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Posted: 11/1/2018 2:54:20 PM EDT
[#1]
First off, what is the $30k check from? Is it earned income?
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Posted: 11/1/2018 2:55:46 PM EDT
[#2]
You're not going to like this answer, and it's boring: put in in the CD and/or add it to your "emergency fund" and general bank account; $1,000/$5,000 isn't much (IMO).
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Posted: 11/1/2018 3:38:45 PM EDT
[#3]
There are some CD's emerging that look a hell of a lot better than typical savings or "money market" accounts.
O, for the glory days of 15% CD's ...; but not the high inflation and interest rates on loans. |
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Posted: 11/1/2018 3:47:50 PM EDT
[#4]
$5,500 to Roth today, $6,000 to Roth Jan 1.
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Posted: 11/1/2018 5:33:52 PM EDT
[#5]
Quote HistoryQuoted:
First off, what is the $30k check from? Is it earned income? |
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Posted: 11/1/2018 5:34:42 PM EDT
[#6]
Quote HistoryQuoted:
You're not going to like this answer, and it's boring: put in in the CD and/or add it to your "emergency fund" and general bank account; $1,000/$5,000 isn't much (IMO). |
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Posted: 11/1/2018 5:36:12 PM EDT
[#7]
Quote HistoryQuoted:
$5,500 to Roth today, $6,000 to Roth Jan 1. ETA: I had a roth IRA through a wells fargo branch that never made any real money and was cashed out in the divorce. So i guess i would want something online that i could invest in stocks with low or no annual fee if i were to go the Roth IRA route again. |
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Posted: 11/1/2018 6:33:54 PM EDT
[#8]
yes
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Posted: 11/1/2018 6:35:26 PM EDT
[#9]
machine gun
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Posted: 11/1/2018 7:04:39 PM EDT
[#10]
Roth requiements are dependent on your AGI not your employer sponsored plans. Do a quick google as I would but I’m on my phone.
Is your Agi less than $120k? If so I would: 1) Pump up your emergency fund to be 3 months of salary or 6 months of expenses. 2) tab the rest off to Roth IRA 2018 and 2018. Just as Jaqu said. Suspect you can do both based on your numbers. Then I’d purchase inside the Roth something like VFINX or similar. Some guys like a total market fund instead. Different topic: Also does your company offer Roth-401K instead of current offering? |
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Posted: 11/1/2018 7:09:32 PM EDT
[#11]
Quote HistoryQuoted:
Roth requiements are dependent on your AGI not your employer sponsored plans. Do a quick google as I would but I’m on my phone. Is your Agi less than $106k? I've had a pay raise of about 3% since then and worked some overtime, but nothing crazy. T Estimated gross for 2018 is $132,798 Estimated taxable gross is $88,993 |
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Posted: 11/1/2018 7:11:25 PM EDT
[#12]
Sorry I wasn’t clear, $120k is when a Roth cap kicks in. Meaning, if you’re less than $120k you can fully contribute. More then $120k it steps down then at $135k you can contribute zero!
Sounds like you’re good. |
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Posted: 11/1/2018 7:12:53 PM EDT
[#13]
Quote HistoryQuoted:
Different topic: Also does your company offer Roth-401K instead of current offering? I've always went with the pre tax dollars option in order to lower my taxable income now. ill be making less money in retirement due to the ex wife getting half the my pension. |
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Posted: 11/1/2018 7:28:38 PM EDT
[#14]
Buy 25k worth of a leveraged FAANG ETF at the opening bell tomorrow. You'll have $50k next year.
