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by Ketawa
Thu May 21, 2015 12:33 pm
Forum: Investing - Theory, News & General
Topic: Obtaining Exposure to Quality / Profitability Factor
Replies: 44
Views: 1911

Re: Obtaining Exposure to Quality / Profitability Factor

FWIW, by my back of the hand estimate, QSMLX has done almost exactly what I would hope in getting factor exposure. 4-factor regression using Fama-French factors Mkt = 1.05 SMB= 0.85 HML = 0.40 Mom = 0.07 Annual Alpha = 0.52% I have never been convinced by the Frazzini-Pedersen factors since they gen...
by Ketawa
Thu May 21, 2015 11:03 am
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

Two comments. The mortgages are stated as being for investment properties, therefore the interest on these mortgages would be tax deductible, but the interest on the 401(k) loan would not be. I do note that a high income person cannot deduct losses on passive Real Estate, but these losses, if any, ...
by Ketawa
Thu May 21, 2015 9:30 am
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

Kosmo wrote:Those earnings will be taxed at the current marginal rate, not future rate.


For this reason, Rtax is after-tax earnings in the taxable account. If it would help to make it more explicit, someone could separate Rtax into two separate terms to make it clear that both tax rates matter in the analysis.
by Ketawa
Thu May 21, 2015 8:53 am
Forum: Personal Consumer Issues
Topic: Being an Uber driver
Replies: 15
Views: 2504

Re: Being an Uber driver

I wouldn't buy a new vehicle. For now, consider driving under uberXL at the same time as uberX (I think this is possible) for the higher rates. Maybe being 100% uberXL will make sense. IDK.
by Ketawa
Thu May 21, 2015 8:48 am
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

Let's say the loan interest is $1000. When withdrawn in retirement, with a 25% tax rate, you'll pay $250 in taxes and get $750 to spend. But if your tax rate during the repayment phase is 33%, you'll need to earn $1493 to pay that $1000 in interest. So are the additional taxes paid the $250 or the ...
by Ketawa
Thu May 21, 2015 8:23 am
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

For a simple example of why T should be the marginal tax rate in retirement on the 401k loan proceeds, consider a hypothetical where you have a 401k that is 100% Roth and 100% Roth makes sense in the future for you. Your marginal tax rate now is 20%. You can invest in a fixed income investment makin...
by Ketawa
Thu May 21, 2015 7:41 am
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

Then compare two values. Rtax - Rtsp * (1 - T) L * T Why use your retirement marginal tax rate in L*T? You have to pay taxes in retirement on the final distribution of that amount anyways at a rate of T. But the additional taxes you have to pay now during the repayment of the loan are at your curre...
by Ketawa
Wed May 20, 2015 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

Some actual numbers from a couple of my loans. Rtax = 1.99% (auto loan) Rtsp = 2.00% (G fund rate) L = 1.625% (existing TSP loan rate) T = 18% (25% estimate of my marginal tax rate in retirement, loan was disbursed as 73% Traditional/27% Roth) Rtax - Rtsp * (1 - T) = 0.36% L * T = 0.30% Result: take...
by Ketawa
Wed May 20, 2015 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: The exact math behind using 401k loan to pay down debt
Replies: 14
Views: 999

Re: The exact math behind using 401k loan to pay down debt

I believe this is the definitive post on calculating whether a 401k loan to either invest in taxable or prepay debt in taxable (functionally the same thing): http://www.bogleheads.org/forum/viewtopic.php?f=10&t=109128#p1589509 . So much so that I spent a long time studying it and adapting it int...
by Ketawa
Wed May 20, 2015 3:40 pm
Forum: Personal Consumer Issues
Topic: LTE Coming to More Verizon MVNOs Soon
Replies: 8
Views: 685

Re: LTE Coming to More Verizon MVNOs Soon

Right now, my service is $45/month for 5 GB at LTE speeds on AT&T through Straight Talk. I would consider a Verizon MVNO if they offered LTE service at a price and data cap comparable to Straight Talk. The coverage is significantly better and it would be worth a small amount to me extra to have ...
by Ketawa
Wed May 20, 2015 9:48 am
Forum: Investing - Theory, News & General
Topic: Obtaining Exposure to Quality / Profitability Factor
Replies: 44
Views: 1911

