Search found 134 matches

by mak
Tue Jun 15, 2021 2:20 pm
Forum: Personal Investments
Topic: Sold One Third 4/9/2020 in Virus Panic
Replies: 21
Views: 3694

Re: Sold One Third 4/9/2020 in Virus Panic

I would do something with that cash ... So that is one question. If cash is earning 0.50% in a savings account, with some other cash deployed to scoop up $4850 of 'account opening bonuses' in banks/brokers which I did this year, after which the cash can easily move back to the highest cash earning FDIC type account I can find, or go scoop another bank opening bonus, and if bonds yield only 1%?, what is the urgency to get into bonds? Won't the bonds lose purchasing power almost at the same rate as the cash does? The yields are comparable. Is the bond fund investment because we are hoping for negative yields, so bond rally? (Aside, suppose you place enough cash in either a savings account or a bond fund today to purchase one rental house for...
by mak
Tue Jun 15, 2021 2:02 pm
Forum: Personal Investments
Topic: Sold One Third 4/9/2020 in Virus Panic
Replies: 21
Views: 3694

Re: Sold One Third 4/9/2020 in Virus Panic

Thanks for all the inputs, it is interesting if nothing else to read various views. RE: buy and never sell as the thing 'best investors' do, the question then is why? For what purpose is a portfolio of purchased but never needed and never sold funds/stocks/bonds if none is to ever be sold? It may be worth more or less than its cost, at death, perhaps substantially more. Whatever it is worth doesn't matter. My parents and grandparents both gone were proud to have saved money during their lives which made them fell rich enough, and to watch slowly over their lives as inflation rendered them poorer and poorer. A saved amount worth at one time 5 median houses, at death was worth 50% of one median house. None was withdrawn or spent, it just erod...
by mak
Tue Jun 15, 2021 3:19 am
Forum: Personal Investments
Topic: Sold One Third 4/9/2020 in Virus Panic
Replies: 21
Views: 3694

Sold One Third 4/9/2020 in Virus Panic

I'll try to give enough detail to analyze but I'm not the average person here working and accumulating. I have no IPS. I wouldn't be able to stick to one if I did. Plus I'm not investing, I should be in the drawdown phase, but am not really drawing much either. Age 62. "Retired" since 40. Single, no heirs only charities. Debt $0 of any kind Spend only approx $2K/mo recurring expenses, including all prop taxes and income taxes. Add to that for a car replacement every many years something like that but otherwise I realize this is the odd thing in my situation, I live on very little. Small pension $680/mo, with COLA Haven't turned on SS yet, when I do I expect with slightly early turn on (65.5 years est, after waiting for ACA effect ...
by mak
Sun Jan 13, 2019 10:49 pm
Forum: Investing - Theory, News & General
Topic: Did you ever "win" big?
Replies: 133
Views: 12975

Re: Did you ever "win" big?

What was his 2017 returns? Some people are delusional. There is a saying about there being 2 types of people. Those that lie to others and those that lie to them themselves. I didn't know who is worse. 2017 was a great year for me and I'm sure most people, though I admit I underperformed simple buy and hold of a Vanguard balanced fund (I don't trade actively, but I foolishly altered my allocation to underweight equities because I got scared and remain there today, I did zero trades in 2018.) As to your question, I pressed him at the end of 2017 and he said he thought he broke even for the year after commissions. I strongly suspect the reason he couldn't be more exact was he didn't want to admit he had a small loss in such a good year, but ...
by mak
Sun Jan 13, 2019 4:24 pm
Forum: Investing - Theory, News & General
Topic: Did you ever "win" big?
Replies: 133
Views: 12975

Re: Did you ever "win" big?

DrGoogle2017 wrote: Sun Jan 13, 2019 4:18 pm The thread title didn’t ask if we ever lost big, so that’s how I answered the question. :D
Now THAT would be a great thread to read, if everyone was honest.
by mak
Sun Jan 13, 2019 1:49 pm
Forum: Investing - Theory, News & General
Topic: Did you ever "win" big?
Replies: 133
Views: 12975

Re: Did you ever "win" big?

I would urge anyone reading this thread to consider a few things I have observed about men, specifically, in their conversation with other men (I cannot really speak to the female gender case). Men pretty much always lie or exaggerate about certain things. My benchmark for this is my close friends, who I would argue are less prone to these things, vs. "bloke chat" in more general contexts like over a beer in the pub. This is funny stuff..............it reminds me of my neighbor.......he always seems to win each time he goes to the casino.... There's this ole' saying about those kinda folks...... There are two type of people that leave a casino..............losers and liars......... 8-) The friend I wrote about above who has lost ...
by mak
Sat Jan 12, 2019 2:43 pm
Forum: Investing - Theory, News & General
Topic: Did you ever "win" big?
Replies: 133
Views: 12975

Re: Did you ever "win" big?

Gave up years ago after losing so much on all these hopeful and lucky bets I saw my life's earnings going down the toilet. A friend in San Diego has been trading for 30 years, with a cumulative loss of over $1m which came from his work earnings. He has a PhD and has been a VP Operations for electronics startups and such. He will not admit that he is a compulsive gambler (my opinion) who has no discipline, and he bristles at the comparison of his activities to gambling. Now, down to his last $200K in an IRA, with the entire taxable account gone, he is doing stock trades and writing options. For 2018 he lost 15%, and he gets very angry if you point out that underperforms simple balanced funds even in a down year. He explains that in his life ...
by mak
Fri Mar 20, 2015 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 23
Views: 3156

Re: Secure a foreign tax credit carry forward?

It is only worthless if he never has a tax liability in the future. Suppose his income varies, or in the future he sells a stock or rental property for a large gain, and for that year incurs a large tax liability. The carry forward could be used at that time.
by mak
Tue Mar 17, 2015 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: How Much To Negotiate Realtor Commission
Replies: 31
Views: 5371

Re: How Much To Negotiate Realtor Commission

I don't buy into that any more than the argument that "I don't discount my rates because I don't discount my exceptional personal service." Thanks buddy, I'm moving on. There were 10,000 licensees in my market in the bubble, today about 3,000. Selling agents are focused on one thing, selling houses to earn commissions. If a house is listed with 3% co-op, properly priced and good value, it doesn't matter to them who the listing agent is, they will show it. If they don't believe me the next guy will and it will get sold. I find my own listings anyway when buying, and usually make offers thru the listing agent so he's motivated to act against his client's interest and push for my all cash offer to be accepted, because then he gets bo...
by mak
Tue Mar 17, 2015 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 23
Views: 3156

Re: Secure a foreign tax credit carry forward?

Not sure about Tax Act, but in Turbo Tax you could look at all the other forms that are generated which are not part of your filed return, and you would find many which have carryovers and others with carryforwards to the following year. And you would find the unused part of your credit there, which if you buy the same software the next year will automatically get carried to the next year's return. There are many such spreadsheets saved, for capital loss carries, operating loss carries, various credits, charitable contributions which must be carried, etc.
by mak
Tue Mar 17, 2015 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: How Much To Negotiate Realtor Commission
Replies: 31
Views: 5371

Re: How Much To Negotiate Realtor Commission

You can specify that you offer 5% as 2% to listing agent, standard 3% to selling agent, and you want the MLS listing to show 3% co-op. If they balk, thank them for their time and you will find another realtor. The reality is about all they do is put it in the computer then wait for someone to call. If it is 5% split 50/50, it shows in MLS as 2.5% co-op, and agents will steer away from showing your house because they get paid less if the client buys that one, vs the one next door which has 3% co-op. The % being paid to the listing agent is not published and the selling agent will have not care. There are extreme low ball services that will list for 1%, with 3% to selling agent, total 4%, at least here. The listing agent tells you all they wi...
by mak
Fri Mar 13, 2015 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

My portfolio planning does not envision one cent of SS ever needing to being spent, nor for any portfolio depletion at the back end. At 0.7% per year of draw, increased annually for inflation, the portfolio balance continues to grow (subject to market fluctuations) not be depleted. That seems like it should make some difference. If performance were linear, I would die with lifetime max net worth. SO, what is the money for? For whom is it being invested? Perhaps the decision has nothing at all to do with me, but instead with an heir's maximum value or charity's maximum value.
by mak
Thu Mar 12, 2015 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

