Search found 393 matches

by UpsetRaptor
Wed Nov 06, 2019 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

Scenario 1: On Jan 1, took RMD on $1M balance. RMD = $1M/22 = $45,455. Scenario 2: Waited until 12/31 to take RMD. $1M balance gains 6% = $1,060,000. Take RMD $1,060,000/22 = $48,182 The RMD is the same, $45,455 regardless of when in the year it is taken. The divisor is applied to the previous 12/3...
by UpsetRaptor
Wed Nov 06, 2019 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

If you reinvest the money it doesn't matter when you take the RMD. I disagree. It does matter if you reinvest, and here's why: RMDs, being a simple vehicle for the taxman to get his cut from you, are based on the total of your traditional IRAs at the end of the previous year. I have never enjoyed h...
by UpsetRaptor
Wed Nov 06, 2019 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

No one actually answered my question about how to identify the the month with the highest average DJIA value over all past years, or over a specified range of past years. Although no month can be assured as the best for market timing, I am sure my question would lead to one specific month over all ...
by UpsetRaptor
Wed Nov 06, 2019 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

No one actually answered my question about how to identify the the month with the highest average DJIA value over all past years, or over a specified range of past years. Although no month can be assured as the best for market timing, I am sure my question would lead to one specific month over all ...
by UpsetRaptor
Wed Nov 06, 2019 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

Personal preference, if just re-investing and/or doing a QCD with it. For me, younger and still working while having a RMD on an inherited IRA, I do late November because that gives it more time in the market to grow each year. Then I use the RMD money for the annual extra Christmas expenses, with w...
by UpsetRaptor
Fri Nov 01, 2019 3:56 pm
Forum: Personal Investments
Topic: Still don’t understand Bond Index Funds..
Replies: 10
Views: 2141

Re: Still don’t understand Bond Index Funds..

I have a similar question about how bond index work that may be applicable to this thread vs starting a whole new. Suppose I buy a bond index fund, let's say VBTLX. Suppose at time of purchase the weighted average coupon rate of the bond index fund is X, general interest rates are Y, and the market'...
by UpsetRaptor
Tue Oct 22, 2019 1:46 pm
Forum: Personal Investments
Topic: Emergency Fund - why not VTSAX?
Replies: 52
Views: 4769

Re: Emergency Fund - why not VSTAX?

Totally fine OP. Just build a taxable account twice as high as your EF to cover any emergency cash needs even taking into account a market crash, and you're covered, while incurring better long term gains. So you get to have your cake and eat it too. I've always disliked the default emergency fund a...
by UpsetRaptor
Thu Oct 17, 2019 9:16 am
Forum: Personal Finance (Not Investing)
Topic: What percent of net worth should a persons house be?
Replies: 141
Views: 10330

Re: What percent of net worth should a persons house be?

If you're doing things right, it should be a negative number until retirement. :D
by UpsetRaptor
Fri Oct 11, 2019 9:54 am
Forum: Investing - Theory, News & General
Topic: highly compensated employee (HCE) Time bomb?
Replies: 91
Views: 8882

Re: highly compensated employee (HCE) Time bomb?

It's not even a promotion that necessarily puts you over the top. I've been close to the HCE cutoff the past couple years, and my annual ~2-3% normal raises keep edging me closer, and if I get a bonus I'm immediately over which has happened before. My company's awful HCE/401K rules state that HCEs a...
by UpsetRaptor
Wed Oct 09, 2019 9:58 am
Forum: Personal Investments
Topic: Taxable investment account for college?
Replies: 114
Views: 6420

Re: Taxable investment account for college?

For most people who will incur Qualified Educational Expenses in their future, leveraging a 529 has a definitive, tangible, calculate-able tax efficiency over using a taxable account and/or cash-flowing those college expenses. The tradeoff is a 529 fund is designed for educational expenses and thus ...
by UpsetRaptor
Wed Oct 02, 2019 9:26 am
Forum: Investing - Theory, News & General
Topic: If you use Vanguard (Brokerage), why do you stay?
Replies: 58
Views: 6709

Re: If you use Vanguard (Brokerage), why do you stay?