Re: Obtaining Exposure to Quality / Profitability Factor

Ketawa - I think our portfolios are very similar. I lean heavily toward AQR with about a third Vanguard (S&P, Total Int'l, Total Bond, and some VSS) thrown in. I looked into those iShares Multifactor ETFs and was wondering what the heck is going one since it looks like they are not (all) tradin...
by Ketawa
Tue May 19, 2015 10:10 pm
Forum: Investing - Theory, News & General
Topic: Obtaining Exposure to Quality / Profitability Factor
Replies: 44
Views: 1911

Re: Obtaining Exposure to Quality / Profitability Factor

iShares has opened some new ETFs based on MSCI multi-factor indexes that would have exposure to profitability. They were discussed in this thread . LRGF, SMLF, INTF, ISCF, ACWF. All are currently around $2-3M AUM. Personally, I prefer core funds with exposure to many factors, e.g. the AQR multi-styl...
by Ketawa
Tue May 19, 2015 9:46 pm
Forum: Investing - Theory, News & General
Topic: Obtaining Exposure to Quality / Profitability Factor
Replies: 44
Views: 1911

Re: Obtaining Exposure to Quality / Profitability Factor

Can't get much cheaper than Vanguard's Total Market Index, which offers exposure all the "factors" even ones not currently en vogue or "discovered" in the research yet. :D Surely you've read enough of these threads to know that this isn't how it works. In 23 years, VTSMX has had...
by Ketawa
Mon May 11, 2015 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Santander Bank - missing $20 bonus
Replies: 5
Views: 732

Re: Santander Bank - missing $20 bonus

I stopped with Santander. I would recommend checking fatwallet for more detail.
by Ketawa
Sat May 09, 2015 10:36 pm
Forum: Personal Consumer Issues
Topic: Save $$$ On Razor Blades
Replies: 29
Views: 3517

Re: Save $$$ On Razor Blades

I tried shaving with a Merkur DE razor. I did my best to perfect my technique, watched lots of videos, tried many different blades, etc. After several months, I gave up. I could never shave without nicking myself several times and the shave was never even that close for me. Maybe this just isn't in ...
by Ketawa
Sat May 09, 2015 11:01 am
Forum: Personal Finance (Not Investing)
Topic: NYT: 2% rebate credit cards; will they last?
Replies: 30
Views: 3278

Re: NYT: 2% rebate credit cards; will they last?

I have had the Barclaycard Priceline Rewards Visa for 2.5 years. It used to be a 2% cash back card with no annual fee, then switched to 1% for new applicants about 2 years ago. I still have the grandfathered 2% cash back rate.
by Ketawa
Wed May 06, 2015 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative investments
Replies: 14
Views: 1379

Re: Alternative investments

There are many investing strategies other than total market investing. Personally, I tilt to value, momentum, small caps, and profitability. The only fund I have that I would consider a true alternative investment (i.e. not fixed income or equities) is QSPIX. All these strategies are much better off...
by Ketawa
Wed May 06, 2015 11:16 pm
Forum: Investing - Theory, News & General
Topic: The Case FOR the Roth 401k
Replies: 46
Views: 4194

Re: The Case FOR the Roth 401k

I'm not going to read every response, just reply to each point with my opinion. 1. Even if they increase, I think it is unlikely that the progressive structure will change. Deducting at your top marginal rate now (likely at least 25%, possibly higher if you are able to max this account out) and payi...
by Ketawa
Tue May 05, 2015 12:37 am
Forum: Investing - Theory, News & General
Topic: Quality/Value/Momentum Index
Replies: 36
Views: 2034

Re: Quality/Value/Momentum Index

Growth stocks have a positive return, so even if they're lower than the market return, they're still higher than your assumed return(0%) for the momentum factor. When people talk about X% return for a factor, or X% premium for a factor, it is still assumed that the stocks with momentum exposure hav...
by Ketawa
Mon May 04, 2015 10:48 pm
Forum: Investing - Theory, News & General
Topic: Quality/Value/Momentum Index
Replies: 36
Views: 2034

Re: Quality/Value/Momentum Index

Even if you believe value is a risk premium and momentum will be arbitraged away to zero expected return, then there is still a good case for including it in a portfolio since they have had negative correlation . If negative correlation is sufficient reason to invest in a strategy, then you should ...
by Ketawa
Mon May 04, 2015 6:26 pm
Forum: Personal Consumer Issues
Topic: Truecar -- isn't this just a car buying scam?
Replies: 123
Views: 8225

Re: Truecar -- isn't this just a car buying scam?

