Search found 266 matches

by fulltilt
Tue Aug 27, 2019 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: How to help an employee who is in debt and requesting a loan
Replies: 110
Views: 11072

Re: How to help an employee who is in debt and requesting a loan

Vanguard Fan 1367 wrote: Tue Aug 27, 2019 5:54 pm
fulltilt wrote: Tue Aug 27, 2019 5:12 pm Why do you think they might be trading off money for convenience/time like that?
Maybe they weren't raised by parents who grew up during the depression?
That is probable but I am not sure it gives insight into the deepest regions of their psyche. :)
by fulltilt
Tue Aug 27, 2019 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: How to help an employee who is in debt and requesting a loan
Replies: 110
Views: 11072

Re: How to help an employee who is in debt and requesting a loan

When I was an SVP at a company, many of the hourly staff constantly complained that they had no money and were not paid enough. Here's what I noticed: - I brought coffee from home to drink on the way in, then drank the free office coffee. They stopped at Starbucks and bought an expensive coffee. - I ate breakfast at home. They had breakfast delivered to work, eating on paid time, and spending roughly $7.50. - I brown bagged it 95% of the time. My lunch drink was a soda, filling the 1 liter bottle from a 2 liter bottle at home, bought on sale. If my lunch totaled $3 a day, I'd be surprised. They usually went out or ordered lunch, spending $15. I'd strongly urge the OP to not loan any further money to this employee. Why do you think they mig...
by fulltilt
Tue Aug 27, 2019 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Death in family (not sure how to proceed)...
Replies: 30
Views: 6118

Re: Death in family (not sure how to proceed)...

I am sorry for your loss. It sounds like you have a good handle on the high-level details of what needs to be done so I am going to suggest more street level, practical approach on how you might go about doing it. The first pieces of information you need are the date of birth and SSN number of your brother-in-law. The second thing i would do would be to run a credit report to see if you can get a better financial picture. The third thing I would do is get access to their email account and any possible "junk" email accounts. Fourth, I would try to get access to their mobile phone. Fifth, he may have had old 401ks at previous employers. Maybe previous tax returns could help you locate them? Once you have all this information, then ...
by fulltilt
Tue Aug 27, 2019 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Death in family (not sure how to proceed)...
Replies: 30
Views: 6118

Re: Death in family (not sure how to proceed)...

I am sorry for your loss. It sounds like you have a good handle on the high-level details of what needs to be done so I am going to suggest more street level, practical approach on how you might go about doing it. The first pieces of information you need are the date of birth and SSN number of your brother-in-law. The second thing i would do would be to run a credit report to see if you can get a better financial picture. The third thing I would do is get access to their email account and any possible "junk" email accounts. Fourth, I would try to get access to their mobile phone. Fifth, he may have had old 401ks at previous employers. Maybe previous tax returns could help you locate them? Once you have all this information, then y...
by fulltilt
Thu Aug 22, 2019 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

Brudha wrote: Tue Aug 20, 2019 5:12 pm
fulltilt wrote: Tue Aug 20, 2019 4:28 pm
MJS wrote: Tue Aug 20, 2019 3:15 pm At https://smartasset.com/investing/inflation-calculator, assuming 2.5% inflation,
$3400 in 2033 = $2,406 in 2019
$4700 in 2045 = $2,473 in 2019

This looks more like $66 per month. Math is weird.
The monthly amount is *essentially* the same, but in the first case, you get paid starting 12 years sooner....
How much is 12 years of earlier freedom worth to you?

12 years at the tail end of one's life sounds pretty priceless to me...
12 years of freedom at any point in someone's life is pretty priceless. :beer
by fulltilt
Tue Aug 20, 2019 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

MJS wrote: Tue Aug 20, 2019 3:15 pm At https://smartasset.com/investing/inflation-calculator, assuming 2.5% inflation,
$3400 in 2033 = $2,406 in 2019
$4700 in 2045 = $2,473 in 2019

This looks more like $66 per month. Math is weird.
The monthly amount is *essentially* the same, but in the first case, you get paid starting 12 years sooner....
by fulltilt
Tue Aug 20, 2019 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

Here is the way i was looking at it, and maybe my math is way wrong... In 2033, if i started collecting my benefit it would be, no surprise $3400 a month. On the other hand, option 2 would be $4700 if i waited another 12 years. To translate that back to 2033 dollars, then i would need to calculate it via a discount rate of at least 2% for inflation. So $4700/(1 + .02)^12 which would be $3705 a month. So, if i wait 12 years, i get an additional $300 a month? Option 1 seems way better in this letter in the mail scenario.... Is this a DB pension and is the benefit frozen? If the pension plan is active and they just sent you a benefits update with pension projections, I think you may have missed a key point. The pension projection is based on ...
by fulltilt
Tue Aug 20, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

