Search found 62 matches

by FordBiggs
Tue Oct 28, 2014 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Will I get taxed if family sends my bank $50K from abroad?
Replies: 10
Views: 2003

Re: Will I get taxed if family sends my bank $50K from abroa

Thanks all so much for your replies. Very helpful! And they gave me some peace of mind on this matter. This is confused. it sounds like money coming from the aunt is being used to buy property owned by the aunt*. So no gifts involved, dad and girlfriend are acting as agents and never own the money. But to get that treatment you really want treat it that way. If you keep talking about gifts you end up with a gift from aunt to girlfriend, a gift from girlfriend to dad, and a gift from dad back to aunt. The latter are gifts by US persons and will be in excess of the 14k limit and require a gift tax return and perhaps gift tax. I guess this part is a little ambiguous as I myself aren't sure, but from what I gather, (and thinking about it again)...
by FordBiggs
Mon Oct 27, 2014 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Will I get taxed if family sends my bank $50K from abroad?
Replies: 10
Views: 2003

Will I get taxed if family sends my bank $50K from abroad?

Hi guys, My girlfriend's aunt is sending her $50K to her bank account via a wire transfer from China. Her family just sold one of their properties in China and wants to buy one here in the US. From what she is telling me, she will withdraw the money and give it to her dad who will buy the property here in the US. She doesn't live with his dad. Apparently, his dad is retired. From my understanding, this is a "gift" and won't be taxed. But from googling it, there's a maximum annual limit of $14K for gifts and so it seems like she will get taxed from this? Do you know how much? Obviously, they definitely do not want to get taxed. Any advice on what the best way to do this? My concern is that this is a huge amount of money and might r...
by FordBiggs
Tue Mar 26, 2013 8:46 am
Forum: Personal Consumer Issues
Topic: Warning: Possible PayPal Phishing Attempt
Replies: 10
Views: 1727

Re: Warning: Possible PayPal Phishing Attempt

I heard phishing scammers actually "purposely" use bad grammar/spelling to filter out the not so intelligent people and focus their scams on gullible people. Apparently, even their time is precious.

I've received a lot of these so everyone should just be extra careful and just remember that no website is going to ask for your username/password ever.
by FordBiggs
Fri Mar 15, 2013 10:48 am
Forum: Personal Consumer Issues
Topic: What % of gross income do you spend on rent/mortgage?
Replies: 132
Views: 13160

Re: What % of gross income do you spend on rent/mortgage?

Wow. Most of the answers here are paying way lower than what I'm paying for rent and I have a feeling that most even have higher income. I'm paying 35% - such is the curse of living in NYC. (I'm also living in a mediocre, cheap but safe area) I would be paying even more if I lived in Manhattan!

This % will change for the better once I graduate and increase my income though. Can't wait!
by FordBiggs
Fri Mar 15, 2013 10:39 am
Forum: Personal Finance (Not Investing)
Topic: The Immigrant Money Curse
Replies: 20
Views: 2224

Re: The Immigrant Money Curse

In most third world countries bargaining when you buy stuff is second nature. That is something that is anathema to most Americans. The immigrants have a big advantage in this regard. When I travel overseas I am struck at how Americans pay any price asked without hesitation. I have an anecdote about this. While visiting relatives in Kenya we went to a market in Nairobi. A seller had very nice hand-carved elephants and giraffes. Ahead of us was an American couple wearing expensive jewelry, watches and a high-end camera. They happened to ask about an item I was considering, and were told it was $100. Out came the wallet and the cash was paid. I turned to my niece and whispered forget it, I don't want to spend that much. She told me to let he...
by FordBiggs
Fri Mar 15, 2013 10:22 am
Forum: Personal Finance (Not Investing)
Topic: The Immigrant Money Curse
Replies: 20
Views: 2224

Re: The Immigrant Money Curse

Characterizing them as "cursed" can go both ways but I can totally relate with this. I'm also an immigrant and my parents/family are 1st generation immigrants who are, as what others have mentioned, "hard wired for frugality". My grandma is an extreme example - she never wants to go to a salon or pay for any service that can be done at home, she collects leftover bones from eaten food to recook into broths (this one seems unhealthy for me), her house is like a garage sale where she stores other people's trash but collects them because the old crooked coffee table is still worth something and she even gets angry for buying her gifts on her birthday because I spent hard earned money that I could have saved. I understand he...
by FordBiggs
Fri Mar 01, 2013 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