Time is worth money. I could easily spend 20+ hours on a new car purchase: researching the best negotiating tactics, posting on Bogleheads, researching car specific forums, researching on Edmunds, emailing dealers, traveling to different dealerships, haggling over price, and so on. Or, I could consi...
by Ketawa
Mon May 04, 2015 10:33 am
Forum: Forum Issues and Administration
Topic: Forum software upgrade bug reports and change requests
Replies: 202
Views: 8935

Re: Forum software upgrade bug reports and change requests

This bug is also affecting the email notifications for subscribed threads. If I click the "If you want to view the newest post made since your last visit..." link, it doesn't take me to the most recent unread post if I'm on a different device. Here is some more info on this problem. Email...
by Ketawa
Mon May 04, 2015 10:25 am
Forum: Forum Issues and Administration
Topic: Forum software upgrade bug reports and change requests
Replies: 202
Views: 8935

Re: Forum software upgrade bug reports and change requests

I think the problem of having all of your posts showing up as unread is the result of one of those new features I turned off. Specifically 'Enable server-side topic marking: Stores read/unread status information in the database rather than a cookie". You can imagine the size of the database ta...
by Ketawa
Mon May 04, 2015 9:50 am
Forum: Forum Issues and Administration
Topic: Forum software upgrade bug reports and change requests
Replies: 202
Views: 8935

Re: Forum software upgrade bug reports and change requests

A couple people mentioned the "First unread post" feature. This has been around a long time. However, it isn't working like it used to. I am logged into Bogleheads with 4 different devices. "First unread post" used to work across devices, but doesn't anymore. For example, let's s...
by Ketawa
Mon May 04, 2015 1:30 am
Forum: Investing - Theory, News & General
Topic: Quality/Value/Momentum Index
Replies: 36
Views: 2034

Re: Quality/Value/Momentum Index

Johnny, what do you believe drives the momentum factor? It just seems to be that if you are trying to exploit both momentum and value, you have to time your moves. AQR fund, QCELX, combines these 2 factors plus profitability. The fund has a low ER, but it also has a turnover of 277%. Wow! Another A...
by Ketawa
Sun May 03, 2015 8:48 pm
Forum: Personal Consumer Issues
Topic: Truecar -- isn't this just a car buying scam?
Replies: 123
Views: 8225

Re: Truecar -- isn't this just a car buying scam?

I think it's an exaggeration to say that TrueCar is a scam. Some buyers will do better by using the TrueCar price as a negotiating tactic. Some buyers will do better because they wouldn't have negotiated or are terrible at it, so the TrueCar price will be better. Some buyers will do worse because th...
by Ketawa
Sun May 03, 2015 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any stable value funds that returns ~3% outside of a 401k?
Replies: 12
Views: 1750

Re: Is there any stable value funds that returns ~3% outside of a 401k?

Prepaid card accounts earn ~5% FDIC insured and take a little time to set up, limited to $5k per account. I have $20k invested in 4 accounts: 2x Mango, 1x Union Plus, 1x NetSpend.
by Ketawa
Thu Apr 30, 2015 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Residents of states w/o income tax, do you itemize?
Replies: 34
Views: 2060

Re: Residents of states w/o income tax, do you itemize?

