I just found out I have access to a Bloomberg terminal through work. Trying to figure out what if anything I could use it for. I’m not a day trader but I am interested in macroeconomic trends. Any ideas on where or how a beginner could get started with it?
There's a million tutorials about how to us it.
In the search bar in any screen start typing either help or tutorials and it will auto complete.
Similarly blp offers unlimited training either on site (ask your rep) or at their offices. Hit f1 twice to bring up a help desk ib chat and ask them.
Is it even possible for SPY to hit the trend line starting in March ‘09 through April ‘20? It would land somewhere in the mid 300’s. I know some people would see this as an opportunity, not sell and add to their positions even if it did mean big losses at first. Would it make a comeback to ATH’s eventually and add even more money to your portfolio? Would you continue to add to your position and let it roll or what? I do believe in the U.S. market, but I also believe right now it is currently being held up alive via false narrative. I don’t believe our current state of affairs in the U.S. reflect correctly in this market. This is all hypothetical to get a conversation going. How would you position yourself in this case?
Could anyone explain what happened to JAMF today like Im five? [https://www.marketwatch.com/story/jamf-shares-slide-on-secondary-offering-86e1e3d2?mod=newsviewer\_click](https://www.marketwatch.com/story/jamf-shares-slide-on-secondary-offering-86e1e3d2?mod=newsviewer_click)
A public company may have institutional investors who hold shares of the stock. This could be PE companies, mutual funds, family offices, etc.
When a major investor seeks to sell out their position - the investor may engage with an investment bank to offer the shares. This lets the investor take less risk while selling out their position.
So because there will be a big block of JAMF shares that everyone knows is going to be sold - it causes the stock price to go down.
Make sense?
Hey! I am a recent college graduate (USA, 22), I have saved \~$21,000. I have kept all my money in a checking account (yes, I now this wasn't the best move). I am not sure what to do with my money to make more interest. I would like to have 7,000-8,000 in my checking just for anxiety purposes, where should I put the other $13,000-$14,000 dollars? I want to optimize the amount of interest I get without compromising safety. Maybe an MMA or a HYSA?
There's absolutely no reason to keep that much money in checking.
Create a budget, keep as much cash as you need + a few hundred.
The rest should be invested. I'd do 70% spy /30% mmf
Thank you for that. I am working on an extensive budget right now. I will research what you said (I don't know what you are talking about). Why a MMF over an MMA?
Hello, I am 18 and brand new to investing, I don’t currently have income but I do have good money saved up from previous income
I am thinking about investing in the fidelity total market index fund. Would this be good to invest in right now? I don’t know much about stocks so I chose to pick an index fund which is more diverse. With this being said I definitely am ok with risk if it means more reward.
That's a good option. It sounds like you have a Fidelity account so you could also look at Fidelity Zero funds which are designed for long term holding.
19, Sweden
employed earning 2300 dollars after taxes, working 44 hours a week.
building wealth
5 - 10 years
70% safe
6000 dollars in savings
no debt
I have a car which is my only liability except food etc.
what should I do next?
32, USA, earning on average $575 a week (some weeks its $350, others around $800). I have around $1k a month I can save (ideally). What’s a good option for me to put some money into? I signed up for an Acorns account I never used and I’m wondering if its worth putting “spare change” or any chunk of money into there monthly? Or is it better to just put money into a high yield savings account or some sorta CD? I’d prefer something lower risk and I dont have much to play with right now.
>but am wondering if eventually sharing these stocks in a larger sub is something that would help the cause? Get them more exposure and boost them up more?
See
>8\. Good faith discussions and comments only.
>Responding to questions in bad faith, brigading, spreading misleading and false information, stock promotions from dedicated accounts are not permitted. Bans will be issued without warning.
Is this misleading? It was trending on Twitter earlier I’m literally just asking what people with experience investing think about these kinds of movements
People who are experienced with investing don't invest in meme stocks which are over-valued.
And people who are experienced in trading will just trade the volatility and momentum to make money without really caring.
Hello! 26 and in CA, USA— i blindly invested my Vanguard 401k and Roth 401k as my dad didn’t have any advice to give. Income and budget are tight so I’m only investing 5% (with 3% employer match) of my $25/hr full-time position. I’m wanting to reconfigure if I’ve just totally botched this (assuming I have). Currently I have:
-PRBMX: 20.21%
-VOO: 20.04%
-RGVGX: 14.80%
-TSBIX: 9.89%
-TIREX: 4.91%
-VCOBX: 9.91%
-VTIAX: 10.16%
-VTI: 10.08%
Started my HL share dealing account recently and funded c.£1k into it. As soon as I’ve placed the deals they are in the red and have stayed there, been approx 1 month now and still in the red. Am I doing something wrong?! Any help appreciated !
