Search found 7717 matches

by KlangFool
Sun Feb 18, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 8
Views: 615

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

We are hoping to fully retire at at 60, in about 2.5 years.We have about 1.9 million in taxable 401k/IRA's. I think we will be in the same income bracket but I think that the tax brackets will change in future and not be as good so I wanted to take advantage of them now. We have NO tax deferred mon...
by KlangFool
Sun Feb 18, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 22
Views: 1171

Re: Pre- vs post-tax saving: Am I thinking it wrong?

One factor that often gets overlooked is that by deferring tax liability until later, you have more money today. Since you are a rational investor, you will save that additional money also, and you'll do it in the most tax efficient way available. That money also goes to work for you. It wears glov...
by KlangFool
Sun Feb 18, 2018 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 22
Views: 1171

Re: Pre- vs post-tax saving: Am I thinking it wrong?

Given that some BH folks are big savers, it is possible that their tax rate during post retirement be higher than the tax rate pre retirement. EGARCH, You are wrong!! 1) Do you do your own tax? 2) Do you understand that even if that is true, you save tax by putting money into the tax-deferred accou...
by KlangFool
Sun Feb 18, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 50
Views: 2094

Re: Sell me on the benefits of an emergency fund

In that event, the payout of my PTO balance would cover several months of living expenses, and then in the unlikely event I didn't find another job unemployment or (worst case) long term disability would kick in. I have a substantial savings rate, so I could cover an unexpected expense pretty well ...
by KlangFool
Sun Feb 18, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 50
Views: 2094

Re: Sell me on the benefits of an emergency fund

You just need access to capital, and it doesn't need to be cash or bonds either. As livesoft has explained several times, even if your taxable account is 100% equities that are down at the time, that is OK as long as there are bonds in your qualified plans. Sell the equities in your taxable, and at...
by KlangFool
Sun Feb 18, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 50
Views: 2094

Re: Sell me on the benefits of an emergency fund

OP, 1) Have you ever been unemployed? 2) Have you ever been unemployed in a recession? 3) Have you ever been unemployed in a recession and selling your investment at a huge loss in order to feed your family? There is a huge psychological benefit of having 1 year of the emergency fund when you are fa...
by KlangFool
Sun Feb 18, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 50
Views: 2094

Re: Sell me on the benefits of an emergency fund

A major earthquake hits. Power is knocked-out, businesses are closed. The only thing being accepted is cash. I go to my safe and pull out my emergence fund - a stack on fresh bills to trade for food and water. Replace "earthquake" with "Chinese cyberattack" or "fire" or "flood" or ... US ccy is no ...
by KlangFool
Sat Feb 17, 2018 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 108
Views: 5312

Re: What has been your most important skill in achieving financial independence?

Hate to say it, but saving and sheer frugality to good amounts of saving has been terrible compared to significant increases in income. Remember that if you are super frugal, it becomes difficult to find a partner who may be willing to mtach your level of frugality. Especially while dating - are yo...
by KlangFool
Sat Feb 17, 2018 10:27 pm
Forum: Personal Consumer Issues
Topic: Is Enterprise Architecture worth building career upon?
Replies: 12
Views: 908

Re: Is Enterprise Architecture worth building career upon?

OP, 1) Can you find the next job as Enterprise Architect? I am not confident. have TOGAF certification, but really feel its not of much sought for anymore. 2) How could someone outside your organization (aka future employer) know that you are a good EA? What is your industry-recognized credential? ...
by KlangFool
Sat Feb 17, 2018 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 108
Views: 5312

Re: What has been your most important skill in achieving financial independence?

IMHO, If you saved 25X your annual expenses that would be more than enough to stop working. Cheers. But aren't I not allowed to take out huge chunks of my investments in things like my Roth IRA and S-IRA until I'm 60? Is me being able to retire early contingent on that 25x being in a taxable accoun...
by KlangFool
Sat Feb 17, 2018 8:20 pm
Forum: Personal Consumer Issues
Topic: Is Enterprise Architecture worth building career upon?
Replies: 12
Views: 908

Re: Is Enterprise Architecture worth building career upon?

OP, 1) Can you find the next job as Enterprise Architect? 2) How could someone outside your organization (aka future employer) know that you are a good EA? What is your industry-recognized credential? 3) Do you know the customer/industry well enough that you could be hired by someone else for other ...
by KlangFool
Sat Feb 17, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 84
Views: 5794

Re: Why paying off loans would be better than fully funding 401k?

ChinchillaWhiplash wrote:
Sat Feb 17, 2018 1:03 pm

I'm still going to pay off the 401k loan 1st
ChinchillaWhiplash.

