Search found 78 matches

by sliu
Mon Jun 20, 2022 4:09 pm
Forum: Investing - Theory, News & General
Topic: This might be a good time to go back to 2008
Replies: 22
Views: 4717

Re: This might be a good time to go back to 2008

patrick wrote: Sat Jun 18, 2022 1:05 pm Second, cash is not safe either if you account for inflation, which you should. Recent events have proven this as well.
inflation affects all assets - inflation is not a unique feature of eroding value that affects cash differently from equities/bonds/real-estate assets
by sliu
Fri Apr 03, 2015 12:01 am
Forum: Personal Investments
Topic: 401k opaque option vs self-directed brokerage
Replies: 10
Views: 1292

Re: 401k opaque option vs self-directed brokerage

The 401k and self-directed brokerage are both run through Fidelity. I'll keep an eye on the CIT but seems benchmarking may not be a worthwhile effort. For what it's worth, those using TSP would be in a similar scenario where Blackrock manages the CIT so that makes me feel a little more at ease.
by sliu
Thu Apr 02, 2015 5:07 pm
Forum: Personal Investments
Topic: 401k opaque option vs self-directed brokerage
Replies: 10
Views: 1292

Re: 401k opaque option vs self-directed brokerage

I agree that you need to get the fact sheet and make sure that these trusts are either active or passive and find out exactly low well they track the index. If the results are poor or you can't get the needed information the brokeragelink option may be a great choice. Thanks for providing the article. I feel that it is difficult to benchmark even to the equivalent Blackrock MF/iShare ETFs. The CIT lags active/indexed MF and active/indexed ETFs. What investment company runs the 401K? What, if any, funds or ETF's would be commission free to get through the brokeragelink? We use the brokeragelink option in my wife's plan to get Fidelity's Spartan index funds and I've had no complaints with that decision. The investment company says "mana...
by sliu
Thu Apr 02, 2015 4:41 am
Forum: Personal Investments
Topic: 401k opaque option vs self-directed brokerage
Replies: 10
Views: 1292

401k opaque option vs self-directed brokerage

I have a 401k with several Blackrock Trust run options which are stated as not mutual funds. My understanding is that these options are run in an active fashion and seek to track their benchmark. It is difficult to obtain any info other than top holdings. I have the ability to open a self-directed brokerage within the 401k and was considering using MF or ETFs where the prospectus info is public and transparent. The downside is that the brokerage MF and ETF is likely to have a higher ER than the opaque options. I have attempted to use equivalent MF and ETFs to compare and the 401k option appears to lag those equivalent funds from Blackrock. Yes I am aware that past performance doesn't guarantee future returns, but it is odd that an instituti...
by sliu
Tue Mar 10, 2015 4:33 pm
Forum: Personal Investments
Topic: How to invest $400 in Vanguard Retirement 2060?
Replies: 23
Views: 2994

Re: How to invest $400 in Vanguard Retirement 2060?

http://www.stockbrokers.com/feature/no-minimum-deposit
http://www.nerdwallet.com/blog/investin ... a-account/

TD Ameritrade
TradeKing
Etrade

Those are the 3 I would research towards using. All have low/no commission trades for buy and hold
by sliu
Mon Mar 02, 2015 1:27 am
Forum: Personal Investments
Topic: Is Roth conversion too late for 2014?
Replies: 8
Views: 1204

Re: Is Roth conversion too late for 2014?

The SS taxation increases taxable income by $1.5 for every $1 increase in Roth conversion, and the EITC refundable credit phase out rate is 21.06%, so the refund reduction rate of 1.5 x 21.06% = 31.6% is mathematically consistent now that I've dug into it further. It looks like there is very little headroom for Roth conversion even if SS taxation is not triggered.

Thanks for the discussion. Avoiding RMDs is not worth this tax cost from this analysis.
by sliu
Mon Mar 02, 2015 12:32 am
Forum: Personal Investments
Topic: Is Roth conversion too late for 2014?
Replies: 8
Views: 1204

Re: Is Roth conversion too late for 2014?

