OT: Crypto, Stocks, Bonds, Real Estate, Investments, IRAs & Finances, etc.

[HighRyzer83]

Am I missing out if I'm not investing in cannabis/mj?

invest in semiconductor stocks IMO, it's nearing massive breakout state

the next wave of tech is driven by chips (AI, 5 G, robotics, smart vehicles, blockchain etc)

money always follows tech

Instead of individual tech companies how about a VG tech ETF like VGT? Wouldn't that be less risky as well as dividend paying?

[Garbagelo]

Am I missing out if I'm not investing in cannabis/mj?

invest in semiconductor stocks IMO, it's nearing massive breakout state

the next wave of tech is driven by chips (AI, 5 G, robotics, smart vehicles, blockchain etc)

money always follows tech

Instead of individual tech companies how about a VG tech ETF like VGT? Wouldn't that be less risky as well as dividend paying?

I have no bias on either side. Best bet is to buy based on the charts.

[The Laker Kid]

It’s good to see young people getting into investing. Today’s smartphones and internet makes it easier and accessible to everyone. Here’s a great read to everyone who’s just getting started on this path. Good luck.. building your first $100K is the hardest. https://www.etf.com/docs/IfYouCan.pdf

[Newyorknick94]

Am I missing out if I'm not investing in cannabis/mj?

invest in semiconductor stocks IMO, it's nearing massive breakout state

the next wave of tech is driven by chips (AI, 5 G, robotics, smart vehicles, blockchain etc)

money always follows tech

What do you guys think of Nokia stock? It’s dirt cheap right now, but with 5g coming in the next year or so is it worth investing in?

[Stannis]

Am I missing out if I'm not investing in cannabis/mj?

invest in semiconductor stocks IMO, it's nearing massive breakout state

the next wave of tech is driven by chips (AI, 5 G, robotics, smart vehicles, blockchain etc)

money always follows tech

What do you guys think of Nokia stock? It’s dirt cheap right now, but with 5g coming in the next year or so is it worth investing in?

I feel the 5G stuff is over exaggerated.

I wouldn't invest in Nokia for 5 g potential. If you believe their brand and products can make a bounce back, then yes.

[N Y K]

I just signed up for Robinhood (finally). Their referral program is pretty cool where you and whoever you refer get free stock.

So if anyone looking for a Robinhood account, let’s get these freebies together!!!

https://bit.ly/2qzBwVD

In terms of who I use:

Robinhood for my newborn - investing little money over the years for him there.

Ally for my liquid accounts - just moved brokerage from fidelity to ally. They all have $0 commission fees now, but just like having all liquid accounts in one place.

Fidelity for Retirement + other investments - I’ve got my 401k and IRA here along with my HSA through my employer. They’ve been pretty decent.

NY 529 plan - set my son with a plan through NY state (managed by Vanguard). That way I get to deduct contributions on my NY state taxes. Little extra benefit.

[N Y K]

I can talk about HSAs for hours so let me know if you want to know my strategy on how I use one, which in my opinion is the best way.

I definitely wouldn't mind that if you have the time. No rush as I won't be getting it until next month.

So I treat it strictly as an investment account and invest the entire balance.

If I have medical expenses throughout the year, I pay it out of my own pocket and scan the receipts to Google drive or whatever and keep a very simple spreadsheet of my medical expenses through the years to stay organized. The reason i do that is that there is NO time restriction on when I can reimburse myself for those medical expenses from the HSA and the reimbursement will be tax free.

So let's say I go to the doctor and get a $5k bill tomorrow. If I pay it out of pocket, I can reimburse myself 25 years from now if I want the $5k from the HSA and that withdrawal will be tax free.

So... 1) I contribute to the HSA tax free 2) It grows invested tax free and 3) I can withdraw the balance tax free if I have medical expenses covering the amount that I withdraw. I will pay zero taxes on that money and the investment gains, which is crazy and doesn't happen in this country. The reason you keep the receipts is in case the IRS comes knocking about your HSA withdrawals and all you need to do is provide the receipts covering the withdrawal.

And let's say I still have money left in the HSA when I'm 65, it just turns into another traditional IRA account and I'll be able to withdraw the funds for non medical expenses.

I'll always be on a HDHP for as long as I can strictly for the HSA advantages. I'm generally healthy too so that helps.

I just got offered my first HSA through my employer and am so pumped for it. You cover it pretty well, but that triple tax savings with the added IRA conversion option is pretty damn amazing. Starting to contribute this year and have the same google drive folder set up lol.

[N Y K]

Love these talks.

29 years myself — probably end do this year max out Roth by April 2020//contributed about ~14K to my 403b.

I just do low cost index funds through fidelity. No bonds or international funds. JL Collins simple
Path to wealth.

