Search found 129 matches

by TheAncientOne
Thu Jun 07, 2018 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Should I pay off my HELOC, Refinance or Invest
Replies: 18
Views: 1369

Re: Should I pay off my HELOC, Refinance or Invest

Someone correct me if I'm wrong but it was my understanding that HELOC interest is no longer tax deductible under the new law. Assuming that's correct, I'd be paying down that loan ASAP because a 7% after tax return will be hard to match with any alternative investment.
by TheAncientOne
Sun Jun 03, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Need some direction: 5K payout in July....towards loans or Roth?
Replies: 18
Views: 939

Re: Need some direction: 5K payout in July....towards loans or Roth?

Keep it simple. Use 4K to pay off the two highest interest rate loans and put the remaining 1K into your underfunded emergency fund. Going forward, I'd take advantage of your lower monthly payments to increase your 401k. A 4% contribution, combined with an equal amount from your company is not enoug...
by TheAncientOne
Sat Jun 02, 2018 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab
Replies: 12
Views: 1502

Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

I suggest Fidelity or Schwab for most people because having an office you can go to beats having only an 800 number like Vanguard. As others here have suggested, you can open an account then have your new firm get all your assets transferred,
by TheAncientOne
Sat Jun 02, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Starting new Job in July please advise: how to be a better boglehead.
Replies: 24
Views: 2530

Re: Starting new Job in July. Please advise to be a better boglehead

If you're not there already, you need to hang out at whitecoatinvestor.com. Given your high income, LCOL location, and low housing costs for now, I don't understand why you'd be fooling around with PSLF. You didn't mention what interest rate you're paying but the very first step is to refinance at a...
by TheAncientOne
Sat Jun 02, 2018 9:59 am
Forum: Personal Consumer Issues
Topic: Friends with an EJ Advisor
Replies: 49
Views: 3955

Re: Friends with an EJ Advisor

The easiest time to say No is at the very outset. Just tell him that you're not interested in having a financial adviser. The whole idea of dinners like this is to create a sense of obligation on your part. Everyone should read Robert Cialdini's book, Influence, which discusses how people are made t...
by TheAncientOne
Tue May 29, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Does VOO or VTI invest in Berkshire Hathaway?
Replies: 11
Views: 1120

Re: Does VOO or VTI invest in Berkshire Hathaway?

JoMoney, the B shares were created in the 1990s, well before the BNSF acquisition. However that acquisition led to the issuance of far more B shares, making those shares eligible for inclusion in the S&P 500 index.
by TheAncientOne
Thu Apr 26, 2018 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Quick question: inherited real estate - how to get a tax basis?
Replies: 17
Views: 1492

Re: Quick question: inherited real estate - how to get a tax basis?

You hire an appraiser knowledgeable in farmland values in that area to do a valuation estimate as of date of death. If the land has been leased for many years to a working farmer, the net cash flow will provide one means of estimating its worth while comparable sales will provide another.
by TheAncientOne
Thu Apr 26, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Short Term Loan / Bridge Loan from Family
Replies: 10
Views: 453

Re: Short Term Loan / Bridge Loan from Family

I suspect the technical answer is that you should have some legal documentation that includes the appropriate short term interest rate. As a practical matter, as long as both you and the family member are comfortable with an informal loan, they give you the money which you repay a month or two later...
by TheAncientOne
Thu Apr 26, 2018 9:30 am
Forum: Personal Consumer Issues
Topic: Help! Nephew is asking for college advice (undergrad choices)
Replies: 41
Views: 2286

Re: Help! Nephew is asking for college advice (undergrad choices)

Northeastern and GW are very expensive programs that are no better than adequate. I agree with you that you can get a perfectly good engineering education, especially for undergrad, from Rutgers. As others have pointed out, Purdue is a well regarded university with an engineering orientation. It's b...
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: 79
Views: 6173

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: 1136

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: 1089

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: 18
Views: 2642

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: 2120

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: 19
Views: 1548

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: 3685

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: 745

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: 558

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: 5369

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: 3011

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: 8397

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: 2787

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: 996

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: 3322

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: 765

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: 2404

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: 2404

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: 5478

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: 5478

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: 771

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: 1979

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: 549

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: 6953

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: 6479

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: 205

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: 34959

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: 2508

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: 2203

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: 2531

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: 1533

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: 1842

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: 4921

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: 2400

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: 364

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: 876

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: 2400

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: 1483

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: 1041

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: 1334

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: 1926

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.