Search found 186 matches

by why3not
Thu Apr 26, 2018 6:31 am
Forum: Personal Investments
Topic: Considering a CD ladder
Replies: 46
Views: 12889

Re: Considering a CD ladder

lahob wrote: Mon Apr 02, 2018 9:58 am
I'll go on record to predict that Total Bond Market will have a positive return over the next 3 years, starting from today's date. (Considering TBM has never had a negative return in any 2 year period, I feel fairly safe making this prediction. Of course, I could still be wrong.)
I have a $85,000 purchase of Total Bond made Aug '16 with dividends reinvested currently sitting at $82,900. I have a hard time seeing this thing gain $2,100 in the next 4 months to break even. I am guessing using the past to predict the future isn't the best move.
by why3not
Tue Aug 22, 2017 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: What is your cash reserve limit, above which you invest?
Replies: 25
Views: 4378

Re: What is your cash reserve limit, above which you invest?

I keep 12 months @ current lifestyle or about 18 on a frugal budget.

I use the account to pay for large expenses like cars, HVAC systems, etc without worry and the spend the next few months replenishing it instead of adding to a taxable account those months.

Is there some drag holding that much cash? Absolutely but it causes me no stress to forgo maximum returns and i should easily clear my retirement goals.
by why3not
Fri Aug 18, 2017 6:10 am
Forum: Personal Investments
Topic: Lost $7000 today in ONE DAY!
Replies: 183
Views: 24299

Re: Lost $7000 today in ONE DAY!

Alex
I suggest you read & think about this post by one of the forum giants
A time to evaluate your jitters
by why3not
Wed Aug 02, 2017 5:41 am
Forum: Personal Investments
Topic: Will my older self thank me?
Replies: 38
Views: 4626

Re: Will my older self thank me?

Yes. Having plenty of money will provide you with options. Sometimes those options can be life altering.
by why3not
Wed Aug 02, 2017 5:37 am
Forum: Personal Consumer Issues
Topic: Any problem leaving a hole in ceiling of garage?
Replies: 27
Views: 8500

Re: Any problem leaving a hole in ceiling of garage?

doneat53 wrote:Garages are dry walled and sealed also as a "firewall" to the rest of the home since fires often start in the garage.
+1
Most building codes consider a garage a fire hazard (mostly due to the type of materials stored there). Even if your's isn't when you go to sell, it won't matter to whomever is inspecting your house & you will almost certainly have to patch the hole then. Why not just do it now rather than later?
by why3not
Thu Jul 20, 2017 7:23 am
Forum: Personal Consumer Issues
Topic: Keurig vs coffeemaker - and the Keurig won
Replies: 53
Views: 8742

Re: Keurig vs coffeemaker - and the Keurig won

Keurig added a cup to my coffee habit. I still brew a pot in the morning, it is just part of the routine. Takes maybe 1 minute of time (plus a wait during which I do something else). Kuerig makes it very easy to have a quick cup in the afternoon when I need the caffeine boost vs grabbing a soda.
by why3not
Fri Jul 14, 2017 4:00 pm
Forum: Personal Consumer Issues
Topic: If i turn off central AC will it damage drywalls?
Replies: 38
Views: 9635

Re: If i turn off central AC will it damage drywalls?

Big temperature changes in a house are not good for the structure or the trim, paint and caulk of your house. All materials will expand and shrink at different rates as temperature and humidity goes up or down. Same goes for furniture. Result is cracks and potential warping of materials. +1 I have an inlaw/guest suite with it's own AC system. It gets used a few times a year at best a week or so a time at best. AC doesn't get turned on except when guests are here. I live in hot & humid south. No mold issues in the last 5 years, but you bet the drywall seams, nail pops & caulked joints crack much, much more than the rest of the house. I can repair all that myself & do, but if I had to pay someone to do it I would guess I would st...
by why3not
Fri Jul 14, 2017 7:02 am
Forum: Personal Investments
Topic: What advice to give 21 year old?
Replies: 133
Views: 14729

Re: What advice to give 21 year old?

