Search found 315 matches

by absolute zero
Tue Jul 14, 2020 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Helping our Adult Child Buy a Home
Replies: 58
Views: 3472

Re: Helping our Adult Child Buy a Home

Consider fully funding your future grandchildrens' college tuition. That would be less invasive and still help your daughter/SIL financially. +1 I would feel weird if my parents offered to just start giving me cash or paying for my house. It would feel icky to me. That’s just me though. For whateve...
by absolute zero
Fri Jul 10, 2020 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: pension vs long commute
Replies: 27
Views: 2334

Re: pension vs long commute

Something sounds off. I have a DB pension with my current employer. Perhaps it’s below average, but using its formula, it would take a $400k income from age 60 to age 65 in order to get a pension benefit with an NPV of $500k (as the OP described) in only 5 years. To calculate, I got a quote for an a...
by absolute zero
Sat Jun 27, 2020 4:20 pm
Forum: Investing - Theory, News & General
Topic: Investing vs working
Replies: 67
Views: 5250

Re: Investing vs working

OP said "over the course of a lifetime" so I think it's pretty clear that OP is referring to (A). Klangfool, you are incorrect - scenario A can most definitely be accomplished. Not by the average American, but certainly by many bogleheads. "Winning the lottery" is not needed. An example: 5% real ra...
by absolute zero
Sat Jun 27, 2020 4:04 pm
Forum: Investing - Theory, News & General
Topic: Investing vs working
Replies: 67
Views: 5250

Re: Investing vs working

ohboy!, You are wrong! A) The portfolio size is 1.4 million aka 1.4 million in investment. It is the number in the second column. B) The person had made 2m in income. C) The person has saved 35K x 20 years = 700K D) The person's investment return over 20 years is another 700K E) The portfolio of 1....
by absolute zero
Sat Jun 27, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: Investing vs working
Replies: 67
Views: 5250

Re: Investing vs working

I’ve been thinking of some divide between an investor class and a working class. Those whose assets accrue wealth compared to those who only labor for their money. It made me think, will a diligent investor make more on their assets than they will on their labor over the course of a lifetime? I wou...
by absolute zero
Sat Jun 27, 2020 9:22 am
Forum: Investing - Theory, News & General
Topic: How does rule 72t work?
Replies: 17
Views: 2100

Re: How does rule 72t work?

Read this on ways to access retirement funds early: https://www.madfientist.com/how-to-access-retirement-funds-early/ 72t aka SEPP should be a last resort, because it's almost totally inflexible. Once started you have to maintain it until age 59.5 (and minimum of 5 years). If you "break" it, the pe...
by absolute zero
Sat Jun 27, 2020 8:54 am
Forum: Investing - Theory, News & General
Topic: Asymmetric risk in the Roth vs Traditional question
Replies: 280
Views: 11569

Re: Asymmetric risk in the Roth vs Traditional question

On the other hand, if the level of retirement savings underfunds one's retirement or has little or no margin of error, then overfunding the Roth space increases the risk of running out of funds and decreases after tax retirement assets. I don't think it is possible to have too much trad space if as...
by absolute zero
Fri Jun 26, 2020 8:02 pm
Forum: Investing - Theory, News & General
Topic: Asymmetric risk in the Roth vs Traditional question
Replies: 280
Views: 11569

Re: Asymmetric risk in the Roth vs Traditional question

I like to think of Roth vs traditional as wind while running a race. If you commit to traditional for most of your career, it’s like running the race with a tailwind that switches to a headwind the moment that you cross the finish line. Roth is the exact opposite. Traditional narrows the range of ou...
by absolute zero
Thu Jun 25, 2020 5:37 pm
Forum: Investing - Theory, News & General
Topic: 4% Rule and annuities
Replies: 35
Views: 2627

Re: 4% Rule and annuities

Read most of the thread but I do not understand the OP’s intent. OP - are you asking a question? If so, what specifically is the question? You mentioned 4% rule and you mentioned annuity rates for young people. But the only question I saw in the original post was “what gives?” Or are you making an a...
by absolute zero
Sat Jun 20, 2020 11:57 am
Forum: Personal Investments
Topic: How's my Asset Allocation? - 28 year old
Replies: 29
Views: 2240

Re: How's my Asset Allocation? - 28 year old

You can trade ETFs for free anywhere now, including Schwab. So if you really, really want to keep SCV, buy IJS or VBR. However, if you were my kid, I would recommend you ditch both SCV and REIT, and just stay with VTI and VXUS. 100% equities is what I would recommend as well. The important part is ...
by absolute zero
Fri Jun 19, 2020 6:40 pm
Forum: Personal Investments
Topic: What to do with a Variable Annuity?
Replies: 8
Views: 643

Re: What to do with a Variable Annuity?

