Search found 1823 matches

by aristotelian
Thu Jun 22, 2017 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: New Baby - Wife stay at home for 1 year?
Replies: 20
Views: 992

Re: New Baby - Wife stay at home for 1 year?

My wife gave up a job she loved and stayed home with the kids for a few months, then went back part time and has been part time for the last 10 years. She never found a job that she liked and is currently in a mid-life crisis. We have been OK on one income but I would feel a lot better if she had a ...
by aristotelian
Thu Jun 22, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Investment path for home (cha-ching)
Replies: 3
Views: 300

Re: Investment path for home (cha-ching)

You are saving $1K per month. You have 60 months to save for your goal. That equates to $60K. That should be enough for a downpayment on a $300K house. Is that enough? A savings account would be the only way to guarantee that you do not lose principal. That might make you $1500 over that period of t...
by aristotelian
Thu Jun 22, 2017 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement
Replies: 21
Views: 3012

Re: Early retirement

If your time horizon is 10 years, you are taking a major gamble at 80/20 allocation, especially if you plan to maintain that allocation all the way into retirement. If you are trying to reap stock market gains, I hope you have the flexibility in your plan to keep working in case of a stock crash whe...
by aristotelian
Thu Jun 22, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Is VG Total Stock Market Index too concentrated?
Replies: 35
Views: 1546

Re: Is VG Total Stock Market Index too concentrated?

I've thought about this too after looking at the index: http://www.crsp.com/products/investment-products/crsp-us-total-market-index Would you be surprised if I told you the following? (which is true) Top 10 holdings = 15% weight (0.3% of # of stocks in the index) Top 22 holdings = 25% weight (0.6% ...
by aristotelian
Thu Jun 22, 2017 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Is VG Total Stock Market Index too concentrated?
Replies: 35
Views: 1546

Re: Is VG Total Stock Market Index too concentrated?

I would say that the cap weighted index is by definition perfectly diversified. Any other weighting would represent a bet that someone could out perform the market by identifying stocks that will do better or worse. This is a losing proposition. By sticking with amrket weights you get the consensus...
by aristotelian
Thu Jun 22, 2017 7:38 am
Forum: Investing - Help with Personal Investments
Topic: Do Indexers Need 401(k) Plans?
Replies: 14
Views: 1350

Re: Do Indexers Need 401(k) Plans?

livesoft wrote:
aristotelian wrote:For example, if you have $20K in SS, $17,950 of your 401K withdrawal would be taxed at 15%, and up to $91,950 would be taxed at 25%.

How much of the 401(k) withdrawal would not be taxed (i.e. taxed at 0%) in your example?


I think it would depend on your deductions.
by aristotelian
Thu Jun 22, 2017 7:19 am
Forum: Investing - Help with Personal Investments
Topic: Do Indexers Need 401(k) Plans?
Replies: 14
Views: 1350

Re: Do Indexers Need 401(k) Plans?

If there is any chance you will be in the 25% bracket in retirement, you are going to save 3% on unmatched contributions. Also, dollars you are putting into a 401k would be taxed at your marginal rate of 28%. Even if you are in the same bracket in retirement, some of your 401k dollars would be taxed...
by aristotelian
Wed Jun 21, 2017 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Best Practices for Managing Paper Receipts
Replies: 16
Views: 1122

Re: Best Practices for Managing Paper Receipts

I scan receipts from the doctor's office for HSA reimbursable expenses, day care invoices, and charitable donation acknowledgments. No paper. Can't think of anything else.
by aristotelian
Wed Jun 21, 2017 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Windfall inheritance and new home
Replies: 20
Views: 1535

Re: Windfall inheritance and new home

You could buy five $900K houses.
by aristotelian
Wed Jun 21, 2017 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Need help deciding fund to choose for 401k
Replies: 13
Views: 437

Re: Need help deciding fund to choose for 401k

+1, S&P in the 401K, bonds and international in Roth or taxable.

I would pay off the car loan before growing the emergency fund.
by aristotelian
Wed Jun 21, 2017 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Co-workers advising to buy house RIGHT NOW
Replies: 59
Views: 4781

Re: Co-workers advising to buy house RIGHT NOW

Do you have a financial plan that works for you without buying a house? That is all you need to worry about. Many people in high cost areas buy because otherwise they don't have the discipline to save. Their house becomes their investment portfolio. That is a risky financial plan.
by aristotelian
Wed Jun 21, 2017 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Royalties &/or Residuals: Invest?
Replies: 6
Views: 498

Re: Royalties &/or Residuals: Invest?

