Search found 153 matches

by MooreBonds
Thu Nov 27, 2014 2:41 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Defined Maturity Bond Funds?
Replies: 12
Views: 2045

Re: Thoughts on Defined Maturity Bond Funds?

I hold two municipal target maturity funds (MTT, 2021 and NID, 2023)I like it because it offers a decent after-tax yield, and I know that it will mature at a certain date, without having to worry about crazy high gyrations with NAV (there will be some as the maturity date nears, but not like a long-term fund would be).
by MooreBonds
Sun Nov 23, 2014 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: My Health care monthly premiums doubled after ACA
Replies: 46
Views: 7410

Re: My Health care monthly premiums doubled after ACA

My Health care monthly premiums doubled after ACA. Did any of you have that happen to you. I am kind of shocked I thought it would go up but not like that. I just got a letter that my old insurance is letting me go. I think my old plan does not met the ACA standards. It all depends on the state and particular plan you had. There are "winners" and there are "loosers" under ACA. In Missouri, my grandfathered plan (which is only allowed to continue for another year into 2015) is currently at $60/mo for a 37 year old healthy male HSA policy with a $5,100 deductible. Looking at policies that are ACA compliant on the exchange, my bronze plans with a deductible of about $6,000 are about $250/month. Or roughly 4x as much. So, y...
by MooreBonds
Sun Nov 23, 2014 10:27 am
Forum: Personal Consumer Issues
Topic: repositioning cruise to Europe?
Replies: 11
Views: 2098

Re: repositioning cruise to Europe?

SailingAway wrote:
Probably the best deal I ever stumbled across in my life. And being frugal :D , my wife says cheap :annoyed , I enjoyed it all the more.
So it sounds like not only did you get a repo cruise (which are cheaper to begin with), but you booked a last-minute repo-cruise....which are even cheaper still! :)
by MooreBonds
Sat Nov 22, 2014 1:15 pm
Forum: Personal Investments
Topic: Retire Health Savings Plans
Replies: 3
Views: 985

Re: Retire Health Savings Plans

* How does inheritance work with this fund? >> No inheritance at least in my employer plan So am I reading this correctly in that if you pass on with any money in this account, the University/employer then gains control of it, and NOT your heirs? If that's the case, I would be hesitant to put any money into it. All it offers is tax-free growth and income, with ALL money subject to being forfeited when you pass on. You could achieve similar tax-free income by buying municipal bonds. Granted, not the same growth potential as stocks, but at least you can leave your heirs the assets. If you were able to get a tax deduction like an HSA as soon as you contribute to it, then I would suggest you contribute to it only when you know you have signifi...
by MooreBonds
Sat Nov 22, 2014 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Pension buyout offer - Accept or reject
Replies: 46
Views: 12089

Re: Pension buyout offer - Accept or reject

I find it concerning that in threads like these, where BH's are trying to help folks decide on whether or not to take a lump sum or an annuity, that inevitably comparisons are made between an "annuity pay-out rate" and expected returns on investing the lump sum in stocks or bonds. In my way of thinking, the 5.3% "return" that #Cruncher calculated is effectively a return on investment + a return of principle. That is very different from the expected yield of a high quality long term-bond, which is just a measure of return on investment. Unlike the bond, when you die, you (or your heirs) don't get the principle back on the annuity. A fairer comparison, if one even needs to be made, would be to back out the effective disco...
by MooreBonds
Sat Nov 22, 2014 8:00 am
Forum: Personal Finance (Not Investing)
Topic: How should wife counter salary offer within current co.?
Replies: 60
Views: 8208

Re: How should wife counter salary offer within current co.?

Any way to find out what people in comparable positions in the company are making? No, she said that is not possible. Always worth it to try www.glassdoor.com It's a website where people can post anonymous reviews and salary ranges on any company. Even some smaller companies might have a post or two. Also, as others have noted, it's still a "buyer's market" (i.e. employers have the power) in many industries due to sluggish job growth. For stellar performers worth their weight, there will always be a demand. The challenge is for your wife to figure out truly how special and desirable her skill set and performance is to the company. Also, what kind of future growth is there? is this new position a stepping stone to something even b...
by MooreBonds
Wed Nov 12, 2014 5:19 pm
Forum: Personal Investments
Topic: Limits on Brokered CD Death Put
Replies: 13
Views: 3600

Re: Limits on Brokered CD Death Put

What is a "survivor option"? See http://www.bogleheads.org/forum/viewtopic.php?f=1&t=114245 and several other threads referenced therein. Basically, heirs can redeem at par after the owner's death. If the owner doesn't need the principal, it can be smart to buy long-term, high-coupon CDs, collect the higher interest over their lifetime, and heirs redeem the principal. The real bonanza was in 2007/2008/2009 when there was a slew of various CDs with a variety of rate equations. Some with first-year high 'teaser rates', and years 2-xx with lower rates. Some had a rate based on a spread, like (30 year Treasury rate minus 5 year Treasury rate) times 4.5. Some paid out a flat coupon as long as LIBOR is under a certain rate. Basical...
by MooreBonds
Tue Nov 11, 2014 5:18 pm
Forum: Personal Investments
Topic: Limits on Brokered CD Death Put
Replies: 13
Views: 3600

