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Re: Can estimated tax replace withholding?

Could whoever does get the trust assets after the man dies question this as seeming to be a scam to divert assets to his wife? (I mean if the taxes are being withheld from paychecks and they also are sending in "estimated" (over) payments and then saying the refund belongs to the wife) Wha...
by jeffyscott
Sun Sep 07, 2014 12:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can estimated tax replace withholding?
Replies: 11
Views: 670

Re: Proportion of Roth to Traditional contributions

I would check this great article out: http://thefinancebuff.com/case-against-roth-401k.html While there are certainly tax diversification benefits to a little Roth with your traditional 401(k), I for one go 100% traditional for the reasons in that article. It's the difference between marginal (now)...
by jeffyscott
Sun Sep 07, 2014 11:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Proportion of Roth to Traditional contributions
Replies: 16
Views: 1112

Re: 50-50 Wellesley-Wellington or Total Bond-Total Stock

Note that Wellington and Moderate Growth have similar ERs (0.18% vs 0.16%) so it is unfair to say that Wellington's ER is high. Yep, you basically get the manager for free or maybe 9 or so basis points, if you compare to balanced index admiral. Some see having a fund manager as a negative. I just s...
by jeffyscott
Sun Sep 07, 2014 11:23 am
 
Forum: Investing - Theory, News & General
Topic: 50-50 Wellesley-Wellington or Total Bond-Total Stock
Replies: 68
Views: 5369

Re: 50-50 Wellesley-Wellington or Total Bond-Total Stock

The indexes are just their performance benchmarks.
by jeffyscott
Sat Sep 06, 2014 10:59 pm
 
Forum: Investing - Theory, News & General
Topic: 50-50 Wellesley-Wellington or Total Bond-Total Stock
Replies: 68
Views: 5369

Re: Poll: Cash Holdings

I think the OP really wants to know how many people hold significant fractions of their true portfolio assets in CDs and savings accounts or money market funds or something effectively the same as that. The answer appears to be that about a third of the respondents hold 10% or more in cash and two-...
by jeffyscott
Sat Sep 06, 2014 9:16 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3617

Re: Bonus - Where to apply it?

My 401k is through Fidelity. I can make additional payments electronically at any time as long as it is more than the set biweekly payment that comes directly out of my check... So any time I want to make an extra payment it has to be at least $113. The interest rate is 5.25%. The double tax does m...
by jeffyscott
Sat Sep 06, 2014 5:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Bonus - Where to apply it?
Replies: 18
Views: 1568

Re: Bonus - Where to apply it?

But does the benefit of saving on interest out weight the risks and potential loss of gains with borrowing from a 401k? Well, you might avoid a loss, too. Would you borrow at 6.8% in order to invest in the 401k? Because it seems to me that's what you're doing. It is worth paying 6.8% to get the mat...
by jeffyscott
Sat Sep 06, 2014 2:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Bonus - Where to apply it?
Replies: 18
Views: 1568

Re: Bonus - Where to apply it?

Thank you all. The $4000 is my estimate of what I will receive after taxes. My plan does allow me to contribute and get the company match while I am repaying my loan. I will start the contributions back up immediately. Maybe then you should contribute enough to get the maximum match, but also borro...
by jeffyscott
Sat Sep 06, 2014 11:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Bonus - Where to apply it?
Replies: 18
Views: 1568

Re: Poll: Cash Holdings

So it seems to me that a series I savings bond that is more than five years old is more cashlike than a CD is. And even after just 1 year, it is at least equally cash-like. I-bonds that are less than a year old might be questioned but that would not have changed my answer, it would still be 24-34%....
by jeffyscott
Sat Sep 06, 2014 11:35 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3617

Re: Poll: Cash Holdings

Financial dictionary, first definition of Cash: The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances. Cash equivalents on balance sheets include securitie...
by jeffyscott
Sat Sep 06, 2014 9:29 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3617

Re: Poll: Cash Holdings

I have chosen to count series I savings bonds, money market mutual funds, and short term bond mutual funds, as "cash." There have been several similar replies. Savings bonds, CDs and short term bond mutual funds are not normally classified as cash, but as bonds. If you change the definiti...
by jeffyscott
Sat Sep 06, 2014 9:18 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3617

