Search found 222 matches

by l1am
Wed Nov 27, 2019 2:37 am
Forum: Personal Investments
Topic: So I had my free phone call from Personal Capital . . .
Replies: 27
Views: 4017

Re: So I had my free phone call from Personal Capital . . .

ohai wrote:
Tue Nov 26, 2019 8:40 pm
I guess they had to obfuscate it a bit more to make it harder for you to replicate their strategy yourself.
:mrgreen:
by l1am
Thu Nov 14, 2019 12:43 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 155
Views: 18264

Re: Debunking Bonds in Taxable

White Coat Investor wrote:
Thu Nov 14, 2019 12:37 am
I think the rule of thumb is still in bonds in tax advantaged most of the time. It's just important to realize there are exceptions to it, particularly at low interest rates.
It depends how broad the exceptions are. I'm going to do some math in a spreadsheet in a few days.
by l1am
Thu Nov 14, 2019 12:27 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 155
Views: 18264

Re: Debunking Bonds in Taxable

Can we finally stop the mantra on here that bonds belong in tax advantaged first? And maybe update the wiki too to not be so biased.
by l1am
Mon Nov 04, 2019 1:03 pm
Forum: Personal Investments
Topic: How much money is really needed in retirement?
Replies: 74
Views: 9269

Re: How much money is really needed in retirement?

Determine your expenses and then use this: http://www.cfiresim.com/
by l1am
Sat Nov 02, 2019 7:48 pm
Forum: Personal Investments
Topic: Reporting HSA dividends in CA
Replies: 9
Views: 617

Re: Reporting HSA dividends in CA

mervinj7 wrote:
Sat Nov 02, 2019 7:02 pm
Have you considered just using US Treasuries to avoid CA taxes?
I have, but I'd rather have an aggressive investment in there. It should still come out ahead even with the dividend state tax.
by l1am
Sat Nov 02, 2019 6:44 pm
Forum: Personal Investments
Topic: Reporting HSA dividends in CA
Replies: 9
Views: 617

Re: Reporting HSA dividends in CA

mervinj7 wrote:
Sat Nov 02, 2019 6:37 pm
What are you planning for this year and next with the HSA?
Same, I'll just report the dividends and interest to CA.
by l1am
Sat Nov 02, 2019 6:13 pm
Forum: Personal Investments
Topic: Reporting HSA dividends in CA
Replies: 9
Views: 617

Re: Reporting HSA dividends in CA

If you had HSA contributions that came off your federal return, those also need to be added back to your income. And yes, you need to total up the dividends and add those as well. So an amended 540 would be in order. Harry Sit (The Finance Buff) has a good article on CA (and NJ) treatment of HSA's ...
by l1am
Sat Nov 02, 2019 2:20 pm
Forum: Personal Investments
Topic: Reporting HSA dividends in CA
Replies: 9
Views: 617

Reporting HSA dividends in CA

Just learned about this and missed it in my 2018 state return :(, probably owe a few dollars in tax.

Should I just manually add up the dividends and report an amendment, 540?
by l1am
Fri Nov 01, 2019 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: PPO or HSA
Replies: 4
Views: 444

Re: PPO or HSA

I keep seeing people compare things like this. You do understand that an HSA is not a medical plan, right? An HSA is a component of a HDHP (high deductible health plan). Money isn't the only comparison. Network is a big part of it, plus cost of each type of benefit. In addition, if the employer con...
by l1am
Fri Nov 01, 2019 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: PPO or HSA
Replies: 4
Views: 444

PPO or HSA

That time of the year again... went with PPO last year but employer HSA contribution has increased: Anthem PPO Premium: $0 (employer covers the $7300) Overall Deductible: $250 (+ $20 co-pay for most services) Out-of-Pocket Limit: $2250 Anthem HSA Premium: $0 (employer covers the $5700) Overall Deduc...
by l1am
Fri Oct 25, 2019 1:08 am
Forum: Personal Investments
Topic: Another inexperienced investor, decent income
Replies: 28
Views: 3198

Re: Another inexperienced investor, decent income

kinaokole wrote:
Thu Oct 24, 2019 10:33 pm
FoolMeOnce wrote:
Thu Oct 24, 2019 8:09 am
"Decent income." :shock:
That was relative to the guy getting paid $850K fresh out of training. TBH, I feel like I make plenty, and probably more than I deserve.
Why even respond to that troll.
by l1am
Wed Oct 09, 2019 12:06 am
Forum: Personal Investments
Topic: Beginner Part 2; $2M liquid to allocate
Replies: 7
Views: 2019

