Search found 1712 matches

by Artsdoctor
Fri Feb 12, 2016 11:42 am
Forum: Investing - Theory, News & General
Topic: Is it starting to smell like opportunity?
Replies: 27
Views: 2328

Re: Is it starting to smell like opportunity?

I think that "trying to catch a falling knife" conjures up a suitably descriptive metaphor. Remember 2008? Buy on the dips? People were better off buying on the craters. I'm guilty of two things. (1) Recency bias: 2008-2009 left wounds. I buy and rebalance when my asset allocation requires...
by Artsdoctor
Fri Feb 12, 2016 11:31 am
Forum: Investing - Theory, News & General
Topic: Buying the Dividend
Replies: 12
Views: 1167

Re: Buying the Dividend

That's annual so you'd divide the 2% by four. Total Stock dividends are divided pretty evenly unlike other funds. And that is low enough that it isn't worth waiting. If you plan to invest $10,000 in a fund, you expect to get a $50 dividend, which will lead to $8 in tax. Staying out of the market fo...
by Artsdoctor
Thu Feb 11, 2016 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: A bad time to retire or a good time to retire?
Replies: 23
Views: 2154

Re: A bad time to retire or a good time to retire?

You're positioned better than most to retire any time you'd like. You know that these things go in cycles and I don't think anyone's figured out how to predict when a cycle starts and stops. Your wife will be working part-time and a little money coming in is different than no money coming in. From y...
by Artsdoctor
Thu Feb 11, 2016 6:13 pm
Forum: Investing - Theory, News & General
Topic: World stocks officially reach bear market territory
Replies: 25
Views: 3204

Re: World stocks officially reach bear market territory

It's about time. You know these cycles are going to occur, you just don't know when. If you're feeling nervous and anxious, write down your thoughts when it's happening. Once the market stabilizes and you return to being bullish when everyone is being bullish, read about what your thoughts were when...
by Artsdoctor
Thu Feb 11, 2016 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: What is your decline in Net Worth as of today?
Replies: 70
Views: 5405

Re: What is your decline in Net Worth as of today?

Net worth? Hard to say since I'm not really convinced Zillow or Redfin are accurate. I have a new car and I've paid down the mortgage like a bat out of ***, so I'm assuming I'm doing OK. I don't FEEL any different . . .
by Artsdoctor
Thu Feb 11, 2016 3:17 pm
Forum: Investing - Theory, News & General
Topic: Buying the Dividend
Replies: 12
Views: 1167

Re: Buying the Dividend

That's annual so you'd divide the 2% by four. Total Stock dividends are divided pretty evenly unlike other funds.
by Artsdoctor
Thu Feb 11, 2016 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Short-term and Long-term tax loss difference?
Replies: 10
Views: 371

Re: Short-term and Long-term tax loss difference?

The answer is maybe. At the end of the day, you are responsible for keeping an eye on your cost basis. I prefer to use Specific Lot ID because that allows me to control the loss or gain. Inevitably, shares are divided up into covered and non-covered shares (the former are tallied by the brokerage ho...
by Artsdoctor
Thu Feb 11, 2016 12:45 pm
Forum: Investing - Theory, News & General
Topic: Buying the Dividend
Replies: 12
Views: 1167

Re: Buying the Dividend

It's unlikely that it'll be 3%, probably closer to 2-2.2%. So you figure that your dividend from the $30K contribution should be no more than $165. I don't think that should influence your decision here, especially since it's over a month away. However, it's great that you're thinking about it; alwa...
by Artsdoctor
Thu Feb 11, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion About Preventing Theft of IRS Tax Data
Replies: 10
Views: 626

Re: Confusion About Preventing Theft of IRS Tax Data

Most of us would love to have an extra layer of security for filing, but right now it's restricted to those noted in your post above.
by Artsdoctor
Thu Feb 11, 2016 12:37 pm
Forum: Personal Consumer Issues
Topic: Long layover in LAX. Shuttle to Orange County?
Replies: 5
Views: 341

Re: Long layover in LAX. Shuttle to Orange County?

