/biz/ - Business & Finance

[Anonymous No.13509539]

Retirement plan. So just got my first check of my first career after college. My job doesn't offer 401k until 1 year after work. What is the best option now for a retirement plan? I already have some coins, so don't say that. Is my best option a roth IRA? A mutual fund? Those are the two things I know of, of kind of money making accounts. I still don't really understand them much. I plan on having a 401k and another retirement account so I'm just wanting to start one asap. What do you guys suggest?

[Anonymous No.13509556]

>>13509539
use robinhood and buy fake meat

[Anonymous No.13509945]

Roth IRA then invest in an S&P 500 Index fund.

Once your 401k becomes available, only donate enough to get employer matching benefits, then go back to the Roth. Its safe to bet that tax rates in 50 years are going to be retarded, so you want to hide as much in the Roth now as you can.

[Anonymous No.13510219]

>>13509945
Max Roth IRA > max 401k > max brokerage account

Yes you can get a 401k that’s just an account type. Your company obviously won’t match what you put in but they might not even be matching in their offering which is going to be managed and might not even be what you want (though you can sell and buy within it)

[Anonymous No.13510406]

Thanks guys. Another roth question then. I know the income has to be below like 120k to have a roth ira. My income now is 92k and I think my bonus will be 20k this year, so I should be safe. My bonus next year is going to be more i believe and I will be over the income. Do bonuses count as "income" for that maximum income to be able to have a IRA? If so what happens to my roth if I go over that max income? Is the account just frozen at that point and growth continues just from my one year allowance?

Also what is the best way to open a roth? I heard that banks like Chase, pnc, are not the best because they only invest in CD's or the "worse" stuff. Where else can I go then? I won't be a "hands on" investor, I wont have the time or knowledge. Thanks again, first time not getting paid minimum wage feels nice but now I have no idea about any of this shit.

[Anonymous No.13510479]

>>13510406
ira income is calculating using modified adjusted gross income, MAGI. Look it up.

Open it up with any easy online broker, fidelity or schwab. Goodnight everybody

[Anonymous No.13511169]

>>13510406
You can easily figure out how close you actually are to the Roth limit. When you’re past the cap, you can’t contribute but can still access/trade if you wanted (though it doesn’t seem you do).

From there a normal IRA or more likely 401k will be your best bet. If you don’t want to actively trade I’d recommend putting at least 50% into an S&P index fund, and anything else should be long standing blue chip companies, preferably with dividends. I personally like blue chip growth stocks which pay dividends such as Microsoft. Tech company? Check. Huge company with monopolies on certain products? Check. Tech forward? Check. Blockchain? Check. Insane growth last few years with no sign of slowing down? Check. Dividends? Check.

I also like old timey favorites like McDonalds because they are huge and stay on trend. Salads and coffee now, who would have thought?

Stocks will always be higher risk than S&P, it’s REALLY hard to beat the S&P over the long haul.

[Anonymous No.13511228]

Why do you anons advise investing in the S&P 500? Isn't Total Market better?

[Anonymous No.13511327]

>>13509539
All Vanguard. VSMAX, VIGAX and VFIAX.

[Anonymous No.13511383]

>>13511327
>VFIAX
Why not VTSAX

[Anonymous No.13511398]

>>13509539
Just follow this.

[Anonymous No.13511414]

>>13511228
Its hard to argue with a consistent 10-12%. But diversify a little more with foreign stocks a well.

[Anonymous No.13511438]

>>13511414
By total market I meant something like VTSAX, which refers to the total US Stock market

[Anonymous No.13511466,1]

>>13510406
Yeah, bonus is income. If you have a clever financial advisor, they will have you contribute to a traditional and roll it over into a Roth.

You can bypass the income restrictions this way but are still subject to traditional IRA contribution caps.

[Anonymous No.13511466]

>>13511438
I know. I'm saying S&P 500 is a safe 10-12% so there isn't a lot of reason to second guess it. Its about as safe as it gets.

However, there is good reason to invest in foreign stocks as well. I'd look into Chinese stocks and European stocks (especially those centered on defense) before worrying about VTSAX

[Anonymous No.13511546]

>>13509539
Rule One Investing by Phil Town changed my life. It’s an excellent read on analyzing companies and the shortcomings of Mutual Funds, S&P500, Financial Advisors, etc.

[Anonymous No.13511759]

Thanks /biz/ bros

[Anonymous No.13511826]

>>13511546
So what do you do instead?