Search found 3549 matches

by JBTX
Sun Aug 19, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: 529 ABLE
Replies: 2
Views: 123

Re: 529 ABLE

Is your child eligible for SSI and Medicaid? One of the benefits of an ABLE is it shields those assets from qualification for SSI and Medicaid. They are likely pretty easy to use. Seems like I recall TN having a pretty good plan. The downside is you can only accumulate $100k in them at which point y...
by JBTX
Sun Aug 19, 2018 11:35 am
Forum: Investing - Help with Personal Investments
Topic: 30k in Solo 401k. Should I convert this to my Roth Solo 401k?
Replies: 2
Views: 209

Re: 30k in Solo 401k. Should I convert this to my Roth Solo 401k?

It really depends on a lot of factors, including income now and projected income in retirement. For most people some sort of mix between traditional and Roth 401k and IRA is probably optimal. All else equal the higher your current income and tax rate the better traditional looks in comparison.
by JBTX
Sat Aug 18, 2018 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 46
Views: 1596

Re: How to Treat "Negative" Basis in Nondeductible IRA

I'd argue that sooner or later you will likely convert. There is no long term benefit to waiting until your non deductible is "in the money". You are just putting off the pain. Not sure what pain I would be putting off, but that misses the point. :happy I was not talking about what I would do. I wa...
by JBTX
Sat Aug 18, 2018 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Why the Yale Endowment Hate? [Request for portfolio help]
Replies: 73
Views: 5553

Re: Yale vs. Three-Fund

As an alternative you could consider the Three Fund Portfolio or the Core-4 for simplicity and effectiveness. abuss368: Your "alternative" Second Grader Three Fund Portfolio would have been a good choice: MarketWatch has a long-running contest between eight "Lazy Portfolios." The Three-Fund Portfol...
by JBTX
Sat Aug 18, 2018 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 46
Views: 1596

Re: How to Treat "Negative" Basis in Nondeductible IRA

Why would you not convert? You are no worse off in a Roth, are you? Best case you have some remaining basis to carry forward. Worst case is you come out the same, no income or loss on either the non deductible or Roth as long as the ND remains below basis. You make a good argument. I should restate...
by JBTX
Sat Aug 18, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 46
Views: 1596

Re: How to Treat "Negative" Basis in Nondeductible IRA

So what happens if you put $6500 in a traditional non deductible, it falls to $6000, and you do a Roth conversion? Do you have an $500 ordinary income loss upon conversion? I know if you convert higher than your contribution you will have ordinary income. People do not agree on what happens with th...
by JBTX
Sat Aug 18, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 46
Views: 1596

Re: How to Treat "Negative" Basis in Nondeductible IRA

I didn't think it's possible to have negative basis in an IRA. It's interesting that we have two kinds of posts: half of Bogleheads say making non-deducible contributions and dealing with form 8606 is a like having your wisdom teeth removed every year - a curse you pass down to future generations. ...
by JBTX
Sat Aug 18, 2018 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 46
Views: 1596

Re: How to Treat "Negative" Basis in Nondeductible IRA

So what happens if you put $6500 in a traditional non deductible, it falls to $6000, and you do a Roth conversion? Do you have an $500 ordinary income loss upon conversion? I know if you convert higher than your contribution you will have ordinary income.
by JBTX
Sat Aug 18, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

And I don't understand the worship of retirement by some. I tend to think of hobbies as something that supplement your life, not something that sustains it. It isn't inconceivable to me that to some people income generating activities are more stimulating than non income generating ones. It is pret...
by JBTX
Sat Aug 18, 2018 9:45 am
Forum: Personal Consumer Issues
Topic: The Fall of Consumer Reports
Replies: 42
Views: 5514

Re: The Fall of Consumer Reports

Perhaps a better model of success for it to follow is Morningstar.
by JBTX
Sat Aug 18, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

