Search found 692 matches

by ryman554
Sun Aug 20, 2017 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion 5yr Holding Period?
Replies: 20
Views: 1787

Re: Roth Conversion 5yr Holding Period?

Now you have to determine how you will use this basis if your TIRA is down to $1. One way to do that if you still have a QRP in place is to do a partial direct rollover from the pre tax QRP to an IRA equal to your basis. You then convert that rollover amount to a Roth IRA tax free applying the rema...
by ryman554
Fri Aug 18, 2017 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Lost $7000 today in ONE DAY!
Replies: 183
Views: 14891

Re: Lost $7000 today in ONE DAY!

Hi everyone, I lost $7000 today in one day. My portfolio is below. Ironically, I've just returned from a store where I was arguing with a cashier over 0.50 cents! Got home and saw that the portfolio went down by $7k... :oops: Should I change the allocation if this kind of downswing bothers me? :con...
by ryman554
Fri Aug 18, 2017 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion 5yr Holding Period?
Replies: 20
Views: 1787

Re: Roth Conversion 5yr Holding Period?

1. Convert when the markets crash. Really! If you want to convert 100 shares of Fund X at $50 now and next month the shares are worth $25, convert then. I think of it as "stocks (and conversion taxes) are on sale". If you have already converted earlier in the year, leave the first conversion there ...
by ryman554
Fri Aug 18, 2017 8:21 am
Forum: Investing - Help with Personal Investments
Topic: Lost $7000 today in ONE DAY!
Replies: 183
Views: 14891

Re: Lost $7000 today in ONE DAY!

What, did something happen? Paul Yeah, I'll tell you what happened. It's ryman554 investing a significant bolus of money (>$10k) earlier this week during the semi-annual bonus/RSU/ESPP money recovery process. It never fails to cause corrections of roughly the same amount of $$ that was put in.... I...
by ryman554
Thu Aug 17, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Another bay area housing thread..
Replies: 132
Views: 10864

Re: Another bay area housing thread..

watchnerd wrote:
Thu Aug 17, 2017 12:00 pm
ryman554 wrote:
Thu Aug 17, 2017 11:03 am
watchnerd wrote:
Thu Aug 17, 2017 9:39 am
I'll tell when it closes.
More than three days after closing, I hope.....
What's the significance of 3 days?
Apparently, the buyer still has three days after close of escrow to cancel the sale. States may vary, but just in case the buyer is looking here... =)
by ryman554
Thu Aug 17, 2017 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Another bay area housing thread..
Replies: 132
Views: 10864

Re: Another bay area housing thread..

watchnerd wrote:
Thu Aug 17, 2017 9:39 am
I'll tell when it closes.
More than three days after closing, I hope.....
by ryman554
Thu Aug 17, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: How long to keep IRA records?
Replies: 54
Views: 3134

Re: How long to keep IRA records?

Thanks for all the useful information folks. Can't believe I've misunderstood this concept all these years. The good news is that I've kept good records, which are discussed in the instructions for FORM 8606. There is another "work around" similar to the one I mentioned above, but closer to what yo...
by ryman554
Wed Aug 16, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: How long to keep IRA records?
Replies: 54
Views: 3134

Re: How long to keep IRA records?

Didn't mean to go on a tangent here, but my point was when you have deductible AND non-deductible in the same IRA account, in other words co-mingled contribution dollars, it can get difficult for you or your beneficiaries to determine the correct taxable amount. My personal situation is to liquidat...
by ryman554
Wed Aug 16, 2017 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Bond - Should I sell?
Replies: 13
Views: 1168

Re: Inherited Bond - Should I sell?

Without even looking at what the bond is, I say "sell". This is a blanket statement good for any inheritance. This comes from the perspective of my (sadly) medium-term plan to sell everything I can at the day of death to simplify my life later. There is no other time when you get the ability to reba...
by ryman554
Wed Aug 16, 2017 8:38 am
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 61
Views: 7874

Re: 30,000 in Checking Account

It seems a lot of you guys think a 4% return is good and I should be happy with that. I guess the way I look at it, at my age (31) I would like to see a 8% return at this point in my life Most of us no matter our age would be ecstatic about reliable 8% returns. But that's not on the table. You shou...
by ryman554
Tue Aug 15, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: Caution for those using fidelity brokeragelink and rollovers
Replies: 3
Views: 395

