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Re: Tax gain harvest smaller gains from taxable to fund 529s

you can put new money into a 529 over time instead of increasing your taxable portfolio. This got me thinking that what I was suggesting is not much different from selling taxable gains to fund a Roth IRA. Although a Roth IRA is limited to $5.5k and potentially easier to divert monthly savings to t...
by harikaried
Sat Oct 18, 2014 5:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest from taxable to fund 529s / Roth IRAs?
Replies: 3
Views: 322

Re: Smartphone questions

Also curious if anybody has just bought "too much phone" and would do it differently, and why? I'm pleasantly surprised at all the responses that mention ting.com, but it's a great approach to avoiding buying "too much phone plan." The popular carriers tend to focus on unlimited...
by harikaried
Fri Oct 17, 2014 2:41 pm
 
Forum: Personal Consumer Issues
Topic: Smartphone questions
Replies: 63
Views: 3670

Re: Tax gain harvest smaller gains from taxable to fund 529s

avalpert wrote:I wouldn't, don't really see an advantage to paying taxes now that can be deferred for later
But what's the cutoff of what's allowable? If there's any tax, then it's a definite no-go? E.g., 1¢ of LTCG results in 0.15¢ of tax. And in that case, does it matter if 1¢ is actually 1% gain or 10% gain?
by harikaried
Fri Oct 17, 2014 12:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest from taxable to fund 529s / Roth IRAs?
Replies: 3
Views: 322

Tax gain harvest from taxable to fund 529s / Roth IRAs?

We have some unrealized taxable gains on total international equity index funds. Up until last month, they were around 40% long-term gains, but now they're at 20% gains. Assuming we want to fund 529s to grow for 20 years (we don't have kids yet), does it make sense to sell those now-smaller gains an...
by harikaried
Thu Oct 16, 2014 6:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest from taxable to fund 529s / Roth IRAs?
Replies: 3
Views: 322

Re: Who should regularly contribute to taxable investments?

As someone that plans to have kids soon jamming the max in a 529 doesn't seem to make much sense. I know tuition costs keep going up but there's a limit and I assume I'll make some investment gains in contributions. Putting the "max" for a 529 as soon as possible is the similar argument f...
by harikaried
Wed Oct 15, 2014 1:48 pm
 
Forum: Investing - Theory, News & General
Topic: Who should regularly contribute to taxable investments?
Replies: 34
Views: 3538

Re: Treat all accts as 1 BIG account for AA or target 70/30

Sounds like you're looking for how to implement an AA across accounts based on tax and growth properties of equities vs bonds:

Principles of tax-efficient fund placement
Tax-adjusted asset allocation
by harikaried
Wed Oct 15, 2014 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Treat all accts as 1 BIG account for AA or target 70/30 each
Replies: 7
Views: 879

Re: Who should regularly contribute to taxable investments?

[*]invest in tax advantaged education accounts - no kids Curious, do most people who regularly contribute to taxable investments fall into ⋅ don't have or don't plan to have kids (one can open 529 in own name long before kids) ⋅ won't pay for kids' education ⋅ already ...
by harikaried
Tue Oct 14, 2014 7:10 pm
 
Forum: Investing - Theory, News & General
Topic: Who should regularly contribute to taxable investments?
Replies: 34
Views: 3538

Re: Who should regularly contribute to taxable investments?

"Three quarters of American families donate to charity, giving $1,800 each, on average." CBS News . I would assume this happen for many as part of "pay expenses," i.e., before any usage of tax advantaged accounts. There's nothing particularly wrong with donating especially if a ...
by harikaried
Tue Oct 14, 2014 11:43 am
 
Forum: Investing - Theory, News & General
Topic: Who should regularly contribute to taxable investments?
Replies: 34
Views: 3538

Re: Who should regularly contribute to taxable investments?

