Search found 4941 matches

by KlangFool
Thu Mar 23, 2017 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: So someone drained $13k from my checking account...
Replies: 18
Views: 1819

Re: So someone drained $13k from my checking account...

But now I'm thinking about what lessons to draw from this. How did the fraudster get the account number? The only direct withdrawals and deposits to the account are from paychecks, utilities, credit card companies, ACH links to other financial institutions, and the (very) occasional check. Was one ...
by KlangFool
Thu Mar 23, 2017 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: How did you do your income taxes?
Replies: 51
Views: 1420

Re: How did you do your income taxes?

Folks,

<<H&R Block Tax Software Premium 2016 + Refund Bonus Offer PC/Mac Disc>>

Bought at Amazon around December @ $32. The deal was announced here at Boglehead. Included state and 5 federal efiles.

KlangFool
by KlangFool
Thu Mar 23, 2017 3:53 pm
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 72
Views: 4605

Re: What inflation rate do you use for your planning?

I came across this thread while looking for the inflation rate and was surprised by the many arguments that it doesn't matter. How else can one figure out the "bare minimum" yield required when evaluating on cash or cash equivalents? For example, to keep an emergency fund but not lose mon...
by KlangFool
Thu Mar 23, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting with Automated Contributions (401k, HSA, Etc) Logistics
Replies: 12
Views: 336

Re: Tax Loss Harvesting with Automated Contributions (401k, HSA, Etc) Logistics

OP, Let's take an example. Basically, you choose to let the taxable account and HSA/401K/IRA track a close but different index. For example, 1) HSA/401K/IRA only buy S&P 500 index fund. 2) Taxable account only total stock market index fund. Or, you can do the reverse and it will work. KlangFool...
by KlangFool
Thu Mar 23, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting with Automated Contributions (401k, HSA, Etc) Logistics
Replies: 12
Views: 336

Re: Tax Loss Harvesting with Automated Contributions (401k, HSA, Etc) Logistics

OP, Let's take an example. Basically, you choose to let the taxable account and HSA/401K/IRA track a close but different index. For example, 1) HSA/401K/IRA only buy S&P 500 index fund. 2) Taxable account only total stock market index fund. Or, you can do the reverse and it will work. KlangFool
by KlangFool
Wed Mar 22, 2017 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs. 401K
Replies: 18
Views: 1002

Re: Roth 401K vs. 401K

OP, It is very simple. 1) If your marginal tax rate is 25% and above, contribute to Trad. 401K. Then, take the tax savings and contribute to Roth IRA. 2) If your marginal tax rate is 15% and below, make sure that you will not qualify for saver's credit and/or earned income tax credit if you contribu...
by KlangFool
Wed Mar 22, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

To continue on these numbers, if there were no crash, the 80/20 AA will be ahead of the 70/30 AA by around $28K. So we got an upside of $28K and a downside of -$36K at the 5 year mark Alto Astral, 1) And, it won't matter a bit. You need a number between 1 million to 1.5 million at the 15 years mark...
by KlangFool
Tue Mar 21, 2017 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

To continue on these numbers, if there were no crash, the 80/20 AA will be ahead of the 70/30 AA by around $28K. So we got an upside of $28K and a downside of -$36K at the 5 year mark Alto Astral, 1) And, it won't matter a bit. You need a number between 1 million to 1.5 million at the 15 years mark...
by KlangFool
Tue Mar 21, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

I think someone could save 5 years worth of expenses with 10 years to go, something you said isn't possible above, you said one would be "out of time". I'm actually pretty certain one could save 10 years worth of expenses with 10 years to go. And beyond that, I think it's quite likely it ...
by KlangFool
Tue Mar 21, 2017 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

I guess one needs to go through one of those to find "maximum tolerable loss". But I like you putting it in the context of years of take home pay. That helps coming up with a percentage. Alto Astral, There is a more straightforward way to look at this: number of years of annual savings. I...
by KlangFool
Tue Mar 21, 2017 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-risk From 1926 to 2013, the average return for 80/20 is 9.6%. The average return for 70/30 is 9.2%. The difference is only 0.4%. Your saving rate is the only thing that matters in the long run. If you use the above link...
by KlangFool
Tue Mar 21, 2017 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

Alto Astral, There is a more straightforward way to look at this: number of years of annual savings. In your case, let's assume that you will work for another 15 years and your annual savings is 60K. At 420K and 80/20, the maximum loss is 168K = 2.8 years of savings. You have 15 years to recover. S...
by KlangFool
Tue Mar 21, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