Re: Caution for those using fidelity brokeragelink and rollovers

I rolled in some money into fidelity brokerage link. The money was allocated automatically according to instructions for future contributions such as from paychecks. I had standing investment orders all weekend and Monday morning, When I got home Monday evening, the orders were cancelled by Fidelit...
by ryman554
Tue Aug 15, 2017 8:40 am
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 61
Views: 7874

Re: 30,000 in Checking Account

It's a 401a plan. And Yep I don't have a choice of funds to select, just get the 4% return Yes, 8.5% is the max the state will put in. They will not put in more if I invest more than 6% It's also a 4% guaranteed rate of return. Do not discount the guarantee part of it.... This is better than any bo...
by ryman554
Mon Aug 14, 2017 1:02 pm
Forum: Personal Consumer Issues
Topic: MiFi for International Travel
Replies: 10
Views: 931

Re: MiFi for International Travel

Better yet is to go get a Google Fi plan.

International data costs the same as domestic data.

For a frequent international traveler, can't be beat.
by ryman554
Mon Aug 14, 2017 8:14 am
Forum: Investing - Theory, News & General
Topic: Dave Ramsey spends two segments on his investing advice
Replies: 65
Views: 6868

Re: Dave Ramsey spends two segments on his investing advice

We should separate his "get out of debt" advice from his investment advice. The former can be life changing for those in debt. The latter, well, it's not the Boglehead way. His advice on personal finance is junk, too. He preaches extreme debt aversion and if you follow his advice, you'll end up dir...
by ryman554
Sat Aug 12, 2017 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down home or increase Retirement Contributions
Replies: 21
Views: 1363

Re: Pay down home or increase Retirement Contributions

I am a fan of paying off the mortgage. Why, you never know what lies in the future. Like loss of job and delay of getting another job. Easy to pay bills when no mortgage. To me, potential job loss is an argument against prepaying a mortgage. You need liquidity to deal with a long period of unemploy...
by ryman554
Fri Aug 11, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Feeling guilty about travel expenses
Replies: 25
Views: 3037

Re: Feeling guilty about travel expenses

I have a yearly net income of 29k Euro With my last 2 trips I spend combined about 5k and the trip in September will cost me around 3k so that's 8k total. That is roughly 27.5% of my yearly net income, it's also more than my investment contributions, which are about 3k per year. I am of two minds: ...
by ryman554
Fri Aug 11, 2017 9:30 am
Forum: Investing - Theory, News & General
Topic: 4% Rule has changed.....not
Replies: 80
Views: 8166

Re: 4% Rule has changed.....not

The only time it "failed" was because of inflation. So far, a stock market crash hasn't been enough to derail it. And again, 'failed" for most people here means you go on 2 vacations a year instead of 4. It doesn't mean you eat cat food under a bridge. 4% is very conservative. We agree on the 4% ru...
by ryman554
Wed Aug 09, 2017 8:49 am
Forum: Investing - Help with Personal Investments
Topic: What is an appropriate lower risk asset allocation once one has "won the game"
Replies: 50
Views: 5905

Re: What is an appropriate lower risk asset allocation once one has "won the game"

Questions like this draw comments from all angles. It boils down to this: Forget about the wiki. OP: Ask yourself, what are you investing for? I will assume that your income stream > 100% of your current burn rate. I don't believe in "winning the game", but this is as close as one is going to get to...
by ryman554
Tue Aug 08, 2017 1:30 pm
Forum: Investing - Theory, News & General
Topic: Deja Vu.. are there too many houses for sale?
Replies: 47
Views: 4131

Re: Deja Vu.. are there too many houses for sale?

Typically no--sellers review all offers at a time specified in advance--prospective buyers put "escalator" clauses in their offers saying they will bid, say, $350k but will outbid any competing offers by $2000 (or whatever) up to a limit, like $475k. Who in their right mind would make an offer like...
by ryman554
Tue Aug 08, 2017 9:31 am
Forum: Investing - Theory, News & General
Topic: Deja Vu.. are there too many houses for sale?
Replies: 47
Views: 4131

Re: Deja Vu.. are there too many houses for sale?