Thanks so much for the amazing discussion guys! Seriously, each and everyone of your insights helped a lot. It's great to get some inside look on what actual physicians are going through now and during their med school days. After running the numbers again and thinking hard on what I really want to do with my life - I've decided to not go to Med school . :beer Even though I think Med School still seems to be a GOOD financial investment, (which answers my original question) It's not for me. I don't see myself being "truly" happy even if I do succeed as a physician (which is already pretty hard based on my current circumstances GPA/MCAT wise and having my undergraduate degree outside of the US). I also like the idea of wshang that i...
by FordBiggs
Wed Feb 27, 2013 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

Thanks for all the insights guys. I've been reading through each and every reply and all of your personal experiences especially the ones who went through Med school and are now physicians help a lot. Overall, my biggest takeaway is that it's something I need to really think about before jumping the gun. The matching is a big factor which does not guarantee my specialty. I actually researched more into this and It looks like as long as I work hard during Med School (do volunteer work/try to get publications?) then you can be a pretty good candidate for the matching. I'm also thinking of going into Pathology and I'm hoping that's a less competitive specialty. If I do decide to go to Med School, I don't plan on doing the military scholarship ...
by FordBiggs
Tue Feb 26, 2013 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

I'm an ER doc. After going through the training, & having finished residency & been in practice for over 1/2 a decade, here are some of my thoughts. Training was hard, but clinical practice is even harder. I make good money & live comfortably, but I know I'll never be "rich," likely middle upper class. I'm fine with that. I went into medicine because I loved taking care of people & I really loved the science. However after less than a decade of practice, I'm already burned out. I enjoy what I do when I come across patients who are interesting & who benefit from my help. However the shear number of people I see now just makes it not enjoyable a lot of the times (due to political changes I will not go into). If ...
by FordBiggs
Tue Feb 26, 2013 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

you need to keep in mind that while people say they chose x specialty, its actually a match or competition for the spots. You arent guaranteed a specialty position by any means. For some of the fields we are talking about, only the top 10% of medical students (who typically are a fairly smart bunch) can get into those fields. Dont count on a specialty pay as making your decision for you. It may not turn out that way. Damn. This is a deal breaker. I didn't know this was a "match". So does that mean I can't just choose to specialize as a Pathologist or go into Anesthesia? I would need to be evaluated to be able to do residency in that field? I do expect the competition and that's why I've mentioned that it's fairly hard to get to t...
by FordBiggs
Tue Feb 26, 2013 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

No; my scholarships were acquired via good college grades and a solid MCAT score. Don't poo poo the community college. Our class president took all his prerequisite science courses at a community college and is now a big time surgical specialist. That is actually very comforting to hear. I've been researching online and saw some comments that the Interview committee for Med School might look down on per-requisite science courses at community college just because the person might have just went there thinking it's easier and try to increase their GPA. Good to know and thanks. There's nothing wrong with that. I was definitely not one of those people who possessed an unquenchable love of all things doctoring. I enjoy my job, am very good at w...
by FordBiggs
Tue Feb 26, 2013 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

Thanks for the good insightful replies. As expected, some good and bad points whether its a good financial investment but ultimately, going to Med School shouldn't just be a financial decision which is really making this decision harder for me. I don't know if I can "endure" banging it out even if I don't truly enjoy it until I reap the financial and social status rewards in the future. Ultimately, I think the decision *has* to boil down to: do you *want* to be a doctor and nothing else? If yes, it's probably worth it and you'll be fine financially. If no, then you're going to start to burn out anyway, either in medical school or when you're in the middle of an overnight 12 hour shirt during residency making minimum wage. I actual...
by FordBiggs
Tue Feb 26, 2013 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Re: Is Med School still a good financial investment?

Salary depends on what you go into. I did one year internship and a 3 year anesthesia residency. I worked at a place that paid well and I worked every weekend for overtime my first two years plus we got a nice bonus depending on how many hours we put in. So I made around 600k my first 2 years, but I worked over 100 hours a week. I stopped working that hard after 2 years when I decided there was more to life. I think if you do anesthesia these days in the new york area, full time working 50-60 hours a week gets you between 250k and 300k. Other specialities are less. I think internal medicine maybe 150k. pediatrics 75-125k. At least with medicine you always have a job and you have health insurance. There is no number to put on that. I really...
by FordBiggs
Tue Feb 26, 2013 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14546

Is Med School still a good financial investment?