If you're a Vanguard fund holder, your trades were already free at Vanguard, so why does it matter?
by UpsetRaptor
Tue Oct 01, 2019 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA instead of 529 plan
Replies: 54
Views: 2758

Re: Roth IRA instead of 529 plan

OP, what state do you live in? Many states have a state tax deduction or credit for 529 contributions, on top of the tax-free Roth-like benefits for QEE. So if you're in a state where that applies, that's another benefit for a 529 which a Roth IRA does not have.
by UpsetRaptor
Tue Oct 01, 2019 11:55 am
Forum: Personal Investments
Topic: Highly Compensated Employee & 401K limits
Replies: 41
Views: 4385

Re: Highly Compensated Employee & 401K limits

It could be worse OP. My company unexpectedly took a hit by failing the HCE discrimination testing one year. The over-reaction response of our surprised HR department was to simply disallow HCEs from contributing to the company 401(k) plan any year moving forward. HCEs instead get access to a "defer...
by UpsetRaptor
Tue Oct 01, 2019 11:13 am
Forum: Personal Investments
Topic: Highly Compensated Employee & 401K limits
Replies: 41
Views: 4385

Re: Highly Compensated Employee & 401K limits

Reading the OP, the accounting department “asked” the OP to lower his contributions. This is not the same as “must.” Because there is no way of knowing by how much the discrimination test will be failed by a priori (maybe accounting/HR knows, but not the OP), I would be decline the request, continu...
by UpsetRaptor
Tue Oct 01, 2019 10:28 am
Forum: Personal Investments
Topic: Edward Jones investment choices, how to find
Replies: 18
Views: 1462

Re: Edward Jones investment choices, how to find

aristotelian wrote:
Tue Oct 01, 2019 9:17 am
Best thing you can do is focus on moving the account as quickly as possible.
+1
by UpsetRaptor
Fri Sep 27, 2019 2:07 pm
Forum: Investing - Theory, News & General
Topic: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"
Replies: 35
Views: 4460

Re: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"

Basically, from 1/2000 to 8/2019 the total stock market returned 5.9% annually while total bond returned 4.9%. Not a huge difference. However, take a person that started DCA and added $1k per month. If they put it into total stock they would have $631k while someone that did the same in total bond ...
by UpsetRaptor
Mon Sep 23, 2019 5:14 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 27330

Re: VTIAX International fund - should I give up on it?

There's still this wide misconception, even from Jason Zweig, that US outperformance is only a recent thing. The US has outperformed for centuries . Zweig isn’t the one with misconceptions, unfortunately. If that's a swipe at myself for my comment, well good sir one does not go from small, fledglin...
by UpsetRaptor
Mon Sep 23, 2019 4:43 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 27330

Re: VTIAX International fund - should I give up on it?

There's still this wide misconception, even from Jason Zweig, that US outperformance is only a recent thing. The US has outperformed for centuries.
by UpsetRaptor
Wed Sep 18, 2019 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Tax avoidance and estate planning ‘for the rich’?
Replies: 61
Views: 6534

Re: Tax avoidance and estate planning ‘for the rich’?

Warren Buffett no doubt buys his health insurance though one of his companies. By the way, based on Warren’s net worth proportional to my net worth his additional IRMAA payment would be in excess of $18M . The bolded is untrue, right? I thought the max that IRMAA can increase one's tab is a few hun...
by UpsetRaptor
Mon Sep 16, 2019 1:42 pm
Forum: Investing - Theory, News & General
Topic: Oil price going to a $100-- time to change your asset allocation??
Replies: 86
Views: 8668

Re: Oil price going to a $100-- time to change your asset allocation??

Well that fizzled quick. Oil "jumped" 20% initially but fell back down to +10%. Brent's at $68/barrel at the time of this post, WTI at $62, both well within the reasonable range oil has traded since fracking took off. S&P down .33%.

Don't trade the news, case #187,392
by UpsetRaptor
Fri Sep 13, 2019 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Whistleblowing / Going Rogue at Work
Replies: 122
Views: 6459

Re: Whistleblowing / Going Rogue at Work

Totally doesn't seem worth the risk. There's a non-zero chance you're walking straight into a layoff. Not saying that's the case, but even if it's "only" a small chance....
by UpsetRaptor
Wed Sep 11, 2019 10:28 am
Forum: Personal Investments
Topic: How to handle 529 with full scholarship
Replies: 13
Views: 1469

Re: How to handle 529 with full scholarship

If something similar is fortunate enough to happen to me, I will tell my child: "Congratulations on the scholarship, now your 529 funds can be available for any post-undergrad education you may want to consider in the future - grad, phd, med, dental, nursing, pharmacy, law etc - if you want to go on...
by UpsetRaptor
Tue Sep 10, 2019 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11316

Re: Paying off mortgage early - am I thinking about this right?

OP, another consideration in all of this is that a mortgage can be a type of inflation hedge, which is typically lacking in a normal 2 or 3-fund portfolio.
by UpsetRaptor
Sat Sep 07, 2019 4:16 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 27330

Re: VTIAX International fund - should I give up on it?

Lot of posts in this thread parroting the "recency bias" fallacy. 200 years ago the US was not even a top 10 economy, and even in the late 19th century was still behind Britain. It has absolutely outperformed in the past 1-2 centuries.
by UpsetRaptor
Fri Sep 06, 2019 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can it get better than 15 year fixed mortgage at 3%?
Replies: 44
Views: 3632

Re: Can it get better than 15 year fixed mortgage at 3%?

