Search found 762 matches

by smitcat
Tue Dec 12, 2017 11:37 am
Forum: Investing - Theory, News & General
Topic: Any of you trade just a little as a hobby?
Replies: 37
Views: 2517

Re: Any of you trade just a little as a hobby?

My wife likes to trade so part of our investment plan sets aside a fixed amount with which she trades. This is separate from the bulk of our investments where we do not trade individual stocks. Began this about 10 years back now and she now has a lot more to trade with in that account. We agreed in ...
by smitcat
Tue Dec 12, 2017 7:17 am
Forum: Investing - Help with Personal Investments
Topic: ~100k sole proprietor income. Better to take business deductions or contribute more to solo 401k?
Replies: 5
Views: 405

Re: ~100k sole proprietor income. Better to take business deductions or contribute more to solo 401k?

When you have true legitimate business expenses it is always better to take them or plan to take them in following years based upon your current business plan. After true business expenses , 401K and your personal expenses (costs) if you have extra left over you can look at after tax savings options...
by smitcat
Mon Dec 11, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: How are 401k withdrawals taxed when you retire?
Replies: 12
Views: 1432

Re: How are 401k withdrawals taxed when you retire?

This is a wiki on making this choice. https://www.bogleheads.org/wiki/Traditional_versus_Roth What would my 401k withdrawals be taxed at when I withdraw them? Under the current tax laws an over 65 couple can have almost $100K in taxable income and still be in the 15% federal tax bracket. Of course ...
by smitcat
Mon Dec 11, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: How are 401k withdrawals taxed when you retire?
Replies: 12
Views: 1432

Re: How are 401k withdrawals taxed when you retire?

Whatever you take out of your 401k will be taxed at your ordinary tax rate. Your ordinary tax rate is likely to be less in retirement than while working... First sentence is basically correct, but unlike employment income, the 7.65% for FICA is not deducted. So your net income is higher. Second sen...
by smitcat
Mon Dec 11, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: What cause BH fear about running out of saving though they have big size of asset?
Replies: 27
Views: 1576

Re: What cause BH fear about running out of saving though they have big size of asset?

What cause BH fear about running out of saving though they have big size of asset? I see many BH have multi millions but still worry about money. What about for the people without savings at all? Haven't seen so many of them crying for money. When you have a larger portfolio and move through a time...
by smitcat
Mon Dec 11, 2017 9:12 am
Forum: Personal Consumer Issues
Topic: How easy is it to minimize tax liability yourself without a CPA/accountant?
Replies: 15
Views: 1339

Re: How easy is it to minimize tax liability yourself without a CPA/accountant?

How easy is it to minimize tax liability yourself without a CPA/accountant? I am talking about for a small business owner (sole proprietor, with no employees) e.g. for a LCSW or 1-person family medicine physician practice. Do you need a CPA/accountant to help you with minimizing tax liability or is...
by smitcat
Sun Dec 10, 2017 6:41 pm
Forum: Investing - Theory, News & General
Topic: Buying index funds is just as speculative as buying Bitcoin
Replies: 64
Views: 3763

Re: Buying index funds is just as speculative as buying Bitcoin

One cut and paste from the link above... "As bitcoin grows, the math problems computers must solve to make more bitcoin get more and more difficult," which means more processing power is needed, Holthaus wrote. And he made a startling forecast: Without a significant change in how transactions are pr...
by smitcat
Sun Dec 10, 2017 6:39 pm
Forum: Investing - Theory, News & General
Topic: Buying index funds is just as speculative as buying Bitcoin
Replies: 64
Views: 3763

Re: Buying index funds is just as speculative as buying Bitcoin

Which is it, a store of value or an investment? A currency, or an investment? I can assure you index investors are very clear that their shares are not in any sense currency or a store of value. It's both. Bitcoin is a currency. Bitcoin is also a technology. With Bitcoin, I can program my money. Wi...
by smitcat
Sun Dec 10, 2017 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Roth Conversion vs Healthcare Subsidies
Replies: 15
Views: 1108