Typically no--sellers review all offers at a time specified in advance--prospective buyers put "escalator" clauses in their offers saying they will bid, say, $350k but will outbid any competing offers by $2000 (or whatever) up to a limit, like $475k. Who in their right mind would make an offer like...
by ryman554
Mon Aug 07, 2017 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Sale of Stock and Taxes
Replies: 10
Views: 805

Re: Sale of Stock and Taxes

The tax on ESPP is not too hard. There are two components - the discount that you got from fair market value (FMV) and the appreciation since you bought the stock. The discount is taxed as normal income unless you hold it long enough and then it is converted into long term capital gains. The holdin...
by ryman554
Mon Aug 07, 2017 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Sale of Stock and Taxes
Replies: 10
Views: 805

Re: Sale of Stock and Taxes

When you exercise, you pay AMT on the delta from strike and FMV. For an ISO subject to AMT, yes. When you then sell, you pay LTCG on delta from strike and new-FMV (sale price). Double tax. Not necessarily. If you are still in AMT, then you use the AMT basis and pay LTCG on your difference between e...
by ryman554
Mon Aug 07, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Another advantage of airline credit cards
Replies: 10
Views: 1862

Re: Another advantage of airline credit cards

I mostly agree with this logic; it's only because of the other benefits that I continue to use the United card. The reason for "mostly" is that a lot of my United frequent-flyer miles come from actually flying; a cross-country round trip is 5000 miles. The card increases the value of those miles, a...
by ryman554
Mon Aug 07, 2017 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Sale of Stock and Taxes
Replies: 10
Views: 805

Re: Sale of Stock and Taxes

You are never taxed on the same income twice. espp plans are complex... Please look at plan literature since likely none of this has been taxed, but all of your contribution be has been rsu are almost always withheld for taxes. You should only owe cap gains for this. Note to self, never reply to a ...
by ryman554
Sun Aug 06, 2017 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Sale of Stock and Taxes
Replies: 10
Views: 805

Re: Sale of Stock and Taxes

You are never taxed on the same income twice.

espp plans are complex... Please look at plan literature since likely none of this has been taxed, but all of your contribution be has been

rsu are almost always withheld for taxes. You should only owe cap gains for this.
by ryman554
Thu Aug 03, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: How to Account for Taxes - 25X Rule
Replies: 16
Views: 1847

Re: How to Account for Taxes - 25X Rule

It's not too hard to estimate taxes, at least on the conservative side. 1. Take expenses needed and assume that's needed money. 2. Look at distributino between pretax, roth, and taxable. For taxable, subtract your basis 3. Multiply needed money by percentage of pretax. This is your income. 4. Multip...
by ryman554
Thu Aug 03, 2017 9:32 am
Forum: Investing - Help with Personal Investments
Topic: High tax bracket, AMT, state taxes - best approach
Replies: 13
Views: 1414

Re: High tax bracket, AMT, state taxes - best approach

As a California resident my strategy has been to defer as much pre-tax income as possible. It works for us somewhat although we still get hit with some AMT - it's to a degree unavoidable for those with six figure incomes and large deductions (state income tax and large mortgages). +1. And don't for...
by ryman554
Thu Aug 03, 2017 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Account Taxes
Replies: 9
Views: 780

Re: Taxable Account Taxes

Your are not taxed on the same dollar twice. This. Remember this. The tax code on this point it is rock solid. Once a dollar is taxed, it's never ever taxed again. There are at least two exceptions to this: 1. interest payments on a 401(k) loan. <Note: not repayment of principal of a 401(k) loan> t...
by ryman554
Thu Aug 03, 2017 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Account Taxes
Replies: 9
Views: 780

Re: Taxable Account Taxes

When you get older, and are still in the 15% bracket, RMDs may push you into higher brackets. If you are in the 15% bracket, you should not have any RMDs since you *should* have been investing in ROTH vehicles. If you have always been in the 15% bracket, it would be difficult (I think, not running ...
by ryman554
Thu Aug 03, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: How to rebalance a $380k portfolio? And pre-tax or Roth 401k contributions?
Replies: 17
Views: 1246

Re: How to rebalance a $380k portfolio? And pre-tax or Roth 401k contributions?

