I'm afraid my brain function is too puny to truly fathom the weight of this fact. But my gut is screaming yikes.Popeye_Card wrote: ↑April 5 21, 1:37 pmInteresting Atlantic article on index funds.
https://www.theatlantic.com/ideas/archi ... my/618497/
This is somewhat frightening:
Indexing has also gone small, very small. Although many financial institutions offer index funds to their clients, the Big Three control 80 or 90 percent of the market. The Harvard Law professor John Coates has argued that in the near future, just 12 management professionals—meaning a dozen people, not a dozen management committees or firms, mind you—will likely have “practical power over the majority of U.S. public companies.”
Investing for Retirement
- GeddyWrox
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Re: Investing for Retirement
- BottenFieldofDreams
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Re: Investing for Retirement
Here are three industries/cultural developments I'm starting to invest in a little and trying to learn about:
Legalized sports gambling
Podcasting (this could just end up being carried by Google or Amazon.)
Aging boomers
Any thoughts here? Tools for info?
Legalized sports gambling
Podcasting (this could just end up being carried by Google or Amazon.)
Aging boomers
Any thoughts here? Tools for info?
- GeddyWrox
- Caught you a delicious bass
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Re: Investing for Retirement
Ok, this might be a crazy thought. But hear me out.
We own our home outright. I'm 46 and won't retire for at least 15 years. Our house might be worth about $250,000. Haven't had it appraised. So I'm thinking about taking out a loan of around 100K and putting it straight into a 401K. The home loan rates are so low (like, what... 3%?) and my other retirement accounts do around 10% avg rate of return. It seems like this would almost be a no brainer. I must be thinking about it wrong. What's the catch? Why would I not want to do this?
We own our home outright. I'm 46 and won't retire for at least 15 years. Our house might be worth about $250,000. Haven't had it appraised. So I'm thinking about taking out a loan of around 100K and putting it straight into a 401K. The home loan rates are so low (like, what... 3%?) and my other retirement accounts do around 10% avg rate of return. It seems like this would almost be a no brainer. I must be thinking about it wrong. What's the catch? Why would I not want to do this?
- IMADreamer
- Has an anecdote about a townie he overheard.
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Re: Investing for Retirement
The catch is, if the markets quit returning that 10 percent or start losing. We are living in boom times from a market/financial sector stand point. It may not last forever. It may too though. It's a risk with a pretty big payout, but it's a risk none the less. Also keep in mind tax implications if this investment will be in a taxable account. This could cut into any returns pretty seriously.GeddyWrox wrote: ↑October 21 21, 8:36 pmOk, this might be a crazy thought. But hear me out.
We own our home outright. I'm 46 and won't retire for at least 15 years. Our house might be worth about $250,000. Haven't had it appraised. So I'm thinking about taking out a loan of around 100K and putting it straight into a 401K. The home loan rates are so low (like, what... 3%?) and my other retirement accounts do around 10% avg rate of return. It seems like this would almost be a no brainer. I must be thinking about it wrong. What's the catch? Why would I not want to do this?
- GeddyWrox
- Caught you a delicious bass
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Re: Investing for Retirement
Found this to be informative:
https://www.mortgageloan.com/using-home ... -investing
https://www.mortgageloan.com/using-home ... -investing
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- GRB Founder
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Re: Investing for Retirement
Welp my company announced something today that will likely make my job obsolete in 2-5 years. I've been preparing for this. Careers in tech don't age like fine wine. I'll be okay. Thanks bogleheads!
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- GRB Founder
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Re: Investing for Retirement
Hey everyone! As an FYI - the 401k contribution limits increased for 2022:'
That's an extra 1k per year. It's something you may want to keep in mind when adjusting your 401k % withdrawals for 2022.
Also, there was a push to end backdoor roth conversions in 2021, but it is still available for a max of 6k.
https://www.irs.gov/newsroom/irs-announ ... s-for-2022The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $20,500. Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000.
That's an extra 1k per year. It's something you may want to keep in mind when adjusting your 401k % withdrawals for 2022.
Also, there was a push to end backdoor roth conversions in 2021, but it is still available for a max of 6k.
- Popeye_Card
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Re: Investing for Retirement
Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.
https://treasurydirect.gov/indiv/resear ... uy.htm#how
https://treasurydirect.gov/indiv/resear ... uy.htm#how
- vinsanity
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Re: Investing for Retirement
Wuuuuuuut that's insane. Are people that down on the US economy?Popeye_Card wrote: ↑June 1 22, 2:52 pmMake inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.
https://treasurydirect.gov/indiv/resear ... uy.htm#how
- Leroy
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Re: Investing for Retirement
That is something I had no idea about.