Re: 50-50 Wellesley-Wellington or Total Bond-Total Stock

If those are the only choices, I'd take the W-W as the totals do not have any foreign stock. But I am also not opposed to managed fund, just to high expenses. But for my spouse, I have suggested the following simplified portfolios (with the target being about 30-40% stock) should become incompetent ...
by jeffyscott
Sat Sep 06, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: 50-50 Wellesley-Wellington or Total Bond-Total Stock
Replies: 68
Views: 5369

Re: Long Term Care Insurance

I think retirement income should be a factor, not just assets. Say a couple will have $50K from pensions and $40K from SS, plus $1 million in retirement assets. If they normally live on $60K, suppose one of them were to go to assisted living at a cost of $50K, while the other might live on a bit les...
by jeffyscott
Sat Sep 06, 2014 8:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 4
Views: 623

Re: Proportion of Roth to Traditional contributions

It's all about the tax rates. I never had to be concerned about anything higher than 25% bracket and in retirement we will be in the 15% bracket (though, some retirement income may effectively be taxed at higher rates due to SS, but that would still mostly be less than 25%). Because of that I now do...
by jeffyscott
Sat Sep 06, 2014 8:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Proportion of Roth to Traditional contributions
Replies: 16
Views: 1112

Re: Bonus - Where to apply it?

Can you contribute to the 401K and get the match while you have a loan? If it does not affect you ability to get the match, then paying off the 401K loan makes no sense, that is money you will be paying back to yourself, so effectively 0% interest rate. (Assuming I understand how those loans work) I...
by jeffyscott
Sat Sep 06, 2014 8:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Bonus - Where to apply it?
Replies: 18
Views: 1568

Re: New 2% cash back Mastercard from Citi

Actually, the Visa is a 2% cash back card as well, except for the first 15,000 points. The difference between 2% and 1.5% on the first 15,000 points is equivalent to $75. I use the Visa for everything, and just think of it as being 2% unlimited cash back for all purchases, but with a $75 annual fee...
by jeffyscott
Sat Sep 06, 2014 7:45 am
 
Forum: Personal Finance (Not Investing)
Topic: New 2% cash back Mastercard from Citi
Replies: 195
Views: 19735

Re: Lawnmower/gas issues

I just don't buy that it is the ethanol in the gas. gasahol has been around for years, and if it was causing premature implosions of lawn mowers it would be a major story. dirt in the lines is not about the alcohol in the gas. I guess the ethanol can cause some water. I never put stabilizer in my t...
by jeffyscott
Fri Sep 05, 2014 6:02 pm
 
Forum: Personal Consumer Issues
Topic: Lawnmower/gas issues
Replies: 48
Views: 2019

Re: Best Credit Card Promos 2014

P&C actuary wrote:Citi sent an offer for Double cash. 1% on purchase and 1% as bills are paid, either in full or over time. Of course I would pay in full. Anyone have this card? 2% would top my Cap One 1.5%.


viewtopic.php?f=2&t=145785
by jeffyscott
Thu Sep 04, 2014 4:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best Credit Card Promos 2014 *Updated*
Replies: 36
Views: 13684

Re: Help Please: Retirement plan vs. Higher Salary

Thank you everyone for their comments, they have really helped out. One thing I want to make sure people understand is that if I do not take the MPP, they do not offer any other type of retirement fund. Some people seem to think that I can still have a 401k and contribute the max of 17.5k/year. So ...
by jeffyscott
Tue Sep 02, 2014 5:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Please: Retirement plan vs. Higher Salary
Replies: 35
Views: 3031

Re: Cellphone for trip to Ireland

We bought a phone that we had to set up ourselves in Germany for $10 euro last year. But, there was another one I asked about that was 20 euro and was told with that one the difference was the store clerk would set it up. I'd also researched this option, but decided against it (thought it was over p...
by jeffyscott
Mon Sep 01, 2014 6:41 pm
 
Forum: Personal Consumer Issues
Topic: Cellphone for trip to Ireland
Replies: 11
Views: 868

Re: Wifi phone calls vs Ooma

Generally, wifi (i.e. wireless) isn't as fast or reliable as wired. Most people probably run ooma over wires, so it's like asking wireless vs wires, and generally wires win. Ooma (and I assume any VOIP) is better using modem to Ooma to router set up, rather than Ooma being just another connection t...
by jeffyscott
Mon Sep 01, 2014 6:33 pm
 
Forum: Personal Consumer Issues
Topic: Wifi phone calls vs Ooma
Replies: 14
Views: 1543

Re: sell a 7 year old car or keep it?

