Investing

ssigman · January 24th, 2008, 11:18 AM

ok so i'm starting this thread with the hopes that some of you have a clue on investments, stocks, ira's...etc....

i figure we could talk about anything involving this stuff and hopefully somewhat keep on topic(we won't..i know)

so i'm gonna start with some questions i have

1. anyone know anything about IRA and Roth IRAs? and what the advantages/disadvantages are?

2. rollovers of 401k...should i roll my old one into my new one or can i put it into something else...i.e. an IRA of some sort

3. does anyone invest in stocks..outside of stocks given to them by there company?

yea i know i can look this stuff up but i thought it might give us something to talk about

ssigman · January 24th, 2008, 11:28 AM

i thought this site was good..so i'll post it

Understanding the Roth IRA

this goese with that page

Roth IRA vs Deductible IRA: New Contributions

BtownJay · January 24th, 2008, 11:30 AM

1. IRA vs. Roth IRA - With the regular IRA you pay the taxes on the money when you withdrawl from it. I forget the actual age, but eventually you are forced to take money from it, and will owe the tax on it when you take it out. With the Roth IRA, you pay taxes on the money as you contribute to it, and don't pay when you take it out.

IMO, for you, the Roth would be the better option since it will probably be easier to afford the taxes now, while you are working. Rather than later when you aren't and on what will probably be a fixed income.

Its been over 4 years since i was a bank manager, so there is a lot that i've forgotten about them, and there could have been some changes since then as well.

Can't help much with 401's or stocks.

Edit - nevermind, i'm sure those links are 10x's better than what i posted.

Rusty27 · January 24th, 2008, 11:37 AM

I cashed in a 401K that I rolled over into a Mutual fund while the stock market was still above 13.5
I'm gonna have to pay a ton of taxes in April.I want nothiong more to do with the Stock Market.My current 401K is in interest bearing funds only.

ssigman · January 24th, 2008, 11:42 AM

no thats why i started the thread...to get everyone's thought and knowledge on it all...i need to rollover my 401k..if i let it sit there, i'll never keep up with it and i'm sure its gonna go in the shitter soon

ssigman · January 24th, 2008, 11:45 AM

Quote:

Originally Posted by Rusty27

I cashed in a 401K that I rolled over into a Mutual fund while the stock market was still above 13.5
I'm gonna have to pay a ton of taxes in April.I want nothiong more to do with the Stock Market.My current 401K is in interest bearing funds only.

don't you pay a ton though in penalties??? i'm starting a new 401k here so i figured i'd invest in that and try to diversify a bit by moving it into an IRA..i think i'll still pay the penalty for moving the 401k money...not sure though

ssigman · January 24th, 2008, 11:46 AM

oh yea..i also have an etrade account...never use it though...last time i had stocks in it..i took them all out so i could have a day's worth of money for vegas...it wasn't an impressive amount..like 300 bucks or something...even with the market in the dumps, i'm thinking of throwing a few hundred in at some point and seeing if i can still make a profit

Rusty27 · January 24th, 2008, 11:50 AM

I don't think there is any penalty for you.
I don't know about me.The investment company gave me the entire amount.I have to report it as income and pay taxes.I thought there was a penalty too,but I don't see it on the income tax form.

BtownBeers · January 24th, 2008, 12:19 PM

I had a 401K from a previous job that the company moved and I rolled it over into an IRA....I haven't really changed any of the shares around at all since its in a descent risk/reward balanced fund. Its been kicking ass for a while for me but recently took a loss...it fluctuates with the market but this is for retirement so i don't really worry about the short term ups and downs with it at all.

I used to invest mostly in various mutual funds and annuities. Never really got into dabbling in stocks so much, wish I had. I may eventually get more into it, especially with the prospect of buying low over the next 12 - 18 months as the economy sucks.

I also smartly got my parents involved with some of my investments and took them out in their name and was named the sole beneficiary so when they hit the age that the money was available without extra penalties I could take it out if I needed it rather than waiting till I was retired.

ssigman · January 24th, 2008, 12:37 PM

is that legal??? you can put it under your parents name but have you as the beneficiary of it??

BtownBeers · January 24th, 2008, 01:04 PM

As far as I know its legal...it was suggested to me by an advisor I was using at the time. Its basically "their" investment but your money and they name you as the beneficiary. Once they hit the right age there are no penalties other than the tax...which you should pay for them...unless you're a dick or they don't care then its on them.

ssigman · January 24th, 2008, 01:13 PM

wow...that's a nice loophole...time to phone the parents and try to dump money that way and then in only a few years i could take it out...interesting

thanks for the knowledge

BtownBeers · January 24th, 2008, 01:17 PM

Sure...good luck...it may be more complicated now depending on their ages...I think my money had to be vested for a certain amount of time...not 100%...all I know is its a great way to get "retirement" money LONG before you're retired.

ssigman · January 24th, 2008, 01:25 PM

seems like a roth ira it needs to be 5 years and you won't get penalized...well now we can't use rusty for your plan

ssigman · January 24th, 2008, 01:26 PM

mike,
you're rich...how do you manage your money?? stuff it under your mattress or invest it all in yellow thongs and breast implants for the youth??

