Search found 291 matches

by Olemiss540
Fri Jan 19, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Going Bogle
Replies: 6
Views: 703

Re: Going Bogle

I say you get reinvested as quickly as possible. No need to try to market time and having a stockpile of cash will encourage that behavior. Just set an asset allocation that you can set and forget and invest. I highly recommend a target date funds if you have small or no taxable brockerage funds cur...
by Olemiss540
Fri Jan 19, 2018 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: Income tax on 401k vs roth 401k, please help
Replies: 5
Views: 315

Re: Income tax on 401k vs roth 401k, please help

A Roth 401k will allow you to shelter the money from RMDs (once rolled over to a RIRA) and pass through tax free to heirs while allowing it to continue to grow. I would think this would be much more valuable to someone in your situation than the upfront tax deductions you will receive from a traditi...
by Olemiss540
Fri Jan 19, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Prioritizing loans vs savings vs investments
Replies: 11
Views: 557

Re: Prioritizing loans vs savings vs investments

Debt payoff is #1 priority, then hoarding money for when the baby is on the way. Not sure that your situation is sustainable given one of you is going to either have to pay $$$ for daycare or stay at home. In a HCOL area, 151k gross with childcare expenses and a 2400/mo rent payment is going to be h...
by Olemiss540
Thu Jan 18, 2018 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Off House
Replies: 11
Views: 1058

Re: Paying Off House

chevca wrote:
Thu Jan 18, 2018 12:27 pm
At 4.25%, I'd probably just pay that down and call it good. That might be a tough number to beat after taxes over 10 years. Or, maybe you beat it... but, by how much? If not by much, was it worth the risk? I'd take the safe 4.25%. It's an individual decision though.
Agree
by Olemiss540
Wed Jan 17, 2018 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: New Tax Brackets...Trad 401, Roth 401, or a mix?
Replies: 6
Views: 353

Re: New Tax Brackets...Trad 401, Roth 401, or a mix?

I continue to think the answer is more complicated than "taxes now vs taxes later". Money now is worth more than money later, sure, to a point. But if investment gains outstrip inflation, then I'd argue a completely tax-free option (Roth) - particularly for the 60ish years the OP would be holding i...
by Olemiss540
Wed Jan 17, 2018 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401(k) vs Traditional 401(k) contributions in 2018
Replies: 8
Views: 537

Re: Roth 401(k) vs Traditional 401(k) contributions in 2018

What is you state tax rate? I would be very tempted to increase Roth contributions for any $$$ inside of the 24% bracket if in a low/no income tax state. Roth contributions are very valuable and given your high savings rate/income/pension, I am guessing you are going to be in high tax heaven come re...
by Olemiss540
Wed Jan 17, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: Which to Max First: 401k or HSA?
Replies: 13
Views: 785

Re: Which to Max First: 401k or HSA?

I see no reason not to get the match on the HSA. How much do you have to save there to get the full match? After meeting both matches, put the rest in the 401k. Or is the problem that you are not able to save that much? Hi retiredjg, thanks for your thoughts! For the HSA, they will contribute the f...
by Olemiss540
Wed Jan 17, 2018 8:14 am
Forum: Investing - Help with Personal Investments
Topic: 23 Years Old, Uncomfortable with Target Date Funds
Replies: 19
Views: 2063

Re: 23 Years Old, Uncomfortable with Target Date Funds

I chose target date funds to help prevent recency/geographic bias and the thought that through tinkering with my portfolio I could outperform the market (I guess I am one of those "uninformed" investors mentioned above). Mr. Bogle gave a speech about something called reversion to the mean that was a...
by Olemiss540
Tue Jan 16, 2018 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Career Direction Advice
Replies: 17
Views: 1274

Re: Career Direction Advice

My only advise is to make sure you perceived risk for layoff are compensated accordingly. The chances of it being properly compensated by the employer you are with are slim, so it may be worth pursuing interviews with outside firms to see if you can get both the experience you are looking for and th...
by Olemiss540
Mon Jan 15, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage pay down? (vs credit score & near-term move)
Replies: 6
Views: 430

