# Investment general discussion thread **URL:** \ **Category:** In My Humble Opinion\ **Created:** [March 5, 2025, 6:24pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169 "2025-03-05T18:24:59Z")\ **Posts on this page:** 20\ **Page:** 82
**Author:** ![Tamerlane](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tamerlane/32/7602_2.png) [@Tamerlane](https://boards.straightdope.com/u/Tamerlane)\ **Post date:** [May 13, 2026, 6:02pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1623 "2026-05-13T18:02:24Z")
> [@DSeid](#): > > The standard guidance is that expenses go down in retirement. > [@Tamerlane](#): > > Mine are pretty much identical. Okay, correction. There ARE big differences for me now that I think about it, it’s just for me they’re a little hidden by the nature of being a pensioner. They are two big sources of savings. One, I am no longer paying into a retirement system - that’s a big savings right there. Two, I am no longer paying FICA (SS and medicare) or into mandated state disability insurance, taken together also a significant savings. The reason I didn’t really think about them is because they are kind of offset in MY retirement by the fact that I am now paying more for healthcare. My once fully funded medical and dental is now only very partially funded, so those savings in my pension checks are more than offset by my decreased income and higher medical costs. But they are very legitimate savings and while not everybody pays into social security if you’re in an opt-out job, not paying into retirement would be pretty broadly applicable to most retirees. ---
**Author:** ![DSeid](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dseid/32/20194_2.png) [@DSeid](https://boards.straightdope.com/u/DSeid)\ **Post date:** [May 13, 2026, 6:17pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1624 "2026-05-13T18:17:40Z")
I guess I don’t think of them as expenses from income. I’m thinking the models track consumption spending. ---
**Author:** ![DSeid](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dseid/32/20194_2.png) [@DSeid](https://boards.straightdope.com/u/DSeid)\ **Post date:** [May 13, 2026, 6:30pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1625 "2026-05-13T18:30:25Z")
Confirmed following through to articles: > Excluded are expenditures for pensions and social security, savings, and life insurance. ---
**Author:** ![Tamerlane](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tamerlane/32/7602_2.png) [@Tamerlane](https://boards.straightdope.com/u/Tamerlane)\ **Post date:** [May 13, 2026, 6:38pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1626 "2026-05-13T18:38:31Z")
> [@DSeid](#): > > I’m thinking the models track consumption spending. Oh, gotcha. Yeah, consumption is basically the same for me. I know people who are waiting to retire until their kids are out of college - that will be a big savings for them. But barring that or paying off the mortgage before retirement, I don’t see it being significant for most. As LSLGuy noted, stuff like wardrobe and commuting (offset in many cases by increased travel) just aren’t going to be big savings for most people. ---
**Author:** ![Railer13](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/railer13/32/9742_2.png) [@Railer13](https://boards.straightdope.com/u/Railer13)\ **Post date:** [May 13, 2026, 6:40pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1627 "2026-05-13T18:40:26Z")
My thoughts in this post are only as I understand the rules concerning retirement funds. Please don’t consider them to be gospel truth, as I am not a financial expert, but I do know a bit about taxes. > [@Velocity](#): > > Right now, before rolling over, I have only the option of total withdrawal from 401k (which I don’t want,) according to the Fidelity website - or leaving as is, or rolling over into IRA. Any thoughts? I believe this is true. If you are no longer a participant in a 401k, you have to withdraw the whole thing, or roll it all over to an IRA. > [@Velocity](#): > > From what I understand, I can roll it over into an IRA and then, since it’s disbursed to me (due to my no longer being employed,) I can then make a partial withdrawal. Correct, AIUI. And, yes, you will be taxed on the funds you withdraw, BUT, if you are withdrawing them for an emergency, you will not be subject to an additional penalty. See the link below from the IRS. > **[Retirement topics - Hardship distributions | Internal Revenue Service](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-hardship-distributions)** > > Retirement Topics - Hardship Distributions The kicker here is that you must use all of the withdrawn funds to cover the hardship/emergency. If you get audited after filing next year’s return, you will need to show that you used the entire $7k to pay medical bills or mortgage/rent payments that kept you from being evicted. In my role as a volunteer tax preparer, I have seen several early IRA or 401k withdrawals, usually due to medical bills or tuition payments. As the preparer, I mark the distribution as an emergency, and, as far as I know, none of these clients have had an issue with the IRS. Obviously, your experience may vary. Hope this helps. And hopefully other Dopers can weigh in as well. ---