Thanks for that link. It recommends for me as a single person that I wait to FRA 66 2/3 then file and suspend until 70. I didn't think of that option for a single person, but it makes sense if you don't need the money to live on, because you can go in and retroactively turn it on back to FRA and get all the money you missed. So you plan to live a long time, then at age 68 learn you have an inoperable tumor with 6 mos to live. You drive straight from the oncologist's office to the SS office and file retroactively. Or if that doesn't happen you file at 70 and bet you live long enough to get enough higher checks to offset the ones you missed. Still a risk, but that option is worth something if one is planning to wait beyond FRA. No help if you...
by mak
Wed Mar 11, 2015 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

The whole binary idea that SS will either be like the good old days or totally eradicated makes no sense. Of course for the younger people who will perhaps live to 100 routinely it will have to be tweaked. It was never intended to be a full retirement finance source, but due to human nature some will never plan, never save, be disinterested in their own futures, and have to make due with SS. A combination of tweaks to: FICA tax rate, cap on wages to which it applies, full retirement age, early retirement eligibility age (might be raised from 62 to 64 for example) will no doubt be made and phased in for younger people in the system to keep it solvent and take into account both people living longer and fewer wage earners supporting a bubble o...
by mak
Wed Mar 11, 2015 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

Rule changes don't happen overnight. If you were in the post 62 phase planning to take at whatever age makes sense for you, and a rule change was being considered by congress, you would have ample time to consider the effects and go in and turn benefits on if desired.
by mak
Tue Mar 10, 2015 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

OK simple tweak applies 2% compound COLA to starting monthly benefit provided on PEBES report, for 0 years if start at 62, 5 years if start at 67 (66 2/3), 8 years if start at 70. As predicted, this moves the crossover to age 81 for both waiting to age 66 2/3 or 70. I need to reconsider my plan. I discovered a free Kotlikoff site with a stripped down planner which is helpful. http://basic.esplanner.com/ I recognize risks, there are many. Long lifespan equals wait. Short lifespan is a risk too, the risk being that money is left on the table. For example, my mother planned to retire at 65 and take benefits. About age 64 while still working she was unexpectedly diagnosed with stage 3 endometrial cancer. We processed emergency retirement turnin...
by mak
Tue Mar 10, 2015 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

Thanks for the replies, and I did not know that my starting figures for ages 66 2/3 and 70 need to be increased by COLA during the years while waiting, so I need to make some adjustments. When I get another table I will post it. It is also true that I neglected taxes, mostly because I wanted to keep it simple and I presumed I would stay in the same bracket whether taking SS or not. I need to think about these items. I have a very tax efficient asset mix. Real estate rentals with depreciation and no debt. Zero coupon munis. Oh yes and I live in a no income tax state. Tax deferred accounts contain things which throw off ordinary income like reits. Taxable contain things like index funds which throw off qualified divs, on which I pay either 0%...
by mak
Tue Mar 10, 2015 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

can you post the numbers?, I cant get the math to work at a 1% real rate of return (3% nominal 2% inflation) Sure, maybe there is a problem with the formulas. Assume all the money is invested in an account, none spent. Assume the monthly benefit increases 2% each year. Assume the account earns 3% each year. And keep summing the money so it is calculating the future "balance" of a hypothetical account into which every SS check is deposited, which earns 3%. Benefits used are $1263 at age 62, $1752 at age 66 2/3, $2219 at age 70. These come from SS's own report. (The relatively small benefits are caused by my retirement at age 40, so of the 35 years' highest earnings used to compute SS benefits many of those squares contain zero for...
by mak
Mon Mar 09, 2015 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

Aptenodytes wrote:In any event, even if your "crossover point" is age 88, you could easily make a case for delaying SS.
Give me an example how this works, assuming the Wharton model is somewhat close, and I die mid 80's, beating their estimate by 5-10 years. Why would it be better to delay with a crossover point higher than 5-10 years beyond your expected lifespan?

I'll look at redoing the calcs, of course doing it in real terms I suppose I would say COLA=Inflation (CPI-W at least), and my expected real return would be perhaps 0%.
by mak
Wed Feb 25, 2015 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

I suppose I should have said best plan for me, given that I'm unlikely to spend any of the money and since I have no human heirs my heir is a charity. Best plan means then it provides the largest net worth at death, also maximizes cash available during life in case it is needed, and if not maximizes money for charity.
by mak
Wed Feb 25, 2015 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Kotlikoff: When Should you Take Social Security?
Replies: 258
Views: 55434

Re: Kotlikoff: When Should you Take Social Security?

