Search found 120 matches

by TheAncientOne
Wed Apr 18, 2018 6:36 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg article on lump sum vs dollar cost averaging
Replies: 19
Views: 1618

Re: Bloomberg article on lump sum vs dollar cost averaging

Moto, I think that's fine if we're talking about something like your year end bonus. But what if you get a once in a lifetime injection of cash, as might be the case with an inheritance or the sale of a business. Would you lump sum that money as well?
by TheAncientOne
Wed Apr 18, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Divesting gun stocks
Replies: 11
Views: 945

Re: Divesting gun stocks

If you have strong political views about not investing in a given industry or company, then don't buy index funds. You can pretty much replicate what an index fund does by picking 15 stocks at random (minus those that offend your sensibilities).
by TheAncientOne
Sun Apr 15, 2018 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with windfall
Replies: 11
Views: 941

Re: What to do with windfall

With mortgage interest of only $3600 or so, you're probably going to be taking the standard deduction under the new tax law. Unless the two of you are really generous with charitable contributions, the 3.875% interest rate will be your after tax cost as well. You might as well pay that mortgage off ...
by TheAncientOne
Tue Apr 10, 2018 12:22 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area - Switch Companies to Avoid Price Out?
Replies: 17
Views: 2182

Re: Bay Area - Switch Companies to Avoid Price Out?

Can you get a transfer to a lower cost of living area? Even if they pay less there, you'll probably find that after adjusting for the difference in housing costs and state taxes that you'll do better somewhere else.
by TheAncientOne
Sat Apr 07, 2018 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Is refinancing to 30 year worth it?
Replies: 20
Views: 1980

Re: Is refinancing to 30 year worth it?

In your case, I'd cut back your 401K to the 10% for a year or two because a) you're in a low tax situation and b) your assets in your only taxable account (checking acct.) is too low. Your housing payments are high for your income but I'd have a hard time switching to a higher interest rate mortgage...
by TheAncientOne
Sat Mar 03, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Buying shares in Demutualized bank
Replies: 13
Views: 1027

Re: Buying shares in Demutualized bank

Assuming the bank is solid, this is as close to free money as you can get in the stock market. The current value of the bank prior to the IPO is owned by no one so those who buy shares in the IPO become owners of that previously unclaimed value. Buy as many shares as you can. If you have time prior ...
by TheAncientOne
Wed Feb 28, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: Donor Advised Fund (DAF) - Which Company to Use
Replies: 41
Views: 3509

Re: Donor Advised Fund (DAF) - Which Company to Use

drzzzz, you're not required to distribute a certain percentage although the fund as a whole does and they do have the right to make account holders make donations in order to meet this. Since the minimum is 5% and the typical fund (Fidelity is what I'm familiar with) donates 15-20% per year, this wi...
by TheAncientOne
Tue Feb 20, 2018 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: Priority of Investments in California?
Replies: 5
Views: 686

Re: Priority of Investments in California?

First priority should be your 403b. You can do an IRA only if you max out the 403b first. And if you do an IRA, why would it be a Roth? You're looking at a combined 34% tax burden (assuming you won't be itemizing with the new standard deduction.)
by TheAncientOne
Sat Feb 17, 2018 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Using Emergency Fund to pay off loan
Replies: 7
Views: 525

Re: Using Emergency Fund to pay off loan

Paying off the home equity loan will bring your emergency fund down to $45K, or four months' salary if I understand you correctly. Unless you have special circumstances, this would seem to be a more than adequate reserve, which you can now rebuild with the money that's no longer going toward the hom...
by TheAncientOne
Fri Feb 16, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Laid off ...next steps
Replies: 31
Views: 5176

Re: Laid off ...next steps

Given that you have specialized skills, it may take you longer than the average person to get a new job. At least you have a good explanation, from a hiring company's perspective, as to why you lost your job. First, I'd see if they will give you more COBRA than six months. Twelve or nine months? You...
by TheAncientOne
Fri Feb 16, 2018 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Connecticut is charging sales tax on out of state purchases
Replies: 40
Views: 2767