That depends greatly on what age you are in both those years. Then -- look at the actuarial tables --- estimate when you think you personally may die, or come up with range. I will be 65 in option 2. :wink: I will be 53 in option one. Why do you think this is relevant? I am curious about your line of reasoning. Starting an encore career could be a a challenge at 53. Unless you are looking for something that would just cover expenses. My guess is that 2033 is the earliest you could retire using the rule of 85, not that you have a binary choice of 2033 or 2045. I'd go with working until you think you have enough to retire and never need to work for pay again. When this occurs will depend on how much you already have saved or could save betwe...
by fulltilt
Tue Aug 20, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

infotrader wrote: Tue Aug 20, 2019 11:54 am I will definitely take option 1. You will have over 500k when you start option 2 in 2045.
Without other variables (reinvestment, etc.), it will take 44 years to break even in 2076.
I would say it will never break even, if you take option 1 and invest it with something like VTI.
I am very surprised to see the plan is constructed this way: Option 2 should be way higher, like doubling the amount of option 1.
Indeed. It doesn't make a lot of sense, but this was just a random letter in the mail that *YOU* received in the mail. :twisted: Any applicability to OP is merely a coincidence....
by fulltilt
Tue Aug 20, 2019 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

Let's say you received in the mail a benefit summary for your state retirement defined benefit package. There are two options listed: Option 1: retire in 2033 with a defined benefit of $3400 a month for life. Retire: Separate employment to start collecting benefit and start encore career elsewhere. Option 2: retire in 2045 with a defined benefit of $4700 a month for life. Retire: Separate employment to start collecting benefit. Hopefully have enough to just be done No cost of living adjustment. Which would you choose and why? Option #1 ALL day long. This is really a no-brainer. You'd have accumulated roughly half a million by the time option #2 would kick in. Assuming you could just bank the entire pension, you'd have to live to roughly 10...
by fulltilt
Tue Aug 20, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

surfstar wrote: Tue Aug 20, 2019 10:37 am Save enough so that you can retire in 2033 and not have to start another career.

Start tracking expenses, budgeting, saving, etc to make it happen. We're tainted by the goal of early retirement, though :D
(coincidentally, also born in '80, and hoping to retire from local gov't in 2030)
Early retirement is going to face some pretty stiff headwinds going forward if the "experts" are to be believed.

Lately, i have been thinking about letting up to spend more money and time with the kids while they are young enough to want to spend time with their parents, but they are old enough to remember things like family trips, etc. I don't want to wish this time away and then retire to an empty house in my 50s-60s....
by fulltilt
Tue Aug 20, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

PeterParker wrote: Tue Aug 20, 2019 10:30 am That depends greatly on what age you are in both those years.

Then -- look at the actuarial tables --- estimate when you think you personally may die, or come up with range.
I will be 65 in option 2. :wink: I will be 53 in option one. Why do you think this is relevant? I am curious about your line of reasoning.
by fulltilt
Tue Aug 20, 2019 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Re: Retirement benefit Choice: Rule of 85 vs Age 65

David Jay wrote: Tue Aug 20, 2019 10:20 am Define “retire”. Is this when you stop accruing additional years of service or is this when you begin receiving benefits? Or some form of “both”? Most importantly, is there a choice to receive a higher benefit by deferring benefits?

This makes a gigantic difference in the calculation.
I updated original post. I believe any deferral bonus is included in the figures above.
by fulltilt
Tue Aug 20, 2019 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Retirement benefit Choice: Rule of 85 vs Age 65
Replies: 22
Views: 1868

Retirement benefit Choice: Rule of 85 vs Age 65

Let's say you received in the mail a benefit summary for your state retirement defined benefit package. There are two options listed:

Option 1: retire in 2033 with a defined benefit of $3400 a month for life. Retire: Separate employment to start collecting benefit and start encore career elsewhere.

Option 2: retire in 2045 with a defined benefit of $4700 a month for life. Retire: Separate employment to start collecting benefit. Hopefully have enough to just be done

No cost of living adjustment.

Which would you choose and why?
by fulltilt
Wed Aug 07, 2019 10:38 am
Forum: Personal Consumer Issues
Topic: which stud finder?
Replies: 58
Views: 5767

Re: which stud finder?