Perhaps another reason for regular contributions to taxable is for a mid-term goal, e.g., preparing to buy a house, where money can have some risk (perhaps allocated to [muni] bonds?) to avoid other risks (inflation). Putting too much in tax advantaged accounts would delay the ability to make a larg...
by harikaried
Mon Oct 13, 2014 11:35 am
 
Forum: Investing - Theory, News & General
Topic: Who should regularly contribute to taxable investments?
Replies: 34
Views: 3538

Re: Relocating to a tax free state with good weather need ad

2) Sacramento, and maybe the surrounding areas, is a hidden gem. You're close to all the wineries you can visit in a lifetime. You're close to Yosemite, Tahoe, and the Sierra Mountains for all outdoorsie stuff. The winter is mild, the summer can be hot, but that's only a few days out of the year. T...
by harikaried
Mon Oct 13, 2014 11:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Relocating to a tax free state with good weather need advice
Replies: 53
Views: 3613

Re: How Often to Buy Funds in a Taxable Account?

And I don't call that DCA. I call it lump sum - I invest a lump sum every time it becomes available (when I get paid). DCA originally came about to describe the behavior of regular contributions. I see that the wiki article was changed almost 3 years ago.. originally: "is a technique of buying...
by harikaried
Sat Oct 11, 2014 7:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: How Often to Buy Funds in a Taxable Account?
Replies: 15
Views: 2189

Re: My 30-day trial experience with Betterment

"While Betterment customers often only pay a fraction of the bid-ask spread due to our vertical integration, minimizing these costs is still beneficial to an efficient portfolio. So all other things being equal, Betterment attempts to select ETFs with narrower bid-ask spreads." I think &q...
by harikaried
Sat Oct 11, 2014 6:02 pm
 
Forum: Investing - Theory, News & General
Topic: My 30-day trial experience with Betterment
Replies: 73
Views: 8568

Re: My 30-day trial experience with Betterment

In order to get the money for the contributions, I am going to sell some equities recently purchased that have a loss.... I'm sure the Betterment folks are monitoring this thread, so I wonder if they have any comments about that. Betterment's TLH+ white paper talks about using tertiary securities f...
by harikaried
Sat Oct 11, 2014 5:34 pm
 
Forum: Investing - Theory, News & General
Topic: My 30-day trial experience with Betterment
Replies: 73
Views: 8568

Re: Relocating to a tax free state with good weather need ad

retiredjg wrote:Reno might work. Probably cooler than Las Vagas.
Reno gets snow maybe a few times a year, but you'll probably only need to shovel once or twice (or never depending on where in the city). Pretty nice if you like mountain snow sports (Tahoe) -- you get to enjoy without the work!
by harikaried
Sat Oct 11, 2014 4:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Relocating to a tax free state with good weather need advice
Replies: 53
Views: 3613

Re: Who should regularly contribute to taxable investments?

529s have very high limits and I am a big proponent of using them in the right situation... Also our 529s are pretty well-funded, so the incremental utility of funding them more is somewhat smaller This comment got me thinking of the how some of the steps before taxable investing are "recurrin...
by harikaried
Sat Oct 11, 2014 4:15 pm
 
Forum: Investing - Theory, News & General
Topic: Who should regularly contribute to taxable investments?
Replies: 34
Views: 3538

Who should regularly contribute to taxable investments?

It seems that there's quite a long list of things to do before one should be investing in taxable: ⋅ make money ⋅ pay expenses ⋅ establish emergency fund ⋅ save for near-term expenses ⋅ invest in 401k for company match ⋅ pay off high intere...
by harikaried
Fri Oct 10, 2014 8:31 pm
 
Forum: Investing - Theory, News & General
Topic: Who should regularly contribute to taxable investments?
Replies: 34
Views: 3538

Re: Help w/ approximating TSM w/ Fidelity 401k

However between my contributions and my employers I don't think I could maintain the correct ratio by using my ROTH to make up the difference. You need approximately a 4:1 ratio of S&P500 to extended market: http://www.bogleheads.org/wiki/Approximating_total_stock_market This roughly matches up...
by harikaried
Fri Oct 10, 2014 6:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help w/ approximating TSM w/ Fidelity 401k
Replies: 15
Views: 629

