Search found 419 matches

by MrPotatoHead
Mon Jun 25, 2018 1:47 am
Forum: Personal Investments
Topic: paid financial advisors
Replies: 6
Views: 1294

Re: paid financial advisors

You did not indicate how much money you are talking about. I am assuming your total nut is upwards of 2 million. In that case what you want is a fee only financial planner. In your case in particular I would lean to someone from the American College with a CHFC vs a CFP. A CPA with a CHFC would actually be my first choice, the reason is taxation, wealth preservation, and estate planning are likely the areas you actually need help in. Investment selection and asset allocation can be done on your own once the aforementioned reviews are completed. As pointed out, Taylor's three fund portfolio is a good starting place, but if your assets are as I suspect the bond portion may need some adjustment in concert with the tax advice you receive. Addit...
by MrPotatoHead
Mon Jun 25, 2018 1:13 am
Forum: Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 16592

Re: Stocks vs. rental property

Dear experts, I was wondering if you think investing (say 1 million dollars for example) in rental property may be better than stocks and bonds? Because rental property would provide appreciation as well as monthly incoming though there is always the pain of not being able to find tenants? Or should I be only investing say 80% of my savings in rental property? If real estate is better, would Bay area California be okay to consider for good appreciation along with rent? Am I right in my assumption that school districts and downtowns close to companies such as upcoming google campus in San Jose near Diridon station may appreciate more? Should I buy a small 3 bed room single family home or are bigger home easy to rent out as well? I would gre...
by MrPotatoHead
Sun Jun 24, 2018 9:50 pm
Forum: Personal Investments
Topic: To sell or not sell individual stocks
Replies: 6
Views: 974

Re: To sell or not sell individual stocks

You do not indicate if you have children AND if so, do you intend for them to inherit? If so, I would attempt to hold them indefinitely and allow them to inherit the stepped up cost basis unless you can sell it off in a zero % tax bracket now. However I would go to library and look at determine if ValueLine tracks the stock. What you want it the actual rating not the opinion rendered by the model portfolios. Don't bother yourself with timeliness ratings but read the actual review. They are pretty good at telling you when they spot a troubled stock. Read their review for Sears for example. I would let the comment that the shares are ranked to underperform the market over the next 2-3 years bother me much. You are really looking for nasty stu...
by MrPotatoHead
Sun Jun 24, 2018 9:25 pm
Forum: Personal Investments
Topic: Is this all investing is?
Replies: 38
Views: 4876

Re: Is this all investing is?

Rus In Urbe wrote: Sat Jun 23, 2018 2:11 pm Get serious about yourself---your real self, you as a person. What can you achieve in a lifetime besides early retirement.

Is this all investing is? Yes, that is all it is----it is only the first step to gain security and make other, more important things possible. Investing is not the meaning of life. For that, you'll have to dig a little deeper.
This. +1
by MrPotatoHead
Sat Jun 23, 2018 8:15 pm
Forum: Personal Investments
Topic: How to help my teen (14) grow their savings faster?
Replies: 18
Views: 2262

Re: How to help my teen (14) grow their savings faster?

Okay I’ll be the odd man out. First I’ll hit you with a harsh reality I know only too well. You can die at anytime. That means your parenting, which amounts to the healthful and helpful transition guidance from a child, to an adolescent, to a person able to take on, evaluate and thrive with adult responsibilities can abruptly come to an end leaving your offspring at a disadvantage relative to what they could have had. Ergo, I suggest at 14 she is more then mentally equipped to be able to take on most common everyday adult financial decisions. Because in the end these tasks are very plebeian in nature and you do not need advanced maturity to successfully navigate them. That means she learns about auto insurance, life insurance. health insura...
by MrPotatoHead
Sat Jun 23, 2018 4:48 pm
Forum: Personal Investments
Topic: Fidelity Money Market Funds for everyday expenses
Replies: 101
Views: 24326

Re: Fidelity Money Market Funds for everyday expenses

This is exactly what I want to do, get out of Ally and consolidate more to Fido. This is for short term savings (vacation in 6 months, escrow for property taxes, etc.) What are the restrictions for buying and selling these funds? Is there a minimum holding period? It seems like I can just swap out of my "core" cash option and switch to one of the federal funds. Should I do it this way or should I go and buy one of the listed symbols? I think I'd rather just make one of the two choices my core so my brokerage check writing doesn't need to change. Looks like Vanguard is clearly beating Fido here, but its mostly on the expense side and much fewer restrictions at Fidelity for buying/selling since the core cash positions acts just lik...
by MrPotatoHead
Sat Jun 23, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: Do you invest in Real Estate ? Why ?
Replies: 175
Views: 33732