As a single male, no heirs, age 56, already retired with no expectation of further earned income, I have run the calculation many times and come up with the opposite of typical planner advice. My assumptions are 2% COLAs, and expected return on invested capital of only 3% nominal (very conservative), yet I still come up with the best plan being to take it as early as possible despite the reductions. My crossover point is age 88-89 for either age 66 2/3 or 70, vs 62. Wharton online life expectancy calculator says average for me is only 78! And only a 25% chance that I would live beyond 84. Life expectancy for men shorter than women, single shorter than married, family history not great, health history good but not great. I still come up with...
by mak
Wed Feb 25, 2015 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Card Rewards (Travel)
Replies: 284
Views: 60410

Re: Credit Card Rewards (Travel)

I believe if you tried 7x or more you would have been shut down by WF long before 6 mos. I did 3x to 4x my $15K limit and was locked twice with calls from them wondering what is going on. All it takes is a human to look at the history and they will instantly know what you are up to and they close you down for abuse of promotion. That is one of the reasons I kept converting to cash and removing the cash from their bank accounts because of fear of claw back. I have seen letters posted online also of people whose entire banking relationship was severed with closing of checking accounts and inability to open any new accounts, blacklisted for life usually as a result of the dreaded financial review, where they want to see evidence of income suff...
by mak
Wed Feb 25, 2015 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Credit Card Rewards (Travel)
Replies: 284
Views: 60410

Re: Credit Card Rewards (Travel)

I don't travel a lot and I don't spend much in legitimate expenses so for me it has to be almost all manufactured spend and I prefer cash bonuses to miles. Over many years I've done this a few times but it gets tedious and merchants and cards have implemented rules to make it more difficult. They are worried about fraud and money laundering. That said, last year I had an offer from Wells Fargo for a card, no fee, with the bonus being 6 months of no limit accruals of points at 5% on all purchases at drug stores, grocery, and gas at the pump. Of course everyone knows you can buy gift cards at CVS using a credit card and by various means liquidate those and use the cash to repay the credit card, then rise and repeat. Starting 1/2014 for 6 mos,...
by mak
Mon Feb 24, 2014 1:38 pm
Forum: Personal Investments
Topic: HELOC, Use or Lose It
Replies: 4
Views: 792

HELOC, Use or Lose It

Zero balance HELOC with $150K limit, rate floats at prime-1%. Current rate would be 2.25%. In 6 months, the loan freezes. If nothing is owed, the loan ends and is released. If there is a balance, no further draws may be made from then onward, and repayment starts over 20 years. Rate still floats at prime-1% for 20 years. Prepayments allowed at any time, no penalty. Calculation of monthly payment is: Balance at start/240 months, plus interest owed for the month at whatever current rate is. If rates are unchanged, payments go down a bit each month. If rates rise, payment can increase. Principal portion of each monthly payment is fixed at 1/240 of starting principal balance. Only interest changes. This is a good loan I think, these terms canno...
by mak
Sat Jan 18, 2014 8:46 am
Forum: Personal Consumer Issues
Topic: Truck/Car Envy....How do You Deal with It?
Replies: 64
Views: 8380

Re: Truck/Car Envy....How do You Deal with It?

I could replace "truck/car" with "girlfriend" throughout this thread and the gist would be similar.
by mak
Sat Jan 11, 2014 11:44 am
Forum: Investing - Theory, News & General
Topic: What is your 10-year historical returns (to Dec 31, 2013)
Replies: 71
Views: 5060

Re: What is your 10-year historical returns (to Dec 31, 2013

Vanguard doing it all only works if you have all your investment assets at Vanguard. But I presume a typical person has multiple accounts, 401k/403b/457 type stuff at work, business investments, rental real estate, life insurance, annuities, etc. Each year for the past 19, when I close the books for the year ended, it takes me most of a whole day to close out all the spreadsheets and open new ones for the coming year, and mark real estate to market, to come up with "the number". It is not perfect, but the only way I've figured out that works for me and comes up with something I can live with.
by mak
Sat Jan 11, 2014 10:54 am
Forum: Investing - Theory, News & General
Topic: What is your 10-year historical returns (to Dec 31, 2013)
Replies: 71
Views: 5060

