I've been trying to figure out whether or not I should sign up for Part A. What is the benefit of having Part A when I have excellent insurance through my employer?grabiner wrote: ↑Sun Jan 28, 2024 12:09 pmWhile this is right, it's not likely to be desirable. When you turn 65, you become eligible for Medicare Part A with no cost, and the benefit of having Part A is likely more valuable than the tax savings on contributing to an HSA.jj45 wrote: ↑Fri Jan 26, 2024 3:12 pm
My understanding is that you can contribute to an HSA past age 65 if you have an HDHP through your employer and you don't sign up for Medicare. My understanding is also that if you have insurance through your employer you can delay signing up for Medicare with no penalty. Is that wrong?
Search found 164 matches
- Sat Feb 03, 2024 8:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: HSA help needed
- Replies: 16
- Views: 2325
Re: HSA help needed
- Sat Feb 03, 2024 8:30 pm
- Forum: Personal Consumer Issues
- Topic: Neighbor irrigation flooding into my property
- Replies: 37
- Views: 3570
Re: Neighbor irrigation flooding into my property
Water law varies enormously from location to location. We live along an irrigation ditch. Our property comes with shares of the ditch company and the shares give us ownership and water rights. Our ditch company hires out someone to operate the gates and perhaps he person the OP talked to is just paid to operate the gates. Our ditch company is responsible for maintenance. Each shareholder of the ditch company pays a yearly assessment.DoubleComma wrote: ↑Sat Feb 03, 2024 6:21 pm I would be shocked if what the “water provider” told you was accurate.
My assumption is the water provider is actually a local irrigation district or water district.
I would try to find out who actually owns the ditch and contact them.
- Fri Jan 26, 2024 3:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: HSA help needed
- Replies: 16
- Views: 2325
Re: HSA help needed
My understanding is that you can contribute to an HSA past age 65 if you have an HDHP through your employer and you don't sign up for Medicare. My understanding is also that if you have insurance through your employer you can delay signing up for Medicare with no penalty. Is that wrong?
- Mon Jan 22, 2024 3:25 pm
- Forum: Investing - Theory, News & General
- Topic: Schwab is struggling
- Replies: 48
- Views: 11799
Re: Schwab is struggling
I don’t understand how banks or brokerages can survive being so uncompetitive, if they need any money from deposits. They rely on people being too lazy to move their funds, and they’re finding people are not too lazy. Why leave money sitting for free when you could earn 5%. That’s a big enough difference to move. No company is competitive in all areas. They have to make money somehow. If you know your priorities, you can use a company that's competitive in those areas. While I would not complain if Schwab implemented a MM sweep fund, the benefits of Schwab having no account minimums, no foreign transaction fees, reimbursed ATM fees worldwide, and good customer service that was crucial for two big issues I've experienced are enough of a tra...
- Sun Jan 14, 2024 9:49 am
- Forum: Personal Finance (Not Investing)
- Topic: Question regarding backing out of offer on a house
- Replies: 15
- Views: 1454
Re: Question regarding backing out of offer on a house
I found a home I would like to purchase based on photos and videos only (I'm in TX and home is in CO). The realtor told me I can make an offer and then after flying there and seeing it in person, if I don't like it I can back out. I asked for more details and don;t fully understand them- but I think this would be based on "my inspection"... if I liked it we would go ahead with a real inspection (licensed etc.) Can anything go wrong here? I worry about scenarios where I don't want to continue to purchase but I'm stuck or would lose my earnest deposit of $8K. Thanks. The Colorado Real Estate Commission has standard contracts. You don't have to use them but I get the impression most residential real estate buyers do. https://dre.col...
- Mon Sep 18, 2023 10:09 am
- Forum: Personal Finance (Not Investing)
- Topic: changing G plan to N supplement plan?
- Replies: 64
- Views: 6652
- Mon Aug 28, 2023 1:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1st child off to College and Taxes
- Replies: 19
- Views: 2044
Re: 1st child off to College and Taxes
If your state has a tax benefit for contributing to a 529 find out whether they have any requirements for how long the funds need to remain in the 529. If you live in a state where you can withdraw funds for qualified expenses immediately after depositing them, you can benefit from the tax break even if you are cash flowing the cost. You can try to plan around longer holding times by timing your withdrawals.
