susana1954
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Post by susana1954 on May 11, 2022 20:21:51 GMT -5
The downturn finally kicked my rear in gear to get to a financial advisor. We met today and will consolidate my old accounts (3) into one. He also recommended switching to the Roth 401k instead of the lre-tax 401k that my company offers because I have a lot of pre-tax investments already and need to balance it out. Besides that, we are 20 years out from retirement, so just staying the course. The advisor thought we were on great track to meet early retirement goals - our projection looked good without adding SS, so I'm planning on just staying the course and shoveling money in. Even if we plan on $1k/mo SS each, we should have plenty to retire in mid to late 50s. Be careful consolidating right now unless you can simply transfer securities in-kind or whatever it is called where you don't actually have to sell them during the current downturn. Too often financial advisors make their money by selling what you own and having you buy something else. Sometimes it can't be helped if you were already in a proprietary fund from, say, Merrill Lynch. But even then, now may not be the time to liquidate. I am sure the guy is great, but I have been burned a few times by stuff like that.
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steph08
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Post by steph08 on May 11, 2022 20:47:22 GMT -5
The downturn finally kicked my rear in gear to get to a financial advisor. We met today and will consolidate my old accounts (3) into one. He also recommended switching to the Roth 401k instead of the lre-tax 401k that my company offers because I have a lot of pre-tax investments already and need to balance it out. Besides that, we are 20 years out from retirement, so just staying the course. The advisor thought we were on great track to meet early retirement goals - our projection looked good without adding SS, so I'm planning on just staying the course and shoveling money in. Even if we plan on $1k/mo SS each, we should have plenty to retire in mid to late 50s. Be careful consolidating right now unless you can simply transfer securities in-kind or whatever it is called where you don't actually have to sell them during the current downturn. Too often financial advisors make their money by selling what you own and having you buy something else. Sometimes it can't be helped if you were already in a proprietary fund from, say, Merrill Lynch. But even then, now may not be the time to liquidate. I am sure the guy is great, but I have been burned a few times by stuff like that. Nope, no selling and buying but thanks for looking out for me Just consolidating old accounts into a traditional 401k.
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Post by minnesotapaintlady on May 11, 2022 21:05:39 GMT -5
The downturn finally kicked my rear in gear to get to a financial advisor. We met today and will consolidate my old accounts (3) into one. He also recommended switching to the Roth 401k instead of the lre-tax 401k that my company offers because I have a lot of pre-tax investments already and need to balance it out.
Besides that, we are 20 years out from retirement, so just staying the course. The advisor thought we were on great track to meet early retirement goals - our projection looked good without adding SS, so I'm planning on just staying the course and shoveling money in. Even if we plan on $1k/mo SS each, we should have plenty to retire in mid to late 50s. Make sure you adjust your withholdings to compensate. Also are you maxing the Roth IRAs? They're more flexible than the Roth 401K.
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steph08
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Post by steph08 on May 12, 2022 9:58:48 GMT -5
The downturn finally kicked my rear in gear to get to a financial advisor. We met today and will consolidate my old accounts (3) into one. He also recommended switching to the Roth 401k instead of the lre-tax 401k that my company offers because I have a lot of pre-tax investments already and need to balance it out.
Besides that, we are 20 years out from retirement, so just staying the course. The advisor thought we were on great track to meet early retirement goals - our projection looked good without adding SS, so I'm planning on just staying the course and shoveling money in. Even if we plan on $1k/mo SS each, we should have plenty to retire in mid to late 50s. Make sure you adjust your withholdings to compensate. Also are you maxing the Roth IRAs? They're more flexible than the Roth 401K. I might keep doing the max to my 401k pre-tax and add in a Roth Ira. I can't access that Roth 401k money before 59.5 without penalty, right? But I could with an IRA?
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Deleted
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Post by Deleted on May 12, 2022 10:15:57 GMT -5
We aren't changing anything at the moment. Last month we changed the investment platform for our joint account but that had nothing to do with market volatility, it was a change we had discuss last year. We are extremely diversified in both the joint and IRA accounts, primarily in equities.
DH's pension and our SS are ample for our routine expenses and even allow us to accumulate savings for the occasional big expense such as the AC unit and DH's car. We buy what we need, and some of what we want.