People have it backwards. The annuity is inside an IRA, the IRA is not inside an annuity. Since the annuity IRA has not been annuitized you should be able to roll over it into any other IRA. Neither of the posters that responded to the OP said that the IRA is inside an annuity. They said the opposi...
by absolute zero
Thu Jun 18, 2020 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Disappointed in Fidelity 2% Cash Back credit card
Replies: 167
Views: 10105

Re: Disappointed in Fidelity 2% Cash Back credit card

You are aware that Citibank has a free 2% cashback card right? Fidelity is not the only option. Technically, Citi double cash is slightly less than 2% if one gets statement credit as 1% for purchase and 1% for paying the credit card. So a statement credit reduces the balance and hence reduces the r...
by absolute zero
Wed Jun 17, 2020 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: When does purchasing Umbrella Insurance Coverage makes sense?
Replies: 97
Views: 5966

Re: When does purchasing Umbrella Insurance Coverage makes sense?

I guess i am having difficulty understanding when one can consider their assets are significant, I do not own a home and as I mentioned NW is only around ~3X salary. Why does how much person's current assets makes any difference in deciding if they need umbrella insurance or not if lawsuits can be ...
by absolute zero
Wed Jun 17, 2020 10:31 am
Forum: Personal Finance (Not Investing)
Topic: How much umbrella insurance?
Replies: 146
Views: 7600

Re: How much umbrella insurance?

I have umbrella insurance currently, but our NW has increased significantly and I'm trying to determine if we need more. The cost goes up quick as the coverage increases. Something along the lines of: $5M - $700/year. $140 $10M - $2700/year $270 $15M - $4700/year $313 $20M - $6700/year $335 I was s...
by absolute zero
Tue Jun 16, 2020 7:39 am
Forum: Personal Investments
Topic: Questions on Mega Backdoor Roth
Replies: 46
Views: 2275

Re: Questions on Mega Backdoor Roth

I’d put the after-tax dollars in bonds (and adjust your remaining portfolio accordingly to maintain constant AA target). The upside to investing the money in stocks is reduced due to the effect of taxes and the 10% penalty. The downside, however is not reduced. You don’t get a tax refund and a 10% ...
by absolute zero
Mon Jun 15, 2020 11:48 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 33906

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Didn’t read the whole thread, but the OP’s argument sounds like a variant of the concept of the sunk cost fallacy. Costs already incurred in the past should have zero bearing on investment decisions made in the present. In the same way, whether a person inherited $100k in cash or built up $100k wor...
by absolute zero
Mon Jun 15, 2020 11:28 pm
Forum: Personal Investments
Topic: Questions on Mega Backdoor Roth
Replies: 46
Views: 2275

Re: Questions on Mega Backdoor Roth

I’d put the after-tax dollars in bonds (and adjust your remaining portfolio accordingly to maintain constant AA target). The upside to investing the money in stocks is reduced due to the effect of taxes and the 10% penalty . The downside, however is not reduced. You don’t get a tax refund and a 10% ...
by absolute zero
Mon Jun 15, 2020 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Prenup? What Should It Say?
Replies: 232
Views: 11527

Re: Prenup? What Should It Say?

The only thing I would consider in taking the position that not only your original account value of $1 million should be protected in a prenup but also the gains would be the following scenarios. Hey, I have a million dollars so I don’t really need to save as much (or anything) in the shared marita...
by absolute zero
Mon Jun 15, 2020 12:09 pm
Forum: Personal Consumer Issues
Topic: Need Landline Phone with "Parental Controls" for 90 yo
Replies: 19
Views: 1604

Re: Need Landline Phone with "Parental Controls" for 90 yo

What about something like this? https://www.vtechphones.com/design-technology/connect-to-cell I didn’t study it too closely but it sounds like it could work since everyone points out that the issue can be managed with a cell phone (only receive calls from contacts) but not a landline. Well, this sys...
by absolute zero
Mon Jun 15, 2020 6:42 am
Forum: Personal Finance (Not Investing)
Topic: Prenup? What Should It Say?
Replies: 232
Views: 11527

Re: Prenup? What Should It Say?