Just add to your portfolio, according to your allocation. Make sure to set aside enough to pay taxes on the extra income. You could look into starting a Donor Advised Fund but with $500K of net worth and a career change I would not give it all away. I would prefer to work for a real estate investor ...
by aristotelian
Tue Jun 20, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Planning Around Partner's Student Loans
Replies: 30
Views: 1990

Re: Planning Around Partner's Student Loans

Just saying, getting married and refinancing the loan would probably have a more favorable financial outcome for the two of you than this scheme to game the IBR program while leaving your partner destitute on paper. You're not using the IBR thing as a financial incentive to stay unmarried, are you?
by aristotelian
Tue Jun 20, 2017 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Liability with dogs, hypothetical
Replies: 65
Views: 2487

Re: Liability with dogs, hypothetical

We had a relevant incident with our pit mix. A neighbor was on our property after asking permission to join our yardsale. His kid entered our house without permission and came out crying claiming our dog bit him. No witnesses, no history of aggression but there was a small scrape. The father threat...
by aristotelian
Tue Jun 20, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Do you think other investment firms are better for taxable investments?
Replies: 15
Views: 892

Re: Do you think other investment firms are better for taxable investments?

Schwab has a new feature that allows you to check a box to have them do SpecID when selling shares and automatically select the shares with the most losses/least gains. I haven't seen that feature elsewhere and gives a way to do automatic tax loss harvesting for free rather than pay for the "i...
by aristotelian
Tue Jun 20, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Liability with dogs, hypothetical
Replies: 65
Views: 2487

Re: Liability with dogs, hypothetical

We had a relevant incident with our pit mix. A neighbor was on our property after asking permission to join our yardsale. His kid entered our house without permission and came out crying claiming our dog bit him. No witnesses, no history of aggression but there was a small scrape. The father threate...
by aristotelian
Tue Jun 20, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Do you think other investment firms are better for taxable investments?
Replies: 15
Views: 892

Re: Do you think other investment firms are better for taxable investments?

Schwab has a new feature that allows you to check a box to have them do SpecID when selling shares and automatically select the shares with the most losses/least gains. I haven't seen that feature elsewhere and gives a way to do automatic tax loss harvesting for free rather than pay for the "in...
by aristotelian
Tue Jun 20, 2017 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Beneficiary IRA Rollover without deceased's SSN
Replies: 9
Views: 575

Re: Beneficiary IRA Rollover without deceased's SSN

Most custodians do not require the SSN of the deceased. Why do they even need that? The only thing I can think of is that they can lookup the person's date of birth to see if they were age 70.5 or over when they died and to ask if the RMD was already taken. If you still want to find the SSN of a de...
by aristotelian
Tue Jun 20, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Allocation of bond funds in taxable account
Replies: 7
Views: 682

Re: Allocation of bond funds in taxable account

Suppose this is not a real scenario, but just a comparison between the two funds and these are the only only two funds available to you. Is BSV just enough as it also contains some corporate bonds. Gun to my head, I would go for the higher yield of VCSH. I have it as my short term bond fund/backup ...
by aristotelian
Tue Jun 20, 2017 7:58 am
Forum: Investing - Help with Personal Investments
Topic: CD Ladder?
Replies: 11
Views: 1021

Re: CD Ladder?

10 years is such a long time horizon. I would recommend an intermediate bond fund rather than a series of 5 year CD's. I would be shocked if there is any 10 year period in history where Total Bond Market did not return more than 2.30%. Muni bonds would also be a possibility if you are in a high tax ...
by aristotelian
Tue Jun 20, 2017 6:04 am
Forum: Personal Finance (Not Investing)
Topic: Credit card for expat
Replies: 20
Views: 1016

Re: Credit card for expat

Another +1 for CapOne Quicksilver. 1.5% cash back, no foreign transaction charges. They may not like it if you are living overseas indefinitely but should be good for travel and your new country at least long enough to get you set up with a local bank.
by aristotelian
Mon Jun 19, 2017 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Church windfall - conservative investment options?
Replies: 22
Views: 1430

Re: Church windfall - conservative investment options?

One possible use of the money would be to take care of deferred maintenance in the church building and what is left over prudently set aside for future maintenance. I get uncomfortable with churches or small non-profits amassing large sums of money except such things as capital projects. You want t...
by aristotelian
Mon Jun 19, 2017 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Storing funds for a house
Replies: 10
Views: 1013

Re: Storing funds for a house

I would suggest I-Bonds, CD, or Vanguard Short Term Corporate ETF (VCSH).
by aristotelian
Mon Jun 19, 2017 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Planning Around Partner's Student Loans
Replies: 30
Views: 1990

Re: Planning Around Partner's Student Loans

I really think it is criminal for universities to offer expensive programs in fields where the graduates have no hope of repaying the loans, even in a best case scenario. But, your partner made her choice as a free agent. I don't understand why you are worrying about a hypothetical tax on a non-exis...
by aristotelian
Mon Jun 19, 2017 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Which fund for Solo 401K
Replies: 15
Views: 741

Re: Which fund for Solo 401K

Yes, you may absolutely own the same fund in your 401k as your Roth, as long as it is internally diversified and low expense and you have sufficient diversification in the rest of your portfolio.
by aristotelian
Mon Jun 19, 2017 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Church windfall - conservative investment options?
Replies: 22
Views: 1430

Re: Church windfall - conservative investment options?