Hi guys, With the recent threads on Doctors/MDs earning very high salary with huge but also manageable student loans (as long as they live like a resident and focus paying off their debt), it got me to reconsider medical school again. I've always had this lingering feeling inside of me that I want to be a doctor but never really seriously considered it considering the amount of student loans I need to take. I'm only 24 years old and just need 1-2 years to finish some pre-req courses and take the MCAT if I pursue this so looking into getting into Med School at 26 years old. I'm living in New York and looking at a good and reasonable State school SUNY Downstate which I can go to: Tuition per year: $30,000 Cost of attendance: $2000 x 12 months...
by FordBiggs
Mon Feb 18, 2013 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: 2012 Roth IRA deadline vs 2013 Roth IRA starting date
Replies: 13
Views: 2205

Re: 2012 Roth IRA deadline vs 2013 Roth IRA starting date

I've posted before in my older threads/questions that I'm filing as "Single" with no dependents. I'm only 23 (turning 24 this March) and hopefully won't be getting any dependents anytime soon :D
by FordBiggs
Mon Feb 18, 2013 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: 2012 Roth IRA deadline vs 2013 Roth IRA starting date
Replies: 13
Views: 2205

Re: 2012 Roth IRA deadline vs 2013 Roth IRA starting date

A regular 401k contribution will NOT work! Work contributions to a traditional 401k only count for the actual year they are made in, when deducted from weekly paychecks. So, you are done for 2012 in terms of 401k contributions. Your AGI for 2012 was $31,000. If you want the Saver's Credit ($200 credit BTW) you have to amend your 2012 tax return, and contribute $2,250 to a Traditional IRA, thus bringing down your AGI to $28,750, the cut-off line for the $200 credit. The rest ($3,250) can be contributed to a Roth, which does not affect AGI. I highly recommend you do this. You get a matching from the government of $200, just for contributing $2,250 to a Traditional IRA. You can always convert this amount to a Roth IRA this year or in a later ...
by FordBiggs
Mon Feb 18, 2013 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: 2012 Roth IRA deadline vs 2013 Roth IRA starting date
Replies: 13
Views: 2205

Re: 2012 Roth IRA deadline vs 2013 Roth IRA starting date

If you contribute for 2012 to a Roth, then you don't need to do a thing, because Roth contributions do not affect AGI. EDITED , what was your AGI for 2012? If you fall below $28,750 AGI for 2012, then you will want to amend your 2012 return and claim the Savers Credit. See IRS form 8880. Oh! Great! That's perfect then! I thought they are part of the tax filing and was worried I filed too early. Thanks a lot for the help. That pretty much answers all my questions. My AGI was around $31,000 so I'm not eligible for that credit. Good to know though. I'm pretty close to that so maybe I'll try to lower my AGI by contributing more to traditional 401k this year to get that. Also, I just noticed HouseStark's edit which pretty much answers my questi...
by FordBiggs
Mon Feb 18, 2013 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: 2012 Roth IRA deadline vs 2013 Roth IRA starting date
Replies: 13
Views: 2205

Re: 2012 Roth IRA deadline vs 2013 Roth IRA starting date

Thanks for the quick reply HouseStark. If I do contribute to 2012 though, what happens to my taxes? I need to amend my taxes for 2012 right? (Honestly, I don't know if I would want to just because of the hassle and inconvenience) I know it was also my mistake for filling too fast and not thinking about the Roth IRA.
by FordBiggs
Mon Feb 18, 2013 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: 2012 Roth IRA deadline vs 2013 Roth IRA starting date
Replies: 13
Views: 2205

2012 Roth IRA deadline vs 2013 Roth IRA starting date

Hi guys. I've been planning to open up a Roth IRA with Vanguard and I'm finally going to open one now. (I had to establish my emergency fund first) My concern is that I already submitted my 2012 tax return to the IRS and it was already accepted. I'm now expecting to receive my refund within the next couple of weeks. My concern now is IF I open up a Roth IRA account - will my contributions be included for my 2012 contributions or my 2013 contributions? I don't want to ammend my tax return for 2012 and I'm not really concern about the $5,500 maximum for Roth IRA for 2013 because I'm not even sure If I can max that this year (I'm turning 24 and only earning around 45k this year). So what's the criteria which contributions goes to which year? I...
by FordBiggs
Tue Feb 12, 2013 10:01 am
Forum: Investing - Theory, News & General
Topic: moving pre-tax money to after-tax for free?
Replies: 40
Views: 4201

Re: moving pre-tax money to after-tax for free?

