41–50 of 73 posts
was in similar position -- rolled all previous employers into vanguard IRA, self directed; VTI, NVDA, JPM, COST, MRK... have not regretted decision to take direct control
I might sound like a bad idea to hold bonds so far from retirement but it can sometimes work out better than solely index funds. If the market crashes you'll be heavy on bonds and able to buy the dip when you rebalance. Check this out: https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Lar...
If the market crashes. My expectation is for the S&P to keep going up to the moon. Maybe with a brief crash at some time, but it's got an entire Congress worth of corruption behind it now. Never bet opposite of people with the power to influence the outcome. Look what happened with COVID: it crashed, but then politicians immediately and for a long time printed a shitload of money to make it stop crashing. This is the…
My 401K as of this moment: Traditional 401K: 100% GME Roth 401K: 100% IBIT/FBTC (bitcoin ETFs) This is not investment advice, but my general rule is to use 401Ks and IRAs for, high-risk, high-gain, short-term, tax-inefficient trades. My traditional 401K is mostly unvested company match. If GME crashes and I lose all of it, bleh, I change jobs earlier, no big deal. If GME skyrockets, I sell, then stay at my current co…
> I believe there is a high chance in BTC going up drastically more in the next 1 year, in which case I'll sell and the government can't lay their rotten hands on a penny of it. If BTC crashes due to some short term economic crisis, I'll just hold until it goes back up some time in the next 25 years, which I believe is nearly certain. curious why you think this?
Even if that cyclic behavior breaks, I think the US economy and foreign policy is so unhealthy right now that BTC is widely becoming a new store of value across the world. It's a lot easier to deal with than gold.
You can believe otherwise; I'm not here to argue, convince, or be convinced, for or against BTC and I'm not a crypto-nut. I'm just de-dollarizing and hedging against uncertainties in the US economy.
If I lose all of it, it's no big deal as my actual retirement fund isn't my 401K, I just use 401K/IRA to churn tax-inefficient high risk stuff.
None of this is investment advice. Do what you believe, I'm just stating what I do.
Important to note I still have, if I'm lucky, 35 years or more until retirement. I'm betting the value factor premium will re-emerge at some point during that time. As I get closer to retirement I'll rotate into more broadly diversified/conservative stocks, but I see little point in holding bond funds in a portfolio for my situation.
That's not to say I won't own bonds outright when it makes sense. A good chunk of my security fund is in T-Bills and I-Bonds. But I can say from having lived through market downturns that I don't panic-sell, so the "portfolio stability" argument for bonds is largely wasted on me. In retirement I plan to keep a multi-year cushion in a Federal Asset Money Market account (to avoid state/local taxes) and the rest 100% stocks to maximize total long-term returns.
I'm a recipient of modest generational inheritance myself, my grandparents were dirt poor, my parents made it to upper middle class. It's part of my job to keep the generational snowball rolling for my kids and (hopefully) future grandkids. Particularly if wealth inequality isn't going to get any better.
Earlier quoted context omitted.
If the market crashes. My expectation is for the S&P to keep going up to the moon. Maybe with a brief crash at some time, but it's got an entire Congress worth of corruption behind it now. Never bet opposite of people with the power to influence the outcome. Look what happened with COVID: it crashed, but then politicians immediately and for a long time printed a shitload of money to make it stop crashing. This is the…
S&P 500 has those with nukes behind it. That is all that matters, so 100% VFIAX.
The only thing Fidelity couldn't do was way back when I wanted a Solo 401(k) that permitted loans, but they didn't have a prototype plan for that, so I would've needed to find&pay someone else draw up the plan document, to hand to Fidelity.
Fidelity even has HSAs now, and very convenient to buy&sell within them, without the headaches and ridiculous investment options like I had with two other places.
They have most any kind of fund I was aware of. But lately I just stick with the simple low-expense-ratio total-market iShares ETFs, like ITOT/IVV, AGG, IXUS, which have only a negligible fee upon selling. (IIRC, you can also get the Vanguard funds at Fidelity, but my backtesting of ITOT, etc., against Vanguard counterparts looked like they were equivalent.)
Cash in accounts can be moved automatically to/from funds like FDRXX (4.99% yield) or SPAXX (4.96%), and my bank-like Cash Manager account uses an FDIC deposit sweep (2.72%).
Fidelity can do almost everything, and I consolidate there whenever I can. (And an employer's non-Fidelity/non-Vanguard 401k service is actually a reason to look forward to leaving the company, so that I can roll over my 401k treasure to Fidelity.) The only thing Fidelity couldn't do was way back when I wanted a Solo 401(k) that permitted loans, but they didn't have a prototype plan for that, so I would've needed to…
If you are self-employed, you can also consider a SEP-IRA, which has similar limits. The only downside is it is only available in traditional flavor, no Roth. You can roll it to a traditional IRA and then do a Roth conversion though.
Fidelity can do almost everything, and I consolidate there whenever I can. (And an employer's non-Fidelity/non-Vanguard 401k service is actually a reason to look forward to leaving the company, so that I can roll over my 401k treasure to Fidelity.) The only thing Fidelity couldn't do was way back when I wanted a Solo 401(k) that permitted loans, but they didn't have a prototype plan for that, so I would've needed to…
> Solo 401(k) If you are self-employed, you can also consider a SEP-IRA, which has similar limits. The only downside is it is only available in traditional flavor, no Roth. You can roll it to a traditional IRA and then do a Roth conversion though.
I've heard mixed things about doing backdoor Roth from SEP IRA.
Vanguard's target date retirement funds furthest from retirement do not have a 100% stock allocation simply because studies have established that a 90/10 stock/bond portfolio outperforms a 100% stock allocation.
This sounds reasonable and I’m with you, but compelled to ask, which studies, can you provide links? Knowing those sources could help us find more recent ones citing them, and see how this strategy has held up over time. Here’s one: [1] https://www.mdpi.com/1911-8074/14/9/409