Search found 4106 matches

by aristotelian
Thu Jun 21, 2018 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: [100% stock, uncomfortable with international]
Replies: 15
Views: 678

Re: [100% stock, uncomfortable with international]

I have an underweight international allocation, about 25% of stock, just in case US becomes the next Japan. For what it's worth, international beat US last year.
by aristotelian
Thu Jun 21, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement myth
Replies: 14
Views: 1086

Re: Early retirement myth

I get irritated with anything preachy or self-promotional. Could be about early retirement, or working until you're 70. Personally, I am very interested in early retirement and financial independence, but bad writing is bad writing.
by aristotelian
Thu Jun 21, 2018 9:10 am
Forum: Investing - Help with Personal Investments
Topic: Bar Mitzvah Money Investing Ideas
Replies: 14
Views: 962

Re: Bar Mitzvah Money Investing Ideas

Showing him what happened to his GE stock could be a great lesson.
by aristotelian
Thu Jun 21, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: help, inheritance of $3.5M, read & read BogleH, & still in the dark
Replies: 25
Views: 2771

Re: help, inheritance of $3.5M, read & read BogleH, & still in the dark

Before jumping on the home, think carefully about your future expenses. You want to make sure your portfolio can cover your needs and lifestyle in retirement. A general rule of thumb is that you want to have 25 times your annual expenses. Expenses include taxes, health care, etc. If you drop $1M on ...
by aristotelian
Thu Jun 21, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Is a Donor Advised Fund worth it? (Strategy)
Replies: 16
Views: 755

Re: Is a Donor Advised Fund worth it? (Strategy)

If you spend the contributions to the DAF quickly, the fees will be negligible. Even if you don't, it could be years before they catch up to the double tax benefit (deduction plus free capital gains). You should do the math to figure your expected tax benefit vs the fees of your preferred DAF. The m...
by aristotelian
Wed Jun 20, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: should my parents start a roth ira when 60 years old?
Replies: 8
Views: 802

Re: should my parents start a roth ira when 60 years old?

Sure. They may have 20 years of growth ahead of them. Do they have earned income?
by aristotelian
Wed Jun 20, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Stock Investments questions and advice?
Replies: 7
Views: 481

Re: Stock Investments questions and advice?

In addition to what others have said, you should understand that any time you transact (buy or sell), you will be charged a fee. If you buy and hold for 10 years, that should not cost you anything after your initial purchase. However, instead of buying and selling individual stocks, you should be aw...
by aristotelian
Wed Jun 20, 2018 10:53 am
Forum: Personal Finance (Not Investing)
Topic: New HSA provider Lively offers investments for $30/yr fee
Replies: 261
Views: 36398

Re: New HSA provider Lively offers investments for $30/yr fee

Hello, My wife's employer just started offering HSA HDHP and she is to choose her own HSA custodian. I set her up with Lively to find out that they do not receive direct deposits. Does anyone on here use lively anyway, by taking the contribution to a savings account then contributing from there to ...
by aristotelian
Tue Jun 19, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: HSA working for a small company
Replies: 4
Views: 250

Re: HSA working for a small company

She can set up her employer HSA (using just the savings account) and then transfer the money to Lively herself. Alternatively, she may be able to talk to HR or her payroll service and set up direct deposit with Lively.
by aristotelian
Tue Jun 19, 2018 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Am I on track to retire at 55?
Replies: 24
Views: 2390

Re: Am I on track to reitre at 55?

