Talking stocks, trading, and investing in general

[amerikajinda]

1) equities are not Pokémon
2) a dividend portfolio with no EPD or Ares? D'allors!

Thank you! I just picked up some EPD but in looking at Ares... the price to economic book value ratio doesn't look good and their free cash flow yield is not that good either and most importantly their return on invested capital is really ugly. Economic book value is weak but I'm liking EPD so thank you for that!

Well I do seem to collect stocks like Pokémon but I just want to make sure I have some individual representation in all of the eleven sectors.

 

[ValidusLA]

Thank you! I just picked up some EPD but in looking at Ares... the price to economic book value ratio doesn't look good and their free cash flow yield is not that good either and most importantly their return on invested capital is really ugly. Economic book value is weak but I'm liking EPD so thank you for that!

Well I do seem to collect stocks like Pokémon but I just want to make sure I have some individual representation in all of the eleven sectors.

Nothing i say constitutes advice. I am not a financial planner.

I am only certified in snobbery.

 

[amerikajinda]

Nothing i say constitutes advice. I am not a financial planner.

I am only certified in snobbery.

I like it!

 

[jbarwick]

The new 401k max and added company matches put us very close to having all of our retirement savings in pre-tax accounts next year. Other way to look at this is that I am a small timer.

Also started pushing savings back into Marcus since the rate is now 3.3% for online savings. For a while I was annoyed the app keeps forgetting my FaceID so I stopped logging in to car about an extra %.

 

[venividivicibj]

The new 401k max and added company matches put us very close to having all of our retirement savings in pre-tax accounts next year. Other way to look at this is that I am a small timer.

Also started pushing savings back into Marcus since the rate is now 3.3% for online savings. For a while I was annoyed the app keeps forgetting my FaceID so I stopped logging in to car about an extra %.

Why not mix in some post tax/Roth?

 

[jbarwick]

Why not mix in some post tax/Roth?

We do taxable for other items but retirement gets taken care of with this funding. Never looked into the whole Roth 401k piece but May at some point

 

[ellsbebc]

A new wrinkle to Roth 401k with the new omnibus bill just passed by Senate. Historically, all employer contribution match had to be non-Roth, regardless of employee contribution type.

Section 604: Employer Matching can be Roth or Pre-Tax
The bill will allow employers to let participants in 401(k), 403(b), and governmental 457(b) plans to get matching contributions on a Roth basis. It doesn't require plans to offer this but creates it as an option.

The SECURE 2.0 Act’s Impact On Roth IRAs

As 55% of Americans say they don’t have enough saved for retirement, this bipartisan legislation primarily seeks to make it easier to contribute to retirement plans and use those funds appropriately for their needs in retirement.

www.forbes.com

 

[venividivicibj]

We do taxable for other items but retirement gets taken care of with this funding. Never looked into the whole Roth 401k piece but May at some point

Yeah, I try to do a combo of both, since you can optimize tax brackets

 

[Piobaire]

I think that new Bill might require people over 50 making so-called "catch-up" contributions to Roth them. I do not like that situation.

 

[venividivicibj]

I think that new Bill might require people over 50 making so-called "catch-up" contributions to Roth them. I do not like that situation.

Yup, that's a negative for sure (losing the optionality)

 

[Piobaire]

For me the main issue is the math. A person would get the most theoretical benefit the longer they have that post-tax money invested. They've literally stacked the deck against the "catch up" portion now.

 

[brokencycle]

For me the main issue is the math. A person would get the most theoretical benefit the longer they have that post-tax money invested. They've literally stacked the deck against the "catch up" portion now.

You don't have to do the Roth for catch-up though. They've also delayed mandatory withdrawal age.

It doesn't seem like there is that much benefit for old people to be doing Roth, but at least if you do the max, give reduced your income do that Roth contribution might be from a lower marginal bracket.

 

[venividivicibj]

For me the main issue is the math. A person would get the most theoretical benefit the longer they have that post-tax money invested. They've literally stacked the deck against the "catch up" portion now.

it depends really - if you can play the tax brackets properly, you might be able to find a sweet spot in which roth now saves money. (or, if one partner makes no money or significantly less money in certain years, you can roth those years)

 

[Piobaire]

You don't have to do the Roth for catch-up though. They've also delayed mandatory withdrawal age.

It doesn't seem like there is that much benefit for old people to be doing Roth, but at least if you do the max, give reduced your income do that Roth contribution might be from a lower marginal bracket.

You don't? I read it was going to be mandatory.

 

[ellsbebc]

@Piobaire is correct based on what I’ve read. If earning > $145k/year, any 401k catch-up contribution must be Roth. Not sure if that applies per individual or avg per household. For example, if one spouse earns $130k and the other $500k, is the former able to make trad 401k catch-up contribution?

I’m a youngin’ so haven’t closely read up on that provision since the law will likely change before I reach that age.

edit: after reading again, appears the $145k threshold is per individual — Section 603. The above hypothetical would allow the $130k earner to make trad 401k catch-up contributions while the $500k earner must be Roth.

https://www.finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf