Search found 870 matches

by ryman554
Sat Feb 24, 2018 4:55 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey over simplifying Roth vs. Traditional IRA?
Replies: 85
Views: 9297

Re: Dave Ramsey over simplifying Roth vs. Traditional IRA?

All annualized returns (not arithmetic mean): Jan 1929 - Dec 1944 before inflation returns of SP500 5.6% (after inflation 4.9%) Jan 1938 - Dec 1944 before inflation returns of SP500 9.6% (after inflation 6.5%) Jan 1914 - Dec 1944 before inflation returns of SP500 10.4% (after inflation 8.4%) Jan 20...
by ryman554
Fri Feb 23, 2018 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Roth Return of Excess Contributions Issue
Replies: 3
Views: 320

Re: Roth Return of Excess Contributions Issue

Hello, I requested a distribution of excess contributions made to a Roth in 2017 because I believed my wife and I would be over the income limit for such contributions. However, it turns out we were eligible to make those contributions. The record keeper already issued a check for the “excess contr...
by ryman554
Fri Feb 23, 2018 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Employee Stock Purchase Plan - is this even valuable/worth it?
Replies: 34
Views: 2181

Re: Employee Stock Purchase Plan - is this even valuable/worth it?

The additional tax filing effort is real, especially if you are not already filling out short and long-term capital gains on schedule D forms because you lack other taxable accounts. The reporting is sometimes confusing and inconsistent and the documentation provided varies by employer and the brok...
by ryman554
Fri Feb 23, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3271

Re: Tax Penalty on Roth IRA

It looks like I made more money last year than I thought I would and I went from no penalty to all of a sudden having to pay 6% on the full $5500. What's the best strategy in this situation? Replying to the initial post so hopefully the OP sees this. We are all confused as to what you actually have...
by ryman554
Fri Feb 23, 2018 1:49 am
Forum: Investing - Help with Personal Investments
Topic: AMT in Turbo Tax for Mortgage Interest
Replies: 6
Views: 663

Re: AMT in Turbo Tax for Mortgage Interest

So you owe AMT. Nothing confusing about it. Why do you think you should not owe AMT?

It's.not the mortgage that's doing it. Look at the form to see the real reason.

AMT is annoying, to be sure. Enjoy 2018 and the AMT relief.
by ryman554
Thu Feb 22, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Safe to file taxes now?
Replies: 57
Views: 4611

Re: Safe to file taxes now?

Depending on your financial portfolio, there are some things you can't know until you get your 1099. If you've invested in an international fund, for example, you won't know your dividend amount or your foreign tax credit (the FTC will change your dividend amount you thought you were keeping track ...
by ryman554
Thu Feb 22, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Employee Stock Purchase Plan - is this even valuable/worth it?
Replies: 34
Views: 2181

Re: Employee Stock Purchase Plan - is this even valuable/worth it?

I think we should be careful about the words "essentially no risk of loss" in relation to a single public companies stock price. Given the exposure is for 1 day (and one day only) every 6 months with an ability to get out of the plan (in every ESPP I have seen) and get a return of funds literally t...
by ryman554
Wed Feb 21, 2018 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Safe to file taxes now?
Replies: 57
Views: 4611

Re: Safe to file taxes now?

I filed late last week soon after getting the 1099s. We didn't want to risk it either... plus my wife kept bugging me to file which I kept telling her that we can't since we still needed the 1099s for our brokerage accounts. So, now that we got them, no more delays. I'm picking on you, but I'm real...
by ryman554
Wed Feb 21, 2018 11:13 am
Forum: Personal Finance (Not Investing)
Topic: First time Home Buyer in HCOL area - funds check
Replies: 21
Views: 2123

Re: First time Home Buyer in HCOL area - funds check

Monthly Budget breakdown - Rent - 1760 Elec + Gas - 150 Internet + cable - 60 Fuel - 75 Cellphone (2lines) - 80 Car insurance + scheduled maintenance - 140 Groceries - 250 Baby - 200 Eat out - 150 Etc - 300-400 Daycare - 1350 (not started yet thanks to mom :)) only thing not here is any vacations i...
by ryman554
Wed Feb 21, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 68
Views: 8268

Re: How many of you use the "4% rule" during retirement?