Re: Early Retirement Roth Conversion vs Healthcare Subsidies

Thanks everyone. Very sage advice. It is comforting to know that many others are also trying to balance these competing opportunities. I do agree with the very sound advice that likely the landscape will change significantly in the next 6 years so you really have to wait and see how the world chang...
by smitcat
Sun Dec 10, 2017 4:52 pm
Forum: Personal Consumer Issues
Topic: Home Security Camera: Post a Warning Sign or Not?
Replies: 20
Views: 2278

Re: Home Security Camera: Post a Warning Sign or Not?

Several houses ago we owned a large dog and house was still broken into. Police said we were fortunate they did not kill the dog as they often do that if they want to get in. We installed a security system to protect the dog and the house -- worked well. Police suggested posting signs, but not adve...
by smitcat
Sun Dec 10, 2017 8:05 am
Forum: Personal Consumer Issues
Topic: Home Security Camera: Post a Warning Sign or Not?
Replies: 20
Views: 2278

Re: Home Security Camera: Post a Warning Sign or Not?

If you can get a chance to speak with folks that deal with crime as a job and see this stuff on a regular basis speaking to them would be a big benefit. Here are a few things we learned from the detectives that came when there was a break in at one of our centers.... - Signs on cameras and tip offs ...
by smitcat
Sat Dec 09, 2017 8:22 am
Forum: Personal Consumer Issues
Topic: Home Security Camera: Post a Warning Sign or Not?
Replies: 20
Views: 2278

Re: Home Security Camera: Post a Warning Sign or Not?

My neighbor and I recently put up self-installed security cameras outside our homes. I posted a few "Video Surveillance/No Trespassing" signs, while my neighbor did not. In my mind, the signs might serve a deterrent function (bad guys see sign, so pick another house.) Obviously, my neighbor has ano...
by smitcat
Sat Dec 09, 2017 7:41 am
Forum: Personal Consumer Issues
Topic: Home Security Camera: Post a Warning Sign or Not?
Replies: 20
Views: 2278

Re: Home Security Camera: Post a Warning Sign or Not?

My neighbor and I recently put up self-installed security cameras outside our homes. I posted a few "Video Surveillance/No Trespassing" signs, while my neighbor did not. In my mind, the signs might serve a deterrent function (bad guys see sign, so pick another house.) Obviously, my neighbor has ano...
by smitcat
Fri Dec 08, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Roth Conversion vs Healthcare Subsidies
Replies: 15
Views: 1108

Re: Early Retirement Roth Conversion vs Healthcare Subsidies

6 years in the future? I would monitor the situation for the next 5 years then come back and make a decision. Too many things can change. Agreed - all the variables needed to supply a valuable answer will change. I am 12-18 months from retirement and I don't know what my health care will look like ...
by smitcat
Fri Dec 08, 2017 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Roth Conversion vs Healthcare Subsidies
Replies: 15
Views: 1108

Re: Early Retirement Roth Conversion vs Healthcare Subsidies

Nate79 wrote:
Fri Dec 08, 2017 10:32 am
6 years in the future? I would monitor the situation for the next 5 years then come back and make a decision. Too many things can change.
Agreed - all the variables needed to supply a valuable answer will change.
by smitcat
Fri Dec 08, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7188

Re: At what age your investments start making more money than you?

At what age did you start paying more in taxes than your yearly spending budget? I don’t know the year, but it’s been a while, more due to taxes going up than spending being low :D My father once told me, very proudly, that he paid more in taxes that year than he had earned two years prior. He alwa...
by smitcat
Fri Dec 08, 2017 11:17 am
Forum: Personal Finance (Not Investing)
Topic: CPA: The best profession if you want to make the most money + keep the most money?
Replies: 61
Views: 6130

Re: CPA: The best profession if you want to make the most money + keep the most money?