Without knowing your expenses it’s impossible to tell. That said, retiring early usually requires a really high savings rate He said $1800 per month. Going by the 25X annual expense rule of thumb, he needs about $540K (real). So he is more than halfway there with 20 years to go. I'd say he is in go...
by aristotelian
Tue Jun 19, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Calculating safe withdrawal rate (dialing it back)
Replies: 8
Views: 1230

Re: Calculating safe withdrawal rate (dialing it back)

General rule of thumb is you want at least 25X expenses, but that is for a traditional 30 year retirement. You probably want closer to 30X expenses. If I understand correctly, your $200-$250K expenses is before the rental income, so your portfolio has to generate $150-$200K annually. (If your wife i...
by aristotelian
Tue Jun 19, 2018 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Lost job. Take early SS or draw from accounts?
Replies: 54
Views: 5798

Re: Lost job. Take early SS or draw from accounts?

Q: Is she better off taking early SS and supplementing from her tax deferred/taxable or drawing down her accounts and waiting until FRA for SS? Q: She was an admin assistant. Any recommendations for jobs for someone who can’t walk or stand with very basic office skills? Q: Any other suggestions? If...
by aristotelian
Tue Jun 19, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Messy Divorce -- Forensic Accounting Help....
Replies: 120
Views: 9676

Re: Messy Divorce -- Forensic Accounting Help....

I am sure she has already spent the money. From a recovery standpoint, it is gone. Also, any interest it may have earned is likely trivial, otherwise you would have seen a 1099. In any case, maybe the IRS will come knocking for a few hundred dollars at most. I doubt it. Gifts from parents to kids in...
by aristotelian
Mon Jun 18, 2018 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Help From Cruel Stepmother
Replies: 15
Views: 2471

Re: Trust Help From Cruel Stepmother

Call your local Probate court. The records should all be public in part to give you an opportunity to contest. You may be able to do a search on their website.

Agree with others that you should probably retain an attorney. There may be nothing you can do but at least you can try.
by aristotelian
Mon Jun 18, 2018 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Diversify within Roth account?
Replies: 14
Views: 928

Re: Diversify within Roth account?

I have 100% of my international in taxable so that I can get the tax credit for foreign taxes withheld. Our Roth accounts are 100% U.S. stock. You could do one account in U.S. and one in international. Or who knows, maybe your bet will turn out right. It was right last year.
by aristotelian
Mon Jun 18, 2018 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Having a hard time pulling the trigger...
Replies: 25
Views: 2353

Re: Having a hard time pulling the trigger...

A windfall can change your need, ability, and willingness to take risk. You now need $250K less than you did yesterday in order to achieve your goals. I think it is fine if you want to invest the money conservatively and review your allocation. When in doubt, diversify.
by aristotelian
Mon Jun 18, 2018 12:00 pm
Forum: Personal Consumer Issues
Topic: Where to purchase an used clarinet for a student - Amazon vs. store?
Replies: 14
Views: 697

Re: Where to purchase an used clarinet for a student - Amazon vs. store?

My kid was forced to do band and randomly chose clarinet. I found a cheapie model on Amazon that had good reviews, and then got a used version of it on Ebay, then took it to the local shop to get tuned. I think it was about $40. It sounds like your kid is somewhere in between my kid and prodigy leve...
by aristotelian
Mon Jun 18, 2018 11:11 am
Forum: Personal Finance (Not Investing)
Topic: What is the largest charitable action you have performed in your life?
Replies: 10
Views: 792

Re: What is the largest charitable action you have performed in your life?

Spent three years on the board of a local nonprofit. Huge timesuck.
by aristotelian
Mon Jun 18, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3666

Re: A different theoretical view of SWR

Without making the assumption that past market returns can predict future market returns over the period of an individual‘s retirement, how could you make such a statement? You are also making an assumption. You are assuming zero (not negative) real return. I am assuming positive but below average ...
by aristotelian
Mon Jun 18, 2018 7:55 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3666

Re: A different theoretical view of SWR

OP, why is the assumption of zero real return any more safe than the assumption of positive return? Also, how do you determine the number of years without taking some longevity risk? Do you count Social Security? Because there is a non-zero risk that the US government will implode and your SS will b...
by aristotelian
Mon Jun 18, 2018 7:31 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3666