Why? With the 401K loan, you are paying interest to yourself. As opposed to all other loans that you are paying interest to other people. What do I miss here?

KlangFool
by KlangFool
Sat Feb 17, 2018 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 108
Views: 5312

Re: What has been your most important skill in achieving financial independence?

OP,

30+% of gross saving rate. Aka, save one year of annual expense every year while I was employed. This hopefully will let me reach my FI goal in the next few years in spite of

A) Lost 50% of my net worth in Telecom bust 10+ years

B) Unemployed for more than 1 year a few times.

KlangFool
by KlangFool
Sat Feb 17, 2018 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 108
Views: 5312

Re: What has been your most important skill in achieving financial independence?

Also, about surviving the financial recessions...is that "being lucky" part in the context of FI before age 65? Because I thought recessions aren't a big deal as long as you stay the course (assuming I'm in it for the long haul). Not sure what luck has to do with anything. My understanding is that ...
by KlangFool
Sat Feb 17, 2018 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 108
Views: 5312

Re: What has been your most important skill in achieving financial independence?

Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use. sonofdelrinson, 1) Are you saving for Retirement or FI? A) Retirement means that you are targeti...
by KlangFool
Sat Feb 17, 2018 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 17
Views: 1316

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

OP,

https://www.madfientist.com/how-to-acce ... nds-early/

You should read the above article. SEPP is not the preferred method. It is unnecessary overly complicated and not flexible.

KlangFool
by KlangFool
Sat Feb 17, 2018 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 69
Views: 4483

Re: Effect of spending money on appearance in career

I'll start by writing that I'm male. Unfortunately it does end up as a factor for men and women. I'll go out on a limb and say, in general, active and healthy looking, energetic men and women over 50 have less change of "age discrimination" all other things equal than peers who are overweight or se...
by KlangFool
Sat Feb 17, 2018 10:57 am
Forum: Personal Finance (Not Investing)
Topic: How to get child's skin in the game for college?
Replies: 133
Views: 5907

Re: How to get child's skin in the game for college?

After reading this very interesting thread, and contemplating my own college experience, I am warming up to one idea that came up from a few posters. That is if parents can afford it, they pay for non-tuition costs, the student is responsible for tuition. If a kid has a good scholarship at a state ...
by KlangFool
Fri Feb 16, 2018 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: How to get child's skin in the game for college?
Replies: 133
Views: 5907

Re: How to get child's skin in the game for college?

Folks, This is probably not the answer that you want to hear. During high school's summer break, my kids worked minimum wage jobs at a restaurant. They get to meet all those folks that did not finish college for one reason or another. They get to know the reality of life. They get to know how tough ...
by KlangFool
Fri Feb 16, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Better not taxed now or taxed later?
Replies: 23
Views: 1578

Re: Better not taxed now or taxed later?

If your dad is under 59.5, there will be an early withdrawal penalty if he withdraws now. I also assume, he is not talking about Required Minimum Distributions that start in the year he turns 70.5. He may need to take RMDs (have another topic on that) so I was just wondering if he should take more ...
by KlangFool
Fri Feb 16, 2018 5:09 pm
Forum: Investing - Theory, News & General
Topic: Better not taxed now or taxed later?
Replies: 23
Views: 1578

Re: Better not taxed now or taxed later?

My dad has an IRA, and would be able to withdraw some money now in the 0% tax bracket temporarily. He will likely be in a higher tax bracket in the future. Is it better to take money out of an IRA in the 0% tax bracket and then have it in a taxable account, or to let it grow tax-free in the IRA and...
by KlangFool
Fri Feb 16, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Confused - placing for best after tax return- 401k and Roth 401k
Replies: 15
Views: 951

Re: Confused - placing for best after tax return- 401k and Roth 401k

I think duckie hit the nail on the head- thank you! To be more specific and allow for better answers to my original question we currently are 29 (wife) and 31(me), both work full time and do not yet have children. We are in a high tax bracket- our income should be $200k this year, and possibly $20-...
by KlangFool
Fri Feb 16, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking of ditching my FA; UPDATE
Replies: 24
Views: 2615

Re: Thinking of ditching my FA; UPDATE

KlangFool, Thanks for your reply. The taxable account is made primarily of company stock I bought at a very low option price over 20 years ago. I guess its always been part of our emergency fund in our minds. It pays a good dividend. But it probably makes sense to sell it and pay for a semester or ...
by KlangFool
Fri Feb 16, 2018 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking of ditching my FA; UPDATE
Replies: 24
Views: 2615

Re: Thinking of ditching my FA; UPDATE

KlangFool, Thanks for your reply. The taxable account is made primarily of company stock I bought at a very low option price over 20 years ago. I guess its always been part of our emergency fund in our minds. It pays a good dividend. But it probably makes sense to sell it and pay for a semester or ...
by KlangFool
Fri Feb 16, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking of ditching my FA; UPDATE
Replies: 24
Views: 2615

Re: Thinking of ditching my FA

Thanks for the replies, I apologize livesoft, I misunderstood the portfolio size number system. I should have said just over 6 figures. The reason for the low contribution level at this time is that we are living on a single income and diverting all 'extra' money to college expenses to avoid loans ...
by KlangFool
Fri Feb 16, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: How to get child's skin in the game for college?
Replies: 133
Views: 5907

Re: How to get child's skin in the game for college?

