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Old 01-27-2019, 11:53 PM   #4426
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Re: Jmakinmeangry's debauchery and general idiocy blog

Yea i need to do that soon. I dont like having people in my house though.

Iím not down for a bet sorry
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Old 01-28-2019, 12:02 AM   #4427
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Re: Jmakinmeangry's debauchery and general idiocy blog

Holding more money in my hand right now than most people see in their entire lives. Was my bday weekend. Kind of sucked - i wanted to go golf yesterday with my friend but my grandma wanted to talk to me for a few hours yesterday.

That was miserable, she lectured me the whole time about family and how i havent been keeping in contact with anyone (i skipped the holidays this year, itís seriously only been like 3 months).

Tried to explain ive been depressed and slammed at work but nah. So they had a party for me today and i felt pressured to drink and eat the cake which gave me the nastiest gall bladder attack, been having pain for 3 hours now. Meh

Everyone has their 2c about how to invest this money lol. My lol grandma said the only way is to STAY OUT OF THE STOCK MARKET! And to invest in california property. Lol.
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Old 01-28-2019, 12:18 AM   #4428
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Re: Jmakinmeangry's debauchery and general idiocy blog

When the average person thinks stock market they are thinking gambling on single stocks, day trading, etc.
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Old 01-28-2019, 12:22 AM   #4429
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Jmakinmeangry's debauchery and general idiocy blog

No, she knows about this stuff. I told her about the types of investments out there and she started screeching about how hers lost $250k this last few months. Well, yea, the marketís on a dip.

Then I tried to explain to her investment strategies for a 30 year old are different than for a 72 year old and promptly gave up
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Old 01-28-2019, 12:26 AM   #4430
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Yesterday was honestly probably the worst few hours of my life. I love her but man she doesnt know when to let up. It doesnt help that I just had a major session with my therapist about how I shouldnít feel bad for not wanting to be around my family all the time and I need to stop feeling guilty about it. Then after that, and the visible tenseness of some family around me today, and meh.

For example sisters husband didnt show, asked for the phone to be passed to my uncle and not to me, and didnt offer an apology or anything lol. They blamed the baby but it was super obvious he wasnt coming. Guess the secrets out i think hes an asshat and itís finally mutual.

My other sister left without saying bye to me. The whole day felt kind of forced because it was. Iím not super attached to these people and you know what theres nothing ****ing wrong with it and if it makes me an ******* so be it
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Old 01-28-2019, 12:29 AM   #4431
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The worst ****ing part is i tried to explain to my sister and my grandma that ive been extremely depressed and it is hard for me to reach out to people under normal circumstances. Throw not feeling well in there and thereís just no way. They didnt get it at all. I dont tell them about this stuff usually but it felt necessary and the reaction was just poor and not understanding.

I STILL made an effort over the holidays as best as i could. But dinner times got switched around and i got double booked and had to pick the things that i said yes to first. Jfc.

I always have and always will be a black sheep in this family. They are all extremely religious and conservative. I very obviously am not. Why force it because weíre related? I have nothing in common with these people
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Old 01-28-2019, 02:49 AM   #4432
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Re: Jmakinmeangry's debauchery and general idiocy blog

Either your grandma's invested in some risky ass **** or she is fairly well off and should be aware that at her level of wealth, 250k loss is merely normal market gyration.
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Old 01-28-2019, 12:55 PM   #4433
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Jmakinmeangry's debauchery and general idiocy blog

I think maybe a combination of both, a lot of portfolios Iíve been looking at lost about one or 1 1/2% in the last few months. I would be shocked if she had 25 million wrapped up in the markets but who knows
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Old 01-28-2019, 12:58 PM   #4434
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One thing Iím concerned about is taxes. My uncle swears up and down that their tax attorney says taxes were paid when everything was liquidated and put into my account, so I have already paid my tax liability and I donít need to worry. He said the trust was purposely set up that way. I would like some hard proof other than his word though and I didnít really know how to say that to him without insulting him, but I think I insulted him anyway. So Iím going to call the tax attorney but I donít really know what questions to ask
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Old 01-28-2019, 01:10 PM   #4435
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Jmakinmeangry's debauchery and general idiocy blog

