With a Roth IRA you can withdraw CONTRIBUTIONS (not gains) before 59.5, penalty free. There are some circumstances that allow you to withdraw gains penalty-free as well.
It may not be your ultimate goal, but the Wiki in r/financialindependence will help you figure some of this stuff out.
Opening a Roth IRA yourself is surprisingly easy. Choose one of the three links below to open an IRA. They are the three most popular brokerage firms that you can open IRA's with. You don't need an advisor.
All you need to do is deposit money every two weeks and pick one index fund. (I recommend VTI). Once you pick your fund, there's nothing else to do but to keep depositing money. That is all the financial advisor would do but they would charge you for it.
Open IRA with Fidelity
Open IRA with Vanguard
Open IRA with Charles Schwab
If your grandfather died in 2019 or earlier, you fall under the old set of rules, which allow you to stretch out withdrawals from the inherited Roth IRA over your lifetime. However, you would have needed to elect that method right away. If it’s been a few years and you haven’t taken any withdrawals yet, your remaining options may be limited, or there could be additional tax penalties. Schwab has a pretty good summary of the old rules here. Be sure to scroll down to the heading “Roth: Non-spouse inherits”
You can avoid penalties in some cases.
Are you sure about that? There are Schwab brokerage locations across the country, but the bank is a separate entity and you can't do any banking there (I've tried before) although they can occasionally help you with administrative issues (link).
> What are the repercussions of a 529 if they don't spend it on schooling?
However, if you decide to use the money for something other than qualified education expenses, you will have to pay income taxes plus a 10% penalty on the earnings.
>Also, I'd rather them not spend their "spending money" on school as I'm planning on providing for that myself.
Okay. As a reminder money is fungible. Putting this money towards school means you'd have to put less in for school and could put money towards other things.
Regardless I'd advise you to bump up the 529 contributions or put 2500 towards the 529. Because with the current calculations, it's not enough. I'm even doubting is enough for one semester in 18 years with the way college expenses are right now. Even in my in state school, their website is now stating avg 4 year uni costs are 100k.
This hit the news last year. Had to find it again.
The two changes that I've experienced is credit utilization gets punished harder and they no longer consider your credit "birth" as a major factor (instead it's the average of all current credit lines)
Custodial IRAs are out there. They basically allow for parents to open up accounts (and deposit money) in their child's name and gain interest. This money can be used on college, housing, and retirement.
One of many vehicles: https://www.schwab.com/ira/custodial-ira
This sub is increasingly becoming another outlet for the mob meme stock traders of wsb, superstonk, or whatever new sub they're in now. The amount of misinformation has increased and the majority of people seem to have such a black and white view of topics (e.g. PFOF is good or PFOF is bad) which just screams having a very shallow understanding of the topic being discussed.
PFOF for the vast majority of retail investors makes trading cheaper. Unless you're trading size in your PA, you're certainly saving more on the small price discrepancy some HFT is making off your odd lot of shares than the old flat 5-10 dollar per trade model. At the same time, I realize that with current best execution rules, the money is made when the HFT that the trades are being routed to offer better than NBBO... which is incredibly common. Plenty of places publish at least some form of rudimentary data on how often they have "price improvement" (which has it's own issues, the rules around what constitutes price improvement aren't great - once again nothing is black/white) like here and the numbers are staggering. There's improvement like 99+% of the time on SPX names which simply suggests there's tons of hidden liquidity in the dark pools.
This leads to the question of why isn't there a greater push of adding more clarity and adding more enforcement behind what can be consider NBBO and how much liquidity can be hidden away to be accessed by HFTs. While connected, I think this can be a better way of dealing with the PFOF issues at hand instead of targeting something that seems to benefit the small guy for once.
How to move your money:
If your advisor contacts you trying to talk you out of it, don't give them any ground - "I've decided to go elsewhere", not "Your fees are too high" which might lead to them suddenly being able to reduce their fees.
Hopefully this broker has a website you can log in to and pull info about your account from. A few things to look for:
What kind of account this is - is it an IRA or is it a taxable brokerage account?
What funds are you invested in? Some funds charge a fee when you sell, some have a fee when you first buy them. There's nothing you can do about that now, but it's better to know.
Yeah, just double-checked... With Schwab there's no minimums, no monthly fees, and no commissions on stock trades: https://www.schwab.com/public/eac/account_features/brokerage_account
They're pretty good. My employer uses Schwab for our RSU grants and I'm pretty happy with them.
The fees charged by check cashing places are way too high imo, every dollar you earn counts.
