Search found 1331 matches

by bdpb
Tue Sep 01, 2015 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying Mortgage Question
Replies: 24
Views: 2336

Re: Prepaying Mortgage Question

Don't think that paying extra mortgage payments is the same as investing in the stock market. They are two significantly different risk levels. You should compare paying extra mortgage payments to investing in high quality bonds (US treasuries). They have similar risk levels. You mentioned that you...
by bdpb
Sun Aug 30, 2015 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying Mortgage Question
Replies: 24
Views: 2336

Re: Prepaying Mortgage Question

Don't think that paying extra mortgage payments is the same as investing in the stock market. They are two significantly different risk levels. You should compare paying extra mortgage payments to investing in high quality bonds (US treasuries). They have similar risk levels. You mentioned that you ...
by bdpb
Thu Aug 27, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: 3 Questions for a New Investor (Look at my Portfolio)
Replies: 5
Views: 796

Re: 3 Questions for a New Investor (Look at my Portfolio)

Debt: 2) Student Loans: $190,000 @ 5.00% for 9 More Years Current Portfolio: Cash on Hand: $60,000 CD: $40,000 (Emergency Funds; 5-Year @ 2.3%) Taxable: $13,500 Contributions: New Annual Contributions: $30,000 Taxable Account (max 10% of total investments in individual funds) Use cash on hand, CDs,...
by bdpb
Tue Aug 25, 2015 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Take a chunk out of student loans, or start saving?
Replies: 1
Views: 146

Re: Take a chunk out of student loans, or start saving?

Need more info. Like, marginal tax rates (fed and state) and investment options (IRA, 401k, etc).

Start here:
http://www.bogleheads.org/forum/viewtopic.php?t=6212
by bdpb
Sun Aug 23, 2015 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Not a market timer but......investing vs student loan payoff
Replies: 14
Views: 1123

Re: Not a market timer but......investing vs student loan payoff

The only market timing you should be doing is comparing your debt to bonds because they are similar investments. Right now, bonds are yielding much lower than your debt. When stocks are on sale, why aren't you borrowing more money at low rates and investing in stocks? Because that would be increasin...
by bdpb
Fri Aug 21, 2015 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Prepping to sell home: Pay Mortgage or Pay Student Loans
Replies: 38
Views: 3143

Re: Prepping to sell home: Pay Mortgage or Pay Student Loans

Don't you have another thread on this topic already?

http://www.bogleheads.org/forum/viewtopic.php?f=2&t=171643

Have you factored in the additional cost of anywhere between 5k and 10k per year for a kid?
by bdpb
Thu Aug 20, 2015 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Any advice on portfolio?
Replies: 2
Views: 296

Re: Any advice on portfolio?

Debt: mortgage @ 5% Tax rate: 10.60% federal 3.4% state Size of portfolio: upper five figures Split of Assets: 401k: 50% putnam stable value fund 20% Templeton Global Bond Adv 20% columbia large cap Index Z 10% principal mid cap S&P 400 His Roth: vanguard life strategy 76% stock 24% bond Her Ro...
by bdpb
Thu Aug 20, 2015 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Mom's retirement account
Replies: 31
Views: 1806

Re: Mom's retirement account

The RMD and SS gives her about a $1,000 monthly surplus above her budget. She doesn't have extravagant tastes and likely couldn't do much more cutting back than she already has. From what little I know about AA, it seems to me that her portfolio is too heavy in stocks for her age and lack of other ...
by bdpb
Sat Aug 15, 2015 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Please Critique my Portfolio
Replies: 7
Views: 704

Re: Please Critique my Portfolio

Duckie has given you excellent advice. For most folks, I agree that 20% bonds is a minimum, but for someone who is very young, saving a lot and appears comfortable with the risk, I would have no problem suggesting 100% stocks. Is your IRA contribution, traditional or Roth? While in the 15% bracket, ...
by bdpb
Fri Aug 14, 2015 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage experts: Need some advice
Replies: 21
Views: 1588

Re: Mortgage experts: Need some advice

Why don't you wait 5 years before having kids? Time is more valuable than money to me. It sounded like you wanted your wife to stay home with the kid. There is a simple solution to your problem. Have your wife work full time while you're having kids. I don't understand why folks think this is in so...
by bdpb
Fri Aug 14, 2015 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage experts: Need some advice
Replies: 21
Views: 1588