MrBobcat wrote: Wed Aug 07, 2019 9:53 am
Shallowpockets wrote: Wed Aug 07, 2019 9:34 am You can get a cheap one in Harbor Freight. A magnet. Run it over the wall. They find a drywall nailhead. Then confirm it vertically. Then confirm again.
if you have tile maybe not.
There are grab bars made with a system that allows very secure adhesion through and to the wall without a backup stud. It's 2019, after all.
I've great luck with the magnet variety.
+1 for the magnet. A neodymium magnet covered in painters tape to prevent scratching of the wall. I have a "real" stud finder, but it rarely gets used.
by fulltilt
Fri Jul 12, 2019 9:09 am
Forum: Personal Consumer Issues
Topic: Automatic Watches
Replies: 92
Views: 10119

Re: Automatic Watches

I bought a Seiko SNK805 several years back because I like the size, and spartan design. It's a self winding based on motion of my arm. I only wear it during the work week and it doesn't have enough juice to make it through the weekend. I'll take it off at 5 or 6 pm Friday, and Monday morning it will be stopped - usually sometime on Sunday morning / afternoon. Each Monday morning I'll pull the little knob out and spin the hands around until it matches the microwave time and I'm good for the week - takes about 15 seconds. Regarding accuracy, I can't say I've ever noticed a problem - of course I'm not on a schedule where I need to catch a train - if I need to be somewhere I'll usually plan to be there 10-15 minutes ahead of time anyway (20-30...
by fulltilt
Fri Jul 12, 2019 8:49 am
Forum: Personal Consumer Issues
Topic: Buying a Smoker
Replies: 154
Views: 16994

Re: Buying a Smoker

OK, friends, the OP is back and I think I'm going to bite the bullet this weekend. I've found a number of smokers for sale locally on Craigslist, and am zeroing in on a Weber Smokey Mountain. The convenience factor of an electric smoker still has appeal, but there's more to go wrong with one of those, and not something it seems wise to buy used from a stranger. I found two 18.5" inch options. One is 5-6 years old, needs both its cooking grates replaced, and is going for $125. The other is brand new, in the box, with a $200 asking price. Frugal though I am, that seems the preferred choice. Grates cost about $25 each, and Weber may have made some upgrades since 2012-2013. My only hope is this is a considerable improvement over the Brink...
by fulltilt
Mon Jun 10, 2019 11:39 am
Forum: Personal Consumer Issues
Topic: Do we need a realtor? First time home buyer, buying from landlord
Replies: 26
Views: 2850

Re: Do we need a realtor? First time home buyer, buying from landlord

We are considering buying our first home here in South San Francisco. We are currently renting the house and the landlord casually mentioned to me that he's interested in selling. We got a real estate agent just to start shopping around the area, but we're unsure whether we should use the real estate agent if we choose to buy this house. For one, we're worried the landlord is expecting not to have to pay a real estate agent's commission, and will decide not to sell to us after all and instead remodel the house and sell at a much higher price. And two, maybe we don't need one, just a lawyer? Would that be a mistake? It's not clear whether if there's only one agent that she would get paid 3% or 6% or some other number. I see no reason to inv...
by fulltilt
Mon May 06, 2019 11:29 pm
Forum: Personal Investments
Topic: Short Term Treasury Fund for Cash Savings?
Replies: 28
Views: 4149

Re: Short Term Treasury Fund for Cash Savings?

I'm looking at the bond section of Fidelity and it seems overwhelming. Confusing when I look at it. I will have to just take my time and study it. Here are the steps to purchase at Fidelity. Click on Investment Products>Fixed Income and CD's>Individual Bonds>US Treasury>Find US Treasury Bonds>New Issues>Treasury Very easy. I’ve been buying Treasuries there for almost a year now - and have made purchases well over a dozen times now. Used to buy exclusively 26 week, but recently I’ve been buying 4 and 8 and some 13 week. Okay I've been looking at the Treasury Direct site, and the process at Fidelity. I know the announcement is tomorrow for 4 and 8 will bill auction. I'm a little confused about minimum investment. Is the minimum investment $3...
by fulltilt
Fri May 03, 2019 1:16 pm
Forum: Personal Consumer Issues
Topic: [Cellphone SIM card hijacking - Security concerns and mitigation techniques]
Replies: 254
Views: 39356

