Search found 2358 matches

by neurosphere
Mon Jul 24, 2017 7:36 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What Drives Municipal Bond Yields
Replies: 42
Views: 2985

Re: Larry Swedroe: What Drives Municipal Bond Yields

The article is silent on the big one to me, calls. Almost all munis are callable, treasuries never. So the buyer of a muni takes almost all the risk of rising interest rates and gets almost no benefit from falling interest rates. it's a great point.... Of course, those who hold munis in a rising ra...
by neurosphere
Sun Jul 23, 2017 6:13 am
Forum: Investing - Theory, News & General
Topic: Vanguard backdoor ROTH - Exchange vs Convert to Roth options
Replies: 18
Views: 2032

Re: Vanguard backdoor ROTH - Exchange vs Convert to Roth options

If I open a new tIRA and contribute $5,500, and then select "convert to Roth" next week the entire $5,500, does the tIRA still exist in my Vanguard account with a $0 balance? Or do I have to open a new tIRA to do this every year for a backdoor Roth? The TIRA will not disappear. It will re...
by neurosphere
Sun Jul 23, 2017 6:12 am
Forum: Investing - Theory, News & General
Topic: Vanguard backdoor ROTH - Exchange vs Convert to Roth options
Replies: 18
Views: 2032

Re: Vanguard backdoor ROTH - Exchange vs Convert to Roth options

This reminds me of one potential "gotcha" in the process for the inexperienced to watch out for, regarding taxes. At some point you will be asked about withholding. On two occasions now I've seen people who neglect to uncheck the box which asks to withhold some amount (I think it's 10%) fr...
by neurosphere
Wed Jul 05, 2017 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Invest or pay off >$200k Income Based (IBR) student loan?
Replies: 13
Views: 1732

Re: Invest or pay off >$200k Income Based (IBR) student loan?

A few points and questions. -- What's the interest rate on the student loans? I pay have missed it. -- Are you SURE she is not eligible for PAYE (instead of IBR), because the PAYE payments would be 1/3rd less than IBR, if minimizing payments is a goal. In addition, forgiveness occurs in 20 years, no...
by neurosphere
Tue Jul 04, 2017 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: irrevocable trust for children receiving an inheritance
Replies: 54
Views: 3991

Re: irrevocable trust for children receiving an inheritance

I'm surprised so many are so opposed. The grandchildren in question are all 10 and under. I've only briefly skimmed this thread so forgive me if I've missed something. Bobby (the trustee) can distribute all the assets from the trust. So suppose he does. The beneficiaries are minors, so the parents ...
by neurosphere
Tue Jul 04, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401k International Expense Ratio
Replies: 10
Views: 607

Re: Employer 401k International Expense Ratio

The question should be: what is the incremental cost for an extra unit of EM with a given investment plan. That number is the expense ratio. 0.88% is too high given the alternatives. I have a completely arbitrary number for this: 0.20% to 0.25% aka 20-25 basis points. If it costs me more than 25 ba...
by neurosphere
Tue Jul 04, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: High Income, High Debt, Low Life Expectancy
Replies: 21
Views: 4565

Re: High Income, High Debt, Low Life Expectancy

Is it too late to choose an extended graduated repayment payment plan on the student loans, assuming they are federal student loans? That plan puts you on a 25 year repayment schedule.
by neurosphere
Tue Jul 04, 2017 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401k International Expense Ratio
Replies: 10
Views: 607

Re: Employer 401k International Expense Ratio

EM should be about 20% to 25% of your international. Since international stocks are 20% of the portfolio, EM would be between 4% and 5% of your portfolio. I don't think having a fund with .88% ER in 4% to 5% of your portfolio will ruin an otherwise low cost portfolio. On the other hand, is having o...
by neurosphere
Tue Jul 04, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Help with Revocable Trust- Bloodline?
Replies: 14
Views: 527

Re: Help with Revocable Trust- Bloodline?

The real issue of Son with no kids passes( after we do) and had inherited his 50%, then is wife passes some time after, how can that 50% be passed to my grandkids who would be adults be then? My son gets a large sum. I would want him to use what he wants while he is still alive, but then what is le...
by neurosphere
Tue Jul 04, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Help with Revocable Trust- Bloodline?
Replies: 14
Views: 527

Re: Help with Revocable Trust- Bloodline?

Is there any way to insure that our inheritance going to our son can pass to our grandchildren in the event our son passes before his wife? I'm not an estate expert in any way, but I think this is a very common and very easy thing to do. It's simply a matter of changing the trust to put in the appr...
by neurosphere
Thu Jun 29, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Married But Filing Separately With IBR Student Loans
Replies: 5
Views: 386

Re: Married But Filing Separately With IBR Student Loans

To Neurosphere: By IBR, I meant income-based repayment. Ya I think I will need to learn how to do the backdoor Roth. Just to confirm, you certainly want PAYE (and not IBR) if you are eligible for PAYE and think you would benefit from filing jointly. Do you know for sure you are not eligible for PAY...
by neurosphere
Wed Jun 28, 2017 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Married But Filing Separately With IBR Student Loans
Replies: 5
Views: 386

Re: Married But Filing Separately With IBR Student Loans

Although I have seen some conflicting information online, the majority of it suggests that, if we file separately, only my wife's income is included in her student loan payment.... I am also keeping in my that we will have to recharacterize our 2017 Roth IRA contributions if we proceed in this mann...
by neurosphere
Wed Jun 28, 2017 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Married But Filing Separately With IBR Student Loans
Replies: 5
Views: 386

Re: Married But Filing Separately With IBR Student Loans

In general if you make similar income, but one of you has loans and you expect PSLF, then filing separately almost always wins. All you need to come out ahead is for the annual reduction in loan payments to be more than the extra tax you incur by filing separately. So select PAYE (if eligible, and i...
by neurosphere
Wed Jun 28, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: My risk tolerance suddenly went down
Replies: 30
Views: 4344

Re: My risk tolerance suddenly went down

I was laid off from a job unexpectedly. To be harsh....you're in great shape except you do not have the one thing you really need....an emergency fund. :oops: Or, to be more "optimistic" about it, the emergency fund just happened to be in the Roth and taxable. But perhaps was not optimall...
by neurosphere
Tue Jun 27, 2017 5:53 am
Forum: Personal Finance (Not Investing)
Topic: Early IRA withdrawal vs 401k loan for legal bills
Replies: 10
Views: 694

Re: Early IRA withdrawal vs 401k loan for legal bills

Thanks for the information and discussion everyone. In summary: Best choice, borrow the money from an institution like a bank or credit union; Next lesser of two evils, borrow from the 401(k) so you won't lose the tax advantage forever; Last choice, cash out the IRA and guarantee to lose a huge amou...
by neurosphere
Mon Jun 26, 2017 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Early IRA withdrawal vs 401k loan for legal bills
Replies: 10
Views: 694

Re: Early IRA withdrawal vs 401k loan for legal bills

We'd need to know if it's a traditional IRA or a Roth IRA. A Roth IRA lets one withdraw their contributions without penalty (aside from the hit on savings/planning, but this seems like a necessary loss for this isolated occurrence), whereas any early withdrawal from a traditional IRA prior to age 5...
by neurosphere
Mon Jun 26, 2017 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Early IRA withdrawal vs 401k loan for legal bills
Replies: 10
Views: 694

Early IRA withdrawal vs 401k loan for legal bills

Hi all, posting for friend. The short summary is this: Friend has legal bills from a recent divorce and ongoing custody disputes, and needs approx $20,000 in extra cash to get through the process (obviously a rough guess). Option 1) Take a distribution from an IRA and pay income taxes and 10% penalt...
by neurosphere
Fri Jun 16, 2017 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Employer overpaid me and now wants FICA credit acknowledgement form signed
Replies: 5
Views: 851

Re: Employer overpaid me and now wants FICA credit acknowledgement form signed

-- Were your earnings in the year of overpayment greater than the social security wage base? -- Did you get your Medicare tax back on the overpayment? -- The employer paid FICA tax on your behalf on the amount of the overpayment. Seems there is a mechanism for getting that back. This should not affe...
by neurosphere
Thu Jun 15, 2017 3:52 pm
Forum: Investing - Theory, News & General
Topic: Stock Market become safer as holding periods lengthen - Maybe just a bias
Replies: 49
Views: 4040

Re: Stock Market become safer as holding periods lengthen - Maybe just a bias

It is very simple. How could something that could drop by 50% anytime be safe? Do not let the expert destroy your common sense. KlangFool Over "long periods of time", my stock allocation may decrease to 30%. So my portfolio will only drop 15%. So the stock market does indeed get "saf...
by neurosphere
Thu Jun 15, 2017 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2041

Re: Walk me through a backdoor Roth?

We should note that anyone with enough earned income can do a backdoor Roth contribution, even if their income is well under the limit and they could just contribute directly to the Roth. Specifically, if you're in the phase out zone, it's likely simpler to do a full backdoor Roth rather than part ...
by neurosphere
Thu Jun 15, 2017 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2041

Re: Walk me through a backdoor Roth?

Neurosphere - I love your signature line: If you have to ask "Is a Target Retirement fund right for me?", the answer is yes. Ha, thanks! I've been using a version of that line in my financial presentations aimed at young accumulators for a while now. The idea being to just GET STARTED and...
by neurosphere
Thu Jun 15, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2041

Re: Walk me through a backdoor Roth?

You essentially have it correct. Some comments for you below in RED, in part for others who come across this thread who may have questions about the process. I'm currently researching backdoor Roths and what I understand so far on how this works is: 1. Open a Traditional IRA account. 2. Open a Roth ...
by neurosphere
Thu Jun 15, 2017 7:30 am
Forum: Personal Finance (Not Investing)
Topic: 5498 Forms: Wife got two forms, I got one form for identical backdoor Roth process
Replies: 8
Views: 578

Re: 5498 Forms: Wife got two forms, I got one form for identical backdoor Roth process

Despite expanding the form to the max, it is still hazy but Box 3 in which Roth conversions are to be reported appears to be 0. But it appears that you lined out Box 4, and if so you transferred the contribution as a regular Roth contribution by recharacterizing it, not converting it. If so, your M...
by neurosphere
Wed Jun 14, 2017 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: 5498 Forms: Wife got two forms, I got one form for identical backdoor Roth process
Replies: 8
Views: 578

Re: 5498 Forms: Wife got two forms, I got one form for identical backdoor Roth process

The two 5498 forms received by your wife is the norm, assuming that the contribution was done FOR 2016 and the conversion done IN 2016. For yours, it may be possible to have two entries on a 5498, but since one is a Roth conversion contribution, it would have to be clear that your Roth received a c...
by neurosphere
Wed Jun 14, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: 5498 Forms: Wife got two forms, I got one form for identical backdoor Roth process
Replies: 8
Views: 578

5498 Forms: Wife got two forms, I got one form for identical backdoor Roth process

Mildly curious about this. My wife and I each have traditional IRAs and Roth IRAs at Vanguard. Mutual fund accounts, not brokerage accounts. We both did a Backdoor Roth for 2016 in the identical fashion (or so I assume). My wife got one 5498 showing a contribution to the Traditional IRA, and a separ...
by neurosphere
Mon Jun 12, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: Ok reasons for a 37 year old to have a 60/40 mix?
Replies: 39
Views: 3841

Re: Ok reasons for a 37 year old to have a 60/40 mix?

I'm 45 years old with about a 65/35 stock/bond mix (depending on how you count high-yield bonds). I've had the identical allocation since I started investing at age 28. I'll probably keep this same allocation until a few years before retirement. So yes, it's "OK". As long as you know/under...
by neurosphere
Mon Jun 12, 2017 9:16 am
Forum: Personal Finance (Not Investing)
Topic: couple questions about SSA (67 vs 70) and breakeven points
Replies: 20
Views: 1740

Re: couple questions about SSA (67 vs 70) and breakeven points

thanks but does that mean the numbers I'm being given by SSA now will also be greater just due to inflation...even if my income stays the same from here to retirement? I'm not sure your question has been answered directly by others. Or rather, they have answered the question in ways which did not n...
by neurosphere
Mon Jun 12, 2017 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Advance career or take more time off in late 30s?
Replies: 15
Views: 1816

Re: Advance career or take more time off in late 30s?

I have a getaway property I share with my family a few states away and like to visit my aging parents that live in another state. I am at the crossroads between maximizing my career long-term (second employer) and/or sticking with my current employer for more time off and work/life balance. My curr...
by neurosphere
Mon Jun 12, 2017 8:12 am
Forum: Investing - Theory, News & General
Topic: Just When You Thought It Was Safe To Go Into The Water
Replies: 3
Views: 1150

Re: Just When You Thought It Was Safe To Go Into The Water

I had not heard of this until now. Here is some more information (http://www.morningstar.com/advisor/t/118587417/the-ins-and-outs-of-the-dol-s-best-interest-contract-exemption.htm) The Best Interest Contract Exemption (BICE) allows fiduciaries to receive variable compensation which ordinarily violat...
by neurosphere
Sun Jun 11, 2017 3:17 pm
Forum: Investing - Theory, News & General
Topic: Bogle Doubles Down on US Index Funds
Replies: 118
Views: 12525

