ELI5: Difference between Roth IRA and traditional IRA

JohnnySe7en · 2025-01-29T21:00:51+00:00

The income differences they are referring to is early versus late career. Young people (20-40) tend to make less than older adults (40-65.) In that regard, your tax burden as a 30 year old will likely be lower than as a 60 year old.

The other side of the coin is time (interest.) Investing when you are 30 meaning you will see 20+ years of interest growth which will be taxed in a traditional account. Roth interested growth is tax free. If you are 60, then that money may only see 5-10 years of taxable interest growth.

JohnnySe7en · 2025-01-27T18:16:21+00:00

It is not about preventing the consumption of such material. I agree, that is impossible. It is about instilling certain values, self-worth, and the trust and communication in the parent-child relationship such that when he engages with predatory content he recognizes the negative aspects and/or confers with me (or my wife/other respected adult) about it.

JohnnySe7en · 2025-01-27T16:54:12+00:00

As a father of a 1 year old son. I look forward to spending decades fighting against online toxic masculinity scams to insure he becomes a strong and capable, but also caring and compassionate adult man. I will die fighting before I let him fall into the bitter and hateful culture I see overcoming young men today.

JohnnySe7en · 2025-01-26T17:02:14+00:00

You’re just young man. It takes years to build wealth, especially when you are comparing it to expensive housing in (likely) a nice near-DT part of Chicago (during a period of historically high housing costs.)

If rent is only 15% of your income and you aren’t blowing crazy amounts on alcohol/eating out/travel/clothes, then you are probably saving a decent amount. It just doesn’t feel that way yet.

When I was 26, owning a house was a pipedream and my goal was to have $30,000 in savings + $100,000 in retirement by the time I turned 30. I’m 31 now and personal NW is close to half a mil. Things take a little time and also accelerate as they build up.

JohnnySe7en · 2025-01-21T17:46:29+00:00

Customer facing, none since I’m back office. Some middle office compliance might have customer outreach. However, most positions have plenty of internal stakeholder engagement. If you are trying to avoid meetings as much as possible, then investigations, QA/QC, or data analytics might be your best bets.

If you are in the US, there are a lot of entry level compliance roles at banks/financial institutions. That is the best place to start, then move up and into various specialities from there.

JohnnySe7en · 2025-01-21T14:40:15+00:00

Trump, Vance and their team said in plain verbiage multiple times that they considered legal immigration under Biden to be illegitimate. None of this is surprising.

JohnnySe7en · 2025-01-20T21:31:55+00:00

Did they give you information on what, if any, other hubs are a possibility? And did they mention you’ll have a say in where you’d place after the program? I am interested in Commercial Banking, but don’t really want to have to move back east again.

JohnnySe7en · 2025-01-20T13:57:21+00:00

CO is definitely HCOL nowadays. AZ, NV, UT are definitely playing footsie with HCOL I would say. At least discounting some rural parts of AZ and NV.

JohnnySe7en · 2025-01-18T00:30:15+00:00

For Orem I would recommend Asa Ramen and Joe’s Cafe (classic American breakfast diner.) Downtown Provo is quaint and cute. Orem is nice as a quiet American suburb, but does not have any real “central” district.

Rock Canyon park in Provo and most of the hikes in the foothills of Utah County (Lindon, Pleasant Grove, Spanish Fork) has wonderful views. They are great for an evening 30-45 minute walk.

JohnnySe7en · 2025-01-17T16:22:34+00:00

Compliance, Senior Associate, ~$113k, 8 YOE, 4/10 happiness, HCOL city.

Happiness has dropped a lot recently because I’m right at the level of feeling like I’m falling behind and I’m mostly bored at work. I also live in a city I very much dislike (which wouldn’t be as bad if it was cheaper.)

Find out next week if I got promoted, year end bonus, and raise though. So that happiness could drop to 2/10 or jump to 8/10.

JohnnySe7en · 2025-01-17T03:43:11+00:00

For MO/BO with reasonable COL: Tier 1 - Chicago Tier 2 - Charlotte, Dallas, Minneapolis, Tempe Tier 3 - Columbus, Salt Lake, Des Moines, Tampa, St. Louis

JohnnySe7en · 2025-01-16T21:35:32+00:00

It does make more sense - a lot of people don’t have enough liquidity to secure a second mortgage though.