- Tue Aug 01, 2023 9:19 am
- Forum: Personal Finance (Not Investing)
- Topic: Advice on student loan repayment options
- Replies: 93
- Views: 8446
Re: Advice on student loan repayment options
The new SAVE plan covers unpaid interest if your monthly payment doesn't cover the full interest charge.coffecakecrocodile wrote: ↑Tue Jul 04, 2023 10:34 pm It's been my experience that any unpaid interest is added to the principle and then interest is charged on this accumulated/unpaid interest (capitalizing), which is one of the reasons why paying off student loans is so hard because this increases the balance and you end up paying more than initially borrowed.
https://studentaid.gov/announcements-events/save-planThe plan eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made under the SAVE Plan.
If you make your monthly payment, your loan balance won’t grow due to unpaid interest.
- Tue May 23, 2023 10:08 am
- Forum: Personal Consumer Issues
- Topic: Bicycle Recommendations?
- Replies: 70
- Views: 4397
Re: Bicycle Recommendations?
The major brands, Trek, Specialized, Giant, all pretty much offer the same line-up of bikes. A bit of a tweak here or there that aficionados will say are critically important, but are for your purposes irrelevant. Overall, you get what you pay for. There are price points every hundred dollars and each step gets betters stuff. Some brands will give you better brakes at one price point, another will give you better shifters. Go to a good local bike shop, ride some bikes, and select from whatever brands they carry. There are two big decisions: drop bars or straight bars: I suspect you'll find straight bars more comfortable suspension: none (rigid), front only (hardtail), front & rear (full): Front suspension is nice on an aging body and he...
- Tue May 23, 2023 9:20 am
- Forum: Investing - Theory, News & General
- Topic: what does TIAA real estate change say about the market or TIAA
- Replies: 8
- Views: 1519
what does TIAA real estate change say about the market or TIAA
I received a letter from TIAA about changes to their real estate account. They say transfers into the TIAA Real Estate Account will be prohibited if the total Real Estate Account balance across all of your TIAA contracts would exceed $150,000 as a result of the transfer. The dollar limit does not apply to contributions There are many more details in the letter but these seem to be the main points. The $150,000 cap seems pretty low. I don't make transfers into TIAA Real Estate so I have no immediate impact but I can't help wondering whether this says something about the overall risk profile of TIAA and the their assessment of the risk of the broad real estate market. Are they concerned about some sort of Silicon Valley Bank type situation in...
- Tue May 02, 2023 9:30 am
- Forum: Personal Finance (Not Investing)
- Topic: Graduate student preparations
- Replies: 15
- Views: 1609
Re: Graduate student preparations
If she is at a public university and the funding is covering tuition, they will probably require her to obtain residency so they only have to cover in-state tuition. I've literally never heard of this happening before. (In STEM) usually what happens is that the university will charge the PI tuition for their graduate students at a pre-determined rate (full rate if the university sucks, usually it's something closer to half, and then sometimes waived after x years), and the rate is fixed regardless of in-state or out-of-state status. This is all written into their PI's grant, with the cost of each graduate student spelled out in the costs section of their application. Back in the day, the rate was not fixed. When I was a grad student in STE...
- Mon May 01, 2023 9:28 am
- Forum: Personal Finance (Not Investing)
- Topic: Graduate student preparations
- Replies: 15
- Views: 1609
Re: Graduate student preparations
If she is at a public university and the funding is covering tuition, they will probably require her to obtain residency so they only have to cover in-state tuition.
- Sun Apr 23, 2023 3:39 pm
- Forum: Personal Consumer Issues
- Topic: Do I need an Apple desktop?
- Replies: 55
- Views: 5752
Re: Do I need an Apple desktop?
My preference is for a desktop just for the size of the monitor. What other alternatives would you suggest? The low end Mac Mini at $499 will do everything you want. The Apple keyboards are nice but not necessary, other brands are good too. Add a decent 3rd party monitor and it's a fraction of the price of the iMac. It does take up more desk space though. If you have a hankering for a laptop for other uses, go with the MacBook Air and an external monitor and dock. More $$ but you get the benefits of both a laptop and desktop. Frankly, I don't see the attraction of all-in-one's but they are certainly popular. Monitors last a long time and I cringe when people replace iMacs because they need more memory or newer CPUs and throw away a perfect...
- Mon Mar 27, 2023 7:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: How to estimate taxes when you expect to earn considerably less the following year?
