Search found 70 matches

by jwhitaker
Fri Jan 31, 2020 7:31 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 14922

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

Pfau wrote a paper like this in 2011 saying that 3% was the new 4%. Not long after, he wrote another paper stating that 2% was the new 4%. http://www.fa-mag.com/userfiles/stories/whitepapers/2015/WealthVest_Sept_2015_Whitepaper/12040-Pfau-Sustainable-Withdrawal-Rates-Whitepaper-.pdf That last one w...
by jwhitaker
Fri Jan 10, 2020 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Retiring with under $1M
Replies: 44
Views: 5869

Re: Retiring with under $1M

I know it has been said but something seemed off with your mortgage. I think the disconnect for me, maybe others to, is that 10 years was the original term, not the time remaining now. It makes absolutely no sense to have to pay 3k per month for 10 years to pay off 40k. You probably only have a few ...
by jwhitaker
Sat Nov 30, 2019 10:35 am
Forum: Personal Finance (Not Investing)
Topic: my annual financial checkup: what a kooky year
Replies: 12
Views: 1910

Re: my annual financial checkup: what a kooky year

Ugh, bogleheads, can you stop being so bogleheady? I just mean income in the corporate term of change in net worth. Call it something other than income if you want. I've posted this type of stuff before and by the time you guys were done I was broke and living out of my car. I don't even dare mentio...
by jwhitaker
Sat Nov 30, 2019 10:24 am
Forum: Investing - Theory, News & General
Topic: Purchase of Re-insurance risk outside of re-insurance funds
Replies: 33
Views: 2183

Re: Purchase of Re-insurance risk outside of re-insurance funds

A meta concern: I work in a hedge fund, so I look around and see a gigantic glut of capital. It's really mind blowing how much money is out there looking to invest in literally anything. So why on earth would I ever buy into a reinsurance fund that would accept someone like me (retail) as an invest...
by jwhitaker
Sat Nov 30, 2019 10:04 am
Forum: Personal Finance (Not Investing)
Topic: my annual financial checkup: what a kooky year
Replies: 12
Views: 1910

my annual financial checkup: what a kooky year

Hi all, just thought I would share. I am starting to do my yearly financial checkup. I check all account balances and add up my net worth*, then check all spending (using Mint) and then make sure everything reconciles. I want to make sure I can account for every dollar (although I'm only accurate to...
by jwhitaker
Sat Nov 30, 2019 9:39 am
Forum: Investing - Theory, News & General
Topic: Purchase of Re-insurance risk outside of re-insurance funds
Replies: 33
Views: 2183

Re: Purchase of Re-insurance risk outside of re-insurance funds

A meta concern: I work in a hedge fund, so I look around and see a gigantic glut of capital. It's really mind blowing how much money is out there looking to invest in literally anything. So why on earth would I ever buy into a reinsurance fund that would accept someone like me (retail) as an invest...
by jwhitaker
Mon Nov 11, 2019 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Understand Safe Harbor rules correctly?
Replies: 27
Views: 2874

Re: Do I Understand Safe Harbor rules correctly?

I had a situation similar to this. Withholdings from your paycheck are treated much more simply than estimated tax payments. Any deviation throughout the year triggers the extra complex form. What I did was jack up my withholding with an extra dollar amount on each paycheck which will put me in rang...
by jwhitaker
Sat Sep 28, 2019 2:19 pm
Forum: Personal Investments
Topic: What to do next with our money
Replies: 22
Views: 4505

Re: What to do next with our money

I think this is something a lot of people need to come to grips with. Yes if all goes as planned you will have several million saved when you retire. But no, you are not a "millionaire" as is commonly understood. You need several million to be a regular person who does not work. To be a wealthy reti...
by jwhitaker
Wed Sep 18, 2019 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Never assume the banks calculate balances correctly
Replies: 12
Views: 1835

Re: Never assume the banks calculate balances correctly

What bank is it? If yours was wrong probably so is every customer’s.
by jwhitaker
Fri Sep 13, 2019 9:55 am
Forum: Personal Finance (Not Investing)
Topic: self employment tax question
Replies: 14
Views: 863

Re: self employment tax question

I guess I don't understand why you'd increase your withholding instead of just send in an extra payment this year. Tax liability is established in the quarter the income is earned. Estimated tax payments are treated as made for a given "quarter" if paid within 15 days of the end of the quarter. 1/1...
by jwhitaker
Fri Sep 13, 2019 9:18 am
Forum: Personal Finance (Not Investing)
Topic: self employment tax question
Replies: 14
Views: 863

Re: self employment tax question

Can you explain this more? My wife is a sole prop, not w2. So then she has until tax day to make her contributions (of any type) right? Correct. HOWEVER the Solo 401K account must be opened during the tax year. You can open a regular IRA the following April and then add money. But the Solo 401K mus...
by jwhitaker
Fri Sep 13, 2019 8:53 am
Forum: Personal Finance (Not Investing)
Topic: self employment tax question
Replies: 14
Views: 863

Re: self employment tax question

As has been pointed out. The easiest and best solution is to increase your withholding such that your total withholding for the year is > either 100% of last year's tax liability or 90% of this year's tax liability. Your wife's self-employed earned income = business profits - 1/2 SE tax. She can ma...
by jwhitaker
Thu Sep 12, 2019 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: self employment tax question
Replies: 14
Views: 863

Re: self employment tax question

OP, Is your spouse reporting self employment as S Corp or Sole Prop? Thanks for the quick responses guys. We are reporting it as sole proprietor. I will have enough income remaining to withhold $12k to $15k and get us on par with regular withholdings. Is it correct that if I do the individual/emplo...
by jwhitaker
Thu Sep 12, 2019 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: self employment tax question
Replies: 14
Views: 863

self employment tax question

My tax situation this year is looking kind of complicated so I was hoping you guys could give me some tips. Here are the issues: 1) I forgot to update my withholding (having parents no longer as dependent) so my withholding is low. I expect to owe approximately 8k when I file federal with just this ...
by jwhitaker
Tue Apr 23, 2019 12:34 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 534
Views: 55470

Re: I don't understand the case for EE bonds

I've recently become more negative on EE bonds and I thought I would share my situation. I will stand to inherit some EE bonds sooner rather than later. It is a substantial sum (for which I am thankful) across bonds with years of issue from 1990 to 2005. There are big lumps in a few years in the ear...
by jwhitaker
Fri Mar 29, 2019 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Parent's annuity: exchange to IRA or keep
Replies: 5
Views: 248

Re: Parent's annuity: exchange to IRA or keep

You mention she can take out 9,500 a year until she reaches 190k? If it's an annuity there should be a withdrawal base (I'm guessing that's what's projected to be $190k) then a benefit amount, a % of the withdrawal base you are allowed to take as income for the remainder of your life. Is that 3%, 5%...
by jwhitaker
Sun Mar 10, 2019 10:01 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 1411
Views: 190462

Re: Post your Financial Milestone Announcements Here

I posted on the "why I left wealthfront" thread about how I just rolled over my taxable account with wealthfront to vanguard. although it is very annoying because of the complicated holdings and vanguards website, it did cause us to have over $500k invested with vanguard for the first time. that's a...
by jwhitaker
Tue Mar 05, 2019 11:33 am
Forum: Investing - Theory, News & General
Topic: Why I left Wealthfront
Replies: 72
Views: 24733

Re: Why I left Wealthfront

Just wanted to add my experience, I also pulled out of wealthfront and moved to a vanguard brokerage account. It was an in-kind transfer, but my cost basis does not seem to have made it, so that creates a big pain. I was using the direct indexing which is a feature on wealthfront where they buy indi...
by jwhitaker
Fri Feb 08, 2019 5:05 pm
Forum: Personal Investments
Topic: portfolio review - mid 30's married couple with FIRE on the brain
Replies: 22
Views: 5906

Re: portfolio review - mid 30's married couple with FIRE on the brain

Sorry I know this is not the kind of advice you are looking for, but have you stopped and consider the absurdity of what you are contemplating? You guys spent 8 extra years in school and spent $400k on your education. And you want to now get out of your career as fast as humanly possible? I mean, if...
by jwhitaker
Thu Feb 07, 2019 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Pure Insurance vs. Chubb, $1,000 Savings
Replies: 9
Views: 2356

Re: Pure Insurance vs. Chubb, $1,000 Savings

PURE is another insurer that focuses on high value homes and high net worth customers. I think by definition they need to be very lenient with claims in that space. Also good customer service. I don't have experience myself. It is A rated by AM Best which is good, but it's not as big of a company as...
by jwhitaker
Wed Feb 06, 2019 5:26 pm
Forum: Personal Consumer Issues
Topic: Carvana
Replies: 42
Views: 4790