I probably didn't read closely enough but it appears these are RothIRA & taxable accounts? Is it possible he is looking at getting married, buying a house, etc in the next few years? If so, he may be right. If all of this is earmarked for 40+ years from now, have him read JLCollinsNH stock series & then discuss with him.
by why3not
Tue Jul 11, 2017 12:04 pm
Forum: Personal Consumer Issues
Topic: Shopping for first bike since I was a kid
Replies: 121
Views: 12771

Re: Shopping for first bike since I was a kid

Agree with posters who say you dont need to blow your budget for low speed tooling around town bikes. I have put over 20k miles on my main commuter/century bike. That bike cost about $400 brand new (i bought it a few years old).
My wife runs a single speed beach cruiser around town and loves it. While she only puts 100 miles or so a year on it, she has had it for 4 years now. If/when it breaks we will just buy another $100-150 department store cheapo for her.
by why3not
Fri Jun 30, 2017 11:45 am
Forum: Personal Consumer Issues
Topic: Wrecked Vehicles and Whether or Not to Keep Them
Replies: 34
Views: 4288

Re: Wrecked Vehicles and Whether or Not to Keep Them

I have little ego tied to my car, so for me it is an easy decision to drive it until it dies.
As far as McD workers driving nicer cars... not only who cares, but how do you know their financial situation? Do you know if the car was given to them, if it is mom/dads car, do they live at home or with 27 roommates, etc?
by why3not
Fri Jun 30, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Engagement Ring Insurance
Replies: 46
Views: 6806

Re: Engagement Ring Insurance

I had a standalone Chubb policy for a year on my wife's ring. Once we were married, it moved into a rider on our homeowners. I would probably not claim a $2k ring on homeowners unless it were part of larger losses.
by why3not
Fri Jun 30, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 7633

Re: Total Bond Fund in a rising rate environment

I can provide a recent real world example, dividends reinvested, taxes deferred:

Aug 10, 2016 purchase $85,000 of VBTLX
Aug 31, 2016 balance of $85,185.90 (month end high point)
Nov 30, 2016 balance of $82,213.31 (month end low point)
Dec 15, 2014 Fed raised fed fund target rate 0.25%
Dec 31, 2016 balance of $82,422.04
Mar 16, 2017 Fed raised fed fund target 0.25%
Mar 31, 2017 balance of $83,169.97
Jun 15, 2017 Fed raised fed fund target 0.25%
June 29, 2017 balance of $84,301.54
by why3not
Fri Jun 30, 2017 7:25 am
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 228
Views: 33407

Re: Buying house - Very important decision

3) Home insurance - It's hard to find home insurance rates without going through the quote application process. Will probably vary between $100-200 per month. This site says $1500 on average in Tennessee, so $125 per month. 5) Utilities - Going to vary a ton based on location, energy efficiency of the home, your energy usage habits, whether you need to water your lawn, etc. With hot summers and fairly cold winters, I'm sure your total utilities bill on a 3600 sqft house would be at least $200, if not $300. I don't believe I'm being unreasonable in any of these estimates, but anyone is welcome to point out if there needs to be corrections to this based on their knowledge/experience. On insurance: I suspect the "average" TN home is...
by why3not
Thu Jun 29, 2017 8:41 am
Forum: Personal Investments
Topic: Can I retire now?
Replies: 35
Views: 8407

Re: Can I retire now?

Yes, assuming your wife stays employed.
by why3not
Thu Jun 29, 2017 8:27 am
Forum: Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1974

Re: Stepping up my game. Need some pointers please.

3 fund portfolio really doesn't have anything to do with your AA, it is just a method of balancing between 3 asset types to achieve your desired AA.

