One other wrinkle to consider is the new Prop 19 that just passed in CA:
It used to be that inherited property in CA kept the original owner's tax basis for property tax purposes (since the 70s) so many
heirs inherited very valuable properties with very low property taxes. This made it a no-brainer for a lot of heirs to turn them into rental properties.
Now that is changed and the property will be re-assessed at market value when it passes to the heir so likely a big bump in the property tax bill (1.25% min of assessed value.) This would NOT apply to her husband, however, only other heirs.
Search found 102 matches
- Tue Jan 12, 2021 12:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: How to make my mother-in-law’s estate “plan” work?
- Replies: 19
- Views: 2131
- Mon Jan 04, 2021 1:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: I don't trust my kids with a trust
- Replies: 41
- Views: 5541
Re: I don't trust my kids with a trust
We have Crummey trusts for our two kids but it matures when they are 25, 30 and 35yrs old (1/3rd each).
It's enough that if they want to start a small business or make a down payment on a house, they can get a nice head start in life (and believe me, we're in CA so getting a downpayment for a house is tough). We felt that they would be pretty mature at these ages but if they did screw it up, they would have 1-2 more chances.
It's enough that if they want to start a small business or make a down payment on a house, they can get a nice head start in life (and believe me, we're in CA so getting a downpayment for a house is tough). We felt that they would be pretty mature at these ages but if they did screw it up, they would have 1-2 more chances.
- Fri Dec 11, 2020 1:56 pm
- Forum: Personal Investments
- Topic: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
- Replies: 16
- Views: 1406
Re: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
malbecman wrote: ↑Fri Dec 11, 2020 1:17 pmYou're correct, sorry for the imprecise language. We do have some regular Roth accounts (so true tax free) but the 403b monies are tax deferred.Dottie57 wrote: ↑Fri Dec 11, 2020 11:55 am OP
I am concerned about your use of the term “nontaxable”.
The only tax-free accounts are those held in a Roth of some sort. 403b Roth if there is such an animal. If you paid taxes going into the account then it is tax free. If no taxes were paid on money going into the account (tax deferred) then any distributions are fully taxable as ordinary income tax rates.
Non Roth 403b assets are taxable.
I guess I was also thinking "tax-free" in that I can switch the monies in the 403bs between equities and bonds without paying LTCG.
Thanks for pointing that out.
- Fri Dec 11, 2020 1:17 pm
- Forum: Personal Investments
- Topic: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
- Replies: 16
- Views: 1406
Re: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
You're correct, sorry for the imprecise language. We do have some regular Roth accounts (so true tax free) but the 403b monies are tax deferred.Dottie57 wrote: ↑Fri Dec 11, 2020 11:55 am OP
I am concerned about your use of the term “nontaxable”.
The only tax-free accounts are those held in a Roth of some sort. 403b Roth if there is such an animal. If you paid taxes going into the account then it is tax free. If no taxes were paid on money going into the account (tax deferred) then any distributions are fully taxable as ordinary income tax rates.
Non Roth 403b assets are taxable.
Thanks for pointing that out.
- Fri Dec 11, 2020 11:40 am
- Forum: Personal Investments
- Topic: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
- Replies: 16
- Views: 1406
Re: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
Both my wife and I are very fortunate. Our employer (a very large university) allows us to continue to be part of their healthcare pool
with reasonable rates so no need to manage income.
- Thu Dec 10, 2020 1:47 pm
- Forum: Personal Investments
- Topic: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
- Replies: 16
- Views: 1406
Re: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
Thanks, that's great. A lot to read and contemplate.....
- Thu Dec 10, 2020 1:19 pm
- Forum: Personal Investments
- Topic: Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
- Replies: 16
- Views: 1406
Wisdom of using nontaxable accounts to go under the Kitce bond tent in early retirement
So I am considering RE this year at 53. DW would work a couple more years. We can live very comfortable at 3% SWR and even go down to 2.25-2.5% if necessary. As a potential early retiree, I am concerned primarily with sequence of returns risk. I've been looking at Kitce's bond tent strategy and it seems sound. We're currently at 70% equities but quite a bit is in taxable accounts so to sell those would incur LTCG. I'd rather not do that. I've been playing with the math and our nontaxable account (primarily two 403b's) could potentially give us a ~15% shift into bonds with no tax costs. Would there be any hazards to this strategy? As I understand the withdrawal rules, I need to wait until 59.5+ to make any withdrawals (and must withdraw star...