This is what Iím reading from a simple google search:

Quote:
When a trust beneficiary receives a distribution from the trust's principal balance, he does not have to pay taxes on it: The Internal Revenue Service (IRS) assumes this money was already taxed before it was placed into the trust. Once money is placed into the trust, the interest it accumulates is taxable as income, either to the beneficiary or the trust itself. The trust must pay taxes on any interest income it holds and does not distribute past year-end. Interest income the trust distributes is taxable to the beneficiary who receives it.
This sounds like what Iím hearing. Itís just unfathomable to me I can just take this amount of money without some government entity taking a bite out of it.

The account wasnít really collecting interest and if it was I assume my uncle took care of that because he was managing the trust.
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Old 01-28-2019, 01:28 PM   #4436
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Re: Jmakinmeangry's debauchery and general idiocy blog

Ask for the tax basis for each investment in the trust. This will tell you what, if any, capital gains would be taxable if you were to sell out of anything. Some estate planning methods / estate tax applicability would mark the tax basis to current value, some leave them as is, so there isn’t a blanket answer to this question.
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Old 01-28-2019, 01:40 PM   #4437
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Re: Jmakinmeangry's debauchery and general idiocy blog

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Originally Posted by jmakin View Post
Itís just unfathomable to me I can just take this amount of money without some government entity taking a bite out of it.
It's just like a straight-up estate distribution. The government takes it's share before it ever gets to you.
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Old 01-28-2019, 01:46 PM   #4438
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Re: Jmakinmeangry's debauchery and general idiocy blog

That is possibly incorrect with trusts involved.
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Old 01-28-2019, 02:33 PM   #4439
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Re: Jmakinmeangry's debauchery and general idiocy blog

My understanding is the trust was funded from an estate (with cash?). So the bulk of what he just received - with the exception of any investment results/interest earned from the date of funding - should be tax-free, no?
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Old 01-28-2019, 02:46 PM   #4440
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Yes, in that case.
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Old 01-28-2019, 03:15 PM   #4441
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Re: Jmakinmeangry's debauchery and general idiocy blog

I have about 200 pages of trust documents to review again but from my understanding that is the case
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Old 01-28-2019, 07:33 PM   #4442
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Re: Jmakinmeangry's debauchery and general idiocy blog

I see a lot of 60/40 funds with moderate risk that I kind of like. The thing is I really do believe we're headed for a stock market crash in the next 1-2 years. Volatility is way up. I'm kind of reluctant to invest in funds with a heavy stock component.

I think for now I'm gonna open a 2.70% CD, park all of the money in there for 12 months, and reevaluate a year from now. It'll prevent me from making any stupid decisions and I get to see how the market's gonna be. I know in 10 year timeframes I can basically throw a dart at a board and probably do well even with the high risk investments, but taking a huge hit in the next 1-2 years would be hard for me to deal with and probably lead to stupider decisions.
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Old 01-28-2019, 07:37 PM   #4443
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Re: Jmakinmeangry's debauchery and general idiocy blog

This one topped my list:

https://investor.vanguard.com/mutual.../profile/VBIAX

It's really heavy on FANG stock which I like.
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Old 01-28-2019, 08:57 PM   #4444
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Jmakinmeangry's debauchery and general idiocy blog

I also broke down my budget and Iím taking in about three grand more per month than what my expenses are even when I budget for extremely heavy consumption of stuff I donít need. I could easily bank 2000 a month in savings which Iím going to start doing immediately. Going to watch my spending a little more closely than I have been.

Itís seriously amazing to me how I went from being completely broke not that long ago to the situation I am in now.
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Old 01-29-2019, 11:13 AM   #4445
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Re: Jmakinmeangry's debauchery and general idiocy blog

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Originally Posted by jmakin View Post
I see a lot of 60/40 funds with moderate risk that I kind of like. The thing is I really do believe we're headed for a stock market crash in the next 1-2 years. Volatility is way up. I'm kind of reluctant to invest in funds with a heavy stock component.

