Search found 5198 matches

by aristotelian
Sun Feb 17, 2019 2:08 pm
Forum: Personal Investments
Topic: Help me with the Trad vs Roth 401k Math
Replies: 69
Views: 1528

Re: Help me with the Trad vs Roth 401k Math

OP, if your position is that you know that Roth is inferior but it works for you behaviorally, there is no reason for this thread. You have already made up your mind and your assumptions preclude a rational discussion. Personally, my presumption is that I am a rational investor.
by aristotelian
Sun Feb 17, 2019 11:03 am
Forum: Personal Investments
Topic: Help me with the Trad vs Roth 401k Math
Replies: 69
Views: 1528

Re: Help me with the Trad vs Roth 401k Math

OP, in addition to the advice you have received, you are welcome to try this spreadsheet. You will see that it is very difficult for Roth to come out ahead. https://docs.google.com/spreadsheets/d/ ... 1374797127
by aristotelian
Sun Feb 17, 2019 9:18 am
Forum: Personal Investments
Topic: Early retirement savings withdrawal strategy check-up
Replies: 8
Views: 1083

Re: Early retirement savings withdrawal strategy check-up

Would you get any benefit from delaying your pension? You could then do Roth conversions of your pretax accounts up to $24k.
by aristotelian
Fri Feb 15, 2019 4:11 pm
Forum: Personal Investments
Topic: headed to Aspire
Replies: 5
Views: 615

Re: headed to Aspire

I find it tragic that teachers have by far the worst retirement plan offerings of any profession. That is fantastic that you have a good option available to you. Of course I would prefer not to pay the .15% + $40 management fee, but that sounds like a great option (actually better than my employer p...
by aristotelian
Fri Feb 15, 2019 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a 2019 RAV4 hybrid - how to pay for it?
Replies: 76
Views: 3587

Re: Buying a 2019 RAV4 hybrid - how to pay for it?

If all goes well, I am hoping to by a Nissan Leaf this weekend. They are offering 0% 5 year financing. I will walk in to the dealer and walk out with a car, again, if all goes well. I will then leverage the loan to increase by bond allocation by the same amount. I hate debt, but I love a great deal....
by aristotelian
Fri Feb 15, 2019 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or pay off mortgage
Replies: 16
Views: 1414

Re: Invest or pay off mortgage

ohboy! wrote:
Thu Feb 14, 2019 10:57 pm
I hate debt. Would you take a loan for 4%+ to invest in equities?
I would, and did, and anyone in the history of the market who has done so has come out ahead over 30 years.

That said, I made extra payments on the mortgage along the way. It does not have to be all or nothing.
by aristotelian
Fri Feb 15, 2019 11:59 am
Forum: Investing - Theory, News & General
Topic: On Leverage
Replies: 42
Views: 1965

Re: On Leverage

Did you never carry a mortgage and invest at the same time? That is another good thought. Seeing that 2x leverage will go bust when the market drops by -50%, and knowing that it happened in the past, that would mean that you definitely don't want to leverage with a callable loan. That rules out buy...
by aristotelian
Fri Feb 15, 2019 9:49 am
Forum: Investing - Theory, News & General
Topic: On Leverage
Replies: 42
Views: 1965

Re: On Leverage

305pelusa wrote:
Fri Feb 15, 2019 9:45 am

I'm convinced it's a loser's game and succeeds only if you can speculate properly. I'm certainly open to someone changing my mind though.
Did you never carry a mortgage and invest at the same time?
by aristotelian
Fri Feb 15, 2019 6:42 am
Forum: Investing - Theory, News & General
Topic: Wellesley’s Secret Sauce to Remain Secret
Replies: 20
Views: 2811

Re: Wellesley’s Secret Sauce to Remain Secret

As a shareholder, I am fine with VG not providing a breakdown of this information to an individual investor. Would have been a waste of their resources and increased their operating expenses to have someone go and crunch those numbers. We have more than enough to make an informed choice whether or n...
by aristotelian
Thu Feb 14, 2019 6:34 pm
Forum: Personal Investments
Topic: vanguard managed payout fund
Replies: 18
Views: 1479

Re: vanguard managed payout fund

I don't see the point. The "managed payout" is somewhat deceptive in that it is no more guaranteed than any diversified portfolio. Having them manage (but not guarantee) the payout does not seem worth paying higher fees for. I just done see what the added value is. I much prefer balanced index or on...
by aristotelian
Thu Feb 14, 2019 10:45 am
Forum: Personal Investments
Topic: Individual bond fees
Replies: 24
Views: 1119

