Search found 2446 matches
- Wed Mar 13, 2024 10:27 am
- Forum: Personal Investments
- Topic: Tax loss harvesting and buying like funds
- Replies: 12
- Views: 896
Re: Tax loss harvesting and buying like funds
SPY is an S&P 500 ETF. Some people say any difference makes an investment not substantially identical, but I would avoid other S&P 500 investments like VOO. I think all but the most cautious tax loss harvester would be comfortable with VTI. ITOT is another good option. I'd even be fine tax loss harvesting between VTI and ITOT since even though they're both total US market funds they follow difference indexes. Everyone will have to decide for themselves, but I have not heard of anyone on this forum facing a TLH issue as long as the CUSIP is different. The IRS has come out with their own guidance as "not substantially identical" and they've left it at that. Your brokerage is only going to flag you for the same CUSIP. The IR...
- Wed Mar 13, 2024 9:57 am
- Forum: Personal Investments
- Topic: What Platforms are DIY Investors Using to Manage Portfolio
- Replies: 26
- Views: 2550
Re: What Platforms are DIY Investors Using to Manage Portfolio
For accounts where I can determine where they are to be housed, it's Fidelity, for the sole reason that they do partial ETF buys if you place orders through smartphone. Don't know if other brokerages have adopted this, I'm surprised most haven't stepped their game up. The only thing I'd say is a con is that they made me wait like 9 days for my upon depositing into my traditional and then backdoor-ing and it made a few bucks in sitting in MM which will cause me to have a taxable amount on my 8606.
I would imagine if you have legacy mutual funds with Vanguard in a taxable you probably have to house those with VG for when you transact.
I would imagine if you have legacy mutual funds with Vanguard in a taxable you probably have to house those with VG for when you transact.
- Fri Mar 08, 2024 3:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: What would you have done differently if you could go back and restart your financial journey?
- Replies: 68
- Views: 5603
Re: What would you have done differently if you could go back and restart your financial journey?
Never ever bought an individual stock. Had no idea at a young age that buying diversified mutual funds (at the time Indexed Mutual funds were rarely discussed outside of Malvern, PA I think?) and holding was how W2 people invest for their future/retirement. I actually thought people bought 10-20 companies and traded quarterly (I knew day trading was not good, but for some reason thought a few trades a year were the way, what is this called, swing trading?). After some schlackings, I then realized mutual funds were the way to go, loaded mutual funds that is. Was fine, they were American Funds. Discovered Index Investing while googling some things on American Funds. I also discovered Dave Ramsey radio show, and we all know he is well loved ar...
- Fri Mar 08, 2024 9:39 am
- Forum: Personal Finance (Not Investing)
- Topic: Primer on Paying Taxes With a Credit Card
- Replies: 871
- Views: 162168
Re: Primer on Paying Taxes With a Credit Card
While PayUSATax doesn't have their definition of "quarters" posted, one could reasonably assume that they match the other processors. The schedule is skewed to allow for slightly late payments to be made for a given quarter, and also allows for one opportunity to make four payments for the January 15 payment (one in the tax year and one in the following year). I have used all ten opportunities on one processor in a year with no issues in the past. Thank you. Presumably, with the number of payments you mention, you are using VGC or MCGC? I had one Vanilla VGC accepted by Pay1040 last evening for an estimated payment for 2024 no problem (did $497.49, $2.50 debit fee brought it to $499.99) however PayUSA claimed that the "zip c...
- Thu Mar 07, 2024 9:08 am
- Forum: Personal Finance (Not Investing)
- Topic: Primer on Paying Taxes With a Credit Card
- Replies: 871
- Views: 162168
Re: Primer on Paying Taxes With a Credit Card
I have only used Pay1040, but the link on the first page with fees appears to show that PayUSAtax as the cheapest at 1.82% for CC? Am I correct in that a Visa gift card from the grocery store would be eligible for the <$3 for the three websites? Anything noticeably different with PayUSA over Pay1040? For whatever reason, I haven't been able to login to Pay1040 so I have to check out as a guest which is annoying, so maybe it's time to move on to PayUSA anyhow. Thanks. I always used whichever one is cheapest in a given year. No issues. Thanks, Is PayUSATax on the same schedule as the Feds with the 2 payments per quarter maximum on 1040-ES payments? I recall Pay1040 had a different payment schedule than the Fed last year which I thought was o...