Re: Limits on Brokered CD Death Put

Thanks, both of you! MooreBonds, I've found the general terms for Goldman Sachs CDs, but not been able to find the "supplement" / prospectus for my specific CDs or the one I'm looking at. Are those conveniently findable? There's not just one website I've found that has all old prospectusii. But what I have had some success with is in simply Googling the CUSIP number for the CD. It should appear on your monthly brokerage statement, or somewhere in the documentation. I am in the process of converting bank held CDs to Vanguard brokered CDs as they mature. I recently spoke with both my Flagship representative and someone from the fixed income desk as POD procedures were important to me. Both advised that upon the death of a brokered ...
by MooreBonds
Tue Nov 11, 2014 9:51 am
Forum: Personal Investments
Topic: Limits on Brokered CD Death Put
Replies: 13
Views: 3600

Re: Limits on Brokered CD Death Put

You are correct - there are limitations on what can be redeemed on a "death put" CD. However, rather than it being an 'issuer question', it's really an 'issue by issue' basis, as different CDs have different interest rate features, term features, etc. So put on a pot of coffee (or pour a tall glass of your other favorite caffeinated beverage), get nice and comfy, and start reading through the prospectus of each CD to find out what the specific provisions of each CD are. At one time, I had about 25 different CDs in my grandmother's account (I'm a big believer in diversification, as this was in 2006-2010, when rates were all over the place, and there was as much of a chance of rates dropping as raising or as staying the same). I did...
by MooreBonds
Sun Feb 02, 2014 2:20 pm
Forum: Personal Investments
Topic: Portfolio check - 29/30 yr. old single guy
Replies: 10
Views: 1955

Re: Portfolio check - 29/30 yr. old single guy

will have to buy health insurance by the end of next month at at least $100-$150/mo. I was at first going to touch on the health insurance aspect earlier, but left it out...but since you bring it up, keep in mind the magic number is 138% of Federal Poverty Level for your status: http://www.hca.wa.gov/hcr/me/Pages/index.aspx As a single person in WA, if your income is below 138% of FPL, then you qualify for Medicaid coverage. I am on a corporate plan, so I haven't dug into the finer details of what specific "income" they use (AGI, MAGI, etc.), but 138% of the FPL for a single person in WA (and the rest of the 48 contiguous US states) is $15,856 http://www.hca.wa.gov/hcr/me/documents/ME2014_Fact_Sheet.pdf I believe this means your ...
by MooreBonds
Sun Feb 02, 2014 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Prenuptial Agreement
Replies: 34
Views: 4811

Re: Prenuptial Agreement

Texas is a community property state which recognizes separate property. If he keeps his pre-marital assets separate, then they will still be his come divorce time. A pre-nup is not needed. While I don't have personal experience with divorce proceedings, from hearing stories from co-workers and a family member, it appears it can often simply be 'however that particular judge feels at that particular time". And if you do have substantial assets going into a marriage, how do you keep something completely separate? If I have an investment account that I never put my wife's name on, is she entitled to the increase in capital gains from our wedding day until we divorce? What about reinvested dividends that occur after our wedding day? If I ...
by MooreBonds
Sun Feb 02, 2014 10:38 am
Forum: Personal Finance (Not Investing)
Topic: What interest rate did you get on your car loan?
Replies: 71
Views: 8326

Re: What interest rate did you get on your car loan?

I bought a Kia Soul in 2009 when they had their 2010 model lineup (the 2010 model was the first year they were introduced), so they were offering 0.0% financing for 36 month loan. I don't often get people offering me $17,000 for zero interest, so I found it hard to pass them up on it. That, and the car dealer didn't offer any price differential between paying cash vs taking the financing (it was my first new car purchase, and I found out later on during the closing why they were happy to go through the paperwork of the zero interest financing - they will hit you up with any and EVERY possible add-on, from the stupid spray on your windshield for water to roll off so you don't need to use your wipers, all the way up to extended warranties). F...
by MooreBonds
Sun Feb 02, 2014 3:07 am
Forum: Investing - Theory, News & General
Topic: 22 multiple rule
Replies: 42
Views: 6339

Re: 22 multiple rule

I read an article by Jason Zweig in the WSJ today that stated, "To be assured of having enough money to fund a comfortable retirement, you should save a total of 22 times the annual income you want to earn when you retire." First, wondering the Boglehead view of this statement. Also, would this be impacted by age when you retire? 65 vs, say, 50? Thanks. The obvious first answer is that it all depends on your annual expenses. But since most people have no clue what they spend each year (they likely would underestimate their annual budget), it's easier for the press to deal in multiples of annual salary, because nearly everyone knows what their annual salary is. As many on the forum would say, retiring at 50 would warrant a more co...
by MooreBonds
Sun Feb 02, 2014 2:21 am
Forum: Personal Consumer Issues
Topic: Job search advice
Replies: 5
Views: 1016