Re: Mortgage experts: Need some advice

Why don't you wait 5 years before having kids? That is literally the most presumptuous advice I've ever read on this forum and that's saying something. Now, maybe my comment is the second most presumptuous advice. The OP wants to know how to live within his means. I don't see anything presumptuous ...
by bdpb
Fri Aug 14, 2015 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage experts: Need some advice
Replies: 21
Views: 1588

Re: Mortgage experts: Need some advice

Why don't you wait 5 years before having kids?
by bdpb
Fri Aug 14, 2015 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Help me with my retirement plan!
Replies: 5
Views: 929

Re: Help me with my retirement plan!

1) Do I just roll my company plan balance over every 5 years but not count any of my current money in there when doing my own Asset Allocation calculations? The frustrating thing to me (being a newly Bogleheads forum reader) is that everyone is constantly talking about getting the correct asset all...
by bdpb
Wed Aug 12, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Location - Help needed
Replies: 7
Views: 720

Re: Asset Location - Help needed

On the flip side, you are taking on more risk.

Since you don't pay taxes on the Roth, dollar per dollar it's worth more, therefore more loss if stocks go down.

https://www.bogleheads.org/wiki/Tax-adj ... allocation
by bdpb
Tue Aug 11, 2015 7:01 pm
Forum: Investing - Theory, News & General
Topic: Beware the snake oil as the market gets tougher
Replies: 34
Views: 3521

Re: Beware the snake oil as the market gets tougher

His analogy is that buying the indexes is like buying a McDonalds Big Mac- you get the bun, lettuce, cheese & special sauce whether you want them or not. Active investors, on the other hand, can skip the cheese and the bun. Skip the cheese and bun and get a hamburger with a big bite taken out a...
by bdpb
Mon Aug 10, 2015 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: 25 y/o - need advice on retirement savings and goals
Replies: 3
Views: 332

Re: 25 y/o - need advice on retirement savings and goals

I am 25, somewhat recent college grad working full time (for past 4 years). CA, single. 2) Roth IRA - $43k, consists of Vanguard Total Stock Market Index and Small-Cap Growth. 75/25 mix, respectively. Expense ratios are 0.05% and 0.09%, respectively. 1) Would like to increase my cash savings to imp...
by bdpb
Mon Aug 10, 2015 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 916

Re: Portfolio Advice Needed

12.4% of my portfolio is already in Vanguards Total International Stock Index Fund via the TR2045 fund (Roth). Are you recommending that I take the 15.5% that I have in the I fund and redistribute it into the other TSP funds and then purchase a separate Total International Stock Index Fund for my R...
by bdpb
Mon Aug 10, 2015 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 916

Re: Portfolio Tune Up Needed?

You may have missed my point about the I fund in your TSP. It contains only International Developed Large Cap Markets. The best Total International funds also include Emerging Markets and Small Caps. I would consider using Total Intl in your Roth IRAs and removing the I fund in your TSP. Hmmm, inte...
by bdpb
Mon Aug 10, 2015 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Hedged vs unhedged international bonds
Replies: 2
Views: 196

Re: Hedged vs unhedged international bonds

Switch. Most experts around here recommend foreign bonds be hedged.

Your arguments are all good ones. When you have a better plan, make the changes to fit the plan.
by bdpb
Sun Aug 09, 2015 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice with Roth TSP, IRA, and Taxable
Replies: 9
Views: 723

Re: Portfolio advice with Roth TSP, IRA, and Taxable

Not to side track this thread too much but here is how I came to that conclusion. Last year I was deployed for long enough that my effective tax rate dropped to below 10% (it was 8% if I remember correctly). Investing money in taxable would subject it to 15% capital gains tax on the growth of the m...
by bdpb
Sun Aug 09, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Help for a first time investor
Replies: 16
Views: 936

Re: Help for a first time investor

I really want to do the best thing with this refi of my loans. The rates I am considering are as follows: 10-year fixed: 5.50% (5.25% if I open a checking account with DRB and make automatic payments through said account) 5-year fixed: 4.50% (4.25%) 5-year variable: 3.78% (3.53%) The variable loan ...
by bdpb
Sun Aug 09, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 916

Re: Portfolio Tune Up Needed?

