Silicon Valley Bank collapses after failing to raise capital

[slug_maine]

Look at the right side of that chart, since 2008 the economy has been on life support.

 

[SteveGangi]

It is predictable that this would be his response. I'm confident that this will play out how I expect over the next few years.

I guess we'll see.

 

[SteveGangi]

Silicon Valley Bank donated more than $73MILLION to Black Lives Matter

Silicon Valley Bank donated over $73 million to Black Lives Matter-related social groups in the years before it collapsed, while Signature Bank donated a total of $850,000.

www.dailymail.co.uk

That's crazy.

 

[SteveGangi]

Let them eat cake.

We didn't get any damn cake.

 

[SteveC]

I guess I thought all Roth plans were after tax.

Correct. All Roth's are after tax.

Whether it's a Roth 401k, a Roth 403whatever, or just a Roth IRA, you have to pay taxes on all the money that you put into them (hence after-tax)... for the privilege of enjoying tax free withdrawals of that money, along with any money that earns (interest, dividends, capital gains, etc.).

Eligibility for that varies... read on.

"If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $144,000 for tax year 2022 and $153,000 for tax year 2023 to contribute to a Roth IRA, and if you're married and file jointly, your MAGI must be under $214,000 for tax year 2022 and $228,000 for tax year 2023."

Is this why you state that is has to be an after tax IRA that you convert to a Roth IRA?

Exactly.

If your income falls above those parameters, you cannot contribute to a Roth IRA. But, there is a workaround - the "Backdoor Roth Conversion".

You can always contribute to a regular IRA, and then convert those funds into a Roth IRA.

It's simple and not complicated. If you have a "guy" they will do it for you. If you do not, just do it yourself.

Read more here:

Backdoor Roth IRA | Is an IRA conversion right for you | Fidelity

A backdoor Roth IRA strategy may benefit high-income earners.

www.fidelity.com

 

[SteveC]

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[MikeyTheCat]

View attachment 677778

I remember when at that same time we were offered a balloon mortgage that started at a tick north of 9%. And we thought we hit the jackpot!

 

[CB91710]

Makes sense. I work for the county so I don't actually have a traditional 401k. It's split between a 401A and a 457B since public employees can't just have combined accounts for some reason. I think Mission Square mostly does public employee accounts.

Just looked them up.
Yep.
ICMA-RC plans.
On the one hand... it's free money. The city will match my contribution up to $50, so it's a free $50/mo.
On the other hand, it's yet another source of taxable income after I retire... I'm already dealing with my wife's SSI and paltry pension from Ford Aerospace (seriously, it's barely enough to qualify for a 1099)... and even if I contribute the max, I'll never amass more than $25k in the account, and the "free money" would only be $6,000

 

[CB91710]

You each contribute AFTER TAX dollars to an IRA ($6,500/ea I think is still the annual max).

Two things that don't make sense...
Max contribution of after-tax income? Is that because the capital gains on the account are not taxed? Why else would they care how much you squirrel away?
Penalties for delaying signing up for Medicare.

Still not sure how that one works and the whole thing is such a clusterfuck of scammers, salesmen, and misinformation... I don't understand any of it.
Wife is 67 and fully covered by my insurance. I guess she has a Medicare card... not sure how it works.

 

[SteveGangi]

I remember when at that same time we were offered a balloon mortgage that started at a tick north of 9%. And we thought we hit the jackpot!

They used to REALLY push those. I had to fight with them.
I finally said "fixed or nothing I hate surprises".

Balloons are just a trap.

 

[MikeyTheCat]

They used to REALLY push those. I had to fight with them.
I finally said "fixed or nothing I hate surprises".

Balloons are just a trap.

Yup, and glad we dodged that bullet.

 

[slug_maine]

View attachment 677778

Bought my first around the same time. Got 12% owner financing and thought it was a deal. Refinanced when the rates came back down somewhere in the 6% neighborhood. Payed it off a few years later, I hate debt.

 

[redking]

Silicon Valley Bank donated more than $73MILLION to Black Lives Matter

Silicon Valley Bank donated over $73 million to Black Lives Matter-related social groups in the years before it collapsed, while Signature Bank donated a total of $850,000.

www.dailymail.co.uk

Correction - they gave $73 Million of their depositors and shareholders money to an organization proven to be a fraud.

 

[SteveC]

Two things that don't make sense...
Max contribution of after-tax income? Is that because the capital gains on the account are not taxed? Why else would they care how much you squirrel away?
Penalties for delaying signing up for Medicare.

Still not sure how that one works and the whole thing is such a clusterfuck of scammers, salesmen, and misinformation... I don't understand any of it.
Wife is 67 and fully covered by my insurance. I guess she has a Medicare card... not sure how it works.

Regardless of how much money you make, or what other retirement accounts you may have, you can still contribute $6,500 each year to an IRA. There are income limits, that if you exceed them, you cannot contribute directly to a ROTH IRA, however.

That $6,500 is after-tax income, because it's like you went to your bank and withdrew $6,500 from your account (assuming your bank didn't go tits up - LOL) and then drove to your broker and deposited that money in your IRA.

That money can (at retirement) be taken out, and you will not owe taxes on it, because you already paid the tax on it, before you deposited it in your IRA.

But, and it's a HUGE but... any gains from that money will be taxable as 'income in your bracket' at the time you withdraw it.

Here's the good part...

If you convert that IRA (via the backdoor conversion process) to a ROTH IRA, every penny that you withdraw at retirement is not subject to any tax. Both the initial $6,500 and any gains earned on that are tax free withdrawls.

You do this every year. You have your wife do this every year.

Sit back and accumulate tax free retirement income.


Not sure what you are asking about Medicare...

But, yes. Generally, you need to sign up for Medicare at age 65, or when you do you will be penalized with higher premiums for life. There are exceptions. See below.

Working past 65 | Medicare

www.medicare.gov

 

[TheX]

View attachment 677778

I was lucky at 14% fixed.

 

[pnuggett]

Yea, cause the fuckers pissed away all their free money, living like tomorrow would never come, while driving inflation up for the rest of us with their spending frenzy.

Yep, lock up the fuckers for two years, shower them with free money, let them out and surprise......they go into debt with irresponsible spending.

Irresponsible spending and debt. How and where did all that free money come from?
It came from an irresponsible spender that has been on an incredible spending frenzy with money they don't have with a debt that makes the 'fuckers' debt look like a piss in the ocean. Our good old government.

Blame the fuckers for inflation. Ha!!

I seem to remember after 911 the 'fuckers' being blamed for an economy that was in a funk for not spending enough. They were encouraged to get off their asses and get out and spend money.

Damn fuckers. Always fucking things up.

 

[SteveGangi]

If people don't spend (or waste) enough, recession.
If they spend enough (or too much) inflation.
If they don't do either, stagflation.

Meanwhile the Big Boys make bank and fuck ALL the rest of us.
It's rigged and not for us.

 

[disaffected]

I will make a bet right now with anyone. My money says that the execs at SVB will be charged with no crimes related to the failure of the bank.

 

[SteveC]

I will make a bet right now with anyone. My money says that the execs at SVB will be charged with no crimes related to the failure of the bank.

Probably not. Incompetence and stupidity are not crimes..

They should be, though!

 

[pnuggett]

I will make a bet right now with anyone. My money says that the execs at SVB will be charged with no crimes related to the failure of the bank.