dumbass." - Wincel, 6/20/19
    Reply With Quote

  16. #16
    Registered User sirrancelot's Avatar
    Join Date: Jan 2009
    Posts: 1,400
    Rep Power: 1728
    sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000)
    sirrancelot is offline
    Originally Posted by wasp9166 View Post
    correct.........................i have a pension and two annuities on top of this, the roth is strictly for the z06 lol


    i'm 52, i have to work till 62 to avoid getting penalized by union , then do something part time for 5 years as i wana wait till 67 for ss to not get penalized by them, it never ends ..................maybe sell hot dogs lol


    too much rep today, i'll get you guys tomm
    Be cautious with Dem der annuities. Many have chit returns and are costly with fees. A lot of "financial guys" will recommend then because they make good commissions for selling them to you. I don't know if this is the case with yours but I'd just make sure you are managing your own money under guidance of a pro, rather than allowing them to manage it all themselves... Again, this may not be the case at all but it's fairly common.


    You could also throw any $ at debt if you have any. Pay off your house. Retirement with no payments will be badass if your income is comparable to what it's been in working life.
    ***Misc Get Ripped By Halloween Crew***

    PSN- [dogs]rancho33craig
    Reply With Quote

  17. #17
    Registered User Thr0waway's Avatar
    Join Date: May 2017
    Age: 27
    Posts: 219
    Rep Power: 400
    Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250) Thr0waway has a spectacular aura about. (+250)
    Thr0waway is offline
    Originally Posted by wasp9166 View Post
    i've had one before my life fell apart , the money put in is taxed all ready when you earn it ................??


    10 yrs at least
    For the Roth, you are funding your account with money where taxes and deductions have been taken out of your paycheck (your net pay)

    In the Traditional, you contribute money before any taxes and deductions are taken out (gross pay)

    In the Traditional, you will pay taxes when you withdraw the money. In the Roth, you will be able to withdraw your original contributions and earnings tax free.
    Reply With Quote

  18. #18
    Duke of New York ANumber1's Avatar
    Join Date: Jul 2013
    Location: New York, United States
    Posts: 14,722
    Rep Power: 105948
    ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000)
    ANumber1 is online now
    Originally Posted by wasp9166 View Post
    you're making my head spin lol, i'm in ny .....65-70k ish
    Yeah, let me try this again, because I realize that's a ton of information. In general, with your tax bracket, you would pay these taxes on whatever you earn:

    - Treasury and corporate bonds (22% + NYS).
    - REITS and some international stocks (22% + NYS).
    - Most U.S. stocks. (15% + NYS).
    - Municipal bonds. (0%, and 0% in whatever state issues them.)

    You want the stuff that spins off a lot of high-tax income in Roth so that it never gets taxed at all. You just take that money and stack it up every time they pay a dividend/distribution, without taking taxes out each time, and the tax-free money turns into even more tax-free money, right? You've got that part down from what you said before.

    So you've got this other money that's paying you somewhere between 0.01% and 1.80% sitting in the bank, depending on who you're saving with, right? You're paying full state and federal income tax on every penny of interest. You want to do something better with this money.

    Buying a stock index fund like IVOO or VXF that should spin off a lot of money at the reduced federal capital gains rate is a good idea. However, to protect your money, some part of your portfolio should be in bonds for diversification.

    So municipal bonds are one kind of bond. Local governments are taking out loans to cover long-term expenses like building hospitals, repairing flood damage, fighting wildfires, etc. The federal government stays out of the way and will not tax the interest you receive, so a municipal bond should only go in your taxable account, not Roth or Traditional. You're turning 22% federal income tax on your savings interest into 0% on your municipal bond yield.

    One way to go do this is to buy a national municipal bond fund that picks up good munis all over the country. Vanguard does this with VTEBX (basically an index fund of all high-quality municipal bonds, but does not pay much) and VWAHX (a high-yield fund, it buys up lower-quality bonds from borrowers that pay higher interest because their credit sucks, like the Chicago Board of Education). I hold a big chunk of VWAHX in my taxable account as part of my long-term savings.

