Investing General Discussion

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C

Captain Suave

Caesar si viveret, ad remum dareris.
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Furry said:
Compounding returns win in the end. The smart path is putting away what you can without sacrificing the now. I've been a diligent saver, and by sticking that 1000$ into the market enough times for the past 20 years, I've gotten to the point where my retirement often goes up faster than I earn money. It takes time, but compounding interest wins in the end. I don't want to be one of those slouches who works till 70 and dies a week into retirement.
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Sure. I've been investing since I was 16. I'm talking short term for someone who is currently unemployed. As soon as your income and lifestyle are in balance, it's time to start squirreling away.
 
Khane

Khane

Got something right about marriage
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Question about IRAs, Retirement plans from work and MAGI.

For the past 5 years I've been a consultant and had no 401k option so I just contributed the max to a traditional IRA and called it good. The company I was consulting for got tired of paying me a consultant's wages and just kind of randomly told me they wanted to hire me as a full time employee and end the contract. After a bit of negotiation I accepted their offer but I already contributed to my IRA for the year.

So the question is, if I contribute the max to my 401k the only thing that happens is I simply can't deduct my IRA contribution correct? There are no other weird tax implications are there? My MAGI is way above the limit to contribute max to both. I just want to make sure I don't have to math my way into a "correct" amount to contribute to the 401k.
 
C

Captain Suave

Caesar si viveret, ad remum dareris.
5,253
8,953
Khane said:
if I contribute the max to my 401k the only thing that happens is I simply can't deduct my IRA contribution correct? There are no other weird tax implications are there?
Click to expand...

I believe that is the case, yes.

Khane said:
For the past 5 years I've been a consultant and had no 401k option so I just contributed the max to a traditional IRA and called it good.
Click to expand...

Just FYI, if you're self-employed/1099'd you can set up a solo-401k and save up to the first ~$57k of income tax free (depending on your income), since you control both the employee and employer portions of contribution. It's the standard 401k contribution + 20% of net income.
 
Khane

Khane

Got something right about marriage
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I was W2 through a consulting firm.

They had a 401k... with no matching, and the worst fund options and expense ratio I've ever seen. So basically they didn't have a 401k. Their best fund made 7.3% last year. I made 53%.
 
Blazin

Blazin

Creative Title
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Khane said:
Question about IRAs, Retirement plans from work and MAGI.

For the past 5 years I've been a consultant and had no 401k option so I just contributed the max to a traditional IRA and called it good. The company I was consulting for got tired of paying me a consultant's wages and just kind of randomly told me they wanted to hire me as a full time employee and end the contract. After a bit of negotiation I accepted their offer but I already contributed to my IRA for the year.

So the question is, if I contribute the max to my 401k the only thing that happens is I simply can't deduct my IRA contribution correct? There are no other weird tax implications are there? My MAGI is way above the limit to contribute max to both. I just want to make sure I don't have to math my way into a "correct" amount to contribute to the 401k.
Click to expand...

You can still do 401K and roth depending on income lvl
 
Khane

Khane

Got something right about marriage
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Blazin said:
You can still do 401K and roth depending on income lvl
Click to expand...

Way above Roth income limits, would have to backdoor and I plan on being in a much lower tax bracket at retirement (currently in the 35% tax bracket)
 
Blazin

Blazin

Creative Title
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Khane said:
Way above Roth income limits, would have to backdoor and I plan on being in a much lower tax bracket at retirement (currently in the 35% tax bracket)
Click to expand...

Shiver to even think about your tax bill if you're single and making +$300K/yr in CT. Total tax burden has to be pushing 50%
 
Khane

Khane

Got something right about marriage
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Heh, not quite that much. It's ~207k/yr for 35% bracket isn't it?

And yea, I'm looking forward to leaving the Northeast. Hopefully soon.
 
Sanrith Descartes

Sanrith Descartes

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Khane said:
Question about IRAs, Retirement plans from work and MAGI.

For the past 5 years I've been a consultant and had no 401k option so I just contributed the max to a traditional IRA and called it good. The company I was consulting for got tired of paying me a consultant's wages and just kind of randomly told me they wanted to hire me as a full time employee and end the contract. After a bit of negotiation I accepted their offer but I already contributed to my IRA for the year.

So the question is, if I contribute the max to my 401k the only thing that happens is I simply can't deduct my IRA contribution correct? There are no other weird tax implications are there? My MAGI is way above the limit to contribute max to both. I just want to make sure I don't have to math my way into a "correct" amount to contribute to the 401k.
Click to expand...
There is a tax worksheet that will help you calculate how much of an IRA contribution is deductible. Pretty simple form (for an IRS form) to follow. IIRC (and I could be wrong), it might be a phase out amount. Just follow the form.
 
