What's your 401k asset allocation?

[mentos]

I think it's still fun no matter what age.

Once you have a family, you are forced (not by choice) to not wanna be in that environment even though you know it's still fun.

A bunch of dudes living together in their 30s-40s won't attract a lot of girls though.

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[Momus]

A bunch of dudes living together in their 30s-40s won't attract a lot of girls though.

Bros before hoes. Anyday.

 

[Charcoales]

Bros before hoes. Anyday.

I think it's still fun no matter what age.

Once you have a family, you are forced (not by choice) to not wanna be in that environment even though you know it's still fun.

The idea of wife and kids sounds dreadfully boring to me. Highly doubt wife or kids would share my interests and dont want to gamble if they dont.

 

[mentos]

Bump. Has anyone switched up their 401k allocation lately?

I switched to 80% large cap index, 20% international index a few months ago and I'm pretty content with it.

 

[PharmDBro2017]

Bump. Has anyone switched up their 401k allocation lately?

I switched to 80% large cap index, 20% international index a few months ago and I'm pretty content with it.

100% large cap near the beginning of covid.

 

[mentos]

100% large cap near the beginning of covid.

Nice! No international? I was thinking of going 100% large cap too. The international fund in my 401k only has a 10 year return of 4%, pretty crappy!

 

[Momus]

Been making mad money with small/mid caps as usual.

International is lagging, but it's within the expected outcome.

 

[khydroxide]

anyone here cash out their 401k or ira early ? ive been doing pretty well and im thinking i want to cash out once i hit the 7 figure mark. with the penalty will it be around 50% ? ive heard some people say 30% ...

 

[NITRAS]

The penalty is 10% in addition to your tax rate If you pull it out early.

You can move it to cash inside of the 401k and avoid it. .. .

What are you trying to accomplish by cashing out?

 

[footfairy]

anyone here cash out their 401k or ira early ? ive been doing pretty well and im thinking i want to cash out once i hit the 7 figure mark. with the penalty will it be around 50% ? ive heard some people say 30% ...

Let's pretend for this example that the 2020 tax rates are permanent, the 10% early withdrawal penalty doesnt exist, and you live in a no income tax state.

If you withdrawal 1 million dollars from your 401k all at once, you are looking at a 33% effective federal tax rate, or 330k total in taxes. If you withdrawal 100k a year for 10 years you would be paying a 15% effective rate, or $150k total in taxes.

So in this best case scenario, you are looking at paying $180k more in taxes to withdrawal your money in a lump sum instead of over a decade. When you factor in the 10% early withdrawal penalty, that's another $100k. If you live in a state with progressive state income tax, you're adding another couple 10s of thousands of dollars in taxes by doing lump some.

So If you want to withdrawal all your money and YOLO it on a lambo and escorts, you do you, but it's about the worst way to manage your portfolio.

 

[Dred Pirate]

anyone here cash out their 401k or ira early ? ive been doing pretty well and im thinking i want to cash out once i hit the 7 figure mark. with the penalty will it be around 50% ? ive heard some people say 30% ...

this is a horrible idea, why would you want to do this? Unless you are in a financial emergency, keep there until you are 59.5 or 55 under some circumstances.

 

[mentos]

anyone here cash out their 401k or ira early ? ive been doing pretty well and im thinking i want to cash out once i hit the 7 figure mark. with the penalty will it be around 50% ? ive heard some people say 30% ...

If you are doing well then why do you need the money?

 

[Momus]

anyone here cash out their 401k or ira early ? ive been doing pretty well and im thinking i want to cash out once i hit the 7 figure mark. with the penalty will it be around 50% ? ive heard some people say 30% ...

Cash out and dump it all to PLTR and NIO like mentos. That's his recommendation.

I'm waiting for screen shots.

 

[mentos]

Cash out and dump it all to PLTR and NIO like mentos. That's his recommendation.

I'm waiting for screen shots.

LoL you act like my entire portfolio is in these two stocks. It's just my play money account which is like 5% of net worth. My 401k, Roth and hsa are all index funds. It's like your Bovada account where you bet $2000 on a football game.

 

[mentos]

He's just jelly. He is only a millionaire because his parents paid for school and be graduated in like 08 when the market was down.
He claims I'm only successful with stocks because I have a sugger momma because my wife is an MD even tho she just graduated fellowship this year.

Well I'm not a millionaire so there's nothing to be jelly about. Funny enough, the Schwab app doesn't allow screenshots. But screenshots are easily photoshopped so what does that prove?

 

[Farmgurl20]

I am a new bee and doesnt know much about all this.But I recently quit my job and in process of getting another one. My question is regarding 401K that I accumulated with my previous employer. Can I rollover it to IRA? I know i can’t cash it out as there are tax consequences.

