Search found 442 matches

by dsmil
Tue Jan 17, 2017 3:48 pm
Forum: Investing - Theory, News & General
Topic: Spending HSA money versus other
Replies: 16
Views: 1250

Re: Spending HSA money versus other

My plan is to pay everything out of pocket, then withdraw the HSA funds, then move the money over to my Roth. Therefore, I'm getting the tax deduction and never paying taxes on the money, no matter what I use the funds for in retirement.
by dsmil
Tue Jan 17, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: How variable is your total income (5 year history)?
Replies: 30
Views: 3150

Re: How variable is your total income (5 year history)?

My income has been affected by annual raises, one promotion, and one job change. 2010 - 100% 2011 - 107% 2012 - 120% 2013 - 127% 2014 - 160% 2015 - 180% 2016 - 193% Our household income has been affected by my wife starting to stay home a couple of years ago. Our monthly savings amount has been affe...
by dsmil
Tue Jan 17, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 100
Views: 8590

Re: Why nobody understands importance of high-deductible insurance?

The average person is scared of high deductibles, whether it's for health insurance or car insurance. I'll give you an example: At my workplace, my company opted for a plan which increased our deductible rather than significantly increasing our premiums. At the meeting with our insurance representat...
by dsmil
Fri Jan 13, 2017 9:56 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 153
Views: 12431

Re: "Millennials may need to double how much they save for retirement"

Cuts to social security and mediocre market returns are definitely possibilities in the future. I think that we'll see most people working longer, rather than saving more, because many people are either not able to or not willing to sacrifice in order to save more. For Bogleheads, most of us plan fo...
by dsmil
Thu Jan 12, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Rolled into Roth IRA?
Replies: 4
Views: 217

Re: 401k Rolled into Roth IRA?

Rolling from Traditional 401k to Roth IRA is taxable. It is essentially a Roth conversion and does not use up your Roth IRA contribution space. Great. This is my scenario. Will I have to pay taxes right away or wait until next year's income taxes are due? Thank you I believe that you'd owe when you...
by dsmil
Thu Jan 12, 2017 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Advice for home purchase
Replies: 6
Views: 463

Re: Advice for home purchase

Hi, I'm looking for some advice for my specific situation: -We definitely wouldn't be able to buy the ideal Boglehead way--we could put 5% down (would this allow us to get a conventional loan where we can work to get rid of the PMI or does this limit us to FHA loans only?) We bought a few years ago...
by dsmil
Wed Jan 11, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Where do you keep your emergency fund?
Replies: 80
Views: 5977

Re: Where do you keep your emergency fund?

Ours are split between Ally Bank and our Roths with Vanguard (ST Federal Funds & ST Bond Index Fund).
by dsmil
Mon Jan 09, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Do Mortgage Terms Improve with Larger Down Payment? (<20% down)
Replies: 3
Views: 365

Re: Effect of down payment on loan offerings (<20% down)

Thanks Meg, that's very good to know. It seems like a good idea would be to save 10% to open up the possibility of a lower rate or 80/10/10 loan. If I'd rather instead pay off the loans at that point, I could always do it at that time.
by dsmil
Mon Jan 09, 2017 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Do Mortgage Terms Improve with Larger Down Payment? (<20% down)
Replies: 3
Views: 365

Do Mortgage Terms Improve with Larger Down Payment? (<20% down)

Hello Bogleheads, For those who have put less than 20% down on homes (not FHA), have you experienced more favorable mortgage offerings based on the amount that you have put down? Obviously PMI premiums are affected, but what about interest rates? We're most likely going to move in the next 1-2 years...
by dsmil
Thu Jan 05, 2017 11:13 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1275
Views: 205209

Re: What are you up YTD? [Year To Date]

12.5% in 2016. I got some help because I made all of my Roth contributions on literally the market low for the year, Feb. 11th. Thanks to Bob Brinker and his buy signal email!

44% Total US
20% Total International
10% REIT
9% Small Cap Value
7% Emerging
10% Total Bonds
by dsmil
Thu Jan 05, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: Are Younger people funding 529 Plans?
Replies: 109
Views: 7298

Re: Are Younger people funding 529 Plans?