- Thu Mar 07, 2024 7:48 am
- Forum: Personal Finance (Not Investing)
- Topic: Primer on Paying Taxes With a Credit Card
- Replies: 871
- Views: 162168
Re: Primer on Paying Taxes With a Credit Card
I have only used Pay1040, but the link on the first page with fees appears to show that PayUSAtax as the cheapest at 1.82% for CC? Am I correct in that a Visa gift card from the grocery store would be eligible for the <$3 for the three websites? Anything noticeably different with PayUSA over Pay1040? For whatever reason, I haven't been able to login to Pay1040 so I have to check out as a guest which is annoying, so maybe it's time to move on to PayUSA anyhow. Thanks.
- Tue Mar 05, 2024 3:53 pm
- Forum: Personal Finance (Not Investing)
- Topic: Let go from Megacorp at 42....can I retire?
- Replies: 90
- Views: 22239
Re: Let go from Megacorp at 42....can I retire?
Get a therapist and get your mind right, it's probably all over the place now. Think of your assets as "buying you time" right now to do anything you wish. I would guess the hours spent working and saving have been incredible. You should honestly be paid to teach a class at community college or similar getting that wealthy on a w2 at that age (unless I've misinterpreted some details?).
- Fri Mar 01, 2024 10:16 am
- Forum: Personal Consumer Issues
- Topic: Want to leave timeshare.
- Replies: 111
- Views: 12045
Re: Want to leave timeshare.
I'd say by the personal encounters I've had and the online articles that about 2-3% of time share owners are happy with their product, 2-3% are 50/50, and then the bottom 94-96% are pretty irate within 2-3 years of getting in one. That let's me know it's a very niche product to get a deal and you have to be someone who is very literate in the subject/contract and have the product meet their very specific needs to have any value. Of the 2-3% who claim to be happy, I'd wager that half of them are not financially literate enough to know they could have made an alternative purchase/plan for vacationing over the years that better meets their location/financial needs. DW had one before we met through Hilton that we gave back as soon as I read thr...
- Fri Feb 16, 2024 10:06 am
- Forum: Personal Investments
- Topic: Is it Too Late to Invest in VTI?
- Replies: 126
- Views: 19054
Re: Is it Too Late to Invest in VTI?
On an inflation adjusted basis, equities for the total stock market in the US are probably ever so slightly at an all time high from Jan 2022. I believe the S&P is up 12% (divs reinvested) through yesterday since Jan 2022 and inflation is running about 10-ish% cumulatively since Jan 2022, so it's neck and neck with Jan 2022 and today as the all time high. A great time to invest, we aren't at an all time high that's been running up for 1-5 years, we are at an all time high as of about 2-3 weeks and we probably teetered back below on 2/13 (on an inflation adjusted basis). OP, you likely won't feel any better about investing when the market tanks 35%, particularly when there's a global pandemic or whatever else is going on in the world. Yo...
- Fri Feb 16, 2024 9:49 am
- Forum: Personal Investments
- Topic: Can fees be this different?
- Replies: 13
- Views: 1071
Re: Can fees be this different?
The numbers are actually incorrect. The average annual fee is 1.4%. The average performance fee is also around 15% above the hurdle rate. So if the benchmark was the S&P 500 - as implied by the VOO comment - then you would only pay the fund 15% of the profits above the risk-adjusted return of the S&P 500. So much much less than you suggest. In your case it would be $0. I am a modest propionate of hedge funds. Most are not trying to beat the S&P 500. As such, you are trying to compare apples to oranges. On paper yes, but if you're not a part of the hedge fund management, what are the odds you will beat the hurdle enough on a risk adjusted basis inside the hedge fund with their fee structure to come out ahead? a 1.4% average annu...
- Thu Feb 15, 2024 10:25 am
- Forum: Personal Investments
- Topic: Backdoor Roth -- worth the hassle? (and a potentially dumb question about it)
- Replies: 25
- Views: 3248
Re: Backdoor Roth -- worth the hassle? (and a potentially dumb question about it)
Convert it all and pay tax on the $1. And check back in about 6 weeks to be sure that more interest didn't show up. If it did, convert it to Roth as well. Thank you both. I'm used to Merrill where you A) have to call in to convert Trad to Roth and B) they only require you to wait 2 days for the trad funds to settle before you can convert and they house the funds in a MM that probably gets 0.00001% interest so I had a whopping 8 cents over a few years in my trad from Backdoor Roth stuff and I was advised I can round down to $0 on my taxes. And I will have to remember to check back end of month I'm sure there will be more than 50 cents. ETA- Easy to do on Fido online(I think), I selected transfer (hoping that's the same nomenclature as "...