Re: Do you invest in Real Estate ? Why ?

confusedinvestor wrote: Sun Apr 01, 2018 1:06 pm Folks,
1. Do you invest in Real Estate ?
2. If yes, Why do you invest ? Cash Flow vs 3-Fund-Portfolio ?
3. If not, Why not ?
I'll appreciate if you please share any real experiences; My Financial Advisor advised me to consider Real Estate investments for Cash Flow diversification.
1. Yes
2. Because it is the most direct way I know where I can trade my human capital for income and not have to ever pay any direct income taxes on it. It is as simple as that.
3. N/A
by MrPotatoHead
Sat Jun 23, 2018 12:51 pm
Forum: Personal Investments
Topic: Is this all investing is?
Replies: 38
Views: 4876

Re: Is this all investing is?

I get retiring early but...

Exactly what is the point of living at such a frugal level that you feel an emptiness inside you? Do you intend to greatly increase your spend when you retire? Otherwise doesn't retirement essentially means you will continue to live at the same level and simply feel emptiness until you die?

I do not totally equate spending with happiness, but apparently you feel you are missing out on life. That is just very sad. I could regale you with tawdry tales of my misspent youth, only it was not misspent, but very, very tawdry and I revel in the memory.

My advice, live. If spending a bit more enables you to feel alive, then that is simply the price of admission to happiness.
by MrPotatoHead
Fri Jun 22, 2018 11:35 pm
Forum: Personal Investments
Topic: [100% stock, uncomfortable with international]
Replies: 73
Views: 12040

Re: [100% stock, uncomfortable with international]

I had bought the academic argument on this one since the 1980s. My view has since changed. As I have begun to travel internationally and attempt to conduct business in other countries I experienced the difference between what I consider academic theory and reality. Though other countries may be nice to visit there are only a handful of European based countries that I would consider well regulated. For my early 20s children, sure I see an international slice as potentially beneficial in the very long run. But for a 50ish me, I have been steadily decreasing my international exposure by simply buying ITOT in my taxable space and just leaving my tax deferred allocation where it is (as I am not one to tamper much with my portfolio once set). Per...
by MrPotatoHead
Fri Jun 22, 2018 7:38 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 13281

Re: Factor Investing Makes Someone Money, But Maybe Not You

Factor investing is discussed ad nauseam on this forum. Lately, it has reached the point were investors who shouldn’t do factor investing become confused to the point of believing they should or they’ll miss out on something. Let’s correct that. Factor investing is complex and the “optimal” way to do it is always changing because there is no optimal way that can be known in advance. The idea that factor premiums can be predicted is a fallacy. The small cap premium was discovered in the 1970s... and has been dead ever since. That being said, it’s all to common for advisers to relentlessly push complex investment strategies such as “optimal factor allocation” because it makes the adviser sound like they’re smart and that brings in business t...
by MrPotatoHead
Fri Jun 22, 2018 1:47 pm
Forum: Personal Investments
Topic: Hire financial advisor?
Replies: 25
Views: 2390

Re: Hire financial advisor?

I am nearly 70 years old, and I've been fortunate enough not to have had to draw from my retirement accounts during the first 5 years of my retirement. I will be taking RMDs in 2019, and I think it's time to simplify my investments. Although I've always managed my own accounts, I'm trying to decide if a financial advisor would be beneficial. Here are my specifics. $578K in retirement accounts, currently about 50% with Fidelity index funds and 50% with Vanguard index funds $119K in a TIAA-Cref account earning a guaranteed 4% $100K in stocks at TDA $80K in brokerage accounts (50% Fidelity, 50% Vanguard) $59K in a Roth IRA which I intend to leave untouched $115K in cash and CDs TOTAL about $115 I have two adult children who will inherit my en...
by MrPotatoHead
Fri Jun 22, 2018 1:15 pm
Forum: Personal Investments
Topic: Income Annuities
Replies: 20
Views: 1867

Re: Income Annuities

lucky3 wrote: Fri Jun 22, 2018 9:31 am Recently met with my Fidelity advisor...

...suggested income annunities to fund essential expenses...