- Fri Dec 13, 2019 5:22 pm
- Forum: Investing - Theory, News & General
- Topic: Does a rebalancing tax hit count against a SWR?
- Replies: 4
- Views: 389
Re: Does a rebalancing tax hit count against a SWR?
That certainly makes sense. Its just a little hard to forecast as an expense and how it would affect your "pocket" money down the road. I guess all the more reason to have flexible spending plans if one can.
- Fri Dec 13, 2019 5:01 pm
- Forum: Investing - Theory, News & General
- Topic: Does a rebalancing tax hit count against a SWR?
- Replies: 4
- Views: 389
Does a rebalancing tax hit count against a SWR?
Just a theoretical question that's been on my mind. Say you retire with a 3M total portfolio with a target AA of 70% stocks/30% bonds (so 2.1M in the stock market). Stocks have a great year and go up 20% so $420K (or 2 yrs of ~10%). Your new total net worth is $3.42M but stocks are now 73.6% of your portfolio and you want to rebalance down to 70% again. You sell ~$140K of stocks and have a Fed LTCG tax bill (at 15%) of $21K. (not to mention any state taxes). 21K is ~0.6% of your net worth and you retired intending to spend a 3% SWR (so $90K/yr). Does that $21K come out of your spending that year? This means you have 69K to spend on the fun stuff in life or only 2.4% of your portfolio that yr. If so, I guess this would count as lumpy spendin...
- Wed Oct 30, 2019 4:26 pm
- Forum: Personal Finance (Not Investing)
- Topic: How do I make more money with my accounting degree?
- Replies: 29
- Views: 3984
Re: How do I make more money with my accounting degree?
My tax guy is a CPA and has built it up into a nice business with several CPAs under him now. He's definitely making good money but yes, even he admits those 3-4 months of the tax season are tough sometimes. He does take really nice, long summer vacations though.
- Thu Oct 17, 2019 4:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Legacy/Inheritance
- Replies: 61
- Views: 8103
- Fri Oct 11, 2019 5:18 pm
- Forum: Personal Finance (Not Investing)
- Topic: Best Trust Company For Spendthrift Child
- Replies: 13
- Views: 2550
Re: Best Trust Company For Spendthrift Child
I was in the unenviable position of being my sister's trustee on a trust setup from my parents-sounds similar to your situation. DONT DO IT! It totally changes your relationship to that person from being a loving sibling to managerial. My sister has some different values and very different spending habits which caused a lot of friction.
Me: "What, you need more $ already? What happened to that last $2.5K? Nevermind, I dont want to know...."
My parents did it to save $$ (frugal to the end) but once I offloaded it to US Trust, life was much easier and our relationship much better.
edit: better wording
Me: "What, you need more $ already? What happened to that last $2.5K? Nevermind, I dont want to know...."
My parents did it to save $$ (frugal to the end) but once I offloaded it to US Trust, life was much easier and our relationship much better.
edit: better wording
- Wed Sep 04, 2019 4:09 pm
- Forum: Personal Consumer Issues
- Topic: semi-DIY solar panels
- Replies: 39
- Views: 4446
Re: semi-DIY solar panels
Our local utility now offers 100% renewable/green energy at about a 8% increase over our regular rates (and they will soon offer 100% solar).
They use our money to go out and buy the power off the grid. For use, its like an extra $10 bucks/month..... much cheaper than the $12-20K prices I've seen for our own system.
They use our money to go out and buy the power off the grid. For use, its like an extra $10 bucks/month..... much cheaper than the $12-20K prices I've seen for our own system.
- Thu Aug 22, 2019 4:19 pm
- Forum: Personal Consumer Issues
- Topic: Anybody else enjoy sitting around and doing little in retirement?
- Replies: 106
- Views: 16510
Re: Anybody else enjoy sitting around and doing little in retirement?
Remember that very little is needed to make a happy life. ― Marcus Aurelius
- Thu Jun 13, 2019 11:44 am
- Forum: Personal Finance (Not Investing)
- Topic: Short-term money needs for Executor of Estate
- Replies: 57
- Views: 5346
Re: Short-term money needs for Executor of Estate
When my MIL passed away, her husband (FIL) made my spouse a joint owner on a checking acct for when he passes. My spouse is their
only progeny and executor and the understanding is that there is enough in there to handle estate expenses.
only progeny and executor and the understanding is that there is enough in there to handle estate expenses.