LawyersGunsAndMoney wrote:
Fri Feb 16, 2018 12:44 pm
I suspect that how a child is raised and the experiences she has during the first 18 years of life will probably a stronger force of her having a "skin in the game' of her own future than whatever type of college plan you concoct.
+1,000.

KlangFool
by KlangFool
Wed Feb 14, 2018 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Confused - placing for best after tax return- 401k and Roth 401k
Replies: 15
Views: 951

Re: Confused - placing for best after tax return- 401k and Roth 401k

OP,

In general, most folks pay more taxes when they contribute to Roth 401K. So, your first question should be why do you choose to pay more taxes by contributing to Roth 401K. It is usually the wrong choice.

KlangFool
by KlangFool
Wed Feb 14, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...
Replies: 74
Views: 3019

Re: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...

My big question is should I lower my 401k contribution from 14% down to my employer match for a few months get get a good chunk of the 3 months saved up? MikesChevelle, That does not work. You have to pay tax on every dollar that you do not contribute to the 401K. Depending on your Federal marginal...
by KlangFool
Wed Feb 14, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Net worth progression: what am i doing wrong?
Replies: 25
Views: 3718

Re: Net worth progression: what am i doing wrong?

My only comment: why are you investing in taxable while not maxing out your 401k and a Roth? I do not plan to reside in the US and will probably go back to my home country in 5-6 years time frame. I'm assuming that the tax benefit of a 401k/Roth would be lost if moving back to the OPs home country....
by KlangFool
Tue Feb 13, 2018 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Net worth progression: what am i doing wrong?
Replies: 25
Views: 3718

Re: Net worth progression: what am i doing wrong?

My only comment: why are you investing in taxable while not maxing out your 401k and a Roth? I do not plan to reside in the US and will probably go back to my home country in 5-6 years time frame. I'm assuming that the tax benefit of a 401k/Roth would be lost if moving back to the OPs home country....
by KlangFool
Tue Feb 13, 2018 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Net worth progression: what am i doing wrong?
Replies: 25
Views: 3718

Re: Net worth progression: what am i doing wrong?

Hi, I am a 26 year old working in the tech sector with a $95k annual salary. Because my current place of living is prohibitively expensive to live alone, i live with roommates. Hence i spend only 1/4th of my after-tax salary and i do not have a car and a I am single. I have been earning this salary...
by KlangFool
Tue Feb 13, 2018 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16348

Re: Number at which to stop worrying

OP, 50 times your current annual expense. At 72K per year, it is 3.6 million. KlangFool A 65 year-old couple can get an inflation-adjusted annuity that kicks off $72K per year for $2M. At that point all the gyrations of the market are someone else's problem to worry about. OP is at the late 40s. Kl...
by KlangFool
Tue Feb 13, 2018 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16348

Re: Number at which to stop worrying

Would you apply the 50X annual expense only to assets in hand, or would you include income? For example, we have SS and a pension that cover close to 100% of our expenses, but only about 35X annual expenses in our portfolio. Basspond's response fits our situation well. Tim Nowizard, 50X applies to ...
by KlangFool
Tue Feb 13, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...
Replies: 74
Views: 3019

Re: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...

Ok, so if I understand this correctly. Fund the Roth 401k up to my company match, open a Roth IRA under the wife and get that up to $2k, lastly open my own ROTH IRA and fund that to $2k or more. Along with that, have an initial layer (primary layer) of cash in a savings account for the first part o...
by KlangFool
Tue Feb 13, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16348

Re: Number at which to stop worrying

Folks, The good thing about being unemployed for 1 year or longer a few times is A) I learned not to worry. I had to in order to survive. B) I am prepared for whatever worst case that I can imagine. For example, I am prepared for unemployment and recession lasting 5 years at any time. C) I have a p...
by KlangFool
Mon Feb 12, 2018 11:15 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4809

Re: how did you determine your risk tolerance?

