Tmac
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Investing General Discussion
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The_Black_Log Foler
Stock Pals Senior Vice President
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Haha ya dude usury is awesome isn’t it! Would suck to not be a debt slave to the system!
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The_Black_Log Foler
Stock Pals Senior Vice President
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So I’m putting 90% of this months pretax paycheck into my 401k. I think I mentioned it before but I found out my employer offers a mega back door Roth. Next month if I do 90% which will max my 401k + contribute that Roth 401k.. Haven’t completely done the math but with 90% contribution I should max my 401k and Roth 401k within 4-5 months.
On one hand it’s awesome. On the other hand it makes me a bit bummed I’ll lose out on extra moneys for my own personal brokerage account investing. I have 24k sitting in SPAXX in my ER fund and if I need it I can pull from the bonds in my advisor managed account.
Bonds in my advisor managed account you ask? To be frank I am not a good budgeter. My spending is way higher than I’ve liked in the past. Looked at my spending last year and a lot of small purchase from Amazon but of course they add up.
I’ve realized that my rat brain rationalizes these small purchases in the moment though as being a “small purchase” with my large income. That they aren’t frivolous things like iPads or whatever. They’re usually things that are useful but in reality I could live without. I realize now my brain loves the dopamine hit of the purchase. It is conditioned into my subconscious.
This month I’ve been trying a psychology experiment. Instead of investing the bulk of my post-tax pay immediately on receiving my paycheck, I’ll invest about 70-80% of it then throw the rest in spaxx.
Every day I’ll make small orders. 90% of the time it’s FXAIX because it’s a solid core position but also ordering mutuals in off hours is convenient for when the rat brain gets hungry.. I get a dopamine hit. If I come across a purchase decision where either it can be avoided or an alternative lower cost option is on the table, I tell myself I will buy stonk if with the money I saved. It seems be actually be working pretty well.
I think this psychology works well because with the help of you guys I’ve learned the possibilities of investing, the magic of compound interest etc. Also with the help of you guys, which I am greatly thankful for, I have realized that investing isn’t something that only the “qualified” should be doing.
I’m not sure this psychology would work on a spender who didn’t see the big picture - that even small percentages in contributions can lead to massive gains over long time horizons.
Have any of you ever come across a book on finance or psychology that speaks to this? The psychology behind spending? I don’t have time to get a marketing degree and the money I could put towards one could go to fxaix.
On one hand it’s awesome. On the other hand it makes me a bit bummed I’ll lose out on extra moneys for my own personal brokerage account investing. I have 24k sitting in SPAXX in my ER fund and if I need it I can pull from the bonds in my advisor managed account.
Bonds in my advisor managed account you ask? To be frank I am not a good budgeter. My spending is way higher than I’ve liked in the past. Looked at my spending last year and a lot of small purchase from Amazon but of course they add up.
I’ve realized that my rat brain rationalizes these small purchases in the moment though as being a “small purchase” with my large income. That they aren’t frivolous things like iPads or whatever. They’re usually things that are useful but in reality I could live without. I realize now my brain loves the dopamine hit of the purchase. It is conditioned into my subconscious.
This month I’ve been trying a psychology experiment. Instead of investing the bulk of my post-tax pay immediately on receiving my paycheck, I’ll invest about 70-80% of it then throw the rest in spaxx.
Every day I’ll make small orders. 90% of the time it’s FXAIX because it’s a solid core position but also ordering mutuals in off hours is convenient for when the rat brain gets hungry.. I get a dopamine hit. If I come across a purchase decision where either it can be avoided or an alternative lower cost option is on the table, I tell myself I will buy stonk if with the money I saved. It seems be actually be working pretty well.
I think this psychology works well because with the help of you guys I’ve learned the possibilities of investing, the magic of compound interest etc. Also with the help of you guys, which I am greatly thankful for, I have realized that investing isn’t something that only the “qualified” should be doing.
I’m not sure this psychology would work on a spender who didn’t see the big picture - that even small percentages in contributions can lead to massive gains over long time horizons.
Have any of you ever come across a book on finance or psychology that speaks to this? The psychology behind spending? I don’t have time to get a marketing degree and the money I could put towards one could go to fxaix.
Falstaff
Ahn'Qiraj Raider
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Gravel
Mr. Poopybutthole
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Maybe doesn't apply to you, but for others considering it, the one thing to look out for when maxing out a 401k is matching. Most places match it throughout the year and if you do it all upfront you miss out on a bunch of matching. And since most places match 50-100% of your contribution, that's a massive amount (think of it as earning 100% on a fund upfront).So I’m putting 90% of this months pretax paycheck into my 401k. I think I mentioned it before but I found out my employer offers a mega back door Roth. Next month if I do 90% which will max my 401k + contribute that Roth 401k.. Haven’t completely done the math but with 90% contribution I should max my 401k and Roth 401k within 4-5 months.
On one hand it’s awesome. On the other hand it makes me a bit bummed I’ll lose out on extra moneys for my own personal brokerage account investing. I have 24k sitting in SPAXX in my ER fund and if I need it I can pull from the bonds in my advisor managed account.
Bonds in my advisor managed account you ask? To be frank I am not a good budgeter. My spending is way higher than I’ve liked in the past. Looked at my spending last year and a lot of small purchase from Amazon but of course they add up.
I’ve realized that my rat brain rationalizes these small purchases in the moment though as being a “small purchase” with my large income. That they aren’t frivolous things like iPads or whatever. They’re usually things that are useful but in reality I could live without. I realize now my brain loves the dopamine hit of the purchase. It is conditioned into my subconscious.
