Search found 183 matches

by B4Xt3r
Sat Mar 24, 2018 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: $35/month for washer dryer rental?
Replies: 37
Views: 3024

Re: $35/month for washer dryer rental?

I suppose that I should mention that I plan to buy a house after this. When one buys a house, how safe is it to assume that it will not come with a washer/dryer?
by B4Xt3r
Sat Mar 24, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: $35/month for washer dryer rental?
Replies: 37
Views: 3024

$35/month for washer dryer rental?

Hi All, I've got an apartment lease coming up that that I intend to stay at for ~3 years who are offering a washer dryer rental for $35/month, which I think is kind of high. Do you think that $35/month is a reasonable cost? I am wondering if I should just purchase my own washer/dryer in-unit. For ex...
by B4Xt3r
Thu Mar 01, 2018 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Short-term auto loans & credit score
Replies: 2
Views: 171

Short-term auto loans & credit score

Hi, I have a quick question. I'll have the option to pay cash for a new vehicle, or take out an auto loan briefly and then pay it the first month. Is the later preferable to a credit score perspective? My wife and I plan on having a mortgage in ~ two years, so obviously we want the best credit score...
by B4Xt3r
Wed Feb 07, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: 26yr old - Check Up - How am I doing?
Replies: 9
Views: 1557

Re: 26yr old - Check Up - How am I doing?

You guys are killing it for your age. Not many 24-26 year olds have this kind of awareness of their finances. I certainly didn't. I was 34 before I started to pay attention like this. Great work! I would not contribute to a taxable account though for savings for things like vehicles or house down p...
by B4Xt3r
Sun Feb 04, 2018 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Need help - first major career choice (fed. gov.)
Replies: 39
Views: 2697

Re: Need help - first major career choice (fed. gov.)

Honestly comparing something as varied as the Federal Government to the even more varied private sector is difficult without knowing the particulars. I worked as a civil servant but left after a few years and have never once regretted that decision. I moved to government contracting and then a rath...
by B4Xt3r
Sun Feb 04, 2018 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Need help - first major career choice (fed. gov.)
Replies: 39
Views: 2697

Re: Need help - first major career choice (fed. gov.)

LosFederales wrote:
Fri Feb 02, 2018 10:25 am
Don't overlook job security and the 40 hour week, which provides you with the ability to have a side grind.
I have to admit that this is part of the appeal.
by B4Xt3r
Sun Feb 04, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Need help - first major career choice (fed. gov.)
Replies: 39
Views: 2697

Re: Need help - first major career choice (fed. gov.)

As for whether the pension alone is worth the 20-30k, keep in mind that you are essentially paying slightly more than 4% of your income per annum to fund the pension. This pension may or may not receive a haircut in the future (let's hope not). Net all the other expenses of a place with higher cost...
by B4Xt3r
Sun Feb 04, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Need help - first major career choice (fed. gov.)
Replies: 39
Views: 2697

Re: Need help - first major career choice (fed. gov.)

In addition to the pension + TSP + social security retirement benefits noted above, the feds offer health insurance to retirees, which is practically unheard of in the private sector these days. Also, in addition to the paid annual leave (which starts at 4 hours per pay period, increases to 6 hours...
by B4Xt3r
Sun Feb 04, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Need help - first major career choice (fed. gov.)
Replies: 39
Views: 2697

Re: Need help - first major career choice (fed. gov.)

Valuethinker wrote:
Fri Feb 02, 2018 10:13 am
I think that this is good advice.

A career that begins relatively young in the US Federal civil service can build up some good long term benefits.
I think this is my impression.
by B4Xt3r
Sun Feb 04, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

Regarding OP comment "why do you not use the that same reasoning to buy the market proportion of bonds to bonds?" Most types of bonds are not available to purchase, other than something like a US Treasury. Try and purchase some random specific issue of a muni or a corporate bond, it may not be avai...
by B4Xt3r
Sun Feb 04, 2018 3:28 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

For me the biggest reason I don't go for "total market" between asset classes is that for the most part they serve different purposes and aren't all equally desirable/prudent for me. Plus I don't have anywhere to keep a race horse and I don't want any bit coins or baseball cards. I'm being a little...
by B4Xt3r
Sun Feb 04, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

So after reading all of the replies, I guess perhaps it comes down to wether or not one believes in factors like small and/or value...
by B4Xt3r
Sun Feb 04, 2018 3:21 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

Would you mind explaining why small cap value has lower efficiency? So, lets go through this step by step. This goes back to risk adjusted return. While holding risk constant, can I get a higher expected return? While holding expected return constant, can I build a portfolio with lower risk? Optimi...
by B4Xt3r
Fri Feb 02, 2018 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Need help - first major career choice (fed. gov.)
Replies: 39
Views: 2697

Need help - first major career choice (fed. gov.)