S

Schneider

Silver Knight of the Realm
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Hello all, I opened a brokerage account in September and after some research the first positions I bought were JP Morgan and Citi, as well as a FIdelity's FXAIX S&P 500 mutual fund. I was too timid to to chase Tesla and the other high growth tech stocks at the time.

Inovio was my first speculative position and I bought twice when they dipped below 9. On the financial side, they show -4000% return on investment, which means I pretty much accepted the risk they could drop to their pre-COVID level of 4 dollars a share. On the technical side: I'm hoping that they solved the the problem of toxicity with DNA based vaccines. Since DNA-based technology is more stable than mRNA vaccines and this would allow them enable them to grow by distributing their vaccine to the developing world after partnering with other manufacturers (which they seem to be doing). The big question mark is their electro-porification delivery system as the DNA vaccine is injected into muscle tissue rather than directly into the bloodstream for an immune response.

My plan was buy long term and just not worry about timing the market. Inovio recently went to 19, beating the December high of 18 and back down to 12. I am not sure if this was organic activity or a coincidence with wallstreebets driving up the price, but now I'm considering taking a more active approach, selling half the next time it goes to 18 and buying more shares on the eventual sell off. They're not a large player, but it seems like their CEO is not in the market for a merger/acquisition, but I take this with a grain of salt.

I also have a question on mutual funds vs ETF's. I went on Investopedia and compared FXAIX to SPY. It seemed like the takeaway was that ETF's like SPY and QQQ are more liquid than mutual funds like FXAIX, and so you can get out of the market if things get too unstable or you just prefer a more active trading style. Is this an accurate assessment or do factors like price transparency/discovery come into play?

Thank you for any insight.
 
Sanrith Descartes

Sanrith Descartes

You have insufficient privileges to reply here.
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Schneider said:
Hello all, I opened a brokerage account in September and after some research the first positions I bought were JP Morgan and Citi, as well as a FIdelity's FXAIX S&P 500 mutual fund. I was too timid to to chase Tesla and the other high growth tech stocks at the time.

Inovio was my first speculative position and I bought twice when they dipped below 9. On the financial side, they show -4000% return on investment, which means I pretty much accepted the risk they could drop to their pre-COVID level of 4 dollars a share. On the technical side: I'm hoping that they solved the the problem of toxicity with DNA based vaccines. Since DNA-based technology is more stable than mRNA vaccines and this would allow them enable them to grow by distributing their vaccine to the developing world after partnering with other manufacturers (which they seem to be doing). The big question mark is their electro-porification delivery system as the DNA vaccine is injected into muscle tissue rather than directly into the bloodstream for an immune response.

My plan was buy long term and just not worry about timing the market. Inovio recently went to 19, beating the December high of 18 and back down to 12. I am not sure if this was organic activity or a coincidence with wallstreebets driving up the price, but now I'm considering taking a more active approach, selling half the next time it goes to 18 and buying more shares on the eventual sell off. They're not a large player, but it seems like their CEO is not in the market for a merger/acquisition, but I take this with a grain of salt.

I also have a question on mutual funds vs ETF's. I went on Investopedia and compared FXAIX to SPY. It seemed like the takeaway was that ETF's like SPY and QQQ are more liquid than mutual funds like FXAIX, and so you can get out of the market if things get too unstable or you just prefer a more active trading style. Is this an accurate assessment or do factors like price transparency/discovery come into play?

Thank you for any insight.
Click to expand...
The big difference between Mutual and ETF is ETF's trade constantly during the day. An Mutual only trades after the close. So in the morning you say buy or sell a mutual it uses the close price to transact. It means a volatile day after you enact a mutual transaction can impact you. Not so an ETF. Also many ETFs have lower net fee cost.
 
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Gravel

Gravel

Mr. Poopybutthole
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Sanrith Descartes said:
There is a tax worksheet that will help you calculate how much of an IRA contribution is deductible. Pretty simple form (for an IRS form) to follow. IIRC (and I could be wrong), it might be a phase out amount. Just follow the form.
Click to expand...
At his income he's way past the traditional phase out ($76k if you have a retirement plan). He's making more than my wife and I as a married filing jointly and we're already in the phase out.
 
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Rajaah

Rajaah

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Sanrith Descartes said:
Funny how privacy only matters when your employer is making sure you are doing your job and not fucking off.

