Poll

Do you contribute to retirement funds?

No
 Contribute <15% of take home pay
Contribute >15% of take home pay
Max out all retirement funds

Author Topic: Retirement Funds  (Read 7786 times)

Offline dovy2

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Re: Retirement Funds
« Reply #120 on: April 21, 2021, 07:42:18 AM »
OK, and where are you parking the Roth IRA money?
Any diversified indexed mutual fund... Of course there's a slight risk involved, but there's a track record.. and if one is worried about the whole market collapsing and not recovering.. well if that happens, he'd have lots of other things to worry about

Offline ExGingi

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Re: Retirement Funds
« Reply #121 on: April 21, 2021, 09:53:22 AM »
Any diversified indexed mutual fund... Of course there's a slight risk involved, but there's a track record.. and if one is worried about the whole market collapsing and not recovering.. well if that happens, he'd have lots of other things to worry about
-1

Past performance is not indicative of future results.

The question was about "parking" money, which would indicate that the intention is temporary in nature and would not tolerate having less than "parked" at the time person is ready to move it to the investment of choice (which at that time might or might not be an index mutual fund).

"The whole market collapsing and not recovering" is a meaningless statement without a timeframe. The Nasdaq collapsed in 2000 and took many years until it recovered. Any person putting $$ into the Nasdaq on 3/9/2000 and wanting to cash out any time before 2015 would have lost money.

And since the question was about parking money while it grows to critical mass, losing that amount (which wouldn't be that large, and even if it were large) wouldn't necessarily mean that said person would "have lots of other things to worry about". As a matter of fact it might even be a counter indication, as said person might be doing so well financially, that they didn't bother to pull out the small amount at risk.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline googwallet

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Re: Retirement Funds
« Reply #122 on: April 21, 2021, 10:03:46 AM »
(for which the cap on investment income was raised to $10,000 going forward).
Wow, this is big news. I was not aware of this change.

Offline est

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Re: Retirement Funds
« Reply #123 on: April 21, 2021, 10:17:52 AM »
-1

Past performance is not indicative of future results.

The question was about "parking" money, which would indicate that the intention is temporary in nature and would not tolerate having less than "parked" at the time person is ready to move it to the investment of choice (which at that time might or might not be an index mutual fund).

"The whole market collapsing and not recovering" is a meaningless statement without a timeframe. The Nasdaq collapsed in 2000 and took many years until it recovered. Any person putting $$ into the Nasdaq on 3/9/2000 and wanting to cash out any time before 2015 would have lost money.

And since the question was about parking money while it grows to critical mass, losing that amount (which wouldn't be that large, and even if it were large) wouldn't necessarily mean that said person would "have lots of other things to worry about". As a matter of fact it might even be a counter indication, as said person might be doing so well financially, that they didn't bother to pull out the small amount at risk.

So where would you recommend investing money? You seem to be against life insurance and mutual funds? Or do u just do a little in all?

Offline Shmulie

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Re: Retirement Funds
« Reply #124 on: April 21, 2021, 10:20:12 AM »
So where would you recommend investing money? You seem to be against life insurance and mutual funds? Or do u just do a little in all?
I thought he was a life insurance agent...

Offline whacked1

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Re: Retirement Funds
« Reply #125 on: April 21, 2021, 11:30:18 AM »
For almost all low-income earners (-most newly wed kollel yungerleit, rebbi's and morah's), maxing out a ROTH IRA for both spouses..
I just found out about this now.. if I would have done this 10 years ago.. I could have had double my earnings at 60...
Especially now with the stimulus and CTC's coming up...
Not sure what time frame you are referring to. But doubling your money at 60 seems like a very low bar to hit. Especially considering 10% compounding will double your initial in 7(ish)

Offline avromie7

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Re: Retirement Funds
« Reply #126 on: April 21, 2021, 11:52:07 AM »
Not sure what time frame you are referring to. But doubling your money at 60 seems like a very low bar to hit. Especially considering 10% compounding will double your initial in 7(ish)
You're misunderstanding, he's saying that if he would have done this 10 years ago, by the time he turns 60 he'd have double what he expects to have based on current trajectory.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline whacked1