Re: Connecticut is charging sales tax on out of state purchases

The Supreme Court case currently pending involves the obligation of out of state sellers to collect the appropriate sales tax from their customers. All states with sales tax already require their residents to pay what's called use tax at an equal rate for goods brought into the state, whether purcha...
by TheAncientOne
Sun Feb 04, 2018 1:09 am
Forum: Investing - Theory, News & General
Topic: "Bitcoin is my potential pension"
Replies: 54
Views: 8013

Re: "Bitcoin is my potential pension"

The desire of something for nothing will never go out of style.
by TheAncientOne
Sat Feb 03, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: How to pay off margin and not get killed on taxes
Replies: 28
Views: 2511

Re: How to pay off margin and not get killed on taxes

So you have only $150K in investments after margin debt. Sell it all now. Margin debt is a foolish thing to have if you're well off. It's absolutely insane to have it in your situation. Your tax situation will probably be minor if you inherited it and received a stepped up basis upon the death of yo...
by TheAncientOne
Sat Feb 03, 2018 10:42 am
Forum: Personal Finance (Not Investing)
Topic: AMT People...
Replies: 4
Views: 935

Re: AMT People...

For starters, you'll now get 10K for SALT deductions. AMT remains but only for an elite group of income earners, which is as it was originally promoted and should be.
by TheAncientOne
Fri Feb 02, 2018 2:57 pm
Forum: Personal Consumer Issues
Topic: Best Movies of 2017
Replies: 35
Views: 3034

Re: Best Movies of 2017

For those of us who saw the original Blade Runner when it came out, this year's version was a disappointment. By the way, I was talking with a good friend who's an expat in China (born there, came to US for grad school then became an American citizen), back home to visit HQ. He was surprised that BR...
by TheAncientOne
Fri Feb 02, 2018 11:38 am
Forum: Personal Consumer Issues
Topic: What the New York City subway looked like in 1980
Replies: 2
Views: 737

Re: What the New York City subway looked like in 1980

Okie, I lived in NYC during the late 1970s when this was universal for all subway cars. When the city finally decided to get serious about the lack of civic order (it was common back then to see cars with the sign "No radio" on their dashboard to hopefully discourage car break ins), a key thing they...
by TheAncientOne
Mon Jan 29, 2018 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - DAF contribution
Replies: 31
Views: 2159

Re: Tax help - DAF contribution

Oops, upon reading this again, I'm confused. Did you contribute shares out of 401K or IRA account?
by TheAncientOne
Mon Jan 29, 2018 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - DAF contribution
Replies: 31
Views: 2159

Re: Tax help - DAF contribution

The cost basis is the fair market value on the day you donated the shares. You should be receiving Form 8283 from Vanguard that provides you with this information. At least that's what Fidelity did when we donated appreciated shares to our account.
by TheAncientOne
Sun Jan 28, 2018 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: "Muni Bonds Time Bomb" Barron's
Replies: 47
Views: 5042

Re: "Muni Bonds Time Bomb" Barron's

Captain Kangaroo, short to intermediate treasuries (or more useful for most of us, a fund of them) would be the logical place to park your cash. I'm not willing to bet that long term treasuries can continue to remain at their current low yields. I'm willing to take term risk for two year notes in or...
by TheAncientOne
Sun Jan 28, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: "Muni Bonds Time Bomb" Barron's
Replies: 47
Views: 5042

Re: "Muni Bonds Time Bomb" Barron's

The burden of public sector pensions and retirees health care costs is, if anything, greatly underrated. Those of you who would like to follow this subject more might want to check out the site pensiontsunami.com. Relying upon the rating agencies to tell you if there's risk is nonsense. Perhaps you ...
by TheAncientOne
Fri Jan 26, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my mother's portfolio
Replies: 9
Views: 699

