Search found 261 matches

by panhead
Mon May 14, 2018 8:50 am
Forum: Personal Consumer Issues
Topic: Is there a boglehead muscle car?
Replies: 129
Views: 6137

Re: Is there a boglehead muscle car?

I rented a camaro ss convertible for a month and loved it, so if I was going new(er) I'd look into one of these. I love the challengers, but I'm a convertible guy. My personal preference is the "real" musclecars from that era (American models, 60s to early 70s) and is what I personally own. The ones...
by panhead
Fri May 04, 2018 8:43 am
Forum: Investing - Theory, News & General
Topic: Help me understand the "25x/30x cost of living" retirement goal numbers?
Replies: 17
Views: 1791

Re: Help me understand the "25x/30x cost of living" retirement goal numbers?

And I agree with the comment about planning to replace your take home pay from your job. In most cases, this will provide padding for irregular expenses... If you do as Klangfool suggests and auto invest everything you don't spend (or allow yourself to spend), then this is exactly correct, and is w...
by panhead
Wed Apr 18, 2018 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 7050

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Here is where the thread title gets it wrong as written, although the sentiment may be correct. Once a person reaches the point at which any more traditional contributions will incur withdrawal tax at the same rate of current tax saving, traditional contributions have no advantage over Roth. Agreed...
by panhead
Wed Apr 18, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 7050

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Looking at the tables below, if you are in the 35% tax bracket while working even after all of your pre-tax contributions to your retirement accounts, then every dollar was deferred at the 35% rate. If all of your income at retirement is coming from this deferred account, then you start at the bott...
by panhead
Wed Apr 18, 2018 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 7050

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Here is where the thread title gets it wrong as written, although the sentiment may be correct. Once a person reaches the point at which any more traditional contributions will incur withdrawal tax at the same rate of current tax saving, traditional contributions have no advantage over Roth. Agreed...
by panhead
Tue Apr 17, 2018 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct Bug with multiple state returns
Replies: 0
Views: 266

TaxAct Bug with multiple state returns

This is a bit late but I just found a bug while helping a friend do his return. Initially, I did two returns, one for myself and one for a friend. We both live and work in the same state so we used the same state module. The returns were completed and filed. I later did a return for a friend who liv...
by panhead
Tue Apr 17, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 8678

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Background : * Assume that you have $3,000,000 invested, with $2,275,000 in a taxable account and $725,000 in a mix of IRAs (Roth, Traditional, and Rollover) and a 401k. * Assume that your total portfolio is invested 40% Total Stock Market, 10% Total International Stock Market, 23% in Intermediate ...
by panhead
Tue Apr 17, 2018 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 7050

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Looking at the tables below, if you are in the 35% tax bracket while working even after all of your pre-tax contributions to your retirement accounts, then every dollar was deferred at the 35% rate. If all of your income at retirement is coming from this deferred account, then you start at the botto...
by panhead
Mon Apr 09, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Cash flow problems - best way to handle?
Replies: 134
Views: 8223

Re: Cash flow problems - best way to handle?

There's one thing I haven't seen brought up yet, can you see if you can re-cast (google it) your mortgage with your current lender? This is often a suggestion on this forum. It could possibly lower your monthly payments. Since you are in a HCOL area, the 100k equity in your house might only be 10% (...
by panhead
Thu Mar 29, 2018 12:01 pm
Forum: Personal Consumer Issues
Topic: Toyota truck frame replacement program
Replies: 23
Views: 3157

Re: Toyota truck frame replacement program

I'm probably a bit late to the party but if you had a standard transmission I'd have em replace the clutch, pressure plate, and throwout bearing while it's right there. I had an older Tacoma when they were doing the buyout offers (150% of list). I jumped on that! Good luck, I'm sure it'll be fine, t...
by panhead
Thu Mar 22, 2018 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Maxed 401k and Roth IRA questions
Replies: 44
Views: 2074

