Search found 84 matches

by epoxyresin
Mon Apr 08, 2019 4:08 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 12467

Re: The "dividend preference anomaly"

I'm neutral on the whole dividend debate but one question that always stumps me from the “Dividends don't lie” crowd: “What is the value of a company that never returns capital to their shareholder?” Maybe the bias against dividends is mental accounting to justify speculation. I don't really believe that but understand why dividend advocates might. You can always buy the company, and then you can choose to take your profits however you'd like. Or more likely, another larger company can always buy a company that you own stock of, at which point you'll either get cash or stock of the larger company. If you, or anyone, thinks a company is undervalued, they can buy it all up. If a company is worth something, and if you can buy a company by buy...
by epoxyresin
Mon Apr 08, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 12467

Re: The "dividend preference anomaly"

Dialectical Investor wrote: Mon Apr 08, 2019 3:56 pm
epoxyresin wrote: Mon Apr 08, 2019 3:53 pm

My statement is still I think largely correct. You can pretty accurately think of a company's market capitalization as "what should someone be willing to buy this company for", +/- some percent.
Random point of interest: The premium IBM bid for Red Hat? 63%. Hardly small. Perhaps an outlier, but "large" premiums are not unusual.
And that premium probably had little to do with Red Hat's dividend or share buyback policy. Red Hat's shares were worth something because Red Hat was worth something, not because they did or didn't return capital to investors.
by epoxyresin
Mon Apr 08, 2019 3:53 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 12467

Re: The "dividend preference anomaly"

I'm neutral on the whole dividend debate but one question that always stumps me from the “Dividends don't lie” crowd: “What is the value of a company that never returns capital to their shareholder?” Maybe the bias against dividends is mental accounting to justify speculation. I don't really believe that but understand why dividend advocates might. You can always buy the company, and then you can choose to take your profits however you'd like. Or more likely, another larger company can always buy a company that you own stock of, at which point you'll either get cash or stock of the larger company. If you, or anyone, thinks a company is undervalued, they can buy it all up. If a company is worth something, and if you can buy a company by buy...
by epoxyresin
Mon Apr 08, 2019 3:38 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 12467

Re: The "dividend preference anomaly"

I'm neutral on the whole dividend debate but one question that always stumps me from the “Dividends don't lie” crowd: “What is the value of a company that never returns capital to their shareholder?” Maybe the bias against dividends is mental accounting to justify speculation. I don't really believe that but understand why dividend advocates might. You can always buy the company, and then you can choose to take your profits however you'd like. Or more likely, another larger company can always buy a company that you own stock of, at which point you'll either get cash or stock of the larger company. If you, or anyone, thinks a company is undervalued, they can buy it all up. If a company is worth something, and if you can buy a company by buy...
by epoxyresin
Mon Apr 08, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 12467

Re: The "dividend preference anomaly"

We're missing the point here. Certain companies should pay dividends, others should not. Problem is when a company that should pay dividends does not, like Enron in 1990s. Early Microsoft didn't need to pay a dividend as it was better to plow revenue into more growth. Mature Microsoft, with far fewer growth avenues, should pay its shareholders a dividend. If it doesn't pay a dividend, it will squander the money on what Peter Lynch might call diworsification. Lyft will obviously not be paying a dividend. In other words, if company management can't use revenue to grow business aggressively, give it back to shareholders. We can find better uses for the $. +1 Another interesting question is: why is a stock that pays no dividends worth anything...
by epoxyresin
Thu Mar 28, 2019 12:39 pm
Forum: Personal Consumer Issues
Topic: Tattoos and Bogleheads
Replies: 180
Views: 15482

Re: Tattoos and Bogleheads

essbeer wrote: Wed Mar 27, 2019 12:49 pm I think in upper to upper-middle class neighborhoods it's still considered some sort of signal of either "low" birth or reckless youth. I live around lots of under 40 doctors and lawyers and literally zero have visible tattoos. I don't think a visible tattoo would be unacceptable, quite the contrary I'd bet it would generate excitement and lots of compliments. But it would also silently scream "not one of us."
But statistically probably at least some of them do have tattoos that are covered up by ordinary clothes (and I presume that the majority of tattoos are indeed such). Seems a little hard to extrapolate when in most social situations you won't see most tattoos.
by epoxyresin
Thu Mar 28, 2019 11:50 am
Forum: Personal Consumer Issues
Topic: Why are used cars now so expensive?
Replies: 63
Views: 7322

Re: Why are used cars now so expensive?

ohai wrote: Thu Mar 28, 2019 11:41 am I did not really check data on anything I said. I intended to present just possible reasons. It's possible that MSRP has not actually been increasing.