- Mon Jun 10, 2019 6:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: "Quitten" - Replacing Quicken with Google Sheets
- Replies: 39
- Views: 6305
Re: "Quitten" - Replacing Quicken with Google Sheets
Anyone using Sheets concerned about privacy issues? Just someone who doesnt like the reach of FANG sometimes....
- Wed May 15, 2019 1:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: Buying a "new" car - Advice pls
- Replies: 76
- Views: 8263
Re: Buying a "new" car - Advice pls
IMO the most Boglehead car you can buy is a used Toyota Prius. - Low entry cost (10k is easily doable) - Great reliability. Reports of 300,000 mile Prius' are easy to find - Low overall maintenance costs (brakes last longer, engine is near indestructible, battery replacement fears are unfounded) - Great gas mileage (I average 45 mpg) - Super functional: The hatchback design and ability to put seats down makes this super functional. I can slip (2) bikes into the car without issue. I think a used Toyota Prius is the lowest total cost car you can purchase. I'll present a Boglehead alternative that's much cheaper to own if it fits your driving style (eg, commuting ~20 miles each way)....a Nissan Leaf. You can get a 2012 model for $8K or a 2016...
- Mon Apr 22, 2019 1:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: If FIRECalc shows 100% success rate, what holds you back from retiring?
- Replies: 126
- Views: 15197
Re: If FIRECalc shows 100% success rate, what holds you back from retiring?
Another way to do this is FireCalc will let you show how much starting portfolio you need to achieve X success rate. I was at the 100% but not sure how much above..... I just set it to 99% and found that starting theoretical portfolio value to achieve 99% was quite a bit lower.NotWhoYouThink wrote: ↑Mon Apr 22, 2019 12:25 pm If FIRECalc shows 100% success rate you are inputting the wrong variables. Play with it to see what makes it go under 100%, or under 90% if you want to learn from it.
It's a tool, like any other, and has certain assumptions baked in but overall I find it useful.
- Thu Apr 11, 2019 5:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can we afford a $1mil home?
- Replies: 64
- Views: 9535
Re: Can we afford a $1mil home?
Well, first off, you're prolly not going to get $340K/yr AGI in the midwest.trustquestioner wrote: ↑Thu Apr 11, 2019 2:33 pm Every Bay Area housing thread leaves me staring at the post hoping there was a typo or something.
Unless you absolutely have to live there, I don’t get it. You can move to the Midwest, live a much better quality of life on half the income and have plenty left over for multiple luxury trips back, should you so desire.
Also, I'm in Northern CA and aside from a few rain showers, we've been in the 50s at night and 68-70 degrees during the day with sunshine for the last couple of weeks. No blizzards here....
- Thu Feb 07, 2019 4:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: Facilities Management Career Path?
- Replies: 6
- Views: 816
Re: Facilities Management Career Path?
Here's a recent posting for the Director of Facilities at our Vet School (UC Davis). This would be the top position but you
can see it pays well and get an idea of the skills needed.
https://www.employment.ucdavis.edu/appl ... gId=392775
can see it pays well and get an idea of the skills needed.
https://www.employment.ucdavis.edu/appl ... gId=392775
- Wed Jan 30, 2019 5:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: How do early retirees get health insurance in the US?
- Replies: 22
- Views: 3997
Re: How do early retirees get health insurance in the US?
Something to keep in mind is that healthcare costs in the US are very region specific. What works in Northern CA doesnt work in Central or South CA, for instance (or even far north CA which has a much more rural population). Everyone needs to run their own numbers. Once you are on Medicare, a lot of this disappears as I understand.
- Tue Oct 16, 2018 6:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Any good 2018 CA tax calculators out there?
- Replies: 7
- Views: 1024
Re: Any good 2018 CA tax calculators out there?
Thanks Ladycat, these look great!ladycat wrote: ↑Wed Oct 03, 2018 6:42 pm I have no knowledge of whether this site is good or not, but there appear to be CA tax planner spreadsheets that you can download for many tax years, including 2018.
http://www.taxvisor.com/taxes/
- Fri Oct 12, 2018 6:28 pm
- Forum: Personal Consumer Issues
- Topic: Talk me out of buying a Tesla Model 3
- Replies: 963
- Views: 103288
Re: Talk me out of buying a Tesla Model 3
Dang! Double congrats!!!!investor997 wrote: ↑Fri Oct 12, 2018 6:26 pm WHOA - Tesla just called me and they said they'll have my car ready for delivery the Monday after next. Bam!
