Search found 1253 matches

by RobG
Fri Jan 05, 2024 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: 1095-A mistake (No SLCSP)
Replies: 38
Views: 13818

Re: 1095-A mistake (No SLCSP)

secondcor521 wrote: Fri Jan 05, 2024 10:13 am
RobG wrote: Fri Jan 05, 2024 7:15 am I'm the original author of this thread. The first time I simply entered the correct numbers and everything worked out. I did this again for 2019 tax year, but the IRS didn't process my return. After 5 months I found out I was required to fill out form 8962.
Taxpayers are always required to complete Form 8962 if they receive a 1095-A.
Maybe it was an additional form I was missing. I just take the subsidy now so I get the SLCSP data filled in.
by RobG
Fri Jan 05, 2024 7:15 am
Forum: Personal Finance (Not Investing)
Topic: 1095-A mistake (No SLCSP)
Replies: 38
Views: 13818

Re: 1095-A mistake (No SLCSP)

I'm the original author of this thread. The first time I simply entered the correct numbers and everything worked out. I did this again for 2019 tax year, but the IRS didn't process my return. After 5 months I found out I was required to fill out form 8962.
by RobG
Thu Oct 19, 2023 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Small jump in income, big jump in ACA health care costs
Replies: 20
Views: 2794

Re: Small jump in income, big jump in ACA health care costs

I'm told if your income goes too low you also lose the premium subsidy, which would be an enormous cliff. This is because you should have been on Medicaid.
by RobG
Thu Aug 24, 2023 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Considering buying an 18 unit rental property
Replies: 32
Views: 3578

Re: Considering buying an 18 unit rental property

flyfishers83 wrote: Thu Aug 24, 2023 10:16 am Using a heloc for a lot of the down payment would make me really nervous. Suggests that you might not have the cash reserves to easily handle this kind of investment. What happens if you need $50,000 worth of repairs in year 1? Do you have access to that easily? What happens if a couple of tenants don’t pay rent? Can you handle -20k cash flow?
I'm pro rental, but this is exactly what I was thinking. A bit of bad luck could bankrupt you.
by RobG
Wed Aug 02, 2023 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: Mother is house rich but cash poor-Would love advice!
Replies: 51
Views: 6582

Re: Mother is house rich but cash poor-Would love advice!

After taxes, you probably aren't going to net anywhere near $600k if you sell that rental. Rentals are especially bad since you have to recapture the depreciation. It still may pencil out, but know what you are getting into...
by RobG
Mon Jul 31, 2023 7:37 pm
Forum: US Chapters
Topic: What was your first Boglehead post?
Replies: 61
Views: 9606

Re: What was your first Boglehead post?

Third post.
"There is no crisis that you can't make worse by panicking."
by RobG
Mon Jul 31, 2023 7:33 pm
Forum: US Chapters
Topic: What was your first Boglehead post?
Replies: 61
Views: 9606

Re: What was your first Boglehead post?

Wasn't there something on Morningstar that morphed into the diehards, which then morphed into this forum?
by RobG
Sun Jul 23, 2023 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Should I Rent My Home Out?
Replies: 28
Views: 2758

Re: Should I Rent My Home Out?

In that stereotypical place where I bought my house in 2021 and have a fixed 2.8% loan on it. The house is worth 590k and I owe about 335k on it. Monthly payment is $2250 a month. I could probably rent it out for about $3900 a month. My wife and I want to look at buying a house with a little more land in the area. In good financial shape to do that. I don't mind being a landlord for the house and would like to hold onto it given the potential cashflow and great interest rate that I'd like to hold onto...kind of feel like its an asset in and of itself right now. So just looking for any general rules of thumb or formulas for deciding if a house is a good rental or not. Thanks for any input! I've found people are pretty down on rentals on the...
by RobG
Sun Jul 23, 2023 9:05 am
Forum: Investing - Theory, News & General
Topic: Why is YTW so high in short term TIPs?
Replies: 4
Views: 894

Re: Why is YTW so high in short term TIPs?