You'll need a car rental. Even if there was a perfect shuttle to Garden Grove, once you're there you'd want to be mobile. You'll have to allow time to get to/from LAX to/from the car rental lot. Depending on traffic, it could take you nearly 90 minutes to get from the car rental lot to Garden Grove.
by Artsdoctor
Thu Feb 11, 2016 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Short-term and Long-term tax loss difference?
Replies: 10
Views: 371

Re: Short-term and Long-term tax loss difference?

livesoft wrote:Tax software handles everything and makes one stupid ... unless they go read the IRS publications and instructions. In that case, tax software handles everything and makes one smart.


LOL!! This is true.
by Artsdoctor
Thu Feb 11, 2016 12:28 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2268

Re: Total Bond Market > Tax-Exempt Bond Fund?

AJacobs, There are a few things to keep in mind. When you're comparing fund yields, you SHOULD be comparing SEC yields. However, it's always helpful to see the distribution yields because it'll give you a chance to see if there is any significant disconnect (now, there is, especially with the muni ...
by Artsdoctor
Thu Feb 11, 2016 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Short-term and Long-term tax loss difference?
Replies: 10
Views: 371

Re: Short-term and Long-term tax loss difference?

radiowave wrote:A naive followup question livesoft or others, does TurboTax handle these different short/long/income losses or do you have to do this by hand?

thanks


TurboTax will take care of all of this for you. When you enter your sales, you'll be prompted to enter the date on which the shares were purchased.
by Artsdoctor
Thu Feb 11, 2016 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Estimating expenses in retirement
Replies: 31
Views: 1954

Re: Estimating expenses in retirement

So the formula would look like this: (my take-home) + (spouse net) + (bonus) + (tax refund) = current expenses While you are working you will may also have things that are paid out of payroll deductions like; Dental and vision insurance Health insurance Flexible spending account for healthcare It w...
by Artsdoctor
Thu Feb 11, 2016 9:55 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2268

Re: Total Bond Market > Tax-Exempt Bond Fund?

AJacobs, There are a few things to keep in mind. When you're comparing fund yields, you SHOULD be comparing SEC yields. However, it's always helpful to see the distribution yields because it'll give you a chance to see if there is any significant disconnect (now, there is, especially with the muni f...
by Artsdoctor
Wed Feb 10, 2016 6:49 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2268

Re: Total Bond Market > Tax-Exempt Bond Fund?

There's a difference, sometimes very big, between SEC yield and distribution yield. The muni funds have been distributing far more than the SEC yield would lead you to believe. Of course, this large discrepancy can narrow considerably over time. You can take a look at the distribution yields on the ...
by Artsdoctor
Wed Feb 10, 2016 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Mid-seven figure portfolio--help?
Replies: 18
Views: 3249

Re: Mid-seven figure portfolio--help?

Dazed, I think your plan is actually great! You can tweak it but it's a very simple plan. The first part is that you say you have more than you'll ever need. That's important and it allows you to be more aggressive in your investments--i.e., you're investing for your heirs. There's also no need for ...
by Artsdoctor
Wed Feb 10, 2016 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help--protecting mother's joint assets from father with dementia?
Replies: 15
Views: 1332

Re: Help--protecting mother's joint assets from father with dementia?

Guardianship. And please prepare your mom for the fallout since he won't like it at all. Cognitive decline can be so difficult to deal with; if she hasn't already done so, have her consider joining a dementia group since it's always the caregivers that have it the roughest.
by Artsdoctor
Wed Feb 10, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating expenses in retirement
Replies: 31
Views: 1954

Re: Estimating expenses in retirement

For what it's worth, I've found that a 12-month period is probably the best, at least for me. There are some bills that are annual, and they're not insignificant. This doesn't have to be perfect, and you can probably having an easier go at it if you start going forward, as opposed to looking back. W...
by Artsdoctor
Wed Feb 10, 2016 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: TLH: Just down lots or all? Does it matter?
Replies: 14
Views: 1047

Re: TLH: Just down lots or all? Does it matter?