Should I trade it in now while it's still worth a fair amount... That's not a reason to trade it in, unless perhaps you were interested in trading down to a less pricey, more efficient, new car. For example, if the new car you want would be a $25,000, 4 cylinder or something then it may make sense....
by jeffyscott
Mon Sep 01, 2014 6:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: sell a 7 year old car or keep it?
Replies: 16
Views: 1654

Re: Shorten Mortgage or 401K or something else

You certainly want to be sure that you can save enough to get the maximum match on 401K. The rate advantage for the 15 years sure seems attractive. That would also mean house is paid off before kid is college age. But then, higher mortgage payment with the shorter term mortgage may mean less tax def...
by jeffyscott
Mon Sep 01, 2014 3:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Shorten Mortgage or 401K or something else
Replies: 15
Views: 1055

Re: New 2% cash back Mastercard from Citi

It's their "Privileges" card, whatever that means. This is the link to the page that describes the cards that we have, including the 50% bonus: https://www.bankofamerica.com/platinumprivileges/special-pricing/credit-card.go We're in NJ; it's possible that BofA's deals vary by state. I see...
by jeffyscott
Mon Sep 01, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: New 2% cash back Mastercard from Citi
Replies: 195
Views: 19735

Re: Help Please: Retirement plan vs. Higher Salary

Ah, with the overtime, etc. the difference is probably close to $2K. Used total income of $160K and $129K, you would then be maxing out SS in both cases so no difference there. Taxcaster gives $35,000 income tax for $160K and $26,600 for $129K, with that I get a difference of about $1900 per month. ...
by jeffyscott
Mon Sep 01, 2014 3:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Please: Retirement plan vs. Higher Salary
Replies: 35
Views: 3031

Re: Help Please: Retirement plan vs. Higher Salary

Rereading this it sounds like the two options are the same job, but you get to choose the compensation package? I'm voting for option 1, I think the tax deferral advantage beats the short term delay in paying off debt. Also basing this on my estimate of the take home difference and assuming the over...
by jeffyscott
Mon Sep 01, 2014 2:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Please: Retirement plan vs. Higher Salary
Replies: 35
Views: 3031

Re: Help Please: Retirement plan vs. Higher Salary

How are you figuring take home pay? Taxcaster says federal income tax for single person with $120K income would be $24,000. Nearly all of that would also be subject to payroll tax of 7.65%, for another $9000. Maybe it is that the loan interest is deductible? Anyway, the total compensation is similar...
by jeffyscott
Mon Sep 01, 2014 1:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Please: Retirement plan vs. Higher Salary
Replies: 35
Views: 3031

Re: New 2% cash back Mastercard from Citi

The kicker is that if you choose to have your rewards automatically deposited into one of your BofA accounts, they add a 50% bonus. So it's really 4.5%, 3%, and 1.5%. I don't have a B of A account, but I thought the bonus was 10%? This says 10%: https://secure.bankofamerica.com/applynow/welcome.go
by jeffyscott
Mon Sep 01, 2014 12:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: New 2% cash back Mastercard from Citi
Replies: 195
Views: 19735

Re: Approx'ing TISM with limited fund options.

Good idea to look at Morningstar Instant X-Ray, though I think your "24% small" means you shifted all the Canada and Korea portion into only small, instead of proportionally. Still, your other two percentages are consistent with the wiki page, so that reinforces those percentages. Yeah, d...
by jeffyscott
Mon Sep 01, 2014 12:31 pm
 
Forum: Investing - Theory, News & General
Topic: Approx'ing TISM with limited fund options.
Replies: 9
Views: 617

Re: New 2% cash back Mastercard from Citi

Yeah, I'm sure that's what it's about. The key word is "may".
by jeffyscott
Sun Aug 31, 2014 5:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: New 2% cash back Mastercard from Citi
Replies: 195
Views: 19735

Re: Approx'ing TISM with limited fund options.