- Replies: 7
- Views: 699
Re: How to estimate taxes when you expect to earn considerably less the following year?
I am in a similar situation and was wondering about doing the following. My income drop won't change my tax bracket, I stay in the 22% bracket. Say my income drops by $50K. Can I subtract 22% x $50K from my 2022 tax owed to estimate my 2023 tax owed? Then can I use the 90% safe harbor on that number? I would check in more detail in late fall when my income will be more certain and fine tune things.
- Fri Mar 17, 2023 10:02 am
- Forum: Personal Consumer Issues
- Topic: Is it worth it to use a realtor?
- Replies: 112
- Views: 9228
Re: Is it worth it to use a realtor?
The most important thing I look for in a realtor is their negotiation skills. Everyone thinks they are a good negotiator, just like everyone thinks they are a good driver, but half of us are below average. A skilled realtor has deep experience negotiating real estate deals, has inside info about the realtor on the other side of the table, and knows the state of the market. Using realtors has earned me much more than they cost.
- Sat Mar 11, 2023 5:29 pm
- Forum: Personal Consumer Issues
- Topic: Going to Venice: What To Do or See?
- Replies: 66
- Views: 5397
Re: Going to Venice: What To Do or See?
My kids were about that age and they would have been happy spending the whole time playing with the pigeons in St. Mark's Square.LateStarter1975 wrote: ↑Sat Mar 04, 2023 5:52 pm DW and I with our two kids (aged 4 and 6) will be going to Venice, Italy next month for a wedding.
- Mon Jan 30, 2023 12:44 pm
- Forum: Personal Consumer Issues
- Topic: Can anyone recommend a quality desk [or a place to shop for one]?
- Replies: 33
- Views: 2460
Re: Can anyone recommend a quality desk [or a place to shop for one]?
I'm scouring Amazon, Costco, Office Depot, etc...finding prices from $350 ish to $2k ish depending where I'm shopping and the styles/designs/etc. Very few seem to actually be made of wood...but rather heavy flimsy particle board. Does anyone have a recommendation? Either an actual desk to consider OR a place to shop would be nice. Have no idea the best place to shop. The more solid wood, the higher the price. You can hack Ikea stuff to make a custom desk but you won't get solid wood. Some stores with furniture a step above Ikea are West Elm, Room & Board, Pottery Barn, Crate and Barrel, Restoration Hardware. I think most of these use at least some solid wood. Do you have any local used furniture stores? Sometimes you can find old solid...
- Mon Jan 16, 2023 9:02 pm
- Forum: Personal Consumer Issues
- Topic: Colorado National Park Vacation in Summer
- Replies: 56
- Views: 5883
Re: Colorado National Park Vacation in Summer
If you like fossils and dinosaurs, two great places along the way from Estes Park to Great Sand Dunes are Florissant Fossil Beds National Monument https://www.nps.gov/flfo/index.htm and Dinosaur Ridge in Morrison https://dinoridge.org/. If you like hot springs, you can spend a few hours or the night at Cottonwood Hot Springs https://cottonwood-hot-springs.com/colorado/
- Mon Jan 09, 2023 12:59 am
- Forum: Personal Consumer Issues
- Topic: MTB [mountain bike] choice help
- Replies: 36
- Views: 2398
Re: MTB [mountain bike] choice help
I bought a hardtail last year. You might also look into gravel bikes. They evolved from road bikes but now are very similar to hardtails. I grew up in IL and I would definitely get a hardtail or gravel bike if I still lived there. I barely ride my full suspension anymore and I live in the moutain west. The hardtail has been a blast. Overall, you get what you pay for. Forks and brakes are made in many incremental steps in cost and quality. Tubeless tires are the rage and at least get tubeless-ready so you can convert later. Tubeless lets you run at much lower air pressure without getting flats, giving you more traction and some shock absorbing. If you change your seatpost height as terrain changes, a dropper post is nice. I am really liking ...
- Sun Nov 27, 2022 10:43 am
- Forum: Personal Consumer Issues
- Topic: Apple Watch for “health and wellness”
- Replies: 37
- Views: 3511
Re: Apple Watch for “health and wellness”
I have a Series 4 Apple watch that is going on 4 years old. It runs the latest OS. I wear it daily and it still works great. I've not seen any lack of backward compatibility and I have no plans to upgrade.birb wrote: ↑Sat Nov 26, 2022 6:49 pm I will say that every single person I know who owns an apple watch runs right out the moment new ones are released, because the new one includes some fancy new feature that the old one won't support. It's kind of apple's business model, lack of backward compatibility.