Almost 30 here and we do have a 529 for some gifts from grandparents, but we're saving for college within our Roths. We'll be taking the next year to finally pay off our own students loans, after which our savings will first go towards retirement, and then split between college savings and the next ...
by dsmil
Thu Jan 05, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Effective Tax Rate
Replies: 17
Views: 887

Re: Calculating Effective Tax Rate

I love seeing my effective tax rate. Most people automatically think that they are taxed at their marginal rate, but it's often not even close to that.
by dsmil
Sun Jan 01, 2017 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Is it possible to graduate from college in 3 years?
Replies: 101
Views: 4545

Re: Is it possible to graduate from college in 3 years?

My wife did it so yes, but she's the only person I know who did it. If she came in with any AP credits, they would have been minimal. I got through 51 credits senior year and the summer after by taking 6 classes in the fall and spring, 2 classes in the winter, and 3 classes in the summer after gradu...
by dsmil
Thu Dec 29, 2016 9:59 pm
Forum: Personal Consumer Issues
Topic: Boglehead Beer
Replies: 729
Views: 123874

Re: Boglehead Beer

JDDS wrote: I've had two Troegs but not that one.


If Troegs distributes to your area than I highly recommend you trying it. It's their signature beer and will start showing up throughout January.

https://www.beeradvocate.com/beer/profile/694/15881/
by dsmil
Thu Dec 29, 2016 9:55 pm
Forum: Personal Consumer Issues
Topic: Affordable home exercise
Replies: 91
Views: 6427

Re: Affordable home exercise

I would go with a pull up bar and a set of adjustable dumbbells. Weights are really the way to go and I think you'll learn to love them. Adjustable dumbbells with plates are a very economical option rather than buying a ton of different dumbbells. I'm sure that there are many free resources through ...
by dsmil
Wed Dec 28, 2016 3:27 pm
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 7253

Re: How many of you invest 100% at Vanguard?

I would if I could.
by dsmil
Wed Dec 28, 2016 10:40 am
Forum: Personal Consumer Issues
Topic: Boglehead Beer
Replies: 729
Views: 123874

Re: Boglehead Beer

The holiday time is always my favorite for beer. My current fridge lineup: Sierra Nevada Celebration Ale (nothing represents the holidays more than this for me) Founders Breakfast Stout (also an every-year purchase at this time) Founders Backwoods Bastard (first time trying and it's very good, altho...
by dsmil
Wed Dec 28, 2016 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Accounts vs IRA vs Roth IRA
Replies: 8
Views: 699

Re: Taxable Accounts vs IRA vs Roth IRA

In my mind the lower capital gains rate (15%) would give taxable accounts the edge over a traditional IRA (25%) I think you're forgetting the fact that the money going into your taxable account has already been taxed. So you have your money hit with both an income tax of 25% and a capital gains/div...
by dsmil
Wed Dec 28, 2016 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Monthly Expenses in line or too much
Replies: 81
Views: 6874

Re: Monthly Expenses in line or too much

We are just a family of 3 (with a toddler) in a medium-high cost of living area but we spend about $3k per month on average other than our mortgage payment. No way should anyone have a budget item of Misc in the multiple hundreds every month. No way. I'm in the same boat here, $500 per month in &quo...
by dsmil
Tue Dec 27, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: After contributing Trad 401K to company match, then on to Roth 401k or Roth IRA?
Replies: 7
Views: 310

Re: Does it make sense to contribute to Roth 401K instead of Roth IRA?

Many will argue that everything should go to the traditional 401k while in the 25% bracket. If you've already decided that you want some money to go into a Roth, the difference is pretty marginal so I think you'll be fine either way. The Roth IRA gives you more flexibility but the Roth 401k gives yo...
by dsmil
Tue Dec 27, 2016 11:51 am
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12586

Re: I'll never save a 20% down payment. Rent for life?