 

[mentos]

I am a new bee and doesnt know much about all this.But I recently quit my job and in process of getting another one. My question is regarding 401K that I accumulated with my previous employer. Can I rollover it to IRA? I know i can’t cash it out as there are tax consequences.

I wouldn't do that. You can rollover to a traditional IRA but then you wouldn't be able to do a backdoor Roth. I suggest leaving it in the old 401k, or rollover into your new 401k if your new one has better funds to choose from. However this takes a long time, maybe 3-4 weeks so I would just leave it alone until the market is less volatile. Whatever you do, do not cash out.

You’re a guy?!? I always thought you are a female!

Don't be ignorant.

 

[Farmgurl20]

I wouldn't do that. You can rollover to a traditional IRA but then you wouldn't be able to do a backdoor Roth. I suggest leaving it in the old 401k, or rollover into your new 401k if your new one has better funds to choose from. However this takes a long time, maybe 3-4 weeks so I would just leave it alone until the market is less volatile. Whatever you do, do not cash out.



Don't be ignorant.

Lol sorry I already moved it to IRA like just now. Can I switch back now ? Or is it too late. I was thinking about it for few days. I completly forgot I could ask that question here. Yeah it’s been 3-4 weeks so this week I could to do rollover if I wanted.

 

[mentos]

Lol sorry I already moved it to IRA like just now. Can I switch back now ? Or is it too late. I was thinking about it for few days. I completly forgot I could ask that question here. Yeah it’s been 3-4 weeks so this week I could to do rollover if I wanted.

Why bother asking if you've already done it? If you moved it already then you missed out on huge gains these past few weeks. If you plan to do a backdoor Roth IRA then you'll have to convert the traditional to Roth first which requires paying taxes. Otherwise you're limited to only 401k (and HSA if offered) for tax sheltered savings now.

Are you the one that quit before finding a new job? No offense but I recommend you take your time to think about things before making big decisions like these.

 

[Farmgurl20]

Why bother asking if you've already done it? If you plan to do a backdoor Roth IRA then you'll have to convert the traditional to Roth first which requires paying taxes. Otherwise you're limited to only 401k (and HSA if offered) for tax sheltered savings now.

Are you the one that quit before finding a new job? No offense but I recommend you take your time to think about things before making big decisions like these.

Oh dang it. And yes I am currently taking time to think through things. Thank you!

 

[Farmgurl20]

Why bother asking if you've already done it? If you moved it already then you missed out on huge gains these past few weeks. If you plan to do a backdoor Roth IRA then you'll have to convert the traditional to Roth first which requires paying taxes. Otherwise you're limited to only 401k (and HSA if offered) for tax sheltered savings now.

Are you the one that quit before finding a new job? No offense but I recommend you take your time to think about things before making big decisions like these.

I am confused. So I initiated roll over on vanguard but now I check on website I don’t see it. So i tried doing roll over again there and it said (three letter chain) doesn’t allow online rollover. Do you anything about this?

 

[mentos]

I am confused. So I initiated roll over on vanguard but now I check on website I don’t see it. So i tried doing roll over again there and it said (three letter chain) doesn’t allow online rollover. Do you anything about this?

No, you should call Vanguard on Monday.

 

[Momus]

He's just jelly. He is only a millionaire because his parents paid for school and be graduated in like 08 when the market was down.
He claims I'm only successful with stocks because I have a sugger momma because my wife is an MD even tho she just graduated fellowship this year.

Jealous? You are projecting. You can't pay just 150k student loan in 2 years? Meh. Boring... zzz... You are so sad to think that's the barrier to grow wealth lmao.

Wait, who said you were successful with stocks? I think your sugar momma is looking for a new play toy.

 

[Sine Cura]

Why did Nate Robinson need to fight Jake Paul?

Isn't he a District Leader by now? How were his investments doing? Did he really need this PPV money?

 

[mentos]

Jealous? You are projecting. You can't pay just 150k student loan in 2 years? Meh. Boring... zzz... You are so sad to think that's the barrier to grow wealth lmao.

Wait, who said you were successful with stocks? I think your sugar momma is looking for a new play toy.

Why so mad?

 

[Momus]

Lol. No not a barrier but no debt as a new grad, in a recession, with shortage of pharmacist, and unlimited overtime is a much different scenario than what most of the younger pharmacists experience.

Not really here to argue and not really what your problem with me is

What I said. Tons of projecting. Everyone was handed the same card in 2008. I came out with 3M after 12 yrs. I hit my first mil at age 30. According to you, it must be ALL because I had 150k help from my parents.