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Re: Retirement Funds
« Reply #127 on: April 21, 2021, 12:00:13 PM »
You're misunderstanding, he's saying that if he would have done this 10 years ago, by the time he turns 60 he'd have double what he expects to have based on current trajectory.
ah. Yup. I didnt understand his post

Offline ShimshonK

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Re: Retirement Funds
« Reply #128 on: April 21, 2021, 02:22:35 PM »
+1
Roth IRA is the way to go for these situations. Earnings do not have any impact on programs or the EITC (for which the cap on investment income was raised to $10,000 going forward).
 Also it is not considered an asset for college financial aid while the earnings can be withdrawn for higher education use making a ROTH IRA ideal for teens who have earned income instead of a savings account for those Pell grant eligible.
An additional point you didn't mention -
One of the big benefits of a Roth IRA is that it allows you to pull out contributions tax/penalty free.

Offline dovy2

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Re: Retirement Funds
« Reply #129 on: April 21, 2021, 02:38:17 PM »
You're misunderstanding, he's saying that if he would have done this 10 years ago, by the time he turns 60 he'd have double what he expects to have based on current trajectory.
+1
I tried responding to his post, but couldn't find the words to explain my post. You did a wonderful job!

Offline Fish Tank

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Re: Retirement Funds
« Reply #130 on: April 21, 2021, 11:30:15 PM »
I just read through this thread.

I know the most important thing is to educate myself, but I don't have much time to read books or listen to podcasts, and the size of my investment isn't worth hiring a financial advisor.

So it would be great if someone here can educate me. I want to open a Roth IRA for 2020 (First time contributing). Which brokerage should I use? I will not be actively involved in managing the portfolio since I'm not knowledgeable enough, and I don't want to pay high fees.

Any recommendations are appreciated.

(I googled "top 10 roth IRA brokerages", but that's not called education. That's called reading a biased list based on affiliate commissions) 

Offline Shmulie

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Re: Retirement Funds
« Reply #131 on: April 21, 2021, 11:33:20 PM »
If I was you I would open one with either Vanguard, Schwab, or Fidelity (personally I like Schwab the best) and drop it into an S&p 500 ETF and then forget about it

SPY,VOO, IVV

Offline Der Deutsche Jude

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Re: Retirement Funds
« Reply #132 on: April 22, 2021, 12:05:04 AM »
I just read through this thread.

I know the most important thing is to educate myself, but I don't have much time to read books or listen to podcasts, and the size of my investment isn't worth hiring a financial advisor.

So it would be great if someone here can educate me. I want to open a Roth IRA for 2020 (First time contributing). Which brokerage should I use? I will not be actively involved in managing the portfolio since I'm not knowledgeable enough, and I don't want to pay high fees.

Any recommendations are appreciated.

(I googled "top 10 roth IRA brokerages", but that's not called education. That's called reading a biased list based on affiliate commissions)
I agree with previous poster about just buying passively managed ETF's. The three mentioned are great ones. For extra diversification, I'd also consider VTI (total US stock market), VT (US + international stocks), and a REIT ETF such as SCHH or VNQ. All of these are well diversified and have very low expense fees. I'd recommend you set it up that dividends get reinvested automatically, so you can truly forget about it.

There are several brokerages that have no trading fees. Schwab and Fidelity are great as previous poster mentions. I have both and I like Fidelity better due to having easier fractional share purchasing and for having no account closure fee, though Schwab mobile app is superior. People seem happy with TD as well. It really doesn't matter all that much which brokerage you use to be honest. 
« Last Edit: April 22, 2021, 12:08:32 AM by Der Deutsche Jude »

Offline ushdadude

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Re: Retirement Funds
« Reply #133 on: April 22, 2021, 10:30:38 AM »
If I was you I would open one with either Vanguard, Schwab, or Fidelity (personally I like Schwab the best) and drop it into an S&p 500 ETF and then forget about it

SPY,VOO, IVV
i would add
https://investor.vanguard.com/mutual-funds/target-retirement/#/
Trolls will always post stupid replies

Offline est

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Re: Retirement Funds
« Reply #134 on: April 22, 2021, 10:58:52 AM »
Iím in similar boat - I was advised to use M1 and invest in SPY QQQ and DIA.
any thoughts?