I'm an Ohio resident but my military income is exempt from state tax since I'm stationed outside of Ohio, so I deduct general sales tax. The general sales tax deduction is easy to calculate using the general sales tax tables. TurboTax automatically calculates it for me based on AGI + BAH + BAS, my s...
by Ketawa
Thu Apr 30, 2015 5:12 pm
Forum: Investing - Theory, News & General
Topic: MSCI Diversified Multi-Factor Index
Replies: 36
Views: 3783

Re: MSCI Diversified Multi-Factor Index

I decided a while ago to shift everything in my IRA to AQR. QSPIX is 10% of my portfolio, and the rest of my IRA is in the domestic small/international/emerging multi-style funds at approximately market weights. My fixed income is in the G Fund, some special 1-yr high rate CDs, and prepaid cards wit...
by Ketawa
Wed Apr 29, 2015 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Casual shirts/tops for tall skinny men
Replies: 17
Views: 1111

Re: Casual shirts/tops for tall skinny men

Made to measure (MTM). I have had good experiences with Luxire. I'm 6'5" with long arms and an athletic build, so off the rack never fits me. Anything off the rack requires alterations, and at that point I might as well get something dialed in to exactly the measurements I need. Besides, someth...
by Ketawa
Mon Apr 27, 2015 10:15 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 72
Views: 9776

Re: Improving the TSP [for current participants]

If I read that correctly, they are considering real estate, emerging markets, and social responsible funds? Emerging markets, real estate, and socially responsible funds were mentioned as three asset classes that are often requested for inclusion in the TSP fund lineup. They were used to illustrate...
by Ketawa
Mon Apr 27, 2015 11:13 am
Forum: Investing - Theory, News & General
Topic: Study Recommends Keeping Status Quo for TSP Fund Offerings
Replies: 26
Views: 2217

Re: Study Recommends Keeping Status Quo for TSP Fund Offerin

This study is a bit old and the TSP is currently moving forward with analysis of a mutual fund window option. More discussion in this thread.
by Ketawa
Mon Apr 27, 2015 10:46 am
Forum: Investing - Theory, News & General
Topic: MSCI Diversified Multi-Factor Index
Replies: 36
Views: 3783

Re: MSCI Diversified Multi-Factor Index

1) If you have access to AQR funds this is best multi-factor approach. No access. But they cancelled US small and EM funds. 4) Most appealing part of the new "Multi-Factor Funds" is combination of value and momentum in one fund. Definitely agree, But they cancelled US small and EM funds. ...
by Ketawa
Thu Apr 23, 2015 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Which Credit Cards Offer >=$100 Back in First Few Months?
Replies: 5
Views: 613

Re: Which Credit Cards Offer >=$100 Back in First Few Months

You start a lot of threads asking very specific questions about credit cards. Bogleheads is not the best forum for this. Try fatwallet or flyertalk.

What Credit Card Should I Get ? FAQ
by Ketawa
Tue Apr 21, 2015 1:18 pm
Forum: Personal Consumer Issues
Topic: Southwest Credit Card Companion Pass
Replies: 14
Views: 1618

Re: Southwest Credit Card Companion Pass

What is the best way for me to ‘earn’ enough points for the Southwest companion pass this year? Wait until the bonus goes up on the Chase Southwest Plus card, and apply for it. If I spend the points, can they still be used for the companion pass. I was going to apply for one card this month (buying...
by Ketawa
Thu Apr 16, 2015 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Mango prepaid card - 4.8% (effective) APY
Replies: 210
Views: 115801

Re: Mango prepaid card - 4.8% (effective) APY

I used to deposit and withdraw $500 each month using ACH from USAA to avoid the monthly fee and I didn't have any problems with Mango closing my account. I have also completely emptied an account using ACH when I was expecting to need the cash for a refinance, and I refilled the account shortly after.
by Ketawa
Thu Apr 16, 2015 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Mango prepaid card - 4.8% (effective) APY
Replies: 210
Views: 115801

Re: Mango prepaid card - 4.8% (effective) APY

Mango and Union Plus are operated by the same bank and are FDIC insured. I have received 1099s from both of them for 2013 and 2014.
by Ketawa
Sun Apr 12, 2015 12:49 am
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5237

Re: Prenup

IANAL, but it seems to me that a representative sample for the success of prenups based on family court is probably severely distorted due to selection bias. Are lawyers that unscrupulous that they would recommend challenging a prenup without a good chance of succeeding?
by Ketawa
Sat Apr 11, 2015 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mango prepaid card - 4.8% (effective) APY
Replies: 210
Views: 115801