Keep in mind that market risk is only one kind of risk. Bonds are largely immune to market risk. However, there is also inflation risk and especially interest rate risk. If you have a 30 year bond returning 2%, interest rates increase, and the same bond now returns 3%, you are stuck holding a worthl...
by aristotelian
Mon Jun 19, 2017 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: 19 y/o Windfall Questions
Replies: 25
Views: 2838

Re: 19 y/o Windfall Questions

Probably the best thing you could do for her is take $20 of the $45K and buy the Bogleheads Guide, then let her decide how to invest it.
by aristotelian
Mon Jun 19, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation of bond funds in taxable account
Replies: 7
Views: 682

Re: Allocation of bond funds in taxable account

100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio. No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options. In that case, I would want more details as to the rest of your portfolio and your goals in choosing between these two. Exclus...
by aristotelian
Mon Jun 19, 2017 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Exempt Bond Funds Questions
Replies: 8
Views: 760

Re: Tax Exempt Bond Funds Questions

Thanks for these responses. A follow up question: For purposes of long-term investing (i.e., a time horizon of twenty+ years), does it make any real difference whether the municipal bond fund chosen focuses on short-term, intermediate term, or long-term bonds? I realize there's more fluctuation pot...
by aristotelian
Mon Jun 19, 2017 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Need to find Loaded Index Funds
Replies: 64
Views: 3359

Re: Need to find Loaded Index Funds

Due to the new Fiduciary Rule, my firm no longer allows me to invest in no load funds, The contorted logic which would have to go into that sort of reading of the fiduciary rule is literally beyond my comprehension. "Because loaded funds are now legally required to be in the clients' interest,...
by aristotelian
Mon Jun 19, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Saving for investment property...muni bonds vs. ETF's?
Replies: 22
Views: 795

Re: Saving for investment property...muni bonds vs. ETF's?

^You did not answer the question. The question is, what is your marginal tax rate? That is, how much will you be taxed on any additional dollars above your current income? That is what you need to know to determine the tax hit of a new investment or the value of an additional deduction. Your overall...
by aristotelian
Mon Jun 19, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: 19 y/o Windfall Questions
Replies: 25
Views: 2838

Re: 19 y/o Windfall Questions

Does she plan to attend college?
by aristotelian
Mon Jun 19, 2017 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement checkup for 38 year old
Replies: 21
Views: 2924

Re: Early retirement checkup for 38 year old

I like your situation a lot better if you can last the 5 years. With only your wife's SS, the pension number does not look as good. 5 years would max the pension plus give you another 5x $52,000 annual savings. You mention your wife's job, so just to confirm is she planning to work until full retire...
by aristotelian
Mon Jun 19, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Allocation of bond funds in taxable account
Replies: 7
Views: 682

Re: Allocation of bond funds in taxable account

100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
by aristotelian
Mon Jun 19, 2017 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Should I "Consolidate your accounts" in Vanguard?
Replies: 4
Views: 834

Re: Should I "Consolidate your accounts" in Vanguard?

If you want to stay with Vanguard, you should probably do it as they will keep pressuring you to do so. We did it and no negative consequences so far.
by aristotelian
Mon Jun 19, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: AA with a pension
Replies: 15
Views: 1568

Re: AA with a pension

Absolutely, you need to consider pension and SS to determine allocation and withdrawal plan. However, what you decide to do may vary according to the individual. Some may see the pension as taking the place of bonds, allowing them to be more aggressive. Some may see the pension as reducing the need ...
by aristotelian
Mon Jun 19, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Placement of TIAA Traditional and S&P 500
Replies: 7
Views: 499

Re: Placement of TIAA Traditional and S&P 500

If you like TIAA Traditional @ 3%, I would say yes, it would be more tax efficient to have fixed income in the 403b with all of the S&P in taxable. What is your tax bracket? Another approach might be tax exempt muni bonds in your taxable account. Vanguard has good offerings that probably yield b...
by aristotelian
Sun Jun 18, 2017 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Inherited Assets, newly Semi-Retired
Replies: 12
Views: 961