Re: What is your 10-year historical returns (to Dec 31, 2013

Around 1995 I realized something was grossly wrong and started keeping track. I only do it annually, and admittedly adding or spending money and multiple accounts makes the calculation more difficult or less accurate but luckily I don't do much and those flows are negligible anyway vs the total. I was shocked to find how low my long term returns were, and how volatile. Others where I brought up the subject have no interest, they do not want to know. They will say I made 40% in xxxx year, and that is the number they remember and spout for decades. A major indicator should be that in taxable accounts, they deduct $3000 per year, and have carry forward losses which over time grow larger and larger. So large that near the end of their investing...
by mak
Sat Jan 11, 2014 9:48 am
Forum: Investing - Theory, News & General
Topic: What is your 10-year historical returns (to Dec 31, 2013)
Replies: 71
Views: 5060

Re: What is your 10-year historical returns (to Dec 31, 2013

10-year and 20-year are fascinating numbers to know, total annualized return including all assets combined, securities, rental RE, cash, etc. I have 19 years of records now, and my 'number' is only 3.11%. Sad result of bad investments/speculations, timing, etc. Checking around with a few others I'm finding most people have no clue, and do not really want to know, in the same way gamblers like to remember their big wins and forget their losses. A few people where I am close enough to have seen tax returns, I'm certain have negative TAR over decades. Ignoring inflation, that means if they simply put 100% of their savings into checking accounts, never earning a penny of interest over their lives, they would be ahead of where they are. It cost ...
by mak
Fri Jan 10, 2014 8:52 pm
Forum: Personal Investments
Topic: Brokered CD Survivor Option
Replies: 23
Views: 5799

Re: Brokered CD Survivor Option

Thanks for this info. I mentioned earlier a CD paying (5%-6 mo libor)*1.2, floor rate 1%, listed as "death put", trading at 84c. I did some research on that CUSIP and was shocked to find buried in the prospectus that the death put is only applicable if the owner dies, was the owner at his death, and was also the owner at original issue. It specifically says the option to redeem without penalty is not available to those who purchase in the secondary market. Also, it mentions the total redemptions cannot exceed 10% of principal of all CDs originally issued. I didn't go farther to find out what happens after the 10% limit is hit, perhaps no one can redeem. These are 20 year CDs, with 18 years left to run. So clearly not ideal to purc...
by mak
Fri Jan 10, 2014 1:18 pm
Forum: Personal Investments
Topic: Brokered CD Survivor Option
Replies: 23
Views: 5799

Re: Brokered CD Survivor Option

Right now there are many CDs with low coupons like 1.5%, 2.0%, or the floating coupons tied to some complex formula based on the difference between 5.0% and 6 mo LIBOR times some factor, with a floor of 1% APY minimum, all for sale on the secondary market at steep discounts to par. I found one today at 84c for example. Because of the screwy coupons, people have little interest, and the owners just want out, they didn't realize what they bought a few years now the coupon is 1%. But they have survivor options. A valid strategy for someone with an aging relative with at most a life expectancy of 5 years, who has money lying around with no plan except to leave to heirs, and no interest in taking risk, is to buy these up, ignore the low coupon r...
by mak
Thu Jan 09, 2014 10:45 pm
Forum: Personal Investments
Topic: Brokered CD Survivor Option
Replies: 23
Views: 5799

Re: Brokered CD Survivor Option

And someone figured out how to scale this and make serious money:

http://money.cnn.com/2013/09/20/news/ec ... ill-fraud/
by mak
Sat Jan 04, 2014 6:25 pm
Forum: Personal Investments
Topic: Money Show Orlando Jan 29th?
Replies: 4
Views: 877

Money Show Orlando Jan 29th?