Mobile app deposits into my Schwab bank account are instantaneous, never had a hold put on them, even for larger checks around $5k. The only time I've experienced a hold is when my account was brand new and I tried mobile deposit for the first time, but ever since it's been great.
I'd try a different bank account as those hold times are unreasonable especially if you've never never had any hot/fraud deposits, I'm surprised USAA would do that.
Your bank probably has one that will do it for free...
If they don't...find a better bank.
edit: FWIW, I mainly use a bank that doesn't even have physical branches (but has no ATM fees anywhere)...so obviously they don't do coin services at all. My secondary bank does it in some branches. Last time I had a bunch of coins, I just dumped them into a coinstar machine for an Amazon credit (which has zero fee), added it to my account, and forgot about it. I shop enough on amazon that the credit inevitably got used on some random purchase that I would have made either way.
You do pay fees (operating costs) but they're paid yearly and are typically tiny (often <0.25%), here is a good explanation from Schwab with a couple of examples.
How many of these posts do I have to comment on and tell people to stop spreading this bullshit? I'm tired.
This is part of a larger sweep of regulation by the SEC: https://www.reddit.com/r/Superstonk/comments/pcyf4c/proof_the_sec_is_acting_they_are_cracking_down_on/
There are over 2000 stocks that have been de-listed to the Expert Market for not keeping their financials up-to-date. Anything that isn't Pink Current is going this route. Here is a list of those stocks: https://www.schwab.com/resource/otcexpertmarket
Sears is just one name on a very large list.
STOP POSTING AND UPVOTING THIS BULLSHIT.
Remember too that you can use it for your own education in case you want to go for another degree.
>the account belongs to you and you have the right to change the beneficiary.
>As long as the new beneficiary is a family member—a sibling, first cousin, grandparent, aunt, uncle or even yourself—the money can be used for qualified education expenses without incurring income taxes or penalties. Qualified expenses include tuition, required fees, books, supplies, computer-related expenses, even room and board for someone who is at least a half-time student.
>Most 529 plans allow you to change the beneficiary once a year, so that leaves the door wide open for future use. You could even convert it back to your son's benefit should his plans change.
>This flexibility gives you a lot of options. Let's say you decide to go back to school. You make yourself the beneficiary and use 50 percent of the 529 assets for your studies. What do you do with the balance? You could simply change the beneficiary to another member of your family who could use it for their own qualified education expenses.
Don’t all brokers do this?
They are taxes at a significantly reduced rate (-20 percentage points or so, depending on tax bracket). Most proposals like this are too tax them as income instead of at 0/15/20.
FWIW, you can withdraw contributions you have made without a penalty, but that's still not ideal. You can contribute $5500 per year. You have until April of the following year to make contributions for the current year, so if you only contribute $5000 by December 2018, you can max it out with another $500 from January to April of 2019.
If you want to just put money in it and forget about it for the most part use a Target Date Fund, you pick when you want to retire and it will re-allocate itself to become more conservative the closer you get to retirement.
I like Schwab since they have no minimum, so your money can be invested right away. Here's their target date funds. You'll most likely want to use the SWYNX fund since you're so far out from retirement.
If you want to allocate it yourself, they have other mutual funds, but this is a good way to get started if you're still learning or don't care to learn and just want to save for retirement.
They do. This web page states that you're helped by a "Certified Financial Planner (TM)", and this page (Also Schwab, so terminology matches up) states that Certified Financial Planners are held to the fiduciary standard.
T+2 business days is standard in the US. This is not broker specific.
Resource link: https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline#:~:text=For%20most%20stock%20trades%2C%20settlement,would%20typically%20settle%20on%20Wednesday.
> I guess it depends on when you cherry pick the start and finish dates.
To add, what JP Morgan is actually selling in that chart is their 60/40 and 40/60 portfolios because it would absolutely be followed up with a conversation about risk and they would compare those asset classes to a chart showing the worst 1 year % drops, REIT and SP500 would have seen substantial declines compared to those 60/40 and 40/60.
they would probably say something like "the average investor trys to time the market and often makes emotional decisions when they should just stay invested but be invested in a way that allows them to sleep at night. Here is a portfolio that has less risk and will allow you sleep at night when the SP500 is down 40%+ and your portfolio is not..."
edit: worst 1 year declines from schwab
Declining bond yields normally indicate that bond investors have a gloomy outlook on the economy. However, the message from the Treasury Inflation-Protected Securities (TIPS) market suggests that investors believe inflation risk is rising, a phenomenon usually associated with an overheating economy.