Re: Carvana

Jimmie wrote:
Wed Feb 06, 2019 4:12 pm
I hate Carvana. I tried to buy a car using the car vending machine. My car got stuck in that screw thingy and the guy behind me got TWO cars. I tried shaking the whole machine, but I wasn't strong enough.
This was actually the first time something on bogleheads made me laugh, good job.
by jwhitaker
Wed Feb 06, 2019 1:58 pm
Forum: Personal Consumer Issues
Topic: Carvana
Replies: 42
Views: 4790

Re: Carvanna

I actually bought a car with them and decided not to keep it within the 7 day trial period. They honored the promise to take it back and promptly returned the money. No hassle at all or even attempt to talk me into keeping it. Everything was fine with the car, just decided it wasn't a wise financial...
by jwhitaker
Wed Feb 06, 2019 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: State Farm Executive Protector Life Insurance Policy, What to do?
Replies: 6
Views: 2399

Re: State Farm Executive Protector Life Insurance Policy, What to do?

I am sure the answer is to get rid of it, but I am just curious what the monthly payment is. Based on my own life insurance cost (mid 30's aged) that much death benefit should cost $3 a month. An investment that accumulates to $4000 value in 30 years I would hope requires less than $10 a month, and ...
by jwhitaker
Sat Feb 02, 2019 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: tax help: AMT credit
Replies: 7
Views: 812

tax help: AMT credit

Hi all, first of all apologies is there is a rule against tax advice. Please let me know if there is an alternative forum for that. Last year I paid approximately 7k additional federal tax due to the alternative minimum tax. With the new tax law I am not longer subject to AMT, and so I would like to...
by jwhitaker
Fri Jan 11, 2019 2:45 pm
Forum: Personal Investments
Topic: Life transition, what's next
Replies: 25
Views: 3407

Re: Life transition, what's next

Yeah it actually seems like you are not in that bad of shape. Certainly no one with 800k of savings will be living on the street anytime soon. That is more than 20 times your annual expenses, so that gets you to age 81 without even thinking about investment returns or the pension and SS you are and ...
by jwhitaker
Wed Jan 09, 2019 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Financial goals for 2019 (specific)
Replies: 86
Views: 8807

Re: Financial goals for 2019 (specific)

1. max out 401k and wife's solo 401k 2. 2 max Roths 3. 10k into kids 529 4. 10k each for me and wife in EE bonds 5. get mortgage under 300k remaining (will happen naturally with regular payments but a milestone) 6. annual spending under 100k (excluding taxes but including property tax and mortgage) ...
by jwhitaker
Wed Jan 09, 2019 2:09 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Does The Bucket Approach Destroy Wealth?
Replies: 58
Views: 7098

Re: Larry Swedroe: Does The Bucket Approach Destroy Wealth?

I worry about survivorship bias in the selection of countries used in the data. Yes war affected Japan and many of the European countries but they all came back to stability and growth within the period. I know this flaw is present in most of these analyses, and it is better than using US only which...
by jwhitaker
Fri Nov 09, 2018 11:09 am
Forum: Personal Investments
Topic: What can I do better?
Replies: 29
Views: 2644

Re: What can I do better?

Trying to be helpful. I think there is a big overlap with bogleheads and people who like simplicity. People who love having a million things going on will also tend to be attracted to the idea of actively managed investment portfolios. Also real estate flips and rental properties. Hence many who wou...
by jwhitaker
Wed Oct 31, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 179
Views: 19658

Re: Should we discourage the bond tent?

I have not done a ton of research on the bond tent, but the whole idea struck me as not making sense. Let's say we have 3 people, all age 65, all have 1M dollars, same spending, etc. etc. Financially indistinguishable. But let's say person 1 has been retired for 10 years, person 2 retired for 5 year...
by jwhitaker
Mon Oct 15, 2018 9:12 am
Forum: Personal Consumer Issues
Topic: Not convinced with insurance
Replies: 45
Views: 3929

Re: Not convinced with insurance

FYI while people can always cook up a scenario in which you get sued, and you can also cook up a scenario in which they will be sued for more than their current umbrella liability limit. The probability of all these events are below the level at which the human mind can discern. We all take risks so...
by jwhitaker
Sat Oct 13, 2018 10:03 am
Forum: Personal Consumer Issues
Topic: Not convinced with insurance
Replies: 45
Views: 3929