I think the talk about inflation, recession, housing bubble etc. makes me anxious just because, not due to any real challenge. Paying $4.09 for gas, having my 1st ever $100+ bill at Aldi, seeing a beef tongue priced at $45 - all that is un-nerving even though we have the $$. It's psychological.
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jerseygirl
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Post by jerseygirl on May 12, 2022 10:18:42 GMT -5
We’re also ok with SS and annuities but lower income people are having very difficult times with inflation on food and gas
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Post by minnesotapaintlady on May 12, 2022 10:35:46 GMT -5
Make sure you adjust your withholdings to compensate. Also are you maxing the Roth IRAs? They're more flexible than the Roth 401K. I might keep doing the max to my 401k pre-tax and add in a Roth Ira. I can't access that Roth 401k money before 59.5 without penalty, right? But I could with an IRA? Yes, you can take Roth IRA contributions out at any time Plus you have a lot more investment options and depending on your 401K probably lower fees going the IRA route. Also, Roth IRAs aren't subject to RMDs, but Roth 401Ks are (of course you'll probably retire before RMDs kick in and have rolled the 401K into an IRA anyhow)
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CCL
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Post by CCL on May 12, 2022 11:32:27 GMT -5
Make sure you adjust your withholdings to compensate. Also are you maxing the Roth IRAs? They're more flexible than the Roth 401K. I might keep doing the max to my 401k pre-tax and add in a Roth Ira. I can't access that Roth 401k money before 59.5 without penalty, right? But I could with an IRA? Some 401ks allow access at 55 if retired.
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jeffreymo
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Post by jeffreymo on May 12, 2022 11:39:55 GMT -5
No changes. We have $12k set aside as part of our emergency fund that I’d be tempted to invest if prices continue to go lower.
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pooks
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Post by pooks on May 12, 2022 12:58:23 GMT -5
I am not looking at how much we are down. DD's college money is out of the market, Dh's job is iffy. We have some money sitting on the side that I am tempted to put in the market, but I also want to buy real estate or a van. This recession (I think we are headed that way) is making me really nervous to make any moves.
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jerseygirl
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Post by jerseygirl on May 12, 2022 14:06:14 GMT -5
Yikes, I bought $1000 of Bitcoin through RobinHood when it was $48000. Just sort of gambling money, I don’t like casinos! Anyway it’s $28000 today , quite a number of Bitcoin millionaires are hurting. Lots of turmoil in the cryptocurrency If an established company like Amazon can lose big then no surprise that these cryptos based on nothing are tanking
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souldoubt
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Post by souldoubt on May 12, 2022 14:57:14 GMT -5
Yikes, I bought $1000 of Bitcoin through RobinHood when it was $48000. Just sort of gambling money, I don’t like casinos! Anyway it’s $28000 today , quite a number of Bitcoin millionaires are hurting. Lots of turmoil in the cryptocurrency If an established company like Amazon can lose big then no surprise that these cryptos based on nothing are tanking I put some money into Ethereum, Solana, Polkadat and Cardano from December-February. Like you for me it's gambling money or like buying a scratcher. Was down not long after purchasing but over the last so many weeks or few months the smaller ones all lost more than half of their value and my initial investment is down over 60% to date.
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bean29
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Post by bean29 on May 12, 2022 15:23:33 GMT -5
Yikes, I bought $1000 of Bitcoin through RobinHood when it was $48000. Just sort of gambling money, I don’t like casinos! Anyway it’s $28000 today , quite a number of Bitcoin millionaires are hurting. Lots of turmoil in the cryptocurrency If an established company like Amazon can lose big then no surprise that these cryptos based on nothing are tanking I put some money into Ethereum, Solana, Polkadat and Cardano from December-February. Like you for me it's gambling money or like buying a scratcher. Was down not long after purchasing but over the last so many weeks or few months the smaller ones all lost more than half of their value and my initial investment is down over 60% to date. I thought about buying some, but I was never very comfortable with it, even for gambling $$ - but I am not much on gambling either.
