Notes from Investing Latina 102

She's someone who's been investing since 19 and has a lot of know-how on all things money. She had a series of talks for us. There's a lot to process from these notes and I'm creating a separate post called learning to give myself action points based on what I learn from these notes as I process it.

She's on youtube and instagram : investinglatina

InvestingLatina with Julie


Invest 102


Writer for Huffpost, business insider 

Spoke at Google 


917 636 4049


Investing Workshop - Index funds to Bitcoin


Stock Market 

Types of accounts 

Strategies

Index Funds & ETFs

Bitcoin and Crypto

Taxes

Company RSUs

Taxes

Company RSUs

FSA & HSA

Investing while in Debt


Why invest?

Cost of assets will always be more than cash


Top exchanges of the world

  • NY Stock Exchange
  • Nasdaq
  • Tokyo Stock Exchange
  • Shangai Stock Exchange
  • HK SE
  • London SE


The crashes:

Wall Street (1929)

Black Monday (1987)

Great Recession (2007-2009) - when she started at this time when she was 19. 

She is now 33


Market continues to grow

Every day you are not investing you are losing big


We are in a capitalist society - productivity and innovation happens more now

Even though prices increase, markets have only grown for 100s of years


Types of accounts:

T1. ax-deferred(Traditional) - 401k , 403b, IRA


  1. Post Tax (Entrepreneurial)- Roth 401k, Roth 403b, Roth IRA - if you are going to make more money in retirement or have passive income. Ex. Startup person living on a couch and may become millionaire later - pay tax now. 

Additional perks: withdraw some money to buy a house (10K), 

5K - birth of a child, 

qualified education loans, 

Medical expense in excess of 7.5% of income

Health insurance if you’re unemployed

Disability

Beneficiary after death

IRS levy

Substantially equal amounts every year


  1. Double Tax(Wealth Building) - brokerage (also post tax)

After exhausted tax advantaged accounts , exceeded the limits, strategically build wealth. 


Limits 

401K - 19500

IRA - 6000

Brokerage - no limit (no insured)


HSA - triple tax benefit - after retirement you can use it for things outside of health

And you don’t pay before or after. But high deductible.


HSA - 3600

FSA - 2750 (use it or lose it) (double dipping - when company moves)


3 numbers

How much you make

How much you spend

How much you invest


Tax


Where to open accounts?

Full service:

Merill Lynch

Edward Jones

Morgan stanley


Discount brokers:

Fidelity

Schwa

Trade

ameritrade

Vanguard


Online apps - robin hood, ellevest


If you have mixed assets - better to get a full service / financial advisor


Use middle tier , generally- some support . Access 


What to invest?

Index funds are like fruit baskets - pick them up

Index fund - low expense ratio / trade once a minimum / they are a metric for a certain sector / automatic reinvest


SP

Nasdaq

Dow jones

Russel 3000


Bonds are loans to the government

Total market / international / US bond - 60/30/10

If you are young, don’t put it in bonds much

You can find funds that have a low minimum


ETFs - almost like index, trades several times so you can get a better rate option. Have to go in and reinvest. 


RSU

Required performance milestone / as long as you remain with the customer.

You are taxed when you take it

Sell or keep and grow. 


Cryptocurrency

Not governed by governments. Governed by math.

You get a crypto wallet

Hot wallet - online

Desktop wallet - physical laptop and need to backup

Mobile - 2 step auth

Web wallets - coinbase, gemini

Cold wallet - usb hub


Bitcoin - crazy ride - she recommends

Ethereum

Mining - math solutions


QnA:


 investing during debt

Leave low interest debt and focus on high interest


If in brokerage 

Pay tax Vs 401k-  tax sheltered

Savings - liquid savings / stocks also can be liquid when you sell.

4-6 months - stable job emergency savings

8 - 12 mos emergency savings - if unstable job


Max for 401K ? 

Woman - have an IRA - more flexibility - don’t have to max out - maybe a good idea to have some flexibility


Transfer of debt accounts

Administered 

Building generational wealth - 15K per year limit gift - so after that taxable

Create a trust


Dividend stocks - passive income

If you make 1000 dividends in a month - 350K investment

So work your way back on tax - 1% to 6% dividend yield usually on dividend stocks


Why Roth to a new bank?

Rolling accounts over is easy - just some signing papers - smart to do when market is high because you are selling.

401k to ira 


When you sell anything - taxable event - 1099 - selling for profit

You can write-off 5K per year loss. 


Ways to make money and not pay tax:

Holding a business

making the business pay for your expenses

That’s why Trump paid 7k in tax.

Also you invest stocks through the business - so loss and gain on stock is on the company

You just take money out when you have aa use.

25% of your business gross income - solo 401k - 50K 

Brokerage account - free fall - not tax protected

Roth - backdoor IRA 

Employer contribution is not counted towards 19500 


Tax planning during acquisition

IRS withholding estimator

You can get your tax refund to 0 by asking your HR to pause tax deductions by using this calculator in the last quarter.


Expense Ratio - lots of money


What’s a backdoor IRA- tradition Ira to Roth IRA within 30 days - CPA can help for fee and it’s okay to pay the fee because of the deadline.


Taxes withheld - will you owe tax on dividend


mint.com 


When you retire first use social security, then 401K, then crypto


Married filing separately?

May make sense when there is a huge difference between spouses in salaries

Or when 7.5% of income as medical expense can be claimed on one person’s salary but not combined.


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