Search found 4414 matches

by avalpert
Tue Mar 28, 2017 11:30 pm
Forum: Personal Consumer Issues
Topic: Get a 0% loan just to keep credit score high?
Replies: 10
Views: 291

Re: Get a 0% loan just to keep credit score high?

No, but it is worth getting a 0% on something you were going to buy (and could afford) anyway because it is free money.
by avalpert
Tue Mar 28, 2017 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: How to easily organize personal finances
Replies: 31
Views: 1756

Re: How to easily organize personal finances

I pay for everything with a cash-back credit card and then I pay that bill in full every month. The credit card company organizes everything for me on the bill. Livesoft, I like your approach. In reviewing my budget, I find that I too could pay for most expenses with a CC, with the following except...
by avalpert
Tue Mar 28, 2017 8:19 pm
Forum: Personal Consumer Issues
Topic: $50 AMEX Gift Card - What does a Boglehead/minimalist do?
Replies: 22
Views: 956

Re: $50 AMEX GIFT CARD - What does a Boglehead/minimalist do?

Don't be such a martyr and have a nice dinner out. If you need to insist you can't possibly appreciate good cooking, or a fine bottle of wine, or anything else then donate it to charity to help those who aren't choosing to suffer.
by avalpert
Tue Mar 28, 2017 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Daughter maxed out credit cards, needs help from me
Replies: 92
Views: 3702

Re: Daughter maxed out credit cards, needs help from me

No Credit cards period. Even for business have her use a debit card or cash only. Nothing says here she will not abuse business credit card. That isn't practical at all if she is travelling for work and has any sort of delay on reimbursement - having her float a few thousand dollars on airline tick...
by avalpert
Tue Mar 28, 2017 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Daughter maxed out credit cards, needs help from me
Replies: 92
Views: 3702

Re: Daughter maxed out credit cards, needs help from me

MY QUESTIONS: - How should I structure the loan? Pay back (workout) will be based upon her budget, of course. - Should the loan be a formal promissory note or an informal written agreement? - I am not much concerned about the actual pay back of the loan as I hope to use it as leverage for her educa...
by avalpert
Tue Mar 28, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Best business checking and credit card for sole proprietorship
Replies: 13
Views: 465

Re: Best business checking and credit card for sole proprietorship

Maryland, but when I use a Texas zip code it still shows me the unlimited checking account. That's just weird. The Unlimited checking account is $35/m, waived with an average balance of $25000 or more. I'm listing the costs for the Basic account. Either you're seeing something like "No fee for...
by avalpert
Tue Mar 28, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Best business checking and credit card for sole proprietorship
Replies: 13
Views: 465

Re: Best business checking and credit card for sole proprietorship

Really? What do you get at this link: https://www.capitalone.com/small-business-bank/ When I then click on to checking accounts, I get this, exactly as I said https://www.capitalone.com/small-business-bank/checking-accounts/ Monthly Service Fee: $15 monthly service fee $15 monthly fee waived: with ...
by avalpert
Tue Mar 28, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Best business checking and credit card for sole proprietorship
Replies: 13
Views: 465

Re: Best business checking and credit card for sole proprietorship

Capital One Spark Business Checking account is now free with no minimum. You can also connect it to a Business Savings account with a 1% yield to reduce the impact of cash drag. Thanks. Maybe it is in your state? For Texas it's still listed as $2000 average balance to avoid the fee, unless you take...
by avalpert
Tue Mar 28, 2017 11:05 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

Yes, it is a bridge too far and this is why: 1. When I make the decision between Traditional and Roth contributions this year I don't need to make an assumption about my tax rate in 30 years - I just need to make an assumption about my tax rate in the near future. That is, as long as I don't think ...
by avalpert
Tue Mar 28, 2017 10:51 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

I'm not sure I understand why having a lower marginal tax bracket would be a bad thing if returns are lower than expected - wouldn't that be better than having paid your higher marginal rate when you earned the income and putting it in the Roth? The alternative option is not to contribute to Roth i...
by avalpert
Tue Mar 28, 2017 10:20 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

All in all, it still makes more sense to me to manage taxes as an expense on the backside and to do asset allocation using actual values today. I think I see the problem. You are correct future taxes are an expense. But the tax on your tIRA/401k is the future value of the tax you already owe. It is...
by avalpert
Tue Mar 28, 2017 10:15 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

Agreed, the wiki makes no argument for its assertion at all. The warning at the top should be taken seriously. And some of it doesn't make much sense - for example, what does this actually mean: f your traditional account has lower than expected returns and you fall into a lower tax bracket, the IR...
by avalpert
Tue Mar 28, 2017 9:58 am
Forum: Investing - Theory, News & General
Topic: Prioritizing Investments (Backdoor Roth vs Employee Contribution to 401k)
Replies: 2
Views: 136

