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Re: Yen almost @ 109 to the dollar

It's non-trivial to strip out the effect of the tax increase because it didn't apply to everything, but in terms of gross consumer prices (what the CPI is supposed to measure, after all) it seems pretty obvious that the target has been overshot, enough to push the government into damage-control mod...
by market timer
Fri Sep 19, 2014 6:26 am
 
Forum: Investing - Theory, News & General
Topic: Yen almost @ 109 to the dollar
Replies: 8
Views: 890

Re: What Book Are You Currently Reading? Part V

Couldn't put down Flash Boys until it was finished. Fantastic storytelling from Michael Lewis. Once again sticking with the free material on Kindle Unlimited, I've just started The Good Earth, by Pearl S. Buck.
by market timer
Thu Sep 18, 2014 12:42 pm
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3354
Views: 1149827

Re: Trying to understand taxes in retirement, correct me

Depends on where you live and what your expectations are. I've paid for assisted living in three states and it was about $100,000/year/person. It's a lot cheaper in other parts of the country, but my three states were in low and high cost of living areas. I wonder if this is good value for one's sa...
by market timer
Wed Sep 17, 2014 12:19 am
 
Forum: Investing - Theory, News & General
Topic: Trying to understand taxes in retirement, correct me
Replies: 11
Views: 1016

Re: Good hobby for a bright/obsessive 9 year old?

Interesting to see so many comments about ham radio. I have never looked into the field, but it seems like it is a precursor to today's social media: Twitter, Facebook, blogging, etc. Is there any point to using ham radio today when social media exist?
by market timer
Wed Sep 17, 2014 12:06 am
 
Forum: Personal Consumer Issues
Topic: Good hobby for a bright/obsessive 9 year old?
Replies: 73
Views: 2984

Re: Is FEIE pro-rated in year of retirement

plats wrote:You may be able to squeeze out some more write-offs using the foreign housing exclusion or deduction.

I looked into that, but didn't spend nearly enough on rent to qualify.
by market timer
Mon Sep 15, 2014 7:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Is FEIE pro-rated in year of retirement
Replies: 7
Views: 322

Re: Is FEIE pro-rated in year of retirement

Makes sense, thanks.
by market timer
Mon Sep 15, 2014 5:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Is FEIE pro-rated in year of retirement
Replies: 7
Views: 322

Re: Can You Build Your Retirement Portfolio Young, then Coas

That's the course I've taken. There are many advantages to this approach. Most important for me is the ability to spend time with family. The places in the US where a young person can earn enough to save $100K+/year are outrageously expensive, to the extent that many of your coworkers will have mill...
by market timer
Mon Sep 15, 2014 3:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Can You Build Your Retirement Portfolio Young, then Coast?
Replies: 54
Views: 6165

Re: Is FEIE pro-rated in year of retirement

This is good news, thanks. So, I'm planning to convert part of my 401K to a Roth this year without paying any taxes. It looks like I'll be eligible to convert the full standard deduction and personal exemption for MFJ with one child: $24,250. $120K income +$24K Roth conversion -$99K FEIE -$16K 401K ...
by market timer
Mon Sep 15, 2014 12:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Is FEIE pro-rated in year of retirement
Replies: 7
Views: 322

Is FEIE pro-rated in year of retirement

If you work a partial year in the US and partial year overseas, I know the Foreign Earned Income Exclusion (FEIE) is pro-rated that year. What if you work a partial year overseas and retire overseas? To put some numbers to this, suppose one earns $120K overseas in the first seven months of the year,...
by market timer
Sun Sep 14, 2014 10:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is FEIE pro-rated in year of retirement
Replies: 7
Views: 322

Re: What Book Are You Currently Reading? Part V

Just finished Boomerang, by Michael Lewis. Will read his Flash Boys next. These are available for free with the Kindle Unlimited subscription (first month of subscription is free).
by market timer
Sun Sep 14, 2014 12:23 pm
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3354
Views: 1149827

Re: Suggestions /Advice for a fresh college graduate

I would suggest taking the $175K out of his 529, paying a 10% fee, and using the remaining $157.5K to buy a 3BR house in cash in Florida. He can rent out the other rooms while he is still young to bring in some income, have a starter home paid-off for when he has kids, and would be about half-way to...
by market timer
Sat Sep 13, 2014 4:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Suggestions /Advice for a fresh college graduate
Replies: 29
Views: 1435

Re: Citi: Just use leverage for 10% bond returns

Setting aside the dubious cherry picking of sample period (2011-2014) and ignoring the forward curve, I really have to wonder, what pension fund invests everything in only one asset class? We recently had a long thread on here about leveraging Wellesley. At least that has some merit based on MPT.
by market timer
Wed Sep 10, 2014 1:51 am
 