Grt2bOutdoors wrote:In real life, the IRS will call you down and have you explain your idea before they start disallowing it and fining you silly. If you sell and buy the same funds, its a wash. If you sell the S&P 500 and buy the Large Cap Index - no wash, and you'd be fine under current regulations to do so.
Just to clarify, a wash is selling and buying the same stock within 30 days BUT it's legal to sell and wait for 30 days and then buy the same stock right? Isn't this exactly what Tax Loss harvesting is?
by FordBiggs
Sun Feb 10, 2013 12:02 am
Forum: Personal Finance (Not Investing)
Topic: How I Transfer Over $50k to Roth IRA Each Year
Replies: 25
Views: 8983

Re: How I Transfer Over $50k to Roth IRA Each Year

Thanks too for the detailed explanation archbish99. I guess this is really dependent on your company's 401k rules. I need to find out if mine offers these (even though I have a feeling they don't). Thanks again! :beer
by FordBiggs
Sat Feb 09, 2013 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: How I Transfer Over $50k to Roth IRA Each Year
Replies: 25
Views: 8983

Re: How I Transfer Over $50k to Roth IRA Each Year

retiredjg wrote: But like the general public, a lot of folks are unaware of the opportunity and some folks just don't realize that after-tax contributions are different from Roth 401k contributions.
First time I'm hearing this. Care to explain what's the difference between after-tax contributions to 401k from Roth 401k contributions? Aren't those exactly the same? Or are you comparing it to Roth IRA?

Also, how can OP contribute up to $50k+ per year to 401k? Isn't the max only like $17,000 per year?
by FordBiggs
Fri Feb 08, 2013 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: A tax question [Filing status - Which is better]
Replies: 14
Views: 2676

Re: A tax question

I suggest you talk to someone else about tax matters other than your coworkers. I'm afraid they're wrong. It is only in unusual circumstances where MFS makes sense. Bruce Oops. Got it. I apologize to the OP for the incorrect information. :oops: As has been pointed out, that is incorrect. What probably got distorted somewhere along the way in what the OP heard is the rule that after a return has been filed with Married Filing Jointly for a given year, the MFJ return cannot be AMENDED to Married Filing Separately status after the due date for the original return. Returns originally filed as MFS can be amended to MFJ. There is no rule against switching between MFJ and MFS in different years and it would rarely make sense. And again, don't go ...
by FordBiggs
Thu Feb 07, 2013 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: A tax question [Filing status - Which is better]
Replies: 14
Views: 2676

Re: A tax question

Just be careful though, I heard that once you file as Married Joint, you can never go back to filing as Married Separate.

I'm not yet married so I don't have first hand experience with this but this is what was told to me so just be careful. Most of my coworkers who are married suggest to file Married separate because of this reason but I'm sure it's subjective based on your unique situation.
by FordBiggs
Fri Jan 25, 2013 6:04 pm
Forum: US Chapters
Topic: Happy Birthday Taylor
Replies: 81
Views: 10231

Re: Happy Birthday Taylor

Happy Birthday Taylor and congratulations! I'm pretty new here but have already gained much insight from the amount of time and effort you put to this forum. Also thanks for the Boglehead's Guide to Investment book! :sharebeer
by FordBiggs
Tue Jan 22, 2013 11:59 am
Forum: Investing - Theory, News & General
Topic: The worst [investing] advice [you have received]
Replies: 64
Views: 8029

Re: The worst advice

"You don't want to get term life insurance; you need 'Permanent' insurance." This is the second worst investing advice I got which also prompted my very first post here in the forum asking about whether I should terminate my whole life or just stick with it since I already paid premiums for my first year (which pretty much went to my sales agent). Needless to say, I surrendered the policy and just considered the $900+ premiums as tuition fee or stupid tax as one Boglehead suggested. The worst investment advice I got was from my uncle who advised me to get into penny stocks . (Worst idea ever) He likes to play in the stock market and showed me that he invested in a tech startup ITMTF where it's main product was a Real-Time chat tr...
by FordBiggs
Sat Jan 19, 2013 3:44 pm
Forum: Personal Consumer Issues
Topic: Philippines and sending money overseas
Replies: 11
Views: 1734

Re: Philippines and sending money overseas

airahcaz wrote: Can they Paypal FROM the overseas country back to us in the US?
Yes but they need to open a bank account. I suggest having your contact in the Philippines open a Unionbank EON Account. It's a cyber bank account that's specifically for connecting to PayPal. It has no maintaining balance but it does have an annual fee of P350 I believe (about $7). He can send money by first depositing to the account then sending via PayPal. Same thing happens if you send him money via PayPal, he can withdraw the money through the account. It has a debit card which he can easily use to withdraw from an ATM.
by FordBiggs
Thu Jan 17, 2013 9:37 pm
Forum: Investing - Theory, News & General
Topic: If you were to start a mutual fund, what would you name it?
Replies: 38
Views: 2831

