Search found 519 matches

by MathIsMyWayr
Sun Jul 21, 2019 6:34 pm
Forum: Personal Investments
Topic: What stress test do you run on your retirement portfolio?
Replies: 40
Views: 2585

Re: What stress test do you run on your retirement portfolio?

1. Use tools like Fidelity's retirement income planner set to "must worse than average" investment return forecasts. Use a tool that has monte carlo analysis & varies the year-by-year returns to determine your probability of success (success = not running out of money) over lots of scenarios. Two m...
by MathIsMyWayr
Sun Jul 21, 2019 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do people in HCOL areas have a higher net worth and more wealth building potential than LCOL?
Replies: 194
Views: 10997

Re: Do people in HCOL areas have a higher net worth and more wealth building potential than LCOL?

Too many variables, I think, to say HC or LC is better for net worth/wealth building. In our case, I ended up in a higher paying job in the San Fernando Valley (CA) and stayed in the job for 27 years. DW also worked. We sent our kids to public schools/colleges and saved saved SAVED. The BIG variabl...
by MathIsMyWayr
Sun Jul 21, 2019 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Do people in HCOL areas have a higher net worth and more wealth building potential than LCOL?
Replies: 194
Views: 10997

Re: Do people in HCOL areas have a higher net worth and more wealth building potential than LCOL?

The KU person will have a 3000 square-foot 4 bedroom house with a yard and a neighborhood pool compared to that "richer" UCSF finance manager living in a 1-bedroom apartment. My comparisons above were for 1 bedroom apartments in both locations. A 4 bedroom house can be had in many East Bay suburbs ...
by MathIsMyWayr
Sun Jul 21, 2019 12:43 pm
Forum: Personal Investments
Topic: Continue 403b or start roth ira
Replies: 59
Views: 1465

Re: Continue 403b or start roth ira

Roth 457 has very quirky rules -- it functions like a non-deductible IRA; that is, the contribution is not taxed, but all growth is taxed as ordinary income. Not suitable for the OP. This Roth 457 rule is specific to lakpr's case. In other 457 plans, all of Roth 457 distribution is tax-free, i.e., ...
by MathIsMyWayr
Sun Jul 21, 2019 11:23 am
Forum: Personal Investments
Topic: Continue 403b or start roth ira
Replies: 59
Views: 1465

Re: Continue 403b or start roth ira

Roth 457 has very quirky rules -- it functions like a non-deductible IRA; that is, the contribution is not taxed, but all growth is taxed as ordinary income. Not suitable for the OP. This Roth 457 rule is specific to lakpr's case. In other 457 plans, all of Roth 457 distribution is tax-free, i.e., ...
by MathIsMyWayr
Sun Jul 21, 2019 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Do people in HCOL areas have a higher net worth and more wealth building potential than LCOL?
Replies: 194
Views: 10997

Re: Do people in HCOL areas have a higher net worth and more wealth building potential than LCOL?

You don’t need a 40x difference in income to end up with vastly different net worth outcomes. Over a 30 year timeframe, saving $100k/yr will leave you with twice the assets as someone saving $50k/yr. Obviously HCOL areas provide higher incomes, but do they also provide higher net worths and more we...
by MathIsMyWayr
Thu Jul 18, 2019 9:26 am
Forum: Personal Investments
Topic: TLH & Auto Reinvestment selected??
Replies: 14
Views: 620

Re: TLH & Auto Reinvestment selected??

... If the dividend happened in the past 30 days, odds are the tax-lot of the dividend is at a loss so just sell it as well and you don't have a wash sale. You purchased shares (through dividend auto-investment) in the past 30 days, and sell them (at a loss). Isn't it a wash sale? I am confused. A ...
by MathIsMyWayr
Thu Jul 18, 2019 7:41 am
Forum: Personal Investments
Topic: TLH & Auto Reinvestment selected??
Replies: 14
Views: 620

Re: TLH & Auto Reinvestment selected??

... If the dividend happened in the past 30 days, odds are the tax-lot of the dividend is at a loss so just sell it as well and you don't have a wash sale. You purchased shares (through dividend auto-investment) in the past 30 days, and sell them (at a loss). Isn't it a wash sale? I am confused.
by MathIsMyWayr
Wed Jul 17, 2019 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Please check my calculations -- mortgage vs interest earned.
Replies: 4
Views: 421

Re: Please check my calculations -- mortgage vs interest earned.

From your $83,000, you have to withdraw to pay mortgage every month. You are not keeping $83,000 for the entire 5 years and your savings balance becomes smaller every month. You are not earning interest of $1,739.
by MathIsMyWayr
Wed Jul 17, 2019 11:11 pm
Forum: Personal Investments
Topic: TLH & Auto Reinvestment selected??
Replies: 14
Views: 620

Re: TLH & Auto Reinvestment selected??