If the costs of living in the home (PITI, some for repairs) make sense in your budget compared to renting, I don't see anything wrong with putting less than 20% down.
by dsmil
Thu Dec 22, 2016 8:00 am
Forum: Personal Consumer Issues
Topic: Sling TV
Replies: 28
Views: 2686

Re: Sling TV

A related question -- am I getting a good deal on my current cable / internet service? I pay $140 a month all-in... that includes cable TV, internet, cable box rental, modem / router rental, surcharges, etc. etc. No phone service, no premium movie channels. What do y'all think? That seems reasonabl...
by dsmil
Wed Dec 21, 2016 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: housing options-- stretch for schools?
Replies: 37
Views: 2220

Re: housing options-- stretch for schools?

I like option B. I'm in a very similar situation as you where we have a young child and in a HCOL area. For our next house, we're choosing to look at areas with schools only in the 9's and 10's where the houses are 4x income. Similar houses are 3x income in areas with worse schools and we feel bette...
by dsmil
Tue Dec 20, 2016 9:41 am
Forum: Investing - Help with Personal Investments
Topic: 27 - Planning Ahead For 2017
Replies: 6
Views: 468

Re: 27 - Planning Ahead For 2017

I think you're fine either way. I would probably recommend your low-fee 401k in the 25% bracket, but you'll have 16% of your income (you plus employer contribution) going to the 401k, so putting some in the Roth for some tax diversification isn't a bad idea either. If you do decide to direct everyth...
by dsmil
Mon Dec 19, 2016 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Closing Credit Cards (Affect on Credit Score)
Replies: 4
Views: 372

Re: Closing Credit Cards (Affect on Credit Score)

I've read mixed things on whether closed accounts are taken into consideration for the average age of credit calculation. I usually read that closed accounts do still count in the calculation until they are dropped from your credit report completely after 10 years.
by dsmil
Fri Dec 16, 2016 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: When to make Roth IRA contribution
Replies: 9
Views: 746

Re: When to make Roth IRA contribution

Since you won't have any cash flow problems, I think getting the money in earlier is better than spreading it out from a return standpoint. I guess you could still call this dollar cost averaging, but you're just not doing it as often.
by dsmil
Fri Dec 16, 2016 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Sallie Mae Rewards MC being discontinued
Replies: 109
Views: 9626

Re: Sallie Mae Rewards MC being discontinued

I received the letter yesterday and was disappointed, since we use this for gas, groceries, and amazon. It was always nice to redeem the points for cash back, in combination with our regular travel points cards.
by dsmil
Fri Dec 16, 2016 10:01 am
Forum: Investing - Theory, News & General
Topic: Why should one invest in 401k to mathcing, then Roth IRA, then back to 401k?
Replies: 29
Views: 2757

Re: Why should one invest in 401k to mathcing, then Roth IRA, then back to 401k?

In general, 401k's have higher fees, less investment options, and less flexibility than a Roth. So tax considerations aside, the Roth is normally a better place to put your money, after getting the 401k match. A Roth could also give you some tax diversification at retirement when combined with your ...
by dsmil
Tue Dec 13, 2016 11:42 am
Forum: Investing - Help with Personal Investments
Topic: What % of your net income do you save (not including 401k/IRA)
Replies: 59
Views: 4790

Re: What % of your net income do you save (not including 401k/IRA)

We're at 0% if not counting 401k or IRA, but 10% of gross is going there. All extra money after expenses and retirement savings is going towards making additional payments on student loans. Once student loans are gone in 12 months, we plan on saving 25% of gross towards 401k/HSA/Taxable.
by dsmil
Mon Dec 12, 2016 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: IRA deduction question
Replies: 5
Views: 227

Re: IRA deduction question

Your AGI does not determine your tax bracket, your taxable income does. You still need to deduct your itemized or standard deduction, and then your exemptions, to determine your taxable income, which would put you into the 15% bracket.
by dsmil
Fri Dec 09, 2016 2:00 pm
Forum: Personal Consumer Issues
Topic: Learning an instrument as an adult?
Replies: 123
Views: 9693

Re: Learning an instrument as an adult?

