Author Topic: What is my coworker talking about? (investing puzzle)  (Read 1472 times)

mustachianteacher

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What is my coworker talking about? (investing puzzle)
« on: November 04, 2016, 05:55:12 PM »
I was trying to answer some questions a coworker had about our retirement benefits, and I quickly realized she's more clueless than she lets on -- to the point that she could not even tell me whether or not she was saving in a taxable or pretax account. Our conversation went something like this:

Me: (having just explained that we have a 403b and a 457b option, and they're both mediocre, but better than nothing)
Her: I do invest, but not through work. I just bought Disney stock, and that's been kind of fun!
Me: If it's not through work, is it in an IRA? That would mean you can only save $6,000 a year. The 403b and 457 will let you save $18K a year each.
Her: It's a Fidelity account.
Me: What kind of account?
Her: Um, just Fidelity? It's nice, though, because I get a little deposit every month. Not much, but it should be more over time. It's just fun money. (points to earrings) Disney went up last month.
Me: Dividends? You should reinvest those. Is it a taxable account?
Her: I told you, it's a Fidelity. Maybe an IRA? I don't know.
Me: I gotta go.

I really did need to go, but "It's a Fidelity" makes me think that she really doesn't know much. But, what would she be getting every month? She made it sound like money is getting deposited into her checking account every month, which seems odd.

MDM

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Re: What is my coworker talking about? (investing puzzle)
« Reply #1 on: November 04, 2016, 08:30:59 PM »
Perhaps she has payroll deduction into her Fidelity account.

She is exactly the target audience for the 'Basic Terms' tab in the case study spreadsheet.

As noted there, it is a "Chart of some basic investing terms.  Target audience: someone who asks "is that a Roth or a Vanguard?".  We were all there once…." 

Roth or Vanguard...Fidelity or IRA...?  ;)

With This Herring

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Re: What is my coworker talking about? (investing puzzle)
« Reply #2 on: November 05, 2016, 09:57:54 AM »
*snip*
She made it sound like money is getting deposited into her checking account every month, which seems odd.

I had a few clients who held shares of a company directly or through a broker as a fun thing; usually they had their kids hold a little of something interesting, like Disney.  They would receive a check every quarter or six months directly from Disney and would take it to the bank to cash it.  Sometimes they would accidentally send us the uncashed check still attached to the year-end 1099-DIV, which I always found funny, though it was a hassle to return it.  (Note on front of return envelope:  "You accidentally sent us your Disney dividend check for $1.87!  We have returned it with your tax info in this envelope.  Please cash it ASAP.")  I would guess that her account is not an IRA, but you could ask to see her Fidelity statement if she wants help.