Re: Prioritizing Investments (Backdoor Roth vs Employee Contribution to 401k)

If you are ineligible for Roth contributions your tax rate is likely high enough to make prioritizing pre-tax options (like the 401k) over after-tax options (like a backdoor Roth) the right answer.
by avalpert
Tue Mar 28, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Best business checking and credit card for sole proprietorship
Replies: 13
Views: 465

Re: Best business checking and credit card for sole proprietorship

Capital One Spark Business Checking account is now free with no minimum. You can also connect it to a Business Savings account with a 1% yield to reduce the impact of cash drag. For credit card, it depends on what your expenses are and other goals. Chase's Ink cards give you 5% on many things (like ...
by avalpert
Tue Mar 28, 2017 9:38 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

Thanks to the Lieutenant in a concurrent thread https://www.bogleheads.org/forum/viewtopic.php?f=10&t=214868 some very good ideas on this subject are brought into the sunshine. From EHEngineer: "Have a look at the wiki article." https://www.bogleheads.org/wiki/Tax-adjusted_asset_alloc...
by avalpert
Tue Mar 28, 2017 9:22 am
Forum: Investing - Theory, News & General
Topic: Why are international and US stocks down today?
Replies: 53
Views: 2981

Re: Why are international and US stocks down today?

I think there are long-term benefits to the population at large from corporate tax cuts. It is not just a "short-sighted measure to boost stock prices". I have filled out the Megacorp spreadsheet for evaluating capital projects for a go/no-go decision. The corporate tax rate is an input. ...
by avalpert
Tue Mar 28, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: Are passive funds dependent on active funds?
Replies: 24
Views: 1234

Re: Are passive funds dependent on active funds?

What if the VFINX holds enough stock in top 10 S&P 500 companies where their voting rights can impact the decisions that a company would make? In that case, would the investors trust passive manager to make sound choices? This is, in my opinion, the only serious argument against indexing. I'm n...
by avalpert
Mon Mar 27, 2017 8:57 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 30
Views: 4500

Re: Illusion of poverty/wealth

It also comes down to probability and margins of safety. Past performance is not a guarantee of future results and future cash flow is merely a prediction. The one more year syndrome is the result of the "what if" and "margin of safety" factors coming into play. These fall into ...
by avalpert
Mon Mar 27, 2017 8:29 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

But of course I made no such agreement to defer my taxes on those wages ... You signed some kind of agreement when you opened account. That agreement allowed you defer taxes on the amount of the wages that you put into that account. No, I didn't. I did enter an agreement with the brokerage (in my c...
by avalpert
Mon Mar 27, 2017 3:28 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

But you don't have a contract with the Federal Government ... Yes you do have a "contract". When you put your pre-tax money from wages into that tIRA there was an agreement between you and the government that you could defer the tax on those wages until some time in the future that you de...
by avalpert
Mon Mar 27, 2017 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Custodial ROTH a good idea?
Replies: 6
Views: 458

Re: Custodial ROTH a good idea?

What do they think of putting them in a ROTH. If your kids are old enough to be working as salaried employees I think they are old enough to determine how the money is used (at least have a say in it).
by avalpert
Mon Mar 27, 2017 11:00 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

"Some of the money is not yours." a) If I have a $30,000 car and I owe the bank $20,000 I only get $10,000 to spend if I sell it. b) If I have a $400,000 and I owe the mortgage company $300,000 I only get $100,000 to spend if I sell it. Yet you still fully own the car and the house - they...
by avalpert
Mon Mar 27, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Any tax deductions from vacant second home?
Replies: 16
Views: 740

Re: Any tax deductions from vacant second home?

knightrider wrote:
jebmke wrote: Some expenses related to the sale can be used to reduce sales price for the purpose of calculating the gain/(loss).


Would my condo fee and utility bills fall under these expenses?

No, costs associated with fixing it up, presenting and marketing it would.
by avalpert
Mon Mar 27, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Any tax deductions from vacant second home?
Replies: 16
Views: 740

Re: Any tax deductions from vacant second home?