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [May 13, 2026, 6:43pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1628 "2026-05-13T18:43:11Z")
Much thanks! I think I will have a hard time justifying it as a true emergency, the medical bills are of a dental, not more-urgent nature, the car accident wasn’t a bad wreck, I’m not facing eviction. I may have no choice but to eat the 10% penalty. That’s OK in the big scheme of things. ---
**Author:** ![Dag\_Otto](https://avatars.discourse-cdn.com/v4/letter/d/439d5e/32.png) [@Dag\_Otto](https://boards.straightdope.com/u/Dag_Otto)\ **Post date:** [May 13, 2026, 7:12pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1629 "2026-05-13T19:12:34Z")
> [@Velocity](#): > > I think I will have a hard time justifying it as a true emergency, the medical bills are of a dental, not more-urgent nature, the car accident wasn’t a bad wreck, I’m not facing eviction. I may have no choice but to eat the 10% penalty. That’s OK in the big scheme of things. Here is my thought: Since the amount of funds needed is not huge (“only” $7k, YMMV), can you reduce or suspend your contributions into your current 403b? Might not be a good idea if that costs you matching funds, but not contributing $7k into a retirement account is equivalent to withdrawing $7k (plus a possible penalty) from another retirement account, without the headache of dealing with having to justify a hardship withdrawal or pay the taxes. Of course, it may take several months to get the $7k this way, but perhaps the dental bill can be put on a payment plan. ---
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [May 13, 2026, 7:31pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1630 "2026-05-13T19:31:41Z")
Unfortunately, right now I’m only able to contribute about $2,000 to my 403b each year. Suspending my contributions would take me over three years to raise the $7k. ---
**Author:** ![bobsmom101](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bobsmom101/32/2867_2.png) [@bobsmom101](https://boards.straightdope.com/u/bobsmom101)\ **Post date:** [May 14, 2026, 4:18am UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1631 "2026-05-14T04:18:39Z")
Same here. I bought a few shares of Palantir during a slump several years ago and benefitted from their huge run up. At the peak my holdings amounted to about $50,000. I sold half at a good profit a couple of years ago. But as I read more about them I felt less and less comfortable hanging on to the rest. Last month I put the remaining shares into my directed giving account. It won’t make any difference to Palantir, but I don’t get that icky taste in my mouth when I look at my portfolio now. ---
**Author:** ![bobsmom101](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bobsmom101/32/2867_2.png) [@bobsmom101](https://boards.straightdope.com/u/bobsmom101)\ **Post date:** [May 14, 2026, 4:30am UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1632 "2026-05-14T04:30:37Z")
> [@Velocity](#): > > I think I will have a hard time justifying it as a true emergency, the medical bills are of a dental, not more-urgent nature, the car accident wasn’t a bad wreck, I’m not facing eviction I’m also a volunteer tax preparer and agree with @Railer13 . If I were doing your return I would have no problem declaring your withdrawal as a hardship exempt from the 10% penalty. Dental bills are valid medical expenses and having a working car is essential in most places in the US. $7K is pretty small potatoes as far as these things go and I doubt you would even be challenged. Just make sure you save ALL your medical and car repair/purchase bills for that tax year. ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [May 14, 2026, 4:48am UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1633 "2026-05-14T04:48:34Z")
Let’s switch from talking about one evil company (Palantir) to another: Sandisk. Well, they aren’t really evil, but they are building the materials for AI. I won’t tell you what I’ve bought, but I went into AI adjacent companies a year ago’ish, and they are my star. I have several others. People are making insane amounts of money on these companies (myself to a certain degree) and it feels almost illegal. ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [May 14, 2026, 11:20am UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1634 "2026-05-14T11:20:44Z")
