Search found 1109 matches

by rai
Tue Jun 20, 2017 9:53 am
Forum: Personal Consumer Issues
Topic: is luxury car a smarter purchase?
Replies: 101
Views: 5653

Re: is luxury car a smarter purchase?

It's all a crap shoot. I sold my neighbor our old Ford Escort because we had little baby and we wanted a safer (bigger car too) anyway that car had like 120K miles when she sold it at 10 years sold for less than $1000. The neighbor drove the car for another 10 years with minor repairs. Literally it ...
by rai
Tue Jun 20, 2017 9:46 am
Forum: Personal Consumer Issues
Topic: is luxury car a smarter purchase?
Replies: 101
Views: 5653

Re: is luxury car a smarter purchase?

Most German luxury cars will cost a lot to fix. I can't say if your car will need to be repaired or not. Even a brand new car can need to be repaired. But I owned one car Honda S2000 literally nothing needed to be repaired or fixed for 6 years. I owned a BMW M3 also 6 years and it cost me $3000 out ...
by rai
Sat Jun 17, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Selling practice for a lump sum
Replies: 51
Views: 5855

Re: Selling practice for a lump sum

Yes this would be for each partner. It would be taxed as capital gains, so ballpark would be 1.3 m after taxes. I'm also in a medical group looking at a buyout. This cash is large. And a bird in the hand is worth two in the bush. Your effective tax rate is probably 33% or so (depending on state tax...
by rai
Wed Jun 14, 2017 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 11801

Re: Who takes financial chances and why is this forum so financially conservative?

The only thing about the forum members I would stereotype with being conservative is with cars and a house (and I defy that stereotype in a big way!). I think on cars and houses you have to distinguish between people who are financially "conservative" and those that just don't give a hoot...
by rai
Wed Jun 14, 2017 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 11801

Re: Who takes financial chances and why is this forum so financially conservative?

This forum has all shapes and sizes. I think the key unifying theme is to be aware of saving/investment for the future with a tilt away from stock picking or market timing. Sure some people do pick stocks or trade options (me) but overall I'm more concerned about saving, that is making more than I s...
by rai
Mon Jun 12, 2017 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Life Insurance as an Investment Vehicle
Replies: 39
Views: 2204

Re: Variable Life Insurance as an Investment Vehicle

Nothing wrong with investing money in a taxable account. As said above you can tax loss harvest (this is the closest thing to a free lunch) growth not taxed until you sell, dividends and long term gain taxed at a lower than income tax rate. You are free to use the money whenever you want. ** when yo...
by rai
Thu Jun 08, 2017 12:18 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6676

Re: 100% Stock Portfolio?

C'mon now! You know the general consensus amongst bogleheads is to not consider your emergency fund/cash reserve as apart of your portfolio. this is not the general consensus. I consider all my investible assets as a whole. That means my taxable, my 401K, IRAs, HSA, bank accounts, cash on hand (etc...
by rai
Wed Jun 07, 2017 8:53 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6676

Re: 100% Stock Portfolio?

I'm not against 100%, just against it as a full on forever plan. I mean once you have got your number or maybe your number three times over, what more are you accomplishing by staying more at risk? Also say you are 30 you can actually work another 30 years well full earner. If you're 50 you can not ...
by rai
Wed Jun 07, 2017 8:45 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6676

Re: 100% Stock Portfolio?

I'm not trying to argue but just pointing out if young you weren't heavily invested in 2007-8 etc.. There is a famous saying "No battle plan survives contact with the enemy" in other words it all looks good on paper. A better analogy is the famous Mike Tyson quote "Everybody has a pla...
by rai
Wed Jun 07, 2017 8:29 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6676

Re: 100% Stock Portfolio?

I'll wager that the young unmarried subset have not lived through 2007 or 1987 holding greater than $1M in assets 100% stock and thought it was a good idea. In 1987 the DOW had two down days one was -22% and one was 8% within 10 days of each other that'd be -$300K in two days from a $1M portfolio an...
by rai
Wed Jun 07, 2017 8:14 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6676

Re: 100% Stock Portfolio?

Can't say100% will always beat some percentage of stocks:bonds as it will happen in the future. No one knows the future plus in past has 100% alaways beat some combination with rebalancing? I mean you can't just look at bond retuns as a static number what if you were at 25% bonds and always rebalanc...
by rai
Wed Jun 07, 2017 8:04 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6676

Re: 100% Stock Portfolio?

Looks like that bull market is coming to an end soon! Time to go all cash! I know. These kind of threads are the kiss of death. Well, can't believe a thread like this can effect the market at large, but I see what you mean when people are over joyful with stocks it's usually a sign that people are ...
by rai
Wed Jun 07, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Dependent now first job, tax question.
Replies: 5
Views: 321

Re: Dependent now first job, tax question.