[Edited: Oops looks like we all may have been simultaneously posting]. As lafder suggested, it will be easier to see your whole portfolio AA if each fund % is listed like this: TSP – (77%) 7.7% G Fund Government Securities 10% (ER 0.029%) 2.3% F Fund Fixed Income Index 3% (ER 0.029%) 23.9% C Fund Co...
by bdpb
Sat Aug 08, 2015 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Help for a first time investor
Replies: 16
Views: 936

Re: Help for a first time investor

In a few years you will be in very high tax brackets. I would save every penny I could in Roth accounts today. That includes 401k and 403b. I would not pay down debts before maxing all Roth contributions. Once you start making big bucks, switch to deductible contributions and pay off all debts in ve...
by bdpb
Sat Aug 08, 2015 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 916

Re: Portfolio Tune Up Needed?

The I fund is international developed markets only. I would change my IRA to Total International index to meet your Intl AA. The TSP max is 18k. Are you really in the 28% tax bracket? If so, I would try to save more. You're in the top 5% of income earners and barely saving 10% of gross income. You c...
by bdpb
Sat Aug 08, 2015 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review/Advice Needed
Replies: 3
Views: 670

Re: Portfolio Review/Advice Needed

Wow! That's a lot of stuff. I would simplify. If the inheritance is recent and there is little or no tax implication, I would sell all the taxable, move to one brokerage and put it in US Total market index, Intl Total market index and muni bond index funds. There is so much overlap everywhere, it's ...
by bdpb
Sat Aug 08, 2015 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice with Roth TSP, IRA, and Taxable
Replies: 9
Views: 723

Re: Portfolio advice with Roth TSP, IRA, and Taxable

You are paying a lot in taxes by only contributing to Roth accounts. At this tax rate, I would contribute to deductible accounts. Change back to Roth if you happen to drop to 15% bracket. Whoa not so fast! The tax situation for active duty military is quite different from the private sector. I'm al...
by bdpb
Sat Aug 08, 2015 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice with Roth TSP, IRA, and Taxable
Replies: 9
Views: 723

Re: Portfolio advice with Roth TSP, IRA, and Taxable

Debt: Mortgage: 30 year fixed 3.25%, Student loans: Multiple fixed rate loans from 4.4% to 6.9%, Auto loan 1: 4 year fixed 2.2%, Auto loan 2: 4 year fixed 3.5% Tax Rate: 25% Federal State of Residence: New Hampshire New annual Contributions $18K Self Roth TSP no match $5.5K Roth IRA $5.5K her Roth ...
by bdpb
Fri Aug 07, 2015 9:16 am
Forum: Personal Finance (Not Investing)
Topic: New York state tax on RMD
Replies: 7
Views: 569

Re: New York state tax on RMD

Remember, when moving from a high tax state (CA, IL, NY, etc...) to a no/low tax state (FL, TX, NV, etc...), it is not what constitutes becoming a resident of the new state that matters, but rather what the requirements are of the state you are leaving in determining that you are no longer a reside...
by bdpb
Fri Aug 07, 2015 9:07 am
Forum: Personal Finance (Not Investing)
Topic: New York state tax on RMD
Replies: 7
Views: 569

Re: New York state tax on RMD

Remember, when moving from a high tax state (CA, IL, NY, etc...) to a no/low tax state (FL, TX, NV, etc...), it is not what constitutes becoming a resident of the new state that matters, but rather what the requirements are of the state you are leaving in determining that you are no longer a reside...
by bdpb
Fri Aug 07, 2015 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Mid 20's Couple - Asset/Fund Allocation Help
Replies: 3
Views: 487

Re: Mid 20's Couple - Asset/Fund Allocation Help

What's your marginal tax rate? Effective tax rates aren't useful. Choose an AA. How much in stocks vs bonds. How much in US vs Intl stocks. If you can handle the risk, then 80% stocks and 20% bonds, with 30% to 40% of stock portion in Intl. Otherwise, 60% stocks and 40% bonds. Sell all high ER funds...
by bdpb
Wed Aug 05, 2015 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Saving to buy a new house
Replies: 6
Views: 1156

Re: Saving to buy a new house

With any extra money we have to “save” for the new home purchase, would you recommend paying extra on our existing mortgage (currently at 3.875%), or would you recommend just putting it in an online savings account such as Ally bank? Pay down the mortgage. You can't earn 3.875% anywhere else on sho...
by bdpb
Wed Aug 05, 2015 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Should I make $77,500 in make-up 401k contributions?
Replies: 11
Views: 2246

Re: Should I make $77,500 in make-up 401k contributions?