AMZN



'Dystopia Prime:' Amazon AI van cameras spark surveillance concerns
REUTERS 9:22 AM ET 2/5/2021
Symbol Last Price Change
AMZN 3331up 0 (0%)
QUOTES AS OF 04:00:00 PM ET 02/04/2021
* Amazon(AMZN) is rolling out AI-enabled surveillence cameras in its delivery vans

* Drivers and privacy advocates say the company is building a massive mobile surveillance system

* Although the system is billed to improve driver saftey, some worry it is more about exerting control

By Avi Asher-Schapiro

BERLIN, Feb 5 (Thomson Reuters Foundation) - Amazon.com Inc's(AMZN) announcement this week that it would be rolling out AI-powered cameras in its branded delivery vans for safety has drawn criticism from privacy advocates and workers concerned with being subjected to surveillance on the job.

The world's largest e-commerce firm said the cameras, which are developed by transportation technology company Netradyne, would improve safety of both drivers and the communities in which they deliver.

But employees like Henry Search, a 22-year-old delivery driver in Washington state, said they saw cameras capturing their work day as an "invasion of privacy".

"We are out here working all day, trying our best already," Search told the Thomson Reuters Foundation in a phone interview. "The cameras are just another way to control us."

Privacy advocates warned that equipping Amazon's(AMZN) fleet of about 30,000 delivery vehicles with AI cameras could set a dangerous precedent for privacy.

"This appears to be the largest expansion of corporate surveillance in human history," said Evan Greer, deputy director of tech nonprofit Fight for the Future. "If this becomes the norm, we are talking about the extinction of human privacy."

Amazon (AMZN) has come under scrutiny in the past for accidents involving delivery drivers.

A company spokeswoman said in emailed comments that "this technology will provide drivers real-time alerts to help them stay safe when they are on the road."

In an instructional video about the cameras, Amazon's(AMZN) senior manager for last-mile safety Karolina Haraldsdottir said cameras will record 100% of the time, but are not set up to livestream from inside of vans.

They will detect unsafe driving, including when drivers appear distracted or drowsy, she explained, adding that the footage could be used by the company's safety team, or in investigations of theft or accidents.

But Greer said that safety issues could be addressed by slowing the pace of work. "The first thing they (Amazon(AMZN)) should do to improve safety would be not have such outrageous delivery quotas that force people into unsafe conditions," she said.

Another driver in Massachusetts, who asked not to use his name to protect his identity, said he would welcome a camera displayed outside his van to record evidence for any accident.

"But a camera on my face all the time, I don't see how that keeps me safe - it's too much," he said in a phone interview, noting that drivers already use an app called Mentor that tracks the location and movements of the vehicle.


DATA USE

Haraldsdottir said that "only a limited set of authorized people" would have access to driver footage from the cameras.

But some drivers worried Amazon(AMZN) might sell or share the footage with third parties, or use the cameras to monitor their performance on the job.

"The footage recorded could be shared with a future possible employer who can then decide to reject you before even knowing you," said one driver from Michigan who asked not to give his full name.

Although he enjoys doing deliveries for Amazon(AMZN), he said he is currently looking for other work because he does not want to be subjected to surveillance.

Rights activists say Amazon(AMZN) already has an extensive surveillance system in its warehouses to track workers' movements and boost productivity, including navigation software, item scanners, wristbands, thermal cameras and recorded footage.

"There are no laws in place to meaningfully limit what Amazon(AMZN) can do with the footage they collect," said Greer, noting that other surveillance products, such as the Ring doorbell camera system, can share footage with police departments.

'DYSTOPIA PRIME'

Surveillance experts say that the privacy implications of Amazon's(AMZN) camera network for delivery vans extend far beyond drivers.

Andrew Ferguson, a professor of law at D.C.'s American University, said Amazon's(AMZN) private surveillance networks would further entrench the snooping powers of government.

"While the inclination to use AI technology to enhance driver safety is commendable, the failure to think about the privacy and surveillance issues and equities is troubling," he said.

While police may not have direct access to the footage, authorities will be able to access it in the course of an investigation, expanding the reach of police surveillance, Ferguson explained.

Last June, Amazon(AMZN) announced a one-year moratorium on police use of its facial recognition software, following criticism that the technology reinforced racial bias.

"Amazon(AMZN) is quite literally building mobile surveillance vans to film our neighborhoods, something that we would be rightly horrified about if our government did it," Ferguson said. "I don't think we want to join dystopia prime."
Click to expand...


Friend of mine once walked by a delivery van (not Amazon, was Comcast IIRC) and noticed it was shaking a bit, looked in the back window and saw the guy laying in the back whackin' off.