...Other income comes from social security
If I understood you post correctly as long as the equation is as follows:

Annual expenses - SS = deficit to be made up for by SPIA

then I think it is a sound idea.

The benefit to this is the presumed return on your non-annuitized assets should easily be able to provide the inflation adjustment on the non-inflation adjusted annuity.

It also preserves a portion of you assets for:

01) unpredictable emergencies
02) long term care costs
03) growth
04) legacy considerations

Overall I think it is sound advice.
by MrPotatoHead
Fri Jun 22, 2018 1:58 am
Forum: Personal Investments
Topic: is Ed Jones always bad news?
Replies: 29
Views: 4363

Re: is Ed Jones always bad news?

Nate79 wrote: Thu Jun 21, 2018 11:17 pm Only in Bogleheads dreamland is the alternative to Edward Jones a self managed low cost index fund portfolio. Dream on. The alternative is going to be single stock picking, bitcoin, Whole life (and its ugly cousins), and screening for mutual funds that had the highest performance.

That's what normal people do every day. Just cruise reddit and see all the stupidity over there.
Yes, and that is exactly what allows me to enjoy the best of both worlds at Fido and Schwab. These folks pay the freight that allows me to get top flight customer service, free consultation with financial SMEs, all the while maintaining the bulk of assets in low cost etfs. God bless the ignorant.
by MrPotatoHead
Thu Jun 21, 2018 10:11 pm
Forum: Investing - Theory, News & General
Topic: Steep rise in "Old Age Dependency Ratio"
Replies: 15
Views: 2488

Re: Steep rise in "Old Age Dependency Ratio"

VictoriaF wrote: Thu Jun 21, 2018 5:12 pm I am waiting for service jobs to be outsourced to robots.

From what I've seen, in Japan they have robots taking care of the elderly. I'd be more comfortable with a robot than many human caregivers. I'll call him Bob.

Victoria
This.
by MrPotatoHead
Thu Jun 21, 2018 9:44 pm
Forum: Personal Investments
Topic: Purchasing Ally/Synchrony CDs through Fidelity
Replies: 5
Views: 1541

Re: Purchasing Ally/Synchrony CDs through Fidelity

girishc wrote: Thu Jun 21, 2018 7:45 pm Thank you for the info. Appreciate it.
You are very welcome.

As an FYI, I think Fidelity has the best fixed income help desk in the industry. It is a separate phone number with dedicated specialist but I found them even more helpful than Schwab(which surprised me) and certainly far above Vanguard when it comes to fixed income.
by MrPotatoHead
Thu Jun 21, 2018 9:28 pm
Forum: Personal Investments
Topic: is Ed Jones always bad news?
Replies: 29
Views: 4363

Re: is Ed Jones always bad news?

This is likely a rhetorical question I am guessing, but -- does EJ offer any low-cost index funds? My father recently offered up the fact that he was putting the proceeds of his annuities, into an EJ account. I facepalmed twice for that statement. I tried to steer the conversation towards index funds, he said he let the EJ woman choose what she thought was best out of a list. I'm at least glad that he has some money, and apparently more than is currently needed. But the likelihood is that he's in some expensive, front-loaded fund, right? They offer supposed low cost etfs: https://www.edwardjones.com/investments-services/stocks-bonds-mutual-funds/etfs.html They way I would handle is, is I would write up an IPS for my father that includes a ...
by MrPotatoHead
Thu Jun 21, 2018 4:49 pm
Forum: Investing - Theory, News & General
Topic: Is technology the reason for low inflation?
Replies: 57
Views: 4781

Re: Is technology the reason for low inflation?

For all the talk about it, outsourcing in India is not a huge employer. I am guessing 1 million people - a drop in their bucket. And say each outsourced job saves the employer $30k, then that's only $30bn pa - double numbers and double savings to $60k and that's only $120 billion. It is just starting. Take Lowes for example they have moved the vast majority of their IT to India over the past 3 years and now are moving creative positions there. Why: they can get U.S. trained MBAs over there for $12 a hour (that is the actual price per hour) in order to do marketing functions, project management, etc. They just expanded again (the are right across the street from IBM). Many companies are watching Lowes carefully to see how the off shoring of...
by MrPotatoHead
Thu Jun 21, 2018 4:29 pm
Forum: Investing - Theory, News & General
Topic: Steep rise in "Old Age Dependency Ratio"
Replies: 15
Views: 2488

Re: Steep rise in "Old Age Dependency Ratio"