Re: Man’s life savings stolen from hijacked cellphone number

https://www.nbcbayarea.com/news/local/Mans-1M-Life-Savings-Stolen-In-Cell-Phone-Scam-509097961.html Really scary stuff, the scammers used an AT&T call center workers to pull off a theft of over a million in life savings. Happened in minutes. Apparently the SIM card transfer is very common. I doubt it is really very common. I bet most people targeted for SIM swaps are well-known and wealthy, and probably involved in cryptocurrency trading. When these attacks do happen they make news, which is why we know about them. But not common. Read about the availability heuristic: https://en.wikipedia.org/wiki/Availability_heuristic which causes us to overestimate the commonality of newsworthy events. I personally know two people that have had the...
by fulltilt
Mon Apr 15, 2019 4:34 pm
Forum: Personal Consumer Issues
Topic: Soon to be dad, how to prepare
Replies: 127
Views: 10152

Re: Soon to be dad, how to prepare

I'll agree Britax is made like a piece of iron. Very safe seat, I've seen it first hand. Interesting. I thought baby/ child stuff is pretty well regulated and every product meets the same standards? Or is that minimum standards and you are saying Britax goes above those minimum standards? We had a Chicco or something like that. My wife was involved in a near total to her car and that one made it through with no issues, but assumed all car seats that made it to the market would have done the same. Good luck. They are made to meet standards, but they are different in how they implement those standards. *The* most important thing with a car seat is that it is installed correctly, and baby is strapped in correctly (Roughly 60% are NOT). After ...
by fulltilt
Mon Apr 15, 2019 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: credit on home purchase: take off sale price or closing costs?
Replies: 6
Views: 535

Re: credit on home purchase: take off sale price or closing costs?

delamer wrote: Mon Apr 15, 2019 4:08 pm Purchase price credit will reduce taxes/stamps due at closing.
And, depending on where you live, subsequent years' taxes....
by fulltilt
Wed Dec 19, 2018 12:22 pm
Forum: Personal Consumer Issues
Topic: Omega watch expenses
Replies: 38
Views: 3927

Re: Omega watch expenses

My wife bought me a Constellation perpetual calendar 20 years ago on our 10th wedding anniversary. I’ve worn this watch every day. Every 2-3 years the second hand starts to jump, indicating low battery. So I send it in to a Swiss watch repair center in Illinois and they replace the battery and do some other service and send it back after 6-8 weeks. The cost is usually $300 or so. I’m getting tired of this. I have to buy myself a Timex for the duration and it is really a pain in the butt. A couple years ago, I bought my wife an Omega for her 50th. And now that one is running slow. Ugh! My question to the watch guys out there, should I buy a different watch which doesn’t use a battery? Would that be more accurate and reliable? What watch wou...
by fulltilt
Tue Dec 18, 2018 8:52 am
Forum: Personal Consumer Issues
Topic: A "super mega roll" of toilet paper = 6 "regular rolls:" is this possible?
Replies: 80
Views: 11618

Re: A "super mega roll" of toilet paper = 6 "regular rolls:" is this possible?

michaeljc70 wrote: Fri Dec 14, 2018 7:58 am This is a marketing gimmick. In fact, it is really hard to determine if you are getting a good value on tp or paper towels. Some say look at sq ft in the pack. That doesn't really work since that doesn't take into account thickness. You really should go by weight, which I have never seen listed on the packaging. I've thought about bringing a handheld luggage scale to the store, but didn't want to be institutionalized :shock: .
The more irritating thing is that they have made paper towel sheets /almost/ half sheets now, but they are more like 60% sheets so if you want a "regular" sheet, then you use two 60% sheets....
by fulltilt
Tue Dec 18, 2018 8:45 am
Forum: Personal Consumer Issues
Topic: Adult Games / Board Games - Recommendations
Replies: 55
Views: 5453

Re: Adult Games / Board Games - Recommendations

For keeping things casual and loose, I think Sushi Go is great for 4-5 players. If you have more people, The Great Dalmuti is fun. The thing that is nice about these games is that they are short and people can jump in and out of them as they wish.
by fulltilt
Mon Dec 17, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 4692

Re: Pre-paying mortgage only in early years

I certainly would never say that pre-paying a mortgage is always, or even usually, a bad idea. I do think people need to be careful not to put themselves into a liquidity trap from which they can't escape AND that could have been easily avoided. I agree. That's why I think that unless you can pay off your mortgage in a fairly short period of time, you're better off creating a sinking fund with the cash you would have applied toward the mortgage. This maintains liquidity and eventually allows you to pay off the mortgage in one fail swoop. Or if you change your mind before paying off the mortgage, you can apply the funds toward something else entirely. The only real cost is the difference between your mortgage rate and the return on the sink...
by fulltilt
Mon Dec 17, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 4692

