Search found 218 matches

by dave_k
Fri Apr 13, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Guaranteed 9% annualized return?
Replies: 26
Views: 2492

Re: Guaranteed 9% annualized return?

Posting this again for reference as this takes into account opportunity cost: I did some calculations using the FV function in Excel and here are the results. Scenario 1: Payoff mortgage early, then invest everything you were throwing at the mortgage in a 75:25 taxable account for 10 years 5 months...
by dave_k
Fri Apr 13, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Guaranteed 9% annualized return?
Replies: 26
Views: 2492

Re: Guaranteed 9% annualized return?

To expand on my earlier post with the math: You were calculating the IRR like this: -48000 <- negative is the "investment" -48000 -48000 -48000 -28000 291448 <- positive is the return IRR = 9.01% When it should be something like this: -48000 -48000 -48000 -48000 -16530 <- 28000 invested, offset by 5...
by dave_k
Fri Apr 13, 2018 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Guaranteed 9% annualized return?
Replies: 26
Views: 2492

Re: Guaranteed 9% annualized return?

As gouverneur indicated, I think your methodology is off in counting what you would save in interest over 15 years into the "net benefit" amount and putting that all in year 5. I calculated the return on making early/extra mortgage payments last year and found that, as I expected, it's exactly the e...
by dave_k
Tue Dec 26, 2017 12:17 pm
Forum: Personal Consumer Issues
Topic: Favorite Camera - Recommendations, Photos, and Pictures of Your Gear?
Replies: 65
Views: 5052

Re: Favorite Camera - Recommendations, Photos, and Pictures of Your Gear?

Current and first decent camera: Canon EOS 60D - 18 MP DSLR Primarily landscape/nature photography Favorite Lens: Tamron 18-270 mm lens with stabilization and autofocus. I used it on a safari trip recently and the 15x zoom was very handy for getting both wide angle and closeup shots without having t...
by dave_k
Sun Dec 24, 2017 10:11 pm
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 6498

Re: Implications of tax bill on residential real estate (house prices)

OP here - thanks to everyone for their responses. There have been interesting arguments for effects in different directions and at different price levels, or little effect at all. I guess we'll just have to wait and see, since it's complex and will affect different markets/states differently, and it...
by dave_k
Sun Dec 24, 2017 10:04 pm
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 6498

Re: Implications of tax bill on residential real estate (house prices)

Also, perhaps rent will go up because landlords are paying higher property taxes? Or do landlords get some sort of deduction related to business that homeowners don't get for their primary residence? Owners of rental property can deduct property taxes and mortgage interest against the rental income...
by dave_k
Sun Dec 24, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Delay income to next year for tax savings? (tax bill)
Replies: 0
Views: 198

Delay income to next year for tax savings? (tax bill)

This seems like a no-brainer, but I haven't seen it discussed here and I'd like a sanity check: I'm a small business owner, and my business partner and I have the opportunity to defer a large bonus into next year instead of taking it in our year-end paycheck as we normally would. This should save us...
by dave_k
Sun Dec 24, 2017 1:59 pm
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 6498

Re: Implications of tax bill on residential real estate (house prices)

We used to live in So Cal, and will be back there visiting friends for New Year's, most of whom are homeowners. This should make for some interesting conversations!
by dave_k
Sun Dec 24, 2017 1:39 pm
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 6498

Re: Implications of tax bill on residential real estate (house prices)

Nate79: I suspect a much larger fraction of potential buyers itemize in the price range our house is in (about $450-500k). More are also subject to AMT (now) though, which dampens the effect, but I don't know how much on average. As others have mentioned, I was also thinking it would primarily affec...
by dave_k
Sun Dec 24, 2017 12:23 pm
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 6498

Implications of tax bill on residential real estate (house prices)

I've seen it mentioned in a couple other threads, and mentioned it myself, but I haven't seen any discussion (maybe I missed it): Like my wife and I, many people will go from itemizing and having their mortgage interest and property taxes largely or entirely written off at their marginal rate to tak...
by dave_k
Sat Dec 23, 2017 12:47 am
Forum: Personal Finance (Not Investing)
Topic: Do you see a meaningful change in your income with new Tax Bill?
Replies: 266
Views: 23963

Re: Do you see a meaningful change in your income with new Tax Bill?