Sure it could. Much of Europe has been in the 1% mortgage range for years. Nobody knows nuthin.
by UpsetRaptor
Tue Sep 03, 2019 7:23 pm
Forum: Investing - Theory, News & General
Topic: Forbes: The Bubble That Is The S&P 500 Index
Replies: 38
Views: 7352

Re: Forbes: The Bubble That Is The S&P 500 Index

Fallacies? I made it just a couple sentences in, when it started talking about indexing creating a vicious self-fulfilling cycle that causes the largest caps to continuously grow unreasonably. I would say “I doubt it could much worse from there” but...
by UpsetRaptor
Wed Aug 28, 2019 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage payoff or Invest?
Replies: 30
Views: 1752

Re: Mortgage payoff or Invest?

1) Pay down mortgage to 80% if not there already 2) Refinance. This gets rid of PMI. Rates are low. 3) Max out any tax-advantaged space available, if you’re not already. 4) If there’s any cash-flow income left over after #3, that can be put towards paying down mortgage principal and/or vehicle loan,...
by UpsetRaptor
Wed Aug 21, 2019 12:12 am
Forum: Personal Finance (Not Investing)
Topic: Selective Colleges
Replies: 339
Views: 19740

Re: Merits of a Selective School

I am not so convinced by this argument. We know that family education and wealth are linked (higher family education = more wealth), we know that gender and wealth are linked ( men tend to make more), we know that certain minorities tend to make less money. By your argument, if a study corrects for...
by UpsetRaptor
Tue Aug 20, 2019 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Selective Colleges
Replies: 339
Views: 19740

Re: Merits of a Selective School

Thanks for the citations, I will take a look at them, I appreciate it. I am not yet convinced that the Kruger/Dale methodology (at least the early papers which used actual admissions) is flawed. If I were designing a study trying to determine the added value of a school, I would probably do exactly...
by UpsetRaptor
Tue Aug 20, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Selective Colleges
Replies: 339
Views: 19740

Re: Merits of a Selective School

What other studies have been done? To be honest, the Kruger/Dale is the most famous one, I haven't heard of the other ones which support the benefits of selective schools. I haven't read the Kruger/Dale papers, though I probably should, but it seems to me that using the studies who were accepted in...
by UpsetRaptor
Mon Aug 19, 2019 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: Selective Colleges
Replies: 339
Views: 19740

Re: Merits of a Selective School

That Kruger/Dale study had a big methodological flaw. They acknowledge that the existing literature shows that more selective schools lead to better returns but then they add in a weird screwy extra control variable for "student ambition" which nerfs the selectivity advantage and thus results in "H...
by UpsetRaptor
Mon Aug 19, 2019 3:34 pm
Forum: Personal Investments
Topic: 529s: One for family vs. One per kid
Replies: 35
Views: 2485

Re: 529s: One for family vs. One per kid

Multiple accounts. Because of the pro-rated formula of gains on account withdrawals, this can also give you some flexibility on that front, managing withdrawals the most tax efficiently.
by UpsetRaptor
Mon Aug 19, 2019 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Selective Colleges
Replies: 339
Views: 19740

Re: Merits of a Selective School

Merits of a Selective School: A common argument is that, for all the hassle and cost of getting into and going to a highly selective private, attending such a school (versus, say, an in-state flagship) doesn't really matter much in the long run. i.e. The kid who got into Harvard, but attended Ohio ...
by UpsetRaptor
Sun Aug 11, 2019 1:58 pm
Forum: Investing - Theory, News & General
Topic: If you think oil prices will drop where would you invest?
Replies: 70
Views: 3987

Re: If you think oil prices will drop where would you invest?

Airplanes aren't electrifying anytime soon. Nor ships. Nor passenger vehicle sales in non-developed countries where the electrical infrastructure is decades away, possibly beyond our lifetimes.

VTSAX.
by UpsetRaptor
Wed Jul 31, 2019 10:48 pm
Forum: Investing - Theory, News & General
Topic: Why Mr. Bogle prefers U.S stocks
Replies: 241
Views: 19232

Re: Why Mr. Bogle prefers U.S stocks

All of the US outperformance is attributable to the period since 2009. This “recency bias” hogwash keeps popping up in these threads, but it’s complete bubkus. 200 years ago the US was not even a top 10 economy, and even in the late 19th century it was still behind Britain. It has absolutely outper...
by UpsetRaptor
Sun Jul 21, 2019 2:34 pm
Forum: Investing - Theory, News & General
Topic: Strength training is like investment
Replies: 46
Views: 3702