I'm a bit confused by the way you present the data; the way I usually analyze this type of thing is to increase/decrease income by $100 and see how much the tax due/refund changes. That tells me the marginal tax rate. For example, if I increase income by $100 by converting an extra $100 from traditional to Roth, and tax refund goes down by $15, the marginal tax rate is 15%. So then the question is whether my future marginal tax rate is likely to be less than or greater than 15%. The marginal tax rate as I understand is applied usually when taxable income is above 0. For taxable income of 0, maybe I don't understand how to apply this principle. The marginal refund rate reduction as I understand your definition, appears to be around 31.7% $1...
by sliu
Mon Mar 02, 2015 12:05 am
Forum: Personal Investments
Topic: Is Roth conversion too late for 2014?
Replies: 8
Views: 1204

Re: Is Roth conversion too late for 2014?

Appreciate the responses. I do have a follow-up question to this topic: I ran numbers and their tax scenario this year boiled down to a tradeoff between collecting the maximum refundable credit via earned income tax credit $5460, or converting portions of their traditional IRA to a Roth IRA. The "free" conversion was only $1,330 before triggering taxable social security benefits and increasing total earned income which subsequently triggered a reduction in their EITC. Here's the few scenarios run: Roth conversion----: $1,330 ---- $3,000 ---- $6,000 --- $9,000 AGI-------------------: $23,297 --- $25,802 --- $30,302 -- $34,802 ded+exemptions---: $35,753 --- $35,753 --- $35,753 -- $34,603 (deductions reducing with higher AGI) ===== E...
by sliu
Sun Mar 01, 2015 10:06 pm
Forum: Personal Investments
Topic: Is Roth conversion too late for 2014?
Replies: 8
Views: 1204

Is Roth conversion too late for 2014?

In the process of assisting my parents with their 2014 tax returns, I observed their itemized deductions exceeded their total income. This was due to social security disability benefits which were not taxable and low wages. I observed that their taxable income was 0 as a result of the itemized deductions exceeding total income. They both hold traditional IRA account which were fully funded with pre-tax dollars during earlier years of their working careers, no 401ks as those were rolled over into IRAs, and no Roth IRA accounts. A couple of questions then: 1) Is it correct that they could have done a 2014 Roth conversion of the amount which their itemized deductions exceeded the total income without triggering any taxable income? This observa...
by sliu
Wed Feb 18, 2015 10:14 am
Forum: Personal Investments
Topic: 401k: reducing expenses with BlackRock funds + VIIX
Replies: 7
Views: 1143

Re: 401k: reducing expenses with BlackRock funds + VIIX

Sorry. Yes, you are correct, there is EM already in that int'l fund but with very little small cap.
by sliu
Tue Feb 17, 2015 10:40 pm
Forum: Personal Investments
Topic: 401k: reducing expenses with BlackRock funds + VIIX
Replies: 7
Views: 1143

Re: 401k: reducing expenses with BlackRock funds + VIIX

The int'l fund does not contain emerging markets. If this is acceptable for your AA, your allocation looks correct.
by sliu
Tue Feb 17, 2015 5:50 pm
Forum: Personal Investments
Topic: 401k: reducing expenses with BlackRock funds + VIIX
Replies: 7
Views: 1143

Re: 401k: reducing expenses with BlackRock funds + VIIX

Just to be clear, you're allocating 33% of stock to int'l, which is 20% of total AA.
by sliu
Sat Feb 14, 2015 7:19 pm
Forum: Personal Investments
Topic: Vanguard LifeStrategy Growth (and other types) no Int'l bond
Replies: 9
Views: 1755

Re: Vanguard LifeStrategy Growth (and other types) no Int'l

Thank you all for the insight on Vanguard's "My Portfolio" lack of accuracy. What are some alternative to track asset allocation more accurately? Morningstar Instant X-ray? Personal Capital?
by sliu
Thu Feb 12, 2015 9:37 pm
Forum: Personal Investments
Topic: Vanguard LifeStrategy Growth (and other types) no Int'l bond
Replies: 9
Views: 1755