If you are OK with 100% equities and won't sell if another 2008 happens, stick there. I think your equity distribution is fine: you have some total world and some total US. Didn't calculate the ratio, but it seems reasonable. I tilt a bit foreign (50:50 US/world) and a bit small(er) cap (75 S&P, 25 ...
by ryman554
Wed Aug 02, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Holding period for new traditional IRA
Replies: 5
Views: 383

Re: Holding period for new traditional IRA

Thank you for the input so far. Since I do not have a taxable account I suppose I will never have a pool of money to draw from until I have one. Each year my traditional IRA should have zero dollars and my Roth will accumulate value. I suppose there is no way to have the transfer take place immedia...
by ryman554
Tue Aug 01, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: W2 to 1099 - what to do with 401k to not impact backdoor Roth
Replies: 7
Views: 442

Re: W2 to 1099 - what to do with 401k to not impact backdoor Roth

I believe - but someone should confirm - that you can keep a "rollover IRA" separate from your Traditional IRA. As long as you keep zero balance in your Traditional IRA, the Rollover IRA wouldn't affect your contribution limits. While you can have a rollover it's separate from the traditional IRA, ...
by ryman554
Tue Aug 01, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: A Secret of the Index Fund’s Success?
Replies: 25
Views: 3055

Re: A Secret of the Index Fund’s Success?

Can someone explain to me how a stock can have a -450% return if dividends are excluded, according to the graph? Does the company magically reach out and suck money out of my bank account? Those aren't absolute returns they are returns relative to the Russell 3000 Index's returns. You are of course...
by ryman554
Tue Aug 01, 2017 9:40 am
Forum: Investing - Theory, News & General
Topic: A Secret of the Index Fund’s Success?
Replies: 25
Views: 3055

Re: A Secret of the Index Fund’s Success?

greg24 wrote:
ryman554 wrote:Can someone explain to me how a stock can have a -450% return if dividends are excluded, according to the graph?
IPO at $20 and drop to 30 cents.
Is a drop of 98.5%. (19.7/20)
by ryman554
Tue Aug 01, 2017 9:09 am
Forum: Investing - Theory, News & General
Topic: A Secret of the Index Fund’s Success?
Replies: 25
Views: 3055

Re: A Secret of the Index Fund’s Success?

Can someone explain to me how a stock can have a -450% return if dividends are excluded, according to the graph?

Does the company magically reach out and suck money out of my bank account?
by ryman554
Mon Jul 31, 2017 7:44 am
Forum: Investing - Help with Personal Investments
Topic: Do I Have Enough In My Emergency Fund?
Replies: 22
Views: 2788

Re: Do I Have Enough In My Emergency Fund?

Yeah, I'm with you. Two years is quite irresponsible, imho, however, I have something like 25 months of expenses in a CD & savings account. It's for early payoff of my mortgage. Why are you doing this instead of paying the mortgage directly? It's losing money to the mortgage monthly. If you treat i...
by ryman554
Fri Jul 28, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Another bay area housing thread..
Replies: 132
Views: 10864

Re: Another bay area housing thread..

Can you hear yourself market timing in the last sentence? If you are willing to act on it for housing, why not equities as well? Equities are relatively efficient and we peons are competing against professional PhD-level modelers, bot trading computers, etc trying to scrap every penny out of the sy...
by ryman554
Fri Jul 28, 2017 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Another bay area housing thread..
Replies: 132
Views: 10864

Re: Another bay area housing thread..

I'll up your bid. Without knowing anything about the home, just based on the fact that it sold at 700K in 2010, I'd say it sells at or over 1.7M Good luck to watchnerd on the sale and the move ! Hope to see you in Seattle in a couple/3 years - after I retire (and last kid is out of house) Nah, my 9...
by ryman554
Thu Jul 27, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Another bay area housing thread..
Replies: 132
Views: 10864

Re: Another bay area housing thread..

Apples and oranges. Real estate markets don't behave like the stock market: ⋅ Presumably you're not buying a house (primarily) as an invesment, but rather to live in it. ⋅ Renting is a viable alternative. You can achieve financial goals, e.g. retirement, without owning a house. ...
by ryman554
Wed Jul 26, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Another bay area housing thread..
Replies: 132
Views: 10864

Re: Another bay area housing thread..