- Thu Feb 15, 2024 9:23 am
- Forum: Personal Investments
- Topic: Backdoor Roth -- worth the hassle? (and a potentially dumb question about it)
- Replies: 25
- Views: 3248
Re: Backdoor Roth -- worth the hassle? (and a potentially dumb question about it)
I also have a similar dumb question. I am using Fido now, and they required me to wait a week for Trad to Roth conversion, and it accumulated an amount above $1 as it was sitting in what I guess is a 5% high yield MM. Do I need to also convert this to the Roth as well now? What exactly is the work flow and implications on taxes as I definitely want to have $0 in trad accounts on Dec 31?
- Thu Feb 15, 2024 8:41 am
- Forum: Personal Consumer Issues
- Topic: Schwab website is Wonky?
- Replies: 11
- Views: 866
Re: Schwab website is Wonky?
yes, lot's of red x's today
- Tue Feb 13, 2024 1:28 pm
- Forum: Personal Investments
- Topic: Saving for Private School and College - 529/UTMA/Standard Acct balancing
- Replies: 53
- Views: 4071
Re: Saving for Private School and College - 529/UTMA/Standard Acct balancing
We are planning on starting private school at 5th grade (elementary runs from K-4 in our school zone), if we do it at all. Private college is definitely out of the question without some kind of massive scholarship I would say. The public high school is my primary concern, as I mentioned above it is in the bottom quartile of TN public high schools and TN, itself, is anywhere from 31-40th (depending on your source) in terms of strength of state public education. This is a fiscally conservative website, so take that to heart. I'd guess 80+% of BH's would say the #'s don't support what OP wants to hypothetically spend. Personal finance is much more personal than finance. Many on here won't say it, but the "off the court" issues are w...
- Mon Feb 12, 2024 7:50 am
- Forum: Personal Investments
- Topic: Ready to pull the plug - Advice on avoiding SORR
- Replies: 29
- Views: 2865
Re: Ready to pull the plug - Advice on avoiding SORR
I'd get to a three fund portfolio. I wouldn't worry about SORR (for an AA of TSM/Intl funds) as your desired burn ($150k) is still under 2%, however, I would get rid of the tech fund that's 15% of the portfolio. I'm not worried about the overall market and SORR with your numbers, that's the point of 2%, but I definitely would worry about the tech fund as we all watched the Nasdaq crash 80-90% in the dot com bust (Cisco has made considerably less money than a money market account since Jan 2000, let alone equities). OP, the majority of your portfolio will not be consumed by you so the legacy plan is probably more of an action item. One interesting thing I thought was that the topic of SORR being mentioned while also holding a triple leverage...
- Wed Feb 07, 2024 8:36 am
- Forum: Personal Investments
- Topic: Commission to Sell Individual Stocks
- Replies: 13
- Views: 783
Re: Commission to Sell Individual Stocks
Wow, I thought commission free trading for stocks/ETFs was a thing of the past. I don't think I've paid a commission in 5+ years. Even so, $4.99 in like 2010-2015.
- Tue Feb 06, 2024 8:48 am
- Forum: Personal Consumer Issues
- Topic: college decision: UIUC or UF for ECE?
- Replies: 339
- Views: 31723
Re: college decision: $63k UIUC ECE or full-ride UF ECE?
This is my thought process as well, but again, as I mentioned, "all known info." OP said $400k was doable if need be, but is this in the bigger scope of a $2MM net worth or an 8 figure NW where it's a flesh wound.Normchad wrote: ↑Tue Feb 06, 2024 8:20 am
6 pages of posts say that you are correct.
The opportunity cost here is huge. This particular kid could get a free education action, and buy 50% of a really nice home in Florida for cash with the savings. The difference between that and the alternative is enormous.
But it’s also completely possible that in the case, the money just isn’t important.