Vanguard LifeStrategy Growth (and other types) no Int'l bond

Hi all, I just looked at the Vanguard LifeStrategy Growth through my portfolio analysis and noticed that there are no international bond index funds held. The LS Growth fund supposedly holds 4% in international bond index, but presently it looks to be 18% US bond index and is missing 2% from the overall fund when using the portfolio analysis. Does this happen often for the all-in-1 funds? Here's the text copied from Vanguard's site directly using the "My Account" --> "Portfolio Watch" --> "Bond Analysis" --> "View domestic vs. international bond dollar/percentage breakdown by holding" links "Name Account Value Domestic bonds & bond funds Vanguard LifeStrategy Growth Fund (18%)" Thanks fo...
by sliu
Wed Dec 10, 2014 1:45 am
Forum: Personal Finance (Not Investing)
Topic: Dropping COBRA- Which Obamacare plan? Bronze or Silver?
Replies: 14
Views: 2401

Re: Dropping COBRA- Which Obamacare plan? Bronze or Silver?

My mistake, only silver plans receive subsidy cost sharing assistance, all plans allow the premium assistance to be applied to.
by sliu
Wed Dec 10, 2014 1:31 am
Forum: Personal Finance (Not Investing)
Topic: Dropping COBRA- Which Obamacare plan? Bronze or Silver?
Replies: 14
Views: 2401

Re: Dropping COBRA- Which Obamacare plan? Bronze or Silver?

FYI, bronze/catastrophic plans in 2015 DO NOT receive a subsidy even if your income level qualifies. You must choose silver to receive any subsidy. 2014 did not have this rule IIRC
by sliu
Sun Dec 07, 2014 1:23 am
Forum: Personal Finance (Not Investing)
Topic: Intuit TurboTax 2014 Basic/Deluxe $0, Premier $9.99
Replies: 49
Views: 16529

Re: Intuit TurboTax 2014 Basic/Deluxe $0, Premier $9.99

TurboTax gets props for getting their tax software out there earlier than most other vendors. Additionally the "free" for basic/deluxe is nice, but Amazon reviews show that schedule C, D, E are not supported unless Premier is purchased, which limits the features substantially IMO.

All in all, the deluxe version is good enough to estimate taxes for next year and make any last minute year end changes to address any potential tax time surprises. For some, deluxe may be good enough to handle the tax scenarios, but I am on the fence on whether Premier is worth it depending on the tax scenario complexity.
by sliu
Sat Nov 08, 2014 12:13 am
Forum: Personal Consumer Issues
Topic: When do you buy a new home computer?
Replies: 52
Views: 7292

Re: When do you buy a new home computer?

From an engineering perspective, the hardware side battery tends to be the first component to deteriorate -- usually 3 years after initial use is when the battery is noticeably lower full charge capacity. The other major hardware components which are likely to fail are (in no particular order): fan, power supply, and motherboard, and hard drive...these tend to fail anywhere between 5-10+ years from initial use. The hard drive failures are harder to recover from while a fan, power supply or motherboard failure can be replaced or fixed if desired. As for the CPU or processor, these are designed by engineers to last at least 7+ years of always powered on usage, and even after 7+ years of always powered on usage these processor units will exper...
by sliu
Tue Oct 28, 2014 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: 2015 Fed HDHP Plans
Replies: 8
Views: 3027

Re: 2015 Fed HDHP Plans

Json wrote:I've been using GEHA HDHP plan for a few years but it seems that for 2015 they have increased the Catastrophic limits (for singles) to $6k. I'm finding harder to justify staying in the plan next year particularly when Aetna has a somewhat similar plan with Catastrophic limits still at $4k.