...If the dividend is in the future (more than a couple of days) you can turn it off and all is well. If the dividend happened in the past 30 days, odds are the tax-lot of the dividend is at a loss so just sell it as well and you don't have a wash sale. If I sell all the shares purchased by dividen...
by MathIsMyWayr
Wed Jul 17, 2019 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap vs Advantage: Which did you select?
Replies: 194
Views: 7815

Re: Medigap vs Advantage: Which did you select?

... has a $0 monthly premium. I am not sure how they manage to do it. My guess is that their business model works by attracting a very low risk group of patients like me, whose current usage is minimal. No, that's not quite it. True, the zero plans have higher deductibles, co-pays, higher out-of-ne...
by MathIsMyWayr
Tue Jul 16, 2019 9:28 am
Forum: Personal Investments
Topic: i-ORP and annual Roth contributions after age 65?
Replies: 7
Views: 507

Re: i-ORP and annual Roth contributions after age 65?

Following two ways will end up with the same result.
  • No Roth conversion and Roth contribution
  • Roth conversion and deductible contribution
by MathIsMyWayr
Mon Jul 15, 2019 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Medigap vs Advantage: Which did you select?
Replies: 194
Views: 7815

Re: Medigap vs Advantage: Which did you select?

According to the insurance company representative in a Medicare information session, a medical underwriting is required only when going from a better coverage plan to a lower level one, e.g., MA to Medigap, or Medigap G to F plans. Did you mean to say that medical underwriting is required only when...
by MathIsMyWayr
Sun Jul 14, 2019 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: No A/C in Office [not a safe work environment]
Replies: 86
Views: 7560

Re: No A/C in Office [not a safe work environment]

No AC? Miserable, but isn't this the way people used to work before the invention and a wide spread use of AC?
by MathIsMyWayr
Sun Jul 14, 2019 12:22 pm
Forum: Investing - Theory, News & General
Topic: Tax cost stopping move to indexing
Replies: 68
Views: 3106

Re: Tax cost stopping move to indexing

I have no problem with gifting share away to daughter without any expectation of anything back. Gifting to mom with an expectation of ....? Not so sure. My mom and I are very open with each other about estate planning and finances. I can see how that might be awkward for some. But if you think abou...
by MathIsMyWayr
Sun Jul 14, 2019 12:14 pm
Forum: Personal Investments
Topic: ORP and RPM recommend large mega Roth's from IRA
Replies: 43
Views: 2301

Re: ORP and RPM recommend large mega Roth's from IRA

It is difficult to calculate this with any degree of precision. Conversion makes sense not only if the tax rate on the conversion is less than or equal to the tax rate that would otherwise apply to the distributions, but also if the tax rate on the conversion is somewhat higher (but not too much hi...
by MathIsMyWayr
Sun Jul 14, 2019 11:06 am
Forum: Investing - Theory, News & General
Topic: Tax cost stopping move to indexing
Replies: 68
Views: 3106

Re: Tax cost stopping move to indexing

I have a similar situation, with about $100K in BRK and KO shares that I have held for years. I had thought to gift some of the shares to my adult daughter over the span of a couple years, which she could then sell to help pay for grad school. She is in the 0% bracket. Or maybe I can give them to m...
by MathIsMyWayr
Sun Jul 14, 2019 9:24 am
Forum: Personal Consumer Issues
Topic: Survived the First Week [of retirement, what's next?]
Replies: 69
Views: 7819

Re: A Couple of Points of Clarification on my Post

... most of the time there was no one else to do the work if I didn't do it. And when I decided to retire I left my IT group of 3 people down by one person and they can only replace me with a contractor with hard 1 year limit for the contract. They will have to do that since they are going to be in...
by MathIsMyWayr
Sat Jul 13, 2019 11:49 pm
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 27120

Re: Americans believe they need $1.7 million, on average, to retire

Many with whom I spend most mornings of a weekend day are retirees. I have been doing this for about 10 years. Most of them are highly educated, were quite successful in their career and are financially secure. My takeaway: I do not envy them. They have too much free time to put to meaningful use ....
by MathIsMyWayr
Sat Jul 13, 2019 11:35 pm
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 27120

Re: Americans believe they need $1.7 million, on average, to retire

The very notion that any American household needs a minimum of $5 million to retire before age 65 is beyond ludicrous, even for those with a low risk tolerance. $5M lets you put aside $1M for LTC and other disasters, and spend $120K/yr at 3% from the other $4M. Doesn't seem all that ludicrous in an...
by MathIsMyWayr
Sat Jul 13, 2019 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap vs Advantage: Which did you select?
Replies: 194
Views: 7815

Re: Medigap vs Advantage: Which did you select?

