Search found 7286 matches

by tfb
Sun Jul 24, 2016 6:11 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand: Why Shouldn't AA Be 100% Stocks During Accumulation Phase?
Replies: 111
Views: 5436

Re: Help Me Understand: Why Shouldn't AA Be 100% Stocks During Accumulation Phase?

So why have any bonds AT ALL during the accumulation phase since one does not need AT THAT TIME the safety Bonds provide? Couldn't one switch some assets from 100% stocks to some of it in Bonds at (or close to) retirement age? BHs: what am I missing? You are not missing anything. Vanguard has it at...
by tfb
Thu Jul 21, 2016 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: VG vs. Fido - The Grass Is Not Always Greener (or Is It?)
Replies: 68
Views: 6669

Re: VG vs. Fido - The Grass Is Not Always Greener (or Is It?)

Is Fidelity a better place to have brokerage accounts or is Vanguard? Fidelity. Too many people confuse letting someone manage investments with letting someone manage accounts. The two tasks require completely different skills and competency. Investing in Vanguard ETFs in a Fidelity account gives y...
by tfb
Thu Jul 21, 2016 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Equivalent to PCL account at Vanguard?
Replies: 3
Views: 346

Re: Equivalent to PCL account at Vanguard?

I moved my retirement accounts to Vanguard and would like to do the same with the taxable account. However, the Vanguard rep says they don't offer a PCL. I'm hesitant to lose this ability. My local bank offered me a PCL at Prime if I move those funds to their in-house brokerage. Or, they offered me...
by tfb
Sat Jul 16, 2016 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax and Post-Tax definition for Megaback door
Replies: 8
Views: 608

Re: Pre-Tax and Post-Tax definition for Megaback door

Which of the following is true then? A. When they are referring to pre-tax are they referring to Pre-Tax 401K ($100K) plus the after-tax earnings ($1k). B. When they are refering to pre-tax are they referring to only $1K in earnings from the after-tax 401K? Looking at this, seems like the pro-rata ...
by tfb
Tue Jul 12, 2016 7:17 am
Forum: Investing - Help with Personal Investments
Topic: New SOLO 401K assistance
Replies: 19
Views: 1132

Re: New SOLO 401K assistance

I just want to make sure that you understand that for those fees you are only receiving document services with support . You are acting as the administrator, trustee, and fiduciary. All services provided by other providers. Worth emphasizing. The $125 a year does not include administration. If you ...
by tfb
Tue Jul 12, 2016 7:13 am
Forum: Personal Finance (Not Investing)
Topic: Can you add traditional after-tax 401k to solo 401k?
Replies: 1
Views: 181

Re: Can you add traditional after-tax 401k to solo 401k?

My question is - does anyone know if a solo 401k can offer the same plan features? Currently a solo 401k owner can contribute 20% of employer contribution and to meet IRS maximum of $53,000 the net business profit must be $184,822. If the above feature is allowed in a solo 401k, then one can contri...
by tfb
Sun Jun 12, 2016 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: hypothetical cash in refi to go to 15 year worth it?
Replies: 32
Views: 1942

Re: hypothetical cash in refi to go to 15 year worth it?

I also can't follow tfb's computation above... how did he arrive at a 14% rate of return over 1 year? You have a $500,000 home with $50k down and a 30 year mortgage at 4% for the balance. which means you owe $450k now. If you do nothing, your interest for the next year is roughly $450k * 4% = $18,0...
by tfb
Sun Jun 12, 2016 12:39 am
Forum: Personal Finance (Not Investing)
Topic: hypothetical cash in refi to go to 15 year worth it?
Replies: 32
Views: 1942

Re: hypothetical cash in refi to go to 15 year worth it?

Imagine you own a $500,000 home with $50k down and a 30 year mortgage at 4% for the balance. Then rates decline and now you can afford a 15 year payment, but only if you have 20% equity, so you need to bring another $50k to the table. How do you calculate whether this is worth doing? The $50k will ...
by tfb
Sun Jun 12, 2016 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Amex preferred cash card
Replies: 22
Views: 2173

Re: Amex preferred cash card

Loik098 wrote:That's not what this website says (scroll halfway down)

ETF assets count, not just cash.
by tfb
Sat Jun 11, 2016 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: Amex preferred cash card
Replies: 22
Views: 2173

Re: Amex preferred cash card

Clearly, if one can't spend $6k on groceries, this Amex card isn't for them. Your BoA card sounds intriguing, but please correct me if I'm wrong: to be in the 75% bonus tier for the BoA card you're discussing, does one not also have to be a preferred BoA customer with a minimum $20k bank balance at...
by tfb
Sat Jun 11, 2016 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Amex preferred cash card
Replies: 22
Views: 2173

Re: Amex preferred cash card

Clearly, if one can't spend $6k on groceries, this Amex card isn't for them. Your BoA card sounds intriguing, but please correct me if I'm wrong: to be in the 75% bonus tier for the BoA card you're discussing, does one not also have to be a preferred BoA customer with a minimum $20k bank balance at...
by tfb
Sat Jun 11, 2016 12:43 am
Forum: Personal Finance (Not Investing)
Topic: Use regular money instead of HSA?
Replies: 16
Views: 1543

Re: Use regular money instead of HSA?

I liked the "giant reimbursement many years later" idea in theory, but I've recently decided it is not worth the time and potential for issues down the road for me. Me too. I just reimburse once a year and close the books for that year. Not worth it to wring out the last drop. See my reas...
by tfb
Sat Jun 11, 2016 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Amex preferred cash card
Replies: 22
Views: 2173

Re: Amex preferred cash card

"Much less compelling": does that mean there's a better card out there for grocery/gas? If so, I'd certainly like to hear about it. Not everyone spends $6,000 on grocery. The no-annual-fee Bank of America Cash Reward Card at the 75% bonus tier pays 3.5% on grocery store purchases and 5.25...
by tfb
Wed Jun 08, 2016 2:04 am
Forum: Investing - Theory, News & General
Topic: Ed Slott's Retirement Roadmap 2016 -- who's pledged?
Replies: 17
Views: 3804

Re: Ed Slott's Retirement Roadmap 2016 -- who's pledged?

He was interviewed on the Lange Money Hour radio show about this. Among other things he suggested 1-month wait for backdoor Roth. You can read the transcript, download mp3, or listen online.

http://paytaxeslater.com/radioshow-166- ... -guide.php
by tfb
Tue Jun 07, 2016 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Mango prepaid card - 4.8% (effective) APY
Replies: 514
Views: 282720

Re: Mango prepaid card - 4.8% (effective) APY

Some people on fatwallet got ACH reversed with an account closed status and charged a fee by the CU for the reversed ACH. Yes, I read those posts also. Those seemed to be DD related for some reason? I ACH push/pull with Chase and have been fine so far. Some were ACH pulls from a credit union, which...
by tfb
Mon Jun 06, 2016 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Mango prepaid card - 4.8% (effective) APY
Replies: 514
Views: 282720

Re: Mango prepaid card - 4.8% (effective) APY

^ sounds like only one account each? I've begun ACH pulling ($2500 per day limit I believe) to empty out 2 accounts and get back down to 1. Knowing these accounts, it wouldn't surprise me if suddenly next month, this issue is reversed. :oops: Good while it lasted! Pretty sure you can ACH pull all 5...
by tfb
Mon Jun 06, 2016 1:28 am
Forum: Personal Finance (Not Investing)
Topic: I am a W2, I want to take part time 1099 work to contribute to a post tax 401k
Replies: 12
Views: 1243

Re: I am a W2, I want to take part time 1099 work to contribute to a post tax 401k

Does aftertax 401k have any limitations for percentage of contribution? meaning, if I earn $30k as a 1099, can I plow all of this income into my solo (non-roth) after tax 401k? I wrote the articles linked in this thread. This spreadsheet shows you how much you can contribute, both pre-tax and after...
by tfb
Sat Jun 04, 2016 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Joe Davis of Vanguard says bonds have never been more valuable
Replies: 12
Views: 3704

Re: Joe Davis of Vanguard says bonds have never been more valuable

The article wrote: And by one critical measure in mean-variance optimization, which weighs both return and risk, high-quality government bonds have never been more valuable [than they were before]. Some may mis-read it as: And by one critical measure in mean-variance optimization, which weighs both ...
by tfb
Sat Jun 04, 2016 7:36 pm
Forum: Investing - Theory, News & General
Topic: How much is automated Tax-Loss Harvesting worth?
Replies: 36
Views: 2241

Re: How much is automated Tax-Loss Harvesting worth?

