Investing: Difference between revisions

(11 intermediate revisions by the same user not shown)

Line 64:

;Notes

* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k

* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k. Otherwise, you will be subject to the pro-rata rule.

===Mega Backdoor Roth ~~IRA~~===

===Mega Backdoor Roth===

Requirements: Your 401k allows after-tax contributions and non-hardship ~~withdrawls~~.

Requirements: Your 401k allows after-tax contributions and non-hardship withdrawals.

;Basic Idea:

* Max out after-tax contributions to your 401k

* Rollover or withdraw the after-tax portion to a Roth IRA

* Rollover or withdraw the after-tax portion to a Roth IRA or Roth 401K

==ETFs==

Line 81:

25 basis points is an annual fee of 0.25%.

The following classifications are stolen from Wealthfront and Acorns

~~==Brokers==~~

~~The classical brokers are Vanguard, Fidelity, and Charles Schwab.~~

~~Some of the newer app-based players include Robinhood, Webull, and M1 Finance.~~

~~===Vanguard===~~

~~===Fidelity===~~

~~===Robinhood===~~

~~===Webull===~~

~~===M1 Finance===~~

==Robo-Investors==

Line 97:

Line 87:

; [https://www.wealthfront.com/c/affiliates/invited/AFFA-BMT8-AIJ3-FS7E Referral]

~~;Benefits~~

* Tax-Loss Harvesting

~~====Cash Account====~~

~~Wealthfront offers a cash (i.e. savings) account.~~

~~This account is distributed between 4 banks so it is FDIC Insured up to $1 million~~

~~===Acorns===~~

~~{{ main | Acorns (company) }}~~

~~Acorns is a robo-investor. They charge a flat monthly fee of $1.~~

~~You can select between 5 different portfolios of ETFs based on your risk level.~~

~~Acorns invests in the following ETFs:~~

* Large Company Stock (VOO)

* International Large Company Stocks (VEA)

* Small Company Stock (VB)

* Corporate Bonds (LQD)

* Government Bonds (SHY)

* Real Estate Stock (VNQ)

* Emerging Market Stock (VWO)

;~~Notes~~

; Cash Account

* Acorns charges $50 per ETF to transfer out via ACAT.

Wealthfront offers a cash account.

*: I no longer recommend Acorns since they can change their portfolio at any time and it ~~will cost you $350 to transfer out.~~

This account is distributed between up to several banks so it is FDIC Insured up to $3 million <ref name="wealthfrontfdic" />.

*: Other brokers typically charge a much lower fixed rate to ~~transfer out, if at all. E.g. Robinhood charges~~ $~~75 and Vanguard doesn't charge anything~~.

====~~Later===~~=

==References==

~~Acorns later is an IRA account. You need to upgrade to the $3 tier to get it.~~

{{reflist|refs=

~~They offer a traditional IRA, Roth IRA, and SEP IRA~~.~~ ~~

<ref name="wealthfrontfdic">https://www.wealthfront.com/blog/wealthfront-fdic-insurance/</ref>

~~You can signup and deposit money but you have no other choices~~.

}}

~~Your portfolio is selected by Acorns based on your age.~~

@@ Line 64: / Line 64: @@
 ;Notes
-* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k
+* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k. Otherwise, you will be subject to the pro-rata rule.
-===Mega Backdoor Roth IRA===
+===Mega Backdoor Roth===
-Requirements: Your 401k allows after-tax contributions and non-hardship withdrawls.
+Requirements: Your 401k allows after-tax contributions and non-hardship withdrawals.
 ;Basic Idea:
 * Max out after-tax contributions to your 401k
-* Rollover or withdraw the after-tax portion to a Roth IRA
+* Rollover or withdraw the after-tax portion to a Roth IRA or Roth 401K
 ==ETFs==
@@ Line 81: / Line 81: @@
 basis points is an annual fee of 0.25%.<br>
 The following classifications are stolen from Wealthfront and Acorns<br>
-==Brokers==
-The classical brokers are Vanguard, Fidelity, and Charles Schwab.
-Some of the newer app-based players include Robinhood, Webull, and M1 Finance.
-===Vanguard===
-===Fidelity===
-===Robinhood===
-===Webull===
-===M1 Finance===
 ==Robo-Investors==
@@ Line 97: / Line 87: @@
 {{main | Wealthfront }}
 ; [https://www.wealthfront.com/c/affiliates/invited/AFFA-BMT8-AIJ3-FS7E Referral]<br>
-;Benefits
-* Tax-Loss Harvesting
-====Cash Account====
-Wealthfront offers a cash (i.e. savings) account.
-This account is distributed between 4 banks so it is FDIC Insured up to $1 million
-===Acorns===
-{{ main | Acorns (company) }}
-Acorns is a robo-investor. They charge a flat monthly fee of $1.
-You can select between 5 different portfolios of ETFs based on your risk level.
-Acorns invests in the following ETFs:
-* Large Company Stock (VOO)
-* International Large Company Stocks (VEA)
-* Small Company Stock (VB)
-* Corporate Bonds (LQD)
-* Government Bonds (SHY)
-* Real Estate Stock (VNQ)
-* Emerging Market Stock (VWO)
-;Notes
+; Cash Account
-* Acorns charges $50 per ETF to transfer out via ACAT.
+Wealthfront offers a cash account.
-*: I no longer recommend Acorns since they can change their portfolio at any time and it will cost you $350 to transfer out.
+This account is distributed between up to several banks so it is FDIC Insured up to $3 million <ref name="wealthfrontfdic" />.
-*: Other brokers typically charge a much lower fixed rate to transfer out, if at all. E.g. Robinhood charges $75 and Vanguard doesn't charge anything.
-====Later====
+==References==
-Acorns later is an IRA account. You need to upgrade to the $3 tier to get it.<br>
+{{reflist|refs=
-They offer a traditional IRA, Roth IRA, and SEP IRA.<br>
+<ref name="wealthfrontfdic">https://www.wealthfront.com/blog/wealthfront-fdic-insurance/</ref>
-You can signup and deposit money but you have no other choices.<br>
+}}
-Your portfolio is selected by Acorns based on your age.