Re: If you were to start a mutual fund, what would you name

nirvines88 wrote:Make Money Like a Pornstar Fund (SEXXX) ER 0.69%
Invest only in pornography conglomerates and strip club REITs.
Advertising/Motto: "Barely legal investment returns." & "Good investing never felt so naughty." & "Higher returns never came so fast."
Don't forget the annual shareholders meeting in Las Vegas :twisted:
by FordBiggs
Thu Jan 17, 2013 9:14 pm
Forum: Personal Consumer Issues
Topic: Philippines and sending money overseas
Replies: 11
Views: 1734

Re: Philippines and sending money overseas

I'm not really sure what the best way is but I send money through Xoom. It's fast, convenient and cheaper compared to Western Union. They also have money back guarantee and great customer support (I've called them several times and you get connected to a call center in the Phils which is 24-7). I think to make it even more convenient (or cheaper? I havent really compared it) is to ask your receiver to open a bank account in the Phils (my receiver has the BDO Kabayan account) and I send via Xoom as a direct deposit to the bank account and not as a cash for pick-up.

Good luck kapatid :beer
by FordBiggs
Thu Jan 17, 2013 10:15 am
Forum: Personal Investments
Topic: Berkshire Hathway B Fund - Fun Money - Worth It?
Replies: 36
Views: 3771

Re: Birkshire Hathway B Fund - Fun Money - Worth It?

ofcmetz wrote:When I went to Omaha this last summer for the College World Series, I had beers with some locals. One life long resident said that he was annoyed by many of the pilgrims for Buffet convention. He basically said the reason was so many of them were so frugal that they wouldn't spend money on anything. I just laughed.
Hahaha. First world problems.
by FordBiggs
Thu Jan 17, 2013 9:29 am
Forum: Personal Investments
Topic: Berkshire Hathway B Fund - Fun Money - Worth It?
Replies: 36
Views: 3771

Re: Birkshire Hathway B Fund - Fun Money - Worth It?

jacoavlu wrote:one B share is all that is needed. It's a big annual event in Omaha. B shares are non-voting shares I believe
Wow. That sounds really cool. Thanks :sharebeer
by FordBiggs
Thu Jan 17, 2013 9:24 am
Forum: Personal Consumer Issues
Topic: Would you buy a used laptop?
Replies: 20
Views: 1791

Re: Would you buy a used laptop?

You might want to consider refurbished laptops instead of used ones if you're after cheap electronics. I remember reading a comment from reddit about why refurbished items can be a good buy. I'm an accountant and strongly recommend refurbished products. So... what does accounting have to do with it? When products are sold, they often aren't tested first. They go in the box and ship out. Some are duds and some are damaged in transit. Now, when a product is returned, that's a financial hit. You have to ship out another and usually lose the profit on that sale. Further, you then have a damaged product that cannot be sold at full price even when repaired. That's another hit to profits. Accountants hate that! So do CEOs. Now, the profit margin g...
by FordBiggs
Thu Jan 17, 2013 9:16 am
Forum: Personal Investments
Topic: Berkshire Hathway B Fund - Fun Money - Worth It?
Replies: 36
Views: 3771

Re: Birkshire Hathway B Fund - Fun Money - Worth It?

dbr wrote:
jacoavlu wrote:if nothing else owning a little is fun bc you get a copy of the annual report and you can go to the annual meeting, browse at Borsheims, Warren even spends time there during the event selling jewelry, have a dinner at Gorat's, dessert at Dairy Queen, good times
That is a very good point, but I assume it only takes one share to get those things.
I'm pretty sure this was sarcasm :beer but I'm curious, how much shares would one need to have to be invited into these annual meetings? I'm pretty sure you won't get in with just a $3,000 stake with the company...
by FordBiggs
Wed Jan 16, 2013 9:42 pm
Forum: Personal Consumer Issues
Topic: FAFSA Rules [Free Application for Federal Student Aid]
Replies: 19
Views: 2927

Re: FAFSA Rules

Jerilynn wrote:
jasonlitka wrote:Heh. So the kid is ready to apply for college, parents get divorced, lower-income parent gets custody but they continue to live together, parents get remarried after college is done. Sounds like a plan to me.
that would be considered 'gaming the system', I wouldn't recommend it. ;)
Still very interesting plan though :wink: this kind of reminds me about the thread where (because of the newly passed tax laws that only affect single filers earning $400,000 and married joint filers earning $450,000) it's a lot cheaper for couples to get divorced if both are earning around $300,000 each. If I remember correctly, they can save a about $27,000 per year by getting divorced.