Many a very substantial wealth mentor has shared their stories and lessons throughout my life. I've been fortunate to be exposed to so many "wealth mentors" whereas many have not in their daily life. Here's an actionable snippet. (names have been changed to protect the diligent) Conversation betwee...
by smitcat
Fri Dec 08, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7188

Re: At what age your investments start making more money than you?

Gross is the wrong bar to set, I am more interested in seeing gains of Xtimes retirement expenses. That plus contributions accelerates the time you need to work before you can voluntarily retire. Example, you need 500k to retire, your portfolio earns gains of $25k and you save $10k. You might only ...
by smitcat
Fri Dec 08, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Want to sell my Bitcoin, but when?
Replies: 90
Views: 8135

Re: Want to sell my Bitcoin, but when?

coalcracker wrote:
Fri Dec 08, 2017 9:10 am
OP UPDATE:

I have completely sold my bitcoin and ethereum in several "lots" over the course of this week (via Coinbase). The end value deposited into my checking account was $25,063 on a $7,000 initial investment, for a 258% ROI since July.
Great move - congratulations , don't look back.
by smitcat
Thu Dec 07, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: CPA: The best profession if you want to make the most money + keep the most money?
Replies: 61
Views: 6130

Re: CPA: The best profession if you want to make the most money + keep the most money?

I thought you had committed to medical school and were beginning very shortly? Is that not what you had posted a couple of months back?
That is a fantastic goal that obviously requires complete dedication and great focus - why the posts ahout CPA's?
by smitcat
Thu Dec 07, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Spending or Roth Conversions
Replies: 5
Views: 329

Re: Taxable Spending or Roth Conversions

How does someone decide between using a taxable account to support themselves between early retirement years and before they are required to take minimum distributions from retirement accounts? We are married and our dividend and capital gains fill up the 0% bracket (over $70,000 a year). We have e...
by smitcat
Thu Dec 07, 2017 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

There's no conflict here that I see. I would enable Roth IRA Conversions, and consider capping the tax bracket to stay out of highest brackets. Set the AA the same if you want to see recommendations without regard to AA across your accounts, then set AA to actual if you want to see optimized spendi...
by smitcat
Thu Dec 07, 2017 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

I'm confused by this thread. You would set the AA the same in each account if you didn't want I-ORP to spend money from the account that had the lowest returns first, and you just wanted to see what the recommendation would be if the AA is the same. But most people don't have the same AA in each ac...
by smitcat
Thu Dec 07, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Timing the housing market
Replies: 32
Views: 2039

Re: Timing the housing market

. . . . The only thing you can do is purchase the best house you can buy at the lowest price. If you look at it as a R/E investor might, then you might consider the following:' 1. Can I buy this house at "X" price and not lose money if I sold it next month, even with the 6% R/E sales commission. 2....
by smitcat
Thu Dec 07, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Timing the housing market
Replies: 32
Views: 2039

Re: Timing the housing market

You need to wait to find out the final form of the tax law change re property tax deduction and mortgage interest deduction. The old rule of thumb of qualifying for a mortgage with 28% or less of your monthly income for PITI was always based on the ability to deduct tax and interest. So, after the ...
by smitcat
Thu Dec 07, 2017 10:33 am
Forum: Investing - Theory, News & General
Topic: How would you value a business if you considered investing in it
Replies: 18
Views: 1367

Re: How would you value a business if you considered investing in it

It's helpful to know the norms of the industry in the context of the negotiation but the variation between companies in the same industry can be extreme. Norms are all about pricing and not about valuing. I'd try to get a really good handle on yearly cash flow to the owners and how persistent you t...
by smitcat
Wed Dec 06, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Will I make it? (Another "evaluate my financials" post..)
Replies: 19
Views: 1409

Re: Will I make it? (Another "evaluate my financials" post..)