Re: A different theoretical view of SWR

Doesn't all the discussion about safe withdrawal rates for 30 or 40 years become mute once you reach 70.5 and the government starts mandating your withdrawal rate from your TIRA or 401K? At 70.5 you must withdraw .0365% and by 73 your at .0405% and it continues to increase from there regardless of ...
by aristotelian
Sun Jun 17, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 36
Views: 4591

Re: I-bonds look pretty bad right now

Bad compared to what? Is there any investment under the sun that offers guaranteed real return after taxes and inflation? They are favorable compared to savings accounts, money market funds, and 1 year CD. They are savings bonds designed to preserve their value. If you want return, you have to take ...
by aristotelian
Sun Jun 17, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate "fun money" per year?
Replies: 35
Views: 2537

Re: How to calculate "fun money" per year?

What is "fun money"? I do not believe in spending money frivolously as any expenditure prolongs working and comes at the expense of charitable contributions.
by aristotelian
Sun Jun 17, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: What do you sell after the emergency fund?
Replies: 25
Views: 1484

Re: What do you sell after the emergency fund?

I would have to consider a change to my IPS, as not having a job would change my need, ability, and willingness to take risk. My inclination would be to spend from bond but don't rebalance to my original allocation until I have a job. Also, I would mow lawns or drive Uber to cover expenses if I could.
by aristotelian
Sun Jun 17, 2018 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: VOHIX vs VMMXX for fixed income in Ohio
Replies: 4
Views: 326

Re: VOHIX vs VMMXX for fixed income in Ohio

VOHIX duration is 7 years not 17 years. It is labelled as long term, but apparently long term has different meanings for Treasury and muni. I treat it as an intermediate bond fund and have about 1 years expenses in it. I also use VMMXX as my emergency fund. It is a money market fund, basically for h...
by aristotelian
Sun Jun 17, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1297

Re: Take Advantage of Stable Value Fund?

As far as I can tell, as long as the duration of the bond fund is somewhat lower than your investment horizon, generally speaking bond fund holders tend to benefit in rising rate environments from rising yields more than they are hurt by falling prices. This article explains it pretty well. For an ...
by aristotelian
Sun Jun 17, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Getting Inheritance-Portfolio Advice Needed
Replies: 5
Views: 332

Re: Getting Inheritance-Portfolio Advice Needed

You might do some reading on withdrawal rates and judge for yourself whether your portfolio can sustain $100K spending. With mid-7 figures you should be just fine. https://earlyretirementnow.com/2016/12/ ... t-1-intro/
by aristotelian
Sun Jun 17, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab Independent Franchise
Replies: 25
Views: 1701

Re: Schwab Independent Franchise

I got a call from a Schwab rep a couple days after opening my account there. Politely told him I did not need his services due to simple index fund approach. Never heard from him again. If you feel you are getting harassed/pressured, talk to the branch manager and make sure it doesn't happen. Just b...
by aristotelian
Sun Jun 17, 2018 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1297

Re: Take Advantage of Stable Value Fund?

LT Treasury is pretty unusual for your bond allocation. Are you aware of the duration risk? I have access to TIAA Traditional in my plan which I use for a portion of my bond/fixed income allocation, however the yield is 4%. Personally I would not do the Stable Value with only 2.2% yield. That is bar...
by aristotelian
Sun Jun 17, 2018 9:13 am
Forum: Personal Consumer Issues
Topic: Standard buyer's remorse or poorly timed enlightenment?
Replies: 40
Views: 3455

Re: Standard buyer's remorse or poorly timed enlightenment?