With that being said, what really matters would be MSRP relative to wages over time, but again, I don't actually know what this relationship has been over the past 10 years.
Wages have beat inflation over the last 40 years, though not a ton (and of course wage growth has not been felt equally across society). But if MSRPs are growing more slowly than inflation, shouldn't wages be beating them even more?
by epoxyresin
Thu Mar 28, 2019 11:44 am
Forum: Personal Consumer Issues
Topic: Why are used cars now so expensive?
Replies: 63
Views: 7322

Re: Why are used cars now so expensive?

MSRP really hasn't gone up in some cases the "real" price of cars has gone down because of inflation. Dealers in your area may be stocking more expensive cars though. In our area most dealers are stocking Limited edition cars vs base models because luxury features are high profit. Ford is focusing on luxury features because it is very high markup, other manufacturers are doing the same thing. In the fall of 1984, we purchased a new 1985 Dodge Caravan - and paid over the MSRP. That was over 34 years ago. That MSRP for the model we bought (LE) was about $15,000 - $16,000. And with inflation, that $16 k is about $37k in today's dollars MSRP on an entry 2019 Dodge Caravan is $27 k, and for that you'll get a safer car that will last y...
by epoxyresin
Thu Mar 28, 2019 11:28 am
Forum: Personal Consumer Issues
Topic: Why are used cars now so expensive?
Replies: 63
Views: 7322

Re: Why are used cars now so expensive?

MSRP really hasn't gone up in some cases the "real" price of cars has gone down because of inflation. Dealers in your area may be stocking more expensive cars though. In our area most dealers are stocking Limited edition cars vs base models because luxury features are high profit. Ford is focusing on luxury features because it is very high markup, other manufacturers are doing the same thing. In the fall of 1984, we purchased a new 1985 Dodge Caravan - and paid over the MSRP. That was over 34 years ago. That MSRP for the model we bought (LE) was about $15,000 - $16,000. And with inflation, that $16 k is about $37k in today's dollars MSRP on an entry 2019 Dodge Caravan is $27 k, and for that you'll get a safer car that will last y...
by epoxyresin
Thu Feb 21, 2019 1:09 pm
Forum: Personal Consumer Issues
Topic: Emissions test and register Car out of state
Replies: 8
Views: 2952

Re: Emissions test and register Car out of state

Wisconsin also has an exemption form that you can fill out if your vehicle is not in the area.

http://www.wisconsinvip.org/wivippublic ... mv2472.pdf
by epoxyresin
Tue Feb 19, 2019 6:14 pm
Forum: US Chapters
Topic: How many bogleheads do you know in real life?
Replies: 165
Views: 20993

Re: How many bogleheads do you know in real life?

Most of my contemporaries and friends are Bogleheads (though some would not call themselves that) - they live below their means and invest in low cost index funds only. To me, that is 80% of what being a Boglehead is. It is generational though. My contemporaries are older Millenials (aged 28-35), so they started working/early in work career when the 2008 crisis hit and they never had a chance to make bad decisions overbuying a house, a car or (gasp) whole life insurance. It may be generational. My contemporaries are 45-55 and I see so many doing things like taking out loans, second mortages, and tapping retirement savings to pay for college tuition, that sort of thing. Others who own money-pit vacation rentals that suck up all their time a...
by epoxyresin
Tue Feb 19, 2019 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need a will/trust/etc?
Replies: 59
Views: 5479

Re: Do we need a will/trust/etc?

Interesting how you are so sure... are you omniscient? By definition, people who die unexpectedly were not generally anticipating their imminent death. Car accidents, strokes, etc. do happen (my BIL died of a massive stroke while kayaking a couple of years ago -- fit, late '40s, non smoker, needless to say completely unexpected). Spending a few $$ and some time planning is a good idea -- especially as the OP has two minor children and not insubstantial assets. pdavi21, do you also go without insurance because you "know" your house will never burn, flood, etc. ? Growing up, a good friend's parents were killed in a car accident when he was very young. His parents' will saved him and his brother from being raised by his dysfunctiona...
by epoxyresin
Wed Feb 13, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Can I file jointly with my girlfriend
Replies: 32
Views: 4932

Re: Can I file jointly with my girlfriend

Rupert wrote: Wed Feb 13, 2019 10:58 am
OP would experience a marriage penalty if he/she married his/her girlfriend. They would lose the HOH status and $6000 of standard deduction.
It is very likely (though not guaranteed) that the difference in their incomes is great enough that it will more than make up for the smaller combined standard deduction
by epoxyresin
Wed Feb 13, 2019 11:01 am
Forum: Personal Consumer Issues
Topic: Employer Arbitration vs. Court
Replies: 14
Views: 1550

Re: Employer Arbitration vs. Court

Continued employment is often,but not always, considered to be acceptable consideration for a new contract that an employer would like an employee to sign. The case law around this is usually for non-competes rather than arbitration agreements, so you're mileage may vary.