The drop in the U.S. dollar is also a consequence. The dollar has dropped by about 9% against a broad basket of currencies since the Fed pushed interest rates below the inflation rate. Holding dollars is less appealing when real interest rates are negative.
The problem is that you only looked at the last 5 years with Trump's tax cuts, Fed's 0 interest rate and concluded that "growth" is where you want thing to be next 30 years:
Zooming out to 40 years or beyond, Schwab research concluded the opposite:
>Over the past 40 years, stocks that maintained or grew their dividends outperformed those that cut their payouts or offered none at all.
If in doubt, look at the period 2000 - 2013 where SPY barely grew an inch had you invested before 2000, the whole 13 years, your money just is not doing anything.
You are still young, you haven't lived through the 2000 and 2008 so many young investors like you don't know any better. Although lots of you guys have been burnt severely recently with ARKK but I think you guys all need a bigger lesson to hammer it home.
Have you considered an online bank?
I have a Schwab investor checking account.
You deposit checks by taking a picture of them with their app on your phone.
Plus the usual checking account accoutrements (bill pay, etc.)
It is linked to an investment account, but you do not have to use that account at all; you can use just the checking account.
The only thing you really can't do is deposit cash.
Edit: One more big plus: You'll earn twenty times more in your checking account (0.20% APY) with Schwab than you'll earn in a savings account with Chase (0.01% APY)
Not how it works. You pay income taxes on whatever you receive as well as capital gains taxes if it grows when you sell.
You pretty much have it however the rates do not get very good usually unless you are borrowing around a few million and this is usually pretty standard .
For example at schwab you can see the rates here
at 100k the rate is 4.7% what is horrible and no idea who would take that as you would be better off getting a mortgage/car loan/loan from a credit union
however at 2.5 million not its at about 1.95% what is a much better rate
sounds like you can barely afford your rent, which is presumably why you feel that it takes so long to build savings. Given that, I would imagine buying a home is really expensive in your area, that 20% down payment might be totally unobtainable at the rate that you are saving for it? What will you do with that savings in the meantime - hopefully not hold it as cash.
personally, I would max the retirement accounts before doing anything else. stretching yourself very thin to purchase a home in an expensive area is a good way to get yourself into trouble.
you can also withdraw 10k from an ira for a 'first time home purchase' if that applies to you. Also in some cases for medical expenses.
Unless you she already gave you $11,570,001 or more this year, then no; it is not subject to taxation. The lifetime gift limit is currently $11.58m. In addition, you can give up to $15k per year to an individual without it affecting your lifetime gift limit. Here's a more detailed explanation if you're interested.
According to archives, their margin requirements were elevated on the 9th of the month. https://web.archive.org/web/20210209224607/https://www.schwab.com/margin-updates
I am not sure what your experience shorting stocks is but I trade as a main source of income and am used to have various different types of positions on. It's not uncommon for the margin requirements to be raised on a stock that's went up so quickly.
It makes sense that if a stock is moving up in multiples, you will need to have multiples available to pay for losses.
According to Charles Schwab " When a stop order is submitted, it is sent to the execution venue and placed on the order book, where it remains until the stop triggers, expires, or is canceled by the trader. Once triggered, a stop order becomes a market order, which will generally results in an execution, but there is no guarantee of any specific execution price or price range: the resulting execution price may be above, at, or below the stop price itself. " I want to keep full transparency, as some people have asked if the stop orders are visable on the order book before they execute. It does sound as though they are, at least on Charles Schwab. It is important to note that on RH, the order book only shows limited orders. Now I would hate to push a conspiracy theory, but would it really surprise anyone if citadel colluded with Robinhood to see where our stop orders are placed? I have also heard of some people not being able to cancel their stop order.
Stop Orders: Mastering Order Types | Charles Schwab
Google "inherited IRA". Here's a good example result. You want to look at either "Traditional–Non-spouse inherits" or "Roth–Non-spouse inherits". Read that first.
Pick a brokerage firm and google their name plus open IRA. Most of the big ones have fairly decent investor education pages available to the public. If you prefer talking to a human being, call the number listed on the website and they’ll be happy to answer your questions.
Note that if you are close to being a higher income person, this will make the back door roth option significantly more complicated, so keep that in mind.
OP is using the (relatively) new portfolio option for teenagers offered by FIdelity, I believe other brokerages offer similar profiles but they call them custodial accounts.