- Wed Oct 19, 2022 8:44 am
- Forum: Personal Finance (Not Investing)
- Topic: Student loan debt relief application now available
- Replies: 4
- Views: 925
Re: Student loan debt relief application now available
Whatever you think about the pros and cons of the program, the application is stunning in its simplicity. Name, SSN, birthday, email, phone, and done. You could do it on an index card. The feds know your loan details, they know your tax returns, they do the math. Is there any government program this simple? Is there any private corporate application this simple? Imagine if every government interaction was like this.
- Sat Aug 20, 2022 6:10 pm
- Forum: Investing - Theory, News & General
- Topic: A better Monte Carlo mousetrap
- Replies: 22
- Views: 2482
Re: A better Monte Carlo mousetrap
The principles I want to achieve in this design (no particular order): Returns are not independent Returns are not normally distributed Excluding the distant past unacceptably shrinks the available historical data, but including it exposes the model to regimes (Bretton Woods, pre-SEC, etc.) that may be totally inapplicable to today's investor.* Volatility is mean reverting but not constant The advantage of independent normal variables is that it has the fewest unknown parameters to fit. Everything you do to add more complex/realistic features means more unknown/uncertain parameters. There's only one normal distribution and it has two parameters. There is an infinity of non-normal distributions and the number of parameters multiplies quickl...
- Tue Aug 16, 2022 1:19 pm
- Forum: Personal Investments
- Topic: Can’t decide between 401K types (Roth vs Trad) for Tech Worker
- Replies: 74
- Views: 6241
Re: Can’t decide between 401K types (Roth vs Trad) for Tech Worker
None of the details matter since they are unpredictable and uncertain. The big picture should guide your decision. And the big picture is that if, decades from now when you are withdrawing, you are wealthy, then Roth will have been a better choice but it won't matter since you are wealthy. If, decades from now when you are withdrawing, you are trying to live on a lower income, then Traditional gives you more after tax income. Traditional wins when it matters and Roth wins when it doesn't. Go with Traditional.
- Sat Aug 13, 2022 3:48 pm
- Forum: Personal Consumer Issues
- Topic: iPad Mini for Travel (in lieu of Laptop)?
- Replies: 27
- Views: 2765
Re: iPad Mini for Travel (in lieu of Laptop)?
I just took my first trip where I left my laptop at home. I took a regular-sized iPad and a keyboard case. The keyboard was the game changer for me. I don't mind the touchscreen keys for short typing but it quickly gets tiresome. With the keyboard, I could write email, take notes, and do everything I needed. I like the larger screen of the regular iPad. The Apple Store has keyboard cases you can try out while you try out the different iPad sizes. There seem to be keyboard cases for all the iPads. Since you're already in the Apple ecosystem, an iPad will integrate with your iPhone and Air pretty seamlessly. Like you, I used to spend my days in the guts of software, now I'm happy to let Apple handle it all. Or, you could just go all the way a...
- Tue Aug 09, 2022 9:21 am
- Forum: Personal Consumer Issues
- Topic: Gmail out of storage but have Apple cloud storage
- Replies: 7
- Views: 1279
Re: Gmail out of storage but have Apple cloud storage
Do I just log into my Apple account on the Mac first (log off spouse Apple account) then log into my google account then “copy” and paste? Does this sound like the correct order and steps? Set up a your own login account on the Mac in System Preferences/Users & Groups, unlock the padlock, and use the "+". The first time you log in it will ask for your Apple ID and connect everything. Then you can copy things to your iCloud folder. Since you don't have a Mac, I am guessing you are using Photos on iOS devices connected to iCloud. Rather than store your old photos and videos in a folder, I would use Photos and iCloud. That way all your images are in the same app. If you don't use Photos then ignore the rest of this. On the Mac (...
- Mon Aug 08, 2022 11:26 am
- Forum: Personal Consumer Issues
- Topic: Megacorp's fitness tracking benefit more hassle than it is worth?
- Replies: 17
- Views: 1434
Re: Megacorp's fitness tracking benefit more hassle than it is worth?
