Search found 61 matches

by strongboy2005
Sat Nov 09, 2019 2:43 pm
Forum: Personal Investments
Topic: Bonds in your taxable - any examples?
Replies: 10
Views: 1029

Re: Bonds in your taxable - any examples?

When bond yields and total stock market dividend payments are essentially the same number, it probably makes more sense to keep bonds all in taxable.
by strongboy2005
Sun Sep 29, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Selling my house to my sister
Replies: 12
Views: 1354

Selling my house to my sister

Hello everyone. I am considering selling my home to my sister and not using a realtor. The idea would be passing the entirety of the savings on to her by a 6% reduction in the home purchase price. Here are some facts: **Home value is between $318-$322k. The house is a popular track home in the area ...
by strongboy2005
Wed Aug 28, 2019 5:37 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting without having different stock funds
Replies: 3
Views: 240

Tax loss harvesting without having different stock funds

So let’s say you are holding VT (Vanguard Total World stock ETF) in a 401k and a taxable account. The stock drops in value and you wish to tax loss harvest. So, to avoid a wash sale, can’t you just sell and exchange everything to VTI+VXUS simultaneously? Wouldn’t this keep the funds the same across ...
by strongboy2005
Sun Aug 18, 2019 12:54 am
Forum: Personal Finance (Not Investing)
Topic: Opportunity cost of saving for a home down payment
Replies: 15
Views: 1282

Re: Opportunity cost of saving for a home down payment

So let’s say this couple decides to follow the above advice and rent for 5 years. In this time, they have put $60,000 into their Roth IRA. Ok to raid this for the $50,000 down payment? If not, isn’t this the same thing as not putting the money there to begin with and saving the “down payment” money...
by strongboy2005
Sat Aug 17, 2019 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Opportunity cost of saving for a home down payment
Replies: 15
Views: 1282

Re: Opportunity cost of saving for a home down payment

So let’s say this couple decides to follow the above advice and rent for 5 years. In this time, they have put $60,000 into their Roth IRA. Ok to raid this for the $50,000 down payment? If not, isn’t this the same thing as not putting the money there to begin with and saving the “down payment” money ...
by strongboy2005
Sat Aug 17, 2019 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Opportunity cost of saving for a home down payment
Replies: 15
Views: 1282

Opportunity cost of saving for a home down payment

I have been thinking more lately about the significant opportunity cost to buying a home over renting and it seems one aspect in particular doesn’t often come up in the discussion of buy vs rent. If one makes enough money to max out their tax-advantaged accounts AND save a down payment in a savings ...
by strongboy2005
Fri Jul 26, 2019 12:17 am
Forum: Personal Investments
Topic: Setting up for tax loss harvesting
Replies: 9
Views: 778

Re: Setting up for tax loss harvesting

Ok so if you theoretically had $1m in taxable and the stock market dropped 9% ($90,000), you could sell and buy a different fund right away, locking in the losses, and then claim a $3,000 loss on your next 30 tax returns?
by strongboy2005
Thu Jul 25, 2019 3:24 pm
Forum: Personal Investments
Topic: Setting up for tax loss harvesting
Replies: 9
Views: 778

Re: Setting up for tax loss harvesting

Ok so I’m thinking I could keep VT as my only stock holding in my 401k/Roth IRA and then use VTI+VXUS in taxable. Then, if a tax loss harvesting opportunity comes along, I won’t run into an issue with VT reinvesting dividends in my 401k/Roth IRA. At what level of a loss do you decide it is worth it ...
by strongboy2005
Thu Jul 25, 2019 10:42 am
Forum: Personal Investments
Topic: Setting up for tax loss harvesting
Replies: 9
Views: 778

Setting up for tax loss harvesting

Hello everyone. I’m preparing to start making my first taxable account investments and I wanted to ask about some of the mechanics of it. First of all, I have a 401k and Roth IRA invested in a 50:50 mix of VT (Vanguard Total World Stock ETF) and SWAGX (Schwab Total Bond Market Index Fund). Retiremen...
by strongboy2005
Tue Jul 16, 2019 3:27 pm
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13016

Re: Will you buy Total Bond with a negative yield?

ohai wrote:
Tue Jul 16, 2019 2:39 pm
Rates are all relative. If your Swiss bank savings account is yielding -0.5%, then maybe you'd happily accept a bond yielding -0.1%.
Unless you pull out cash or move everything to stocks.
by strongboy2005
Tue Jul 16, 2019 1:02 am
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13016

Re: Will you buy Total Bond with a negative yield?

So when should I sell all my bonds and go to 100% stocks? At <1% yield?
by strongboy2005
Sun Jul 14, 2019 7:10 pm
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13016

Will you buy Total Bond with a negative yield?