As far as learning this stuff goes, the sidebar is your friend. Other subreddits (like /r/personalfinance ) are a goldmine for just getting the general principles of money management down. I'd recommend just following the market before investing in it, just to witness the trends and seeing how major news effects the big caps. You can ask if your job offers a stock purchase plan, I don't know about investing in a Roth at such a young age, then again I didn't really have that opportunity so it might actually be to your benefit. Always remember, the goal of investing is to make more money than what you put in, there is no difference between $100 and $1000, it's all superficial.
No worries, your response helped me in looking at my own question so thank you!
For any TDA apes out there... we good. Schwab reports 6 trillion in assets
I would just give her USD by whatever means is most convenient for her (Venmo, Cash App, write a check, etc.) and let her spend/withdraw it in EUR after she arrives. The best exchange rates for physical cash come from using a no-foreign-transaction-fee debit card to withdraw cash at an ATM in the destination country. Schwab’s free investor checking account is popular with expats and international travelers because it charges no foreign transaction or currency conversion fees, and reimburses all ATM fees worldwide. For situations not requiring cash, there are also many popular credit cards that have no foreign transaction fees, assuming she knows how to use credit responsibly.
You really can't go wrong with any of these three brokers. I worked for an investment firm and we used with both Fidelity and Schwab. Schwab has the best customer service of all three, which is a big factor for me. During times of market volatility like last week, I really can't emphasize the importance of customer service and trading operations. I've used them personally for 5 years now and their 24/7 chat feature is great. Schwab and Fidelity both have commission free equity trading and standard option contracts are $.65.
Here is a breakdown from their website comparing Schwab to Fidelity/Vanguard:
>I only like low cost total market mutual funds. Not sure if Schwab can compete there.
Schwab has exactly that, it's SWTSX. It has the lowest fee (.03%) and the lowest minimum investment ($1) of any total market mutual funds available.
SCHWAB, BITCHES. THANK ME LATER.
You are describing a concept called "Market Timing."
This has been shown time and time again to be a failing strategy.
I stopped at February on archive.org as it’s been the same since then. Only thing changed is other stocks also having been restricted.
It is not instantly cashed out, but what the beneficiary's options are will depend on if they are your spouse or not and whether it is a traditional or Roth account. Schwab has a good overview of the rules.
This only applies to earnings.
"You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. "
not "stock advice" but very helpful identifying bias that cost you money.
Choiceology by Charles Schwab
Quite honestly if you're getting specific stock advice from a podcast or an internet forum, you're going to have a tough time. Most advice is very self serving and therefore suspect. my 2c
Charles Schwab bank's password requirements are nearly as bad:
>Our password requirements, which facilitate online account security, are as follows:
>Your password must be 6-8 characters long. It also must:
>* Include both letters AND numbers.
>* Include at least one number BETWEEN the first and last character.
>* Contain no symbols (!, %, #, etc.)
Not case sensitive is pretty much the dumbest thing ever, though...
Schwab's is called "PAL" Pledged Asset Line.
Better than margin. I've heard you can talk and try to negotiate down the interest rate when they give you one.
Yes most banks don't accommodate this but some do. Look at Schwab's Pledged Asset line product ( https://www.schwab.com/pledged-asset-line )
And margin loans with interactive brokers https://www.interactivebrokers.com/en/index.php?f=46376
Under "How does the Invest with Rewards benefit work?" section from this archived copy: http://web.archive.org/web/20210305001533/https://www.schwab.com/credit-cards/faq
This is too coordinated of a removal between Schwab and Amex with the language and links disappearing on both sides - if you're in doubt and were planning on using this in the future, it's time to just pull the trigger.
The legal requirement is that they have to give you nbbo.
Some brokers will do better than nbbo. They call that price improvement.
This page explains what I'm talking about
Open a Roth IRA with Schwab. They have no minimums and Roth IRAs are tax advantaged retirement accounts. No fees.
Then pick the target fund closest to your target retirement date and slowly start putting your money in there (Make sure you pick a passive fund, not an active).
Roth IRAs have a limit of $5500 annually, but are a great choice to start investing.
an IRA is a tax advantaged account. mine is a Roth IRA so i don't pay any tax on the gains or when i withdraw when I'm 60. a traditional IRA doesn't have those benefits but you can deduct the contribution from your taxes
Personally I would use the Schwab debit card. Zero liability due to Schwab's policy.
When we went to Europe (about two years ago) we would use the Schwab card to withdraw cash at ATMs. We'd do a withdrawal about once a day so that we weren't carrying around too much cash. But I'm sure you can use the card at restaurants and POSes fine.
Have you tried applying for a Capital One card? Capital One cards have no FTFs.
