Search found 67 matches

by MWormwood
Wed Nov 28, 2018 2:32 pm
Forum: Personal Consumer Issues
Topic: Charity in the accumulation phase- Now vs. Later
Replies: 24
Views: 1049

Re: Charity in the accumulation phase- Now vs. Later

I'll give it to you straight: You should give something now (to get in the habit), but I think 1-10% of income would be a fine start. For background, I am at a similar age and have had similar thoughts. What I've currently come to is an aim to contribute 5% of earned income per year. Then if all goe...
by MWormwood
Wed Jan 24, 2018 4:57 pm
Forum: Personal Investments
Topic: Sanity check on fees
Replies: 18
Views: 1535

Re: Sanity check on fees

Are these fees typical for the growth I have gotten? 0.75% AUM fee is typical, but is much higher than the 0.00% you could be paying if you did it yourself, with support and education on this site. In calculating the cost of fees, it's good to include opportunity cost. If you didn't pay that .75% e...
by MWormwood
Wed Jan 24, 2018 4:23 pm
Forum: Personal Investments
Topic: Please help with Retirement Income questions.
Replies: 8
Views: 984

Re: Please help with Retirement Income questions.

Question 1. I can take my SS this year at 62 at 1800/mo, (2350 at 66), (3100 at 70). Take it or wait? If you live until your actuarial average, they'll come out about the same, I think. The longer you live, the more value you'll get by waiting. Are you more worried about dying soon and not getting ...
by MWormwood
Wed Jan 17, 2018 12:02 pm
Forum: Personal Investments
Topic: Which to Max First: 401k or HSA?
Replies: 13
Views: 2772

Re: Which to Max First: 401k or HSA?

You should definitely contribute enough to a 401(k) to get the match, and enough to an HSA to cover your medical needs. Those are the no-brainers. Beyond that, either is good. Some pros and cons: - which has lower cost investment options? - which has lower fees? - HSA pro: You avoid FICA payroll tax...
by MWormwood
Thu Dec 21, 2017 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Roth v 401k (new tax changes)
Replies: 27
Views: 3425

Re: 401k Roth v 401k (new tax changes)

I’m going to split and do some trad 401k and some Roth 401k. It looks like I’ll be in the 24% bracket with 15% effective- I’m hedging 15% is better then I’ll get in retirement 25+ years from now The marginal rate is what is relevant, not the effective rate. https://www.kitces.com/blog/understanding...
by MWormwood
Thu Dec 21, 2017 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Roth v 401k (new tax changes)
Replies: 27
Views: 3425

Re: 401k Roth v 401k (new tax changes)

Hm, thanks for the info thus far. What if I changed the rules given the following statement. Given current tax rate and future tax rate are equal ---AND--- I know that my investment in the 401k (or 401k Roth) were to grow 20 times in size. So, I invest $24,500 (2018 maximum amount with catch up) - ...
by MWormwood
Thu Dec 21, 2017 3:45 pm
Forum: Personal Investments
Topic: Introducing Myself, Seeking Retirement Advice
Replies: 18
Views: 2956

Re: Introducing Myself, Seeking Retirement Advice

1st priority: contribute to 403(b) enough to get maximum match 2nd priority: contribute more to 403(b) or IRA. The tax benefits are basically the same, so it usually comes down to fees and fund choices. If you don't have low fee (say, ER < .1%) index funds in your 403(b), then do the IRA first. If y...
by MWormwood
Tue Dec 19, 2017 3:54 pm
Forum: Personal Investments
Topic: Tax Question & Cost Basis Method (Vanguard)
Replies: 6
Views: 624

Re: Tax Question & Cost Basis Method (Vanguard)

1. Basically, just keep an eye out for that form from VG. 2. If you have foreign stocks, you can deduct foreign tax paid, but it doesn't sound like you're talking about a ton of money yet, so this probably won't be the trigger to start itemizing. EDIT: as noted by others, foreign tax credit doesn't ...
by MWormwood
Fri Dec 08, 2017 1:04 pm
Forum: Personal Consumer Issues
Topic: Please suggest a dry hands product
Replies: 82
Views: 5114

Re: Please suggest a dry hands product

Glysomed.

No odor, works great, and gets fully absorbed in a couple minutes so it's not greasy and you don't need to put socks over your hands. I haven't tried O'Keeffe's, but Glysomed works way better than the handful of normal moisturizers I've tried before.
by MWormwood
Tue Dec 05, 2017 12:46 pm
Forum: Personal Investments
Topic: Does this constitute a wash sale, and is Vanguard's cost basis accounting correct?
Replies: 20
Views: 1598

Re: Does this constitute a wash sale, and is Vanguard's cost basis accounting correct?