I would have all your current, pre-marital assets at one brokerage. And now that the kid is here, establish all accounts at a NEW brokerage, so it's easy to see what was yours alone, vs. what is created since you had a kid together. For the "old" assets, never contribute to those accounts again - y...
by absolute zero
Sun Jun 14, 2020 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Asset protection strategies
Replies: 31
Views: 2531

Re: Asset protection strategies

Thanks for the additional replies. I read through the Wiki again (I did so a few years ago). It sounds like I have already taken the most basic steps to protect our assets. It seems that there is a quite a lot of state-specific variation, so I appreciate that point and will probably need to get a l...
by absolute zero
Sun Jun 14, 2020 11:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard projects 10 year returns: TSM 6.5% Int'l 9.5%
Replies: 120
Views: 11558

Re: Vanguard projects 10 year returns: TSM 6.5% Int'l 9.5%

It really is strange that they would generate a forecast in late March and then wait 2+ months before publishing the article. By my math, with S&P500 ~2600 in late March and now at 3000, their real US equity forecast drops from 5% real down to 3.5% real. Pretty big difference. I'm not in the indust...
by absolute zero
Sun Jun 14, 2020 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Prenup? What Should It Say?
Replies: 232
Views: 11527

Re: Prenup? What Should It Say?

Ependytis wrote:
Sun Jun 14, 2020 12:51 pm
Note, with a prenup you do not need to pay alimony however you will still pay child support regardless.
Prenups might address alimony. Or they might not. They are contracts, and every one of them is different.
by absolute zero
Sat Jun 13, 2020 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Prenup? What Should It Say?
Replies: 232
Views: 11527

Re: Prenup? What Should It Say?

<< Anyway, with this situation, is a prenup advised and if yes, what should it say? Does already having a child together impact things? Does me paying 100% of expenses before marriage impact things?>> Disclaimer: I’m not a lawyer. It depends on your state, but in many states you can make a prenup sa...
by absolute zero
Sat Jun 13, 2020 10:44 pm
Forum: Personal Investments
Topic: Aftertax to Roth IRA conversion: which one of these two options is better?
Replies: 14
Views: 922

Re: Aftertax to Roth IRA conversion: which one of these two options is better?

I’d suggest you do a search for previous threads on megabackdoor Roth, and quickly scan each thread for any posts written by a forum member named Alan S. He’s posted in most MBDR threads (and will probably post here if he sees it). Based on the level of detail in his posts regarding accounting rules...
by absolute zero
Sat Jun 13, 2020 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Prenup? What Should It Say?
Replies: 232
Views: 11527

Re: Prenup? What Should It Say?

The fact that your girlfriend’s mom gave you her opinion on prenups sounds super weird. I’d be fighting the urge to interrupt her and tell her to buzz off. Regardless, I’d suggest that you research and learn everything you can about Maryland divorce law. I cannot say whether you should get a prenup,...
by absolute zero
Sat Jun 13, 2020 12:44 pm
Forum: Personal Investments
Topic: Pricey 403b Options: Which fund should we choose?
Replies: 4
Views: 350

Re: Pricey 403b Options: Which fund should we choose?

Thanks lakpr for the detailed analysis. I took the method that you described and recreated it in a spreadsheet. It helped me to play around with the different assumptions to confirm that the pre-tax 403b (with slightly higher expense ratio) beats a taxable account as well as a Megabackdoor Roth for ...
by absolute zero
Sat Jun 13, 2020 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Asset protection strategies
Replies: 31
Views: 2531

Re: Asset protection strategies

Check out the wiki if you haven’t already.

https://www.bogleheads.org/wiki/Asset_protection
by absolute zero
Sat Jun 13, 2020 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Paying Off Home Early
Replies: 25
Views: 2858

Re: Paying Off Home Early

So if OP wanted to “beat” the mortgage payoff option, would the hypothetical alternative investment need to deliver a 3.375% real return or nominal return?
by absolute zero
Fri Jun 12, 2020 11:57 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 33906

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Didn’t read the whole thread, but the OP’s argument sounds like a variant of the concept of the sunk cost fallacy. Costs already incurred in the past should have zero bearing on investment decisions made in the present. In the same way, whether a person inherited $100k in cash or built up $100k wort...
by absolute zero
Fri Jun 12, 2020 7:35 pm
Forum: Personal Investments
Topic: Pricey 403b Options: Which fund should we choose?
Replies: 4
Views: 350

Pricey 403b Options: Which fund should we choose?

My fiancée accepted a job with a new employer that offers a 403b. She was sent the following options by the Transamerica rep: https://i.postimg.cc/s2pV6Q3C/708817-A2-5-EEF-406-F-BE95-7-AA14-E6-D936-C.png A few questions: 1) I am thinking we’ll just use her 403b for the bond portion of our AA since i...
by absolute zero
Fri Jun 12, 2020 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella policy: is it worth it?
Replies: 10
Views: 1044

Re: Umbrella policy: is it worth it?

