Search found 153 matches

by Juice3
Sat Feb 15, 2020 6:21 am
Forum: Personal Finance (Not Investing)
Topic: Should I switch my 100k Savings to Wealthfront from Ally for an extra 0.20% APY
Replies: 16
Views: 2145

Re: Should I switch my 100k Savings to Wealthfront from Ally for an extra 0.20% APY

Hypothetically, if I am going to park this money in savings account for 2 years, is CD the best choice ? Like I said before, the word above you should examine is "Hypothetically". If you do not have a plan, it is not possible for us to advise you on the best course of action. The further out in tim...
by Juice3
Sat Feb 15, 2020 6:14 am
Forum: Personal Investments
Topic: I feel my AA is a little high
Replies: 20
Views: 2006

Re: I feel my AA is a little high

When you start your post with "I feel" there is not really a right and wrong answer. You feel how you feel. Within the Bond sector there are corp or government with varying levels of risk. And duration with more or less sensitivity to interest rates. Make the choices that without significant pitfall...
by Juice3
Fri Feb 07, 2020 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should I switch my 100k Savings to Wealthfront from Ally for an extra 0.20% APY
Replies: 16
Views: 2145

Re: Should I switch my 100k Savings to Wealthfront from Ally for an extra 0.20% APY

No.

If you have 100K in cash, do not chase 200 in additional taxable interest.

Instead consider why you have 100K in cash, if you are going to buy something soon, then no change.

If you are not going to buy something soon, why is the money in cash?

J
by Juice3
Thu Feb 06, 2020 6:35 am
Forum: Investing - Theory, News & General
Topic: Fidelity lets clients now trade fractional shares of stocks and ETFs
Replies: 171
Views: 13459

Re: Fidelity lets clients now trade fractional shares of stocks and ETFs

On top they are going to do it for ETFs putting pressure back on Schwab... Now it is in Vanguard's court to meet the new bar. There has been speculation that Schwab's omission is intentional. Further, that Schwab's intent is disintermediate ETFs. Vanguards response (or lack of) will be very interes...
by Juice3
Tue Feb 04, 2020 6:16 pm
Forum: Personal Investments
Topic: Re: Divs and Cap Gains are killing me - personal
Replies: 151
Views: 21540

Re: Divs and Cap Gains are killing me - personal

Simple Interest and Ord Divs (without offsetting QDI) are "bad" as taxed at my 24% rate. The QDI and Cap Gains are "good" as taxed at the standard 15% rate. Yes, Divs (Q or not) are also bad because you have no control of the timing. Once you own the security, the div come out like clockwork varyin...
by Juice3
Tue Feb 04, 2020 6:07 pm
Forum: Personal Investments
Topic: Re: Divs and Cap Gains are killing me - personal
Replies: 151
Views: 21540

Re: Divs and Cap Gains are killing me - personal

My experience has been actively managed stock funds pay at a rate of about 5x or more of the typical Boglehead strategy of index investing. This means for every 1K in active you might expect returns of 8-10% in active managed or 80-$100. Compared to an index like VTI paying more along lines of 1.8%...
by Juice3
Tue Feb 04, 2020 7:02 am
Forum: Personal Investments
Topic: Re: Divs and Cap Gains are killing me - personal
Replies: 151
Views: 21540

Re: Divs and Cap Gains are killing me

An interesting side note on this conversation is that recent Schaub activities have some pundits speculating that they might be planning a replacement product for index tracking ETFs / Mutuals that is even more tax efficient.

Someone should start another thread on that.
by Juice3
Tue Feb 04, 2020 7:00 am
Forum: Personal Investments
Topic: Re: Divs and Cap Gains are killing me - personal
Replies: 151
Views: 21540

Re: Divs and Cap Gains are killing me

Like has been mentioned, many years ago - I basically was looking for Div paying funds (Vanguard) and stocks (Schwab) to replace any CD type investments. Put the chips on the table, and let it ride.... and here we are - Here is a more objective discussion on the dividend strategy https://en.wikiped...
by Juice3
Sun Feb 02, 2020 8:54 am
Forum: Personal Investments
Topic: Generating income for school fees
Replies: 10
Views: 531

