Search found 2961 matches

by JBTX
Sat Apr 21, 2018 3:51 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 134
Views: 6625

Re: KF's simple rules to achieve FI

Folks, Do not confuse lucky outcome with a smart strategy. I cannot count on being lucky and continuously employed without interruption. So, I have to plan and survive in this kind of reality. For whatever reason, this is the life that I experienced. Houston Oil Bust, Texas Saving & Loan Crisis, As...
by JBTX
Sat Apr 21, 2018 12:43 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 134
Views: 6625

Re: KF's simple rules to achieve FI

Folks, I save a lot of money. But, I am not frugal. A) Household income of around 140K to 150K. B) Tax around 20K to 30K (Social security, Medicare, Federal, and state) C) The annual expense of around 50K to 60K. D) The annual savings of around 50K to 60K. Out of the annual expense, about 20K is fo...
by JBTX
Sat Apr 21, 2018 12:17 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 6378

Re: Help me explain why pre-tax investing can help when retiring in same bracket

1. Presumably this means they have already filled up the low tax brackets. However for that to be true, they need to have substantial other income (like pension). A pension is not necessary for this situation. Helpful, to be sure, but not necessary. For someone who takes Invest early and often to h...
by JBTX
Fri Apr 20, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 6378

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Seems to me the arguments for traditional, specifically for those that expect to be in a higher tax bracket in retirement (which is admittedly the minority) 1. Presumably this means they have already filled up the low tax brackets. However for that to be true, they need to have substantial other inc...
by JBTX
Fri Apr 20, 2018 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 83
Views: 6378

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Throw these in there: There's no guarantee the rules don't change causing Roth distributions to be taxed at some point in the future, either at a reduced rate or via some sort of means testing. Pre tax contributions haven't been taxed so this risk is not a concern. This is a bigger concern the youn...
by JBTX
Fri Apr 20, 2018 9:31 pm
Forum: Investing - Theory, News & General
Topic: I’m still not a fan of international bond funds
Replies: 67
Views: 3351

Re: I’m still not a fan of international bond funds

At such low rates they are almost a pure currency play. I guess the question is whether exchange rate fluctuation is an added risk, or does it serve as a diversifier? From a simplistic view, if the US economy is weak relative to the rest of the world, or if it suffers higher inflation, financial ins...
by JBTX
Fri Apr 20, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 134
Views: 6625

Re: KF's simple rules to achieve FI

My situation is fairly unique, so I am not sure I have simple rules. Any such rules would not be applicable to most others. From what I have read of KFs situation, it is somewhat unique in its own right. Thus I don’t know if his rules are useful to most others either. If you only spend 40% of Gross...
by JBTX
Fri Apr 20, 2018 9:12 pm
Forum: Personal Consumer Issues
Topic: So many problems I can't even figure out how to prioritize them
Replies: 27
Views: 2504

Re: So many problems I can't even figure out how to prioritize them

I would consider many of these routine maintenance that should fit in a normal budget. I’m not sure I’d include any of these as part of an emergency fund.
by JBTX
Fri Apr 20, 2018 5:52 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 134
Views: 6625

Re: KF's simple rules to achieve FI

My situation is fairly unique, so I am not sure I have simple rules. Any such rules would not be applicable to most others. From what I have read of KFs situation, it is somewhat unique in its own right. Thus I don’t know if his rules are useful to most others either. If you only spend 40% of Gross ...
by JBTX
Thu Apr 19, 2018 4:36 pm
Forum: Personal Consumer Issues
Topic: Buying BRK.B to save $94 annually on insurance?
Replies: 28
Views: 2627

Re: Buying BRK.B to save $94 annually on insurance?

I called customer support and told them I had a Berkshire share and I want a discount. They immediately applied the discount no questions asked. Never had to submit any papers. Same here. I didn't even have to buy a share. :twisted: Same here. First they said I wasn’t eligible due to a college asso...
by JBTX
Thu Apr 19, 2018 10:44 am
Forum: Personal Consumer Issues
Topic: Total Cost of Car Ownership over 10 years
Replies: 40
Views: 3115

Re: Total Cost of Car Ownership over 10 years

You are at 32 cents vs IRS rate 53.5. I don't drive a lot, and I've been budgeting $500/month (vs. OP $400). Honestly, I haven't added up the costs, but I think I'm under budget (folks are finding many forgotten miscellaneous items that can add up). Now if I drove more, my per mile costs would go u...
by JBTX
Wed Apr 18, 2018 8:16 pm
Forum: Personal Consumer Issues
Topic: Total Cost of Car Ownership over 10 years
Replies: 40
Views: 3115

Re: Total Cost of Car Ownership over 10 years

You are at 32 cents vs IRS rate 53.5. Most obvious is tires. Last set of Michelin’s were $1000 for us. Times 3 is $3000. Of course you could go with cheap tires but I’d say $2000 minimum. Maintenance may be a tad light. One thing you don’t have that an IRS rate would have is interest. Depending on a...
by JBTX
Wed Apr 18, 2018 6:22 pm
Forum: Investing - Theory, News & General
Topic: Wellesley January Price Drop? Why?
Replies: 26
Views: 2929

Re: Wellesley January Price Drop? Why?