In college, I started messing around with my roommate's acoustic guitar and I later bought myself one a couple of years later. I picked it up pretty quickly, and having a background in piano and trumpet helped. I'm not great (stick to chords primarily) but I have fun playing and singing in the basem...
by dsmil
Fri Dec 09, 2016 8:49 am
Forum: Investing - Help with Personal Investments
Topic: HSA - is keeping 40 years of medical records practical?
Replies: 127
Views: 8336

Re: HSA - is keeping 40 years of medical records practical?

I would just like to point out that keeping keeping funds in the HSA when you otherwise could remove them for eligible healthcare spending is only really a good idea if you have no remaining tax advantaged space. I think this point gets lost at times. NS I don't understand. Normal tax advantaged sp...
by dsmil
Thu Dec 08, 2016 1:50 pm
Forum: Investing - Theory, News & General
Topic: Why not have an Emergency Fund in your Roth...(for those who can't max out anyways)
Replies: 22
Views: 2230

Re: Why not have an Emergency Fund in your Roth...(for those who can't max out anyways)

I like the idea because there might be a time in the future where you'll not only be able to max the Roth, but can also shift your Roth emergency funds into Roth retirement funds, and shift your emergency money to taxable. If it's between putting some emergency money into a Roth vs. putting nothing ...
by dsmil
Thu Dec 08, 2016 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Invest in HSA outside that offered by company
Replies: 7
Views: 385

Re: Invest in HSA outside that offered by company

When you contribute outside of the HSA, yes it's technically after-tax money, but you deduct this on your tax return. I'm about to be in the same boat as you and what I plan on doing is adding another exemption to decrease my paycheck witholding, which will have a similar effect as running the contr...
by dsmil
Thu Dec 08, 2016 8:59 am
Forum: Investing - Help with Personal Investments
Topic: 15-20% To Retire, or Setting an Exact Number
Replies: 47
Views: 5814

Re: 15-20% To Retire, or Setting an Exact Number

I like using a percentage of income and seeing everything in today's dollars. So when figuring your annual return, you could back out your 3% inflation estimate and see what you'll need to come up with $500k at retirement. You'll then be able to figure out the percentage of income needed to invest f...
by dsmil
Thu Dec 08, 2016 8:45 am
Forum: Personal Consumer Issues
Topic: Flaunt Your High-Mileage Car
Replies: 306
Views: 28613

Re: Flaunt Your High-Mileage Car

1997 Acura Integra with 165k on it. Bought it used with 40k on it in high school in 2004, and used my summer job money to put speakers in it. I think it's in decent shape (my wife would disagree) but I'm attached to this car and never want to give it up! My wife has a 2000 Toyota Rav 4 with 180k on ...
by dsmil
Wed Dec 07, 2016 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Placement
Replies: 10
Views: 646

Re: Emergency Fund Placement

I don't mind a plan like this at all. I have some emergency money in a short term bond fund. The chances that you have an emergency that you couldn't handle because your lifestrategy income fund dropped is pretty slim. Plus, all assets are at your disposal if there is a true emergency that you can't...
by dsmil
Tue Dec 06, 2016 9:20 am
Forum: Personal Consumer Issues
Topic: Flying Across Atlantic with 98th Percentile 18-Month Child
Replies: 114
Views: 6668

Re: Flying Across Atlantic with 98th Percentile 18-Month Child

My wife and I just flew from the U.S. to Italy and back with an 18 month old. We only booked two seats but the plane was empty enough so we carried on a carseat and were able to have a 3rd seat for our child in the carseat. We also gate checked our stroller. On the way back, United put us in a spot ...
by dsmil
Mon Dec 05, 2016 11:23 am
Forum: Investing - Theory, News & General
Topic: Trying to fund retirement in late 20s.
Replies: 23
Views: 2421

Re: Trying to fund retirement in late 20s.

There are a couple of options here. If you are fine delaying those other goals, than throwing everything at retirement is a great idea because the more you save when you are young, the less you have to save in total. Maybe this means saving 30% of your income for a few years and then saving 12% afte...
by dsmil
Thu Dec 01, 2016 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Is American Funds 20xx Target Date Retirement a good fund?
Replies: 10
Views: 614

Re: Is American Funds 20xx Target Date Retirement a good fund?