I had a low cost PPO version of an Advantage plan the first couple of years I was on Medicare. I was very happy with it because I could go to any doctor who accepted Medicare. Then the insurance company canceled the plan, so I could switch to whatever plan I wanted without medical underwriting. The...
by MathIsMyWayr
Sat Jul 13, 2019 8:58 pm
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 27120

Re: Americans believe they need $1.7 million, on average, to retire

Many with whom I spend most mornings of a weekend day are retirees. I have been doing this for about 10 years. Most of them are highly educated, were quite successful in their career and are financially secure. My takeaway: I do not envy them. They have too much free time to put to meaningful use ....
by MathIsMyWayr
Sat Jul 13, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 27120

Re: Americans believe they need $1.7 million, on average, to retire

Hmm, I just read about Arne Sorensen, CEO of Marriott, who got diagnosed with pancreatic cancer. Reminded me of Steve Jobs. We are dying every day. I think it's silly to want/need an insanely huge amount of money before you are ready to enjoy life. My goals are very simple. I value my time much mor...
by MathIsMyWayr
Sat Jul 13, 2019 7:14 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 857
Views: 106310

Re: Post your Financial Milestone Announcements Here

It’s a very humble start with almost 37 but today my net reached my first 10k milestone (no debt at all) since I started my life in the US. Also, I bought my first VTSAX today in my IRA. It’s a good feeling :) If we had started investing around OP's age, we would be richer by a couple millions or m...
by MathIsMyWayr
Sat Jul 13, 2019 7:06 pm
Forum: Investing - Theory, News & General
Topic: Tax cost stopping move to indexing
Replies: 68
Views: 3106

Re: Tax cost stopping move to indexing

I don’t understand the advice to wait for a significant market downturn and sell. I did not mean to sell and leave the money out of the market. I meant to sell when stock prices have gone down (less cap gains) and buy a replacement fund immediately while prices are down . This accomplishes the goal...
by MathIsMyWayr
Sat Jul 13, 2019 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Can my brother afford his vacation?
Replies: 41
Views: 3629

Re: Can my brother afford his vacation?

My brother recently told me that he's taking his in-laws on a trip to Italy for their 50th anniversary. He was concerned because he wasn't sure that he could afford the $20k price tag. When I asked him what his financial situation was, he didn't share income and expenses, but he did tell me that he...
by MathIsMyWayr
Sat Jul 13, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Add a second job? Trader Joes, Home depot, ???
Replies: 38
Views: 4724

Re: Add a second job? Trader Joes, Home depot, ???

I am looking to add a part time second job. I have a great primary job that is very flexible and I get to work remotely If your schedule is flexible for you, isn't it also flexible for your employer? Retail employers may ask you for certain commitment to schedule, though not firm. You may not cont ...
by MathIsMyWayr
Fri Jul 12, 2019 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap vs Advantage: Which did you select?
Replies: 194
Views: 7815

Re: Medigap vs Advantage: Which did you select?

I'd prefer not to risk being subjected to medical underwriting if I were to initially opt for an Advantage Plan here and then end up in a state with sub-par Advantage networks AND then want to go back to a supplement policy instead. This deserves an attention. When you try to move from an MA to an ...
by MathIsMyWayr
Fri Jul 12, 2019 7:19 am
Forum: Personal Investments
Topic: Traditional IRA Rollover to 401k - Is a loophole?
Replies: 13
Views: 898

Re: Traditional IRA Rollover to 401k - Is a loophole?

Whether it is a loophole or not depends on a personal standard. We may even consider 401(k) unfair to those who do not hold decent jobs, without 401(k) plans. I am not a lawyer, but I believe that getting the most benefit within the laws and regulations is allowed though some areas are grey. Finding...
by MathIsMyWayr
Fri Jul 12, 2019 6:52 am
Forum: Investing - Theory, News & General
Topic: Three most important elements of investment success
Replies: 67
Views: 5569

Re: Three most important elements of investment success

1) Spend below your means and save the excess. 2) Take full advantage of tax savings by using tax-deferred and tax-free accounts. 3) Invest in a very simple portfolio of broad market index funds using an allocation you can stick with. +1. 1) and 2) may be readily proved. All the fancy voodoo argume...
by MathIsMyWayr
Wed Jul 10, 2019 9:23 am
Forum: Personal Consumer Issues
Topic: Retirees, did your level of luxury increase faster than you anticipated?
Replies: 47
Views: 4867

Re: Retirees, did your level of luxury increase faster than you anticipated?