Scamp, There is something to be said about simplicity. However, I get the sense that you have many years of investing ahead of you and I'm going to agree with livesoft here: you're probably going to wind up with a couple of "similar" funds in one asset class. Even if you were to simplify n...
by Artsdoctor
Wed Feb 10, 2016 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating expenses in retirement
Replies: 31
Views: 1954

Re: Estimating expenses in retirement

There are no flaws in your logic, but I do think that there's a lot to be gained by drilling down a bit more to see where your expenses are. A general idea is fine, but I've found that the closer you actually get to shutting off that income pipeline, the more it's in your best interests to see your ...
by Artsdoctor
Wed Feb 10, 2016 1:17 pm
Forum: Personal Consumer Issues
Topic: The Retirement Problem: What Will You Do With All That Time?
Replies: 61
Views: 4664

Re: The Retirement Problem: What Will You Do With All That Time?

If you have found yourself in a career that is not just a job but a lifestyle (and perhaps an enjoyable one at that), I'm a big proponent in cutting back to part-time in order to get a glimpse what full retirement might be like. Some people may find that retirement comes naturally, some people might...
by Artsdoctor
Wed Feb 10, 2016 1:06 pm
Forum: Investing - Theory, News & General
Topic: "The Cost Matters Hypothesis"
Replies: 4
Views: 698

Re: "The Cost Matters Hypothesis"

The volatility of the markets over the past couple of months is a reminder that there are many things we can't control in investing. However, costs are something we can. Thanks for the link, Taylor; it should be required reading for all investors.
by Artsdoctor
Wed Feb 10, 2016 9:32 am
Forum: Investing - Theory, News & General
Topic: William Bernstein's "If You Can" Portfolio
Replies: 40
Views: 5105

Re: William Bernstein's "If You Can" Portfolio

Bill Bernstein has always argued that it's impossible to understand your risk tolerance until you've lived through a grueling bear market. By holding a 33% stake in bonds, you'd be less likely to sell prematurely than someone holding a 90% stake in equities. Are there any studies to back that up? I...
by Artsdoctor
Tue Feb 09, 2016 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: SS survivor benefit question
Replies: 7
Views: 504

Re: SS survivor benefit question

^ Correct.

While both are living, they are receiving $2,000 + $1,000 = $3,000.

It makes no difference if he or she dies first, the remaining spouse will then receive $2,000 per month.
by Artsdoctor
Tue Feb 09, 2016 7:44 pm
Forum: Investing - Theory, News & General
Topic: William Bernstein's "If You Can" Portfolio
Replies: 40
Views: 5105

Re: William Bernstein's "If You Can" Portfolio

Thankfully, there is a burgeoning field of investor psychology out there which will provide endless entertainment for investors of all ages.
by Artsdoctor
Tue Feb 09, 2016 7:41 pm
Forum: Investing - Theory, News & General
Topic: iBond buying strategy: One Lump or Multiple Buys?
Replies: 33
Views: 1816

Re: iBond buying strategy: One Lump or Multiple Buys?

I guess I'm still miffed at the last six month period where the I-bonds were earning nothing. Yes, you can say that the interest rate of 1.64% (or whatever it was) is better than an online savings account, but that's for a 6-month period (so actually 1.64%/2). During that six month period last year,...
by Artsdoctor
Tue Feb 09, 2016 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: SS survivor benefit question
Replies: 7
Views: 504

Re: SS survivor benefit question

Ok, so it sounds as if you're right in the general scheme of things: SHE paid in to social security and is getting nothing for it. If he begins his benefits at FRA and will be receiving $2000 per month, you will be receiving $1000 per month whether you would have worked or not. SS will tell you that...
by Artsdoctor
Tue Feb 09, 2016 7:31 pm
Forum: Investing - Theory, News & General
Topic: iBond buying strategy: One Lump or Multiple Buys?
Replies: 33
Views: 1816

Re: iBond buying strategy: One Lump or Multiple Buys?

We're essentially saying the same thing. I buy $20,000 in I-bonds each year, but I feel as if I'm taking medicine doing it. Such is the life of investing in fixed income products in a low interest rate environment. Which seems to be going on forever . . .
by Artsdoctor
Tue Feb 09, 2016 6:57 pm
Forum: Investing - Theory, News & General
Topic: iBond buying strategy: One Lump or Multiple Buys?
Replies: 33
Views: 1816

Re: iBond buying strategy: One Lump or Multiple Buys?