Re: mortgage pay down? (vs credit score & near-term move)

Personally I would pay it off and get a couple of credit cards to maintain my credit score. I have plenty of credit cards with low credit utilization. I don't really know how much to 'trust' the credit score simulators, but two simulators offered from different tracking services provided by differe...
by Olemiss540
Mon Jan 15, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018
Replies: 11
Views: 1393

Re: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018

Mine appears off due to Child Care tax credit. Couldn't find a place for this premium credit and this causes a rather large swing in the 2018 tax law.....
by Olemiss540
Mon Jan 15, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage pay down? (vs credit score & near-term move)
Replies: 6
Views: 430

Re: mortgage pay down? (vs credit score & near-term move)

Personally I would pay it off and get a couple of credit cards to maintain my credit score. Start turbo charging your cash savings once the house is paid off and assuming all tax advantaged space is taken care of. In 3 or 4 years, you should have a nice size cash store built up for your next house p...
by Olemiss540
Thu Jan 11, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: WSJ: Discount Brokers Win Bonuses to Push Costlier Products
Replies: 38
Views: 3130

Re: WSJ: Discount Brokers Win Bonuses to Push Costlier Products

I think it is false to proclaim these firms as discount brokers and it is a misleading way to make a story. These are NOT discount brokers, they are full service (re: full price) brokerage houses that offer some discount investments. All publicly traded brokerage houses outside of Vanguard HAVE to ...
by Olemiss540
Thu Jan 11, 2018 9:16 am
Forum: Investing - Help with Personal Investments
Topic: WSJ: Discount Brokers Win Bonuses to Push Costlier Products
Replies: 38
Views: 3130

Re: WSJ: Discount Brokers Win Bonuses to Push Costlier Products

"At Fidelity, Schwab and TD Ameritrade, employees win extra pay or other incentives to put clients in products that are more lucrative for them, and the firm." I think it is false to proclaim these firms as discount brokers and it is a misleading way to make a story. These are NOT discount brokers....
by Olemiss540
Wed Jan 10, 2018 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: WSJ: Discount Brokers Win Bonuses to Push Costlier Products
Replies: 38
Views: 3130

Re: WSJ: Discount Brokers Win Bonuses to Push Costlier Products

I think it is false to proclaim these firms as discount brokers and it is a misleading way to make a story. These are NOT discount brokers, they are full service (re: full price) brokerage houses that offer some discount investments. All publicly traded brokerage houses outside of Vanguard HAVE to b...
by Olemiss540
Wed Jan 10, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: What would you do with a 25 million windfall?
Replies: 47
Views: 2790

Re: What would you do with a 25 million windfall?

URGENT: Is this $25 Million pre-tax or post-tax? My answers change dramatically depending on your response. Thanks in advance,
by Olemiss540
Wed Jan 10, 2018 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Please help guide me to retirement. 401K info added
Replies: 17
Views: 1126

Re: Please help guide me on my road to retirement

''I made some very poor decisions over the past decade, but recently I’ve decided to rectify them. Our one goal to keep in mind is that we are saving to move to a piece of property and build a home in about 3 years-we bought the land and are financing it currently (not a great decision, I know, but ...
by Olemiss540
Tue Jan 09, 2018 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Increase mortgage payment
Replies: 6
Views: 1025

Re: Increase mortgage payment

We need to get an idea of how far ahead/ behind you are with your retirement investments. Age? Income? Expenses? Maxing tax advantaged retirement contributions (401k, RIRA, etc)? Marginal tax rate (state and fed)?
by Olemiss540
Sun Jan 07, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Cash e-fund + multiple sinking funds - How far do you go?
Replies: 12
Views: 1074

Re: Cash e-fund + multiple sinking funds - How far do you go?

Personally, I would begin building a taxable account once I had that much cash sitting around for an unknown duration. Can use it to TLH during downtimes and fund unknown expenses when up.
by Olemiss540
Sat Jan 06, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: How am I doing?
Replies: 6
Views: 836

Re: How am I doing?