- Fri Oct 12, 2018 6:18 pm
- Forum: Personal Consumer Issues
- Topic: Talk me out of buying a Tesla Model 3
- Replies: 963
- Views: 103288
Re: Talk me out of buying a Tesla Model 3
Congrats, am considering pulling the trigger myself this weekend on a M3D but blue with white interior.....
- Tue Oct 09, 2018 5:12 pm
- Forum: Personal Consumer Issues
- Topic: Talk me out of buying a Tesla Model 3
- Replies: 963
- Views: 103288
Re: Talk me out of buying a Tesla Model 3
[/quote]
So what? The cars and mfgs you are comparing it to sell in almost every market. More importantly, there is a difference between fulfilling 2-3 years of pent up, subsidy driven ( OP a perfect example) demand and ongoing flow. Let’s see how many Tesla’s are sold in July 2019.
[/quote]
You mean when they become available in Europe and China?
(I'm tapping out)
So what? The cars and mfgs you are comparing it to sell in almost every market. More importantly, there is a difference between fulfilling 2-3 years of pent up, subsidy driven ( OP a perfect example) demand and ongoing flow. Let’s see how many Tesla’s are sold in July 2019.
[/quote]
You mean when they become available in Europe and China?
(I'm tapping out)
- Tue Oct 09, 2018 4:50 pm
- Forum: Personal Consumer Issues
- Topic: Talk me out of buying a Tesla Model 3
- Replies: 963
- Views: 103288
Re: Talk me out of buying a Tesla Model 3
OP- There is no doubt you can afford a model 3. I'd recommend a model S if you are going to buy a Tesla. But, Tesla will enter bankruptcy before the calendar reaches 2019. No doubt about it. If you're okay with that, buy the car. Enjoy it man. Nice financial stats too. Well done. Uhhhh, really? The Tesla Model 3 was the 4th best selling car in the US last month and outsold Mercedes this last quarter and is nipping at the heels of BMW. https://www.forbes.com/sites/jeanbaptiste/2018/10/09/tesla-outsells-mercedes-benz-in-america-and-bmw-is-next/#2ddb494d7562 https://insideevs.com/tesla-model-3-sales-pass-toyota-corolla/ It also has the lowest probability of causing injury of any car ever tested by the NHSTA https://www.tesla.com/blog/model-3-...
- Wed Oct 03, 2018 12:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Any good 2018 CA tax calculators out there?
- Replies: 7
- Views: 1024
Re: Any good 2018 CA tax calculators out there?
CA has a tax calculator of ftb website https://webapp.ftb.ca.gov/taxcalc/calculator.aspx?Submit=2017+Tax+Calculator&Lang=english&redirectURL=OTC This is a 2017 calculator but should be reasonably close since CA has not changed tax laws like Fed. However input required is CA taxable income. You can get Fed AGI,I assume. Then you need to massage into CA AGI by the adjustments on Sch CA and then the CA deduction. Depending on your situation, this may be easy or somewhat cumbersome. The calculator gives you the initial tax. Then you need to subtract out the exemption credits which should be easy. Thanks. Yes, I can get Fed AGI and work from there. I was just hoping for a calculator that included the CA adjustments, etc, so I could quic...
- Wed Oct 03, 2018 12:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: Any good 2018 CA tax calculators out there?
- Replies: 7
- Views: 1024
Re: Any good 2018 CA tax calculators out there?
Thanks, I tried a lot of those...mostly really basic ones that I was trying to avoid.FiveK wrote: ↑Tue Oct 02, 2018 7:46 pm Do any of https://www.google.com/search?q=califor ... calculator work for you?
- Tue Oct 02, 2018 5:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: Any good 2018 CA tax calculators out there?
- Replies: 7
- Views: 1024
Any good 2018 CA tax calculators out there?
Most of the ones I can seem to find only have a few simple inputs. I'm looking for a more complex one that will accept
additional inputs like dividends, cap. gains, pensions, rental income, etc. Basically the adjustments from Schedule 540....
I'm looking to model some tax scenarios. Thanks.
additional inputs like dividends, cap. gains, pensions, rental income, etc. Basically the adjustments from Schedule 540....
I'm looking to model some tax scenarios. Thanks.
- Thu Aug 02, 2018 5:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I count rental equity towards our retirement number?