I would consider it a wash sale. A purchase fee may increase your basis or reduce the shares you receive, but in the end, you've purchased and are holding VTEAX shares that are not just substantially identical to your VTEB shares, but identically identical. Brokers are only obligated to report wash...
by MWormwood
Tue Dec 05, 2017 12:29 pm
Forum: Personal Investments
Topic: Asset allocation across accounts: Twist?
Replies: 23
Views: 2178

Re: Asset allocation across accounts: Twist?

I may need those funds not just for emergencies but other possibilities, such as some other investments, buying property, starting a business, etc. If my taxable account is in one asset class, it's more at risk for being diminished. If it was spread across other asset classes, I'd have some protect...
by MWormwood
Mon Dec 04, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: LifeStrategy Fund vs 6-Fund Portfolio
Replies: 9
Views: 1536

Re: LifeStrategy Fund vs 6-Fund Portfolio

I ask this for two reasons. From a tax perspective, it would be better for her to draw money from the short-term bond funds first, as to not incur major capital gains. A LifeStrategy find does not seem to be tax efficient. Is it possible for some people to enact a more tax-efficient strategy than u...
by MWormwood
Wed Nov 29, 2017 6:20 pm
Forum: Personal Consumer Issues
Topic: Older Software Engineer Advice ~ Languages?
Replies: 41
Views: 4484

Re: Older Software Engineer Advice ~ Languages?

You might find https://insights.stackoverflow.com/survey/2017#technology interesting. I think there's a trade-off. On the one hand, you're more likely to maintain your compensation level if you find a company that values the experience you have. On the other hand, developing expertise in new technol...
by MWormwood
Mon Nov 27, 2017 4:06 pm
Forum: Investing - Theory, News & General
Topic: Dropping Term Life Insurance When Hitting Your Number
Replies: 30
Views: 4722

Re: Dropping Term Life Insurance When Hitting Your Number

I'd ask your wife--She can have $104/mos for spending now while you are alive, or she can have you insured for $500K in case you die. +1. Overall, the relationship aspect is more important than the financial aspect at this point, imo. Others in this thread have covered the financial pros and cons.
by MWormwood
Thu Nov 16, 2017 5:31 pm
Forum: Personal Investments
Topic: What to do with my Taxable Equity Portfolio to be used as a Bridge in 3 Years?
Replies: 6
Views: 724

Re: What to do with my Taxable Equity Portfolio to be used as a Bridge in 3 Years?

Welcome! If you moved $300K from equities to something safer (short-term bonds, CDs, etc.) for the bridge period, that'd be about $81K of capital gains, taxed at 15% (assuming they are *long-term* capital gains), for a cost in taxes of $12,162.16 by my math (please double-check and/or run your numbe...
by MWormwood
Fri Nov 10, 2017 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Various HSA Questions
Replies: 9
Views: 1115

Re: Various HSA Questions

The HSA is in my name for family coverage (myself plus kids). Megacorp won’t cover my husband because he has employer coverage. He does not have HDHP available and does not have an HSA. So I can contribute the “family” contribution of 6900 (right?). Nope. Whether you can contribute the individual o...
by MWormwood
Fri Nov 10, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Alway contribute to HSA if incurring medical expenses?
Replies: 10
Views: 1354

Re: Alway contribute to HSA if incurring medical expenses?

A different question on HSA, I want to max out my HSA space as much as possible. If I have my family insured under my employer (high deductible plan), and I contribute to an HSA, can my husband contribute to his HSA with his employer even though he's under my health insurance? He can make contribut...
by MWormwood
Fri Nov 10, 2017 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Various HSA Questions
Replies: 9
Views: 1115

Re: Various HSA Questions

The HSA is in my name for family coverage (myself plus kids). Megacorp won’t cover my husband because he has employer coverage. He does not have HDHP available and does not have an HSA. So I can contribute the “family” contribution of 6900 (right?). Nope. Whether you can contribute the individual o...
by MWormwood
Fri Nov 03, 2017 4:57 pm
Forum: Investing - Theory, News & General
Topic: the One investment to rule them all?
Replies: 25
Views: 3997

Re: the One investment to rule them all?

LifeStrategy Aggressive (80/20). Or if you can't take the heat, LS Moderate (60/40) +1 for what fund to pick. Link: https://investor.vanguard.com/mutual-funds/lifestrategy/#/mini/overview/0122 As for how much, a 2% SWR probably makes sense at age 21, so about 2.5M. Except... I'd also say that your ...
by MWormwood
Fri Nov 03, 2017 4:46 pm
Forum: Personal Investments
Topic: How many funds do I need?
Replies: 21
Views: 2480

Re: How many funds do I need?

