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Thread: Money

  1. #811
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    The company "financial advisers" finally turned on the Roth option for our 401k, so I flipped the switch and dumped my future contributions into the Roth 401k. However, I also made another positive change in dropping my contribution to the minimum for the company match, and finally opened a Roth IRA through Vanguard. Yay for sorting out money!

  2. #812
    Tiny Dancer Drewbie's Avatar
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    Any of you guys have a Robinhood account that would like to refer me? I have some money I'd like to set on fire and figure that's a good place to do it.

  3. #813
    Darth Small Macheath's Avatar
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    The Equifax data breach settlement claim page is up:


    I came up as eligible, so I filed a claim. I have CreditKarma for "credit monitoring" so I opted for the $125 payment. I also claimed an hour for the time I spent freezing my credit at each of the three bureaus (Equifax in Dec. 2017, Experian and TransUnion in Jan. 2018) so that should add another $75.

    I should be receiving a $200 check, unless there's some issue. It's scant compensation for having my financial identity imperiled, but I'll take it and you should too.

  4. #814
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    Sweet! I wasn't impacted! Thanks for the heads up.

  5. #815
    Darth Small Macheath's Avatar
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    150 million people were in that data breach. How the hell were you not?

  6. #816
    Tiny Dancer Drewbie's Avatar
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    I was not either.

  7. #817
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    Thanks for the heads up. I was affected.

    I like free money.

  8. #818
    Darth Small Macheath's Avatar
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    :eyeroll:

    Great job on anticipating the response and appropriately sizing the settlement, FTC:

    5. I thought I could choose $125 instead of free credit monitoring. What happened?

    The public response to the settlement has been overwhelming. Millions of people have visited this site in just the first week. Because the total amount available for these alternative payments is $31 million, each person who takes the money option is going to get a very small amount. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed.

    The free credit monitoring provides a much better value, and everyone whose information was exposed can take advantage of it. If your information was exposed in the data breach, and you file a valid claim before the deadline, you are guaranteed at least four years of free monitoring at all three credit bureaus (Equifax, Experian, and TransUnion) and $1,000,000 of identity theft insurance, among other benefits. The market value of this product is hundreds of dollars per year.

    You can still choose the cash option on the claim form, but you will be disappointed with the amount you receive and you won’t get the free credit monitoring.

    6. I want to change my claim to get free credit monitoring instead of a cash payment. Can I do that?

    Yes. The settlement administrator will be sending an email to people who already submitted a claim for the alternative cash payment. In that email, you will have the option to:

    1) provide additional information OR

    2) switch to free credit monitoring.

    We will update this page with more information after the email goes out.

  9. #819
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    Ok, so with $31M "available" that's only 248,000 people out of the 150 million people affected. I feel like it would be just to make more money available.

    All 150 million people taking the $125 is only $18.75 billion. .... ooops, I guess their net worth is only $7 billion.

    If they liquidate the company everyone gets $48.20 that sounds fair.

  10. #820
    Darth Small Macheath's Avatar
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    Chatter about the "Mega Backdoor Roth" is increasing, and I've never had the mental capacity to understand what's up.

    Things I know:

    • Normal 401k withdrawals are taxed as income.
    • Roth IRA withdrawals aren't taxed at all, if you make the withdrawal after age 59.
    • (Roth IRA withdrawals before 59 are taxed as income, plus a 10% penalty. So don't do that.)
    • There is such a thing as a Roth 401k. The difference between this and a Trad 401k is basically the same as Roth vs. Trad IRA: when you pay taxes on the money.
    • You can always roll your money out of a 401k and into an IRA. Trad->Trad, Roth->Roth.

    Things I think I know:

    • Most of the time, a 401k plan is for before-tax contributions (traditional). But if your employer allows after-tax contributions to your 401k (Roth), and if your employer's plan allows in-service distributions, you can roll the after-tax portion (your contribution) over into a Roth IRA.
    • Any employer contribution is considered before-tax, so it has to stay in the 401k.

    Things I don't know at all:

    • What's the incentive to roll your money out of a 401k and into an IRA? You might be forced to do it if you leave the employer, but otherwise...

    If an IRA isn't inherently better than a 401k somehow, then what's the point? Just to show off that you're contributing more to your IRA than seems possible? The kids down at the bar should be impressed by that trick, I guess.

    To me, the real question is still whether I'm paying more taxes now or later, and the answer is still "I'm paying more taxes now." Therefore, give me every bit of pre-tax contributions, to any investment vehicle, that I can get my hands on. Why would I want to make after-tax contributions to a Roth 401k instead?

    The only reason I make use of a Roth IRA is that the money's already been taxed whether I want it to be or not, so I might as well sneak it into a vehicle that allows untaxed gains.

    Maybe the idea is, max out your 401k with pre-tax contributions, then make an additional after-tax contribution (which can then be rolled to an IRA, for some reason). That makes some sense. I was assuming I was stuck with one or the other, but if I can make use of both Trad and Roth 401k contributions, it starts to seem like a good idea.
    Last edited by Macheath; 08-10-2019 at 03:07 PM.

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