Re: Bogle Doubles Down on US Index Funds

Discussions where we try to reach consensus on preferences are not fruitful. Except that it's illustrative to read threads about for WHICH topics a consensus is not reached. It reminds us all what issues may be "preferences" (e.g. international) vs. "settled questions" (e.g. fee...
by neurosphere
Sun Jun 11, 2017 3:15 pm
Forum: Investing - Theory, News & General
Topic: Bogle Doubles Down on US Index Funds
Replies: 118
Views: 12525

Re: Bogle Doubles Down on US Index Funds

For me, it's all about diversification, and only secondarily risk adjusted return. If US and international markets are tightly correlated over time, then all it costs me is perhaps a few extra basis points in fees to invest in international. But if the markets are not correlated, or if there are sig...
by neurosphere
Sun Jun 11, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Student loan debt, PSLF, planning for future
Replies: 37
Views: 2672

Re: Student loan debt, PSLF, planning for future

F150HD wrote: PSLF - So the forgiven amount, where does the $$ come from to pay 'that' back? nothing is 'free'. Someone pays for it.

It comes from the same place the scholarship which paid for my graduate training (in advance) came from. The federal government. :D

PSLF is a federal education program.
by neurosphere
Sun Jun 11, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: W4 exemptions question
Replies: 13
Views: 891

Re: W4 exemptions question

Hi everyone, I recently started a job last month and make approximately $2,500 a week Before taxes. I initially claimed "0" on my exemption to avoid owing $$ next year. However, I'm only clearing about $1,600/week. I started 1 month ago and they've withheld $3,250 in tax thus far. Does th...
by neurosphere
Sun Jun 11, 2017 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Student loan debt, PSLF, planning for future
Replies: 37
Views: 2672

Re: Student loan debt, PSLF, planning for future

$129,000 loans is a lot of debt but on $115,000 income it isn't insurmountable. $400 a month rent for next 2 years. Why not just buckle down and pay this off in 2 years while rent is so low. Then be done w/ it. Because then the OP is potentially giving up on $100,000+ of loan forgiveness. Consider ...
by neurosphere
Sun Jun 11, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Student loan debt, PSLF, planning for future
Replies: 37
Views: 2672

Re: Student loan debt, PSLF, planning for future

Sorry I'm late to see this, I've been busy at work. Thank you for that spreadsheet - it is excellent! You are very welcome. It has taken me many dozens of hours to create it and refine it in the time since REPAYE was created. It's still not as user friendly as I would like. I'm always pleased to he...
by neurosphere
Sat Jun 10, 2017 5:24 pm
Forum: Personal Consumer Issues
Topic: Help me choose an EXPENSIVE* red wine for a gift
Replies: 70
Views: 8264

Re: Help me choose an EXPENSIVE* red wine for a gift

neurosphere - It is now Friday. Before we digress into expensive white wines, how did your last day go? More importantly, what did you get your boss and what was his reaction? Hi all. Based on various opinion, PMs, etc. I narrowed down the original list of wines I posted to two: Lynch Bages, Pauill...
by neurosphere
Sat Jun 10, 2017 8:14 am
Forum: Personal Finance (Not Investing)
Topic: When is Municipal Bond Interest NOT "Tax-free"...
Replies: 15
Views: 1437

Re: When is Municipal Bond Interest NOT "Tax-free"...

Municipal bond interest is also included when income is calculated for Medicare premium tiers. As would be non-municipal bond interest. So there is nowhere to hide, really... Agreed. But given there is no where to hide, you may as well choose the bond which pays the most after-tax interest. And in ...
by neurosphere
Fri Jun 09, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Estimating Social Security Benefits
Replies: 9
Views: 654

Re: Estimating Social Security Benefits

Is the SSA calculator in today's dollars or inflation adjusted? For example, if I retire at 70 my benefit is estimated to currently be $3700 a month. More than I expected if that is indeed in today's dollars and not inflation adjusted. If you are referring to the anypia program, the program gives y...
by neurosphere
Fri Jun 09, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 2183

Re: Small tax refund or owing taxes?

So I worked through the AMT spreadsheet, saw where the addition was and realized all it was basically doing was adding back the income deducted on Schedule A and retaxing it as 26/28% and came to above conclusion. I just wish, with all the automated forms out there, somebody would have coded the si...
by neurosphere
Fri Jun 09, 2017 8:11 am
Forum: Investing - Theory, News & General
Topic: Why You Still Can’t Trust Your Financial Adviser
Replies: 54
Views: 5802

Re: Why You Still Can’t Trust Your Financial Adviser

Your response is correct and I would have to agree, meeting that many times in one year would be too much. What I was trying to illustrate were annual visits - although I didn't make that entirely clear, but none the less.... Ah, yes, I see. A series of annual visits. Sorry. Not several visits in a...
by neurosphere
Fri Jun 09, 2017 7:55 am
Forum: Personal Finance (Not Investing)
Topic: When is Municipal Bond Interest NOT "Tax-free"...
Replies: 15
Views: 1437

Re: When is Municipal Bond Interest NOT "Tax-free"...