Concurrently, though, we have noticed a dramatic increase in the costs of traveling. Also (probably related), we have been dismayed about how crowded everything seems to be, no doubt due to the geometrically accelerating increase in the number of Chinese nationals touring about. Large hotels are in...
by MathIsMyWayr
Wed Jul 10, 2019 1:15 am
Forum: Investing - Theory, News & General
Topic: Retiring Early Correlates with Greater Longevity ?
Replies: 47
Views: 4595

Re: Retiring Early Correlates with Greater Longevity ?

Actually I head many cases where people died soon after retiring. Somehow a sudden disruption of a structured life style leads to an early demise.
by MathIsMyWayr
Tue Jul 09, 2019 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: ? about Mega-backdoor limits and company match
Replies: 3
Views: 515

Re: ? about Mega-backdoor limits and company match

I also looked at the merit of intentionally maxing the IRS 401(k) limit with mega backdoor Roth IRA. In the OP's case, further company match accumulates in a supplement account which will be paid to OP after separation as a taxable income. As an illustration, let's assume the amount in question is $...
by MathIsMyWayr
Tue Jul 09, 2019 12:29 am
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 27120

Re: Americans believe they need $1.7 million, on average, to retire

It was an online survey of 401k participants (does not appear that it was limited to Schwab account holders). Thanks for the links. The four points I thought interesting when linked together were (i) "on average, participants think they need $1.7 million saved for retirement", (ii) that 58% said th...
by MathIsMyWayr
Sun Jul 07, 2019 2:14 pm
Forum: Personal Consumer Issues
Topic: Time for a new car - Corolla or Civic...
Replies: 49
Views: 3346

Re: Time for a new car - Corolla or Civic...

the data from Consumer Reports suggests that Toyota is more reliable overall that Honda. that has also been my experience as an owner of 2 Hondas in the past and 2 Toyotas now. My old '99 Corolla was going strong over 310,000 miles with everything original (water pump, radiator, fuel pump, alternat...
by MathIsMyWayr
Sun Jul 07, 2019 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Does saving 20% towards retirement starting in your twenties allow you to retire early?
Replies: 144
Views: 13536

Re: Does saving 20% towards retirement starting in your twenties allow you to retire early?

Compounding happens with interest payments. With stocks there is no compound growth. I was a bit puzzled by this, as that's not my definition of compounding. To me compounding is exponential growth in a financial balance. (Edited to elaborate: exponential growth that is happening because any return...
by MathIsMyWayr
Sat Jul 06, 2019 5:12 pm
Forum: Personal Consumer Issues
Topic: Have you cleaned your own carpets?
Replies: 26
Views: 1722

Re: Have you cleaned your own carpets?

I used to rent carpet cleaners from Sears(?) and Home Depot. I got tired of going through all the rooms in one day not to pay for another day's rental and bought one from Sears and Walmart. I am always amazed by the amount dirt accumulated in carpets. If you have a carpet cleaner, you can clean carp...
by MathIsMyWayr
Fri Jul 05, 2019 4:29 pm
Forum: Investing - Theory, News & General
Topic: What is the math for comparing correlated graphs
Replies: 10
Views: 494

Re: What is the math for comparing correlated graphs

You may use the standard definition of a correlation. For example, http://www.stat.yale.edu/Courses/1997-98/101/correl.htm.
Here, Sx is the square root of the variance of series {x}. Dividing a series by the square root of its variance takes care of scaling.
by MathIsMyWayr
Thu Jul 04, 2019 7:02 am
Forum: Personal Finance (Not Investing)
Topic: At What Age or Point in your Career did your investments start outweighing your regular paychecks?
Replies: 85
Views: 10962

Re: At What Age or Point in your Career did your investments start outweighing your regular paychecks?

When your investment is 5x regular income. A market fluctuation of +/- 5% of your investment is quite "normal." The pivoting point is achieved when your saving rate matches the market fluctuations. If you save 25% of your income, 25%/5%=5x.
by MathIsMyWayr
Thu Jul 04, 2019 6:51 am
Forum: Personal Investments
Topic: Got more than enough for retirement. What to do now?
Replies: 42
Views: 3817

Re: Got more than enough for retirement. What to do now?

Sleepless wrote:
Thu Jul 04, 2019 5:02 am
We have about 3x the amount that we need for retirement according to the various calculators.
Simple. Protect 1x and do whatever you like to do with the rest. 67/33? If equity drops by 50%, you still have 2x.
by MathIsMyWayr
Sun Jun 30, 2019 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Did Retirement Spending go as You Planned?
Replies: 47
Views: 4685

Re: Did Retirement Spending go as You Planned?

