## Search found 9939 matches

Thu Mar 30, 2023 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Help me analyze a pension decision
Replies: 11
Views: 735

### Re: Help me analyze a pension decision

Spouse 1 is retiring and eligible for a pension. Their Option 1 is to take \$418 per month with no survivor benefit for spouse 2. Option 2 is to take \$373 per month with survivor benefit. Both are 65 years old and in good health for their age. They have saving and social security on top of this and this is not part of the original retirement plan (it’s essentially gravy). How would you advise them on this decision? Is this an inflation adjusted pension? Just looking at the raw numbers: Let’s just say a round 20 years. The difference in payments is \$45. Times 12 months, times 20 years is \$10,800. \$10,800 20 year differerence, divided by \$373 for survivor, would be 28 months. So just looking at raw numbers, ignoring time value of money, if th...
Thu Mar 30, 2023 7:08 pm
Forum: Personal Investments
Topic: Why not always take debt if it’s sub 4% / SWR discussion
Replies: 49
Views: 3599

### Re: Why not always take debt if it’s sub 4% / SWR discussion

Take someone near retirement with a \$2 million, debt free home Liquid assets of \$5M Total NW = \$7M 4% withdrawal rate = \$200k per year Now take the same person and give them a \$1.6M mortgage at 2% interest only Liquid assets: \$6.6M Total NW: \$7M 4% withdrawal rate = \$264k less \$32k of added interest from mortgage = \$232k per year I get that debt is psychological for most people but I don’t understand the need/desire for many to pay off their house later in life if rates are low. The math always argues for taking debt (within reason) so long as the interest rate is below the SWR. Thoughts? Note: this is not meant to be a discussion on if 4% is the right SWR or not. The point holds regardless of your view on what an appropriate SWR is. One n...
Wed Mar 29, 2023 11:18 pm
Forum: Personal Investments
Topic: Why not always take debt if it’s sub 4% / SWR discussion
Replies: 49
Views: 3599

### Re: Why not always take debt if it’s sub 4% / SWR discussion

If we take this logic further, we can conclude that infinite leverage leads to infinitely high safe withdrawals in retirement. There must be something wrong with that logic. That something is the SWR methodology being assumed. - If you go beyond the pass/fail grading used in the SWR methodology, failures in a leveraged strategy will be harder (i.e. you will run out of money sooner) - If you go beyond the fixed spending assumed in SWR methodology and allow variable spending, more stocks will make spending more uncertain and volatile. See amortization based withdrawal (ABW) . Using a more realistic withdrawal strategy than SWR will show more clearly why leveraging (and more stocks in general even when not leveraged) increases risk to spendin...
Wed Mar 29, 2023 10:34 pm
Forum: Personal Investments
Topic: Why not always take debt if it’s sub 4% / SWR discussion
Replies: 49
Views: 3599

### Re: Why not always take debt if it’s sub 4% / SWR discussion

Take someone near retirement with a \$2 million, debt free home Liquid assets of \$5M Total NW = \$7M 4% withdrawal rate = \$200k per year Now take the same person and give them a \$1.6M mortgage at 2% interest only Liquid assets: \$6.6M Total NW: \$7M 4% withdrawal rate = \$264k less \$32k of added interest from mortgage = \$232k per year I get that debt is psychological for most people but I don’t understand the need/desire for many to pay off their house later in life if rates are low. The math always argues for taking debt (within reason) so long as the interest rate is below the SWR. Thoughts? Note: this is not meant to be a discussion on if 4% is the right SWR or not. The point holds regardless of your view on what an appropriate SWR is. The p...
Wed Mar 29, 2023 10:28 pm
Forum: Personal Investments
Topic: Why not always take debt if it’s sub 4% / SWR discussion
Replies: 49
Views: 3599

### Re: Why not always take debt if it’s sub 4% / SWR discussion

The math always argues for taking debt (within reason) so long as the interest rate is below the SWR. If we take this logic further, we can conclude that infinite leverage leads to infinitely high safe withdrawals in retirement. There must be something wrong with that logic. That something is the SWR methodology being assumed. - If you go beyond the pass/fail grading used in the SWR methodology, failures in a leveraged strategy will be harder (i.e. you will run out of money sooner) - If you go beyond the fixed spending assumed in SWR methodology and allow variable spending, more stocks will make spending more uncertain and volatile. See amortization based withdrawal (ABW) . Using a more realistic withdrawal strategy than SWR will show more...
Tue Mar 28, 2023 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Retiring next month, Do the numbers work?
Replies: 7
Views: 1901

### Re: Retiring next month, Do the numbers work?

So your pension will be \$66k, and your expenses will be \$66k. Seems like you are already covered.

