Search found 1060 matches

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: 2998

Re: Which 25X is it?

C

Post tax so the real number before taxes 30-32x as taxes may be 15-20%
by rai
Sat Feb 11, 2017 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: When to invest- fear of crash
Replies: 58
Views: 4125

Re: When to invest- fear of crash

what are you saving for? If it's something like retirement, it's better to get your money working, cash does not return anything over the long term.
by rai
Wed Feb 08, 2017 9:13 am
Forum: Investing - Help with Personal Investments
Topic: I'm in the 48% tax bracket can someone explain what to do with my HSA?
Replies: 8
Views: 1618

Re: I'm in the 48% tax bracket can someone explain what to do with my HSA?

Checked my state MD allows tax free deposit to HSA

Only 3 states NJ CA and AL do not allow tax exempt contributions
by rai
Tue Feb 07, 2017 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: I'm in the 48% tax bracket can someone explain what to do with my HSA?
Replies: 8
Views: 1618

Re: I'm in the 48% tax bracket can someone explain what to do with my HSA?

I had been thinking that lets round up to tax is 50%, so for me to pay a $1000 bill I'd need to make $2000 where as if I used the funds directly from the HSA I would only need to make $1000. I suppose, it's better if I pay with post tax dollars and save the HSA as tax shelter investment vehicle beca...
by rai
Tue Feb 07, 2017 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: I'm in the 48% tax bracket can someone explain what to do with my HSA?
Replies: 8
Views: 1618

I'm in the 48% tax bracket can someone explain what to do with my HSA?

I am in the 48% maybe 49% tax bracket factoring in Fed, State and Medicare tax. I was curious what to do with my HSA? Should I pay out of pocket for Medical bills and save up my HSA as a tax exempt account? What are the pros and cons? I mean paying post tax dollars is obviously a bummer for me, is t...
by rai
Tue Feb 07, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: a good time to fix your mortgage?
Replies: 17
Views: 2421

Re: a good time to fix your mortgage?

I got a 15 year fixed just after Brexit for 2.8 saw it drop to 2.7 but I can't complain about locking in at 2.8% now.
by rai
Tue Feb 07, 2017 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Gift tax rules?
Replies: 6
Views: 621

Gift tax rules?

I have a few questions about estate tax 1) gift tax exclusion is $5.4M per person or $10.8 for a married couple. Suppose one spouse dies before the other and the survivor inherited the entire estate. Now there is only one person does that person only have a $5.4M limit? 2) There is a yearly threshol...
by rai
Thu Feb 02, 2017 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Selling Stocks - New Bogelhead
Replies: 12
Views: 740

Re: Selling Stocks - New Bogelhead

But wouldn't the loss of $16k be more than the cost of the taxes he would have paid? Probably not because the OP probably already donates tens of thousands of dollars to charity every year. I see your point if donated in leu of cash, but what makes you say he donated tens of thousands to charity? J...
by rai
Thu Feb 02, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Large chunk of cash - is putting it in a bond etf a safe play while market is up?
Replies: 16
Views: 1924

Re: Large chunk of cash - is putting it in a bond etf a safe play while market is up?

You say the market is high, that doesn't mean it will ever be lower. IOW if you just wait it out you may never see prices this low ever again. You realize that when DOW was first at 1000 someone said that was as high as it's ever been so it's high priced. What is your entry point? Are you waiting fo...
by rai
Thu Feb 02, 2017 9:30 am
Forum: Investing - Help with Personal Investments
Topic: Selling Stocks - New Bogelhead
Replies: 12
Views: 740

Re: Selling Stocks - New Bogelhead

You don't have to donate all shares and you don't have to donate all in the same year. For instance, suppose you donated $16,000 worth of stock that had $4,000 of unrealized LT gains. In essence, I think you can get out of these stocks with no tax cost to you. But wouldn't the loss of $16k be more ...
by rai
Thu Feb 02, 2017 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Selling Stocks - New Bogelhead
Replies: 12
Views: 740

Re: Selling Stocks - New Bogelhead

Plus state tax and plus 3.8% Medicare tax if you make over $250k married or $200k single
by rai
Wed Feb 01, 2017 11:12 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 901

Re: AAPL: Too much of a good thing?

It is impossible for me to be in a higher tax bracket than current. I pay the Medicare 3.8% investment tax as well as top Fed and top State tax rate. I am 10-11 years from retirement and will have a doughnut hole in my tax rate for about 8-9 years before SS tax or RMD distrubutions and I will be in ...
by rai
Wed Feb 01, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 901

Re: AAPL: Too much of a good thing?

Not wanting to sound callous, but I don't care to give to charity unless I'd come out ahead of what I'd pay on taxes IOW if I'm paying more to donate I'd just as well rather pay taxes. My view is I'm still saving, I pay a lot in taxes already so I'm looking to retire or meet my number first before I...
by rai
Wed Feb 01, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 901

Re: APPL: Too much of a good thing?