Forum: Investing - Theory, News & General
Topic: Citi: Just use leverage for 10% bond returns
Replies: 28
Views: 2922

Re: Rather macabre but necessary question

Agree with those who suggest taking SS early. Your insurance against living longer is simply the fact that you don't have to draw down as much from your nest egg. Anyone with shorter than average life expectancy should opt for early SS. I'll just add one thing to consider, as a recent retiree. Havin...
by market timer
Tue Sep 09, 2014 9:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rather macabre but necessary question
Replies: 72
Views: 5347

Re: [Helping someone] think like a rich person

A few ideas to get her or anyone thinking more like a rich person: 1. Suggest she visit this forum 2. Learn the difference between investing and speculating 3. Keep appropriate records for assets and liabilities, update monthly 4. Base decision-making on maximizing net worth 5. Understand withdrawal...
by market timer
Mon Sep 08, 2014 9:59 am
 
Forum: Personal Finance (Not Investing)
Topic: [Helping someone] think like a rich person
Replies: 40
Views: 4148

Re: Drawing down a windfall...

You say your net worth is $4.7mn. Let's add another $2mn in future earnings (present value), conservatively assuming you lose this job and can earn about $100K/year for 20 years. I think you can sustainably spend 3% of that $6.7mn, or roughly $200K/year (pre-tax). Feel free to tweak these assumptions.
by market timer
Sun Sep 07, 2014 9:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Drawing down a windfall...
Replies: 55
Views: 4079

Re: Graduating Debt-Free, or with Elite College Degree?

By the time your kids enter college, I think education will look very different. Hopefully, it will be much cheaper. As for your question, I think it depends on the student. Certain career tracks are all but off limits for non-elite college grads.
by market timer
Thu Sep 04, 2014 11:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Graduating Debt-Free, or with Elite College Degree?
Replies: 92
Views: 4811

Re: Thailand/Cambodia Travel Recommendations

It's a bit more travel than I'd like to pack into 8 days. I'd replace one of Siem Riep or Chiang Mai with a day at a beach for variety, otherwise you'll spend all your time looking at temples. Hua Hin is a 2hr bus ride from Bangkok. Ko Samui, Ko Chang, and Phuket are a short flight from BKK.
by market timer
Thu Sep 04, 2014 12:36 am
 
Forum: Personal Consumer Issues
Topic: Thailand/Cambodia Travel Recommendations
Replies: 22
Views: 1346

Re: What Movie Have You Recently Watched?

Saw Boyhood in a theater in Bangkok last night. Felt quite a bit of homesickness, both in the sense of time and place, as an American expat with a younger brother roughly the age of the protagonist. Felt much nostalgia from the past decade; for example, one scene reminded me clearly of when my littl...
by market timer
Wed Sep 03, 2014 1:29 am
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 105
Views: 4360

Re: Overseas Retirement

My personal opinion is that, for the most part, when you include ALL costs, it is just as cheap or cheaper to live in an inexpensive part of the USA than it is to live abroad. There are many other reasons to live abroad, of course. And it's true that, for me, my life is more interesting and active ...
by market timer
Tue Sep 02, 2014 2:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Overseas Retirement
Replies: 7
Views: 1101

Re: What Movie Have You [Recently] Watched?

Haven't watched many movies this year, maybe only three so far. Most recent was Chungking Express, a 1994 Hong Kong movie. I enjoyed it and it's free on youtube.

Looking forward to watching Boyhood in the theater this week.
by market timer
Mon Sep 01, 2014 8:44 pm
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 105
Views: 4360

Re: How to become a millionaire retiree -- then and now

Does anybody remember the starting salary of Michael Lewis at Salomon Brothers in 1986 as noted in his book Liar's Poker ? $48K/yr as an associate in 1985. http://www.cbsnews.com/news/what-is-michael-lewis-worth-today/ That's worth $106K/yr today. For reference, that's what first-year analysts (fre...
by market timer
Sun Aug 31, 2014 11:26 pm
 
Forum: Investing - Theory, News & General
Topic: How to become a millionaire retiree -- then and now
Replies: 67
Views: 9850

Re: Only need $315k non-retirement $ to retire at Age 43?

If you neglect the penalties by taking money out early from the 401(k) -- worst case you run completely out of the $715k by around age 68. OP should start converting the IRA to a Roth the first year he is retired. I believe after five years, these converted funds can be withdrawn tax-free and penal...
by market timer
Fri Aug 29, 2014 2:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5301

Re: Only need $315k non-retirement $ to retire at Age 43?

I could probably buy into the $15k SS payment 20 years down the road -- which is roughly $690 per month in todays dollars. Can the OP live on $690 per month today. If not where is the other money coming from for retirement, as the $300k will surely be gone in 20 years, at age 63? Is there some othe...
by market timer
Fri Aug 29, 2014 1:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5301

Re: Only need $315k non-retirement $ to retire at Age 43?