Some apps have settings you need to turn on to get them to share data. You may have to do it in both Google Fit and and megacorp app.knightrider wrote: ↑Mon Aug 08, 2022 11:16 am Many thanks! Seems Google Fit should fix a lot of my complaints. I installed it and connected it to my megacorps fitness rewards app. But it seems I still have to manually press a button to "sync stats". Shouldn't this be automatic as both apps are on the same phone?
- Tue Jun 28, 2022 8:22 pm
- Forum: Personal Investments
- Topic: Looking for input on my sister's financial situation
- Replies: 10
- Views: 1539
Re: Looking for input on my sister's financial situation
As much as I subscribe to Bogelehead investing, in the range of possible paths your sister's is pretty high on the list. On a scale from Boglehead (10) to criminal (0), I would give her a 9 or 9.5. Without the dividend tilt it might be the 2nd best strategy to Boglehead, with the tilt it's a close 3rd. She is in no way at the opposite side of the spectrum, that honor goes to "all in on bitcoin." The overlap between your sister's strategy, 20-30 large historically strong US companies, and the SP500 or Total Stock Market must be large. Anyone have a guess? Her advisor is a closet indexer. With the potential of damaging relations, I would not intervene and I would sleep well knowing she has a good plan. Her saving rate will be a much...
- Thu Jun 23, 2022 10:30 am
- Forum: Personal Investments
- Topic: Help please. Inherited IRA from parent is in the trust. Multiple beneficiaries
- Replies: 20
- Views: 2935
Re: Help please. Inherited IRA from parent is in the trust. Multiple beneficiaries
The lawyer who set up the estate did a terrible job. He was an old family friend and had died several years previous. This was one of many badly designed aspects of the estate and trusts.
- Thu Jun 23, 2022 8:24 am
- Forum: Personal Investments
- Topic: Help please. Inherited IRA from parent is in the trust. Multiple beneficiaries
- Replies: 20
- Views: 2935
Re: Help please. Inherited IRA from parent is in the trust. Multiple beneficiaries
When a parent died I became trustee of their trust that had an IRA. The trust was at Schwab and the trust documents said to split the IRA among the heirs and dissolve the trust. Schwab said they couldn’t do that. The lawyer for the estate said some brokerages are difficult and the easiest thing to do was to transfer the trust to another brokerage and split it there. They recommended Fidelity and it was a breeeze. As trustee I had the ability to make transactions and to switch brokerages. I sold all assets in the trust IRA at Schwab and kept the funds in the trust IRA. I then transferred the trust IRA, now containing only cash, to Fidelity. I showed Fidelity the trust documents and had Fidelity create new Inherited IRAs for the heirs with ca...
- Wed Mar 09, 2022 11:50 am
- Forum: Personal Consumer Issues
- Topic: Flight hack: 2 one way flights on same day?
- Replies: 28
- Views: 4339
Re: Flight hack: 2 one way flights on same day?
I saved a few bucks by buying two separate tickets, one roundtrip from the US to Frankfurt on United, and the second roundtrip from Frankfurt to Rome on Lufthansa. On the way back a huge snowstorm hit Europe, my flight from Rome to Frankfurt was delayed by five hours, and I missed the flight to the US. Frankfurt airport was a mess, no flights were flying by the time I got there and there were massive lines to talk to agents. Since my flight had left before the airport shutdown, I was counted a no-show. I ended up stuck in Frankfurt for 3 days, mostly spent waiting in line. Wait three hours in line to talk to a United agent, they say it's Lufthansa's responsibility, wait in line four hours at Lufthansa, they suggest going to a Lufthansa desk...
- Fri Mar 04, 2022 11:59 am
- Forum: Personal Finance (Not Investing)
- Topic: Medicare Secondary Payer
- Replies: 4
- Views: 498
Re: Medicare Secondary Payer
Thanks for the link. Very helpful.runninginvestor wrote: ↑Fri Mar 04, 2022 10:44 am <<Does anyone have any good links that explain how all this works? >>
The Medicare Who Pays first is the go to resource that I provide ppl. Linked above.