Re: Beginner Part 2; $2M liquid to allocate

I would not consider muni bonds in my taxable account until all my tax advantaged retirement accounts were 100% bonds. It is important to remember that when you are looking at your asset allocation you look at all the accounts combined. I disagree, I only hold (muni) bonds in my taxable. The bonds-...
by l1am
Mon Oct 07, 2019 11:48 pm
Forum: Personal Investments
Topic: Currently invested in 100% stock
Replies: 130
Views: 14147

Re: Currently invested in 100% stock

spdoublebass wrote:
Mon Oct 07, 2019 11:30 pm
If a person holds 10-20% in bonds and rebalances during the next recession, is that better than being 100% straight through?
(Honest question)
No it isn't, not unless you believe you can time the market.
by l1am
Sun Oct 06, 2019 4:19 pm
Forum: Personal Investments
Topic: Learnings/Regrets from last two recessions
Replies: 91
Views: 12560

Re: Learnings/Regrets from last two recessions

Pretty good during the crypto recession 8-) . Went from +600% to -50%, now +10% (changes daily). Lost 6 figures in profit, but didn't sell anything.
by l1am
Wed Oct 02, 2019 11:47 am
Forum: Personal Investments
Topic: I pulled out... How do I get back in?
Replies: 100
Views: 13553

Re: I pulled out... How do I get back in?

I suggest buying back in now with an AA you're actually comfortable with.
by l1am
Sat Sep 28, 2019 9:05 pm
Forum: Personal Investments
Topic: Ideas for truly determining risk tolerance and translate to portfolio allocations?
Replies: 10
Views: 750

Re: Ideas for truly determining risk tolerance and translate to portfolio allocations?

For me, the only thing that did it was literally watching the market correct. Late last year I think there was ~18% dip and I noticed I was uncomfortable with my aggressive AA (90/10). I'm roughly the same age as you. I'm not worried I'll sell, I'm quite disciplined that way. But I was uneasy, and I...
by l1am
Sat Sep 28, 2019 12:52 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 27587

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

I'm curious how VTSAX compares to VTIAX if you exclude technology (FAANG etc.) stocks?
by l1am
Fri Sep 27, 2019 1:23 am
Forum: Personal Investments
Topic: Currently invested in 100% stock
Replies: 130
Views: 14147

Re: Currently invested in 100% stock

If you can maintain the 100% stock portfolio, there are some benefits. Greater simplicity. Greater returns. The greater returns of the 100% stock portfolio are occasionally dismissed on this site. There is some wisdom to that. But for those capable of maintaining the greater risk in the absolute lo...
by l1am
Thu Sep 26, 2019 7:15 pm
Forum: Personal Investments
Topic: Should I buy I-bonds when I'm >30 years from retirement?
Replies: 50
Views: 4601

Re: Should I buy I-bonds when I'm >30 years from retirement?

They are not state tax deferred . They are state/local tax free . They are federal tax deferred. After five (5) years they can be redeemed penalty free. You are making the mistake of comparing them to equities and bonds, when they should properly be compared to cash equivalents (high yield savings ...
by l1am
Wed Sep 25, 2019 11:31 am
Forum: Personal Investments
Topic: Should I buy I-bonds when I'm >30 years from retirement?
Replies: 50
Views: 4601

Re: Should I buy I-bonds when I'm >30 years from retirement?

I really don't see the point of i-bonds. I understand their purpose as a stable investment, but why mess with another investment when you can already adjust your risk via indexed stock/bond AA. They're more stable than any other bond. They're protected from inflation risk, term risk, and reinvestme...
by l1am
Tue Sep 24, 2019 1:35 am
Forum: Personal Investments
Topic: Should I buy I-bonds when I'm >30 years from retirement?
Replies: 50
Views: 4601

Re: Should I buy I-bonds when I'm >30 years from retirement?