Hi all, I have a question for you all. I was offered a job to work with the federal gov, I'm hoping for some comments about the finances of such a job. I think it seems reasonable, but I'm curious if any of ya'll see something that I didn't catch. Some highlights: Location is rural, LCOL, I could fi...
by B4Xt3r
Tue Jan 30, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

I'm not thinking about "free" money, but rather a higher risk and therefore higher reward, regardless if it has a higher risk adjusted reward or not. Which portfolio would yo pick? Portfolio #1, high risk, high return, higher efficiency, lower fees. Portfolio #2, high risk, high return, lower effic...
by B4Xt3r
Tue Jan 30, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

TSM represents a cost-effective way to purchase securities according to the aggregate opinion of all active investors. Of course, there is much value to TSM. However, individuals are not "the average," so most individuals will not be well served by average opinion of all investors. Your logic elude...
by B4Xt3r
Tue Jan 30, 2018 10:31 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

However, individuals are not "the average," so most individuals will not be well served by average opinion of all investors. For example, most bogleheads actually agree with this when on a different subject, namely bonds/stock asset allocation (I think this would be roughly 30:70). They recommend t...
by B4Xt3r
Tue Jan 30, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

Is it legitimate for such a person to somewhat substantially tilt towards small cap/value? Why or why not? It is if you believe that there is a an anomaly that grants a premium to small cap / value. That is, if there is a defect in the market that is giving away free money. This is hotly debated ar...
by B4Xt3r
Tue Jan 30, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

My effort here is not a defense of TSM itself, but an argument that the analogy is not valid. Why the analogy doesn't fit: Debt and equity are more meaningfully different than the differences between large cap or small cap, for example. Debt is an obligation whereas equity is a residual. Corporate ...
by B4Xt3r
Tue Jan 30, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

One issue I see is to tilt somewhere (low cap stocks e.g.), you lower the overall exposure to the market. By definition you're leaning away from the average. This increases your risk, but if you're reaching for higher return, obviously you accept more risk. In your hypothetical example, someone nee...
by B4Xt3r
Tue Jan 30, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

^ Mind flushing out why you believe the stock to bond choice is not analogous to the TSM to (TSM + tilt) choice? One potential answer I've told myself before is that when an institution decides how to fund itself, a lot more factors come into play than just the potential terms of a stock or bond is...
by B4Xt3r
Mon Jan 29, 2018 10:36 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

^ Mind flushing out why you believe the stock to bond choice is not analogous to the TSM to (TSM + tilt) choice?
by B4Xt3r
Mon Jan 29, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6609

TSM believers, defend thyself! (In a good natured, friendly debate.)

Hi All, Disclosure: I am a boglehead who invests in TSM. However, for the sake seeing how well I understand the argument for investing in TSM, I am currently taking the opposing view. I want to make sure that I can say, "I understand," before I say, "I disagree" with those who tilt. The following is...
by B4Xt3r
Thu Jan 11, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?
Replies: 13
Views: 3574

Re: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?

How about non-school education related expenses. For example, if the students go to public school but are enrolled in private programs such as kumon, etc. (weekly classes, for example) can those fees be covered by the 529 funds? The relevant language in the statute is: ‘‘(A) expenses for tuition in...
by B4Xt3r
Thu Jan 11, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?
Replies: 13
Views: 3574

Re: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?

How about non-school education related expenses. For example, if the students go to public school but are enrolled in private programs such as kumon, etc. (weekly classes, for example) can those fees be covered by the 529 funds? The relevant language in the statute is: ‘‘(A) expenses for tuition in...
by B4Xt3r
Sat Jan 06, 2018 9:34 am
Forum: Investing - Theory, News & General
Topic: Donating appreciated securities to charity
Replies: 8
Views: 451

Re: Donating appreciated securities to charity

Sidney wrote:
Sat Jan 06, 2018 9:10 am
livesoft wrote:
Sat Jan 06, 2018 9:06 am
Make sure shares you donate have been held more than one year. Read up on Donor-Advised Funds for more things you should know.
Does this matter if not itemizing?
I thought that it would not matter since I am just trying to avoid tax on the short/long term cap. gains that have accrued.
by B4Xt3r
Sat Jan 06, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: Donating appreciated securities to charity
Replies: 8
Views: 451

Donating appreciated securities to charity

Hi All, I was planning on donating appreciate securities to charity this year from a taxable brokerage account I will not be itemizing, but I will get a reset in cost basis, correct? Is there anything that I should know about? (This is my first time donating appreciated securities.) See: https://per...
by B4Xt3r
Sat Jan 06, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?
Replies: 13
Views: 3574

Re: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?