Here are some of the details for each plan:
GeHa HDHP: https://www.geha.com/~/media/Files/Broc ... ochure.pdf
Aetna HDHP: http://aetnafeds.com/pdf/2015/2015HDHPBrochure.pdf

I'm interested in hearing others cost/benefit perspectives on these plans.
Here is the MHBP HPHP brochure:
http://www.mhbp.com/web/groups/public/@ ... 130565.pdf
by sliu
Mon Oct 27, 2014 11:10 am
Forum: Personal Investments
Topic: Health Equity HSA--New Passive Plan
Replies: 80
Views: 29815

Re: Health Equity HSA--New Passive Plan

Mark2614 wrote:Health Savings Administrators has the same one with Admiral Shares at just 0.14 expense ratio with a $45 annual fee.
Health Savings Administrators add 0.32% ER (0.08% ER per quarter) and limits per fund to 20k, effectively making the ER 0.46%.
Mark2614 wrote:So what seems better? BoA, Health Savings Administrators? Or will Health Equity be offering Vanguard Funds with low expense ratios? I know they waive the annual fee for anyone with a balance over $2,500 which I will have right away.
In your scenario, seems like BofA is the lowest cost option unless there's some hidden fees which aren't disclosed? The other 2 custodians add 0.32% (Health Savings Administrators) or 0.4% (Health Equity) overhead for the option to invest in those.
by sliu
Mon Oct 27, 2014 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Payflex HSA - Review and Investment options?
Replies: 3
Views: 2679

Re: Payflex HSA - Review and Investment options?

Just speculating, but here's a brochure for Aetna HDHP for federal employees: http://aetnafeds.com/pdf/2015/2015HDHPBrochure.pdf Scroll to the page labeled 45 (actual page is 47 of the pdf) to see the investment options through Payflex: Investment Options • Harbor Bond Fund Institutional Class • Victory Diversified Stock Fund Class A • Artisan Small Cap Fund Investor Shares • Dodge & Cox International Stock Fund • Oppenheimer Main Street Small & Mid-Cap Fund Class A • Davis New York Venture Fund Class A • Managers Intermediate Duration Government Fund • JPMorgan Large Cap Growth Fund – Select ClassAmerican Century Investments Mid Cap Value Fund Investor Class • Parnassus Small-Cap Fund • Thornburg International Value Fund Class I • ...
by sliu
Sun Oct 26, 2014 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: Deleted
Replies: 12
Views: 2028

Re: Another PPO vs HDHP thread - enrollment closing...

Just my thoughts, but it may help to think of this comparison as a total savings comparison and a tax savings comparison. Your employer contribution is a factor in the former, but less of a factor in the latter (only if state tax applies to HSA contributions). The premium savings with HDHP results in a larger taxable income (just as a PPO would reduce your taxable income), so I would think that the $1300 premium savings would really be something like (1300*0.6355=$826) savings accounting for the taxable income increase. This would reduce the total savings difference to around $4.2k It's a safe assumption that your HSA and post-tax dollars are fungible for this exercise, but may not be true for all cases. If no health costs are incurred for ...
by sliu
Sun Oct 26, 2014 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: 2015 Fed HDHP Plans
Replies: 8
Views: 3027

Re: 2015 Fed HDHP Plans

Deductible looks identical, co insurance favors GEHA at 5%, OOP max limit is favors Aetna, premium is lower for GEHA
by sliu
Sat Oct 25, 2014 1:48 pm
Forum: Personal Investments
Topic: Health Equity HSA--New Passive Plan
Replies: 80
Views: 29815

Re: Health Equity HSA--New Passive Plan

I think they will have it ready by 2015 January for new HSA accounts. Anything before that is gravy.
by sliu
Sat Oct 25, 2014 8:01 am
Forum: Personal Finance (Not Investing)
Topic: When is a living trust and/or will appropriate?
Replies: 11
Views: 2829

Re: When is a living trust and/or will appropriate?

You should strongly consider a will. A will doesn't avoid probate, but it should make clear to your executor/heirs what you would like done. You can create a living trust that will do the same thing as a will, but assets owned by the trust would avoid probate. Many will name assets that don't easily pass to another owner into a trust and will create a "pour-over will." Meaning, anything that isn't already held in the trust will be poured-over into the trust at death. Investment and bank accounts if not held jointly will be probated unless you title them as transfer on death. You could also have the living trust named as the owner. This doesn't change anything for you or your ability to manage the assets. Retirement accounts with ...
by sliu
Sat Oct 25, 2014 6:48 am
Forum: Personal Investments
Topic: Consolidating Retirement Accounts
Replies: 13
Views: 1775