Without accounting for AMT, it looks like it should save us about $7500, or around 2.5% of our after tax income. I'd consider that meaningful. I'm not sure if that will be more or less with AMT though. I hope taxplancalculator.com incorporates it soon. I'm not sure if the page on how to adjust for A...
by dave_k
Thu Dec 21, 2017 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 60700

Re: Tax Bill Omnibus Thread

A couple questions related to mortgage interest deductibility: 1. Earlier this year I compared paying down our mortgage vs. investing in muni bonds given our tax situation, and decided it was better to go with muni bonds. We expect to sell the house in 5 years or so, which is when we would have gott...
by dave_k
Wed Dec 20, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 60700

Re: Tax Act Omnibus Thread

Prepay your mortgage but the bill explicitly forbids deducting a 2018 SALT payment against 2017 Only the interest portion is tax deductible. Won't any extra/pre payments all be principal, paying down the balance? No. You are paying your January payment early, in December, not making an extra paymen...
by dave_k
Wed Dec 20, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 60700

Re: Tax Act Omnibus Thread

betablocker wrote: ↑
Wed Dec 20, 2017 1:20 pm
Prepay your mortgage but the bill explicitly forbids deducting a 2018 SALT payment against 2017
Only the interest portion is tax deductible. Won't any extra/pre payments all be principal, paying down the balance?
by dave_k
Tue Dec 19, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: pay down mortgage or invest in taxable
Replies: 73
Views: 7382

Re: pay down mortgage or invest in taxable

I considered this question several months ago, and because of the tax deductibility of the interest and our tax bracket, I came to the conclusion that it was better to invest in municipal bonds in taxable rather than pay down the mortgage. In our case we will likely sell the house in about 5 years, ...
by dave_k
Thu Nov 02, 2017 2:10 pm
Forum: Personal Consumer Issues
Topic: Considering a LG 55" OLED TV
Replies: 50
Views: 5781

Re: Considering a LG 55" OLED TV

I have last year's 65" model, and the picture is incredible. I highly recommend the LG OLED 4k TVs. Whether 55" is big enough to take good advantage of 4k depends on viewing distance and how good your eyesight is. If you can see good 4k material on both sizes in the store, check it for yourself at v...
by dave_k
Thu Oct 19, 2017 1:58 pm
Forum: Personal Consumer Issues
Topic: anyone else not liking the new cars?
Replies: 158
Views: 17709

Re: anyone else not liking the new cars?

Gas stations will convert to places where you exchange battery packs. Quicker than filling a tank with liquid fuel. Range infinite. Automated, you just pull in over a mechanism and voila! You are ready to go with a full charge. Quicker than filling a tank with gas? How come that doesn't exist now? ...
by dave_k
Thu Oct 19, 2017 1:51 pm
Forum: Personal Consumer Issues
Topic: anyone else not liking the new cars?
Replies: 158
Views: 17709

Re: anyone else not liking the new cars?

That's an interesting approach, but how many cylinders can be just past TDC simultaneously? Two, in most cases. As many as would be simultaneously starting a powerstroke, in all cases. To expand on that - Two cylinders can be just past TDC simultaneously in most four stroke engines with an even num...
by dave_k
Tue Oct 17, 2017 1:42 pm
Forum: Personal Consumer Issues
Topic: anyone else not liking the new cars?
Replies: 158
Views: 17709

Re: anyone else not liking the new cars?

If it makes you feel better....those new cars will likely have terrible resale too after EVs take over. ... But I am concerned that EVs will eventually destroy ICE used car resale value. MIght be 5 years, might be 10 years, but and some point a lot of gasmobile owners will be left holding a bag. So...
by dave_k
Mon Oct 16, 2017 4:21 pm
Forum: Personal Consumer Issues
Topic: Is Florida Over, 2017
Replies: 48
Views: 6901

Re: Is Florida Over, 2017

My wife and I have a vacation home on a west coast barrier island in south FL - Fort Myers Beach. It's right on the beach on stilts, and the beach is only a few feet above high tide. We had quite a scare with Irma - the day before it hit the storm surge was predicted to be over the roof! We got very...
by dave_k
Tue Oct 10, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 18897

Re: [Boglehead vs Mr Money Mustache philosophies]

In my area we have local meetings of both Bogleheads and MMM followers. I've been to several of each over the last couple years. I feel a bit out of place at the MMM meetings because my high savings rate is due more to a high income than frugal living, and I have a gas guzzling car and a boat, but t...
by dave_k
Fri Aug 18, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know how much your portfolio lost/gain in one day?
Replies: 31
Views: 2070

Re: How do you know how much your portfolio lost/gain in one day?