Re: Job search advice

Hi The positions I am seeking are typically found via networking. Any members have outside the box ideas to uncover positions or any anecdotes from a recent search? Thanks A person of your salary history sounds like you have had at least some success in your field. While an executive coach could offer some help, I'd first contact every recruiter in your area (and contact many in other cities, since a recruiter's physical location has nothing to do with the location of the job they're trying to fill!). Some recruiters will simply try to put anyone's resume in front of the client, whether they are qualified or not....but there are some recruiters who will undoubtedly have quite a few positions they know of that you might qualify for. And the...
by MooreBonds
Sun Feb 02, 2014 2:06 am
Forum: Personal Investments
Topic: Portfolio check - 29/30 yr. old single guy
Replies: 10
Views: 1955

Re: Portfolio check - 29/30 yr. old single guy

The additional 401(k) contributions (IIRC, $17,500 is the max for my age) I think may be doable but just barely (I make a little less than 23k/yr, plus have to pay $300/mo rent and $126/mo for a bus pass). This is why I have been putting just enough in the 401(k) to get the match but not much more. Don't forget about the impact of the Saver's Credit on your Federal taxes: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Retirement-Savings-Contributions-Credit-%28Saver%E2%80%99s-Credit%29 Again, don't invest in a taxable account until you maximize all tax advantaged accounts. That just doesn't make sense. Given the facts he writes in his posts in this thread, your comment just doesn't make sense. 23,000 Presu...
by MooreBonds
Sat Feb 01, 2014 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: What is your definition of "Financially Wealthy?"
Replies: 110
Views: 14504

Re: What is your definition of "Wealthy?"

I realize that the question seeks to address the "psychological" aspects of whether people feel wealthy, but I also think it makes no common sense, considered objectively in terms of dollars, to assert that a household with access to $300,000 per year is actually less well off, and has fewer options in its financial behavior, than a household with access to $30,000. +1 I understand the idea of considering expenses, but at some level of income you're wealthy regardless of what you spend. If they desired, a person with a 300k income could decide to live like someone making 30k and build tons of wealth quickly. That's not an option for folks making 30k. There is no ceiling on what you can spend, but there is a floor. While it's true...
by MooreBonds
Sat Feb 01, 2014 4:32 pm
Forum: Personal Investments
Topic: Dividend Reinvestment for non-Vanguard ETFs
Replies: 6
Views: 1157

Re: Dividend Reinvestment for non-Vanguard ETFs

Yes, VBS will DRIP many ETFs. However, just as with other brokers, not any and every ETF is DRIPable - it depends largely on the liquidity of the ETF, as well as the transfer agent/fund sponsor. If the average daily volume is just a few hundred shares, odds are, it isn't DRIPable. Also, there may be a few transfer agents that don't deal with decimal shares that will work with brokers to set up DRIPs. If you ask Vanguard ahead of time, they could probably tell you - but once you buy the ETF, you have to wait for the trade to settle in your account before you can go into your account options and see if it's DRIPable. If it's not,it'll simply say "N/A" under the "Dividends and Capital Gains" column options for reinvesting o...
by MooreBonds
Sat Feb 01, 2014 10:59 am
Forum: Personal Consumer Issues
Topic: Good financial decision with unexpected consequences?
Replies: 3
Views: 1067

Re: Good financial decision with unexpected consequences?

I started investing in 1993, pooling together my and my siblings' funds. I picked individual stocks, and saw the portfolio oscillate wildly from break-even to losses of 30%, back to break-even, then a 50% loss, back to break-even, then a 30% loss. After making it back to break even for the 3rd time around 2000, and seeing most other investments skyrocketing, I resisted the urge to buy internet stocks with infinite multiples, and just sought out more consistent returns of Muni bond CEFs and REITs. Thankfully, those 2 asset classes performed pretty well over the next 3-4 years compared to everything else, which helped me make up a little bit of lost ground from the hey day of the mid/late 90s, as I then started diversifying into more stable c...
by MooreBonds
Sat Feb 01, 2014 10:54 am
Forum: Personal Consumer Issues
Topic: Good free documentaries
Replies: 15
Views: 3317

Re: Good free documentaries

While it's not a documentary, "Ray", a movie on Ray Charles' life, was incredibly fascinating to me. I'm sure there may have been a little literary license employed, but as a (at the time) early 30-something guy who didn't really know much about Ray Charles and assumed the 2+ hour movie would be boring, was quite captivated about the various highs and lows about his life. I wouldn't describe him as a great role model in every area, but overall I learned quite a bit about him.
by MooreBonds
Sun Jan 26, 2014 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Building a Home on vacant land
Replies: 10
Views: 1571