Re: Maxed 401k and Roth IRA questions

I'll throw out my $0.02 here as well, but remember what you paid for it! At 30 years old, we have no idea what the landscape will look like in 32 more years, including whether or not your pension will be there. This being the case, there is no point in trying to be exacting in what you do. So, If I...
by panhead
Thu Mar 22, 2018 7:13 am
Forum: Investing - Help with Personal Investments
Topic: Moving bonds to 100% municipal, free up 401k
Replies: 5
Views: 565

Re: Moving bonds to 100% municipal, free up 401k

If you put all of your growth into a traditional 401k, you will eventually withdraw these funds at your marginal rate. RMDs at 70 will see to this. There is of course the possibility that if you retire early you will have enough low income years to move much or all of this into Roth, but with a lot ...
by panhead
Thu Mar 22, 2018 7:03 am
Forum: Investing - Help with Personal Investments
Topic: Maxed 401k and Roth IRA questions
Replies: 44
Views: 2074

Re: Maxed 401k and Roth IRA questions

I'll throw out my $0.02 here as well, but remember what you paid for it! At 30 years old, we have no idea what the landscape will look like in 32 more years, including whether or not your pension will be there. This being the case, there is no point in trying to be exacting in what you do. So, If I ...
by panhead
Tue Mar 20, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Worth it to Amend incorrect CPA prepared tax returns?
Replies: 34
Views: 2344

Re: Worth it to Amend incorrect CPA prepared tax returns?

Just wanted to bump this thread one more time to say thanks yet again to everyone who helped me through my multiple issues with my CPA and my tax situations of the past. I bought the desktop version of 2017 taxact for home and business and was able to my partnership as well as my personal taxes. I t...
by panhead
Mon Mar 19, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Post-Tax 401k vs. Taxable Account
Replies: 8
Views: 1069

Re: Post-Tax 401k vs. Taxable Account

Panhead - A couple questions if you and Stewie don't mind. Just trying to clarify this in my brain. You pay the taxes on the earnings when they are moved to the traditional IRA, correct? Then the traditional IRA can be rolled into the "normal" part of the 401k (not back to after-tax part)? The way ...
by panhead
Mon Mar 19, 2018 6:57 am
Forum: Investing - Help with Personal Investments
Topic: Post-Tax 401k vs. Taxable Account
Replies: 8
Views: 1069

Re: Post-Tax 401k vs. Taxable Account

One more question though, if I may. Is there a particular reason you chose September? I guess I'm wondering what is the best time of year...does it matter when the funds were contributed vs. when they actually end up in the Roth? September was completely arbitrary. I can only do the transfer once a...
by panhead
Sat Mar 17, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Post-Tax 401k vs. Taxable Account
Replies: 8
Views: 1069

Re: Post-Tax 401k vs. Taxable Account

Questions: It’s amazing how far I’ve come in a few years thanks to the advice I received on this site. 3 years ago, I thought that maxing out a 401k on my relatively low salary would be impossible. Turns out, it isn’t. Now my question is what to do with extra money since I am maxing out. My goal is...
by panhead
Sun Mar 11, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth for someone who makes less than threshold
Replies: 6
Views: 708

Re: Backdoor Roth for someone who makes less than threshold

FactualFran wrote:
Fri Mar 09, 2018 4:53 pm
The new tax law removed the option of being able to recharacterize a Roth IRA Conversion. The option to recharacterize a Contribution (not due to a Roth conversion) remains.
This is very interesting, thank you for this clarification.

-Pan-
by panhead
Fri Mar 09, 2018 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth for someone who makes less than threshold
Replies: 6
Views: 708

Re: Backdoor Roth for someone who makes less than threshold

FactualFran wrote:
Fri Mar 09, 2018 2:43 pm
Another common corrective transaction is to recharacterize to a traditional IRA by the due date of the tax return the contribution and the return attributed to it while it was in a Roth IRA.
I believe the new tax law prohibits this now, or at least for any tax year beyond 2017.
by panhead
Fri Mar 09, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: What steps to take as I get close to my number?
Replies: 20
Views: 2375

Re: What steps to take as I get close to my number?