For that thread I just estimated it based on knowing roughly what my total investable assets are and the allocation to stocks, and the percentage decline in the total stock market. To be precise, I could have gone into my accounts and looked at the ending balances for the day and the previous day, b...
by dave_k
Fri Aug 18, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Lost $7000 today in ONE DAY!
Replies: 183
Views: 19046

Re: Lost $7000 today in ONE DAY!

Another thing to consider: There have been a few other days this year where it's dropped about this much or more. One of them was last Thursday. Because of the overall upward trend, none of them were even decent TLH opportunities (for me at least). Look at a graph of the total stock market so far th...
by dave_k
Thu Aug 17, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: Lost $7000 today in ONE DAY!
Replies: 183
Views: 19046

Re: Lost $7000 today in ONE DAY!

I lost at least twice that, but it's not a big deal. It's still higher than it had ever been as of a few months ago. It could easily go right back up within days - or down more. If it goes down a few more percent I'll just buy more stock (rebalance). Nothing to lose sleep over.
by dave_k
Thu Aug 17, 2017 10:44 pm
Forum: Personal Consumer Issues
Topic: Live TV internet streaming - 30 vs 60 fps
Replies: 10
Views: 3914

Re: Live TV internet streaming - 30 vs 60 fps

I don't have experience with those specific devices, but I can tell you that content captured at 60 fps like sports will look much better at 60 fps than at 30. Movies are 24 fps, and most TV dramas are too. I believe some TV shows are shot at 30 fps. Some are at 60 fps, often talk shows and sitcoms....
by dave_k
Thu Aug 17, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone planning on never retiring?
Replies: 138
Views: 13954

Re: Anyone planning on never retiring?

I'm planning on retiring but I'm expecting to never quit working. Retirement: - Yes, some day I will no longer provide value to companies related to my current career (high tech) - I have a 401k etc - I'm "hoping" for SS, hoping I can eventually make use of that 401k The reality: - Healthcare (ie. ...
by dave_k
Wed Aug 16, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Munis at Fidelity: FTABX or VTEB?
Replies: 41
Views: 4687

Re: Munis at Fidelity: FTABX or VTEB?

Even though I already had a taxable account at Fidelity, I opened a Vanguard account earlier this year so I could buy VWIUX and VWLUX (intermediate and long term muni funds) since they had the duration and SEC yield I was looking for with lower expense ratios (.09%). They are not subject to the 6 mo...
by dave_k
Thu Aug 10, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds and Taxes.
Replies: 24
Views: 2573

Re: Muni Bonds and Taxes.

Thanks, I overlooked the distinction between distributions and gains.
by dave_k
Thu Aug 10, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds and Taxes.
Replies: 24
Views: 2573

Re: Muni Bonds and Taxes.

Long-term capital gain distributions can be offset against any losses generated by a sale; short-term capital gain distributions cannot and must be counted as taxable income. If you have capital losses, can't short term losses or remaining long term losses be used to offset short term gains? And th...
by dave_k
Thu Aug 10, 2017 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds and Taxes.
Replies: 24
Views: 2573

Re: Muni Bonds and Taxes.

As I recall, a cap loss on muni bond funds held less than 6 months is non-deductible so be careful if you TLH. Actually, the Bogleheads looked into this and we ultimately came to the conclusion that is not so! Truly one of the highlights of the forum. If your municipal bond fund is accruing interes...
by dave_k
Wed Aug 09, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: Can real estate investing (actual properties) be relatively "hands off"?
Replies: 50
Views: 7333

Re: Can real estate investing (actual properties) be relatively "hands off"?