Whatever you do, though, I would tell the bank that you are going to Greece for the period of time (typically this can be done online).
> Draw her filing for a Roth IRA!
...Two clicks and an e-signature on any mainstream online brokerage platform?
It seriously takes all of 3 minutes on a Fidelity, Charles Schaub or Vanguard app to set this up. You could do it in the time it takes to make popcorn in the microwave, and you might honestly have a harder time reading the directions for making the popcorn in a microwave.
This is your daily wakeup call that you all have zero excuses for not having a Roth IRA right now. Yes, you specifically. Go microwave some popcorn and do it right now. No I don't care that you're poor; these are zero fee.
Get your shit together.
Charles Schwab will margin call you too
> What happens if you don’t meet a margin call? Your brokerage firm may close out positions in your portfolio and isn’t required to consult you first. In fact, in a worst-case scenario it’s possible that your brokerage firm will sell all of your shares, leaving you with no shares yet still owing money.
Correct. You can always withdraw your contributions tax and penalty free.
If you're under 59.5, you pay taxes and fees on earnings that you withdraw.
The caveat being, if you withdraw, you can still only deposit the $5500 that year. So it's advantageous from a growth standpoint to not withdraw.
> I'm 20 years old and I just opened a Roth Ira with $3000. I plan to max it out by the end of the year. Which fund should I invest in for maximum growth?
Awesome! As for what fund, that depends on your risk tolerance. Something like the Vanguard's "Target Retirement 2065"(VLXVX) is a good set-it-and-forget-it option.
>I plan to use the money within the next 5 years or so.
Umm..... Then why did you put it in a Roth IRA? You can withdraw the contribution you made any time tax/penalty free, but you will pay a 10% penalty as well as owe taxes on any withdrawal of earnings before you turn 59 1/2. There are some exceptions, but a Roth IRA is really not meant to be touched any time in the next 5 years, especially if you are only 20 years old. Also note that if you are subject to taxes, it will be income tax, which can be significantly higher than capital gains taxes you would owe had you just used an ordinary taxable investment account. Charles Schwab has a reasonable article about the taxes/penalties you might need to pay.
Annuities are basically bonds. You pay an insurance company an amount, say $100k, and they guarantee you an income stream, usually based on whatever the interest rates are in the current market. The insurance company selling the annuity also prices in a profit.
Annuities are not a good way to save in the long term - you need stocks. Once you're older, say 60+, annuities could be a good way to convert part of your portfolio into a bond like income stream. Especially if you're prone to making investing "mistakes", annuities can be a good psychological trick to make sure you don't time the market, or if you're not of as sound mind, to provide a minimum standard of living.
You can check out what you'd get here: https://www.schwab.com/public/schwab/investing/accounts_products/investment/annuities/income_annuity/fixed_income_annuity_calculator
Lastly - annuities are insurance contracts. If the insurance company goes belly up, you're not getting your money. This is especially an issue over long terms.
I briefly scanned your history thinking/hoping you were either very young or a foreign traveler returning home. You are a 29 year old American child, get your shit together man.
Schwab has some ETFs that are cheaper than Fidelity and Vanguard. This is why Vanguard, Fidelity, and Charles Schwab are all listed together as some of the top options in the wiki. https://www.reddit.com/r/personalfinance/wiki/investing#wiki_for_low-cost_index_fund_providers.2C_which_is_preferable.2C_vanguard.2C_fidelity_or_schwab.3F
Wait? You worked hard to make a lot of money and now want to intentionally lose or put at risk some just to pay less taxes?!?
Be sure to look at something called a Wash Sale as this is designed to prevent what you are suggesting. https://www.schwab.com/resource-center/insights/content/a-primer-on-wash-sales
Do the right thing and pay the taxes like the rest of us! Then celebrate you had a great year of profits to do so and go do it again next year to pay more taxes! There are many around here who have had losses and would happily change places with you!
Unless anything changes, you need to be a BBIG shareholder of record on 10/15 to receive the TYDE dividend (shares). Because it takes 2 days* to settle a trade, the last day to become a holder of record on the 15th is to buy BBIG shares on the 13th.
*Note: It can sometimes take longer than 2 days to settle a trade due to settlement violations. This does a good job of explaining: https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline#What%20are%20settlement%20violations?
Honestly, inherited IRAs aren’t too complicated — advisors just want you to think they are so that they can collect fees.