Welcome to Bogleheads! To have a market-weighted exposure to all stocks in the United States, you only need one fund--a total stock index fund, like VTSAX. To include bonds and international stocks, you could also get by with one fund. For example, one of these: https://investor.vanguard.com/mutual-...
by MWormwood
Fri Nov 03, 2017 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Alway contribute to HSA if incurring medical expenses?
Replies: 10
Views: 1354

Re: Alway contribute to HSA if incurring medical expenses?

I currently have an HSA as part of a HDHCP, but haven't made any contributions past those that my employer makes. I have incurred a few thousand dollars in medical expenses this year and have paid them out of pocket, with the idea that I want to let my HSA money grow. However, since I'm not maxing ...
by MWormwood
Fri Oct 27, 2017 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Annual enrollment time, trying to decide on Dependent Care FSA
Replies: 9
Views: 648

Re: Annual enrollment time, trying to decide on Dependent Care FSA

I probably would contribute as much as you're sure you're going to pay. (i.e. If the earliest you could move is 2/1, then contribute one month's expenses. If you could move as early as 1/1, don't contribute anything.) One consolation is that if you don't use the Dependent Care FSA, you can claim the...
by MWormwood
Tue Oct 24, 2017 5:35 pm
Forum: Personal Investments
Topic: Rebalance Question
Replies: 4
Views: 816

Re: Rebalance Question

Desired Stock / Bond ratio = 80 / 20 Current ratio = 85.1 / 14.9 I also have a target asset allocation, and I rebalance when I am out of whack by 5%. So, if you're looking for permission to do the same, you'll get it from me! Although... I also only rebalance twice a year at specific times. This is...
by MWormwood
Fri Oct 20, 2017 11:33 am
Forum: Investing - Theory, News & General
Topic: Cumulative cost of fees (check my work)
Replies: 1
Views: 329

Cumulative cost of fees (check my work)

Hi all! Fees have a big impact on your performance. That's not news. But the most compelling story I've heard on that topic was about how an advisor can actually end up with more earnings than you do! I couldn't find the post, so I tried to recreate the math. Please check my work. Overall, while a 2...
by MWormwood
Thu Sep 28, 2017 5:31 pm
Forum: Personal Investments
Topic: Prioritizing investments - 401(k), HSA, Roth, or Trad IRA?
Replies: 16
Views: 2363

Re: Priotizing investments - 401(k), HSA, Roth, or Trad IRA?

There are two no-brainers, imo: 1. Contribute enough to the 401(k) to get the full match (if any). 2. Contribute enough to the HSA to cover your anticipated medical expenses for the year. After that, you'll get different opinions about which of your options is best for additional savings, but the th...
by MWormwood
Fri Aug 11, 2017 9:45 pm
Forum: Personal Investments
Topic: Gameplan to 100k
Replies: 12
Views: 2062

Re: Gameplan to 100k

Welcome! You sound new to investing and that you value simplicity. You can get way more detailed advice and learn a lot about investing here, but if you don't want to, a reasonable default is vanguard's balanced index fund. Vanguard won't rip you off, the fund includes a weighted balance of most us ...
by MWormwood
Sun May 14, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Forgoing Better Job just to Vest in 401k
Replies: 14
Views: 1847

Re: Forgoing Better Job just to Vest in 401k

If you'll enjoy life more in the new job, take it! Period. If you need a financial rationale, I think a salary increase of $12K is worth more than $12k in a 401k, since that salary increase is potentially permanent for the rest of your career. You could run some numbers, but you're young, so I would...
by MWormwood
Sat Mar 25, 2017 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: How much life insurance?
Replies: 20
Views: 3089

Re: How much life insurance?

I agree you don't *need* that much life insurance until you actually have the mortgage and kids... But you should buy it now while you qualify for cheap rates. Your potential gain by waiting is small--best case, you could avoid a couple years of affordable premiums. Your potential risk in waiting is...
by MWormwood
Sat Mar 11, 2017 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Need guidance on my path to FI
Replies: 6
Views: 1272

Re: Need guidance on my path to FI

Welcome! You're doing a good job by meeting the 401k match, also using an IRA, and prioritizing the loan. I agree you could cut out those funds with high ERs, and your student loan is low enough I don't think you need to pay any more than the minimum. At least not until the car loan is done. It's ha...
by MWormwood
Sat Feb 04, 2017 5:56 pm
Forum: Personal Investments
Topic: Stock gifted to me as a kid. Sell or hold?
Replies: 21
Views: 2771

Re: Stock gifted to me as a kid. Sell or hold?