Re: Asset Allocation - Inherited Assets, newly Semi-Retired

Please consider liquidating the JNJ stock. In 15% tax bracket you should liquidate as much as you can up to the limit of the tax bracket and you will pay no tax. Certainly once you have stopped working for a full year you will have a lot of room in the 15% bracket and I would use it all to liquidate...
by aristotelian
Sun Jun 18, 2017 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed to make short-term investments in Taxable accounts
Replies: 16
Views: 657

Re: Advice needed to make short-term investments in Taxable accounts

Hi, So if my bond allocation (100K) is substantailly lower than mortgage (400K), then what does it mean? Should I not buying the house yet? or do I need to move more money in bond allocation? Thanks. The negative bond concept is interesting. However, one difference is that the mortgage is offset by...
by aristotelian
Sun Jun 18, 2017 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed to make short-term investments in Taxable accounts
Replies: 16
Views: 657

Re: Advice needed to make short-term investments in Taxable accounts

I would consider a combination of short and intermediate term bond funds. If they go down, it is likely because interest rates are increasing in response to stock market gains. So in that scenario, you would sell stock to pay for your down payment. The odds of bond market and stock market both havin...
by aristotelian
Sun Jun 18, 2017 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?
Replies: 35
Views: 3778

Re: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?

Most companies in the S&P 500 increase their dividends over time (with the exception of companies that don't pay any dividend - like Berkshire). So just by holding the S&P 500 index - you will most likely enjoy increasing dividends over the long run. The only down side to this approach - is...
by aristotelian
Sun Jun 18, 2017 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Why do we need an emergency fund?
Replies: 70
Views: 3958

Re: Why do we need an emergency fund?

To me, an emergency fund is for the purpose of replacing income in the event that we can't earn money for a period of time. For instance -- job loss or extended recovery from an injury or illness. And you don't want to have to sell stocks in that situation. So the point is to have a way to cover yo...
by aristotelian
Sun Jun 18, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Investments for Mother, windfall
Replies: 9
Views: 1287

Re: Investments for Mother, windfall

She is getting $5500 per month from pension, she will get more from SS soon, and does not want to manage her investments. I don't think a complex portfolio of savings, I Bonds, and CD ladder and index funds makes sense for her. In view of the tax bracket, I would put $100K in cash and the rest of th...
by aristotelian
Sun Jun 18, 2017 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for investment property...muni bonds vs. ETF's?
Replies: 22
Views: 795

Re: Saving for investment property...muni bonds vs. ETF's?

Fyi...Vanguard's Prime Money Market fund offers 1% interest right now. That would be a very safe way to get some return. Wouldn't the GS Savings at a rate of 1.2% be better? I do have a money market fund which basically gets fed all the dividends for one part of my portfolio. I'd actually prefer th...
by aristotelian
Sun Jun 18, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Increase stocks as part of a change in strategy
Replies: 9
Views: 450

Re: Increase stocks as part of a change in strategy

Your logic is absolutely right; but the numbers in question are substantial, and that really scares me. In 2008 I experienced the problem when I invested big right before the crush. Then don't fix what ain't broke. Why would you take risk if you have won the game and have no need to do so? If you a...
by aristotelian
Sun Jun 18, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Saving for investment property...muni bonds vs. ETF's?
Replies: 22
Views: 795

Re: Saving for investment property...muni bonds vs. ETF's?

You do not want to get in the business of buying and selling individual bonds. Muni bonds have very high minimums, and the market is not as transparent as the stock market. If you go with munis, you are better off buying a muni bond ETF or mutual fund such as VTEB or VWIUX. Because the fund is purch...
by aristotelian
Sun Jun 18, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Siblings in disagreement over mom's house.
Replies: 238
Views: 14798

Re: Siblings in disagreement over mom's house.

Letter signed by the three willing sellers stating 1.) Majority owners desire to sell 2.) Understand sentimental value but there are other concerns 3.) Remaining owners have 60 days to make an offer to majority or property goes on the market 4.) Proceeds to be split evenly assuming that everyone is...
by aristotelian
Sun Jun 18, 2017 10:35 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional Annuity - New 401a/403b option
Replies: 5
Views: 388

Re: TIAA Traditional Annuity - New 401a/403b option

I use it for a portion of my fixed income allocation. The problem is that the liquid versions that you could use for rebalancing have lower return. While stability is more important than return for my purposes, at only 3% (which is my guaranteed liquid rate), you are really giving up a lot of return...
by aristotelian
Sun Jun 18, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Why do we need an emergency fund?
Replies: 70
Views: 3958

Re: Why do we need an emergency fund?

1. If I got into a horrific car crash tomorrow, my wife would need some time to get up to speed to manage the portfolio. A few months cash would give her some cushion to worry about more important things. 2. I just like the convenience of liquid risk free cash to accommodate expenses that naturally...

Go to advanced search