This month I’ve been trying a psychology experiment. Instead of investing the bulk of my post-tax pay immediately on receiving my paycheck, I’ll invest about 70-80% of it then throw the rest in spaxx.
Every day I’ll make small orders. 90% of the time it’s FXAIX because it’s a solid core position but also ordering mutuals in off hours is convenient for when the rat brain gets hungry.. I get a dopamine hit. If I come across a purchase decision where either it can be avoided or an alternative lower cost option is on the table, I tell myself I will buy stonk if with the money I saved. It seems be actually be working pretty well.
I think this psychology works well because with the help of you guys I’ve learned the possibilities of investing, the magic of compound interest etc. Also with the help of you guys, which I am greatly thankful for, I have realized that investing isn’t something that only the “qualified” should be doing.
I’m not sure this psychology would work on a spender who didn’t see the big picture - that even small percentages in contributions can lead to massive gains over long time horizons.
Have any of you ever come across a book on finance or psychology that speaks to this? The psychology behind spending? I don’t have time to get a marketing degree and the money I could put towards one could go to fxaix.
This is where employee matched plans differ from an IRA where time in market usually always wins and if you can max it the first of the year it's almost always better. If you miss out on 11 months of matching, it hurts.
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The_Black_Log Foler
Stock Pals Senior Vice President
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Thanks for raising this. I hadn’t thought about it. My employer match isn’t that great and doesn’t even vest until 3 years of continuous employment. I won’t be here past two years so unfortunately the match is moot.
Sanrith Descartes
Veteran of a thousand threadban wars
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CMG had a monster run up about 7 or 8 years ago and has sustained that share price. To be honest, for a fast food chain it makes gobs of money. EPS is in excess of $42.
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Zog
Blackwing Lair Raider
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With majority of the market fleeing to "safe havens" of tech, primarily semi/ai, while everything else is crumbling, the dollar is on an upward trend, volume at all levels to the upside looks like panic buying on the macd.
Obviously nobody knows when the time will come, timing the market is impossible but inevitably every fomo moment leads to correction/mean reversion, doesn't have to be a full on black swan event but sideways and down for 6 months isn't where you want all your money to be hanging out hoping for a retest of Friday's highs.
I would definitely be taking some profits here and moving up stop losses.
There are a lot of potential good deals and bullish trends that can start from these lows on small caps, you don't have to necessarily Short the market but keep that money moving, pigs get slaughtered.
Obviously nobody knows when the time will come, timing the market is impossible but inevitably every fomo moment leads to correction/mean reversion, doesn't have to be a full on black swan event but sideways and down for 6 months isn't where you want all your money to be hanging out hoping for a retest of Friday's highs.
I would definitely be taking some profits here and moving up stop losses.
There are a lot of potential good deals and bullish trends that can start from these lows on small caps, you don't have to necessarily Short the market but keep that money moving, pigs get slaughtered.
The_Black_Log Foler
Stock Pals Senior Vice President
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Thanks for bringing it up. Like I said my company match won’t vest until year 3 and I’ll only be here 2 years. I’ll be forced out later this year due to my unwillingness to relocate to some shithole city.Foler
This is important. I found this out the hard way one year many moons ago. Capped my 401k contributions in Aug/Sep and missed quite a bit of the year's match vs had I just split my cap out more evenly through the whole year.
TJT
Mr. Poopybutthole
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Most places don't do 50-100% 401k match though I would absolutely love that. 9% 401k match is the highest I've seen in corporate America.
Unless you're talking about something else. In 2023 I participated in a ESPP for the first time. Ended up being really juicy 8% of salary over 6 months. Purchased stock in a major company we are a subsidiary of at 10% discount of their EOY price 2023. It's sitting comfortably $20 more than my purchase price and I didn't have to do shit.
Unless you're talking about something else. In 2023 I participated in a ESPP for the first time. Ended up being really juicy 8% of salary over 6 months. Purchased stock in a major company we are a subsidiary of at 10% discount of their EOY price 2023. It's sitting comfortably $20 more than my purchase price and I didn't have to do shit.
Jysin
Ahn'Qiraj Raider
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TJT
Mr. Poopybutthole
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Yeah okay then we are talking about the same thing and being retards.
These all work similarly. General Motors matched 100% of the first 9% of your contributions. I have never seen a better match than that. My current job does 6%.
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Numbers are for 2024:
It doesn’t count toward the max of $23,000 employee contribution to Traditional and/or Roth 401(k).
It does count toward the total employee+employer contribution limit of $69,000.
The difference between $23,000 employee contributions plus employer contributions and the overall $69,000 max can be made up in plans that allow After-Tax contributions. If the plan also allows in-service conversions or rollovers the After-Tax contributions may be converted to Roth 401(k) or rolled over to a Roth IRA and only the earnings on the After-Tax contributions are taxable (do the conversions or rollovers immediately after contributing and there will be no additional tax for performing the maneuver). It’s an incredible tax loophole if your workplace plan and income allow you to take advantage of it.
Over and above all of that if you are turning age 50 or more in the year 2024 you may contribute an additional $7,500 in catch-up contributions.
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Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Looked up at some gappers this morning, out of the top 4 went with SMCI, seemed the most safe/reliable,
briefly considered SGMT (and their new liver drug trial success) but seemed too flimsy
an hour later SGMT goes from being 8% up to 80% up
right now its 128% up
bet on the wrong one, but still bet on a winner. sold SMCI within 7 minutes of market open, made $1K. done for the day.
briefly considered SGMT (and their new liver drug trial success) but seemed too flimsy
an hour later SGMT goes from being 8% up to 80% up
right now its 128% up
bet on the wrong one, but still bet on a winner. sold SMCI within 7 minutes of market open, made $1K. done for the day.
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