Bogleheads.org is a great resource. But for me the ER forum and their FIRE calculator has been more on the point.
Early Retirement & Financial Independence Community
Early Retirement & Financial Independence Community
“I’ve often been asked, ‘What do older people do once they retire?’ Well, I have a Boomer retired friend who has a chemistry background and one of the things enjoyed most is is turning beer, whiskey, and wine into urine. And, by golly, he’s pretty damn good at it!”
He´d tell me to sell most of my TSLA and diversify, no? Not ready to do that yet... But maybe I have a wrong imagination of financial advisors, maybe it wouldn´t hurt after all. I can still not listen to him ..
Here's a book on that subject:
The Number: What Do You Need for the Rest of Your Life and What Will It Cost? by Lee Eisenberg
Do you know your Number? What happens if you don't make it to your Number? Do you have a plan? The Number is no ordinary finance book—it offers an intriguing and entertaining tour of weath gurus, life coaches, and financial advisers, and our hopes and fears for the future. The result is a provocative field guide to your psyche and finances and an urgently useful book for anyone over thirty.
Love the book, I have given away many copies,
Here is an update to the 4% withdrawal guidelines, the "re-retire" distribution concept makes a lot of sense.
Safely Boosting Retirement Income by Harmonizing Drawdown Paths | Financial Planning Association
I don't recall where on these TMC Forum threads I found this info, but it appears to be an awesome way to get some cash from a large pile of TSLA shares.
The goal: HODL forever--never sell a share.
This first link is one company I've found and I'm working to get a quote from them (NO idea if they're any good; just FYI). The second is from one of our brokers, TD Ameritrade, as their rates are jaw-droppingly low, nearly free money; see for yourself . . . .
Asset-Based Loans & Mortgages - Griffin Funding
Securities Based Lending - Collateral Lending | TD Ameritrade
(Note: Libor 30-day rate is about 0.15%, and has been remarkably low for a lot of history.)
FYI: Info from TD Ameritrade "TD Bank" initial reply to my query re: collateral lending.
It almost feels that this is TDA's invitation to transfer our accounts to Interactive Brokers?!? You'd think that if they were serious about keeping us, they'd make an effort to match their margin lending rate, no?
We would love to assist you with a collateralized Line of Credit using your taxable accounts at TD Ameritrade. I have included two links for additional information on how TD Bank's collateralized lending program works. This should answer many of your questions.
We do try to match our competitors rates if they happen to lower, with the exception of Interactive Brokers. Our rates on commitment amounts $1MM- $2.999MM is 2.15% + 30 day Libor and $3MM + is 1.50% + 30 day Libor.
So this would be about 2.3% rate on loans between 1 to 3MM, correct? Fidelity is almost 6%!!
Might be time to look for alternates for us.
If you are price shopping look at Schwab as well if you fall in the 2.5M to 3M range: Pledged Asset Line® | Schwab Bank | Charles Schwab
Loan Value Of Collateral at Origination Interest Rate Spread
$100,000 to <$250,000 4.50%
$250,000 to <$500,000 3.25%
$500,000 to <$1,000,000 2.75%
$1,000,000 to <$2,500,000 2.25%
$2,500,000 and above 1.75%
(The spread is the amount over the one month LIBOR you pay.)
The only catch that I'm aware of is that IBKR used to (or still?) have special requirements for margin with TSLA shares. (Anyone know if that's still the case?)
Thanks for the link! Been trying to understand IBKR margin since I switched from Fidelity. May have to migrate another account to take better advantage.Yes its still the case (I've had to just buy a cheap Put to keep my portfolio margin limit in check). The published margin rate from IBKR for TSLA is 40% but the actual rate is much higher, something like 75%. This adds a House Based margin requirements above the standard rate, specifically for TSLA. I believe it may be based on their Collateral Value Pricing (CVP) policy that lowers the cost value of TSLA shares that you can borrow against.
This Reddit post provides some explanation of the CVP policy: https://www.reddit.com/r/teslainves..._for_ib_investors_tsla_margin_rate_currently/
I hope this is the right place for this question. Roth IRA thread is closed.
I like the idea of moving some TSLA to a Roth, but would have to create a backdoor conversion.
Can I transfer some stock this year (paying income taxes on it, naturally) and some in future years? Or even multiple times in a year? (dollar averaging)
If I only get one shot this year, I better think about it carefully.
If I only get one shot in my liefetime, I really better think about it!
TIA and sorry my google-fu skills failed me. Am hoping someone here has done this, or happens to know, and yes, I get and accept “not an advice” and ymmv.
Maybe I'm misunderstanding what you're trying to do - but I don't believe a "backdoor conversion" would be ideal with already purchased stock. A Roth Backdoor conversion is used when someone makes over the Roth Contribution limit ($139k in 2020 for individual) but wants to take advantage of an IRS loophole to still stuff $6k ($7k if you're older than 50) into their Roth IRA anyways.
They do this by first opening up a traditional IRA and funding $6k from their bank (post-tax dollars) and then immediately converting that traditional IRA into a Roth IRA. While that $6k is undergoing the conversion process, it should really be in a money market fund - otherwise you'll have some tax work to do on gains / losses next year. I've done this with Vanguard and the process is fairly easy - but I've not done anything related to stocks in the conversion. I believe another simplification for tax purposes is to have no open traditional IRAs for this backdoor process to work.
If you already have a traditional IRA accounts (say because you rolled your prior employment 401ks together) with stocks, I'm not sure how much benefit you'll get by only converting a portion of that traditional IRA to a Roth IRA.
And you don't get one specific shot in your life time, you can do backdoor Roth conversions every year. This link may help you.
Backdoor Roth IRA 2020: A Step by Step Guide with Vanguard
Has anybody else tried to leverage Fidelity into providing them with significantly better margin rates than their published rates?
I'm finding the idea of a margin loan over outright sale of shares might be a valuable addition to my collection of tools for generating a living until age 60 and I have full access to my retirement accounts (which can then take over for a margin loan).
But paying 6-8% doesn't appeal to me.
I'm hoping others have done this, with success, and can tell me (us) about what they did. Otherwise I'm just gonna call the financial advisor they assigned me and have a discussion.