Only wildcard is if your variable mort rates goes up and your payment goes up, or else you have to liquidate savings to pay it off.
Tue Mar 28, 2023 12:47 am
Forum: Personal Finance (Not Investing)
Topic: New driver’s license number, on-line bank applications, and third-party verifiers
Replies: 25
Views: 1854

### Re: New driver’s license number, on-line bank applications, and third-party verifiers

Jack FFR1846 wrote: Mon Mar 27, 2023 8:53 pm Third party verifier? Hahahaha. LexisNexis. Buncha clowns. Wouldn't verify me because I would not acknowledge my mortgaged house address in 1960. I was 3 years old.
I can never get approved for a US bank account, best I can tell due to LexisNexis. You have to call them to unfreeze, and still doesn’t seem to work. I finally quite trying.
Mon Mar 27, 2023 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy to pay off mortgage?
Replies: 12
Views: 1263

### Re: Strategy to pay off mortgage?

Hi All - after all this hubbub with the banks, I'm inspired to pay off my home mortgage as quickly as possible. I had been doing a combination of paying down the mortgage and buying VOO/SPY/etc. in a taxable account. Given the below, what do you think is the most optimal way to pay off my mortgage quickly? Should I liquidate my taxable account to pay down the mortgage? Or liquidate it in a few years? Or avoid selling altogether (capital gains tax!)? 30 year fixed mortgage at 3.3%, paid down balance from \$925,000 to \$742,000 over the last four years. Monthly payment is \$4047. I can make \$60,000-\$120,000 per year in extra principal payments, depending on bonuses, overtime, etc. I have a taxable account that holds mostly SPY and VOO held for ...
Sun Mar 26, 2023 6:28 pm
Forum: Investing - Theory, News & General
Topic: How do you reconcile your investment account records?
Replies: 51
Views: 3423

### Re: How do you reconcile your investment account records?

Quicken. Is this just a convenient way to view all of your assets and total net worth in one place? Or does it also help you to verify that the contribution and withdrawal amounts are what you expect them to be? Eliminating the word "just," yes and yes. Opinions may (and, as you can see in this thread, do) vary. I too use Quicken - for investment accounts it allows me to see transaction activity, and it also compares the online share balance to what’s in quicken. Quicken also downloads all of my bank and credit card activity. Given we have quite a few accounts, between investment accounts, bank accounts and credit cards, it is a way to consolidate it all into one source. It isn’t the most sexy software and functionally seems date...
Sun Mar 26, 2023 2:08 am
Forum: Personal Finance (Not Investing)
Topic: At the risk of provoking ire, could this be the 1% case? [Life insurance]
Replies: 66
Views: 5698

### Re: At the risk of provoking ire, could this be the 1% case? [Life insurance]

I don’t know enough to have a detailed opinion on the applicability of WL to your specific situation. But in the terms you have spelled out, #1 could easily be handled with a 10 year term policy. Sure it is more expensive, but \$3500 a year is fairly nominal considered what it is buying you. It is less than 0.1% of your current net worth. Yes, thank you. Good thought. The simple A/B comparison, I think, is between (A) the WL policy scenario I posed here as a possibility, with borrowing possible via an iBLOC (or not, if held in ILIT), or (B) a 10 year term plus the balance invested in munis or the like, with borrowing possible within a brokerage against the bonds. The \$3,500 per year is not so much but the premiums on the term policies seem ...
Fri Mar 24, 2023 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: At the risk of provoking ire, could this be the 1% case? [Life insurance]
Replies: 66
Views: 5698

### Re: At the risk of provoking ire, could this be the 1% case? [Life insurance]

Why are you buying the policy exactly? It's not clear to me. First of all, thank you--it's an honor to have responses here from White Coat Investor in addition to Stinky and other luminaries of this board. I appreciate your weighing in. Two scenarios for "why buy life insurance at all?" are are on my mind. Scenario 1 : I am concerned about what would happen if I were to pass away in the near term. In a simple-minded way, I suppose this is the classic reason for wanting life insurance for one's family. If I were to pass between, say, age 50 and age 60, then I would be leaving DW in a tricky spot. I work for outside compensation; DW does not. If I were to be hit by the proverbial bus this weekend, DW would have to make liquidation ...
Fri Mar 24, 2023 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor Roth instead of 529
Replies: 10
Views: 907

### Re: Mega-backdoor Roth instead of 529

I’ve never been eligible for a mega back door Roth so not an expert. But overall I agree with the broad strokes of your plan. Any form of Roth IRA is probably superior to a 529. It seems like you will have multiple ways to access funds before 59.5 if you need them. At a minimum you’ll be able to access Roth contributions.