You could talk to an employment lawyer to see what your options are, though I suspect that if you aren't willing to follow through with an expensive and uncertain lawsuit after getting fired for not signing it, your options might be limited.
by epoxyresin
Wed Feb 13, 2019 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Can I file jointly with my girlfriend
Replies: 32
Views: 4932

Re: Can I file jointly with my girlfriend

barnaclebob wrote: Wed Feb 13, 2019 10:29 am
Patrick584 wrote: Tue Feb 12, 2019 7:18 pm Yes, if you get married within the tax year. Great tax shelter.
How so? Usually marriage is a net increase in tax burden due to the marriage penalty.
The marriage penalty has always only applied to a relatively small proportion of the population, and with the new tax laws applies to an even smaller portion of the population.
by epoxyresin
Tue Feb 12, 2019 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Insuring a car that you don’t drive
Replies: 24
Views: 2510

Re: Insuring a car that you don’t drive

Isn't that really easy? Am I missing something? You take out car insurance with the limits and deductible that you feel comfortable with, but you tell the insurance company that your parents are the primary drivers, and you'd use their address for where the car is. And then you'd pay the premiums, to ensure that they're actually getting paid and the insurance doesn't lapse?

I think insurance companies will do that without any problem, but I guess I don't have direct experience with it.
by epoxyresin
Tue Feb 12, 2019 1:07 pm
Forum: Personal Consumer Issues
Topic: 3 year old tires installed (Sam's club). Should I do anything about this?
Replies: 104
Views: 13203

Re: 3 year old tires installed (Sam's club). Should I do anything about this?

greg24 wrote: Tue Feb 12, 2019 10:21 am You should get on twitter and tweet all this information at the corporate Walmart account.

I doubt they want the world seeing they sell 3 year old tires and refuse to replace them.
I think you overestimate how much most people care about the age of their tires.
by epoxyresin
Fri Feb 08, 2019 7:47 pm
Forum: Personal Consumer Issues
Topic: My 2017 CRV is a victim of the dreaded oil gas-dilution issue
Replies: 1223
Views: 232595

Re: My 2017 CRV is a victim of the dreaded oil gas-dilution issue

I'm not the authority, but my experience with Hondas is similar to yours in many respects. I traded a 2002 CRV with about 200K on the 2017 CRV and it was still in excellent running condition. I also planned on driving this one for 15 years. Here's what I'm doing now. I check my oil level almost daily. I take photos of the oil level on the dipstick to document increasing fluid level above the full mark. I change my oil at least every 3000 miles and spend $35 a pop to send an oil sample into Oil Analyzers each time to monitor fuel dilution and engine wear indications. I hope to drive this nuisance for awhile longer while I shop for a replacement such as the 2019 RAV4. I will be getting rid of it well before the 5-year 60K engine and powertra...
by epoxyresin
Thu Feb 07, 2019 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Need Help - DW Laid Off and Company wants her back now
Replies: 109
Views: 13762

Re: Need Help - DW Laid Off and Company wants her back now

I think some people are a bit overestimating how strong her position actually is. They said that they were going to give 4 months severance, but it doesn't sound like she was ever actually removed as an employee, so I think it's unlikely that if she did decide to leave now she would actually get that amount of money.
by epoxyresin
Mon Feb 04, 2019 6:41 pm
Forum: Personal Consumer Issues
Topic: Mr. Money Mustache donates $100k to charity, writes about effective altruism
Replies: 112
Views: 22961

Re: Mr. Money Mustache donates $100k to charity, writes about effective altruism

I find some of the responses here staggering. The lord knows I do not relinquish control of my money easily, but it amazes me when people denigrate people who do.

I'm never going to look down on someone who gives, whether altruistically or because they expect some social credit for doing so, and I think doing it publicly can be a good way to encourage others to do the same.
by epoxyresin
Fri Jan 25, 2019 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.
Replies: 510
Views: 79095

Re: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.