Re: My 30-day trial experience with Betterment

initiated a transfer of $55K .. my 100% stocks setting are something like: 17.7% US Total Stock Market 17.7% US Large-Cap Value 5.8% US Mid-Cap Value 5.0% US Small-Cap Value ... ... I invested on a down day and the market has been up since then Curious, assuming you invested on August 7th, of those...
by harikaried
Fri Oct 10, 2014 6:37 pm
 
Forum: Investing - Theory, News & General
Topic: My 30-day trial experience with Betterment
Replies: 73
Views: 8568

Re: Home Equity Line of Credit pay-off or not pay-off?

ouki wrote:The interest rate is historically low.
Maybe another way to ask the question is... would you draw more on the HELOC to invest?

Do you have any other debts? What's the interest rate on the primary mortgage?
by harikaried
Thu Oct 02, 2014 11:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Home Equity Line of Credit pay-off or not pay-off?
Replies: 6
Views: 488

Re: Would you buy a house in cash if you had enough?

I went through this recently; similar rate as well (4.05%). I opted to take the mortgage. We are in a high tax bracket and the math just made it too good to pass up. Could you explain how the math made it too good? Are you taking about taking a deduction on the interest paid? So the rate would be e...
by harikaried
Thu Oct 02, 2014 10:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Would you buy a house in cash if you had enough?
Replies: 59
Views: 4332

Re: Investing $40K of taxable savings

I have $40K sitting in my saving account that I would like to invest. In a previous post, you mentioned having $30k in emergency cash. Is this $40k the same emergency cash, i.e., if you invested it all, you would have no emergency fund? $10K - Energy ETF $10K - Health care ETF Curious, do you know ...
by harikaried
Sat Sep 27, 2014 12:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing $40K of taxable savings
Replies: 22
Views: 1670

Re: Is it bad to put 23k a yr in retirement if I only make 4

We currently keep the money separate as we have through our entire relationship and split costs. That's totally fine for now just like how my girlfriend and I split shared costs before we were married, and each covered his/her own personal expenses. It's great that you took responsibility of paying...
by harikaried
Fri Sep 26, 2014 1:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is it bad to put 23k a yr in retirement if I only make 42k?
Replies: 29
Views: 3621

Re: Is it bad to put 23k a yr in retirement if I only make 4

Please let me know if I am missing some basic flaw to my plan, as I can't seem to think of one. I think the more appropriate statements and questions would be (given that you're getting married): Is it bad to put <combined retirement contribution> a yr in retirement if we make <combined income>? We...
by harikaried
Fri Sep 26, 2014 2:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Is it bad to put 23k a yr in retirement if I only make 42k?
Replies: 29
Views: 3621

Re: Trying to understand Uber and similar "ride sharing" ser

Think of it more as an on-demand limo service than hailing a taxi. There's a bunch of niceties handled by the app of not needing to figure out payments or tips and how long it'll take to get picked up, etc. (Note: I haven't used the app myself, but I've been on rides that other people have called wi...
by harikaried
Thu Sep 25, 2014 5:40 pm
 
Forum: Personal Consumer Issues
Topic: Trying to understand Uber and similar "ride sharing" service
Replies: 54
Views: 3710

Re: inherited 500k, still a college student, how to invest??

Secondly, in terms of monthly expenses my brother and I had been receiving roughly $2500 a month from my father. Did both you and your brother receive $500k each? Or is that $500k for both you and your brother -- and is it in just your name, and you're expected to take care of some of your brother'...
by harikaried
Sun Sep 21, 2014 5:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: inherited 500k, still a college student, how to invest???
Replies: 55
Views: 5349

Re: Student Loan vs 401k dilemma

Emergency Funds: 12 Months of full living expenses Is there enough balance in a taxable account / Roth IRA or perhaps credit from an unused HELOC / credit cards that could act as various levels of emergency funds? If so, the emergency fund could probably drop to half a year or a quarter or maybe 2 ...
by harikaried
Sun Sep 21, 2014 5:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Student Loan vs 401k dilemma
Replies: 21
Views: 1485

Re: refinance to max out Fidelity 403(b)?