How about non-school education related expenses. For example, if the students go to public school but are enrolled in private programs such as kumon, etc. (weekly classes, for example) can those fees be covered by the 529 funds? The relevant language in the statute is: ‘‘(A) expenses for tuition in...
by B4Xt3r
Sat Dec 30, 2017 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Using 529 for grade school- help with strategy
Replies: 45
Views: 4223

Re: Using 529 for grade school- help with strategy

^ I could see that being argued. Although I have more to add. A less common definition of tuition is apparently essentially schooling. If one uses this definition, then “expenses for tuition” makes more sense. If one understands tuition rather as the dollars paid for schooling than “expenses for tui...
by B4Xt3r
Fri Dec 29, 2017 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Using 529 for grade school- help with strategy
Replies: 45
Views: 4223

Re: Using 529 for grade school- help with strategy

Interestingly, based on the new law, it seems that public school book fees could be covered by the 529 plan. “(7) TREATMENT OF ELEMENTARY AND SECONDARY TUITION.—Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in con...
by B4Xt3r
Fri Dec 29, 2017 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 55890

Re: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]

Yes, it's in the wiki. See: Outline of tax law changes (Part IV: Education) There's an on-going discussion: Using 529 for grade school- help with strategy I had a question concerning wether or not non-tuition expenses at public elementary/secondary schools are now "qualified educational expenses" t...
by B4Xt3r
Wed Dec 20, 2017 12:23 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

You can get a "rule of thumb" for which is best by just looking at where you are true value wise after the first year. The simple algebra gives you: If (.15)r_s > r_b - r_m Then bonds go in taxable, otherwise stocks go in taxable. I'm a little confused. Why is the individual investors marginal tax ...
by B4Xt3r
Wed Dec 20, 2017 11:13 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

You can get a "rule of thumb" for which is best by just looking at where you are true value wise after the first year. The simple algebra gives you: If (.15)r_s > r_b - r_m Then bonds go in taxable, otherwise stocks go in taxable. I'm a little confused. Why is the individual investors marginal tax ...
by B4Xt3r
Mon Dec 18, 2017 10:33 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

Thank you very much for the analysis! I think this answers the original question quite adequately. :sharebeer
by B4Xt3r
Fri Dec 15, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

I think what you care is minimizing the total amount of tax paid, which is rate*taxable income. It is not as simple as that. Tax paid is not the right metric either. Money you have in the end is the right metric. There are some very simple examples of paying more tax but ending up with more money i...
by B4Xt3r
Fri Dec 15, 2017 12:55 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

Stocks are intrinsically more tax efficient than bonds, therefore it makes sense to generally place bonds in tax advantaged accounts, rather than stocks (assuming one cannot put both). Stock gains come mostly in the form of capital gains that the long term investor can choose to keep unrealized and...
by B4Xt3r
Fri Dec 15, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

I'm beginning to question the rule of thumb that stocks should always be in taxable account. There is no such rule of thumb. I don't know where people are getting this idea...you are certainly not the first. If it is from our Wiki page, it needs to be edited. The rule of thumb is more like... "Fill...
by B4Xt3r
Fri Dec 15, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

The advice to put stocks, rather than bonds, into taxable accounts come straight from the Wiki . If investors are trying to minimize their taxes, then this strategy is fine. But if their strategy is to maximize their after-tax wealth, it is probably sub-optimal. The White Coat Investor has demonstr...
by B4Xt3r
Fri Dec 15, 2017 12:46 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