I really don't see the point of i-bonds. I understand their purpose as a stable investment, but why mess with another investment when you can already adjust your risk via indexed stock/bond AA.
by l1am
Mon Sep 23, 2019 12:13 am
Forum: Personal Investments
Topic: Currently invested in 100% stock
Replies: 130
Views: 14147

Re: Currently invested in 100% stock

I agree 100% with this. If early retirement is the goal and you're getting close to financial independence, it is not worth it to let the stock market determine when you can retire. This is why I have a safer allocation for my age. If stocks crash 50%, and stay down for a long time, it will be hard...
by l1am
Sun Sep 22, 2019 9:55 pm
Forum: Personal Investments
Topic: Currently invested in 100% stock
Replies: 130
Views: 14147

Re: Currently invested in 100% stock

What if you want to retire younger, at like 50? Will you just postpone retirement if the stock market crashes, and keep working until you hit 25x? I'm the same age as you and pushing for ~70/30 in taxable and ~90/10 in deferred. I'll probably push taxable even heavier towards bonds especially if I'm...
by l1am
Thu Sep 05, 2019 11:40 pm
Forum: Personal Investments
Topic: How do you let go of decisions that turned out to be the wrong ones?
Replies: 63
Views: 5246

Re: How do you let go of decisions that turned out to be the wrong ones?

You should read up on outcome bias. Just because the outcome wasn't favorable, doesn't mean it wasn't a good decision at the time.

https://en.wikipedia.org/wiki/Outcome_bias
by l1am
Sun Sep 01, 2019 8:04 pm
Forum: Personal Investments
Topic: When do bonds need to be in tax exempt accounts?
Replies: 5
Views: 590

Re: When do bonds need to be in tax exempt accounts?

It's all just math. With low interest rates, the argument for bonds in tax exempt is weaker too.

With bonds in tax exempt, you avoid paying the tax on interest, but you hurt your pre-tax growth.

https://www.bogleheads.org/wiki/Tax-eff ... t_strategy
by l1am
Sun Sep 01, 2019 4:57 pm
Forum: Investing - Theory, News & General
Topic: 3 fund people how are you feeling?
Replies: 112
Views: 13432

Re: 3 fund people how are you feeling?

85/15, sometimes feel slightly nervous which indicates I may be overweighted. But I've got 25 years to retirement (or at least until I can withdraw from 401k/roths). They're the default 90/10 for target date funds, so the strategy is probably fine. My taxable is ~80/20 though, and I'll probably cont...
by l1am
Fri Aug 30, 2019 11:33 pm
Forum: Personal Investments
Topic: AA weighted based on expected withdrawal time?
Replies: 7
Views: 454

Re: AA weighted based on expected withdrawal time?

It's not actually necessary to do this. If you want to sell bonds from your taxable account, and you don't have any bonds there, you can sell stocks from your taxable account , then sell an equal amount in bonds to buy stocks in your tax-deferred account, keeping your stock-market exposure. I guess...
by l1am
Fri Aug 30, 2019 11:16 pm
Forum: Personal Investments
Topic: AA weighted based on expected withdrawal time?
Replies: 7
Views: 454

Re: AA weighted based on expected withdrawal time?

Is the taxable account intended for early retirement, or something like a house purchase? The AA should take into account when you plan to start withdrawing and how long the withdrawals will last. Are you maxing 401k and IRA’s? Yes, I'll probably dip in for a downpayment or possibly even to pay off...
by l1am
Fri Aug 30, 2019 11:39 am
Forum: Personal Investments
Topic: AA weighted based on expected withdrawal time?
Replies: 7
Views: 454

AA weighted based on expected withdrawal time?

I'm 35 and currently 90/10 in my 401k/Roth, and 80/20 in my taxable, with desired AA of 75/25. I intend to contribute more towards bonds in my taxable, since I expect/hope to begin withdrawing from it much sooner (maybe within 10-15 years), while tax advantaged accounts will have 25 years (i.e. age ...
by l1am
Wed Aug 28, 2019 12:30 am
Forum: Personal Investments
Topic: Retire with Less Than $1 million?
Replies: 101
Views: 21884

Re: Retire with Less Than $1 million?

jharkin wrote:
Tue Aug 27, 2019 7:08 am
Remember this forum is aself selected group of extreme over-achievers. Dont feel like you have hit the same numbers you see posted.
True, I often feel poor on this forum :wink:
by l1am
Fri Jul 26, 2019 11:21 am
Forum: Personal Investments
Topic: Reaction to market correction
Replies: 19
Views: 2231

Reaction to market correction

My AA is ~85/15, age 35. My desired AA is 70-80% equities (and I think the indecision here is playing a part in below). I only started investing a few years ago so I've never been through a major correction. However, I did notice my own reaction/tendency during the small correction last Christmas. I...
by l1am
Sat Jul 20, 2019 12:05 pm
Forum: Personal Investments
Topic: If you had $1M to invest what would you do?
Replies: 26
Views: 3174

Re: If you had $1M to invest what would you do?