Ah the sanctity of marriage :beer
by FordBiggs
Wed Jan 16, 2013 2:48 pm
Forum: Personal Investments
Topic: Portfolio help for 23 year old
Replies: 42
Views: 5338

Re: Portfolio help for 23 year old

The posts above provided by Bob's... are a good back of the napkin estimate of taxable income. The absolute best way is to fill out your own tax forms. I re-read Bob's posts on the earlier part of this thread and everything is so much clearer now! lol :o $85,000 gross income - $2,500 pre-tax health, dental, and disability insurance premiums and any FSA contributions withheld from your pay (guess) - $17,500 401k ---------- $65,000 AGI --> This puts you in the student loan interest deduction phaseout, which adds a tiny bit to your federal marginal rate. Moot if you pay off the debt immediately. - $6,100 standard deduction (more on this later) - $3,900 personal exemption ---------- $55,000 taxable income --> solidly in the 25% bracket I just ...
by FordBiggs
Wed Jan 16, 2013 1:51 pm
Forum: Personal Investments
Topic: Portfolio help for 23 year old
Replies: 42
Views: 5338

Re: Portfolio help for 23 year old

What your tax bracket is, is irrelevant and not applicable to your employer. They withhold based on your withholding amount calculated by your W-4. Social Security and Medicare payroll taxes are based on your gross income (generally). Got it! I had to Google what a W-4 looks like and I do remember filling up this document when I first got hired. Thank you! Example: marginalTaxRate = 0.15 RothContrib = 1000 AmountYouPayToMakeThatContribution = RothContrib / (1 - marginalTaxRate ) So, to make a $1,000 Roth contribution where all of those dollars are in the 15% Marginal Tax Rate : 1000 / (1 - 0.15) which is: 1000/0.85 which is: $1,176.47 meaning you paid $176.47 in taxes to put $1,000 in a Roth. 15% of $1,176.47 is $176.47, leaving $1,000 to ...
by FordBiggs
Wed Jan 16, 2013 10:58 am
Forum: Personal Investments
Topic: Portfolio help for 23 year old
Replies: 42
Views: 5338

Re: Portfolio help for 23 year old

Hi Bob's not my name. Thanks for the detailed explanation. Sorry for the late reply as well. Honestly, I had a hard time digesting the information so I had to read up about them first. Also, I the child credits which you used as an example don't really apply to me yet (since I'm single @ age 23) and never really bothered to research and learn them. I read the education credits you linked to and this is really more applicable to me. I do remember using some of these credits last year when I did my 2011 taxes via TurboTax. Thanks again. I will read more and see how I can still take advantage of them (I'm not sure if I will be eligible for 2012 because I was approved for Financial Aid for last year) Lastly, I edited my reply above: If I am rea...
by FordBiggs
Sun Jan 13, 2013 10:44 pm
Forum: Personal Investments
Topic: Portfolio help for 23 year old
Replies: 42
Views: 5338

Re: Portfolio help for 23 year old

Is this true? This kind of blew my mind. And made me re-think my current distributions where I'm contributing to my ROTH 401k BUT this argument is leaning me towards Traditional 401k. Well, there seems to be a lot of discussion about this. One of the best posts I read is from this thread in 2010: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=61529 Thanks for the link hoppy08520. I'm reading this right now. I'm actually the same as OP where-in I also live in NYC, 23 years old, Federal Tax: 25%, State Tax: 6.45%, City tax: 3.39% but my current income is lower at $45k. (Gross income for 2012) I'm full-time working but also studying though so my income is going to increase when I finish College (In 2 years). It will most likely jump...
by FordBiggs
Sun Jan 13, 2013 8:10 pm
Forum: Personal Investments
Topic: Portfolio help for 23 year old
Replies: 42
Views: 5338

Re: Portfolio help for 23 year old

I showed in a previous post Commutative Law of Multiplication that if the marginal tax rate at retirement is the same as it is now, the Traditional and Roth 401(k)’s are equivalent. If the marginal tax rate is higher now than in retirement, one is better off contributing to a Traditional 401k. If the current marginal tax rate is lower, one is better off contributing to a Roth 401k. But that applies only to the marginal dollar, which is the last dollar you can shift between Traditional and Roth 401(k). It is not necessarily the case for the entire contribution or the average dollar. The tax system in the United States is progressive and it will probably stay that way. That means that income is taxed at increasing rates as it goes higher. Ev...
by FordBiggs
Sun Jan 13, 2013 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: AMEX for 1% savings rate?
Replies: 20
Views: 2666

Re: AMEX for 1% savings rate?