I would start your reading on AA here:https://www.bogleheads.org/wiki/Asset_allocation

And, yes, the 3-fund portfolio is a good way to accomplish what it seems you are looking for & the way you outline it is correct. Once you have decided your overall AA strategy, you place your funds to minimize your losses to taxes as you have suggested.
https://www.bogleheads.org/wiki/Princip ... efficiency
by why3not
Thu Jun 29, 2017 7:58 am
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 228
Views: 33407

Re: Buying house - Very important decision

prettybogle wrote:I agree our rent now is justifying not to buy house but what if rent goes up rapidly ?
Find a different place to rent if that happens.
There is nothing the matter with renting or owning & I don't think anyone is saying you shouldn't own. My takes is if you are paying something like $1300/month you are probably in a <1700 sq ft apartment. Look at houses in this size & get a realistic cost rather than moving to a McMansion.
For perspective, my family is on our 4th house (upgrading along the way), have a income & net worth over 2x yours, 2 kids & a house over 1000 sq ft smaller than the one you are looking at.
by why3not
Wed Jun 28, 2017 10:08 am
Forum: Personal Consumer Issues
Topic: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?
Replies: 46
Views: 3274

Re: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?

100% depends on the kids. Some 5 & 2 year olds are nightmares on planes when they are all wound up, others are fine. If you can fly jetblue, the seatback tvs are good for keeping kids from being bored after takeoff excitment is over. Some kids are nightmares in cars for any length of time. I can say we had flown plenty with our kids at that age & never had any issues, but they had been flying since babies. We had to work up to long car rides, starting with 3 hours or so. If you throw a long car ride at them every few months, they soon get to to the point where a 6 or 7 hour drive is no big deal. Personally, i would rather leave at 4am & get as far as possible before they wake up. Stop & have breakfast & get them out of p...
by why3not
Wed Jun 28, 2017 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Net worth - thanks to this site
Replies: 15
Views: 4553

Re: Net worth - thanks to this site

congratulations
by why3not
Wed Jun 28, 2017 6:48 am
Forum: Personal Investments
Topic: Newbee Investor seeks advice.
Replies: 14
Views: 2419

Re: Newbee Investor seeks advice.

The first thing I would do is roll that high ER 401k from your old employer over to an IRA (do direct transfer rollover so that you don't get a check). IRA account has to be individual. I would open your taxable vanguard account as joint but that is a personal decision. The advice you are getting is to fill up your 401k/IRA accounts with bond funds. Place your stock index funds in your taxable account. if you run out of 401k/IRA room (ie. you need to buy more bond funds to achieve your desired 10% than you can place) then you will have to buy some bond funds in taxable. At that time (since you are in highest tax brackets) you should also consider muni bond funds. Once you follow this path, you will have to get out of your target date retire...
by why3not
Fri Jun 09, 2017 7:00 am
Forum: Personal Investments
Topic: need help...acquired 150,000...what do I do?
Replies: 10
Views: 2648

Re: need help...acquired 150,000...what do I do?

dbr wrote:You can invest all the new money in stocks in taxable and sell stocks for bonds in the IRA. You will have to check the arithmetic on that. If there is not enough room after the IRA is full of bonds, then your tax situation would dictate whether to hold munis or taxable bonds in taxable. That is one way to consider the situation.
+1
by why3not
Fri Jun 09, 2017 6:32 am
Forum: Personal Consumer Issues
Topic: Dave Ramsey Financial Peace University ??? worth it?
Replies: 120
Views: 19620

Re: Dave Ramsey Financial Peace University ??? worth it?