At the current yield, I-bonds are certainly not the ideal investment. I think people get too hung up on the "current yield" thing. Current yields don't last very long, and if you don't buy your limit you cannot go back another year and make up for it. A few years back when I-bonds were yi...
by Artsdoctor
Tue Feb 09, 2016 6:41 pm
Forum: Investing - Theory, News & General
Topic: William Bernstein's "If You Can" Portfolio
Replies: 40
Views: 5105

Re: William Bernstein's "If You Can" Portfolio

Hello. I have a question about William Bernstein's suggested portfolio for a 25 year old. Here is what he suggests: 1/3 Total US Stock Market 1/3 Total International Stock Market 1/3 Total Bond Market https://dl.dropboxusercontent.com/u/29031758/If%20You%20Can.pdf Isn't this a bit conservative for ...
by Artsdoctor
Tue Feb 09, 2016 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions and RMDs - Timing question
Replies: 14
Views: 687

Re: Roth Conversions and RMDs - Timing question

Well, that's just a mess, isn't it? If you retire during the year, what balance is the RMD based on? Do they go back and look up the past December 31 or is it based on the retirement date? Seems very odd you can be allowed to contribute to 401k and forced to take some out in the same year if you ha...
by Artsdoctor
Tue Feb 09, 2016 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalance into bonds during a falling market?
Replies: 8
Views: 675

Re: Rebalance into bonds during a falling market?

To play devil's advocate: The reason why people rebalance is first about attenuating risk, and then only second about potential higher returns (the second could be debated for a very long time). You've benefited nicely from the equity run-up over the past few years and are sitting on some nice gains...
by Artsdoctor
Tue Feb 09, 2016 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

If you have a Roth, another option would be to earmark a portion of your Roth for long-term care the same way you're doing with your HSA. However, you'd start spending your HSA for medical expenses while you're alive PRIOR TO touching your Roth. That way, you'd be saving the funds in the flexible o...
by Artsdoctor
Tue Feb 09, 2016 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions and RMDs - Timing question
Replies: 14
Views: 687

Re: Roth Conversions and RMDs - Timing question

Nice explanation, Alan. So while you could conceivably do a conversion prior to your RMD, it'd be a hassle to make sure that the paperwork is done correctly and probably wouldn't be worth the effort? Better to take the RMD after you've retired from the company, and then convert a portion to the Roth...
by Artsdoctor
Tue Feb 09, 2016 2:24 pm
Forum: Investing - Theory, News & General
Topic: iBond buying strategy: One Lump or Multiple Buys?
Replies: 33
Views: 1816

Re: iBond buying strategy: One Lump or Multiple Buys?

dbCooperAir wrote:I like larger one time purchases, the less information you need to sift through on the TD site the better.

If you have his and her accounts I can see buying in every 6 months, one time per year per account.


Yes, this is exactly what we do.
by Artsdoctor
Tue Feb 09, 2016 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

And here the linkage between an HSA and a HDHP is in your favor, because the HDHP provides you with clean records of what benefits you received. So just save the HDHP tally every year. Yes, but many folks will not have an HDHP tally every year. Although you must have an HDHP in order to contribute,...
by Artsdoctor
Tue Feb 09, 2016 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions and RMDs - Timing question
Replies: 14
Views: 687

Re: Roth Conversions and RMDs - Timing question

If your employer plan is set up as you say (you don't have to take an RMD until you retire), you must take your first RMD during the year you retire. The rules for IRAs are different than the rules for your defined contribution plan; for the former, you must begin your RMDs at 70-1/2 (technically by...
by Artsdoctor
Tue Feb 09, 2016 1:53 pm
Forum: Investing - Theory, News & General
Topic: iBond buying strategy: One Lump or Multiple Buys?
Replies: 33
Views: 1816

Re: iBond buying strategy: One Lump or Multiple Buys?