Thanks :sharebeer

Good idea about the Roth IRA too :moneybag

I don't mind paying taxes, but I also don't mind not paying taxes (legally). May get my daughter motivated to save for retirement early ( I'm an MD so it was difficult for me to save much until I was closer to 30).
by rai
Wed Jun 07, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Dependent now first job, tax question.
Replies: 5
Views: 321

Dependent now first job, tax question.

I'm deep in top tax bracket.

My daughter in college full time, age 18 just got a part time job I estimate to earn less than $4000/year

I'm unsure how to file her taxes, and what effect it'll have on my tax deductions.
by rai
Sun Jun 04, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: KF's Worst Case Retirement Plan [KlangFool's]
Replies: 252
Views: 16815

Re: KF's Worst Case Retirement Plan [KlangFool's]

Folks, This is my worst-case retirement scenario. Please review and criticize. 1) Retire at 54 years old with a portfolio of 1 million and the AA of 60/40 2) 300K Mortgage. 6 years into 30 years 3.49% fixed rate mortgage. KlangFool I fail to see why the need to retire at 54 with so much left to cha...
by rai
Sat Jun 03, 2017 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Taxes on sold puts
Replies: 7
Views: 574

Re: Taxes on sold puts

If you have a stock put to you you can sell a covered call on the stock. Suppose you sold a put for a stock trading at $72.5 and you sell the strike price of $70 and the stock falls to $68 and you are forced to buy it. You can turn around and sell a 'call' on that stock at $70 or $72.5 and pick up a...
by rai
Sat Jun 03, 2017 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Taxes on sold puts
Replies: 7
Views: 574

Re: Taxes on sold puts

A stock is trading at $100 and you sell an $80 put for $200. By expiration, the underlying falls to $70, resulting in assignment. A couple of months later, the stock rises to $80 and you subsequently sell it, netting you a $1000 gain on the sale of the stock. Since your gain from the premium was $2...
by rai
Thu Jun 01, 2017 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes on sold puts
Replies: 7
Views: 574

Re: Taxes on sold puts

Virus4762 wrote:This would only happen if your sold put falls into the money though, correct?

correct
by rai
Thu Jun 01, 2017 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes on sold puts
Replies: 7
Views: 574

Re: Taxes on sold puts

The taxes are for the year the put is closed or expires. In this example that would be 2017 http://www.marketwatch.com/story/how-stock-options-are-taxed-2015-03-18 "Taxes – If you sell a January 2011 put option, you’ll be taxed as a short term gain at your personal tax rate, BUT, not until the ...
by rai
Mon May 29, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: What do you guys do on the side?
Replies: 165
Views: 22786

Re: What do you guys do on the side?

**warning** non-boglehead behavior. I sell (trade) options in my taxable account. Mostly sell puts.

I will pick up some extra work at my day job but not as much as when I was starting out.
by rai
Fri May 26, 2017 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Really trying to understand no bonds in taxable
Replies: 46
Views: 3130

Re: Really trying to understand no bonds in taxable

I actually agree with this, to some extent. The reason we buy bonds is to reduce the probability of having bad returns in the short term (since they will almost certainly return less than stocks in the long term). If all our bonds are locked up in retirement accounts, we *can't* access them, which ...
by rai
Fri May 26, 2017 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Really trying to understand no bonds in taxable
Replies: 46
Views: 3130

Re: Really trying to understand no bonds in taxable

Not sure about your tax rate but some of us are in top tax bracket which would lead bond income subject to 50% tax rate. If suppose you were 50:50 or whatever 60:40 (I'm using 50:50 for easy example) Say you have 3M and you have Taxable account $1m Tax shelter $2m You should have (IMO) all bonds in ...
by rai
Fri May 26, 2017 7:59 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 7140

Re: Larry Swedroe on REITs

are we supposed to chuck our investment plan after ever new study or stay the course? :confused
by rai
Thu May 25, 2017 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 114
Views: 14938

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

Note one SS strategy for a couple is to begin the SS of the lower SS spouse at age 62, and let the higher amount SS grow until age 70 *then switch over to that one*. I am unsure what you mean by then switch over to that one. Isn't once you start to collect you are set from then onwards? ---— I do h...
by rai
Wed May 24, 2017 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 114
Views: 14938

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

Note one SS strategy for a couple is to begin the SS of the lower SS spouse at age 62, and let the higher amount SS grow until age 70 *then switch over to that one*. I am unsure what you mean by then switch over to that one. Isn't once you start to collect you are set from then onwards? ---— I do h...
by rai
Wed May 24, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 114
Views: 14938

