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Re: How to help my son with law school loans?

We don't prepay anything on the mortgage (it's at 3.5% and I plan to have it or for my heirs to have it for the full 30 years) and we are not putting much into the taxable account. We started with about $200k in taxable in 2009. I invested it fairly aggressively in small cap blends and value funds,...
by adam1712
Sun Mar 23, 2014 9:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to help my son with law school loans?
Replies: 58
Views: 2707

Re: How to help my son with law school loans?

I'm still really confused how you can have the income to be in the 18.8% capital gains tax bracket and have to sell stocks to gift money to your son. Well, we actually do gift him money regularly, and one of our major financial goals is to leave a significant inheritance for him and his brother. An...
by adam1712
Sun Mar 23, 2014 8:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to help my son with law school loans?
Replies: 58
Views: 2707

Re: How to help my son with law school loans?

I'm still really confused how you can have the income to be in the 18.8% capital gains tax bracket and have to sell stocks to gift money to your son.
by adam1712
Sun Mar 23, 2014 6:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to help my son with law school loans?
Replies: 58
Views: 2707

Re: How to help my son with law school loans?

I'm finding it a bit mind-numbing to figure out whether financially he's better off taking out a home equity loan versus just closing some of his positions in his taxable account to retire his son's debt. It's not mind-numbing at all. It's impossible. We have none of the information needed to do th...
by adam1712
Sun Mar 23, 2014 2:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to help my son with law school loans?
Replies: 58
Views: 2707

Re: How to help my son with law school loans?

Thank you ALL very much for your thoughts suggestions. The info on payments to co-signed loans not counting as a gift is very helpful. Thank you. But I am still wondering if it make sense to take an equity loan to pay off his loans. If I simply withdraw the money from my taxable account, I will pay...
by adam1712
Sat Mar 22, 2014 3:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to help my son with law school loans?
Replies: 58
Views: 2707

Re: advice requested from engineers

The kid is interested in electrical engineering, with current ambitions of an eventual PhD in biomedical engineering (research career) Be sure that you look at how good the schools are in his area of interest. The engineering department at a univerisity could be well rated becuase of other types of...
by adam1712
Thu Mar 20, 2014 12:40 am
 
Forum: Personal Finance (Not Investing)
Topic: advice requested from engineers
Replies: 85
Views: 4411

Re: Are Long-Term Bonds be better than Short-Term?

Many on this site including myself would argue that a more classic approach of stocks combined with shorter term bonds offer a slightly better risk/reward profile and flexibility to a typical individual investor. But I have no doubt that your FIL's investments have worked well for him. Because the ...
by adam1712
Sat Mar 08, 2014 6:31 pm
 
Forum: Investing - Theory, News & General
Topic: Are Long-Term Bonds better than Short-Term?
Replies: 49
Views: 3012

Re: Are Long-Term Bonds be better than Short-Term?

I don't think your father-in-law is wrong. Most Bogleheads feel that the most important factors for investing are to save an adequate amount, don't overreact to market moves by staying the course, and keep investing costs low. Many on this site including myself would argue that a more classic approa...
by adam1712
Sat Mar 08, 2014 1:49 pm
 
Forum: Investing - Theory, News & General
Topic: Are Long-Term Bonds better than Short-Term?
Replies: 49
Views: 3012

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

... And then there is Berkshire Hathaway, where the company's ownership has made it clear they will never p ay a dividend. So again, what exactly are you buying when you buy this stock? ... Although they may not pay a dividend, Berkshire Hathaway has recently been buying back shares. In 2012, the c...
by adam1712
Thu Feb 27, 2014 10:56 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4286

Re: Please Help Me Find A Doctor

Have you looked into what health services are available at your community college? Going through them would be ideal as they'll be very familiar with what immunizations are required and getting the proper documentation.
by adam1712
Sat Feb 22, 2014 10:59 pm
 
Forum: Personal Consumer Issues
Topic: Please Help Me Find A Doctor
Replies: 23
Views: 1864

Re: Real Estate - Condos and HOA fees

Depending on the age of your building, many builders set up the initial association to be overly optimistic in terms of maintenance expenses with low dues to sell units. Then as the building starts to age, associations are left having to raise dues quite a bit to meet maintenance needs. If I was loo...
by adam1712
Wed Feb 12, 2014 11:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Real Estate - Condos and HOA fees
Replies: 13
Views: 1672

Re: When did/do you want stocks to start rising?