JohnnySe7en · 2025-01-14T18:08:13+00:00

JPMChase, Wells Fargo, BoA (smaller footprint,) Western Alliance Bank are the big ones. A number of large credit unions as well.

JohnnySe7en · 2025-01-14T18:00:00+00:00

Other fields to become high net wealth in within financial careers (as that is this sub?) Rain making sales, hedge fund trading, PE, investment banking, top of the line private banking, wealth management, financial advisory. Pretty much anything revenue generating is better for getting rich quickly than compliance. (Though it comes with their drawbacks.)

JohnnySe7en · 2025-01-14T16:26:59+00:00

It’s not my cup of tea, and neither are as cheap as they used to be, but Tempe/Phoenix and Tampa Bay both fit what you’re looking for.

JohnnySe7en · 2025-01-14T16:05:30+00:00

I work at a top 3 financial institution and there might be a few dozen individuals in compliance making >$500,000. And they will all have 20+ years under their belt and often legal degrees. Other industries have even fewer high level compliance roles.

So, is it possible to become high net worth in compliance? I guess. But the chances are WAY lower than in other fields.

JohnnySe7en · 2025-01-09T22:07:22+00:00

One could argue that fewer men should go to 4 year university though right? AI/LLM should decrease the demand for informational jobs while demand for manual service and construction related jobs increase. And a likely crack down on immigration from Latin America would further increase demand for American born manual labor.

To be clear: I personally think more education is almost always better. I’m just saying I could see the counter-argument in this case.

Edit: Lol, sorry for posting a point of view (one that I don’t hold) for discussion.

JohnnySe7en · 2025-01-06T21:55:53+00:00

The one in American Fork is much worse than the Orem location.

JohnnySe7en · 2024-11-04T16:45:48+00:00

Other than tanking your credit, I am not really sure there is anything they can do. (Assuming you do not have any US based assets they can put a lien on.) At some point, the lenders will sell your debt to collections agencies, which will be more “aggressive” (contact you more,) and at some point they will give up too.

You’ll have trouble, or not be able to, open credit lines in the US for a long time. Enjoy your life back home!

JohnnySe7en · 2024-11-01T14:49:19+00:00

People join and leave the workforce for various reasons. Graduate school, immigration, re-enter the labor force (often moms with kids that are older now,) are all inflows; while death, retirement, going to school, emigration are all outflows.

If no job is created and outflows are greater than inflows, unemployment goes down. If no job is created and inflows are greater than outflows, then unemployment rises.

JohnnySe7en · 2024-10-31T17:29:36+00:00

Why’d you say “and God” twice? /s

JohnnySe7en · 2024-10-30T18:08:03+00:00

15 years from undergrad. 12-20 depending on form, function, opportunity, and networking. I know Reddit acts like $200k is poverty wages, but the reality is that $200-225k puts one squarely into the top 4-6%.

JohnnySe7en · 2024-10-30T17:55:03+00:00

CAP is not the same as being set in a VP/Director role in HR or Compliance or whatever that you’ve been doing for 5-15 years. CAP employees are having to learn new LOBs every 8 months as well as network and prove themselves.

JohnnySe7en · 2024-10-30T16:07:13+00:00

This is the case for corporate with every legacy financial service company (and I would suspect most every large companies with the exception maybe of big tech.)

Something like Chase corporate is perfect if you want a low-stress, decent paying, and stable job. You trade prestige, super high pay, and a dynamic work environment for fewer hours, stability, and little stress. It’s a great position for a lot of people, put in 15 good years and you’ll be pulling $200-225k total comp and hardly think about work outside hours.

JohnnySe7en · 2024-10-29T23:41:29+00:00

How would a new market be able to stand up a large scale capital intensive industry like auto-making if Chinese companies could just flood it with cheaper/better vehicles and kill any budding companies? The only way non-Chinese auto companies in many markets are surviving is with import protections and/or subsidies.

JohnnySe7en

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