As the title suggests, would you consider including a negative yielding total bond fund in your asset allocation? If not, at what yield would you consider pulling the plug? Less than 1%? 0%. I ask because this is becoming reality in other parts of the world. My current AA is 50:50 per my IPS. It see...
by strongboy2005
Fri Jul 05, 2019 1:56 pm
Forum: Personal Investments
Topic: Why did SPTL drop today?
Replies: 6
Views: 803

Why did SPTL drop today?

I can’t figure this out. Is it a dividend distribution?
by strongboy2005
Mon Jun 10, 2019 11:57 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiency of mutual fund vs ETF for bonds
Replies: 11
Views: 883

Re: Tax efficiency of mutual fund vs ETF for bonds

Bond ETFs do often generate capital gains. If rates fall, all bonds increase in value, so any bonds the ETF has to sell are likely to have capital gains. However, for a taxable bond ETF, you would prefer to receive the capital gains, because they are taxed at a lower rate. If a fund buys a bond wor...
by strongboy2005
Mon Jun 10, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiency of mutual fund vs ETF for bonds
Replies: 11
Views: 883

Re: Tax efficiency of mutual fund vs ETF for bonds

Bond ETFs do often generate capital gains. If rates fall, all bonds increase in value, so any bonds the ETF has to sell are likely to have capital gains. However, for a taxable bond ETF, you would prefer to receive the capital gains, because they are taxed at a lower rate. If a fund buys a bond wor...
by strongboy2005
Mon Jun 10, 2019 4:09 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiency of mutual fund vs ETF for bonds
Replies: 11
Views: 883

Tax efficiency of mutual fund vs ETF for bonds

Hello, I know there is improved tax efficiency using ETFs in taxable accounts versus the equivalent mutual fund (with the exception of Vanguard funds); however, does the same apply for bond funds? For instance, is there improved tax efficiency to hold SCHZ (Schwab Total Bond ETF) versus SWAGX (Schwa...
by strongboy2005
Fri Jun 07, 2019 2:09 am
Forum: Personal Investments
Topic: How would you invest a lump sum of 3 million dollars in today's market?
Replies: 50
Views: 6093

Re: How would you invest a lump sum of 3 million dollars in today's market?

Imagine for a moment a typical day in the stock market. There is some random bad news and the market is down 2%. Your portfolio just dropped $60,000. How does this make you feel? This is what it would be like to have it all invested 100% in stocks. Your need to take risk has decreased substantially,...
by strongboy2005
Tue May 28, 2019 10:03 am
Forum: Personal Investments
Topic: Cut the cord
Replies: 13
Views: 1486

Re: Cut the cord

Looks good, but I’d probably go even more simple: 80% Vanguard Total World (VT), 20% Vanguard Total Bond (BND). Rebalance annually. Simple and easy!
by strongboy2005
Sat Apr 20, 2019 10:01 am
Forum: Personal Investments
Topic: Help calculating after tax yield
Replies: 8
Views: 439

Re: Help calculating after tax yield

Thank you for all your helpful replies! I love this forum. It looks like I can invest directly in 3 month T-bills that are yielding 2.45% right now and are state tax exempt, so my after tax yield would be 2.45*(1-0.24)=1.862%. This looks like the best after tax yield of the investments I’ve looked a...
by strongboy2005
Sat Apr 20, 2019 12:29 am
Forum: Personal Investments
Topic: Help calculating after tax yield
Replies: 8
Views: 439

Help calculating after tax yield

Hello everyone, Having some trouble wrapping my head around after tax yield. Currently in the 24% federal and 9.3% state (California) tax brackets. I itemize deductions. The SALT deduction is capped at $10,000 and I already hit this limit. Married filing jointly. I am looking at the following fixed ...
by strongboy2005
Fri Apr 12, 2019 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage review / advice.
Replies: 8
Views: 1265

Re: Mortgage review / advice.

Make sure your extra payments are designated for principal and not a prepayment of your bill.
by strongboy2005
Mon Mar 25, 2019 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Should I ditch bonds? (Because I have a mortgage)
Replies: 45
Views: 4040

Re: Should I ditch bonds? (Because I have a mortgage)

I don’t consider my mortgage in my asset allocation. Instead, I include my home equity as a bond in my asset allocation. That’s quite a stretch. In my view. I look at my home equity like a bond that pays its dividend as imputed rent. I see my money owed on the house as an expense like all my other ...
by strongboy2005
Mon Mar 25, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should I ditch bonds? (Because I have a mortgage)
Replies: 45
Views: 4040

Re: Should I ditch bonds? (Because I have a mortgage)

I don’t consider my mortgage in my asset allocation. Instead, I include my home equity as a bond in my asset allocation.
by strongboy2005
Sun Feb 10, 2019 5:04 pm
Forum: Investing - Theory, News & General
Topic: Why choose intermediate term treasury at this time?
Replies: 57
Views: 6021

Why choose intermediate term treasury at this time?