I think for now I'm gonna open a 2.70% CD, park all of the money in there for 12 months, and reevaluate a year from now. It'll prevent me from making any stupid decisions and I get to see how the market's gonna be. I know in 10 year timeframes I can basically throw a dart at a board and probably do well even with the high risk investments, but taking a huge hit in the next 1-2 years would be hard for me to deal with and probably lead to stupider decisions.
Here's the thing - stock prices increase (and therefore future returns decrease) with investor sentiment. What that means is that those times you feel most confident, you're likely to be purchasing at a relatively poor price. Those times when you're most bearish - when you're most tempted to wait - are those times that you're likely to be purchasing at a relatively good price.

Now, your proposed plan - park it in a CD, earn ~3% for a year - isn't at all terrible. But the general mindset of, "I'm only going to invest in the market when I feel like it's good timing" is a bad one. It's well-documented that individual investors' market timing decisions hurt their performance.

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Originally Posted by jmakin View Post
This seems like a perfectly reasonable fund - a passive 50/50 balance between stock and bonds, with an extremely low expense ratio. Totally fine choice!

Quote:
It's really heavy on FANG stock which I like.
NO - this is a bad attitude imo. You do not want to evaluate funds based on their individual stock holdings - picking individual stocks (for the vast majority of people) is a losing game. Your attitude should be "This fund is heavy on stocks with large market values, because I'm simply trying to invest in a proportionately-balanced share of the entire market without actively trying to identify which stocks are over or undervalued."

The only reason this fund is heavy on FANG stocks is because those stocks make up a relatively large % of U.S. stock market value. The fund is heavy on Berkshire Hathaway, Johnson & Johnson, and JP Morgan for exactly the same reason. This is not at all a fund that has an unusual weight on FANG stocks, and I think that's a good thing.
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Old 01-29-2019, 11:41 AM   #4446
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Re: Jmakinmeangry's debauchery and general idiocy blog

Rather than invest all at once, invest equal amounts monthly or quarterly or semi-annually so you dollar cost average.
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Old 01-29-2019, 01:07 PM   #4447
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Re: Jmakinmeangry's debauchery and general idiocy blog

For a lump sum?
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Old 01-29-2019, 01:47 PM   #4448
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Re: Jmakinmeangry's debauchery and general idiocy blog

If I had to guess, I'd agree with you that stocks are probably due for a healthy bear market in the next couple years. The thing is, I and a lot of other people were guessing the same back in around 2014 and the market has doubled since then, so I'm glad now that I didn't act on that guess. Sure, you could say that means that we're really due for an even worse crash now, but no one really knows.

For example, someone might have thought the same in early 1997 after the market had more than sextupled over the previous 15 years and P/E ratios were near all-time highs, but even after multiple major crashes and recessions since, we've never fallen back below that point again. Someone who was waiting for the crash to happen so they could buy in at cheaper-than-1997 levels, which might have seemed perfectly reasonable at the time, is still waiting today, while the market has more than tripled without them.

Just something to think about. You might guess right and look like a genius, but the market is notoriously hard to predict in the short term and timing is a bad habit to get into.
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Old 01-29-2019, 02:04 PM   #4449
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Jmakinmeangry's debauchery and general idiocy blog

Yea i mean the market had a pretty terrible 2018 and this portfolio only dipped a little bit. Iím probably losing money by not getting in now.

Is it wise to put 100% into an investment like this?
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Old 01-29-2019, 02:17 PM   #4450
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Re: Jmakinmeangry's debauchery and general idiocy blog

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Originally Posted by jmakin View Post
Yea i mean the market had a pretty terrible 2018 and this portfolio only dipped a little bit. Iím probably losing money by not getting in now.

Is it wise to put 100% into an investment like this?
Once you decide how you want to allocate between short-term funds (savings account and CDs) and long-term funds that you don't expect to touch, it's totally fine to put 100% of the second category into that investment.

I'm a little ambivalent between the idea of:
Choice A:
30k in savings/CDs
100k in a 50/50 stock/bond fund

vs.

Choice B:
80k in savings/CDs
50k in a 100% stock fund like VTWSX

but the difference is probably more psychological than financial.
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