Re: Pre-paying mortgage only in early years

KlangFool wrote: Mon Dec 17, 2018 2:26 pm
fulltilt,

If a person has no confidence that his 60/40 portfolio could return at least on the average of nominal annual 5% over the next 10 to 20 years, why invest at all? Just pre-pay the mortgage instead of investing any money.
I invest because i don't know what the future holds. Vanguard is projecting the median return of 60/40 portfolio over the next 10 years will be 4.9%. Investing certainly isn't a slam dunk, but i think it is probably better to invest than pay down the mortgage.
KlangFool wrote: Mon Dec 17, 2018 2:26 pm
<<We don't all have 4,000 years of emergency fund saved up like you KlangFool. >>

Then, it is even more essential that do not tie up more of your money in the illiquid house.

KlangFool
Ha! Well played sir. Well played. :sharebeer
by fulltilt
Mon Dec 17, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 4692

Re: Pre-paying mortgage only in early years

Accelerated payments are certainly not 'gone', the return is immediate and risk free. The return is in the reduction of interest paid each month. That is real money. It's "gone" in the sense that prepayment is a mechanism to convert what is the most liquid class of asset that most people own (cash) into the least liquid class of asset most people own (real estate). +1 exactly. In your specific example, lets say that OP does lose his job after 4 years, if he has been only paying the minimum and investing the rest, then what happens when he needs to relocate but he can't because he is upside down on his house? He could use the money he had been saving instead of prepaying into the house to subsidize the sale. Jags4186, Or, he could...
by fulltilt
Mon Dec 17, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage and separate accounts - how does it work?
Replies: 98
Views: 7643

Re: Marriage and separate accounts - how does it work?

I am recently married and we decided to have a joint account for common bills etc and separate accounts for personal stuff (power tools and shoes). I know there are two schools of thought on the topic but for those of you who have separated accounts, how does it work (assume equal salaries)? 1) Do you fund the personal account with some small percentage of your paycheck and the remaining into the joint account? 2) Is the personal account essentially your allowance and any long term savings takes place from overfunding the joint account? i.e. you saved 10k in the joint account and then that money can move elsewhere for savings. 3) What did you decide to be personal vs joint spending? i.e. Beer and golf is personal but groceries are joint? I...
by fulltilt
Mon Dec 17, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 4692

Re: Pre-paying mortgage only in early years

Accelerated payments are certainly not 'gone', the return is immediate and risk free. The return is in the reduction of interest paid each month. That is real money. It's "gone" in the sense that prepayment is a mechanism to convert what is the most liquid class of asset that most people own (cash) into the least liquid class of asset most people own (real estate). Your home has basically two states—mortgaged or paid off, payment or no payment. Ignoring refinance scenarios, that payment is set at origination and doesn’t change unless you completely pay off the house. You say you are prepaying your mortgage to reduce your fixed expenses going forward in order to mitigate damages from job loss. Prepaying your mortgage reduces your ...
by fulltilt
Mon Dec 17, 2018 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 4692

Re: Pre-paying mortgage only in early years

Willthrill81, I don’t think paying off a low interest rate mortgage quickly is a bad idea. I think it is sub optimal. But that can only be known in hindsight. If I had to guess which one would have him having more money in 24 years, I would wager paying monthly and investing the difference versus prepaying the mortgage. The benefit of holding bonds is that they are not as volatile as stocks and not highly correlated to stocks. The benefit of having a mortgage is the ability to leverage an asset with a low interest, long duration, uncallable loan. Sub-optimal only if the variable you're optimizing against is return. Let’s look at this particular scenario. OP is in a position where he can either pay $1500/mo more on his mortgage payment ever...
by fulltilt
Thu Dec 13, 2018 3:54 pm
Forum: Personal Consumer Issues
Topic: Anything to prevent switching iPhones?
Replies: 10
Views: 1169

Re: Anything to prevent switching iPhones?

ThankYouJack wrote: Thu Dec 13, 2018 11:07 am Thanks all. Not sure the answers to the questions. My wife would probably have to talk to IT and get more info on using her own phone. Obviously that would give away the surprise of the gift, but I guess it's better to be sure.

Or I could just get it and if it doesn't work out, I could just keep the new phone for myself :)
I would have very strong reservations mixing personal and business use on a phone. First, the IT department might have draconian security policies that must be applied or they might have to install a bunch of junky software on the device. Second, if the employer were to get sued, the device might get wrangled into a legal mess if it contains business records, etc.