If you get a state income tax break for the 529, it probably makes sense to at least contribute enough to take advantage of that break.
Fri Mar 24, 2023 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Decline 401K?
Replies: 18
Views: 2130

### Re: Decline 401K?

I agree with everyone else, definitely do the match, that’s a no brainer.

Beyond that, it depends on the specifics of your situation as to whether additional tax deferred is helpful or not (or Roth if an option). If you are only going to be there a short time don’t worry about the fund choices because you can roll it into an IRA or another 401k when you leave.
Wed Mar 22, 2023 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Turned down for SSDI: should I hire a lawyer?
Replies: 41
Views: 4633

### Re: Turned down for SSDI: should I hire a lawyer?

I have filed for SSI for my young adult ASD son. After 9 months finally got to see a person who evaluates such things - a contracted 3rd party. If this fails I will retain an attorney for an in person appeal. I have already talked to a couple, they typically charge something like 1/3 of back pay only if you win. My understanding the odds on appeal are significantly better than initial application.
Wed Mar 22, 2023 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Can Sole Proprietor with no “wages” make employee-side retirement contributions?
Replies: 27
Views: 1401

### Re: Help! Can Sole Proprietor with no “wages” make employee-side retirement contributions?

I’m hoping this great community can help me find an answer to this vexing question! My wife has a small business; it’s a sole proprietorship – she is the only person. We set up a solo 401(k) with Vanguard. My understanding was that my wife can make two retirement account contributions each year – one as the “employee” and one as the “employer.” Accordingly, we made a 2022 employee-side contribution. What I am trying to do is find authority (an IRS bulletin?) that says that this was okay. The problem is that the IRS bulletins I’m aware of talk about employee-side contributions from “salary deferrals” and “wages.” But my wife doesn’t have any "wages" (e.g., she doesn’t get a W2) or a “salary” per se. She takes in her business’s rev...
Tue Mar 21, 2023 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Sole Proprietorship, Effective Tax Rate Seems Too High
Replies: 15
Views: 1284

### Re: Sole Proprietorship, Effective Tax Rate Seems Too High

Does a 22% effective tax rate for a home food making business set off any alarm bells? My wife has a sole proprietorship. For 2022, the effective tax rate (tax burden/gross income) is 22%. That's including social security, medicare, and income tax. 22% feels rather high. I suspect I might be missing business deductions, but on the other hand, the business just does not have a large number of costs and the profit margins are decent. We are married filing jointly. Federal tax bracket is 22%. I have a salary position with health insurance and a smallish pension, wife has sole proprietorship that adds about 8% to our overall gross income. Though of course the IRS does not tax the business separately, I do now track its expenses (including taxe...
Mon Mar 20, 2023 11:54 pm
Forum: Investing - Theory, News & General
Topic: What counts as an Emergency Fund?
Replies: 153
Views: 8946

### Re: What counts as an Emergency Fund?

whodidntante wrote: Mon Mar 20, 2023 9:13 pm I like to keep my emergency fund in emerging markets value stocks.
Any fool knows it should be in Bitcoin. Preferably at FTX.
Mon Mar 20, 2023 5:38 pm
Forum: Investing - Theory, News & General
Replies: 2218
Views: 149970

### Re: [Bank failure discussion mega-thread]

This article has an inflation adjusted FDIC history, and how the level of protection that backstopped the Great Depression bank failures was around half the \$250k we have now (possibly unlimited, if the FDIC/Fed liked your bank). Comments also below on the moral hazard issues of insuring large depositors for the safety of the banking system. https://rationalwalk.substack.com/p/the-role-of-deposit-insurance The absence of any market discipline from depositors to police the activities of banks will require the government to step up regulatory oversight of all banks in order to limit exposure of the government to losses. In the absence of market discipline from depositors and sufficient regulatory oversight, only the shareholders of banks wil...
Mon Mar 20, 2023 5:16 pm
Forum: Investing - Theory, News & General
Topic: What counts as an Emergency Fund?
Replies: 153
Views: 8946

### Re: What counts as an Emergency Fund?

I tend to view it as liquidity. Maybe 9 months expenses in bank cash and another couple of years worth in ibonds. I don’t view it as irrational to have a fixed stack of cash or cash equivalents. Some will say “mental accounting”, but that presumes an individuals risk aversion curve will always dictate the same asset allocation whether one has \$100,000 or \$1 million. By setting a hard minimum, via a fixed emergency/liquidity fund when the value of your portfolio goes down, your stock allocation will decrease if looking at entire net worth. That isn’t optimal for long term growth but it does provide a safety cushion. It is very plausible for a 60 year old to have a risk aversion based optimal asset allocation of 0/100 at \$100k, 50/50 at 1 mil...
Mon Mar 20, 2023 4:27 pm
Forum: Investing - Theory, News & General
Topic: Can \$311B invested be wrong?
Replies: 68
Views: 6656