Seasonality is an interesting idea, but I've been looking at them for years and don't remember a time when the YTM wasn't going upward as duration got shorter, but maybe it has been confirmation bias or the math works out in a way I don't understand. I'll pay attention more in the future.. On the other hand, here's how (TIPs) (treasuries) (predicted inflation) looked Friday (7/21/2023). Isn't inflation expected to be higher in 2023? 6 mon: (TIPs = 4.30%) (tsy = 5.48%) (inf = 1.18%) 1 year: (TIPs = 3.32%) (tsy = 5.33%) (inf = 1.94%) 2 year: (TIPs = 2.65%) (tsy = 5.06%) (inf = 2.41%) 3 year: (TIPs = 2.18%) (tsy = 4.73%) (inf = 2.55%) 4 year: (TIPs = 1.93%) (tsy = 4.38%) (inf = 2.45%) 5 year: (TIPs = 1.74%) (tsy = 4.20%) (inf = 2.46%) https://...
by RobG
Sat Jul 22, 2023 4:46 pm
Forum: Investing - Theory, News & General
Topic: Why is YTW so high in short term TIPs?
Replies: 4
Views: 894

Why is YTW so high in short term TIPs?

Dumb question... As I understand it, the difference between the yield of a treasury and the real yield of a TIP is an estimate of expected inflation. However, the yields of TIPs always seem to trend unrealistically upward as they get shorter. For example, the 1/15/24 TIP has a yield of 4.437%, whereas the same treasury yields about 5.4%. I don't think anyone believes inflation is going to be only 1% over the next six months. So what am I missing?

rg
by RobG
Tue Jul 18, 2023 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling awkward about raising rent
Replies: 49
Views: 4549

Re: Feeling awkward about raising rent

I have had to raise the rents the last couple years just to keep up with increased insurance and taxes. The tenants are very understanding, and know they are getting a place well below market place.
by RobG
Sun Jul 16, 2023 10:29 am
Forum: Personal Investments
Topic: Treasury Bill Coupon Equivalent Rate VS CD Coupon Rate
Replies: 13
Views: 1537

Re: Treasury Bill Coupon Equivalent Rate VS CD Coupon Rate

RyeBourbon wrote: Sun Jul 16, 2023 10:04 am
RobG wrote: Sun Jul 16, 2023 9:15 am I'm confused. If you go to the Vanguard brokered CDs page (https://personal.vanguard.com/us/FixedIncomeHome) you'll find today's 5 year treasuries are yielding 4.14%, whereas a 5 year CD is yielding 5.2%. Isn't this a 1:1 comparison with the CD being better?

(caveat, the best non-callable 5 year CD is actually 4.45%, but that is still better than 4.14%).
It's 11 days later now, so you're not comparing the same rates.
OK, thanks. So is it otherwise a 1:1 comparison? (Except for the fact that they are taxed differently, but I'm buying them in a 401k.)
by RobG
Sun Jul 16, 2023 9:15 am
Forum: Personal Investments
Topic: Treasury Bill Coupon Equivalent Rate VS CD Coupon Rate
Replies: 13
Views: 1537

Re: Treasury Bill Coupon Equivalent Rate VS CD Coupon Rate

I'm confused. If you go to the Vanguard brokered CDs page (https://personal.vanguard.com/us/FixedIncomeHome) you'll find today's 5 year treasuries are yielding 4.14%, whereas a 5 year CD is yielding 5.2%. Isn't this a 1:1 comparison with the CD being better?

(caveat, the best non-callable 5 year CD is actually 4.45%, but that is still better than 4.14%).
by RobG
Fri Jul 14, 2023 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Budget with $2M Portfolio
Replies: 110
Views: 16620

Re: Early Retirement Budget with $2M Portfolio

No, incorrect.

Something to consider for those who are concerned how a non working or part time working parent would impact the work ethic of one or more of their children.

There was a time when, in a majority of families, one spouse worked outside the home, typically the father, while one spouse stayed at home, typically the mother.
I don't recall hearing, reading or witnessing anything about a dearth of work ethic in those children from that era.