Re: Consolidating Retirement Accounts

My one last concern about this setup is in case I ever decide to pull money out of the taxable account - rebalancing everything will be a nightmare (and it may not be possible to get the proper asset allocations). I have no plans to do so, and see no reason why I'd need to in the foreseable future, but it is something that's been on the back of my mind. The money that went / is still going into my taxable account was a pretty decent chunk of change (relative to the rest of my assets), and was mainly placed there because I have no immediate (or even medium term) plans or uses for it. It just feels weird to lock the money away until retirement, which is 40 some-odd years away. Depends on your definition of "medium term". If the fun...
by sliu
Fri Oct 24, 2014 12:52 am
Forum: Personal Finance (Not Investing)
Topic: HSA - First Time Offered
Replies: 5
Views: 849

Re: HSA - First Time Offered

Good question - we will learn more next week. The information I have at this time is: "Can enroll/change contribution at any time" Three ways to make contributions: 1. Pre-tax salary deductions—if your employer offers this benefit, your payroll deductions are exempt from most state FICA and FUTA taxes as well as federal income tax. (Most states allow this, but not all. Check with your employer.) 2. Employer contributions—made directly to your HSA by your employer. 3. Direct contributions—throughout the year on your own schedule. Your annual contributions are taken as a deduction on your tax return (no need to itemize). Stick to contribution method #1, you'll get a extra tax savings on medicare and social security taxes -- 7.65% t...
by sliu
Fri Oct 24, 2014 12:40 am
Forum: Personal Finance (Not Investing)
Topic: HSA, Please Help!
Replies: 4
Views: 1045

Re: HSA, Please Help!

You still get the federal tax advantage and growth potential with your funds currently as-is, it's just the CA state tax drags your net gains. If it makes sense in your overall AA to hold TIPS/CA muni bonds and you plan to stick with the HSA as a stealth IRA, then it might make sense to convert at some point to TIPS/CA munis. Just watch for short-term redemption and take it slowly with any sudden decisions or changes.
by sliu
Fri Oct 24, 2014 12:28 am
Forum: Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 4834

Re: Help with HSA in CA. Am I ready? How-to?

Thinking a little more, there's a few options which I'll list from conservative/easy to aggressive/complex. As noted already, you will get the federal triple tax advantage in all cases. 1) No investing, just report the HSA interest earned Pro: Very easy to keep track of annually Con: Miss out growth of the HSA balance 2) Invest in TIPS and/or CA municipal bonds (ETF/mutual funds) with the intention of holding for yield Pro: Easy to keep track of annually, interest used to reimburse medical expenses Con: Limited growth of HSA balance, still need to track basis for later sale 3) Invest like a taxable account for CA tax purposes Pro: Highest potential for growth over a long horizon Con: Taxed like a taxable and keep track of basis I'm wonderin...
by sliu
Thu Oct 23, 2014 8:22 am
Forum: Personal Finance (Not Investing)
Topic: When is a living trust and/or will appropriate?
Replies: 11
Views: 2829

Re: When is a living trust and/or will appropriate?

Thanks for the responses as I am mostly interested in what scenarios would a living trust avoid probate. I will look into seeing up POD for bank accounts.

For home ownership, I researched that CA allows community property with right of survivorship, which avoids probate for spouses, but doesn't handle passing property to children. Does anyone have any experience with that aspect?

I've heard from discussions that a will in CA doesn't really avoid the hassle of probate in CA whereas a living trust for a house property helps with that albeit with a costlier setup.
by sliu
Thu Oct 23, 2014 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7014

Re: Making an offer today

It's an unfortunate turn off events but as some others have suggested, check your emotions at the door and move on in your search. Don't get too caught up with what the seller's thinking *might be* because people are irrational at the best of times :happy

It's a good learning experience as this sounds like you're first home purchase. Time is definitely on your side.
by sliu
Wed Oct 22, 2014 12:30 am
Forum: Personal Investments
Topic: CA Long Term Muni - Risk Profile
Replies: 2
Views: 534