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Posted: 11/1/2018 7:30:06 PM EDT
[#15]
Quoted:
47 years old, no debt. Tax deferred retirement account from work is already maxed out at $18,500.00 per year. Only have about $1,000.00 emergency cash and $5,000.00 bank savings. |
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Posted: 11/1/2018 7:32:36 PM EDT
[#16]
Quote HistoryQuoted:
and you say your AGI was near $100k??? Hookers n blow or??? Somethings not adding up here... |
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Posted: 11/1/2018 7:48:51 PM EDT
[#17]
Nevermind
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Posted: 11/1/2018 7:57:38 PM EDT
[#18]
Quote HistoryQuoted: Yes. But they only allow $18,500 total combined I've always went with the pre tax dollars option in order to lower my taxable income now. ill be making less money in retirement due to the ex wife getting half the my pension. I would set up an account at Vanguard and buy index funds/ETFs like VTSAX and VTI. Those two funds track the US stock market and have every low overhead cost. If the market is up, they will be up, same thing if it's down. Historically the market has very good returns as long as your time horizon is longer than a few years. |
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Posted: 11/1/2018 8:04:02 PM EDT
[#19]
Quote HistoryQuoted:
$5,500 to Roth today, $6,000 to Roth Jan 1. Put the rest into a regular IRA if you can. TD ameritrade is offering $100 plus 500 free trades for a new account. |
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Posted: 11/1/2018 8:06:22 PM EDT
[#20]
Quote HistoryQuoted: This is a good start. Open up a brokerage acct. and split it up into ~8 or 10 different dividend aristocrat stocks. Fund those Roth IRAs Put the rest into regular IRAs. |
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Posted: 11/1/2018 8:07:59 PM EDT
[#21]
Quote HistoryQuoted:
Skip individual stocks and stay with index funds. Your risk is much lower. Statistically, beating the market is a fools errand. Quote HistoryQuoted:
Quoted: This is a good start. Open up a brokerage acct. and split it up into ~8 or 10 different dividend aristocrat stocks. Fund those Roth IRAs Put the rest into regular IRAs. |
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Posted: 11/1/2018 8:22:25 PM EDT
[#22]
Quote HistoryQuoted:
What are some good index funds which focus on div aristocrat type companies? Quote HistoryQuoted:
Quoted:
Quoted: This is a good start. Open up a brokerage acct. and split it up into ~8 or 10 different dividend aristocrat stocks. Fund those Roth IRAs Put the rest into regular IRAs. |
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Posted: 11/1/2018 8:58:46 PM EDT
[#23]
Quote HistoryQuoted:
and you say your AGI was near $100k??? Hookers n blow or??? Somethings not adding up here... |
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Posted: 11/1/2018 9:03:24 PM EDT
[#24]
Quote HistoryQuoted:
Skip individual stocks and stay with index funds. Your risk is much lower. Statistically, beating the market is a fools errand. |
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Posted: 11/1/2018 10:26:07 PM EDT
[#25]
What are your goals.
I'd put it into rentals or expanding one if my businesses but I don't have any idea where you want to go. Cds? That's how money dies but they have their place. |
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Posted: 11/1/2018 11:02:29 PM EDT
[#26]
Quote HistoryQuoted:
What are your goals. I’d be retired now if not for the divorce. |
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Posted: 11/2/2018 7:15:22 AM EDT
[#27]
Quote HistoryQuoted:
Retire at 55, live off the combination of pension and deferred compensation plan. Use HRA account to pay for medical insurance until old enough for Medicare. I’d be retired now if not for the divorce. Quote HistoryQuoted:
Quoted:
What are your goals. I’d be retired now if not for the divorce. For specifics, refer to your accountant or one of the guys on here like midcap that knows such things. My knowledge is more business and rental oriented. |
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Posted: 11/2/2018 7:45:22 AM EDT
[#28]
Ammo Fort
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Posted: 11/2/2018 11:13:45 AM EDT
[#29]
Quote HistoryQuoted: TD ameritrade is offering $100 plus 500 free trades for a new account. Too good to be true? am i going to have to pay a transaction fee to open the account or put money into it? |
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Posted: 11/3/2018 2:43:03 AM EDT
[#30]
You need an emergency fund ASAP. You are maxing the retirement accounts already, which is great. What happens if you need $10000 tomorrow for a new roof or whatever?