I called my family member when I saw this thread to ask what lessons could be learned from this tragedy. The problems were (1) no one knew exactly what the will said or where it was; (2) no one knew where the aunt kept her investments or what bank she used, which impeded doing research; (3) the only person who knew these things was the niece who apparently was smart enough to figure out how to help herself to everything before and after the aunt's death; (4) there was no one physically near enough to the aunt to put eyes on the situation in case the niece was pressuring the aunt to do things; (5) the long delay between the aunt's passing and when anyone else knew of it allowed the niece a huge head start in getting everything done before t...
by epoxyresin
Tue Jan 22, 2019 9:45 am
Forum: Personal Consumer Issues
Topic: What is a Boglehead funeral/burial?
Replies: 164
Views: 13611

Re: What is a Boglehead funeral/burial?

daytona084 wrote: Sat Jan 19, 2019 2:42 pm It sure seems like the underlying theme in almost all of the posts so far is "Boglehead Funeral = Cheap". I beg to differ. I would say the Boglehead, having invested wisely and amassed a large nest egg, can have whatever funeral he or she wants, without regard to cost.
Yeah, and you can't take it with you. I get the desire to pass on money to your progeny or good cause of your choice I guess, but a funeral will literally be the last option to spend your money.

I want a marching band to play "when the saints go marching in".
by epoxyresin
Fri Jan 18, 2019 1:13 pm
Forum: Personal Consumer Issues
Topic: NJ EZ-Pass Why a monthly service fee?
Replies: 70
Views: 13892

Re: NJ EZ-Pass Why a monthly service fee?

criticalmass wrote: Fri Jan 18, 2019 1:01 pm
Hockey10 wrote: Fri Jan 18, 2019 12:58 pm Because everything in NJ is more expensive.....
Not as expensive as elsewhere.... Illinois charges $1/month per transponder. At least NJ only charges $1/month per account, and you can have multiple transponders on an account. Maryland charges $1.50/month per account, if the account has a non-MD address.
Illinois doesn't charge a monthly cost for their transponders. Indiana does I think.
by epoxyresin
Tue Jan 15, 2019 10:54 am
Forum: Personal Consumer Issues
Topic: Engagement Ring (Affordable)
Replies: 136
Views: 12383

Re: Engagement Ring (Affordable)

The money spent on these pieces of carbon are pointless and a financial waste. You can now get man made synthetic diamonds that are so close to the same quality as regular diamonds, jewelers cannot tell the difference. Take the rest and save for your kids child education or emergency savings. But synthetic diamonds aren't that much cheaper than natural ones. It's not like saphire or ruby where they've been growing huge flawless crystals of them from a melt since the 60s to use in lasers.. As someone previously mentioned, they're a little bit cheaper when they're less than 1 carat and especially the colored ones, but you won't be saving money the same way you would be if you go CZ or SiC. Moissanite is more expensive than CZ but it is as ha...
by epoxyresin
Wed Jan 09, 2019 11:01 am
Forum: Personal Consumer Issues
Topic: Engagement Ring (Affordable)
Replies: 136
Views: 12383

Re: Engagement Ring (Affordable)

Greatness wrote: Fri Jan 04, 2019 12:24 pm The money spent on these pieces of carbon are pointless and a financial waste. You can now get man made synthetic diamonds that are so close to the same quality as regular diamonds, jewelers cannot tell the difference. Take the rest and save for your kids child education or emergency savings.
But synthetic diamonds aren't that much cheaper than natural ones. It's not like saphire or ruby where they've been growing huge flawless crystals of them from a melt since the 60s to use in lasers.. As someone previously mentioned, they're a little bit cheaper when they're less than 1 carat and especially the colored ones, but you won't be saving money the same way you would be if you go CZ or SiC.
by epoxyresin
Tue Jan 08, 2019 12:05 pm
Forum: Personal Consumer Issues
Topic: Recommendations for a 9mm handgun
Replies: 171
Views: 18097

Re: Recommendations for a 9mm handgun

If you've never shot anything before, start with a long gun. Guns are considerably louder, and have more recoil, then the movies would have you believe. Long guns are significantly easier to control than a handgun: you'll be more likely to hit what you're trying to. Once you're comfortable with that and want to look for handguns, you should start trying out handguns by renting them at a range. As others have said, better to try several out before you buy one. Contrary to many people's expectations, larger handguns will be easier to shoot (this is obviously at odds with the goals if you want to carry it concealed).
by epoxyresin
Wed Dec 19, 2018 6:58 pm
Forum: Personal Consumer Issues
Topic: Math: How much would you spend to repair this car?
Replies: 53
Views: 3122

Re: Math: How much would you spend to repair this car?