If the market goes up from day 1, and you don't make any new investments, you will have zero return from TLH. And if you do make new investments in your taxable account, the % of new investments relative to existing investments goes down over time. If TLH is the only reason you want it, you are pay...
by tfb
Sat Jun 04, 2016 7:27 pm
Forum: Investing - Theory, News & General
Topic: "6 Reasons The Rich Should Pay-Off Their Mortgage"
Replies: 76
Views: 9747

Re: "6 Reasons The Rich Should Pay-Off Their Mortgage"

These discussions seem to ignore the possibility of a future interest rate increase. A mortgage is a long term instrument. What will interest rates be in 5 years? 10 years? 15 years? No one knows. If intermediate term rates should rise to 5 or 6 percent, a 3.5% mortgage would be a very desirable th...
by tfb
Fri Jun 03, 2016 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

jjface wrote:When I have what I need to sustain the lifestyle I want then that is it for me.

And when you don't? Should you settle with what you have and take time over money as you say you would any day?
by tfb
Fri Jun 03, 2016 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Synchrony HYS sanity check
Replies: 4
Views: 501

Re: Synchrony HYS sanity check

sofla_diyer wrote:One percent of $170K is $1700.

There are 12 months in a year?
by tfb
Fri Jun 03, 2016 3:55 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

Sounds like a one-sided equation that only considers money as "opportunity cost" and fails to consider time as an "opportunity cost" as many posters have suggested should be added back in to that equation (or maybe as a separate equation to be evaluated in a parametric fashion w...
by tfb
Thu Jun 02, 2016 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: Lake Michigan Credit Union
Replies: 60
Views: 6146

Re: Lake Michigan Credit Union

Kevin M wrote:I guess selecting "credit" counts as a signature?

Yes. Signature will be required at a higher amount, waived at a lower amount.
by tfb
Thu Jun 02, 2016 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

I think I may have figured why this thread has created such a lively discussion. It's a Rorschach test. I think it has to do with people making assumptions, which may or may not be correct. With the same income from work, are we talking about a 55-year-old single person with $5 million or are we ta...
by tfb
Thu Jun 02, 2016 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Lake Michigan Credit Union
Replies: 60
Views: 6146

Re: Lake Michigan Credit Union

I may be saying it wrong, but some high-yield checking accounts specify signature-only and not pin transactions. Both pin debit and signature debit counted. If you are trying to beat a month-end to reach the minimum number of debits, use PIN debit, which gets to LMCU immediately. Signature debit wi...
by tfb
Wed Jun 01, 2016 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

I think I understand the concept but I keep having a problem with applying a cost to freedom. We aren't just talking about time, which does have a cost, but when an early retiree wakes up and has the freedom to choose, the thought of comparing that to an alternative at a cost level just hurts my he...
by tfb
Tue May 31, 2016 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

tfb: In the excerpt that OP posted, your point of view is very confusing to me. Before I let myself wade into this discussion, clarify please ... The full post is linked in the OP, with more comments from me and other readers. I also clarified a few times in this thread. https://www.bogleheads.org/...
by tfb
Mon May 30, 2016 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

So is there an "opportunity cost" if I decide not to work 80-100 hours per week? Gee, if I did I could be throwing away a new BMW every year too! There is. Just because there is an opportunity cost doesn't mean you have to swing at every opportunity. Some people actually seek out overtime...
by tfb
Sun May 29, 2016 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost, by Harry Sit

I think Mr. Sit is saying that, because early retirement is a luxury, there's no sense in pinching pennies for years then retiring early--you might as well either spend more as you go or work a couple of years more. (Maybe that's not what he's saying--I'm not 100% sure.) I wrote the blog post being...
by tfb
Sun May 29, 2016 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement and opportunity cost, by Harry Sit
Replies: 144
Views: 12114

Re: Early retirement and opportunity cost by Harry Sit

Use anything else you want. Your early retirement is the same as taking 4 trips to europe or enough money to prevent 1000 kids from starving to death in africa. The point is who is living a more luxurious life. The guy who drives a BMW for 40 years but works to 60. Or the guy that drives a honda ac...
by tfb
Thu May 19, 2016 11:41 pm
Forum: Personal Consumer Issues
Topic: Is living in the Bay Area this difficult?
Replies: 49
Views: 7821

Re: Is living in the Bay Area this difficult?