### Re: Can \$311B invested be wrong?

The high dividend funds and the dividend appreciation/growth funds are two different beasts. High dividend funds to be value oriented funds. Dividend growth funds tend to have high quality stocks that have a consistent history or dividend growth, and the actual dividend yield as a percent is not particularly high. If your goal is to get dividend income for dividends sake, dividend growth/appreciation is not the way to do it. Again I like the growth appreciation funds in that they tend be be quality companies and somewhat lower volatility. One reason/narrative for dividend stocks, especially ones that are consistent or increase, is that if management has to commit to a dividend, they are less likely to reinvest it in higher risk bad investme...
Mon Mar 20, 2023 12:52 pm
Forum: Investing - Theory, News & General
Topic: Can \$311B invested be wrong?
Replies: 68
Views: 6656

### Re: Can \$311B invested be wrong?

As a final check on any investments I intend to make, I look and see how much money is invested in a fund to understand how other hopefully rational investors have decided. Any VG fund that has a significant amount invested (\$50B?) passes this final test. Regarding one of the forum’s favorite topics, dividend irrelevance, after reading about every thread I could find here, I thought I would see how investors were voting with their feet. Just by reading the product summaries, there are at least seven (probably more) VG funds that have a dividend focus: High Dividend (VHYAX/VYM), Dividend Appreciation (VDADX/VIG), Dividend Growth (VDIGX), Equity Income (VEIRX), Wellesley Income (VWIAX), International High Dividend (VIHAX/VYMI), and Internati...
Mon Mar 20, 2023 12:46 pm
Forum: Personal Consumer Issues
Topic: T-Mobile Magenta Plans, etc.
Replies: 21
Views: 2818

### Re: T-Mobile Magenta Plans, etc.

We’ve been with T-Mobile for a couple years and have been satisfied. Was with ATT many years before. T-Mobile is cheaper for family plan. Also has some nice streaming perks - free Apple TV, discounted Netflix and free paramount plus. I’d say coverage is marginally worse than ATT but not by much. We live in a major metro area, but coverage is still generally good when going through rural areas.
Sun Mar 19, 2023 9:49 pm
Forum: Investing - Theory, News & General
Topic: Tipswatch - Guessing I Bonds fixed rate, May 1, 2023
Replies: 90
Views: 13112

### Re: Tipswatch - Guessing I Bonds fixed rate, May 1, 2023

The author speculates that the coming fixed rate may not be as high as originally anticipated due to recent banking events. I bought a decent chunk of ibonds over the last couple of years between me, spouse, RLT and sole prop business and gift box. With variable rates and inflation trending down, and cash rates going up I probably won’t be adding to the positions, but what I may do is sell some of the zero percent fixed rates I’ve accumulated over the years and buy some at the higher fix rate. I’ll probably wait until later in the year to do that in case fixed rates rises, and also to cash out any purchases within 5 years to lose only 3 months at the new combined May lower rate. I assume you didn't hit the \$10K limit this year from either ...
Sun Mar 19, 2023 9:39 pm
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 4738
Views: 470579

### Re: [What TV Show Have You Recently Watched?]

stoptothink wrote: Tue Mar 14, 2023 6:33 am
judge1905 wrote: Mon Mar 13, 2023 8:42 pm
Barkingsparrow wrote: Sat Jan 28, 2023 1:14 pm Working through Counterpart on Prime. Starring the wondrous JK Simmons in dual roles in a convoluted and tense espionage drama with sci-fi overtones. Definitely not for the "wholesome" crowd. Really enjoying this series, it got a 100% rating on Rottentomatoes.com.
One of my favorite series, and definitely deserved more attention.
Really good series that almost nobody has heard about.
Great show too bad only 2 seasons.
Sun Mar 19, 2023 8:34 pm
Forum: Investing - Theory, News & General
Topic: Tipswatch - Guessing I Bonds fixed rate, May 1, 2023
Replies: 90
Views: 13112

### Re: Tipswatch - Guessing I Bonds fixed rate, May 1, 2023

The author speculates that the coming fixed rate may not be as high as originally anticipated due to recent banking events.