Who has a problem with who? Did I call you anywhere above before you butt in?

 

[Momus]

Well I'm not a millionaire so there's nothing to be jelly about. Funny enough, the Schwab app doesn't allow screenshots. But screenshots are easily photoshopped so what does that prove?

I want khydroxide to cash out and dump it all to NIO. YOLO.

Still waiting for his screenshot.

 

[mentos]

What I said. Tons of projecting. Everyone was handed the same card in 2008. I came out with 3M after 12 yrs. I hit my first mil at age 30. According to you, it must be ALL because I had 150k help from my parents.

Who has a problem with who? Did I call you anywhere above before you butt in?

Hey man congrats on your wealth. You sound like you could use a beer though. I recommend doing some hookah with Sparda.

 

[mentos]

I did some calculation. You must invest $70 k a year and get 21% annual return for 12 years for you to have $3m. Has the stock market gone up that much in 12 years?

Yes, 2010-2020 have had incredible gains.

 

[PharmDBro2017]

Easy to hit 3M if you live with your mother and do your own haircuts, I suppose.

But at what cost

 

[footfairy]

I did some calculation. You must invest $70 k a year and get 21% annual return for 12 years for you to have $3m. Has the stock market gone up that much in 12 years?

Momus is pretty famous here for working an insane amount of overtime. For what must have been over half a decade he essentially worked like a physician in residency except he was making OT pay at Walmart vs a flat 50k from CMS.

He caught some breaks on the timing of his graduation and his family support, but he still accumulated *3million dollars* in 12 years on his pharmacist pay! He's more wealthy than any retail pharmacist I personally know and he did it all on the tail end of the pharmacy golden years.

Also, if he is jealous of the new Robinhood millionaires.....So be it? I find it frustrating watching people get massive rewards for taking really dumb and uninformed risks but they took the risks and I didn't so good for them.

 

[Sine Cura]

You can't get 3m in 12 years on just pharmacist pay (inb4 working as senior management in Big Pharma). Capital gains

 

[footfairy]

You can't get 3m in 12 years on just pharmacist pay (inb4 working as senior management in Big Pharma). Capital gains

I didn't mean to imply he's made over 3 million net in salary alone. The average RPH would gross around 1.6million in that time span. So between overtime, living frugally, and investing he's accumulated DOUBLE what his total gross pay should have been in that time span.

Even with the market being what it is over the pas decade, that's mighty impressive.

 

[redfish955]

I didn't mean to imply he's made over 3 million net in salary alone. The average RPH would gross around 1.6million in that time span. So between overtime, living frugally, and investing he's accumulated DOUBLE what his total gross pay should have been in that time span.

Even with the market being what it is over the pas decade, that's mighty impressive.

I'm guessing he saved and worked a ton of overtime from 2008 to 2014. Likely hit it big on some 20-50k investments in apple, tsla, amazon, etc. That alone would set you up to amass 2-3 million if you continued to save. I lived with my parents for 5 years and amassed a solid net worth and paid off all my debts. I would advise against do this. I was pretty much single despite being a high earner from the age of 25-30. Now I'm 34 stuck working in a rural industrial town where the dating pool of women is lacking. I would pick a profession you want to work until you are in your fifties and just max your 401k each year.

 

[mentos]

Good for him. Not my cup of tea though. I could never live with my parents as an adult, I moved out at 18 and wouldn't change a thing. How are you supposed to bring a girl home when your parents are across the hall? I would hate to work more than 40 hours per week too. Work is not my life. Personally, if my parents paid for school then I'd give every last cent back to them and then some.

I think he still drives a Hyundai accent? If I had 3 million then I'd at least upgrade to a Tesla model 3 or something. Live a little. What's the point of having all that money if you're not going to use it?

 

[Farmgurl20]

if I had 3 million then I'd at least upgrade to a Tesla model 3 or something. Live a little. What's the point of having all that money if you're not going to use it?

Lol this is exactly my thought but my spouse is also like that. I told him many times what’s point of all that money if you ain’t using it. But some people are just like that.

 

[mentos]

Lol this is exactly my thought but my spouse is also like that. I told him many times what’s point of all that money if you ain’t using it. But some people are just like that.

Tomorrow is never guaranteed. One of my classmates died shortly after graduation. You can't take your money with you.

 

[wagrxm2000]

Assumption: 100k invested at the beginning of 2009 adding 70k a year at the very beginning of the year.

Net today: approximately 2.60 million.

Tweak some numbers, add dividends here and there and you have 3 million.

Why is a "new member" going after Momus?

 

[footfairy]

Assumption: 100k invested at the beginning of 2009 adding 70k a year at the very beginning of the year.

Net today: approximately 2.60 million.