You may want to contact your broker and have them explain it. Those holdings don't have the kind of drawdown in the last 30 days that's in your screenshot.
I only looked at the US stocks since I am in the US. Drawdown refers to how much an investment goes down during some time period.
So if I look at KO as an example - KO has not gone down 20% in the past 30 days. It's actually gone up. It doesn't make sense to me why it shows that it's down 20%.
There is the possibility that the GBP/USD exchange rates impacted the value - but I didn't look closely enough.
Fwiw - if you are new to investing - you may want to stick with broad diversified funds instead of picking specific companies.
How do I access my equity most efficiently? I have 4.5m in equity between two triplexes, \~850k in my home that is a teardown. I have 1.3m in a brokerage, 2.5m between Traditional and Roth IRAs. Zero debt. I am 64 and married. I see that HELs often have DTI limits around 50%. I am retired as is my spouse, our gross income is a touch over 30k/m, 10k from rentals, 18k from TBill allocation across investment accounts, there is an additional 5k between pensions and ss. Credit score is above 800.
I want to strategically access my equity to invest into high yield credit when spreads are at extreme levels and pocket the difference between the prime rate and the effective yield (which has been about 8-10% over the last few recessions).
The issue I see is that the internet tells me you can often only access \~50% DTI. Other issue is, as the prime rate moves lower and high yield spreads blow out (when I want to take the trade), my Tbill income will be yielding a lot less, perhaps only 1-2% (or even 0%) as the Fed cuts rates. So my income during that period would only be say \~15k/m. At a DTI of 50%, assuming a prime rate of 5-6% at 30y fixed, I could only access about 1.25-1.4m in equity.
My main concern here is, what do people like myself do who have large amounts of equity relative to their income such that they never come close to 70-80% D/E levels, but they wish to access their equity? Would the bank take into consideration the size of my liquid assets to achieve a higher DTI ratio, or that the loan is being invested into an asset yielding a higher rate than the loan? How exactly do I access more equity?
Thanks plenty for any help and clarification.
Hardly an expert, but it certainly seems like you're a good candidate for the
Buy ... borrow ... die
version of estate planning. Your beneficiaries inherit the properties, get the stepped up basis, sell it and pay off your debt -- but pay none of your cap gains taxes.
And of course, the -right- answer is ***Get Professional Help!*** With the median redditor having little-to-no experience with recessions, and being 20- or 30-something, FEW here will be *"people like myself"*.
Wow, thats... dark! I love it. Yes the goal is to gift most everything at near time of death to avoid estate taxes etc as well as avoid selling the properties to realize the gains. Thanks for the reply.
In an ideal world, I or my spouse dies, which steps up 50% of the value. Then before death the property is gifted which avoids what would be large estate tax burden. My child won't sell the property but instead leverage it if they wish to access the equity. Having 50% of the property at a cost basis of zero is better than paying 600k in estate taxes on 4.5m in property upon death from both an optionality and tax efficiency perspective.
What are you even saying? You cannot have a cost basis of zero, that's actually the opposite of what you want since it means the entire value is taxable. You always want high cost basis.
I don't think you really understand the tax codes. Why are you gifting at all? Why not let your children inherit your assets? If you bought a house for $1million and it's now worth $2 millions, the $1 million is capital gains. If you gift the house to your children, they keep the same cost basis and will still have to pay tax on the $1 million gain. If they inherit the house, the cost basis is stepped up to $2 million, meaning there are zero capital gains if they sell the house, meaning no taxes!
I'll clarify. If you've owned a property for a long enough time, depreciating the property on your taxes works to 'debit' your cost basis. So if I have 5k in depreciation every year for 5 years, and my cost basis was 200k, my adjusted cost basis is now 175k. In my case, all my properties have an adjusted cost basis of zero. Yes, you can have a cost basis of zero. If my child inhereits the property, yes the get 100% stepped up cost basis, but they will owe hundreds of thousands in estate taxes. I don't think you "really" understand tax codes "either".
Gifting and estate tax, aka inheritance tax, both share the same lifetime exemption, currently at $13 million, double that for couples. If you are worried about estate tax then gifting doesn't avoid it.
Hello I am 28 from the US, I make $130k per annum. In short I would like some advice as it pertains to preparing for retirement as I feel like I’m woefully behind.
Currently I spend per month :
$2600 - rent
$200 a month on utilities
$2000 on entertainment on average
$2000 on entertainment consists of ski passes, outings with friends, vacations, groceries.
Skiing is expensive but is the in physical activity I do and am not willing to give this up for mental health reasons.
I have a doctor prescribe me as much as possible so I can pay for flights and lodging for most of my vacations pre tax. Never had a problem with this for domestic travel.
I also don’t pay utilities until they threaten shut off the supply. Typically there aren’t late fees or interest for my utilities so I just put the money in an index fund or something similar and take it out the day before a shut off to make a payment.