Re: Strength training is like investment

I think there is not much of an analogy here. Everyone's investments operate on the same available markets, at least in the publicly accessible space. Strength training does not operate on the same available body, everyone is different, and everyone won't respond the same way to the same inputs. In...
by UpsetRaptor
Sun Jul 21, 2019 2:13 pm
Forum: Investing - Theory, News & General
Topic: Strength training is like investment
Replies: 46
Views: 3702

Re: Strength training is like investment

This is totally true, and I love the analogy OP. On spread. The industry hucksters have brainwashed so many (including apparently some in this thread), but hitting the basic principles: - Work out a few days per week, maybe an hour or so each - Stick to compound movements - Progress weights consiste...
by UpsetRaptor
Tue Jul 16, 2019 10:57 pm
Forum: Personal Investments
Topic: 529 - lump sum or annual?
Replies: 13
Views: 931

Re: 529 - lump sum or annual?

Lump sum if no state tax benefit. Disagree - the benefit of compounding returns for longer outstrips the tax benefits. This discussion is moot to the OP with no state benefit (clear lump sum), but I was skeptical of this so ran some back-of-the-envelope numbers in a quick hypothetical situation. Sce...
by UpsetRaptor
Sat Jul 13, 2019 11:46 pm
Forum: Investing - Theory, News & General
Topic: Who should fund a Roth after age 71?
Replies: 13
Views: 1641

Re: Who should fund a Roth after age 71?

JBTX wrote:
Sat Jul 13, 2019 11:36 pm
Roth can be a good way to pass on assets to heirs, especially if they are left in a trust.
Just curious, what does the trust do that’s better than just having the heir(s) as the Roth IRA beneficiary?
by UpsetRaptor
Wed Jul 10, 2019 8:24 pm
Forum: Personal Investments
Topic: Anyone here investing in Prison REITs?
Replies: 30
Views: 2968

Re: Anyone here investing in Prison REITs?

For the US incarceration/crime rates to revert to the world’s mean, our gun, drug, and income inequality rates would have to revert. I’d love to see it, but...
by UpsetRaptor
Fri Jul 05, 2019 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Big Hospital Bill - Any way to negotiate ?
Replies: 130
Views: 8819

Re: Big Hospital Bill - Anyway to negociate ?

Folks, Recently went to emergency room and now got a 6K hospital bill (after insurance adjustments) meet the deductible Is there any recommendations to negotiate this with the hospital billing dept ? Is it better to not pay and let it go to collections and then negotiate with them ? I could use som...
by UpsetRaptor
Wed Jul 03, 2019 3:17 pm
Forum: Personal Consumer Issues
Topic: We got scammed out of our personal info
Replies: 18
Views: 3436

Re: We got scammed out of our personal info

With all the corporate data breaches, at this point it's probably unrealistic for most people to pretend like their personal info isn't already out there. In that Equifax hack over 145M Americans had their personal info, including SSN, leaked onto the dark web. There's only something like 330M Ameri...
by UpsetRaptor
Tue Jun 18, 2019 5:31 pm
Forum: Investing - Theory, News & General
Topic: Should I abandon the Total International Stock Index Fund for greener pastures?
Replies: 113
Views: 11573

Re: Should I abandon the Total International Stock Index Fund for greener pastures?

I have a question for people on both sides of this issue. What would it take to change your mind? Or to put it scientifically, what would it take to falsify your theory? If the US continues to outperform international, so it's valuation metrics like PE keep going up, you could look at that and say ...
by UpsetRaptor
Wed Jun 12, 2019 9:12 am
Forum: Personal Finance (Not Investing)
Topic: [Proposed changes to 401(k) and IRAs, SECURE Act]
Replies: 89
Views: 4847

Re: "Help Is Almost Here for Retirement Savers"

I'm with LiveSoft. Sounds theoretically good on paper, but beware the vultures. Many teachers have been sold horrendous annuity-type products in their 403b plans.
by UpsetRaptor
Wed Jun 12, 2019 8:56 am
Forum: Personal Investments
Topic: HSA - Save Reciepts When Paying Bills?
Replies: 36
Views: 2514

Re: HSA - Save Reciepts When Paying Bills?

I just take a pic with my phone, email to myself, and then it goes into a Label/Directory in my email called Medical Expenses. Done. In the cloud forever, never fades, easily searchable by date.
by UpsetRaptor
Wed Jun 05, 2019 11:50 am
Forum: Personal Finance (Not Investing)
Topic: 529 for multiple kids: Any advantage to splitting unequally?
Replies: 18
Views: 1418

Re: 529 for multiple kids: Any advantage to splitting unequally?

More options/control when it comes time for withdrawals, given the straight pro-rated formula on gains within each account? I've been considering something similar, setting up a new additional 529 account for each kid for the next batch of funding, and then maybe again in a few years. When the time...