What if its something in-between? Partial employment? Will an appropriate AA help smooth out less than ideal savings? Also should I re-evaluate my 12-month-expense EF? Alto Astral, It won't matter either. As a homework assignment, please tell us the average return rate of 70/30 versus 80/20. KlangF...
by KlangFool
Mon Mar 20, 2017 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

I guess one needs to go through one of those to find "maximum tolerable loss". But I like you putting it in the context of years of take home pay. That helps coming up with a percentage. Alto Astral, There is a more straightforward way to look at this: number of years of annual savings. I...
by KlangFool
Mon Mar 20, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

What if its something in-between? Partial employment? Will an appropriate AA help smooth out less than ideal savings? Also should I re-evaluate my 12-month-expense EF? Alto Astral, It won't matter either. As a homework assignment, please tell us the average return rate of 70/30 versus 80/20. KlangF...
by KlangFool
Mon Mar 20, 2017 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

OP, You are saving 50K to 60K per year. Let's assume that you are comfortable with 80/20 at 420K, what are you going to do with your AA when it is 720K aka 5 years from now? Switch back to 70/30 again? You need to pick an AA that you can stick with for a few years. So, just because you are comforta...
by KlangFool
Mon Mar 20, 2017 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

Obviously, you can't be 10% unemployed. But there is a 90% chance you kept your job. and a 95.6% chance you found a job within 6 months. I'm guessing if you have portfolio you tide yourself over for 3 years, you'll probably be okay... :beer knpstr, 50% of the employees at my location was laid off o...
by KlangFool
Mon Mar 20, 2017 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

Unless we're talking about widespread unemployment that is also leading to a declining equities market, your unemployment and a market downturn are unlikely to coincide, e specially with the aforementioned buffers. willthrill81, We call that recession. And, it occurred regularly every few years. Kl...
by KlangFool
Mon Mar 20, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

Unless we're talking about widespread unemployment that is also leading to a declining equities market, your unemployment and a market downturn are unlikely to coincide, e specially with the aforementioned buffers. willthrill81, We call that recession. And, it occurred regularly every few years. Kl...
by KlangFool
Mon Mar 20, 2017 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

Unless we're talking about widespread unemployment that is also leading to a declining equities market, your unemployment and a market downturn are unlikely to coincide, e specially with the aforementioned buffers. willthrill81, We call that recession. And, it occurred regularly every few years. Kl...
by KlangFool
Mon Mar 20, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

But couldn't it go either way? Meaning if its a bear market in/for 15 years, wouldn't I be glad to have that paid off and need to sell lesser bonds? Of course, the kids would be on their own with the college tuition. However, I won't have that option with the mortgage - to not pay it. As you may ha...
by KlangFool
Mon Mar 20, 2017 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

OP, The good news / bad news is the only thing that will make a difference on whether you will reach your number is your saving rate. A) It increases the amount that you can invest. B) It reduces the annual expense that you need to support. Over the next 10 to 15 years, the time and compounding of y...
by KlangFool
Mon Mar 20, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

OP, The short answer to your question is you are doing market timing. You are changing your AA from 70/30 to 80/20 because we are in a bull market. There is nothing in your life circumstances that justify changing your AA to a higher risk. In a normal aka none market timing move, the AA should glid...
by KlangFool
Mon Mar 20, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6482

Re: It's worth remembering that bull markets don't last forever

If I didn't keep a good chunk of bonds in taxable, the taxable side would shrink too much in a crash for met to access the reserves. As it is, I have a minimum bond level on the taxable side that I won't drop below unless an emergency occurred. This keeps the bonds in the tax sheltered side accessi...
by KlangFool
Mon Mar 20, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

A) So, it is okay for you sell your stock in your taxable account if you buy it back with your bond at your 401K and/or Roth IRA account. You only generated an accounting loss. It is not a bad thing. Effectively, you did not sell your stock. You are selling your bond. Okay, I see. Its not a realize...
by KlangFool
Mon Mar 20, 2017 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

A) So, it is okay for you sell your stock in your taxable account if you buy it back with your bond at your 401K and/or Roth IRA account. You only generated an accounting loss. It is not a bad thing. Effectively, you did not sell your stock. You are selling your bond. Okay, I see. Its not a realize...
by KlangFool
Mon Mar 20, 2017 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

OP, You are saving 50K to 60K per year. Let's assume that you are comfortable with 80/20 at 420K, what are you going to do with your AA when it is 720K aka 5 years from now? Switch back to 70/30 again? You need to pick an AA that you can stick with for a few years. So, just because you are comfortab...
by KlangFool
Mon Mar 20, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3191

