You can withdraw when you retire.

Yes. The Roth IRA satisfies those requirements

Does anyone know what happens to a pension plan if you leave your company? I have a cash balance plan (I've been with the company for 7-8 years) and i'm just wondering what would happen to that money if i left?

My guess- I could roll it over to another retirement type account and not be penalized however would have no ability to touch money (which is kinda lame) without being hit with a penalty. IDK though if I would be able to roll it over to another account but just want to see if thats standard- the money is contributed by my company and I earn interest on a monthly basis on the sum (rate might be 3-4% which is terrible vs investing in stock market and taking on some risk).

I have no plans to leave my company in the near future however just wondering what would happen to this money bc its quite a solid sum and I think having to leave it in current plan would be a massive loss of potential earnings. basically I would rather take variance swings and get 7-10% return per year vs keeping it at a safe 3-4% growth pattern per year.

You can borrow up to $50K from a Solo 401k.

I have $50 to invest every month.
Where do I put it?
Which platform do I use?

I think I sent you a DM a while ago. Happy to help you get started if you want.

TLDR:
How bad is a 80% VOO, 10% QQQ (both generally long-term holds), 10% other (usually trying to swing trade AAPL, MSFT, NVDA, potentially some biotech) portfolio?


Other info:
-2021 has been my first year trading

-I had a lucky start with AAPL MSFT and NVDA and have realized positive pnl on all.

-Then I tried to learn TA, and generally think it's 90% BS but still learning.

-Now I'm more focused on learning to somewhat build half-reasonable cash flow models from the quarterly SEC fillings, so I may potentially have some basis for specific stock selection over a given timeframe, and additionally, I'll try to learn what relevant factors exist (interest rates, credit expansion/contraction, reflexivity of the markets etc.)

This could end up being a large waste of time but it will probably be a project for the next year or so.

-I doubt a have a skillset at this point to beat generally holding the S&P500 (I know past performance =/= future), but at this point is a overwhelmingly indexed allocation likely best?

-Also I trade crypto as well but am down -30% for a small amount and not really considering adding to that exposure until I think I'm +EV.

Thanks!

If the trading portion of your account isn't beating QQQ, you lost potential money. If you beat it, then figure out your hourly rate trading using the difference between what you made and what QQQ would have made. Then subtract your crypto trading losses and figure out what your actual hourly rate is from all trading.

Doing something is not a productive use of your time if you could have made more money doing nothing.

Then, most likely, find a less costly hobby to keep yourself busy. You could learn chess or take up bowling or something to pass the time.

Indexing is probably your best bet unless you want to diversify among various factors, such as momentum, value, etc. and across some other asset classes. There are pretty cheap ETFs to do that, but over the long term (the only thing that matters unless you need to make money over a shorter period for a liver transplant) it is pretty much a guess which will work out better for you.

Hey,

You raise very solid points that I've had in the back of my mind.
I'm certainly guilty of trying to force progress (trades) that yield negative results (or an incredibly poor hourly), so I'll try to use my brain more and hopefully proceed somewhat intelligently, which may result in doing less, more often than not.

Thank you for taking the time to write that.

Have 300K, where to invest in stock market? No stupid answers, please, I'm genuinely seeking advice.

I've always been a fan of Greenblatt's approach:
https://www.magicformulainvesting.com/Home/AboutTheBook

Index funds in an allocation to meet your risk profile / timeframe / allocation desire.

A Target Date Fund would also be a fine default choice.


You'd need to provide more details about your financial situation / plans / risk profile for a better answer.

im so sorry, mods. I need glasses. Delete that other thread. ****, i need to come here more than once every 6 years to understand ****. Anyways... if you had 60k, what is your path to making some kind of monthly income for a while off this money? I'm almost done these courses with RIO and pokercoaching. I'm diving in to bigger tournaments soon, so this money is almost predictable in some form. Within the next 6 months. LOL. I just want my brother to have some money to go with his minimum wage job. He has problems, but he's fine, but some things are harder. You know? I want to get him even a little bit of money to most people. Like a fancy hamurger for doug polk. LOL. 3.5k a month off 60 for at least 4 years. Is that feasible? I know NOTHING about money. Nothing. LOL. Doctors stole 12 years from me. 23-36. LOL 13! Damn. 13 years destroyed. LOL. ****

Not even close to feasible. 3.5k annually sure

I’m 90/10 VTSAX/VBTLX

I’d like to tilt a little to get better returns. I’m thinking putting about 10% in either VGT. VUG, or MGK for long term.
Should I just stay the course I’m on?

