Investing General Discussion
- Thread starter Furious
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TJT
Mr. Poopybutthole
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This is thanks to the Smartphone and Robinhood (or similar). Think about it y'all. Smartphones, as they exist today, weren't even mainstream until around 2010. I didn't even have one personally until 2015. The iPhone 1.0 came out in 2008.
Before the era of Robinhood anyone interested in investing had to seek out a brokerage. Signing up on Fidelity or Etrade was never mind you. But you still had to get on your PC go to the site and signup. Link your bank account or whatever and that process wasn't instantaneous. Also, there were commission fees per trade to further deter people.
In comes Robinhood. You can load up the app on your phone in 30 seconds and transfer funds in from your linked bank app in another 90 seconds. Then you can trade on whatever the fuck you want #yolo.
This has a profound impact on market pressure that can be exerted on shit like KODK that didn't exist even three years ago.
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Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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AMDs $100B market cap is now on par with IBM, Lockheed Martin, Wells Fargo, Citigroup, Union Pacific and Starbucks. I dont think that's realistic for a chip maker who's net income in 2019 was $340M. And especially one who isnt the only game in town.
I think its terribly overvalued, but I'd just put a 10% trailing stop loss on my position and keep riding it as high as it goes.
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Kuro
Naxxramas 1.0 Raider
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It's a starting position, so the paycheck is only ~4700 before taxes/401k/hsa/premium/whatever would come out, so will take about 5 months to cap out a 401k and HSA on that. But yeah, intending on putting in the full 19500/3500. Can swing about 36,000 in "savings/investing" a year once I start the job, since I've got a supplementary source of ~2k a month and don't have any kids/wife to consume my excess. Would then probably have to continue bombing the paychecks in to make sure to max out 2021 by the end of the year, then switch to 12-month-averaged contribution in january 2022.
They've got a vesting schedule for the match at 33%/year, 100% after you've been there 4 years. So there's a possibility I change companies before the match is fully vested, but that's a bit down the road from here.
They've got a vesting schedule for the match at 33%/year, 100% after you've been there 4 years. So there's a possibility I change companies before the match is fully vested, but that's a bit down the road from here.
Flobee
Vyemm Raider
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One thing worth confirming is whether the company has a maximum match per paycheck. Some companies will only fully match if you defer the amount in each pay period. If you lump sum into the 401k in a short time period you may miss some matching. Sounds like you may not have a choice in the short term, but worth finding out.
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Several of my wifes relatives gave us some money for the baby in last few weeks. Theyre not rich or anything but it was like $300 here, $500 there and they were all like "put this in a savings account for the baby when she turns 18!!!"
I didnt really keep exact count of who gave what (I think my wife did) so I just stuffed $2K into TQQQ so I can tell them its invested and to leave me alone.
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karma
Molten Core Raider
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I dont know how it is with other insurance companies in other states, but only some Blue Cross Blue Shield plans in NC have HSA components, which is DUMB. EVERYONE should be able to set up and save for medical expenses, but I guess the govt's dont actually want people saving.
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This is exactly what I do each year. Just put paycheck on 100 percent to 401k and HSA until maxed. Its really helped me catch up since I was late to the savings/retirement savings game. Your earned income really does go along way when you think of the tax savings and company matchings, not to mentoin the actual growth in the investment acount too. I assume your HSA allows you to put the money into a ETF. Mine lets me on any amount over 1k thats sitting in it.
Actually there is one last nuance between 401k and HSA. You can contribute to your HSA on your own too, outside of your paycheck, which is not possible with the company 401k. So if you find yourself in a position of running out of paycheck weeks but still have not maxed your HSA, you can contribute to it with other funds and still count if off your taxed income come tax time.