Re: Building a Home on vacant land

They want maximum privacy so will probably clear a limestone path to the center of the tract where they will clear out half an acre to build the house and have a yard area. This sounds like the potential for a "whooops": if you go with a standard floorplan from a local builder, make sure they look at the impact of having all of those trees up close for privacy - those trees could end up blocking a LOT of natural sunlight, making a 'normal' house with average size/numbers of windows from one of their new subdivision developments (which would have very few trees) leaving everything feeling too dark inside. Pay careful attention to things like Southern exposure, height of the house/windows, and how tall and dense the surrounding tre...
by MooreBonds
Sun Jan 26, 2014 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: .
Replies: 20
Views: 60377

Re: Mother-In-Law Suite/Apartment

There is also a growing industry in prefabricated elder care modular homes. The most developed company (e.g. a company past the concept stage and on to the manufacturing stage) that I am aware of is http://medcottage.com/ (although I am sure there are other companies doing this out there). These would be for healthy, but perhaps limited mobility, elderly people. The medcottage.com website product looks pretty neat...but the cost range is roughly the same for their 3 models: from $190/sq ft to $207/sq ft, which is a 288sq ft model up to a 605 sq ft model. And that's just for the pre-fab house - you still need a contractor (or yourself) to do site prep, taking electric, water, and sewer to the cottage. And for some homes, the extra electric ...
by MooreBonds
Sun Jan 26, 2014 8:20 am
Forum: Personal Finance (Not Investing)
Topic: FINRA Investor Complaint
Replies: 7
Views: 1241

Re: FINRA Investor Complaint

In 2008 my father inlaw was sold 50K of nontraded REIT. He was told it would have a similar risk as bonds but would pay slightly more interest. It paid interest for a couple of years then it stopped and it is now worth less than half of what he paid for it. I told him it was a very expensive lesson and there was proably nothing he could do. While surfing the internet I found thre are several complaints and lawsuits against KBS and brokers who sold their product. I am not a big fan of lawyers, but was looking at information oon FINRA (Financial Industry Regulatory Authority) and was wondering if anyone similar complaints or experiences with them. As a side note, I also invested in a private REIT back in around 2006. The sponsor was AEI fund...
by MooreBonds
Sun Jan 26, 2014 8:08 am
Forum: Personal Investments
Topic: 401k Question for HCE
Replies: 17
Views: 1768

Re: 401k Question for HCE

Eric in DC wrote:Thanks for the replies all. This is brutal. I can seemingly now get very little into tax-advantaged accounts. 5500 with backdoor IRA and 4% with 401k. Seems like this will make growing the nest egg much more challenging.
Depending on your compensation and what 4% comes to, and your plan's 401k investment choices, it could very well be worth it to skip the 401k and instead max out a Traditional IRA with $5,500 (or whatever the limit is) of your choosing. You then get guaranteed rock-bottom expense ratios (compared to a typical 401k plan) with roughly the same $ contribution each year, and you can still deduct it off of your taxes.
by MooreBonds
Sun Jan 26, 2014 8:03 am
Forum: Personal Consumer Issues
Topic: Wild World of [Home] Flippers
Replies: 16
Views: 3401

Re: Wild World of [Home] Flippers

john94549 wrote: FWIW, I accepted today. Quite a fair offer, might I add. No counter, hit my number. All cash, no contingencies.
Congrats on a quick process....just out of curiosity, since you had several competing offers, did they offer a decent escrow deposit, or just $1,000? A higher deposit/escrow typically indicates a more serious offer, and less chance they'll back out...along with asking for proof of funds - although with a computer, anyone could fabricate a .pdf or screenshot to make it look like their bank statement or investment account has $1,000,000.
by MooreBonds
Sat Jan 25, 2014 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: High Umbrella Limits - A waste
Replies: 82
Views: 19202

Re: High Umbrella Limits - A waste

I'm trying to decide how much personal umbrella insurance someone should buy. I assume that someone would need a commercial umbrella that covered their liability for acts committed during the "course and scope" of their employment. If you're saying a corporation with a $5M umbrella and $5M in assets is the same as an individual with a $5M umbrella and $5M in assets, I think there are two differences: 1) I think a semi is inherently more dangerous than a car or SUV and more likely to result in an accident that merits large damage awards. Every time someone gets in a car and is driving somewhere between 8:00am and 5:00pm while they're on the clock should (technically) be covered by their employer's policy. Therefore, a "busine...
by MooreBonds
Sat Jan 25, 2014 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: High Umbrella Limits - A waste
Replies: 82
Views: 19202