Agree with others not to sell. Buying a home is extremely stressful and you don't want to be making decisions based on emotion. Keep in mind that your salary will grow over time with inflation and promotions, but your mortgage rate is locked in. The first few years are going to be the toughest but i...
by aristotelian
Sun Jun 17, 2018 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax Strategy
Replies: 7
Views: 1020

Re: Capital Gains Tax Strategy

Does your (typical) ordinary income place you in the 0 or 20 LTCG bucket? If not it’s pay me now or pay me later in that you will get hit for 15% now or later If you can use losses against income that may be preferable (assuming income tax rate is greater than your LTCG rate) You may not have to pa...
by aristotelian
Sun Jun 17, 2018 7:15 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2481

Re: Why is risk adjusted return important?

If you have a high risk tolerance, it may not be important to you. If you value lower volatility, you have to accept lower total returns. However, by holding non-correlated assets, you can achieve lower volatility while minimizing the hit to your overall return. There certainly are Bogleheads who ar...
by aristotelian
Sun Jun 17, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: CD ladders vs bond funds
Replies: 5
Views: 825

Re: CD ladders vs bond funds

Why are you holding bonds? If you are seeking stability rather than income/return, consider weighting short term bonds that will be less sensitive to interest rate changes. Vanguard Short Term Bond Index has not had a single negative total return year since 2003. It did have principal loss in rangin...
by aristotelian
Sat Jun 16, 2018 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Using Wellesley Fund as a bond alternative
Replies: 18
Views: 2210

Re: Using Wellesley Fund as a bond alternative

I hold it in my employer plan because it is one of the better options. For the purposes of determining my asset allocation, I count 35% toward my stock allocation and 65% to my bond allocation. It would not be a good choice for an emergency fund, both because it is not tax efficient, and because it ...
by aristotelian
Fri Jun 15, 2018 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA: Using it for kids college
Replies: 31
Views: 1841

Re: Inherited IRA: Using it for kids college

It does make a difference if the mental accounting causes you to make a supremely tax inefficient move, like liquidating an Inherited IRA in a lump sum. Since the OP is in the highest tax bracket, then we can guess they will be in the highest tax bracket for quite some time. If that is true, then l...
by aristotelian
Fri Jun 15, 2018 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA: Using it for kids college
Replies: 31
Views: 1841

Re: Inherited IRA: Using it for kids college

Thanks again for all the responses. My wife doesn’t have any care about the money at all. She asked me to just do whatever I think is best with the money. I need to sit down and do the math on lump sum now with a three way split into the 529’s for tax free growth, or do the RMD/let it sit and grow ...
by aristotelian
Fri Jun 15, 2018 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Taxation for free-lancers
Replies: 23
Views: 1834

Re: Taxation for free-lancers

manedark wrote:
Tue Jun 12, 2018 1:42 pm
Good point about opening the IRA to save on taxes - will read up on pros and cons of SEP vs Individual 401K.
Definitely Solo 401k. She will be able to defer all her net income after SE tax instead of just 20%.
by aristotelian
Fri Jun 15, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 29
Views: 2403

Re: Vanguard Managed Payout Fund

BrooklynInvest wrote:
Fri Jun 15, 2018 10:49 am
Yeah. This was what I was struggling with. Love the idea of the product but couldn't see how admittedly a more complex AA was getting me (give or take) 20+ bps of value versus a Lifestrategy.
I don't even love the idea of the product.
by aristotelian
Fri Jun 15, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA: Using it for kids college
Replies: 31
Views: 1841

Re: Inherited IRA: Using it for kids college

"Using it for kids college" is mental accounting. Money is fungible so there is no need to use these funds for a particular purpose. How you liquidate the IRA and whether/how to fund the 529 are separate questions. I would just do RMD's as you have proposed, then contribute as much as you can to th...
by aristotelian
Fri Jun 15, 2018 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 29
Views: 2403

Re: Vanguard Managed Payout Fund

Just do Lifestrategy Growth and withdraw 4% a year at a much lower expense ratio. I don't know why you would pay extra just to have them withdraw 4% for you. They do not guarantee the principal so it is no safer than the underlying funds. It is not an annuity.
by aristotelian
Fri Jun 15, 2018 8:00 am
Forum: Personal Consumer Issues
Topic: Free Android audio player which remembers
Replies: 8
Views: 599

