Search found 21 matches

by av8r316
Fri Sep 22, 2017 12:05 am
Forum: Investing - Theory, News & General
Topic: What happens if... [trying to understand public debt in the age of fiat currency]
Replies: 6
Views: 750

Re: What happens if... [trying to understand public debt in the age of fiat currency]

In this scenario, where is the Fed getting the money to begin with? The treasury has to first 'borrow' the money before the bank/Fed can create it... so the debt owed by the treasury would go up by the amount the treasury is borrowing. :confused It’s actually the other way around. The Fed can liter...
by av8r316
Wed Sep 20, 2017 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Does bid-ask spread matter with automatic reinvestment?
Replies: 14
Views: 656

Re: Does bid-ask spread matter with automatic reinvestment?

If you reinvest dividends in a mutual fund, the fund has to purchase the underlying assets, and there will be a spread there, too. I don't think there's much of a difference. One you see very plainly, the other you don't. I may ignorant but aren't mutual funds ought and sold at a single price at en...
by av8r316
Mon Jul 24, 2017 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Giving Stocks as Gifts
Replies: 3
Views: 336

Re: Giving Stocks as Gifts

I have no experience with this site, but you may wish to take a look at stockpile.com. From what I can tell, you buy a gift card redeemable for whichever equity you select, and then the recipient creates an account and redeems the card for that equity. It appears that you can buy a generic card, or ...
by av8r316
Mon Jul 17, 2017 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: 529 for child - Gift?
Replies: 6
Views: 855

Re: 529 for child - Gift?

Thanks to all for your help. I think I have found the answer and that is I can rename the beneficiary from myself to my son without tax consequences or considering it a gift . Per 2016 IRS publication 970 "Changing the Designated Beneficiary There are no income tax consequences if the designated be...
by av8r316
Sun Jul 16, 2017 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: gaming the mortgage interest deduction
Replies: 18
Views: 2424

Re: gaming the mortgage interest deduction

In addition to shifting income from a lower generation to a higher generation, you'd also have a lower basis in your house for purposes of deductions or gains.
by av8r316
Fri Jun 16, 2017 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Illinois 529 plan - any risk
Replies: 3
Views: 575

Re: Illinois 529 plan - any risk

I'm also invested in the Bright Start 529 Savings Plan, and although I've had similar thoughts, my conclusion is that these assets are safe. Absent an unlikely change to the Illinois Constitution, I don't believe Illinois or a bankruptcy court (under future federal law and absent a change to the US ...
by av8r316
Mon Jun 12, 2017 9:23 pm
Forum: Investing - Theory, News & General
Topic: Where To Invest Cash for Children?
Replies: 6
Views: 939

Re: Where To Invest Cash for Children?

I do not think a 529 would work, because a 529 would typically be in your name (with child as beneficiary). I can't speak for every 529, but I do know that many do allow for a UTMA/UGMA owned account, in which the minor is the only permitted beneficiary. I imagine, but cannot say with certainty, th...
by av8r316
Sat Jun 03, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 3699

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

So even if you completely ignore the higher return you get by paying off the loan relative to a comparable risk-free rate, the penalty of losing the tax-free space for 30 years is relatively small--certainly an order of magnitude less than the exaggerated examples in some of the replies. Kevin I ag...
by av8r316
Sat Jun 03, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 3699

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

I've read that if you only have to delay funding the roth a year or two it's not much of a concern, so I was curious how much in actual numbers I would be missing out on if I delayed the Roth for one year to pay off my car. I'm trying to separate the emotional high of getting the car paid off vs st...
by av8r316
Sat Jun 03, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 3699

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

If you can do both, do both. Also know that you can withdraw your Roth IRA contributions (but not earnings) tax/penalty-free, so if doing both will deplete your cash reserves below your comfort level, you could make the contribution, leave it in a MMF or short-term bond fund, and take it back out if...
by av8r316
Sat Jun 03, 2017 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 3699

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

Given the choice, since IRA contributions are use-it-or-lose-it, I would personally make the (Roth) IRA contribution without even giving it much thought. At 4%, a $5,500 contribution today would be over $20,000 when you're 65. You can Google for various calculators to find tabular and graphical mode...
by av8r316
Wed May 17, 2017 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Need help about put option I sold!
Replies: 6
Views: 950

Re: Need help about put option I sold!

Will Tdameritrade ever convert that option into SPY, or must I cover that option and buy SPY? Assuming SPY stays under 239 through Friday, this will almost certainly be automatically exercised on Friday, but could be exercised anytime between now and expiration. Technically, a holder may choose not...
by av8r316
Tue May 16, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: Should I transfer my investment in real estate to stocks??
Replies: 19
Views: 1434

Re: Should I transfer my investment in real estate to stocks??

Why would you only be able to get 500k if it's worth 850k? I agree that it's weird - when I was talking to the rep of the firm, he was saying the the property value went up significantly, but for me to cash out, I would need to sell my share to the willing buyer who would probably pay ~400k. That s...
by av8r316
Tue May 02, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

I called Vanguard yesterday, and was told that a buy order for Vanguard Funds could be denominated in shares, but only as an additional purchase. Not seeing an option to buy additional "shares" in a Fund, I called back today, and after a brief hold, was told that the information I received...
by av8r316
Sun Apr 30, 2017 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

I think I know what you are trying to do and it would be nice to be able to say that $x were purchased on the DOB but if you told a little white lie and were off by a few dollars would any harm be done? I don't think the message you will be trying to send will be diminished. This is Bogleheads If I...
by av8r316
Sun Apr 30, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

Just for my own curiosity, because you say clearly that you don't want the ETF, why not? Why not buy VTI? I know it's splitting hairs, but I'd like the total return to be as accurate as possible, and I view the MF shares as a bit more pure (no spreads or premiums/discounts). If VTI doesn't go back ...
by av8r316
Sun Apr 30, 2017 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

One can gift an exact number of shares. So buy enough shares to cover the size of the gift and away you go. I'm holding it in my name for a future gift, and don't intend to make the actual gift for years. I could track a sub-balance of the total number of shares purchased (which would need to inclu...
by av8r316
Sun Apr 30, 2017 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

I am a little puzzled at what you want to do, and possibly your child would be, too. Do you have conversations about what shares cost with the person? What would it mean to the child? To me, a certain dollar amount would be more meaningful, but you may have a different context. I'm trying to backda...
by av8r316
Sat Apr 29, 2017 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

I know you can "sell" or "exchange from" specified number of shares but I don't see how you can do the "buy" unless you over-buy, then return the fractional part. But consider what you will do with the dividend or the capital gains the fund generates. After the first d...
by av8r316
Sat Apr 29, 2017 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: business owner/llc investing?
Replies: 1
Views: 263

Re: business owner/llc investing?

The answer to the first part of your question is yes. The answer to the second part of your question is maybe. If your LLC is taxed as a sole proprietor (Schedule C of your Form 1040), then you're likely already paying Medicare and Social Security on your earnings, regardless of whether or not they ...
by av8r316
Sat Apr 29, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 2851

Vanguard: Buy in Shares instead of Buy in Dollars?

I would like to buy a descendant the number of shares that could've been purchased on their date of birth for a given dollar amount (in a Vanguard Fund (Mutual Fund, not ETF) at Vanguard). It seems the best I can do online is place a dollar order for Monday using the closing price on Friday (using F...