Retired 12/31/2017. Our initial withdrawal rate is 3.1%, with the ability to lower it to 2.6% if need be - resetting annually. As things play out, we will likely be able to “loosen the screws” considerably, but at 3.1% our budgeted post retirement spend is considerably higher than in pre-retirement...
by ryman554
Wed Feb 21, 2018 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3271

Re: Tax Penalty on Roth IRA

Oh yikes! I did not know that. So what does recharacterize and conversion entail? And so the next year if my income drops it'll stop getting charged that $330? Recharacterize your ROTH converstion to a tIRA. Pretend you never contributed to a ROTH. This is a non-taxable event. Your IRA custodian sh...
by ryman554
Tue Feb 20, 2018 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Penalty on Roth IRA
Replies: 43
Views: 3271

Re: Tax Penalty on Roth IRA

You know it's 6% per year, right?

Recharacterize and do a conversion.
by ryman554
Tue Feb 20, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3882

Re: Sequence of returns risk while accumulating

I am very suspect that difference between success and failure was the house. A 500k mortgage, taxes and so on is going to be on the order 4k payment. That isn't going to be enough to be the difference between success and failure over 10 years (and if it is over 10 years, they making money on their ...
by ryman554
Fri Feb 09, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Live / work in California - Technology Career
Replies: 99
Views: 5922

Re: Live / work in California - Technology Career

Looking for most desirable and have the best weather. Unfortunately, that's not super helpful unless you're making $500k+ yearly. Not kidding. Take the bay area -- it ranges dramatically from coastal (coldish) to inland (gets to 100 in the summer frequently) over a space of 60 miles or so. Within t...
by ryman554
Thu Feb 08, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: How to deal with regret
Replies: 87
Views: 7427

Re: How to deal with regret

About one year ago I invested quite a large sum of money in stocks over a few month period. Now I am seeing the gains being rapidly wiped out and I fear that I will soon begin to see some losses. Lauretta: In the past months, you have come on here asking (pumping?) about bitcoin, discussing (advoca...
by ryman554
Wed Feb 07, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by mutual fund holders
Replies: 46
Views: 6785

Re: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by mutual fund holders

A system at Fidelity could track this data and start selling equity at 3 PM estimating that it will be even cheaper at 4pm. Shortly after 4pm they buy back same amount of equity on a much lower price. The problem here is that Fido can't simply just buy things back after 4pm. I know there is after-h...
by ryman554
Tue Feb 06, 2018 9:03 am
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10077

Re: RBD alert [Really Bad Day]

The psychological reaction I'm seeing is quite interesting. If the stock market had ended 2017 a little lower (about 6% lower) and we have gained 1-2% in 2018, to end up precisely where we are today, Feb. 5 2018, we'd all be happy. Instead, we had a ridiculously exuberant January - we all knew that...
by ryman554
Sat Feb 03, 2018 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: AMT People...
Replies: 4
Views: 896

Re: AMT People...

Which is just about the amount retaxed via the SALT cap. In this sense, it functions as a "back door" AMT replacement.

I still make out better (I think) with the rate reduction, but it's close.
by ryman554
Fri Feb 02, 2018 11:16 am
Forum: Personal Finance (Not Investing)
Topic: ESPP - how much extra cash to keep around to cover the smaller paycheck and when?
Replies: 6
Views: 532

Re: ESPP - how much extra cash to keep around to cover the smaller paycheck and when?

It would be easy to always keep, say, the entire $6-7k extra in my checking account which gets whittled down until the payout from the sale, but that's money sitting around not earning anything. Do this, and here is the fallacy: After the first ESPP cycle, I believe you realize that the ESPP become...
by ryman554
Wed Jan 31, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: Wow: Shiller PE is 34.52
Replies: 52
Views: 6331

Re: Wow: Shiller PE is 34.52

Schiller recently said that stock AA should be on the lower side. Other analysts think it's wonderful the earnings surprises last quarter. I think I'll go with Schiller. Why, may I ask, would you go with Shiller (who, admittedly, in a post below yours, said that CAPE should not be used to market ti...
by ryman554
Sun Jan 28, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: rebalance based on pre or post tax values?
Replies: 9
Views: 570

Re: rebalance based on pre or post tax values?

