Bogleheads.org

Farm rental income is steady and increasing somewhat over the last 15 years in our area, maybe because of the demand for ethanol. I would not include it in determining our equity/bond asset allocation. I would treat it as a separate income stream. I like diversity of income streams and there is room...

I don't like their higher expense ratios in my son's 401k run by Fido and the undisclosed fee he paid after the site stated he would get a check for X dollars. He received X-50 dollars. $50 seems steep to close an account. Back when I was an employee in a major company I rolled over my retirement ac...

I don't know about sole proprietor ownership and I do not fill out a schedule C. For an S corp, the employer contributions are an expense on a 1120s and are not included in the w-2 or 941. The solo 401k I have allows for a profit sharing component. Some plans are simply profit sharing and none of th...

This article states that employer contributions are not subject to fica taxes. http://www.pbtk.com/newspage.asp?AID=300

Employee contributions require fica payments. Employer contributions do not. If your business is profitable enough then you pay yourself a reasonable salary and you calculate how much the employer can contribute if you want to maximize tax deferred space. Employer contribution can be up to 25% of sa...

You will pay a fee for purchasing Vanguard mutual funds at Etrade and I do not believe you will be able to hold Vanguard Admiral shares at Etrade. You will continue to pay investor grade expense ratios even if you meet the minimum ($10k for most) to qualify for Admiral shares lower expense ratios. E...

I generally like reading these reports, but I was a little surprised to see that Ann Price recommended Natixis ASG Diversifying Strategies a fund with a 5.75% load in an article titled "Keep Your Portfolio Simple." Maybe her readers are more sophisticated investors than I am. :oops: http:/...

Berkshire Hathaway became too large a part of our portfolio and we now only hold it within index funds. I would not be averse to owning it again if it looked like a screaming opportunity.

I've become more and more of the opinion over the last few years that widespread financial literacy movements are a waste of energy. Those who want to learn will seek it out - we all wound up here, after all. Those who don't, won't. No amount of required financial literacy classes in high school/co...

In "The Only Guide to Alternative Investments You'll Ever Need," Larry Swedroe states that social responsible index funds cost investors and additional 0.5%/year in higher costs. He compares a popular SRI returned 10.1% vs. 12.7% in Vanguard 500 index from 2003 to 2007. For small cap funds...

Read Herminia Ibarra's book on career change (working identity or something like that). Short answer: career change is an adaptive incremental process. Doesn't happen in one big jump. You need information (ie experience) of other careers eg working in a CFP office for 2 weeks during your vacation. ...

6 million withdrawal rate depends in part on the age when you begin withdrawals. I think the 4% safe rate was assuming 30 years in retirement and there is debate about whether it is still a safe rate. I would design a portfolio to minimize taxes and expenses. I would not put assets under management ...

You might want to read "First Do No Harm," (Being a resilient doctor in the 21st century), by Leanne Rowe and Michael Kidd. We must expand the Hippocratic Oath to include doing no harm to ourselves. Job number 1 for me is to make home a sanctuary,to value strong relationships and to treat ...

Large corporations are buying practices these days in Maryland. If your father in law is in a good location then Medstar, Hopkins, Holy Cross or another entity may be interested. I would contact directly local hospitals and corporations active in buying practices in Maryland. I do know of small fami...

The AMA published a handbook titled, "Buying, Selling, and Owning the Medical Practice." Coker Publishing Company 770 353-0118. It was published in 1996. There may be newer versions available. A family doc in the suburbs sold his practice about 10 years ago, however, he kept the single fam...

Two different experiences with Fidelity fees. I have seen a 401k account that was run by Fidelity. The owner who had never used a 401k before put in about 60 bucks and his company put in 40 for one pay period. Then the owner of the account lost his job and the $50 fee was not revealed until after th...

Some plans have a yearly fee if assets in a particular fund are below a minimum. I have more than one child in a 529 and when I added an additional beneficiary and put less than 2k for a separate beneficiary who was part time non-degree taking two inexpensive courses in the same plan I received a ch...