- Replies: 9
- Views: 729
Re: Should I count rental equity towards our retirement number?
That's a good point and I can quantify them a bit. Pension income goes up by $327 (age 51), $351 (52) and then $375 (53) per month. etc Its a sigmoidal shaped curve but at the tender age of 50, the increases are small...they really ramp up around 57 - 65. I'm hoping for ~5% total stocks and bonds return (which may be optimistic) which would put us at ~32x expenses (any contributions are gravy). We are at the point where any real growth (or loss!) significantly outweighs our annual contributions, aka, the portfolio size effect as Kitces calls it. And yes, we will be one year closer to the grave... I appreciate everyone's replies...still trying to figure out our feeling on this issue. This may be an odd question, but what would you plan to ac...
- Thu Aug 02, 2018 11:52 am
- Forum: Personal Finance (Not Investing)
- Topic: Should I count rental equity towards our retirement number?
- Replies: 9
- Views: 729
Should I count rental equity towards our retirement number?
Long and short. My wife and I are considering early retirement (early 50s). Just counting our stocks, bonds and cash we are at 27x expenses (yes, healthcare is included). Some variability there as we still have 1 kid at home and we also recognize our good position and occasionally splurge. However, we also have 3 rentals, all cash flowing positive now (not a huge amount) and which have appreciated decently. (They will be paid off completely in ~8 yrs and then the cash flow will go up). If I include the equity in them (minus 5% commission), we are at more like 34x expenses which seems to be the very safe 3% SWR. Ideally, we would not sell but could if needed. The fiscally conservative in me says keep working a few more years. The spendthrift...
- Tue Jul 31, 2018 1:37 pm
- Forum: Personal Investments
- Topic: Bond Tent strategy and AA for early retirement
- Replies: 3
- Views: 918
Re: Bond Tent strategy and AA for early retirement
I think you don't need to change a thing. I am early retired and have no bond funds in taxable. Also allocation is about 30% bonds. I don't care about portfolio swings either. May I ask why you care about them? They are not going to affect your ability to retire nor the long-term viability of your portfolio. The swings may cause you to make behavioral finance mistakes like changing your plan or not tax-loss harvesting when you can. Thanks for the replies. I don't care about the swings (ok, maybe a little :happy ) as we are long term investors. It was more of the realization of the magnitude of the swings becoming as big/bigger than our annual contributions and the thought of "Gee, a couple of bad weeks could wipe out our annual contri...
- Tue Jul 31, 2018 12:09 pm
- Forum: Personal Investments
- Topic: Bond Tent strategy and AA for early retirement
- Replies: 3
- Views: 918
Bond Tent strategy and AA for early retirement
So this is more of a general strategy question. My wife and I currently have sufficient assets after careful saving to consider early retirement in 2 yrs in our early 50s. Current AA is 70% Equities and 25% bonds, 5% cash. We currently also have ~2.2x in our taxable accounts vs tax-deferred (didnt know about backdoor Roth in the early years plus a small inheritance). We are seeing the portfolio size effect (as Kitces terms it) whereby our daily/weekly portfolio swings (in todays markets) can be equal or more than our annual contributions. To mitigate that, so we're considering increasing our bonds upward to ~35% or maybe even 40% to get under the bond tent and prevent large portfolio swings in our early retirement and hopefully decrease the...
- Mon Jun 11, 2018 6:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: Moved Family Across Country for New Job and Job is now gone
- Replies: 27
- Views: 7263
Re: Moved Family Across Country for New Job and Job is now gone
Was there an offer letter or email? Something in writing? Save it!
- Wed May 16, 2018 5:02 pm
- Forum: Personal Finance (Not Investing)
- Topic: Need Input on My Early Retirement Plan.....
- Replies: 45
- Views: 7309
Re: Need Input on My Early Retirement Plan.....
You mention buying a new car for 25K. Do you have future allocations for cars in 5 or 10 years or do you fund that out of your 70K living expense (eg, set aside 2.5K/yr for ten years)?
I point this out as 25K is ~0.8% of your net worth so not a huge expense but something to consider.
I point this out as 25K is ~0.8% of your net worth so not a huge expense but something to consider.