- Tue Feb 06, 2024 8:00 am
- Forum: Personal Consumer Issues
- Topic: college decision: UIUC or UF for ECE?
- Replies: 339
- Views: 31723
Re: college decision: $63k UIUC ECE or full-ride UF ECE?
I would be very curious to see a BH type poll on this. I highly doubt the majority of us would go the Illinois route with the available information vs full ride to FL. OP is in academia, that is an important detail. Putting $250k to a top grad school, home downpayment, or straight up VTI I would imagine is the consensus from BH nation with the available and known current information
- Tue Feb 06, 2024 7:36 am
- Forum: Personal Finance (Not Investing)
- Topic: What is your HSA strategy?
- Replies: 52
- Views: 6658
Re: What is your HSA strategy?
.... We were planning on cash flowing medical expenses and just continuing to fund and invest via the HSA into retirement. From what I have heard/read you can save receipt/bills for medical expenses over the years and reimburse yourself later down the line. I posted an HSA related question recently and one responder pointed out that HSA holders and Medicare recipients "don't play well together". Specifically, once you're on Medicare you can't contribute to your HSA. Correct, but I think the base premiums (I have no idea which letter it is, "D?") can come out of your HSA, and if IRMAA shows up at your door, that can be sizeable I think. I'm sure there are plenty on here who can confirm those details. I think between medi...
- Tue Jan 30, 2024 9:04 am
- Forum: Personal Finance (Not Investing)
- Topic: How to distribute inheritance cash with siblings
- Replies: 21
- Views: 3191
Re: How to distribute inheritance cash with siblings
IMO, $270k divided up into many buckets (if you are married with kids, as is any other sibling(s)) can be taken care of with a series of 1$8k checks without the need to fill out any tax forms (might need to finish on 1/1/25 though). If your sister is married her husband can also write checks (on an account he is named on of course) to siblings in law and their kids.GratefulHeart wrote: ↑Tue Jan 30, 2024 8:45 am There is $270k in the checking account and there is about $5k in bills to pay. This account is not in probate. Only a vehicle ($12k value) and a small savings account ($2k) are in probate. We were told by an attorney that any claims made by creditors (i.e. for hospital bills) would be made on the probated portion.
- Tue Jan 30, 2024 8:53 am
- Forum: Personal Finance (Not Investing)
- Topic: Auto Insurance
- Replies: 9
- Views: 772
Re: Auto Insurance
Thanks, all, yes, same company for Umbrella as Auto/Home so they probably bake in the options on minimums and then after that the Umbrella kicks in
- Tue Jan 30, 2024 8:26 am
- Forum: Personal Finance (Not Investing)
- Topic: Auto Insurance
- Replies: 9
- Views: 772
Re: Auto Insurance
Question, my policy has one amount and one amount only for property liability, $100k. If you are in a congested area and are deemed "at fault" for an accident with either several normal vehicles or even 1 really expensive vehicle, what's the way to mitigate this besides an umbrella? I feel like my policy has had only the $100k option for decade, so with inflation that number has lowered drastically. Am I missing something? Have you called and asked if they can increase the coverage? I see my policy also has $100k in property damage coverage. But I have an umbrella; the limits were set at what they required for the that. An umbrella might be the way to go. That will give you excess coverage for home-related liability as well, even...
- Tue Jan 30, 2024 7:49 am
- Forum: Personal Finance (Not Investing)
- Topic: Auto Insurance
- Replies: 9
- Views: 772
Auto Insurance
Question, my policy has one amount and one amount only for property liability, $100k. If you are in a congested area and are deemed "at fault" for an accident with either several normal vehicles or even 1 really expensive vehicle, what's the way to mitigate this besides an umbrella? I feel like my policy has had only the $100k option for decade, so with inflation that number has lowered drastically. Am I missing something?
- Fri Jan 26, 2024 9:44 am
- Forum: Personal Investments
- Topic: How did you get over your fear of investing in the market?
- Replies: 64
- Views: 5025
Re: How did you get over your fear of investing in the market?
