Personal Finance 101 for Young Lawyers

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Re: Personal Finance 101 for Young Lawyers

Postby Anonymous User » Wed Jun 12, 2019 8:30 pm

This may be a dumb question, so please bear with me. I have had an investment account with a money manager (like UBS, Morgan Stanley, etc.) that is heavily invested in publicly traded stock. I am going to start at a large firm in the fall and I will inevitably have some conflicts. What should I do? Should I ask the firm/whom should I ask at the firm? I already talked to my account manager and he just told me he would wait to get more info from me.

pithypike

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Re: Personal Finance 101 for Young Lawyers

Postby pithypike » Wed Jun 19, 2019 11:45 pm

Check with your internal compliance guys, but if you aren't making trading decisions it shouldn't matter.

Separately, you should instead DCA into a total stock market index or VOO. Doubt your guys are beating the market after fees.......

icansortofmath

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Re: Personal Finance 101 for Young Lawyers

Postby icansortofmath » Sat Jun 22, 2019 9:49 am

You have to ask your compliance. Policies err on the side of caution always so they end up stricter than is probably necessary.

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AVBucks4239

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Re: Personal Finance 101 for Young Lawyers

Postby AVBucks4239 » Thu Jun 27, 2019 3:12 pm

Anonymous User wrote:This may be a dumb question, so please bear with me. I have had an investment account with a money manager (like UBS, Morgan Stanley, etc.) that is heavily invested in publicly traded stock. I am going to start at a large firm in the fall and I will inevitably have some conflicts. What should I do? Should I ask the firm/whom should I ask at the firm? I already talked to my account manager and he just told me he would wait to get more info from me.

Regardless of your potential conflict issues, from a financial perspective, you shouldn't be paying anyone to manage your money, and you should just get a Vanguard account and invest in an S&P 500 index fund.

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logical seasoning

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Re: Personal Finance 101 for Young Lawyers

Postby logical seasoning » Mon Oct 14, 2019 6:31 pm

I work for the state and receive a nice pension. However, I would like to add more to a retirement account so I am more financially free in old age. The state doesn't match 401k or 457... Should I even contribute? If not, is there another investment I would be better off contributing to? Halp-- this stuff is confusing to me

dabigchina

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Re: Personal Finance 101 for Young Lawyers

Postby dabigchina » Mon Oct 14, 2019 7:42 pm

logical seasoning wrote:I work for the state and receive a nice pension. However, I would like to add more to a retirement account so I am more financially free in old age. The state doesn't match 401k or 457... Should I even contribute? If not, is there another investment I would be better off contributing to? Halp-- this stuff is confusing to me

first things first - does your state offer a 401k/457? If it does, it's almost always worthwhile to contribute to the 401k because you save on income taxes. You're basically guaranteed an extra 20-40% in returns from that alone. The only time when you would think twice about it is if the plan administrator offers shit investment choices with high expense ratios.

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logical seasoning

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Re: Personal Finance 101 for Young Lawyers

Postby logical seasoning » Wed Oct 16, 2019 1:13 pm

dabigchina wrote:
logical seasoning wrote:I work for the state and receive a nice pension. However, I would like to add more to a retirement account so I am more financially free in old age. The state doesn't match 401k or 457... Should I even contribute? If not, is there another investment I would be better off contributing to? Halp-- this stuff is confusing to me

first things first - does your state offer a 401k/457? If it does, it's almost always worthwhile to contribute to the 401k because you save on income taxes. You're basically guaranteed an extra 20-40% in returns from that alone. The only time when you would think twice about it is if the plan administrator offers shit investment choices with high expense ratios.


Yes the state offers 401k/457, but doesn't match. So you still think it is worthwhile to invest because of the money I contribute is untaxed...

dabigchina

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Re: Personal Finance 101 for Young Lawyers

Postby dabigchina » Wed Oct 16, 2019 4:21 pm

logical seasoning wrote:
dabigchina wrote:
logical seasoning wrote:I work for the state and receive a nice pension. However, I would like to add more to a retirement account so I am more financially free in old age. The state doesn't match 401k or 457... Should I even contribute? If not, is there another investment I would be better off contributing to? Halp-- this stuff is confusing to me

first things first - does your state offer a 401k/457? If it does, it's almost always worthwhile to contribute to the 401k because you save on income taxes. You're basically guaranteed an extra 20-40% in returns from that alone. The only time when you would think twice about it is if the plan administrator offers shit investment choices with high expense ratios.


Yes the state offers 401k/457, but doesn't match. So you still think it is worthwhile to invest because of the money I contribute is untaxed...

unless you think you'll need that money before retirement (buying a house, funding an emergency fund, kid's college, etc), yes.



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