Re: Free Android audio player which remembers

I use Podcast Addict, it has both features.
by aristotelian
Fri Jun 15, 2018 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA: Using it for kids college
Replies: 31
Views: 1841

Re: Inherited IRA: Using it for kids college

"Using it for kids college" is mental accounting. Money is fungible so there is no need to use these funds for a particular purpose. How you liquidate the IRA and whether/how to fund the 529 are separate questions. I would just do RMD's as you have proposed, then contribute as much as you can to the...
by aristotelian
Thu Jun 14, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: Why do we need 529?
Replies: 41
Views: 3363

Re: Why do we need 529?

You have a limited amount you can contribute to Roth. The general idea is you contribute to Roth for general needs and 529 for college to maximize your limits.
by aristotelian
Thu Jun 14, 2018 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K vs Taxable
Replies: 23
Views: 1374

Re: Help with 401K vs Taxable

Yes, max the 401k's. Start a Her Roth IRA. Roll the old 401k into new 401k (not IRA). This will allow you to do Backdoor Roth, which will be in your future soon. Vanguard vs TD Ameritrade is a matter of personal preference. Both are good. He can stay at TD and do a three-fund portfolio with low exp...
by aristotelian
Thu Jun 14, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K vs Taxable
Replies: 23
Views: 1374

Re: Help with 401K vs Taxable

Yes, max the 401k's. Start a Her Roth IRA. Roll the old 401k into new 401k (not IRA). This will allow you to do Backdoor Roth, which will be in your future soon. Vanguard vs TD Ameritrade is a matter of personal preference. Both are good. He can stay at TD and do a three-fund portfolio with low expe...
by aristotelian
Thu Jun 14, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: I was rear ended and the other guy wants a payout!
Replies: 106
Views: 8858

Re: I was rear ended and the other guy wants a payout!

It would 100% be at fault to the guy who did the rear-ending. The violation would be something like "failure to keep proper distance". When you are driving behind someone, you need to leave enough space to be able to stop in the case that they stop "on a dime". Not if the car who pulled out did so ...
by aristotelian
Thu Jun 14, 2018 5:55 am
Forum: Investing - Help with Personal Investments
Topic: Reconciling Buy-and-Hold philosophy with AA/TLH
Replies: 17
Views: 1289

Re: Reconciling Buy-and-Hold philosophy with AA/TLH

When you harvest losses, you replace the down fund with another fund that is similar but not identical (eg S&P500 for Total Stock). You remain invested just as before, but with less taxes to pay. It has nothing to do with timing the market.
by aristotelian
Wed Jun 13, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Using donor advised fund to diversify stock with large capital gains
Replies: 38
Views: 2227

Re: Using donor advised fund to diversify stock with large capital gains

+1. Assuming you have charitable goals that you would otherwise fund with cash, you (and the organizations you support) can get more bang for your buck by donating stocks with the most gains. This would be a perfect strategy to make the most of those stocks. EDIT: One thing to keep in mind, in order...
by aristotelian
Tue Jun 12, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Shifting money for house from stock funds
Replies: 12
Views: 887

Re: Shifting money for house from stock funds

Hi, The conventional wisdom is to put money that is needed in the short term in cash or more conservative investments. Our time horizon is now 7 years and we have about $500K+ in after tax money split between the Vanguard Total Stock Market and Total International Stock Market funds. Is there a tax...
by aristotelian
Tue Jun 12, 2018 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Sell Bond Fund in Taxable for Loss?
Replies: 15
Views: 1068

Re: Sell Bond Fund in Taxable for Loss?

Harvest the loss for sure. They question is do you reinvested in Intermediate Bond or switch to something else. If you want to switch to I Bonds, go for it. Do not use market timing as a reason to stay in Intermediate Bond. It could just as easily go down more as it could recoup losses.