Quite unfortunate that his 12% (now 10%) returns are pretty lofty and potentially dangerous. Although, he often hedges by saying "even if I am half wrong"...in other words, 5-6%. But I'm sure most listeners will hold on to the 12%. How I wish he just fixed his investment ideas; what a well rounded financial coach he would be...oh well First, let me state that I believe most Americans would be better off following Dave's advice (essentially: stop living beyond your means, pay off debt, create an emergency fund, begin investing) & think that for the vast majority his advice is "good enough" to give them some financial stability. That said, I believe his "mission" is to inspire behavior rather than truly educ...
by why3not
Thu Jun 08, 2017 8:48 am
Forum: Personal Consumer Issues
Topic: Is it possible to only replace sections of a concrete driveway?
Replies: 21
Views: 11097

Re: Is it possible to only replace sections of a concrete driveway?

Lynette wrote: The But to do driveways, one needs heavy equipment.
Depends on how big of a section you are talking about. I did a 4' section in my driveway by hand in a wheelbarrow. If it is big enough that it "requires" heavy equipment, you shouldn't have a hard time interesting someone.
by why3not
Thu Jun 08, 2017 8:39 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 148
Views: 27479

Re: 100% Stock Portfolio?

Is there proof that such a strategy performs worse than 100% stocks? I haven't found it yet. Play with the portfoliovisualizer tool with rebalancing. Can you find a rebalancing strategy that holds bonds that would outperform 100% stocks? If you can, let me know. I'm looking for outperformance. If I can achieve that outperformance while taking on less risk, then I will certainly do that. I'd be crazy not to Here you go. This is roughly my 401k investment "career". 1990 through 2015, roughly $1000 per month on average invested (in reality it was smaller in the beginning and larger in the end but I don't know how to do that in portfolio visualizer other than the "inflation adjusted" button). 60/40 with 5% rebalance bands o...
by why3not
Thu Jun 08, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 148
Views: 27479

Re: 100% Stock Portfolio?

TomCat96 wrote: Is there proof that such a strategy performs worse than 100% stocks?
I haven't found it yet. Play with the portfoliovisualizer tool with rebalancing. Can you find a rebalancing strategy that holds bonds that would outperform 100% stocks?

If you can, let me know. I'm looking for outperformance. If I can achieve that outperformance while taking on less risk, then I will certainly do that. I'd be crazy not to
Here you go.
This is roughly my 401k investment "career". 1990 through 2015, roughly $1000 per month on average invested (in reality it was smaller in the beginning and larger in the end but I don't know how to do that in portfolio visualizer).
60/40 with 5% rebalance bands outperformed 100% stocks
by why3not
Thu Jun 08, 2017 8:13 am
Forum: Personal Consumer Issues
Topic: Is it possible to only replace sections of a concrete driveway?
Replies: 21
Views: 11097

Re: Is it possible to only replace sections of a concrete driveway?

Lynette wrote: The problem is getting quotes.
Small (and often times partial) jobs typically aren't of interest to the larger, more recognizable companies. You may need to look at "handymen" or smaller general contractors.
by why3not
Thu Jun 08, 2017 7:34 am
Forum: Personal Consumer Issues
Topic: Is it possible to only replace sections of a concrete driveway?
Replies: 21
Views: 11097

Re: Is it possible to only replace sections of a concrete driveway?

Both concrete and asphalt can be replaced as sections or areas. There generally will be an appearance difference vs the older section. It is usually better on concrete to replace the whole section between expansion joints. Your contractor may look at the driveway and recommend more be replaced then you thought was needed. Get a couple of quotes/opinions & decide then.
by why3not
Thu Jun 08, 2017 7:24 am
Forum: Personal Finance (Not Investing)
Topic: How often do you redeem your credit card cash rewards?
Replies: 102
Views: 12727

Re: How often do you redeem your credit card cash rewards?

My discretionary spending is highly variable. My income is not. A couple times a year I get hit with a cc bill (usually after a major trip) that would require me to transfer $ out of my "high" yield savings account into my checking to pay off the cc bill. I redeem them to avoid having to do this.
by why3not
Thu Jun 08, 2017 6:56 am
Forum: Investing - Theory, News & General
Topic: HEHR-tolerance versus Loss Aversion--why setting and maintaining your own AA might be a mistake
Replies: 139
Views: 17859

Re: HEHR-tolerance versus Loss Aversion--why setting and maintaining your own AA might be a mistake

Research papers kick my ADD in & I usually avoid them & read the differing opinions on bogleheads to get the cliff notes version. That said, I haven't seen the HR part defined - what constitutes high rebalancing? 1x per year, 10x per year, every time the market moves 5%, other?

