Financial Thread

[dmclone]

Made my last student loan payment, time for the next move.

I have a traditional retirement match through work with Vanguard, looking to open a Roth and contribute more. Is it worth researching, or should I just open with Vanguard? Seems like they are pretty well regarded, just wasn't sure if anyone had advice on best returns and fees, or where I could find such information without having to dig too much myself. TIA.

I buy vanguard funds but I set it up through TD Ameritrade and have no complaints.

I own VTHRX, VGTSX, and VTSMX. The VGTSX has sucked because international has sucked in general. Almost forgot VWELX, which is my favorite and I believe the oldest mutual fund (1929).

 

[DeereClone]

I have a Roth and some non-retirement investments with Vanguard and I am very happy with it.

 

[SCNCY]

You can find a lot of index funds that have expenses similar to Vanguard. I just checked on my fidelity account. I am in a S&P Growth fund (IVW) that has an expense ratio of 0.18%, which I find to be really cheap.

I would just make sure which ever service you use, has everything you want. If you have a Vanguard account, I am sure you don't have to pay any front or back end load fees in to their funds, where at Fidelity you do for a Vanguard fund. I don't have any load fees for Fidelity and IShare funds though. I use Fidelity because my 401k is through fidelity, so it since to have IRA and personal account all in one place.

 

[KnappShack]

Was cleaning the garage and found an old abandoned accout notice. It was for a small IRA that I opened after college and didn't think about for quite a few years.

Dang thing tripled in value. My best investment performance by far. So my advice is to set it and forget it...I mean totally forget about it....I guess

 

[Mtowncyclone13]

Was cleaning the garage and found an old abandoned accout notice. It was for a small IRA that I opened after college and didn't think about for quite a few years.

Dang thing tripled in value. My best investment performance by far. So my advice is to set it and forget it...I mean totally forget about it....I guess

My dad told me his story of the old company getting bought out and other guys taking their accounts, cashing them in, and buying a boat and a trip to disneyland. My dad forgot about it and found it when he was retirement planning and it was worth like 400k. not a bad little oversight.

so yes, set it and forget it!

 

[tim_redd]

But don't completely forget it.

 

[NATEizKING]

Iowa #6, MN #1, Miss. #50

http://www.champlain.edu/centers-of...onal-report-card-on-adult-financial-literacy#

 

[NATEizKING]

On to the next, looking for somewhere to stash the emergency fund. Discover offers .95% APR and also .10 per transaction by check (free checking), debit card, or auto payment. Probably shift the emergency fund to savings for the .95% and then auto transfer from my current bank the monthly expenses.

Anyone know of better options?

 

[crash_zone]

On to the next, looking for somewhere to stash the emergency fund. Discover offers .95% APR and also .10 per transaction by check (free checking), debit card, or auto payment. Probably shift the emergency fund to savings for the .95% and then auto transfer from my current bank the monthly expenses.

Anyone know of better options?

https://www.synchronybank.com/banking/products/high-yield-saving/

Currently at 1.05%. I've used them for a few years and have been happy.

 

[NATEizKING]

On to the next, looking for somewhere to stash the emergency fund. Discover offers .95% APR and also .10 per transaction by check (free checking), debit card, or auto payment. Probably shift the emergency fund to savings for the .95% and then auto transfer from my current bank the monthly expenses.

Anyone know of better options?

Bump since this didn't get much response with the timing of my post. Looking to get the money transferred by Friday so I don't have to think about it anymore.

Also looking for 529 information if someone has done that lately.

 

[Cyched]

On to the next, looking for somewhere to stash the emergency fund. Discover offers .95% APR and also .10 per transaction by check (free checking), debit card, or auto payment. Probably shift the emergency fund to savings for the .95% and then auto transfer from my current bank the monthly expenses.

Anyone know of better options?

I've had a savings account with Ally for a couple years and have been pleased with them (1.0%)

 

[Mtowncyclone13]

Bump since this didn't get much response with the timing of my post. Looking to get the money transferred by Friday so I don't have to think about it anymore.

Also looking for 529 information if someone has done that lately.

