The money hit my account this morning. I’m able to invest it until its release in 2024. Would there be any reason not to go with my standard allocation that I have in my retirement accounts which is like 70% US equities 30% international equities? I guess it would suck if I got fired and had to pay back the amount at the same time as a market crash, but that seems unlikely.
Edit: For additional consideration this is like ~25% of my total net worth.
I don’t know how this is set up, but if you actually did have to pay back the original vested amount in the event of a layoff or whatever, then no, I probably wouldn’t put it in stocks in a 1-3 year timeline.
If you wanted to keep your overall target asset allocation, could you just put the deferred bonus in something safe (bonds, money market, whatever), and weight the rest of your money more towards stocks?
I work for an energy company dealing with exactly this type of thing.
Its drones all the way up. Even if you speak to the first agents managers manager, they are gonna be a low level person with minimal power. If by some random path you do get hold of an exec, they will speak to customers so infrequently that you swearing at them will give them a little thrill.
We have a large amount of cash on hand due to a house build that fell through. We still want to build/buy a house, but there are some things up in the air and we’re not really interested in the very short term as the competition is too crazy. So we did exactly what you suggested here. We’re considering the cash as part of our fixed allocation, and transferred a bunch of bonds into stocks. (We slightly reduced the percentage of our stock allocation though, so it was more like we invested 50 percent of what we would have if we moved the cash into fixed and maintained our normal allocation, if that makes sense.)
Haven’t had a good hate read in a while.
To do so, she had to set a few boundaries for herself.
Like, a lower boundary of $200K income, probably.
The advice is not terrible, for people that need advice like “if you’re $300k in debt don’t buy expensive things you’ll hardly use”. Genius!
It did not spark hate.
I thought it was trite. Maybe that’s enough sometimes.
If you knock out 1-3, I think that’s pretty good advice and not hate worthy. There is some luck in #8 an #9 too, I guess.
What the fuck does this even mean? 80% of what? 20% of what?
The 80/20 rule
The 80/20 rule is another way to think about how much use you will get out of a product. If you believe you’ll use a product 80% of the time, it’s worth it to buy, Joy says.
…
If you’ll only use a product, say, 20% of the time, though, you might want to reconsider buying it. Anything in between you can negotiate with yourself what percentage of time you’ll be using it then decide if it’s worth the cost.
It is like someone just heard of the Pareto principle for the first time and tried to apply it to everything.
If you’re not spending at least 20% of your life driving your car, then your car is a waste of money
Question for smarter $$ people.
We live in the US. My mother back in the UK put 10,000 GBP in my UK bank acct as a gift to her grandkids (our 2 kids). Probably gonna set up investment accts for them w Vanguard or something; leave it for college.
What are our current US tax implications for that gift? Do we have a play to avoid it looking like an income for me that we’ll need to be taxed on by the IRS? Can I “regift” it to the kids, who won’t get taxed.
No tax implications. Gifts under $15k are tax free to both parties.
I don’t doubt this is correct because most countries have tax rules that allow for limited tax free transfer of wealth between family members. I would probably consult a tax expert on the cross border stuff though. That’s a wild card that could mess up any tax relief that is normally available.
Pretty sure this is right - you also have the issue that as a US taxpayer, the foreign currency gains/losses you experience on that account will be taxable income to you.
Cool. Thanks folks.
I’m pretty sure that you don’t pay any tax on the gift to the IRS. I don’t know what UK laws are on gift giving, though.
Also when you file your taxes, I think you have to declare any foreign bank accounts. Presumably you’re already doing this.
I pay capital gains tax every year on my Vanguard balance. To hold it tax free to your kids college, you need to set up a 529 account.
It’s $15k tax free per kid per year. There are also other gift exceptions with a life-time cap. No clue about UK gift rules if grandma has to pay something (doubt it, but who knows).