Unless you are talking about taxable account, it doesn't matter.

You can always exchange $$ between account with no penalty with tax advantage accounts, so it really is one big lump of cash.
by ryman554
Thu Jan 25, 2018 4:48 pm
Forum: Personal Consumer Issues
Topic: Seeking help with Asia airline flights
Replies: 6
Views: 383

Re: Seeking help with Asia airline flights

We will be taking two Asian tours, back-to-back, in September and October 2018. We need to book three airline flights. We would like to fly business class from San Francisco to Beijing. Economy from Shanghai to Ho Chi Minh City, Vietnam. (Not sure of class) Siem Reap, Cambodia to San Francisco. Our...
by ryman554
Wed Jan 24, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Trying to pay down mortgage, but...
Replies: 32
Views: 2945

Re: Trying to pay down mortgage, but...

Isn't there option D: D. Stop automatic bill pay via your mortgage servicer, instead do bill pay via your checking account each month and contribute whatever you want. Even if D would only advance your due date by your mortgage servicer's accounting, if you keep making the monthly payment (plus any...
by ryman554
Wed Jan 24, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Help with Inherited IRA RMD
Replies: 11
Views: 866

Re: Help with Inherited IRA RMD

There's reasonable argument for prioritizing low-volatility assets such as bonds in an account currently generating RMDs; switching the whole account to the Schwab bond index and having a higher stock allocation in other locations would therefore be one possibility to consider, +1. I'd stick my ent...
by ryman554
Wed Jan 24, 2018 9:56 am
Forum: Investing - Theory, News & General
Topic: The Power of Working Longer
Replies: 77
Views: 9113

Re: The Power of Working Longer

I'm 25 and never want to retire. I'm 35 and life with kids is looking rosy, and I'm running marathons! I'm 45 and counting the days (ok, years, really) until FI. Oh, and I'm fat and lazy too. I wonder what I'll think when I'm 55. *** As you get older you value time more than money. And you realize t...
by ryman554
Wed Jan 24, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: am I crazy to do a lump sum investment with my entire retirement in this current stock market?
Replies: 47
Views: 5847

Re: am I crazy to do a lump sum investment with my entire retirement in this current stock market?

Here's a stunning thought. I lump sum my retirement (and other) funds EVERY SINGLE DAY, even in this stock market because I don't sell them for cash. Read it again and internalize it. I am new to investing. I am 35 yr old and my husband and I are both high-earners. I'd like to retire early... maybe ...
by ryman554
Tue Jan 23, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: TurboTax and backdoor Roth IRA error?
Replies: 8
Views: 774

Re: TurboTax and backdoor Roth IRA error?

Did you enter the Roth as a contribution? It's a conversion from a traditional IRA to a Roth IRA, not a contribution. Enter the Traditional IRA as a contribution then do a conversion to the Roth. That's almost undoubtedly it. You contributed $5500 to your tIRA You contributed $0 to your ROTH. You c...
by ryman554
Mon Jan 22, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 35058

Re: Year 2000 retirees using the '4% rule' - Where are they now?

RMDs are not the bugaboo that many think they are. And if you don't need the RMDs, you can just reinvest them through a taxable account. This bears repeating and highlighting. So many times I have seen folks ask what to do with the part of their RMD they don't need. There is the unspoken need to sp...
by ryman554
Mon Jan 22, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: 4% Rule Clarification in regard to taxes
Replies: 6
Views: 1024

Re: 4% Rule Clarification in regard to taxes

In my case, I just targeted the same net taxable income in retirement as when working, 1099-R vs W-2. So there was less confusion on this issue. Others with more diversified portfolios will need to think differently... That's a bit high, unless you are discounting savings as well. That's something ...
by ryman554
Sat Jan 20, 2018 12:32 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 35058

Re: Year 2000 retirees using the '4% rule' - Where are they now?