Been stacking cash in a HY savings account In prep for my first rental property investment for 2020

Yeah index funds make a ton of sense and ive been loading up on them for my retirement accounts (401k and IRA that I rollover old employer 401ks into). I just can’t seem to let this Fidelity growth fund go in my IRA though. It’s been killing it, even with the relatively high expense ratio. This year might be the year I pull out and add to some lower cost index fund, but man that thing has been killing it for years.

Where you buying a rental property? I’ve been trying to get there too, but it’s taking longer than I’d like.

[Jose7]

Love these talks.

29 years myself — probably end do this year max out Roth by April 2020//contributed about ~14K to my 403b.

I just do low cost index funds through fidelity. No bonds or international funds. JL Collins simple
Path to wealth.

Been stacking cash in a HY savings account In prep for my first rental property investment for 2020

Yeah index funds make a ton of sense and ive been loading up on them for my retirement accounts (401k and IRA that I rollover old employer 401ks into). I just can’t seem to let this Fidelity growth fund go in my IRA though. It’s been killing it, even with the relatively high expense ratio. This year might be the year I pull out and add to some lower cost index fund, but man that thing has been killing it for years.

Where you buying a rental property? I’ve been trying to get there too, but it’s taking longer than I’d like.

I’m willing to buy out of my current state of Florida but I want to get an FHA live in it for one year while getting some renters then refinance and do it all over again.

I’ve only saved up a few stacks for the down payment because I’ve been paying off my student loans/maxing out Roth and contributing 20% of my salary to pre tax retirement account.

I say keep sheltering your money in pretax vehicles, keep expenses low and throw coins in a high yield savings account for whenever you ready to begin that passive income stream like a rental property

[N Y K]

Love these talks.

29 years myself — probably end do this year max out Roth by April 2020//contributed about ~14K to my 403b.

I just do low cost index funds through fidelity. No bonds or international funds. JL Collins simple
Path to wealth.

Been stacking cash in a HY savings account In prep for my first rental property investment for 2020

Yeah index funds make a ton of sense and ive been loading up on them for my retirement accounts (401k and IRA that I rollover old employer 401ks into). I just can’t seem to let this Fidelity growth fund go in my IRA though. It’s been killing it, even with the relatively high expense ratio. This year might be the year I pull out and add to some lower cost index fund, but man that thing has been killing it for years.

Where you buying a rental property? I’ve been trying to get there too, but it’s taking longer than I’d like.

I’m willing to buy out of my current state of Florida but I want to get an FHA live in it for one year while getting some renters then refinance and do it all over again.

I’ve only saved up a few stacks for the down payment because I’ve been paying off my student loans/maxing out Roth and contributing 20% of my salary to pre tax retirement account.

I say keep sheltering your money in pretax vehicles, keep expenses low and throw coins in a high yield savings account for whenever you ready to begin that passive income stream like a rental property

I’ve actually been looking in Tampa, since my brother is down there. I’m nowhere near ready, but he’s getting started now.

I feel like I’m trying to do too many things with my money, so am wanting to refocus on down payment for a rental property with him.

Edit: I’m actually thinking, what if I get an LLC made with a bunch of people I trust so we can scale investing in property faster? Almost like our own fund. Might be too complicated, but can’t see any reason why it wouldn’t work.

Re Edit: ... it’s not the best idea lol (just looked it up on way to work)

[CharlesOakley]

How many of you "investors" are also carrying a high amount of debt? If you aren't debt-free (excluding your mortgage), you shouldn't be investing yet.

[br7knicks]

Robinhood if you make small trades

Interactive brokers for big ones

i just signed up for robinhood. have you used it?

[throwbackewing33]

Love seeing some HSA and JL Collins talk in here. If your looking for a good personal finance podcast, check out The Money Guy. These guys are giving the best advice out there and are real financial advisors. Check out their YouTube channel as well. Start with their Order of Operations show.
I wish I found information like this before 20. I wasted a ton of loot having fun and living it up. If I could go back I would live below my means and save as much as I could. If you understand compound interest, it gives you all the motivation in the world!

[Jose7]

Anyone else terrible at budgeting?

[aq_ua]

How many of you "investors" are also carrying a high amount of debt? If you aren't debt-free (excluding your mortgage), you shouldn't be investing yet.

Picking up on this, I think it's probably worth clarifying when/why a mortgage can be excluded. Most people used to get tax deductions for the interest on their mortgage, but only if they file itemized deductions on their tax returns. The 2017 Tax Cuts and Jobs Act changed some of that math for people, where it makes more sense to take the standard deduction than itemized deductions. For those people, there is no longer any tax deduction available for mortgage interest. In a lot of ways, that probably changed a lot of math around the overall benefit of home ownership period.