** friend of mine is renting the upstairs apartment in a duplex in a small city in Canada. Downstairs has guests who are either dealing, or buying-- 3am visits, engines running, doors slamming etc. It's all pretty unpleasant. There's a lot of drugs out there-- it's not just inner city crack dens. I...
by dave_k
Thu Aug 03, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket, AMT, state taxes - best approach
Replies: 13
Views: 1938

Re: High tax bracket, AMT, state taxes - best approach

If you are a partner in the company that employs you - why can't you work with the other partners and get a NQDC plan started? Or a defined benefit plan (small business pension plan) so that you can defer more pre-tax? There are a few vehicles for business owners / partners to defer very large amou...
by dave_k
Thu Aug 03, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket, AMT, state taxes - best approach
Replies: 13
Views: 1938

Re: High tax bracket, AMT, state taxes - best approach

Our CPA is also the CPA for the company I am a partner in, so he is able to optimize taxes across business and personal. Even after maximizing profit sharing into the 401K and my wife and I maxing our 401K contributions, we simply can't avoid AMT aside from earning less. Worse yet, we are in the AMT...
by dave_k
Thu Aug 03, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 433
Views: 52606

Re: A poll: How much money do you need to retire?

I find it interesting how many people don't factor in social security. What is the reason for that? Legitimate expectation that it won't be there? Desire to "round up" and come up with a more conservative number? I didn't count it for a long time, but that was mostly because I didn't really underst...
by dave_k
Wed Aug 02, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: How far off are Zillow's estimates?
Replies: 82
Views: 9633

Re: How far off are Zillow's estimates?

Admiral wrote:I still don't understand why they don't post sold prices. Wouldn't this alone help them make their data more accurate?
They do have sale history data, at least in places I've looked. They show "recently sold" prices if you select that Listing Type. That's what I use to find my own comps.
by dave_k
Wed Aug 02, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 433
Views: 52606

Re: How much money do you need to retire?

45 now, targeting 2.5M investable assets to retire in early 50s. No pension, but I'm assuming 75% of projected SS benefits, planning to delay until 70. Should allow for 125K/y pre tax at first. Can "downsize" from a waterfront home and/or sell the secondary home if necessary, so that acts as a safet...
by dave_k
Tue Aug 01, 2017 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: How far off are Zillow's estimates?
Replies: 82
Views: 9633

Re: How far off are Zillow's estimates?

Over the last few years it's gone from overvaluing our primary home to undervaluing it, and now back to overvaluing it (a 50% swing just in the last year). I think it has trouble because it's waterfront but near a lot of non-waterfront homes in neighborhoods that vary, and the comps it uses are lite...
by dave_k
Tue Aug 01, 2017 5:17 pm
Forum: Investing - Theory, News & General
Topic: "the top 1 percent of families had $1.08 million or more saved in 2013."
Replies: 26
Views: 4855

Re: "the top 1 percent of families had $1.08 million or more saved in 2013."

It is just looking at retirement accounts, not net worth. They assume that's the only way people save for retirement, apparently. As mentioned above, the data behind it is here: http://www.epi.org/publication/retirement-in-america/.
by dave_k
Tue Aug 01, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: "the top 1 percent of families had $1.08 million or more saved in 2013."
Replies: 26
Views: 4855

Re: "the top 1 percent of families had $1.08 million or more saved in 2013."

I'm doing okay, but I can't imagine how I would have gotten to a million in tax-advantaged accounts. My wife and I are in our mid 40s, and have just recently gone over $1M in tax advantaged accounts. Much of it is due to being able to save the max on the employer side for several years through prof...
by dave_k
Mon Jul 31, 2017 4:14 pm
Forum: Personal Consumer Issues
Topic: Your "at peace" moments.
Replies: 98
Views: 13228

Re: Your "at peace" moments.