This is also a good summary: https://www.cms.gov/Medicare/Coordinati ... -Recovery-
- Fri Mar 04, 2022 11:58 am
- Forum: Personal Finance (Not Investing)
- Topic: Medicare Secondary Payer
- Replies: 4
- Views: 498
Re: Medicare Secondary Payer
Remember that Part A only covers: Inpatient care in a hospital Skilled nursing facility care Nursing home care (inpatient care in a skilled nursing facility that’s not custodial or long-term care) Hospice care Home health care ...and most of those providers know how to bill your group insurance first and medicare second, assuming you provided both insurances at admittance. But here's the guide from medicare that explains it all...in infinite detail: https://www.medicare.gov/sites/default/files/2021-10/02179-Medicare-and-other-health-benefits-your-guide-to-who-pays-first.pdf Thanks! I hadn't looked into what A vs B cover and didn't realize this is where the line was. For our situation, since my spouse only has Part A, regular doctor visits ...
- Fri Mar 04, 2022 9:27 am
- Forum: Personal Finance (Not Investing)
- Topic: Medicare Secondary Payer
- Replies: 4
- Views: 498
Medicare Secondary Payer
I am still working and my spouse is covered by my employer health insurance. They just turned 65 and signed up for Medicate Part A. My understanding is that my insurance is their primary payer and Medicare is secondary. Does anyone have any good links that explain how all this works? How do we submit claims to Medicare after my insurance decides to not cover the whole amount? If my primary insurance counts some of the cost as going towards our deductible, is that cost not eligible for Medicare? We see a number of out-of-network providers where we have to submit claims ourselves, which maybe complicates things. Thanks for your help.
- Sat Jan 29, 2022 7:20 pm
- Forum: Personal Finance (Not Investing)
- Topic: College Financial Planner?
- Replies: 49
- Views: 4128
Re: College Financial Planner?
There is a narrow window of income, wealth, student ability, and schools of choice where you can manage your finances to improve your financial aid. Too poor or too rich and there's not much you can do. Even if your finances are just right, only a few schools are rich enough to give financial aid in grants instead of loans. Typically these are extremely selective private schools. If you fit that window, with some planning you can make a difference in your financial aid. The specifics of what to do vary from school to school and evolve over time. If you are in that window, it might make sense to pay someone who has expertise in the financial aid landscape to help you. You could do it yourself, but it's not wrong to pay someone. The hard part...
- Tue Jan 18, 2022 9:30 am
- Forum: Personal Consumer Issues
- Topic: DENVER - What are the good neighborhoods to look into for young families?
- Replies: 40
- Views: 4112
Re: DENVER - What are the good neighborhoods to look into for young families?
One thing to keep in mind is that Colorado has open enrollment for schools. Like most places, you have a neighborhood school where you are guaranteed enrollment. You can also enroll your kids in other schools as well. Each school district has their own policies, some schools are oversubscribed while others have room, and the rules and supply/demand curves will probably be different by the time your future children enroll. The upside of this is that schools actively compete for students which raises the quality of education. It also means you can find a school that fits your kid, maybe with an art or science focus, or one with more individualized curricula, or better at sports. You don't have to move when your kid is in 3rd grade and you rea...
- Tue Dec 14, 2021 12:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS RMD table updates
- Replies: 24
- Views: 3912
Re: IRS RMD table updates
already taking RMDs from a pre-SECURE Act Inherited (non spousal) IRA I am in the same situation and wondered about whether I can recalculate my RMD or do I keep just subtracting one from the original divisor. I couldn't find much on google apart from this Lord Abbot site, whoever that is https://www.lordabbett.com/en/perspectives/retirementperspectives/more-rmd-changes-come-2022.html The IRS included a transition rule for non-spouse beneficiaries who inherited an IRA prior to January 1, 2022 after RMDs have begun, and who are currently using the Single Life Table. The transition provides a “reset” for the life expectancies using the new tables. Therefore, table changes for 2022 will be more complicated. There will be a one-time reset (“re...
- Fri Dec 03, 2021 4:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: At what net worth would you to be comfortable purchasing $3MM house? (given certain assumptions)
- Replies: 230
- Views: 20579
Re: At what net worth would you to be comfortable purchasing $3MM house? (given certain assumptions)
The average floor area per person in the US is about 650 sq. ft. per person. Australians, at 800 sq. ft., have the most, the US is second, while Indians and Cambodians have the least, 80-100 sq. ft. Typical New York City residents have 531 sq. ft. while city code only requires 80. Thoreau’s cabin on Walden Pond was 150 sq ft but he only lived there two years and his mom brought him sandwiches. Tolstoy asked How much land does a man need? and answered Six feet from his head to his heels was all he needed.
