Search found 4390 matches

by JBTX
Thu Jan 17, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Card Promo Rate Runs Out
Replies: 4
Views: 339

Re: Credit Card Promo Rate Runs Out

I don't know. I know many years ago I had a no interest furniture loan and reading the fine print missing a payment caused the entire balance to accrue interest at some usurious rate, and I think (but I won't swear) it was retro active. My conclusion was that the hazard of missing a payment and hass...
by JBTX
Thu Jan 17, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3172
Views: 615725

Re: What's Your Credit Card Rewards Strategy?

While the discussion is primarily about how to get the best deal, I'd like to mention a strategy that may not be obvious. (I have one 2% cash back card - that's all I need.) I just started my very first Health savings account . The fund provider issued a debit card for the convenience of minimizing...
by JBTX
Thu Jan 17, 2019 9:40 am
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

Besides the tax diversification already mentioned, you also gain "more" tax preferred assets with the Roth if you maximize to the limit because the maximized amount in the Roth has already been taxed. I think this fact is often underestimated. We just assume around here that the traditional tax sav...
by JBTX
Wed Jan 16, 2019 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Accountant or do it myself?
Replies: 8
Views: 1075

Re: Accountant or do it myself?

Having S corps, employees and 1099s I'd probably have an accountant to it, but I'd find one that is recommended and I trusted. And I'm an accountant! (although I don't practice as a CPA) I would make sure I understood exactly what he/she was doing and why, and review the return in detail - I've seen...
by JBTX
Wed Jan 16, 2019 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth and Pro-Rata Rule
Replies: 7
Views: 469

Re: Backdoor Roth and Pro-Rata Rule

https://www.physicianonfire.com/value-of-backdoor-roth/ He basically states it is worth about 50 bucks a year. That might lead one to believe that over ~20 years it would make ~$1K difference. But if one puts $6K/yr into Roth, earning 7%/yr, after 20 years one would have ~$246K spendable. That same...
by JBTX
Wed Jan 16, 2019 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 189
Views: 11484

Re: Why are you NOT buying rental properties?

I've toyed with the idea, although not very seriously. It would be nice to have a supplemental cash flow stream. I don't mind putting in some effort, but I am not at all a DIY handyman type, and I would not have patience with deadbeats who fail to pay rent or trash the place. I have friend, a financ...
by JBTX
Wed Jan 16, 2019 11:02 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 814
Views: 39213

Re: John Bogle has died at age 89

Positively impacted millions of people. A truly ethical man. A rare breed. RIP.
by JBTX
Wed Jan 16, 2019 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

JBTX, If we follow today's tax law, then, the tax bracket should be adjusted upward by at least 2% per year. Then, it would not be 33% in 20+ years. In any case, a simple solution would be no Roth 401K until the tax-deferred account is at least 1 million. KlangFool Everything I did was in inflation...
by JBTX
Wed Jan 16, 2019 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

That's $280K per year. That would put you in a 24% bracket, using today's rates. But it would be 33%, if rates were to revert to the 2017 schedule, in 2026, as they are scheduled to do. JBTX, If we follow today's tax law, then, the tax bracket should be adjusted upward by at least 2% per year. Then...
by JBTX
Wed Jan 16, 2019 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

They have in tax deferred (excluding Roths): $500k. Assume over 20 years that amount doubles to $1M. Something slightly higher than 3% real rate of return. $62K additional savings per year (assume traditional) times 20 years =$1.2M. We will say that increases to $1.8M real. $1M+$1.8M = $2.8M in tra...
by JBTX
Wed Jan 16, 2019 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

That's $280K per year. That would put you in a 24% bracket, using today's rates. But it would be 33%, if rates were to revert to the 2017 schedule, in 2026, as they are scheduled to do. JBTX, If we follow today's tax law, then, the tax bracket should be adjusted upward by at least 2% per year. Then...
by JBTX
Wed Jan 16, 2019 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

They have in tax deferred (excluding Roths): $500k. Assume over 20 years that amount doubles to $1M. Something slightly higher than 3% real rate of return. $62K additional savings per year (assume traditional) times 20 years =$1.2M. We will say that increases to $1.8M real. $1M+$1.8M = $2.8M in trad...
by JBTX
Wed Jan 16, 2019 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2136

Re: 37% marginal tax rate --> does Roth 401k make sense?