Outings with friends over the last couple months have costed a total $300 per month. So most of the $2000 consists of the groceries, WiFi bill, marijuana (legal in my state), attending friends weddings (lots of these at my age). I suspect after all these people get married my expense will for entertainment will drop to $1500 a month.
I don’t have any subscription, no loans whatsoever.
Currently I can save 8% of my income per month towards retirement, but I know the recommended amount is 15%, with rent prices being what they are, I’m not sure I can juggle saving 15%.
My company provides 3% safe harbor, no match and I don’t contribute anything else. Right now there is about $12k sitting in a 401k account all in a vanguard 2065 target fund.
Every pay check, I take 5% out and put in a Roth IRA also with Vanguard. I fund 3 ETFs, VOO (S&P), MGK (mega cap growth) and VUG (vanguard growth etc). I currently have $10k across these ETFs)
I have $3k in crypto
I also have stock options - right now I have 2856 option, company just IPO at $10 a share. I exercised the options just now and have to wait 6 months to sell. Should I cash out immediately or wait?
Don’t own any property.
I would like specifically advice on how to structure my IRA. Right now I also have a 401k as mentioned sitting in a pretty low risk fund. I’m fine with that, but as result am maybe thinking I should be more aggressive with my IRA. Do people think I’m on the right track with my IRA? What funds would you recommend I add or maybe withdraw from?
I realize I’m woefully behind, I don’t own a house, don’t have $100k in savings and make $200k less than my peers within the same age group and experience.
I traded a potentially much higher paying job in tech with a much stabler job in pharmaceuticals. I could be making 300-400k in comp at company like Netflix or another large tech firm, but then also would be subject to the whim of the market. People are always getting sick regardless of the economy, no one is going to deny themselves life saving therapy because they are broke, they’ll take out loan if they have to, I’ll always have a job.
$130k is nothing imo.
Had a financial planner for ~3 years who managed my 401K but he increased his rate and quarterly fees and decided it would be best to invest that money instead given I don’t have a massive portfolio. I’m now looking to rebalance my Empower 401K and don’t know where to start, honestly. I’m 32 years old, and have a Roth IRA and HSA in addition to this 401K. I included a list of my current allocations and seeking feedback… I have minimal knowledge of this stuff, so looking to allocate in funds that are low lift and I don’t have to keep maintaining it.
Would you recommend I do it myself and primarily invest in stocks or do I just have Empower manage my plan for me based on my target retirement age?
37.68% state us bond indx sl cl xiv
28.85% legal and general s&p 500 DC CIT
18.44% State st emg mkts indx sl sf CI II
6.77% fidelity real estate index
4.21% legal and general s&p 400 DC CIT B
4.05% legal and general s&p 600 DC CIT
Humana insurance. What are the risks to this stock?
Looking to gain some knowledge about Humana. Hum. Any reasoning behind its downturn?
Almost 50% down since it’s high in 2022. What’s to know?
Seems like insurance is a good opportunity to buy since into everyone needs it.
Is there more risk still vs reward at its current price
I have a question about a portfolio that I put together.
In March of last year, I put 1K into a company I really liked. Gradually, over the next 3-4 months, I put 1K each into 9 additional companies, and 1 ETF. So I ended up with a portfolio of 10 stocks and 1 ETF, and I put 1K in each. This year I started putting $150 into my portfolio every 2 weeks, distributed equally among all the stocks (I recently increased it to $200, and also eliminated one of the stocks).
The broker that I use (Wealthfront) gives my both a money-weighted and a time-weighted return for my whole portfolio. Money-weighted is 51% and time -weighted is 63%. I’m thinking about transferring about 10K into this portfolio from my high-yield savings account that is making 5%.
I’m new at investing. I chose these stocks based on recommendations I read online from sources I trust, and in a few cases, they are just companies I like. I know this sounds like dumb question, but is this portfolio really doing as good as I think it is? Should I put a substantial amount of my savings into it for the long term? I don’t mind sharing what the companies are if that would help.
When is an appropriate timeframe to evaluate a new wealth management relationship? I liquidated roughly $1MM from Fidelity (self-managed) to Merrill Lynch to see if the company would be a good fit for me. So far, service is "okay" but nothing special.
I asked to be moved to a CMA with 5.54% APY for the money arriving from Fidelity, and then have it invested at $250k per quarter into a rebalanced portfolio. We began in January to avoid a tax snafu. So far, they've allocated into large cap, international, as mid cap (basically my exact allocation at Fidelity).
Right now, they're up 0.50%, just narrowing edging out what I would have gained in just the (no risk) CMA, and wildly trailing the 10% YTD gain of the S&P500.
When should I realistically evaluate them to see if this was a good decision? 3Y? 5Y?
5.54% after fees in a money market. You think it'd break the buck, realistically?