My emergency savings account is stashed with Ally (1.0%)
I also opened an Iowa 529 savings plan for my son last year. I put it in the 100% Aggressive Growth Portfolio and it's gone up 9.6% in a year. You get a State income tax deduction up to $3,188 per parent so we contributed that up front for a total State deduction of $6,376. Pretty neat bonus.

 

[NATEizKING]

My emergency savings account is stashed with Ally (1.0%)
I also opened an Iowa 529 savings plan for my son last year. I put it in the 100% Aggressive Growth Portfolio and it's gone up 9.6% in a year. You get a State income tax deduction up to $3,188 per parent so we contributed that up front for a total State deduction of $6,376. Pretty neat bonus.

Yearly deduction of $6,376?

 

[Mtowncyclone13]

Yearly deduction of $6,376?

yes, if you contribute that much.

 

[capitalcityguy]

Bump since this didn't get much response with the timing of my post. Looking to get the money transferred by Friday so I don't have to think about it anymore.

Also looking for 529 information if someone has done that lately.

Disgusted with low interest rates, I actually invested our emergency fund in my brokerage using an allocation of funds Kiplinger's suggested for "short term saving goals" a few years back. It is mix of bonds, fixed, and even some blue chip funds. It has been about 4 yrs now.

No, I don't have a great story about how well this worked out and I keep obsessing over the bond funds crashing as interest rates rise. My returns are higher than if I'd kept in my saving account, but not by as much as I'd hoped. I'm probably going to go back to a MM or high interest savings account to put my mind back at ease.

 

[NATEizKING]

Sounds like I might as well just go with Discover. It is .05-.1% less but .10 cents per automated payment, check, or debit card transaction will more than make up for that. Will be a pain to switch automated payments over but that's only a one time deal.

 

[NickTheGreat]

My emergency savings account is stashed with Ally (1.0%)
I also opened an Iowa 529 savings plan for my son last year. I put it in the 100% Aggressive Growth Portfolio and it's gone up 9.6% in a year. You get a State income tax deduction up to $3,188 per parent so we contributed that up front for a total State deduction of $6,376. Pretty neat bonus.

I jsut set up a 529 for my daughter through the state. Does anyone know the difference if I'd set up a 529 through Vanguard? Because my understanding is that Vanguard handles the Iowa 529 anyway. I couldn't find much on it, and figured the state one was fine.

 

[Mtowncyclone13]

I jsut set up a 529 for my daughter through the state. Does anyone know the difference if I'd set up a 529 through Vanguard? Because my understanding is that Vanguard handles the Iowa 529 anyway. I couldn't find much on it, and figured the state one was fine.

yes, i know because i asked about it since all my brokerage accounts are with vanguard.

the iowa 529 plan is administered by the state and managed with vanguard. that means all the paperwork and interface is through the state and you cannot link the 529 plan with the rest of your vanguard funds on your "my accounts" page. vanguard may manage the financial side of things but they provide no user administration. if you set one up with vanguard directly you do not get the $3,188 state deduction because that deduction only applies to the State of Iowa 529 fund. the one with vanguard is managed through another state.

edit - i see the deduction amount has increased for 2017.

 

[NickTheGreat]

yes, i know because i asked about it since all my brokerage accounts are with vanguard.

the iowa 529 plan is administered by the state and managed with vanguard. that means all the paperwork and interface is through the state and you cannot link the 529 plan with the rest of your vanguard funds on your "my accounts" page. vanguard may manage the financial side of things but they provide no user administration. if you set one up with vanguard directly you do not get the $3,188 state deduction because that deduction only applies to the State of Iowa 529 fund. the one with vanguard is managed through another state.

edit - i see the deduction amount has increased for 2017.

Thanks. My gut told me I couldn't do the state deduction if not through the state. I couldn't really find a whole lot out online.

 

[rpcyclone2013]

Yearly deduction of $6,376?

you get the deduction of 3,188 per child. So for example, if you and your spouse have two kids, you can contribute 3,188 x 4 = 12,752. Also, anyone can contribute to the 529 plan for your children. So, grandparents and any Iowa resident can do it (you just have to put the SSN of the child in the system)