Re: CA Long Term Muni - Risk Profile

jackboglehead wrote:10-yr Treas = 2.21%
Assume total tax = 40% (State + Fed)
VCLAX muni yield = 2.13% (right now)
Taxable yield can be considered as 2.13%/0.6 = 3.55%
Yield spread between Fed (10 yr) and CA = 3.55% - 2.21% = 1.34% (will be more if you consider 6-7 yr treas).
Treasury note is taxed only at the federal level, so doesn't that mean you only get the federal tax break and not the entire state+fed+ss+medicare tax break? A 25% federal tax bracket will have a risk premium of only 0.63% in that case (2.13%/0.75 - 2.21%)
by sliu
Tue Oct 21, 2014 11:56 pm
Forum: Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 4834

Re: Help with HSA in CA. Am I ready? How-to?

The best investments for California HSAs if you want to minimize state taxes are nominal US Treasuries and CA Munis. (And even those aren't fully immune if you hold them in a fund that has short- or long-term capital gains distributions.) California taxes pretty much all other investment types in an HSA - even the principal inflation adjustment of TIPS. Hopefully California will treat HSAs the same as the rest of the country sometime soon. Yes, I agree that TIPS and CA/National Munis are the least taxed investments for CA state taxes on HSAs. I looked over my previous year's state tax return and did not find a line item where HSA taxable gains could be reported. I use freetaxusa.com (perhaps I need to use a different tax software in the fu...
by sliu
Tue Oct 21, 2014 11:51 pm
Forum: Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 4834

Re: Help with HSA in CA. Am I ready? How-to?

does this savings account pay any interest that I will have to keep track of during filing of taxes? Also, I do have a limited FSA which I use for some anticipated dental/vision expenses. It seems obvious to me that I cannot double-dip and claim ltd-FSA expense later on from the HSA. Does the insurance company keep track of this in case I forget and double-dip accidentally in the future? Most HSA custodians pay either a flat interest similar to a savings account or a tiered interest rate, but in this low rate economy, neither give significant inflation protection. Yes, you will need to keep track of the interest earned when filing taxes. I don't recall if it is on the 1099-SA or whether you will need to look it up with your custodian. Chas...
by sliu
Tue Oct 21, 2014 10:37 pm
Forum: Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 4834

Re: Help with HSA in CA. Am I ready? How-to?

On the question of "am-i-ready?", is there a minimum amount that is typically recommended be kept outside investments? For example must I hold at least the deductible amount in a MMA or cash if there is a sudden medical expense? Or is it relatively easy to liquidate the TIPS / Bond ETF to pay for unforeseen expenses? There's 2 strategies which I have observed from reading various sources of HSA holders: 1) Maintain a minimum balance such that investing fees are waived. To use HSA bank as an example, keeping $4925 in the savings balance and investing any additional funds in TD Ameritrade brokerage using the TD Ameritrade commission-free 100 ETF. This $4925 in the savings balance effectively serves as immediate liquid assets which ...
by sliu
Tue Oct 21, 2014 5:39 pm
Forum: Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 4834

Re: Help with HSA in CA. Am I ready? How-to?

1) Am I ready to transfer funds into another administrator such as HSA bank yet? How much should I hold readily in cash at Chase before I can start investing? 2) I would like to avoid bookkeeping hassles and hold either TIPS or other un-taxed options in the state of CA, and adjust my bond holdings in other accounts appropriately. I’ve read that HSA bank allows access to Vanguard funds via TD ameritrade brokerage, and I can use that to hold a Vanguard TIPS fund (VIPSX). Is this the best option? Or are there others options that allow me to hold a portion of my bond portfolio here? 3) Is it a good idea to transfer funds annually from Chase HSA to HSA bank to minimize transfer fees? 4) Any other advice? 1) You can transfer anytime. Chase does ...
by sliu
Tue Oct 21, 2014 5:03 pm
Forum: Personal Investments
Topic: New Investor - Fidelity freedom funds
Replies: 98
Views: 9808