I bought a decent chunk of ibonds over the last couple of years between me, spouse, RLT and sole prop business and gift box. With variable rates and inflation trending down, and cash rates going up I probably won’t be adding to the positions, but what I may do is sell some of the zero percent fixed rates I’ve accumulated over the years and buy some at the higher fix rate. I’ll probably wait until later in the year to do that in case fixed rates rises, and also to cash out any purchases within 5 years to lose only 3 months at the new combined May lower rate.
Sun Mar 19, 2023 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: The Final, Definitive Thread on Bank Bonuses
Replies: 38
Views: 2966

### Re: The Final, Definitive Thread on Bank Bonuses

The past several years I have done a few of these. Usually focusing on the larger bonuses, but never putting more than \$20k in there. I’ve done chase personal and chase business and that is always fairly easy. I tend to do more credit card bonuses, I find the bank bonuses a bit more of a hassle due to tying up funds.

Recently I’ve done less, party due to tying up more liquidity in ibonds. They just don’t seem as attractive to me given your can earn 3-4% just sticking into a high yield account of treasuries.

I’ve always used Dr of Credit for both banks and cards.
Tue Mar 14, 2023 10:44 pm
Forum: Investing - Theory, News & General
Topic: If I was retiring today, I could comfortably withdraw 5% (mid-30s dad using ERN SWR Toolbox)
Replies: 239
Views: 20789

### Re: If I was retiring today, I would comfortably withdraw 5% (mid-30s dad using ERN SWR Toolbox)

I suspect odds are 5% would work, but the probability of failure is too high for my tastes. Even if it does work over many decades there will probably ups and downs and times where you are hoping and praying that markets recover to get you back on track. Assuming it does recover, as it usually does, mathematically that would be considered a success. But for me, I don’t want to live that way. I don’t don’t want to be white knuckling the downturns.

Also, it seems like you are locking in choices at a young age and assuming nothing materially bad happens along the way.

Having said that, I don’t have all the answers, and can’t predict the future. So hopefully it works out for you.
Mon Mar 13, 2023 7:56 pm
Forum: Personal Finance (Not Investing)
Replies: 24
Views: 3553

### Re: Advice for retiring loved one who missed out on Bogleheads

I recently found out that a relative who is almost 65 but still working for at least 1-2 more years has kept 100% of his retirement accounts in stock index funds. I don't know exact fund names, but they are at different brokerages/banks. He only started saving for retirement around age 40, knew enough to buy index funds, and keeps about 10% in cash. He has never held any bonds and casually told me that his retirement accounts are down 10-15%. I would guess his entire net worth is 1 to 1.2 million plus about 500k home equity. I'm afraid that I had an allergic reaction to the news of the 100% stocks at age 65, but my goal now is to help him. He and his wife live extremely frugally (<40k/year) so will not run out of money (I THINK). There is ...
Mon Mar 13, 2023 11:20 am
Forum: Personal Consumer Issues
Topic: Do they still make simple washing machines without any computer chips?
Replies: 108
Views: 39551

### Re: Do they still make simple washing machines without any computer chips?

This one does not use modern technology and has a simple, time tested design. The motor will last as long as you do. https://www.amazon.com/Columbus-Washboard-2072-Family-Silver/dp/B0000CBILJ/ref=sr_1_7?dchild=1&keywords=washboard&qid=1602467579&sr=8-7 :annoyed Actually, there are quite a few manual washing machines still on the market that do quite a good job (and are better than just a washboard.) They're usually marketed to long-term camping and off-grid situations. The manual part can be a handle or a foot pedal. I'm not providing links, because that's not what OP actually wants. I'd suggest looking to the basic models with fewer features. The less they tout features that say "automatic," the fewer chips are used....
Mon Mar 13, 2023 2:03 am
Forum: Personal Investments
Topic: Contrafund...thinking of getting out
Replies: 20
Views: 3740

### Re: Contrafund...thinking of getting out

I’ve had a Roth with contrafund and low price stock for decades and that account has appreciated more than any of my other accounts. I do realize much of that outperformance was probably earlier years. I’m always looking at potentially divesting them but haven’t been compelled to do so yet.
Sun Mar 12, 2023 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Cash Management - for business [FDIC]?
Replies: 2
Views: 482

### Re: Fidelity Cash Management - for business [FDIC]?

This fidelity page should confirm your questions. For a CMA type account: In utilizing the Program, your uninvested cash balance is swept to a program bank where the deposit is eligible for FDIC insurance. If you have more than \$245,000 in uninvested cash in your account, the Program maximizes your eligibility for FDIC insurance by systematically allocating this uninvested cash across multiple program banks. At a minimum, there are generally five banks available to accept customer deposits, making customers eligible for nearly \$1,250,000 of FDIC insurance. Anything in excess is put into money markets: The Money Market Mutual Fund Overflow component ("Money Market Overflow") of the FDIC Insured Deposit Sweep program, was added to ...
Sat Mar 11, 2023 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Cash Management - for business [FDIC]?
Replies: 2
Views: 482

### Fidelity Cash Management - for business [FDIC]?

Does anybody use Fidelity Cash Management for business? Are you able to increase FDIC over \$250k via their sweeping program to multiple banks?