- Tue Oct 26, 2021 10:10 am
- Forum: Investing - Theory, News & General
- Topic: The Worst Years To Retire: The Surprise In The Data
- Replies: 67
- Views: 12087
Re: The Worst Years To Retire: The Surprise In The Data
Is it possible to create synthetic TIPS, based on today's rules, and backtest how a portfolio with TIPS would have fared?willthrill81 wrote: ↑Mon Oct 25, 2021 6:24 pmIt seems so. Neither TIPS nor I bonds were around back then, but it's hard to imagine that they wouldn't have been very beneficial, especially when unexpected inflation was roaring in the late 1970s. But for reasons that I very much disagree with, many here still advocate TBM as investors' exclusive bond holding.
- Tue Oct 12, 2021 6:00 pm
- Forum: Investing - Theory, News & General
- Topic: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest
- Replies: 44
- Views: 6632
Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest
What did you learn from your guests that surprised you at the time but you now think is true?
- Mon Sep 13, 2021 2:31 pm
- Forum: Investing - Theory, News & General
- Topic: Inverse to the 4% Rule
- Replies: 57
- Views: 9415
Re: Inverse to the 4% Rule
It is indeed true that market volatility, the reason for sequence of return risk, affects you during the accumulation phase. Consider two situations:
1. market returns 20% in year 1 and 0% in year two. Market CAGR is 9.5%. You invest $1000 at the beginning of each year. At the end you have $2200.
2. market returns 0% in year one and 20% in year two. Same CAGR. But now at the end you have $2400
Same CAGR but more money in case 2.
Basically, for the same CAGR, you do better if there are below average returns when your portfolio is small and above average returns when your portfolio is big.
1. market returns 20% in year 1 and 0% in year two. Market CAGR is 9.5%. You invest $1000 at the beginning of each year. At the end you have $2200.
2. market returns 0% in year one and 20% in year two. Same CAGR. But now at the end you have $2400
Same CAGR but more money in case 2.
Basically, for the same CAGR, you do better if there are below average returns when your portfolio is small and above average returns when your portfolio is big.
- Mon Sep 13, 2021 2:05 pm
- Forum: Personal Consumer Issues
- Topic: Supplementary Math/Logic/Puzzle Programs for 8yo?
- Replies: 23
- Views: 1954
Re: Supplementary Math/Logic/Puzzle Programs for 8yo?
Another vote for zoombinis
- Sat Sep 11, 2021 5:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Teaching kids frugality
- Replies: 4
- Views: 1193
Teaching kids frugality
There seem to be a number of Bogleheads who are wealthy and frugal and want to keep their kids in the dark about how wealthy they really are. This seems to come up most often regarding FAFSA. I don’t understand this attitude. Part of parenting is teaching kids financial management. My parents discussed their finances around the kitchen table. They carefully chose what they spent on, including things that gave them pleasure. My dad was a car guy and regularly bought expensive new cars. That cherry red 1967 Mustang convertible was really something, I wish he had kept it, but two years later he traded it in and there was a newer car in the driveway. My mom just rolled her eyes. We could hang out and listen and ask questions as we pleased. Most...
- Thu Sep 09, 2021 11:08 am
- Forum: Personal Consumer Issues
- Topic: Home sale: is it good to have a dated, but cheaper selling house?
- Replies: 34
- Views: 4000
Re: Home sale: is it good to have a dated, but cheaper selling house?
There is not really any renovation you can do that will get you all your money back. I see this said a lot and in many/most cases it is probably true. On the other hand, flippers buy houses, remodel, and turn a profit. So there are situations where you can do major renovations and come out ahead. How do they do it? What lessons can I learn from flippers when I think about renovating my own home before selling? Some things come to mind. Flippers buy underpriced homes and I certainly won't underprice mine :happy so nothing to be gained there. Or flippers do the work themselves and while they may not profit after including all the labor costs, some of the labor costs are paid to themselves. The mental arithmetic is they don't make money on th...
- Thu Aug 19, 2021 8:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: Parents dumping one bad advisor for worse but thinking it's better
- Replies: 28
- Views: 3482
Re: Parents dumping one bad advisor for worse but thinking it's better
People here like to dump on him but I think this is precisely the scenario where Ric Edelman’s company may be a good fit. It won’t be the cheapest but they aren’t crooks. They are fiduciaries and will consider taxes and estate planning. His national reputation and awards and radio show may be enchanting in its own way. Your parents’ financial situation is good, they can afford Edelman’s fees, and avoiding the worst of the sharks is a huge win.