If you're OK with buying into a market at all-time high prices at the limit of your affordability, then go for it. Otherwise, continue to rent don't invest in the stock market , save aggressively, and wait for the next crash. That's what I did in the mid-late 2000s early-mid 2010's (bought in 2...
by ryman554
Wed Jul 19, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for a house around San Jose, CA
Replies: 18
Views: 1816

Re: Looking for a house around San Jose, CA

New Jersey did away with the smell decades ago. OP, something is wrong with the housing market out there. Dilapidated houses in thug areas are selling for three times the national average.[/quote] Nothing is "wrong" with the housing market. It's supply and demand, plain and simple. Jobs a...
by ryman554
Tue Jul 18, 2017 12:22 am
Forum: Investing - Help with Personal Investments
Topic: When, if ever, does it make sense to cease contributing the 401K max?
Replies: 40
Views: 5358

Re: When, if ever, does it make sense to cease contributing the 401K max?

"Taxes are the most expensive thing in retirement," said Hays. "Think about it, you pay 30 percent or so every time you want to access your money. Is this really true? Doesn't it depend upon the size of the withdrawal and your other income? I am thinking that it is being treated as i...
by ryman554
Mon Jul 17, 2017 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Contemplating cancelling life insurance policy (16 years in), can't get an inforce illustration
Replies: 12
Views: 1482

Re: Contemplating cancelling life insurance policy (16 years in), can't get an inforce illustration

OP, you don't list your ages or relative healths here. Since you're talking about children, I'll assume you're in your (early) 30's at most. But let me get this straight -- you are paying almost $700/year for a $50,000 death benefit? And you've been paying 16+ years and have only a $9000 cash value?...
by ryman554
Wed Jul 12, 2017 7:53 am
Forum: Investing - Help with Personal Investments
Topic: FSITX vs FIBIX for bonds? [Spartan Inter. Term Treasury vs. US Bond]
Replies: 15
Views: 1514

Re: FSITX vs FIBIX for bonds? [Spartan Inter. Term Treasury vs. US Bond]

I use FIBAX for the sole reason that I want things as decorrelated from equities as possible. Should I be holding corporates? Perhaps. But I don't.
by ryman554
Tue Jul 11, 2017 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage contingency vs Appraisal contingency
Replies: 9
Views: 842

Re: Mortgage contingency vs Appraisal contingency

Thanks for your comments. How close is Zillow estimate to appraisal value? Per zillow, the house is listed as 609K. Good houses in this area are selling above asking prices. The market is so hot that sellers are having a good sales. If you are using Zillow as the means by which you are assessing ho...
by ryman554
Thu Jun 29, 2017 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Can we retire early?
Replies: 18
Views: 4195

Re: Can we retire early?

You are not supporting a $110k/year retirement on a $2.7M portfolio. I'm not going through your entire taxable situation, but it's not a stretch for you to need 15-20k of money to cover taxes, given you likely live in a HCOL area. I disagree. One can calculate the taxes easily and see the taxes wou...
by ryman554
Wed Jun 28, 2017 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect IRS notice, should I worry?
Replies: 13
Views: 1398

Re: Incorrect IRS notice, should I worry?

You can't open someone else's mail, especially not government documents. I don't know if you have a responsibility to return them. I don't know what the legal status of doing that is. That's exactly what I thought, and what myself and my wife aren't doing. Yet, advice up higher in the thread seems ...
by ryman554
Tue Jun 27, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect IRS notice, should I worry?
Replies: 13
Views: 1398

Re: Incorrect IRS notice, should I worry?

I'll hijack this thread to ask a similar question: Every year, a tax time, we are blessed with a bolus of 10-15 tax letters (some federal, some state) from a previous occupant of our house, with business apparently registered at our address. Based on property tax and home sales payment history, thes...
by ryman554
Mon Jun 26, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Can we retire early?
Replies: 18
Views: 4195

Re: Can we retire early?

You are not supporting a $110k/year retirement on a $2.7M portfolio. I'm not going through your entire taxable situation, but it's not a stretch for you to need 15-20k of money to cover taxes, given you likely live in a HCOL area. Now you are talking about a $125k/year need, which puts you between 3...
by ryman554
Tue Jun 20, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan vs Mortgage
Replies: 29
Views: 2325

Re: Auto Loan vs Mortgage

I'm a mix of person A and B I guess, in your above example, since I currently have enough asset to pay off car (it's 2017 by the way), but as already stated it's <1%. I'm also person B because I have a conventional mortgage with a flat fee PMI (mortgage is less than 3 years old), that has cost me a...