Retirement is very flexible concept. I would argue that those people retired but did what the liked. Yes, if your purpose in life is to be admired by strangers retiring early is not the way. But what is the chance to end up admired? Anyway it is irrelevant if one wants to retire early or not at 33....
by JBTX
Sat Aug 18, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

If someone plans to earn a 7-figure income in their 50s and 60s, would you say 100% Roth (401k and backdoor) is the best option at present time (age 30s)? i think trad is still better in this case. if everything works out, money is unlikely to be a limiting factor in this person's life satisfaction...
by JBTX
Sat Aug 18, 2018 9:30 am
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

Retirement is very flexible concept. I would argue that those people retired but did what the liked. Yes, if your purpose in life is to be admired by strangers retiring early is not the way. But what is the chance to end up admired? Anyway it is irrelevant if one wants to retire early or not at 33....
by JBTX
Fri Aug 17, 2018 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

Retire early. That's not for everyone. Warren Buffett didn't. Marc Cuban didn't. Grant Cardone didn't. Ben Franklin didn't. Richard Feynman didn't. The list goes on. Actually, anyone I admire or respect across the board - did not retire early. Retirement is very flexible concept. I would argue that...
by JBTX
Fri Aug 17, 2018 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Do we really need to save 20 % ?
Replies: 28
Views: 2694

Re: Do we really need to save 20 % ?

It really depends on the loan rate, but I tend to agree with your wife. I would however prioritize any tax deferred investing opportunities you may have.

As to 20% savings, it really depends. The less you save the longer you will have to work.
by JBTX
Thu Aug 16, 2018 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Enough. How do I invest in Australia.
Replies: 22
Views: 1478

Re: Enough. How do I invest in Australia.

Looking at those graphs it appears perhaps all of the Australian out performance is due to the 1930s. Australia didn't take much of a hit during great depression. The US lost much more than 50% After that I suspect the returns are pretty similar. Here's the decade-by-decade performance comparison f...
by JBTX
Thu Aug 16, 2018 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Why the Yale Endowment Hate? [Request for portfolio help]
Replies: 73
Views: 5553

Re: Why the Yale Endowment Hate?

I'm a 29 year old investor with some knowledge of index investing. In my Roth IRA, I have the following allocation, which is the Yale Endowment model with a small-cap value tilt: Total Market 35.0% Real Estate 20.0% Small Cap Value 10.0% International Dev. 15.0% Emerging Markets 5.0% TIPS 7.5% Long...
by JBTX
Thu Aug 16, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Enough. How do I invest in Australia.
Replies: 22
Views: 1478

Re: Enough. How do I invest in Australia.

...I'm not interested in claims that past performance doesn't guarantee future results... That's not a "claim," that's a fact. Evidence is evidence, and I'm ready to use it. Evidence is evidence, and I'm ready to use the evidence that past performance doesn't guarantee future results. Does anyone k...
by JBTX
Thu Aug 16, 2018 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

Retire early. That's not for everyone. Warren Buffett didn't. Marc Cuban didn't. Grant Cardone didn't. Ben Franklin didn't. Richard Feynman didn't. The list goes on. Actually, anyone I admire or respect across the board - did not retire early. Retirement is very flexible concept. I would argue that...
by JBTX
Thu Aug 16, 2018 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Non-owner contributing to home renovations: what's fair?
Replies: 39
Views: 2287

Re: Non-owner contributing to home renovations: what's fair?