LiterallyIronic wrote: Wed Dec 19, 2018 8:56 am So, everything is fine except a headlight is broken and the check engine light is on? And people are saying that's "totaled"? Get the headlight fixed. Won't be expensive. Take it to AutoZone and they'll tell you why the check engine light is on. Then you just make a mental note of the reason. Then you continue to drive the car like normal. You won't be out very much money and you'll be back on the road in no time.
Yeah, this. It's a 12 year old car, why the hell would you fix the hood? If you're OK driving with a big dent in it, keep it, if you're not, get a new one.
by epoxyresin
Wed Dec 12, 2018 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Received IRS letter - be proactive or sit back?
Replies: 25
Views: 3468

Re: Received IRS letter - be proactive or sit back?

This is a helpful post from an IRS employee about what happens when these notices get sent out

The IRS says very explicitly they don't want you to contact them if you are eligible to claim the kids as dependents. What's the point of contacting them right now? If neither of you modifies your returns, one or both of your returns might be audited, so it's probably good to get the information ready to prove that you're eligible to claim them.
by epoxyresin
Tue Dec 04, 2018 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Wife being sued after wreck
Replies: 21
Views: 5075

Re: Wife being sued after wreck

Frankly, it kind of seemed like a racket, my lawyer, the plaintiff's lawyer and the retired judge who was our arbitrator all knew each other well and were chit-chatting during the breaks. You would have preferred having the case go to (a publicly available) trial, and possibly be picked up by a reporter? I mean, that would have been fine in my case. I preferred the arbitration because it was faster than a trial would have been, and obviously I am glad there was a high/low agreement in place so that my insurance limits weren't exceeded. I wasn't commenting so much on the arbitration in particular, just the whole process in general. My lawyer and opposing council were chit-chatting during the deposition too. Which like, rationally is fine. I...
by epoxyresin
Tue Dec 04, 2018 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Wife being sued after wreck
Replies: 21
Views: 5075

Re: Wife being sued after wreck

I was sued after a wreck a few years ago. It took an annoying amount of time to finally be resolved (they were trying to settle with my insurance company for almost 2 years, and only sued when the statute of limitations was almost up). I had Geico, they assigned a lawyer who was in contact with me and the plaintiff's lawyers. It's possible if you get a judgement more than your limits that you could be on the hook, though my lawyer said that had never happened in their Chicago offices. My lawyer was very helpful about talking about the process and what to expect. He is paid by the insurance company, though ethically he's supposed to be representing me and not them. I figured my interests mostly aligned most of the time with the insurance com...
by epoxyresin
Mon Dec 03, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 176
Views: 10675

Re: Gift tax question

My in-laws have decided to gift 60k before January 1st and 60k after (just because they don't really want to fill out any gift tax forms, and this seems to be perfectly legal, correct?) I’m a Cpa. And if you were my client, we would still do a gift tax return. Even though you’re not using any lifetime exclusion, any gift between $15k and $30k must still be reported on a 709. (Just one 709 is fine, since you’re splitting gifts.) Before you disagree with me, read the 709 instructions. Page 6. Middle column, toward the bottom. https://www.irs.gov/pub/irs-dft/i709--dft.pdf And what's the penalty for failing to file a 709? It's five percent per month of the taxes due, up to 25% of the taxes due. If they can prove that you failed to file the for...
by epoxyresin
Mon Dec 03, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 176
Views: 10675

Re: Gift tax question

My in-laws have decided to gift 60k before January 1st and 60k after (just because they don't really want to fill out any gift tax forms, and this seems to be perfectly legal, correct?) I’m a Cpa. And if you were my client, we would still do a gift tax return. Even though you’re not using any lifetime exclusion, any gift between $15k and $30k must still be reported on a 709. (Just one 709 is fine, since you’re splitting gifts.) Before you disagree with me, read the 709 instructions. Page 6. Middle column, toward the bottom. https://www.irs.gov/pub/irs-dft/i709--dft.pdf And what's the penalty for failing to file a 709? It's five percent per month of the taxes due, up to 25% of the taxes due. If they can prove that you failed to file the for...
by epoxyresin
Thu Nov 29, 2018 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 176
Views: 10675