Here some things to keep in mind:
- Setup your inherited IRA through Vanguard (best customer service and lowest fees in my experience)
- Speak to a specialized inherited IRA (you can call the general phone number and get redirected)
- If you already have a brokerage account there, you can send RMDs (required minimum distributions) from your inherited IRA to your brokerage account. If you don’t have a brokerage account with Vanguard, I suggest setting one up. I found this useful setup guide a few weeks ago. This call to Vanguard is a one time setup and you will never have to do any calculations.
- If you’re curious about how your RMDs are calculated, check out this free calculator from Charles Schwab
- The reason why you want to take out the money via RMDs instead of a lump sum is so you don’t get hit with an insane tax bill.
- Don’t pay a financial advisor a bunch of money if you don’t need to!
Hope this helps.
Get a Charles Schwab checking account. They offer free atm withdrawals worldwide, plus they'll refund any fees that foreign banks charge.
Found the link - https://www.schwab.com/public/schwab/banking_lending/checking_account
Schwab has a complete list of their ETFs on their website.
A word of caution though: don't believe everything their analysts say. Schwab analysts have Nvidia rated as a C ("market perform") when it's 4x the return of the S&P 500.
Plenty of funds track the Total Stock Market and S&P 500, it doesn't have to be those funds to meet the same objective. I am a fan of Vanguard, but someone can easily find similar funds at other brokerages and not pay additional fees.
In your case, you can look into Schwab index funds:
SWTSX comparable to VTI
SWPPX comparable to VOO
This is your portfolio, invest it as you wish but out of curiosity, why VTI and VOO?
I ask because VTI already holds roughly 80% of the same stocks as VOO.
There is a lot of overlap between those two and the performance tends to be pretty similar.
I second this.
If your time allows, I would look into opening up a Charles Schwab Investor Checking account.
So, I'm looking for a good OTC broker. Ideally one that has unrestricted trading of dark stocks. Any ideas?
edit: here's the link to the new fee structure for more details:
There's not a penalty if it's for a first time home purchase. You'll have to pay regular taxes, sure, but not the extra penalty.
At least not if you file all the paperwork correctly at tax time.
So you are correct...the closer to ITM...the closer the D is to 1 or -1 (in puts)....Theta or “Time Decay” is greatest at or near ITM...but as you go further out of the money or deeper ITM...theta will tapper off....Vega or your “Accelerator” for how Delta moves....the closer to a Delta of 1 or -1 the Vega will be highest...as you come closer to expiration Vega will lessen. It seems to also move less the further you are away from Delta. I like how Swab explains the Greeks:: https://www.schwab.com/options/understand-options
Not a tax expert, but I believe you can withdraw contributions tax/ penalty free at any point... just not earnings.
Schwab Bank High Yield Investor Checking Account has no minimums or fees, unlimited ATM fee rebates worldwide, and no foreign transaction fees. You have to create a brokerage account, which also has no fees, but don't have to keep any money in it.
Check https://www.nerdwallet.com/banking/best-checking-accounts, you can filter by "no monthly fee".
Also check out any credit unions you may be eligible for.
There are less expensive target date retirement funds if you're willing to rollover to another brokerage.
Schwab's SWYMX 2050 Target Date Fund has an expense ratio of .08%. That's about the same if you tried to manage it yourself. And given my hectic schedule, it's nice to know that unlike with a 3/4 fund portfolio, the target date fund will automatically rebalance for me.
So for example if there was a massive stock crash like what happened in 08, the fund will automatically liquidate bonds and buy more stocks. Versus if I had managed it myself and forgot to do so I would have lost out on a lot of discounted stocks as a result.
Yes. And the brokerages will help you with the entire process. It is super simple.
Schwab lays out the steps here. And Vanguardhere. Both are great choices.
Depends on how long you've held onto the coins.
Your capital gain is the same. Capital gain = (9240.29 - 653.64) x Number_of_Coins
Your capital gain income tax rate is different depending on the duration of your holding.
< 1 year: Your marginal tax rate
> 1 year: Long term capital gain rate.
It's your responsibility to make sure RMD is done, not the bank, although most places set it up properly. It really does sound like it wasn't set up properly 15 years ago, because the withdrawals should have started then. In fact, it sounds like the bank has really screwed up.
There are only a few options a non-spouse has with an IRA.
This - click on Traditional Non-Spouse - outlines what SHOULD have happened. If the first bank didn't follow the rules setting it up, you are up a creek.
Someone needs to go down to that bank and straighten things out. Ideally, it should be transferred to a place that knows what the hell they are doing.
Assuming this is a regular IRA, then the proceeds are taxable. It's a Roth where the proceeds aren't taxable.