Have your experiences in life been similar in that while living in such a HCOL area, you find it very difficult to save for a large part of life? Not at all. All my money has been saved while in the Bay Area. You actually save more money when you live in a HCOL area. I explained why in this guest p...
by tfb
Mon May 16, 2016 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard FTSE Developed Markets ETF (VEA) enough for international exposure?
Replies: 8
Views: 562

Re: Is the Vanguard FTSE Developed Markets ETF (VEA) enough for international exposure?

It's enough when emerging markets are doing poorly. It's not enough when emerging markets are doing well.
by tfb
Mon May 16, 2016 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: New Job, Forced Rollover IRA, Backdoor Roth
Replies: 2
Views: 255

Re: New Job, Forced Rollover IRA, Backdoor Roth

New Situation: My husband is switching jobs. His old company's 401(k) requires him to roll the money over into an IRA, and he is not allowed to keep it in the old company's plan. (In his case, actually two IRAs, as there is a mix of roth and pre-tax money in the plan.) If your husband truly has a &...
by tfb
Sat May 14, 2016 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: VPAS recommendation: Do you agree? (new to index fund investing)
Replies: 61
Views: 3496

Re: VPAS recommendation: Do you agree? (new to index fund investing)

We're in the process of working with an advisor at Vanguard after a horrible experience with our advisor/salesman. At this point, I trust no advisors so am looking for your thoughts on what they have recommended. Here is the recommendation they gave us. Does this allocation look about right? Yes it...
by tfb
Sat May 14, 2016 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k with 401k at work? max contribution?
Replies: 15
Views: 1027

Re: solo 401k with 401k at work? max contribution?

As far as I know, none of the individual business retirement plan contribution calculators on the net do both of these correctly. Vanguard is the only one I know of who correctly uses Publication 560 (starting within the last year), but still does not fully take into account Schedule SE. All the ot...
by tfb
Fri May 13, 2016 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Back Door Roth VS. Taxable For Young Couple
Replies: 9
Views: 921

Re: Mega Back Door Roth VS. Taxable For Young Couple

albanytexan wrote:I know the rule is Roth dollars are almost always better than taxable dollars. However, at my age, with hopes to retire early and a fluctuating income in IT sales, I'm wondering if it is better to focus on taxable.

It isn't. Max out Roth when you can.
by tfb
Fri May 13, 2016 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone trade with their Fidelity Cash Management Account?
Replies: 15
Views: 1128

Re: Anyone trade with their Fidelity Cash Management Account?

Kenster1 wrote:Note too that it's possible that checks are treated differently than EFT/ACH transfers.

No difference between checks and EFT/ACH transfers initiated by Fidelity. EFT/ACH transfers initiated by external bank/CU ("push") are given immediate availability for withdrawal.
by tfb
Fri May 13, 2016 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone trade with their Fidelity Cash Management Account?
Replies: 15
Views: 1128

Re: Anyone trade with their Fidelity Cash Management Account?

If one isn't interested in margins/options and is trading only ETFs/mutual funds anyway, it looks like one could just use Fidelity CMA as one taxable account handling both cash and investments. Does use a CMA to trade? Any reasons not to use it that way? I use it for ATM cash access and I hold mutu...
by tfb
Thu May 12, 2016 1:29 am
Forum: Investing - Theory, News & General
Topic: Reuters Article - FYI for clients of of retail brokerage firms that sell order flow to Citadel or Knight
Replies: 3
Views: 1218

Re: Reuters Article - FYI for clients of of retail brokerage firms that sell order flow to Citadel or Knight

Most retail brokerage firms engages in this dishonest practice of selling their client order flow to internalizers. TD Ameritrade, Schwab, Etrade, Robinhood,etc do this. Add Vanguard to that list. Q1 2016, > 60% of orders for NYSE listed securities were routed though Citadel and KCG. http://vrs.vis...
by tfb
Mon May 09, 2016 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard is being difficult. Any advice?
Replies: 9
Views: 2118

Re: Vanguard is being difficult. Any advice?