I'd play with this: http://portfolio.morningstar.com/RtPort/Free/InstantXRayDEntry.aspx?dt=0.7055475 You can look at holdings to get a starting point: Total international is 1.08% nestle while EAFE is 1.86%, so it would seem 58% EAFE would be what you want, if that is what you want to match. Total i...
by jeffyscott
Sun Aug 31, 2014 12:17 pm
 
Forum: Investing - Theory, News & General
Topic: Approx'ing TISM with limited fund options.
Replies: 9
Views: 617

Re: PPO for one spouse, High deductible plan for other spous

Can not do that anyway http://www.irs.gov/publications/p969/ar02.html#en_US_2013_publink1000204025 To be an eligible individual and qualify for an HSA, you must meet the following requirements. You must be covered under a high deductible health plan (HDHP), described later, on the first day of the m...
by jeffyscott
Sun Aug 31, 2014 11:38 am
 
Forum: Personal Consumer Issues
Topic: PPO for one spouse, High deductible plan for other spouse?
Replies: 3
Views: 278

Re: New 2% cash back Mastercard from Citi

No foreign transaction fees is a plus for the Arrival card, but there are plenty of cards that don't charge foreign transaction fees, and the Arrival has an $89 annual fee. This card has no annual fee, so the breakeven is >$40,000 in annual spending. And I prefer straight cash back vs cash I have t...
by jeffyscott
Sat Aug 30, 2014 3:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: New 2% cash back Mastercard from Citi
Replies: 195
Views: 19735

Re: HEALTH INSURANCE

Kaufmanrider wrote:What is your annual catastrophic limit.


Muhtar,
This may be called the "maximum out of pocket" (MOOP) in your plan.

My employer is offering a HDHP with HSA, it's $3000 deductible, then we would pay 10% until MOOP of $5000 is reached. Coverage is 100% after reaching the MOOP.
by jeffyscott
Sun Aug 24, 2014 9:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Health Insurance
Replies: 6
Views: 932

Re: ACA INSURANCE and subsidies

My son had a mid year income change, going from about $20K per year to $25K, so I had sent him this article:

http://health.usnews.com/health-news/he ... -subsidies
by jeffyscott
Sun Aug 24, 2014 9:42 am
 
Forum: Personal Finance (Not Investing)
Topic: ACA Insurance and subsidies
Replies: 2
Views: 631

Re: Kitces - Think Twice about those Conversions

Besides, I don't think taxing money in a Roth a second time would hold up under the tax code (of course, judges may fall in line with the pols, I suppose, regardless of legal prinicples). I don't think there will ever even be any proposal to tax Roth withdrawals as income and if they did it would p...
by jeffyscott
Sun Aug 24, 2014 9:29 am
 
Forum: Investing - Theory, News & General
Topic: Kitces - Think Twice about those Conversions
Replies: 15
Views: 2976

Re: Kitces - Think Twice about those Conversions

I read this yesterday as well. I think his point is valid - IF you are converting because you think the tax code will change. However, in the category of "first world problems", I intend to do conversions after we retire before SS starts because when I hit age age 70 we will have income f...
by jeffyscott
Sun Aug 24, 2014 9:16 am
 
Forum: Investing - Theory, News & General
Topic: Kitces - Think Twice about those Conversions
Replies: 15
Views: 2976

Re: Shiller P/E nearly guaranteed to be lower in 5 years

Why? Well, the gigantic earnings slump of the financial crisis will be in the rearview, and the denominator in the equation will be considerably higher as a result. In 5 years, we could well be saying that the market is an obvious buy at prevailing prices simply due to this factor. I don't think so...
by jeffyscott
Sat Aug 23, 2014 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Shiller P/E nearly guaranteed to be lower in 5 years
Replies: 19
Views: 3422

Re: portfolio turnover

pkcrafter wrote:Similar bond funds have over 200% turnover, Fidelity and PIMCO to name two.


and some have lower turnover, Dodge and Cox income (DODIX) 38%.
by jeffyscott
Sat Aug 23, 2014 9:16 am
 
Forum: Investing - Theory, News & General
Topic: portfolio turnover
Replies: 9
Views: 953

Re: John Hussman, smart guy, should you listen to his foreca

I stopped reading him some years ago. The problem with Hussman is he continually cooked up new reasons not to buy stocks. For example March 9, 2009 (I think that was the very day of the low :?: ), he wrote: As for the stock market as a whole, I continue to view the market as undervalued, but not dee...
by jeffyscott
Wed Aug 20, 2014 9:37 am
 
Forum: Investing - Theory, News & General
Topic: John Hussman, smart guy, should you listen to his forecasts
Replies: 70
Views: 6798

Re: Defined Benefit Plan Costs?