It looks like the underlying funds are actively managed, not indexes. Are there other target date funds available? Your recommendations would be pretty easy for a lazy approach to work as well, and the fees are probably lower. She could just re-balance once in awhile.
by dsmil
Tue Nov 29, 2016 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Card cancellation
Replies: 3
Views: 506

Re: Credit Card cancellation

According to Million Mile Secrets, you shouldn't cancel too early because the bank might not like it. Basically they advise closing closer to the date that the fee is about to hit, rather than right after you use the points. http://millionmilesecrets.com/new-to-miles-points-start-here/#step7 "I...
by dsmil
Tue Nov 22, 2016 9:41 pm
Forum: Personal Consumer Issues
Topic: How Much Housing Payment Can a Boglehead Afford?
Replies: 90
Views: 4518

Re: How Much Housing Payment Can a Boglehead Afford?

Again, I like budgets rather than ratios, but 30% of gross income seems to be at the top of what usually works for us when looking for a new home.
by dsmil
Tue Nov 22, 2016 7:25 pm
Forum: Personal Consumer Issues
Topic: How Much Housing Payment Can a Boglehead Afford?
Replies: 90
Views: 4518

Re: How Much Housing Payment Can a Boglehead Afford?

I think the best thing to do is just put the payment into a budget and see what happens. Generally, higher income people can afford a higher percentage of income going to housing because after paying for housing, they are left with more money.
by dsmil
Tue Nov 22, 2016 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Income Tax Help - Millennial
Replies: 12
Views: 895

Re: Income Tax Help - Millennial

Getting to the top of the 15% bracket probably doesn't do much for you. You have to realize that if you are $1 into the 25% bracket, only that last dollar is taxed at 25%, not all of your income. The majority of your income would be taxed at 15%, with some also taxed at 10%. Your Roth contributions ...
by dsmil
Sun Nov 20, 2016 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Do you track your net worth? How long have you done so?
Replies: 110
Views: 8252

Re: Do you track your net worth? How long have you done so?

I have a spreadsheet which I update at the end of every month, and have been doing so for 2 years. I like being able to see how we've progressed over the years and it also lets me see how our emergency fund savings are doing, when I add up all cash savings and subtract credit card balances.
by dsmil
Thu Nov 17, 2016 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Critique our 2017 financial plan - mid-20’s couple
Replies: 5
Views: 780

Re: Critique our 2017 financial plan - mid-20’s couple

Everything looks good to me. 6 months of emergency money, no debt, and fully funding 2 Roths looks great. I also like your strategy of moving emergency money to the Roth in case your job situation gets shaky, so you can still max out your Roth.
by dsmil
Thu Nov 17, 2016 8:08 am
Forum: Personal Finance (Not Investing)
Topic: In total how much have you earned in credit card rewards?
Replies: 32
Views: 2570

Re: In total how much have you earned in credit card rewards?

About $5k worth of sign up bonuses in the 2 years that I've been chasing points and my credit score has never been higher.
by dsmil
Tue Oct 18, 2016 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Help with mortgage options - low rate or more credit back
Replies: 9
Views: 606

Re: Help with mortgage options - low rate or more credit back

Unless you're going to be in the house for a short period of time, the 3.25% option seems like the way to go. Your payment would be $87 less which would pay itself back in a handful of years (numbers change slightly if itemizing mortgage interest).
by dsmil
Fri Oct 14, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Should I keep paying extra on my house?
Replies: 9
Views: 1832

Re: Should I keep paying extra on my house?

If you know that you are going to move, I think saving the money towards the down payment is the way to go. It has the same net effect as putting it towards the mortgage, except it gives you flexibility when buying. we should make enough (yearly income) that we could easily qualify for a 2nd loan. 3...
by dsmil
Thu Oct 06, 2016 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Sanity check for plan to move taxable to Roth
Replies: 5
Views: 316

Re: Sanity check for plan to move taxable to Roth

This looks like a good plan to shift everything to tax advantaged accounts.

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