How are taxes affected? Do you amend previous years? What tax brackets were you in then? What is your state tax rate? I would make up all the contributions, sell the current house and move to a nicer neighborhood. I would rent or borrow up to 100% in the short term if you don't want to wait it out f...
by bdpb
Wed Aug 05, 2015 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Brand new to investing - Advice sought
Replies: 12
Views: 917

Re: Brand new to investing - Advice sought

Read the following before doing anything: https://www.bogleheads.org/RecommendedReading.php Read in this order: The New Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get on with Your Life - by Bill Schultheis. The Bogleheads' Guide to Retirement Planning Edited and organized by ...
by bdpb
Wed Aug 05, 2015 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help with American Funds please!
Replies: 18
Views: 1259

Re: Help with American Funds please!

And I say OK anything has to be better than what i have. And he moves it. The next couple of days I spent researching, and feel like a sucker. They got me again. And they even had the nerve to split it up enough to get the maximum sales charge they could get 5.75% WOW So now I am so mad I want to g...
by bdpb
Wed Aug 05, 2015 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Want to straighten up my finances, need advice
Replies: 4
Views: 803

Re: Want to straighten up my finances, need advice

Depending on how you plan to use the Roth, you may not want to make direct contributions. Instead, if you qualify for deductible contributions to a traditional IRA, you will save IL state taxes by contributing to the tIRA and converting immediately to a Roth. You will end up with the same amount in ...
by bdpb
Sun Aug 02, 2015 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Request for a look at portfolio
Replies: 3
Views: 659

Re: Request for a look at portfolio

Not following the sad face on IL. State tax is 3.75%.

If you qualify for deductible IRAs, you may be needlessly paying state tax on your Roth contributions. In IL, you can make deductible IRA contributions and immediately convert to Roth and not owe any state tax. Saves about $400 in state taxes.
by bdpb
Thu Jul 30, 2015 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax 401K or Roth IRA for Bonds
Replies: 6
Views: 494

Re: Pre-Tax 401K or Roth IRA for Bonds

grabiner wrote:Therefore, given that your stock options in the 401(k) are better than your bond options, it's best to hold bonds in the 401(k).


I think you meant "it's best to hold stocks in the 401k".
by bdpb
Wed Jul 29, 2015 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for Investment Advice
Replies: 15
Views: 1092

Re: Looking for Investment Advice

Thank you very much for the advice, I appreciate it! Once student loans are paid should I target getting my mortgage down to a particular amount before taxable investing? After maxing out all tax preferred accounts, if I weren't concerned with liquidity issues, I would pay down a 4% mortgage before...
by bdpb
Wed Jul 29, 2015 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: New investor that seeks advice and opinions
Replies: 4
Views: 265

Re: New investor that seeks advice and opinions

I would disagree about total bond in roth. You want something there that is going to grow. Bonds used to be much less desirable in taxable, but with the recent horrible yields the thinking is more lenient towards having them there. http://whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ I ...
by bdpb
Wed Jul 29, 2015 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for Investment Advice
Replies: 15
Views: 1092

Re: Looking for Investment Advice

As background, I am 29 years old and make about $170,000 in gross income. New annual Contributions of $12,000 to 401k You are not saving enough (to be a Boglehead :happy). Aim for saving 20% of gross income to retirement savings for a comfortable or early retirement. You should be contributing the ...
by bdpb
Wed Jul 29, 2015 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: New investor that seeks advice and opinions
Replies: 4
Views: 265

Re: New investor that seeks advice and opinions

Tax inefficient and high expense ratios. Contribute more to deductible 457 before taxable investing. Look at your whole portfolio as one and locate your funds to minimize taxes and costs. List your lowest ER funds in 457. Likely, should allocate Total Intl index in taxable. Large Cap Core Index in 4...
by bdpb
Sun Jul 26, 2015 11:23 am
Forum: Personal Consumer Issues
Topic: Would you look down on a co-worker for driving a beater?
Replies: 196
Views: 13782

Re: Would you look down on a co-worker for driving a beater?