No, you can't claim a property you are not trying to rent is a rental - that is called fraud. Well I do want to rent it but the condo rules don't allow it. Wanting and trying aren't synonyms. I want to be a sports agent, that doesn't mean I can deduct my season tickets as business development costs...
by avalpert
Mon Mar 27, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Weathering sell-off days like today
Replies: 106
Views: 5578

Re: Weathering sell-off days like today

Buy more today and then you're getting on sale :D This is the reality. For the last 3 months the market has basically only gone up. Don't get spooked by a 3 or 4 day downturn after that. No, they aren't on sale. The market has been flat to down over the last month - it has not basically only gone u...
by avalpert
Mon Mar 27, 2017 9:57 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 62
Views: 3934

Re: Justification for Adding REITs

Or you could underperform the market... as Vanguard's REIT index has it's total market fund since January 1st 2013... You aren't going to get rich simply reinvesting dividends into a REIT, sorry but people shouldn't have the wrong expectations. I disagree about the rich part if you hold them for a ...
by avalpert
Mon Mar 27, 2017 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Any tax deductions from vacant second home?
Replies: 16
Views: 740

Re: Any tax deductions from vacant second home?

No, you can't claim a property you are not trying to rent is a rental - that is called fraud. Well I do want to rent it but the condo rules don't allow it. Wanting and trying aren't synonyms. I want to be a sports agent, that doesn't mean I can deduct my season tickets as business development costs.
by avalpert
Mon Mar 27, 2017 9:45 am
Forum: Investing - Theory, News & General
Topic: Why are international and US stocks down today?
Replies: 53
Views: 2981

Re: Why are international and US stocks down today?

I'm chuckling because to understand why markets dropped today, one has to understand why they even went up in the past month or two. The removal of the reasons for stocks to have gone up is the reason for them to go down. And a couple more things: Stocks go up only on good news. Otherwise they tend...
by avalpert
Mon Mar 27, 2017 9:42 am
Forum: Investing - Theory, News & General
Topic: Why are international and US stocks down today?
Replies: 53
Views: 2981

Re: Why are international and US stocks down today?

This is an interesting analogy. Thanks for sharing it. I wonder what the point then is to the financial news making up narratives to try and "explain" things (I notice so often are the headlines something like "stocks are down/up as such and such happen"). Seems a waste of time ...
by avalpert
Mon Mar 27, 2017 9:30 am
Forum: Investing - Theory, News & General
Topic: Why are international and US stocks down today?
Replies: 53
Views: 2981

Re: Why are international and US stocks down today?

I'm chuckling because to understand why markets dropped today, one has to understand why they even went up in the past month or two. The removal of the reasons for stocks to have gone up is the reason for them to go down. And a couple more things: Stocks go up only on good news. Otherwise they tend...
by avalpert
Mon Mar 27, 2017 9:25 am
Forum: Investing - Theory, News & General
Topic: Why are international and US stocks down today?
Replies: 53
Views: 2981

Re: Why are international and US stocks down today?

I'm trying to understand better why markets behave the way they do, even if this is just noise. And why is what happened even considered "bad news?" Trying to understand the movement of a single stock is like understanding the behavior of a toddler. You can often spin a narrative that exp...
by avalpert
Sun Mar 26, 2017 8:56 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

... The people who say 'that money is not yours ' are just wrong. All the money in the IRA is yours, none of it belongs to the government at this point in time. You may have a tax liability when you withdraw it but having a potential future tax liability doesn't make it the government's assets. It'...
by avalpert
Sun Mar 26, 2017 8:46 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

Not only is more complexity to try to adjust different holdings based on projected future tax liabilities it is false precision and, I believe, misguided when used to adjust your perceived risk exposure through your portfolio allocation. Some of the complexities that I haven't seen addressed here i...
by avalpert
Sun Mar 26, 2017 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Any tax deductions from vacant second home?
Replies: 16
Views: 740

Re: Any tax deductions from vacant second home?

No, you can't claim a property you are not trying to rent is a rental - that is called fraud.
by avalpert
Sun Mar 26, 2017 8:05 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 71
Views: 2248

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

I don't. I treat taxes as an expense in retirement to be managed at the time. Not only is more complexity to try to adjust different holdings based on projected future tax liabilities it is false precision and, I believe, misguided when used to adjust your perceived risk exposure through your portfo...
by avalpert
Sun Mar 26, 2017 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating cost of retirement
Replies: 15
Views: 1799

Re: Calculating cost of retirement

Firecalc is pretty good for that. About 1.3 M with 96% chance of not running out. That doesn't seem right - with $1.3 m today they should be able to start withdrawing now and have that high a success rate (a 4% withdrawal rate would give them over $50k a year). Firecalc assumes the 50k/yr goes up w...
by avalpert
Sun Mar 26, 2017 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating cost of retirement
Replies: 15
Views: 1799

Re: Calculating cost of retirement

Your answer is completely dependent on assumed real rate of return and any reasonable estimate range will vary by too much to be useful. As a floor, the current real yield on TIPS maturing in 25 years is ~.85%. So you would need about $1,020,000 in those TIPS to have the equivalent of $1.25 million ...
by avalpert
Sun Mar 26, 2017 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating cost of retirement
Replies: 15
Views: 1799

Re: Calculating cost of retirement

hicabob wrote:Firecalc is pretty good for that. About 1.3 M with 96% chance of not running out.