Agree if you want separate finances I'm not sure why she would pay part of yours. If then you want to give her equity in your home that is a bigger mess. If she wants to give you a gift, and you want to accept it, that is up to you. But at that point it kind of obligates you to assist her with her n...
by JBTX
Thu Aug 16, 2018 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional 401k? + Roth IRA
Replies: 4
Views: 356

Re: Roth or Traditional 401k? + Roth IRA

I've read a lot of responses on this question but haven't seen a post that seemed close enough to my own situation so I figured I'd post one. Basically, I'm trying to figure out whether to contribute to my roth or traditional 401k. Below are some basic facts about me. -26, single (remaining single ...
by JBTX
Thu Aug 16, 2018 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

Retire early. That's not for everyone. Warren Buffett didn't. Marc Cuban didn't. Grant Cardone didn't. Ben Franklin didn't. Richard Feynman didn't. The list goes on. Actually, anyone I admire or respect across the board - did not retire early. Early retirement forums are filled with doom and gloom ...
by JBTX
Thu Aug 16, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 541
Views: 31681

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Currency risk is related to fluctuations in exchange rates. It only exists across borders, i.e. when investing internationally. There is no currency risk involved if you use dollars to invest in dollar-denominated assets. The risk of a local currency collapse is not "currency risk." Venezuelans try...
by JBTX
Thu Aug 16, 2018 1:00 pm
Forum: Personal Consumer Issues
Topic: Mail order pharmacy
Replies: 45
Views: 1519

Re: Mail order pharmacy

Typically your health insurance company will have a preferred mail order provider. I have used them for years. Generally service is good, you get 90 days vs 30, and the copays/out of pockets are slightly lower.
by JBTX
Thu Aug 16, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 46
Views: 3414

Re: High tax bracket - Go 100% Roth in tax advantaged?

I'm a big fan of Roth and think it makes sense to have both traditional and Roth. However if I were in a 45% marginal rate I'd go traditional. I just could not pass up a 45% up front reduction in taxes. My bet would be somewhere down the line my tax rate will decrease and I could do Roth conversions.
by JBTX
Wed Aug 15, 2018 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need disability insurance
Replies: 4
Views: 322

Re: Do I need disability insurance

Interesting article https://www.nytimes.com/2010/02/06/your-money/life-and-disability-insurance/06money.html https://archive.nytimes.com/www.nytimes.com/imagepages/2010/02/06/business/06money_g.html?action=click&contentCollection=Your%2520Money&module=RelatedCoverage&pgtype=article®ion=EndOfArtic...
by JBTX
Wed Aug 15, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Negative Insurance Discount with United Health Care and Sentara
Replies: 40
Views: 1893

Re: Negative Insurance Discount with United Health Care and Sentara

What's a negative discount? Normally, the contracted amount between the insurance company and the provider is less than the sticker price. That has been the case with every other procedure I have ever had. In this case however, supposedly, the contracted amount is double the sticker price. So inste...
by JBTX
Wed Aug 15, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Why bonds when they return nothing over inflation?
Replies: 31
Views: 4778

Re: Why bonds when they return nothing over inflation?

While anything is possible, nobody is predicting stocks to grow at 6% real for the next decade or so. Bogle predicts something like 4% nominal.
by JBTX
Tue Aug 14, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Warns of Worsening Odds for the Economy and Markets [Portfolio help]
Replies: 12
Views: 1444

Re: Vanguard Warns of Worsening Odds for the Economy and Markets [Portfolio help]

I suspect if you are worrying about corrections, age minus 25 in bonds is too aggressive.
by JBTX
Tue Aug 14, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Another Roth vs Traditional Debate
Replies: 21
Views: 1749

Re: Another Roth vs Traditional Debate

One of the arguments for going traditional is you can do Roth conversions in later years. Your scenario blows that up. I've never understood the argument that Roths may be banned and taxed retroactively (which would be extraordinary) but tax rates won't go up (which has happened frequently historic...
by JBTX
Mon Aug 13, 2018 10:20 pm
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 107
Views: 7150

Re: Retire in Florida or Alabama?

I apologize for not being more specific on reasonings for retiring in Alabama or Florida. They are looking to have a house in a beach community and are only considering Alabama or Florida. So pretty much anywhere east of Gulf Shores, and anywhere in Florida. I was hoping to understand what the fina...
by JBTX
Mon Aug 13, 2018 10:17 pm
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 107
Views: 7150

Re: Retire in Florida or Alabama?

