Search found 637 matches

by ray.james
Tue Sep 27, 2016 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Have international investments been doing bad last 5 to 10 years?
Replies: 19
Views: 1291

Re: Have international investments been doing bad last 5 to 10 years?

It also seems that USA is just so big and diversified enough where international investing isn't really necessary, especially with all the taxes international companies have. . What taxes are you talking about? Any source reference? Europe's avg tax is 18%. Most of EM have almost negligible taxes o...
by ray.james
Tue Sep 27, 2016 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Have international investments been doing bad last 5 to 10 years?
Replies: 19
Views: 1291

Re: Have international investments been doing bad last 5 to 10 years?

Another way to look at it is that International is the only thing that's cheap right now. Cheap by what metric? International stocks are expensive based on historical valuation as well. Last I checked total international had a p/e over 20.I don't consider that cheap for an investment that has lagge...
by ray.james
Tue Sep 27, 2016 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Have international investments been doing bad last 5 to 10 years?
Replies: 19
Views: 1291

Re: Have international investments been doing bad last 5 to 10 years?

It also seems that USA is just so big and diversified enough where international investing isn't really necessary, especially with all the taxes international companies have. . What taxes are you talking about? Any source reference? Europe's avg tax is 18%. Most of EM have almost negligible taxes o...
by ray.james
Wed Sep 21, 2016 6:33 pm
Forum: Investing - Theory, News & General
Topic: Using mortgage to invest?
Replies: 11
Views: 1030

Re: Using mortgage to invest?

one can take personal loan at 6-13% up to the max allowed. Probably hard to beat the interest rates with the market return. People used to put money in savings account in 2007 at 5% by borrowing at 0% credit card transfers(no transfer fee). Probably the only free lunch I knew of in all these years.
by ray.james
Fri Sep 16, 2016 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2402

Re: how to contribute 53k to 401(k) as employed doc?

employee contributions aren't allowed to a profit sharing plan Probably still true. Profit sharing is done by your employer as is the case here. Regarding the access, you will need to check 2 things with the plan sponsor: 1) vesting period. - most doctor plans do not it ? 2) Management - Whether u ...
by ray.james
Fri Sep 16, 2016 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest for Indian living in USA on H1 visa?
Replies: 21
Views: 1748

Re: How to invest for Indian living in USA on H1 visa?

I am curious on one legality here:

Post death is the full 401k balance considered as one's own estate or 50% if spouse is alive?

What happens if the couple own a house. IS 50% value of house added to estate for estate tax calculations or full amount.

Thanks.
by ray.james
Fri Sep 16, 2016 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2402

Re: how to contribute 53k to 401(k) as employed doc?

employee contributions aren't allowed to a profit sharing plan Probably still true. Profit sharing is done by your employer as is the case here. Regarding the access, you will need to check 2 things with the plan sponsor: 1) vesting period. - most doctor plans do not it ? 2) Management - Whether u ...
by ray.james
Fri Sep 16, 2016 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2402

Re: how to contribute 53k to 401(k) as employed doc?

After tax contributions can be made so that total contributions can reach 53K. eg: 18K contribution + 5k match(if there is any match) + 30K after tax contribution ~= 53K. Check if they have in service roll over for after tax money. This will help in moving money to Roth. Search mega backdoor roth in...
by ray.james
Thu Sep 15, 2016 12:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Unusual? Trade Warning
Replies: 7
Views: 1298

Re: Vanguard Unusual? Trade Warning

Hello Doc, I have seen this warning after I converted to brokerage account. I belive it is related to T+3 funds settlement rule. Here is my understanding. Most broker allow one to sell a stock and buy a new one in place using the same money. However it is not allowed to sell the new stock again befo...
by ray.james
Tue Sep 13, 2016 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: I am going to stop tilting. Sanity check.
Replies: 66
Views: 6021

Re: I am going to stop tilting. Sanity check.

I tilt only when I see substantial P/E difference plus historical low P/E.