Re: High Umbrella Limits - A waste

I only included cases where an individual, not in the course or scope of employment, was named as a defendant. While I agree with your other points of logic and reasoning, I disagree with the above. Most lawyers will pursue the "deepest pockets" theory, and go after anyone and everyone who has the deep(est) pockets. While you may not drive for an employer, the fact that someone was driving an automobile and caused an accident doesn't matter if they were doing it for work or for leisure - the plantiff will sue just the same. The fact that the deepest pocketed potential defendant is an individual with a $5MM or $10MM umbrella vs a corporation with a $5MM or $10MM umbrella is irrelevant - it's the same potential insurance coverage p...
by MooreBonds
Sat Jan 25, 2014 3:28 pm
Forum: Personal Investments
Topic: Starting a 30 Year TIPS Ladder at Age 25 (Roth IRA)
Replies: 51
Views: 5282

Re: Starting a 30 Year TIPS Ladder at Age 25 (Roth IRA)

I'm thinking hard about doing this in my Roth IRA. If I use my full contribution ($5,500) to buy a TIPS contract each year, this ladder would probably never comprise my full bond allocation. So I'd still need some TBM in my 401k; just less than I have now. Does anyone see any issues with this? Does it sound reasonable? The idea seems like a good fit for anyone who is young and plans to max out both 401k and Roth IRA in the foreseeable future. Kudos on putting it in a tax-efficient account. As a 37 year young investor, I could think of many worse things for you to be doing at 25. As you noted, this is only about 15% of your contributions....and 15% of a 25 year old's portfolio in bonds (mostly in 30year TIPS), while a little more than I wou...
by MooreBonds
Fri Jan 24, 2014 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Young, rich, hopefully not dumb
Replies: 51
Views: 8656

Re: Young, rich, hopefully not dumb

It's a shame you don't have children yet - I believe (but am not certain) that you have to specifically name heirs in order to set up a GRAT (Grantor Retained Annuity Trust). http://www.bbt.com/bbtdotcom/wealth/retirement-and-planning/trusts-and-estates/grantor-retained-annuity-trust.page While you mentioned you don't want to "give up control"....with your assets, a GRAT would be perfect in today's record low interest rate environment, and with your ability to specify a length of term that is long (30+ years). The short of it is, you set up your own individual "annuity" in a GRAT. The IRS publishes the official rate that you use to calculate for investments held in a GRAT. Then, each year, you have to withdraw a certain ...
by MooreBonds
Sat Jan 18, 2014 9:23 am
Forum: Personal Investments
Topic: Making $175k/year. What do I do with it all?
Replies: 39
Views: 10856

Re: Making $175k/year. What do I do with it all?

Lastly, if you have a home office, a company car to go from home office to business office, any business related travel, etc these are all tax deductible business expenses that you don't get if you are not self employed. Don't overlook this benefit - the IRS gives you 100% legal and reasonable expenses that you can legitimately deduct against your revenue as self-employed expenses. You are allowed to declare a "home base" (most self-employed people with just themselves as an employee use their house). Then, ANY business travel from your house to the office, jobsite, airport, etc. (for business purposes) is a deductible expense at the current IRS mileage rate (I believe $.555/mile), unless you choose to keep gas receipts and depre...
by MooreBonds
Sat Jan 11, 2014 6:18 pm
Forum: Personal Investments
Topic: Seeking advice with investments and trust
Replies: 13
Views: 1613

Re: Seeking advice with investments and trust

Duckie, thanks for your feedback. Actually, I double checked and you can buy Vanguard Admiral Shares at Schwab. However, your point is taken, and perhaps it makes more sense for me to open a Vanguard Account instead. However, can you only buy Vanguard funds at Vanguard? Perhaps I might eventually want to buy a Michigan bond fund or a few particular stocks, for instance, that aren't available through Vanguard, so that's why I thought Schwab might be better for me. If you have $1MM or more in VANGUARD mutual funds or ETFs held at Vanguard, then you qualify for Flagship status: https://investor.vanguard.com/what-we-offer/personal-services/flagship-and-flagship-select-services Among the benefits: --Free financial plan with a CFP at Vanguard! -...
by MooreBonds
Sat Jan 11, 2014 8:18 am
Forum: Personal Investments
Topic: Brokered CD Survivor Option
Replies: 23
Views: 5783

Re: Brokered CD Survivor Option

I didn't know there were prospectuses on the normal bank-issued fixed rate brokered CDs, I got one CUSIP and tried to do some research but found nothing. This was a simple bank CD, 3%, 20 year, brokered CD. I'm worried now about a similar rule, that the death put only applies if you were the original purchaser! Yes, they typically do have prospectuses on them, and is a good idea to read them. Congrats on doing your research - I can't recall at this point if many of the CDs I purchased for my grandmother had the similar clause that you had to be the original purchaser or not (it was several years ago), but the CDs she purchased were always at the initial issue with the broker or at Vanguard. I do question about the "original purchaser&...
by MooreBonds
Fri Jan 10, 2014 8:42 pm
Forum: Personal Investments
Topic: Brokered CD Survivor Option
Replies: 23
Views: 5783