What other solutions are available for small business, other than having multiple accounts and constantly moving money in and out to keep them all within \$250k?
Fri Mar 10, 2023 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Quitting without 2 weeks notice or a new job
Replies: 116
Views: 11396

### Re: Quitting without 2 weeks notice or a new job

There is absolutely zero reason to work in an abusive environment. The environment and the offending people are not going to change and it isn’t going to get better.

I’d get the heck out ASAP. Afterwards a conversation with an employment attorney wouldn’t hurt. At a minimum you may very well be able to get unemployment comp even though you quit, as you could argue you were being forced out and working in an unethical and abusive work environment.
Fri Mar 10, 2023 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Cash or Mortgage
Replies: 26
Views: 2142

### Re: Cash or Mortgage

Wife and I are submitting an offer that is likely to be accepted based on conversations with sellers. We max our 401ks already. Would I be better off paying cash or taking a mortgage given the rate is a little under 7% and likely to go down in the future (not interested in opposing perspectives of that assumption)? Cash is currently in my taxable account. Just sold all stock at \$18k loss, which I can buy back in should we decide the mortgage option. Offer Price: \$500k Downpayment: 20% Rate: 6.9% Annual Real Estate Related Tax: \$7,500 Fed Top Marginal: 24% We take the standard deduction and would likely continue to do so Again, we max our 401ks already and that would not change regardless of either option. I am genuinely confused in reading...
Fri Mar 10, 2023 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Quitting without 2 weeks notice or a new job
Replies: 116
Views: 11396

### Re: Quitting without 2 weeks notice or a new job

Hi all. DW is in a very difficult situation we're trying to navigate. She's mid-career, and part of the senior leadership team of her department (not a department head, or C-level). She's been at her company for a little over 2.5 years. It's been a long, hard journey that in hindsight, was not as advertised and this company was not a good fit. Live and learn, that part is ok. We make wrong turns in our career, and she's been looking for a new job since the end of last year. However, the combination of new executive leadership about 6 months ago (including her department head) and a series of situations over the past few months events have made it debilitating (and I don't use that word lightly) for her to go to work each day. Without getti...
Fri Mar 10, 2023 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Need help to calculate vehicle depreciation deduction for business
Replies: 3
Views: 259

### Re: Need help to calculate vehicle depreciation deduction for business

Bought and put in use a small car for business in 2019. Initial cost \$44,500. Here are the numbers in past. If they are wrong, I don't plan to amend but just want to calculate correct numbers for next few years. I assume that the vehicle will be fully depreciated on Dec 31, 2024. I am working on 2022 return. Turbo tax says that depreciation for 2022 AND 2023 is \$0. Not sure why. Can you please guide me as to what numbers should be in the blanks below? I am using 200DB HY Year Business Use Depreciation deduction on 1120s 2019 69.56 18,100 12,590 (special depreciation) 2020 61.40 3,206 8,743 2021 65.10 8,448 2,087 2022 62.00 ?? ?? 2023 assume 65% ?? ?? 2024 assume 65% ?? ?? why is your 2020 deprecation 3206 and deduction 8743? I would have e...
Fri Mar 10, 2023 2:55 pm
Forum: Personal Consumer Issues
Topic: Key West first timer
Replies: 14
Views: 1570

### Re: Key West first timer

It has its charms but it can get touristy and loud and partly tacky. You really kind of have to know what you want specifically to see and do. Don’t go there thinking you will go to a beach. Whatever beach they have there is pretty underwhelming.

A bus ride from Key West to Hollywood might take much of the day.
Fri Mar 10, 2023 2:37 pm
Forum: Investing - Theory, News & General
Replies: 2218
Views: 149970

### Re: [Silicon Valley Bank fails, FDIC takes over]

Article on 10 banks that could face trouble. Includes Boglehead favorite Ally bank

https://www.marketwatch.com/story/the-1 ... =home-page
Sun Mar 05, 2023 11:03 am
Forum: Personal Consumer Issues
Topic: What do you do with document management at home?
Replies: 28
Views: 2402