Happened once with Emerging markets early this year. Right now its doing well but that slice swings faster than see-saw.
by ray.james
Mon Sep 12, 2016 2:13 pm
Forum: Personal Consumer Issues
Topic: Replacement Brush Heads for Oral B Electric Toothbrush
Replies: 11
Views: 961

Re: Replacement Brush Heads for Oral B Electric Toothbrush

Costco usually has pretty good deal every other month. They switch between Sonic care and oral B.
by ray.james
Thu Sep 08, 2016 6:06 pm
Forum: Investing - Help with Personal Investments
Topic: How did your 401k fund grow from 2006 to 2016? please share. did you come out fine for 2008 crash?
Replies: 27
Views: 4008

Re: How did your 401k fund grow from 2006 to 2016? please share. did you come out fine for 2008 crash?

I left the vertical scale off this graph of my TIAA 403(b) but you can eyeball relative numbers. I've always had two funds, a broad US+international stock fund (CREF Stock) and a stable-value fund (TIAA Traditional), with contributions split 50/50. Right now the total accumulation is about 58% stoc...
by ray.james
Wed Sep 07, 2016 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: This would be a terrible mistake, right? [Convert all IRAs]
Replies: 20
Views: 1856

Re: This would be a terrible mistake, right? [Convert all IRAs]

Is it also important to consider whether entire RMD will be in 33-35% bracket. Some part of it is taxed at lower rate. The net rate just for the RMD can be smaller. While writing above, another question popped my head. If one spouse died due to unforeseen circumstances, would the RMD from both ira's...
by ray.james
Tue Sep 06, 2016 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: House buying and planning
Replies: 9
Views: 1335

Re: House buying and planning

I like provident credit union. If you get qualified for their 10-10-10 loan, The rates are close to 15 year fixed and adjusted every ten years. If one is planning to pay ahead but want flexibility of 30 year payments, I think this is a good option. 30 year terms have the least risk but this is not a...
by ray.james
Fri Sep 02, 2016 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Got [a bad deal] on muni bonds
Replies: 66
Views: 5377

Re: Got [a bad deal] on muni bonds

Based on above thread, if the amount is 2100/80K ~= 2.6%. That actually entire yield and more on intermediate/long term funds today. Not to forget the state taxes. This is really sad and will get worse if the amount is less. OP, Just hold a bond fund and be done with it. Buy something that costs the...
by ray.james
Tue Aug 30, 2016 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Evicting a tenant-Hire lawyer?
Replies: 200
Views: 21183

Re: Evicting a tenant-Hire lawyer?

This is very informative! Never thought or heard of something similar. The fact that your previous good tenants have no idea, shows her social circles had no idea what a con artist she is. I would also be a little concerned for your safety at this stage. People who do not have much to lose are the m...
by ray.james
Mon Aug 29, 2016 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Partial backdoor roth
Replies: 6
Views: 296

Re: Partial backdoor roth

1) I am wondering if I can do a partial backdoor Roth conversion for 60% of money(7K) while regular contributions for 30%. Anything else to consider if I do it partial amounts. I do realize the tax form differences and existing rollover ira to consider.( which is being already moved to current 401k...
by ray.james
Mon Aug 29, 2016 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: Partial backdoor roth
Replies: 6
Views: 296

Re: Partial backdoor roth

You can do a partial backdoor Roth. For many people the main downside of a backdoor Roth is the paperwork. Since the paperwork is the same for any amount, if there is a risk of being in or above the phase out range it's easier to do the backdoor Roth for the full amount and not have to worry about ...
by ray.james
Mon Aug 29, 2016 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Partial backdoor roth
Replies: 6
Views: 296

Partial backdoor roth

Hello all, I am trying to put as much contribution into Roth as regular and this year we are in the phase out range. This is emergency fund "if" we end up buying a house and is very conservatively invested. 1) I am wondering if I can do a partial backdoor Roth conversion for 60% of money(7...
by ray.james
Wed Aug 24, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: 401k vs tax loss harvesting
Replies: 8
Views: 507

Re: 401k vs tax loss harvesting

All tax loss harvesting does is lower your cost basis providing a temporary tax benefit now. If you have tax deferred space available, you should almost always do that, unless your tax rate is 0% already. If one is at 0%, one can still do tax gain harvesting, if future taxes are higher! Regarding t...
by ray.james
Wed Aug 24, 2016 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: 401k vs tax loss harvesting
Replies: 8
Views: 507

Re: 401k vs tax loss harvesting

Hector, I believe you are looking for this https://blog.wealthfront.com/401k-versus-taxable-account/ Although wealthfront is advertising, the data behind it overall fine. However the assumptions do not apply to a lot of people especially for one who do/cannot make full 401k. The best part is you can...
by ray.james
Mon Aug 22, 2016 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Tilter's
Replies: 18
Views: 1200

Re: Tilter's

Jerry,
Thanks for doing running the numbers. I remember it was worse for me with state tax of CA when I did the same analysis few months ago.