Understanding that you individually are taking a microscopic ownership in American businesses (with the S&P /Total/World) rather than "putting money into the stock market" and that comes with short term trading but over the long haul you're investing in the whole of America/World to advance over 30/40/50 years. On the math side, keeping enough cash/fixed income to where you sleep well at night. If you can behave with equanimity in a 40+% decline in equity with several multiples of annual expenses in equities, you've done all you can do. As is common with the timing of this, most folks 40 and under haven't had to deal with this but just as fascinating is that the folks 50 and up dealt with it twice in 9 years but preceded that ...
- Wed Jan 24, 2024 3:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: Just got laid off
- Replies: 120
- Views: 15992
Re: Just got fired
Sorry to hear but you are in a VERY fortunate position with having no debt and mortgage isn't due for 7 months! Also, that mortgage is super cheap. You're going to be OK. Doing better than most Americans, actually. So cheer up. Brush up on your resume. Buy health insurance in the short term. And move on. You sound like a hard worker and there's a light at the end of the tunnel. There's much worse happening these days. For example, my best friend of 35 years just died unexpectedly this past weekend. His family and I are devastated. Anyways, best of luck. This too shall pass. Great perspective, thank you. I think I tend to be too critical of myself and this helps. I am sorry for your loss, that's horrible. Anything I can do to help? You're f...
- Wed Jan 24, 2024 9:33 am
- Forum: Personal Investments
- Topic: 401k rollover: Company wants money back
- Replies: 60
- Views: 5266
Re: 401k rollover: Company wants money back
As an aside from this specific topic, I am interested to know that if your company uses Vanguard/Fid as their company 401k, it is hugely advantageous because when the time comes to roll to an IRA you can use that same firm and there's no check being mailed crap and you are out of the market for one day vs 1-infinity weeks that I've dealt with in the past.
- Tue Jan 23, 2024 12:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: I don’t think I’m going to worry about RMDs. Terrible decision?
- Replies: 39
- Views: 4150
Re: I don’t think I’m going to worry about RMDs. Terrible decision?
I don't worry either, QCD's.
- Tue Jan 23, 2024 7:56 am
- Forum: Personal Finance (Not Investing)
- Topic: Psychological Aversion to Decumulation Phase
- Replies: 73
- Views: 7374
Re: Psychological Aversion to Decumulation Phase
I've spoken with 2-3 that were in the 2-3% SWR and they simply turned dividends to payable rather than reinvested and that covers their expenses in the first year of retirement alone to get the retirement ball rolling (all of them retired into a rising market for the first 12-24 months at least). It's mental accounting for sure, but "getting paid" quarterly seems to alleviate the "weird not having a pay check" mind warp many face in decumulation. All of them retired before SS and one is on it now and it's just gravy so he turned re-invest back on for his Intl ETF in most of the accounts where it is held. I think even if you're in the 3-5% WR having dividends payable helps to alleviate the psychological burden. I think ha...
- Tue Jan 23, 2024 7:11 am
- Forum: US Chapters
- Topic: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
- Replies: 429
- Views: 41961
Re: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
Thank you Taylor for all that you have done for generations of people
- Sat Jan 20, 2024 8:22 am
- Forum: Personal Finance (Not Investing)
- Topic: Sibling inheritance of Traditional IRA - sharing with other siblings
- Replies: 35
- Views: 3214
Re: Sibling inheritance of Traditional IRA - sharing with other siblings
IS there an article that explains sibling type inheritances (i.e. less than ten years apart). If you inherit a trad IRA with like $500 form a sibling, do you really have to start taking distributions immediately but over a lifetime, or can you wait 10 years and then start lifetime distributions?Spirit Rider wrote: ↑Fri May 01, 2020 8:34 am Wait a minute we may have been missing the forest for the trees.
If the beneficiary is not > 10 years younger than the decedent. The 10 year rule does not apply.
Lifetime RMDs can be taken if started by 12/31 of the year following the year of death. The divisor will be based on the beneficiary's age in that year.
- Fri Jan 19, 2024 3:36 pm
- Forum: Personal Finance (Not Investing)
- Topic: Cancel my health insurance?
- Replies: 100
- Views: 12606
Re: Cancel my health insurance?
Part of the problem is that if the policy provides the same degree of real world coverage for a catastrophic event that it does for minor stuff then I'll be paying for the vast majority of it out of pocket anyway. Should I assume/hope that a catastrophic event will be covered to a much greater extent than minor stuff is? And if there is a catastrophic event will I be forced to use a treatment or doctor or hospital which is not my first choice if I want my PPO insurance to cover it? From what I've observed as a policy holder, "coverage" is complex and if I want to make my own choices I feel like I'll be paying out of pocket even if I still have the policy. Not having health insurance (forget your own personal health decisions and ...