    The other option is to buy New York-issued municipal bonds, because as a New York taxpayer, you already earned a good citizenship merit badge and let them use your money to expand an airport - or whatever. NY will not tax NY taxpayers on the interest NY pays them on NY bonds. So you save that money, too. Vanguard issues a very respectable NY muni bond fund as VNYTX. If New York tanks and starts defaulting on their debts, you're boned, but NY is actually a lot more creditworthy than NJ/CA/IL.
    Last edited by ANumber1; 08-11-2018 at 02:32 PM.
    "I will respond by saying that it is you who is the dumbass." - Wincel, 6/20/19
    Reply With Quote

  19. #19
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by sirrancelot View Post
    A general rule of thumb is to keep about 3 months of expenses (all necessary bills, food budget, gas, etc...) In a savings or money market account. This isn't making any money but it's easily accessible in case of an emergency orunexpected loss if work.

    You can invest $5,500 in Roth. Max for 401k is $18,500 I believe. Beyond that, you can do stocks, mutual funds (lots of stocks bought together to diversify and reduce risk), real estate, and whatever the hell else you want to invest in. The limit is only for retirement accounts because they have tax benefits and big brother wants his money.
    6500 is roth max for me ,increases with age
    Reply With Quote

  20. #20
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by sirrancelot View Post
    Be cautious with Dem der annuities. Many have chit returns and are costly with fees. A lot of "financial guys" will recommend then because they make good commissions for selling them to you. I don't know if this is the case with yours but I'd just make sure you are managing your own money under guidance of a pro, rather than allowing them to manage it all themselves... Again, this may not be the case at all but it's fairly common.


    You could also throw any $ at debt if you have any. Pay off your house. Retirement with no payments will be badass if your income is comparable to what it's been in working life.
    annuities are out of my control, thru union contributed to by employer, trust me, i see the fees ,i don't look often
    Reply With Quote

  21. #21
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by Thr0waway View Post
    For the Roth, you are funding your account with money where taxes and deductions have been taken out of your paycheck (your net pay)

    In the Traditional, you contribute money before any taxes and deductions are taken out (gross pay)

    In the Traditional, you will pay taxes when you withdraw the money. In the Roth, you will be able to withdraw your original contributions and earnings tax free.
    wouldn't you pay more tax with a trad that way? if i have a roth seems stupid
    Reply With Quote

  22. #22
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by ANumber1 View Post
    Yeah, let me try this again, because I realize that's a ton of information. In general, with your tax bracket, you would pay these taxes on whatever you earn:

    - Treasury and corporate bonds (22% + NYS).
    - REITS and some international stocks (22% + NYS).
    - Most U.S. stocks. (15% + NYS).
    - Municipal bonds. (0%, and 0% in whatever state issues them.)

    You want the stuff that spins off a lot of high-tax income in Roth so that it never gets taxed at all. You just take that money and stack it up every time they pay a dividend/distribution, without taking taxes out each time, and the tax-free money turns into even more tax-free money, right? You've got that part down from what you said before.

    So you've got this other money that's paying you 0.01% to 1.80% sitting in the bank, depending on who you're saving with, right? You're paying full income tax on that interest, 22% plus New York and you want to do something useful with it.

    Buying a stock index fund like IVOO or VXF that should spin off a lot of money at 15% capital gains tax is a good idea. However, to protect your money, some part of your portfolio should be in bonds for diversification.

    Municipal bonds are one kind of bond. Local governments basically issue these bonds as loans to do things like build hospitals, repair flood damage, buy fire trucks, etc. The federal government stays out of the state's business and will not tax the interest you receive on these loans, so it should only go in your taxable account, not Roth or Traditional. You will earn the interest and you don't have to pay the IRS for it.