Frankly, you need to see someone who knows what the hell exactly happened to this account. And then someone who can fix it. There is probably a certain amount of leeway since you didn't know about the account until a few years ago, but there is no leeway in not doing the RMD once they've started.
tl;dr - this is all kinds of messed up, you'll need professional help to straighten it out.
You take a loan based on your assets. E.g..if you have $2M in stocks, you can potentially get a loan for $1M off of it depending on what it's in.
If it's in GameStop you may only qualify for 10% of the asset. The SP500 you can get 65%, bonds: around 90%. So if you default they can not only take your house but your stocks as well, so you end up with a better rate than a traditional mortgage as well.
Since you mentioned a Vanguard Roth IRA, most of Vanguard's index funds require a $3,000 minimum initial investment for each fund you want to invest in ($1,000 for their target date funds). Fidelity and Schwab both have no minimum index funds.
TDA was acquired by Schwab in 2020. Schwab carries additional coverage via Lloyds of London which provides protection of securities and cash up to an aggregate of $600 million, and is limited to a combined return to any customer from a Trustee, SIPC, and London insurers of $150 million, including cash of up to $1,150,000.
There's a version of the Amex Platinum for Charles Schwab, (CS) clients.
One of the benefits of this version was/is the higher cash out rate for MR points: 1.25 cents per MR vs 0.6 cents for the regular platinum.
The rate was supposed to be reduced to 1.1 cents / MR yesterday but it seems like it is still 1.25x but we don't know how long it will remain like that.
I use Schwab. And i know TD has same requirement.
How about you let us know what is your broker who has less than 100% (and how much) requirement for long position in leaps/calls.
Look at the theta decay chart and get back to me about how much theta is left in last 1 month?
Last "if your income isnt high" is such a BS excuse here. For DCAing with 12k leaps would require 144k in aftertax money if you are DCAing once a month. What level of income is required to do that you could save 144k a year only on spy leaps? Or are your recommendations only for the likes of bezos and musks of the world? ( you get the point)
Quick question- how long have you been investing?
ETHE is what you want, I think.
"Grayscale Ethereum Trust: The investment seeks to track the ETH market price, less fees and expenses.The fund enables investors to gain exposure to the price movement of ETH through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping Ethereum."
https://www.schwab.com/resource-center/insights/content/bitcoin-does-it-have-place-your-portfolio; see "Can I get exposure to cryptocurrencies at Schwab?"
> For the extremely rich and not merely well off the scam is to borrow off these appreciating but illiquid assets for spending money
The merely well off can do this to in a number of ways too. If you have a pile of money in stocks and bonds (non-liquid), you can get a loan against these assets for to buy a house example. The difference is you don't have to do most of the "qualify for mortgage" steps and the interest rate is much more favorable. You also can make "cash offers" which many house sellers will take over someone buying with a mortgage.
As an example, here's Schwab's rates where you can borrow at 1.75% instead of the ~3.5% for a traditional 30 year mortgage.
> and then have your estate pay it all back when you die tax free.
I don't know how these other asset backed loans are discharged in death.
Click on "Go Paperless" on the right column and it'll redirect you the right page where you can turn on Paperless settings for everything.
Luckily on Schwab mine says :
Margin borrowing: No
There's only an option to apply for options. I didn't bother w/that obviously. I will keep an eye on it.
A sua análise da taxa de câmbio média é muito simplista. As conjunturas econômicas mudaram substancialmente e justificam o dólar no preço atual. Podemos contar, entre outros fatores:
1 - Queda abrupta da SELIC e diminuição do carry trade
2 - Valorização do dólar por conta do "Flight to quality" em meio às incertezas da pandemia
3 - Inflação no BR maior que nos EUA
4 - Aumento do risco pais com maior relação Dívida pública/PIB e o fantasma do teto de gastos
De forma que o dólar no patamar atual está "justo". Se vai subir ou vai cair, e quando, NINGUÉM sabe. Por outro lado, o custo de oportunidade em rendimentos e valorização que você está perdendo ao não investir no exterior é quantificavel. Tentar entrar na baixa do dólar é só outra forma de market timing, o que é não é tão melhor que só fazer aportes mensais (Dollar cost averaging), mas é infinitamente mais difícil.
Esses são meus dois centavos.
Isso não é uma indicação de investimento, sou apenas um leigo com acesso a Internet
Before using margin, make sure to read abt how it could go wrong, esp on red days. Not only can your losses be magnified, you may end up having to deposit more in order to cover margin calls. This article does a good job of taking you thru the various scenarios-
Market timing is generally a bad strategy long term, though it was good that you were able to capitalize on it this time. Here's some good reading for you on why.