I think you understand the pros and cons so it's a personal choice. I would say option 2 and 3 are the ones to look at. And the deciding factor would be whether you think the advantage of diversification is worth the tax hit. There is a tax cost to selling, but there's risk in keeping that money in ...
by MWormwood
Wed Nov 09, 2016 10:49 pm
Forum: Personal Investments
Topic: 29 year old investor, looking for guidance
Replies: 6
Views: 1043

Re: 29 year old investor, looking for guidance

Looks like a classic Boglehead plan. Nice work. Suggestions so far are also reasonable. Up to you whether you want more simplicity with the 3 fund or not.

Setting up a good plan is the easy part. Sticking to it over the ups and downs of the next 40 years is the hard part.

Best of luck!
by MWormwood
Wed Nov 02, 2016 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Question About Beneficiary in a Will
Replies: 9
Views: 1806

Re: Question About Beneficiary in a Will

The risk of them squandering it is real, but it's probably quite unlikely your children will predecease you, so I wouldn't worry that much about it. I think your options are: 1. Leave it to them given they reach age X. 2. Leave it to them, but with more strings attached. This is sometimes called "ru...
by MWormwood
Wed Oct 26, 2016 3:07 pm
Forum: Personal Investments
Topic: Lowest HSA Fees
Replies: 25
Views: 5610

Re: Lowest HSA Fees

I hadn't seen HSA Authority and SelectAccount but they seem reasonable. Any gotchas? Dead cash requirements? Other fees? How easy is it to enroll? What is it like transferring from another HSA? It looks like they've got a few good funds (you really only need one), amongst a few dozen bad ones. Ther...
by MWormwood
Wed Oct 26, 2016 9:52 am
Forum: Personal Investments
Topic: Are these "claimed" investment returns realistic
Replies: 28
Views: 2799

Re: Are these "claimed" investment returns realistic

Those returns are statistically unlikely, and there are plenty of games the advisor could be playing that would make them not accurately represent actual performance (not including fees, only looking at some subset of assets invested, not including reinvestment of dividends, ponzi scheme, etc.) But ...
by MWormwood
Mon Oct 24, 2016 8:22 pm
Forum: Personal Investments
Topic: Financial advice for a 20 year old
Replies: 94
Views: 10662

Re: Financial advice for a 20 year old

That's a fine plan! Since it sounds like you can execute the plan and stick to it, I don't think you need an advisor. If you have more questions or need encouragement to stick with the plan, come on back here!
by MWormwood
Thu Oct 13, 2016 8:26 pm
Forum: Personal Investments
Topic: Financial advice for a 20 year old
Replies: 94
Views: 10662

Re: Financial advice for a 20 year old

You are not being overly critical. Ditch this advisor.
by MWormwood
Thu Oct 13, 2016 3:20 pm
Forum: Personal Investments
Topic: Open a Roth IRA for my wife or contribute more to a taxable account?
Replies: 10
Views: 1442

Re: Open a Roth IRA for my wife or contribute more to a taxable account?

One note: since you are near the income cut-off for Roth, you could consider waiting until the first quarter of 2017 to make your Roth contribution for 2016. As long as you do it by tax day, it can still count for 2016. Upside: By this time, you'll know for sure whether you're under the income limit...
by MWormwood
Thu Oct 13, 2016 2:57 pm
Forum: Investing - Theory, News & General
Topic: Auto Investing How often and when?
Replies: 23
Views: 2497

Re: Auto Investing How often and when?

The biggest enemy of a good plan is the quest for a perfect plan.

IMO, any of those frequencies, with any randomly chosen day of the month or time of day is good enough.
by MWormwood
Thu Oct 13, 2016 11:25 am
Forum: Personal Investments
Topic: Confusion on withdrawl of contributions from a roth 401k vs Roth IRA
Replies: 5
Views: 629

Re: Confusion on withdrawl of contributions from a roth 401k vs Roth IRA

rkhusky wrote:The 401K has better protection from creditors and court judgements.
That's true. There are also special rules for 401(k)s for things like hardship withdrawals/loans/etc., which vary by employer.
by MWormwood
Thu Oct 13, 2016 10:32 am
Forum: Personal Investments
Topic: Confusion on withdrawl of contributions from a roth 401k vs Roth IRA
Replies: 5
Views: 629

Re: Confusion on withdrawl of contributions from a roth 401k vs Roth IRA

You are correct that withdrawing contributions from a Roth IRA is simpler than from a Roth 401(k). For the Roth IRA, the only question is IRS rules, and you are correct that you can withdraw contributions first without penalty. For a Roth 401(k), there are IRS rules and also rules specific to your p...
by MWormwood
Thu Oct 13, 2016 10:20 am
Forum: Investing - Theory, News & General
Topic: Retirees: Where are you going for income?
Replies: 102
Views: 21096

Re: Retirees: Where are you going for income?