6 months expenses in an emergency savings account is where I'd put most of the $25000. After that fund a Roth 401k or max your HSA if you have one. Then do a taxable investment account as the last resort. |
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Posted: 11/3/2018 2:31:25 PM EDT
[#31]
Quote HistoryQuoted:
You need an emergency fund ASAP. You are maxing the retirement accounts already, which is great. What happens if you need $10000 tomorrow for a new roof or whatever? But its not as bad as it appears. My car is under warranty. I have excellent heath insurance. Im a renter. So large unexpected expenses are unlikely. In some hypothetical situation where I suddenly need $10,000.00, I can borrow up to $50K from my deferred comp and the interest is paid back to myself. Or throw it on a no interest credit card then sign up for 9 overtime shifts. Or sell guns and optics. The other hypothetical scenario where an emergency fund would be beneficial is a job loss. If that happens i start drawing my pension while looking for another job and supplement my pension with my deferred compensation plan. I'm also finally working on VA disability for an added income stream. Should have done that years ago. I left a lot of money on the table not doing it right away. Having a lot of money in deferred comp and not having to wait for some minimum age requirement to access it gives me options most people don't have. ETA: No HSA but i do have a HRA my employer forced my to sign up for several years back. its got around $60K in it so far. I don't really pay it any attention. |
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Posted: 11/4/2018 6:42:37 PM EDT
[#32]
Quote HistoryQuoted: I agree that I should have a bigger emergency fund. But its not as bad as it appears. My car is under warranty. I have excellent heath insurance. Im a renter. So large unexpected expenses are unlikely. In some hypothetical situation where I suddenly need $10,000.00, I can borrow up to $50K from my deferred comp and the interest is paid back to myself. Or throw it on a no interest credit card then sign up for 9 overtime shifts. Or sell guns and optics. The other hypothetical scenario where an emergency fund would be beneficial is a job loss. If that happens i start drawing my pension while looking for another job and supplement my pension with my deferred compensation plan. I'm also finally working on VA disability for an added income stream. Should have done that years ago. I left a lot of money on the table not doing it right away. Having a lot of money in deferred comp and not having to wait for some minimum age requirement to access it gives me options most people don't have. ETA: No HSA but i do have a HRA my employer forced my to sign up for several years back. its got around $60K in it so far. I don't really pay it any attention. And, having some cash in a savings account means to can go to the bank and get cash right now. No having to sell things or bank on getting overtime. And counting on a credit card as emergency cash? Lol, what happens when the card is maxed out and you need more? Clearly you have a high risk tolerance and that is fine. I'm not saying you need all $25000 in a savings account, but not having something, even a few grand stashed away, is financially reckless. |
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Posted: 11/4/2018 10:37:46 PM EDT
[#33]
Quote HistoryQuoted: The point of the emergency money is to avoid having to do any of those things you mentions. Its great you have deferred comp and a pension you can draw when needed but (1) those things take time, several weeks or months, to get the checks flowing and (2) you absolutely don't want to touch those unless you have no other ways what so ever to get money. And, having some cash in a savings account means to can go to the bank and get cash right now. No having to sell things or bank on getting overtime. And counting on a credit card as emergency cash? Lol, what happens when the card is maxed out and you need more? Clearly you have a high risk tolerance and that is fine. I'm not saying you need all $25000 in a savings account, but not having something, even a few grand stashed away, is financially reckless. Anything placed in a Roth can be cashed out immediately. If there is any room left on Roth contributions, use them. Even if you keep it in a money market fund for a year or two. If there is no emergency, you get to keep the tax advantages. If there is an emergency, you still have the same dollars available to cash out if you really have to. You only get to contribute a limited amount each year, so don't pass up any tax advantages that are available. |
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Posted: 11/4/2018 10:41:07 PM EDT
[#34]
Quote HistoryQuoted:
What about Fidelity? It appears I can open an account there with no annual fee and they have a no fee index fund (FZROX). Too good to be true? am i going to have to pay a transaction fee to open the account or put money into it? Quote HistoryQuoted:
Quoted: TD ameritrade is offering $100 plus 500 free trades for a new account. Too good to be true? am i going to have to pay a transaction fee to open the account or put money into it? |
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Posted: 11/4/2018 10:54:08 PM EDT
[#35]
Quote HistoryQuoted: What about Fidelity? It appears I can open an account there with no annual fee and they have a no fee index fund (FZROX). Too good to be true? am i going to have to pay a transaction fee to open the account or put money into it? |
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Posted: 11/5/2018 8:48:29 AM EDT
[#36]
Quote HistoryQuoted:
I opened a Roth IRA with Fidelity this year and am putting money into FZROX. There are no fees, it's an enticement to get you as a customer so they can hopefully make money off of you in other ways in the future and it probably costs them hardly anything. Bank's used to give away toasters and things to get customers to open accounts, it's fundamentally the same thing. Quote HistoryQuoted:
Quoted: What about Fidelity? It appears I can open an account there with no annual fee and they have a no fee index fund (FZROX). Too good to be true? am i going to have to pay a transaction fee to open the account or put money into it? |
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Posted: 11/5/2018 12:00:02 PM EDT
[#37]
put it in Vanguard money market fund, i think its paying 2.25%, every time the fed raises it goes up too
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Posted: 11/5/2018 12:52:54 PM EDT
[#38]
Put it into a Vanguard or Fidelity account in mutual funds that are high performing in the past three years.