Re: Help with my mother's portfolio

Your mom is pretty close to $4K/month already. If we use a 4% withdrawal rate on $315K, let's call that $12K, or $1K/month. Combine that with her SS and pension, she's just about there. If she's willing and able to work a couple more years as you suggest, she should reach that number.
by TheAncientOne
Thu Jan 25, 2018 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy to take a step off from work at age 35
Replies: 13
Views: 1765

Re: Strategy to take a step off from work at age 35

Do you follow Mister Money Mustache's site? Your situation is similar to him and his followers. If I were in your shoes, I might want to first have an idea as to what my plans, initially, would be for my life rather than go all in with the Take This Job and Shove It path. Especially since you and yo...
by TheAncientOne
Wed Jan 24, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion within the Standard Deduction
Replies: 10
Views: 493

Re: Roth Conversion within the Standard Deduction

I'm confused as to your question about "standard deduction." When you convert a 401K or a traditional IRA to a Roth IRA, the money converted counts as ordinary income in that year. Standard deduction will not be changed by this or any other income producing activity.
by TheAncientOne
Tue Jan 23, 2018 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: 50% of my portfolio in FANG - 15% in NVDA
Replies: 64
Views: 6488

Re: 50% of my portfolio in FANG - 15% in NVDA

Wrong site to be asking this. I suspect most of us would say, "Way to go! Now sell it all and put it into index funds!"
by TheAncientOne
Mon Jan 22, 2018 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: Am I being greedy?
Replies: 51
Views: 6180

Re: Am I being greedy?

The stock market does not know how much you "need" to make your goal. I'm a strong believer in heavy equity exposure when you're young as long as you can deal with the inevitable bear markets and have a job or career that will not be at risk when the next recession hits. If I were in your shoes, I'd...
by TheAncientOne
Mon Jan 22, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: Fund net assets
Replies: 2
Views: 183

Re: Fund net assets

Mutual fund shares are different from shares in a company. Every day after the market closes, the fund's accountants calculate the value of the fund's net assets and divide by the number of shares outstanding that day to report a net asset value per share. If you redeem shares today, the number of s...
by TheAncientOne
Mon Jan 22, 2018 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 249
Views: 33941

Re: Does anyone here with net worths north of $1 mil use financial advisors?

My only dealing with a FA was when I took control of my mother's account at Fidelity when she was in her mid 80s. As i recall they charged something like 1% and would also on a regular basis move money from one Fidelity mutual fund to another. Between paying the AUM fee, paying for active management...
by TheAncientOne
Sun Jan 21, 2018 11:52 pm
Forum: Investing - Help with Personal Investments
Topic: Please recommend an allocation now ( age 31) if retiring in 20 years ?
Replies: 33
Views: 2373

Re: Please recommend an allocation now ( age 31) if retiring in 20 years ?

You sound like a physician. If you haven't already, spend time at whitecoatinvestor.com. They specialize in situations like yours. Main thing you need to do is to come out of the box saving lots of money before your lifestyle creeps up to your new income. Second, refinance that student loan debt to ...
by TheAncientOne
Sat Jan 20, 2018 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help Late Early Accumulators Be Comfortable Right Now with (Bogle-appropriate) Aggressive AA
Replies: 30
Views: 2027

Re: Help Late Early Accumulators Be Comfortable Right Now with (Bogle-appropriate) Aggressive AA

Going from 90/10 to 80/20 is fine if it makes you feel better but it won't change things much. I'd argue that if you feel that the market is frothy (and most all of us do) then take it upon yourself to go to 50/50 for the next two years. See where you are then and possibly readjust. Lots of us thoug...
by TheAncientOne
Mon Jan 15, 2018 6:58 pm
Forum: Investing - Theory, News & General
Topic: Anyway to compare metrics of today w stock bubble in 2000
Replies: 26
Views: 2387