Re: I thought I knew my desired AA

OP, The short answer to your question is you are doing market timing. You are changing your AA from 70/30 to 80/20 because we are in a bull market. There is nothing in your life circumstances that justify changing your AA to a higher risk. In a normal aka none market timing move, the AA should glide...
by KlangFool
Mon Mar 20, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2517

Re: Long term unemployment planning

OP, I do not know how many times that I have to remind you. But, here I go again. You only have one portfolio. If your portfolio is big enough, you can handle anything. A) So, it is okay for you sell your stock in your taxable account if you buy it back with your bond at your 401K and/or Roth IRA ac...
by KlangFool
Mon Mar 20, 2017 12:49 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6482

Re: It's worth remembering that bull markets don't last forever

knpstr, Why 100% stock or 100% bond is the only choice? 60/40 or 70/30 will work out fine under any circumstances. KlangFool Clearly, it's not the only choice. But we have to ask ourselves, why are we saving money in these accounts we can't easily get to? Is it our retirement fund? Or is it our une...
by KlangFool
Mon Mar 20, 2017 12:16 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6482

Re: It's worth remembering that bull markets don't last forever

Folks, It is very simple. 1) Balance is the key. Take a number between 72/25 to 25/75, then, you do not have to think and care about whether the bull market will last. 2) Use a balanced fund like Wellington / Wellesley / Balanced fund / lifestrategy fund as your core holding, then, you do not have t...
by KlangFool
Mon Mar 20, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6482

Re: It's worth remembering that bull markets don't last forever

.. For 100/0 and being unemployed, the 200K only last 3 years and 4 months. For every year, the person will have to sell 60K worth of stock and locked in 60K worth of loss. For 70/30 and being unemployed, the 260K last 4 years and 4 months. With 400K, the person could sell up to 120K worth of bond ...
by KlangFool
Mon Mar 20, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6482

Re: It's worth remembering that bull markets don't last forever

.. For 100/0 and being unemployed, the 200K only last 3 years and 4 months. For every year, the person will have to sell 60K worth of stock and locked in 60K worth of loss. For 70/30 and being unemployed, the 260K last 4 years and 4 months. With 400K, the person could sell up to 120K worth of bond ...
by KlangFool
Mon Mar 20, 2017 11:22 am
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6482

Re: It's worth remembering that bull markets don't last forever

How much AA did you settle on? I am in mid thirties too and thinking if 70/30 is too conservative. I decided to go 100% stocks and this has been my AA since since age 30 in 2012. I see bonds as hindering my long term performance and I have no room for them in my tax sheltered accounts. It's all abo...
by KlangFool
Mon Mar 20, 2017 7:24 am
Forum: Investing - Help with Personal Investments
Topic: New Boglehead, Kids's College, & Emergency Fund Transfer
Replies: 25
Views: 1052

Re: New Boglehead, Kids's College, & Emergency Fund Transfer

It's a mistake to use the ROTH, what is most important at OP's stage is to maximize cash flow and to understand that they will have little to zero tax liability at retirement if they use the Traditional IRA. The only advantage the ROTH provides is the ability to tap into the principal contributions...
by KlangFool
Sat Mar 18, 2017 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Another Rent vs. Buy Thread... (General, Not Specifics)
Replies: 4
Views: 477

Re: Another Rent vs. Buy Thread... (General, Not Specifics)

How would early retirement weigh on this? It seems to me like owning a home in retirement is a smart idea since as your income level decreases, so does your baseline living costs (i.e., no mortgage / rent). dudelove22, Most of my "House Poor" peers cannot afford to retire. Much less early...
by KlangFool
Sat Mar 18, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: How to think about the really long view to take
Replies: 5
Views: 461

Re: How to think about the really long view to take

I was reading a thread on here about what to do with your investments in case of a war. Not terribly conclusive other than diversify and hope it doesn't happen. But that got me to thinking; I plan to retire in the next 5-10 years and I plan to live for 50 or so years beyond that (99 is my target ;)...
by KlangFool
Fri Mar 17, 2017 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Endless Job Interviews (with same company)
Replies: 58
Views: 5469

Re: Endless Job Interviews (with same company)

How many of the four were face to face? If some of them were phone interviews, then it might not be too terrible. In general, I would say that a repeat face to face interview with the same people indicates a hiring manager that is indecisive. They might have two finalists that are close, but they s...
by KlangFool
Fri Mar 17, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Endless Job Interviews (with same company)
Replies: 58
Views: 5469