I will say that for those in the 100% stocks camp (I was for the first 1.5 decades of my "investing career"), it makes it easier to not have to think or rebalance & just keep plowing forward, which is of great benefit to many.
by why3not
Wed Jun 07, 2017 7:43 am
Forum: Personal Consumer Issues
Topic: My Wife is having our 5th child. What is an appropriately extravagant push gift?
Replies: 90
Views: 13708

Re: My Wife is having our 5th child. What is an appropriately extravagant push gift?

the joy of carrying the baby to term & (hopefully) delivering a healthy addition to your family?
by why3not
Wed Jun 07, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: KF's Worst Case Retirement Plan [KlangFool's]
Replies: 313
Views: 55048

Re: KF's Worst Case Retirement Plan [KlangFool's]

I confess I haven't read the entire thread, but when I consider my worst case (ie: being involuntarily unemployed for life), I usually include a scenario where I sell my house and move from my HCOLA to a LCOLA. I can sell my house, move about 30 miles inland and use the built up equity in my current home to buy a house way beyond my minimum needs in cash while decreasing my "basic life costs" by about $3k/month (getting rid of the mortgage is on top of that). If I moved back to where my wife and I grew up, a 1.5% withdrawal rate is in excess of what my parents get monthly from SSI & pension. This isn't palatable right now due to lifestyle changes I don't wish to make. It is easier to consider once the kids are out of the nest....
by why3not
Thu May 18, 2017 8:29 am
Forum: Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 72
Views: 11277

Re: Article: "Our emergency fund is exactly $0.00"

Remember 2008? -snip- How is a six month cash emergency fund looking now? This (basically) happened to my wife and I. I remember leading up to 2008 doing the same mental agonizing over the "drag" an emergency fund had on our returns... we had a big HELOC available, we had huge untapped credit cards waiting, we had healthy 401k balances & if the worst happened we could always cash in the equity in house by selling & move to a trailer in a rural area (or something). We were both "rock stars" at work, her at a fortune 50 & me at a mid to small company where I was a super rock star. The cash was such a waste of potential at that point in my life especially when compared to the 401k that were in 100% equities. Th...
by why3not
Thu May 18, 2017 7:04 am
Forum: Personal Consumer Issues
Topic: Keep paying for AC refrigerant when tech cannot find a leak
Replies: 20
Views: 3770

Re: Keep paying for AC refrigerant when tech cannot find a leak

Generally speaking dye capsules can be added to a R410a system, but you would need to double check with your equipment mfr to verify it won't impact the warranty. "Leak sealer" certainly will impact warranty and I would not add it until you are past the warranty period. Leaks can be hard to find especially ones buried in coils or that gets sealed when the manifold gauge set gets applied. 1 pound a year should be picked up easily by a detector... unless it is windy out. I know on my unit there was a bad braze joint that caused a leak... guess what? Even though the AC system was 1 year old & had a 5 year warranty, "field-made" joints to install weren't covered by the mfr or the installer. So there is a good chance your...
by why3not
Wed May 10, 2017 5:24 am
Forum: Personal Consumer Issues
Topic: First 100 mile bike ride
Replies: 51
Views: 5597