Re: Anyway to compare metrics of today w stock bubble in 2000

I don't have hard data for you but I was active in the late 1990s market. The thing about it was that outside of stocks in the dot com bubble along with related tech and "concept" stocks, the market then was very cheap. If you look at the Berkshire Hathaway annual report for 1999, which came out in ...
by TheAncientOne
Mon Jan 15, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: 29 years old, newly married. Need help allocating ~$3300/month
Replies: 8
Views: 1457

Re: 29 years old, newly married. Need help allocating ~$3300/month

Lrt, I only wish I had been on the ball as much as you are at your age. I'd guess you're at the 95th percentile plus in terms of money management for a couple still in their twenties. It's been my perception that too many people here get so carried away with minimizing taxes that they lose track of ...
by TheAncientOne
Mon Jan 15, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 1446

Re: pay off 401k loan or not?

Pay back the 401K loan. I'm not a believer in loans from that account at all but I can understand why people do that in order to buy a home. If you must do that, pay it back ASAP which in your case means adding to the HELOC. However, once you do that you need to be very aggressive in paying that off...
by TheAncientOne
Mon Jan 15, 2018 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: 50/50 AA recommended by Benjamin Graham
Replies: 43
Views: 4632

Re: 50/50 AA recommended by Benjamin Graham

The Intelligent Investor was written in 1949 when the Dow Jones was at 180. Twenty years earlier, the Dow peaked at 380 in September 1929. Graham wrote at a time when the idea of being in stocks at all was widely considered to be incredibly risky. His idea of a good stock was one that had $20 in cas...
by TheAncientOne
Fri Jan 12, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans after kid graduates?
Replies: 35
Views: 2304

Re: Pay off student loans after kid graduates?

Just to make clear on Diogenes' question, the exemption on gift limits applies only to education and medical costs paid directly to the school or health care provider. Paying a lender or credit card company doesn't count.
by TheAncientOne
Thu Jan 11, 2018 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Cash-out Refi Mortgage Deduction new Tax rule
Replies: 2
Views: 340

Re: Cash-out Refi Mortgage Deduction new Tax rule

Nage, I don't know what the new law is but under the old one, you were limited on refinances to an additional 100K of cash out for income tax deduction purposes, regardless of what your mortgage balance was. Given that the general theme of the new law has been to reduce deductions while lowering tax...
by TheAncientOne
Thu Jan 11, 2018 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Working Mom needs advice
Replies: 8
Views: 824

Re: Newbie Working Mom needs advice

having done my taxes for my daughter last year here in CA, I was shocked to find that her marginal state tax rate for a taxable income of $65K (she's a physical therapist) was 9.3% Assuming your husband makes around the same as you, I'd bet that you're paying a similar marginal rate, even though you...
by TheAncientOne
Thu Jan 11, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans after kid graduates?
Replies: 35
Views: 2304

Re: Pay off student loans after kid graduates?

I can see going either way on this. It sounds like he's off to a good start with his job and career so whatI think I'd do is give him $30K (the maximum you can in one year without using up part of your exemption) and let him take care of the remaining 20K himself. Sit him down and talk about the val...
by TheAncientOne
Tue Jan 09, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Dad's Portfolio - Updated with actions on bonds!
Replies: 8
Views: 1395

Re: Help with Dad's Portfolio

I agree with you regarding moving fixed income investments into governments. The purpose of fixed income positions is to hedge against declines in equities and to have funds available to invest when the market is down. Corporate bonds are likely to decline as well if the market decline is connected ...
by TheAncientOne
Sun Jan 07, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Relocation Package - Pay 2 points for 3.5 30 year?
Replies: 14
Views: 961

Re: Relocation Package - Pay 2 points for 3.5 30 year?

Eight year payback. If you plan on keeping this mortgage for 30 years, not moving, not prepaying, not refinancing, then it is a no brainer. Life has a way of surprising you though.
by TheAncientOne
Fri Jan 05, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Contribute to 401k or pay off fixed 20yr 7.625% HELOC?
Replies: 21
Views: 1233

Re: Contribute to 401k or pay off 7.625% HELOC?