January 24th, 2008, 11:18 AM	#1
ssigman Join Date: 03-15-2004 Posts: 27,221	Investing ok so i'm starting this thread with the hopes that some of you have a clue on investments, stocks, ira's...etc.... i figure we could talk about anything involving this stuff and hopefully somewhat keep on topic(we won't..i know) so i'm gonna start with some questions i have 1. anyone know anything about IRA and Roth IRAs? and what the advantages/disadvantages are? 2. rollovers of 401k...should i roll my old one into my new one or can i put it into something else...i.e. an IRA of some sort 3. does anyone invest in stocks..outside of stocks given to them by there company? yea i know i can look this stuff up but i thought it might give us something to talk about

January 24th, 2008, 11:28 AM	#2
ssigman Join Date: 03-15-2004 Posts: 27,221	i thought this site was good..so i'll post it Understanding the Roth IRA this goese with that page Roth IRA vs Deductible IRA: New Contributions

January 24th, 2008, 11:30 AM	#3
BtownJay Join Date: 07-14-2004 Location: Lehigh Valley, PA Posts: 28,016	1. IRA vs. Roth IRA - With the regular IRA you pay the taxes on the money when you withdrawl from it. I forget the actual age, but eventually you are forced to take money from it, and will owe the tax on it when you take it out. With the Roth IRA, you pay taxes on the money as you contribute to it, and don't pay when you take it out. IMO, for you, the Roth would be the better option since it will probably be easier to afford the taxes now, while you are working. Rather than later when you aren't and on what will probably be a fixed income. Its been over 4 years since i was a bank manager, so there is a lot that i've forgotten about them, and there could have been some changes since then as well. Can't help much with 401's or stocks. Edit - nevermind, i'm sure those links are 10x's better than what i posted.

January 24th, 2008, 11:37 AM	#4
Rusty27 Join Date: 07-15-2004 Location: Knoxville,Tenn. Posts: 27,904	I cashed in a 401K that I rolled over into a Mutual fund while the stock market was still above 13.5 I'm gonna have to pay a ton of taxes in April.I want nothiong more to do with the Stock Market.My current 401K is in interest bearing funds only.

January 24th, 2008, 11:42 AM	#5
ssigman Join Date: 03-15-2004 Posts: 27,221	no thats why i started the thread...to get everyone's thought and knowledge on it all...i need to rollover my 401k..if i let it sit there, i'll never keep up with it and i'm sure its gonna go in the shitter soon

January 24th, 2008, 11:46 AM	#7
ssigman Join Date: 03-15-2004 Posts: 27,221	oh yea..i also have an etrade account...never use it though...last time i had stocks in it..i took them all out so i could have a day's worth of money for vegas...it wasn't an impressive amount..like 300 bucks or something...even with the market in the dumps, i'm thinking of throwing a few hundred in at some point and seeing if i can still make a profit

January 24th, 2008, 11:50 AM	#8
Rusty27 Join Date: 07-15-2004 Location: Knoxville,Tenn. Posts: 27,904	I don't think there is any penalty for you. I don't know about me.The investment company gave me the entire amount.I have to report it as income and pay taxes.I thought there was a penalty too,but I don't see it on the income tax form.

January 24th, 2008, 12:19 PM	#9
BtownBeers Join Date: 08-23-2004 Location: In Mrs. Jays Pants! Posts: 21,572	I had a 401K from a previous job that the company moved and I rolled it over into an IRA....I haven't really changed any of the shares around at all since its in a descent risk/reward balanced fund. Its been kicking ass for a while for me but recently took a loss...it fluctuates with the market but this is for retirement so i don't really worry about the short term ups and downs with it at all. I used to invest mostly in various mutual funds and annuities. Never really got into dabbling in stocks so much, wish I had. I may eventually get more into it, especially with the prospect of buying low over the next 12 - 18 months as the economy sucks. I also smartly got my parents involved with some of my investments and took them out in their name and was named the sole beneficiary so when they hit the age that the money was available without extra penalties I could take it out if I needed it rather than waiting till I was retired.

January 24th, 2008, 12:37 PM	#10
ssigman Join Date: 03-15-2004 Posts: 27,221	is that legal??? you can put it under your parents name but have you as the beneficiary of it??

January 24th, 2008, 01:04 PM	#11
BtownBeers Join Date: 08-23-2004 Location: In Mrs. Jays Pants! Posts: 21,572	As far as I know its legal...it was suggested to me by an advisor I was using at the time. Its basically "their" investment but your money and they name you as the beneficiary. Once they hit the right age there are no penalties other than the tax...which you should pay for them...unless you're a dick or they don't care then its on them.

January 24th, 2008, 01:13 PM	#12
ssigman Join Date: 03-15-2004 Posts: 27,221	wow...that's a nice loophole...time to phone the parents and try to dump money that way and then in only a few years i could take it out...interesting thanks for the knowledge

January 24th, 2008, 01:17 PM	#13
BtownBeers Join Date: 08-23-2004 Location: In Mrs. Jays Pants! Posts: 21,572	Sure...good luck...it may be more complicated now depending on their ages...I think my money had to be vested for a certain amount of time...not 100%...all I know is its a great way to get "retirement" money LONG before you're retired.

January 24th, 2008, 01:25 PM	#14
ssigman Join Date: 03-15-2004 Posts: 27,221	seems like a roth ira it needs to be 5 years and you won't get penalized...well now we can't use rusty for your plan

January 24th, 2008, 01:26 PM	#15
ssigman Join Date: 03-15-2004 Posts: 27,221	mike, you're rich...how do you manage your money?? stuff it under your mattress or invest it all in yellow thongs and breast implants for the youth??