Re: Endless Job Interviews (with same company)

OP, 1) I was hired by one of the largest company in the world after 2 rounds of phone interviews by 2 individuals (peer and hiring manager). The offer was given in less than 2 weeks. 2) Meanwhile, I had 2 rounds of face-to-face interviews with several persons with a smaller megacorp across 3 months....
by KlangFool
Fri Mar 17, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Endless Job Interviews (with same company)
Replies: 58
Views: 5469

Re: Endless Job Interviews (with same company)

OP, From my extensive experience of job hunting and interviews across many years (both as candidates and hiring manager), it does not take long to decide whether you want to hire someone. Long and repeated interviews do not work out. The only one time that it works out is the employer explicitly say...
by KlangFool
Fri Mar 17, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Endless Job Interviews (with same company)
Replies: 58
Views: 5469

Re: Endless Job Interviews (with same company)

OP,

Just say no. Ask the recruiter why new interviews are necessary. If you say yes, it means that you are a pushover and nowhere else to go.

KlangFool
by KlangFool
Thu Mar 16, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: How do you cope with regret over selling too soon?
Replies: 57
Views: 3091

Re: How do you cope with regret over selling too soon?

OP, I have some "play money" for gambling on the individual stock. My trading rule is that when it triples, I sell half. In that case, even if the remaining 50% goes to zero, I still make 50%. If you have this trading rule, why would you have any regrets? So, what is your trading rule? Kla...
by KlangFool
Thu Mar 16, 2017 9:10 am
Forum: Investing - Help with Personal Investments
Topic: 401(k) Traditional vs Roth
Replies: 26
Views: 1537

Re: 401(k) Traditional vs Roth

OP,

Contribute to Trad. 401K in order to get the tax savings. Put the tax savings into the Roth IRA. So, the answer is Trad. 401K and Roth IRA.

KlangFool
by KlangFool
Thu Mar 16, 2017 7:46 am
Forum: Personal Consumer Issues
Topic: Costco tire - Michelin vs Bridgestone
Replies: 20
Views: 1953

Re: Costco tire - Michelin vs Bridgestone

One set was run flat, which Costco doesn't do. This alone is not a good reason to avoid a vendor. Run flats are rubbish. I binned mine within 3 months of buying my current car, and will never go back. I'll do the same if I ever get another car that comes with them, though I'll do my damndest to avo...
by KlangFool
Wed Mar 15, 2017 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Payoff vs Taxable
Replies: 23
Views: 903

Re: Mortgage Payoff vs Taxable

aristotelian, Just pay off the mortgage. KlangFool I can't decide. That's how I was leaning last night. I am not used to making financial decision with that many zeroes. I definitely have a better understanding of the choices, just need to talk it over with the wife and decide. aristotelian, You to...
by KlangFool
Wed Mar 15, 2017 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Payoff vs Taxable
Replies: 23
Views: 903

Re: Mortgage Payoff vs Taxable

I think they meant market timing to say, selling at a high to pay off the mortgage worrying about an upcoming crash. Not the move from taxable to 403b. orca91, OP need to calculate the amount of tax that he has to pay before he proceeds. KlangFool Yes, I am past funding the 403b. I will definitely ...
by KlangFool
Wed Mar 15, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Payoff vs Taxable
Replies: 23
Views: 903

Re: Mortgage Payoff vs Taxable

orca91 wrote:I think they meant market timing to say, selling at a high to pay off the mortgage worrying about an upcoming crash. Not the move from taxable to 403b.


orca91,

OP need to calculate the amount of tax that he has to pay before he proceeds.

KlangFool
by KlangFool
Wed Mar 15, 2017 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Payoff vs Taxable
Replies: 23
Views: 903

Re: Mortgage Payoff vs Taxable

OP,

What market timing?

If you sell stock index in the taxable account and buy the same stock index at your 403B, you are not changing anything in term of the investment. You are just shifting money from one account to another.

KlangFool
by KlangFool
Wed Mar 15, 2017 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Payoff vs Taxable
Replies: 23
Views: 903

Re: Mortgage Payoff vs Taxable

aristotelian, <<I have always viewed it as a safety net. >> Putting it into 403B does not change that. If you are in long-term unemployment situation, it is probably worthwhile to pay 10% penalty to get the money out. In the worst case, you pay 10% penalty plus 15% income tax, it is the same as pay...

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