Anyone going to the Money Show in Orlando Jan 29th-Feb 1? I know it isn't a particularly Boglehead thing to attend but just in case I want to ask a question of someone who may be attending regarding a Boglehead-ish promotion that Zions Direct runs every year at their booth at these things, $500 cash bonus for opening a new account with $50K. I plan to buy a brokered CD, and they are as good a place as any to do it, their commissions are cheaper than Vanguard and inventory is similar. To get the bonus you need the promo code, and that is on the flyers they hand out at the booth all day long. But they won't give it out over the phone, or at least don't seem to know it! I don't want to fly to Orlando just to learn the code. If anyone here is g...
by mak
Mon Oct 28, 2013 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Loosing your ACA subsidy because of Medicaid expansion
Replies: 14
Views: 3037

Re: Loosing your ACA subsidy because of Medicaid expansion

If your income is between 100% and 138% of FPL I thought you get no subsidy. You can elect to buy an ACA plan and pay full price, but subsidies are between 138% and 400% of FPL, so you get none. You belong on expanded medicaid, but in a state that didn't conform to that, you get nothing, and are part of those falling through the cracks in those states. Did I miss something here?
by mak
Mon Oct 14, 2013 7:24 pm
Forum: Investing - Theory, News & General
Topic: Government Shutdown/Default [effect on investments]
Replies: 454
Views: 43449

Re: Government Shutdown/Default [effect on investments]

A 90% return in 14 years works out around 4.6% per year. Individual bonds bought and held to maturity don't seem so bad. Insured tax free munis seem not such a bad choice for example.
by mak
Mon Oct 14, 2013 7:13 pm
Forum: Investing - Theory, News & General
Topic: Why are money mkts paying less than banks?
Replies: 7
Views: 1466

Re: Why are money mkts paying less than banks?

One other point is the bank hopes to make you a customer and make a little off of you in other ways, credit cards, mortgages, etc. That may not work out, but paying a tiny bit more on a deposit account is a marketing cost to acquire customers just like money spent on advertising.
by mak
Fri Oct 11, 2013 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: ACA & Medicaid: What if you incorrectly estimated income?
Replies: 20
Views: 25767

Re: ACA & Medicaid: What if you incorrectly estimated income

One interesting thing. If one needs a bit more taxable income to be where they like in terms of MAGI one easy way to do that would be gambling winnings. On other forums people have discussed how winnings are always taxable even if small enough to not be reported by the payer. Deduction of gambling losses is subject to being tracked and proven. Let's say someone went to a casino, to be simple let's use roulette, and bet $500 each on red and black and bet approx $25 each on 0 and 00. Guaranteed win of $500 on one of these bets. Guaranteed loss approx $50 overall. That and any income tax due on the extra income would be the cost of increasing MAGI enough to qualify. Deducting the loss against the gains is optional and would not be done. Taxabl...
by mak
Tue Oct 08, 2013 11:48 pm
Forum: Personal Investments
Topic: Lets Try... Please spot check my hypothetical muni purchase.
Replies: 11
Views: 1398

Re: Lets Try... Please spot check my hypothetical muni purch

https://personal.vanguard.com/pdf/v414.pdf?2210079054

Look under bonds, down a few pages. Your free trades are for equities only.
by mak
Tue Oct 08, 2013 9:08 pm
Forum: Personal Investments
Topic: Lets Try... Please spot check my hypothetical muni purchase.
Replies: 11
Views: 1398

Re: Lets Try... Please spot check my hypothetical muni purch

When I went looking, the 5 bonds you were pricing were already gone, so I was unable to get the price screen from the bond search function as you did. So I simply went to the bond calculator, manually loaded your CUSIP, and did the calculations based on a buy of 1 bond (since that's what you were trying to do), entering a price of 107.000, and I got 1.002%. I'm guessing now that the yield Vanguard shows you on the 'shopping' screen excludes commission (unlike what I suggested before), so that accounts for the small difference. As to your .006 I would call it a rounding error, perhaps the calculator doesn't round up in the 3rd decimal place only truncates. Anyway, you now have verified the calculator works so why not trust it for future calc...
by mak
Tue Oct 08, 2013 12:38 pm
Forum: Personal Investments
Topic: Lets Try... Please spot check my hypothetical muni purchase.
Replies: 11
Views: 1398