Current mortgage balance is $158,193.. Penfed says I can refinance to a 15 year fixed @ 3%, with a 1% origination fee & $2518 in closing costs. By refinancing, my monthly mortgage payments would be ~$365 less, & I'd be able to max out the 403(b). The upfront costs is ~$4100 and 12 months of...
by harikaried
Sun Aug 31, 2014 9:48 am
 
Forum: Investing - Help with Personal Investments
Topic: refinance to max out Fidelity 403(b)?
Replies: 9
Views: 414

Re: Where to invest $100,000 this week

What would you do if you spent $100 less (on say food/gas) last month and now have $100 to save/invest?
by harikaried
Thu Aug 28, 2014 8:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where to invest $100,000 this week
Replies: 14
Views: 1944

Re: FYI, PenFed offering 0.0% new car loans

Why would even a consumer-friendly credit union offer zero percent? This has to cost them SOMETHING. It gets people interested in PenFed. We actually ended up with a 0.9% rate with PenFed through their car buying service when we happened to buy in the few months they no longer offered 0%. :oops: I ...
by harikaried
Wed Aug 27, 2014 12:26 am
 
Forum: Personal Finance (Not Investing)
Topic: FYI, PenFed offering 0.0% new car loans
Replies: 15
Views: 1898

Re: Suggestion: A 'Best Of Bogleheads Posts' Sub-Forum

How do you sort by view count? Is there a sort button somewhere I am overlooking? Yeah, it's hard to find as it's at the very bottom of the page. Just below the blue border surrounding the list of topics, there's a few dropdown menus with a "Go" button. Display topics from previous: [All ...
by harikaried
Tue Aug 26, 2014 2:40 pm
 
Forum: Forum Issues and Administration
Topic: Suggestion: A 'Best Of Bogleheads Posts' Sub-Forum
Replies: 12
Views: 4269

Re: HELOC + Margin = $200k to play with

Wait, now I'm confused. What if we used $100k @ 2.25% HELOC, $100k @ 3% margin, $20k @ 20% credit card cash advance. ($100k * 2.25% + $100k * 3% + $20k * 20%) / ($100k + $100k + $20k) = 4.2% weighted interest rate It seems that Gambler would go ahead and take all 3 loans assuming this 4.2% interest ...
by harikaried
Fri Aug 22, 2014 12:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: HELOC + Margin = $200k to play with
Replies: 24
Views: 1848

Re: Smartest way to fund new car purchase?

0% interest on car loans at Pentagon Federal Credit Union http://www.penfed.org. I would recommend you check out the car buying service: https://www.penfed.org/PenFed-Car-Buying-Service/ For a Double Cab, 4X4/Long Bed/V6/Automatic, you should be able to get it with no hassle for ~$27,924 ($1346 off...
by harikaried
Sun Aug 17, 2014 12:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Smartest way to fund new car purchase?
Replies: 20
Views: 1562

Re: Mortgage Prepayment Question

Assuming the rate is 8.26% currently with $125k left in principal, the monthly payments is roughly $1441. This could work if the loan was originally for $191,700 30-yr fixed from 19 years ago. And with that timeframe, the interest rate matches up. Assuming $100k principal payment, that would leave $...
by harikaried
Tue Jul 22, 2014 9:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Prepayment Question
Replies: 43
Views: 3220

