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Re: Math with Wine is Hard: Traditional 401k vs Roth 401k

TFB has an excellent set of posts on this: http://thefinancebuff.com/case-against-roth-401k.html http://thefinancebuff.com/roth-401k-for-people-who-contribute-max.html Even if you're in the same tax bracket now as in retirement, the traditional 401k may still be advantageous.
by smalldata
Tue Feb 11, 2014 3:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Math with Wine is Hard: Traditional 401k vs Roth 401k
Replies: 35
Views: 2444

Re: After Tax 401K / Roth Conversion in Place of 529 Acct

It sounds like this really boils down to two questions: 1. How difficult is it to do in-service withdrawals from the after-tax 401k into a Roth? 2. Should the Roth be used in place of a 529 account? My wife makes after-tax contributions to her 401k which we convert to a Roth. It's incredibly easy (o...
by smalldata
Fri Jan 10, 2014 9:54 am
 
Forum: Investing - Help with Personal Investments
Topic: After Tax 401K / Roth Conversion in Place of 529 Acct
Replies: 3
Views: 225

Re: New in wiki - Bond Yield, Looking for feedback

Ah, I understand. It's good to know the convention (and that YTM for a bond is not quite the IRR).

LadyGeek, Magician, thanks again for your detailed explanations.
by smalldata
Sun Jul 21, 2013 6:04 pm
 
Forum: Investing - Theory, News & General
Topic: New in wiki - Bond Yield, Looking for feedback
Replies: 12
Views: 1656

Re: New in wiki - Bond Yield, Looking for feedback

When I find myself questioning a standard reference text, it's probably a bad sign... :) The first two YTM calculators that come up on google here and here give a YTM for the 15 year zero coupon bond as 8.99%. Interestingly, tweaking a few numbers for Fidelity's calculator here gives 8.81% for a sem...
by smalldata
Sun Jul 21, 2013 11:12 am
 
Forum: Investing - Theory, News & General
Topic: New in wiki - Bond Yield, Looking for feedback
Replies: 12
Views: 1656

Re: New in wiki - Bond Yield, Looking for feedback

My wife is taking a finance course, and has been suffering through my "help". (I've got a good math background, but not much in the way of finance.) We were working through the most recent problem set, and stumbled across the Bond Yield wiki page. We found it to be wonderfully clear and ac...
by smalldata
Sun Jul 21, 2013 8:03 am
 
Forum: Investing - Theory, News & General
Topic: New in wiki - Bond Yield, Looking for feedback
Replies: 12
Views: 1656

Re: Training for a 5K

Pacing is vital in a race. Nearly everyone starts out much too fast, and it's tempting to at least keep up with them. Ignore that feeling. Ignore those other runners. Run your own race. Many will pass you at the beginning because of this. Don't worry. But try to remember them, because you'll see mo...
by smalldata
Sat Jun 01, 2013 10:32 am
 
Forum: Personal Consumer Issues
Topic: Training for a 5K
Replies: 67
Views: 2983

Re: 529 which state?

As usual, it looks like the excellent bogleheads wiki has this covered: http://www.bogleheads.org/wiki/529_Cost_Comparisons

Apparently, NY recently lowered their expenses, becoming the cheapest plan: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=96256
by smalldata
Tue Mar 12, 2013 2:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 which state?
Replies: 25
Views: 1884

Re: tiny cheap server [Raspberry Pi]

Has anyone tried using a Raspberry Pi as a streaming video server? Mentioned in this thread: http://www.bogleheads.org/forum/viewtopic.php?f=11&t=110322 Brian I use this to play videos stored on my windows computer (using samba). It has good hardware support for videos, so it has no problem wit...
by smalldata
Tue Mar 12, 2013 2:29 pm
 
Forum: Personal Consumer Issues
Topic: tiny cheap server [Raspberry Pi]
Replies: 24
Views: 2793

Re: Cheapest way to go from laptop to TV.