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

Interesting discussion.. Regarding if you don't need the money (i.e. You have a large enough savings) say you were planning on a ~4% withdraw, could you in fact take ~5% for the first 8 years assume you retire at 62 and defer SS until you are 70. But then be able to withdrawal 3.3% (some number) and...
by rai
Thu May 18, 2017 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account Investment Question
Replies: 8
Views: 626

Re: Taxable Account Investment Question

Can you believe people would have posted the exact same as your OP right after Brexit or at the time of Greek debt crisis or right after the presidential elections? All great opportunities to make money, so not to be ignored. my point was the OP question is "should I get out now because of xyz...
by rai
Thu May 18, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account Investment Question
Replies: 8
Views: 626

Re: Taxable Account Investment Question

IMO

-tune out the noise
-don't time the market

Can you believe people would have posted the exact same as your OP right after Brexit or at the time of Greek debt crisis or right after the presidential elections?
by rai
Thu May 18, 2017 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Question for you high net worth individuals... [real estate investments]
Replies: 82
Views: 10454

Re: Question for you high net worth individuals...

Just my house. My HNW is due to high paying job, retirement accounts (much higher than typical 401k) plus high saving and a bit of lucky stock picking AAPL and MO approaching 10x gains. I'm not avocating stock picking and in hindsight I've picked some real stinkers but I locked onto AAPL like 7-8 ye...
by rai
Sun May 14, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: Transfer to Fidelity for Sign on Bonus?
Replies: 35
Views: 3546

Re: Transfer to Fidelity for Sign on Bonus?

I was able to ask E-Trade if they would match that for me to stay and they did.
by rai
Sat May 13, 2017 10:17 pm
Forum: Investing - Theory, News & General
Topic: Does trade execution speed matter?
Replies: 15
Views: 1590

Re: Does trade execution speed matter?

OT but somewhat not. I placed a limit order for option 5 contracts, but I did not specify all or none (this was sell a put). Point being E-Trade sold one contract (partial) and the other 4 were left hanging. I really didn't want one contract so I lowered my bid price a cent and the other 4 executed....
by rai
Thu May 11, 2017 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Buying vacation home
Replies: 29
Views: 3492

Re: Buying vacation home

Why be tied down to one location when one can rent amazing places across the globe? We would rather travel to different places, but of course, you may be different. Thinking you can re-sell a vacation home later may be a folly. Neither you nor I know if it will work out. I have known quite a few (g...
by rai
Thu May 11, 2017 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Buying vacation home
Replies: 29
Views: 3492

Re: Buying vacation home

We just bought a vacation house near Walt Disney World. No plan to rent it, so at least we can deduct the interest. We already had our primary house paid off so not having two mortgages is nice. We got a great mortgage rate also 2.5% 15 year fixed. However having two houses costs a lot with two of e...
by rai
Sun May 07, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: CDOs or Sub prime MBS in Vanguard funds?
Replies: 9
Views: 787

Re: CDOs or Sub prime MBS in Vanguard funds?

Unrelated question I was wondering what would happen if there was more appetite for US gov loans than there was supply? I mean if all people and institutions retirement accounts wanted US Gov Bonds but they weren't making enough to go around? Or conversely if there was an over supply? Does US buy th...
by rai
Sun May 07, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: CDOs or Sub prime MBS in Vanguard funds?
Replies: 9
Views: 787

Re: CDOs or Sub prime MBS in Vanguard funds?

Thanks great info, maybe big institutional (Iceland etc..) bought a lot of the bad stuff ?

I think it's rotten how the big investment banks were made whole by US such as Goldman getting full value from AIG (via taxpayer money).
by rai
Sat May 06, 2017 1:37 pm
Forum: Investing - Theory, News & General
Topic: CDOs or Sub prime MBS in Vanguard funds?
Replies: 9
Views: 787

CDOs or Sub prime MBS in Vanguard funds?

I watched and read 'The Big Short' and was fascinated and a little scared about the MBS and CDOs that were talked about. I was curious if Vanguard ever had any exposure in it's bond funds? I see BND does have some MBS mostly government backed but a little commercial. So question, did any of the bad ...
by rai
Wed Apr 26, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4129

Re: $1m capital gains, worth it to simplify and index?

I have a similar situation I *AM* in the top tax bracket so I pay 23.8% plus state tax 6% (call it 30%) tax on $500K LT gains ( $150K tax ) :evil: I have only BIG names: AAPL, MO, CAT, DIS, VZ, GOOG My taxable account is around $1.5M, $1M from individual stocks and $500K from index(ETFS) so I am rel...
by rai
Sat Apr 22, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Reached 50% of my "number" today
Replies: 20
Views: 4343

Re: Reached 50% of my "number" today

White Coat Investor wrote:Second half goes a lot faster than the first half!