Anyone have thoughts on QYLD? I opened up a position primarily as a inflation hedge of sorts in my IRA. Seems like the price has been stable for quite some time and a big fat dividend... what is the downside?

parents want to put a chunk of their retirement fund into annuities because they don't want to have to worry about their finances

they have regular retirement account, max social security (both waited as long as possible to let it kick in for higher monthly payments), they own multiple properties which they could rent or sell if they needed money, they also have full health insurance that covers everything with no caps and is for the rest of their lives (job benefits are +ev yo) so they aren't going to face medical debt and this is more of a hedge of markets and real estate both crashing in their lifetimes - which i think is kinda silly

main issue is they are looking at it in terms of "at least one of us needs to live x years in order to recoup the principal and then it's like free money"

I explain that if they invested the principal and then after x years it was the same amount and didn't go up that'd be a terrible investment

so i'm trying to show them what they would have by not annuitizing, created several spreadsheets showing the difference, that they'd need to live x amount of years in order to break even and y in order for the annuity to be better than not doing it

but they keep on going back to the "guaranteed income" aspect, which is puzzling because frankly if we took the amount they wanted to annuitize and flushed it down the toilet they'd still be just fine

thinking of giving up this quixotic fight against losing ev but wondering if anyone else itt had to deal with similar issues with their olds and how they went about it

they are in their early 70s, both think they'll live into their 90s obv

You did your part with the spreadsheets, so your work is done.

It is traditional to badger them about it constantly over the coming years until they stop answering your calls and inviting you for the holidays.

It has underperformed QQQ by quite a lot. Underperformance is not as good as outperformance.

It also hasn't had a stable price "for quite some time." It got crushed last year.

Throw a hail mary and link them to Dave Ramsey's advice on annuities on youtube.

Since America doesn't have a good system for long-term care please do yourself a favor and research asset protection and how to protect their home value from Medicaid recouping nursing home costs, and take them to an estate planning and asset protection attorney if they don't believe you. You could lose your entire inheritance to the cost of assisted living and nursing homes. Even if an elderly person is healthy now, all is takes is one fall to break a hip and then need a nursing home.

Medicaid does not pay for assisted living at all, and it only pays for a nursing home if the person has less than $2k in the bank. Whatever income your parent has goes to the nursing home except for about $20 per month and then Medicaid pays the rest of the nursing home bill each month. Then Medicaid recoups the nursing home costs from the sale of the home either before or after death.

Medicaid has a five-year look-back period so if your parents give everything to you now and then need a nursing home within five years, Medicaid treats it as if it was never gifted to you. I think some people use irrevocable trusts too.

Sometimes people hold back some money so they can begin to pay the nursing home as a private pay patient. Some places let patients stay as Medicaid patients when their private pay money runs out and other places kick them out. Some nursing homes do not accept Medicaid. Other nursing homes have some beds reserved for Medicaid patients (that they get paid around $8k-$10k per month for) and other beds for private pay patients (that they charge around $10k-$12k + per month). So if the nursing home you want doesn't have an open Medicaid bed then you can't get in unless you're private pay.

Long term care insurance is expensive and doesn't pay out very much so that's not a great option either.

This is also something you might consider in your search for a wife. If she can help you take care of your parents later that can save you hundreds of thousands of dollars in assisted living costs.

Also please research how to avoid probate and why everything should be in a living trust (and not a will, even though lawyers will tell you a will because they make more money from probate) so you don't lose a year and have to pay high probate costs. You can write your own trust using software or books if you don't want to pay a lawyer.

appreciate the cross thread reference, fortunately my parents have lifetime coverage up the wazoo that has everything from live in nurses and other assisted living to standard nursing homes and hospice etc - got it from their employers and it's rock solid so me and future mrs roll can just spend our monies losing sports bets and traveling

this is solid advice, when grandmother passed probate took two years, problem with olds is they are very trusting - i totally get how olds get scammed so easily right now, my parents literally trust every salesman in the world - "rickroll, but the guy who had a financial incentive to sell us this product said it would be a good purchase" is something i hear a lot

like with their worthless financial advisor they were like "he has fiduaciary responsibilities he legally has to steer us in the optimal path" and I had to correct them that no, you're just an account number and he wants to collect his fee and move on to the next one as fast as possible and by fiduciary that only means he isn't legally allowed to steer you into investments where he gets compensation from the investment as a finders fee - it doesn't mean he will work hard to find your optimal decision, he just can't get a kickback on whatever you do or knowingly point you into a ponzi scheme etc

turns out that i did win the annuity battle and they are no longer doing that, the thing that drove it home was I offered to act as their bank where they figure out what they would have gotten and earmark that account for me and then i give them monthly payments of that amount - it was only then that they realized i wasn't just playing with numbers but they were leaving real value on the table by doing that

So I wish to invest say 25% of my net worth in an index fund with plans to fund it yearly. My plan was to put the money into SWPPX which has a .02 expense ratio with a plan for it to grow say 8-9% yearly. I'm open to the swings - I know there are some losing S&P 500 years but overall would be in it for the longrun. Does this make sense? I figured it's terrible to have this money sit in a bank account otherwise.

Totally fine strategy if that's the way you go.

I personally use something more diversified than just S&P 500. Maybe consider a total stock fund (Vanguard's is VTI) or total world stock fund (Vanguard's = VT). That just gives you more exposure to US mid/small cap and to International. My largest personal holding is VT.

Got it. I'm basically looking for an investment that requires little to no work - I've looked into multi families but the amount of time required is not worth it in my opinion. Ultimately I'd like to keep say 100-200k liquid, and put the excess into s and p.