Re: Generating income for school fees

My wife and I hope to have kids in ~2 years. Right now, our portfolio is aggressive. Only 10% in bonds. 5% in Amazon. 5% in highly speculative assets like Bitcoin and tech company angel investments. The remainder is in stock ETFs --- VINIX & VTI. We're able to live on ~60% of our take-home and inve...
by Juice3
Wed Jan 29, 2020 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 756
Views: 64029

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

By the way guys relax I'm not out to get anyone and I'm not saying pretax is a scam or anything. I'm just trying to open up the conversation with scenarios. Personally I will have 15-20 years to convert our 401ks so I think we might come out ahead, but it will be pretty tight. If I wasn't planning ...
by Juice3
Wed Jan 29, 2020 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Daughter's Boston Job Offer
Replies: 115
Views: 9222

Re: Daughter's Boston Job Offer

Use a cost of living calculator to compare 68k in Boston to where you live to see what that would equate to. For example, making $44k in Cleveland is like making $68k in Boston. Not sure what calculator you are suggesting. This one https://smartasset.com/mortgage/cost-of-living-calculator Suggests ...
by Juice3
Wed Jan 15, 2020 3:58 pm
Forum: Personal Investments
Topic: Just retired. Too emotionally attached to hard earned $ to be in market and generate a "paycheck."
Replies: 75
Views: 7774

Re: Just retired. Too emotionally attached to hard earned $ to be in market and generate a "paycheck."

By far the biggest risk you have is outliving your money, especially at the 20/80 Equity to Fixed Income asset allocation you currently have. You say you are conservative, fine ... define a new AA and plan to move from where you are to where you want to be. Let's assume that is 40/60. Then move make...
by Juice3
Wed Jan 15, 2020 9:48 am
Forum: Personal Investments
Topic: Splitting existing 529s for future grandchildren, process and paperwork
Replies: 7
Views: 428

Re: Splitting existing 529s for future grandchildren, process and paperwork

With no state tax benefits, I would ask why you're setting up a 529 at all. I know for myself, I never set one up until my state instituted tax benefits, 2 years ago. Perhaps rethink the whole thing. If you earmark the money in a taxable brokerage account, there's no accounting for it within any FA...
by Juice3
Wed Jan 08, 2020 5:51 pm
Forum: Personal Investments
Topic: Ohio STRS opinions
Replies: 20
Views: 758

Re: Ohio STRS opinions

So basically, someone wants STRS participants to complain via a petition that that STRS admins are increasing the STRS reserves via decreasing benefits and increasing contributions. You people should jump in the SS pool and see how the water is. We pay a similiar percentage of earnings and have almo...
by Juice3
Wed Jan 08, 2020 5:20 pm
Forum: Personal Investments
Topic: Ohio STRS opinions
Replies: 20
Views: 758

Re: Ohio STRS opinions

I also understand STRS would be more like a combo of SS and pension than comparing to a 401k
by Juice3
Wed Jan 08, 2020 5:12 pm
Forum: Personal Investments
Topic: Ohio STRS opinions
Replies: 20
Views: 758

Re: Ohio STRS opinions

What is your question?

I find it surprising a teacher would slam something without offering an alternative. You have to choose from the choices your have or choices you create, not cherry pick from others options.
by Juice3
Sat Jan 04, 2020 2:00 pm
Forum: Personal Investments
Topic: Portfolio Advice: becoming more aggressive
Replies: 11
Views: 1255

Re: Portfolio Advice: becoming more aggressive

I do not know much about federal pensions. Here are some things to think about. 1. What happens if you leave your job before 30 years of service? 2. What is you and your wifes life insurance situation? 3. 70 equity / 30 bond is certainly in the reasonable range for a 40yo. If you are interested in i...
by Juice3
Tue Dec 31, 2019 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for the Bay Area high income software engineer
Replies: 51
Views: 5482

Re: Advice for the Bay Area high income software engineer

At least for a hands on position the challenge is that any experience that you have that is more than about ten years old is pretty irrelevant since things change and the technology you used 20 years ago really does not matter much. I am going to again call nonsense. Of the top 5 programming langua...
by Juice3
Tue Dec 31, 2019 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for the Bay Area high income software engineer
Replies: 51
Views: 5482

Re: Advice for the Bay Area high income software engineer

I've been in the tech industry since 1995. My advice to anyone is to have an exit plan such that you can be out of the tech industry by 55, either by choice or otherwise. I turn 50 in 2020, so my clock is ticking. Luckily, we're FI, so we're just padding the nest egg at this point. And I have compe...
by Juice3
Sun Dec 29, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: Will RMD lower your wealth
Replies: 37
Views: 3346