I will hit my number (33x expenses) in 3 years (age 55). I've been so focused on working and saving, that I have not given a lick of thought to what do I do when I hit my number. I feel I should be thinking about that now. Are there any books or fora that discuss this topic? Any advice on how to pl...
by panhead
Mon Mar 05, 2018 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401(k) to Roth IRA?
Replies: 17
Views: 963

Re: After tax 401(k) to Roth IRA?

1) The better way to do this is a custodian to custodian transfer where the check(s) are made out to the institutions that hold your roth and/or tIRA, fbo Hef. If you just requested a check from the after-tax subaccount made out to you, I'm not sure how that works to get it into the IRA(s) The chec...
by panhead
Mon Mar 05, 2018 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401(k) to Roth IRA?
Replies: 17
Views: 963

Re: After tax 401(k) to Roth IRA?

Everything I read says I should have gotten two checks and contributed the ten dollars to my IRA and the $8,000 to the Roth IRA. I did not get two checks and, more importantly, I have already maxed out my $6,500 contribution to my IRA (and back-doored this into my Roth IRA). Any suggestions? Hef Th...
by panhead
Tue Feb 27, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct mishandles tax-exempt OID
Replies: 12
Views: 573

Re: TaxAct mishandles tax-exempt OID

In the desktop version of TaxAct, the entry area for form 1099-OID asks me for "other information" not on the form and asks "income reported in box 11 which is also exempt from state tax". I assume there would be a similar question if going through the interview process rather than direct forms ent...
by panhead
Mon Feb 12, 2018 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Lower Payroll Withholding - What are you doing with it?
Replies: 32
Views: 2457

Re: Lower Payroll Withholding - What are you doing with it?

I took the additional amount in my paycheck and changed my w4 to put this amount in "additional withholding" as I pay quarterlies and will still need to do so in 2018. How's that for boring?
by panhead
Thu Jan 25, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Your bond allocation when you were 48
Replies: 125
Views: 6425

Re: Your bond allocation when you were 48

1nv3s70r wrote:
Wed Jan 24, 2018 11:06 pm
Outlier here.. 55/45... roughly age in bonds :)

I'm in your camp: 50/50
by panhead
Tue Jan 23, 2018 3:16 pm
Forum: Personal Consumer Issues
Topic: Tax preparation amount charged
Replies: 16
Views: 1323

Re: Tax preparation amount charged

It is not that hard to find a good CPA if you are willing to pay to the north of $1,000 for more than tax prep. Just because you paid a lot does not mean they are good. One needs a metric, and this is where it gets difficult. If your metric is not being audited, then that's a very low bar and you s...
by panhead
Tue Jan 23, 2018 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 38
Views: 5418

Re: Rule of 55 is it official?

The way I interpreted this rule as: if you're loyal and stick with a company till age 55 and have a sizeable 401k grown with it, then as a "reward" you can quit at age 55 and use that 401k without penalty (aside from the withdrawals counting as income). [ but sometimes there is bad luck and company...
by panhead
Tue Jan 23, 2018 8:00 am
Forum: Personal Consumer Issues
Topic: Tax preparation amount charged
Replies: 16
Views: 1323

Re: Tax preparation amount charged

As you mention, if you are not willing to educate yourself, or just plain nervous ---pay to have them done. My EAs charged 350-500. When it hit the $500 amount I said, OK, I am going to educate myself. I used Turbo Tax last year and carefully reviewed all my EA returns for the past two years. I thi...
by panhead
Fri Jan 19, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: The wisdom of buying a car that doesn't depreciate (much)
Replies: 36
Views: 6085

Re: The wisdom of buying a car that doesn't depreciate (much)

Original Hemi Roadrunner, 65 Mustang Fastback, Austin Healey Mkiii, etc.. . . As "brodude" so aptly said, we get to enjoy our ride for awhile then pass it on at even, gain, or a small loss.. . . . . . . You and I have the same tastes! I love the muscle cars and I have always wanted an MK3000 just h...
by panhead
Wed Jan 17, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Lost Job. Retirement/Portfolio Advice
Replies: 46
Views: 4633