At 37% i'd be inclined to put most or all of it in traditional. That is too high of a tax break to pass up, and odds are you won't be in a higher bracket, even with pension. Keep in mind you have to take into account the impact of social security on taxes as well as your future pension, which compli...
by JBTX
Wed Jan 16, 2019 2:10 pm
Forum: Personal Consumer Issues
Topic: Any good reason to get a smartwatch?
Replies: 86
Views: 3360

Re: Any good reason to get a smartwatch?

My daughter wanted Apple watch so she got one for Christmas. From my perspective, it's most useful feature is that it can assist finding your phone, and she loses her phone in the house about 37 times a day. Now it no longer involves me and my phone or "find my iphone". Several times a day I hear "S...
by JBTX
Wed Jan 16, 2019 11:44 am
Forum: Personal Consumer Issues
Topic: Swimming, do you? Advice sought.
Replies: 32
Views: 2250

Re: Swimming, do you? Advice sought.

Any swimmers here? Cold weather has me starting to swim, never did much of it as a child. Sunk 12 ft my first lesson way back.. Never really breathed properly, always kept my head above water. I swam competitively through high school decades ago. What I have since found teaching a couple of kids wh...
by JBTX
Tue Jan 15, 2019 12:10 am
Forum: Personal Finance (Not Investing)
Topic: Amazon Rewards Visa -- predatory lending?
Replies: 29
Views: 3733

Re: Amazon Rewards Visa -- predatory lending?

The above posts are correct; this is how credit cards work. I just wanted to add that messing up on paying in full has happened to me twice in my two decades or so of playing the maximize-cashback game with multiple cards. The two times were with two different companies, several years apart. Both t...
by JBTX
Mon Jan 14, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: What do futures really leverage exposure to?
Replies: 27
Views: 1569

Re: What do futures really leverage exposure to?

Your question is a bit meandering. Maybe follow up with some more specific questions? Maybe a specific example? Let's say somebody has $100k cash. They could do any of the following: Buy $100k worth of SPY Buy $100k worth of SPY on (say) 20% margin, putting the other 80% in a money market account. ...
by JBTX
Sun Jan 13, 2019 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Took on too much mortgage, seeking advice on where to put money going forward
Replies: 46
Views: 5172

Re: Took on too much mortgage, seeking advice on where to put money going forward

If your plan is to be out of it in a few years, there isn't much you can do. Refis in Texas are expensive in terms of up front fees. I disagree paying off a 2.5% car loan, which is basically the rate of inflation. Paying off a near zero percent loan in inflation adjusted terms does absolutely nothin...
by JBTX
Sun Jan 13, 2019 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: RE: What to do with previous solo 401k?
Replies: 7
Views: 472

Re: RE: What to do with previous solo 401k?

Yes you can roll it over to an IRA. It will probably make doing backdoor Roth's not worthwhile though, if you do them now or plan to in the future.

I don't think Vanguard solo 401k allows roll ins ( I called and asked). Fidelity solo 401k does.
by JBTX
Sun Jan 13, 2019 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: PNC 2.35% online savings
Replies: 13
Views: 1595

Re: PNC 2.35% online savings

I'm in TX. I signed up for a checking/savings account for a modest bonus (which turns out was probably more work than it was worth for $300) but nonetheless I now have an account anyway.