Tweak some numbers, add dividends here and there and you have 3 million.

Why is a "new member" going after Momus?

No idea man, I know him and BMB used to go back and forth about equities market vs real estate but these new guys are just hitting him on EVERYTHING.

Us: Momus has 3 million in 12 years, while you don't need to be EXACTLY him, his fairly low risk rise to wealth is commendable.
Them: Yeah well he graduated lucky and he lives in a cave and works 120 hours a week and doesn't even drive a luxury car, loser.

Starting to think maybe, just maybe, Momus isn't the jealous one.

 

[wagrxm2000]

No idea man, I know him and BMB used to go back and forth about equities market vs real estate but these new guys are just hitting him on EVERYTHING.

Us: Momus has 3 million in 12 years, while you don't need to be EXACTLY him, his fairly low risk rise to wealth is commendable.
Them: Yeah well he graduated lucky and he lives in a cave and works 120 hours a week and doesn't even drive a luxury car, loser.

Starting to think maybe, just maybe, Momus isn't the jealous one.

I give props to anyone willing to put in the effort to give themself an easy life for the next 40 or so years

People need to stop and think for a second, even a conservative 50/50 stocks/bonds will net 100k every 6.6% gain in the market.

 

[owlegrad]

Tomorrow is never guaranteed. One of my classmates died shortly after graduation. You can't take your money with you.

I agree with you but this mentality might be why we aren't millionaires

 

[ranger99rx]

Tomorrow is never guaranteed. One of my classmates died shortly after graduation. You can't take your money with you.

Yeah, when we die, all we can eat is dirt!

 

[mentos]

I agree with you but this mentality might be why we aren't millionaires

I chose to date girls, get laid, got married and have a kid. If someone wants to work 80 hours a week and sleep alone in their parent's house as a grown ass adult then more power to them. Gives them a ton of street cred on SDN!

 

[wagrxm2000]

Some here seem to think life can't be started in their 30s after they've already secured financial freedom.

 

[owlegrad]

I chose to date girls, get laid, got married and have a kid. If someone wants to work 80 hours a week and sleep alone in their parent's house as a grown ass adult then more power to them. Gives them a ton of street cred on SDN!

Ooff, that is the opposite of building wealth.

 

[mentos]

Ooff, that is the opposite of building wealth.

We are better off than most, no complaints.

 

[Monsterdaddy]

I am a new bee and doesnt know much about all this.But I recently quit my job and in process of getting another one. My question is regarding 401K that I accumulated with my previous employer. Can I rollover it to IRA? I know i can’t cash it out as there are tax consequences.

If you prefer to make your own investments I would suggest rolling it over to an IRA with a stock broker. I hated my company's 401(k) because of the limited investment choices that I actually withdrew all of it with a CARES Act withdrawal and manually rolled it over to my IRA.

The only advantage my 401(k) had was the ability to make loans which is pretty good for an emergency fund. But now I can buy and sell options and invest in practically any security. Plus no stupid "No exchanges within 30 day" rule s to deal with.

So I would think about it before you call Vanguard to undo your rollover.

 

[mentos]

If you prefer to make your own investments I would suggest rolling it over to an IRA with a stock broker. I hated my company's 401(k) because of the limited investment choices that I actually withdrew all of it with a CARES Act withdrawal and manually rolled it over to my IRA.

The only advantage my 401(k) had was the ability to make loans which is pretty good for an emergency fund. But now I can buy and sell options and invest in practically any security. Plus no stupid "No exchanges within 30 day" rule s to deal with.

So I would think about it before you call Vanguard to undo your rollover.

But you can't do a backdoor Roth now, and can't make further contributions to your traditional IRA. You can do all that stuff in a Roth and contribute 6k per year.

 

[Chrish]

I don't have a dog in this fight but I find the logic "you became millionaire because you had unlimited overtime back then" quite amusing. Honestly, how many people are willing/ able to work more than 40 hours a week? I know I wouldn't. Working that many hours requires lot of dedication and it's not that easy. I worked 7 days straight once (most of them 12 hour shifts) and I was beyond exhausted.

Never again!

 

[Farmgurl20]

I don't have a dog in this fight but I find the logic "you became millionaire because you had unlimited overtime back then" quite amusing. Honestly, how many people are willing/ able to work more than 40 hours a week? I know I wouldn't. Working that many hours requires lot of dedication and it's not that easy. I worked 7 days straight once (most of them 12 hour shifts) and I was beyond exhausted.

Never again!

I feel like lot of single people would do that. I wish I was single I wouldnt mind working like crazy for couple years. And yeah back then time was different and now time is different. Also, now I dont think lot of people can get over time even thought they want to work extra hours.