Yeah, but if I’m getting hit with high expense fees (which I don’t foresee), I will be moving all the funds and thus be below the contribution amount with my IRA balance.
Robinhood is offering this deal because they badly want to grow assets and Gold program use. I don’t think they’ll do a bait and switch but if they do I’m sure that I can find the door.
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OK, started looking into this, but noticed one can have cash, but you can’t buy bonds, only stocks/ETFs/options. For those of you who aren’t 100% equity oriented, how do you plan to invest the fixed income portion of your assets?
Bond etfs
That’s where a chunk of mine is going
I’m using Ishares allocation etf AOR. It’s a global allocation fund and roughly 60/40. I’m gradually shifting from an all equity strategy to employing some fixed income including a position in this etf.
The funds are in Robinhood now along with the 3% match, it acknowledges I am up an additional $9,610. All that is left to do is ask for the $75 fee E*Trade charged and invest the funds. It was pretty simple and straightforward.
The first attempt to transfer failed, it would be best to first open the IRA and then proceed to make the transfer. But the second time with the IRA already open I began the transfer on 2/15 and it’s 2/19 and it’s all there including the match.
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I’m considering moving a $270K Roth over as well to score another $8,100.
I think I have convinced myself that the remaining assets ($950K) are sufficiently liquid to get me through the five year waiting period.
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this has me reading up more on robinhood and what it offers.
anyone use their debit card? I can’t tell if it is connected to the debit card option or a separate thing, but they also have where you can earn 5% on deposits that aren’t otherwise invested but in the account. if you are a Gold member.
what am i missing?
The spend account is like a checking account and does not pay interest. The spend account does offer cash back offer for selcted categories. With a Gold account I get 2% cash back on gas and groceries purchases plus various partner bonuses. One of the better current partner bonuses is Lyft at 5%.
The interest paid is on cash reserves in the brokerage account. Currently my account lists a 5.25% interest rate on cash reserves.
Gold accounts also qualify for a 3% bonus on IRA contrubutions and through April 30 on transfers from other IRAs or 401ks. There are restrictions on the bonus payouts and RH will claw back if you don’t satisfy the restictions.
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Ok smart people - baller alert. I max employer 401k already and am not eligible for ira (roth or other).
I could convert $300k from a prior employer 401k and get the 3% bonus here (assume i satisfy the offer requirements). Doing so prevents me from making non-deductible ira contributions and then immediately converting them w backdoor roth conversions (bc pro rata rules for conversion spoil a lot of the gain). So invesntments would all be in a std investment account subject to cap gains each year.
I could forgo the 3% bonus and commence the nondeductible ira stuff w immediate conversion to roth ira.
I have a 10-12 yr horizon. No more.
I am leaning towards the 3% “easy button” within the ira and doing standard investment account stuff where cap gains are taxed as such.
My current marginal rate is high. My future in retirement rate will be lower. Future cap gains rate likely close to regular income rate. (15%-25% when factoring in state taxes)
Im not a candidate for a large backdoor conversion of the account i’d switch to robonhood ira right now. My marginal tax rate sucks (meaning im doing well, yay me).
Am i reading the internet right?
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With no current tax benefit from the IRA and an anticipated future sharp decline in personal tax rate I think tax efficient investments in a regular brokerage account are an excellent option. Aside from RMDs from the IRA you can control your retirement income by the pace of withdrawls from the IRA and realized capital gains so that you can optimize to stay within a chosen tax bracket and avoid or minimize the Medicare rate time bomb.
I don’t see any downside to grabbing the Robinhood bonus with the old 401k funds if you choose this path.
Transfer initiated, should be the proud new owner of an additional $8,117 very soon.
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Aaaaaand it’s gone!
To my Robinhood account along with an additional $8,115.
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I want my two dollars!
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LOL.
I forgot about the $75 fee E*Trade took from each of my IRAs.
I should recoup the $150 but if they don’t match it be warned that I only got a 2.99924% match.
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The money is really rolling in now…
You received a residual transfer of assets from your previous Roth IRA account transfer. The transfer of assets resulted from a residual sweep, which is the process of transferring any securities or cash that may have remained in an account after the initial transfer. Residual sweeps are common when you have unsettled trades or dividend payments at the time or after the initial transfer request. No action is required on your end.
Your IRA match of $0.01 for your IRA transfer is now available and ready to invest.
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I don’t think I can avoid transferring my 401k over to RobinHood for an additional $10,277 as I leave my employer since I have until April 30 to get the 3% match.
That leaves me with $446K which only needs to last 5 years and 3 months until the wife can raid her Roth (and technically we can withdraw contributions earler).
That would bring the total matching up to $28,000. Crazy.
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Robinhood giving you a car?
Well I did pay $27,639 (all-in) for my 50th birthday present Honda Civic in 2022, so YES.
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