Re: Individual bond fees

Regardless of fees, you can't come close to matching the diversification of an index fund. Also individual bonds more difficult to rebalance if you ever need to sell. As I mentioned in the first post, yes, a fund is obviously a lot more diversified, but the aggregated credit quality is much lower t...
by aristotelian
Thu Feb 14, 2019 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Child and Dependent Care Credit and AMT
Replies: 3
Views: 206

Re: Child and Dependent Care Credit and AMT

Did both parents have earned income?
by aristotelian
Thu Feb 14, 2019 9:55 am
Forum: Personal Investments
Topic: Individual bond fees
Replies: 24
Views: 1119

Re: Individual bond fees

Regardless of fees, you can't come close to matching the diversification of an index fund. Also individual bonds more difficult to rebalance if you ever need to sell.
by aristotelian
Wed Feb 13, 2019 8:35 pm
Forum: Personal Investments
Topic: What are the situations in which it does not make sense to hold bonds in retirement acct?
Replies: 5
Views: 544

Re: What are the situations in which it does not make sense to hold bonds in retirement acct?

I think you need to distinguish between Roth and Traditional rather than lumping them together as retirement accounts. I generally want to maximize stocks in Roth with higher expected returns since the gains will be tax free, instead of subject to tax at marginal rate. If you are going to end up wit...
by aristotelian
Wed Feb 13, 2019 6:33 am
Forum: Investing - Theory, News & General
Topic: Why should stocks beat bonds in the long run?
Replies: 47
Views: 2685

Re: Why should stocks beat bonds in the long run?

Stocks represent a portion of the market value of the company, including all future expected profits with limitless upside but also greater risk to the downside. Bonds are limited to X interest rate, the lowest that the issuer can get away with charging.
by aristotelian
Tue Feb 12, 2019 7:07 am
Forum: Personal Investments
Topic: Roth Advantage not discussed?
Replies: 26
Views: 1924

Re: Roth Advantage not discussed?

OP, you are missing that the tax deduction from traditional more than makes up for the higher after-tax value of Roth dollars. Say you contribute $19K in the 22% bracket. With Roth, you get no money back. With Traditional, you get $4180 extra to compound over time. If you can stay in the 0% LTCG bra...
by aristotelian
Mon Feb 11, 2019 11:30 pm
Forum: Personal Consumer Issues
Topic: Wasting Electricity for Fun and Profit
Replies: 58
Views: 5350

Re: Wasting Electricity for Fun and Profit

There are various computer programs you can download to use your idle computer power to crunch data for large scale scientific research. I know searching for aliens is one application.
by aristotelian
Mon Feb 11, 2019 7:42 pm
Forum: Personal Investments
Topic: Portfolio Check Up: fund placement and tax efficiency
Replies: 49
Views: 2237

Re: Portfolio Check Up

Questions 1. Fixed income in IRA: After selling all individual stocks in IRA, I split proceeds between BND, BIV and CD’s, and continued reading/researching for a final fixed income plan. But I’m not any clearer now. It seems like some would recommend just BND, while others would suggest fund combin...
by aristotelian
Mon Feb 11, 2019 4:20 pm
Forum: Personal Investments
Topic: 457 vs Roth IRA
Replies: 7
Views: 308

Re: 457 vs Roth IRA

Really depends on your situation. The big question is tax bracket now versus in retirement. That can be affected by a lot of things, such as how long you work, when you claim SS, etc. For most people, tax in retirement is lower, but having a pension could negate that. You are welcome to try this spr...
by aristotelian
Mon Feb 11, 2019 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: 2019 Withholding & Tax Planning
Replies: 7
Views: 815

Re: 2019 Withholding & Tax Planning

The brackets are more or less the same next year, so you should not need to make any major adjustments. As far as Roth vs Traditional, it is hard to know without more information. Most people end up in a lower (possibly much lower) tax bracket in retirement which makes Traditional advantageous, espe...
by aristotelian
Mon Feb 11, 2019 10:09 am
Forum: Personal Investments
Topic: Sell due to Capital Gains or Not?
Replies: 20
Views: 1100

Re: Sell due to Capital Gains or Not?