Distributions--------------------------- 264---- 250------ 239----- 266---- 206---- 259

How is this line calculated? Distributions for 1K of money?
by ray.james
Fri Aug 19, 2016 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Tilter's
Replies: 18
Views: 1200

Re: Tilter's

Jerry,
Whats missing is the QDI ratio. For vxus(international) that is close to 75%+. Emerging markets it is around 50%. IEMG dividend yield seems very low compared to VWO though
by ray.james
Fri Aug 19, 2016 1:09 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3145
Views: 736817

Re: U.S. stocks in freefall

boglerdude wrote:Those of you following the markets in fall 2008, did you watch the S&P EPS tank before the sell off?

Or was the data delayed. I'm wondering how PE could have gotten so high.


https://www.quandl.com/data/MULTPL/SP500_EARNINGS_MONTH-S-P-500-Earnings-by-Month
Go to table view
by ray.james
Thu Aug 18, 2016 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Efficient way to build credit
Replies: 21
Views: 912

Re: Efficient way to build credit

She had financial troubles leading to her poor credit (write offs, late payments, etc.) So from what I am hearing is just add her as a joint borrower on my credit card and her credit should go up due to my credit but will it still increase by using that credit card? I do the same thing, use my cred...
by ray.james
Thu Aug 18, 2016 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Efficient way to build credit
Replies: 21
Views: 912

Re: Efficient way to build credit

While length and number of accounts impact the score; 75% of rating is based on 3 things: 1) credit utilization 2) accounts paid on time 3) recent enquirers - this is ok when under 2 My wife had few credit cards but her limit was low. I added her as authorized user. Most banks report this. The only ...
by ray.james
Thu Aug 18, 2016 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA asset protection?
Replies: 11
Views: 638

Re: Rollover IRA asset protection?

what situational protections are you looking for apart from bankruptcy? A few I can think of liability, IRS, dirvorce etc., From what I have read for rollover IRA up to ~1mill is protected. But this is state law. The amount is different with states but pretty much similar across the board with most ...
by ray.james
Wed Aug 17, 2016 4:12 pm
Forum: Personal Consumer Issues
Topic: Buy vs Rent & Price Limit Help
Replies: 6
Views: 375

Re: Buy vs Rent & Price Limit Help

There are housing options anywhere from $150k to $500k in the immediate area That sound like quite a range. Would your family be happy in 3 bed or 4 bed house or need more looking at future? Is this a city and whether town houses work for you etc? Narrow this range first by size and type of house. ...
by ray.james
Tue Aug 16, 2016 2:21 pm
Forum: Investing - Theory, News & General
Topic: Budgeting - 50-20-30 suggested rules for young adults
Replies: 7
Views: 616

Re: Budgeting - 50-20-30 suggested rules for young adults

When I was a grad student, my stipend was 980 per month(taxes -0 fed, state $100_ish). It depends on place, school and whether one is PHD/full time/half RA etc etc., My necessities were 750 per month. I saved 150-200 a month . As a student it depends on how much the necessities cost in the location....
by ray.james
Mon Aug 15, 2016 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: buying used car smarter than buying new?
Replies: 89
Views: 4723

Re: buying used car smarter than buying new?