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souldoubt
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Post by souldoubt on May 12, 2022 17:25:26 GMT -5
I put some money into Ethereum, Solana, Polkadat and Cardano from December-February. Like you for me it's gambling money or like buying a scratcher. Was down not long after purchasing but over the last so many weeks or few months the smaller ones all lost more than half of their value and my initial investment is down over 60% to date. I thought about buying some, but I was never very comfortable with it, even for gambling $$ - but I am not much on gambling either. I'll be honest, I'm not sold on cryptocurrencies. So far they've been incredibly volatile so as an accepted medium of exchange they have a long way to go. The biggest or rather loudest proponents seem to be people who got in early and became millionaires on paper, firms that have taken up large positions and individual investors who got in later and really want it to be their winning lottery ticket. I have friends who invested small amounts in some of the alt coins that saw huge returns last year. A few hundred dollars turned into thousands and when I asked if they sold to even get their initial investment back they hadn't and I still don't think they have. To be fair I understand the psychological aspect of not wanting to miss out on the next big stock or thing that explodes but these were coins that they can produce an unlimited amount of. I told myself if my investment doubled I would sell half to get my money back and let the rest do what it does. If it really did double though maybe I'd fall into the lottery ticket group because I don't need the money and it's always fun to think what if it really took off. Edit - just came across this article which seems relevant www.marketwatch.com/story/heres-how-much-money-you-wouldve-lost-if-you-bought-crypto-during-matt-damons-fortune-favors-the-brave-commercial-11652379170?siteid=yhoof2I agree the commercial isn’t to blame but I thought it was interesting that supposedly 40% of Bitcoin investors are upside down and these commercials are like peak mania as they take it mainstream. Like me I’m guessing most got in late I just hope it was with money they could afford to lose. Curious to see what happens with Fidelity trying to bring cryptos to 401K investors.
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resolution
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Post by resolution on May 12, 2022 18:04:25 GMT -5
Make sure you adjust your withholdings to compensate. Also are you maxing the Roth IRAs? They're more flexible than the Roth 401K. I might keep doing the max to my 401k pre-tax and add in a Roth Ira. I can't access that Roth 401k money before 59.5 without penalty, right? But I could with an IRA? There is also the possibility of Substantially Equal Periodic Payment, which allows you to make regularly scheduled withdrawals without penalty. www.investopedia.com/terms/s/sepp.asp
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Regis
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Post by Regis on May 13, 2022 7:51:34 GMT -5
I might keep doing the max to my 401k pre-tax and add in a Roth Ira. I can't access that Roth 401k money before 59.5 without penalty, right? But I could with an IRA? Some 401ks allow access at 55 if retired. I believe this is true only with the employer you retired from. If you've got money left in a previous employer's 401k, you'll need to wait until 59.5.
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jerseygirl
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Post by jerseygirl on May 18, 2022 14:03:55 GMT -5
Just looked at my portfolio Uggh! Think I need an adult beverage before 5:00
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CCL
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Post by CCL on May 20, 2022 17:32:13 GMT -5
This is starting to get old...
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Post by minnesotapaintlady on May 21, 2022 12:02:05 GMT -5
I ran FireCalc yesterday and I'm still at 98% success rate for retiring in 6 years at a comfy number (3K/month is my bottom and this is based on 4K/month), so not depressed yet. I think we have a long way to go on this down ride though.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 21, 2022 13:12:57 GMT -5
I ran FireCalc yesterday and I'm still at 98% success rate for retiring in 6 years at a comfy number (3K/month is my bottom and this is based on 4K/month), so not depressed yet. I think we have a long way to go on this down ride though. I was going to say bite your tongue, but I've become a little too sang froid for that sentiment. This is happening, so c'est la guerre. I've been so mixed up about this emotionally over the past month or so. 1) despair that I'm not on the could-retire-any-day-now-let-me-check-the-stock-market-today status 2) super grateful and releived that this is happening while I am still pulling in the nice paycheck 3) wondering if this is going to be a minor blip (< 2 years) or a major event (like a lost decade *or more?!?* of growth) or something inbetween. 4) trying to figure out a strategy for my advantage in any event.....one that doesn't have me working through the recovery if it takes 10 years from now.... 5) speculating if I could still quit the day job anyway and beef up Rukh, Inc for a little extra income 6) smug satisfaction that I am still a millionaire with liquid assets only (shoot! did I just tempt fate ) 7) smug satisfaction that I am sitll investing over 5k/month for my maybe-someday-soon retirement 8) smug satisfaction that every extra dollar I put into the market since hitting that 2 million mark (and losing it) is making my eventual return to 2 million more likely and will be on a more secure foundation, i.e. more shares, and the more shares I have means that I will get to the 2 million mark that much quicker as I don't need the market to match its former high point to have the same balance. so I guess emotionally smug wins out. But that was an evolution after working through a lot of disappointment but coming around to thinking I really lucked out the market didn't shoot up another 5-10% before this happened, because I likely would have quit! and then even if I could have managed to persevere with the retirement/semi retirement (which is likely) the stress of watching the pullback progress over these past few months and into the future would have been a lot. especially with the tesla and netflx volatility. I am trying to scrap up more money to invest and save to get back to maybe-i-can-quit-the-day-job status sooner. This week sent out an RI invoice for over 15k. That's for my biggest project of the year. Super excited to think about what I am going to do with that money. Have been spending more on household related things, and that is going to continue for a while, but I hope to be able to invest a large chunk of that check. lol, will be running to the mail daily for it.