Municipal bond interest is also included when income is calculated for Medicare premium tiers. As would be non-municipal bond interest. So there is nowhere to hide, really... Agreed. But given there is no where to hide, you may as well choose the bond which pays the most after-tax interest. And in ...
by neurosphere
Fri Jun 09, 2017 7:13 am
Forum: Investing - Theory, News & General
Topic: Why You Still Can’t Trust Your Financial Adviser
Replies: 54
Views: 5802

Re: Why You Still Can’t Trust Your Financial Adviser

After 4 or 5 annual visits to my doctor - prior to my 6th visit - doc notices an unusual pattern that he checks up on but digs into it a little deeper to find out there's an emergency...but it's something that can be fixed since we caught it in time...I'd gladly pay $5-$10k a year knowing that he's...
by neurosphere
Thu Jun 08, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 2183

Re: Small tax refund or owing taxes?

Personally, I prefer to owe state taxes, because I'm subject to the AMT. And I don't like having to calculate whether or not my state refund is taxable. Yeah, that's annoying, but a quick calculation: a state refund of less than your ~3x the AMT amount should mean your refund is not taxable. So unl...
by neurosphere
Thu Jun 08, 2017 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Choosing the right tax filing status (MFS vs MFJ) with giant student loan debt
Replies: 26
Views: 2060

Re: Choosing the right tax filing status (MFS vs MFJ) with giant student loan debt

Hey scud, just for fun (because it seems your question is answered), check out this beta version of an excel calculator I put up online: https://www.doctoredmoney.org/excel-embed-test You can enter your loans balances and weighted average interest rates and your current and projected AGI for up to ...
by neurosphere
Thu Jun 08, 2017 7:48 am
Forum: Personal Finance (Not Investing)
Topic: Tripped on this this morning - pros and cons? [HELOC as emergency fund]
Replies: 22
Views: 3492

Re: Tripped on this this morning - pros and cons?

Cons of relying on a HELOC for your emergency money: economy goes south and home values drop and the bank cancels your HELOC around the time you lose your job, which is why you needed the emergency fund in the first place.
by neurosphere
Wed Jun 07, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: Why You Still Can’t Trust Your Financial Adviser
Replies: 54
Views: 5802

Re: Why You Still Can’t Trust Your Financial Adviser

I have read so many threads here on BH in recent months of individuals who have been put in horribly inappropriate "investments" by their so called "financial planner", usually working for XXX (insert name of choice here) Life Insurance Company. Index annuities inside of Roth ac...
by neurosphere
Wed Jun 07, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Why You Still Can’t Trust Your Financial Adviser
Replies: 54
Views: 5802

Re: Why You Still Can’t Trust Your Financial Adviser

Coloring with such a broad brush is not entirely fair. Our FA's have done a good job for us over the long haul. We also have self-managed, low expense accounts. A lot of folks don't have the knowledge and capability to do that. And if a financial advisor encourages them to invest and keeps them fro...
by neurosphere
Wed Jun 07, 2017 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Married filing separately vs staying single for tax savings
Replies: 31
Views: 2491

Re: Married filing separately vs staying single for tax savings

There is no legal requirement to pay more tax than you otherwise would to prove your love and commitment to The State. The State just doesn't care and so neither should you. People often are skeptical when I suggest they may save on taxes by filing separately (it's rare, but it happens). I was once...
by neurosphere
Tue Jun 06, 2017 4:44 pm
Forum: Personal Consumer Issues
Topic: Suit for [medical] residency interviews
Replies: 57
Views: 3432

Re: Suit for residency interviews

I've heard to wear navy or charcoal. All of the different brands/options are more overwhelming than studying for boards. It's the biggest interview of my life, where do you guys recommend I get a suit? I'm thinking Dillards/Nordstrom/J Crew/etc....preferring in the $500 range. Wow, it seems there a...
by neurosphere
Tue Jun 06, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Bug in the online SS benefit calculator?
Replies: 17
Views: 1222

Re: Bug in the online SS benefit calculator?

So there's literally a delay in receiving Delayed Retirement Credits. Does anyone know which number is reported in the Online Social Security Statement as the estimated monthly payment at age 70: the initial first year, or the final next year? Either way, this must generate a lot of phone calls. He...

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