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Re: Why Avoid Long-Term Bonds?

I have been thinking (and discussing here a bit) of rolling a ladder of 30 year treasuries. The idea is that it's extremely long-term while I'm early in my career with small bond allocation, and will automatically reduce the term as I'm approaching retirement. There are two downsides to the plan: 1....
by FNK
Wed May 28, 2014 4:19 pm
 
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 6382

Re: Ever too early to start investing?

Savings bonds are a questionable start. You have to use the weird TreasuryDirect site, and you'll be hit with taxes 30 years from now, probably when your tax rate is highest. Do you do summer jobs? If you do, you can open a Roth IRA account and invest there, tax free. Otherwise, you can open a regul...
by FNK
Wed May 28, 2014 11:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Ever too early to start investing?
Replies: 16
Views: 1204

Re: Cash in Safe Deposit Box..??

cheese_breath wrote:but some workman bulldozing the property to make room for a shopping mall forty years from now will be in for a nice surprise.

...and will totally be able to afford a round of beer with his crew!
by FNK
Wed May 28, 2014 11:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Cash in Safe Deposit Box..??
Replies: 52
Views: 2917

Re: Income Limit Question(s)

You're certainly out of deductibility limits for Trad IRA too.

401(k) plans are all weird, but I think this is the first time I hear of one that has Roth but no Trad. Can you go yell at HR about that?
by FNK
Fri May 16, 2014 2:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Income Limit Question(s)
Replies: 12
Views: 930

Re: Income Limit Question(s)

The standard advice is to contribute to traditional 401(k), which will bring down your gross income and may open up some Roth space.

Don't forget that you'll be paying the penalty every year until you pull the contributions out. Don't shoot yourself in the foot.
by FNK
Thu May 15, 2014 11:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Income Limit Question(s)
Replies: 12
Views: 930

Re: Cashing child's I bonds

Apologies - Child OR Adult.

Pub 550 says "If a U.S. savings bond is issued in
the names of co-owners, interest on the
bond is generally taxable to the co-owner who
bought the bond.
by FNK
Thu May 15, 2014 10:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cashing child's I bonds
Replies: 3
Views: 627

Cashing child's I bonds

Seeking confirmation that I'm correctly reading the sweet and clear docs from the govt. If there are electronic I bonds registered as Child WITH Adult, with cumulative interest not more than $1000, either child or adult may cash the bonds; an interest statement in child's name will arrive, and can b...
by FNK
Wed May 14, 2014 11:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cashing child's I bonds
Replies: 3
Views: 627

Re: 401(k) Loan make sense?

placeholder wrote:I'd probably do that - 30% interest why not?!

Because it's strictly worse than tax-efficient taxable investing?

The 30% comes out of your paycheck after-tax, and is taxed again on withdrawal.
by FNK
Tue May 06, 2014 9:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) Loan make sense?
Replies: 31
Views: 3683

Re: Tax implications of renting out my house

Ans to why I would want to do this - We are thinking of moving to another school district. I am a little scared to buy new property without selling the first. Best choice before me (from a risk point of view) is to rent a new property in the new neighbourhood and let out my present one. As you can ...
by FNK
Fri May 02, 2014 8:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax implications of renting out my house
Replies: 13
Views: 1288

Re: 401(k) Loan make sense?

But the tax deductibility is to lower the expense/interest paid, so Interest * (1 - Current Tax Rate) is the effective expense. The 401k expenses are Interest * Future Tax Rate (for the double-taxed interest). You might want to invest the money in the 401(k) into something that earns money, like st...
by FNK
Fri May 02, 2014 8:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) Loan make sense?
Replies: 31
Views: 3683

Re: 401(k) Loan make sense?

While I understand the math of a 2.49% Home Equity Loan having expected positive return after taxes / inflation, total debt level of > 2x income is higher than is personally comfortable That's what I don't get - you're replacing one loan with another and thinking it decreases your debt level? Sure,...
by FNK
Wed Apr 30, 2014 12:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) Loan make sense?
Replies: 31
Views: 3683

Re: eMail mailing list solutions for a group of ~200?

I've been using Google Groups for this - very reliable.
by FNK
Wed Apr 30, 2014 9:28 am
 
Forum: Personal Consumer Issues
Topic: eMail mailing list solutions for a group of ~200?
Replies: 12
Views: 800

Re: Tax implications of renting out my house

About right; you also get to write off expenses (insurance!) and delay taxes on depreciation.