I don't quite understand the beach thing. Texas beaches have much better sand for castle building and the water is warmer than locations in both Alabama and Florida. Where are the grandkids located? I've always found TX beaches to be dumps compared to FL beaches. Not even close to comparable. Also ...
by JBTX
Mon Aug 13, 2018 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Another Roth vs Traditional Debate
Replies: 21
Views: 1749

Re: Another Roth vs Traditional Debate

I'm just not sure I buy the argument for using a Roth for just about anyone in the accumulation phase unless you are at the bottom of the tax bracket and expect your income to go up in the near future. Even for someone with a Federal + State tax rate of 19%, I still think go traditional and here is...
by JBTX
Mon Aug 13, 2018 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Personal finance Advice for mid 30s couple
Replies: 8
Views: 1573

Re: Personal finance Advice for mid 30s couple

Thank you for your replies. I have $60k cash now and it bothers me to having it sit idle while I am paying interest on the homes. I completely understand the concept of the safety net but I know others use their HELOC as a safety instead. Dropping our rainy day fund to $20k would speed up the payin...
by JBTX
Mon Aug 13, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: Another Roth vs Traditional Debate
Replies: 21
Views: 1749

Re: Another Roth vs Traditional Debate

Up until this point I've been maxing out my pre-tax 401k, Roth IRA, and HSA. I will soon open a spousal IRA for my wife. Income Salary: $110k (wife doesn't work) Distributions: $10-25k/yr (qualified dividends) Taxes Filing Status: married filing jointly Federal tax bracket: 12% State tax bracket: 7...
by JBTX
Mon Aug 13, 2018 8:35 pm
Forum: Personal Consumer Issues
Topic: Joint checking accounts.
Replies: 26
Views: 1947

Re: Joint checking accounts.

We have separate accounts, but we are joint on them. His money goes into his account, and then I transfer it to his savings (which I am joint on). My money goes into my account and I pay all the bills and make the retirement/HSA contributions. It's how we work. Similar to ours. Two separate joint a...
by JBTX
Mon Aug 13, 2018 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to business 401k Question
Replies: 4
Views: 292

Re: Contribution to business 401k Question

Hello, I own a one-person LLC company. I set up a 401k and have been contributing to it for years. Recently, a new client paid me $18,000, but he wrote the check out to me personally instead of my company and I put the money in my personal account instead of my business account. I don’t know if he ...
by JBTX
Mon Aug 13, 2018 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Is your monthly expense really that stable or in reality, pretty volatile?
Replies: 46
Views: 3168

Re: Is your monthly expense really that stable or in reality, pretty volatile?

Occasionally I work up numbers by category based on quicken and set goals and occasionally a budget, but I rarely follow through with it. Setting a budget with little intention to act on it is mostly a waste of time. These days we mostly just track our liquidity position, to see if we are net saving...
by JBTX
Mon Aug 13, 2018 6:02 pm
Forum: Personal Consumer Issues
Topic: Key West Family Vacation - February
Replies: 25
Views: 1653

Re: Key West Family Vacation - February

I wouldn't take kids to key west 6 days.

Key west has its charms, but also a fair amount of tackiness.

viewtopic.php?f=11&t=256372
by JBTX
Mon Aug 13, 2018 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: High Deductible Health Plans & Retirement
Replies: 11
Views: 1560

Re: High Deductible Health Plans & Retirement

It depends on the specific plans and how you plan to insure yourself in retirement. I have seen some plans were the HDHP was almost a no brainer, where the savings in premiums was more than the additional out of pocket cost. I have seen others where the HDHP premiums are only modestly cheaper. Also,...
by JBTX
Mon Aug 13, 2018 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage [How should finances be handled?]
Replies: 58
Views: 4584

Re: Marriage [How should finances be handled?]