What is the recommended SWR for those not interested in leaving behind a portfolio (i.e., no heirs)? I guess this would be calculated by discovering a percentage that resulted in that graph ending at $0 at the end of x# years? Understand what "SWR" means. It means a maximal withdrawal rate that doe...
by ryman554
Thu Jan 18, 2018 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Exit strategy for bitcoin
Replies: 72
Views: 5189

Re: Exit strategy for bitcoin

Because things grow, and it's impossible to predict where the growth will occur, please buy everything . Dont pick and choose, don't try to time it, don't get cute. Just buy everything and focus on improving your life elsewhere. If you want to gamble on bitcoin, go for it. But don't then come askin...
by ryman554
Thu Jan 18, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Exit strategy for bitcoin
Replies: 72
Views: 5189

Re: Exit strategy for bitcoin

the truth is that I bought because it went up so much , so I bought it 'just in case' it continues to go up at a similar rate. I don't think it will have a use as a currency, but I like the argument that it should be considered a commodity and it might perhaps replace gold, in which case it still h...
by ryman554
Tue Jan 16, 2018 10:57 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 35058

Re: Year 2000 retirees using the '4% rule' - Where are they now?

But if you're planning for a 40 year retirement, 4% might not be overly conservative. I keep hearing this from folks, and I can't figure out why the "SWR" for 40 years has to be significantly lower than for 30 years. There's lot of feeling out there, but no real hard data. Yes, we do not have a who...
by ryman554
Tue Jan 16, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 35058

Re: Year 2000 retirees using the '4% rule' - Where are they now?

But if you're planning for a 40 year retirement, 4% might not be overly conservative. I keep hearing this from folks, and I can't figure out why the "SWR" for 40 years has to be significantly lower than for 30 years. There's lot of feeling out there, but no real hard data. Yes, we do not have a who...
by ryman554
Tue Jan 16, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Gifted $1,000: Max out Roth or go towards smaller balances on credit cards?
Replies: 10
Views: 600

Re: Gifted $1,000: Max out Roth or go towards smaller balances on credit cards?

Use $387 of that $1000 to pay off the 27.9% credit card. Then use $613 to pay down the 23.9% credit card. Then find--somehow, someway--a way to accumulate another $1940 to pay off the rest of the credit cards. Then start an emergency fund so that you don't ever have to carry a balance on a credit c...
by ryman554
Fri Jan 12, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?
Replies: 4
Views: 558

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

I've begun the process of rolling my accounts over to Fidelty and have been pleased with the process. Until now I have had everything in FSTVX, but as the account grows (and other rollovers complete) I will be looking to add a dedicated International Fund and Bond fund. The question is this: If you...
by ryman554
Wed Jan 10, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 35058

Re: Year 2000 retirees using the '4% rule' - Where are they now?

Donations: I give very minor charitable donations on a regular basis, but gave a million $ just before each of the two major market falls since 2000. Because it was only after the major market run-ups that I felt I could afford doing so. I feel that after the recent market run-ups, now might also b...
by ryman554
Tue Jan 09, 2018 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax
Replies: 249
Views: 35850

Re: Fidelity free Turbotax

Easy, and been discussed before. Private Client. (>1M in household assets, 401(k) may be excluded) Active trader. (not very bogleheadish) If you have to ask if you are either of the two, you aren't. Go buy a copy. Your 401(k) is not excluded from Private Client calculations, although ONLY having a ...
by ryman554
Tue Jan 09, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 35058

Re: Year 2000 retirees using the '4% rule' - Where are they now?

What this shows is that, yeah, a 4 % withdrawal rate, upped w inflation, works over 30 years. But you have to have a stomach of steel and be ok watching your nest egg get at least partially consumed. This argues for Bernstein’s more conservative 2-3%. Your retired and have no income. Why should you...
by ryman554
Sun Jan 07, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: How often to invest; or: how to avoid commissions?
Replies: 21
Views: 1537

Re: How often to invest; or: how to avoid commissions?

I opened a brokerage account with Schwab recently and I am really happy with it. With the help of you guys, I invested a lot of my money already (see here ). I am now working on my investment plan, and I'd like to make sure I can invest every month (or ideally every pay period). My problem now is t...
by ryman554
Sun Jan 07, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: 3rd update from a panicked investor
Replies: 14
Views: 3146

Re: 3rd update from a panicked investor

Your portfolio appears to be quite risky compared to your age. At age 48 the typical percentage of bond ownership would be 38% of total asset. Says who? Age-10 in bonds? Not a particularly good rule, IMHO, or at best one with very little theoretical justification. Look at the glide paths for target...
by ryman554
Fri Jan 05, 2018 3:32 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7879

Re: Paying off mortgage before investing at all?