Could there be a gender bias in these concerns?
To add to this... When I was young I remember a conversation with my father about how he worked hard early in life and now he doesn't have to work. It inspired me to do the same.
by RobG
Thu Jul 13, 2023 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Budget with $2M Portfolio
Replies: 110
Views: 16620

Re: Early Retirement Budget with $2M Portfolio

lecithar wrote: Tue Jul 11, 2023 10:21 pm * I have been in the workforce long enough that I will qualify for social security. So even if I quit today and earn no more money, I will still get around $2500/month (in today's dollars) at full retirement age. So this is some extra money that I am not counting on but serves as additional margin if needed later. To calculate this I used the website ssa.tools.
Double check that $2500/month number.... My statement has a similar number, but it qualifies the amount with At [my] current earnings rate. In other words, I have to keep working at my current earnings rate until I'm at retirement age to get that. At least that is how I understand it.
by RobG
Thu Apr 07, 2022 8:49 pm
Forum: US Chapters
Topic: Suggestions for the Wiki
Replies: 699
Views: 537631

Re: Suggestions for the Wiki

This is regarding the custodian part of the HSA wiki, https://www.bogleheads.org/wiki/Health_ ... nd_options
Health Savings Administrators was acquired by HealthEquity so it no longer exists, but the Wiki has not been updated.

A BH thread on the subject: viewtopic.php?t=369805
by RobG
Thu Apr 07, 2022 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account (HSA) recommendations
Replies: 9
Views: 1983

Re: Health Savings Account (HSA) recommendations

This seems to be as good a place as any to ask.

I had an HSA at Health Savings Administers which was apparently acquired by HealthEquity. I went to make a withdrawal and HE wants me to upload the receipts or fill out the details for each expense. I never had to do that with the previous custodian; I just saved my receipts in a one year "bundle" with a dollar total written on it. Every once in a while I'd cash in a whole years worth and mark the bundle "paid."

I really don't want to scan seven years worth of oddball sized receipts, much less manually enter the details for each one.

Is this a new IRS, requirement? If not, does Fidelity require it?
by RobG
Mon Mar 28, 2022 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Credit Karma Money (Turbo Tax)
Replies: 3
Views: 587

Re: Credit Karma Money (Turbo Tax)

He says he's heard of Credit Karma and doesn't want anything to do with them. Plus he said, "If it's free, then be suspicious, and be really suspicious if they have to pay you." Guess I raised him right.
by RobG
Sun Mar 27, 2022 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Karma Money (Turbo Tax)
Replies: 3
Views: 587

Credit Karma Money (Turbo Tax)

I'm doing my son's very simple tax return with Turbo Tax and one of the refund options is to deposit into a "Credit Karma Money" checking account. Apparently he'll get a $100 bonus for doing this, but I think in order to be eligible he will need to set up direct deposit for his paycheck. Is that true? Are there other considerations?

Thanks
rg
by RobG
Thu Aug 26, 2021 3:59 pm
Forum: Personal Investments
Topic: Why Bother With Rental Properties?
Replies: 101
Views: 15855

Re: Why Bother With Rental Properties?

My rentals pay most of my bills, and the vast majority of it is tax free. I'm 54 and can't draw from my 401k.

As far as pricing goes, around here (Bozeman, MT) a year's rent is normally about 5% of purchase price.
by RobG
Wed Aug 25, 2021 11:15 am
Forum: Personal Investments
Topic: What to invest in today?
Replies: 32
Views: 4956

Re: What to invest in today?

I've been bothered by the same thing. I'm going to replace some bonds with large cap value because of the 2.2% dividend. I'll do my best to not look at it for 5 years. I figure in 5-10 years that it will most likely outperform bonds. If not, I can handle a loss. Large cap value Vanguard fund and ETF are VVIAX and MGV respectively.

If in taxable you could tax loss harvest in a taxable account, and dividends are taxed at a lower rate than interest.

I've also considered overpaying my taxes and using the refund to buy paper I-bonds since you can get an additional $5000.

I don't know, this is a hard time to invest.
by RobG
Wed Mar 31, 2021 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: America Rescue Plan and Tax Software Updates
Replies: 21
Views: 2570

Re: America Rescue Plan and Tax Software Updates

I thought the ARP got rid of the fiscal cliff. I just tried doing my taxes with Turbo Tax and I still get the same $10,000 fiscal cliff I had in February. I have about $100 to spare if I max out all my IRAs, etc, and I'd rather not do that if possible.