What's your income and expenses? Four your sure you are doing fantastic!
by Olemiss540
Sat Jan 06, 2018 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Having trouble deciding on 401k employee deferral or Roth deferral at new job
Replies: 8
Views: 434

Re: Having trouble deciding on 401k employee deferral or Roth deferral at new job

Considering your marginal rate with state tax included, I would DEFINITELY opt for traditional 401k contribution. Also, try doing your 2017 taxes to look how it would effect your overall tax bill.

What is your state tax rate?
by Olemiss540
Sat Jan 06, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Home Affordability [check my calculations]
Replies: 88
Views: 7944

Re: Home Affordability [check my calculations]

Happy for you! Keep in mind if you made this decision 10 years ago, the results may have been different. So while being joyful of great luck be cognizant of the impacts of hindsight. One day you will see why someone is happy to loan you money at 4%.....
by Olemiss540
Sat Jan 06, 2018 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should I take this promotion?
Replies: 26
Views: 1959

Re: Should I take this promotion?

Do it. That is a great raise and it gives you an opportunity to try out management in a setting you are comfotable. Could very well lead to much greater opportunities or worse case go back to a role similar to where you are now.

Seems like a no brainer to me.
by Olemiss540
Sat Jan 06, 2018 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Contribute to 401k or pay off fixed 20yr 7.625% HELOC?
Replies: 21
Views: 1135

Re: Contribute to 401k or pay off 7.625% HELOC?

Use EF to payoff HELOC! You will free up 500 in additional cash flow, and can send 1500 a month back to your EF each month. Are you expecting to owe additional taxes or get a refund? I would run your numbers to make sure as it can be another way to help or hurt soon. What is your family's car situat...
by Olemiss540
Fri Jan 05, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio/Tax Planning Check-up
Replies: 3
Views: 243

Re: Portfolio/Tax Planning Check-up

shabob, Seems like you have a good plan and are doing a great job executing to this point. I would continue to prioritize the Roth's with any money you can sneak into the 12% bracket being mindful if you have any state taxes as well. Between the HSA/401(k), being able to stay in the 12% bracket whil...
by Olemiss540
Fri Jan 05, 2018 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Seeking Advice To $$ Mess
Replies: 23
Views: 2423

Re: Seeking Advice To $$ Mess

My parents spent many of their retirement years in a nice trailer community by the beach. Trailers sold for cheap and property rental was not high from what I remember. May be worth looking into if they are dead set on buying.
by Olemiss540
Thu Jan 04, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: How to minimize tax paperwork for funding children's Roth IRAs?
Replies: 14
Views: 1211

Re: How to minimize tax paperwork for funding children's Roth IRAs?

Unless you are trying to use the payments to reduce your business income tax.....why not just do 529 accounts instead. Zero paperwork, tax-deferred growth, and tax free if used for higher education...... While I don't disagree with this statement ... the advantages of starting a Roth IRA early is t...
by Olemiss540
Thu Jan 04, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Morgage Interest Deduction
Replies: 17
Views: 2114

Re: 2018 Morgage Interest Deduction

No, I am going to go out on a limb and guess that if you have a $1.5 Mil loan balance on a condo in LA, HALF of your mortgage interest is deductible. It effectively CAPS the interest deducted, not put a limit on deducting any interest at all.
by Olemiss540
Wed Jan 03, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Converting a Recharacterization
Replies: 2
Views: 213

Re: Converting a Recharacterization

Disclaimer: I'm not familiar with IL state tax. Maybe you should add "IL resident" to the thread title to get some Illini eyeballs. I see two basic options: In both cases, you would first recharacterize back to trad IRA. Option A would be to claim the trad IRA deduction on your 2017 Federal taxes. ...
by Olemiss540
Wed Jan 03, 2018 1:25 am
Forum: Personal Finance (Not Investing)
Topic: Converting a Recharacterization
Replies: 2
Views: 213

Converting a Recharacterization

Bogleheads, Thanks in advance for any feedback on something I am considering with tax planning in mind. Backstory first: Mid 2017, contributed 5500 to my spouse's RIRA. She is eligible for a fully deductible tIRA but I chose a Roth so as to not prevent future backdoor Roths in case my income increas...
by Olemiss540
Sun Dec 31, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for Upgraded House in 2-3 Years?
Replies: 1
Views: 251

Re: Saving for Upgraded House in 2-3 Years?