Re: First 100 mile bike ride

Any tips for a first timer from those who have done it already? Using board lingo, I'm well into the single common club riding "centuries" or "doubles". All of mine have been solo unsupported though, so I can't really give you a many specific tips. A couple of generics: 1) Enjoy. Remember to have fun & don't get too caught up in pushing for a good finish time. No matter when you finish (as long as you finish) you will be setting your personal best. 2) Nutrition & hydration are the key. Most folks who can stay in a saddle for 40+ miles can stay in one for 100 miles. The difference is the average cyclist will have a tough time over 60 miles without eating some calories. I usually suggest a 70+ mile bike ride befor...
by why3not
Fri Apr 28, 2017 6:19 am
Forum: Personal Consumer Issues
Topic: Recommendations - Swimming Pool - Solar Cover
Replies: 8
Views: 1786

Re: Recommendations - Swimming Pool - Solar Cover

I think you mean 8' to 3'.
I can say in the south, the blankets help quite a bit. We don't get the cool nights you get up there though, so I'm not sure it will translate. I don't put mine on after mid-May as pool temps get up above 85F from the ambinet/sun from there through the fall.
by why3not
Thu Apr 27, 2017 7:40 am
Forum: Personal Consumer Issues
Topic: Hourly rate for carpenter?
Replies: 15
Views: 2717

Re: Hourly rate for carpenter?

are you paying them to do work for you as a homeowner or are you hiring them as employees?

for a homeowner, the going rates in my city are about 2x what Saving$ posted
by why3not
Thu Apr 27, 2017 7:16 am
Forum: Personal Consumer Issues
Topic: When does it make sense to stop paying to repair your old vehicle?
Replies: 56
Views: 8012

Re: When does it make sense to stop paying to repair your old vehicle?

paint job sounds mostly cosmetic/elective, so I'm not sure I would include that in the repairs. your truck has 165k miles, the engine essentially 60k. I have only bought new for cash since my first car & each car or truck I've owned I've tipped 300k on the odometer, to me your truck is only halfway through its life. through the years I can't tell you how many times I've had well intended family/friends comment along the lines of 'you are putting so much $ into that vehicle, you would be further ahead buying new'. Most of these folks were carrying $500/month vehicle payments. My records show that I rarely paid over $1k/year in repairs or 1/6 what they were putting into thier rides a year. since it is your 3rd household car & you only...
by why3not
Thu Apr 27, 2017 6:31 am
Forum: Personal Investments
Topic: A checkup on my entire finance portfolio - am I on track?
Replies: 11
Views: 2152

Re: A checkup on my entire finance portfolio - am I on track?

Your immediate questions: 1) Hard to say. You need to figure out your desired AA & this is a very personal decision & one you may want to spend some time on. Lots of detail on the boards & in the wiki to help you decide what is right for you. This should be something you are convinced on, which is why you will want to spend some time on it. 2) Eh, not really anything to worry about. Whatever interest you make on it will be taxed at the max rate, so say you "earn" $100 for the year, after taxes you're getting $60 or less depending on your state rate. 3) First, 18k is your 401k limit, not 16k. You want to be maxing that out. After that, I personally would probably take a closer look at my 401k offerings. If you have a de...
by why3not
Thu Apr 13, 2017 7:17 pm
Forum: Personal Consumer Issues
Topic: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds
Replies: 18
Views: 3203

Re: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds

mrc wrote:He said they could ...

build a portfolio that could beat an S&P 500 fund by 3%

People assume they will ...

build a portfolio that always beats an S&P 500 fund by 3%

I could do the former too, but not the latter, and neither can they. Good thing for this forum.
+1
Difference between what someone says and what your mind filters what you hear.
by why3not
Wed Apr 05, 2017 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Secretly entered two comma club
Replies: 44
Views: 9567

Re: Secretly entered two comma club

First congrats on both fronts.