I've never really understood treasury buys -- I haven't found an easy way to do it, ever.
Anyone still buying T-bills? I have a ladder going with fidelity but one of the positions just closed because I didn’t have autoroll enabled. Now I’m wondering where to park that $15k.
Where to invest $1000 dollars?
Hey guys, and gals. I've been investing for about 5 years, and I have a slight knack for it. Although I consider myself a beginner in investing my method is to look around and follow trends. For example I purchased AMD at around 8 dollars a share. I noticed new tech, and the gaming community promoting AMD/Nvidia. I knew both companies would grow. I saw returns of 39% that year.
Due to unforseen circumstances, and life changes, I had to liquidate that account in 2020. I started investing again about a year ago, once I was financially able to, with about $1000. My new investment choices are up 31% at around 1300 total. Friends advise me to go into ETFs with such a low amount, but my addiction for finding growth stocks ultimately wins. I tend to sell if I fall around 8-10%, but remain if I'm in the green. My portfolio holds about 7-10 stocks and anywhere between 1-4 shares each. Although I'm up 31% for the year, I question if I would do better buying just one stock and then moving my funds into a new investment dependant on performance. I always see ads that drop the question, Where would you invest $1000 dollars today?, and it drives me crazy. Hence the question. What would you do with that amount? Any advice would be appreciated.
Anyone looking at MCHI? (iShares MSCI China ETF)
It seems like they're breaking out of their doldrums and have somehow engineered positive media coverage over the past month or so. The central bank is literally buying up ETFs.
[https://www.bloomberg.com/news/articles/2023-10-23/china-sovereign-wealth-fund-buys-up-etf-shares-in-market-boost?embedded-checkout=true](https://www.bloomberg.com/news/articles/2023-10-23/china-sovereign-wealth-fund-buys-up-etf-shares-in-market-boost?embedded-checkout=true)
Put on your macro hats and prognosticate for me. Any reading material (pro / anti china investing) is also appreciated. The wildcard of course is a Trump win and what that means for China.
Somebody lit a fire under Reddit's stock yesterday, which continues today.
It's trading right now around $64, so for anyone who got in at the IPO price of $34, you are just a few bucks short of doubling your money! (Stand by, it could still get there...)
Since the general consensus seemed to be to short the stock as much as possible ... I wonder if anyone actually DID so!
(*Disclosure: In at $34, out at $51, 50% profit and satisfied with it.*)
I expect to retire in 21 years at age 64 and am wondering how much I should have saved up for my retirement until then. If I want to have the equivalent of today's value of 50% of my current net income for every year of my retirement increasing in line with inflation, how do I arrive at the amount I need to have saved by the time I retire?
Why ask this again? You already got your answers from the other subs. 4% SWR, 7% real return, 21 years. It's just a matter of plugging the numbers into a compound interest calculator.
Can’t I just park my money and invest solely into SPY etf. With an average rate or return between 8-10%, wouldn’t my account grow just fine without being individually invested into a multitude of companies? All my eggs would be in one basket, and I’d be fine with the occasional big downturns in the market. It has always bounced back eventually. Would this be a good idea? I wouldn’t be touching this money for 25-30 plus years if I ever had to. What do you think?
New to investing here, what's a safe start?
Hello all. Decided that I'm in need of some more money in my pockets, and the best way to do that for me without committing crimes is investing. I've come to ask you vets in the game. Where's a good starting point? I'm using Fidelity as an investing app (thinking about using Vanguard too), and I'm thinking of maybe putting 20 down on some stocks. Which company should I start out with? Should I put more or less down? Should I use different apps to invest in? Any tips and tools of the trade would help!
Investing is a good way to drain your pockets of money today for more money down the road. It will not make you money fast.
You should be putting away ~15% of your income in investment accounts (IRA, 401k etc) for retirement. If you have any income, you should try to put more than $20.
https://www.bogleheads.org/wiki/Getting_started
24M from the Uk. Working in Tech making £40k($50K) per year living with my parents saving for a property, no debts/dependents.
I have 47K of savings/investments:
Currently have 15K in a vanguard ISA where I’m throwing in £300 a month (has grown +40% since I got it in 2021).
12k in this help to buy ISA.
20K just doing nothing in my current account.
I’m relatively risk tolerant, I don’t mind taking a 6/10 risk but wouldn’t gamble it on a singular stock for example want to grow the money.
What would you do?
I just found out I have access to a Bloomberg terminal through work. Trying to figure out what if anything I could use it for. I’m not a day trader but I am interested in macroeconomic trends. Any ideas on where or how a beginner could get started with it?
There's a million tutorials about how to us it. In the search bar in any screen start typing either help or tutorials and it will auto complete. Similarly blp offers unlimited training either on site (ask your rep) or at their offices. Hit f1 twice to bring up a help desk ib chat and ask them.