Wellsley has been a great fund and I have decent sized stake, but I kind of wonder if it is built for taking advantage of falling rates more than its peers. About the only time it has underperformed for any length of time was in late 70s and early 80s. It isn’t shocking that it has underperformed g...
by JBTX
Wed Apr 18, 2018 5:05 pm
Forum: Investing - Theory, News & General
Topic: Wellesley January Price Drop? Why?
Replies: 26
Views: 2929

Re: Wellesley January Price Drop? Why?

Wellsley has been a great fund and I have decent sized stake, but I kind of wonder if it is built for taking advantage of falling rates more than its peers. About the only time it has underperformed for any length of time was in late 70s and early 80s. It isn’t shocking that it has underperformed gi...
by JBTX
Wed Apr 18, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Administrative Fees
Replies: 6
Views: 496

Re: 401k Administrative Fees

See if any info in here is helpful:

viewtopic.php?t=246289
by JBTX
Wed Apr 18, 2018 12:10 pm
Forum: Personal Consumer Issues
Topic: Open Office Calc problem
Replies: 17
Views: 1143

Re: Open Office Calc problem

I’ve only used excel so I may not be of much help. Ideas off the top of my head: How big is the data sheet? Would it be possible just to copy the entire data sheet to a separate tab in your spreadsheet to get rid of the links? I used to use links a lot, now I avoid them unless absolutely necessary. ...
by JBTX
Wed Apr 18, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Administrative Fees
Replies: 6
Views: 496

Re: 401k Administrative Fees

How big is the 401k and how many participants?

I started thread about small company 401ks a couple of weeks ago. Bottom line there are options with fairly modest fixed fees to the employer and basically no fees on the fund assets other than the funds base expense ratio.
by JBTX
Wed Apr 18, 2018 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Please help me with arguments for/against actively managed...
Replies: 34
Views: 1564

Re: Please help me with arguments for/against actively managed...

The easiest argument is probably the best. You can divide the market in two. Active and passive. By definition, passive funds follow the daily price of all active activity. By definition the return of a passive index fund will equal the return of the average active fund. Except for fees of the activ...
by JBTX
Wed Apr 18, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: I want to pay off my mortgage. Am I crazy?
Replies: 54
Views: 5108

Re: I want to pay off my mortgage. Am I crazy?

I would never pay off a mortgage that low especially if it’s tax deductible.
by JBTX
Tue Apr 17, 2018 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Car Loan vs Home Mortgage
Replies: 28
Views: 2117

Re: Car Loan vs Home Mortgage

Sometimes one needs to ask the question: "what percentage of rolling 8 year periods over the past century have had equity CAGR of less than 3.5%, and am I willing to take a chance on that continuing over the next several years?" Especially with what is very close to "new" money. The OP is doing wel...
by JBTX
Tue Apr 17, 2018 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Car Loan vs Home Mortgage
Replies: 28
Views: 2117

Re: Car Loan vs Home Mortgage

Me, I wouldn't do either. I would open up a taxable account and invest the $600/month. You can easily do better than a 1% return on the car loan with nothing more exotic than TIPS, and even the most pessimistic nominal stock return projections beat the stuffing out of a 3.5% mortgage. Think of inve...
by JBTX
Tue Apr 17, 2018 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Fund our 401k/IRA or fund a 529?
Replies: 5
Views: 399

Re: Fund our 401k/IRA or fund a 529?

I’d prioritize retirement accounts over 529, except maybe to the point you can get a state income tax deduction on the 529.
by JBTX
Tue Apr 17, 2018 11:50 am
Forum: Personal Finance (Not Investing)
Topic: How much salary did you negotiate?
Replies: 20
Views: 2401

Re: How much salary did you negotiate?

I don’t think I’ve gotten 9% so that is pretty good. On the flip side, I don’t recall giving huge bumps while negotiating with new employees coming in. If it is a large company you have pay equity issues to deal with. Make sure you are getting as much paid time off as you can. That is often negotiab...
by JBTX
Tue Apr 17, 2018 8:34 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7913

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

The basic math works assuming reasonable assumptions. The longer the time period the greater the risk that reasonable assumptions may not be so reasonable. e.g. war, tax changes, inflation, negative interest rates, flu pandemic, climate change, ??, etc. Also, personal issues related to your own hea...
by JBTX
Tue Apr 17, 2018 8:25 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7913

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

No I would not be comfortable.