Some of my most peaceful solitary times are when I'm running on trails in a park, or on the beach. Other favorites are reading in a hammock by the water, or relaxing in the hot tub after a run or workout. I'm married, but that doesn't mean I can't do those things. No kids though, or I'm sure it woul...
by dave_k
Mon Jul 31, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Any pilots here? [as a career]
Replies: 38
Views: 5195

Re: Any pilots here? [as a career]

Self driving cars, now self flying planes. Time to buy one of those electric bikes to get around. Roads will be dangerous and now the airways. Call me a luddite, but after 40+ years in IT, some in the military and most in software development. You are never going to see me in a self-driving car, le...
by dave_k
Mon Jul 31, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Should I purchase Lake House for Primary
Replies: 28
Views: 4631

Re: Should I purchase Lake House for Primary

My wife and I have lived on a lake as our primary residence for the past 7 years and we love it. It's more expensive and there's additional maintenance with a boat and dock, but it's worth it to us. If you know you like waterfront living and activities, go for it! To address a couple points made abo...
by dave_k
Mon Jul 24, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 14759

Re: What's your personal savings rate?

Our savings rate for 2016 was about 50% of gross, 70% of net. We achieved it by being able to save a lot (~75K) tax-deferred through profit sharing, having a fairly high income, not being in a HCOL area, low lifestyle inflation, and good old LBYM. No strict budgeting. We hadn't measured it for prior...
by dave_k
Mon Jul 24, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 500K Cash
Replies: 11
Views: 2519

Re: Investing 500K Cash

I understand the nervousness about the stock market, but as others have said, it's still a good long term bet. Real estate has crashes as well, and has also had a long bull run, so why do you expect it to be better in that regard? I have also invested in private commercial real estate deals over the...
by dave_k
Mon Jul 24, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Taxable - Tax Exempt Bond Options? Short or Mid Term?
Replies: 50
Views: 4737

Re: Fidelity Taxable - Tax Exempt Bond Options? Short or Mid Term?

When I wanted to buy tax exempt bonds in taxable recently, already having a Fidelity account, I decided the best option was to open a Vanguard account just for those (keeping the rest at Fidelity), and buy VWIUX and VWLUX (intermediate and long term). Fidelity's offerings weren't as good. I decided ...
by dave_k
Mon Jul 24, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 8999

Re: 4% mortgage rate vs 2.5% BND yield

A few months ago when the yields on medium and long duration municipal bond funds were about 2.2% and 2.7%, I decided to buy a mixture of those rather than pay down a 3.5% mortgage. In that scenario, given my tax bracket and the tax advantage of the muni bonds (in a taxable account), it was better t...
by dave_k
Fri Jul 21, 2017 1:58 pm
Forum: Investing - Theory, News & General
Topic: Can real estate investing (actual properties) be relatively "hands off"?
Replies: 50
Views: 7333

Re: Can real estate investing (actual properties) be relatively "hands off"?

I've done some private equity commercial real estate investing. Not quite direct, but as a fractional owner of LLCs that each own a property. The only effort I had to put in was up front to evaluate each deal and decide whether and how much to invest. The catch is that these deals required being an ...
by dave_k
Tue Jul 18, 2017 11:30 am
Forum: Personal Consumer Issues
Topic: Thinking of Retiring in South Florida
Replies: 13
Views: 2199

Re: Thinking of Retiring in South Florida

My wife and I are planning to retire (or partially retire) to Fort Myers Beach in 5 years or so, and be snowbirds between there and New England. My wife's father and stepmother retired there several years ago and love it. They sold us their house when they decided to move into a retirement community...
by dave_k
Mon Jul 10, 2017 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: "Millionaire Next Door" Net Worth Formula
Replies: 178
Views: 26191

Re: "Millionaire Next Door" Net Worth Formula

Omo, I agree, the terms "very rich" or "uber rich" apply best to the .1% or .01%, not the bottom end of the top 1%. I too doubt there are many on this forum, but perhaps a few. Interesting article, and consistent with others I've read over the last few years. Much of the gains in the top 1% are in t...
by dave_k
Wed Jul 05, 2017 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: POLL: Pay down 3.5% mortgage or invest in taxable?
Replies: 102
Views: 17873

Re: POLL: Pay down 3.5% mortgage or invest in taxable?

I posted a topic about this months ago (long after this poll was started), and the conclusion was that at 3.5% I would likely do better after taxes with a mixture of intermediate and long term municipal bonds (VWIUX and VWLUX) given my tax bracket and where the SEC yields were at the time, so that's...