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saveinla
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Post by saveinla on May 21, 2022 13:22:01 GMT -5
smug satisfaction that I am still investing over 5k/month for my maybe-someday-soon retirement
- Congrats Rukh O'Rorke. That is indeed something to be smug about.
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Deleted
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Post by Deleted on May 22, 2022 4:52:22 GMT -5
smug satisfaction that I am still investing over 5k/month for my maybe-someday-soon retirement
- Congrats Rukh O'Rorke . That is indeed something to be smug about. It really helped DH and me that during the financial crisis we just kept stashing money away and buying at bargain-basement prices. Of course we were fortunate- I kept my job and DS's SS kept rolling in. I'm holding a bigger % of cash now than I ever have and I'm not ready to go running back into the market. If I'm a little late getting in when it recovers (and it will), so be it.
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bookkeeper
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Post by bookkeeper on Jun 11, 2022 10:53:20 GMT -5
smug satisfaction that I am still investing over 5k/month for my maybe-someday-soon retirement
- Congrats Rukh O'Rorke . That is indeed something to be smug about. It really helped DH and me that during the financial crisis we just kept stashing money away and buying at bargain-basement prices. Of course we were fortunate- I kept my job and DS's SS kept rolling in. I'm holding a bigger % of cash now than I ever have and I'm not ready to go running back into the market. If I'm a little late getting in when it recovers (and it will), so be it. Us too! When the market tanked in 2008, nothing changed for us. We still had our house and our jobs with a good income. We doubled down and started saving around 50% of our income, mostly invested in our 401k and IRA's. We bought extra shares in a down market for several years. In 2014, the market had risen quite nicely. We were able to say goodbye to our paychecks and try early retirement. We bought another house last weekend. I think houses are very affordable here in the middle of America. I don't see the value of a single family home going down long term. I feel real estate is a nice hedge against inflation.
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seriousthistime
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Post by seriousthistime on Jun 11, 2022 15:07:51 GMT -5
I retired at the end of 2020 so am not adding new money to tax-deferred accounts. I turn 72 next year. I think the amount of my 2023 RMD will be based on the value of my tax-deferred funds at the end of 2022. So if the market is still in a downturn at year end, my first RMD will be lower. I don't need the money, so I guess that's good. I could just take the RMD, pay the tax, and invest in the same funds so I don't miss out on the recovery. And yeah, I will take the first RMD during the year I turn 72 and not postpone it until April of the following year. If I did that, I would have to take two RMDs in 2024 and that would likely bump me into a new IRMAA category. I was just thinking last night of something bookkeeper mentioned: real estate is a part of our overall portfolio and it is doing reasonably well. Every location I've looked at, for myself or checking for my friends (so all over the country), leads Redfin to send me multiple emails daily with status changes on listings (new listing, pending, contingent, open house, price reduction, sold), and I'm seeing plenty of places going pending or contingent quite quickly. Sold prices seem to be hovering within plus/minus 5% of full price.