Did the fiscal cliff not go away for everyone?

rg
by RobG
Tue Nov 10, 2020 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Help! I withdrew too much from ESA (educational savings account)
Replies: 5
Views: 874

Re: Help! I withdrew too much from ESA (educational savings account)

SimonJester wrote: Tue Oct 20, 2020 12:04 pm I contacted vanguard on this same issue and they said there is no provision to return the ESA dollars like the 60 day window for 529s. However a contribution to a 529 counts as a qualified educational expense for the ESA. So just contribute the same dollar amount to the 529 and keep your records.

Per IRS Pub 970
Contributions to a qualified tuition program (QTP). A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA.
Thank you for checking and getting back to me!
by RobG
Tue Oct 20, 2020 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Help! I withdrew too much from ESA (educational savings account)
Replies: 5
Views: 874

Re: Help! I withdrew too much from ESA (educational savings account)

Wow, I'll have to double check that, but if I can just move it to her 529 that would be really nice.
by RobG
Mon Oct 19, 2020 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Help! I withdrew too much from ESA (educational savings account)
Replies: 5
Views: 874

Help! I withdrew too much from ESA (educational savings account)

Last March I withdrew $10,000 from my daughter's ESA to pay for some of her college tuition. Then Covid hit and the college went to online classes. This is an Ivy league school and we didn't want to pay full tuition for online classes so we got a refund. I didn't think much of it since we expected her to be going back in the fall. Wrong. Campus is still not fully open so she is sitting out 2020. That means the $10,000 I withdrew won't go for 2020 college expenses. Dang, I worked so hard doing the calculations to make sure I didn't draw out too much money, but I never expected $0 expenses in 2020. I'm well past the 60 day payback period so I'm going to owe taxes and penalty unless somebody has an idea. I asked the school if I could prepay so...
by RobG
Sat Mar 21, 2020 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Time pay for college with my 529 and ESA
Replies: 9
Views: 612

Re: Time pay for college with my 529 and ESA

I did my taxes using Turbo Tax and here is what I found. As mentioned earlier there are two components to the educational credits: a refundable AOTC credit up to $1000, and an additional non-refundable credit up to $1500. In short, the non-refundable credits reduce your taxes, but can't reduce them below zero. Refundable credits are like tax payments The non-refundable credits are things like the non-refundable part of the AOTC, child tax credit, foreign tax credit, etc. They are subtracted from the tax (line 12a) which is calculated from your taxable income (which you can adjust with an IRA deduction). These credits can't bring the total tax (line 16) to less than zero. Next step is to deal with the refundable credits which include the $10...
by RobG
Sat Mar 21, 2020 11:17 am
Forum: Personal Finance (Not Investing)
Topic: 1095-A mistake (No SLCSP)
Replies: 38
Views: 13818

Re: 1095-A mistake (No SLCSP)

Since it is tax season I'll bump this back up. I planned on a good income year so I didn't take the premium tax credit (PTC). Therefore, column B on the 1095 was zeros. It turns out I made very little and was eligible for the PTC so I had to enter the SLCSP manually in turbo tax. If I hadn't I would have lost $12,000! If in doubt make sure you check line 9 of schedule 3. I guess the answer is to take the tax credit every year, but if you do that and deduct insurance from your income it does it incorrectly in the region above the brick wall until your income reaches the level where the full deduction is made. I guess check it with SLCSP = 0 and SLCSP = actual value and see which one gives the higher rebate, and make sure it is the correct va...
by RobG
Tue Mar 17, 2020 2:30 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623788

Re: [Small Cap Value heads Rejoice !!!]

MotoTrojan wrote: Tue Mar 17, 2020 11:00 am Their NAV did not deviate. It is possible that a share somehow was traded at a huge premium just before the close, making it look like IJS over-performed yesterday (Larry Swedroe even tweeted about that erroneous outperformance) and underperformed today as it fell back to reality. For a holder of IJS, they didn't gain or lose anything relative to VIOV.
I thought I looked at IJS mid-day it had fallen less than I would have expected relative tot he S&P 500. On the other hand, the Yahoo chart shows it neck and neck with VIOV yesterday. On the other other hand the google finance chart comparison shows it neck and neck with VIOV until yesterday when it dropped much less - but I can't zoom in on it. I'm in over my head on this one...
by RobG
Tue Mar 17, 2020 9:52 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623788

Re: [Small Cap Value heads Rejoice !!!]