Re: Will RMD lower your wealth

I haven't tried to do the math, but I think the big benefit of a TIRA or 401(k) comes at the very beginning, in the tax savings when the money goes in. Presumably we all take those savings and invest them to grow, and they are now outside the TIRA or 401(k) and obviously are not affected by taxes o...
by Juice3
Sat Dec 07, 2019 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Should I do Roth conversions
Replies: 26
Views: 1359

Re: Should I do Roth conversions

... but am concerned Roth accounts may be taxed in future . We are not allowed to speculate on future tax changes that haven't been enacted. That said - we see a lot of posts to the effect of either: a) I want to stuff my Roth accounts now because it's such a good deal they may take it away in the ...
by Juice3
Tue Dec 03, 2019 5:57 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 29576

Re: I’m done with index funds

I think you’re missing the possibility of never paying taxes on some portion of the gains, and then getting the stepped-up basis for the heirs at death. I did not miss it. Step up is a possibility with our without buying something that does index tracking. Step up applies to gains unrealized and as...
by Juice3
Tue Dec 03, 2019 5:06 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 29576

Re: I’m done with index funds

Can the capital gains losses you harvest be carried forward years into the future and offset an arbitrary amount of capital gains when your windfall arrives, and do you expect that amount to be greater than the 0.7% * number of years implementing this? The answer is “yes”. It seems this strategy is...
by Juice3
Mon Nov 25, 2019 3:22 am
Forum: Investing - Theory, News & General
Topic: Rookie question re return expectation
Replies: 15
Views: 1042

Re: Rookie question re return expectation

Individual stocks are more volatile and not expected to have same the same average return as the broader market.

The term average pretty much sums it up. Some will be higher and some will be lower. A few may be nearly the same.
by Juice3
Wed Nov 20, 2019 7:37 pm
Forum: Personal Investments
Topic: Now That I have Won
Replies: 24
Views: 6342

Re: Now That I have Won

So when you are 95, you no longer have to take RMDs? :-) Congrats! Every 89 year old has 12 years of RMD in an IRA. That is how RMD is calculated. You usually hear 8.33% or a IRS states it as a distribution period of 12. 89 is interesting because everyone will almost surely have a declining IRA bal...
by Juice3
Tue Nov 19, 2019 5:01 pm
Forum: Personal Investments
Topic: TIRA to Roth IRA Question
Replies: 10
Views: 493

Re: TIRA to Roth IRA Question

I have cash holdings in TIRA and Savings account AND plan to keep a fair amount of cash in both accounts. You should split your cash holding across your tIRA and taxable and Roth as you deem appropriate for you. Many (especially here) people probably have little to no cash in tIRA and Roth. See tax...
by Juice3
Tue Nov 19, 2019 6:03 am
Forum: Personal Investments
Topic: Tax efficiency when in the 12% bracket
Replies: 12
Views: 2572

Re: Tax efficiency when in the 12% bracket

Linus, the question you are posting is not clear. Yes, should take advantage of 0% LTCG, when possible and makes sense. Will you retire away from CA and be able to avoid CA tax in the future? If so, include that in your plan. Can you use your taxable savings to pay tax on Roth conversions and/or pay...
by Juice3
Mon Nov 18, 2019 6:25 am
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7613

Re: How much is a Roth worth?

Feel free to check my math, I probably made an error or two. https://docs.google.com/spreadsheets/d/1XhrdrYgyq6NkpQ_T4xtlobABluvAgQZ94wjQo2MTths/edit?usp=sharing Thank you for actually posting your work. I see just one catastrophic error in in your math. You forgot to discount the Roth starting bal...
by Juice3
Sun Nov 17, 2019 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7613

Re: How much is a Roth worth?

I would pay around what my expected capital gains tax rate is as a starting point. ... but I'd at least start at 20%. Okay, we will have to agree to disagree then. You said you were willing to pay at least 20%. I showed that the break even period for a 20% payment was 25sih years. I suggested that ...
by Juice3
Sun Nov 17, 2019 4:47 pm
Forum: Personal Investments
Topic: Tax efficiency when in the 12% bracket
Replies: 12
Views: 2572

Re: Tax efficiency when in the 12% bracket

You are on the right path. There are threads that talk about the small differences in FSKAX and FTIHX. You are looking for bigger fish to fry. https://www.bogleheads.org/forum/viewtopic.php?t=268311 You need to be looking for ways to get your nest egg out of taxable and into retirement accounts (Rot...
by Juice3
Sun Nov 17, 2019 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7613

Re: How much is a Roth worth?

