Originally Posted by Titty Meat:
Is a Roth account something worth setting up?
Yeah. So the way a Roth works is you put in after tax money. Meaning you. Don’t get to reduce your taxable income by the contribution amount. Also the gains aren’t taxed. That means that once you get to retirement everything that comes out is tax free. There are other benefits and it’s easier to get to if shot hits the fan but the tax breaks are real.
A 401K and Traditional IRA contributions are made pretax. 401K reduces your w-2 wages, IRA you get a tax deduction. Since the money in the fund hasn’t ever been taxed, the distributions are taxable income. Now that’s not all bad. In theory, in retirement, your taxable income should be low so it won’t be a super high tax rate either way. But in most cases Roth is better. Especially if you can afford the taxes.
If your employer offers a match on your 401K definitely contribute enough to hit all the match. DO THIS. IT IS FREE MONEY. After that, you should at the very least calculate your tax savings from the 401K and stick that in a Roth.
Optimally your employer will offer a 401K with a Roth option but there aren’t a ton of those plans around.
Do yourself a favor and get some fucking money in some fucking ETF. The details are far less important than getting it the fuck in there. Even if it’s Ed Jones, just fucking do it. Now.
Originally Posted by lewdog:
Oh I do and have been.
I just know that not everyone can afford that. There's nothing wrong with even a few hundred dollars per year, especially if you're young.
A ROTH IRA is probably the most valuable investment vehicle for middle class earners. You should, however, contribute first to your 401k to get your full employer match (free money). After that, people should look to fund a ROTH.
In theory there is some tax optimization you can do, but I’m not dork enough to calculate it. And I’m pretty dork.
Originally Posted by Titty Meat:
I'm pissed that this was never explained to me when I was in college.
Originally Posted by Hammock Parties:
No one told me shit either.
Financial lifestyle should be a mandatory class in HIGH SCHOOL.
Our educational system is a failure.
Y’all motherfuckers took the wrong classes.
Whatever you’re going to do, business is at the heart of it all. Know the numbers.
Originally Posted by Hammock Parties:
Incredibly so. If I wasn't so fucking poor I'd put in 5,000 every goddamn year and tell Uncle Sam to pound sand when I'm old.
I assumed you had a Roth. You could do your trading in a Roth. Ive never done it but my understanding is you can always remove your contributions. So if you put in 6k and it grows to 10k, you can remove the 6k w/o penalty. You may want the extra 4k minus taxes for buying a house now. Just throwing it out there [Reply]
Originally Posted by ChiliConCarnage:
I assumed you had a Roth. You could do your trading in a Roth. Ive never done it but my understanding is you can always remove your contributions. So if you put in 6k and it grows to 10k, you can remove the 6k w/o penalty. You may want the extra 4k minus taxes for buying a house now. Just throwing it out there
Yes. A ROTH can be used just like this. Awesome advice. Because contributions can be removed without penalty, it can be treated like an extra savings account if needed. Not that you’d want to remove a ton of your contributions but it’s better than a loan against your 401k in a crunch. [Reply]
Originally Posted by eDave:
And just like that, this thread returns to it's original intention.
Kind of funny. I still think I'll only stop by occasionally, though. I'm pretty busy these days, and it's been a waste of time to come in here to wade through 100 posts a day of alphabet soup. [Reply]
Originally Posted by Mr_Tomahawk:
What’s going to be the big mover next week?
(I already own FRX)
Not sure yet, depends where market heads. Could be 5-10% correction. I will wait and see how Monday opens and probably more importantly, closes. [Reply]
This thread is actually better than WallStreetBets because they don't allow talk about SPACs and penny stocks. I've made more from using tips on those the last couple weeks than tips from there for three months. Should have started paying attention sooner. [Reply]
Originally Posted by DaFace:
Kind of funny. I still think I'll only stop by occasionally, though. I'm pretty busy these days, and it's been a waste of time to come in here to wade through 100 posts a day of alphabet soup.
Im hoping some of you with more knowledge on the subject could explain this, as this is the first time I've ever invested in SPACs.
"Yahoo Finance Editor-in-Chief Andy Serwer recently explored the SPAC frenzy and cited Stanford Law Professor Michael Klausner's study “A Sober Look at SPACs,” which found, "SPAC investors that hold shares at the time of a SPAC’s merger see post-merger share prices drop on average by a third or more."
Originally Posted by Titty Meat:
Is a Roth account something worth setting up?
This is critical for your retirement and it really doesn’t cost that much. It’s like that saying “the best time to plant a tree was 20 years ago, but the second best time is today.” Do it now bc time is what helps compound your money to grow.
Put as much in that bitch as you can afford to. It’s really one of the average Joe’s best vehicles to financial freedom. [Reply]
Originally Posted by lewdog:
Oh I do and have been.
I just know that not everyone can afford that. There's nothing wrong with even a few hundred dollars per year, especially if you're young.
A ROTH IRA is probably the most valuable investment vehicle for middle class earners. You should, however, contribute first to your 401k to get your full employer match (free money). After that, people should look to fund a ROTH.
Yes sir!
I put in 20% and my employer matches 6%. They’ll match 10% after 10 years of employment, I have 3 more years to go. [Reply]