Investing • Page 2

I never added a bank account to my robinhood, so now I have to wait for it to verify... so I just have the cash from my free stock from like 2 years ago ($2.75). Rolling big over here!

 

same!

 

Still?

 

Yeah i'm a state employee with a state pension so they don't do any matching at all which is probably the biggest reason why I haven't started it yet haha. But thank you for the explanation. Wanted to see if it was worth downloading one of these apps to do an index fund account of some sort but it sounds like I can just put that money into a 401k with work and then maybe down the line if I have some extra cash I can get on one of these apps and do something with it on the side.

 

Bought a few shares of GME when it dipped to $250 earlier, lets see where this goes!

 

Just a reminder, don't forget the ~35% standard tax rate if you cash out! If you hold it for 1 year or longer it drops to 15% (20% if you make over 465k)

 

$100 on Blackberry

 

I'm nervous for you man

 

Yeah that's my biggest worry about all these reddit screenshots of people who are saying they cashed out and are paying shit off and etc. I realllllllllllly hope somebody has told them that they need to stash a third of it for the taxbill

 

Didn't invest anything I couldn't afford to lose. I know this is a weird situation and who the hell knows what is going to happen. Fun to be a part of at the minimum. Up to about $320 right now.

 

Why aren't I a millionaire already?

 

Literally any emo reunion announcement

 

Sold what I had in Virgin Galactic and bought 41 shares of Nokia thinking it was going to be next. It still hit its 52 week high today.

At least all this talk reminded me to bump up my 401k and look into what it is actually invested in.

 

If you don't need the money in the next few years (or really, until you retire decades from now), I would start contributing to the 401(k). It comes in two flavors:

Traditional 401(k): pre-tax contributions, so you don't pay any taxes on the money you put in the 401(k) account until you withdraw the money (and it's growth + dividends) when you retire.

Roth 401(k): post-tax contributions, so you pay your normal taxes on the income before it goes in the account, but the growth and dividends are tax free. Unless laws significantly change, you won't pay any taxes on the money you withdraw from this account when you retire.

- Some employers only offer the traditional 401(k)
- If both are offered, you can put contributions into both buckets

I'd talk to your HR ppl about what's offered. You can always start with a small % contribution and have it automatically increased a little each year.

TL;DR: unless you're trying to get rich via a meme stock, it's probably better to stick with retirement accounts

 

Ideally, you would do both. Maximum contribution to your 401k on a yearly basis and start a Roth IRA and maximize your contributions into it on a yearly basis by buying low cost ETFs. When it comes time for retirement, you will pay taxes on your 401k withdrawals, but not your Roth IRA.

 

So I did know this, but what's the reason for the diffrence? the Roth you can't physically touch until you're 65 right? whereas the 401k you can techinically take money at any point?

 

This is not 100% correct. What applies for short term gains is merely ordinary income rates. So us plebs who make $30K teaching are still in the 12% bracket

 

Nevermind I think stars explained it to me. Roth contributtions have already been taxed so they don't tax them agian, basically?

 

Yeah, I think mine is around 22%. Not a back breaker.

 

In a Roth IRA you can pull out your contributions at any time; the gains have to stay in until 65. Roth conversions have to stay in 5 years, then the converted amount is treated as a contribution, and can be pulled out before 65, but gains the conversion has made since moving to Roth are subject to the 65 rule.

 

i put in on EXPR at like $5 this morning and it went to $8 in an hour lol

 

The disadvantage to the roth is that you can only put so much money into it per year. I think it's $6,000 currently. However, that money can grow for 30 years or however long you'd like, and after you're 59.5 years old (and a few other specific instances), you can withdraw it without paying taxes. You can withdraw money earlier than that, but you will be hit with taxes. A 401k is a completely different animal.

Here's a good link with specifics:
401(k) vs. Roth IRA: What’s the Difference?

 

getting on now is an awful idea

 

Tried telling a friend this when he got in at $270 and now he’s up $500 within a half hour so it’s hard to talk anyone out of it at the rate it’s going lol

 

right. if you’re playing it extremely quick it’s fine. the bottom is also gonna drop literally any second now lol