Re: Lost Job. Retirement/Portfolio Advice

I will not have the earning power and retirement benefits that I had. Worked hard and have lived frugally for 30 years. Worried sick. Average monthly expenses: $2000.00 Current portfolio Total: approximately $3.5 mil I think these are the relevant parts of your post. The bottom line is that you hav...
by panhead
Tue Jan 16, 2018 7:41 am
Forum: Investing - Theory, News & General
Topic: Reconciling thoughts on Investing Vs Paying down mortgage
Replies: 15
Views: 2061

Re: Reconciling thoughts on Investing Vs Paying down mortgage

I If you have a portfolio with a 7% return it makes no sense to use your incremental capital to pay down a mortgage that costs 2.75% or 3.5% . Starting with this assumption makes your argument for you, but it's just an assumption. Anyone would agree that if you have something giving you an (almost)...
by panhead
Mon Jan 15, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for multiple sets of eyes to review
Replies: 51
Views: 4836

Re: Looking for multiple sets of eyes to review

Was mortgage interest deduction on a primary residence banned with the new law? Nope, you can still deduct $750,000. And 100% of mortgage interest is deductible on rental properties. No, mortgage interest wasn’t banned, but in order to take it you have to itemize. This person is making about $60k/y...
by panhead
Mon Jan 15, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for multiple sets of eyes to review
Replies: 51
Views: 4836

Re: Looking for multiple sets of eyes to review

Paying off a house note by adding additional principle payments is almost always a terrible idea. Paying off a house note in this very low interest rate environment is necessarily a terrible idea. The rate of return from home equity i always zero. Get that money to work better for you. Just a quick...
by panhead
Thu Jan 11, 2018 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Buy bonds until market correction
Replies: 28
Views: 2703

Re: Buy bonds until market correction

+1. I've also had to throw all new investable funds at bonds as well. I don't necessarily "like" doing that based on all the discussion of falling bond prices, but I did the same a couple years back with international equities and was handsomely rewarded. Sames goes for REITs before that. Moral of ...
by panhead
Thu Jan 11, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Buy bonds until market correction
Replies: 28
Views: 2703

Re: Buy bonds until market correction

Well, sort of. I am always investing on an automated plan. It's a good moment to invest because I'm in accumulation mode. As for what I'm investing in, the bull market has thrown my asset allocation out of whack. Not enough to trigger rebalancing, but it's getting closer. Therefore, I'm only contri...
by panhead
Tue Jan 09, 2018 10:08 am
Forum: Personal Consumer Issues
Topic: Question regarding forced hot water system
Replies: 19
Views: 1060

Re: Question regarding forced hot water system

I live on Cape Cod and always worry about freezing pipes in my home when I leave for Florida for several weeks during the winter time. It got pretty cold this past weekend and I had a neighbor keep checking for frozen pipes. We did lose power for about 12 hours or so but no damage resulted. I thoug...
by panhead
Thu Dec 28, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 10675

Re: [Pass-Thru Entities Questions Thread]

Hello Folks, I’ve been following this site and learning from BHs for years now but have never posted on the forum… until today. I am hoping someone can clarify how this new pass-thru income deduction applies to my specific situation and whether or not I need to modify my small business structure. I...
by panhead
Thu Dec 28, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Miata as second car
Replies: 94
Views: 4482

Re: Miata as second car

I am a huge gearhead, and I love jeeps too. I have an early CJ and a couple of musclecars plus a motorcycle so you will get plenty of understanding from me! That being said, I completely agree with this: [Paying cash for an unneeded car while having 6.25% on a home is equivalent to having a 6.25% ca...
by panhead
Thu Dec 28, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: CNBC quotes IRS on terms of deductibility of prepaid property taxes
Replies: 79
Views: 6073

Re: CNBC quotes IRS on terms of deductibility of prepaid property taxes

I'm in Mass and prepaid my property tax only to determine that I also am in AMT land so it was pointless. So, if I've paid them in 2017 but I don't deduct them in 2017, can I still deduct them in 2018 if it is useful? No. You're a cash basis taxpayer. You can only deduct taxes in the year you pay t...
by panhead
Thu Dec 28, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: CNBC quotes IRS on terms of deductibility of prepaid property taxes
Replies: 79
Views: 6073

