Search found 1034 matches

by rai
Wed Jan 18, 2017 10:33 pm
Forum: Investing - Help with Personal Investments
Topic: Still Struggling to Understand How Bonds Work
Replies: 10
Views: 984

Re: Still Struggling to Understand How Bonds Work

There's a simple book I've read 'why bother with bonds'

It's a short read $5.99 on Amazon https://www.amazon.com/gp/aw/d/B00PL7WS ... 8&qid=&sr=
by rai
Sat Jan 14, 2017 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Pay off HELOC instead of having an EF?
Replies: 11
Views: 700

Re: Pay off HELOC instead of having an EF?

Thanks for the replies. I figured that paying off the LOC would be better than saving cash in a 1% savings account. For the rest of the story, my home is paid off completely. I pay more than interest, interest is like $300/month and I pay $600. I figured that, now I'll look at paying $1300-$2000/mon...
by rai
Fri Jan 13, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off HELOC instead of having an EF?
Replies: 11
Views: 700

Re: Pay off HELOC instead of having an EF?

Heloc is 100k and stocks are 1M+ Guess I did borrow for stocks since I bought enough stock in the last 5 years could have retired the loan but have gained 10% return above the loan rate. Probably 13% return vs 3% interest My HELOC Interest only is $3600/year and my qualified dividends are $18k/year ...
by rai
Fri Jan 13, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off HELOC instead of having an EF?
Replies: 11
Views: 700

Pay off HELOC instead of having an EF?

Currently I have zero cash in EF My cash flow is strong, I have enough in my non retirement fund (stocks) to last for years but it's all stock. In other words my non-retirement fund is my EF I have a HELOC that's 3% but floats with the prime so it'll go up as the interest rate goes up. My thought is...
by rai
Fri Jan 13, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Why Should Bonds be Held in Qualified Accounts?
Replies: 5
Views: 371

Re: Why Should Bonds be Held in Qualified Accounts?

39.6 % income/short term gains
Vs
20% qualified dividends or LT cap gains

Note that's maximum rate in the US
by rai
Wed Jan 11, 2017 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Owning Only The Total Stock Market Index
Replies: 14
Views: 2426

Re: Owning Only The Total Stock Market Index

Ok on all stocks but I'd say international will at some time outpace US returns and since I don't know when it's best to buy International before it goes on a tear. I like to cover all the bases like so 50% US 25% I 25% Bonds every dog has its day. Currently the US may over bought or expensive (high...
by rai
Wed Jan 11, 2017 9:59 am
Forum: Investing - Theory, News & General
Topic: Outliving your savings - pessimistic news
Replies: 21
Views: 3649

Re: Outliving your savings - pessimistic news

What's causing this short-livedness? Just terrible health culture? Am I okay if I eat right and exercise or is there something in the air? The US is a melting pot and various races have a much lower life expectancy https://www.google.com/amp/s/amp.businessinsider.com/huge-racial-gap-in-life-expecta...
by rai
Tue Jan 10, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 11998

Re: How Bad was 2008, really?

2008-9 was a great time to harvest loses which I had in abundance, I didn't pay gains for YEARS after (in spite of me selling options, which is a bad habit I'm trying to kick)
by rai
Tue Jan 10, 2017 11:23 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 11998

Re: How Bad was 2008, really?

Without getting into political talk, I have to wonder how much of the recovery has been off the back of the US debt and (maybe other countries as well)? I don't understand the mechanism of how the US (and the rest of the world governments stepped in), but I see Trillions back in the Stock market (po...
by rai
Tue Jan 10, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 11998

Re: How Bad was 2008, really?

it really does depend on how old you are (as well as how much you have to lose). If someone had $100K and lost 50% that's no big deal especially if you are 30 years old. If someone is 50 years old and had $4M and lose 50% that's $2,000,000. On some days you'd see a loss of $200K+ (for example) and t...
by rai
Tue Jan 10, 2017 10:22 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 11998

Re: How Bad was 2008, really?