    One option is to buy a national munipal bond fund that picks up good munis all over the country. Vanguard does this with VTEBX (basically an index fund of all high-quality municipal bonds) and VWAHX (a high-yield fund, it buys up lower-quality bonds from borrowers that pay higher interest because their credit isn't very good, like the Chicago Board of Education). I hold a big chunk of VWAHX in my taxable account.

    The other option is to buy New York-issued municipal bonds, because as a New York taxpayer, you already earned a good citizenship merit badge and let them use your money to expand an airport - or whatever. NY will not tax NY taxpayers on the interest NY pays them on NY bonds. So you save that money, too. Vanguard issues a very respectable NY muni bond fund as VNYTX.
    so , correct me if i'm wrong , i could keep the roth all stock and open a sep account for just bond funds
    Reply With Quote

  23. #23
    Buy high, sell higher. HMFIC_BROWSIN's Avatar
    Join Date: Feb 2009
    Location: Arizona, United States
    Posts: 38,403
    Rep Power: 95340
    HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000) HMFIC_BROWSIN has a brilliant future. Third best rank! (+40000)
    HMFIC_BROWSIN is offline
    Traditional ira crew. Max it. Hsa crew. Max it. Sep ira. Max it.
    MTB = leg day
    Reply With Quote

  24. #24
    Zen MEDITATE's Avatar
    Join Date: Oct 2007
    Posts: 18,742
    Rep Power: 29557
    MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000) MEDITATE has much to be proud of. One of the best! (+20000)
    MEDITATE is offline
    Originally Posted by wasp9166 View Post
    say you are putting the max into a roth, $6500 for me, instead of leaving a chunk in the bank basically earning nothing , what would you put it in?

    i use vanguard for roth so, to make it easy , something they offer


    is there something you could put it in and be able to write off the contributions /gains?

    with a roth you can't
    invest into cisco shares...
    May all my children be boys ...Amen 🙏🏾🙏🏾🙏🏾
    Reply With Quote

  25. #25
    1 Mile 2 Mile 3 Mile FOUR MarinoMike's Avatar
    Join Date: Aug 2012
    Location: Denver, Colorado, United States
    Age: 28
    Posts: 8,167
    Rep Power: 63022
    MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000) MarinoMike has much to be proud of. One of the best! (+20000)
    MarinoMike is offline
    Tesla is probably a good short right now until the SEC is done teaching him a lesson about corporate governance.
    6'5 220
    i can bench press 135 pounds on a good day
    Reply With Quote

  26. #26
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by sirrancelot View Post
    Be cautious with Dem der annuities. Many have chit returns and are costly with fees. A lot of "financial guys" will recommend then because they make good commissions for selling them to you. I don't know if this is the case with yours but I'd just make sure you are managing your own money under guidance of a pro, rather than allowing them to manage it all themselves... Again, this may not be the case at all but it's fairly common.


    You could also throw any $ at debt if you have any. Pay off your house. Retirement with no payments will be badass if your income is comparable to what it's been in working life.
    walked away from house in '10 when 18 yr rel fell apart , now all i do is save and invest , houses aren't the investment they used to be

    i can watch my money and move it ,not sink it into a house and hope the fools on wall st don't ruin it again, f that


    no wife, no mortgage , no kids , no gf


    preparing for retirement , when that's done in 10 yrs, , maybe women won't be the ruthless sloots they are toDAY

    If they are , that's fine, i'll spend my time roughing it in yellowstone , i wana die in the woods , not surrounded by people and machines milking me dry on what i have left, i hate people honestly
    Reply With Quote

  27. #27
    Duke of New York ANumber1's Avatar
    Join Date: Jul 2013
    Location: New York, United States
    Posts: 14,722
    Rep Power: 105948
    ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000)
    ANumber1 is online now
    Originally Posted by wasp9166 View Post
    so , correct me if i'm wrong , i could keep the roth all stock and open a sep account for just bond funds
    For municipal bonds, yes, you could open a regular taxable brokerage account and use it for munis. You wouldn't want to put them anywhere else since it'd be a waste of good tax benefits.