I've heard this advice to just save the money you would use to pre-pay your mortgage in a separate account until that account is big enough to pay off the mortgage in one fail swoop. This can certainly make sense, but let's not ignore the costs involved in doing so. The difference between a mortgag...
by ryman554
Fri Jan 05, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7879

Re: Paying off mortgage before investing at all?

I considered the refi at 15 years at 3.75%. But being commission only income earner, I like the idea of the 30 just in case business were to go south If that is the reason you are not refinancing -- you are cash flow sensitive and should keep yourself as liquid as possible. Therefore, listen to Kla...
by ryman554
Tue Jan 02, 2018 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax
Replies: 249
Views: 35850

Re: Fidelity free Turbotax

busdriver wrote:
Mon Jan 01, 2018 8:01 pm
TimeRunner wrote:
Mon Jan 01, 2018 7:35 pm
I wonder what Fido's criteria is????
Me too! :confused
Easy, and been discussed before.

Private Client. (>1M in household assets, 401(k) may be excluded)
Active trader. (not very bogleheadish)

If you have to ask if you are either of the two, you aren't. Go buy a copy.
by ryman554
Tue Jan 02, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: 2nd million is easier!
Replies: 123
Views: 23946

Re: 2nd million is easier!

Yes, it's easier. First million at 39, second by 43. This year, 44, we added 550k. I don't think this rate is sustainable. ~20% * 2M = 400k + savings, I assume. Now, let's go look a a chart of expected returns of the S&P 500. Sustainable? No. Within the norm of the S&P returns? Sure. Keep on adding...
by ryman554
Tue Jan 02, 2018 6:21 am
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7879

Re: Paying off mortgage before investing at all?

But in the course of discussing this question, the author makes a point that I hadn't seen before. If you have a mortgage and are making your regular mortgage payments, but are simultaneously using extra income to save for retirement in equities, you are effectively borrowing money to invest in equ...
by ryman554
Tue Jan 02, 2018 6:09 am
Forum: Investing - Help with Personal Investments
Topic: Suddenly my mortgage doesn't seem that great
Replies: 66
Views: 10784

Re: Suddenly my mortgage doesn't seem that great

1) While it does happen, There aren’t too many years when the stock market has beaten a double digit growth year with another one. This seems like a curious claim to make unless I'm misunderstanding the point you're trying to make. The reality is actually completely the opposite of what you claim. ...
by ryman554
Mon Jan 01, 2018 2:15 am
Forum: Investing - Help with Personal Investments
Topic: SWR, different perspective.
Replies: 38
Views: 3146

Re: SWR, different perspective.

Depending on your expected longevity, look into buying a ladder of annuities periodically purchased over a decade (interest rate diversification), using most of your fund assets, and start spending all of your steady income from every source. Put your few remaining fund assets in a 2050 retirement ...
by ryman554
Sun Dec 31, 2017 1:32 am
Forum: Investing - Help with Personal Investments
Topic: Suddenly my mortgage doesn't seem that great
Replies: 66
Views: 10784

Re: Suddenly my mortgage doesn't seem that great

Where exactly do you see me saying anyone should spend $2k to save a dollar? I realize you wanted to make a political rant, but why must you twist my words to do it? I was just pointing out that the OP was very close to exceeding the standard deduction, which they didn't seem to realize. After goin...
by ryman554
Sun Dec 31, 2017 1:08 am
Forum: Personal Consumer Issues
Topic: Crater Lake trip from Bay area in June
Replies: 21
Views: 1460

Re: Crater Lake trip from Bay area in June

Skip Klamath Falls. It would be like staying in Stockton when you are visiting the Bay Area. My advice with kids? Put in some extra driving and stay in Sun River which is a resort town about 70 miles north of Crater Lake. There are a bazillion VRBO and AirBnB rentals in Sun River and there is a ton...