Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-11-2010, 05:24 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by anders2010 View Post
...(though i imagine there will be some penalty for getting out of the SEP).

now that i actually can sell on my own im wondering if this is a good thing to do? like based off of what i've said, are there some obvious things i'm not considering here? sorry if this is confusing
Don't forget a SEP is not an investment, it is a particular tax deferred structure to hold investments. Consider keeping the SEP, because as you say there may be penalties and taxes to pay if you withdraw the funds or investments. You can sell the specific funds or other invesments within the SEP without tax consequences, as long as you leave the proceeds inside the SEP.

You can also do tax free rollovers into other tax deferred structures, but be sure something like this is necessary or favorable to your interest, which it likely is not.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-11-2010, 05:25 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
Quote:
Originally Posted by anders2010 View Post
are there some obvious things i'm not considering here? sorry if this is confusing
Yes, using capital letters.
__________________

__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Old 10-11-2010, 05:31 PM   #23
Confused about dryer sheets
 
Join Date: Jul 2010
Posts: 8
Quote:
Originally Posted by haha View Post
Don't forget a SEP is not an investment, it is a particular tax deferred structure to hold investments. Consider keeping the SEP, because as you say there may be penalties and taxes to pay if you withdraw the funds or investments. You can sell the specific funds or other invesments within the SEP without tax consequences, as long as you leave the proceeds inside the SEP.
Thanks, I hadn't realized this.

Quote:
Originally Posted by dex View Post
Yes, using capital letters.
Sorry about that
__________________
anders2010 is offline   Reply With Quote
Old 10-11-2010, 07:03 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by haha View Post
Don't forget a SEP is not an investment, it is a particular tax deferred structure to hold investments. Consider keeping the SEP, because as you say there may be penalties and taxes to pay if you withdraw the funds or investments. You can sell the specific funds or other invesments within the SEP without tax consequences, as long as you leave the proceeds inside the SEP.

You can also do tax free rollovers into other tax deferred structures, but be sure something like this is necessary or favorable to your interest, which it likely is not.
Ha
Not true, you can roll a SEP into a traditional IRA.............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-11-2010, 07:22 PM   #25
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,457
anders, take some time right now to evaluate your overall financial situation before you do anything else. Leaving aside the tax deferred account (the SEP), which should be rolled into a regular IRA at some point, you need to look at your taxable accounts and figure out how much you might need to have to live on for the next x amount of time until you find work again. That needs to be in cash, now, in a simple money market account at Fido or your bank.

The rest can be put into something for your long term goals, but index funds are not a panacea for the masses, any more than religion is. Some (SOME) actively managed funds do a splendid job of outperforming their benchmarks while others do not. Some index funds aren't so hot. Just saying you are going into index funds is not the full picture. You need to figure out your asset allocation and then research both index and actively managed funds to make the right choices for your risk tolerance and investment horizon.

Take control. This is, and has always been, your money. And your responsibility.

Good luck!
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 10-11-2010, 07:42 PM   #26
Full time employment: Posting here.
 
Join Date: Feb 2009
Posts: 886
Quote:
Originally Posted by Sarah in SC View Post

The rest can be put into something for your long term goals, but index funds are not a panacea for the masses, any more than religion is. Some (SOME) actively managed funds do a splendid job of outperforming their benchmarks while others do not. Some index funds aren't so hot.
comparing index funds to religion is an insult to index funds

If ANY manged fund can reliably outperform benchmarks after including fees it would be a surprise to the academics who study the issue. Sure, In retrospect by chance some have to. If you gave the NFL schedule to a stadium full of fans and asked them to pick the winners for the next season SOME would do a splendid job. So would some monkeys. Unfortunately you cant pick the geniuses out in advance.
__________________
Emeritus is offline   Reply With Quote
Old 10-11-2010, 07:46 PM   #27
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,457
Emeritus, I know you are kinda new here, but comparing actively managed funds and index funds has, like paying off the mortgage, been discussed to death around here. I'll just say that those of us in the business tend to believe our own press.

But all that aside, the OP needs to manage his cash flow more than his investments until he gets back on his feet employment-wise. And there is no better religion than cash for that!
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 10-11-2010, 09:15 PM   #28
Full time employment: Posting here.
 
Join Date: Feb 2009
Posts: 886
Quote:
Originally Posted by Sarah in SC View Post
Emeritus, I know you are kinda new here, but comparing actively managed funds and index funds has, like paying off the mortgage, been discussed to death around here. I'll just say that those of us in the business tend to believe our own press.


New or old, The continued revival of self interested claims to the possession of "Investor's magic fairy dust" whose purchase allows above market returns is not a "discussion". Anyone who has that ability would be a fool to rent it out. You borrow the money and bet it yourself.

Paying off a mortgage is a choice that depends heavily on personal situations. Being able to beat the market regularly over the long haul is a skill that can be tested.




__________________
Emeritus is offline   Reply With Quote
Old 10-11-2010, 10:32 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Emeritus View Post
New or old, The continued revival of self interested claims to the possession of "Investor's magic fairy dust" whose purchase allows above market returns is not a "discussion". Anyone who has that ability would be a fool to rent it out. You borrow the money and bet it yourself.
So, Peter Lynch is a mirage?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-11-2010, 10:41 PM   #30
Full time employment: Posting here.
 
Join Date: Feb 2009
Posts: 886
Quote:
Originally Posted by FinanceDude View Post
So, Peter Lynch is a mirage?
OFGS
Who bet the farm on him when he started out ? You can't pick the winners after the race. you have to pick them before the race.

Tell me who will beat the market over the next 2 years by 5 % and you are willing to guarantee it.
__________________
Emeritus is offline   Reply With Quote
Old 10-12-2010, 07:27 AM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Emeritus View Post
OFGS
Tell me who will beat the market over the next 2 years by 5 % and you are willing to guarantee it.
If I did know, WHY would I tell you, or anyone else?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-12-2010, 08:39 AM   #32
Full time employment: Posting here.
 
Join Date: Feb 2009
Posts: 886
Quote:
Originally Posted by FinanceDude View Post
If I did know, WHY would I tell you, or anyone else?

I believe that is what I said. If you have the skill you use it yourself , you don't rent it out for peanuts.

__________________

__________________
Emeritus is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Financial Situation When you FIRED. chinaco FIRE and Money 33 06-07-2008 10:18 PM
my financial situation tommyjk Young Dreamers 7 06-04-2008 08:27 AM
26 yr old financial adviser workin4me Hi, I am... 11 09-25-2007 05:07 PM
Advice on Current Financial Situation (Novice) yamasho Young Dreamers 20 06-15-2007 08:58 AM
Trust Me I'm Not a Financial Adviser elroy FIRE and Money 34 05-01-2006 11:36 AM

 

 
All times are GMT -6. The time now is 03:27 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.