Re: Brokered CD Survivor Option

I pursued this strategy with my grandmother's portfolio, from roughly 2004-2011 (when she passed on). Some of the CDs were paying very generous rates, and all of the ones I purchased for her account had the death-put/estate feature. I diversified her portfolio, and had up to 25 at the time of her passing. Back then, the rage of the day were 'spread CDs', where the interest rate was often fixed for the first 6 or 12 months, and afterwards, the interest earned was a multiple of the spread between 2 rates (like the 30 year constant maturity treasury yield minus the 2 year constant maturity treasury yield) times 4%. But there were also some conditional CDs (pays out x% as long as LIBOR is Below a certain level), and other variants. I had an acc...
by MooreBonds
Thu Jan 09, 2014 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage and Money
Replies: 32
Views: 4645

Re: Marriage and Money

In regards to the restaurant, I don't think she has the expectation of me to support her financially for her culinary dreams. Her first step is starting a catering business so she would have less overhead. Once she develops a following, she wants to open a restaurant. I've asked what the timing is of this but she doesn't give me a definite answer, just "ASAP". The other thing that concerns me is I don't believe she really understands the business side of how she's going to obtain it. I have posed the questions such as "How much will it cost to open a restaurant?" "Do you know the success/failure rate of a restaurant?" "How are you going to get the money and how much are you willing to give up for investor...
by MooreBonds
Mon Jan 06, 2014 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Investing in a food truck
Replies: 24
Views: 3333

Re: Investing in a food truck

Those are all great points. This guy is trustworthy and, as someone pointed out, the upscale foodtrucks in my area are almost all credit card based. The guy is young (late 20s), grew up in the restauant industry with his parents owning an upscale restaurant as a chef. He has a college degree from a top 20 college and just loves the food biz and is very determined. He is currently a manager at a 4 star restaurant in this area and as such works crazy hours right now and doesn't mind them. We would be partners in the business and share profits. Our goal would be to leverage the food truck into something bigger and better. I applaud your interest in wanting to both leverage your experience and wanting to help an entrepreneur succeed, as well a...
by MooreBonds
Sun Jan 05, 2014 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Boglehead help in charitable giving
Replies: 23
Views: 2800

Re: Boglehead help in charitable giving

Wildebeest wrote: My spouse wants to contribute now and while a DAF is a great way of doing it. I would not have the control over the donation.
From your words above, it sounds like you view the DAF as not giving you any 'control' over it once you make the initial contribution...while you legally don't have direct control over the monies in the DAF, they most certainly will make contributions on your behalf to any legitimate tax-exempt organization. So you do still have "control" over which charities the money ultimately goes to, as well as how the money is invested. You just can't get it back for your own personal use once it goes to the DAF.
by MooreBonds
Sun Jan 05, 2014 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Living vs. saving
Replies: 75
Views: 12584

Re: Living vs. saving

I just read Millionaire next door, despite some minor "mistakes" I find myself to be a strong PAW. But how much is enough? There has to be a line somewhere between enjoying your current life while saving for your future and I am having a hard time figuring out that line. When is it okay to buy that fancy car or to fly first class? And how do you do all that without having your kids turn into super consumers? This last part scares me the most. I dread the day where a child of mine demands a BMW because he/she "deserves" it. Disclaimer: I currently don't have kids and save anywhere between 25-30% of my after tax income. Edit: made recent change in percent saved from 20-25% to 25-30% in this post It all depends on your goa...
by MooreBonds
Sun Jan 05, 2014 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Boglehead help in charitable giving
Replies: 23
Views: 2800

Re: Boglehead help in charitable giving

Donor advised Fund versus Charitable remainder Trust versus setting up a private Foundation; My spouse wants to give 10 % of income to charity yearly now. We have a trust set up which would leave a substantial amount of our estate to charity. We are 58 and 57 and my goal is to live to 100 and I selfishly hope to be outlived. My spouse wants to give the money now on a yearly basis. What would a Boglehead do? There was a recent, somewhat related thread on this topic: http://www.bogleheads.org/forum/viewtopic.php?f=2&t=127466 I have a DAF account w/ Vanguard Charitable. I set it up in 2007 with 2 donations back then, and have let the bulk of the assets grow (while distributing about 4.5% of the original donation each year). I'll likely ma...
by MooreBonds
Sun Jan 05, 2014 6:11 pm
Forum: Investing - Theory, News & General
Topic: Net Worth Survey, 2014 Edition
Replies: 149
Views: 49524

Re: Net Worth Survey, 2014 Edition

Longtimelurker wrote: Take age 37 for example. 3 responses. Average NW w/ out SS $1.5m. Average NW w/ SS $1.5m. I guess none of those three have ever paid SS taxes?
As far as your specific example goes, being one of those "age 37" datapoints (which are now up to 5 respondents), my row of data shows different values for "NW without SS/pension" and "NW with SS/pension). Even if the other age 37 fields had the exact same for these 2 values, the average NW should be different, since the field uses 7 significant digits (i.e. it doesn't round to the nearest 100,000).