Re: New Investor - Fidelity freedom funds

I am not engaging in active management. Just the news struck me as something for the future. The distribution I have in my current 401k is part of my overall portfolio. So it accounts for my 25% bond allocation that I desire. I checked the price since the exit of Mr. Gross and that hasn't impacted the NAV as much, as one would assume. I just wasn't sure if such news affect mutual funds as it does individual stock prices. Mr. Gross is the one who is the active manager whom I was referring to -- by virtue of investing in the PIMCO funds you are engaged to active management. Most 401k administrators are keeping a close watch on this news and its long term effect on the PIMCO funds since it may take more than a year for the impact to be unders...
by sliu
Tue Oct 21, 2014 4:52 pm
Forum: Personal Investments
Topic: New Investor - Fidelity freedom funds
Replies: 98
Views: 9808

Re: New Investor - Fidelity freedom funds

juggyjt wrote:I just read the Bill Gross from PIMCO has left the firm. He was partly responsible for the firm having done great in the past. Should I be reconsidering my 40% 401k distribution to PIMCO Total Returd D fund (PTTDX)?
Be wary of falling in love with active management. Indexing takes the management component out of the equation. I've recommended before to use only the S&P 500 in your 401k and weigh your other accounts with more bonds such that the overall asset allocation is near your desired target.
by sliu
Tue Oct 21, 2014 2:34 am
Forum: Investing - Theory, News & General
Topic: selling RSU immediately
Replies: 40
Views: 9154

Re: selling RSU immediately

If you own a total market fund, you already likely own some company stock via the mutual fund. By holding RSU, you are effectively tilting more towards your own company. Perhaps it helps to ask whether you can tolerate the risk of tilting to one company compared with tilting to a broader index (e.g. small value, international, REIT, etc.)

For an employee of a large cap S&P 500 company, perhaps tilting to their own company doesn't add significant risk, but a mid/small cap company (not even talking about an index here) tilt, the risk is significant. Since you are now more aware of the broader implications, it comes down to whether you are willing to stomach the results.
by sliu
Sat Oct 18, 2014 11:59 pm
Forum: Personal Investments
Topic: Help Create a Portfolio Generating 2,500 a month on 600K
Replies: 22
Views: 5210

Re: Help Create a Portfolio Generating 2,500 a month on 600K

I would think for tax sheltering purposes the mother would want to pass down the IRA as an inheritance since distributions would be small ~2-3% given the ages provided. I'm not sure if Roth conversions of the IRA are allowed at 68, but taking RMD would erode the IRA somewhat. The taxable allows a larger liquidity flexibility for the heirs but the fund grow is not sheltered in that case. I agree that unless the mother is planning to gift portions of the taxable brokerage ($14k annually), the OP should act as a fiduciary in the interest of the mother and educate her on these matters. If her investments are aggressive for growth to the heirs and take a 20-40% drop in value with no contributions to replenish it, what will be her reaction? Likew...
by sliu
Sat Oct 18, 2014 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: When is a living trust and/or will appropriate?
Replies: 11
Views: 2829

When is a living trust and/or will appropriate?

Hi, I am wondering under what conditions would a living trust and/or a will be appropriate? Factors which I have thought of thus far are:

1) Investment accounts -- beneficiaries
2) Bank accounts -- unaware of any method to assign beneficiaries
3) House/car/jewelry/personal belongings -- are secondary beneficiaries possible?
4) Children custodian
5) Insurance policies?
6) Size of overall estate

State of residence is CA, but would state laws trump federal laws if any areas of ambiguity arise?

Thanks in advance.
by sliu
Fri Oct 17, 2014 1:06 am
Forum: Personal Investments
Topic: need moral support (kinda)
Replies: 33
Views: 4163

Re: need moral support (kinda)

craiganderson wrote:municipal bond funds (VWITX) $23,500 <-------------can i consider this pretty "safe" money in case i need it in 7-8 months?
A municipal bond fund does not guarantee full principal just as any mutual fund. Any principal loss may be offset by the interest, but a 6 month CD may be more suitable instead of chasing yield for half of a year.

Nothing wrong with the OP's plan for < 1 year liquidity needs on a down payment and college tuition.

What interests me more is whether the OP is/will be pre-approved for a home loan with contract work type of income (although seems like job offer is settling soon).
by sliu
Thu Oct 16, 2014 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Which HDHP Plan to choose?
Replies: 7
Views: 915

Re: Which HDHP Plan to choose?