Actually it was very bad IMO. at the time companies like Bear Stern and Lehman Bros went bankrupt overnight. Companies like GM or Citibank etc. We didn't know what was going to happen. Here is Citibank stock going from $57 in 2006 down to $.97 (thats right 97 cents). I had bought Citi (not a lot) bu...
by rai
Sat Jan 07, 2017 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Short-Term Bond Index Fund Question
Replies: 25
Views: 1950

Re: Vanguard Short-Term Bond Index Fund Question

You don't have to do it this way, but the concept I just laid out is one part of our wiki article Placing cash needs in a tax-advantaged account . PJW hi, I have a question about taxes. Since we are talking about saving money (ie. we put the safe non volatile assets that throw off 'short term' inco...
by rai
Sat Jan 07, 2017 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: 500K milestone celebration
Replies: 74
Views: 6997

Re: 500K milestone celebration

save $12K/mo, you have a rather impressive paycheck. iirc he started out with $40K and the market has gone UP these past several years. It's more likely they saved $9K/mo could be more depending on AA and if there were taxes. these past 4 years (s&p500) has been up 2013 32% 2014 13% 2015 1.4% 2...
by rai
Sat Jan 07, 2017 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: 500K milestone celebration
Replies: 74
Views: 6997

Re: 500K milestone celebration

congrats :sharebeer I've been investing/saving now almost 20 years had my share of ups and downs. It's really great to hear these encouraging stories. Important to note that we have been in a strong bull market for stocks these past several years. Keep at it, and realize that if you should ever fall...
by rai
Wed Jan 04, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Dilemma: bonds, cash or 100% stocks for now in present climate?
Replies: 55
Views: 4934

Re: Dilemma: bonds, cash or 100% stocks for now in present climate?

Yohanson wrote:
In the grand scheme of things, this was an excellent buying opportunity.

Yes but at the time and during the Great Recession it was not so obvious we'd be at DOW 20k so quickly.
by rai
Tue Jan 03, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Dilemma: bonds, cash or 100% stocks for now in present climate?
Replies: 55
Views: 4934

Re: Dilemma: bonds, cash or 100% stocks for now in present climate?

here is another chart, Black Monday 1987 the Dow fell 22% in one day. I believe in 20 days-ish it fell almost 35%

Image
by rai
Tue Jan 03, 2017 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Dilemma: bonds, cash or 100% stocks for now in present climate?
Replies: 55
Views: 4934

Re: Dilemma: bonds, cash or 100% stocks for now in present climate?

Bonds are a bit difficult to understand, and like some have said maybe they are not always needed. There is more than one way to skin a cat. But IMO better off being diversified, meaning US stock, Internationals and US bonds. I know Internationals are not doing much now, but when they do come around...
by rai
Tue Jan 03, 2017 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Dilemma: bonds, cash or 100% stocks for now in present climate?
Replies: 55
Views: 4934

Re: Dilemma: bonds, cash or 100% stocks for now in present climate?

I have not read all the replies here but there is a few things I'd like to point out. Although it seems counter intuitive, I believe having *some* bonds is beneficial besides helping you sleep at night. I think there have been studies showing *some bonds* improves returns. Myself at 51 years old hav...
by rai
Tue Jan 03, 2017 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Fund 4% Minimum in Pension
Replies: 4
Views: 230

Re: Corporate Bond Fund 4% Minimum in Pension

I can't see how there is a guaranteed return on the bond fund, does this mean 4% dividend? Likely there is a not a magic fund that can guarantee 4% without any risk of loss. I mean, the dividend may be 4% but they might have to take out some of the principle value. to me, these nebulous funds that w...
by rai
Wed Dec 28, 2016 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: where to place money that I'll need for taxes?
Replies: 10
Views: 517

Re: where to place money that I'll need for taxes?

The income tax system is "pay-as-you-go", so if you don't reach one of the "safe harbors" by withholding, you will need to make estimated tax payments starting in the quarter when you realize the income. Since this income will occur in January, that would be the first quarter of...
by rai
Wed Dec 28, 2016 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: where to place money that I'll need for taxes?
Replies: 10
Views: 517

Re: where to place money that I'll need for taxes?

I guess its premature, need to see the specifics, didn't know the taxes would be due the quarter they are incurred. If you're a DIY type you could do worse than start here form 1040ES . If you want or have a professional tax advisor be aware that first quarter 2017 estimated taxes are due the same ...
by rai
Wed Dec 28, 2016 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: where to place money that I'll need for taxes?
Replies: 10
Views: 517

Re: where to place money that I'll need for taxes?

Generally, such taxes would be more or less due in the quarter they are incurred, so you got your safe harbors covered? If my net worth was a lot, then I would just invest the money in my asset allocation. If things went up, Great! More taxes! If things went down, so what? More tax-loss harvesting!...
by rai
Wed Dec 28, 2016 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: where to place money that I'll need for taxes?
Replies: 10
Views: 517

Re: where to place money that I'll need for taxes?