What about the ability to withdraw money via ATM? (this might be going against your main objective of "saving" that you can easily access your funds but I like having a backup plan of accessing my funds asap in case of emergencies). ATM withdrawals are usually limited to a few hundred dollars a day. They can help with really small emergencies. Large ones still need ACH or wire transfer. But if a few hundred dollars a day helps, sure. What is the difference of a savings account vs. money market? They both have the same rate. You get a checkbook and a debit card from the money market account. Differences Between Ally Bank's Savings and Money Market Accounts Yup. This is right. The ALLY Money Market specifically limits withdrawal on...
by FordBiggs
Sun Jan 13, 2013 7:16 am
Forum: Personal Finance (Not Investing)
Topic: AMEX for 1% savings rate?
Replies: 20
Views: 2666

Re: AMEX for 1% savings rate?

Does anybody have any experience with AMEX or Ally for savings? What possible differences are there between one savings account and another besides the rate? They all transfer by ACH. All limit to 6 withdrawals per month by federal regulations. Rates are practically the same: - Ally 0.95% - AmEx 0.90% - CIT Bank 0.90% (1.00% for > $25k) - Barclays 1.00% The only difference I can think of would be ACH speed and transfer limit. What about the ability to withdraw money via ATM? (this might be going against your main objective of "saving" that you can easily access your funds but I like having a backup plan of accessing my funds asap in case of emergencies). I opened up a Money Market savings account with ALLY since this plan include...
by FordBiggs
Tue Jan 08, 2013 12:52 pm
Forum: Investing - Theory, News & General
Topic: How do you sell winners and buy losers when Rebalancing?
Replies: 22
Views: 2516

Re: Bogleheads Guide and Common Sense on Mutual Funds

FordBiggs: You have received good Replies to most of your questions. I'll answer this one: I'm seeing Bogle's Common Sense on Mutual Funds as also a good one and I might pick this up. Is this a more advance continuation from The Bogleheads' Guide to Investing ? In my opinion, your question contains the answer. Mr. Bogle's Common Sense on Mutual Funds is a beautifully written and an excellent "advance continuation of The Bogleheads' Guide to Investing ." Best wishes. Taylor Thank you Taylor. I was already planning to buy this book but with your recommendation, I'm definitely getting it! Thank you and thanks to everyone for all the help! This forum is amazing and I'm so glad that I was introduced to this community! :sharebeer
by FordBiggs
Tue Jan 08, 2013 10:34 am
Forum: Investing - Theory, News & General
Topic: How do you sell winners and buy losers when Rebalancing?
Replies: 22
Views: 2516

Re: How do you sell winners and buy losers when Rebalancing?

STC wrote:
FordBiggs wrote:OH WOW. I've been reading through all your replies and I feel so stupid for even asking this question. I guess I was making it more complicated than it really was. :oops:

My thinking was I had to "keep track" and research which specific funds were the winners and losers to be able to do this correctly. But pretty much, my asset allocations change because of the funds gaining and losing and I just need to re-balance back to my original asset-allocations!

DUH! Thaaanks so much for the detailed replies guys! :sharebeer
You got it. :beer
Haha. Thanks! This reminds me to stick with KISS - Keep It Simple Stupid! :oops:
by FordBiggs
Tue Jan 08, 2013 10:29 am
Forum: Investing - Theory, News & General
Topic: How do you sell winners and buy losers when Rebalancing?
Replies: 22
Views: 2516

Re: How do you sell winners and buy losers when Rebalancing?

OH WOW. I've been reading through all your replies and I feel so stupid for even asking this question. I guess I was making it more complicated than it really was. :oops:

My thinking was I had to "keep track" and research which specific funds were the winners and losers to be able to do this correctly. But pretty much, my asset allocations change because of the funds gaining and losing and I just need to re-balance back to my original asset-allocations!

DUH! Thaaanks so much for the detailed replies guys! :sharebeer
by FordBiggs
Tue Jan 08, 2013 10:16 am
Forum: Investing - Theory, News & General
Topic: How do you sell winners and buy losers when Rebalancing?
Replies: 22
Views: 2516

Re: How do you sell winners and buy losers when Rebalancing?

