Investing General Discussion

T

Tirant

Lord Nagafen Raider
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You guys talking about year to date made me go check, haven't benchmarked myself lately.

Pleasantly surprised I'm +37.91% vs +17.67% on SP500.

Thank you Newmont. This even includes going into Liberation day with $45k of NVDA calls, I swear I'm the only person that lost my ass on NVDA this year.
 
Furry

Furry

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Rangoth said:
If you are just trying to long term(1 year + or 10-15 retirement type thing). There is not a *huge* disadvantage to a normal brokerage account. You'll only pay long term capital gains when you sell so if you just bought SPY with whatever extra income you had each year there is really not any tax. You would pay tax on the dividends I guess but that really won't be much.

Most of the pain comes in on normal accounts when it comes to trading, because a 1k profit for example in a 401k is tax free *at the time the profit is made*. In a regular account you would owe 35$ or whatever "instantly". But if you just buy major ETF and look away it's not a big deal.
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401k is tax wise pretty much always superior to a brokerage until you can guarantee 47.1k/year in retirement, and still relatively better until you can get like 191k/year in retirement in it, which obviously is a lot more than 99.99% of 401ks.

The difference after 47.1k isn't that big generally though, and brokerages tend to be a lot more flexible. My aim was to guarantee that 47k in retirement income and then focus more on my brokerage. I'd be completely justified to keep dumping in my 401k, but flexibility was a key concern for me, since I plan to SEPP my 401k, so I'm focusing more on my brokerage now.
 
Jysin

Jysin

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Furry said:
401k is tax wise pretty much always superior to a brokerage until you can guarantee 47.1k/year in retirement, and still relatively better until you can get like 191k/year in retirement in it, which obviously is a lot more than 99.99% of 401ks.

The difference after 47.1k isn't that big generally though, and brokerages tend to be a lot more flexible. My aim was to guarantee that 47k in retirement income and then focus more on my brokerage. I'd be completely justified to keep dumping in my 401k, but flexibility was a key concern for me, since I plan to SEPP my 401k, so I'm focusing more on my brokerage now.
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Honest question: Where did you get this specific $47.1k number from?
 
Furry

Furry

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Jysin said:
Honest question: Where did you get this specific $47.1k number from?
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Tax Brackets. There's also standard deduction, but I hit a number that will give me that well before I'll retire, so a lower contribution and natural returns will almost certainly take me over standard deduction too.
 
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