I may open one up. 2.35 is a decent spread from 2.0 that I have with Capital one and discover bank
by JBTX
Sun Jan 13, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: PNC 2.35% online savings
Replies: 13
Views: 1595

PNC 2.35% online savings

by JBTX
Fri Jan 11, 2019 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 705

Re: Non deductable IRA Contributions

The more I read about the backdoor Roth the less I am inclined to want to pursue it currently, Looks like will just up my taxable income if i am reading correctly? and non deductible contribution versus taxable and TLH look to be about a wash over 30 years. Maybe just contribute to a taxable and de...
by JBTX
Fri Jan 11, 2019 10:54 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5244

Re: BHers, what is your Roth IRA %?

We are low/mid 50's age. Apart from approximately 1.5 years of "liquid" funds (bank accts, money market, ibonds) and modest 529, all of our savings is in tax advantaged. Approx 40-45% Roth and 55-60% traditional. Twenty years ago I did some large Roth conversions from a 401k rollover when they for a...
by JBTX
Fri Jan 11, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: Are REITs better to purchase when interest rates are high or low?
Replies: 64
Views: 4301

Re: Are REITs better to purchase when interest rates are high or low?

It is a bit of a complicated question. From what I have read and seen, which may include some unreliable anecdotal perceptions (so take it for what its worth) 1. REITS tend to hold up fairly well during higher levels of inflation, because rents tend to increase with inflation. Nominal Interest rates...
by JBTX
Fri Jan 11, 2019 10:29 am
Forum: Investing - Help with Personal Investments
Topic: American Funds (No Loads) vs Vanguard Index Funds
Replies: 30
Views: 2141

Re: American Funds (No Loads) vs Vanguard Index Funds

Hello, I'm new to the Bogleheads forum, but I've read through several threads discussing the advantages of passively managed Vanguard index funds over actively managed mutual funds, even ones through American Funds that have been advertised as outperforming index funds consistently. However, all of...
by JBTX
Thu Jan 10, 2019 3:37 pm
Forum: Personal Consumer Issues
Topic: Short trip to Orlando with my parents and children
Replies: 25
Views: 1529

Re: Short trip to Orlando with my parents and children

Been to Disney multiple times, grew up reasonably near parks. Since then tool kids several times. Hope to never have to do it again. Lines are almost always bad. There are really on a half dozen rides/attractions kids enjoy. There is a best way to do it, as to when to get there, where to go in, whic...
by JBTX
Thu Jan 10, 2019 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH Advice - "Diversification/Simplification"
Replies: 6
Views: 454

Re: ROTH Advice - "Diversification/Simplification"

You have emerging markets but no international developed markets. Is that what you intended? Also your portfolio has a mid/small cap tilt, with allocations much larger than a market weight index. That is neither bad nor good, just making sure you understand this. If you want market weights the targe...
by JBTX
Thu Jan 10, 2019 12:25 pm
Forum: Investing - Theory, News & General
Topic: AQR Cuts Staff After a Bad Year (39 out of 41 funds down)
Replies: 31
Views: 2618

Re: AQR Cuts Staff After a Bad Year

AQR’s U.S. mutual funds had outflows of $5 billion in the first 11 months of 2018, according to data from Morningstar Inc. Must be people who missed the part about sticking with a factor or alternative strategy through 10 or 20 years of under-performance. Probably thought they could make a quick bu...
by JBTX
Wed Jan 09, 2019 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Unlimited 2% Cash back
Replies: 38
Views: 2373

Re: Fidelity Unlimited 2% Cash back

We've had fidelity 2% cards for many years. Having said that I'm not sure of the benefit of you can get more on another card.
by JBTX
Wed Jan 09, 2019 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Complex situation, but 90k to play...sort of
Replies: 10
Views: 1181

Re: Complex situation, but 90k to play...sort of

Alright Bogleheads, appreciate your insight and opinions as always. Here is the breakdown: Assets: -90k in the combined savings and checking accounts (THIS IS WHERE I NEED HELP) -100k in my Roth (100% S&P 500 Index) -3k in Rollover IRA former employer (Vanguard Emerging Markets) -40k in brokerage (...
by JBTX
Wed Jan 09, 2019 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Fees - what is good or bad
Replies: 7
Views: 539

Re: 401k Fees - what is good or bad

My tax bracket is about 25% federal and 5% state. Like I said, they offer some Vanguard admiral funds, I'm currently in one with about 0.07% expense ratio. Let's say that's the lowest because, ultimately, it's irrelevant. They offer a small subset of Vanguard funds, generally with good expense rati...
by JBTX
Wed Jan 09, 2019 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Talk the new guy off the 80 or 90% equities cliff!
Replies: 21
Views: 2873

Re: Talk the new guy off the 80 or 90% equities cliff!