Let's break it down first. Do you know how to sell any shares of any of your funds? Do you know how to buy shares of your funds? Do you know how to tell when you have a gain in a fund? Do you know how to tell when you have a loss in a fund? When I read your answers, I can answer better your question. My questions might be a little advanced because as of the moment, because I haven't opened up a Roth IRA with Vanguard (I plan to) and I don't have a taxable mutual fund account. The only investments I have now are a Money Market savings account with ALLY, Chase Checking/Savings account and my company 401k with Diversified (Divinvest.com) To answer your questions: Do you know how to sell any shares of any of your funds? As of the money - No I ...
by FordBiggs
Tue Jan 08, 2013 9:50 am
Forum: Investing - Theory, News & General
Topic: How do you sell winners and buy losers when Rebalancing?
Replies: 22
Views: 2516

How do you sell winners and buy losers when Rebalancing?

Hi Bogleheads :) So I've been really loving this forum and been coming back to it almost everyday. I've recently been reading/watching the Boglehead's Investment Philosophy and under the ASSET ALLOCATION stage, there's a tip that when you try to re-balance your allocations, it's always a good idea to sell your winners and buy the losers (very practical and follows the sell high and buy low strategy). What I don't understand is how exactly can you do this when following a "Passive" Boglehead strategy? I'm thinking in the example of a simple three-fund portfolio. Let's say (for example) my asset allocation is Stocks 80%/ Bonds 20% with these funds: Vanguard Total Stock Market Index Fund (VTSMX) - 65% Vanguard Total International Sto...
by FordBiggs
Mon Jan 07, 2013 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Finally Debt Free..now what?
Replies: 25
Views: 3661

Re: Finally Debt Free..now what?

Congratulations! This is a great position to be in especially at your age and also be earning a pretty good monthly salary. I think most of the advice here are pretty spot on and just take advantage and max out all your tax-advantage accounts before investing in taxable accounts. Also, the most important advice from here is to enjoy life! We're saving money and keeping it simple to give us more time to be able to savor and enjoy life! :sharebeer
by FordBiggs
Thu Jan 03, 2013 9:07 am
Forum: Investing - Theory, News & General
Topic: Why do Vanguard and Fidelity have such weak passwords?
Replies: 86
Views: 9780

Re: Why do Vanguard and Fidelity have such weak passwords?

Vanguard disregards Capital Letters in Passwords. After reading your post, I tried to log in by changing some characters in my password to uppercase. To my horror, I was logged in! This is truly bizarre - much worse than I thought (simply a 10 character limitation). I just checked, Fidelity is not case sensitive either! This is crazy. I complained to both VG & fido & encourage everyone else too also. We get all this info everywhere about strong passwords & mixing upper and lower case & they throw it all away :oops: Oh wow! I'm really surprised! I haven't opened an account with Vanguard but I'm planning to. Don't they accept special characters like $%#? Or are they really just strictly alphanumeric max of 10 characters? This...
by FordBiggs
Thu Dec 20, 2012 3:59 am
Forum: Personal Consumer Issues
Topic: Grinch [delivered package theft]
Replies: 40
Views: 4498

Re: Damm Grinch around my neighborhood

1. Should I report this to my local precinct? 2. Will the shipper(Amazon) reship another item? 3. Are postman suppose to put my mail inside the mail box instead of leaving my regular mail on the floor? 1 - Yes and it seems like you already plan to file a police report. 2 - Yes! I had the same exact experience (although I wasn't sure if it was theft or just a wrong delivery on UPS) but basically, I ordered an electric heater from Amazon. I signed up for their "mobile service" (you should look into this if you haven't yet) - it's free and you get text messages on your shipment details if it was already shipped or it was already delivered with a time stamp. I got a message saying it was delivered but I did not see anything on our fr...
by FordBiggs
Wed Dec 19, 2012 2:29 pm
Forum: Investing - Theory, News & General
Topic: "Don't Neglect Tax-Loss Selling as 2012 Winds Down"
Replies: 14
Views: 2107

Re: "Don't Neglect Tax-Loss Selling as 2012 Winds Down"

FrugalInvestor wrote:Capital gains or losses may be generated from the sale of stocks or mutual funds alike. In a taxable account losses from either one will produce a similar tax benefit. There is no benefit within a 401(k) or Roth.
Got it! Thanks FrugalInvestor.
Default User BR wrote:Wrong. Mutual funds, ETFs, even bonds can all have capital gains or losses. Real estate as well, although more complicated because of personal residence considerations.
I see. I thought it was a different terminology for Mutual funds, bonds etc. Thanks for the clarification!