Not worth it, IMHO.
by fulltilt
Wed Nov 28, 2018 2:13 pm
Forum: Personal Investments
Topic: Assuming vs Inheriting an IRA
Replies: 8
Views: 984

Re: Assuming vs Inheriting an IRA

fposte wrote: Wed Nov 28, 2018 2:10 pm
fulltilt wrote: Wed Nov 28, 2018 2:00 pm
EDIT: if the factor is decremented by 1 each year, that actually *increases* RMDs each year, does it not?
Yes, unless the balance has dropped significantly enough to compensate for the higher percentage.
:oops:

Coffin nailed i think....
by fulltilt
Wed Nov 28, 2018 2:00 pm
Forum: Personal Investments
Topic: Assuming vs Inheriting an IRA
Replies: 8
Views: 984

Re: Assuming vs Inheriting an IRA

I'm not sure I understand the facts. Does the beneficiary have an existing (non-inherited, non-ROTH) IRA? If there is one, my understanding is the IRA from the deceased can be rolled into it & RMDs continue as they would otherwise. I'm also assuming there are no trusts involved & only one beneficiary. The fact that the spouses are the same age is key I think -- otherwise that would cause more wrinkles. The other thing to consider is RMD after the first year. I believe with a "inherited IRA", the table is only used in the first year & that factor is decremented by 1 each year after...with the "traditional", the table would be used each year. Is conversion to ROTH something that might be of interest? At least ...
by fulltilt
Wed Nov 28, 2018 12:26 pm
Forum: Personal Investments
Topic: Assuming vs Inheriting an IRA
Replies: 8
Views: 984

Re: Assuming vs Inheriting an IRA

Bump. Hopefully, someone can weigh in on this question as it isn't a hypothetical. From what I have read, the RMDs for an Traditional IRA are the account balance on 12/31 of the previous year divided by the life expectancy factor as determined in the Uniform Lifetime Table. On the other hand, for an inherited IRA, the RMDs are based on the account balance on 12/31 of the previous year divided by the life expectancy factor as determined in the Single Life Expectancy Table. For a $100,000 IRA and a 73 year old spouse, the difference in RMD is $100,000/24.7 if they choose to assume the IRA versus $100,000/14.8 if they choose to inherit it ($4048 vs $6756). It looks like assuming the IRA is the better option from the perspective of RMDs. Anyone...
by fulltilt
Wed Nov 21, 2018 5:00 pm
Forum: Personal Investments
Topic: Assuming vs Inheriting an IRA
Replies: 8
Views: 984

Assuming vs Inheriting an IRA

Given a married couple where both spouses are 73 and one spouse passes away. Are there significant differences in choosing whether to assume vs inherit an IRA? Seems *about* the same to me because RMDs have already commenced. If one values simplicity, then it seems like assuming might be the easier option. What am i missing?
by fulltilt
Wed Nov 21, 2018 6:55 am
Forum: Investing - Theory, News & General
Topic: What to do when you have Less than 100K ? say just 50k
Replies: 36
Views: 4922

Re: What to do when you have Less than 100K ? say just 50k

I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now. My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a % losing at this point isnt a big at low level of cash, it would hurt more when i have more than 100K. so does that mean , until i reach 100K, is it wiser to put my money into a single stock say " MSFT" or ADBE or into the S&P or QQQ until i have at least doubled my money , and then switch over to a portfolio theory based investment model ? what are your thoughts on this strategy where i divide it between <100k and >100k ...
by fulltilt
Thu Nov 15, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: How Long / Hard To Become a Millionaire on Under $100k Income
Replies: 127
Views: 17115

Re: How Long / Hard To Become a Millionaire on Under $100k Income

It's possible if you're young enough, save aggressively enough, and invest aggressively enough. If you can save $20,000 per year (inflation adjusted) and invest it aggressively enough to get a 4% real return, you'll have $1,976,531 (inflation adjusted) in forty years. Even at 3%, you'll have $1,553,266. I'm young enough, 28, saving as aggressively as I can with a family to support ($1,000 a month) on $60k income, and I invest 90% low cost equities, 10% bonds, but it still seems hard to see much progress. Don't give up. Once your portfolio size hits the same level as your salary, you will start to notice your portfolio start to snowball a little. Once you hit 2-2.5x, that is when things start to get rolling. That is what "they" sa...
by fulltilt
Thu Nov 15, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: How Long / Hard To Become a Millionaire on Under $100k Income
Replies: 127
Views: 17115