There are cars that depreciate faster and cars that are very slow. I bought a 3 year old car with just 15k miles. I can even smell the new leather at 45% off. That's because it is an entry luxury and model has changed. If one tried the same with Honda accord/civic, I don't think it will depreciate m...
by ray.james
Fri Aug 12, 2016 1:45 am
Forum: Investing - Help with Personal Investments
Topic: VOB vs VWOB vs VXUS [Emerging markets bond vs. total international]
Replies: 12
Views: 683

Re: VOB vs VWOB vs VXUS [Emerging markets bond vs. total international]

... From Vanguard, "Because the fund invests only in U.S. dollar-denominated bonds, it does not subject U.S.-based investors to currency risk." Vanguard does say that, and in context it's true. However, emerging market government finances are highly exposed to currency risk precisely beca...
by ray.james
Fri Aug 12, 2016 12:19 am
Forum: Investing - Theory, News & General
Topic: Anyone looking at changing AA in presence of Current Valuations?
Replies: 71
Views: 3452

Re: Anyone looking at changing AA in presence of Current Valuations?

I don't think markets are too much overvalued given bond rates.

I did make speculative change for emerging to be 50% of international early this year. That has paid back very well. Yet to re-balance back.
by ray.james
Wed Aug 10, 2016 2:06 pm
Forum: Investing - Theory, News & General
Topic: www.portfoliocharts.com ... "The Coolest Portfolio Tool on the Web"?
Replies: 110
Views: 19803

Re: www.portfoliocharts.com ... "The Coolest Portfolio Tool on the Web"?

Tyler,
Just wanted to thank you for the awesome website and it is a lot of work! I have been playing with lots of portfolio combinations to understand different aspects of risks.
by ray.james
Tue Aug 09, 2016 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: VOB vs VWOB vs VXUS [Emerging markets bond vs. total international]
Replies: 12
Views: 683

Re: VOB vs VWOB vs VXUS [Emerging markets bond vs. total international]

One is a stock and another is bond with mild stock volatility. That's a fundamental difference. If you are happy with yield and the volatility for a bond, I guess that is ok. Also, please treat it as part of stock allocation. The yields can become be real negative return as currency rates change- yi...
by ray.james
Tue Aug 09, 2016 4:20 pm
Forum: Investing - Theory, News & General
Topic: Talking about the Bogleheads approach with non-Bogleheads
Replies: 64
Views: 4716

Re: Talking about the Bogleheads approach with non-Bogleheads

In both cases the problem is psychology, not cognition. I believe this is the key. People are in either half full glass or empty glass approach. It is hard to fight against psychology of; they know something and are doing right. I had much better success with someone who is over worried that they d...
by ray.james
Thu Jul 28, 2016 5:44 pm
Forum: Investing - Theory, News & General
Topic: FTSE ex US Small Cap Fund Performance
Replies: 27
Views: 1395

Re: FTSE ex US Small Cap Fund Performance

Doc, I think it is also important to consider that it is compared with just 6 funds in its category. So for average it has to be 3rd or 4th? There are 29 distinct funds in the M* Foreign Small/Mid category. Perhaps you are looking only at ETFs. Vg FTSE sml cap institutional ranks 82. You are right....
by ray.james
Thu Jul 28, 2016 3:57 pm
Forum: Investing - Theory, News & General
Topic: FTSE ex US Small Cap Fund Performance
Replies: 27
Views: 1395

Re: FTSE ex US Small Cap Fund Performance

Doc,
I think it is also important to consider that it is compared with just 6 funds in its category. So for average it has to be 3rd or 4th?
by ray.james
Fri Jul 22, 2016 4:10 pm
Forum: Investing - Theory, News & General
Topic: I'm Calling an Emerging Markets Bottom
Replies: 201
Views: 29612

Re: I'm Calling an Emerging Markets Bottom

EM is having a blast. I am glad I did not jump off bandwagon. Slowly increased allocation as forward valuation went under 10 making it close to 50-50 with developed international. To be fair, EM actually performed less than expected as index is overloaded with china which was Flat . The other 50% th...
by ray.james
Fri Jul 22, 2016 12:52 am
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 193
Views: 16905

Re: How many folks choose to give inheritance to their children in unequal portions?

Looking through extended family, here are some things that worked or didn't I have seen people who left house with no sell/loan/trust instructions to the struggling child and had success. Some one I know left farm land and when the child finally got his act together and turned his life around. I hav...
by ray.james
Thu Jul 21, 2016 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!
Replies: 37
Views: 2645

Re: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!