At the current yield, I-bonds are certainly not the ideal investment. I'm not convinced I'd label them among the riskiest investments though. You're right that you don't get a stepped up basis at the time of death, but when you inherit an IRA, you're not getting a stepped up basis (that would be a n...
by Artsdoctor
Tue Feb 09, 2016 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

^ Well, there is a tiny bright spot. I live in California and health savings accounts are not recognized here. This means I can tax-loss harvest for state reasons, and CA allows taxpayers to carryover those losses.

But still, it really gets on my nerves that CA doesn't recognize HSAs.
by Artsdoctor
Tue Feb 09, 2016 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

Lon,

I wouldn't exclude the possibility of making a charity a beneficiary; no taxes would be due if that's the case.
by Artsdoctor
Tue Feb 09, 2016 10:20 am
Forum: Personal Finance (Not Investing)
Topic: S corporation for high-income independent contractor physician??
Replies: 20
Views: 1672

Re: S corporation for high-income independent contractor physician??

There are many business expenses which you probably incur, some of which you listed. These will come off the top of your gross income (as opposed to trying to deduct them as miscellaneous expense on your tax forms). do you know if medical expenses of the S Corp owner/employee fall within S Corp exp...
by Artsdoctor
Mon Feb 08, 2016 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: What happens when car accident claim exceeds insurance limits?
Replies: 52
Views: 3945

Re: What happens when car accident claim exceeds insurance limits?

Likewise, if it's a criminal case, your insurance company may provide a lawyer for you, but again, you'd have little say about the choice of the individual lawyer and may choose to hire your own. I don't think your liability insurance will provide a lawyer for your in a criminal case. Yes, it can. ...
by Artsdoctor
Mon Feb 08, 2016 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: What happens when car accident claim exceeds insurance limits?
Replies: 52
Views: 3945

Re: What happens when car accident claim exceeds insurance limits?

Quant's story can happen, and Kenner's explanation is definitely on target. I can only speak from a California perspective. If you're being sued for an amount that would reasonably fall within the confines of your coverage, you'll definitely be able to let your insurance counsel know you want to set...
by Artsdoctor
Mon Feb 08, 2016 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC or Buy Next Car
Replies: 13
Views: 1100

Re: HELOC or Buy Next Car

Opriskguy, So I'm going to go out on a limb here: I generally think of HELOCs as easy access emergency/urgency money meant to be paid back pretty quickly. However, others may strongly disagree with this. You didn't mention anything about your other assets, but if you're making more than $300,000 per...
by Artsdoctor
Mon Feb 08, 2016 5:34 pm
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 12
Views: 829

Re: Hold International Funds in Roth IRA or Taxable Account?

In my calculation, it would seem that taking the foreign tax credit is beneficial. However, viewed as a percentage of the fund balance, it's an extremely small edge. Given the volatility, and downward trajectory, the benefits of tax-loss harvesting international shares in the taxable account probabl...
by Artsdoctor
Mon Feb 08, 2016 5:27 pm
Forum: Investing - Theory, News & General
Topic: Some Lazy Portfolio Returns for 2015
Replies: 3
Views: 924

Re: Some Lazy Portfolio Returns for 2015

Thanks for the tally. Last year was a pretty lackluster year for everyone, but it's fascinating to see the Lazy Portfolio Returns side-by-side.
by Artsdoctor
Mon Feb 08, 2016 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

Spirit Rider, That's a superb explanation. It sounds as if this may be addressed in more detail in the future as HSAs grow in popularity and worth. I'll have to think about the possibility of having a charity as a beneficiary. Some people (me included) leave percentages of the estate to various bene...
by Artsdoctor
Mon Feb 08, 2016 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

^ Yes, I'm getting that impression. It sounds like estate planners are just now getting into this question because the value of HSAs is increasing steadily. One workaround that I can see, if it fits into someone's estate plan, is for the remaining spouse to name a charity as the HSA beneficiary. No ...
by Artsdoctor
Mon Feb 08, 2016 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1671

Re: Health Savings Accounts: Factual Errors in Wiki

Hmm. I'm thinking aloud here: We know that HSA funds can be paid retroactively for qualified medical expenses. All of my medical expenses incurred over the past several years have been filed away and I can reimburse myself at any time. Furthermore, I can use HSA funds to reimburse for spouse's benef...

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