- Thu Mar 15, 2018 3:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: Need Advice Rental Property -- Rent not covering PITI
- Replies: 18
- Views: 2467
Re: Need Advice Rental Property -- Rent not covering PITI
SPOUSE 2 says: The rent is paying down the mortgage and we have no housing expenses overseas, so the loss does not matter
This is not a logical argument. You are losing money every month and only paying the bank their interest at this point....if you sold the house, you would have more $ every month. That sounds better to me.
edit: I own 3 rental properties with a 4th on the way. Based on the facts presented, I would not touch this with a ten foot pole.
This is not a logical argument. You are losing money every month and only paying the bank their interest at this point....if you sold the house, you would have more $ every month. That sounds better to me.
edit: I own 3 rental properties with a 4th on the way. Based on the facts presented, I would not touch this with a ten foot pole.
- Wed Mar 14, 2018 6:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Cash out inherited IRA or just take RMD's?
- Replies: 19
- Views: 3125
Re: Cash out inherited IRA or just take RMD's?
My wife just inherited part of an IRA from her mom (the bulk went to dad who is still living). She took the RMDs as its like a nice $650 check every year in December and can use it to enjoy the holidays with family and also make some donations to orgs they both liked such as the SPCA. She knows her mom would approve.
- Tue Mar 06, 2018 5:13 pm
- Forum: Personal Investments
- Topic: $150K to invest
- Replies: 12
- Views: 2332
Re: $150K to invest
What is your long term goal (or goals perhaps) for this money? Knowing your time horizon will help.
I think you will find useful answer about portfolios in the wiki.
https://www.bogleheads.org/wiki/Main_Page
I think you will find useful answer about portfolios in the wiki.
https://www.bogleheads.org/wiki/Main_Page
- Thu Feb 22, 2018 3:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: Early retirement strategy for wife
- Replies: 18
- Views: 3223
Re: Early retirement strategy for wife
Speaking as a dad with 2 grown kids, I would expect your expenses to grow with your child...sports, music, food, etc. This looks pretty risky to me.
Can your wife go PT? My wife was 50% the first 15 yrs of our kids lives and it was nice having that backstop. Now she's 100% and glad she kept an oar in the water....
edit: I wouldnt count on Covered CA to stay linear..it will increase.
Can your wife go PT? My wife was 50% the first 15 yrs of our kids lives and it was nice having that backstop. Now she's 100% and glad she kept an oar in the water....
edit: I wouldnt count on Covered CA to stay linear..it will increase.
- Wed Feb 14, 2018 6:17 pm
- Forum: Personal Investments
- Topic: Did you learn anything from the market correction?
- Replies: 160
- Views: 17826
Re: Did you learn anything from the market correction?
It really is a random walk. Here it is, Feb 14th and the SP500 index closed up 0.94% YTD (but these last ~6 weeks were a pretty wild ride.)
- Wed Jan 31, 2018 5:20 pm
- Forum: Personal Finance (Not Investing)
- Topic: Top 1% Net Worth Under 30 Years Old
- Replies: 13
- Views: 7330
Re: Top 1% Net Worth Under 30 Years Old
This calculator does not break it down by age but gives your wealth percentile in the US (can chose with our without home equity)
https://dqydj.com/net-worth-percentile- ... ed-states/
Looks like you'll need to be at 10M to be in the top 1%.
https://dqydj.com/net-worth-percentile- ... ed-states/
Looks like you'll need to be at 10M to be in the top 1%.
- Fri Jan 26, 2018 5:15 pm
- Forum: Investing - Theory, News & General
- Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
- Replies: 67
- Views: 12049
Re: Bond Portfolio for High Net Worth Individuals - Different Rules?
Here's a net worth percentile in the US calculator using 2016 data (so a little out of date but still gives you an idea) https://dqydj.com/net-worth-percentile-calculator-united-states/ $1,000,000 net worth is 88th percentile $2,000,000 is 93.5th I assume this includes your primary residence (it does say net worth) so that skews it vs just "investable assets" Their article here has a nice table showing brackets https://dqydj.com/net-worth-brackets-wealth-brackets-one-percent/ Net Worth Percentile 2013 SCF 2016 SCF 95 $1,924,942.64 $2,377,985.22 96 $2,401,849.00 $2,798,189.12 97 $3,185,849.01 $3,703,775.80 98 $4,506,369.69 $5,816,220.17 99 $8,102,708.22 $10,374,030.10
- Tue Jan 09, 2018 1:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: Early Retirement Math - What I am not thinking of?
- Replies: 26
- Views: 5344
Re: Early Retirement Math - What I am not thinking of?