Re: Lets Try... Please spot check my hypothetical muni purch

Couple of points: 1. If you are buying today, settlement is 10/11 which is the date money moves, not today. This affects your spreadsheet date. Everything including accrued int is vs settlement date. 2. The published yields at Vanguard may include the commission, which for 1 bond would be $1.00 in the calculator. Your out of pocket money on 10/11 would be $1070, plus $1.00 comm, plus $8.02 accrued int. Interest would be $20.625 per pay period. Final period $1020.625. 3. Bond calculator as of today, traded today, settle 10/11, 1 bond with $1.00 commission, comes out with 1.002% yield. Wish I could paste it here but don't know how. 4. IRR (not XIRR) presumes equally spaced periods, so it would presume the investment was made 1 period before t...
by mak
Mon Oct 07, 2013 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: ACA & Medicaid: What if you incorrectly estimated income?
Replies: 20
Views: 25767

Re: ACA & Medicaid: What if you incorrectly estimated income

1. If your income is too low, at least on Nevada's ACA site, it says you qualify for medicaid not ACA, and directs you to that site for info. 2. It is up to the ACA site to check that your 2014 estimated income is not hugely different from recent IRS numbers. If you made $30K in 2012, and estimate $25K in 2014 (remember they don't yet know 2013), that is close enough and almost certainly you won't be contacted to explain the difference. There is a guideline for when they must contact you for an explanation and that's when you estimate income far below recent past, like you made $100K in 2012 and estimate $25K in 2014. Doesn't mean you won't qualify, but they are supposed to ask for an explanation by contacting you when they process your app...
by mak
Mon Oct 07, 2013 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: ACA & Medicaid: What if you incorrectly estimated income?
Replies: 20
Views: 25767

Re: ACA & Medicaid: What if you incorrectly estimated income

FIrst let me admit I'm no expert, but I have been looking into something like this for a neighbor. In her case, the question is what if she estimates her 2014 income higher, qualifies for ACA with supplement, then comes in slightly under, where she should have been on expanded medicaid instead. My research indicates she would not have to pay back the supplement because her income came in too low, and for the next year she could either show proof her income would be higher to stay on ACA, transfer to Medicaid where she belonged originally, or stay on ACA with no supplement and pay full premium herself. It expressly stated there is no fraud issue if the differences are small, and the issue is she overestimated her income. Grossly underestimat...
by mak
Mon Oct 07, 2013 4:08 pm
Forum: Personal Investments
Topic: Lets Try... Please spot check my hypothetical muni purchase.
Replies: 11
Views: 1398

Re: Lets Try... Please spot check my hypothetical muni purch

Click on the name of the issue right on that screen, then on the next screen look for a pull down menu or clickable link upper right corner which says "Bond Calculator". Go there. It will prefill in the calculator all the info related to this issue and assume purchase date of today. That should give you much more info on how this is calculated, and also allows you to change assumptions and recalculate. It also calculates exact commission and prepaid interest for you.
by mak
Mon Oct 07, 2013 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: ACA & Medicaid: What if you incorrectly estimated income?
Replies: 20
Views: 25767

Re: ACA & Medicaid: What if you incorrectly estimated income

Edit: ERROR! On further checking I erred when posting below. BOTH deductible IRA and 401k contributions reduce MAGI. So making a voluntary deductible IRA contribution would reduce MAGI income for qualifying for ACA subsidy.


I don't believe it can be fixed by her making an IRA contribution, the number that matters is MAGI (modified adjusted gross income) and it is not reduced by IRA contributions (they get added back in when computing MAGI). A 401k contribution however should work, if that option is available to her. 401k contributions into an employer sponsored plan do result in a reduction of MAGI, as the money was never constructively received by her, it stayed in the employer plan.
by mak
Mon Oct 07, 2013 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you spend on insurance products?
Replies: 2
Views: 555

Re: How much do you spend on insurance products?

Auto insurance varies tremendously across the country. Depends on claims experience in the local area, also whether the state insurance commissioner is pro-consumer or in the pocket of insurance companies. I moved 400 miles crossing one state line and same coverage, same vehicle, same insurer, same discounts more than doubled. Your auto seems pretty cheap vs my local area.
by mak
Mon Oct 07, 2013 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: ACA: buy through Marketplace or not?
Replies: 32
Views: 3395

Re: ACA: buy through Marketplace or not?

