Account help

[nawlinsn931]

I’m looking for the right information about which type of account to set up (separate from my job) that will yield the most in interest. Me and my wife wand start putting money away. So besides a 401k what can I do? I have stocks with Fidelity but nothing serious any help will be appreciated

 

[Coldchi]

IRA.....

 

[nawlinsn931]

IRA.....

Who/where to start
I have navy federal

 

[Coldchi]

Who/where to start
I have navy federal

Well u already have Fidelity.
You can open a Roth IRA or a Traditional IRA with them. No management fees....no minimums.
Roth is better cuz it can't be taxed.

 

[nawlinsn931]

Well u already have Fidelity.
You can open a Roth IRA or a Traditional IRA with them. No management fees....no minimums.
Roth is better cuz it can't be taxed.

Thank you

 

[CPT Callamity]

If you want liquid cash, pick a High Yield Savings Account (HYSA). Rates are between 3-4% so if you just need some cash to grow passively, that's the move.

 

[nawlinsn931]

We’re moving soon and putting away money for retirement that we can let grow as we work

 

[MemphisNigga]

IRA, Stocks and 401K....the rest in HYSA.

 

[nawlinsn931]

Do a HYSA with navy federal (my bank)?

 

[Hey Julian!]

I’m looking for the right information about which type of account to set up (separate from my job) that will yield the most in interest. Me and my wife wand start putting money away. So besides a 401k what can I do? I have stocks with Fidelity but nothing serious any help will be appreciated

High yield saving is the easiest with immediate access to your funds. Right now around 3.5-4% depending on where you look( gains are not taxable). Next would be a CD (Certificate of Deposit) accounts. You can get one right now with around 4.2% return if you do it every six months and thats a annual return of 8.4%, but you do have to park you money for 6 months at a time without access to it. I do believe there are 3 month CD's as well. Longer term easy investment would be an S&P 500 mutual index fund like VOO that generate dividends. VOO annual return was 12.xx last year, but it's a stock so the price can go down. High Yield Savings and CDs to guarantee returns. Mutual funds for more return, but potential loss if price goes down. Hope that helps.

 

[BlackGoku]

Check out www.nerdwallet.com. They have great recommendations for what you're trying to do as far as HYSA goes.

 

[meilmarc]

I’m looking for the right information about which type of account to set up (separate from my job) that will yield the most in interest. Me and my wife wand start putting money away. So besides a 401k what can I do? I have stocks with Fidelity but nothing serious any help will be appreciated

Regular IRA or Roth IRA.

I prefer the Roth because you pay the taxes upfront since its an after tax contribution, so when you start pulling money later on the growth and the money is tax free.

For folks who want to lessen a yearly tax burden up front they do the Regular IRA but when you pull the money later you will be paying taxes on the money that has grown.

 

[nawlinsn931]

Just set up one with Capital One
Gone do Sofi as well

 

[Walter Panov]

Roth IRA put all of it in a Vanguard or Schwab index fund that follows the total stock market.

 

[Princenubian]

High yield saving is the easiest with immediate access to your funds. Right now around 3.5-4% depending on where you look( gains are not taxable). Next would be a CD (Certificate of Deposit) accounts. You can get one right now with around 4.2% return if you do it every six months and thats a annual return of 8.4%, but you do have to park you money for 6 months at a time without access to it. I do believe there are 3 month CD's as well. Longer term easy investment would be an S&P 500 mutual index fund like VOO that generate dividends. VOO annual return was 12.xx last year, but it's a stock so the price can go down. High Yield Savings and CDs to guarantee returns. Mutual funds for more return, but potential loss if price goes down. Hope that helps.

Just a little clarification, let me know if I’m incorrect.

The interest gained from HYSA are taxable…and

The returns from CD’s are usually in annual returns……therefore

@ 4.2%, would be divided by 12 b4 compounded monthly…if u had a 6 month CD, you only get 1/2 of that 4.2%

Hence you don’t get 8.4% if you do 6 mos two times.

Let me know if u agree.

Carry on…….

 

[nawlinsn931]

Financial literacy is important thank yall

 

[Jumbodicc]

Roth IRA, if you and your wife file taxes as married your income has to be less than $236K/yr. If you’re over that income limit open a traditional IRA and convert your contributions to Roth, it’s called a Backdoor Roth. There’s a lot of poor advice in this thread, I would suggest you speak with an advisor. IMO, you should avoid vanguard or fidelity unless you’re comfortable with building your own portfolio. Yes, they offer funds with low fees but you also don’t get any help. I also don’t recommend index funds because you’re guaranteed to never out perform the index. When choosing a Fund Family (American Funds, Invesco, Franklin Templeton,etc.) choose one that has good growth, balanced, tax free bond funds so that you keep your expenses low and can exchange fund choices without paying additional fees.

 

[Temujin]

Just a little clarification, let me know if I’m incorrect.

The interest gained from HYSA are taxable…and

The returns from CD’s are usually in annual returns……therefore

@ 4.2%, would be divided by 12 b4 compounded monthly…if u had a 6 month CD, you only get 1/2 of that 4.2%

Hence you don’t get 8.4% if you do 6 mos two times.

Let me know if u agree.

Carry on…….

LOL I didn't want to bust his bubble but you are correct. APY stands for annual percentage rate.

 

[Princenubian]

LOL I didn't want to bust his bubble but you are correct. APY stands for annual percentage rate.

Bruh, if I could find something that gives me 8.4% untaxable…….I'd be retired. Lol

Carry on…….

 

[Hey Julian!]

Just a little clarification, let me know if I’m incorrect.

The interest gained from HYSA are taxable…and

The returns from CD’s are usually in annual returns……therefore

@ 4.2%, would be divided by 12 b4 compounded monthly…if u had a 6 month CD, you only get 1/2 of that 4.2%

Hence you don’t get 8.4% if you do 6 mos two times.

Let me know if u agree.

Carry on…….

I misspoke, you're right all on fronts. I thought you got the full interest on CD's once the term was satified but it clearly states APY on the 6 month CD I was looking at so yeah. My bad @nawlinsn931 don't take advice negroes on the internet.


PS. I would spend half your check on the lottery. The potential gains are insane.

 

[Madrox]

Timecodes:

0:00 - Intro
0:49 - Emergency Fund
2:15 - 401K Employer Match
3:32 - High-Interest Debt
4:12 - Roth IRA
5:28 - HSA
6:24 - 529 Education Savings Plan
7:27 - Max 401K
7:58 - Taxable Account
8:46 - Lower Interest Debt
9:39 - Pay Off Mortgage

 

[Madrox]

Who/where to start
I have navy federal

Well u already have Fidelity.
You can open a Roth IRA or a Traditional IRA with them. No management fees....no minimums.
Roth is better cuz it can't be taxed.

I'm working my way down the thread, so sorry if already answered... but yea, you should be able to do all that in Fidelity and just open additional, separate account types under the same profile umbrella.

For example, I invest with M1 Finance and when I log in, my Taxable Brokerage Account (regular stock account), my Roth IRA (retirement), and High Yield Savings account (short term cash) all live separately and are accessible under that same tent.

 

[Madrox]

Just set up one with Capital One
Gone do Sofi as well

Right on. I've kept my Emergency funds and Travel funds in Capital One's Performance Savings accounts for several years now and have been good with the monthly interest gains.

 

[Madrox]

Roth IRA put all of it in a Vanguard or Schwab index fund that follows the total stock market.

..unless you're approaching retirement in the next 5 years or so. Might wanna go with a Target Date situation.