While we each have a separate bank account and a separate credit card our finances are otherwise combined, and there is no hiding of our separate bank accounts (which are ultimately joint accounts) The few people I know who insisted on having separate "secret" accounts used them to hide wasteful spe...
by JBTX
Mon Aug 13, 2018 5:22 pm
Forum: Personal Consumer Issues
Topic: Where to stay in Key West?
Replies: 20
Views: 1119

Re: Where to stay in Key West?

Just went to key west last month stayed at Hyatt for 3 couples u can find places on airbnb. I had researched last month, many places have pool. Recommend u stay near duval so u can walk to all bars. Keep in mind it stays pretty noisy because last time I was there (which was decades ago) cars were s...
by JBTX
Mon Aug 13, 2018 5:18 pm
Forum: Personal Consumer Issues
Topic: Where to stay in Key West?
Replies: 20
Views: 1119

Re: Where to stay in Key West?

Concur on key west not being a beach destination. Decades ago my wife was a little disappointed with key west in that respect. If you want beach, either go to South Beach if you like the people watching, and wide beach or Key Biscayne (which is near Miami) for a bit more of a laid back environment. ...
by JBTX
Sun Aug 12, 2018 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Question/Update on my Situation
Replies: 15
Views: 1731

Re: Question/Update on my Situation

Agree with silk, if you don't have much other income you should evaluate if Roth conversions make sense.
by JBTX
Sun Aug 12, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest ~$4mm for disabled-for-life 36-yo
Replies: 22
Views: 2713

Re: How to invest ~$4mm for disabled-for-life 36-yo

I'm assuming the person cannot invest the money. Where is the person living now? With the parents? I've always heard that when applying for SSDI, they do not take into consideration any house one owns or a vehicle that is owned. I do not understand. The individual cannot work, but can live on their...
by JBTX
Sun Aug 12, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest ~$4mm for disabled-for-life 36-yo
Replies: 22
Views: 2713

Re: How to invest ~$4mm for disabled-for-life 36-yo

Seems to me the big issue is medical care. What sort of insurance does he have? Seems like they should explore special needs trust and try to become eligible for Medicaid. Did the person ever work? To get ssdi you either have to get it on your work history, or get it as an adult child, which means ...
by JBTX
Sun Aug 12, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest ~$4mm for disabled-for-life 36-yo
Replies: 22
Views: 2713

Re: How to invest ~$4mm for disabled-for-life 36-yo

Seems to me the big issue is medical care. What sort of insurance does he have? Seems like they should explore special needs trust and try to become eligible for Medicaid. Did the person ever work? To get ssdi you either have to get it on your work history, or get it as an adult child, which means t...
by JBTX
Sat Aug 11, 2018 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to have “what if” discussion with retired parents?
Replies: 48
Views: 4339

Re: How to have “what if” discussion with retired parents?

I'm not sure how you have that conversation without being intrusive. My parents are older than this and I wouldn't dream of asking them to add me or siblings to their accounts or asking for detailed specifics. Your mom obviously has the right to ask those questions. I don't think kids do.
by JBTX
Sat Aug 11, 2018 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: $1M in cash - invest or pay down mortgage
Replies: 21
Views: 3659

Re: $1M in cash - invest or pay down mortgage

Pay off the mortgage and annual expenses go to about $130k. $130k of expenses on 6 million net worth is less than 3.0% so I am not sure for the call to reduce expenses beyond the mortgage. And that isn't even taking into account offsetting social security income.
by JBTX
Sat Aug 11, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: Would buy and hold work if Japan's lost decade happens?
Replies: 64
Views: 7511

Re: Would buy and hold work if Japan's lost decade happens?

The problem is that the U.S. is such a dominant market, that if it falters, the rest of the world is likely to falter as well. Japan is a much smaller market on a relative basis. Er? This shows a lack of understanding of what Japan was like in the 1980s. By 1989 Japan made up 45% of the global mark...