I've had individual coverage for years, and I'm "rated" at 10% so I pay 110% of scheduled premium due to minor preexisting conditions. Each year there is a premium increase, which one would expect, also when hitting each age bracket (50, 55, etc) there is a big rate increase moving to the higher age bracket. Premium was $408 at age 54, moved to $550 at age 55 (4 mos ago). Letter just arrived, 9% premium increase for 2014 so $608 to stay on the same plan, still age 55, still rated 110%, moving into 2014. ACA nearly equivalent coverage, HMO type, same insurer with same participating provider list, with no subsidy, is $445. Of course I'm going to shop the ACA. Even with no subsidy, I save around $160/mo due to the larger pool of insu...
by mak
Fri Aug 16, 2013 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: When do opportunity costs make financing a car sensible?
Replies: 15
Views: 2179

Re: When do opportunity costs make financing a car sensible?

Let's see, I know a guy who bought a truck with 1.5% financing, took the cash money he would have used to buy the truck and bought a high dividend paying stock. Stock is down 30% so far, and truck payments still coming due. He's going to soon tire of losses on that stock and sell it, locking in that loss, to invest the money into something else that's doing better. Until it blows up. He'll lose most of the money in the end, will take a few years and many disappointments to do that, plus pay for the truck with interest.
by mak
Mon Jul 15, 2013 1:44 pm
Forum: Personal Investments
Topic: Helping parents decide whether to buy SPIA
Replies: 46
Views: 3645

Re: Helping parents decide whether to buy SPIA

If they have no pensionized income beyond social security, and like/need the idea of a lifetime guaranteed monthly check, perhaps it is a good idea. I have looked at it for myself, and to date the payouts I've found have been too low to make it make sense. Low interest rates, or being too young at outset, both result in lower payouts. I've also looked at Gift Annuities to charity, which give an up front tax deduction for the 'contribution' portion, and a life annuity. I also found the payouts there to be low. Here's a calculator: http://giving.stanford.edu/planned-giving/giving-options/charitable-remainder-annuity-trusts Click on the "Planned Giving Calculator" upper right of page, select Gift Annuity, enter the ages and amounts a...
by mak
Sat Jun 22, 2013 7:24 pm
Forum: Personal Consumer Issues
Topic: [EveryDay Carry] EDC pocket knife?
Replies: 69
Views: 8523

Re: [EveryDay Carry] EDC pocket knife?

Just had to look at the EDC thread...EDC stands for Electric Daisy Carnival to me, a rave type electronic music festival about to be held here in Vegas...couldn't figure out why anyone on Bogleheads would be talking about a knife to bring, they search for such things at the entrance! Most 20-something attendees are heavily drugged and docile, assembling in "cuddle puddles" I understand, no protection necessary, well at least not that kind!
by mak
Thu Jun 06, 2013 7:39 pm
Forum: Personal Investments
Topic: help finding information about structured investments
Replies: 15
Views: 1167

Re: help finding information about structured investments

I have owned this type of thing before. You can research it by googling the cusip # and finding the original prospectus if you want to delve into the details. Since it is a CD, almost certainly it has FDIC insurance, and cannot lose principal. The interest it pays periodically, or accrues which gets paid all at maturity, is based on some complex formula but cannot be less than 0 and could also be very high from time to time. The first year or two you own it the rate probably had an attractive guaranteed minimum. Most importantly these are very illiquid and if you had to sell, a bond dealer would end up buying it at a fire sale price from you. Barring any serious need for the cash in your hands, or a maturity date you cannot withstand, I wou...
by mak
Tue Mar 12, 2013 3:39 pm
Forum: Personal Consumer Issues
Topic: Credit Cards [Bad Experience]
Replies: 40
Views: 5975

Re: Credit Cards [Bad Experience]

35 years, currently have around 15 cards mostly for points/rewards/bonuses. Never paid a fee. Never paid interest. Made lots of bonuses, flew free to Europe, So Pacific. Stayed free in hotel in Rome. Twice had a card number stolen and charges not mine, cancelled/reissued instantly, all charges reversed. In 35 years that isn't bad. No other issues. I love the bonuses, grab them every time I see a promotion that can be exploited. Just cashed a $300 reward check yesterday.