Re: Not convinced with insurance

Sounds fine to me. Most likely use of umbrella is due to bad car accident, so you are likely fine, unless you have a dog that likes biting children. Swimming pool on your property might also make me rethink but 500 annually is way too much. More likely to get struck by lightening probably. Also agre...
by jwhitaker
Mon Oct 08, 2018 10:05 am
Forum: Personal Investments
Topic: Evaluate net worth - FIRE really that close?
Replies: 56
Views: 8449

Re: Evaluate net worth - FIRE really that close?

How much is left on your mortgage? If you have $1M to go, then you are basically at zero. If it is 99% paid off, you are much closer. You have a lot of your portfolio in company stock. What happens there is very unpredictable. Can you liquidate any of it? I would not count on it, or value it very, ...
by jwhitaker
Mon Oct 08, 2018 9:06 am
Forum: Personal Investments
Topic: Evaluate net worth - FIRE really that close?
Replies: 56
Views: 8449

Re: Evaluate net worth - FIRE really that close?

I think 3% is generally considered quite a safe withdrawal rate... There is a LOT of magical thinking out there about predicting future market returns and developing SWRs for 40+ years’ retirements. It is developed and promulgated by people who couldn’t predict umbrella sales in a rainstorm. “Gener...
by jwhitaker
Sun Oct 07, 2018 12:10 pm
Forum: Personal Investments
Topic: Evaluate net worth - FIRE really that close?
Replies: 56
Views: 8449

Re: Evaluate net worth - FIRE really that close?

Thanks for the responses. I think 3% is generally considered quite a safe withdrawal rate so those of you saying it wouldn't last until 70 or I need 4 million, I think that is pretty conservative. I see the quick math, 1.4M minus college minus home equity at 1.05M. However my monthly expenses includ...
by jwhitaker
Fri Oct 05, 2018 3:27 pm
Forum: Personal Investments
Topic: Evaluate net worth - FIRE really that close?
Replies: 56
Views: 8449

Evaluate net worth - FIRE really that close?

Hi all, just want to have more sets of eyes on my current financial situation. I feel things are going very well and most online calculators do too, such as firesim or the recently posted "engaging-data fire calculator" or one I made myself. But it almost seems to good to be true. Sorry I will not b...
by jwhitaker
Thu Aug 30, 2018 8:36 am
Forum: Personal Consumer Issues
Topic: Chipotle question
Replies: 73
Views: 5089

Re: Chipotle question

Ha! If you are tying to maximize dollars per calories you better stop eating at restaurants. Mr. Money Mustache says you should guzzle olive oil achieve this maximum.
by jwhitaker
Thu Aug 30, 2018 8:18 am
Forum: Personal Consumer Issues
Topic: Mega Downsize....
Replies: 113
Views: 13494

Re: Mega Downsize....

Here's a contrarian view. I know someone kind of like you, house full of fancy furniture and lot of just... stuff. If I had all the money he had blown on just pure nonsense, I would be retired and I'm under 40. To me, a person that ends up in your and his situation is probably impulsive. And your al...
by jwhitaker
Sun Aug 26, 2018 11:39 am
Forum: Personal Investments
Topic: 37 Couple Life Changes, Portfolio Review - On track?
Replies: 8
Views: 1089

Re: 37 Couple Life Changes, Portfolio Review - On track?

Thanks for the replies so far. I updated the opening post. No, it's not a typo. We bought a condo a few blocks from our first place so my daughter could have a room and I would have a home office for my new business. It's an intra-family loan using the AFR (1.9%) at the time. We were both working f...
by jwhitaker
Fri Aug 24, 2018 1:22 pm
Forum: Personal Investments
Topic: 37 Couple Life Changes, Portfolio Review - On track?
Replies: 8
Views: 1089

Re: 37 Couple Life Changes, Portfolio Review - On track?