Yes, you'll pay taxes on capital gains. So what? You pay taxes on any income. Unless...do you have an IRA? If you don't, and you're not too old to do it, start a Roth IRA and you pay taxes going in but don't pay taxes coming out. Invest that Roth IRA same as I said in the first line. Set it up with Vanguard or Fidelity and pick a high performing mutual fund to put it in. |
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Posted: 11/5/2018 12:57:35 PM EDT
[#39]
Quote HistoryQuoted:
Put it into a Vanguard or Fidelity account in mutual funds that are high performing in the past three years. Yes, you'll pay taxes on capital gains. So what? You pay taxes on any income. Unless...do you have an IRA? If you don't, and you're not too old to do it, start a Roth IRA and you pay taxes going in but don't pay taxes coming out. Invest that Roth IRA same as I said in the first line. Set it up with Vanguard or Fidelity and pick a high performing mutual fund to put it in. I prefer to pick an allocation plan made from index funds and stick to it with an annual rebalance. |
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Posted: 11/15/2018 11:53:02 PM EDT
[#40]
max out the IRA for this year and next.
place the rest in a capital one account at 1.85% or place it in vanguard, and invest it in a fund when the price is attractive. No sense buying right away to take a hit on an immediate dip. Take your time if placing the money in an investment and buy when the stocks are cheap. |
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Posted: 11/16/2018 11:29:36 AM EDT
[#41]
Update
I've opened a Roth IRA at Fidelity but have not funded it as I have not received the money yet. It's now supposed to be between 30-34K. My plan is to put $5,500 into the Roth for 2018, put $25,000 into an online savings account that has a $200.00 sign up bonus, then put $6,000 into the Roth IRA in 2019 from the online savings account. |
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Posted: 11/17/2018 10:19:26 AM EDT
[#42]
Quote HistoryQuoted:
Update I've opened a Roth IRA at Fidelity but have not funded it as I have not received the money yet. It's now supposed to be between 30-34K. My plan is to put $5,500 into the Roth for 2018, put $25,000 into an online savings account that has a $200.00 sign up bonus, then put $6,000 into the Roth IRA in 2019 from the online savings account. Feels good man 
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Posted: 11/19/2018 12:25:19 AM EDT
[#43]
Max out roth contributions for 2018 and do the same for 2019.
You could open up a brokerage account with the remaining, and go into SPYD, it's the S&P 500 dividend etf equal weighted TTM dividend yield is around 5%, and the expense ratio is 0.07% I would seek a broker that trades SPYD commission free, i know on schwab that SPYD is a commission free ETF, i don't know about the others. make sure you reinvest the dividends. if you are going to do any fixed income (bonds) stay on the short-end of the curve, i wouldn't go out any longer than maybe 6-months, right now I just roll over 30-day treasuries, occassionally a 60-day don't leave the Roth in cash, you can put it in SPYD also Other posts have mentioned CD's, not a fan, i can get the same return in highly-liquid similar maturity treasury instead. |
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Posted: 12/8/2018 12:54:42 AM EDT
[#44]
$5k to cash savings, $11.5k roth this year, next year, 6k HSA (if eligible, else $6k ROTH 2020); $2.5k for you (expecting someone not to touch their windfall at all in unreasonable, better regulated 10% splurge than blowing it all.
You definitely want an emergency fund if ONLY because you have CS payments which will be due, job or no job, sick/disabled/whatever. Also, you mentioned you have an HRA instead of an HSA... you really need to look into which you have and the plan details, I recall HRAs you dont keep the money if you quit/get fired (its not your money) versus HSA which "its yours" |
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Posted: 12/9/2018 8:11:35 PM EDT
[#45]
Quote HistoryQuoted:
Any reason not to do one of the online savings accounts? Quote HistoryQuoted:
Quoted:
You're not going to like this answer, and it's boring: put in in the CD and/or add it to your "emergency fund" and general bank account; $1,000/$5,000 isn't much (IMO). |
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