You are basically asking if you can time the market, if you have enough money. :oops: If you have money to invest your answer should be the same wither it's $1 or $1M. That isn't practically true though. Imagine a person could retire happily on the $1M (change it to whatever amount you want) w/2% i...
by l1am
Tue Jul 16, 2019 12:00 am
Forum: Personal Investments
Topic: New to investing at 35, Portfolio check please?
Replies: 15
Views: 2596

Re: New to investing at 35, Portfolio check please?

bluquark wrote:
Sat Jul 13, 2019 7:13 pm
So, I'd say, strictly speaking it is optimal to go with 100% stock, but be aware of this pattern.
Depends what you mean by "optimal", but I wouldn't say this due to the efficient frontier (risk/reward).

Image
by l1am
Sun Jun 23, 2019 7:23 pm
Forum: Personal Investments
Topic: Bonds in a Taxable Account
Replies: 23
Views: 3112

Re: Bonds in a Taxable Account

It is a valid point that the math has to be done, all priorities considered. A drawback of getting capital growth on a tax deferred account is that the gains are taxed at ordinary income tax rates when withdrawn while gains in a taxable account may be taxed at lower rates, not at all, or with the b...
by l1am
Thu Jun 20, 2019 11:53 pm
Forum: Personal Investments
Topic: Bonds in a Taxable Account
Replies: 23
Views: 3112

Re: Bonds in a Taxable Account

Why is this forum so biased against bonds in taxable? It isn't obvious that bonds shouldn't live in taxable.

Let's see the math. It's pretty close when you consider weighting equities in tax deferred (for growth) vs. the tax hit from bonds in taxable.
by l1am
Sun Jun 16, 2019 5:41 pm
Forum: Investing - Theory, News & General
Topic: So much for financial predictions, eh?
Replies: 46
Views: 4957

Re: So much for financial predictions, eh?

Taylor Larimore wrote:
Sun Jun 16, 2019 1:52 pm
CU Later:

Great post. Thank you.
Nobody knows nothing - John Bogle
Solution: Own the market and stay-the-course.

Best wishes.
Taylor
Why is it so difficult to predict, because the market moves without reason, or the reasons are too complex?
by l1am
Thu Jun 13, 2019 1:03 am
Forum: Personal Investments
Topic: High net worth individual seeks portfolio advice
Replies: 84
Views: 11521

Re: High net worth individual seeks portfolio advice

I have recently found the time to devote many hours to research as much as I can on the state of the economy via podcasts and youtube video series like RealVision. Everything I've learned about, from the coming pension/retirement crisis, to the amount of corporate stock buybacks in the last ten yea...
by l1am
Thu Jun 06, 2019 11:43 pm
Forum: Personal Investments
Topic: $10,200 Gross commission Check... What would you do with it?
Replies: 31
Views: 3514

Re: $10,200 Gross commission Check... What would you do with it?

$6324 net.

Pay off #2: $2600
Pay off #4 or put $2900 into a CD for 12mo if you want a free $70 (I'd rather just clear it).
Put remaining $824 into Roth.
by l1am
Sat May 04, 2019 8:20 pm
Forum: Investing - Theory, News & General
Topic: My trend following strategy and experience
Replies: 1021
Views: 82412

Re: My trend following strategy and experience

fallingeggs wrote:
Sat May 04, 2019 12:35 pm
I like to look at the following website monthly and think about what I'd actually do if enough warning signs blinked red: www.econpi.com/
That trend doesn't bode well right now :o
by l1am
Thu May 02, 2019 1:06 am
Forum: Personal Investments
Topic: Learn from my Newbie Mistake as a Recent Bogleheads
Replies: 16
Views: 2648

Re: Learn from my Newbie Mistake as a Recent Bogleheads

If it makes you feel any better I missed out on 6% gains this year because I did the same thing. And I don't really have an excuse because it isn't my first backdoor Roth. IDK, it's just easy to do. You contribute, wait, convert, and just forget to purchase the fund... because for most of my account...
by l1am
Wed May 01, 2019 11:41 pm
Forum: Personal Investments
Topic: Bonds
Replies: 6
Views: 1525

Re: Bonds

There is no free lunch - if you get a higher yield, it's riskier.