Just thinking out loud here: Two percent of a 7mm portfolio is 140,000. I think SP 500 is paying 2% divs. I think I would put a large amount in intermediate tax deferred, a lesser amount in high yield tax exempt, or high yield corporate and Vanguard reit in tax deferred accounts. EMB recommended by ...

I graduated medical school without debt. It is very comfortable feeling to have no debt. It sounds like you will pick Penn and the scholarship. That is a good choice. You will have the opportunity to pick your specialty based on what you really want to do rather than be hamstrung by debt. I also agr...

Apparently a tax on roads, parking lots, driveways and buildings roofs has been passed and will go into effect in July. The area that diverts rainwater will be taxed. Non-businesses, non-profits and individuals will not escape the tax and may end up being a higher tax than real estate tax for some e...

Unfortunately, you missed the national pillow fight on the mall. Check the Washington Post weekend section on Fridays with lists of activities, special exhibits, music and plays, etc. I like Jaleo for brunch or dinner. Portrait Gallery is close by, free and interesting. I took a special interest in ...

Winning a publishing clearing house prize was the start of a scam that has been going on in a local retirement community. Two elderly ladies were convinced that they were winners and the boyfriend of one may also have been convinced at one time. It has been very difficult to extricate at least one o...

Interesting Ferri article, in that if you are not spending much you can stay 100% in equities, because you will never outlive your money. I have seen the opposite, wealthy staying 100% in bonds because they will never spend more than they make in bond interest. Second thoughts appear when the bonds ...

I received a letter to my home address from Britain stating that someone with my name died 5 years ago. Millions are held in a Hong Kong bank. If I am serious I can share this money. Of course, this must be kept quiet. The appeal is to greed, larceny and stupidity. Is there any point in reporting th...

I don’t want to get into this argument, because I don’t know what side I would come down on, liking a little bit of both strategies. Below are some musings, that may not shed any light and hopefully will not attract heat, but I will post it with the hope that it will help me clear up my own thinking...

I prefer the Roth. It wasn't available to me until 2010 as conversions. I will take my medicine now for the prospect of never having to pay taxes again on the investment. If you are paying 36% in taxes are the prospects that taxes will be lower in the withdrawal stage? Will your required withdrawals...

Jason Zweig wrote that "Benjamin Graham often pointed out that the small investor had a great advantage over professionals: individuals can choose not to measure their results over the short term, and they can invest at will in unfashionable markets." (WSJ- "Slow Stocks Make for a Fas...

Making a plan and not reevaluating it periodically seems unintelligent to me. I look to this site, BH meetings and outside reading to help me modify my plan. I do try to avoid "noise," in the daily financial press. I think the regulars on this site or more sophisticated than most and reali...

I looked into Vanguard's VA about two years ago when I had Vanguard do a review. I was actually discouraged from investing in their VAs by the advisor assigned to me. However, he did not know my personal situation completely and only knew of my stock and bond investments. Vanguard also did not like ...

My philosophy all through my working life until recently was defer taxes and put the maximum in tax advantaged. With this philosophy you may find as I did that later in life you have a heck of a lot in t401ks and tIRAs. I started converting when it was available to high earners in 2010 to avoid ridi...

I stopped subscribing to the WSJ when the price went above $99 a year. I agree it swallows a lot of time. I look for interesting articles on line and view them via google. A friend has taken it upon himself to give me his old WSJ when I told him I stopped my subscription, but I don't read much of it...

I have almost all my bonds in munis.When Whitney's statements came out, it was an opportunity to buy muni bond funds at a nice discount esp. NY and CA. Palpable fear is great for the calm who follow a plan.

I do think the drivers here are way better than in New Jersey. Except when it snows. Washington drivers like to go either 15 or 70 in the snow; NJ drivers get more snow but they know how to handle it. (I moved from MD to NJ three winters ago, so I am familiar with both.) If you are retiring, you pr...