I am aware of margin calls, hence my "if you know what you're doing" disclaimer. Assuming your portfolio worth 20 years of expenses drops by 50%, you could still withdraw upwards of 7 years worth of expenses before facing a margin call. I'll admit it's not for everyone, but to flat-out dismiss marg...
by KlangFool
Mon Feb 12, 2018 10:37 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4809

Re: how did you determine your risk tolerance?

bling, Which part do you not understand? I have a choice A) Keep one year of the emergency fund and get 0% return. In exchange, I do not face the danger of selling my portfolio at 50% or more losses for at least one year. B) Do not keep one year of the emergency fund and have to sell at 50% or more...
by KlangFool
Mon Feb 12, 2018 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16348

Re: Number at which to stop worrying

Folks, The good thing about being unemployed for 1 year or longer a few times is A) I learned not to worry. I had to in order to survive. B) I am prepared for whatever worst case that I can imagine. For example, I am prepared for unemployment and recession lasting 5 years at any time. C) I have a pl...
by KlangFool
Mon Feb 12, 2018 10:26 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4809

Re: how did you determine your risk tolerance?

bling, Which part do you not understand? I have a choice A) Keep one year of the emergency fund and get 0% return. In exchange, I do not face the danger of selling my portfolio at 50% or more losses for at least one year. B) Do not keep one year of the emergency fund and have to sell at 50% or more...
by KlangFool
Mon Feb 12, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16348

Re: Number at which to stop worrying

OP,

My number is 1.5 million. It is 25 times my current annual expense. If I use 300K to pay off my mortgage, I will have 1.2 million versus 45K of annual expense about 27 times.

KlangFool
by KlangFool
Mon Feb 12, 2018 8:42 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4809

Re: how did you determine your risk tolerance?

bling, The likelihood of the next recession will be exactly like 2008/2009 is zero. KlangFool i feel like this is never going to end. you like emergency funds. i don't. you're 100% comfortable with your choice. i'm 100% comfortable with my choice. you presented your case. i presented mine. the read...
by KlangFool
Mon Feb 12, 2018 8:08 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4809

Re: how did you determine your risk tolerance?

bling wrote:
Mon Feb 12, 2018 7:03 pm

2008/2009.....
bling,

The likelihood of the next recession will be exactly like 2008/2009 is zero.

KlangFool
by KlangFool
Mon Feb 12, 2018 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16348

Re: Number at which to stop worrying

OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool
by KlangFool
Mon Feb 12, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...
Replies: 74
Views: 3019

Re: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...

There is not enough information in your post to answer the question. What is your household income, expenditure, savings, 401k balance, taxable accounts, etc? And why did you think of the emergency fund when the market tanked and not before that? Household is about $55k. Rent is $1150. Savings is a...
by KlangFool
Mon Feb 12, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...
Replies: 74
Views: 3019

Re: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...

There is not enough information in your post to answer the question. What is your household income, expenditure, savings, 401k balance, taxable accounts, etc? And why did you think of the emergency fund when the market tanked and not before that? Household is about $55k. Rent is $1150. Savings is a...
by KlangFool
Mon Feb 12, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...
Replies: 74
Views: 3019

Re: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...

There is not enough information in your post to answer the question. What is your household income, expenditure, savings, 401k balance, taxable accounts, etc? And why did you think of the emergency fund when the market tanked and not before that? Household is about $55k. Rent is $1150. Savings is a...
by KlangFool
Mon Feb 12, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...
Replies: 74
Views: 3019

Re: Emergency fund question - 3 vs 6 months and should I lower my 401k contribution to get there...

My big question is should I lower my 401k contribution from 14% down to my employer match for a few months get get a good chunk of the 3 months saved up? MikesChevelle, That does not work. You have to pay tax on every dollar that you do not contribute to the 401K. Depending on your Federal marginal...
by KlangFool
Mon Feb 12, 2018 9:04 am
Forum: Personal Consumer Issues
Topic: Mesh wifi solution sought for new house
Replies: 45
Views: 2119

Re: Mesh wifi solution sought for new house

Is there anything that would preclude using my old Airport Extreme's, one in the cabana and one in the garage, and using a mesh network in the main house? I know just enough about WiFi to be dangerous, and not a bit more. This might be the best option; a hybrid system reusing my Airport Extreme's, ...
by KlangFool
Sun Feb 11, 2018 10:36 pm
Forum: Personal Consumer Issues
Topic: Mesh wifi solution sought for new house
Replies: 45
Views: 2119

Re: Mesh wifi solution sought for new house

https://www.ekahau.com/products/heatmapper/overview/

OP,

This free tool allows you to map the WiFi signal strength around your house.

https://www.networkworld.com/article/29 ... tml#slide1

Another link.

KlangFool