Re: Mortgage Prepayment Question

Actually, I don't think you are telling us the truth; the principal amount went up 3, the interest amount down 4. So let's use the interest instead of the principal. 12 x (4/581) = 8.3% Something isn't right with your numbers. I ran into similar issues when calculating the interest rate and princip...
by harikaried
Tue Jul 22, 2014 9:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Prepayment Question
Replies: 43
Views: 3220

Re: Divesting Stock with Sentimental Value

If you don't directly need this money for yourselves or children, you could donate it to a Donor Advised Fund and name it in memory of spouse's parent or whatever you want to call it. You can take the tax deduction while choosing to support nonprofits your wife or your wife's parent would have wante...
by harikaried
Sat Jul 19, 2014 12:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Divesting Stock with Sentimental Value
Replies: 39
Views: 2022

Re: Help with setting up Fidelity solo-401k

You'll also be filling out an "Account Application" in addition to that "Adoption Agreement." https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/se-401k-application.pdf That form explicitly says: All forms must contain your Employer Tax ID number. Do not use your ...
by harikaried
Fri Jul 18, 2014 3:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with setting up Fidelity solo-401k
Replies: 14
Views: 876

Re: Who else hates choosing a car?

I was heavily looking at subaru's, but I live in coastal virginia where snow isn't too rampant A quick search says Norfolk has above average number of days of precipitation, although I'm not really sure how hard it rains when it does rain. AWD is useful whenever you need to accelerate in slippery s...
by harikaried
Fri Jul 18, 2014 2:41 pm
 
Forum: Personal Consumer Issues
Topic: Who else hates choosing a car?
Replies: 95
Views: 8478

Re: Does this loan repayment schedule make sense?

You save the most interest the earlier you put a large amount of money towards the principal. Another way to look at this is how much do you want to end up paying in interest? I made up some numbers that seem to be close to yours: $14k loan at 3.5% for 66 months = $233/mo minimum payments with total...
by harikaried
Fri Jul 18, 2014 2:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does this loan repayment schedule make sense?
Replies: 9
Views: 477

Re: POLL: Do you have a dedicated REIT allocation?

We had 10% in REIT until end of 2012 when we simplified to: age in bonds - 10, bonds = 1 total bond : 1 tips, equities = 2 us : 1 intl. Maybe someday we'll just do age in bonds to remove another "10."
by harikaried
Fri Jul 18, 2014 1:43 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 7788

Re: Ways to lose money and destroy personal wealth by invest

Valuethinker wrote:investing decisions made for primarily tax related reasons
I've heard people say "Don't let the tax tail wag the dog," but are there examples of doing/not-doing something purely for tax reasons?

Perhaps something like never rebalancing if you only had taxable investments?
by harikaried
Thu Jul 17, 2014 3:50 pm
 
Forum: Investing - Theory, News & General
Topic: Ways to lose money and destroy personal wealth by investing
Replies: 81
Views: 9761

Re: $32k Subaru Outback or $14k Mitsubishi Outlander Sport

The 2015 should have higher resale value since a year newer so the initial cost difference probably is made up in the end. Loan rate 1.9% (emphasis mine) You can get your own 0% 36-mo loan and bring the check. That's how PenFed's Car Buying Service works: https://www.penfed.org/PenFed-Car-Buying-Se...
by harikaried
Wed Jul 16, 2014 8:04 pm
 
Forum: Personal Consumer Issues
Topic: $32k Subaru Outback or $14k Mitsubishi Outlander Sport
Replies: 46
Views: 5283

Re: Paperwhite for Cloudy-Day Reading

Well, after reading all these posts, its sounds like Paperwhite is a no-brainer. I will check it out for myself at Best Buy. How soon did you want to get it? The previous versions came out October 2012 then the current one September 2013. http://en.wikipedia.org/wiki/Amazon_Kindle#Kindle_Paperwhite...
by harikaried
Wed Jul 16, 2014 6:55 pm
 
Forum: Personal Consumer Issues
Topic: Paperwhite for Cloudy-Day Reading
Replies: 21
Views: 1885

Re: Man turned $2 m into 187 million and gave it away

wrysys wrote:turned a $2m inheritance into 187 million over 60 years
(187 / 2) ^ (1 / 60) = 7.86% annual growth

S&P 500 60 years ago was around $22 and today $1973, so 7.78% annual growth, so 8 basis points less.

