Investing General Discussion

Blazin

Blazin

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The actual vanguard choices would help, but in general you are sufficiently young (early 30s) to do 80/20. Assuming you're about 30 yrs out, Target Retirement 2050 is currently allocated at 90/10.

I would not allow the prior 10 yr returns to influence your choice to much, we have been in a declining interest rate environment for a very long time. This has bolstered the returns of 60/40 beyond what is likely a reasonable expectation looking forward the next 30 yrs. Vanguard has issued several letters/notes as of late trying to prepare investors that gains in the coming years are likely to fall short as interest rates begin to rise.

Lots of volatility in the market right now, probably a good idea not to focus on that for money with a thirty year horizon.
 
Sludig

Sludig

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Retirement would be kinda inbetween 20-25 ideally since old men don't fight street thugs and inmates the greatest. But get what you are saying. If I get some time I can try reprinting my options in detail. But thats roughly how it breaks down.

Just wasn't sure if maybe besides maxing my matching I'd be better off dunking even more to whatever that federal cap pre tax or whatever was vs doing things like paying off home loan aggressively. (And if I was missing any reasons not to go more aggressive early on my choices.)

Thanks
 
Blazin

Blazin

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Sludig said:
Retirement would be kinda inbetween 20-25 ideally since old men don't fight street thugs and inmates the greatest. But get what you are saying. If I get some time I can try reprinting my options in detail. But thats roughly how it breaks down.

Just wasn't sure if maybe besides maxing my matching I'd be better off dunking even more to whatever that federal cap pre tax or whatever was vs doing things like paying off home loan aggressively. (And if I was missing any reasons not to go more aggressive early on my choices.)

Thanks
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I'm 100% for maxing 401k, unless you have debt outside of mortgage.
 
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Gravel

Gravel

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Steer clear of American funds. They're one of the absolute worst for fees in the entire industry.

And yeah, bonds fucking suck. Bonds were in a 30 year or so bubble that ended with the recession. They're going to be a major drag on your portfolio. Their only value at this point is a hedge against inflation, and if you're nearing withdrawals to eliminate sequence of returns risk.
 
Sludig

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I guess my 401k's are broken up into 2 groups. (Technically a 457 and something?)

Anyways for the 2 groups, these are my choices.


401kA.png
401kB.png
 
sleevedraw

sleevedraw

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If you want actively-managed, Dodge and Cox Stock is great if you like value funds. Value funds haven't done as well as growth over the past 10 years, but that may change now that interest rates are starting to rise again. They also lost less than growth funds during the '08 crunch.

T. Rowe Blue Chip is considered to be one the best for growth (I have it in some of my retirement accounts myself), but do note that it's overweighted in tech, and tech is getting beat to shit at the moment.

If you want passively-managed: Do what Blazin said and go somewhere between 75/25 and 85/15 stock/bond depending on your risk tolerance. Largest proportion in S&P index, smaller proportion in extended market, somewhere between 10-25% in international. I personally think underweighting in international's probably the best option in the short to intermediate term while Trump is in office. Or just go super-lazy and get one of the target-date funds.
 
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Blazin

Blazin

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Robinhood offering 3% checking

Robinhood – Checking & Savings

I don't know how limited this will be but it's a hell of a deal right now. No Fees no bs at all that I can find. This is definitely a company spending money to grow because at current rates it would be near impossible for them to make money on this. They are SIPC insured up to $250k.

Disclaimer - I move up the wait list if you use my link :) It was up to 30,000+ almost instantly.
 
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Khane

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I don't know about a bank named "Robinhood". He stole from the rich to give to the poor right? I'm rich. Fuck that guy.
 
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Blazin

Blazin

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Khane said:
I don't know about a bank named "Robinhood". He stole from the rich to give to the poor right? I'm rich. Fuck that guy.
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Well Mr Khane a key to being rich is to always point a finger at someone richer and promote taking that guys money.
 
Keystone

Keystone

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Nice! used your link to sign up I'm like 70,000th atm can't imagine why they wouldn't just open the floodgates once they get it up and running though.

I was reading through the fine print to try to find limits or conditions to get the 3% and didn't see anything though, I wonder if it's going to require a direct deposit or be capped at 10k or something like most of these offers are.
 
Blazin

Blazin

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Keystone said:
Nice! used your link to sign up I'm like 70,000th atm can't imagine why they wouldn't just open the floodgates once they get it up and running though.

I was reading through the fine print to try to find limits or conditions to get the 3% and didn't see anything though, I wonder if it's going to require a direct deposit or be capped at 10k or something like most of these offers are.
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Yeah I kept waiting for the gotcha of some cap, with their wanting to go public it appears to be a growth play at the cost of cash near term. Probably not a bad move, it's all the street cares about early on is growth. I also think it's a bet on interest rates continuing to climb, but if the Fed pulls back 2019 increases they could definitely feel squeezed.

It's now up to 200,000 signed up today so far.
 
Arative

Arative

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I signed up for the checking account. I already have an investment account there. Emailed support to see if there is bill pay. Couldn't imagine in this day and age that there wouldn't be. I'd drop my credit union for 3% no problem.
 
sleevedraw

sleevedraw

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Blazin said:
Robinhood offering 3% checking

Robinhood – Checking & Savings
No Fees no bs at all that I can find. They are SIPC insured up to $250k.
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The BS is that SIPC insurance is much weaker than FDIC insurance. FDIC is backed by "the full faith and credit" of the US government, meaning if a bank goes bust, the feds must pay. SIPC insurance only require that there's an insurance pool. SIPC insurance pool is funded for $2-5b, but if that pool is exhausted, there is nothing that compels the feds to step in and fund the rest (once the insurance pool goes bust, payments stop.)
 
Blazin

Blazin

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sleevedraw said:
The BS is that SIPC insurance is much weaker than FDIC insurance. FDIC is backed by "the full faith and credit" of the US government, meaning if a bank goes bust, the feds must pay. SIPC insurance only require that there's an insurance pool. SIPC insurance pool is funded for $2-5b, but if that pool is exhausted, there is nothing that compels the feds to step in and fund the rest (once the insurance pool goes bust, payments stop.)
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I'm aware of that but I wouldnt call that BS, has their ever been a failure by SIPC in 50yrs to provide the protection it mandates? And to the degree our governmental protects the financial industry it's highly unlikely in the extreme rare event SIPC was improperly funded that the failure would fall to consumers without the Fed stepping covering it, then regulating and fining the shit out of the companies that caused the fault.

If you call that SIPC BS then you think any private insurance is BS. Your health coverage is BS, your life insurance is BS.
 
Khane

Khane

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I'm not trying to rain on your parade or call this new institution a scam. I just think it's a little strange to try and use health insurance as an example of good faith business practice.
 
Blazin

Blazin

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Khane said:
I just think it's a little strange to try and use health insurance as an example of good faith business practice.
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I agree, good thing I didn't do that. He conflated "insurance" as being bullshit. The assets are insured, if you think that particular insurance or all insurance is BS I don't really care enough to argue the point. I believe it to be sufficiently "insured" via SIPC and experience in seeing how systemic failures are handled by our govt that I believe the risk a moot point. Caveat Emptor always applies but if that scares someone away then pretty much any financial instrument probably comes off as pretty scary.
 
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