2, same as above posters
by sliu
Wed Oct 15, 2014 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Where to start for open enrollment 2015?
Replies: 13
Views: 1798

Re: Where to start for open enrollment 2015?

An update:

My dad's coverage in 2014 was Medigap F through United American Insurance. I wondered why his monthly premiums were so high ~$300, but it makes sense now for complete coverage and no visibility to the cost from his consumer point of view -- I think this he will keep moving forward.

I'll do some more research for my mom's insurance since Covered CA is changing the benchmark insurance policy through which premium credits are issued so it's not a guarantee her portion of premiums would stay the same.

Thanks for the insights!
by sliu
Wed Oct 15, 2014 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Where to start for open enrollment 2015?
Replies: 13
Views: 1798

Re: Where to start for open enrollment 2015?

Medigap vs. Medicare Advantage, for those who have some experience using either, what aspects should I consider during the comparison? I've read that Medicare Advantage is very much like a HMO while Medigap *can* be more like a PPO -- physician network availability and choice is an important aspect for my dad
by sliu
Wed Oct 15, 2014 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Where to start for open enrollment 2015?
Replies: 13
Views: 1798

Re: Where to start for open enrollment 2015?

Sorry for missing important info:
Dad is on Medicare at age younger than 65 due to qualified disability. Mom is on Obama Care/ACA/Covered CA.

I'm in the process of finding out dad's Medicare supplemental insurance (is this what is referred to as Medigap?)
by sliu
Wed Oct 15, 2014 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Where to start for open enrollment 2015?
Replies: 13
Views: 1798

Where to start for open enrollment 2015?

I am helping my parents with open enrollment for their health insurance plans for 2015.

Dad is on SS disability with Medicare A+B in 2014, with a supplemental insurance and part D plan.
United American / Humana

Mom is on a subsidized Obama Care plan -- bronze
Anthem

Both live in CA.

Where are some places where info for 2015 plans could be found for comparison? Obama Care open enrollment starts Nov 15, but Medicare plans open enrollment starts Oct 15.
by sliu
Tue Oct 14, 2014 11:30 am
Forum: Investing - Theory, News & General
Topic: [unofficial Fed announcements make bond prices predictable?]
Replies: 25
Views: 1569

Re: You will think this is a stupid question

I think the bond market prices may or may not reflect some of the future rate changes already. Just my opinion, but really the same kind of "timing" occurs in the stock market where some individual stock prices may already include a combination of both present and future valuations. I'm not as in tune with the bond market, but I would imagine a similar effect occurs. So unless you can time it account for present and future valuations, market timing may not be suitable even with news and rumors. "Buy the rumor, sell the news" ? :happy
by sliu
Sat Oct 11, 2014 8:31 am
Forum: Investing - Theory, News & General
Topic: Why choose a LifeStrategy Fund?
Replies: 41
Views: 7669

Re: Why choose a LifeStrategy Fund?

investor1 wrote:Young investors who are more than 30 years from there target date do not benefit from target date funds. The AA shifting does not take affect until you are 30 years out. The 90/10 LS fund has a lower cost of ownership than the TD fund that matches their target date.
I am unaware of a 90/10 LS fund. Can you provide info? The lowest bond allocation in LS is 80/20 right?
by sliu
Fri Oct 10, 2014 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Support that HSAs might not be the best option for you
Replies: 38
Views: 5564

Re: Support that HSAs might not be the best option for you

I'm not sure what type of "standard" insurance you are comparing, but often PPO is the more expensive insurance type which HDHP is compared against. I've done similar calculations and concluded that the minimum number of comparison points are: 1) Coverage scope -- single/spouse/kids(only)/family 2) Total premium -- HDHP is generally lower 3) Employer/Employee cost sharing -- this can range from 0/100 to 100/0 4) Cost to employee for paying premiums -- related to above cost sharing and total premium 5) Employer contribution (if any) 6) Amount willing to fund in HSA 7) Deductible and OOP maximum 8) Flexibility/willingness to spend from HSA 9) Minimum cost for doctor's office visit + lab work/tests based on insurance negotiated contr...