If you like the stocks you have for long haul prospects (10+ years) then don't sell. If you were only cashing in on the Corona recovery, you might want to sell and buy back into a broad index ETF like VTI, VOO, or DIA. Letting this grow over time will be far more valuable than waiting for another dip, which could take many years.
People talk about 4% return in an average portfolio, but nothing is guaranteed.
You can actually get a guaranteed payout by buying an annuity. It's basically like buying an oldschool pension for yourself. If you just want guaranteed income, it might make more sense.
Example: 50 year old male with $1 million. Buy $1 million single premium annuity from a highly rated company. The company will pay out $4048/month for the rest of his life, equivalent to about 4.8% annual payout. At the end of his life, his heirs won't get anything back.
If he wanted to leave money to his heirs, he could add the "Single life with cash refund" option. That reduces his payment a bit, to $3969/month. When he dies, his heirs will get the $1 million back.
Annuities get a bad name, because it's easy to pile in a bunch of hidden fees in them. Just buy it from schwab or vanguard or fidelity and you can get good deals.
Here's the schwab calculator that lets you see how much an annuity will pay with different options. https://www.schwab.com/public/schwab/investing/accounts_products/investment/annuities/income_annuity/fixed_income_annuity_calculator
Then don't play earnings, fool. Here's a good strat to play earnings without playing earnings actually.
Schwab only has one type of checking account, as far as I’m aware: https://www.schwab.com/public/schwab/banking_lending/checking_account
If physical branches don't matter to you, consider a Charles Schwab Bank checking account.
Every ATM is your ATM (unlimited ATM fee rebates). No minimum balances, fees, or other bs. While still not much, APY is 0.20% which is more than the 0.01-0.03% BoA/WF/etc would offer. No foreign transaction fees on the card. The limited times I've had to contact customer support have been pretty great (far better than the "traditional" banks).
Here are the only caveats (might not even matter to you):
It must be opened with a free brokerage account, and they will run a credit check on you (hard pull/inquiry from 1 bureau, but this stops affecting your credit fairly quickly so it shouldn't matter), but I opened it the day I turned 18 and had no problems.
You won't be able to deposit physical cash, only checks/ACH/etc, so keep that in mind if it's relevant to you.
Another point of view: https://www.schwab.com/resource-center/insights/content/choiceology-season-7-episode-1
TLDR you value the same more if you did it. Choose enjoyable acitivities and view diy as an experience instead.
Technically, it seems to be somewhat up to the broker as to which stocks should be restricted and by what date? Not entirely clear, but here's a list from schwab:
You give them $X. They pay you $y/month for the rest of your life guaranteed. There's lots of variations, but that's the basics.
Schwab has a calculator that will tell you Y, given X and some parameters (age/sex/etc)
Schwab brokerage assisted trade $25.
Multiply that by millions of apes.
According to Schwab, if you gift the shares directly, they'll assume your cost basis. However, they could be in a different (lower) tax bracket than you, making a direct gift of shares more tax efficient.
regardless, you can backdoor the money into a Roth IRA by contributing to an after-tax traditional IRA (where there is no income contribution limit), and then roll it over immediately to a Roth IRA :)
source (schwab): https://www.schwab.com/resource-center/insights/content/backdoor-roth-is-it-right-you
I love that post.
If anyone's interest in a comparison of other strategies, I also like this one from Schwab: https://www.schwab.com/resource-center/insights/content/does-market-timing-work
Most people get paid bi-weekly, rather than in a lump sum in January, so Matthew (DCA) and Ashley's (immediate) returns end up being very similar in real-world data, but the main point is that they are not much worse than Peter (best timing per-year), and that Rosie (worst timing per-year) is MUCH better than Larry (cash, perpetually waiting for the right time to buy in).
Schwab reports on their revenue from POF here: https://www.schwab.com/legal/order-routing-1
Quickly scanning through their 2021Q1 report, their revenue from POF is less than $20M per month, so less than $60M per quarter. In 2021Q1, Schwab had a revenue of $4.71B and a net income of $1.48B. They would still be very profitable without POF.
I think other brokers shifted to commission free trades because of competitive pressure, not because of a breakthrough in a POF market model. Even if POF was banned, retail brokers would probably have a hard time switching to a commission model again because any broker that reintroduced commissions for stock trades would see their retail customers switch to a different broker.
Brokers have other ways of making money from retail customers. Commissions are a very visible cost, so charging commissions is a competitive disadvantage.