Re: Gift tax question

Yes, it is considered evasion even if no tax is due. Every time I give my girlfriend a credit card to go shopping I'm not filling out a form. :annoyed You should be annoyed; at yourself for being so ridiculous. Do you file a tax return every pay check??? You fill out a Form 709 once per year at tax time if and only if you give > the annual exclusion (2018 = $15K) per person. There are gift tax laws and regulations. What is everyone's problem with following such simple rules. Gift up to the limit, gift over the limit and report it, but get on with your life. With $11.18M in the gift/estate tax lifetime exclusion, not even one out of a thousand people will ever pay a dime in taxes. This kind of brings up another matter: Just how hard is it t...
by epoxyresin
Fri Oct 12, 2018 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Can a US citizen be a resident of NO state?
Replies: 61
Views: 29541

Re: Can a US citizen be a resident of NO state?

dm200 wrote: Fri Oct 12, 2018 9:39 am
mptfan wrote: Fri Oct 12, 2018 7:49 am
Not true. U.S. citizens who reside in Puerto Rico and Guam and the U.S. Virgin Islands and the Northern Mariana Islands are U.S. citizens who are not residents of at least one state.
Yes - and folks born there are U.S. citizens as well.

I would also add American Samoa to this list.
Folks born in American Samoa are not (necessarily) citizens, though they are US nationals (and the only people for whom that remains a distinction).

And if you're a resident of of the Northern Mariana Islands, Puerto Rico, American Samoa, or the US Virgin Islands, you don't pay federal income taxes on money earned in the territory.
by epoxyresin
Mon Oct 08, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 198
Views: 15750

Re: Alan Roth doesn't like single premium annuities

When I was shopping for SPIAs recently (for one of my parents), the only company I could find that sells SPIAs with inflation riders was Principal. Is anyone in this forum aware of others? I think it's easier to find ones with a fixed percentage annual increase (like 2%). Fidelity offers them. I can see how that might be helpful from a psychological point of view (i.e. most people are likely to spend what they get, so you give them less in the early years and more in the later years so that hopefully it's about the same in real dollars), but I don't really think you're getting any inflation protection. It's exactly the same bet as a constant payout annuity: you do well if inflation remains low (and you live a long high), if it runs high fo...
by epoxyresin
Wed Oct 03, 2018 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: With random sources of income, how do you know what you have to pay taxes on?
Replies: 12
Views: 1044

Re: With random sources of income, how do you know what you have to pay taxes on?

trueblueky wrote: Wed Oct 03, 2018 3:10 pm
StraightEdge wrote: Wed Oct 03, 2018 2:13 pm
2.) Kroger, Walmart, etc. surveys on their receipts that says you can enter a contest to win like $3,000 cash/check or gift cards.
They should send you a 1099. You are required to report it even if they don't.

Isn't that like a lottery/sweepstakes? Which is form W-2G?
by epoxyresin
Wed Sep 26, 2018 12:36 pm
Forum: Investing - Theory, News & General
Topic: Is high inflation a good thing while working?
Replies: 40
Views: 3121

Re: Is high inflation a good thing while working?

Valuethinker wrote: Wed Sep 26, 2018 12:05 pm I think you explained to me that The Wizard of Oz is actually a satire of same? WJB is the Wizard of Oz?
If you subscribe to the theory, Bryan is the cowardly lion (opposed the Spanish-American War). The wizard is the politicians in power (promise much and deliver little, hard to know their true intentions). Casting some doubt on the theory that the Wizard of Oz was an allegory is the fact that Baum was not, in fact, a supporter of Bryan or bimetallism, although it can probably be argued that if it is read as an allegory it is not an unqualified support for populism.
by epoxyresin
Wed Sep 26, 2018 11:30 am
Forum: Investing - Theory, News & General
Topic: Is high inflation a good thing while working?
Replies: 40
Views: 3121

Re: Is high inflation a good thing while working?

Inflation is a less bad thing if you have inflation-adjusted income. I'm not sure if it's a good thing. The Fed aims for steady predictable inflation of ~2%. That is generally thought to be a good thing. Is it that moderate inflation is thought to be good in itself, or that it is a reflection of a strong growing economy? Deflation is considered bad by itself (discourages spending), so having a positive inflation is seen as good because it avoids that. Very, very high inflation is seen as bad by itself (how high that is debatable). Unexpected changes in inflation are seen as bad by themselves because uncertainty can discourage lending and investing. I'm not sure that anyone really considers a relatively constant, small amount of inflation a...
by epoxyresin
Wed Sep 19, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Single Family Homes in Chicago?
Replies: 33
Views: 4796

Re: Single Family Homes in Chicago?