I agree with the posters who suggest paying off the HELOC with the emergency cash, then building that back up ASAP this year. If there absolutely, positively is no way to do that quickly without making this year's 401K contribution less than the max, then trim that a bit. A non-deductible 7%+ debt s...
by TheAncientOne
Fri Dec 22, 2017 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan forgiveness
Replies: 12
Views: 1838

Re: Student loan forgiveness

You can refinance the loans at much lower rates if you don't want to use up that much cash on loan repayment. This will take away any opportunity for loan forgiveness as you will no longer have government loans.
by TheAncientOne
Fri Dec 22, 2017 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Maximizing Two Years of Low Income Question
Replies: 5
Views: 554

Re: Maximizing Two Years of Low Income Question

More info needed. Being able to sell stocks at zero capital gains rate is also valuable. Which one is better (or do you even need to choose) requires data.
by TheAncientOne
Fri Dec 22, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Will you take this Fidelity bait ?
Replies: 126
Views: 14183

Re: Will you take this Fidelity bait ?

One easily forgotten benefit of Fidelity or Schwab is that most of us have an office nearby that we can go to when a problem arises. That's been useful for me, especially when managing my mother's account in her last couple of years and after her death. Even for my account, I've had a couple issues ...
by TheAncientOne
Fri Dec 22, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Paid Off $340K in Student Loans in 4 Years!
Replies: 21
Views: 1820

Re: Paid Off $340K in Student Loans in 4 Years!

A fabulous and inspiring story. It reminds me that we need to not just preach to the converted here but to encourage friends, family, and coworkers to spend less than they make and to invest those savings intelligently and consistently over the long term.
by TheAncientOne
Sun Dec 17, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Terminology: condo vs apartment
Replies: 26
Views: 2289

Re: Terminology: condo vs apartment

Daniel, you've got it right. The term condominium refers to a form of ownership. I've seen single family detached home projects in Florida for the elderly that have a condominium ownership, as the HOA does all landscape and exterior structure maintenance. The term apartment simply means a multiunit ...
by TheAncientOne
Fri Dec 15, 2017 10:07 am
Forum: Personal Consumer Issues
Topic: To buy or not in the SF Bay Area (yes another one)
Replies: 24
Views: 2753

Re: To buy or not in the SF Bay Area (yes another one)

Two additional points that I don't believe have been covered here. First, the growing congestion combined with the geography of jobs can put you at a severe disadvantage if you want/need to look for a new position. The last thing you want to do is to buy a home convenient to your job in Cupertino on...
by TheAncientOne
Thu Dec 14, 2017 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: I’ve made huge errors and hope it’s not too late
Replies: 35
Views: 5127

Re: I’ve made huge errors and hope it’s not too late

The key to long term success is to keep investing in good markets and bad. Nothing can be quite so disheartening as finally investing in equities just before the bear market begins. Notwithstanding all the talk on this site about the importance of low management fees, studies have shown that the ave...
by TheAncientOne
Sun Dec 10, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Newlyweds in West Los Angeles
Replies: 8
Views: 1181

Re: Newlyweds in West Los Angeles

1. You won't be able to buy anything in or near (within one hour's commute) of West LA with that income. 2. Use your next couple months of free rent to find a rental that works for the two of you. 3. Start cranking up those retirement savings. If you want compound interest to be your friend, the mor...
by TheAncientOne
Sun Dec 03, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Want to sell my Bitcoin, but when?
Replies: 90
Views: 9139

Re: Want to sell my Bitcoin, but when?

I'd sell first thing tomorrow morning. Forget about tax planning, you tripled your investment in something which you (and everyone else who's bought them) know nothing about.
by TheAncientOne
Sat Dec 02, 2017 8:56 pm
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 10641

Re: Which crash have you seen it before it is coming?

I have a friend who went to work for a hedge fund in 2003 or 04. His first day there, the general partner had a meeting to discuss how the fund could best play what the partner saw as a bubble in housing prices. Not only was he way early, they misplayed how to invest on that theory and the fund went...