Perhaps consider buying a smaller two family home and renting out one side - it worked for us.
by smitcat
Wed Dec 06, 2017 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Friend buys a lot of stuff because he want's to reduce his tax liability. Is this thinking flawed?
Replies: 47
Views: 4060

Re: Friend buys a lot of stuff because he want's to reduce his tax liability. Is this thinking flawed?

OP, With Solo/Individual 401K, he would not have to pay tax on his small business income. So, why is he spending money to save tax? KlangFool I don't think he knows about the solo/individual 401k or maybe thinks that investing is riskier. I know that he only picked individual stocks before and lost...
by smitcat
Wed Dec 06, 2017 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Friend buys a lot of stuff because he want's to reduce his tax liability. Is this thinking flawed?
Replies: 47
Views: 4060

Re: Friend buys a lot of stuff because he want's to reduce his tax liability. Is this thinking flawed?

Yes, obviously your friend's thinking is flawed. Running a "business" with the main objective to avoid income tax is counterproductive. Would I rather make $10,000 and pay a percentage of that to the government, or just spend the 10K on things that I don't need? The answer is obvious. All that bein...
by smitcat
Wed Dec 06, 2017 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 18
Views: 1237

Re: Small Business Retirement Options

As I pointed out the minimum safe harbor employer non-elective contribution is 3%., but the minimum safe harbor employer match is 4%. This is 100% of the 1st 3% and 50% of the next 2% = 4% on the 1st 5%. Your experiences are an anomaly. After a dip during the great recession, recent studies have sh...
by smitcat
Wed Dec 06, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Timing the housing market
Replies: 32
Views: 2039

Re: Timing the housing market

I live in a HCOL area and I am currently looking for a house. I've been reading articles about the "prohibited topic," and many are very pessimistic about what it may do to housing costs and job growth in my area. I realize much of this is speculation. However, it did spark a question in me. One of...
by smitcat
Wed Dec 06, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 18
Views: 1237

Re: Small Business Retirement Options

As pointed out by ERISA Stone, the safe harbor minimum non-elective contribution is 3%. Or the safe harbor minimum match is 100% of the 1st 3% of compensation and 50% of the next 2% of compensation. Assume the average NHCE match is 3%. If instead you pay a 5% non-elective contribution to facilitate...
by smitcat
Wed Dec 06, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 18
Views: 1237

Re: Small Business Retirement Options

Is there a retirement plan that would allow us to apply a lower employer contribution rate to these employees vs. the partners You should investigate a 401k with a "New Comparability Method" of profit sharing. This will require a higher employer contribution rate than a standard safe harbor plan, b...
by smitcat
Wed Dec 06, 2017 10:11 am
Forum: Investing - Theory, News & General
Topic: How would you value a business if you considered investing in it
Replies: 18
Views: 1367

Re: How would you value a business if you considered investing in it

The banking world's go-to measurement is an EBITDA multiple. Depending on the Company's growth rate, the multiple is currently 6x-10x EBITDA. There's many exceptions, but that will get you in the ball park. More concerning to me is the OP seemingly having difficulty finding the numbers needed to ca...
by smitcat
Wed Dec 06, 2017 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

Could someone tell me what OI and RMP stand for? Ok, I'm guessing OI is ordinary income... RPM - a spreadsheet calculator developed by a sharing bogle that we find to be really great tool. It is a little difficult to load and get correct but IMO is very much worth it as it can supply all kinds of g...
by smitcat
Wed Dec 06, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

munemaker wrote: Working with BigFoot's spreadsheet and iOrp, spending the taxable first while making heavy Roth conversions gave me the best results, and I experimented with it quite a bit. I've commented on both the RMP and I-ORP calculators before. I have run a number of scenarios in both progra...
by smitcat
Wed Dec 06, 2017 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 25905

Re: Why not take Social Security at 62

Some of us are old enough to have been through this exact concern in the past "SS cannot make it as is". Its not the first time it will be a challenge requiring some changes and flexibility and it likely wont be the last. We have been present for the adjustments taken in the past , how much notice w...
by smitcat
Tue Dec 05, 2017 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