That's what I am doing currently. Sounds like a plan!
by Olemiss540
Sun Dec 31, 2017 7:47 am
Forum: Personal Finance (Not Investing)
Topic: What is your threshold for paying down debt?
Replies: 89
Views: 5770

Re: What is your threshold for paying down debt?

OP, It would seem you are over generalizing that Bogleheads "hate debt and aggressively pay it down". I have only been around for a year or two, but there has not been a whole lot of folks around here that advocate paying off a mortgage instead of investing for retirement (quite the opposite as this...
by Olemiss540
Sat Dec 30, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Stopped Check 2018 Property Tax - Etiquette to County?
Replies: 38
Views: 3276

Re: Stopped Check 2018 Property Tax - Etiquette to County?

This pre-payment is probably going to be included for half the home owners in America. I'd go with "if you're not audited, it's allowed" and see how it goes. Doubtful. News story this morning in our county showed prepayment went from 300 to 3000 residents this year. Huge change, but definately not ...
by Olemiss540
Wed Dec 27, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Another should i buy my dream porsche thread...
Replies: 240
Views: 10849

Re: Another should i buy my dream porsche thread...

I'd consider a 2003 or 2004 GT3. Under budget and they have already bottomed out on price. LOVE this idea but based on response about the latest turbo motors from the OP above would guess it is out. OP, What about a 997TT? Absolute monster and 45k in savings would pay for a LOT of maintenence. Also...
by Olemiss540
Wed Dec 27, 2017 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Miata as second car
Replies: 94
Views: 3806

Re: Miata as second car

Wife wants me to see if booster seat will even fit in Miata, trunk? Myself. She said if not, look into Camaro’s and Mustangs. Small back seats, but they do have back seat. This thread and your responses really do read a bit like they should have been posted in a car forum and not a personal finance...
by Olemiss540
Wed Dec 27, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: is using HSA as investment vehicle worth the trouble?
Replies: 50
Views: 4231

Re: is using HSA as investment vehicle worth the trouble?

It sounds like it may not be worth it for you (esp not for many small transactions). You'll have to judge/guess whether the untaxed growth is worth your time and hassle and the risk that you lose documentation. I have mine invested, but I intend to reimburse myself for my (rare, very small) medical...
by Olemiss540
Wed Dec 27, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Another should i buy my dream porsche thread...
Replies: 240
Views: 10849

Re: Another should i buy my dream porsche thread...

I would say you are definitely enough behind in retirement that I would skip the Porsche, skip the house payoff, and go straight to taxable investing. If you do this, you could have another $500k in taxable investments in 3 years and I would give you the GREEN LIGHT to buy whatever $100k car you had...
by Olemiss540
Wed Dec 27, 2017 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Miata as second car
Replies: 94
Views: 3806

Re: Miata as second car

Wife wants me to see if booster seat will even fit in Miata, trunk? Myself. She said if not, look into Camaro’s and Mustangs. Small back seats, but they do have back seat. This thread and your responses really do read a bit like they should have been posted in a car forum and not a personal finance...
by Olemiss540
Wed Dec 27, 2017 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Creating a Mid-Tier Emergency Fund
Replies: 21
Views: 2279

Re: Creating a Mid-Tier Emergency Fund

In my optinion, in your 30s there is no reason to get too detailed on an emergency fund plan above and beyond 1yr liquid (cash). Start a taxable brokerage account and shovel as much into tax efficient broadly diverse equities as possible after maxing out your tax advantaged space. If you maintain a ...
by Olemiss540
Wed Dec 27, 2017 6:24 am
Forum: Personal Finance (Not Investing)
Topic: Should I continue paying off debt like I did in 2017?
Replies: 7
Views: 1592

Re: Should I continue paying off debt like I did in 2017?