That's interesting. But wouldn't you say that recessions are inevitable; and also that what theoretical level an economy could have risen to without a recession is meaningless, and likewise the level stocks could have risen to without a recession is meaningless, because one might just as well say t...
by adam1712
Sat Feb 08, 2014 10:38 pm
 
Forum: Investing - Theory, News & General
Topic: When did/do you want stocks to start rising?
Replies: 58
Views: 3185

Re: When did/do you want stocks to start rising?

I don't really believe in reversion to the mean, so I'm always rooting for stocks to go up. When the stock market does poorly, it generally means the economy is doing poorly and less new wealth is being created to go around. There is sometimes a rebound effect, but I believe that stocks never reach ...
by adam1712
Sat Feb 08, 2014 9:16 pm
 
Forum: Investing - Theory, News & General
Topic: When did/do you want stocks to start rising?
Replies: 58
Views: 3185

Re: Rent Out Condo or Sell It

Sorry to hear about the unfortunate timing of the assessment for you. One thing to consider is the challenge of renting a condo with ongoing construction. I was in a condo building that required some repairs and I know it was a challenge for owners who rented dealing with their tenants. Those that w...
by adam1712
Fri Feb 07, 2014 12:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rent Out Condo or Sell It
Replies: 43
Views: 3035

Re: Advisor Opposes TIPS Ladder Strategy

True, but how does adding the uncertainty of future portfolio returns to the uncertainty of future expenditures help? You're just compounding the uncertainty. I've never understood the validity of this argument against a liability-matching strategy. Some would argue that even adjusting for inflatio...
by adam1712
Sun Jan 26, 2014 3:10 pm
 
Forum: Investing - Theory, News & General
Topic: Advisor Cautions Against TIPS Ladder Strategy
Replies: 85
Views: 5300

Re: POLL: Do you use your HSA funds to pay for medical expen

Currently, I haven't even bothered to save receipts since I think my medical expenses are probably <$100 per year. I've always figured there'd be bigger expenses down the road. I am starting to think I should get a plan together about how I'm going to organize receipts though.
by adam1712
Thu Dec 19, 2013 5:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Do you use your HSA funds to pay for medical expenses?
Replies: 78
Views: 4187

Re: work 401k pre-tax / roth 401k confusion

I have the same situation. I e-mailed the financial company and was told it's all one pool and they just keep track of the percentage that is Roth and the percentage that is traditional based on contribution history. I can't specify which funds are in the Roth. Not what I would prefer, but I don't k...
by adam1712
Mon Dec 16, 2013 7:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: work 401k pre-tax / roth 401k confusion
Replies: 4
Views: 268

Re: Weird Tax Issue (Computing Cost Basis)

All: Thanks for all your replies. It sounds to me like my sister needs to dig up her old statements and work with her previous bank and Schwab to figure it all out. What are her options in the event that neither she nor bank have copies of her old statements? Thanks. Along with digging and making a...
by adam1712
Wed Nov 27, 2013 1:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Weird Tax Issue (Computing Cost Basis)
Replies: 17
Views: 602

Re: Poll: House value as % of assets when mortgage paid off.

Just wanted to say I thought this was a useful and interesting poll. There's lots of paydown mortgage vs. invest thread and it's useful to see what Bogleheads actually chose to do. I did not vote in the poll since I have not paid my mortgage off (nor am about to) since I earn more from my investmen...
by adam1712
Wed Nov 27, 2013 11:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Poll: House value as % of assets when mortgage paid off.
Replies: 41
Views: 2846

Re: Poll: House value as % of assets when mortgage paid off.

Just wanted to say I thought this was a useful and interesting poll. There's lots of paydown mortgage vs. invest thread and it's useful to see what Bogleheads actually chose to do.
by adam1712
Tue Nov 26, 2013 11:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: House value as % of assets when mortgage paid off.
Replies: 41
Views: 2846

Re: Should I be reimbursing med expenses with HSA money?