If you contribute $5k and do not deduct it from your taxes and convert $5k to Roth, that $5k is not subject to the 5 year clock because it was not taxable at the conversion. Yes, it is very very confusing. (Hope I got it right. :P ) I think I understand now. Since the income was already taxed and n...
by ray.james
Thu Jul 21, 2016 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!
Replies: 37
Views: 2645

Re: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!

That's good. I still can't figure why they think you owe for $22k, not $11k unless there is something else wrong with your return.. I had similar experience with IRS when I used roth as emergency fund during first 2 years out of school. What happened was IRS treats IRA withdrawals taxable unless we...
by ray.james
Thu Jul 21, 2016 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!
Replies: 37
Views: 2645

Re: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!

There is a 10% penalty for withdrawing the $1.97 in earnings because you did not observe the 5 year waiting period on the amount taxed at conversion. -And there should be both tax and penalty on the $17.85 in earnings that occurred inside the Roth IRA assuming you were not over 59.5 and your Roth I...
by ray.james
Thu Jul 21, 2016 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!
Replies: 37
Views: 2645

Re: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!

1) First is it reported as deductible or non deductible ira when you filed taxes. --Get 2014, 2015 8606 forms to confirm what was done. If one is not filed you need to file one. -- If this was filed as deductible ira, the income tax has to be paid. 2) Irrespective of above, if you converted money to...
by ray.james
Wed Jul 20, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: IRS questioning my backdoor roth?
Replies: 46
Views: 5752

Re: IRS questioning my backdoor roth?

In my case turbotax did not report 8606 correctly. The first time I did the questions, it was very confusing.

Also, 8606 is an independent form. So you do not need to amend the entire return to file it with IRS.
by ray.james
Tue Jul 19, 2016 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with a bit of extra money each month? (UPDATED)
Replies: 41
Views: 3217

Re: What to do with a bit of extra money each month?

Hello Ron, I always appreciated your advice in bay area home buying and other bay area threads. I did not see information on kids/529. If that is not a factor involved, backdoor mega Roth is a good option if it is possible through wife's work place. Based on information, between pension, 401k and so...
by ray.james
Fri Jul 08, 2016 3:58 pm
Forum: Investing - Theory, News & General
Topic: S+P 500 is not very diversified
Replies: 77
Views: 5719

Re: S+P 500 is not very diversified

On the other side of the aisle are the studies that show just 30 stocks are needed to get the diversification and R2 to as much as 85-90% of S&P 500. If the goal of diversification is to move away from the risks of single stock, then this is probably the best deal out there. Our wiki has surpris...
by ray.james
Tue Jul 05, 2016 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Social security loss if retiring early
Replies: 28
Views: 2616

Re: Social security loss if retiring early

englishgirl wrote:I think this is a nice write up: http://rootofgood.com/early-retirement-social-security/


This is excellent link. I was about to post what are bend points. Thanks for a good primer to understand social security.
by ray.james
Tue Jul 05, 2016 2:35 am
Forum: Personal Finance (Not Investing)
Topic: Real estate location - Important factors
Replies: 19
Views: 1411

Re: Real estate location - Important factors

Thank you all for the responses. It provided quite a few things that I did not think about. The school districts are king in maintaining the price where I live. However some of the items like cul de sac, road, electric wires etc etc., just raises the price too much in bay area. Probably by same perc...
by ray.james
Mon Jul 04, 2016 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate location - Important factors
Replies: 19
Views: 1411

Real estate location - Important factors

Hello all, We live in Bay are and before that Phoenix. after seeing the last bubble and the current real estate market; I am wondering what factors influence 1) Price/value of the home. 2)Less reselling time. This is related to above but not complete correlation. In my limited home search based on p...
by ray.james
Fri Jul 01, 2016 1:58 pm
Forum: Personal Consumer Issues
Topic: How many of you have cut cord?
Replies: 148
Views: 9710

Re: How many of you have cut cord?

I haven't had cable since I left home for college. Early Netflix adopter. Thinking of HBO now. OTA channels do the trick. Internet live casting does most of the other content I watch. So does a sizable chunk in my generation. Except for those that are huge games fan, most of us survive on Netflix.

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