So it appears the calculation/equation is incorrect for the pivot table.
by MooreBonds
Sun Jan 05, 2014 2:03 pm
Forum: Personal Investments
Topic: 29yo, $4M Windfall - Need Guidance
Replies: 12
Views: 3088

Re: 29yo, $4M Windfall - Need Guidance

Now here’s the weird part…Because of an event in my family’s business (completely separate from my job), I recently received a windfall of investment real estate ($3M+) and mutual funds (~$1M). This is the first time I have ever received a windfall of this kind. The real estate portfolio is free of mortgages and liens, and I have no intention of selling it. It generates nearly $100k in passive income. In the future, this passive income could grow to much more. Do you have full control over the real estate, or are you a minority investor? I realize you say you have no intention of selling it - but from the limited info you state above, it appears it's producing about a 3% yield. Is this $100k in passive income taxed at your full income tax ...
by MooreBonds
Sun Jan 05, 2014 10:52 am
Forum: Personal Finance (Not Investing)
Topic: SEP-IRA for myself and SIMPLE IRA for my employees
Replies: 6
Views: 962

Re: You're creating an affiliated service group

How about adopting a SEP that requires 3 years of PRIOR service. You can still do one for 2013. You already have more than 3 years in. An employee hired in 2014 isn't eligible for a contribution until 2017 at the earliest. +1 Continue to do the SEP, with the requirement that you have to have 3 years of prior service. THEN, after 3 years, switch to a SIMPLE. The SIMPLE IRA has 2 different options: 1. Match employee's contributions $1 for $1, up to 3% of salary. You can also temporarily drop that match to just 1% of salary in 2 out of 5 years. OR 2. Give every employee (including yourself) 2% of salary into their SIMPLE IRA, regardless of how much they contribute. Note that you can also have the SIMPLE IRA have a requirement that they earn a...
by MooreBonds
Sun Jan 05, 2014 10:33 am
Forum: Personal Investments
Topic: Buying I bond-Advice
Replies: 9
Views: 946

Re: Buying I bond-Advice

You may still be able to do it. When you send a payment for your taxes for 2013 which are not due until April 2014 just send $5k too much. That overpayment will then become a refund I think. Hopefully others can confirm. Laura Or, to avoid possible confusion on the IRS' end, send in an estimated tax payment (due January 15, 2014 for 2013 calendar year) for the $5k plus however much you expect to owe to ensure you have at least a $5,000 refund. There isn't a definitive equation on how the gov't sets the fixed real yield on I-bonds, but real yields have been creeping up a bit since the gov't last set the fixed rate on November 1 - increasing by 0.4% real yield on the 5 and 7-year bonds, about 0.3% real yield increase on the 10/20 year bonds ...
by MooreBonds
Sun Jan 05, 2014 9:58 am
Forum: Personal Investments
Topic: Money Show Orlando Jan 29th?
Replies: 4
Views: 876

Re: Money Show Orlando Jan 29th?

JMacDonald wrote:
Mel Lindauer wrote: Then, in 2005, the folks at the Money Show approached me and asked to host our annual Bogleheads Conference as part of their Las Vegas Money Show, and we joined them for our annual reunion. (Can you imagine the Bogleheads in Vegas?)
I can imagine the Bogleheads were playing the nickel slots. At least that is what I did the only time I have ever stayed in Las Vegas.
The wait staff that come around with the free drinks will occasionally come by the low-roller areas, so if you pace yourself, you can get a few drinks without gambling much.

What I'd want to see is how they do with researching the great deals on the buffets and other activities, so I can make some notes for a possible future trip to Vegas. :)
by MooreBonds
Sun Jan 05, 2014 9:53 am
Forum: Personal Investments
Topic: College savings for a high-income household
Replies: 46
Views: 7029

Re: College savings for a high-income household

5. Any other observations? 2 things to not forget: 1. EE Bonds - If EE bonds are cashed in to pay for educational expenses (such as college tuition), the interest earned is tax-free. Currently, the EE bonds are guaranteed to double in 20 years, which works out to roughly a 3.5% annual compounded interest rate, which would be tax-free. (I-bonds offer the same education benefits, and you could put some into those if the fixed portion bumps up a little more down the road). http://www.treasurydirect.gov/indiv/planning/plan_education.htm The challenge is that if you cash it in before 20 years, your earnings plummet to an absurdly low #, based on current rates for the EE. The I-bonds don't have as bad of a current rate. Are you interested in a 3...
by MooreBonds
Sat Jan 04, 2014 4:31 pm
Forum: Personal Consumer Issues
Topic: Investors beware... account security IS important!
Replies: 89
Views: 14860

Re: Investors beware... account security IS important!