Does this mean he could manage a fund with 0.08% expense ratio to get the same results?
by harikaried
Wed Jul 16, 2014 1:02 am
 
Forum: Investing - Theory, News & General
Topic: Man turned $2 m into 187 million and gave it away
Replies: 7
Views: 2649

Re: Should I buy a new(er) car, and if so what?

Before you plunk down money on a new car, go to the electronics store ASAP and treat yourself to a wonderful new stereo deck with USB port and auxiliary audio. This will cost you less than $200. Oh neat! I just did a quick search on Amazon for car stereos with bluetooth: Electronics : Car & Veh...
by harikaried
Wed Jul 16, 2014 12:36 am
 
Forum: Personal Consumer Issues
Topic: Should I buy a new(er) car, and if so what?
Replies: 19
Views: 2387

Re: $32k Subaru Outback or $14k Mitsubishi Outlander Sport

I've been planning to buy a 2015 Subaru Outback Limited with eyesight for a while Any particular reasons for the Limited instead of Premium? You can get EyeSight (+ Blind-Spot Detection & Rear Cross-Traffic Alert + Power Rear Gate) on the Premium for $29,540 if you want to shave off a few thous...
by harikaried
Wed Jul 16, 2014 12:11 am
 
Forum: Personal Consumer Issues
Topic: $32k Subaru Outback or $14k Mitsubishi Outlander Sport
Replies: 46
Views: 5283

Re: Should I buy a new(er) car, and if so what?

1) I'm in my car A LOT. 2 hrs a day, 21 work days a month, 12 months a year -- we're talking like 3 weeks of every year I spend commuting. It'd be nice to spend all that time in a car that's a little nicer than my ole Civic--which is beginning to look a little shabby. Are you looking for comfort fo...
by harikaried
Tue Jul 15, 2014 9:00 pm
 
Forum: Personal Consumer Issues
Topic: Should I buy a new(er) car, and if so what?
Replies: 19
Views: 2387

Re: New $35000 to Roth IRA - Dollar Cost Averaging???

No, $35K was in other funds which charge me 2% and such for management, etc. If you still had the money at the 457B and today they announced your ideal 75% stock ETF and 25% bond ETF with 0% expense ratio, would you sell all your funds to cash then incrementally buy the new funds over 6 months whil...
by harikaried
Tue Jul 15, 2014 8:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: New $35000 to Roth IRA - Dollar Cost Averaging???
Replies: 13
Views: 1030

Re: New $35000 to Roth IRA - Dollar Cost Averaging???

bruingent wrote:my previous 457B plan has bad funds. So I did the roth conversion.
Meaning that $35k was sitting as cash in the 457B?
by harikaried
Tue Jul 15, 2014 7:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: New $35000 to Roth IRA - Dollar Cost Averaging???
Replies: 13
Views: 1030

Re: Debt payoff plan opinions

You don't have to cash out the 11k in your taxable when you refinance. You can do the full 22k (or whatever is left). Right. You can refinance right now to get a $22k loan @ 1.49% 36mo would result in ~$600/mo payments. Earlier we calculated that even when you max out your 401k, you would have $210...
by harikaried
Tue Jul 15, 2014 2:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Debt payoff plan opinions
Replies: 53
Views: 3304

Re: Debt payoff plan opinions

how much of a hassle is it to refinance a vehicle. At least with PenFed, you can do all the application online. You specify that you're looking to refinance an auto loan, put in the terms you want (how much, how long), provide some information about the vehicle and current loan. Once approved, you'...
by harikaried
Mon Jul 14, 2014 5:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Debt payoff plan opinions
Replies: 53
Views: 3304
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