### Re: What do you do with document management at home?

I’m kind of slowly transitioning to electronic. I don’t keep new paper statements, I turn them off so they aren’t sent and occasionally I go online and download them just to have them. I still have a couple of file cabinets with old tax returns and some old statements. I culled out most of the detail and mainly kept the main forms. I still hold on to them for some unknown reason. Maybe eventually I’ll scan them. Too lazy to at this point. I also have some very old statements. Probably don’t need them but I hold on to them. Pretty much everything else I either toss/shred, or when I get it and I want to hold it for a spell I put it in a large drawer with a bunch of papers. Every year I go through that drawer and toss/shred 95% of what is in it.
Sun Mar 05, 2023 10:45 am
Forum: Personal Consumer Issues
Topic: Any bogleheads decide to outsource their lawn care?
Replies: 58
Views: 3740

### Re: Any bogleheads decide to outsource their lawn care?

I grew up behind a lawnmower, but as I approach 50 I'm beginning to reassess whether I shouldn't just pay somebody to take care of the mowing/edging/trimming etc. We live in a subdivision in Houston on a 8000sf lot with lots of beds. I do enjoy some lawn care, just not the 3-4 hours per week. I travel with my job (3-4 days gone per week) and always feel like I don't have enough time on the days off. I would just like more time to do the things I want to do, especially now that the kids are almost gone. Our income level/hourly wage more than dwarfs the cost of lawn care. I recently hired a pool company to take care of the pool, so maybe its just a trend..... My question is has any other Bogleheads reached this conclusion and do you have any...
Sun Mar 05, 2023 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Mother in Law Surprise....sort of [How do I pay off her credit card debt?]
Replies: 69
Views: 7664

### Re: Mother in Law Surprise....sort of [How do I pay off her credit card debt?]

Just a different perspective. Take it for what it’s worth. Evaluate if bankruptcy is an option. It may or may not be depending on the state. I’m going to assume her keeping a strong credit rating isn’t a priority. As to credit cards I have a young adult relative who spent a bunch of money there was no way she was able to pay off. Bankruptcy may or may not be in her future. But in a little less than two years they have gone to collections and are now sending settlement offers substantially below the debt face value. You may be able to sit on them and see what happens, or call them and tell them the situation. Often these credit card companies are pretty quick to negotiate and work out very low interest payment plans. Can you declare bankrup...
Sun Mar 05, 2023 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Oops! - Forgot to file Form 8606 for Roth conversion
Replies: 75
Views: 5467

### Re: Oops! - Forgot to file Form 8606 for Roth conversion

Many moons ago, I had to file Form 8606 for several years in arrears because the form was new and I did not know that I had to file such a form. Just for entertainment, here is a link to the very first form 8606. It was then a one page very simple and straightforward form. They have since added many sections to that form but did not bother to change the form title. https://www.irs.gov/pub/irs-prior/f8606--1987.pdf Several decades ago I contributed a very small non deductible IRA and failed to do an 8606. Later I figured out I should have, so I sent in an 8606 form with an explanation and apology for the omission. I never heard anything after that. For the first time in many years I did a Roth conversion this year and am trying to figure ou...
Sun Mar 05, 2023 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Mother in Law Surprise....sort of [How do I pay off her credit card debt?]
Replies: 69
Views: 7664

### Re: Mother in Law Surprise....sort of [How do I pay off her credit card debt?]

Just a different perspective. Take it for what it’s worth.

Evaluate if bankruptcy is an option. It may or may not be depending on the state. I’m going to assume her keeping a strong credit rating isn’t a priority.

As to credit cards I have a young adult relative who spent a bunch of money there was no way she was able to pay off. Bankruptcy may or may not be in her future. But in a little less than two years they have gone to collections and are now sending settlement offers substantially below the debt face value. You may be able to sit on them and see what happens, or call them and tell them the situation. Often these credit card companies are pretty quick to negotiate and work out very low interest payment plans.
Sun Feb 26, 2023 6:26 pm
Forum: Personal Consumer Issues
Topic: Can you lock an iphone with hardware security key? [iPhone security discussion]
Replies: 137
Views: 6934

### Re: iPhone security

jabberwockOG wrote: Sun Feb 26, 2023 6:05 pm Suggest you set your iphone option to require passcode or faceID immediately. Also set Erase Data option - this will erase all data on your phone if passcode guessing attempts exceed 10 incorrect attempts. These options are under FaceID and Passcode setting section.

Not a good idea to have banking and investment apps on your phone.
There is a code and Face ID is set up. But as mentioned if Face ID doesn’t work the code will override it.

It seems like most here don’t think others getting the code is an issue. To me it doesn’t seem that difficult for parties that are truly determined to do it.