Anyone want to opine why iShares small cap index IJS is down 10% while the rest of the indices (large cap, international,etc) have modest gains? Is there a liquidity problem?
by RobG
Sat Mar 07, 2020 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Time pay for college with my 529 and ESA
Replies: 9
Views: 612

Re: Time pay for college with my 529 and ESA

Thanks DIFAR31, I figured there must be two definitions of QEEs.

The term "tax liability" is what I still don't understand. Forgive me I am dense and easily confused. Does a person who pays his taxes throughout the year so that he will get a refund at the end of the year have a tax liability? Or did he disqualify himself? The first paragraph of the AOTC document uses the term "amount of tax you owe" which is line 22 on the 1040 and is the total tax (line 15) minus payments (line 18). The second paragraph just uses the word "tax." Ugh.

I'll be getting a huge ACA refund because I had very low income in 2019 but paid for my insurance anyway. Did I disqualify myself from the credit.
by RobG
Sat Mar 07, 2020 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Time pay for college with my 529 and ESA
Replies: 9
Views: 612

Re: Time pay for college with my 529 and ESA

SchruteB&B wrote: Sat Mar 07, 2020 10:29 am
RobG wrote: Sat Mar 07, 2020 10:25 am I understand that the funds must be for "qualified expenses" (https://www.irs.gov/credits-deductions/ ... d-expenses) which appears to be largely tuition and books and not room and board.
Room and Board is a qualified expense for a 529.
Thanks. The qualified expenses description explicitly disqualifies room and board, but can I assume you mean that doesn't mean you can't use a 529 to pay for those?
by RobG
Sat Mar 07, 2020 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Time pay for college with my 529 and ESA
Replies: 9
Views: 612

Time pay for college with my 529 and ESA

My daughter started attending Dartmouth last fall so I'm getting rather large bills. I have a 529 and and ESA for her education, which has about two years of tuition. I also have one for my son with about 2/3 of a year of tuition. I'm not sure if my son will go to college so I'll probably use his 529 for my daughter. Once those are drained I have other resources (appreciated stocks, Roth funds from IRA conversions, I bonds, HSA account and hopefully money I earn (my earnings are entirely unpredictable). I want to know if there are considerations I haven't thought of before I start cashing the 529s and ESA in. I understand that the funds must be for "qualified expenses" (https://www.irs.gov/credits-deductions/individuals/qualified-...
by RobG
Wed Jul 10, 2019 12:17 am
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

Venkman - that was a great and informative reply. Thanks.
by RobG
Fri Jul 05, 2019 10:48 am
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

OK, I looked at historical yields for money market and total bond using Vanguard's site. If you used Swedroe's strategy you would have switched from money market to total bond in April of 2008. However, according to Nisiprius's graph it didn't matter which fund you were in prior to April 2008 so the returns would have been really close with either strategy. Therefore for returns it didn't matter, but if you believe money markets are less risky then Swedroe's strategy would have had lower risk, albeit probably not much lower and that risk didn't show up in 2008.
by RobG
Fri Jul 05, 2019 10:03 am
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

Nisiprius - your graphs are great but they don't show the results of the Swedroe strategy. (Your analysis on risk is a good observation... I guess that makes this more of an academic exercise when the yield curve is inverted.) Thesaints - 30 treasuries didn't go to zero. They never got below 2.5%, and that was a short period of time. See link below (ctrl-left mouse to increase range to include 2008). https://finance.yahoo.com/chart/%5ETYX#eyJpbnRlcnZhbCI6IndlZWsiLCJwZXJpb2RpY2l0eSI6MSwiY2FuZGxlV2lkdGgiOjEuMDM4OTczMzg0MDMwNDE4Mywidm9sdW1lVW5kZXJsYXkiOnRydWUsImFkaiI6dHJ1ZSwiY3Jvc3NoYWlyIjp0cnVlLCJjaGFydFR5cGUiOiJsaW5lIiwiZXh0ZW5kZWQiOmZhbHNlLCJtYXJrZXRTZXNzaW9ucyI6e30sImFnZ3JlZ2F0aW9uVHlwZSI6Im9obGMiLCJjaGFydFNjYWxlIjoibGluZWFyIiwicGFuZWxzIjp...
by RobG
Fri Jul 05, 2019 9:17 am
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