Re: Mango prepaid card - 4.8% (effective) APY

I was following this guide, It didn't say anything about having to have 50 as the requirement. But if that's the case.. I'll change it to 50 http://thefinancebuff.com/mango-prepaid-card-6-apy-savings-account-a-hidden-gem.html Looks like the terms have changed. You can see lots of references in the ...
by Ketawa
Sat Apr 11, 2015 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Mango prepaid card - 4.8% (effective) APY
Replies: 210
Views: 115801

Re: Mango prepaid card - 4.8% (effective) APY

I'm pretty sure you need to ACH $50 each month to receive the 6% interest rate.
by Ketawa
Thu Apr 09, 2015 8:33 pm
Forum: Personal Consumer Issues
Topic: How smart are thermostats?
Replies: 43
Views: 3156

Re: How smart are thermostats?

This is pretty neat and I'd be willing to pay a bit more for those features because I think it would save me money in the long run. How does it get the outdoor temp -- online or a physical sensor? Does it aggregate the numbers and make recommendations? There's also no way it can determine energy us...
by Ketawa
Thu Apr 09, 2015 7:15 pm
Forum: Personal Consumer Issues
Topic: How smart are thermostats?
Replies: 43
Views: 3156

Re: How smart are thermostats?

I have an Ecobee SmartSi for use with my heat pump and I think it's great. There are three avenues by which I have it set up to limit aux heat usage. 1. It will not use aux heat above a set outdoor temperature. 2. It will not use aux heat if it hasn't been running the compressor for a set time perio...
by Ketawa
Wed Apr 08, 2015 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: 50.00 Fee from Fidelity for transfer
Replies: 26
Views: 2529

Re: 50.00 Fee from Fidelity for transfer

It's possible that it was because I was Apex. I think I attained Apex status when I first rolled over to TDA since I had a bunch of free trades and rebalanced frequently. I was under $100k. If you don't lose Apex status, maybe I still had it, even though I typically only had two trades per month for...
by Ketawa
Wed Apr 08, 2015 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: SoFi as a fixed income investment?
Replies: 5
Views: 737

Re: SoFi as a fixed income investment?

SoFi is completely different. You invest only in a particular school's pool of debt. For instance the Stanford pool. The Stanford default rate was well under 1% even at the height of the financial crisis. That is the appeal of investing with SoFi and the reason they can offer such low rates on refi...
by Ketawa
Wed Apr 08, 2015 9:30 am
Forum: Investing - Help with Personal Investments
Topic: 50.00 Fee from Fidelity for transfer
Replies: 26
Views: 2529

Re: 50.00 Fee from Fidelity for transfer

How would you transfer a small remaining balance to another Fidelity account? Do you have another Roth IRA at Fidelity? Otherwise, the money is stuck in the Roth IRA until you take a distribution. Vanguard is the only fund company I know of that does not charge an account closure fee. However, I rec...
by Ketawa
Wed Apr 08, 2015 9:15 am
Forum: Personal Finance (Not Investing)
Topic: SoFi as a fixed income investment?
Replies: 5
Views: 737

Re: SoFi as a fixed income investment?

SoFi has only been around since 2011. Repayment rates would be influenced by the fact that the economy has been improving almost constantly since the company was founded. These bonds probably perform very poorly in bad times when defaults go up. If I had to guess, student loans are probably close in...
by Ketawa
Fri Apr 03, 2015 10:55 am
Forum: Investing - Help with Personal Investments
Topic: In my situation, would you pay down mortgage?
Replies: 31
Views: 1537

Re: In my situation, would you pay down mortgage?

You didn't mention if you itemize tax deductions, and your marginal tax bracket. Moving soon tilts the analysis towards prepaying the mortgage, since you will realize the gains from extra payments sooner. Let's say you move in 5 years and you are taking the standard deduction. Prepaying now is equiv...
by Ketawa
Thu Apr 02, 2015 1:51 pm
Forum: Personal Consumer Issues
Topic: The Credit Card Game
Replies: 32
Views: 3118

Re: The Credit Card Game

I have applied for and been approved for 16 credit cards in the last 16 months, along with 2 car loan refinances and a mortgage refinance. I have also closed some CC accounts. One of my FICO scores is marginally higher than when I started, in the 770s, per Barclays. I have started to scale back some...

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