I'm assuming funds for your child's education have been factored into this; I have no idea how much costs for education are in your home country. Living off dividends is a whole other discussion. People like to think of dividends as steady payments like bonds. They aren't. the idea of living off dividends brings all sorts of questions (i.e. are you rebalancing? If your 2 funds both return 6% but one pays a 2% dividend and the other a 4%, they aren't going to stay equal for long) that you can avoid by stop believing living off dividends does anything. If dividends went back up to 7%+, I am not sure I would be recommending a 7% SWR:) A good example of this is PG&E (Pacific Gas & Electric) recently cutting their dividend to zero (to c...
- Mon Jan 08, 2018 4:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: Overwhelmed with how to handle taxes on large inherited portfolio.
- Replies: 24
- Views: 2582
Re: Overwhelmed with how to handle taxes on large inherited portfolio.
As alluded to, you can pay Vanguard for the Personal Advisor Services (PAS) for 0.3% AUM (or $6K annually for you )plus the amounts each mutual fund charges (which are some of the lowest in the business). With 2M, you should be eligible for their lower cost Admiral funds which are basically mirrors of most of their regular funds, just lower cost.
https://investor.vanguard.com/mutual-fu ... ral-shares
The PAS are CFPS and a great way to start out as training wheels while you learn more about investing and taxes....we went this route and recently let ours go after we self-educated ourselves.
edited for typos
https://investor.vanguard.com/mutual-fu ... ral-shares
The PAS are CFPS and a great way to start out as training wheels while you learn more about investing and taxes....we went this route and recently let ours go after we self-educated ourselves.
edited for typos
- Thu Dec 14, 2017 6:08 pm
- Forum: Personal Consumer Issues
- Topic: Honda Pilot vs Toyota Highlander?
- Replies: 88
- Views: 25841
- Wed Dec 13, 2017 6:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Taxes on Crypto Currency Short-Term Profit
- Replies: 8
- Views: 1639
Re: Taxes on Crypto Currency Short-Term Profit
Now if you had only invested $1M!
- Wed Dec 13, 2017 3:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: Thanks! We just let our VG PAS advisor go...
- Replies: 14
- Views: 4908
Re: Thanks! We just let our VG PAS advisor go...
Right...we also had no hard sell once we told our advisor we wanted to end the relationship. I was wondering about their compensation...if it was pure salary or perhaps salary plus some % of AUM?White Coat Investor wrote: ↑Tue Dec 12, 2017 11:57 pm No surprise there is no hard sell. I think they're salaried aren't they? I get the impression it's run at cost like anything else at Vanguard.
- Mon Dec 11, 2017 5:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Thanks! We just let our VG PAS advisor go...
- Replies: 14
- Views: 4908
Re: Thanks! We just let our VG PAS advisor go...
I did it via phone...we had just wrapped up our quarterly summary talk when we told him we were no longer interesting in using PAS...tried to make sure he understood it was just business and not a personal assessment of his abilities.
- Fri Dec 08, 2017 1:26 pm
- Forum: Personal Investments
- Topic: Help choosing bond fund for nontaxable work acct
- Replies: 6
- Views: 849
Re: Help choosing bond fund for nontaxable work acct
These were some of the highest rated bond funds. Expense ratios are similar across all three from 0.73-0.8%. The Lord Abbet fund, on further review, does have much higher turnover rate. I was trying to stick with pure bond funds to move our AA the most (vs a blended fund).
- Fri Dec 08, 2017 12:31 pm
- Forum: Personal Investments
- Topic: Help choosing bond fund for nontaxable work acct
- Replies: 6
- Views: 849
Help choosing bond fund for nontaxable work acct
So with the recent run up in our stock index funds, our asset allocation is a little high in equities (about 73%) for our AA. We'd like to nudge it down to 70% or a little below and have enough room in our workplace 403b plan so its a nontaxable event. Our workplace plan uses Fidelity and below are 3 choices I found that are 5 star Morningstar rated. Any thoughts on any of these? Fidelity® Capital & Income Fund (FAGIX) High Yield Bond Lord Abbett Bond Debenture Fund Class A (LBNDX) Multisector Bond Prudential High-Yield Fund Class A (PBHAX) High Yield Bond Current bond holdings: Our Roth IRAs are already pretty heavy in VTABX (Vanguard Total International Bond Index Fund Admiral Shares) and VBTLX (Vanguard Total Bond Market Index Fund A...