Thanks for all the responses. I’m just giving a little kickback to keep you on your toes. Keep discussing.
by RobG
Fri Jul 05, 2019 12:18 am
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

Hmmm, what Nisiprius's graph suggests is that Swedroe's rule would have pushed you longer in about 2008 so under your scenario it would have been the better strategy. It's really hard to tell because we'd need to add a graph using Swedroe's strategy. Swedroe's rule is that one only gets longer maturities if yield is higher (0.20%/yr. IIRC). The graph does not show yields; it shows returns. Precisely it shows returns for longer maturities spiking up after 2008, due to their yield going down (and therefore their prices going up). In those circumstances, Swedroe's rule would have pushed people to move away from longer maturities, since the yield spread vs. shorter terms was fell.. I don't see the graph telling that particular story. Yes the g...
by RobG
Thu Jul 04, 2019 6:35 pm
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

Thesaints wrote: Thu Jul 04, 2019 5:58 pm
RobG wrote: Thu Jul 04, 2019 5:55 pm That's a good illustration. However, if I remember right (questionable) Swedroe's rule pushed you significantly longer during/after the crash.
Actually, all the opposite: After the crash longer term rates plunged and short term rates didn't.
Hmmm, what Nisiprius's graph suggests is that Swedroe's rule would have pushed you longer in about 2008 so under your scenario it would have been the better strategy. It's really hard to tell because we'd need to add a graph using Swedroe's strategy.
by RobG
Thu Jul 04, 2019 5:55 pm
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

nisiprius wrote: Thu Jul 04, 2019 5:11 pm In 2006, I remember quite clearly being amazed by the high yields of money market funds. In 2006, there would have been no obvious reason to invest in Total Bond (orange) instead of Prime Money Market (blue).

But, as you see, that situation didn't last.

Source

Image
That's a good illustration. However, if I remember right (questionable) Swedroe's rule pushed you significantly longer during/after the crash. Thus you would have sold the money market, bought longer term, and would up in about the same place. I wonder how his strategy did during that period.
by RobG
Thu Jul 04, 2019 5:38 pm
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Re: Prime Money Market or Total Bond Market

Artsdoctor wrote: Thu Jul 04, 2019 4:59 pm Larry Swedroe did a remarkable job in suggesting how to reasonably buy fixed income investments of varying maturities. I think that he attributes at least some of his suggestions to DFA.

He suggested demanding 20 bps per year in order to justify going further out on the yield curve. For example, if a 2-year note is yielding 2%, you'd want a yield of 2.2% for a 3-year note (or 2.4% for a 4-year note, or 2.6% for a 5-year note) to justify extending the maturity. He's recommended using 15 bps for munis.
Swedroe's rule is what is driving me towards the money market.
by RobG
Thu Jul 04, 2019 4:24 pm
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 9946

Prime Money Market or Total Bond Market

The yields of vanguard's prime money market and total bond index are very close (2.30% and 2.55% respectively), yet the total bond market fund has a duration of 6 years. Since your bonds are supposed to minimize risk, am I right in thinking I ought to move my total bond fund to prime money market?

rg
by RobG
Tue Jan 22, 2019 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Self employed, ACA cliff questions
Replies: 5
Views: 719

Re: Self employed, ACA cliff questions

I played around with Turbo Tax using my previous returns to try to answer my questions. For me there was so much stuff going on that I had to delete everything except my business to be able to make some general observations. I made two tables, one using a 1095-A that you would get if you chose not to take the subsidy, and one with the values you would get if you did take the subsidy. Before I go on, let me define some stuff: Total income (line 22). The income before deductions to calculate adjusted gross income (AGI). SEHD (line 29): Self-employed health insurance deduction SLCSP: Second lowest cost silver plan PTC (line 69): Net premium tax credit MAGI: Modified adjusted gross income Tax plus penalty. This is what turbo tax calculated for ...
by RobG
Sat Jan 19, 2019 5:23 pm
Forum: Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 63
Views: 6172

Re: Should I increase my stock allocation to 90% stocks?

