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Long term investments 403b (I think)

#1 User is offline   GhostofRoyko 

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Posted 08 August 2017 - 06:48 PM

So I'm trying to learn something about investing. I'm stupid at lots of stuff but especially this kind of thing. Can anybody offer up some pointers or some sources to help me out? What types of funds to invest in? Really anything that can help me not screw this up.
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#2 User is offline   Breal31 

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Posted 08 August 2017 - 06:50 PM

Depends on a lot of factors

Do you have a 401k? If so, what's the match? Age?
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#3 User is offline   GhostofRoyko 

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Posted 08 August 2017 - 07:07 PM

I'm 40, have some $ sitting in a pension from previous jobs I'm going to roll into a Roth IRA and try to make that my main discretionary monthly investment for awhile.

But this is a work retirement thing for a new job. I'm putting in 9% pretax and the employer puts in 5%. Lots of choices through one of four vendors.
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#4 User is offline   MnIllini 

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Posted 08 August 2017 - 07:22 PM

Breal is correct in asking your age.
The only thing he's wrong on is the Lou Henson deal. 😄
Your exposure to risk should decrease with aging. Bond funds are not glamorous, but they sure can help in a declining stock market.
We are due for a stock market correction, probably past due. Will the correction be 10%, or 30% ? Will it be by the end of this year ?
Better off diversifying where you can. Maybe IT mutual funds, defense funds, healthcare funds, utility funds, consumer discretionary funds and some bond funds.
Don't invest and ignore it tho. You will never be ahead of the experts, but if healthcare funds are having a tough time and the outlook isn't great; then maybe it's time to bail.
And don't get greedy. If you're making 10-15% or so it may not be wise to bail on that to chase a rising star that fizzles after you buy.
Good luck.
By the way, I'm stupid on a lot of stuff too.
Check out Fidelity.com. There is an article now on diversification and long term investing.
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#5 User is offline   GhostofRoyko 

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Posted 08 August 2017 - 09:28 PM

Thanks, I will check that out. Definitely not greedy, I'm very conservative with my $. 6-8% per year and I'm gonna be happy.
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#6 User is offline   Tempo34 

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Posted 09 August 2017 - 07:11 AM

Halliburton. The gubment loves war.
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#7 User is offline   MnIllini 

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Posted 09 August 2017 - 08:41 AM

If you have four choices given to you, you may be able to look into some performance history for each.
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#8 User is offline   Beach Bum 

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Posted 09 August 2017 - 08:49 AM

Stock market is one big bubble. Expect about 10-15% more expansion and then a huge pop.
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#9 User is offline   ILLove1997 

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Posted 09 August 2017 - 09:55 AM

View PostGhostofRoyko, on 08 August 2017 - 07:07 PM, said:

I'm 40, have some $ sitting in a pension from previous jobs I'm going to roll into a Roth IRA and try to make that my main discretionary monthly investment for awhile.

But this is a work retirement thing for a new job. I'm putting in 9% pretax and the employer puts in 5%. Lots of choices through one of four vendors.


I do this for a living, PM me

also if you roll your old pension into a ROTH IRA better get ready for a massive tax bill next year, as I am pretty sure most pensions are tax deferred, not after tax contributions
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#10 User is offline   GhostofRoyko 

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Posted 09 August 2017 - 10:04 AM

View PostILLove1997, on 09 August 2017 - 09:55 AM, said:

I do this for a living, PM me

also if you roll your old pension into a ROTH IRA better get ready for a massive tax bill next year, as I am pretty sure most pensions are tax deferred, not after tax contributions


Thanks I will.

You can only contribute about $5k/year into a Roth, so I'm planning on doing that for the next few years until the pension $ is gone and then start contributing from my own after tax income. Just seems better to take the hit now than later but that might be dumb. Would that $ that I rolled into a ROTH be taxed just like income?
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#11 User is offline   ItascaIllini 

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Posted 09 August 2017 - 10:15 AM

I tend to pick index funds because they have extremely low expense ratios and most mutual funds don't beat the index they are benchmarked against. Some do much better, but like over 60% underperform over time compared to index benchmarks.