That doesn't seem right - with $1.3 m today they should be able to start withdrawing now and have that high a success rate (a 4% withdrawal rate would give them over $50k a year).
by avalpert
Sun Mar 26, 2017 10:29 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 62
Views: 3934

Re: Justification for Adding REITs

Or you could underperform the market... as Vanguard's REIT index has it's total market fund since January 1st 2013... You aren't going to get rich simply reinvesting dividends into a REIT, sorry but people shouldn't have the wrong expectations. I disagree about the rich part if you hold them for a ...
by avalpert
Sat Mar 25, 2017 8:10 pm
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 62
Views: 3934

Re: Justification for Adding REITs

I've held REITs since 2013. Keep reinvesting the dividends and you can get rich that way. I'm sharing with you how much I made from my REIT dividends alone: 2013: 2,889.37 2014: 3,574.62 2015: 4,331.91 2016: 5,769.42 2017: ? That's 4 years of reinvesting dividends. Imagine what they will look like ...
by avalpert
Sat Mar 25, 2017 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: How should I evaluate these Vanguard funds?
Replies: 14
Views: 1142

Re: How should I evaluate these Vanguard funds?

Evaluate them based on how well they fit into your overall portfolio plan - do you have an overall portfolio plan?
by avalpert
Sat Mar 25, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: CaIn We File 1040 MFS if We Didn't Receive Premium Tax Credit as MFJ?
Replies: 7
Views: 203

Re: CaIn We File 1040 MFS if We Didn't Receive Premium Tax Credit as MFJ?

No, unless one of you is abusing or abandoned the other you cannot file MFS and receive the ACA tax credits.
by avalpert
Sat Mar 25, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Do I have too much cash?
Replies: 10
Views: 1325

Re: Do I have too much cash?

I don't think so. Sure, you would have the chance to earn a bit more by taking on more risk - but the truth is $18k is a small number in terms of your lifetime earnings and portfolio and that little bit more won't matter much in the long run. On the other hand, you are in a an uncertain position and...
by avalpert
Sat Mar 25, 2017 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4992

Re: Are Bogleheads in the minority on the use of investment advisors?

...Practically anyone can manage their own investment portfolio, determine their risk tolerance and manage a 3 fund portfolio. It doesn't require a special skill set... Well, maybe. I have a limited sample size and don't go poking into other people's business too much. But I have a few instances of...
by avalpert
Sat Mar 25, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 62
Views: 3934

Re: Justification for Adding REITs

Of all the things not well-represented with a global all-cap portfolio, REITs would be dead last on my list to add a side-position in because of my already substantial long-term position in real estate via my home. It's BH mantra to pretend ones home isn't an investment or a real estate position bu...
by avalpert
Sat Mar 25, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4992

Re: Are Bogleheads in the minority on the use of investment advisors?

FWIW- best advice is to never decide to be 'ignorant' and rely totally on someone else for this type of advice and guidance. You need to know enough to at least understand the guidance you are getting and then check with at least a couple other sources for confirmation. It has been widely noted her...
by avalpert
Sat Mar 25, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4992

Re: Are Bogleheads in the minority on the use of investment advisors?

FWIW- best advice is to never decide to be 'ignorant' and rely totally on someone else for this type of advice and guidance. You need to know enough to at least understand the guidance you are getting and then check with at least a couple other sources for confirmation. It has been widely noted her...
by avalpert
Sat Mar 25, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Travel insurance
Replies: 7
Views: 467

Re: Travel insurance

For a 10 day trip - none. What are you really insuring and why is it a risk that you need to insure? Remember what insurance is really for - it is an expense, you expect to lose money, in exchange for insuring against risks that you cannot afford to absorb if they were to occur. If the trip is cance...
by avalpert
Sat Mar 25, 2017 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Too much Large Cap?
Replies: 15
Views: 925

Re: Too much Large Cap?

I have been putting of asking this question until I saw a recent post that touched on this. Am I hurting or helping myself with both? Not significantly but yes, it hurts your expected return by a bit. I can't see the downside. Too much Large Cap? Over-weighted to large and growth - the opposite sid...
by avalpert
Fri Mar 24, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Can a Sole Proprietor pre-pay health insurance premiums and deduct them?
Replies: 6
Views: 466

Re: Can a Sole Proprietor pre-pay health insurance premiums and deduct them?

Thanks, I think your IRS citation answered the question. Not quite that simple - there are exceptions to that rule and depending on the timing of your insurance contract it may very well fit in. See this write up for more explanation and then you should read the actual regulations and talk to a CPA...

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