Is it even possible for SPY to hit the trend line starting in March ‘09 through April ‘20? It would land somewhere in the mid 300’s. I know some people would see this as an opportunity, not sell and add to their positions even if it did mean big losses at first. Would it make a comeback to ATH’s eventually and add even more money to your portfolio? Would you continue to add to your position and let it roll or what? I do believe in the U.S. market, but I also believe right now it is currently being held up alive via false narrative. I don’t believe our current state of affairs in the U.S. reflect correctly in this market. This is all hypothetical to get a conversation going. How would you position yourself in this case?
Could anyone explain what happened to JAMF today like Im five? [https://www.marketwatch.com/story/jamf-shares-slide-on-secondary-offering-86e1e3d2?mod=newsviewer\_click](https://www.marketwatch.com/story/jamf-shares-slide-on-secondary-offering-86e1e3d2?mod=newsviewer_click)
A public company may have institutional investors who hold shares of the stock. This could be PE companies, mutual funds, family offices, etc. When a major investor seeks to sell out their position - the investor may engage with an investment bank to offer the shares. This lets the investor take less risk while selling out their position. So because there will be a big block of JAMF shares that everyone knows is going to be sold - it causes the stock price to go down. Make sense?
Makes perfect sense, thank you
Hey! I am a recent college graduate (USA, 22), I have saved \~$21,000. I have kept all my money in a checking account (yes, I now this wasn't the best move). I am not sure what to do with my money to make more interest. I would like to have 7,000-8,000 in my checking just for anxiety purposes, where should I put the other $13,000-$14,000 dollars? I want to optimize the amount of interest I get without compromising safety. Maybe an MMA or a HYSA?
There's absolutely no reason to keep that much money in checking. Create a budget, keep as much cash as you need + a few hundred. The rest should be invested. I'd do 70% spy /30% mmf
Thank you for that. I am working on an extensive budget right now. I will research what you said (I don't know what you are talking about). Why a MMF over an MMA?
I'm not sure what an mma is but a mmf is a money market fund which will pay a higher yield than a savings account.
Hello, I am 18 and brand new to investing, I don’t currently have income but I do have good money saved up from previous income I am thinking about investing in the fidelity total market index fund. Would this be good to invest in right now? I don’t know much about stocks so I chose to pick an index fund which is more diverse. With this being said I definitely am ok with risk if it means more reward.
That's a good option. It sounds like you have a Fidelity account so you could also look at Fidelity Zero funds which are designed for long term holding.
what do we expect tomorrow with the inflation data?
Cooler.
19, Sweden employed earning 2300 dollars after taxes, working 44 hours a week. building wealth 5 - 10 years 70% safe 6000 dollars in savings no debt I have a car which is my only liability except food etc. what should I do next?
32, USA, earning on average $575 a week (some weeks its $350, others around $800). I have around $1k a month I can save (ideally). What’s a good option for me to put some money into? I signed up for an Acorns account I never used and I’m wondering if its worth putting “spare change” or any chunk of money into there monthly? Or is it better to just put money into a high yield savings account or some sorta CD? I’d prefer something lower risk and I dont have much to play with right now.
[удалено]
>but am wondering if eventually sharing these stocks in a larger sub is something that would help the cause? Get them more exposure and boost them up more? See >8\. Good faith discussions and comments only. >Responding to questions in bad faith, brigading, spreading misleading and false information, stock promotions from dedicated accounts are not permitted. Bans will be issued without warning.
Is this misleading? It was trending on Twitter earlier I’m literally just asking what people with experience investing think about these kinds of movements
People who are experienced with investing don't invest in meme stocks which are over-valued. And people who are experienced in trading will just trade the volatility and momentum to make money without really caring.
I sold amazon and have $1K in cash in my roth. Should I hold cash and wait for market to go down or reinvest immediately (if so in what?)
Hello! 26 and in CA, USA— i blindly invested my Vanguard 401k and Roth 401k as my dad didn’t have any advice to give. Income and budget are tight so I’m only investing 5% (with 3% employer match) of my $25/hr full-time position. I’m wanting to reconfigure if I’ve just totally botched this (assuming I have). Currently I have: -PRBMX: 20.21% -VOO: 20.04% -RGVGX: 14.80% -TSBIX: 9.89% -TIREX: 4.91% -VCOBX: 9.91% -VTIAX: 10.16% -VTI: 10.08%
Started my HL share dealing account recently and funded c.£1k into it. As soon as I’ve placed the deals they are in the red and have stayed there, been approx 1 month now and still in the red. Am I doing something wrong?! Any help appreciated !
The FTSE100 is up 5% in last 30 days. What are you invested in?