:happy I'm of the mind that having reasonable commutes is worth a lot... Does such a thing exist in Chicago if you have to get downtown from the suburbs? :shock: Getting to downtown from the suburbs is a lot easier than getting to other parts of the city, where you'd likely need to get downtown first, and then grab a bus or another train to wherever you actually want to be. I guess what constitutes a "reasonable" commute is open to interpretation, but I'm pretty willing to spend longer on a train, especially if I don't have to make any transfers, than I am sitting in traffic, even if the car ride would be quite a bit faster. I guess I like to be able to get a seat on a train, which certain locations along the blue and red lines w...
by epoxyresin
Fri Sep 14, 2018 5:53 pm
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Still Recommended?
Replies: 152
Views: 15575

Re: Age in Bonds - Still Recommended?

Like many things that Bogleheads love to argue about, your exact amount of bonds won't prevent you from achieving your goals as long as you have an adequate savings rate and don't panic sell during a recession. "Age in bonds" is a rule of thumb that will work fine for most people. "Age in bonds minus 10" and "Age in bonds minus 20" also will work fine for most people. "50 percent bonds and 50 percent stocks" will also work fine for most people, as well "1/3 bonds, 1/3 domestic stocks and 1/3 international stocks". What I'm really trying to say is that your exact asset allocation isn't what determines whether you have to eat cat food in your old age. What does matter? Savings rate, as previou...
by epoxyresin
Fri Sep 14, 2018 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Job burnout - Keep grinding or change?
Replies: 78
Views: 13617

Re: Job burnout - Keep grinding or change?

Now's probably the best the job environment will ever get (with some caveats that we don't know your field or where you live, etc.), so if you do want to switch it's probably a fine time to do it. It's hard to give concrete advice without more information. How much do you have saved/what's your saving rate/how much are you willing to downsize/what's your current job and what types of jobs would you look at moving to would I'm sure elicit more specific responses from people who have been in more similar situations; right now we're all more-or-less guessing. Would you (and your family) be OK moving to another part of the country? A change of scenery can do a lot for some people. Can you get something part time so you have more time with kids?...
by epoxyresin
Fri Sep 14, 2018 5:18 pm
Forum: Personal Consumer Issues
Topic: Can I buy a Tesla?
Replies: 140
Views: 14356

Re: Can I buy a Tesla?

Congratulations. I hope your new car serves you well.

What's the phrase that gets trotted out? "You can have anything that you want, but you can't have everything that you want". Lots of people, even those making much less than you, can afford to buy a Tesla. The question is what are they (and you) forgoing by doing so (luckily you'll have to forgo less than most).
by epoxyresin
Fri Sep 14, 2018 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Any issue with overpaying taxes?
Replies: 23
Views: 2024

Re: Any issue with overpaying taxes?

I've done it when I sold some old stocks that I'd been given as a gift a long time ago and didn't have good records for. I didn't figure there was any negatives (other than slightly higher taxes), but if anyone has any I'd like to hear them. Hasn't hurt me yet, but I guess anecdotes are not data.
by epoxyresin
Fri Sep 14, 2018 4:22 pm
Forum: Personal Consumer Issues
Topic: [Wearing] Shorts in Egypt
Replies: 71
Views: 7710

Re: Shorts in Egypt

I've googled this and found a variety of opinions ranging from "yes; shorts are okay for tourists doing touristy things" to "no; shorts will make all the locals stare at you and think you're a clown". Those aren't really mutually exclusive statements. They could both be true, especially in milder forms (i.e. "touristy things" covers a fairly wide range of circumstances where different attire might be considered appropriate, from staying on a cruise ship, to touring outdoor archaeological sites to visiting museums to visiting historic parts of modern cities, to visiting mosques and churches, and that "locals stare at you and think you're a clown" might range from verbally or even physically harass you...
by epoxyresin
Fri Sep 14, 2018 2:42 pm
Forum: Personal Consumer Issues
Topic: Selling Internet domain name based on family last name.
Replies: 36
Views: 6340

Re: Selling Internet domain name based on family last name.