As noted above, you need to adjust for inflation. That said, I think $400K in retirement accounts and $315K in taxable is actually enough for a 43-year-old single person to retire to a modest standard of living (~$30K/year), assuming one is eligible for Social Security. Keep in mind, you'll likely ...
by market timer
Thu Aug 28, 2014 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5301

Re: If you had an extra $100,000

I'd put it in a high yield savings account and add it to the down payment on my next house.
by market timer
Thu Aug 28, 2014 12:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: If you had an extra $100,000
Replies: 68
Views: 7187

Re: Only need $315k non-retirement $ to retire at Age 43?

As noted above, you need to adjust for inflation. That said, I think $400K in retirement accounts and $315K in taxable is actually enough for a 43-year-old single person to retire to a modest standard of living (~$30K/year), assuming one is eligible for Social Security. Keep in mind, you'll likely g...
by market timer
Thu Aug 28, 2014 12:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5301

Re: What Book Are You Currently Reading? Part V

The Moviegoer, Walker Percy
by market timer
Wed Aug 27, 2014 11:51 am
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3354
Views: 1149827

Re: Family loan implications

Why are people suggesting making a gift out of the loan? If the brother did not pay back his loan, it seems to me the parents should at least try to get a tax break from the loss. Because he's their son. As you point out in your first post the IRS may consider the forgiven loan as income, and maybe...
by market timer
Wed Aug 27, 2014 12:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Family loan implications
Replies: 12
Views: 652

Re: Family loan implications

Why are people suggesting making a gift out of the loan? If the brother did not pay back his loan, it seems to me the parents should at least try to get a tax break from the loss.
by market timer
Wed Aug 27, 2014 12:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Family loan implications
Replies: 12
Views: 652

Re: Family loan implications

I'm not an accountant, but it sounds like in the worst case your parents would write it off as uncollectable debt and your brother would claim it on his taxes as cancellation of debt. In your parents' case, this would be a tax deduction. In your brother's case, it would be considered taxable income ...
by market timer
Tue Aug 26, 2014 11:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Family loan implications
Replies: 12
Views: 652

Re: Purchasing I bond vs. paying off student loan

This is a relatively small loan balance, so I can see the rationale for going ahead and paying it off. On the other hand, it is a fairly straightforward matter to construct a risk-free arbitrage against this loan (assuming it still has a long maturity) using a combination of comparable duration Trea...
by market timer
Tue Aug 26, 2014 9:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Purchasing I bond vs. paying off student loan
Replies: 19
Views: 1051

Re: What are you up YTD?

I'm almost entirely in cash right now, but am up just over 20% ytd, mostly from Treasuries.
by market timer
Tue Aug 26, 2014 12:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: What are you up YTD?
Replies: 101
Views: 7804

Re: Telling my friends I paid off my house was a mistake.

I don't see the harm in OP's friends' comments. Not many people make a serious goal out of financial independence, and I believe that many are curious to learn more about this alternative lifestyle. Asking OP why he doesn't downsize to buy a boat might just be a way of asking him to explain more abo...
by market timer
Tue Aug 26, 2014 12:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Telling my friends I paid off my house was a mistake.
Replies: 73
Views: 10314

Re: What 5 stocks can I own forever?

GOOG
BRK-A/B
GE
JNJ
XOM
by market timer
Mon Aug 25, 2014 12:02 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4545

Re: Zegna Suits

I've only been to a few weddings, but isn't the groom supposed to wear a tux? Anyhow, my two cents -- you should spend money on what you value.
by market timer
Sun Aug 24, 2014 11:09 pm
 
Forum: Personal Consumer Issues
Topic: Zegna Suits
Replies: 197
Views: 9489

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

Gambler wrote:and Tanelorn, how did u get 2.63%?
I'd do it in a heart beat if leveraging $200k is just going to cost 2.63% :moneybag

How many dollars in interest will you pay to borrow $200K for one year?
by market timer
Thu Aug 21, 2014 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: HELOC + Margin = $200k to play with
Replies: 24
Views: 1777

Re: Using Credit Card to Pay Off Student Loans

My plan is to aggressively pay down the loan over the next 5 months. I have a credit card that is 0% APR until September 2015. Would I be crazy to use the card to pay off the $8,000 now and then just pay off the credit card over the next 5 months instead, saving the 6.8% interest on the loan? Seems...
by market timer
Thu Aug 21, 2014 8:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Using Credit Card to Pay Off Student Loans
Replies: 24
Views: 1149

Re: Case Story/Plan: "Bank on yourself" to pay student loan.