When comparing an intermediate term treasury fund, such as SCHR, with a short term treasury fund, such as SCHO, is there any reason to prefer the intermediate term fund if the yields are the same for both funds?
by strongboy2005
Sat Feb 09, 2019 4:58 am
Forum: Personal Investments
Topic: Duplicating VFWAX with Schwab funds (AA question)
Replies: 37
Views: 2229

Re: Duplicating VFWAX with Schwab funds (AA question)

Why not just pay $5 and get VXUS in your Schwab account?
by strongboy2005
Wed Feb 06, 2019 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Re: Equity indexed annuity - surrender or ride it out?

Yes the 403b balance can and should be rolled into an IRA. Did the insurance company actually calculate the surrender fee percentages you posted? Was the annuity purchased over a number of years, or was it bought at single point in time? The insurance company just sent statements with the surrender...
by strongboy2005
Wed Feb 06, 2019 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Re: Equity indexed annuity - surrender or ride it out?

If we assume that the average annual fee will be 2%, we can compare the cost of paying the current surrender fee of 15% versus holding the annuity for 10 years, paying the annual fee and avoiding the surrender fee. Assumptions: 100,000 principal 2% assumed annual fee Term of 10 years 4% assumed rat...
by strongboy2005
Tue Feb 05, 2019 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Re: Equity indexed annuity - surrender or ride it out?

What was their purpose of buying the policy? Avoid risk? When they retired from teaching, a “financial adviser” was brought in by the school district. Turns out it was actually an insurance salesman and they were selling equity-indexed annuities. They were told they could have a guaranteed return w...
by strongboy2005
Tue Feb 05, 2019 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Re: Equity indexed annuity - surrender or ride it out?

Here is from the “specifications page”: Issue age: 59 Issue date: 1/21/2014 Maturity date: 1/21/2070 Inital premium: $102,081 Premium bonus percentage: 10.00% (Applies to all premium, net of partial surrenders, received in the first seven Contract Years) Premium bonus: $10,208.14 Minimum additional ...
by strongboy2005
Tue Feb 05, 2019 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Re: Equity indexed annuity - surrender or ride it out?

What is your parents’ primary objective? If they don’t want the risk of negative returns, just leave it as is. 9.3% is far better than anything they’d get with minimal risk. Paying a huge surrender charge seems like a terrible idea. They can withdraw 10% per year for free with no surrender charge t...
by strongboy2005
Tue Feb 05, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Re: Equity indexed annuity - surrender or ride it out?

Here is the remaining surrender charge percentage:
2019 - 15%
2020 - 15%
2021 - 14%
2022 - 12%
2023 - 10%
2024 - 8%
2025 - 6%
2026 - 4%
2027 - 2%
2028 - 0%
by strongboy2005
Tue Feb 05, 2019 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 696

Equity indexed annuity - surrender or ride it out?

Hello, My parents have asked me to post a question on the forums in regards to what they should do with their equity-indexed annuity. They have two identical policies (one in each of their names) with similar amounts in each. The product is called “Flexible Premium Deferred Annuity”. It is 100% inde...
by strongboy2005
Tue Jan 29, 2019 12:15 am
Forum: Investing - Theory, News & General
Topic: An emergency fund cautionary tale
Replies: 89
Views: 11331

Re: An emergency fund cautionary tale

Could you keep a 12 month emergency fund of stocks (e.g., VTI or VTSAX) as your 6 month emergency fund? Then, in a situation where there is a simultaneous emergency (such as job loss) and a 50% decline in the stock market, you still have 6 months of liquidity.
by strongboy2005
Sun Jan 27, 2019 5:07 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 4008

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

So it seems for a Schwab taxable account there are a few benefits to using ETFs over mutual funds. First, the only way to sell specific lots at Schwab is via ETFs. Second, the ETFs are more tax efficient than the Schwab mutual fund equivalents. Third, there are more tax loss partners among the ETFs....
by strongboy2005
Sun Jan 27, 2019 4:57 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 4008

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

It appears you can use spec ID with ETFs at Schwab. Any way to switch over your mutual funds to the ETF versions without a taxable event?
by strongboy2005
Sat Jan 26, 2019 4:35 pm
Forum: Personal Investments
Topic: Best brokerage to start a three fund portfolio
Replies: 13
Views: 984

Re: Best brokerage to start a three fund portfolio

Is TLH easier with ETFs in a Schwab taxable account?
by strongboy2005
Fri Jan 18, 2019 12:31 am
Forum: Personal Investments
Topic: Where Do HSAs Fit in Asset Location?
Replies: 48
Views: 3194

Re: Where Do HSAs Fit in Asset Location?