Yes I understand mathematically that would easily survive any historical US scenario, but I would not be comfortable going 50-60 years not working, when you just can’t predict the future.
by JBTX
Mon Apr 16, 2018 1:36 pm
Forum: Personal Consumer Issues
Topic: Online Fax Suggestions
Replies: 12
Views: 864

Re: Online Fax Suggestions

I have used faxzero numerous times with no issues.
by JBTX
Mon Apr 16, 2018 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Suddenly I had a weird bill go to collections - what's my course of action?
Replies: 36
Views: 3150

Re: Suddenly I had a weird bill go to collections - what's my course of action?

From my perspective, by potentially giving out fraudulent address information, you have either committed a breach of contract from a tort perspective or some sort of address fraud from a criminal perspective. (I’m not a lawyer or legal expert) https://en.m.wikipedia.org/wiki/Address_fraud If for som...
by JBTX
Sun Apr 15, 2018 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Billpay/automated payments with BoA mortage?
Replies: 9
Views: 346

Re: Billpay/automated payments with BoA mortage?

Anyone here paying a Bank of America mortgage with their bank's bill pay system? This is the only bill I haven't been able to automate - BoA requires you to log in to their site every month and manually trigger a payment. They only seem to support auto pay bill if you have a BoA checking account (n...
by JBTX
Sun Apr 15, 2018 4:16 pm
Forum: Investing - Theory, News & General
Topic: How accurately can we measure INFLATION?
Replies: 89
Views: 3630

Re: How accurately can we measure INFLATION?

It is 100% accurate, based on the given assumptions. Of course, those assumptions probably won’t 100% apply to everybody, or any one individual. The big variables are: Substitution - how much will you change your consumption from product A to product B, which are close but not exact substitutes if p...
by JBTX
Sat Apr 14, 2018 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

In addition to other points mentioned above, Roth is also attractive if you are maxed out on traditional tax-shielded accounts and want to save more. $5500 of Roth money is more than $5500 of traditional because it's after-tax money. Roth IRA is equivalent to a traditional IRA plus an invisible tax...
by JBTX
Sat Apr 14, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

I think my original statement that you need a 5%+ drop in your marginal tax rate for Traditional to be a better IRA choice stands. I’m not sure about for most Bogleheads, because a lot of people on here are above the 24% bracket, but for the average American, and certainly someone asking a question...
by JBTX
Sat Apr 14, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

It is true that those who may have an extended early/pre social security retirement would benefit from accumulating a large traditonal balance. However not everybody fits that criteria. Some people may have greater age difference between spouses. Some may need to work longer. Some may choose to wor...
by JBTX
Sat Apr 14, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

I think my original statement that you need a 5%+ drop in your marginal tax rate for Traditional to be a better IRA choice stands. I’m not sure about for most Bogleheads, because a lot of people on here are above the 24% bracket, but for the average American, and certainly someone asking a question...
by JBTX
Fri Apr 13, 2018 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs Independent Certified Financial Planner
Replies: 15
Views: 1325

Re: Vanguard vs Independent Certified Financial Planner

Thanks to all who have responded. It has made me realize that my questions are a bit unfocused--it is really more how do I handle an inheritance coming into and expanding the taxable portion of my portfolio (now added above to original post). My specific questions are: 1. Inheritance is currently h...
by JBTX
Fri Apr 13, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Could you support family on 1 income?
Replies: 88
Views: 5624

Re: Could you support family on 1 income?

Yes, we are basically doing it right now as I’m not working at the moment. 2 teenage kids. It is fairly tight, and we can’t save as much as we like and I’ve had to pass on fully funding some retirement account opportunities which really bothers me.
by JBTX
Fri Apr 13, 2018 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Funding Roth IRA for Dependent Child In Texas
Replies: 5
Views: 325

Re: Funding Roth IRA for Dependent Child In Texas

Here are my specifics: 1. 24 year old son living at home with no full time job and claimed as dependent on parents federal income tax rturn 2. Made $830 cash dog walking for 2017 3. Even though it will be a nightmare with all of the required tax forms and schedules to do so and the small amount all...
by JBTX
Fri Apr 13, 2018 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

This example is true only when you pay the taxes from the pot of money, when it goes in, and when it comes out. But why would you waste your tax-deferred dollars on taxes if you can pay the taxes out of your income or taxable assets? This is especially true for a Roth conversion. If you decide to d...
by JBTX
Fri Apr 13, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

Maybe but effective rate is irrelevant. Yes and no. What is relevant is the effective rate on the IRA distribution . That is different from both the overall effective rate and the marginal rate. What is relevant is the marginal rate of the distribution. Not all dollars will be distributed at the sa...
by JBTX
Fri Apr 13, 2018 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

I haven't run the numbers, but suppose a MFJ family had $72K a year from $30K Social Security checks and $42K from a traditional IRA withdrawal. How much Federal income tax would they pay? You might be surprised. If you assume someone around 54 currently, and assume tax rates revert to 2017 rates a...
by JBTX
Thu Apr 12, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Crazy to start 529 without kids??
Replies: 49
Views: 3479

Re: Crazy to start 529 without kids??