In this case I have a little difference of opinion. Look at what is going on with FSA's. FSA's were the cream of the crop 10 - 15 years ago, and now under the ACA they total annual contributions are reduced to $2,500. HSA's have held the list of acceptable drugs reduced as well. Health Care is a to...
by adam1712
Tue Nov 26, 2013 11:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I be reimbursing med expenses with HSA money?
Replies: 10
Views: 685

Re: Gift to young adult relatives

Thanks to the comments, I'm starting to think I should just forget the suggested stock transfer and do it with transfer of cash. But I don't want to hand them the cash and say "Have a nice day at the mall". I think having them set-up a Vanguard account to receive the funds would be a good...
by adam1712
Sun Nov 24, 2013 10:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Gift to young adult relatives
Replies: 30
Views: 2057

Re: Gift to young adult relatives

I think it's a fine idea and a nice gesture. I have to wonder why you're choosing to gift the Windsor II shares. If Windsor II is not a fund you'd like to keep because of the expenses, then I don't like the idea of passing the fund onto a young investor. Do you have any other funds with a large capi...
by adam1712
Sun Nov 24, 2013 8:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Gift to young adult relatives
Replies: 30
Views: 2057

Re: Phone Etiquette

Personally, I don't mind if somebody doesn't return my call very promptly. There's times when I can't or choose not to answer the phone right then because I'm busy. However, I don't like it when people treat my time like it's less important than their own. If we're going to talk on the phone at some...
by adam1712
Thu Nov 21, 2013 9:34 pm
 
Forum: Personal Consumer Issues
Topic: Phone Etiquette
Replies: 38
Views: 3095

Re: Do TIPS insure against Fed-Induced Inflation ?

I think it's best to first define what expected inflation means. Say currently a 10-yr regular bond has a rate of 2.5%. A 10-yr TIPS bond has a real yield of 0.5%. The TIPS will pay 0.5% plus the rate of inflation measured by CPI-U. Thus for the two bonds will have equal return if the CPI-U grows at...
by adam1712
Mon Nov 04, 2013 1:26 pm
 
Forum: Investing - Theory, News & General
Topic: Do TIPS insure against Fed-Induced Inflation ?
Replies: 27
Views: 2003

Re: Hit a milestone today [401(k)]

I'm jealous, I have no chance of getting to $403B.
by adam1712
Wed Oct 30, 2013 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hit a milestone today [401(k)]
Replies: 76
Views: 7999

Re: Can a purely deflationary currency last? [bitcoin]

I disagree, I think being deflationary by itself is a problem. Imagine two new people need a way to exchange goods back and forth and are looking at a deflationary currency like bitcoin. In this simplified example, they each hold money 50% of the time to trade back and forth. If the currency is def...
by adam1712
Tue Oct 29, 2013 10:03 am
 
Forum: Investing - Theory, News & General
Topic: Can a purely deflationary currency last? [bitcoin]
Replies: 83
Views: 5681

Re: Can a purely deflationary currency last? [bitcoin]

So it seems that we are all in agreement that being deflationary is not a serious problem for crypto-currencies as long as it is slow and steady and more importantly expected? Thank you all for your input. --keanwood I disagree, I think being deflationary by itself is a problem. Imagine two new peo...
by adam1712
Mon Oct 28, 2013 12:26 am
 
Forum: Investing - Theory, News & General
Topic: Can a purely deflationary currency last? [bitcoin]
Replies: 83
Views: 5681

Re: High Income Earner, Pay off Mortgage

In my opinion, the bigger issue is your business has gotten too big to be bankrolling it with personal finances. I think you have two choices: 1) Slow down expansion for a year or two and make a concerted effort to take care of your personal finances. You could have yourself set for life with a base...
by adam1712
Tue Oct 22, 2013 9:11 am
 
Forum: Personal Finance (Not Investing)
Topic: High Income Earner, Pay off Mortgage
Replies: 19
Views: 2429

Re: World Series

The best and cheapest way is to try the team's website when they go on sale. It's 10am, Thursday, October 17 for the Cardinals. I got tickets to game 7 in 2011 this way. You absolutely have to be online at 10am and the server will be flooded so it will be slow and they might all be gone by the time ...
by adam1712
Wed Oct 16, 2013 4:56 pm
 
Forum: Personal Consumer Issues
Topic: World Series
Replies: 13
Views: 1364

Re: Buy house in cash vs. Mortgage, Help!