California treats an HSA like a taxable account, so something to consider. I keep VTI in mine.
by strongboy2005
Fri Nov 02, 2018 8:53 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3426

Re: An extreme example of inflation and a mortgage

To take this a step further,
1) Is it worth it to pay PMI to borrow more mortgage upfront? Invest the saved down payment?
2) Would you advise refinancing and taking out equity every so often to stretch the mortgage out over your lifetime?
by strongboy2005
Thu Nov 01, 2018 12:17 pm
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3426

Re: An extreme example of inflation and a mortgage

Does this also work with a 15 year mortgage?
by strongboy2005
Mon Aug 20, 2018 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Home down payment question- HELOC or save money
Replies: 10
Views: 1061

Re: Home down payment question- HELOC or save money

Thanks for the replies. Seems it might be a good idea to open a HELOC right now to keep future flexibility. Do you know of any specific banks that waive the early closure fee after only 2 years? The ones I’ve looked at have that fee for 3 years. Dottie57, are you saying you would save the down payme...
by strongboy2005
Mon Aug 20, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Excessive Emergency Room Charges - Options?
Replies: 207
Views: 13405

Re: Excessive Emergency Room Charges - Options?

I once had an ER visit where the attending came in towards the end (after the resident treated me), checked on how everything was going, and then billed my insurance $250 for that minute. Residents can’t bill. The attending takes total responsibility and liability for your care. The resident is the...
by strongboy2005
Mon Aug 20, 2018 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Home down payment question- HELOC or save money
Replies: 10
Views: 1061

Re: Home down payment question- HELOC or save money

I do expect to have about $20k more in home equity in the next 2 years.
by strongboy2005
Mon Aug 20, 2018 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Home down payment question- HELOC or save money
Replies: 10
Views: 1061

Re: Home down payment question- HELOC or save money

The “debt averse” statement was more to do with my overall investment philosophy. I plan on paying off my student loans in the next 2 years (they are already refinanced to a 5 year term) and pay off the next mortgage in 4-5 years. During this time, I’ll still max out the 401k/Roth IRA/HSA. I’ve only...
by strongboy2005
Mon Aug 20, 2018 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Home down payment question- HELOC or save money
Replies: 10
Views: 1061

Re: Home down payment question- HELOC or save money

Thanks for the reply. I agree, in option 1 I might be stuck with the choice of what to do with the home equity after the sale of my old house. I suppose I would probably apply it to the 5% home loan in that case. As far as the summer of 2020 goes, this was a goal to get into our “permanent” area pri...
by strongboy2005
Sun Aug 19, 2018 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Home down payment question- HELOC or save money
Replies: 10
Views: 1061

Home down payment question- HELOC or save money

Emergency funds: none (stable physician income, plenty of credit card float if needed temporarily, could tap Roth IRA and home equity in a true emergency) Debt: Mortgage $177k @ 3.5% fixed (house current worth is $325k, so $148k in home equity) Student loans $230k @ 3.6% fixed Tax Filing Status: Mar...
by strongboy2005
Wed Mar 28, 2018 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Does my S Corp still make sense? Physician partnership income as K1 to self or keep S corp.
Replies: 6
Views: 1018

Re: Does my S Corp still make sense? Physician partnership income as K1 to self or keep S corp.

Hoping someone knowledgeable can help me out with this. It seems like if your taxable income is less than $315k and you can take this deduction, the S Corp lowers your QBI, and thus your deduction, in excess of what you save on the Medicare tax. In this instance, it seems I should just dissolve my S...
by strongboy2005
Wed Mar 28, 2018 12:18 am
Forum: Personal Finance (Not Investing)
Topic: Does my S Corp still make sense? Physician partnership income as K1 to self or keep S corp.
Replies: 6
Views: 1018

Does my S Corp still make sense? Physician partnership income as K1 to self or keep S corp.

Hello, I was hoping some knowledgeable Bogleheads could help me decide whether or not it is worthwhile to keep my S Corp. I am a physician in a large partnership with the option of being paid on a K1 as a partner or to incorporate and have my S corp pay me (with W2 wages and a K1 income), with the m...
by strongboy2005
Sun Jun 25, 2017 12:28 am
Forum: Personal Finance (Not Investing)
Topic: S corp salary timing
Replies: 7
Views: 1307

S corp salary timing

So I have an S corp and I am planning out how I am going to pay myself in 2018. I expect the S corp to make about $300k and will pay myself $180k as a salary, which is a reasonable salary in my field. My question is does the IRS care when I pay myself? For example, could I take all the distributions...
by strongboy2005
Wed Mar 15, 2017 10:04 pm
Forum: Personal Investments
Topic: Evolving my asset allocation to slice-and-dice
Replies: 9
Views: 1389

Re: Evolving my asset allocation to slice-and-dice

Is there an easy way to back test different allocations?