What is the cost basis for the account? If you have been receiving and paying taxes on capital gains distributions for years you may have a higher cost basis than you think, so you may owe less tax than you expect on the sale. Can you tell me what TRP funds are returning capitol gains of 8-11% in 2...
by aristotelian
Mon Feb 11, 2019 9:43 am
Forum: Investing - Theory, News & General
Topic: Big IRA accounts
Replies: 48
Views: 4663

Re: Big IRA accounts

Have you already claimed SS? If so, you could try to do a voluntary suspension. Then pull as much as you can until you both hit 70. Unfortunately that only gives you about a year or so to maximize conversions.
by aristotelian
Mon Feb 11, 2019 9:24 am
Forum: Investing - Theory, News & General
Topic: Simplest, most efficient, longer term taxable investment?
Replies: 7
Views: 1451

Re: Simplest, most efficient, longer term taxable investment?

VT or the appropriate Lifestrategy fund for your risk tolerance.
by aristotelian
Mon Feb 11, 2019 9:19 am
Forum: Personal Investments
Topic: Sell due to Capital Gains or Not?
Replies: 20
Views: 1100

Re: Sell due to Capital Gains or Not?

What is the expense ratio of the funds? You can calculate how long it will take to break even on the tax hit versus the fee drag. If your funds have gone up 50% and you are in the 15% capital gains bracket, you would be paying about 7.5% of the balance in tax. If TRP is charging .75% ER, you would b...
by aristotelian
Sat Feb 09, 2019 10:11 pm
Forum: Investing - Theory, News & General
Topic: Why borrow money in RE but not Stocks?
Replies: 38
Views: 3832

Re: Why borrow money in RE but not Stocks?

Actually, anyone who has a mortgage while investing in stocks is, in effect, leveraging debt to invest more in the market. However, in that case, the investment in the market is backed by the house, so if the market goes to zero, the investor is not cleaned out.
by aristotelian
Sat Feb 09, 2019 9:54 pm
Forum: Personal Investments
Topic: Roth 403b or 457 for two teacher family with two pensions
Replies: 22
Views: 1206

Re: Roth 403b or 457 for two teacher family with two pensions

Generally I would say never to do Roth in a high tax bracket. However, the pension (rare these days!) could change things. You might try putting your numbers in this spreadsheet to make sure. https://docs.google.com/spreadsheets/d/ ... 1374797127
by aristotelian
Sat Feb 09, 2019 7:30 pm
Forum: Personal Investments
Topic: Need further advice (Roth, 403b, 457b)
Replies: 12
Views: 560

Re: Need further advice (Roth, 403b, 457b)

Any employer match for the 403b? Generally 457b beats 403b because you can take early withdrawals with no penalty. Consider running your numbers through this spreadsheet to help you choose between Roth and Traditional. If you seriously plan to work into your 70's, that might argue for Roth. https://...
by aristotelian
Sat Feb 09, 2019 8:33 am
Forum: Personal Investments
Topic: Fidelity ZERO YTD Performance
Replies: 29
Views: 3547

Re: Fidelity ZERO YTD Performance

As of today I am seeing 8.97 for VTSAX and 9.00 for FZROX per Morningstar.
by aristotelian
Sat Feb 09, 2019 8:21 am
Forum: Investing - Theory, News & General
Topic: BNDW not trackable in Google Finance
Replies: 10
Views: 1098

Re: BNDW not trackable in Google Finance

Similar reports of =GOOGLEFINANCE breaking on this thread. It's working fine for me.

viewtopic.php?f=10&t=272376&p=4371091#p4371091
by aristotelian
Fri Feb 08, 2019 9:09 pm
Forum: Investing - Theory, News & General
Topic: Stock Quotes - Downloadable
Replies: 8
Views: 480

Re: Stock Quotes - Downloadable

I use Google Sheets. Have not noticed any issues.
by aristotelian
Fri Feb 08, 2019 8:58 pm
Forum: Personal Investments
Topic: Whats better to hold, Roth dollars or Tax-deferred dollars ?
Replies: 84
Views: 5455

Re: Whats better to hold, Roth dollars or Tax-deferred dollars ?