I guess I am just trying to avoid paying 2 to 3 times the value of my home over a 30 yr mortgage not to mention rates will continue to raise before I pull the trigger. Isnt there a better way!? In short, no. The alternative is to give up gains of 2 to 3 times your investments. You can't go to a sto...
by adam1712
Fri Oct 11, 2013 9:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Buy house in cash vs. Mortgage, Help!
Replies: 18
Views: 1726

Re: Used car dealers don't really negotiate any more.. true?

In my recent experience buying a used car, there is definitely some variability in sellers willingness to negotiate. I had a couple sellers (1 dealer, 1 private seller) that wouldn't budge on price at all. Maybe I didn't know how to get them to, but when I walked, they certainly didn't try to stop m...
by adam1712
Thu Oct 10, 2013 10:03 am
 
Forum: Personal Consumer Issues
Topic: Used car dealers don't really negotiate any more.. true?
Replies: 34
Views: 4574

Re: History – equities, sovereign debt, inflation

I agree, excellent post. There will no doubt be bumps along the road for investors. But to me this is a reminder that the most likely next rough spot for US investors is equity declines, not sovereign defaults or hyperinflation. You try to be as prepared as you can be for all scenarios (although it'...
by adam1712
Wed Oct 09, 2013 12:40 pm
 
Forum: Investing - Theory, News & General
Topic: History – equities, sovereign debt, inflation
Replies: 5
Views: 601

Re: Home Equity in AA

If the interest rate on your mortgage is lower than what you can get in reasonable FI, then you won't want to pre-pay the mortgage. If the interest rate on your mortgage is higher than what you can get in reasonable FI, then it is probably time to refinance. So the situation where you want to pre-p...
by adam1712
Fri Oct 04, 2013 10:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Home Equity in AA
Replies: 36
Views: 1516

Re: Home Equity in AA

I include the amount of mortgage I've paid off as part of my AA. Specifically, I include extra payments as if they were bonds. I use the regular 30 year amortization as my baseline. Basically, I printed out the original payoff schedule and any amount ahead of that I count as bonds. For rebalancing, ...
by adam1712
Thu Oct 03, 2013 10:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Home Equity in AA
Replies: 36
Views: 1516

Re: "When does a 100% stock portfolio make sense?"

I was 100% stocks in the past and have no regrets. For an early accumulator, I don't really see holding 20% bonds for rebalancing having that much benefit when stocks bought when new contributions each year dwarfs the amount that could be bought with the "dry powder." I also was aggressive...
by adam1712
Mon Sep 30, 2013 3:03 pm
 
Forum: Investing - Theory, News & General
Topic: "When does a 100% stock portfolio make sense?"
Replies: 61
Views: 5100

Re: Accessing Retirement in Emergency

Sorry to hear about your situation. As gerrym51 said, don't rush to make any decisions too fast. Give it a week or two. With regard to your question, two points: 1. You can withdraw Roth contributions at any time, it's only the earnings above the initial contributions that you have to wait until 59 ...
by adam1712
Sun Sep 29, 2013 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Accessing Retirement in Emergency
Replies: 4
Views: 659

Re: Going without a pre-nup?

I would say a pre-nup isn't just to divide assets differently than is written in the law. The important thing is a pre-nup documents the assets coming into the marriage. This helps to prevent either party challenging what assets were present before the marriage and whether a party was hiding or unfa...
by adam1712
Sun Sep 22, 2013 11:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Going without a pre-nup?
Replies: 255
Views: 13762

Re: Buying a car - comparing prices

I personally think with modern cars that years are becoming equally important as miles. Your formula works out to about 16 year life of a car which I think is about right if maybe slightly optimistic depending on personal preference. I have a 14 year old car with 130,000 miles and I feel like it's r...
by adam1712
Fri Aug 23, 2013 9:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Buying a car - comparing prices
Replies: 8
Views: 1256

Re: Capital Gains Tax Question

I'm doing something very similar to you by cashing in capital gains to live off and diverting my income into a 401k to stay in the 15% tax bracket. Your analysis is sound. If you have enough to live off, then it's a great plan.
by adam1712
Sat Jul 20, 2013 6:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax Question
Replies: 6
Views: 623

Re: Recommendation letter for someone you don't really know?