Great post, thx1138, thanks for posting. A sobering note for those who believe future US and DM equity returns are going to be at long term levels of real return. Demography plus debt does not equal destiny but they certainly influence it. This is exactly why I am building assets for my adult children and imaginary grandchildren. I do not believe, as a general statement, they will have the advantage I have had in terms of market based returns. My children get that, and therefore save and invest a great deal of their income (spending < 25% of income), but obviously if everyone did that it would act as a drag on the economy and becomes a self fulfilling prophecy. I'll just leave it at, I think leaving a legacy may be more important than some...
by MrPotatoHead
Thu Jun 21, 2018 4:05 pm
Forum: Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 6964

Re: How much of your taxable holdings is unrealized capital gains?

northtexan wrote: Thu Jun 21, 2018 7:39 am I am 25 and have about 7% of unrealized capital gains in my taxable account. I take advantage of tax gain harvesting since I am in the lower tax brackets and pay 0% on LTCG. As someone has mentioned already about the tax deferred retirement fund like 401k and the gains adding up and hen being taxed as income. I feel this is the most under talked about topic. Many love to talk about contributing to those types of accounts. I love my RothIRA, if you are in the lower tax brackets this is the single biggest advantage to FI in the long term. Being able to put untaxed earnings into it to earn untaxed gains is th best situation one could have.
In your case you may want to look at the ROTH 401K if your plan has that option.
by MrPotatoHead
Wed Jun 20, 2018 11:02 pm
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 58
Views: 7765

Re: Is individual Bonds better than Bond Fund?

One thing that has changed of late is many municipal bond issues are now coming forward with only a single rating agency, meaning more due diligence is needed.

re:
http://www.governing.com/topics/finance ... trend.html
by MrPotatoHead
Wed Jun 20, 2018 10:44 pm
Forum: Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 6964

Re: How much of your taxable holdings is unrealized capital gains?

I am not sure how much of a problem it is at all as long as you don't need to sell your taxable assets if you have mutual funds or etfs.

Individual stocks except maybe Berkshire are a bit more problematic.

I have significant unrealized capital gains but my plan always was to just collect the dividends. The kids will inherit the assets and can get a stepped up cost basis on the individual stocks and will likely roll that into a broad based index/etf.

I think the taxdeferred space is far more problematic and plan to convert that to ROTH status once I theoretically retire from working for wages.
by MrPotatoHead
Wed Jun 20, 2018 5:27 pm
Forum: Investing - Theory, News & General
Topic: Is technology the reason for low inflation?
Replies: 57
Views: 4781

Re: Is technology the reason for low inflation?

mptfan wrote: Wed Jun 20, 2018 11:03 am
Church Lady wrote: Wed Jun 20, 2018 11:01 am Medical inflation. Tuition inflation. You'd think these areas would be ripe for technology driven deflation. Correct me if I'm wrong, but we haven't seen it in tuition and health insurance premiums.
I agree, but it's coming.
Both have protectionist barriers to entry. I tried for year to get virtual classroom introduced in public education in my state and of course the teacher unions fought it.

It got to the point where even when you used a virtual classroom you had to have a teacher employed as a facilitator in order to keep the teacher wage gravy train afloat. The AMA acts as an analogous impediment in medical technology. Eventually though the veil should be pierced though likely outside the U.S.
by MrPotatoHead
Wed Jun 20, 2018 5:20 pm
Forum: Investing - Theory, News & General
Topic: Is technology the reason for low inflation?
Replies: 57
Views: 4781

Re: Is technology the reason for low inflation?

Technology enabled the internet which enabled the off shoring of knowledge jobs leading to a greater number of jobs to suffer from wage stagnation and thus curbing wage induced inflation to a great extent.
by MrPotatoHead
Tue Jun 19, 2018 7:40 pm
Forum: Personal Investments
Topic: Financial Engines Financial Advisor Question
Replies: 7
Views: 1180

Re: Financial Engines Financial Advisor Question

You go the advice you need. Thank him for his time and stay on your own. You may wish to get a second opinion again in about 10 years. My real life observation is you need to review investments when there is a major life change and other then that once very 10 years or so suffices.
by MrPotatoHead
Tue Jun 19, 2018 7:30 pm
Forum: Personal Investments
Topic: Purchasing Ally/Synchrony CDs through Fidelity
Replies: 5
Views: 1541