Second, you don't want to be that guy who forces himself, his wife and kids to live a life of a miser, only to die and his wife to discover they were multimillionaires, do you?
by why3not
Mon Apr 03, 2017 2:32 pm
Forum: Personal Consumer Issues
Topic: Weird house buying experience
Replies: 123
Views: 13352

Re: Weird house buying experience

(edit after finishing thread) So the builder-agent actually provided some sort of price list for a bunch of items and that price list later changed? And most of the changes were in the buyer's favor? What happens if that price list changes again in a month or 18? I think it was something more like: Here is base price (1,000,000) Here is price to upgrade bathroom countertops to granite ($1000) Here is price to upgrade bathroom sink to double vanity ($1500) Builder agent clicks all three boxes in his/her computer & price comes up as $1,002,500. Buyer negotiates price from that down to $950,000. Contract signed. Then buyer discovers that the double vanity automatically gets granite countertops, so the "true" list price should ha...
by why3not
Mon Apr 03, 2017 7:22 am
Forum: Personal Investments
Topic: Please provide guidance on portfolio
Replies: 13
Views: 1443

Re: Please provide guidance on portfolio

Ithrive wrote: Are you absolutely sure I can apply all $9k?? Tax act and all my reading has said it's $3k. Am I missing something?
Yes. You can only deduct NET $3k per year, but you can apply as much as available to offset your GROSS gains.
Example1: You have $9k of capital losses, you sell a fund for $4000 in gains, your net is (+4000-9000)= -$5000. You don't pay any cap gains tax, you are allowed to deduct $3000 this year and $2000 next year (assuming no other capital gains/loss moves)

Example 2: You have $9000 of capital losses, you sell a fund for $10000 in gains, your net is (+10000-9000) = $1000. You pay cap gains tax on $1000
by why3not
Mon Apr 03, 2017 7:22 am
Forum: Personal Investments
Topic: Please provide guidance on portfolio
Replies: 13
Views: 1443

Re: Please provide guidance on portfolio

Ithrive wrote: Are you absolutely sure I can apply all $9k?? Tax act and all my reading has said it's $3k. Am I missing something?
Yes. You can only deduct NET $3k per year, but you can apply as much as available to offset your GROSS gains.
Example1: You have $9k of capital losses, you sell a fund for $4000 in gains, your net is (+4000-9000)= -$5000. You don't pay any cap gains tax, you are allowed to deduct $3000 this year and $2000 next year (assuming no other capital gains/loss moves)

Example 2: You have $9000 of capital losses, you sell a fund for $10000 in gains, your net is (+10000-9000) = $1000. You pain cap gains tax on $1000
by why3not
Mon Apr 03, 2017 7:21 am
Forum: Personal Investments
Topic: Please provide guidance on portfolio
Replies: 13
Views: 1443

Re: Please provide guidance on portfolio

Ithrive wrote: I tried doing that color thing when copying but no luck.

Are you absolutely sure I can apply all $9k?? Tax act and all my reading has said it's $3k. Am I missing something?
Yes. You can only deduct NET $3k per year, but you can apply as much as available to offset your GROSS gains.
Example1: You have $9k of capital losses, you sell a fund for $4000 in gains, your net is (+4000-9000)= -$5000. You don't pay any cap gains tax, you are allowed to deduct $3000 this year and $2000 next year (assuming no other capital gains/loss moves)

Example 2: You have $9000 of capital losses, you sell a fund for $10000 in gains, your net is (+10000-9000) = $1000. You pain cap gains tax on $1000
by why3not
Mon Apr 03, 2017 5:40 am
Forum: Personal Consumer Issues
Topic: Weird house buying experience
Replies: 123
Views: 13352

Re: Weird house buying experience

Kosmo wrote:. You negotiated a price to pay, not a price discount.
+1
Builder and you came to agreement to build house containing all of Y specs to price X.
by why3not
Fri Mar 31, 2017 6:55 am
Forum: Personal Finance (Not Investing)
Topic: When do you plan to die?
Replies: 164
Views: 19221

Re: When do you plan to die?

dave_k wrote:I use 100 for planning purposes. When running simulations I'm OK with a few percent of failures after 90.
+1
by why3not
Fri Mar 31, 2017 6:43 am
Forum: Investing - Theory, News & General
Topic: Bankruptcy of Westinghouse Electric
Replies: 79
Views: 11920