At the age of 40, you should have some percentage put towards fixed income funds (bonds). The old method was 100-your age should be in equity but lately it's been more like 120-your age in equities. So I would recommmend 20-30% in fixed income and the remainder in equities. If you have international equity offerings, put like 20% toward that. Lastly, if you have any options for commodity funds, they are great for lowering overall risk of a portfolio so you could carve out 5-10% for that.
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#12 User is offline   Never trust a custard fart 

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Posted 09 August 2017 - 10:30 AM

Beanie Babies
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#13 User is offline   ILLove1997 

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Posted 09 August 2017 - 10:42 AM

View PostGhostofRoyko, on 09 August 2017 - 10:04 AM, said:

Thanks I will.

You can only contribute about $5k/year into a Roth, so I'm planning on doing that for the next few years until the pension $ is gone and then start contributing from my own after tax income. Just seems better to take the hit now than later but that might be dumb. Would that $ that I rolled into a ROTH be taxed just like income?


yes it adds on to your income for the year, so whatever your top marginal rate you are paying it will cost that much

also there are income limits for contributions to ROTH IRA'S, you can't contribute if you make over 132k as an individual or 196k as a married couple filing jointly
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#14 User is offline   pizzaman 

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Posted 09 August 2017 - 11:34 AM

I could have asked the same question 30 years ago. I had no idea about investing and little stomach for risking my hard earned retirement savings.

After a little research I opted for index funds and target retirement mutual funds. Take a look at Fidelity or Vanguard. Low fees and good options. I'm 67, retired and my hard earned retirement savings have grown.
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#15 User is offline   GhostofRoyko 

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Posted 09 August 2017 - 11:34 AM

View PostItascaIllini, on 09 August 2017 - 10:15 AM, said:

I tend to pick index funds because they have extremely low expense ratios and most mutual funds don't beat the index they are benchmarked against. Some do much better, but like over 60% underperform over time compared to index benchmarks.

At the age of 40, you should have some percentage put towards fixed income funds (bonds). The old method was 100-your age should be in equity but lately it's been more like 120-your age in equities. So I would recommmend 20-30% in fixed income and the remainder in equities. If you have international equity offerings, put like 20% toward that. Lastly, if you have any options for commodity funds, they are great for lowering overall risk of a portfolio so you could carve out 5-10% for that.


Thank you.
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#16 User is offline   GhostofRoyko 

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Posted 09 August 2017 - 11:35 AM

View PostILLove1997, on 09 August 2017 - 10:42 AM, said:

yes it adds on to your income for the year, so whatever your top marginal rate you are paying it will cost that much

also there are income limits for contributions to ROTH IRA'S, you can't contribute if you make over 132k as an individual or 196k as a married couple filing jointly


Thanks, I'm safely under that for now.
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#17 User is offline   mamador 

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Posted 10 August 2017 - 04:20 PM

Go all in on bitcoin. It's here to stay IMO and will only get bigger and bigger until it is basically going to be the Worlds number 1 currency
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#18 User is offline   Passiveagressiveman 

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Posted 10 August 2017 - 06:24 PM

View PostNever trust a custard fart, on 09 August 2017 - 10:30 AM, said:

Beanie Babies

Best advice so far.
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#19 User is offline   Passiveagressiveman 

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Posted 10 August 2017 - 06:25 PM

View Postmamador, on 10 August 2017 - 04:20 PM, said:

Go all in on bitcoin. It's here to stay IMO and will only get bigger and bigger until it is basically going to be the Worlds number 1 currency

You first.
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#20 User is offline   rob mccolley 

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Posted 11 August 2017 - 01:01 PM

Money isn't real.
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