- Mon Aug 02, 2021 9:27 am
- Forum: Personal Finance (Not Investing)
- Topic: Share net worth details with kids when filing FAFSA or CSS?
- Replies: 8
- Views: 1287
Re: Share net worth details with kids when filing FAFSA or CSS?
Financial education is a parent’s responsibility and I am firmly in the camp that the best way to do this is to be completely open about your finances with your kids from the get go. By the time you are filling out FAFSA it is too late. My parents talked about their finances and made all decisions at the kitchen table for all to hear. We were never asked or required to listen, they never “taught” us anything. But little pitchers and all. They talked about whether to buy a business, what to invest in, how much to spend on vacation, should they buy a new dishwasher or get it repaired, how to help their parents financially, whether my Mom should get a new job, how my Dad should handle business issues. The whole shebang. I don’t understand how ...
- Sat Jul 31, 2021 6:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Homes with elevated radon
- Replies: 26
- Views: 3199
Re: Homes with elevated radon
Our house took three tries by two companies to get the radon to safe levels. Seemed to be at the more difficult end of the spectrum. Still cost less than $3k. I would not let radon prevent me from buying a house I want. Structural issues, plumbing, and electrical are all potentially much more expensive and bigger risks.
- Thu Jul 29, 2021 2:47 pm
- Forum: Personal Consumer Issues
- Topic: Any literature on the financial benefits of staying fit/healthy?
- Replies: 47
- Views: 3985
Re: Any literature on the financial benefits of staying fit/healthy?
Here are some numbers. Obviously hard to measure well. The distribution probably has a long tail of very large expenses. https://www.hsph.harvard.edu/obesity-prevention-source/obesity-consequences/economic/ one study they cite found per capita medical spending for obese individuals was an additional $1,429 (42% higher) compared to individuals of normal weight. Another study they cite says the cost is $2,741 higher (150% increase). https://www.usnews.com/news/health-news/articles/2021-03-24/obesity-costs-the-average-us-adult-almost-1-900-per-year-study health care costs for obese adults were nearly $1,900 higher each year, compared to their normal-weight peers. https://www.heraldopenaccess.us/openaccess/the-impact-of-obesity-on-united-states...
- Thu Jul 22, 2021 9:25 am
- Forum: Personal Consumer Issues
- Topic: Do they make hose bibs that don't leak/spray water?
- Replies: 19
- Views: 4260
Re: Do they make hose bibs that don't leak/spray water?
Put a decorative potted plant under the bib to catch the drips?
- Thu Jul 08, 2021 9:15 am
- Forum: Personal Investments
- Topic: 529 Plan vs. Roth IRA for college
- Replies: 42
- Views: 4644
Re: 529 Plan vs. Roth IRA for college
Income and assets are treated differently for college financial aid. Income is assessed much more heavily. Assets are assessed at 5.64% by FAFSA. The rate income is assessed depends on how much you make but can be as high as 50%. 529's count as assets but qualified withdrawals do not count as income. Roths do not count as assets but withdrawals, even tax free ones, count as income. Income is looked at for the prior-prior year on FAFSA. So if you take Roth withdrawals to pay for college in year X, then it will impact your FAFSA EFC for the school year starting Fall X+2. Private colleges can use CSS Profile which asks about current and projected future income and can use the info however they like. So, using a Roth to pay for college to decre...
- Fri Jun 25, 2021 11:09 am
- Forum: Personal Finance (Not Investing)
- Topic: FAFSA EFC number shock! [Expected Family Contribution] with updates
- Replies: 223
- Views: 19218
Re: Update: Reduce income to lower EFC and college costs. The numbers are all in.
Why was it recommended that she work for 2 years as a research grunt as you put it before applying to grad school? If she knows she wants to get a PhD, then go ahead and apply right out of college and get on with it. I'd only recommend the 2 years if she wasn't sure if she liked research and wanted to go down that path. Also, pursuing a PhD in Cell/Mol Bio means she'll be paid a livable stipend in addition to school costs being covered, so you shouldn't need to help her out financially. I agree with the above statement. The advice to work for 2 years as a research grunt is bad advice I think if one already has the passion to get a PhD in Molecular Biology / Biochemistry or related field. In the physical sciences one reason to take some tim...