Re: Purchasing Ally/Synchrony CDs through Fidelity

As long as you are under the FDIC limit you principle is secure. Be aware the FDIC does not (or at least did not; it been along time since I was in banking) cover the interest you earned so it may become relevant on a large denomination CD that compounds for many years. Also any acquiring bank can adjust the interest rate. You have a general idea of how the secondary market works. Be aware that when you look at a secondary CD's balance at Fidelity, it may show a capital loss simply because it is reflecting the market value that day. You do get the full face value when it matures. But it can be a but ominous the first time you see it, especially on large denomination purchases. Also, I shall not pretend to be a tax expert, but my understandi...
by MrPotatoHead
Sun Jun 17, 2018 9:26 pm
Forum: Investing - Theory, News & General
Topic: "Money Talk" Radio Program with Bob Brinker
Replies: 33
Views: 5655

Re: "Money Talk" Radio Program with Bob Brinker

Oh yeah, Brinker is the market timing wizard who went from 100% equities before Black Monday (Oct 19th 1987), to 0% equities after the crash (Jan 1988) and a 9.5% recovery, then never got back to being fully invested until July of 1990. Of course the market was up roughly 40% from his (Jan 1988) sell by then. So he got both sides of the trade wrong (note, he did go to 50% invested in Feb of 1989 after the market was up about 17% above his sell). Isn’t market timing wonderful? Brinker also once told a caller to consider her(Becky) self-employment income as a gift so she did not have to pay taxes on it. He also reflexively recommends callers roll their 401Ks into IRAs. Brinker is awesome, the best. By the way, if you look at his newsletters, ...
by MrPotatoHead
Sat Jun 16, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 80
Views: 10834

Re: Flaw in Logic? CD ladder instead of bond funds

Tycoon wrote: Fri Jun 15, 2018 3:09 pm Hey! Wait a minute! This guy has 10 million and he didn't go to an Ivy? What? How did that happen?

Oops! Wrong Thread. :?
LOL! Much appreciated.
by MrPotatoHead
Sat Jun 16, 2018 10:26 pm
Forum: Personal Consumer Issues
Topic: Chipmunk problem
Replies: 69
Views: 9327

Re: Chipmunk problem

I just bought the Havahart trap a few days ago. So far the chipmunks have eaten the peanut butter and escaped four times, even though the trap was set off. Not sure how this is happening. My wife is keeping score and so far CHIPMUNKS - 4, MUNEMAKER - 0. I am about to lose my heart and go for the "chipper dipper," aka chipmunk swimming pool. I set up the 5 gallon bucket, sunflower seeds, ramp. Set it on a nice level spot. Problem is that the ground squirrels knock off the ramp and eat the seeds. Now what? Uh...okay firmly attached the ramp to the bucket...next step the bucket need to have two small holes near the top, on eon each side of the bucket...then you put a thin rod through one of the whole and then thread an empty beer or...
by MrPotatoHead
Sat Jun 16, 2018 10:02 pm
Forum: Personal Consumer Issues
Topic: Chipmunk problem
Replies: 69
Views: 9327

Re: Chipmunk problem

I just bought the Havahart trap a few days ago. So far the chipmunks have eaten the peanut butter and escaped four times, even though the trap was set off. Not sure how this is happening. My wife is keeping score and so far CHIPMUNKS - 4, MUNEMAKER - 0. I am about to lose my heart and go for the "chipper dipper," aka chipmunk swimming pool. I wonder if the Havahart trap “bars” are too open / too big? You’d be amazed at how small of an opening rodents can squeeze through. No, they are actually fast enough to just barely beat the trap...I have seen it many times with ground squirrels. I put peanut butter crackers on the trigger pan. They are not stupid critters...now normal squirrels and raccoons I can trap all day long (different ...
by MrPotatoHead
Sat Jun 16, 2018 2:06 am
Forum: Personal Consumer Issues
Topic: Chipmunk problem
Replies: 69
Views: 9327

Re: Chipmunk problem

Try mixing peanut butter with plaster of paris and making them delicious little homemade peanut snacks.