My co-workers haven't seen the car since I park it downtown and walk to the office. We're supposed to have a company picnic and people are going to see my car when I drive up. It will probably be the worst looking car on the lot. Rent a car for the day. Take Uber to and from the picnic. Maybe they ...
by bdpb
Sun Jul 26, 2015 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Golden handcuffs - help with vested retirement plan
Replies: 28
Views: 3104

Re: Golden handcuffs - help with vested retirement plan

Over 40% of 401k plans have immediate vesting. I would guess that it is higher for professionals. What paints an even grimmer picture on this data are the vesting schedules. Only 22% of 401K matching vests immediately. Also at 22% are ‘cliff’ vesting schedules. These plans require you to stay with ...
by bdpb
Sat Jul 25, 2015 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Golden handcuffs - help with vested retirement plan
Replies: 28
Views: 3104

Re: Golden handcuffs - help with vested retirement plan

Yes, it sucks that you have to vest, but that's the case with just about any plan that I've ever encountered. Over 40% of 401k plans have immediate vesting. I would guess that it is higher for professionals. Some kind of vesting schedule wouldn't seem like that bad of a deal, except, the OP also st...
by bdpb
Sat Jul 25, 2015 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) loan and I'm changing jobs
Replies: 17
Views: 1195

Re: 401(k) loan and I'm changing jobs

My understanding is that I need to pay off the 401(k) loan within 60 days of leaving my current job. Where does this understanding come from? Many folks think this is the law. It's not. The rules are written into the plan. Make sure this is exactly what you have to abide by. Get a loan from PenFed ...
by bdpb
Sat Jul 25, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Do I dump the Vanguard energy Fund in my 401k
Replies: 32
Views: 2986

Re: Do I dump the Vanguard energy Fund in my 401k

I have learned a lot about investing over the last year, I have started a Roth IRA that has the lazy portfolio, and I would like to get my 401k more balanced and into lower cost index funds. 3) Sell it now, eat the loss and redistribute my 401k allocation into lower cost index funds in a more balan...
by bdpb
Tue Jul 21, 2015 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Redux-APPL and Other Techs
Replies: 10
Views: 630

Re: Portfolio Redux-APPL and Other Techs

The readership over their are mostly liberal zombies that follow whatever the latest fads that sound the easiest to follow. I invest in individual stocks, increase yield throughout the year via covered calls, and have recently moved my equities to US-centric investments due to King Dollar driving f...
by bdpb
Tue Jul 21, 2015 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Father passed - helping my mom invest her assets
Replies: 24
Views: 2562

Re: Father passed - helping my mom invest her assets

Debt: Mortgage loan, ~$340k @ 4.24 maturing in 3/2030 Tax Rate: I believe it will be close to 0% Federal, 0% State (my mother is semi-retired and self employed and makes less than $20k/year.) Current total portfolio: Low six figures (~$200k) with an anticipated ~$70k from the sale of a joint rental...
by bdpb
Fri Jul 10, 2015 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: 401k review
Replies: 2
Views: 310

Re: 401k review

Don't expect a lot of comments. You've done an excellent job. Are you contributing to IRAs, too? If your wife has access to the same low cost funds, then allocating her accounts the same way is fine. Otherwise, look at all of your accounts as one portfolio and use the same AA across the whole portfo...
by bdpb
Wed Mar 11, 2015 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Portfolio Review Request
Replies: 6
Views: 906

Re: Yet Another Portfolio Review Request

His 401k (59%; adds $19.4k/yr including employer contribution = 59% of annual contributions) 55%, Vanguard S&P 500 Index Fund Admiral (VFIAX) ER 0.05% 04%, Harbor International Inst (HAINX) ER 0.77%, <= large companies in developed markets 00%, Vanguard Intermediate-Term Treasury Admiral (VFIUX...

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