Target 2035 is a good choice. Trying to get more aggressive and shooting for the moon isn't going to help you that much given the amount you are talking about. The most important thing is how much can you save and how long can you continue to draw cash from your business. While maybe you haven't sav...
by JBTX
Wed Jan 09, 2019 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Life transition, what's next
Replies: 25
Views: 3175

Re: Life transition, what's next

Given your low expenses you aren't in bad shape. $700K at a 4.0% withdrawal rate = 28000 per year = 2333 per month, which pretty much equals your living expenses (not sure if you included medical expenses or taxes, if any). Plus the social security and small pension. It isn't clear what your asset a...
by JBTX
Wed Jan 09, 2019 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4424

Re: Would your FIRE plan work had your journey started 1965?

It would be interesting to see the data. Apparently 4.0% worked through that time period. I suspect though it would have been pretty harrowing. By 1982 your withdrawal rate vs your remaining assets was probably uncomfortably high, but then the market started back up. That is one problem with a fixed...
by JBTX
Wed Jan 09, 2019 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth buying an global fund if the expense ratio is .82
Replies: 8
Views: 676

Re: Is it worth buying an global fund if the expense ratio is .82

http://quotes.morningstar.com/chart/fund/chart?t=OANIX®ion=usa&culture=en_US Historically that fund has done well vs a total international index, but in 2018 it got killed vs the index. They tend to be value oriented, and have a heavier presence than average for Europe, which probably accounts fo...
by JBTX
Wed Jan 09, 2019 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard quick to close accounts
Replies: 17
Views: 2423

Re: Vanguard quick to close accounts

Why not leave a small balance in the vanguard account?
by JBTX
Wed Jan 09, 2019 10:21 am
Forum: Personal Consumer Issues
Topic: Paying "cash" for auto - possibly w regular credit card?
Replies: 53
Views: 3867

Re: Paying "cash" for auto - possibly w regular credit card?

I just bought a 13k used and dealer let me put $10k on 2 credit cards. I was really surprised he let me do that. Once everything was done I told him (the finance guy) I was surprised he let me do that. He said he will probably take some flack from dealer management, but he will just say that is what...
by JBTX
Wed Jan 09, 2019 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Too many credit cards?
Replies: 54
Views: 2805

Re: Too many credit cards?

Just find a 2% cash back card and roll with it. I have 15-20 cards, many opened for up front bonuses, others for ongoing rewards. The way I keep on top of them: 1. Set up all on autopsy 2. Set them all up in Quicken. Run/download transactions at least once per week. I rarely have to look at statemen...
by JBTX
Wed Jan 09, 2019 12:55 am
Forum: Investing - Theory, News & General
Topic: Safe withdrawal rate at 38 years old
Replies: 95
Views: 7389

Re: Safe withdrawal rate at 38 years old

As a benchmark I put in this quote:

https://www.immediateannuities.com/clie ... 426337.pdf

For an inflation adjusted immediate annuity you would get 2.25% for 2 40 year olds.
by JBTX
Wed Jan 09, 2019 12:36 am
Forum: Personal Finance (Not Investing)
Topic: 401k Withdrawal to pay debt or keep hacking away
Replies: 13
Views: 793