After hearing a story like that... well, first of all if any delivery guy would be whackin' off, of course it would be Comcast. But also I now wonder how common something like that is, and how many drivers are going to have to significantly curb their baitin' habits now that they're on camera.
 
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Furry

Furry

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Khane said:
Way above Roth income limits, would have to backdoor and I plan on being in a much lower tax bracket at retirement (currently in the 35% tax bracket)
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To answer your first question you get penalized hard for over contributing to Roth and 401k both. For the roth I think they fine you a percentage yearly and force you to withdrawl. It's a fairly ugly penalty, but the 401k one is worse.

For the 401k the company that has the account is required by the IRS to pay you back any overcontribution + what it made in profits. Worse yet, if you did it with two different companies, neither will know until they file their information with the IRS and get a nasty letter. That means it will probably happen too late in the year to fix by your filing date. If you don't fix by then the IRS considers it income in the following year. Yes you read that right. You'll have to pay the full income tax on the withdrawal even though you already paid it before. On top of it all, you're painting a target on your back for the tax man, which is generally not smart.

Basically, go with a brokerage fund until next tax year, then set your contributions to 750$ per paycheck if you're biweekly and forget about it. A lot of places wont match on a paycheck if you already maxed your 401k, so there's no benefit to pumping it early.
 
Rajaah

Rajaah

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Sanrith Descartes said:
People paying $13.70 for CCV shares when they can buy the CCV units for $12. God people are stupid.
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What does that mean? I've been looking at CCIV as a potential buy today. I know CCV is different from CCIV but yeah. What's a unit?

The buys I'm considering today: Uber, CCIV, Palantir, ZNTE, FTEC, Ethereum, and Mana. Also might add to my BTC since I've been waiting all week for it to dip again and it isn't, so I might need to just go the DCA route and drop some more into it regardless of fluctuation instead of trying to min-max it. I'm not good enough to get crypto at the bottom of a dip, and might save myself some grief by just adding to what I have in small but regular intervals. Keeping the SPACs low until I understand them better.
 
Araysar

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Rajaah said:
What does that mean? I've been looking at CCIV as a potential buy today. I know CCV is different from CCIV but yeah. What's a unit?

The buys I'm considering today: Uber, CCIV, Palantir, ZNTE, FTEC, Ethereum, and Mana. Also might add to my BTC since I've been waiting all week for it to dip again and it isn't, so I might need to just go the DCA route and drop some more into it regardless of fluctuation instead of trying to min-max it. I'm not good enough to get crypto at the bottom of a dip, and might save myself some grief by just adding to what I have in small but regular intervals. Keeping the SPACs low until I understand them better.
Click to expand...

CCIV is at $35, there is no point in buying it.

ZNTE is one the best out of all of those.
 
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swayze22

swayze22

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Rajaah said:
What does that mean? I've been looking at CCIV as a potential buy today. I know CCV is different from CCIV but yeah. What's a unit?

The buys I'm considering today: Uber, CCIV, Palantir, ZNTE, FTEC, Ethereum, and Mana. Also might add to my BTC since I've been waiting all week for it to dip again and it isn't, so I might need to just go the DCA route and drop some more into it regardless of fluctuation instead of trying to min-max it. I'm not good enough to get crypto at the bottom of a dip, and might save myself some grief by just adding to what I have in small but regular intervals. Keeping the SPACs low until I understand them better.
Click to expand...

A unit is a share + a fraction of a warrant. you get the stock cheaper + some bonus.

A handful of us here hold ZNTE currently and most have for at least a few weeks
 
Big Phoenix

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tenor.gif
 
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Rajaah

Rajaah

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swayze22 said:
A unit is a share + a fraction of a warrant. you get the stock cheaper + some bonus.

A handful of us here hold ZNTE currently and most have for at least a few weeks
Click to expand...

Yeah, looks like I missed the boat on CCIV. Just narrowly missed getting it a week ago since it was the top thing on the list of what I didn't get to before I used up last week's investing budget. Looking at it now and I would have been waaay better off just pushing the budget and getting it back then.

Welp, that's another hundo for ZNTE or Uber.

Why am I buying Uber? They just announced the acquisition of another company that specializes in alcohol delivery. I'm expecting more pandemic and more people getting alcohol delivered so they can be drunk at home, so I think Uber is going to see some gains. They definitely saw short-term gains this week (I bought it the day of the announcement and it went up every day since). Also expect Uber to be at the forefront of any self-driving taxi innovations long-term. Worked for them briefly in the past as a weekend gig, and I can say firsthand: That company would LOVE to boot all of its human drivers to the curb and keep 100% of the profits the first chance they get.
 
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