I was told this would not work as advertised but I got rid of passel of ground squirrels and tree squirrels and this is what I attribute it to.
by MrPotatoHead
Sat Jun 16, 2018 1:42 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 17470

Re: Which boglehead rule do you break--and are ok with

zaboomafoozarg wrote: Fri Jun 15, 2018 3:00 pm Unlike other Bogleheads, I don't have a $5,000 wristwatch. :D
Huh...I don't think I have had a wrist watch in over 40 years...
by MrPotatoHead
Sat Jun 16, 2018 1:33 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 17470

Re: Which boglehead rule do you break--and are ok with

Like John Bogle I have no issue with holding a portfolio of individual stocks where as it seems most Bogleheads are adverse to it despite their namesake's approval. In summary costs do matter and these days you can buy for free at many institutions.
by MrPotatoHead
Fri Jun 15, 2018 1:26 am
Forum: Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 30
Views: 4785

Re: Vanguard Managed Payout Fund

Something you might want to be aware of is in the past Vanguard has had to cut the monthly income payouts. For example on January 15th of 2010 Vanguard cut the monthly income payouts by more than 9%. At that point in time (Jan 2010) the payouts on its funds were down between 23 and 25.5% since inception!!! I culled that information from the following URL: https://investorplace.com/2010/02/vanguard-managed-payout-funds-not-living-up-to-their-promise/ I remember a lot of folks being pretty upset at the time, because many mistakenly believed managed payout funds were a smarter annuity substitute. Given the demonstrated reality of what can happen (an income cut) I would at a investigate other approaches. One approach is to look at base lining y...
by MrPotatoHead
Fri Jun 15, 2018 12:55 am
Forum: Personal Investments
Topic: Vanguard or Charles Schwab account
Replies: 26
Views: 5881

Re: Vanguard or Charles Schwab account

You are aware that Fidelity has extremely low cost index funds, or even better commission free etfs - right? For example ishares ITOT (total stock market) with a .03% ER. I am not sure why you would want to leave a brokerage with first tier customer service like Fidelity for a firm with customer service like Vanguard but that is up tp you. IMO, Schwab has slightly better customer service than Fidelity (I have accounts at all three, the only one I regret is Vanguard). I would really think this over hard ( customer service as well as costs) if you think you are going to accumulate substantial assets. Often with more assets complications in planing enter the picture. In answer to your question I would take Schwab over Vanguard any day.
by MrPotatoHead
Thu Jun 14, 2018 12:02 am
Forum: Investing - Theory, News & General
Topic: When did you start teaching your kids about investing ?
Replies: 6
Views: 1059

Re: When did you start teaching your kids about investing ?

Starting at age 4. It was part of their homeschooling. They all learned how to calculate compound interest for CDs. The also got an allowance that came as a pretend pay check, complete with federal, state, and SS deductions. And they were instructed to save a bit for their retirement, which they did. The also learned to do taxes at a very young age (you have not lived until you see 6-10 years old reading the instructions for the 1040, especially the alternative minimum tax). They were well versed in what stock, bonds, cds, Treasury Bills, Treasury notes, savings bonds, 529s, mutual funds, etc. They liked to quiz each other and were always making up quizzes and compound interest problems for one another. In my view, once they can do math the...
by MrPotatoHead
Wed Jun 13, 2018 11:31 pm
Forum: Personal Investments
Topic: [Looking for ways to reduce taxes and keep more of my income]
Replies: 91
Views: 12394

Re: Getting killed on taxes - any ideas?

You are getting absolutely destroyed by people here, but I will say, I understand your point of view. With a high income, seeing the raw numbers come out somehow hurts worse than if you figure the actual tax rate which actually isn't that terrible, but to folks not making this sort of cash, its really hard to understand the complaint. We paid 6 figures in taxes last year. We are well aware of our relative fortune. And I find it very, very hard to understand this complaint. Taxes are what we pay to live in a civilized society. Full stop. We pay our fair share, happily, and even think that tax rates on our income level should be higher. We don't have children to justify taxes for paying teachers. We'd just prefer our civilisation to be educa...
by MrPotatoHead
Wed Jun 13, 2018 11:29 pm
Forum: Personal Investments
Topic: [Looking for ways to reduce taxes and keep more of my income]
Replies: 91
Views: 12394

Re: Getting killed on taxes - any ideas?