My general advice is to always consider renting before buying. Investing the money you would have to put down on a home purchase will more likely generate a higher return than the potential rise in home prices from here on out. Plus, given how low rental yields are now, the same equivalent in rent for the costs associated in home ownership probably gets you a nicer place to live today.

[aq_ua]

Anyone else terrible at budgeting?

I think a trap people fall into is somehow thinking a budget means perfect predictability about how much things cost and when those costs will happen. The purpose of a budget is usually to try and cut down on spending and increase savings, right? So might as well start with a simple exercise of identifying a couple of small things, like passing on an afternoon latte or going out for dinner one day less per month. It's also helpful to just download your credit card statements for the last 3 months into a big pile and see where your actual spending goes. Seeing actual numbers has an amazing affect on behavior, just like standing on a scale every morning has the effect to decreasing body weight over time.

[Stannis]

Some great posts. I decided to copy some of the great posts and put them in the OP so they aren't overlooked. If you feel I missed any, let me know.

[ForzaMetro]

How many of you "investors" are also carrying a high amount of debt? If you aren't debt-free (excluding your mortgage), you shouldn't be investing yet.

That’s a pretty wild oversimplification...

[N Y K]

Anyone else terrible at budgeting?

I think a trap people fall into is somehow thinking a budget means perfect predictability about how much things cost and when those costs will happen. The purpose of a budget is usually to try and cut down on spending and increase savings, right? So might as well start with a simple exercise of identifying a couple of small things, like passing on an afternoon latte or going out for dinner one day less per month. It's also helpful to just download your credit card statements for the last 3 months into a big pile and see where your actual spending goes. Seeing actual numbers has an amazing affect on behavior, just like standing on a scale every morning has the effect to decreasing body weight over time.

Just to throw in here, Intuit’s mint product is free and has been pretty useful for my budgeting. It’s pretty basic, but mostly does what you want:

- All accounts and transactions in one place
- Decent enough classifications of transaction types (that can all be corrected if wrong)
- Shows spending trends month over month
- Overspending alerts are helpful too

I’d love if it were more suggestive after analyzing spending, but all in all, a pretty useful free budgeting tool.

[robillionaire]

You're crushing it man, way to go.

Were you covered by that HDHP in December 2019? If so, you can make your 2019 contribution up to the HSA max ($3500) up until April 15, 2020, which I would highly recommend doing so if you anticipate being with the same employer and on the HDHP for 2020. Just remember to take the deduction on your 2019 tax return if you do it. HSA is a triple tax advantaged account, only one of its kind and the best investment vehicle out there.

And who is your HSA custodian? I ask because Fidelity now offers HSA's with all their low cost index funds. What I do is contribute to my HSA via payroll deduction throughout the year to get my employer contribution and to avoid FICA tax. Then at the end of the year, I move it to Fidelity (very easy) and invest in their index funds. If I'm not at the max then I just contribute directly to Fidelity to reach the max for the year.

BTW, I'm not a Fidelity employee lol. They have the best HSA out there and I just like to help ppl.

And yes, bump that 401k contribution up if you can. If you do pre tax contributions, you'll lower your taxable income by doing so and can use those tax savings to fund your Roth IRA. That's how I think about it.

Thanks!

Unfortunately, I was not covered by a HDHP in 2019, it was a PPO (LDHP).

My HSA is through "HSA Bank" and their investment options include Devenir & TD Ameritrade. Between those two, TD seemed like the clear winner to me. Devenir had some insane expensive funds.

I heard about the Fidelity tip as well. I heard they are they best in HSAs and no fees at all. Glad to hear the transfer is easy. I thought of doing it through BoA/Merril because that's where I have my current accounts. And it might help me get to get next perk tier. It requires you to keep 1000 in the account before you invest, which I don't mind just in case of medical emergencies. But Fidelity still looks like the best and I've only heard good things.

Thanks for that tip. Good to know that if I don't get to max the 3550, I can add more at the end of the year. So the money I add at the end of the year, will be post tax, correct?

I might just go ahead and increase my 401k contributions. I just like having that extra cash to invest in my more speculative stock investment account. It's more fun. But I'm not getting the tax advantages.

I understand, I went through that speculative stage too lol. The tax advantages are huge with the 401k though and it's hard to overstate how huge they are.

And your HSA contribution at the end of the year will be tax deductible. Even though your contribution will be with post tax money when you make it, you will be able to deduct it on your return. The only disadvantage is that you will not save on FICA taxes since it's not being done via payroll deduction. But not the biggest deal. I can talk about HSAs for hours so let me know if you want to know my strategy on how I use one, which in my opinion is the best way.

So I just wanted to make sure I'm understanding you properly, if I decide to max out my HSA now with post tax money (I have an HSA but I don't put anything into it, just employer contributions) I can somehow get tax money back as if it were pre-tax