Sanrith Descartes
Veteran of a thousand threadban wars
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In academic terms we refer to asymmetrical information. Its when a transaction occurs and one party doesn't have access to the same info that the other party does. Its why stocks get halted for "pending news". Pre-tech explosion, the average Joe had no idea about the ins and outs of a company's financials or the latest management changes at the top , or merger talks. That was info dominated by Wallstreet and why you needed a broker. Those days are gone. Twitter is a cesspool, but the financial tags give us access to info faster than you see it on the news most times and one of the main reasons I am on it. Reddit, the same way. I have respected the hell out of Buffet for a long time, but i truly think he has failed to adapt to a changing environment in terms of trading and investing. All he has done since selling out of the airlines at a huge loss is increase his stake in BAC. Berkshire now owns like 12% of a bank in a zero interest environment with a possible tsunami of mortgage defaults down the road. Adapt to survive. I told myself there were some stocks I would never own. FB was on that list. I put that philosophy aside. I am up 15% in FB since I bought it 6 weeks ago. GOOG and tobacco stocks are about the only things I refuse to own at this point.
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SeanDoe1z1
Avatar of War Slayer
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When I got out they were just doing 401K TSPs, I don't think Roth option was available yet. Probably 50 %+ of people that just sign onto TSP just let everything ride in a G account. I wasted my 20s by dipping into mine as an easter egg. I dumped my 401k into an available blue chip index during coronavirus, I feel like I should get out pretty soon as I feel fundamentals are finally going to hit us like a ton of bricks and want to protect some really insane profits.
Sanrith Descartes
Veteran of a thousand threadban wars
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It really is all about tax savings. There are charts about to help you calculate the max you can legally hide from taxes. With the 401k, even if the company match is up to 6%, if you can pre-tax 15% (or whatever the amount is) and can afford to do so then bang it. Every pre-tax dollar is money you arent being taxed on. Same with the HSA. Then check to see how much (if anything) you can deduct putting into an IRA (it depends on your 401k contributions for you and/or a spouse). Rich people stay rich by not giving the gubmint a single dime they dont have to.
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Sanrith Descartes
Veteran of a thousand threadban wars
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Dont try to time the market ups and downs for long term investments. Pretty much no one can do it. Long term the index will do what it does and continue its march upwards. assuming you have dividend reinvestment on, when the market corrects it just means the dividends are buying more shares. Short-term trading is a different animal entirely. but for long-term retirement investing, just let it ride the ups and downs.
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Whats your twitter strategy?
Do you track certain hashtags and follow certain accounts?
SeanDoe1z1
Avatar of War Slayer
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At the time I had the majority of it in energy index fund just because its an easy slide with Trump then once coronachan started the only faith I had were in the major conglomerates. I honestly will probably set it and forget it to an aggressive vanguard index and just consider myself lucky over the last couple of years.
I have a horrible habit of playing with my "funny" money account and chalking up losses as "learning" experiences. Basically a level 1 paladin attacking level 4 bats wondering why I keep dying in Qeynos
Furry
WoW Office
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Im jelly of people who can do HSAs. Being a gov worker, the rolls royce medical plan is way too good to pass up. Surgery with a 4 day hospital stay that includes CT scans, physical therapy and all those tests and medicines. 150k on paper, 600$ out of pocket.
If I had a way to weasel a HSA into my retirement life I would.
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Furry
WoW Office
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Since there's a lot of weird stuff with retirement accounts, I thought I'd mention a little plan I had for the first few years of my retirement. You can roll 401k over into Roth IRA. I was planning on traveling the world and having close to 0 income for my first years in retirement. Rather than let those years go to waste, I'm going to convert 401k over into Roth in that low to 0 tax bracket.
Beating the tax man is a high priority of mine, and it's just a reminder to never let tax savings go to waste by having a low income year. Converting to roth is taxable as income, but very good in situations where its free or nearly free to do.
Beating the tax man is a high priority of mine, and it's just a reminder to never let tax savings go to waste by having a low income year. Converting to roth is taxable as income, but very good in situations where its free or nearly free to do.
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Hateyou
Not Great, Not Terrible
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IDK man, think about the type of people that will be in that parking lot at night. Walmart at night brings out the weirdest people in town.
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Sanrith Descartes
Veteran of a thousand threadban wars
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