I reached 1/2 my number as well (20 years) and hope the second half is more like 8-10 years because of the snowball effect not to mention getting the kids out of the nest.
by rai
Sat Apr 15, 2017 10:14 am
Forum: Investing - Help with Personal Investments
Topic: New contributions after making number, aggressive or conservative?
Replies: 30
Views: 2223

Re: New contributions after making number, aggressive or conservative?

If that was me I'd go ALL stocks. But then again I'm 75:25 at age 50.

I don't time the market but just an observation stocks yield almost as much as high quality bonds.
by rai
Sat Apr 15, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: New contributions after making number, aggressive or conservative?
Replies: 30
Views: 2223

Re: New contributions after making number, aggressive or conservative?

depends on your current AA is it conservative?

If this was all 'extra' money I'd probably go 70:30
by rai
Sun Apr 09, 2017 12:26 pm
Forum: Personal Consumer Issues
Topic: Help on how to spend more on myself (First World Whine)
Replies: 93
Views: 5913

Re: Help on how to spend more on myself (First World Whine)

One thing which I did way back, but I still recall fondly. I am into cars, especially exotic cars which are wickedly expensive, so one day I did an event from World Class Driving where we were able to drive 5 exotic cars on the street for like 15 - 20 minutes each, was a bit pricy but when the cars ...
by rai
Sat Apr 08, 2017 7:02 pm
Forum: Personal Consumer Issues
Topic: Help on how to spend more on myself (First World Whine)
Replies: 93
Views: 5913

Re: Help on how to spend more on myself (First World Whine)

trying to figure out how to post pictures from my iPad. Drat.

There is even a Dr Who pinball machine.
by rai
Sat Apr 08, 2017 6:39 pm
Forum: Personal Consumer Issues
Topic: Help on how to spend more on myself (First World Whine)
Replies: 93
Views: 5913

Re: Help on how to spend more on myself (First World Whine)

I got into collecting pinball machines a while ago,,not cheap (it can be) but the pins I want are not cheap. I've had one pinball machine for 10 years and could get easy what I paid for it. I like them and considering they don't depreciate like say a computer or a TV or a hot tub, they kind of stay ...
by rai
Mon Apr 03, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Is anyone decreasing % of bonds this year?
Replies: 91
Views: 7479

Re: Is anyone decreasing % of bonds this year?

Seems like *most* here talk about total bond market fund (BND) which is intermediate. Is there any value to holding longer or shorter term bond funds? Internatnationals?
by rai
Sat Apr 01, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: Why do REITs have high growth if housing only keeps up with inflation?
Replies: 19
Views: 1889

Re: Why do REITs have high growth if housing only keeps up with inflation?

I guess as others have said, <rent> you have to live somewhere. If you rent a $500K house likely to pay $30K/year in rent. I'm just ball parking those figures and owning a house you'd pay $10K in taxes, upkeep which is built into the rent. But the value to owning a house is that you don't have to pa...
by rai
Mon Mar 27, 2017 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Weathering sell-off days like today
Replies: 107
Views: 6863

Re: Weathering sell-off days like today

I blame this thread on the fake media. Every time the DOW goes down 0,5% or 1% at any time in the day there are lead articles saying the Trump Rally is over and the other shoe is about to drop. I will recall last January there was a correction of maybe 9-10% in a month and all kinds of news articles...
by rai
Mon Mar 27, 2017 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Weathering sell-off days like today
Replies: 107
Views: 6863

Re: Weathering sell-off days like today

What happened *today*? Was this like Black Monday? When the Dow dropped 22% in one day? if people are posting what do you do threads when the marked hasn't even done anything worthwhile maybe they are not ready to invest? I mean, actually all this up-UP-UP-UP is not a good thing, I think it's better...
by rai
Mon Mar 06, 2017 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Promotions to switch assets to new platform/company
Replies: 3
Views: 362

Re: Promotions to switch assets to new platform/company

How do you like Fidelity and Schwab?
by rai
Mon Mar 06, 2017 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Promotions to switch assets to new platform/company
Replies: 3
Views: 362

Promotions to switch assets to new platform/company

I just got over $1M assets at Etrade and found that I can switch to Fidelity and receive $2500 bonus. Sounds good. I was looking and it turns out Etrade has the same promotion. I'm attempting to see if Etrade will match that to keep me, or if I should go over to Fidelity It seems as if Etrade will p...
by rai
Sun Feb 12, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Which 25X is it? [Planning for retirement]
Replies: 51
Views: 3485

Re: Which 25X is it?

C

Post tax so the real number before taxes 30-32x as taxes may be 15-20%

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