Longdog wrote: Wed Jun 13, 2018 7:02 am I think it was your use of the phrase “killed on taxes” that triggered many of the responses. While it may feel like you are paying a lot of taxes - probably more than you ever have in your life - you’re only paying your fair share of your very high income.
Could not delete my post, so I removed my commentary.
by MrPotatoHead
Wed Jun 13, 2018 11:06 pm
Forum: Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 74
Views: 11226

Re: Taking $1M+ Long Term Capital Gains

Sounds like you have a handful of concentrated individual stock positions with large capital gains, that you plan to sell, and immediately reinvest into a broad market index (ie, S&P500)? If so, I'd highly recommend you look into an exchange fund. This is a private placement fund that takes advantage of a tax loophole for partnerships. Effectively, you contribute your appreciated stock to the fund, which maintains a large portfolio of other appreciated stock from other partners, and the portfolio is constructed to track a market index (S&P 500/1000 or similar). After 7 years, you are eligible to redeem your shares in the fund for a diversified basket of stocks, or you can stay in the fund. Your basis in the fund or stock basket wil...
by MrPotatoHead
Wed Jun 13, 2018 12:01 am
Forum: Personal Investments
Topic: [Looking for ways to reduce taxes and keep more of my income]
Replies: 91
Views: 12394

Re: Getting killed on taxes - any ideas?

Hello everyone, So here's my situation. My wife and I are in our 30s. We got a late start earning because we both went to graduate school. We still have student loan debt but are aggressively paying that off and it should be done in the next year. We are maxing our 401ks (she is limited to 10K due to being a HCE) and recently opened backdoor Roth IRAs. The good news for us is that our income is good - about $450K/yr. But my wife's career is demanding and she doesn't think that she will be able to keep that up (at the high income level she's doing it at) for more than another 5 years or so. Our goal is to retire early. So we want to maximize our strong income now by putting as much away as possible. Not to be too dramatic, but we are gettin...
by MrPotatoHead
Tue Jun 12, 2018 10:34 pm
Forum: Personal Investments
Topic: Interesting Social Security analysis
Replies: 16
Views: 2831

Re: Interesting Social Security analysis

I have no idea what a "Flexible Retirement Planner" is, but my understanding form the social security folks is nothing you do is suppose to make a difference in your expected payout. In other words they have an actuarial assumed neutral mandate so your total time value of money payout is theoretically the same no matter when you claim your social security. The only way you win on personal level is if you guess correctly about the date of your demise and made an adjustment to when you take social security that capitalized on your guess. Stated differently, from the social security administrations standpoint you get the same time value of money payout no matter if you take you SS at full retirement age or delay it until 70(or any ot...
by MrPotatoHead
Tue Jun 12, 2018 9:47 pm
Forum: Personal Investments
Topic: Vanguard Advisor Services
Replies: 45
Views: 5572

Re: Vanguard Advisor Services

fancyrick63 wrote: Tue Jun 12, 2018 5:14 pm and if not why not
Point one, I believe in personal responsibility and a IPS.

Point two, I cannot fathom what value add Vanguard could ever bring beyond the great service they did to all by being dominant in the market place and forcing other companies to offer low cost indexes. IMO, they simply are not set up or organized to perform value added services. Watching them tinker with their Target Date funds and their managed payout funds lead me to conclude they are simply not a company to look to for value added services or service in general.

Point three, as noted in this forum, they can be rather high handed in their approach.
by MrPotatoHead
Tue Jun 12, 2018 9:14 pm
Forum: Personal Investments
Topic: Why don't we index the Nasdaq too?
Replies: 23
Views: 5509

Re: Why don't we index the Nasdaq too?

Blueskies123 wrote: Tue Jun 12, 2018 4:52 pm It is called QQQ
The OP needs to reach out to Bob Brinker and discuss the merits of the QQQ index - LOL!!!
by MrPotatoHead
Tue Jun 12, 2018 8:53 pm
Forum: Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 74
Views: 11226

Re: Taking $1M+ Long Term Capital Gains

Hmmm...first post a market timing post. That aside...

Since these are individual stocks you may want to figure out your optimum capital gains strategy and look at put options in order to protect the remainder of what you cannot sell in a given year.

The following url may prove useful if you wish to explore this idea:

https://www.fidelity.com/viewpoints/act ... ur-profits
by MrPotatoHead
Tue Jun 12, 2018 2:33 am
Forum: Personal Investments
Topic: Left Advisory Portfolio to do it myself and fear I made mess of things
Replies: 35
Views: 3896