I wouldn’t do it. You may not have kids. Or your kids may not go to college. Life happens.
by JBTX
Thu Apr 12, 2018 5:55 pm
Forum: Investing - Theory, News & General
Topic: Unimpressive category averages of managed futures, multialternative, market neutral, etc.
Replies: 82
Views: 5019

Re: Unimpressive category averages of managed futures, multialternative, market neutral, etc.

In this posting, I want to look at Morningstar's category averages for various investment categories. I don't know how to show them without displaying a specific fund first, but I don't want to look at the specific funds (in blue), I want to look at the category averages (in orange). So please igno...
by JBTX
Thu Apr 12, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6732

Re: Why traditional IRA better than Roth IRA

I haven't run the numbers, but suppose a MFJ family had $72K a year from $30K Social Security checks and $42K from a traditional IRA withdrawal. How much Federal income tax would they pay? You might be surprised. If you assume someone around 54 currently, and assume tax rates revert to 2017 rates a...
by JBTX
Thu Apr 12, 2018 10:09 am
Forum: Local Chapters and Bogleheads Community
Topic: Too much Bogleheads.org?
Replies: 66
Views: 8072

Re: Too much Bogleheads.org?

I kind of get where you are coming from. I’ve been here not quite a year and have spent far more time here than i ever would have guessed. I am a bit obsessive about message boards and this has become my obsession vs sports or political forums in the past. At least in the process I am learning some...
by JBTX
Tue Apr 10, 2018 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 Taxes - Effective Rate - Am I missing anything?
Replies: 18
Views: 1252

Re: 2017 Taxes - Effective Rate - Am I missing anything?

https://taxfoundation.org/2017-tax-brackets/

Seems about right. From approx $100k AGI up to your 300k+ income (or roughly 2/3 of your income) the tax rates are 25 to 33%. So an effective rate of 24% seems plausible.
by JBTX
Tue Apr 10, 2018 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs. HDHP w/HSA for Pregnancy decision
Replies: 16
Views: 993

Re: PPO vs. HDHP w/HSA for Pregnancy decision

The comparison is not always intuitive. You can’t just add the premiums to the out of pocket max and get the answer. With a HDHP you are going to pay ALL costs (except well visits) including medicines at full cost until you hit deductible. So there is a good chance you will hit the deductible in a ...
by JBTX
Tue Apr 10, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: PPO vs. HDHP w/HSA for Pregnancy decision
Replies: 16
Views: 993

Re: PPO vs. HDHP w/HSA for Pregnancy decision

The comparison is not always intuitive. You can’t just add the premiums to the out of pocket max and get the answer. With a HDHP you are going to pay ALL costs (except well visits) including medicines at full cost until you hit deductible. So there is a good chance you will hit the deductible in a y...
by JBTX
Tue Apr 10, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1143

Re: Small company 401k plans

Vanguard is $3,475 for the first 15 employees plus $75 for the next 35. Next 50 are $70. Ascensus has a slightly different schedule, I believe that the starting price is for 25 employees, 15 employees where employees is participants with a balance. We go through Vanguard pretty much exclusively. Th...
by JBTX
Tue Apr 10, 2018 3:21 pm
Forum: Personal Consumer Issues
Topic: Driver's permit before 18 - Any financial incentive
Replies: 52
Views: 1685

Re: Driver's permit before 18 - Any financial incentive

My 17 year old daughter has had a learner's permit since 15, and took a full drivers ed course, but has been hesitant to practice enough to take the drivers test. At first we didn't push the issue, because driving in an urban area is much more complicated, but now the shuttling her back and forth to...
by JBTX
Tue Apr 10, 2018 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1143

Re: Small company 401k plans

I recently moved my company (10 employees) from John Hancock (1.5-2% total ER) to Guideline. I was thoroughly impressed with the experience, pricing, plan menu, and interface. I highly, highly recommend checking them out. The cost is $40/month base (covers 5 participants) + $8 for the 6th and every...
by JBTX
Tue Apr 10, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 30
Views: 1143

Re: Small company 401k plans

Vanguard is $3,475 for the first 15 employees plus $75 for the next 35. Next 50 are $70. Ascensus has a slightly different schedule, I believe that the starting price is for 25 employees, 15 employees where employees is participants with a balance. We go through Vanguard pretty much exclusively. Th...