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Deleted
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Post by Deleted on Jun 11, 2022 17:23:54 GMT -5
I retired at the end of 2020 so am not adding new money to tax-deferred accounts. I turn 72 next year. I think the amount of my 2023 RMD will be based on the value of my tax-deferred funds at the end of 2022. So if the market is still in a downturn at year end, my first RMD will be lower. I don't need the money, so I guess that's good. I could just take the RMD, pay the tax, and invest in the same funds so I don't miss out on the recovery. And yeah, I will take the first RMD during the year I turn 72 and not postpone it until April of the following year. If I did that, I would have to take two RMDs in 2024 and that would likely bump me into a new IRMAA category. I was just thinking last night of something bookkeeper mentioned: real estate is a part of our overall portfolio and it is doing reasonably well. Every location I've looked at, for myself or checking for my friends (so all over the country), leads Redfin to send me multiple emails daily with status changes on listings (new listing, pending, contingent, open house, price reduction, sold), and I'm seeing plenty of places going pending or contingent quite quickly. Sold prices seem to be hovering within plus/minus 5% of full price. In some situations, it is beneficial to move stocks from your IRA to a taxable account rather than sell stocks in your IRA and move cash. I did that with my 2021 RMD, moved it in 2022. It all depends on an individual's financial situation
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Rukh O'Rorke
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Post by Rukh O'Rorke on Jun 11, 2022 17:35:08 GMT -5
I retired at the end of 2020 so am not adding new money to tax-deferred accounts. I turn 72 next year. I think the amount of my 2023 RMD will be based on the value of my tax-deferred funds at the end of 2022. So if the market is still in a downturn at year end, my first RMD will be lower. I don't need the money, so I guess that's good. I could just take the RMD, pay the tax, and invest in the same funds so I don't miss out on the recovery. And yeah, I will take the first RMD during the year I turn 72 and not postpone it until April of the following year. If I did that, I would have to take two RMDs in 2024 and that would likely bump me into a new IRMAA category. I was just thinking last night of something bookkeeper mentioned: real estate is a part of our overall portfolio and it is doing reasonably well. Every location I've looked at, for myself or checking for my friends (so all over the country), leads Redfin to send me multiple emails daily with status changes on listings (new listing, pending, contingent, open house, price reduction, sold), and I'm seeing plenty of places going pending or contingent quite quickly. Sold prices seem to be hovering within plus/minus 5% of full price. In some situations, it is beneficial to move stocks from your IRA to a taxable account rather than sell stocks in your IRA and move cash. I did that with my 2021 RMD, moved it in 2022. It all depends on an individual's financial situation how do you do that? seems more complicated, and like people just don't know how to do it...
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Post by minnesotapaintlady on Jun 11, 2022 18:15:53 GMT -5
In some situations, it is beneficial to move stocks from your IRA to a taxable account rather than sell stocks in your IRA and move cash. I did that with my 2021 RMD, moved it in 2022. It all depends on an individual's financial situation how do you do that? seems more complicated, and like people just don't know how to do it... An in-kind distribution. You're still taxed on the full value of the asset you move to taxable, but you don't have to cash them in. pocketsense.com/do-inkind-distribution-rmd-6707671.html
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Deleted
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Post by Deleted on Jun 11, 2022 18:40:23 GMT -5
In some situations, it is beneficial to move stocks from your IRA to a taxable account rather than sell stocks in your IRA and move cash. I did that with my 2021 RMD, moved it in 2022. It all depends on an individual's financial situation how do you do that? seems more complicated, and like people just don't know how to do it... yes, what MPL said. I had to take an RMD but there wasn't enough cash in my IRA and I will never sell stocks when they are down. We moved enough Apple shares from my IRA to our joint account to satisfy the RMD requirement and a little bit more which will reduce next year's RMD. I will still owe US income tax on the value of the Apple shares transferred just as if I moved cash.
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Deleted
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Post by Deleted on Jun 12, 2022 6:49:48 GMT -5
When the market tanked in 2008, nothing changed for us. We still had our house and our jobs with a good income. We doubled down and started saving around 50% of our income, mostly invested in our 401k and IRA's. We bought extra shares in a down market for several years. In 2014, the market had risen quite nicely. We were able to say goodbye to our paychecks and try early retirement. BF is still working and actually reduced his retirement contributions recently so he could pay off cc debt. I totally understand that paying off cc debt is a good thing but he's missing great buying opportunities. Not my circus, not my monkeys.
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seriousthistime
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Post by seriousthistime on Jun 12, 2022 9:24:05 GMT -5
Does the in-kind distribution work for mutual funds too? I have no individual stocks in my tax-deferred accounts.
So, for example, could I contact Vanguard and ask them to do an in-kind distribution of X shares of my Vanguard 500 index fund from my Vanguard IRA to my Vanguard taxable account?
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