Re: Left Advisory Portfolio to do it myself and fear I made mess of things

I think at present the picture is incomplete. First of all, I would not panic, there really is nothing amiss you just got a bit mutual fund and stock crazy. I think in your taxable individual account you need to list the ERs for each fund as well as your cost basis and evaluate how any losses might offset gains for tax purposes, and then focus on the ERs. That info may guide you to a liquidation strategy. You also need the cost basis on the stocks. I would tempted to simply hold Berkshire and MCD. MCD, like Berkshire is a breed apart. MCD is not really in the burger business, it is more a real estate empire with captive tenants and owns some of the most valuable properties in the country. You could do far worse in the long term than either ...
by MrPotatoHead
Mon Jun 11, 2018 10:46 pm
Forum: Personal Investments
Topic: Strategy for a prolonged bear market
Replies: 65
Views: 7985

Re: Strategy for a prolonged bear market

It is not in an IPS, but I have a lifestyle alteration/commitment contingency plan that kicks in in the event I cannot refill my expense bucket's via dividend's and interest. Essentially I alter my food consumption pattern which is a large portion of expenses, thus effectively lowering my expenses in order to compensate for portfolio deterioration. The idea is I do not want to sell my principle stake. I have looked at this closely and we figure we can easily cut our food bill by 75% fairly easily. And I can go up to 85% without too much difficulty. So that would lower my expense by about 21-23%. So that would drop me from a 1.44% withdraw rate to a 1.114% withdraw rate. Of course we are talking the likely hood of perhaps a 70% portfolio ha...
by MrPotatoHead
Mon Jun 11, 2018 8:40 pm
Forum: Personal Investments
Topic: No Roth 401k - Workaround?
Replies: 9
Views: 1143

Re: No Roth 401k - Workaround?

Your friend might want to write up a paper and give it to their manager and HR suggesting change to the 401K plan. I have found employers malleable on the topic.
by MrPotatoHead
Mon Jun 11, 2018 7:48 pm
Forum: Personal Investments
Topic: Strategy for a prolonged bear market
Replies: 65
Views: 7985

Re: Strategy for a prolonged bear market

It is not in an IPS, but I have a lifestyle alteration/commitment contingency plan that kicks in in the event I cannot refill my expense bucket's via dividend's and interest. Essentially I alter my food consumption pattern which is a large portion of expenses, thus effectively lowering my expenses in order to compensate for portfolio deterioration. The idea is I do not want to sell my principle stake. I have looked at this closely and we figure we can easily cut our food bill by 75% fairly easily. And I can go up to 85% without too much difficulty. So that would lower my expense by about 21-23%. So that would drop me from a 1.44% withdraw rate to a 1.114% withdraw rate. Of course we are talking the likely hood of perhaps a 70% portfolio hai...
by MrPotatoHead
Mon Jun 11, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: WSJ-- Next Stop for Mutual-Fund Fees: Zero
Replies: 40
Views: 5347

Re: WSJ-- Next Stop for Mutual-Fund Fees: Zero

I guess it is a mindset. Consider if I have a 3 million dollar equity portfolio. Even if the overall expense ratio is .03% it is a chunk of money to me.

I invest to generate a cashflow I can live off of in retirement. So I ultimately expense ratios are an expense against the cashflow/return/yield of the investment as I am not aiming for graceful liquidation my principle.

What I consider a safe withdraw rate is 1.6%, ergo, 48,000 a year on 3 million. That .03% ER is $900 a year or 1.85% of what I take out of it. So the croupier rakes in almost 2% off my investments even with a .03% ER.

As I said, it is how you view it.
by MrPotatoHead
Sun Jun 10, 2018 10:31 pm
Forum: Personal Investments
Topic: Annuity/Pension subsitutes for portfolio
Replies: 31
Views: 3372

Re: Annuity/Pension subsitutes for portfolio

grok87 wrote: Sun Jun 10, 2018 1:05 pm So i’ll Take a position a little different than retiredjg.
:)
The problem with annuities is that they are not federally guaranteed. In fact they are not strictly speaking even state guaranteed. They are backed by state guarantee funds that will be funded after the fact by assessments on other insurance companies operating in the state. And even that coverGe is limited in dollar terms.
+ 1
by MrPotatoHead
Sun Jun 10, 2018 10:21 pm
Forum: Personal Investments
Topic: Annuity/Pension subsitutes for portfolio
Replies: 31
Views: 3372

Re: Annuity/Pension subsitutes for portfolio

My preferred approach to use the NPV of a CD ladder to buy a ladder and invest the difference.

Two posts on the topic...likely others under my username.

viewtopic.php?f=1&t=240130&p=3757300&hi ... r#p3757300

viewtopic.php?f=1&t=247736&p=3893211&hi ... r#p3893211