Re: 401k Withdrawal to pay debt or keep hacking away

You really need to examine how you are spending your money. Until you fix that, you will always have a problem. I have reduced my spending and expenses a lot to less than 2.5k a month with 1.8k going to rent/utilities, but I haven't always had a six figure salary only most recently. Splitting my re...
by JBTX
Wed Jan 09, 2019 12:30 am
Forum: Personal Finance (Not Investing)
Topic: 403b allows after-tax contributions but not in-service distributions
Replies: 5
Views: 349

Re: 403b allows after-tax contributions but not in-service distributions

Thanks for the replies so far! The after-tax option provides a method to secure an employer match for a mid-year hire who already hit the elective deferral (pre-tax) limit for the year at a previous employer. Allowing in-service distribution is probably more costly to administer & demonstrate compl...
by JBTX
Tue Jan 08, 2019 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Child # 3 - seeking advice from older members
Replies: 87
Views: 6514

Re: Child # 3 - seeking advice from older members

There seems to be some correlation with having special needs kids as parents get older. While unlikely, if you have a special needs kid the attention your other two will get will decrease dramatically. Also, while there are benefits to having kids while a little older, such as financial, when you ge...
by JBTX
Tue Jan 08, 2019 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: 403b allows after-tax contributions but not in-service distributions
Replies: 5
Views: 349

Re: 403b allows after-tax contributions but not in-service distributions

I would imagine in service distributions would add administrative work for employer and TPA. It could make testing more difficult to predict since you have amounts constantly coming in and out. (which is basically saying the same thing as above post) There could also be the perception that allowing ...
by JBTX
Tue Jan 08, 2019 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Withdrawal to pay debt or keep hacking away
Replies: 13
Views: 793

Re: 401k Withdrawal to pay debt or keep hacking away

Being single with $100k job should be able to knock that back pretty easily if you control spending, and you have a job. You really need to examine how you are spending your money. Until you fix that, you will always have a problem. Liquidating retirement accounts should be the absolute last resort....
by JBTX
Tue Jan 08, 2019 11:34 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11494

Re: Ray Dalio’s latest fearmongering round

It’s interesting that some of his proposed bad scenarios are specially toxic to BogleHeads principles: Bonds are for safety No need for currency diversification away from dollar It won’t just be a debt problem this time around, he said, but rather a story about unfunded pension and health-care obli...
by JBTX
Tue Jan 08, 2019 11:00 am
Forum: Investing - Help with Personal Investments
Topic: How to calculate how much to contribute to 401k to reach the maximum limit by years end?
Replies: 11
Views: 671

Re: How to calculate how much to contribute to 401k to reach the maximum limit by years end?

I missed the maximum 401k contribution for 2018 again by about 1k. Since my salary fluctuates each year (3% raise or loss of contract, etc) I often have to adjust my 401k contribution amounts a few times a year to try and make sure I contribute 18500 (it's 19000 in 2019). My employee won't do a "TR...
by JBTX
Tue Jan 08, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11494

Re: Ray Dalio’s latest fearmongering round

The Dalio All-weather portfolio maybe makes sense for someone with millions who wants to preserve capital and not necessarily see huge growth with significant risk. Someone with only hundreds of thousands is better served by a Boglehead 3 fund portfolio. Backtesting says so. The collective wisdom h...
by JBTX
Tue Jan 08, 2019 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Need advice for further investments
Replies: 19
Views: 1328

Re: Need advice for further investments

I'm looking for suggestions/advice on what kinds of accounts to use if I've already maxed out my Roth IRA and am already contributing enough to get free employer contributions at work, but still have enough money left over to want to keep investing. The reason I DON'T want to contribute more into m...
by JBTX
Mon Jan 07, 2019 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: $40,000 in debt, bankruptcy seems to be the best option right now
Replies: 258
Views: 20239

Re: $40,000 in debt, bankruptcy seems to be the best option right now

Main problem is this is too little income for a HCOL area. That isn't a great salary for any kind of engineer, and spouse makes very little. Between mortgage and HOA you are almost 50% of income. Normally I'd say sell the house, but as articulated you may not save a lot of money. Perhaps move to a o...