However, it's a massive headache, and you didn't make a case for why you would want to do this to yourself.
by FNK
Wed Apr 30, 2014 9:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax implications of renting out my house
Replies: 13
Views: 1288

Re: Anyone have over 200 individual positions in their accou

Runalong wrote:both the stocks I've sold recently and the stocks on my wish-list (meet my criteria but I lack cash to buy them) have been slightly outperforming those I hold

Sounds like the market is telling you something.
by FNK
Wed Apr 30, 2014 9:20 am
 
Forum: Investing - Theory, News & General
Topic: Anyone have over 200 individual positions in their accounts?
Replies: 31
Views: 6719

Re: Social security at 62 vs 70

ginmqi wrote:Sorry but my time during my golden/retired years are worth way way more than that.

Sounds like you think not collecting SS = not retiring. That's not what we're talking about.

In your case, taxation of SS is an even bigger reason to delay and spend down/Rothify your portfolio between 60 and 70.
by FNK
Wed Apr 30, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: Social security at 62 vs 70
Replies: 76
Views: 5731

Re: Social security at 62 vs 70

My approach is Game Theory: You choose "you claim early" or "you claim late" (62 and 70). God chooses "you die early" or "you die late" (before and after the 84 life expectancy). Both choices are continuous, but in-between values give in-between results, so ex...
by FNK
Wed Apr 30, 2014 12:30 am
 
Forum: Investing - Theory, News & General
Topic: Social security at 62 vs 70
Replies: 76
Views: 5731

Re: 401(k) Loan make sense?

I use 401(k) loans with less fear than most bogleheads... but frankly, your plan is "meh". The interest rate on the loan is indeed mostly a red herring because you pay it to yourself. The lost earning opportunity is the real cost. Also, the avoided risk is a real benefit. The HEL is tax de...
by FNK
Tue Apr 29, 2014 10:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) Loan make sense?
Replies: 31
Views: 3683

Re: using etf to avoid citibank checking fees?

I have Citigold because I get it for free with my mortgage. Now that the mortgage is below $250K, I'm keeping a part of my EF in Citi to keep the account for a while... but I'm not locking up $50K. I considered moving some of my investments there, but got scared by thw Morgan Stanley fees. The perks...
by FNK
Tue Apr 29, 2014 10:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: using etf to avoid citibank checking fees?
Replies: 7
Views: 1154

Re: What do you think about this scenario?

You're giving up potential gains on the 401(k) investments. Coupled with fees and the value of your time, it's unlikely to be a very valuable move.
by FNK
Thu Apr 24, 2014 8:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: What do you think about this scenario?
Replies: 3
Views: 439

Re: High Umbrella Limits - A waste

I'm actually surprised that there are no policies that insure up to an unlimited limit. Presumably the likelihood of a 100 M judgment is small enough that such insurance would still be relatively affordable. That would take the actuaries' job from relatively straightforward statistical arithmetic t...
by FNK
Thu Apr 24, 2014 12:41 am
 
Forum: Personal Finance (Not Investing)
Topic: High Umbrella Limits - A waste
Replies: 77
Views: 7717

Re: Why bonds??

Now look at the S+P500 and see that we just (in the last couple of months) passed the old all time high from 2000. So, in the last 14 years stocks have not given you ANY return on investment (buy and hold, ignore dividends for a second) - thats a far cry form the hoped 6 % per year. Bonds at the sa...
by FNK
Fri Feb 28, 2014 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why bonds??
Replies: 25
Views: 2343

Re: How likely the feds ever tax Roth IRAs?

There already are benefit programs that look at retirement plan balances, including Roth. It's not exactly taxation, because it's rare to worry about taxes and social nets at the same time, but it does mean that Roth is not free of everything forever.
by FNK
Fri Feb 28, 2014 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: How likely the feds ever tax Roth IRAs?
Replies: 12
Views: 1087

Re: Rental Property Analysis

Frankly speaking, annual turnover and 3-month vacancies is an extremely conservative expectation. At least, a standard lease is 1 year, and anything less comes with a premium. Unless... shudder... you're thinking of renting to students. In which case, I withdraw my endorsement. You're not a dormitor...
by FNK
Fri Feb 28, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rental Property Analysis
Replies: 17
Views: 1301

Re: Small-cap (over)valuations: should we stop tilting?