Re: CNBC quotes IRS on terms of deductibility of prepaid property taxes

I'm in Mass and prepaid my property tax only to determine that I also am in AMT land so it was pointless. So, if I've paid them in 2017 but I don't deduct them in 2017, can I still deduct them in 2018 if it is useful?
by panhead
Tue Dec 26, 2017 3:25 pm
Forum: Personal Consumer Issues
Topic: manual car for new teen driver
Replies: 143
Views: 7580

Re: manual car for new teen driver

Once the driver's license is obtained, there is then little or no incentive to learn a manual transmission. I am showing my age, but (not in my home state) many years ago I think some states had indicators or restrictions on drivers licenses relating to manual or automatic transmissions. Maybe some...
by panhead
Thu Dec 21, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4694

Re: Taxable vs. Tax Deferred - not much difference?

The point I think gets missed is that if you are contributing to tax deferred entirely out of, say the 33% bracket and your are in the 33% tax bracket during withdrawal, this is still a win as the effective rate is lower than 33%, and no dollar is being taxed higher than 33%. Now add a pension, Rot...
by panhead
Thu Dec 21, 2017 8:11 am
Forum: Investing - Theory, News & General
Topic: There is one scenario where taxable > Roth
Replies: 7
Views: 1102

Re: There is one scenario where taxable > Roth

What you did was not better than a Roth. All you did was offset gains with a loss but the loss now has a reset basis which just kicks the tax can down the road. The fund that you sold at a loss will now have a larger potential tax in the future unless your tax rate when you sell it in the future is...
by panhead
Thu Dec 21, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4694

Re: Taxable vs. Tax Deferred - not much difference?

I think we are in fundamental agreement but are looking at opposite sides of the same coin. When the withdrawal marginal rate is less than the contribution marginal rate, we all agree (because the effective rate will be even lower than the marginal rate) that traditional contributions are correct. T...
by panhead
Wed Dec 20, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4694

Re: Taxable vs. Tax Deferred - not much difference?

What is your marginal tax bracket? What tax bracket to you plan to be in when you retire? The nice thing about 401k (and other deferred vehicles) is that they reduce your taxes at your marginal rate. So if you are in the 33% bracket, You are saving $330 in taxes for each $1000 you invest as long as...
by panhead
Wed Dec 20, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 12 month CD now 2.00%
Replies: 64
Views: 13736

Re: Ally CD Special

Just in case anyone has missed it, Ally has a 12 month CD Special for 2 percent yield on a 12 month certificate.Looks as though it's only going to be open for a few days, so act now if you're interested. Only a $5,000 minimum too. :sharebeer Thanks for the info! When looking at it while logged into...
by panhead
Thu Dec 14, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Reached 50X annual spending. Now what?
Replies: 56
Views: 6645

Re: Reached 50X annual spending. Now what?

At 50x any reasonable portfolio would have dividends & interest that would pay all of your expenses and likely a bit more, so your AA isn't so critical. The suggestions above are all reasonable. I'm younger and am almost at 33x spending and I'm sitting at 50/50. This is my "I don't know nuthin" port...
by panhead
Wed Dec 13, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4694

Re: Taxable vs. Tax Deferred - not much difference?

Also, a big part of this is if your employer has a match. It's almost impossible to argue against investing enough to get the match in such a plan, unless you don't like free money. As a last point, if you have a workplace 401k, its hard to beat how easy it is to invest. Set your contribution rate ...
by panhead
Wed Dec 13, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4694

Re: Taxable vs. Tax Deferred - not much difference?

What is your marginal tax bracket? What tax bracket to you plan to be in when you retire? The nice thing about 401k (and other deferred vehicles) is that they reduce your taxes at your marginal rate. So if you are in the 33% bracket, You are saving $330 in taxes for each $1000 you invest as long as ...