Not having banking apps would be a big inconvenience. In my case I see no need for brokerage company apps on phone.
Sun Feb 26, 2023 4:23 pm
Forum: Personal Consumer Issues
Topic: Can you lock an iphone with hardware security key? [iPhone security discussion]
Replies: 137
Views: 6934

### iPhone security

https://www.wsj.com/articles/stolen-iph ... a-2c4a3be7

It seems if a thief can get your phone and your pass code they pretty much have keys to the kingdom. Typically you have passwords for apps saved in the phone, maybe some banks and other apps. Emails on phone. 2Fa usually comes to he phone or an app on the phone.

What can you do to reduce this risk? I don’t put brokerage accounts on phone but do banks.
Sun Feb 26, 2023 2:27 pm
Forum: Personal Investments
Topic: New 401k. Thoughts on fees?
Replies: 13
Views: 1222

### Re: New 401k. Thoughts on fees?

What are you asking? They have fees. The fees are higher than you would pay at your brokerage, but they are not exorbitant. Put your money in a target date fund or the S&P 500 and roll it over when you leave. Whatever. What are you proposing to do instead? Invest in your taxable brokerage? I was looking for thoughts like this. Thanks. I would consider instead putting it in my taxable brokerage. I would not consider your taxable brokerage over your 401(k) unless fees were well over 1%, I was planning on staying at the company for twenty years, and I saw no hope of influencing the company to choose a lower cost plan or cover the fees. Note that the average fees for 401(k)s around the country are about 1%, they are just frequently paid by...
Sun Feb 26, 2023 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Card to Pay Goverment Fees
Replies: 28
Views: 1096

### Re: Credit Card to Pay Goverment Fees

You might find a few cases where you have to pay 2.5% but get 2.6% or something like that, and the fee would be deductible. My guess is that deducting the fee as a business expense would mean you'd have to declare the cash back as income, but someone with more knowledge will tell us if that's the case. Cash back is not generally considered income for ordinary non-deductible expenditures. I have never heard of a requirement to report a credit card reward as income. I expect that would change the credit card industry. The the banks would probably be required to send out 1099 forms. Please let me know if you have seen a ruling on that. I don't know which is why I'd like someone who knows to comment. Obviously credit card cash back isn't norma...
Sun Feb 26, 2023 2:17 pm
Forum: Personal Consumer Issues
Topic: Attempting self imposed \$500 annual discretionary spending challenge
Replies: 183
Views: 9663

### Re: Attempting self imposed \$500 annual discretionary spending challenge

It is all mental game playing. Lets say I drive 30 mins to go hiking. That 4 bucks in gas is clearly discretionary spending. Go to the grocery store and buy 20 meat instead o f8? That is also discretionary spending. Buying 200 dollar glasses instead of 40? You guessed it... What you call your spending doesn't matter. It is all about what you spend. Well I am frugal with respect to grocery shopping and eyewear. I buy prescription eyeglasses for \$14 per pair online. I shop at 4 different stores once or twice per month (in a circular combined trip) and buy in bulk, freezing meats when they are on sale etc. (We shop at various stores because we keep a price book and buy everything for as little as possible.) We rarely eat \$20/lb meat let alone...
Sun Feb 26, 2023 2:14 pm
Forum: Personal Consumer Issues
Topic: Attempting self imposed \$500 annual discretionary spending challenge
Replies: 183
Views: 9663

### Re: Attempting self imposed \$500 annual discretionary spending challenge

Doesn't sound like an enjoyable year to me unless you have no choice. What's the point of just saving money for the sake of having more? Life's too short. I started too late. I used to live paycheck to paycheck, until 5 years ago. I really want to get this home paid off and have around \$500k in retirement over the next 15 years. We'll draw on it later at no more than 4% and travel a couple times per year etc.. when he's no longer working. My net worth is only like \$86k right now. I should have this home paid off within a couple years. I want at least a \$50k emergency fund after that.. then we might travel once per year after we accomplish that. So maybe in about 5 or 6 years. Good for you. You’ve found something that works for you and take...
Sun Feb 26, 2023 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - \$210,000
Replies: 94
Views: 17304

### Re: another 5500ez penalty tale - \$210,000

This is a huge wake up call for solo K owners. The Secure Act was partially paid for by a humongous 10 X increase in 5500 filing penalties. And apparently, the IRS intends to enforce these fines from the start. I can only guess how many taxpayers may be at risk. SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE RETIREMENT PLAN RETURNS. (a) In General.—Subsection (e) of section 6652 of the Internal Revenue Code of 1986 is amended— (1) by striking “\$25” and inserting “\$250”; and (2) by striking “\$15,000” and inserting “\$150,000”. (b) Annual Registration Statement And Notification Of Changes.—Subsection (d) of section 6652 of the Internal Revenue Code of 1986 is amended— (1) by striking “\$1” both places it appears in paragraphs (1) and (2) an...