I totally am timing the market. At my last rebalancing round, I adjusted my AA by transferring 2% of the portfolio from small caps to total market. I am not willing to make larger moves.
by FNK
Fri Feb 28, 2014 2:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Small-cap (over)valuations: should we stop tilting?
Replies: 11
Views: 902

Re: Why bonds??

While your portfolio is smallish (say, less than 3-5 years of expenses), and you have a lot of earning years ahead of you, you can skip bonds. But you don't want to be caught with your pants down as you approach retirement. So decide on a glide path and implement it.
by FNK
Fri Feb 28, 2014 1:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why bonds??
Replies: 25
Views: 2343

Re: Rental Property Analysis

I think good tenants (people who have more money than time) don't trawl craigslist but go to agents.

Also, the agent does not rent the place, you do. For small operations, you can deny anybody you don't like.
by FNK
Fri Feb 28, 2014 11:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Rental Property Analysis
Replies: 17
Views: 1301

Re: Bitcoin price plunges

Virtual currencies? Assumes that all away. Not even the protection Paypal offers us. So far bitcoin has been working on a better dollar bill. It was stupid for people to keep their bills in a cardboard box in a back alley, but that's not the bill's fault. Ripple is working on a better virtual excha...
by FNK
Fri Feb 28, 2014 11:06 am
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

http://i.imgur.com/RJpSpvt.gif

[Embedded image to distracting animated GIF image removed by admin LadyGeek. I left the link.]
by FNK
Fri Feb 28, 2014 10:50 am
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

Regarding mt gox, I thought there were two parts to a bitcoin. The code behind the coin plus a password. Is that true? If so, how can they be stolen if you don't have a password? Any good sites to explain this? As I understand it so far, it's primarily Mt. Gox itself being stupid and secondarily a ...
by FNK
Fri Feb 28, 2014 10:40 am
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

Yes it can, but it has to be significantly better. They just need to be more appealing than Bitcoin for a host of reasons (promise of greater riches?, better security?, easier for laymen to use?, no mining?, faster transaction time?). Uh, yes, that counts as significantly better. One of the big iss...
by FNK
Fri Feb 28, 2014 10:34 am
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Rental Property Analysis

The quality of tenants I got from craigslist was depressingly worse than via a realtor. Totally worth the fee.
by FNK
Fri Feb 28, 2014 10:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Rental Property Analysis
Replies: 17
Views: 1301

Re: Rental Property Analysis

$9,000-($2,300x3)=$2,100. Hey, you're subtracting cash flow from net income. The $2300 pays $500 back to you in equity, so your net income in that case is $3600. The numbers look good. If you're up for the job, why not. Try to refinance into a better rate while you're there. Also, look into various...
by FNK
Fri Feb 28, 2014 12:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Rental Property Analysis
Replies: 17
Views: 1301

Re: Bitcoin price plunges

Random Musings wrote:So, if there are many different virtual currencies out there, can a better mousetrap render certain ones to the dump heap?

Yes it can, but it has to be significantly better.
by FNK
Fri Feb 28, 2014 12:12 am
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

Since the algorithms underpin a lot of mainstream economy, that will be scary. Not really sure how the mainstream economy is reliant on the same algorithms. SHA? ECDSA? They are popular on that internet thingy. In any event, while the chances of someone being able to successfully "counterfeit&...
by FNK
Thu Feb 27, 2014 10:20 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

There's nothing to prevent a future crypto-currency from either convincing a crowd of miners or from being "10x better", whatever that means. ...except, you know, being convincing. That doesn't by itself mean that bitcoin is or will be a failure; it does mean that the hard limit on the nu...
by FNK
Thu Feb 27, 2014 2:21 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

Alex Frakt wrote:
FNK wrote:Sigh.

May I suggest that we ban bitcoin discussions at this forum?

If you'll admit that they are not investment products :-)

Admitted. Done?
by FNK
Thu Feb 27, 2014 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Should I Get Cheap Personal Loan & Invest It?