I ran the numbers, and 'pay the minimum' saved about $1000 over 25 years, compared to the scenario of a modest increase in salary. Tax rate on the forgiveness was assumed at 15% marginal (this person does not have enough assets to retire prior to the forgiveness). The downsides of forgiveness inclu...
by market timer
Thu Aug 21, 2014 4:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Case Story/Plan: "Bank on yourself" to pay student loan.
Replies: 12
Views: 1991

Re: Case Story/Plan: "Bank on yourself" to pay student loan.

From the info you've given, I'd be more inclined not to pay anything beyond the minimum on the loans. If, in 25 years, her loans are forgiven, and if that is a taxable event, the taxes are likely to be very low. She'll be in her mid 60s by then, perhaps retired, when she receives loan forgiveness. $...
by market timer
Thu Aug 21, 2014 2:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Case Story/Plan: "Bank on yourself" to pay student loan.
Replies: 12
Views: 1991

Re: Do we plunder our retirement to pay off student debt?

I hadn't considered 401k loan, but that looks like a decent option. That was the option I chose a few years ago. It is important to consider how stable is your job, and whether you'd need to pay back the loan immediately if you lost your job. I'd much rather pay, say, 4% to myself than 6.8% to a st...
by market timer
Wed Aug 20, 2014 8:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2660

Re: Do we plunder our retirement to pay off student debt?

A payment towards student loans is like an investment in risk less bonds that yield 6.8%. Which is a great yield for a risk less bond. But you don't get your principal back in the end. So you get a 6.8% return on your 23k for a few years (until they would've been paid off anyway) and then 0% return...
by market timer
Wed Aug 20, 2014 11:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2660

Re: Do we plunder our retirement to pay off student debt?

Yes, I would definitely pay down the student loan debt ASAP. Might be worth taking out a 401K loan to pay off the entire $39K.
by market timer
Wed Aug 20, 2014 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2660

Re: What Book Are You Currently Reading? Part V

COLORLESS TSUKURU TAZAKI AND HIS YEARS OF PILGRIMAGE
By Haruki Murakami
Translated by Philip Gabriel
386 pages. Alfred A. Knopf. $25.95.

Latest Murakami novel. I read just about everything he writes.
by market timer
Sun Aug 17, 2014 5:25 am
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3354
Views: 1149827

Re: Is earnings yield real or nominal

I believe E/P is considered a real yield. In fact, it is one predictor of equity real returns.
by market timer
Sat Aug 16, 2014 11:39 pm
 
Forum: Investing - Theory, News & General
Topic: Is earnings yield real or nominal
Replies: 6
Views: 494

Re: Should I use margin to buy a balanced fund?

I just read that this San Diego pension fund is employing a similar strategy now: http://acrossthecurve.com/?p=15935 If this approach is growing more popular, it suggests to me that people may be growing too comfortable with 0% short term rates and a reliable, negative correlation between equities a...
by market timer
Wed Aug 13, 2014 11:04 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 322
Views: 24049

Re: $65k bonus for student loans...considering not taking it

Very interesting dilemma--definitely a sign of the crazy times we live in. I would try to find a way to receive the cash without paying the loans. If that is not possible, celia made some great points. I assume you are currently paying $3K/yr on your loan out of pocket. Is this principal or interest...
by market timer
Tue Aug 12, 2014 1:35 am
 
Forum: Investing - Help with Personal Investments
Topic: $65k bonus for student loans...considering not taking it
Replies: 30
Views: 3325

Re: Help with massive debt repayment

I'd pay off the car loans first, then invest the monthly surplus in taxable.
by market timer
Mon Aug 11, 2014 10:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with massive debt repayment
Replies: 27
Views: 2726

Re: How do you address your inlaws and being addressed?

FIL: Dr. [firstname]
MIL: Ma

Wife calls my parents by their first names.
by market timer
Sat Aug 09, 2014 1:40 am
 
Forum: Personal Consumer Issues
Topic: How do you address your inlaws and being addressed?
Replies: 84
Views: 4757

Re: Affording a 1.3 million home?

One final note -- kids are great, but can be stressful. Babies require time and money, and time, and more time. The bay area is not a low-stress place, and financial pressure makes it worse. Be careful that the purchase of an expensive house does not come at the cost of your happiness. ^ This. I'm ...
by market timer
Fri Aug 08, 2014 1:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Affording a 1.3 million home?
Replies: 105
Views: 11231

Re: Attitudes toward inheritances.

Why bequeath a lump sum? Suppose I'm moderately, but not ridiculously well off in my 70s, like net worth $1mn. Why not buy an annuity with that lump sum and give generously periodically while still alive? Then beneficiaries will be happy to see that I'm still alive, and not worry so much about wheth...
by market timer
Thu Aug 07, 2014 12:02 am
 
Forum: Personal Consumer Issues
Topic: Attitudes toward inheritances.
Replies: 113
Views: 10772
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