I can tell you, as someone who is now retired, I much prefer to have money in a Roth over a traditional IRA account. It costs me nothing to take the money out of the Roth. It costs a LOT to take money out of a traditional IRA. Not always true. Keep your withdrawal under $24K (the standard deduction...
by aristotelian
Fri Feb 08, 2019 8:55 pm
Forum: Personal Investments
Topic: Whats better to hold, Roth dollars or Tax-deferred dollars ?
Replies: 84
Views: 5455

Re: Whats better to hold, Roth dollars or Tax-deferred dollars ?

Generally, Traditional will come out ahead. Roth might be better if you are in a low tax bracket. Try this handy dandy spreadsheet to see for yourself. (Would appreciate feedback from other Bogleheads too). https://docs.google.com/spreadsheets/d/1_AR7SkvlF7w0qZES9OAhERSajZpsdOvM8j8VAhUkPeo/edit#gid=...
by aristotelian
Fri Feb 08, 2019 7:46 pm
Forum: Personal Investments
Topic: portfolio review - mid 30's married couple with FIRE on the brain
Replies: 22
Views: 2296

Re: portfolio review - mid 30's married couple with FIRE on the brain

OP, if you are serious about FIRE "as soon as possible", you should be saving much more than $220K (only $160K for your retirement). As a % of income, your savings rate isn't bad, but at your income level it should be easier to have an even higher savings rate. Also, cutting your expenses means you ...
by aristotelian
Fri Feb 08, 2019 3:42 pm
Forum: Personal Investments
Topic: Finding a Home for Bonds
Replies: 9
Views: 454

Re: Finding a Home for Bonds

My workplace uses Fidelity for 401(k). Right now I put all of my deductions in the 500 Index Fund (FXAIX), which operates at .015 expense ratio. The only bond fund they offer is an Intermediate Bond Fund (FTHRX) which has a .45 expense ratio. This strikes me as too high, which is why I don't use it...
by aristotelian
Fri Feb 08, 2019 2:04 pm
Forum: Personal Investments
Topic: Tiaa Cref 403b Portfolio Asset allocation
Replies: 12
Views: 607

Re: Tiaa Cref 403b Portfolio Asset allocation

OP, you should probably post your full portfolio to get the best advice. For example, it might be optimal to have her employer account 100% in TIAA Traditional Annuity if the rest of your portfolio is overweight in stocks. Some low hanging fruit: there is no point in having Global Equities at a high...
by aristotelian
Fri Feb 08, 2019 1:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Variable Annuity as "tax advantaged space?"
Replies: 34
Views: 2155

Re: Vanguard Variable Annuity as "tax advantaged space?"

Fair enough. I do own I Bonds, come to think of it. I should say that I would rather have stocks in taxable than in a non-deductible IRA/401k. Would you rather have bonds in taxable or in a non-deductible IRA? Good question! Never really thought of it. I might do the non-deductible IRA if it had no...
by aristotelian
Fri Feb 08, 2019 1:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Variable Annuity as "tax advantaged space?"
Replies: 34
Views: 2155

Re: Vanguard Variable Annuity as "tax advantaged space?"

Well, to each their own. Me, I kinda like enjoying tax-deferred, compounded growth of our investments. I have a bunch of them that I will be very happy to pay tax on a compounded gains. IRAs, VA, US Savings Bonds. Broken Man 1999 Fair enough. I do own I Bonds, come to think of it. I should say that...
by aristotelian
Fri Feb 08, 2019 1:29 pm
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4433

Re: CD investment decision

I don't know what the solution is here. I do not want to tell someone averse to stocks to invest in stocks. However, he needs to face the paradox that the riskier asset short term is less risky long term, and vice versa. He thinks he is being conservative by eliminating market risk, but he is actua...
by aristotelian
Fri Feb 08, 2019 1:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Variable Annuity as "tax advantaged space?"
Replies: 34
Views: 2155

Re: Vanguard Variable Annuity as "tax advantaged space?"

So, you see no value in having an investment in a tax-deferred account, other than being able to deduct the amount of say a contribution into a 401k plan or an IRA from your taxable income in the year you contributed? I use a VA for deferring taxes, not for lowering my taxable income.* Heck, if I h...
by aristotelian
Fri Feb 08, 2019 12:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Variable Annuity as "tax advantaged space?"
Replies: 34
Views: 2155

Re: Vanguard Variable Annuity as "tax advantaged space?"