One can make some simple assumptions; an idealized version of reality, so to speak. All stocks dividends are qualified and stocks do not distribute cg. All bonds dividends are taxed at marginal rate and all return is from dividends. Yearly stock return is a few % higher than bonds on average. Inves...
by B4Xt3r
Fri Dec 15, 2017 12:45 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

retiredjg wrote:
Mon Dec 11, 2017 7:06 am
kehyler wrote:
Sun Dec 10, 2017 4:51 pm
[*]Given the above to points, isn't it reasonably straightforward to calculate which placement should yield the most after tax return?
...
If we assume 100% Roth, then doesn't the discussion simplify greatly?
by B4Xt3r
Fri Dec 15, 2017 12:43 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

No, I don't think so. You need to know also: 1. Amount of tax-loss harvesting 2. Tax rates of contributions 3. Tax rates of withdrawals 4. Tax rates of qualified dividend income 5. Tax rates of non-qualified dividend income 6. Foreign tax credit things 7. Roth conversion things 8. RMD things 9. And...
by B4Xt3r
Sun Dec 10, 2017 4:51 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Re: Stocks always in taxable for tax efficient investing?

Hi Guys, I hadn't realized quite the topic that I started. A few comments: Let's assume that I have already taken full advantage of my tax advantaged space Let's assume that bonds and stocks yield their historic average (for the sake of the calculation, i'll use Simba's backtesting sheet) of 8.8% an...
by B4Xt3r
Sat Dec 09, 2017 10:43 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7765

Stocks always in taxable for tax efficient investing?

Hi All, I'm beginning to question the rule of thumb that stocks should always be in taxable account. I agree that it minimizes your tax rate (in percentage) but thats not what we actually care about, correct? Don't we care about minimizing the total principal we pay to the gov (i.e. tax rate * tax i...
by B4Xt3r
Wed Nov 29, 2017 7:24 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle Says ‘Avoid Bitcoin Like the Plague’
Replies: 214
Views: 27011

Re: Jack Bogle Says ‘Avoid Bitcoin Like the Plague’

I remember a buddy buying Dow Corning at $110, because fiber optics were the "future of the internet" and growth was "unlimited". I personally bought at about $80 on the way up, and $70 on the way down. "GLW" was my personal lesson on "I don't know squat about any individual company/sector". It cou...
by B4Xt3r
Thu Nov 23, 2017 9:01 am
Forum: Investing - Theory, News & General
Topic: Vanguard Equivalents in new TDA commission free list
Replies: 11
Views: 1726

Re: Vanguard Equivalents in new TDA commission free list

SPDW + SPEM seems OK, but the average market cap is higher than with VXUS. This can be addressed by adding in some DGS, too. For instance, 80% SPDW, 15% SPEM, and 5% DGS looks more similar to 100% VXUS when using morningstar.com's instant X-ray tool. This is true, I hadn't run my thoughts through x...
by B4Xt3r
Thu Nov 23, 2017 8:30 am
Forum: Investing - Theory, News & General
Topic: Vanguard Equivalents in new TDA commission free list
Replies: 11
Views: 1726

Re: Vanguard Equivalents in new TDA commission free list

Also, just for completeness I realized that there is also a decent way to replicate VXUS, namely 0.8*SPDW +0.2*SPEM. Of course, if anyone has any advice, I'll have open ears. :sharebeer
by B4Xt3r
Wed Nov 22, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Equivalents in new TDA commission free list
Replies: 11
Views: 1726

Re: Vanguard Equivalents in new TDA commission free list

For replacing VSS, that would be correct, though you shouldn't hold either in taxable due to capital gains distributions. On the other hand, you shouldn't worry about the expense ratio directly, as both funds have such extensive securities lending revenues that they routinely run negative expense r...
by B4Xt3r
Wed Nov 22, 2017 10:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard Equivalents in new TDA commission free list
Replies: 11
Views: 1726

Re: Vanguard Equivalents in new TDA commission free list

Ok, I think that I have an idea of some specifics. For BSV, online from vanguard it says that it is 64.1% treasury, so then BSV could perhaps be approximated by 0.641*SPTS + 0.359*SPSB? I will probably just forgo the VSS replacements because of their expense ratios. For completeness sake though. VSS...
by B4Xt3r
Mon Nov 20, 2017 8:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard Equivalents in new TDA commission free list
Replies: 11
Views: 1726

Vanguard Equivalents in new TDA commission free list

Hi All, I posted this in the large thread but I fear that thread is too noisy a discussion. I am wondering what is the best equivalent of BSV, VSS, and BNDX. For BSV, is it some combination of SPSB/SPTS? For VSS, is it some combination of GWX/EWX? For BNDX, is it IAGG? Thanks! -kehyler Commission fr...