Selling shovels & sturdy pants to the gold rush miners are you? Generally a great way to make money. ---
**Author:** ![DSeid](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dseid/32/20194_2.png) [@DSeid](https://boards.straightdope.com/u/DSeid)\ **Post date:** [May 14, 2026, 12:48pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1635 "2026-05-14T12:48:51Z")
Heh. My best individual performers weren’t bought to be AI adjacent - bought as long view climate change considerations, electric infrastructure and energy efficient climate control - Trane, Eaton, and ABB. But being AI adjacent is why they’ve done so well. Better lucky than smart! ---
**Author:** ![Dag\_Otto](https://avatars.discourse-cdn.com/v4/letter/d/439d5e/32.png) [@Dag\_Otto](https://boards.straightdope.com/u/Dag_Otto)\ **Post date:** [May 14, 2026, 8:38pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1636 "2026-05-14T20:38:23Z")
I hear you. I have a long term holding in an HVAC company that is doing quite well, but a couple of years ago they acquired a company that specializes in data center cooling. Holy cow! I feel like I should be sending a Christmas gift to the management team this year to show my appreciation. ---
**Author:** ![DSeid](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dseid/32/20194_2.png) [@DSeid](https://boards.straightdope.com/u/DSeid)\ **Post date:** [May 21, 2026, 6:30pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1637 "2026-05-21T18:30:16Z")
Read today re annuities and buyer beware: > **[She paid an insurance company $99,000 to generate retirement income for life....](https://apple.news/AFmS_g3jfTLCPHsESiFbwaQ)** > > Risks are mounting in the life insurance industry, and experts are concerned state regulators aren’t protecting policyholders. ---
**Author:** ![xtenkfarpl](https://avatars.discourse-cdn.com/v4/letter/x/c2a13f/32.png) [@xtenkfarpl](https://boards.straightdope.com/u/xtenkfarpl)\ **Post date:** [May 21, 2026, 7:14pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1638 "2026-05-21T19:14:40Z")
> [@Railer13](#): > > On a totally-unrelated note, does anybody here have a opinion on annuities? Sure. Won’t touch them with a bargepole. As far as I can see they almost always have high overheads and hidden costs. You don’t have any control over the underlying assets. And the company offering them may not be sound: you’d have to do as much research on that as you would any stock or ETF. I’ll do my own investing… ---
**Author:** ![Railer13](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/railer13/32/9742_2.png) [@Railer13](https://boards.straightdope.com/u/Railer13)\ **Post date:** [May 21, 2026, 8:15pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1639 "2026-05-21T20:15:03Z")
Thanks for the feedback. I wasn’t planning on purchasing an annuity, but a 3-year 4.7% rate from New York Life didn’t sound all that bad. ---
**Author:** ![Tired\_and\_Cranky](https://avatars.discourse-cdn.com/v4/letter/t/a87d85/32.png) [@Tired\_and\_Cranky](https://boards.straightdope.com/u/Tired_and_Cranky)\ **Post date:** [May 27, 2026, 9:11pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1640 "2026-05-27T21:11:22Z")
The best i can say is that most of the discussion where I work is about fixed income funds. Maybe my impression is wrong. I don’t have statistics. ---
**Author:** ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)\ **Post date:** [May 27, 2026, 9:26pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1641 "2026-05-27T21:26:49Z")
> [@xtenkfarpl](#): > > You don’t have any control over the underlying assets. You don’t control the underlying investments in fixed annuities. The vast majority of variable annuities have an assortment of mutual funds (selections usually look like what your 401k offers). Indexed annuities are tied to an index (like the S&P500, etc.). Your concerns about high overhead and hidden fees remains true regardless (though fixed annuities don’t have fees taken out at withdrawal - it’s all opportunity cost there). ---
**Author:** ![Tride](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tride/32/13907_2.png) [@Tride](https://boards.straightdope.com/u/Tride)\ **Post date:** [May 27, 2026, 11:22pm UTC](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169/1642 "2026-05-27T23:22:03Z")
I just don’t get it. We’re up 3% AFTER spending 10% for the last year. New truck, solar system with batteries, and a shit ton of charitable and political giving. A good outcome, but I don’t understand why. [Previous page](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169.md?page=81) [Next page](https://boards.straightdope.com/t/investment-general-discussion-thread/1015169.md?page=83)