I would try to determine how many letters are needed. If it's something like 3 letters of recommendations, it makes sense to have one that is different than just all 3 being a teacher/professor writing about their academic aptitude. If it is a 3rd letter, you don't need to worry as much about vouchi...
by adam1712
Fri Jul 19, 2013 10:39 pm
 
Forum: Personal Consumer Issues
Topic: Recommendation letter for someone you don't really know?
Replies: 55
Views: 3107

Re: A Dangerous Misunderstanding about Bond Rates?

adam1712 wrote I think it's pretty simple, if you plan to hold a bond fund longer than the duration, you want rates to rise. Investors who bought intermediate term Treasuries starting in 1940 and bought them every year for the next 40 years wound up losing real purchasing power over the full 40 ful...
by adam1712
Sat Jul 13, 2013 7:21 pm
 
Forum: Investing - Theory, News & General
Topic: A Dangerous Misunderstanding about Bond Rates?
Replies: 124
Views: 10039

Re: A Dangerous Misunderstanding about Bond Rates?

I think it's pretty simple, if you plan to hold a bond fund longer than the duration, you want rates to rise.
by adam1712
Sat Jul 13, 2013 5:03 pm
 
Forum: Investing - Theory, News & General
Topic: A Dangerous Misunderstanding about Bond Rates?
Replies: 124
Views: 10039

Re: Do you do tax loss harvesting?

Each year you have enough tax losses, you get $3000 x tax rate in savings. So $450 per year for 15%, $750 for 25%, etc. Certainly nothing huge, but I feel it's worth it. You really don't have to be very involved to get most of the benefit. There's people on this board who I'm sure aggressively harve...
by adam1712
Mon Jun 24, 2013 7:24 pm
 
Forum: Investing - Theory, News & General
Topic: Do you do tax loss harvesting?
Replies: 40
Views: 1456

Re: Saving money for taxes - invest it?

I think it really depends on how much money you are talking here and also your cash flow situation. There's a wide range of how people budget for things. We all face medium sized bills that come up periodically. I don't set aside money for them much in advance, I just pay them when they come up by n...
by adam1712
Thu Jun 20, 2013 6:21 pm
 
Forum: Investing - Theory, News & General
Topic: Saving money for ~1 year - how to invest?
Replies: 31
Views: 2289

Re: Where to invest down payment savings with long time fram

Go for stocks. In 10 years, what has a higher probability of being worth more, stocks or fixed income? That is very dangerous advice. I'm going to share a true story of what could happen if you follow this "Bet it all, Number 7 on the roulette table". During the Internet boom of 1999, tec...
by adam1712
Fri Jun 07, 2013 11:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Where to invest down payment savings with long time frame
Replies: 17
Views: 1825

Re: CRASH! Assets are sold and the money goes... where?

Whilst your diagnosis of the US economy (excessive expansion of credit and the nontraded goods sector ie housing and housing related finance) is correct and was undoubtedly a big part of what led to the 2007 recession, it is important to recognize (as you imply in the second part of your post) what...
by adam1712
Mon Jun 03, 2013 12:35 pm
 
Forum: Investing - Theory, News & General
Topic: Crash! Assets are sold and the money goes... where?
Replies: 50
Views: 4570

Re: CRASH! Assets are sold and the money goes... where?

If Person A uses this cash for personal items, then it goes right back into the economy as business profits. However, if Person A just hoards it in a Money Market or in a Savings Account / CD, then that bank can in turn lend out 90% of it after keeping 10% in reserves. Right? Don't both of these op...
by adam1712
Sun Jun 02, 2013 11:23 pm
 
Forum: Investing - Theory, News & General
Topic: Crash! Assets are sold and the money goes... where?
Replies: 50
Views: 4570

Re: bonds vs paying off mortgage, more confused thoughts

Here is the approach I have taken. I assume the regular mortgage schedule with no extra payments is my baseline. I've chosen my stock/bond asset allocation for my other investments based on that. I have printed out the amortization schedule. Then when I make extra payments on the mortgage, the amoun...
by adam1712
Sat Jun 01, 2013 9:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: bonds vs paying off mortgage, more confused thoughts
Replies: 11
Views: 949
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