OP back: So, I spent the last week going back and forth with the representative from GoDaddy. I put out an initial ask in the low $4000's, with the intention to have to come down a bit. We settled a little lower than that. After the 20% commissions, I will net in the low $3000's. Now, I just have to give the final OK. I'm of two minds. On the one hand, I think I may have gotten incredibly lucky. I wasn't using this domain name and had been thinking about just dropping the registration. Enough domains are still available, should I want something personalized (for example: MyFirstNameMyLastName.com MyLastName.us still available) On the other hand, I'm starting to have second thoughts and wonder if the domain is really worth more than I asked...
by epoxyresin
Fri Sep 14, 2018 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Single Family Homes in Chicago?
Replies: 33
Views: 4796

Re: Single Family Homes in Chicago?

FoolMeOnce wrote: Fri Sep 14, 2018 11:30 am Old Irving is very family friendly and tends to have larger properties with good yards, but is not very walkable. Will your work be downtown? In the burbs? Old Irving is convenient to the freeway and the blue line.
Blue line on the O'Hare branch gets exceptionally busy at rush hour (as in, might have to wait several trains that are packed full before finding one with a spot you can squeeze into), and they won't be able to add more trains for a couple more years.

https://www.transitchicago.com/betterblueline/

I'm of the mind that having reasonable commutes is worth a lot, so it'd help to know where you and your wife would be working.
by epoxyresin
Thu Sep 06, 2018 5:56 pm
Forum: Personal Consumer Issues
Topic: How to "waste" money on groceries?
Replies: 109
Views: 11520

Re: How to "waste" money on groceries?

We make sure our beef is grass-fed. I can taste the difference - even for burgers. (whenever we have a cookout everyone asks how the burgers taste so good thinking I am adding something - the secret is grass-fed). I have quite the opposite experience. Grass fed beef tends to be leaner, drier and chewier compared to corn fed beef which has more marbling and a richer flavor. When I have city folk over used to eating grass fed steaks, they marvel over our corn fed beef steaks and how tender and flavorful they are. It's a fad, though I do think it is better for the animal. My family is in the cow rearing business. Over the last 5'ish years we've starting certifying as 100% grass fed for all of the head that we sell. For all of the animals that...
by epoxyresin
Wed Sep 05, 2018 3:45 pm
Forum: Personal Consumer Issues
Topic: Ford Fusion under Safety Recall for 2 Years - Ford Can't Fix - help
Replies: 87
Views: 15810

Re: Ford Fusion under Safety Recall for 2 Years - Ford Can't Fix - help

tesuzuki2002 wrote: Thu Aug 09, 2018 4:32 pm
Just remove the airbag? Safer to drive that way..
Is it really? I know airbags are kind of marginal on the cost-benefit analysis anyways, but the number of people actually killed by the defective ones is tiny, especially when compared to how many were defective. I haven't done the math, but I bet it's still safer to have the maybe defective one than to not have any (though I bet the actual differences in mortality are tiny, and swamped by more mundane driving practices that no one gives a rat's ass about)
by epoxyresin
Wed Sep 05, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Google's secret deal with MasterCard to buy all your CC transactions
Replies: 25
Views: 14007

Re: Google's secret deal with MasterCard to buy all your CC transactions

I'm presuming the publication on those media sites was also a legal activity? It your activity was interesting or potentially controversial, well, that's pretty much what media sites do. I did not pursue any detailed legal analysis but it appears that the data collector was not a journalist in a traditional sense, but they provided the photo to a "journalist" so the idea that the photographer was protected is unclear. This is a very muddy area of 1st amendment law if you start looking in any detail. Actually the definition of the Press and Journalist are pretty undefined these days and I think that is overall a very good thing, BTW. Just about anyone should be protected under 1st amendment protections for the press when engaged i...
by epoxyresin
Thu Aug 16, 2018 10:04 am
Forum: Personal Consumer Issues
Topic: Sign - Speed checked by Radar
Replies: 41
Views: 7048

Re: Sign - Speed checked by Radar

alfaspider wrote: Thu Aug 16, 2018 9:56 am
Ketawa wrote: Thu Aug 16, 2018 9:53 am

I've always been skeptical of the "speed checked by aircraft" signs, but apparently some departments actually are spending gobs of money on aircraft to issue speeding tickets based on other posts in the thread.
I usually see those signs in the middle of nowhere. My guess is they are mostly a deterrent to people thinking, "hey, I'm in the middle of nowhere, I can really open it up because nobody's around."
As a kid, I always imagined a missile coming out of nowhere to teach the scofflaws a lesson. To date, I have yet to see it happen, but somewhere in my body I still hold out hope.