Compare VWIUX to VWALX for example, read the descriptions and composition quality.

However, you should compare tax equivalent yields in order to get more return for equal risk.
by l1am
Tue Apr 30, 2019 12:35 am
Forum: Personal Investments
Topic: Why wait to sell individual stock?
Replies: 8
Views: 1067

Re: Why wait to sell individual stock?

Would a sale be affected by the additional 3.8% Net Investment Income Tax? https://www.irs.gov/taxtopics/tc559 Or bump one from the 15% LTCG tax rate to a higher LTCG tax rate? Damn, I had no idea about this - but sure enough I paid NIIT via form 8960 this year. So the CG would also be subject to t...
by l1am
Mon Apr 29, 2019 12:36 am
Forum: Personal Investments
Topic: Why wait to sell individual stock?
Replies: 8
Views: 1067

Re: Why wait to sell individual stock?

It never hurts to diversify your investments, particularly if you have a large holding in a single issue. Depending on your tax situation it can make sense to dispose of it in one transaction instead of spreading it out (over years). There is always the risk that the price of the stock can drop dra...
by l1am
Mon Apr 29, 2019 12:03 am
Forum: Personal Investments
Topic: Why wait to sell individual stock?
Replies: 8
Views: 1067

Why wait to sell individual stock?

So ~10% of my NW is in [large cap tech stock]. All long term gains. For a long time I thought that I'll get hit harder on tax if I sell now vs. in retirement. But looking at the LTCG rate, it'll likely be 15% regardless of when I sell. So I created this spreadsheet to determine final returns based o...
by l1am
Sat Apr 27, 2019 6:09 pm
Forum: Personal Investments
Topic: Made a mistake putting bond funds in taxable account - how to correct mistake?
Replies: 37
Views: 4192

Re: Made a mistake putting bond funds in taxable account - how to correct mistake?

I don't understand, why was it a mistake? Can you show us the equations that run the comparison over the long term; based on after-tax returns for both strategies? Remember, by shifting to bonds in tax deferred, you're sacrificing growth of that tax deferred account. There's a strong mantra on here ...
by l1am
Mon Apr 22, 2019 8:00 pm
Forum: Personal Investments
Topic: Portofolio review
Replies: 21
Views: 2860

Re: Portofolio review

Ignore the mantra and do your own investigation of bonds in taxable. It isn't as clear cut as some make it out to be. Based on your marginal rate, you probably should be in VWIUX instead of VBTLX though.
by l1am
Fri Apr 19, 2019 12:43 am
Forum: Personal Investments
Topic: Asset Allocation - 34 year old worth $1.2M
Replies: 21
Views: 3387

Re: Asset Allocation - 34 year old worth $1.2M

I'm about the same age too, 32. I had about $5k (mostly SPY, and a smattering of individual stocks) in the market back in 2008, which dropped to about $3k. It was a small amount so it didn't impact me much and I didn't sell or anything, but obviously I may have reacted differently had it instead be...
by l1am
Fri Apr 19, 2019 12:16 am
Forum: Personal Investments
Topic: Asset Allocation - 34 year old worth $1.2M
Replies: 21
Views: 3387

Re: Asset Allocation - 34 year old worth $1.2M

Easier said than done. No one that hasn't been through a 50% bear market with at least several years salary invested in the market has any clue what their risk tolerance or appropriate AA is. Almost everyone who got into investing for the first time after 2008 and thinks they are just fine with 80-...
by l1am
Fri Apr 19, 2019 12:07 am
Forum: Personal Investments
Topic: Asset Allocation - 34 year old worth $1.2M
Replies: 21
Views: 3387

Re: Asset Allocation - 34 year old worth $1.2M

Because putting a lot of money into the market all at once and then watching it drop can be sufficiently emotionally painful for people that it can lead to permanent behavioral problems with investing in the future. Someone who invests their $1M windfall into the stock market and then has it declin...
by l1am
Thu Apr 11, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Torment from the IRS
Replies: 16
Views: 2624

Re: Torment from the IRS

I'll keep that in mind, thanks.