Investment/Retirement Roth IRA Help

[spartyon8]

I wish it would have been taught as well. I did have a class that discussed bank accounts, balancing checkbooks, and intro to the stock market where we just picked stocks and monitored growth. 
 

What we really needed in high school was filling out job applications, setting up deductions and filing taxes. I remember that being the most confusing part of high school as I began my working/adult life. 
 

As always, thank you gentlemen!

[gim]

10 hours ago, padlin said:

A Fee only advisor is generally the suggested route.

 

That's what I use.  Been using the same certified financial advisor since I was 24.  Manages all my investments, accounts, and taxes.

 

I get a monthly statement and we have an in-person meeting every January to talk about financial goals, etc.

[TOXIC]

15 hours ago, gimruis said:

Not true.  My debit card is a Mastercard through my bank which is FDIC insured, and therefore, federally backed.  I have the exact same fraud protection on it that I do on a credit card.

 

Just a little clarification from someone who worked for 35 years at the FDIC……ME.  Your bank (deposits) may be FDIC insured but I guarantee you, your credit cards are not.  Just because a bank has FDIC insurance does not make them “Federally backed”.  That’s not to say you don’t have fraud protection through the issuer (Mastercard, visa, amex, etc.) but it’s not through the bank.  Neither is a debit card.  I say this just to make sure y’all know your exposure.  

[gim]

12 minutes ago, TOXIC said:

Your bank (deposits) may be FDIC insured but I guarantee you, your credit cards are not.

 

I never said my credit card was federally backed.  I think you're confusing me with someone else here.

[Tennessee Boy]

This is the difference between a credit card and a debit card as I understand it.  I could be wrong.

 

If you wake up one day and you have a fraudulent charge on you credit card,  you call the issuer and dispute the charge.  They look into it and eventually remove the charge.

 

If you wake up one day and someone had drained your bank account using your debit card, you call  your bank and dispute the charges.  They look into it and eventually put the money back into the account.  Until that happens you're broke.

[TOXIC]

@gimruis I quoted your statement that the bank was federally backed.  Maybe I misunderstood your statement.  There is no bank or credit card that is federally backed.  Your deposits are insured. 
 

@Tennessee Boy somewhat correct.  A credit card charge goes from the vendor to the card company and then to you via a statement for payment.  A debit card charge goes directly to the bank and it is the same as paying with cash.  A dispute on a credit card purchase is subject to the credit card company policy.  A dispute on a debit card is subject to the banks policy which is usually a lot less protective to the consumer.  With a debit card, the money is gone from your account as soon as the charge is made.  

[gim]

43 minutes ago, Tennessee Boy said:

If you wake up one day and someone had drained your bank account using your debit card, you call  your bank and dispute the charges.

 

That's not how mine works.  I've had fraudulent charges on both my debit card and credit card.  The same procedure occured.  Someone would notice a sketchy charge and notify me.  If it wasn't me, the card would immediately be locked down.  Since my debit card is a Mastercard, fraud protection works the same way as a Mastercard or Visa credit card works.

 

The bank has nothing to do with it.  At least based on my experience it hasn't.

 

I personally think a debit card is a better way to teach people personal budget responsibility.  You can't spend money you don't have.  With a credit card, you can buy stuff without actually having the money for it.  Then people find themselves in a credit hole they can't pay for later on.

[MN Fisher]

^ That's exactly how mine worked. Saw a charge on my personal debit that I refuted to the bank, they held the charge (no money going out) until they investigated, they refused the charge and sent me a new card as that one was rampantly part of the TW fiasco a few years back....the balance in my checking account never changed.

 

Debit charges at my bank are 'pending' for two days...if the charge is not refuted within 48 hours - THEN they take the money out...my debit charges are NOT immediate payment like cash...they treat it like a written check where you can cancel a check you've given out within a certain time period.

[TOXIC]

What are 5 disadvantages of debit cards?

 

 

Cons of debit cards

• They have limited fraud protection. ... 
• Your spending limit depends on your checking account balance. ... 
• They may cause overdraft fees. ... 
• They don't build your credit score.