Re: Bankruptcy of Westinghouse Electric

This will affect just about every person living in the states of South Carolina and Georgia. My understanding is that South Carolina Electric and Gas (SCE&G) (a division of SCANA) has been passing along a good portion of the nuclear project costs to their customers for years. Something like 30% rate increases to build the new reactors. Some of that is cost & some is that SCE&G is "allowed" to make 10% profit on their building costs. Since this is on the backs of their customers, they can voluntarily waive it & just charge the costs. Of course, to date, they haven't taken that option. I haven't been following it closely but my understanding is that SCE&G has been justifing this billing practice by touting futur...
by why3not
Fri Mar 31, 2017 6:42 am
Forum: Investing - Theory, News & General
Topic: Bankruptcy of Westinghouse Electric
Replies: 79
Views: 11920

Re: Bankruptcy of Westinghouse Electric

This will affect just about every person living in the states of South Carolina and Georgia. My understanding is that South Carolina Electric and Gas (SCE&G) (a division of SCANA) has been passing along a good portion of the nuclear project costs to their customers for years. Something like 30% rate increases to build the new reactors. Some of that is cost & some is that SCE&G is "allowed" to make 10% profit on their building costs. Since this is on the backs of their customers, they can voluntarily waive it & just charge the costs. Of course, to date, they haven't taken that option. I haven't been following it closely but my understanding is that SCE&G has been justifing this billing practice by touting futur...
by why3not
Thu Mar 30, 2017 10:19 am
Forum: Personal Investments
Topic: Sanity Check, or does it even matter if I'm sane?
Replies: 19
Views: 3003

Re: Sanity Check, or does it even matter if I'm sane?

TomatoTomahto wrote: Our annual burn rate, ex college expenses, taxes, and vacations, is maybe $80k per year. I expect that vacation/travel expenses will go up considerably when DW retires.
I can tell you my plan (if all goes well & no guarantee that I am sane): end my working days with about 25-30x in fixed income (excluding cash), 2-4x in cash & the remainder in equities.

So, my plan on your numbers would look like 2-2.5 million in bonds. So I looks like you have a plan similar to mine, so at least your insanity has company.
by why3not
Thu Mar 30, 2017 8:52 am
Forum: Investing - Theory, News & General
Topic: Stay the course, always?
Replies: 55
Views: 6570

Re: Stay the course, always?

No, you don't change your AA based on what the market is doing. That is market-timing. But no one knows the future with enough detail to do this successfully all the time. There are too many variables. These are the statements that get my inner curmudgeon riled up. The trick is to pick an AA that fits YOUR situation, that lets you sleep at night, that you can stick to in case there is a crash. Don't try to anticipate the next crash. But know there WILL be one, someday. So you should be prepared for it all the time, by picking an AA that meets your willingness, need, and ability to take risk. Because it could happen tomorrow. and soothed back down. I personally absolutely do react to what the market has done. But at the same time, I do it a...
by why3not
Thu Mar 30, 2017 8:07 am
Forum: Personal Consumer Issues
Topic: Keep two cars for one person to drive
Replies: 34
Views: 8625

Re: Keep two cars for one person to drive

Hi I like your answer, especially this part. "Your life is not a spreadsheet". I would suggest you focus on the "if the numbers are reasonable and you can manage 2 vehicles - why not" part of the answer. If the numbers are reasonable, ie you have no better use for the cash you could get for the Tacoma other than sitting in the parking lot most of the time, then go for it. I used to own 2 'cars' for me + 1 for my wife. Eventually I realized that I was mostly just driving my 2nd 'car' occasionally to keep the brakes etc from rusting up. I sold it, threw the cash into the newish (at the time) Vanguard Total Stock Index Fund & over the last 15+ years that has risen roughly 3X its starting point. The $ isn't (& wasn'...