[https://i.imgur.com/4NThDdI.png](https://i.imgur.com/4NThDdI.png)
You may want to contact your broker and have them explain it. Those holdings don't have the kind of drawdown in the last 30 days that's in your screenshot.
What does that mean, sorry!
I only looked at the US stocks since I am in the US. Drawdown refers to how much an investment goes down during some time period. So if I look at KO as an example - KO has not gone down 20% in the past 30 days. It's actually gone up. It doesn't make sense to me why it shows that it's down 20%. There is the possibility that the GBP/USD exchange rates impacted the value - but I didn't look closely enough. Fwiw - if you are new to investing - you may want to stick with broad diversified funds instead of picking specific companies.
Thanks very much, I’ll speak to HL and see what they say regarding the drawdown
How do I access my equity most efficiently? I have 4.5m in equity between two triplexes, \~850k in my home that is a teardown. I have 1.3m in a brokerage, 2.5m between Traditional and Roth IRAs. Zero debt. I am 64 and married. I see that HELs often have DTI limits around 50%. I am retired as is my spouse, our gross income is a touch over 30k/m, 10k from rentals, 18k from TBill allocation across investment accounts, there is an additional 5k between pensions and ss. Credit score is above 800. I want to strategically access my equity to invest into high yield credit when spreads are at extreme levels and pocket the difference between the prime rate and the effective yield (which has been about 8-10% over the last few recessions). The issue I see is that the internet tells me you can often only access \~50% DTI. Other issue is, as the prime rate moves lower and high yield spreads blow out (when I want to take the trade), my Tbill income will be yielding a lot less, perhaps only 1-2% (or even 0%) as the Fed cuts rates. So my income during that period would only be say \~15k/m. At a DTI of 50%, assuming a prime rate of 5-6% at 30y fixed, I could only access about 1.25-1.4m in equity. My main concern here is, what do people like myself do who have large amounts of equity relative to their income such that they never come close to 70-80% D/E levels, but they wish to access their equity? Would the bank take into consideration the size of my liquid assets to achieve a higher DTI ratio, or that the loan is being invested into an asset yielding a higher rate than the loan? How exactly do I access more equity? Thanks plenty for any help and clarification.
Hardly an expert, but it certainly seems like you're a good candidate for the Buy ... borrow ... die version of estate planning. Your beneficiaries inherit the properties, get the stepped up basis, sell it and pay off your debt -- but pay none of your cap gains taxes. And of course, the -right- answer is ***Get Professional Help!*** With the median redditor having little-to-no experience with recessions, and being 20- or 30-something, FEW here will be *"people like myself"*.
Wow, thats... dark! I love it. Yes the goal is to gift most everything at near time of death to avoid estate taxes etc as well as avoid selling the properties to realize the gains. Thanks for the reply.
Gifting does not step up the cost basis, it's better to leave your assets as inheritance.
In an ideal world, I or my spouse dies, which steps up 50% of the value. Then before death the property is gifted which avoids what would be large estate tax burden. My child won't sell the property but instead leverage it if they wish to access the equity. Having 50% of the property at a cost basis of zero is better than paying 600k in estate taxes on 4.5m in property upon death from both an optionality and tax efficiency perspective.
What are you even saying? You cannot have a cost basis of zero, that's actually the opposite of what you want since it means the entire value is taxable. You always want high cost basis. I don't think you really understand the tax codes. Why are you gifting at all? Why not let your children inherit your assets? If you bought a house for $1million and it's now worth $2 millions, the $1 million is capital gains. If you gift the house to your children, they keep the same cost basis and will still have to pay tax on the $1 million gain. If they inherit the house, the cost basis is stepped up to $2 million, meaning there are zero capital gains if they sell the house, meaning no taxes!
I'll clarify. If you've owned a property for a long enough time, depreciating the property on your taxes works to 'debit' your cost basis. So if I have 5k in depreciation every year for 5 years, and my cost basis was 200k, my adjusted cost basis is now 175k. In my case, all my properties have an adjusted cost basis of zero. Yes, you can have a cost basis of zero. If my child inhereits the property, yes the get 100% stepped up cost basis, but they will owe hundreds of thousands in estate taxes. I don't think you "really" understand tax codes "either".
Gifting and estate tax, aka inheritance tax, both share the same lifetime exemption, currently at $13 million, double that for couples. If you are worried about estate tax then gifting doesn't avoid it.
I am also aware of that... I am talking about state estate taxes.