I would pay around what my expected capital gains tax rate is as a starting point. ... but I'd at least start at 20%. Interesting perspective, your break even point would be 26.4823 years. After 30 years, you would be up 0.84% of the Roth balance. Switching to annual compounding (from the semi - an...
by Juice3
Sun Nov 17, 2019 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7613

Re: How much is a Roth worth?

Assume ~$25k/year into a Roth, 7.2% historical return with my AA, 15% federal/10% state capital gains over twenty years. Money that would be paid as tax in taxable is getting reinvested and growing in the Roth. Compound returns make the number big in later years. It's smaller starting out. $5k/year...
by Juice3
Sun Nov 17, 2019 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7613

Re: How much is a Roth worth?

How much is a Roth worth? It depends, but it can be a lot. I recently calculated if a Mega Backdoor Roth was worth it. After 20 years of reinvesting the tax savings, it would return an extra $100k vs. investing in taxable. That makes a Mega Backdoor Roth a $5k/year amortized work benefit for me. Th...
by Juice3
Sat Nov 16, 2019 8:23 am
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7613

Re: How much is a Roth worth?

I'm interested in the value of a Roth-style tax advantaged retirement account. Nothing about account fees or actual Roths. This isn't traditional vs Roth question. Is paying taxes now to convert the IRA "worth it" to be able to make subsequent Roth IRA contributions for a period of X years? This is...
by Juice3
Wed Nov 13, 2019 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing a bad inherited tIRA situation
Replies: 13
Views: 1505

Re: Fixing a bad inherited tIRA situation

Here are some pretty simple reading rules for RMD
https://investor.vanguard.com/inherit/ira-rmd

As Celia said, I suspect the IRS will waive penalties if you take all required RMDs ASAP. If you keep dragging it out, at some point you might tax their patience.
by Juice3
Wed Nov 13, 2019 2:42 pm
Forum: Personal Investments
Topic: Retiring soon and need help
Replies: 19
Views: 2440

Re: Retiring soon and need help

Her tIRA $1.2M Her 401k $1.5M You are obviously in good shape. I take it "her" was a high earner. Looking at a year by year plan is going to be important for you and trying to identify how to minimize taxes such as NIIT. With a 2.7M current balance (and if you are not planning to start IRA withdraw...
by Juice3
Mon Nov 04, 2019 11:30 am
Forum: Personal Investments
Topic: How much money is really needed in retirement?
Replies: 74
Views: 9719

Re: How much money is really needed in retirement?

So how should a financially savvy Boglehead look at it? I did a Google search to try and get an estimation on if we are on the right track and every article referenced a multiple of your income (which by the way can change drastically over any given time period). Here is a step by step. 1. Open up ...
by Juice3
Wed Oct 23, 2019 9:49 am
Forum: Personal Consumer Issues
Topic: Possible Structural Issues in a House
Replies: 21
Views: 1800

Re: Possible Structural Issues in a House

We had a similar issue. 15 year old house (at that time), added hardwood on first floor. There was an area near the back of the house between a great room and kitchen which had about a 1/4 to 1/2 inch depression when measured with a 3 foot level ... aka dip of about 1/6 of an inch per foot over a 3-...
by Juice3
Tue Oct 15, 2019 4:24 am
Forum: Personal Investments
Topic: Advice on 529 for a couple years outlook
Replies: 4
Views: 549

Re: Advice on 529 for a couple years outlook

The main advantage of a 529 plan is that you have tax free growth for 18-24 years. By putting money in now at market highs, you might not have much in the way of growth, or worse have losses that can no longer be tax deductible. In addition, you want money you need within 4 years to be very conserv...
by Juice3
Sat Oct 05, 2019 5:13 am
Forum: Personal Finance (Not Investing)
Topic: Change of Careers after 1st Retirement
Replies: 17
Views: 1914

Re: Change of Careers after 1st Retirement

Why make such a drastic change from what you like? You could work as a 'consultant'. Private companies have projects that pay consultants to do what you do for the state. In some cases, these resources are snow birds that work summers and fly off in the winters. Keep doing what you are doing, keep y...
by Juice3
Fri Oct 04, 2019 5:46 am
Forum: Personal Investments
Topic: Munis in Taxable or Bonds in the 401K?
Replies: 41
Views: 3105

Re: Munis in Taxable or Bonds in the 401K?