    Corporate bonds (same concept but you're loaning money to corporations) and Treasury bonds (same concept but you're loaning money to the federal government) are taxed at the full income tax rate, just like bank interest. The municipal bond situation is a special favor the government does to encourage people to invest in their own community.

    Those other bonds would usually be best off in a Traditional 401k/IRA account first, because you can put higher-yield investments in Roth. You'll still pay full income tax on the bond yields in retirement but will maximize the growth because you don't have to take taxes out every year when they pay you interest, slowing down your gains. It just gets taxed once, in retirement. Roth is fine if you need a place to put bonds and don't have any Traditional space, though.
    "I will respond by saying that it is you who is the dumbass." - Wincel, 6/20/19
    Reply With Quote

  28. #28
    Registered User sirrancelot's Avatar
    Join Date: Jan 2009
    Posts: 1,400
    Rep Power: 1728
    sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000) sirrancelot is just really nice. (+1000)
    sirrancelot is offline
    Originally Posted by wasp9166 View Post
    wouldn't you pay more tax with a trad that way? if i have a roth seems stupid
    You would pay more with the traditional. That's the great thing about Roth. Unfortunately, it has the $5,500 limit.
    You'll pay taxes on gains in any stock, mutual fund, real estate, etc...
    ***Misc Get Ripped By Halloween Crew***

    PSN- [dogs]rancho33craig
    Reply With Quote

  29. #29
    straight out da bronx wasp9166's Avatar
    Join Date: Nov 2008
    Posts: 21,745
    Rep Power: 171785
    wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000) wasp9166 has a reputation beyond repute. Second best rank possible! (+100000)
    wasp9166 is offline
    Originally Posted by ANumber1 View Post
    For municipal bonds, yes, you could open a regular taxable brokerage account and use it for munis. You wouldn't want to put them anywhere else since it'd be a waste of good tax benefits.

    Corporate bonds (same concept but you're loaning money to a corporations) and Treasury bonds (same concept but you're loaning money to the federal government) are taxed at the full income tax rate, just like bank interest. The municipal bond situation is a special favor the government does to encourage people to invest in their own community.

    Those other bonds would usually be best off in a Traditional 401k/IRA account first, because you can put higher-yield investments in Roth. You'll still pay full income tax on the bond yields in retirement but will maximize the growth because you don't have to take taxes out every year when they pay you interest, slowing down your gains. It just gets taxed once, in retirement. Roth is fine if you need a place to put bonds and don't have any Traditional space, though.
    so, muni is the way to go for tax purposes , maybe i missed it , they are not taxed like corp and treas?


    specifically, munis offered by ny state as i won't get taxed living here?

    sorry for being circular
    Reply With Quote

  30. #30
    Duke of New York ANumber1's Avatar
    Join Date: Jul 2013
    Location: New York, United States
    Posts: 14,722
    Rep Power: 105948
    ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000) ANumber1 has a reputation beyond repute. Second best rank possible! (+100000)
    ANumber1 is online now
    Originally Posted by wasp9166 View Post
    so, muni is the way to go for tax purposes , maybe i missed it , they are not taxed like corp and treas?

    specifically, munis offered by ny state as i won't get taxed living here?

    sorry for being circular
    You're getting it. Federal government will not tax the payments from any state's municipal bonds, and most states will not tax the payments on their own municipal bonds.

    If you move to a low-tax state or one with chitty credit, a national fund that buys in all fifty states might make sense for diversification. If/when Illinois goes bankrupt, at least 49 states will still owe you money.

    New York has good credit and high income taxes, so it's a sweet spot for this strategy. Very popular choice if you live in New York City, too, since New York City income tax can't touch them, either.

    It's not the most exciting stuff, but it's something safe to do with your savings that will help insulate you from the stock market going bad.
    Last edited by ANumber1; 08-11-2018 at 03:09 PM.
    "I will respond by saying that it is you who is the dumbass." - Wincel, 6/20/19
    Reply With Quote

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts