Search found 745 matches

by mcraepat9
Tue Aug 08, 2017 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: When does renting make sense
Replies: 112
Views: 8715

Re: When does renting make sense

Folks, It is obvious from multiple and repeated discussion that A) In general, people buy more house versus when they rent. B) So, all those rent versus buy calculator does not make any sense when you are comparing Apple versus Orange. Because of (A), my observation of people spends more on housing...
by mcraepat9
Tue Aug 08, 2017 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to Roth IRA on maternity leave
Replies: 2
Views: 292

Re: Contribute to Roth IRA on maternity leave

As long as the woman's spouse has earned income in excess of (i) her IRA contribution amount plus (ii) spouse's IRA contribution amount and the couple is otherwise below the Roth IRA direct contribution income limitation, yes. The biological sex of the person is not relevant.
by mcraepat9
Tue Aug 08, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: kids think lazy if retire?
Replies: 70
Views: 7787

Re: kids think lazy if retire?

I'm sure this is a dumb question, but am I wrong for thinking the goal in life is to "do nothing" (i.e. not work)? That is my goal.
by mcraepat9
Thu Aug 03, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Non-match Roth 403b vs matched 403b
Replies: 11
Views: 359

Re: Non-match Roth 403b vs matched 403b

1. What is your current marginal state and fed tax rates? 2. Is there a particular reason you believe your tax rate in retirement will be higher than it is now? Do you have a large pension coming to you? Is this year an unusually low income year for you? Why do you think you will be in the same tax ...
by mcraepat9
Tue Aug 01, 2017 11:24 am
Forum: Investing - Help with Personal Investments
Topic: How to sell non-whole ETF unit
Replies: 7
Views: 310

Re: How to sell non-whole ETF unit

When I tried to sell all my shares of a Vanguard ETF (in which i have fractional shares), this is what Vanguard said: Only whole shares can be traded. Since you're selling your entire position, we'll place an order to sell all of your whole shares. We'll then automatically liquidate any remaining fr...
by mcraepat9
Mon Jul 31, 2017 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: 529 or Mortgage
Replies: 38
Views: 2110

Re: 529 or Mortgage

Seems like a no brainer to max our your tax advantaged retirement accounts (401k, IRA) before putting a single dollar into a 529 or extra mortgage payments.
by mcraepat9
Mon Jul 31, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Limited ADP 401K Options - Suggestions?
Replies: 4
Views: 261

Re: Limited ADP 401K Options - Suggestions?

You might consider pairing these two in a 4:1 ratio (S&P 500 fund (4) to Extended Equity (1) ratio). T. Rowe Price Extended Equity Market Index Fund 0.35 iShares S&P 500 Index Fund - Class A 0.36 The extended equity fund is substantially all of the US stock market except for the S&P 500....
by mcraepat9
Sat Jul 29, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Looking for feedback
Replies: 7
Views: 356

Re: Asset Allocation - Looking for feedback

Probably best to use these in your 401k and adjust your VTIAX holdings in other accounts to match your preferred asset allocation:

401K Intermediate Bond ER=0.21%
401K Russell 3000 Index ER=0.05%
by mcraepat9
Sat Jul 29, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Looking for feedback
Replies: 7
Views: 356

Re: Asset Allocation - Looking for feedback

It is a JNJ 401k with no ticker symbols but here is all the info. Here are all the choices 401K US Small Cap ER = 0.67% 401K Intermediate Bond ER=0.21% 401K Diversified Equity ER=0.37% 401K Balanced Fund ER=0.37% 401K International Equity ER= 0.47% this is fairly expensive and the fund has manager ...
by mcraepat9
Sat Jul 29, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to protect preowned individual assets when not married and own home together
Replies: 11
Views: 944

Re: How to protect individual assets when not married and own home together

Common Law state? As mentioned it's California. Community property state, I just added that to the original post. Thanks. As for common law, I don't know. I don't know if a state can be both common and community. Will have to check that out. California does not have common law marriage - however, i...
by mcraepat9
Sat Jul 29, 2017 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Looking for feedback
Replies: 7
Views: 356

Re: Asset Allocation - Looking for feedback

About me: I am 47yrs and my wife is 47yrs with 2 kids 9yrs and 9yrs. I work and my wife stays home to take care of the kids. Income $110,000 25% tax bracket Tax Filing Status: Married Filing Jointly I maxed out my 401K and Roth IRA this year Target retirement age: 65 (2035) State of Residence: PA W...
by mcraepat9
Sat Jul 29, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4399

Re: Newbie and New Parent: Help w/ Retirement and 529

529 Question: My wife and I are getting some pressure from grandparents on how they can contribute to their granddaughter's college fund. My wife and I are tempted to open a 529 for the sake of not turning down free money from the grandparents. I suggested to my wife that we can also keep tally of ...
by mcraepat9
Fri Jul 28, 2017 7:06 pm
Forum: Investing - Theory, News & General
Topic: Why is BND best?
Replies: 29
Views: 3879

Re: Why is BND best?