You could also just allocate 100% of future purchases to stocks and then sell the bonds if the market crashes.
by RobG
Thu Jan 17, 2019 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Self employed, ACA cliff questions
Replies: 5
Views: 719

Re: Self employed, ACA cliff questions

evonboeck wrote: Thu Jan 17, 2019 10:19 pm You realize that you can deduct $18500 and 20% of net profits into a solo 401K, right? 24500 if you are older than 50. I just went through this and had to be very creative to get under the 400% FPL.

I can't address the other questions.
Yeah, I did those deductions and a lot more, but I can't get under the cliff. I'm not complaining, but I'm curious if I did lose out on some money by taking the subsidy.
by RobG
Thu Jan 17, 2019 9:57 pm
Forum: Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 63
Views: 6172

Re: Should I increase my stock allocation to 90% stocks?

You are saving so much money compared to your portfolio value it won't make much difference what your allocation is right now. Your contributions alone will grow your portfolio by 50% this year. I don't suggest timing the market, but after living through two big recessions I wished I had kept more money in bonds to rebalance during those recessions. Admittedly, this was mostly for psychological reasons, however there will be another recession and those big bonuses can disappear just when the stocks start getting cheap.
by RobG
Thu Jan 17, 2019 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Self employed, ACA cliff questions
Replies: 5
Views: 719

Self employed, ACA cliff questions

I have an S-Corp where I am the sole employee. Last year I was expecting to be under the "ACA Subsidy Cliff" so I took the ACA subsidy, which paid all but $3000 of my $13,000 insurance plan. It turns out I made way more money than expected (even after IRA deductions, etc) so I have to pay back the $10,000 in subsidies. I'm fine paying back the subsidies, but I have two questions. First, am I going to be penalized in any substantial way for taking the subsidy? I was worried that I'd lose the "self employed tax deduction" (line 29) because I only paid $3000 for insurance, but I now think that the full $13,000 will appear on line 29. Second, what happens to a self-employed person when they "fall off the ACA cliff"...
by RobG
Thu Jan 17, 2019 6:52 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle's Obituary From The Family
Replies: 48
Views: 20242

Re: Jack Bogle's Obituary From The Family

We are doing well if we can improve the lives of one or two people. He did really well.
by RobG
Tue Jan 09, 2018 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Convert to LLC for rental properties?
Replies: 10
Views: 2226

Re: Convert to LLC for rental properties?

From what I have read you do not have to have your rental property in an LLC in order to benefit from the 20% pass through (or pass-thru) deduction. This would be ideal. Does anyone else have information to verify? If we do have to convert to an LLC, Jalbert found the nail in the coffin for me personally - I would have to change the mortgages into the name of the LLC. I don't know if the cost of the loan will be greater than my current loan because it is already considered an investment property, but the refinance costs alone would likely overwhelm any savings from deductions at this time. It might be different for other people. I will throw out one idea: pay off one property by taking out a bigger loan on the second property. The paid off...
by RobG
Thu Jan 04, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Convert to LLC for rental properties?
Replies: 10
Views: 2226

Convert to LLC for rental properties?

Hi, My wife and I own two duplexes. One for for 10 and another for 15 years. This year they will net about $6,000/year rental income after depreciation, etc (line 26 on Schedule E). Next year it will be about $15,000/year since I paid off a loan. We don't provide "substantial services" nor am I a "rental professional." My tax bracket will be either 12% or 22%, depending on my S-corp income. In addition, I have 6% state tax. I use Turbo Tax to do my own taxes. Until now there seemed no reason to put them in an LLC, but if I do put them in an LLC would this be pass-through income eligible for the 20% deduction with the new tax rules? How much more complicated would the taxes be? Would my wife and I be a "single owner&...
by RobG
Mon Oct 09, 2017 12:31 pm
Forum: Personal Investments
Topic: Selling gold jewelry
Replies: 19
Views: 3623

Re: Selling gold jewelry

I emailed Midwest Refineries and they are very competitive.
Here is a formula to estimate what to expect for karat gold:
31.1 grams = troy ounces, X .97 (3% average after melt weight loss), X .39 for 10K, .55 for 14K and .70 for 18K (no karat gold ever assays out to be plumb as it should be)*0.95


For 14K that figures to be 86.8% of actual melt weight, much much better than 60%! Thanks for the tip.