Both age 73, now in my 9th year of retirement. We are almost over the sequence of returns risk. I understand the sense in which you are viewing sequence of returns risk as "over." However, in another sense, every day is the first day of the rest of your life. You have retirement assets, you have an...
by MathIsMyWayr
Sat Jun 29, 2019 8:38 am
Forum: Personal Consumer Issues
Topic: how much to finance a new car at .9%
Replies: 57
Views: 3863

Re: how much to finance a new car at .9%

If you can safely earn more that 0.9% after tax, why not borrow to the maximum? You pay the minimum amount in cash, deposit the loan amount in a bank, and set an auto-pay from the account. I did a similar thing before and it is working fine. $33,000 is not yours any way. You are making a few bucks e...
by MathIsMyWayr
Sat Jun 29, 2019 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Underpaid in bay area, seeking advice negotiating salary
Replies: 30
Views: 3471

Re: Underpaid in bay area, seeking advice negotiating salary

Hi everyone, I've been working at a small company in the bay area for 5+ years. It's my first and only job after grad school. I am in a situation with my employer that I don't know how to approach, and I am looking for advice. Any insights would be highly appreciated. I'm sorry this is so long. Her...
by MathIsMyWayr
Wed Jun 26, 2019 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Amending income tax return by someone other than the original preparer
Replies: 7
Views: 789

Re: Amending income tax return by someone other than the original preparer

Thank you all for the info and encouragements. A while back I had a great difficulty with deductions for large expenses related to DW's research, we chose to turn to a tax a preparation firm with a satisfactory result. A large portion of the firm's clients are faculty members of nearby universities ...
by MathIsMyWayr
Sun Jun 23, 2019 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Amending income tax return by someone other than the original preparer
Replies: 7
Views: 789

Amending income tax return by someone other than the original preparer

I have been using a tax preparer for income tax returns, but with a lot of troubles. Trouble areas include deductible IRA contribution and its Roth conversion, employee stock option exercise, foreign tax credits, and others. Each time, I have to do my own research and show him how to do it, and this...
by MathIsMyWayr
Fri Jun 21, 2019 10:58 am
Forum: Personal Consumer Issues
Topic: Supplemental dental / dental savings plan?
Replies: 1
Views: 224

Re: Supplemental dental / dental savings plan?

We also have an employer-based premium-level dental insurance and another employer-based basic one, but there are moderate annual caps, low thousands of dollars. Routine procedures are covered in full, but expensive ones are only partially covered such as root canal followed by crowns. Insurance is ...
by MathIsMyWayr
Fri Jun 21, 2019 12:56 am
Forum: Personal Investments
Topic: Borrowing to max 403b + IRA?
Replies: 10
Views: 671

Re: Borrowing to max 403b + IRA?

If you miss a chance to invest in tax-advantaged accounts, it will be lost forever. Given your low income this year and a sure prospect for much higher income in the near future, this year might be the best time for Roth in your entire working life. Borrowing from your parents for Roth is like inves...
by MathIsMyWayr
Wed Jun 19, 2019 3:34 pm
Forum: Personal Consumer Issues
Topic: My Cost of Progressive Lenses/glasses - did I pay too much?
Replies: 69
Views: 3901

Re: My Cost of Progressive Lenses/glasses - did I pay too much?

I'm 68, very near sighted, astigmatism. I am seeing a new optometrist in a month or so. I feel as if my vision is very limited. I can't see/drive on dark roads at night. I have floaters. When I work on a computer I have to increase the font size to 18 points or higher. And more ... That said, I'm l...
by MathIsMyWayr
Tue Jun 18, 2019 1:44 pm
Forum: Personal Consumer Issues
Topic: Where to Live? N. Orange County, CA or Vancouver, WA or Atlanta
Replies: 82
Views: 6794

Re: Where to Live? N. Orange County, CA or Vancouver, WA or Atlanta

Familiar with SoCal, NoCal, Northeast, and Pacific NW. People adapt wherever they go. If financial matters are resolved, family matters trump over most of the other factors.
by MathIsMyWayr
Mon Jun 17, 2019 9:22 pm
Forum: Personal Consumer Issues
Topic: My Cost of Progressive Lenses/glasses - did I pay too much?
Replies: 69
Views: 3901

Re: My Cost of Progressive Lenses/glasses - did I pay too much?

I paid almost that much every 4 years or so for progressives and expensive (well-made) frames that never broke with constant wear. Seemed worth it to me. Last year I had cataract surgery and no longer need glasses except for computer and reading. I have a mild astigmatism so I got prescription bifo...