If all of your assets are protected, what’s the point? To protect your future earnings from being garnished? I’m (assuming) you will work for no more than other 10 years. And only a portion of those earnings could even be garnished. Sounds to me like it’s not needed. EDIT: I apparently didn’t have t...
by absolute zero
Thu Jun 11, 2020 10:41 pm
Forum: Personal Consumer Issues
Topic: In-wall pest control tubes to inject pesticides?
Replies: 9
Views: 840

Re: In-wall pest control tubes to inject pesticides?

I didn’t realize these types of systems exist. I imagine they are pretty effective. I wouldn’t worry about the chemical thing if I were in your shoes. When I was younger I would periodically bomb the inside of my entire house. I don’t do that anymore - kinda freaks me out. But in between the walls? ...
by absolute zero
Thu Jun 11, 2020 8:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard projects 10 year returns: TSM 6.5% Int'l 9.5%
Replies: 120
Views: 11558

Re: Vanguard projects 10 year returns: TSM 6.5% Int'l 9.5%

It really is strange that they would generate a forecast in late March and then wait 2+ months before publishing the article. By my math, with S&P500 ~2600 in late March and now at 3000, their real US equity forecast drops from 5% real down to 3.5% real. Pretty big difference.
by absolute zero
Wed Jun 10, 2020 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE-when, your decision making process
Replies: 36
Views: 3244

Re: FIRE-when, your decision making process

Ok I'll ask, what does FIRE mean? Financially Independent Retire Early (...now "early" is poorly defined; some use FRA while others suggest before 62 (earliest SS claiming age) is sufficiently early to qualify.) Every time I read what FIRE stands for I cringe. adverb + adjective + verb + adverb A g...
by absolute zero
Wed Jun 10, 2020 10:48 am
Forum: Personal Investments
Topic: When can you withdraw from the Mega Backdoor Roth?
Replies: 46
Views: 2777

Re: When can you withdraw from the Mega Backdoor Roth?

One has to wonder if that is what Fidelity has in mind. They have started to offer an automatic almost instant rollover from after-tax to Roth 401k. They've made it so attractive and easy that everybody wants to do it and there is no reason not to. This has likely made things simpler for them in th...
by absolute zero
Tue Jun 09, 2020 3:17 pm
Forum: Personal Investments
Topic: Need a separate Roth IRA account for rollovers from a retirement plan?
Replies: 5
Views: 599

Re: Need a separate Roth IRA account for rollovers from a retirement plan?

It definitely couldn’t hurt. I have done the mega backdoor Roth process twice now. Unfortunately, both times I rolled the money to the same Roth IRA to which I make my normal $6k contributions. It wasn’t until a few months ago that I learned of the protection that extended to rollover IRA’s. For fut...
by absolute zero
Mon Jun 08, 2020 10:57 pm
Forum: Personal Investments
Topic: When/if to introduce bonds? 30yo retiring at 40
Replies: 48
Views: 3766

Re: When/if to introduce bonds? 30yo retiring at 40

OP, I find your posts interesting considering that I’m the same age, same portfolio size, same spending, nearly same AA (I’m 85/15) and nearly the same income. That being said, I work in an unstable job/industry, so I’d considerate myself extremely fortunate if I hit FI in my early 40’s. Remind me, ...
by absolute zero
Mon Jun 08, 2020 7:35 pm
Forum: Investing - Theory, News & General
Topic: How does TLH harvesting help?
Replies: 22
Views: 1108

Re: How does TLH harvesting help?

I don't get TLH. Let's say I have $10,000 today, which will return +200% some time in future. Assumptions: - There will be a 50% loss event to TLH. - I am in the 32% tax bracket during my working years, and at retirement I'm at 22%. - This means that LT capital gains tax is 15% now and at retiremen...
by absolute zero
Mon Jun 08, 2020 1:08 pm
Forum: Investing - Theory, News & General
Topic: A different approach to asset allocation
Replies: 1498
Views: 713525

Re: A different approach to asset allocation

... To get comfortable with the ups and downs, for planning purposes, I have started to focus on the dividend payout rather than the asset value. That's not to say I'm reaching for yield, but rather view the 3-4% yield on my ETFs (mostly value and international) as a sustainable withdrawal rate and...
by absolute zero
Mon Jun 08, 2020 1:02 pm
Forum: Personal Investments
Topic: Can someone explain to me how bonds could possibly be used for any sort of significant income or gains?
Replies: 50
Views: 3611

Re: Can someone explain to me how bonds could possibly be used for any sort of significant income or gains?

02nz wrote:
Mon Jun 08, 2020 11:42 am
Think of bonds and stocks as different roles on a team - just because the goalkeeper never scores a point, doesn't mean you'll do just fine without the goalkeeper.