Would you recommend I act as my own doctor? Depends...if it's the end of the day and I'm trying to leave the office, then I highly recommend it! However, I do see your point. Maybe I'm crazy but WCI has inspired me to try the DIY approach. I am all for DIY. I am not seeing you doing the leg work to...
by Juice3
Thu Oct 03, 2019 4:43 pm
Forum: Personal Investments
Topic: Munis in Taxable or Bonds in the 401K?
Replies: 41
Views: 3105

Re: Munis in Taxable or Bonds in the 401K?

It seems unlikely you would "run out" of tax-advantaged space with appropriate planning. You can find various other threads here where DRs contribute well over the 19K annual 401K elective deferral limit maybe approaching 100K a year to tax-advantaged. The elective deferral limits can be worked aro...
by Juice3
Wed Oct 02, 2019 8:45 am
Forum: Personal Investments
Topic: Munis in Taxable or Bonds in the 401K?
Replies: 41
Views: 3105

Re: Munis in Taxable or Bonds in the 401K?

Thanks for the help everyone. Marginal tax rate (married filing jointly) is 32%. I'm in a no-income tax state, and I have enough funds in my 401(k) to place the entire 15% bond allocation there for now (granted this would only leave very little percentage of stocks in my 401k, about 2% of my portfo...
by Juice3
Wed Oct 02, 2019 6:39 am
Forum: Personal Investments
Topic: Munis in Taxable or Bonds in the 401K?
Replies: 41
Views: 3105

Re: Munis in Taxable or Bonds in the 401K?

This is an argument for bonds in taxable, but not necessarily for total bond in taxable. People who are/will be in a higher tax bracket should probably be using tax-exempt bonds instead of total bond. I used the term bond loosely. The question posed actually used the term fixed income. How about on...
by Juice3
Wed Oct 02, 2019 6:25 am
Forum: Personal Investments
Topic: Munis in Taxable or Bonds in the 401K?
Replies: 41
Views: 3105

Re: Munis in Taxable or Bonds in the 401K?

Thanks for the help everyone. Marginal tax rate (married filing jointly) is 32%. I'm in a no-income tax state, and I have enough funds in my 401(k) to place the entire 15% bond allocation there for now (granted this would only leave very little percentage of stocks in my 401k, about 2% of my portfo...
by Juice3
Wed Oct 02, 2019 6:15 am
Forum: Personal Investments
Topic: Munis in Taxable or Bonds in the 401K?
Replies: 41
Views: 3105

Re: Munis in Taxable or Bonds in the 401K?

Can anyone comment if there is a role for a total bond fund in taxable account? There can be a role for total bond in a taxable account, but probably not for people in a higher tax bracket. An instance of bonds in taxable would be approaching retirement and thus needed access to the money in the sh...
by Juice3
Sat Sep 21, 2019 5:53 am
Forum: Personal Investments
Topic: Math is scary
Replies: 42
Views: 7043

Re: Math is scary

mikemikemike wrote:
Mon Sep 16, 2019 1:12 pm
I'll be retiring in about 30 years.
(1+.02)^30 = 1.8
1.8*current expenses*25 = ...
... sorry didn't mean to scare you.

Of course the scary part is will inflation be .02, will retirement be in 30 years, and what are expenses then. The math is pretty simple.
by Juice3
Fri Sep 20, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: IT compensation comparison
Replies: 269
Views: 27087

Re: IT compensation comparison

It shows total compensation of around 180K including stock and bonuses but not including benefits. 3 years is pretty much fresh out of college. If you are concerned about the cost of software engineering, I can get you experienced software engineers offshore probably for the 20-30 per hour range de...
by Juice3
Sat Sep 07, 2019 7:34 am
Forum: Investing - Theory, News & General
Topic: Should I change my asset allocation and pay the capital gains?
Replies: 11
Views: 929

Re: Should I change my asset allocation and pay the capital gains?

Another point to keep in mind is that you might look at you unrealized capital gains as a future liability. You will do the tax math around CG at some point (assuming you plan to spend the money rather bequeath it). If paying now is likely to be less than paying later, by all means pay now. For exam...