While banks are generally obligated to refund money lost to fraud, they may deny the refund if you were negligent or involved in the scam. Whether or not your bank will refund scammed money depends on the bank's policies, the type of scam, and how you paid. But there are consumer protections available.

Personally, I do not use a debit card.  Too much risk and really no benefit. 

 

[Team9nine]

 

46 minutes ago, gimruis said:

 

That's not how mine works.  I've had fraudulent charges on both my debit card and credit card.  The same procedure occured.  Someone would notice a sketchy charge and notify me.  If it wasn't me, the card would immediately be locked down.  Since my debit card is a Mastercard, fraud protection works the same way as a Mastercard or Visa credit card works.

 

The bank has nothing to do with it.  At least based on my experience it hasn't.

 

31 minutes ago, MN Fisher said:

^ That's exactly how mine worked. Saw a charge on my personal debit that I refuted to the bank, they held the charge (no money going out) until they investigated, they refused the charge and sent me a new card as that one was rampantly part of the TW fiasco a few years back....the balance in my checking account never changed.

Not how mine worked - probably varies from bank to bank. I noticed an unauthorized charge pending on my debit card the same day it appeared. Notified my bank immediately and they said they had to wait to see if it went through before I could dispute. What the? - wait til the money is actually gone then call us - lol. Was pretty disappointing. My CC, on the other hand, is all over it. They’ve contacted me based on activity they detected before anything ever showed up in my notifications, which usually show up within 60 seconds of a charge going through.

[txchaser]

@spartyon8

https://www.bogleheads.org/wiki/Getting_started is like bass resource but for this question. Please go there before you hire anyone on a long term agreement or make any big changes. 

 

Bogle is the guy that started Vanguard. What people seem to like about it is that it's dead simple to implement, and has a big community for help.

 

Bogleheads investment philosophy

We suggest you start your journey by reading the Bogleheads investment philosophy first. In short, this is:

Prepare to invest	Create a portfolio	Maintain discipline
Live below your means Develop a workable plan Never bear too much or too little risk Invest early and often	Diversify Invest with simplicity Use index funds where possible Minimize costs Minimize taxes	Never try to time the market Stay the course[note 1]

There are some short video segments that introduce these principles. See: Video:Bogleheads® investment philosophy.

[Dwight Hottle]

10 hours ago, txchaser said:

@spartyon8

https://www.bogleheads.org/wiki/Getting_started is like bass resource but for this question. Please go there before you hire anyone on a long term agreement or make any big changes. 

 

Bogle is the guy that started Vanguard. What people seem to like about it is that it's dead simple to implement, and has a big community for help.

 

Bogleheads investment philosophy

We suggest you start your journey by reading the Bogleheads investment philosophy first. In short, this is:

Prepare to invest	Create a portfolio	Maintain discipline
Live below your means Develop a workable plan Never bear too much or too little risk Invest early and often	Diversify Invest with simplicity Use index funds where possible Minimize costs Minimize taxes	Never try to time the market Stay the course[note 1]

There are some short video segments that introduce these principles. See: Video:Bogleheads® investment philosophy.

Excellent suggestion. The kiss theory works for investing very well. 

[TOXIC]

14 hours ago, txchaser said:

@spartyon8

https://www.bogleheads.org/wiki/Getting_started is like bass resource but for this question. Please go there before you hire anyone on a long term agreement or make any big changes. 

 

Bogle is the guy that started Vanguard. What people seem to like about it is that it's dead simple to implement, and has a big community for help.

 

Bogleheads investment philosophy

We suggest you start your journey by reading the Bogleheads investment philosophy first. In short, this is:

Prepare to invest	Create a portfolio	Maintain discipline
Live below your means Develop a workable plan Never bear too much or too little risk Invest early and often	Diversify Invest with simplicity Use index funds where possible Minimize costs Minimize taxes	Never try to time the market Stay the course[note 1]

There are some short video segments that introduce these principles. See: Video:Bogleheads® investment philosophy.

The only thing I would add is to look at the future and factor in tax ramifications.