If you really want the cheapest, try a raspberry pi loaded with raspbmc for $35, perhaps a few extra $ for cables, etc. I use this for streaming video from my main computer, or from the internet using the free cable plugin.
by smalldata
Sun Feb 10, 2013 11:07 am
 
Forum: Personal Consumer Issues
Topic: Cheapest way to go from laptop to TV.
Replies: 23
Views: 2673

Re: estimating average annual return from annual data

Thanks! That concrete example explained to me exactly how a fund calculates its return rate, and I was able to duplicate your calculation. If what the OP wanted is to calculate the rate at which a dollar invested in their portfolio 26 years ago would have grown, it seems like the geometric average o...
by smalldata
Fri Dec 28, 2012 1:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: estimating average annual return from annual data
Replies: 9
Views: 969

Re: estimating average annual return from annual data

You can get an approximation using Excel's IRR function. Here is an example of how you could do it. I've simplified your layout to cover just five years with $100 added each year and a $10 gain each year. (1) Col: A B C D E F (2) G Row Year Start Add End $ Gain % Gain Date --- ---- ----- --- --- --...
by smalldata
Fri Dec 28, 2012 8:45 am
 
Forum: Investing - Help with Personal Investments
Topic: estimating average annual return from annual data
Replies: 9
Views: 969

Re: 401(k) or student loan (more importantly: a math questio

Also, do remember, you deduct 401K contributions at your marginal rate, but upon withdrawal, you fill up lower tax brackets first, making the average rate much lower. This is one of the greatest tax arbitrage opportunities few understand very well outside this website. grap The finance buff has a g...
by smalldata
Wed Dec 19, 2012 10:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) or student loan (more importantly: a math question)
Replies: 16
Views: 1172

Re: 401(k) or student loan (more importantly: a math questio

The math here doesn't seem too difficult if you assume your tax rate now is the same as your tax rate later. (It seems quite similar to the question of whether to use a roth 401k). Suppose you have $100 of income and you want to decide whether to put it in your 401k or use it to pay off your loans. ...
by smalldata
Wed Dec 19, 2012 7:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) or student loan (more importantly: a math question)
Replies: 16
Views: 1172

Re: Harvest Long Term Capital Gains By Year-end...or Not?

Dave, Most people here (myself included) view owning individual stocks as uncompensated risk. See the philosophy for an overview: http://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy Moving on to your question... There have been a few threads on tax gain harvesting: http://www.bogle...
by smalldata
Wed Dec 05, 2012 6:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Harvest Long Term Capital Gains By Year-end...or Not?
Replies: 2
Views: 522

Re: Total Bond Market vs TIPS

Yes, I see I was confusing duration and maturity. Thanks for the link, I'm continually impressed with the wiki.
by smalldata
Fri Aug 17, 2012 5:14 pm
 
Forum: Investing - Theory, News & General
Topic: Total Bond Market vs TIPS
Replies: 34
Views: 9254

Re: Total Bond Market vs TIPS

The final factor, of course, is that the total return to the investor is the sum of the interest paid and the change in value of the bonds. Bonds can lose value but the investor might more than cover the loss in interest paid or might not. The concept of duration serves to quantify that in that it ...
by smalldata
Fri Aug 17, 2012 10:35 am
 
Forum: Investing - Theory, News & General
Topic: Total Bond Market vs TIPS
Replies: 34
Views: 9254

Re: Maybe NOT Bonds into Roth IRA

Here's a concrete example (hopefully I got the math right). Suppose your asset allocation calls for $1,000 in bonds. You can either: 1. Put $1,000 in bonds in the Roth. This means you have $1,000 more in stocks in your taxable account. 2. Put $1,000 in bonds in the taxable account. This means you ha...
by smalldata
Thu Apr 12, 2012 2:38 pm
 
Forum: Investing - Theory, News & General
Topic: Maybe NOT Bonds into Roth IRA
Replies: 13
Views: 1227

Re: Taxable/Municipal Bond Allocation

Since the risks are not the same between different bond categories, I am concerned that these risks should be diversified. Or is it just a matter of going after the highest yield for ones desired duration and desired credit quality? I guess it depends on what risks you're trying to diversify. From ...
by smalldata
Wed Mar 28, 2012 11:27 am
 
Forum: Investing - Theory, News & General
Topic: Taxable/Municipal Bond Allocation
Replies: 8
Views: 1085

Re: Tax advantaged Lazy man portfolio

Your desired withdrawal rate is low enough that you could come close with bonds. Yes but would 100% bond portfolio provide greater 40yr survival rate after inflation than a portfolio that has a mixture of stock & bonds? Keep in mind that the $250K/yr withdrawal will go up each year with inflati...
by smalldata
Mon Mar 26, 2012 4:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax advantaged Lazy man portfolio
Replies: 17
Views: 1845

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