Super simplistic, but a decent analogy. I might steal that. :beer
by absolute zero
Mon Jun 08, 2020 12:14 pm
Forum: Personal Investments
Topic: Advice on my AA? 30% stocks / 70% gold
Replies: 22
Views: 1056

Re: Advice on my AA? 30% stocks / 70% gold

70% of your portfolio in an extremely volatile asset with an expected real return of 0? Yikes. No thanks. I’ll be surprised if a single person on this forum calls your proposed investment strategy reasonable. Some will advocate small positions in gold as a diversifier (eg 10 or 20%). But 70%??? That...
by absolute zero
Sun Jun 07, 2020 11:14 pm
Forum: Investing - Theory, News & General
Topic: How does TLH harvesting help?
Replies: 22
Views: 1108

Re: How does TLH harvesting help?

Only change you should make is to take the $1600 in scenario 2 and increase it because it will be invested for 2 or 3 decades, depending upon your age. And don’t forget that you can get a step up in basis upon death, if that matters to you. The value is greater for those in the 10 or 12% brackets in...
by absolute zero
Sun Jun 07, 2020 10:21 pm
Forum: Personal Consumer Issues
Topic: Used cars
Replies: 45
Views: 4391

Re: Used cars

Seriously, save and buy new. Then drive it into the ground for the next 20 yrs. I've done used cars almost my whole life, fixing repairing, maintaining. Today's cars are not shade tree mechanic friendly. Tooooo much "stuff" to go wrong. $$$ Get a small cheap NEW puddle jumper with a good warranty a...
by absolute zero
Sun Jun 07, 2020 9:33 pm
Forum: Personal Investments
Topic: Haven't been sleeping well.. thinking of getting super conservative with AA
Replies: 69
Views: 7285

Re: Haven't been sleeping well.. thinking of getting super conservative with AA

There is nothing wrong with moving towards a more conservative allocation, as long as you understand the implications. It will almost certainly mean you have to work more years before retiring, possibly a good number more. It will put you into an allocation that most would call “extremely conservati...
by absolute zero
Sun Jun 07, 2020 9:26 pm
Forum: Personal Investments
Topic: Haven't been sleeping well.. thinking of getting super conservative with AA
Replies: 69
Views: 7285

Re: Haven't been sleeping well.. thinking of getting super conservative with AA

Target date funds don’t hold a fixed AA. They start off aggressive (eg 90% stocks) and gradually move towards something conservative (eg 30% stocks). I’d suggest you explore vanguards life strategy funds. They have a 60/40 fund (60% stocks) as well as a 40/60 fund (40% stocks). By investing in one ...
by absolute zero
Sun Jun 07, 2020 9:15 pm
Forum: Personal Investments
Topic: Haven't been sleeping well.. thinking of getting super conservative with AA
Replies: 69
Views: 7285

Re: Haven't been sleeping well.. thinking of getting super conservative with AA

Target date funds don’t hold a fixed AA. They start off aggressive (eg 90% stocks) and gradually move towards something conservative (eg 30% stocks). I’d suggest you explore vanguards life strategy funds. They have a 60/40 fund (60% stocks) as well as a 40/60 fund (40% stocks). By investing in one o...
by absolute zero
Sun Jun 07, 2020 9:09 pm
Forum: Investing - Theory, News & General
Topic: How many stocks beat the market?
Replies: 7
Views: 799

Re: How many stocks beat the market?

Check out Ben Felix’s video in which he specifically discusses this very topic. https://m.youtube.com/watch?v=AecvTErBQY8 He cites a study by JPMorgan in 2014 which claims that 67% of the companies that have made up the Russell 3000 trailed the index from 1980 to 2014. What’s worse, 40% of the compa...
by absolute zero
Sun Jun 07, 2020 7:31 pm
Forum: Investing - Theory, News & General
Topic: A different approach to asset allocation
Replies: 1498
Views: 713525

Re: A different approach to asset allocation

... To get comfortable with the ups and downs, for planning purposes, I have started to focus on the dividend payout rather than the asset value. That's not to say I'm reaching for yield, but rather view the 3-4% yield on my ETFs (mostly value and international) as a sustainable withdrawal rate and...
by absolute zero
Sun Jun 07, 2020 6:52 pm
Forum: Personal Consumer Issues
Topic: Used cars
Replies: 45
Views: 4391

Re: Used cars

Raymond wrote:
Sun Jun 07, 2020 6:10 pm
We still don't know OP's budget.
Not only that, but OP only wrote one sentence.

One sentence with zero numbers/context spurred 30+ posts on bogleheads.