- Fri Jan 19, 2024 9:38 am
- Forum: Personal Finance (Not Investing)
- Topic: It Does not Seem to Make Sense for Me to Ever Pay Home off Early
- Replies: 51
- Views: 5598
Re: It Does not Seem to Make Sense for Me to Ever Pay Home off Early
There are a host of reasons, mathematical and otherwise to keep/pay down a mortgage, but I have a feeling well over 50% of those that keep a mortgage of 6.75% when they have spare cash to pay some or all of it down regret it. Studies for those that keep the mortgage indicate the excess cash doesn't go into investments so much as a new car or boat which probably doesn't apply to BH's as much as the populace. I'm sure some former advisors on this forum can attest to that. We've hit an interesting span of time where if you jut it just right mortgages for several months were around 2.60-2.80% for a fixed/thirty and within 24 months high yield savings accounts were over 4% (currently at 4.5-5% ??). Even if you don't itemize, those in the 24% mar...
- Wed Jan 17, 2024 4:01 pm
- Forum: Personal Investments
- Topic: Egregious Financial Advisor Mistake - Help!!
- Replies: 54
- Views: 5099
Re: Egregious Financial Advisor Mistake - Help!!
I've mentioned on a topic or two before, but I've been shocked at the level of expertise from not only advisors but also tax people (which I guess in retrospect is tax "preparers" and not tax "planners") who don't know about the backdoor and Form 8606. In my state, Tax Preparers are licensed. I took an 88 hour class, which was pretty rigorous, and a state exam before getting my tax license. The test to pass the course was pretty rigorous as well. Still, there are things that you learn only by experience. Fortunately, I knew the limits of my knowledge and experience and if something was beyond my experience and knowledge, I either sought help or passed it on to someone else. It took me many years to build tax expertise a...
- Wed Jan 17, 2024 3:55 pm
- Forum: Personal Investments
- Topic: Tips for unwinding the single stock part of my portfolio
- Replies: 17
- Views: 1793
Re: Tips for unwinding the single stock part of my portfolio
I'd be filling up the 24% tax bucket no doubt and may just be done with it all in one year regardless, unfortunately 18 days ago you could have spread it out over two years in less than a week.
- Wed Jan 17, 2024 3:32 pm
- Forum: Personal Investments
- Topic: Egregious Financial Advisor Mistake - Help!!
- Replies: 54
- Views: 5099
Re: Egregious Financial Advisor Mistake - Help!!
I've mentioned on a topic or two before, but I've been shocked at the level of expertise from not only advisors but also tax people (which I guess in retrospect is tax "preparers" and not tax "planners") who don't know about the backdoor and Form 8606.
- Wed Jan 17, 2024 12:56 pm
- Forum: Personal Finance (Not Investing)
- Topic: Umbrella Insurance
- Replies: 34
- Views: 2912
Re: Umbrella Insurance
Agree, if you’re a celebrity of some sort you want more umbrella insurance, but you’d have to be a celebrity first. My advice is only for the regular Boglehead. If you’re a doctor, they’ll still settle for a million unless you did something heinous or so out of the norm that the plaintiff(s) feels the need to go after the personal assets. Remember, the PI attorney is not in the business of chasing people down. They just want to settle and get paid. I get the impression many view umbrella liability in the context as if it were poor choice somehow made in advance. Losing focus on the road for a quarter of a second can put someone under ground. I am under no illusion that I am a good enough driver so as to guarantee that I will not seriously ...
- Wed Jan 17, 2024 6:37 am
- Forum: Personal Investments
- Topic: Choosing between DIY and Financial Advisor
- Replies: 67
- Views: 6745
Re: Choosing between DIY and Financial Advisor
While literally true, it's not relevant in any context I've ever witnessed. Fee only represents an hourly fee for the 10 or so I've interviewed and AUM has always been 1 % of assets for the 50 or so I've talked to, while taking custody of the assets. In theory, every type of compensation could be considered a fee I suppose. I have yet to see someone claim to be "fee only" but that their fee is 1.35% AUM.