Re: How Long / Hard To Become a Millionaire on Under $100k Income

bigtex wrote: Thu Nov 15, 2018 3:21 pm
Smorgasbord wrote: Thu Nov 15, 2018 3:11 pm Becoming a millionaire by 40 can be done by saving $60 a day from age 21 through 40 with an 8% return on investments. How hard it is to save $60 a day depends greatly on how close to the $100k/yr mark you get.
Yes, that would be tough. $60 a day is $1,800 a month.
Not sure what is harder, saving the $60 a day or getting 8% return...
by fulltilt
Sun Nov 11, 2018 3:27 pm
Forum: Personal Investments
Topic: Roth vs. Traditional for low tax bracket
Replies: 10
Views: 1277

Re: Roth vs. Traditional for low tax bracket

60guy wrote: Sun Nov 11, 2018 3:12 pm BHs,

I'm looking for some clarification/advice on deciding if I should change my retirement investing to traditional instead of Roth contributions. I think my biggest hang-up is not fully understanding why marginal tax rate is used vs. effective tax rate as part of this decision. My situation is as follows:
...
For fun, find a tax forecasting app online or run the numbers yourself to see why marginal rate is used for the decision.

Sounds like you have a solid plan. I don’t think I would change much.
by fulltilt
Sun Nov 11, 2018 11:04 am
Forum: Personal Investments
Topic: Severance | 401(k)
Replies: 20
Views: 2387

Re: Severance | 401(k)

The company I work for was recently acquired. Their CEO passed along that no employees will be absorbed. So they'll essentially cut us a generous check for severance. Unlike a former layoff this severance package is welcomed. After discussing with HR, severance and 19' pro-rated bonus will not be eligible for 401(k) contributions. However, I have the option to contribute 100% of my pay check in early 2019 in order to max the 2019 401(k) limits (by February). Initially I liked this option but with more time I realized that I may be leaving $10-15k on the table. 6%-10% dollar for dollar 401(k) matches are common for this particular industry. If I rebound quickly and find another job I'd be losing on that match for the remainder of 2019. Woul...
by fulltilt
Sat Nov 10, 2018 9:52 am
Forum: Personal Investments
Topic: New job - not sure how much to 401k and how much to Roth IRA
Replies: 17
Views: 1654

Re: New job - not sure how much to 401k and how much to Roth IRA

... However, this thread isn't really supposed to be about how much I should invest, but where I should invest. At this point, should I still be prioritizing the Roth IRAs? I want to retire at 50, which makes the IRAs more attractive than the 401k, in terms of being able to access it at a younger age. However, my income now will be $75,000, and I expect a retirement income of no more than $24,000, so paying taxes on my income in retirement instead of now makes the 401k more attractive. Where should I be sticking my money? Thanks for any insights. What would happen if you contributed into the 401k until you get your household income into the 12% tax bracket, then go Roth. There are provisions for accessing your 401k money at the age of 55, ...
by fulltilt
Sat Nov 10, 2018 9:32 am
Forum: Personal Investments
Topic: Roth vs traditional for lower income maid
Replies: 6
Views: 915

Re: Roth vs traditional for lower income maid

b0B wrote: Sat Nov 10, 2018 9:08 am
KlangFool wrote: Fri Nov 09, 2018 11:35 amThey need to research tax credits: Earned Income Tax Credit and Saver's Credit. At the low-income level, they may or may not qualify for those tax credits depending on whether they contribute to the Trad. IRA or Roth IRA.
A corollary of this is that low income could mean high marginal tax rates. This is crucial to understand.
Would you care to elaborate?
by fulltilt
Fri Nov 09, 2018 8:54 pm
Forum: Personal Investments
Topic: Traditional or Roth IRA for spouse and I
Replies: 28
Views: 2113

Re: Traditional or Roth IRA for spouse and I

Full traditional IRA deduction for 2018 is less than 101,000 income, partial deduction from 101,000-119,000. See https://www.fidelity.com/retirement-ira/contribution-limits-deadlines for a chart and a calculator if your AGI/MAGI (typically this is line 37 on IRS tax form 1040) is between 101,000-119,000. If you max our your 403b (18,500 for 2018) I think that means you are hovering right around the full or partial deduction income limit at 101,000. If you then contribute to traditional IRA (11,000) total, you should be able to get an AGI below 101,000 to qualify for the entire deduction. I prefer to pay less taxes now so I would go traditional. Many here will suggest you always to Roth. Essentially if you think you will be in a higher tax ...
by fulltilt
Fri Nov 09, 2018 7:44 pm
Forum: Personal Investments
Topic: Traditional or Roth IRA for spouse and I
Replies: 28
Views: 2113