A major issue for those in *some* state and local pension schemes is how this is all going to be paid for. Politics and accounting follies have combined to produce situations which local ratepayers and taxpayers will *not* bear going into the future-- half of their taxes, say, going on pension cost...
by jeffyscott
Wed Aug 20, 2014 9:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan Costs?
Replies: 36
Views: 1839

Re: Defined Benefit Plan Costs?

Yes but it's possible to get a feel of norms. Which are about 15% of pensionable salary (gross, employer + employee contribution) for a 1.67% pa accrual retire after 35 years scheme. Add in full CPI indexing or a higher accrual rate and you are talking 20, 25%. It's only an approximation, but it's ...
by jeffyscott
Wed Aug 20, 2014 8:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan Costs?
Replies: 36
Views: 1839

Re: Defined Benefit Plan Costs?

A DB pension with a more normal multiplier is something like at least 10-15% of payroll. If this pension really has a 3% multiplier, then the cost would be much higher as the payout would be 50-100% higher than is typical. The old Federal CSRS, with about a 2% multiplier costs 26% of payroll. FERS w...
by jeffyscott
Mon Aug 18, 2014 5:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan Costs?
Replies: 36
Views: 1839

Re: Defined Benefit Plan Costs?

Well, mine currently costs 14% of salary. The benefit is only about 1/2 of yours, 1.6% per year of service. *That* is much more normal. So after 35 years, you retire at 56% of final salary? Public sector? Is the 14% yours, the employer's or a mix? Employees pay 1/2 the 14%. The cost had been lower ...
by jeffyscott
Mon Aug 18, 2014 1:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan Costs?
Replies: 36
Views: 1839

Re: POLL: Uninsured/Underinsured Motorists Coverage?

What difference would it have been without UM/UIM coverage? My question, was supposed to be: Even if the responsible party had no insurance, what difference would UM/UIM make to those who have medical and collision coverage. Your items 1 and 2 are about which insurance company pays. While I agree t...
by jeffyscott
Mon Aug 18, 2014 1:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Uninsured/Underinsured Motorists Coverage?
Replies: 17
Views: 1043

Re: POLL: Uninsured/Underinsured Motorists Coverage?

My wife was involved with a serious accident in 2009 at which an inattentive driver crashed into her at high speed, near a stop light, from the rear resulting in her car being destroyed and the 3 cars in front of my wife damaged. The total damages totaled over $500K. The at-fault driver was well co...
by jeffyscott
Mon Aug 18, 2014 10:02 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Uninsured/Underinsured Motorists Coverage?
Replies: 17
Views: 1043

Re: Response to Shiller's "lofty" CAPE - where should it be?

If you are going to project an expected value for an investment in the S&P over the next ten years, simply inverting the CAPE and multiplying by 10 is a very good place to start. So 10 X 1/25 = 0.40, and I should expect the value to be 40% of my investment for a 60% loss? I assume he meant to s...
by jeffyscott
Mon Aug 18, 2014 9:56 am
 
Forum: Investing - Theory, News & General
Topic: Response to Shiller's "lofty" CAPE - where should it be?
Replies: 3
Views: 840

Re: Defined Benefit Plan Costs?

Well, mine currently costs 14% of salary. The benefit is only about 1/2 of yours, 1.6% per year of service.
by jeffyscott
Mon Aug 18, 2014 8:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan Costs?
Replies: 36
Views: 1839

Re: Europe travel: best card for ATM cash

LeeMKE wrote:(I don't carry a debit card with access to our bank accounts.)


Why not get one, so that you are not paying credit card interest on cash advances?

You may still have ATM fees, though, depending on your bank and the ATM.
by jeffyscott
Sat Aug 16, 2014 3:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Europe travel: best card for ATM cash
Replies: 33
Views: 1993

Re: Market valuation analysis

At NO time, NEVER, did the value of VTSAX drop below where it was in 1997, so buying stocks when PE10 was near 30 (let alone holding stocks that you bought years before even cheaper) doesn't seem like a terrible decision... You never got a chance to buy back in cheaper. You assume that the alternat...
by jeffyscott
Sat Aug 16, 2014 2:56 pm
 
Forum: Investing - Theory, News & General
Topic: Market valuation analysis
Replies: 36
Views: 1731
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