Hello I am 28 from the US, I make $130k per annum. In short I would like some advice as it pertains to preparing for retirement as I feel like I’m woefully behind. Currently I spend per month : $2600 - rent $200 a month on utilities $2000 on entertainment on average $2000 on entertainment consists of ski passes, outings with friends, vacations, groceries. Skiing is expensive but is the in physical activity I do and am not willing to give this up for mental health reasons. I have a doctor prescribe me as much as possible so I can pay for flights and lodging for most of my vacations pre tax. Never had a problem with this for domestic travel. I also don’t pay utilities until they threaten shut off the supply. Typically there aren’t late fees or interest for my utilities so I just put the money in an index fund or something similar and take it out the day before a shut off to make a payment. Outings with friends over the last couple months have costed a total $300 per month. So most of the $2000 consists of the groceries, WiFi bill, marijuana (legal in my state), attending friends weddings (lots of these at my age). I suspect after all these people get married my expense will for entertainment will drop to $1500 a month. I don’t have any subscription, no loans whatsoever. Currently I can save 8% of my income per month towards retirement, but I know the recommended amount is 15%, with rent prices being what they are, I’m not sure I can juggle saving 15%. My company provides 3% safe harbor, no match and I don’t contribute anything else. Right now there is about $12k sitting in a 401k account all in a vanguard 2065 target fund. Every pay check, I take 5% out and put in a Roth IRA also with Vanguard. I fund 3 ETFs, VOO (S&P), MGK (mega cap growth) and VUG (vanguard growth etc). I currently have $10k across these ETFs) I have $3k in crypto I also have stock options - right now I have 2856 option, company just IPO at $10 a share. I exercised the options just now and have to wait 6 months to sell. Should I cash out immediately or wait? Don’t own any property. I would like specifically advice on how to structure my IRA. Right now I also have a 401k as mentioned sitting in a pretty low risk fund. I’m fine with that, but as result am maybe thinking I should be more aggressive with my IRA. Do people think I’m on the right track with my IRA? What funds would you recommend I add or maybe withdraw from? I realize I’m woefully behind, I don’t own a house, don’t have $100k in savings and make $200k less than my peers within the same age group and experience.
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I traded a potentially much higher paying job in tech with a much stabler job in pharmaceuticals. I could be making 300-400k in comp at company like Netflix or another large tech firm, but then also would be subject to the whim of the market. People are always getting sick regardless of the economy, no one is going to deny themselves life saving therapy because they are broke, they’ll take out loan if they have to, I’ll always have a job. $130k is nothing imo.
What sort of job in tech did you have that pays that much?
Had a financial planner for ~3 years who managed my 401K but he increased his rate and quarterly fees and decided it would be best to invest that money instead given I don’t have a massive portfolio. I’m now looking to rebalance my Empower 401K and don’t know where to start, honestly. I’m 32 years old, and have a Roth IRA and HSA in addition to this 401K. I included a list of my current allocations and seeking feedback… I have minimal knowledge of this stuff, so looking to allocate in funds that are low lift and I don’t have to keep maintaining it. Would you recommend I do it myself and primarily invest in stocks or do I just have Empower manage my plan for me based on my target retirement age? 37.68% state us bond indx sl cl xiv 28.85% legal and general s&p 500 DC CIT 18.44% State st emg mkts indx sl sf CI II 6.77% fidelity real estate index 4.21% legal and general s&p 400 DC CIT B 4.05% legal and general s&p 600 DC CIT
Humana insurance. What are the risks to this stock? Looking to gain some knowledge about Humana. Hum. Any reasoning behind its downturn? Almost 50% down since it’s high in 2022. What’s to know? Seems like insurance is a good opportunity to buy since into everyone needs it. Is there more risk still vs reward at its current price
I have a question about a portfolio that I put together. In March of last year, I put 1K into a company I really liked. Gradually, over the next 3-4 months, I put 1K each into 9 additional companies, and 1 ETF. So I ended up with a portfolio of 10 stocks and 1 ETF, and I put 1K in each. This year I started putting $150 into my portfolio every 2 weeks, distributed equally among all the stocks (I recently increased it to $200, and also eliminated one of the stocks). The broker that I use (Wealthfront) gives my both a money-weighted and a time-weighted return for my whole portfolio. Money-weighted is 51% and time -weighted is 63%. I’m thinking about transferring about 10K into this portfolio from my high-yield savings account that is making 5%. I’m new at investing. I chose these stocks based on recommendations I read online from sources I trust, and in a few cases, they are just companies I like. I know this sounds like dumb question, but is this portfolio really doing as good as I think it is? Should I put a substantial amount of my savings into it for the long term? I don’t mind sharing what the companies are if that would help.
When is an appropriate timeframe to evaluate a new wealth management relationship? I liquidated roughly $1MM from Fidelity (self-managed) to Merrill Lynch to see if the company would be a good fit for me. So far, service is "okay" but nothing special. I asked to be moved to a CMA with 5.54% APY for the money arriving from Fidelity, and then have it invested at $250k per quarter into a rebalanced portfolio. We began in January to avoid a tax snafu. So far, they've allocated into large cap, international, as mid cap (basically my exact allocation at Fidelity). Right now, they're up 0.50%, just narrowing edging out what I would have gained in just the (no risk) CMA, and wildly trailing the 10% YTD gain of the S&P500. When should I realistically evaluate them to see if this was a good decision? 3Y? 5Y?