It sounds like you're thinking about "income investing" rather than "total return" investing. I think more people on Bogleheads subscribe to "Total Return", in which you don't focus on dividends/interest, because it's a distraction from what really matters: overall portfolio performance and the sust...
by MWormwood
Thu Oct 13, 2016 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Why is college savings compared to retirement?
Replies: 62
Views: 6420

Re: Why is college savings compared to retirement?

Retirement and college are the two biggest items in the "savings" mental bucket. And if you're saving in a 529 instead of in a 401(k), you're probably "doing it wrong" (aka not achieving the optimal outcome). Of course you can reduce expenses to put more in the savings bucket. But if you're doing th...
by MWormwood
Wed Oct 12, 2016 11:36 am
Forum: Personal Investments
Topic: Can someone pressure test my thinking
Replies: 16
Views: 2350

Re: Can someone pressure test my thinking

I live in Ma. and get no tax advantage by enrolling in a 529. I also think i get better flexibility with a non 529 account, in case we decide not to live in the US in the future. I am in immigrant :). Financially, I hope that my returns outpace the impact of taxes on gains and rebalancing. The 529 ...
by MWormwood
Tue Oct 11, 2016 1:57 pm
Forum: Personal Investments
Topic: Can someone pressure test my thinking
Replies: 16
Views: 2350

Re: Can someone pressure test my thinking

Any asset allocation plan that you can follow outside of a 529 you can also follow inside of a 529. So why don't you want to use a 529 plan? That glide path looks fairly normal, but if you don't have your assets in a 529, you'll pay taxes on gains when you rebalance. Are you sure the extra taxes ar...
by MWormwood
Mon Oct 10, 2016 5:04 pm
Forum: Personal Investments
Topic: Financial advice for a 20 year old
Replies: 94
Views: 10662

Re: Financial advice for a 20 year old

received about 850k, in which they used 750k to purchase two annuities (2k a month starting at age 5 and 21, compounded 3% annually ) and left 100k in a bank account. For the last 15 years this account has been controlled by a company. However, this past summer I finally chose to part with said com...
by MWormwood
Mon Oct 10, 2016 2:16 pm
Forum: Personal Investments
Topic: When to switch my 401k investment? (Newbie!)
Replies: 25
Views: 2222

Re: When to switch my 401k investment? (Newbie!)

Both target series offer what matters most : each offers extremely low cost, highly diversified, sophisticated and complete portfolios that keep investing simple. Would that we were all so fortunate. Both divide the portfolios roughly between the need for stocks vs. bonds, then divide the stocks be...
by MWormwood
Sun Oct 09, 2016 5:20 pm
Forum: Personal Investments
Topic: AA question with lousy 401(k)
Replies: 17
Views: 1630

Re: AA question with lousy 401(k)

I agree with nyc10036. I don't think you need to change your asset allocation because you're planning on moving funds from the 403b to an IRA. That is not similar to cashing out for a down payment or something, in which case the typical approach is to get more conservative. That isn't to say your AA...
by MWormwood
Sun Oct 09, 2016 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Am I at risk for a wash sale?
Replies: 10
Views: 1524

Re: Am I at risk for a wash sale?

You could also consider stopping the automatic reinvestment of dividends, and just reinvest manually 30+ days after any transactions. This does affect your simplicity a little, but there should not be tax consequences since this is in a taxable account and you're getting taxed on dividends even if y...
by MWormwood
Sat Oct 08, 2016 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Am I at risk for a wash sale?
Replies: 10
Views: 1524

Re: Am I at risk for a wash sale?

If you have shares to sell for a gain, the wash sale rule doesn't apply. Of course, the downside is that you pay taxes on the gains. If the gains are small, though, maybe that's no big deal.
by MWormwood
Fri Oct 07, 2016 5:10 pm
Forum: Personal Investments
Topic: Is it a good time to buy Total Bond Index (SCHZ) ?
Replies: 18
Views: 2561

Re: Is it a good time to buy Total Bond Index (SCHZ) ?

What is your current percentage bond allocation? Will this be a change in percentage allocation, or just a change in the fund/ETF being used? The Advisor that I was using had me at 80 % Stock 20 % Bonds. I was not comfortable with that so I'm changing it to 60 % Stock 40 % Bonds. Based on the limit...