Horsefly - delaying taxes IS a "tax advantage." And its the term generally used for IRA etc retirement accounts. I don't get it. You are not delaying anything because you are not getting a tax deduction on the funds you are putting in. You are electing to pay income tax instead of capital gains tax...
by aristotelian
Fri Feb 08, 2019 10:56 am
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4433

Re: CD investment decision

zero concern about inflation risk. Expected inflation is easy to deal with...I think...by just keeping up with interest rates. It's the unexpected inflation that worries me. Let's say that the OP lives off of 40K per year and had 2M in the bank....which he does. He talked about putting 1.5M in CDS....
by aristotelian
Fri Feb 08, 2019 10:20 am
Forum: Personal Investments
Topic: Why BND in IRA? (vs Munis in taxable)
Replies: 13
Views: 934

Re: Why BND in IRA? (vs Munis in taxable)

I fully get that this is not 100% ideal. This was just supposed to be until I’m really priced out of a Roth IRA. I guess I’m asking if it’s worth doing things a bit inefficiently in order to have the ability to move 12k a year from taxable to a Roth IRA. Maybe I’m better off slowly converting my tr...
by aristotelian
Fri Feb 08, 2019 10:03 am
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4433

Re: CD investment decision

I'm impressed. You accurately described me in a way I never thought of before. I wish my doctor was this smart. I always wonder, am I living the right way, doing the right things... My whole life chasing a number, which isn't even paper bills (forget about backed by gold). The problem isn't chasing...
by aristotelian
Fri Feb 08, 2019 6:59 am
Forum: Personal Investments
Topic: Expensive mutual fund with large capital gains, what to do?
Replies: 15
Views: 783

Re: Expensive mutual fund with large capital gains, what to do?

Just sell and take the hit. You will be getting taxed even more in the future. The fee is high enough that it would be worth it to me to absorb the hit now. Consider giving some to a Donor Advised Fund and take care of your charitable giving for a nice long time.
by aristotelian
Thu Feb 07, 2019 3:51 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 525
Views: 25905

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

TM90 wrote:
Thu Feb 07, 2019 3:46 pm
Fair point but if this strategy delivered so much better returns why aren't the bogleheads actively recommending it? I mean why aren't we all investing with leverage? Volatility aside.
Anyone who has ever had a mortgage has invested with leverage. It's all a matter of risk tolerance.
by aristotelian
Thu Feb 07, 2019 2:55 pm
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4433

Re: CD investment decision

Don't know, but, I think guaranteed 3.7% fixed will do as well as ST or intermediate term bond index funds over the next five years (e.g. total bond index, ST Treasuries or IT Treasuries). The problem is the reinvestment risk. If you do a CD ladder, you may come out ahead when you eventually consid...
by aristotelian
Thu Feb 07, 2019 1:50 pm
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4433

Re: CD investment decision

Yes, I qualify for SS when old enough. I have 32 years employment with many years over the max contribution. My wife also qualifies. The thing that concerns me is a catch 22. I lock in rates go up, I miss out. I wait and rates go back to zero, I lose. Greed is at play. That is the problem with putt...
by aristotelian
Thu Feb 07, 2019 12:09 pm
Forum: Personal Investments
Topic: Investing Vanguard or American Funds via TIAA-CREF
Replies: 22
Views: 1064

Re: Investing Vanguard or American Funds via TIAA-CREF

TIAA's annuities are different from annuities from other insurance companies. Are able to elaborate? In what way are TIAA's annuities different from other insurance companies? TIAA refers to their normal mutual funds as variable annuities. They operate as index funds during accumulation but you hav...
by aristotelian
Thu Feb 07, 2019 11:42 am
Forum: Personal Consumer Issues
Topic: Windows 10 Pro Activation Keys [Inexpensive keys for sale]
Replies: 21
Views: 1900

Re: Windows 10 Pro Activation Keys [Inexpensive keys for sale]

OP, apparently Windows 10 is available for free, if you don't mind not being able to change the wallpaper and periodic reminders for "activation".

https://www.howtogeek.com/244678/you-do ... indows-10/
by aristotelian
Thu Feb 07, 2019 11:31 am
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4433

Re: CD investment decision

Sorry, I forgot to mention, I'm late 50's and have zero income. No risk tolerance. This CD will be my only income. Which would vary depending on how much I decided to commit: 1m = 37k, 1.25m = 47k, 1.5m = 56k Will you qualify for SS? Will the interest be enough to support your income needs until yo...