Search found 9 matches

by shermanpie
Sat Jul 22, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: When to switch from Roth 401k to traditional 401k
Replies: 21
Views: 1450

Re: When to switch from Roth 401k to traditional 401k

Here's the more relevant TFB article: Roth 401(k) for People Who Contribute the Max Maxing your Roth 401k can make sense at higher incomes, but conditions need to be just right. Roth is probably a bad idea right now if any of the following apply: You are actually in the 33% bracket (instead of top e...
by shermanpie
Sat Jul 22, 2017 12:31 am
Forum: Personal Consumer Issues
Topic: Would you let your teenager spend all his savings on a gaming computer?
Replies: 123
Views: 7021

Re: Would you let your teenager spend all his savings on a gaming computer?

$1500 is cheap for the potential upside. You will probably spend $100k+ on your kid to give them the best in life. Compare the computer to the cost of other "enrichment" things like a year of music lessons. I build my first computer at ~14 and through a very connected chain of events I'm now a highl...
by shermanpie
Wed Jul 19, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: New Swensen Op Ed "Wall Street Profits by Putting Investors in the Slow Lane"
Replies: 15
Views: 1503

Re: New Swensen Op Ed "Wall Street Profits by Putting Investors in the Slow Lane"

Here is a very alternative take on this. It's an enjoyable read. https://www.bloomberg.com/view/articles/2016-02-25/-flash-boys-exchange-isn-t-about-the-little-guy Brief summary: Even with the "kickback" (aka payment for order flow) these other exchanges are cheaper for you. Since you are a "retail ...
by shermanpie
Sun Jul 16, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Suspending social security & 10-year age gap strategy
Replies: 4
Views: 697

Re: Suspending social security & 10-year age gap strategy

You might check SOCIAL SECURITY MADE SIMPLE Thanks for the recommendation. The "Suspending Retirement Benefits" section had a clear example. So my math above is wrong. The the delayed retirement credits are base on the benefit amount, not the primary insurance amount. So it would work out to be 105...
by shermanpie
Sun Jul 16, 2017 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Suspending social security & 10-year age gap strategy
Replies: 4
Views: 697

Re: Suspending social security & 10-year age gap strategy

I don't know where you got the 109% increase over PIA, as the PIA amount is now moot for your father since he filed originally at age 62, and assume you are subtracting what you identified as a 15% reduction (rather than a 25% reduction) from 124%. Actually, because of the earnings test, your fathe...
by shermanpie
Sat Jul 15, 2017 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Suspending social security & 10-year age gap strategy
Replies: 4
Views: 697

Suspending social security & 10-year age gap strategy

Two part question. The context is my parents are 57 and 67 years old and have enough saved to retire today (they don't believe it, but that's another story). What's the ideal strategy for a 10-year age gap with similar PIAs? From playing with http://www.bedrockcapital.com/ssanalyze/ it looks like th...
by shermanpie
Fri Jun 23, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Not
Replies: 14
Views: 1019

Re: Roth 401k or Not

No, they assume you're investing them in a taxable account. My analysis is for people who are out of tax-advantaged space (which I assume people in the 33% bracket would be). In this case I'm skeptical about the phrasing of investing the savings in a Roth IRA, since that probably should have been ma...
by shermanpie
Fri Jun 23, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Not
Replies: 14
Views: 1019

Re: Roth 401k or Not

I made the mistake of doing some spreadsheet math on this to see how much I probably lost by doing roth 401k the last 5 years or so.... :annoyed The spreadsheet math for this is actually really hard to get right. Since the "extra" money in your roth account is free of tax drag, eventually the highe...
by shermanpie
Fri Feb 10, 2017 8:03 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 7861

Re: Theory on whether to go Roth 401k

it absolutely doesn't matter how long the funds are in any account. This is definitely not true. One of the benefits of tax advantaged accounts is an effectively higher rate of return through either the deferral or non-taxation of dividends. If invested long enough, this effect will dominate tax an...