Not a comprehensive response but some thoughts. Congrats on having a child and your wife beating cancer since your last post. I am also in IL and we get tax deduction for 529, so that's 5% off college (not to mention leading gubernatorial candidate claims to support a tax increase). So definitely do...
by jwhitaker
Fri Aug 24, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Career decisions and healthcare/finances
Replies: 6
Views: 1046

Re: Career decisions and healthcare/finances

I agree, trying to set up your own business is something to do when you have a more stable support under you. Sounds like you have a lot of responsibility and time commitment already with your children. The 3/4 working is a benefit you should value at your current job. You ask should you consider ge...
by jwhitaker
Mon Aug 20, 2018 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: career move: pay versus boredom
Replies: 5
Views: 920

career move: pay versus boredom

Hi all, looking for career advice and wisdom. I'm mid to late 30's with family settled in the midwest. Been at my current job in financial services (backend technical work) close to 10 years. Starting to get a little bored at my current company. A few issues with just looking for a new job and jumpi...
by jwhitaker
Sun Jun 17, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: new thinking under 2018 tax law?
Replies: 29
Views: 5619

Re: new thinking under 2018 tax law?

The differences in marginal rates were small. (25% to 22%? 12% to 10%?) Even if the rates were to go back to the higher ones it wouldn't change any of my decisions on tax-deferred accounts. Those are nominal differences. I was in the AMT exemption phaseout range before, but won't pay AMT anymore, s...
by jwhitaker
Wed Apr 25, 2018 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Needing some sage advice on mom's Uni Life policy
Replies: 10
Views: 1233

Re: Needing some sage advice on mom's Uni Life policy

If the 15k value is rapidly decreasing and the 480 annual cost is rapidly increasing (or its actually just way more already), then i would be rapidly cashing this out as soon as possible.
by jwhitaker
Tue Apr 24, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Needing some sage advice on mom's Uni Life policy
Replies: 10
Views: 1233

Re: Needing some sage advice on mom's Uni Life policy

In general the advice is to avoid these policies no matter what. The more favorable advice is only to use these policies if you are very well off and don't intend to use the money while you are alive (i.e. for inheritance only). Doesn't seem to be the case for you. I think cashing it out is probably...
by jwhitaker
Mon Apr 23, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: new thinking under 2018 tax law?
Replies: 29
Views: 5619

new thinking under 2018 tax law?

Hi all, Just wondering if any others have thought about making changes or actually done so due to the new tax law. Previously I was subject to AMT and also in the exemption phase-out area, so my federal marginal rate was around 33% (state brings that up another 4 or 5%). Now my federal marginal will...
by jwhitaker
Mon Jan 08, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: protecting future inheritance
Replies: 31
Views: 3379

Re: protecting future inheritance

In the end, it is your parent's money to do with what they will. If your dad blows it all on some scheme, c'est la vie. Respectfully disagree. If they blow it all on a round-the-world cruise, that's none of your business. But if they are repeatedly taken advantage of -- financially and otherwise --...
by jwhitaker
Sun Jan 07, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: protecting future inheritance
Replies: 31
Views: 3379

protecting future inheritance

Hi all, sorry if this sounds greedy/evil/morbid but I am wondering what steps I could take to protect my claim to inherit my parents estate when they pass. Here is the situation: I am an only child and my parents are not wealthy but have a decent nest egg and own their home. My wife and I do not nee...
by jwhitaker
Mon Dec 11, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Prosper
Replies: 12
Views: 2310

Re: Prosper

Meh. I've been doing it a couple of years and have stopped reinvestment and am pulling out now as my loans are paid or charge off. Return was just under 4% so not worth it IMHO. Same thing here. Have been in LC for a long time (max was about $20K in). Stopped reinvesting 1-year ago and am waiting f...
by jwhitaker
Mon Dec 11, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: excess contribution(beyond state tax exemption limit) for IL529
Replies: 3
Views: 445

Re: excess contribution(beyond state tax exemption limit) for IL529

I mean, you didn't lose the 1,500 and there is no penalty. You just don't get to deduct it from taxes. You can still do the full 20k next year. You're only talking about like $50 in taxes that could, in some alternate universe, be avoided. It still grows tax free in the account also. There are lots ...
by jwhitaker
Mon Dec 11, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: Just not getting it [Stock Picking versus TSM]
Replies: 99
Views: 17265

Re: Just not getting it

I have a quarter that I have flipped 100 times and it came up heads 97 times. All you need to do is get a bunch of people to bet on it, foolishly thinking it is 50/50, and you will make a fortune. My asking price is one million dollars, but no one has bought it yet. I'm just not getting it...