I know lots of Marylanders who summer here and spend 6+ months in Florida for tax and weather reasons. Many have moved back to be close to kids. I have too large a supply of free blue claw crab and eastern shore corn until mid to late fall and Chesapeake oysters in the winter to leave any time soon....

I have been following the several threads on annuities including Mel's on building your own. I thought this might be off topic a little so I am starting another thread. I looked at our state muni fund and MUB. The payouts are reasonably close to the payout for a joint annuity for us mid an early 60s...

19k yearly is a lot of money, and I see nohing wrong with legal tax avoidance. I could see this working if both spouses were cooly logical, but given the fragility of relationships it is an extremely risky proposition at best. The topic is certain to elicit many irate comments as it concerns physici...

Dear Bogleheads. I am self-employed and have a Solo/Individual 401k at Vanguard through their Small Business section. I've had the 401k there for about 2 years and awhile ago found a post on Bogleheads suggesting that it was (slightly?) better to make contributions as an "employer" versus...

WSJ reports an SPIA with the following longevity feature: You pay 165K for an annuity that pays 10k yearly at age 65 and 50k beginning at age 85. The article quoted 126K for a nominal SPIA paying 10k per year starting at age 65. Of course this does not help with inflation during the 20 years prior t...

While I was making nondeductible tIRA contributions over the last 30 years, I wondered if it was a good idea. There was no option for conversion until 2010. I was glad to have a nontaxable basis when I made the conversions although taxes were still high. When I considered the buying power (unchanged...

Edelman's show is always disappointing. He uses a lot of ridicule and ad hominem arguements and is of the opinion that investors are too ignorant to make their own decisions. It is such a jungle out there that you all need an advisor. He is self promoting. His talk show, PBS specials, books and adve...

It seems like a great career. I just met an elderly nurse still working in the ER and enjoying it, and giving CPR lessons. A relative just completed a phD in forensic nursing, a relatively new field. She did a lot of ER and ICU work after her RN and always seemed to enjoy the work. Now she is a coll...

I am following this arguement closely as I have had the arguement with myself in the past. Should we put some money into an annuity or would it be better to buy say Vanguard hi yield corporate bond fund and use it up over time in retirement. Several on this board advised against that particular fund...

Tomorrow's WSJ has aricle regarding financial lessons from Downton Abbey. Sell Downton Abbey. It is a liability.

^ Your post is loaded with improper use of (sloppy?) Accounting terminology and caveats, for instance: I can see how someone would put real estate in their net worth calculation, but it can be an asset or liability until sold, depending on cash flow. First, most anything can be sold at fair market ...

Stocks and funds can be sold immediately and are priced regularly and somewhat efficiently. Individual bonds are a little more difficult to unload. Real estate is difficult to sell unless a market is hot. I have lost a little and made some on primary residence sales. I do not even consider real esta...

Absolutely. You are right on Jack. It is best to have ice in your veins.

I am familiar with the California real estate roller coaster. I bought low and sold high to further my education and greatly increase my prospects. I know of a lot of oil workers who sold their El Segundo property and moved to Nevada or property near the Dominguez refinery and moved back to Lousiana...

Mostly I consider real estate a liability until sold, and it has no impact on AA unless I need more income to pay for expenses. I still think that income generation from assets to be a better measure than net worth. In this low interest rate environment 1MM cannot generate as much income as it did 5...

I have been following debates about delaying SS and nothing has changed my personal decision to delay SS until 70 and for my wife to take a spousal benefit at 66 then switch to her own benefit at 70. I work only 3 half days a week now and spend from taxable accounts. I can always increase my hours i...

I had small amount of money in a retirement account in my late twenties but invested it in further education. At the end of grad school I had a small debt of 1k to my Dad. I repaid it one week after graduation, although 1k was the cost of 8 months rent in an efficiency I had lived in during and befo...