CashBalance wrote:Vanguard will not allow more than one pooled account per EIN.

Can you request a separate EIN from the IRS for each plan?
by tfb
Sat Apr 30, 2016 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Old 8606 Form - Incorrectly Chose Distribution/Conversion
Replies: 3
Views: 384

Re: Old 8606 Form - Incorrectly Chose Distribution/Conversion

Since line 4 that should be zero is filled out, should I submit a corrected 8606 to avoid future issue? There is no correction needed for line 14 that establish the traditional non-deductible IRA basis. Don't worry about it. The instructions have you skip those lines when they know it's not necessa...
by tfb
Sat Apr 16, 2016 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Booking airfare - Wash DC to Dallas in fall
Replies: 5
Views: 435

Re: Booking airfare - Wash DC to Dallas in fall

Pdxnative wrote:will credit price difference to your account

As credit for future travel in the next 12 months, not refund back to your credit card. Be sure to keep the original confirmation code and use it when you book again.
by tfb
Sat Apr 16, 2016 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth, Mega backdoor roth and the Pro-rata rule
Replies: 5
Views: 839

Re: Backdoor Roth, Mega backdoor roth and the Pro-rata rule

On Dec 31, 2015, The TIRA therefore had $200. Does this screw up the conversion in some way for 2015? Will the Pro-rata rule be invoked here? The Pro-rata rule will be invoked but it's not a big deal. It only means you pay tax on less than $200 (say $190) on your conversion. When you convert this $...
by tfb
Fri Apr 15, 2016 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over 401K - Still employed
Replies: 10
Views: 739

Re: Rolling over 401K - Still employed

KlangFool wrote:This is NOT withdrawal. This is 401K in service rollover. There is a different set of rule for withdrawal.

It is only available for certain 401K plan. It is not available for most employers.

Not really. See

http://thefinancebuff.com/in-service-wi ... rules.html
by tfb
Wed Apr 13, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Experience with My Solo 401k Financial or IRA Financial Group?
Replies: 13
Views: 819

Re: Experience with My Solo 401k Financial or IRA Financial Group?

Do you remember the reason? That's a bit silly on the surface. There are no special administration requirements of after-tax for an individual 401k that would make it more complex. No but it's perfectly understandable. The lower pricing competes with free plans from Vanguard etc. The free plans don...
by tfb
Wed Apr 13, 2016 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Experience with My Solo 401k Financial or IRA Financial Group?
Replies: 13
Views: 819

Re: Experience with My Solo 401k Financial or IRA Financial Group?

I assume Employee Fiduciary's document allows for what you are looking for, and you can get Vanguard funds there. Their pricing is $100 to set up, and $200 annual administration +.08%. Note that the .08% goes to the custodian Matrix (MG Trust). EF doesn't pocket that money. http://www.employeefiduc...
by tfb
Sat Apr 09, 2016 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block Error or Change in Rule of "Backdoor" IRA Conversion
Replies: 12
Views: 1185

Re: H&R Block Error or Change in Rule of "Backdoor" IRA Conversion

I'm using H&R Block software to file 2015 tax. In the final review, I notice that I incur $660 which is labeled as "retirement tax." This amount comes from my "backdoor" conversion of nondeductible traditional IRA to Roth IRA. I converted a total amount of $11,000 for both m...
by tfb
Sun Mar 27, 2016 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: leaving vanguard due to math errors / poor customer service?
Replies: 92
Views: 9538

Re: leaving vanguard due to math errors / poor customer service?

dbr wrote:Interesting that the error is to continue to use the price of the initial purchase.

The closing price on 2/11 was $21.34, not $21.35. The $21.35 displayed is a weighted average of the initial purchase at $21.34 and the subsequent purchase at $23.60.
by tfb
Sun Mar 27, 2016 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: leaving vanguard due to math errors / poor customer service?
Replies: 92
Views: 9538

Re: leaving vanguard due to math errors / poor customer service?

This is why you must distinguish between managing your investments (the funds) and managing your accounts. They are not the same and they require completely different competence. Doing well in managing index funds doesn't lead to doing well in IT and accounting. Find someone who excels in managing i...

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