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Started By
Message
26, self employed, where do I start
Posted on 9/18/20 at 10:02 pm
Posted on 9/18/20 at 10:02 pm
Where do I start? I need to obviously start a 401k or a Roth IRA (not sure if that’s correct), but how do I go about doing that? I’m looking to start Investing roughly $1500.00 a month. Let me know if you need any more info.
9
Posted on 9/18/20 at 10:41 pm to boatless2
Remember grass doesn’t grow in the winter but on a serious note, there’s a fire sale on crypto right now. I’d put every dime I had in it right now if I were you. If you’re ignorant about it, do your research. It’s the future of commerce.
This post was edited on 9/18/20 at 10:42 pm
Posted on 9/18/20 at 10:47 pm to boatless2
quote:
Where do I start?
Never forget the following:
Never underestimate the other guy’s greed.
Bears make money. Bulls make money. Hogs get slaughtered.
Fake it till you make it.
Posted on 9/19/20 at 12:21 am to boatless2
Same boat as you. I currently have a Roth Ira, savings account, and pay my debts (truck, house, and student loans).
I did my Roth Ira with betterment, I thinks it's been very successful and easy to do. The current limit for a Roth Ira is $5500 a year I believe, so once you reach that you'll have to find an alternative place to invest or just stick it in savings.
I did my Roth Ira with betterment, I thinks it's been very successful and easy to do. The current limit for a Roth Ira is $5500 a year I believe, so once you reach that you'll have to find an alternative place to invest or just stick it in savings.
Posted on 9/19/20 at 5:24 am to PrideofTheSEC
quote:
where do I start
1. Always consult the money board.
2. PLAY, Hertz, JCPNQ are good companies to invest in. You have to understand heartbreak so learn it early.
If you’re confident in the result, screw the half assed shite, go all in.
This post was edited on 9/19/20 at 5:26 am
Posted on 9/19/20 at 6:11 am to boatless2
Look at a solo 401k with Fidelity, Vanguard, etc
Low cost ETFs or mutual funds.
Low cost ETFs or mutual funds.
Posted on 9/19/20 at 7:03 am to shackleford318
quote:
shackleford318
Start by not listening to this guy.
Solo 401k is referenced above. You’ll get tax breaks and you can defer that income and all of its gains and dividends. Do you have employees or expect to in the near future?
Posted on 9/19/20 at 8:29 am to makersmark1
Tell me what the beneficial difference is in funding the solo 401k vs. SEP.
Posted on 9/19/20 at 9:03 am to boatless2
Yolo tsla
Posted on 9/19/20 at 9:16 am to boatless2
Open an eTrade or similar account and manage it yourself.
Buy low, look for stocks with a good dividend yield and low debt to asset ratio, diversify. Bonds suck right now so might as well have cash.
Buy low, look for stocks with a good dividend yield and low debt to asset ratio, diversify. Bonds suck right now so might as well have cash.
Posted on 9/19/20 at 9:39 am to boatless2
It's a good time to start both due to your age and because there are a lot of long term bargains out there due to the pandemic. Pick a few good ETFs, buy on the dips and let it ride if you don't want to spend a lot of time studying the market.
Posted on 9/19/20 at 9:53 am to BestBanker
quote:
401k vs. SEP
Both give tax breaks to the owner/employee(s). They both require employee contributions if there are any employees.
401(k) can be more efficient to the business owner if W2 employees are present, but there is sometimes an administrative expense. 401(k) limits are around $19,500 and then additional amounts are allowed through profit sharing and other company contributions.
SEP plans are all company contributions and the limits are upwards of $53k or so. Tough when employees are present. Because the contributions come from the company (not salary deferral), the % that the owner would get, so would the employees. So it can get more expensive.
I like the SEP if there is just a single owner/employee paying themselves a W2. Little to no administrative cost.
You can usually invest in most anything using both of them, but Solo 401(k)s are sometimes limited to a select group of mutual funds or ETFs.
Posted on 9/19/20 at 10:20 am to jangalang
quote:
but on a serious note, there’s a fire sale on crypto right now. I’d put every dime I had in it right now if I were you. If you’re ignorant about it, do your research. It’s the future of commerce.
quote:What's with this shite
PLAY, Hertz, JCPNQ are good companies to invest in. You have to understand heartbreak so learn it early.
If you’re confident in the result, screw the half assed shite, go all in.
Posted on 9/19/20 at 11:38 am to boatless2
get a solo401k where you control the checkbook not some shite through a brokerage where they won't allow you to invest in whatever you want.
get a roth ira
get a roth ira
Posted on 9/19/20 at 12:26 pm to LSUcam7
Solo401k has more flexibility, but also has more "adminstrative" aspects.
You can set up one through major brokerages fairly easily. The one I have through schwab I can do individual stocks as well as funds etc. But these greatly limit your options(most don't offer a roth option, some doesn't do loans etc)
If you want ultimate flexibility then setting up a checkbook solo401k you can do a variety of things including investing in real estate properties, taking loans out, setting up roth 401k contributions,etc.
Another advantage of solo401k include the ability to still have an option for a backdoor roth ira(sep IRAs count towards the pro rata rule).
You can set up one through major brokerages fairly easily. The one I have through schwab I can do individual stocks as well as funds etc. But these greatly limit your options(most don't offer a roth option, some doesn't do loans etc)
If you want ultimate flexibility then setting up a checkbook solo401k you can do a variety of things including investing in real estate properties, taking loans out, setting up roth 401k contributions,etc.
Another advantage of solo401k include the ability to still have an option for a backdoor roth ira(sep IRAs count towards the pro rata rule).
Posted on 9/19/20 at 4:56 pm to boatless2
Look at starting with a SEP or UniK. Can contribute up to 25% or $57k, the lesser of. Then a Roth. Do individual account also for liquidity needs.
Posted on 9/19/20 at 6:52 pm to BestBanker
quote:
beneficial difference is in funding the solo 401k vs. SEP.
IF you don’t make enough to truly max the SEP which I think is like $270,000 profits, you can fund the solo 401k from two aspects- $19,500 as an employeE and then 20% net profits as Employer. I may have that backwards, but I had a solo 401k when I had my own practice and I was able to put more money away than with a SEP.
Now I just have a small side business so I use a SEP for that.
Short article
LINK
This post was edited on 9/19/20 at 6:55 pm
Posted on 9/19/20 at 7:15 pm to makersmark1
20% net profits as Employer.
as a sole proprietor
as a corporation it is 25% of wages from the owner profit sharing side then of course the employee side of 19.5k.
LINK
as a sole proprietor
as a corporation it is 25% of wages from the owner profit sharing side then of course the employee side of 19.5k.
LINK
Posted on 9/19/20 at 7:25 pm to Fat Bastard
quote:
as a sole proprietor
That was me.
Posted on 9/20/20 at 12:03 am to PrideofTheSEC
quote:
The current limit for a Roth Ira is $5500 a year I believe,
$6k now
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