I say the reasons that made it right 12 mo ago still hold today. No need to worry about how the market did as it has no bearing on your decision to deleverage. What if a correction happens prior to you finishing off loan payments and then it becomes the perfect time to buy into equities? No one know...
by Olemiss540
Wed Dec 27, 2017 6:08 am
Forum: Personal Finance (Not Investing)
Topic: Upsizing Real Estate for Location/Ease
Replies: 14
Views: 1166

Re: Upsizing Real Estate for Location/Ease

Not sure what your question is based on the OP. No good reason to not do it if you are hitting all of your savings goals and it is of importance to your SO. Not enough information included for us to have any input on your financials, etc.
by Olemiss540
Tue Dec 26, 2017 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Miata as second car
Replies: 94
Views: 3806

Re: Miata as second car

I would prefer you pay for your toy car in cash. It is a totally irresponsible purchase (that I completely understand), so why pay for it for years forward? Just set aside money every month until you have enough to pay cash. Obviously to get the years of enjoyment earlier. We are talking pretty tri...
by Olemiss540
Tue Dec 26, 2017 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Miata as second car
Replies: 94
Views: 3806

Re: Miata as second car

I would prefer you pay for your toy car in cash. It is a totally irresponsible purchase (that I completely understand), so why pay for it for years forward? Just set aside money every month until you have enough to pay cash. Also, consider since it is a toy car, do you really need to buy such a prem...
by Olemiss540
Mon Dec 25, 2017 11:15 am
Forum: Personal Finance (Not Investing)
Topic: FY17 Final, Personal Savings Rate
Replies: 26
Views: 2304

Re: FY17 Final, Personal Savings Rate

If you abide by the MMM definition, savings rate is defined as: Saving/(Gross-Taxes)×100 This mirror definitely makes my... muscles look bigger; I like it. I do not think it would be accurate to use this formula for ROTH accounts. It would be close if your planned tax rate in retirement was near ze...
by Olemiss540
Mon Dec 25, 2017 11:11 am
Forum: Personal Finance (Not Investing)
Topic: FY17 Final, Personal Savings Rate
Replies: 26
Views: 2304

Re: FY17 Final, Personal Savings Rate

Interesting topic. I "saved" about 50% of my gross, but a lot of what I saved for was spent this year. We socked away $240k when bonuses rolled around in March. We spent $40k on a new car, $40k on planned medical procedures, $35k on a once in a lifetime 35 day European vacation, finished off the co...
by Olemiss540
Mon Dec 25, 2017 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 3974

Re: Roth 401k vs Pre-Tax 401k

So you assume retirement marginal rate based off of a 0% 30 year real return on 500k? Curious as I am planning myself. Olemiss540, Why do you need to calculate a 30 years' return? It is a year by year decision. You can do this calculation every year with your current portfolio size. Then, decide to...
by Olemiss540
Sun Dec 24, 2017 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 3974

Re: Roth 401k vs Pre-Tax 401k

I'm torn on whether to put all in Pre-Tax 401k, Roth 401k, or some in each. Whatever I do, I will put in the max limit. We were at the bottom of the 33% bracket, so deductions and 401k contributions put us in 28% modified adjusted marginal, but we will be in 24% with the new rates. Currently no sta...
by Olemiss540
Sun Dec 24, 2017 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: 401k/Roth401k
Replies: 4
Views: 499

Re: 401k/Roth401k

My son makes 80000. lives at home. He's30 I have him in 15% in 401k and 5% in Roth. I'm thinking going to 10% Roth. Can we do that without going over. That's 25% of 80000-in 20000. plus they match. Yes, 25% of 80k is over the maximum 401k contribution limit of 18500. As an alternative, you could co...
by Olemiss540
Sun Dec 24, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: FY17 Final, Personal Savings Rate
Replies: 26
Views: 2304

Re: FY17 Final, Personal Savings Rate

If you abide by the MMM definition, savings rate is defined as: Saving/(Gross-Taxes)×100 As long as employer contributions are counted in both gross and savings. But then what about the difference between Roth and Traditional? I think most in the MMM grouping end up having near zero marginal rates ...