I guess CD pays more than a one year bond.
by rai
Wed Dec 28, 2016 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Holding ETFs for the long term?
Replies: 3
Views: 543

Re: Holding ETFs for the long term?

IDK but to me, I think ETFs are fine/interchangeable with MF, I am talking strictly VG ETFs. I believe ETFs are cheaper (can be depending on share class) and to me, I'd rather get the dividends paid as cash and then I use that to rebalance rather than getting it all reinvested in the MF but thats ju...
by rai
Wed Dec 28, 2016 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: where to place money that I'll need for taxes?
Replies: 10
Views: 517

where to place money that I'll need for taxes?

This is a preliminary question, but I think that will be receiving a buy out in January. Its actually a stock that I own that will be bought out by another company, but I will be paid in cash (I am not sure but I imagine that taxes will not be withheld). So, I will have around $50K tax liability tha...
by rai
Wed Dec 28, 2016 12:08 pm
Forum: Personal Consumer Issues
Topic: Best shows to see while in Vegas
Replies: 28
Views: 2150

Re: Best shows to see while in Vegas

Love was great, O as well.

I lived Brittany Spears show as well.

Wanted to see Penn and Teller but they were out of town when I was there. Saw Brad Garrett once, was very funny.
by rai
Fri Aug 26, 2016 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to get rid of sizable stock holding in 401K
Replies: 9
Views: 556

Re: Best way to get rid of sizable stock holding in 401K

No way to predict, it could go up 10% or down 10% or more either way. Likely you'll be mad/sad if you miss out on a fortune by selling it all at once but glad if you sell it before a steep loss.

I'd likely sell 25% now and so on for the next few weeks/months.
by rai
Fri Aug 26, 2016 11:06 am
Forum: Investing - Theory, News & General
Topic: "How to Tell if Your Retirement Nest Egg Is Big Enough"
Replies: 61
Views: 14082

Re: "How to Tell if Your Retirement Nest Egg Is Big Enough"

Thanks for posting, how does this article pertain if you have not yet won the game? For example: 50 years old (with 10-15 years from retirement - flexible) and maybe 50-60% of what I'd like to have at retirement?
by rai
Mon Aug 15, 2016 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Margin vs credit card
Replies: 4
Views: 350

Re: Margin vs credit card

Sounds ok to me.
by rai
Tue Jul 26, 2016 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Planning for the "new normal": how?
Replies: 49
Views: 5552

Re: Planning for the "new normal": how?

Interesing question, reminds me of the famous quote from Helmuth Von Moltke the elder paraphrased "No plan survives contact with the enemy" What that means is that when we are saving for retirement we are plnaning a war of sorts and we don't know how it'll unfold until we are in retirement...
by rai
Wed Jul 06, 2016 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Can long term losses be used to offset ST gains?
Replies: 7
Views: 582

Re: Can long term losses be used to offset ST gains?

Thanks it's so complicated. But it's nice to see LT loss can offset ST gains which is my biggest issue, I don't want to be hit with ST gains at m y tax bracket if I can help it.
by rai
Wed Jul 06, 2016 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Can long term losses be used to offset ST gains?
Replies: 7
Views: 582

Re: Can long term losses be used to offset ST gains?

thanks again, never thought I'd say this but I'm loving my losses.
by rai
Wed Jul 06, 2016 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Can long term losses be used to offset ST gains?
Replies: 7
Views: 582

Re: Can long term losses be used to offset ST gains?

livesoft wrote:Yes. After the match up, whatever is leftover still gets to offset. You can see this happening on your tax return.

I believe margin interest is deductible on Schedule A.

thanks, does stock loss offset gains from option trading (which is classified as ST gains)?
by rai
Wed Jul 06, 2016 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Can long term losses be used to offset ST gains?
Replies: 7
Views: 582

Can long term losses be used to offset ST gains?

I'm a bit confused with this and want to make sure in advance because I will be selling some stocks to make a purchase and don't want to be hit overly with ST gains. I know that first gains will be matched so that LT losses will offset LT gains and ST losses will offset ST gains. But the leftover LT...
by rai
Fri Jul 01, 2016 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Does my high tax bracket shield me from AMT?
Replies: 4
Views: 880

Re: Does my high tax bracket shield me from AMT?

Thanks, I don't use tax software, but I'll look at the fed web site. Earlier I was not at home so I didn't have access to my 2015 tax information. But my effective tax rate is like 32% so not any way that an additional $12K or $24K of extra deductions would push me close to the top AMT tax rate. I g...
by rai
Wed Jun 29, 2016 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Does my high tax bracket shield me from AMT?
Replies: 4
Views: 880

Does my high tax bracket shield me from AMT?