Re: Traditional or Roth IRA for spouse and I

Full traditional IRA deduction for 2018 is less than 101,000 income, partial deduction from 101,000-119,000. See https://www.fidelity.com/retirement-ira/contribution-limits-deadlines for a chart and a calculator if your AGI/MAGI (typically this is line 37 on IRS tax form 1040) is between 101,000-119,000. If you max our your 403b (18,500 for 2018) I think that means you are hovering right around the full or partial deduction income limit at 101,000. If you then contribute to traditional IRA (11,000) total, you should be able to get an AGI below 101,000 to qualify for the entire deduction. I prefer to pay less taxes now so I would go traditional. Many here will suggest you always to Roth. Essentially if you think you will be in a higher tax ...
by fulltilt
Thu Nov 08, 2018 12:17 pm
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 9916

Re: Do people calculate savings rate on gross income?

[ This is just an approximation. I got lazy. The doctors are paying 37% for their entire income and the nurses are paying 0%. I think these approximations work in your favor, yes? Here are the numbers that i came up with as a rough estimate. I will note that neither example takes into consideration health insurance premiums. What am i missing? 2 doctors, $2,000,000 total Total Tax $849,788.80 Total Tax Rate 42% Annual Take Home $113,211.20 Monthly Take Home $9,434.27 2 nurses, $60,000 total Total Tax $4,590.00 Total Tax Rate 8% Annual Take Home $25,410.00 Monthly Take Home $2,117.50 Say what? So you've shown combined income and taxes but only a single take home? A physician with $1m annual income could clear $500k, save $250k, and live on ...
by fulltilt
Thu Nov 08, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 9916

Re: Do people calculate savings rate on gross income?

If you make $2M a year, saving $1M a year is trivial. If you make $60k a year, saving $30k a year is hard. In most states in the union, you'd lose nearly the first million in taxes even married filing jointly. You have State, Local, Federal, FICA (+Medicare additional tax) to contend with and, at that level of income, it is a lot money in absolute terms and also a high percentage of one's gross income. If you're curious, you are welcome to run the math (in fact I'd challenge you to do it). I think there is a dire misunderstanding of how progressive taxation works. Then of course there is the obvious problem that people who currently make $2mm income undoubtedly don't live like the Millionaire Next Door. These would be investment bankers, e...
by fulltilt
Thu Nov 08, 2018 7:05 am
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 9916

Re: Do people calculate savings rate on gross income?

:) i think what needs to be said is that comparing your savings rate to someone else's is fairly meaningless. if my savings rate was 50% that sounds great to most folks. but let's say my wife and i are both beverly hills plastic surgeons and we pull in $2M a year. that implies i spend $1M per year and save $1M per year. if we made $60K and managed to save $30K per year, that is entirely different and some would say, more laudable. Why is being a less productive member of society (only generating 60k of worth and saving 30k) more laudable than being a highly productive one? And the above math is way off since it is ignoring 2/3s of the savings that the average person is doing:) Because it is harder to save half your income when you make onl...
by fulltilt
Thu Nov 08, 2018 6:49 am
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 9916

Re: Do people calculate savings rate on gross income?

:) I have no idea why some believe that savings rate is meaningless. Nothing could be further from the truth. Your savings rate is closely linked to how long it will take you to reach financial independence (FI), a major goal for most Bogleheads. Assuming 5% real returns and a 4% withdrawal rate, it will take a whopping 62 years to reach FI at Americans' average savings rate of 6%. At a 50% savings rate (same assumptions), it takes 16.6 years. That's very relevant indeed. i think what needs to be said is that comparing your savings rate to someone else's is fairly meaningless. if my savings rate was 50% that sounds great to most folks. but let's say my wife and i are both beverly hills plastic surgeons and we pull in $2M a year. that impli...
by fulltilt
Wed Nov 07, 2018 9:31 pm
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 9916

Re: Do people calculate savings rate on gross income?

:) I have no idea why some believe that savings rate is meaningless. Nothing could be further from the truth. Your savings rate is closely linked to how long it will take you to reach financial independence (FI), a major goal for most Bogleheads. Assuming 5% real returns and a 4% withdrawal rate, it will take a whopping 62 years to reach FI at Americans' average savings rate of 6%. At a 50% savings rate (same assumptions), it takes 16.6 years. That's very relevant indeed. i think what needs to be said is that comparing your savings rate to someone else's is fairly meaningless. if my savings rate was 50% that sounds great to most folks. but let's say my wife and i are both beverly hills plastic surgeons and we pull in $2M a year. that implie...