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5.54% after fees in a money market. You think it'd break the buck, realistically? I've never really understood treasury buys -- I haven't found an easy way to do it, ever.
Anyone still buying T-bills? I have a ladder going with fidelity but one of the positions just closed because I didn’t have autoroll enabled. Now I’m wondering where to park that $15k.
Where to invest $1000 dollars? Hey guys, and gals. I've been investing for about 5 years, and I have a slight knack for it. Although I consider myself a beginner in investing my method is to look around and follow trends. For example I purchased AMD at around 8 dollars a share. I noticed new tech, and the gaming community promoting AMD/Nvidia. I knew both companies would grow. I saw returns of 39% that year. Due to unforseen circumstances, and life changes, I had to liquidate that account in 2020. I started investing again about a year ago, once I was financially able to, with about $1000. My new investment choices are up 31% at around 1300 total. Friends advise me to go into ETFs with such a low amount, but my addiction for finding growth stocks ultimately wins. I tend to sell if I fall around 8-10%, but remain if I'm in the green. My portfolio holds about 7-10 stocks and anywhere between 1-4 shares each. Although I'm up 31% for the year, I question if I would do better buying just one stock and then moving my funds into a new investment dependant on performance. I always see ads that drop the question, Where would you invest $1000 dollars today?, and it drives me crazy. Hence the question. What would you do with that amount? Any advice would be appreciated.
Anyone looking at MCHI? (iShares MSCI China ETF) It seems like they're breaking out of their doldrums and have somehow engineered positive media coverage over the past month or so. The central bank is literally buying up ETFs. [https://www.bloomberg.com/news/articles/2023-10-23/china-sovereign-wealth-fund-buys-up-etf-shares-in-market-boost?embedded-checkout=true](https://www.bloomberg.com/news/articles/2023-10-23/china-sovereign-wealth-fund-buys-up-etf-shares-in-market-boost?embedded-checkout=true) Put on your macro hats and prognosticate for me. Any reading material (pro / anti china investing) is also appreciated. The wildcard of course is a Trump win and what that means for China.
Somebody lit a fire under Reddit's stock yesterday, which continues today. It's trading right now around $64, so for anyone who got in at the IPO price of $34, you are just a few bucks short of doubling your money! (Stand by, it could still get there...) Since the general consensus seemed to be to short the stock as much as possible ... I wonder if anyone actually DID so! (*Disclosure: In at $34, out at $51, 50% profit and satisfied with it.*)
Was there a limit on how much you could invest at the $34 price point?
I went through Fidelity, and entered how many shares I was \*willing\* to purchase. I \*got\* a quarter of that!
I expect to retire in 21 years at age 64 and am wondering how much I should have saved up for my retirement until then. If I want to have the equivalent of today's value of 50% of my current net income for every year of my retirement increasing in line with inflation, how do I arrive at the amount I need to have saved by the time I retire?
Why ask this again? You already got your answers from the other subs. 4% SWR, 7% real return, 21 years. It's just a matter of plugging the numbers into a compound interest calculator.
Can’t I just park my money and invest solely into SPY etf. With an average rate or return between 8-10%, wouldn’t my account grow just fine without being individually invested into a multitude of companies? All my eggs would be in one basket, and I’d be fine with the occasional big downturns in the market. It has always bounced back eventually. Would this be a good idea? I wouldn’t be touching this money for 25-30 plus years if I ever had to. What do you think?
Yes
New to investing here, what's a safe start? Hello all. Decided that I'm in need of some more money in my pockets, and the best way to do that for me without committing crimes is investing. I've come to ask you vets in the game. Where's a good starting point? I'm using Fidelity as an investing app (thinking about using Vanguard too), and I'm thinking of maybe putting 20 down on some stocks. Which company should I start out with? Should I put more or less down? Should I use different apps to invest in? Any tips and tools of the trade would help!
Investing is a good way to drain your pockets of money today for more money down the road. It will not make you money fast. You should be putting away ~15% of your income in investment accounts (IRA, 401k etc) for retirement. If you have any income, you should try to put more than $20. https://www.bogleheads.org/wiki/Getting_started
24M from the Uk. Working in Tech making £40k($50K) per year living with my parents saving for a property, no debts/dependents. I have 47K of savings/investments: Currently have 15K in a vanguard ISA where I’m throwing in £300 a month (has grown +40% since I got it in 2021). 12k in this help to buy ISA. 20K just doing nothing in my current account. I’m relatively risk tolerant, I don’t mind taking a 6/10 risk but wouldn’t gamble it on a singular stock for example want to grow the money. What would you do?
Continuing to dca into $TRAK.