Myself and wife both are high earners putting us firmly into the top tax bracket 39.9% In the past we were hit with AMT but of late we have not, I believe because of the new tax rates or after the Bush tax cuts expired pushed us out of the AMT since our taxes were so much higher than under the old t...
by rai
Wed Jun 22, 2016 4:24 pm
Forum: Personal Consumer Issues
Topic: House hunting, tips and why do people list houses too high?
Replies: 41
Views: 4111

Re: House hunting, tips and why do people list houses too high?

OP here Thanks for the replies. Good point about the Zillow estimate price, I understand that now it's just fiction, heck my house is listed similar to another house although we have over $150K ++ in kitchen, bathrooms and hardscapes/decks. I'm not saying we should get full credit for those but it's...
by rai
Tue Jun 21, 2016 4:56 pm
Forum: Personal Consumer Issues
Topic: House hunting, tips and why do people list houses too high?
Replies: 41
Views: 4111

House hunting, tips and why do people list houses too high?

I'd like any tips, we are looking at a neighborhood that would be called a buyers market. What I mean is that there are both a good selection of re-sales and new homes (to be built) in our price range. We are probably looking at the upper half of the price range, so to me that would probably put les...
by rai
Sun Jun 19, 2016 6:37 am
Forum: Investing - Help with Personal Investments
Topic: where to put any additional funds
Replies: 3
Views: 378

Re: where to put any additional funds

what's your top tax rate? VSCGX has 40% bonds, so interest will be taxed at you're top tax rate. really it all doesn't make any sense if we don't know any real numbers including your 401Ks. Also no one know what your funds are by their code symbols it'd be a good idea to put the name next to the fun...
by rai
Wed Jun 15, 2016 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Bad Time to Get Into Bonds?
Replies: 12
Views: 2128

Re: Bad Time to Get Into Bonds?

However, I also understand that investing in bonds (especially those with an average duration of nearly 6 years, like these funds have) has substantial interest rate risk. Even after today's Fed announcements, it's only a matter of time until our historically-low interest rates increase, and the fa...
by rai
Tue Jun 14, 2016 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Donate stock instead of cash?
Replies: 47
Views: 2729

Re: Donate stock instead of cash?

I'm planning to make some donations to a non-profit that accepts stock donations. I have some mutual funds with gains at about 15%. What are the pros and cons to donating stock instead of cash? I'm thinking the main benefit is to not have to pay LTCG on the donated amount, and then I could buy back...
by rai
Mon Jun 13, 2016 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Pay zero taxes legally ?
Replies: 53
Views: 5082

Re: Pay zero taxes legally ?

Here is a simple tax calculator to play around with

https://turbotax.intuit.com/tax-tools/c ... taxcaster/
by rai
Mon Jun 13, 2016 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Live the Good Life Today vs Save For a Better Life Tomorrow
Replies: 84
Views: 8168

Re: Live the Good Life Today vs Save For a Better Life Tomorrow

I've found, and it's been proven in my experience that my savings hits a tipping point or critical mass and starts to snowball. What I'm talking about is if you have $50,000 and I see a lot of people here (mainly younger) who are throwing around these small numbers and worrying about their asset all...
by rai
Mon Jun 13, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Pay zero taxes legally ?
Replies: 53
Views: 5082

Re: Pay zero taxes legally ?

Gill wrote:
rai wrote:Capital loss

Yes, the more you lose the more you make? :?
Gill

If life gives you lemons, make lemonade.
by rai
Mon Jun 13, 2016 8:32 am
Forum: Personal Consumer Issues
Topic: Leisure Time versus Thriftiness
Replies: 100
Views: 8127

Re: Leisure Time versus Thriftiness

The reason the tires at the dealer are only $60 more than discount tire places is probably because they're way overcharging you for service. Instead of combining two trips there for tires and service, perhaps you should spend some time finding an independent mechanic (ask friends and neighbors, che...
by rai
Mon Jun 13, 2016 8:26 am
Forum: Personal Consumer Issues
Topic: Leisure Time versus Thriftiness
Replies: 100
Views: 8127

Re: Leisure Time versus Thriftiness

When shopping for tires, or TVs or whatever you need to determine what brand/size/model to buy which takes the majority of the time, as far as best price that's fairly easy. I can check on Amazon when I'm at the TV store and to check tire prices only takes me 5 minutes, I look on Tirerack and call m...

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