- Tue Jan 16, 2024 10:50 am
- Forum: Personal Investments
- Topic: Choosing between DIY and Financial Advisor
- Replies: 67
- Views: 6745
Re: Choosing between DIY and Financial Advisor
I’ve been considering the advisor route because as I move up the investment learning curve I start to grasp how much I don’t know. A few issues on my plate are as follows: Understanding my taxes in retirement. My situation is not out of the ordinary but issues of tax efficiency are beyond me at this point. When to take social security, at full retirement age or spend down and wait until 70 for the additional 24% Consolidating accumulated IRA trad and Roth accounts at different brokerages into an easier system Which accounts to draw from first to supplement SS and pension One question answered seems to bring up three more. I appreciate the comments here. Thank you Fee only advisor is the route who knows taxes. I have no idea where the value...
- Fri Jan 12, 2024 9:37 am
- Forum: Personal Investments
- Topic: 401K Options Not Great - Need Advice!
- Replies: 22
- Views: 2005
Re: 401K Options Not Great - Need Advice!
When you have an S&P fund that's fewer than 20 bps, that's good. You can build around that in other accounts if you don't find bond options, particularly at your age where the portfolio will be stock heavy.
- Thu Jan 11, 2024 9:33 am
- Forum: Investing - Theory, News & General
- Topic: Is the reason why hedge funds / managers lose to the S&P 500 because they’re forced to make short term decisions?
- Replies: 81
- Views: 9589
Re: Is the reason why hedge funds / managers lose to the S&P 500 because they’re forced to make short term decisions?
I certainly don't have the academic statistical explanation but there are ample results that pension funds have rotated in the flavor of the year only to be disappointed 1-2 years later, wash, rinse, repeat. It certainly could be random, but I don't believe it to be so. Sort of relating to the "past results are no guarantee of future returns" motto.afan wrote: ↑Wed Jan 10, 2024 3:33 pmRandom processes do not work that way. They have no memory.deltaneutral83 wrote: ↑Wed Jan 10, 2024 7:33 am
The interesting thing was once a manager has 3 nice years, the next 3 are statistcally going to be bad, and the inverse is true, once a manager has 3 poor years, he's likely to outperform the next few years.
The likelihood of high random returns is not affected by prior high or low random returns.
- Wed Jan 10, 2024 7:33 am
- Forum: Investing - Theory, News & General
- Topic: Is the reason why hedge funds / managers lose to the S&P 500 because they’re forced to make short term decisions?
- Replies: 81
- Views: 9589
Re: Is the reason why hedge funds / managers lose to the S&P 500 because they’re forced to make short term decisions?
They are forced to buy risky investments that involve market timing … hence why we are BHs with index funds. Can't recall which book it was, maybe a Swedroe book, but frequently once a manager has had 1-2 mediocre years, he knows to save his job he needs to get to a certain ROI, so the risks for him are not much, either do it or risk your job, the risks for the investors are exponential. 3 years is about the timespan for a manager to prove his worth in this line of work. The interesting thing was once a manager has 3 nice years, the next 3 are statistcally going to be bad, and the inverse is true, once a manager has 3 poor years, he's likely to outperform the next few years. So the cycle of firing guys who underperform and hiring guys who ...
- Mon Jan 08, 2024 2:35 pm
- Forum: Personal Investments
- Topic: Apple ... stay the course or scale back?
- Replies: 155
- Views: 27420
Re: Apple ... stay the course or scale back?
Check out the AAPL return from 1984-2001, OP you have done well
- Mon Jan 08, 2024 12:20 pm
- Forum: Personal Investments
- Topic: Dental Graduate Needing Advice - Max Roth IRA vs. Paying Debt Aggressively?
- Replies: 17
- Views: 1905
Re: Dental Graduate Needing Advice - Max Roth IRA vs. Paying Debt Aggressively?
I would do both (tax advantaged accounts and pay down 6+% debt) and take lifestyle down to nothing for just 12 months and then reassess. I assume there are no kids in play, so now is the time where you can reasonable take lifestyle down to nothing and you are the only ones (you and spouse) affected. OP, you have to tell us what kind of car this is with a $2,500 payment. I'd probably look for a used Lexus with 75k miles and make a trade for 2-3 years. If you're already doing 10k a month to student loans, you're probably already on a 3 year plan so that's pretty solid. Drive a lesser car and you can shave off a few of those 36 months.