TheTimeLord wrote:If you want to lighten up on your position in Apple possibly do it by contributing shares to charity instead of donating $$$ or setting up a DAF.

What's DAF
by rai
Wed Feb 01, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 901

Re: APPL: Too much of a good thing?

obafgkm wrote:
rai wrote:I'm at odds with APPL (in my taxable account)


What is "APPL"?

What happens when you speak in ticker language.

Sorry AAPL (typo)

Apple stock
by rai
Wed Feb 01, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 901

Re: APPL: Too much of a good thing?

I'm not a tax wizard so I don't know but I have tens of thousands in ST gains from option trades which I could offset by charitable gifts but I'm not sure what the net result would be or if charatable gifts are disallowed in the highest tax bracket and/or if AMT would step in if I have too many dedu...
by rai
Wed Feb 01, 2017 9:36 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 901

AAPL: Too much of a good thing?

I'm at odds with AAPL (in my taxable account) I know that individual stocks are anathama in this community, and I agree that all things being equal that I'd rather have all index funds. I like the way you can treat index in taxable account such as TLH and like that you are not single stock exposed e...
by rai
Sun Jan 29, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can (Kindle): Free Today
Replies: 10
Views: 1470

Re: If You Can (Kindle): Free Today

Thanks I love your other books.

Just got it, figured it may have some tips for my college and HS kids.
by rai
Sun Jan 29, 2017 11:33 am
Forum: Personal Consumer Issues
Topic: Input on Apple Watch-Buy or Not?
Replies: 64
Views: 3749

Re: Input on Apple Watch-Buy or Not?

Have not read every post but I'd give my 2c I received one for Christmas was going to take it back because I don't typically wear a watch. I do at work Casio calculator but otherwise no watch. I had to keep it though because it was a gift from my kids. Anyway they only were able to buy the series 1 ...
by rai
Tue Jan 24, 2017 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Rising Rate Environment-Keep or Sell VFIDX & VBTIX? [Int-term vs. Total Bond]
Replies: 6
Views: 642

Re: Rising Rate Environment-Keep or Sell VFIDX & VBTIX? [Int-term vs. Total Bond]

I think some people hear 'bond prices will drop' and think they will drop like when stocks drop. However bonds drop but are replaced with cheaper shares and/or higher paying issues. If you're holding for longer term than duration, I assume decades. The power of bonds and compounded interest has a lo...
by rai
Mon Jan 23, 2017 11:25 am
Forum: Investing - Help with Personal Investments
Topic: What's a bearish investor to do?
Replies: 33
Views: 4234

Re: What's a bearish investor to do?

You ask: Assuming that I'm correct to avoid buying puts, what other things could I do to limit my downside and/or profit from a decline? You are correct -- don't buy options, sell them and pocket the premiums. Sell 100% cash-secured out-of-the-money Put options (i.e. strike price below the stock pr...
by rai
Sun Jan 22, 2017 7:34 am
Forum: Investing - Help with Personal Investments
Topic: What's a bearish investor to do?
Replies: 33
Views: 4234

Re: What's a bearish investor to do?

. I came to believe that US stocks were priced for poor future returns. I reacted by progressively scaling back my equity allocation and tilting it heavily towards non-US stocks. your entire post from top to bottom is just market timing. As you said above reacted by scaling back equity and heavy ti...
by rai
Sat Jan 21, 2017 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard total market or extended market?
Replies: 5
Views: 792

Re: Vanguard total market or extended market?

My 401k includes
VG 500
VG mid
VG small

Nice but I'm sorry they don't offer TSM instead as that's lower ER and less calculations.
by rai
Fri Jan 20, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Does it matter which index Bond fund you invest in?
Replies: 16
Views: 1741

Re: Does it matter which index Bond fund you invest in?

thanks, as to duration and interest rates, these funds will not being touched for 15 years (far longer than the duration).
by rai
Fri Jan 20, 2017 5:41 pm
Forum: Investing - Theory, News & General
Topic: Does it matter which index Bond fund you invest in?
Replies: 16
Views: 1741

Does it matter which index Bond fund you invest in?

Suppose I wanted to invest in a intermediate Corp Bond index VCIT Vanguard Intermediate grade Corp (Effective Duration 7.4 years) LQD iShares investment grade Corp (Effective Duration 8.2 years) Both are intermediate time but different to the exact time and differ to the index they track and slightl...
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: 1102

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: 735

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: 735

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: 735

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: 391

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: 2494

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: 3710

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: 12776

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: 12776

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: 12776

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: 12776

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: 2068

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: 7144

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: 7144

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: 5073

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: 5073

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: 5073

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: 5073

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: 243

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: 558

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: 558

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 ...

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