Here's an obvious way to capture the tax sheltered space without going into debt: you say your car and cash are $200K. Just dump the cash into your IRAs and you're good to go.
by FNK
Thu Feb 27, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Get Cheap Personal Loan & Invest It?
Replies: 72
Views: 3911

Re: Bitcoin price plunges

Sigh. May I suggest that we ban bitcoin discussions at this forum? This thread sounds exactly like "Fed cabal evil fractional reserve banking". Bitcoin has huge problems, but not the ones we're discussing. Yes but if bit coin is hacked how does the investor recover the loss? The whole prem...
by FNK
Wed Feb 26, 2014 5:20 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

and EXACTLY how do you know the coins in your wallet were not "stolen" ? As in how I know they still "are" in my wallet? Somebody will need to crack my public key to do that. Or as in how I know they were not stolen when I acquired them? Well, they are fungible in the wallets, s...
by FNK
Wed Feb 26, 2014 12:55 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Bitcoin price plunges

Actually it more like the depository receipts for gold. If MT gox reports are correct 6% of the bitcoin out there are "stolen". Just watch as holders of hot bitcoins try to dump them on the suckers. In Mt. Gox, yes. In your own wallet, exactly like gold, including being able to toss it in...
by FNK
Wed Feb 26, 2014 11:00 am
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Inheriting money, then leaving it to your kids

Gnirk wrote:
cheese_breath wrote:I would just consider it part of my total wealth. When I pass the kids will get whatever's left whether it's more or less than the inheritance.

Same here.

And here. Although we tend to skip generations in my family.
by FNK
Tue Feb 25, 2014 8:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheriting money, then leaving it to your kids
Replies: 23
Views: 2062

Re: Should I Get Cheap Personal Loan & Invest It?

So you sat out during a huge bull run, and now want to get back in with leverage?

Sounds like you're on the right road about passive investments, but still need to get the desire for rash moves out of your system. ;-)
by FNK
Tue Feb 25, 2014 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Get Cheap Personal Loan & Invest It?
Replies: 72
Views: 3911

Re: Bitcoin price plunges

I'm getting a little weary of the "PayPal coin" or "Google coin" ideas. A huge premise of bitcoin is the absence of counterparty risk. If you keep your bitcoins in your wallet, rather than in Mt. Gox's wallet, you're safe of Mt. Gox's shenanigans (as far as your bitcoin balance i...
by FNK
Tue Feb 25, 2014 8:35 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Reinvesting equity in existing rental property

You'll need to confer with a professional before you hurt yourself. Having said that, I believe it's possible, although maybe not desirable. You can take out a home equity loan secured by the place and use that to buy a different place. Since all your rentals are effectively one business, it doesn't...
by FNK
Tue Feb 25, 2014 7:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvesting equity in existing rental property
Replies: 3
Views: 199

Re: Bitcoin price plunges

The echo chamber is deafening.

Bitcoin is a nifty experiment. It's having hard times at the moment, but the verdict is far from final.

Wait and see.
by FNK
Tue Feb 25, 2014 4:43 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin price plunges
Replies: 246
Views: 20105

Re: Should I Get Cheap Personal Loan & Invest It?

The favorite response to that question around here is "The market can stay irrational longer than you can stay solvent."
by FNK
Tue Feb 25, 2014 4:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Get Cheap Personal Loan & Invest It?
Replies: 72
Views: 3911

Re: Should I Get Cheap Personal Loan & Invest It?

It wouldn't make me any less risk tolerant. I deal with high amounts of risk/volatility daily. I don't know what you mean by not having enough going on in my life already? I didn't think setting up some IRAs and putting them in vanguard index funds or a target fund would be too much trouble. I'm no...
by FNK
Tue Feb 25, 2014 3:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Get Cheap Personal Loan & Invest It?
Replies: 72
Views: 3911

Re: Should I Get Cheap Personal Loan & Invest It?

Agreed, bad idea. You hope that investment gains will outstrip the fixed expense. It's entirely possible that investment losses will add to the expense instead. I think you will be less risk tolerant at that point. Do you not have enough going on in your life already? Just invest whatever you would'...
by FNK
Tue Feb 25, 2014 3:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Get Cheap Personal Loan & Invest It?
Replies: 72
Views: 3911

Re: Do you tilt? If so, how?

I have to make it complicated, so here it is: 50% of my portfolio is total stock markets (50/50 US/Intl); age-10 in bonds; the rest is small caps (again 50/50). The idea is that I'll hold a somewhat steady amount of small caps for a few decades, but will get rid of the extra risk and complexity arou...
by FNK
Mon Feb 24, 2014 12:26 pm
 
Forum: Investing - Theory, News & General
Topic: Do you tilt? If so, how?
Replies: 44
Views: 4407
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