You generally want to spend your money in the way that gives you the maximal amount of spendable money. That is rarely selling taxable first. It is also rarely selling taxable first. In general it is some blend between both taxable and tax deferred that depends on current and future income expectat...
by smitcat
Tue Dec 05, 2017 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

So it is necessary to have aft-tax account to cover the expense while doing the Roth conversion. From this point of view, pre-pay mortgage will reduce the aft-tax asset. Let say someone choose to take SS at 70.5. Let say he will 80k need for living expense. He is now X years old. So he would need (...
by smitcat
Tue Dec 05, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2198

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

I think ORP will try to keep the account that you have said will have the highest return the longest. So be sure to tell ORP that all your accounts will have the same expected annualized return. This is very likely the answer - folks set up these calculators with various income %'s and then they wo...
by smitcat
Tue Dec 05, 2017 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 25905

Re: Why not take Social Security at 62

I assume I won't be getting SS. And if I were able to claim it I would do it ASAP. I don't think it will stick around forever. It will stick around in some form, but it is very unlikely to be what it is today. I also assume no SS because I expect means testing to become part of the program. Other c...
by smitcat
Tue Dec 05, 2017 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 18
Views: 1237

Re: Small Business Retirement Options

For the last five years, my small firm has operated as a partnership and utilizing an individual 401(k) retirement plan. In doing so, we were able to max out both employer and employee contributions. Our firm needs to grow to keep up with demand for our business. New hires will likely be brought in...
by smitcat
Tue Dec 05, 2017 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 25905

Re: Why not take Social Security at 62

I assume I won't be getting SS. And if I were able to claim it I would do it ASAP. I don't think it will stick around forever. It will stick around in some form, but it is very unlikely to be what it is today. I also assume no SS because I expect means testing to become part of the program. Other c...
by smitcat
Tue Dec 05, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 25905

Re: Why not take Social Security at 62

You want to prepare for 75% cut in social security and the market tanking by 75% and the inflation going up by 10% every year and the interest rates staying in low 2%, medicare going away and being in long terms care facility for 30 years; is there anything else you need to be ready for? is that wo...
by smitcat
Tue Dec 05, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: How would you value a business if you considered investing in it
Replies: 18
Views: 1367

Re: How would you value a business if you considered investing in it

Let's say I want to offer to buy a share of the company I am working for. What are the steps involved in finding real value of any company? I can find out yearly operational revenue for last few years, and overall cost (with a ballpark salary/compensation) which would give me an idea how much it ma...
by smitcat
Mon Dec 04, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2774

Re: Who keeps more money out of 100k? Self-employed vs Employed?

OK new inputs..... "I will be a practicing physician soon and am wondering whether it is stupid to set up a private practice assuming I make the same amount as a doctor at the hospital.[/color]" Going into any business assuming that you will make the same amount of dollars before benefits as if you...
by smitcat
Mon Dec 04, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2774

Re: Who keeps more money out of 100k? Self-employed vs Employed?

As has been pointed out by other replies you premise is based on a false equivalency. No doctor or any other professional would ever agree to be an Independent Contractor at an equivalent rate of pay as a W-2 employee. For example, ER physicians who are ICs, typically receive a 25% - 50% (or more) ...
by smitcat
Mon Dec 04, 2017 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2774

Re: Who keeps more money out of 100k? Self-employed vs Employed?

Are you looking at nominal salary or the total value of salary plus benefits? A typical employee with a 100k salary would receive total compensation of more than 100k, while a self-employed person with 100k in income is receiving 100k in total compensation. Total compensation for an employee would ...
by smitcat
Mon Dec 04, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2774

Re: Who keeps more money out of 100k? Self-employed vs Employed?

Are you looking at nominal salary or the total value of salary plus benefits? A typical employee with a 100k salary would receive total compensation of more than 100k, while a self-employed person with 100k in income is receiving 100k in total compensation. Total compensation for an employee would ...