Yes. As long as you don't have a remaining traditional IRA iirc but I paid the taxes to convert my old one many years ago.
Anything you've paid taxes on. So like what you get paid if you're a w2 employee minus withholding or taxes paid at the end of the year.
Same. Work 401k. Have a rollover 403b I moved to vanguard because my work was charging insane amounts for management. Roth I started when I was a poor resident that I can’t contribute to now. I may be in trouble bc I was contributing money to it and now with my new job I’m over the income limit for last year. Hsa from old job sitting in a fidelity account. And a brokerage account.
Ok so if I get a yearly bonus and transfer that from my savings to a trad IRA and then move it into a Roth, I won’t be taxed on it?
If you do a trad IRA to Roth conversion yes you'll be good as long as you've already paid tax on the bonus. At the 7k limit. Gotta pay income taxes on the bonus but there's no fee for the investment and you won't be taxed when you withdraw in retirement.
Also if you have a 401(k), 403(b), and HSA option through work, you can lower your household taxable income by something like 54k
Can you backdoor Roth to avoid the income limit? Have been reading about it and thought I understood that to be the case.
Yes you can. Just make sure you don’t have another traditional ira floating around. Example would be an old 401k that you haven’t transferred into your new 401k. If you have an old account like that for tax purposes your Roth contribution will come from the gains in your old 401k and not the money you just contributed to your new Ira.
So am I understanding this properly that you open a new IRA every year, contribute the $7,000 and then backdoor it to a roth? Do you then just have a bunch of different roth accounts open after a few years?
You can convert it into the existing Roth. And you can leave the IRA itself open but just empty. This is how vanguard does it.
Old 401k is okay. Old 401k that was converted to an IRA might not be okay. My old employer let me keep my 401k open so long as my account remained above a certain balance. In this case, it wouldn’t affect my ability to backdoor.
Buying calls before an announcement about a govt contract seems sus. Not to mention she's amazing at timing options.
i am getting absolutly fuckeddd on some private equity real estate deals in did from 2018-2020. a bunch of the assets are under performing bc of uncapped interest. that's not the fucking the sponsor and the private equity people both personally guaranteed the loans and also lent a bunch of the deals money. a bunch of the loans are coming due. their solution was to package a bunch of the deals into a reit, raise money (founders shares) for the reit and use that money to both pay themselves back their loans and also refi the debt to get them off the notes. the founders shares are apparently putting in like 4% new money and getting ownership of 20% of the reit. apparently this will go through with a 50% vote we have no idea what our investments are being marked at headed into the reit this legit just seems like total fraud. i kind of want to sue them
As a big time real estate guy myself, my Groundfloor and ArrivedHomes portfolios are also taking a beating. and I've got a looming 5yr balloon on my SFH rental that's due in 3 years so that's fun to plan for
I'm saving up in case rates go the other way and I have to just pay cash, but I am hoping you're right.
My PERE deals are also struggling. Have found some narrow escapes on a few for 1.0-1.5x in the last 6 months but particularly in the MF space bad debt from renters and expense inflation are killing NOI. Only bright spot is that after a nerve wracking last 6 months, all my deals are now on fixed rate debt (of course the downside of that is taking the fixed rate debt at current pricing isn’t much better than betting on floating rates coming down in the next 12 months). A lot of lessons learned in picking sponsors and deals the last 12 months. Free money going away is like the tide going out on sponsors and finding out who has swim trunks on and who doesn’t. I’m not sure on my guys yet. That REIT structure seems sketchy and like overkill.
Now that I've quit my job and started my own practice, I guess I'm opening up a solo 401k with Schwab. I'm guessing rolling over my other two 401k accounts to this solo 401k is just the same as if this were any other 401k plan through a new employer?
Dry powder is the lamest fucking phrase ever and I have to hear it all the time because the in laws are a real estate family.
Seems like that isn't going to change much until either the market isn't sitting at a record high or safe vehicles aren't paying ~50-60% of the normal/expected market return. Or it isn't Dry January anymore.
Do we know how much is truly in cash earning nothing? I’d love to understand what is being left to not even earn 5%.
I’ve always interpreted “sideline cash” as cash not in the market. I bet majority are utilizing HYSA/Money Market yields that are 5%+
For everyday Americans I can see that but for those actively participating in the stock market, I’d like to know what that % is who are taking advantage.
skeezy On the topic of Roth IRA rollovers, you may want to ask whatever company your work retirement account is through if your work offers a non-roth 401K after-tax deduction. You could supercharge your roth by having the ability to rollover more than $7K into it if so. Keep in mind they’re rare, and usually larger companies only tend to have them. I just figured with your line of work you might have access to one. I linked some YouTube videos below. The first is from 2022, so the contribution and income limits are old, but the principles are the same. Spoiler
Nice bump to the S&P between this report, and Meta’s and Amazon’s earnings reports after hours. Basically making up for yesterday’s losses.
I used to work with someone that bought a shit-ton of PTON during the pandemic. He left the company about a year ago, but was still determined at that time to hold it with diamond hands. Wonder what he's up to now.