Memorizing a 20 character password is not really that difficult. It's easy to have a different one for each account (i use different ones for each financial account) by just changing a few letters. Maybe your bank is Chase. Swap out VG (Vanguard) for CH (Chase). Say you are an IT Software Professional with an account at Chase…..ITSWProfess!onal@CH. OK, so it was 19 characters…you get the point. Or Vanguards: ITSWProfess!onal@VG Except when one website requires you to start with 2 letters, the first one Uppercase. And another website requires your password to start with a number. Another website only allows up to 8 characters in your password, WITHOUT any non-alphanumeric $*@_ characters. Another requires you to have a password that is AT L...
by MooreBonds
Sat Jan 04, 2014 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth compared to Earnings History
Replies: 19
Views: 3736

Re: Net Worth compared to Earnings History

Perhaps for the 40+ crowd Stanley's PAW formula makes sense, but not for younger savers. Many people see rapid salary increases into their mid-30's though. A 32 year old may be earning double what she was earning at 26. It seems silly to base any formula on the new higher salary she's only been pulling in for a year or two, tops. The reason the OP is proposing total earnings is that it does take into account wild income swings. As far as what it measures - it's a form of seeing how much LBYM you practice, and how "efficient"/good you are at managing your money (including managing taxes, especially for investments). Including a decent-sized inheritance as "income" and adding it to my earnings history, I'm right at about ...
by MooreBonds
Sat Jan 04, 2014 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Investing in a food truck
Replies: 24
Views: 3333

Re: Investing in a food truck

I still haven't seen any mention of how you exactly are paid. Does he rent the truck from you for a flat monthly payment? Or do you take a cut of the business' gross receipts? Or both? If his ultimate goal is to open a b&m location, that means in 3-5 years he'll possibly not need your truck anymore. that means you need to fully recover the full cost of the truck PLUS your investment return over 3-5 years. Is he willing to pay that much each month? If you share in the "profits", then you'd have to both agree on what value his labor is worth, including the prep/cleanup, and you'd both have to agree on the value of the truck usage. It sounds like he has zero risk, while you have ALL of it (in terms of the initial investment). If ...
by MooreBonds
Sat Jan 04, 2014 10:50 am
Forum: Personal Finance (Not Investing)
Topic: EE bond cash-in frustration ...
Replies: 9
Views: 1676

Re: EE bond cash-in frustration ...

I didn't try to cash them at my bank for a couple of reasons. First, they're still registered in the name of my deceased father's living trust, of which I am the sole trustee. I need them credited to my SS number, not his, and I was worried that if I cashed them at the bank, this would not get done correctly when the bank sent them in. Also, ironically, I was worried that the bank would not submit them to the Treasury soon enough, and the interest would not be credited in 2013 (which is exactly what's happening anyway). I've omitted the long story of the several hours I had to spend at my bank, getting them to guarantee my signature as trustee (which they had done for me in the past without question) on the forms I needed to send to the Tr...
by MooreBonds
Sat Jan 04, 2014 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Kid's life insurance estate planning
Replies: 15
Views: 1237

Re: Kid's life insurance estate planning

Ok, I will have my head examined, however, short of the 14 K that the IRS allows, I am not aware of a good way to transfer wealth without setting a trust or another vehicle, which I am not sure I want to do (at least not yet). I am trying to transfer wealth as it is generated without paying taxes.If the insurance option is a bad idea, then what is a good idea? And no, I am not an insurance agent (I was going to make an appointment to discuss this.....) I have term myself which I will not renew because I became self insured. I realize that the presentation can be very appealing, as you look at the relatively small premiums compared to the death benefit. Without knowing the exact type of policy, one big thing you have to keep in mind is the ...
by MooreBonds
Sat Jan 04, 2014 9:31 am
Forum: Personal Consumer Issues
Topic: Water conservation
Replies: 44
Views: 4810

Re: Water conservation

Showers are big water consumers. If people learn to use a shower like boaters use showers (turn the water off when not lathering or rinsing), it can save a lot of water that just goes down the drain. I call this a military shower. I was not in the military but I think it is how they do it. Very easy in the summer a little tougher in the winter. But I do it year round. I also take a "military shower", not only for reducing water, but I also enjoy having the soap stay on me a little bit longer to get a cleaner feeling, rather than having the soap wash off 0.05 seconds after its applied onto my skin. A few years back, CO instituted a new tax (forget the name) on water that runs off your property. Supposedly its a burden on the strea...
by MooreBonds
Wed Jan 01, 2014 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Single & Frugal or Coupled & (Financially) Incompatible?
Replies: 107
Views: 16670

Re: Single & Frugal or Coupled & (Financially) Incompatible?

Been there done that. IMO, single and frugal wins. But coupled and both happily frugal is MUCH better! I would imagine that coupled and both happily unfrugal is better too, but that’s just speculation… As a 37 year old single guy, I definitely relate to the challenge of finding someone who's financially compatible. And, as time goes on and the portfolio thankfully increases, it becomes a greater and greater 'financial penalty' for choosing incorrectly. I can't tell you how frustrating it is to see women in my age range who simply spend what they make with no financial assets to speak of, or (even worse) live frugal lifestyles themselves, but always want to go out and drop $150+ on dinner out, followed by going to a bar w/ a $10 cover, and ...