- Thu Jan 04, 2024 10:11 am
- Forum: Personal Finance (Not Investing)
- Topic: Messed up backdoor Roth IRA pro rata rule. How to clean up?
- Replies: 4
- Views: 1219
Re: Messed up backdoor Roth IRA pro rata rule. How to clean up?
Does Fidelity still take a week between funds settling in the Trad before you can convert to the Roth ? I know Vanguard takes a week but didn't know if Fid did? I'm showing funds settling in my Trad yesterday with 1/10 as the day I can convert to Roth.
- Thu Jan 04, 2024 10:08 am
- Forum: Personal Finance (Not Investing)
- Topic: What to look for when selecting tax preparer
- Replies: 14
- Views: 1497
Re: What to look for when selecting tax preparer
I was a bit shocked at how many tax preparers (CPA or not) did not know how to properly fill out Form 8606 for Back Door Roth conversions. There are a million threads on it on BH and I just assumed tax people talked about as much as we do. It's pretty rare they deal with it, or it seems rare enough o me because they don't do it much.
- Thu Jan 04, 2024 8:06 am
- Forum: Personal Investments
- Topic: Duplicating a AUM account?
- Replies: 39
- Views: 3417
Re: Duplicating a AUM account?
I just wanted to thank you all. You have given me a lot of good into to consider and maybe even a little more confidence than I had previously. For some reason I felt like I was rushed and had to decide fairly quickly to put this all behind me but I don't. I am now ok with taking some time to make the decision. And no, I don't know why I felt like I had to decide and get this "off my plate". Just the way I get sometimes. I have so much going on and run my own business too so sometimes stress and anxiety gets to me. Thanks again, I truly appreciate all who have replied. Math wise, an AUM guy in a taxable account over 20 years is probably right at a 1% probability to beat the market ahead of fees, i.e. he provides alpha. The proble...
- Wed Jan 03, 2024 1:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: Edward Jones requiring meeting to set up inherited IRA
- Replies: 40
- Views: 5404
Re: Edward Jones requiring meeting to set up inherited IRA
Thank you all. Meeting went well, I didn't ask any of my questions except what the process going forward is. Of course it won't start until after all 3 sisters meet with them. The only part referred to "as required by law" during the meeting was just the standard IRS questions of income, net worth, employer, etc. I think she explained the options for a CD in a taxable account well but I do need to research that more and will start another thread for that. Thanks! That make sense, They have to gather KYC stuff when moving to the inherited accounts. Now they don't have to take their precious time and charge a closing fee on the deceased accounts nor does the meeting need to be in person (thought it could be over the phone), that's ...
- Wed Jan 03, 2024 10:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Real Estate PE Fund /Taxes
- Replies: 5
- Views: 409
Re: Real Estate PE Fund /Taxes
Got it, thanks, Should be passive then for taxes and count toward my carry over, which is what I wanted.SubPar wrote: ↑Wed Jan 03, 2024 10:11 amNot sure if I'm misinterpreting your reply, but depreciation is depreciation. It itself isn't classified as active or passive.deltaneutral83 wrote: ↑Wed Jan 03, 2024 10:04 am Thank you, I assume most of these funds aim for active income/loss for any and all depreciation.
The active vs. passive designation is determined by the taxpayer's (yours) status as a Real Estate Professional. A REP is someone who materially participates in real property trade or businesses, which has two major (read: restrictive) criteria that you must satisfy.
- Wed Jan 03, 2024 10:04 am
- Forum: Personal Finance (Not Investing)
- Topic: Real Estate PE Fund /Taxes
- Replies: 5
- Views: 409
Re: Real Estate PE Fund /Taxes
Thank you, I assume most of these funds aim for active income/loss for any and all depreciation.
- Wed Jan 03, 2024 9:11 am
- Forum: Personal Investments
- Topic: Moving IRA to Empower or Fidelity?
- Replies: 3
- Views: 603
Re: Moving IRA to Empower or Fidelity?
I use Fidelity because they let you buy partial shares of ETF's when you place the order through the app on phone. I'd obviously like this on desktop, but once a year for the trade is fine enough for me. I haven't looked to see if others have this option, I imagine it will be well publicized if so.