Most people recommend BND or the mutual fund equivalents as the sole bond fund in the three fund portfolio. Unless I'm mistaken, it invests in only intermediate term bonds, to the exclusion of short and long term ones. Why ignore those? You are mistaken, it does include bonds of all durations - but...
by mcraepat9
Fri Jul 28, 2017 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: How does this work? [Dow Jones up, but Vanguard Total Stock down]
Replies: 10
Views: 1427

Re: How does this work?

bjames310 wrote:The Dow Jones is at record highs with three straight days of gain, yet VTSAX has been down three days in a row. I'm confused.


DJIA is not the same thing as VTSAX.
by mcraepat9
Wed Jul 26, 2017 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should you wait until the due date to pay credit card balance?
Replies: 126
Views: 8063

Re: Should you wait until the due date to pay credit card balance?

Who has time for this nonsense? Set up "autopay in full on due date" the day you get a new card. Set it and forget it. If you have credit score issues it's not because you don't pay your credit card balance off 15 times a month or other "systems". This is all I do. I don't know ...
by mcraepat9
Wed Jul 26, 2017 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property - Best Legal Structure?
Replies: 23
Views: 1908

Re: Rental Property - Best Legal Structure?

Thanks for the replies. I have a mortgage still. So it sounds like the best option would be to just increase the insurance policy. If I paid off the mortgage, then maybe it would be worth it to go the LLC route. So tax savings purposes, has anyone attempted setup S-Corp to hold their rental propert...
by mcraepat9
Wed Jul 26, 2017 1:29 pm
Forum: Investing - Theory, News & General
Topic: VNQ allocation [Vanguard REIT Index]
Replies: 20
Views: 1340

Re: VNQ allocation

Get rid of REIT allocation unless you have a compelling reason to overweight REITs. I think the reason should be more fulsome than "have seen it in other allocations".

Default to simplicity.
by mcraepat9
Wed Jul 26, 2017 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Why not Schwab instead of Vanguard?
Replies: 68
Views: 4697

Re: Why not Schwab instead of Vanguard?

Schwab has a good total stock fund and a good total bond fund (just started a year ago). Their international fund is ok for what it is, but it is not a total total international. The cost differences, where they exist, are too tiny to matter. They don't have much other than that (except a couple of...
by mcraepat9
Wed Jul 26, 2017 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Why not Schwab instead of Vanguard?
Replies: 68
Views: 4697

Re: Why not Schwab instead of Vanguard?

I have been a long time Vanguard customer and believe: 1) They have been an industry leader in low fees 2) Their customer service is marginal at best As I see it for basic index funds, Schwab is actually cheaper to use than Vanguard. Am I missing something or am I, and possibly other bogleheads sta...
by mcraepat9
Wed Jul 26, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4399

Re: Newbie and New Parent: Help w/ Retirement and 529

The asset allocation makes sense to me, the simplified approach (i.e. 3 fund portfolio), focusing on things I can control (tax efficiency) and sticking to my plan. To play "devil's advocate", is there "proof in the pudding" that this strategy works? In lieu of buying low and sel...
by mcraepat9
Wed Jul 26, 2017 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA question
Replies: 5
Views: 374

Re: Roth IRA question

Do you have earned income/compensation during the relevant year in which you would be contributing to the Roth IRA?
by mcraepat9
Tue Jul 25, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4399

Re: Newbie and New Parent: Help w/ Retirement and 529

The asset allocation makes sense to me, the simplified approach (i.e. 3 fund portfolio), focusing on things I can control (tax efficiency) and sticking to my plan. To play "devil's advocate", is there "proof in the pudding" that this strategy works? In lieu of buying low and sel...
by mcraepat9
Tue Jul 25, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Grandson just got married. Wants to add wife's name to accts
Replies: 32
Views: 4225

Re: Grandson just got married. Wants to add wife's name to accts

I just don't see any upside to retitling. How about avoiding probate for the assets where specifying a beneficiary is not standard (such as a house)? Probate court in Texas is just not terribly difficult or burdensome. The son could easily retitle later in life once he knows this marriage is for re...
by mcraepat9
Tue Jul 25, 2017 7:04 pm
Forum: Investing - Theory, News & General
Topic: Time, not material goods, 'raises happiness'
Replies: 38
Views: 4161

Re: Time, not material goods, 'raises happiness'

Bogleheads have known this for a long time: http://www.bbc.com/news/science-environment-40703519 "Using money to free-up time is linked to increased happiness, a study says." No doubt. If anyone out there hasn't come up with a dollar value for your free time, I would encourage them to do ...
by mcraepat9
Tue Jul 25, 2017 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Help with allocation
Replies: 25
Views: 1558

Re: Help with allocation

I haven't been communicating very well or using the terminology correctly myself, so I apologize. I went back and reread some stuff and now I am much more clear on things, though not perfect I'm sure. I am going to close my (when I say 'my', I mean my husband's) American Funds account and move that...
by mcraepat9
Tue Jul 25, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Grandson just got married. Wants to add wife's name to accts
Replies: 32
Views: 4225

Re: Grandson just got married. Wants to add wife's name to accts

No tax consequences, but this will likely result in "commingling" of separate (pre-marital) property and marital property. In many states, separate property is not subject to division in a divorce. Once you commingle, it's assumed to be marital property and the spouse gets a share of it i...
by mcraepat9
Tue Jul 25, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Can anyone help me by putting some numbers to "tax cost ratio" ?
Replies: 7
Views: 551

Re: Can anyone help me by putting some numbers to "tax cost ratio" ?

Use triceratop's master spreadsheet to calculate tax cost. M* is not accurate.
by mcraepat9
Tue Jul 25, 2017 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Grandson just got married. Wants to add wife's name to accts
Replies: 32
Views: 4225

Re: Grandson just got married. Wants to add wife's name to accts

No tax consequences, but this will likely result in "commingling" of separate (pre-marital) property and marital property. In many states, separate property is not subject to division in a divorce. Once you commingle, it's assumed to be marital property and the spouse gets a share of it in...
by mcraepat9
Tue Jul 25, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications for a family loan.
Replies: 8
Views: 491

Re: Tax implications for a family loan.

I assume that legally there would be some tax implications for me. Is there some research that you could point me to? For you the interest from the loan will be taxable income. If the IRS regards this loan as not being an at-arms-length transaction, you'll still have to pay taxes on the interest yo...
by mcraepat9
Tue Jul 25, 2017 1:52 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 220
Views: 17369

Re: Buying house - Very important decision

Dont mean to restart the same topic, but a coworker was mentioning that he knows some folks who bought multiple SFH homes. Apparently they are able to rent couple of them for about the same as mortgage amount. He also says there is no way in hell prices are going to come down here. Wondering if thi...
by mcraepat9
Mon Jul 24, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 21290

Re: Living Off Dividends

The reason to hold bonds is to stabilize the portfolio. A 100% stock portfolio may drop 50% in a crash. If the investor would have no feelings about that, there is no problem as long as the dividends continue on. But it would be a rare investor who would have no feelings about that. And you cannot ...
by mcraepat9
Mon Jul 24, 2017 1:24 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 21290

Re: Living Off Dividends

The reason to hold bonds is to stabilize the portfolio. A 100% stock portfolio may drop 50% in a crash. If the investor would have no feelings about that, there is no problem as long as the dividends continue on. But it would be a rare investor who would have no feelings about that. And you cannot ...
by mcraepat9
Mon Jul 24, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: Dividends vs buybacks
Replies: 60
Views: 2987

Re: Dividends vs buybacks

Jack Welch is an illustration of what I am talking about. Since he left GE, the stock price has languished. His successor, Jeff Immelt wound up reversing a lot of Welch's decisions. When the wizard retired, the successor couldn't continue the financial engineering and the management of the stock pr...
by mcraepat9
Mon Jul 24, 2017 12:40 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 21290

Re: Living Off Dividends

I would much prefer the bonds than relying on dividends. They get cut at precisely the time you are most vulnerable. General Electric announced a substantial cut in its dividends in the summer of 2008 and it has still not yet returned to its previous level. I am a "total return" believer -...
by mcraepat9
Sun Jul 23, 2017 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Can anyone convince me I need international stock in my portfolio?
Replies: 162
Views: 8424

Re: Can anyone convince me I need international stock in my portfolio?

as of today (7/23/2017), if you had invested $10,000 in both funds on 4/29/1996, you would currently have $56,371 in your Total Stock U.S. Stock Market Index Fund, which would be more than double as much as the $27,422 in your Total International Stock Index Fund. Mid 1996 is when I started investi...
by mcraepat9
Sun Jul 23, 2017 12:24 am
Forum: Investing - Help with Personal Investments
Topic: Re-allocating into 3-Fund Portfolio
Replies: 16
Views: 1806

Re: Re-allocating into 3-Fund Portfolio

80/20 is very aggressive for your age - if a drop like 2008-09 were to occur, you could easily wipe out 40% of your portfolio and would likely have to postpone retirement plans. As others have already stated, unless you have a large pension coming your way or you expect to be in the 33+% bracket for...
by mcraepat9
Sat Jul 22, 2017 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with allocation
Replies: 25
Views: 1558

Re: Help with allocation

The only thing I would add is that your husband's employer plan does not totally suck and has several excellent low-cost investment options (with a small match to boot). You would be crazy not to participate to the max.
by mcraepat9
Thu Jul 20, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Can anyone convince me I need international stock in my portfolio?
Replies: 162
Views: 8424

Re: Can anyone convince me I need international stock in my portfolio?

My takeaway from all of the information led me to invest internationally, but not at market weight. There are cons to investing internationally (i.e. higher expense ratios, higher taxes on dividends). The big pro is diversification. Vanguard's white paper suggests you can get the lion's share (~80%)...
by mcraepat9
Wed Jul 19, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Move FTABX (tax free bond) to mortgage?
Replies: 11
Views: 692

Re: Move FTABX (tax free bond) to mortgage?

The only thing you lose is liquidity. Obviously if something comes up and you need $25,000, if you have it in FTABX, you can sell that and use the proceeds. Once you've paid your mortgage, you can't get those funds back.
by mcraepat9
Tue Jul 18, 2017 6:57 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 220
Views: 17369

Re: Buying house - Very important decision

What are your concerns about re-sale value related to? The backyard, or something else? I thought that was strange as well. Why would you buy a house for a price that you cannot sell it for? By definition it would be an overpay - no? Here's the answer: They think the $535k house is so spectacular a...
by mcraepat9
Tue Jul 18, 2017 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Michigan 529 Question - Invest & Withdrawl
Replies: 6
Views: 443

Re: Michigan 529 Question - Invest & Withdrawl

Is there a Michigan income tax deduction? Michigan taxpayers may also be eligible for a Michigan income tax deduction on contributions made to MESP up to $10,000 for married couples filing jointly or $5,000 for individuals filing single per year. A Michigan taxpayer is permitted a deduction from Mi...
by mcraepat9
Tue Jul 18, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Michigan 529 Question - Invest & Withdrawl
Replies: 6
Views: 443

Re: Michigan 529 Question - Invest & Withdrawl

Hi All, I currently utilize the Michigan 529 (misaves), invested with TIAA. This TIAA 529 has done very well for my DD (college ready in 2020) and DS (college ready in 2024). I currently invest $10K annually split between the two children 529 accounts and take the full $10K max deduction from my Mi...
by mcraepat9
Tue Jul 18, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio why no international bonds.
Replies: 11
Views: 604

Re: 3 fund portfolio why no international bonds.

I guess this would be a question for Mr. Larimore but many on here also know I am sure. Why the 3 fund has not become the 4 fund by adding international bonds?? Have the international bonds not proven themselves? Would it just make the added fund more difficult to manage? Just not worth the hassle?...
by mcraepat9
Tue Jul 18, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio why no international bonds.
Replies: 11
Views: 604

Re: 3 fund portfolio why no international bonds.

1. extra expense
2. they are USD-hedged (so no currency exposure)
3. just no indication that diversification adds significant value in this asset class
4. simplification - the fewer funds, the better. Need a strong justification to add complexity.
by mcraepat9
Tue Jul 18, 2017 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Three funds in 401k to mirror Total World Index
Replies: 4
Views: 490

Re: Three funds in 401k to mirror Total World Index

My wife's 401k now offers a BlackRock International Index and BlackRock Russel 2500 Index. She is currently in the BlackRock S&P 500 index. What percentage of each fund will be close enough to mirror the Vanguard Total World Index? It doesn't have to be exact, just close enough or in the ball p...
by mcraepat9
Tue Jul 18, 2017 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4399

Re: Newbie and New Parent: Help w/ Retirement and 529

At mcraepat9: 2. I am making a 3% contribution to my 401k so I get the company match of 1.5%. Unfortunately my company only provides 1.5% at an employee contribution of 3%; no more. Then, I am maxing out my Roth IRA. I am not too experienced with 401ks, but I have an uneasy feeling maxing this out ...
by mcraepat9
Mon Jul 17, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale Question
Replies: 2
Views: 151

Re: Wash Sale Question

No you do not
by mcraepat9
Mon Jul 17, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4399

Re: Newbie and New Parent: Help w/ Retirement and 529

The Brexit move I think signals an urgent need to get a well thought out investment plan in place to prevent those types of moves in the future. Your proposed asset allocation makes sense. Now is the time to come up with a rock solid plan that works for you (through thick and thin) and stick with it...