Search found 663 matches

by megabad
Wed Nov 14, 2018 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Wait, do I need a prenup?
Replies: 63
Views: 6615

Re: Wait, do I need a prenup?

I believe the value of a prenup in your case would mainly be in the simple intent. You don’t have a family business or complicated financial situation. However, the simple act of spouse signing prenup may give you assurance and trust to enter marriage. If you feel you need these things, than go for ...
by megabad
Wed Nov 14, 2018 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Help or Advice on Land Purchase
Replies: 8
Views: 721

Re: Help or Advice on Land Purchase

Of the options you listed I would likely pay cash only because mobile home/land interest rates will be measurably higher than traditional mortgage. However, for a multitude of reasons, I would personally hesitate to pay significantly less than FMV for the property. Why not pay a fair price? You want...
by megabad
Wed Nov 14, 2018 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Home addition vs. Buying New
Replies: 39
Views: 2103

Re: Home addition vs. Buying New

What are you asking when you ask “is it really worth it?”. If you are asking financially than I would say it is almost certainly a foolish financial decision to do that size of an addition. However, it seems like this may be a lifestyle decision. If you love the place and never want to move and you ...
by megabad
Tue Nov 13, 2018 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Enjoying Your Work
Replies: 27
Views: 3325

Re: Enjoying Your Work

Don’t work in something you hate, but also don’t get caught in the trap of seeking “fulfillment” at work. It’s a suckers game, and in the end work will always be work and it isn’t what will make you happy. Find external hobbies to achieve “fulfillment”. Work is what ensures you can afford them. Lar...
by megabad
Wed Nov 07, 2018 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Home Purchase Questions
Replies: 7
Views: 973

Re: Home Purchase Questions

Personally, I would go 30 yr 4.8% APR with 20% down or I would just go all cash. Either you feel like the interest rate is a good deal or you don’t. The spread between 15 and 30yr is not high enough for me to go to 15 right now (it was a while back). I would just keep near term money in Prime MM. in...
by megabad
Wed Nov 07, 2018 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: Payoff Mortgage
Replies: 12
Views: 1503

Re: Payoff Mortgage

What is the interest rate on the mortgage in question?
by megabad
Wed Nov 07, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Take SS or do Roth conversion
Replies: 7
Views: 970

Re: Take SS or do Roth conversion

Is your spousal benefit larger than your benefit? Is spouse in good health/have good genes? Will your tax bracket be a little higher or a lot higher?
by megabad
Wed Nov 07, 2018 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2709

Re: Tell me about establishing trusts for our minor children

Putting their inheritance into trust doesn’t have anything to do with not wanting to let my kids grow up. I’m afraid we will have to agree to disagree here (respect you a lot and have followed your posts for years). While I agree that sometimes assets needs protection, I am of the opinion that my c...
by megabad
Thu Nov 01, 2018 4:44 pm
Forum: Investing - Theory, News & General
Topic: Is market cap weighting a dumb idea?
Replies: 64
Views: 2998

Re: Is market cap weighting a dumb idea?

Apparently, it shows that market cap indexing is superior over individual stock investing since the top line is the historical example of market cap indexing. I blame it on being catfished by thread title. It shows that individual stock investing is very bad when that individual stock is the larges...
by megabad
Thu Nov 01, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk in this retirement draw down plan?
Replies: 21
Views: 2009

Re: Too much risk in this retirement draw down plan?

But what about next time? Is this concentrated sales strategy adding risk? And if so, how would you assess the risk? I don't understand how this necessarily adds risk? You don't talk about your asset allocation. The act or realizing a gain or loss doesn't necessarily imply more "risk" to me. If I s...
by megabad
Thu Nov 01, 2018 3:31 pm
Forum: Investing - Theory, News & General
Topic: Is market cap weighting a dumb idea?
Replies: 64
Views: 2998

Re: Is market cap weighting a dumb idea?

Even if perhaps not intelligent, the methodology seems clear to me and I don't see any sizes wrong. It is a top 1, not a top 10. The investment always has 100% in the single stock with the highest market cap, and changes to the new top stock whenever the top stock changes. In 1975, IBM was the high...
by megabad
Thu Nov 01, 2018 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1336

Re: CD vs. Deferred Fixed Annuity

Deferred Fixed Annuities seem complicated. To me, bonds appear simpler, but I'm having trouble figuring out how to compare risk/return. The numbers seem to imply I can get higher returns on lower risk with the annuities, but I'm skeptical. Would the 3% 3-year annuities vs. 3% treasury bonds vs 3% c...
by megabad
Thu Nov 01, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2709

Re: Tell me about establishing trusts for our minor children

It isn’t just a question of the kid’s maturity at 18 — a lawsuit, a divorce, or a disability can happen at any point in adulthood. Protecting the kid’s money against those possibilities is part of the reason for a trust. In my state, an inherited IRA would protect most of OP's assets against lawsui...
by megabad
Thu Nov 01, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Payroll experts: prorating salary calculation gone wrong?
Replies: 8
Views: 846

Re: Payroll experts: prorating salary calculation gone wrong?

An employer needs to pro rate salary for an employee mid pay period. The employee may be starting employment, returning from a leave of absence, or terminating employment. Let's say the employee has an annual salary of $50,000 and is exempt. The most widely adopted method used by payroll software a...
by megabad
Thu Nov 01, 2018 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: 45% increase in marketplace insurance
Replies: 72
Views: 4147

Re: 45% increase in marketplace insurance

So much for all the advance "news" about at 6% increase. Its hard to make sense of this financially. At over 2K/month, it doesn't pay for anything except catastrophic events. Of course if you did end up needing something, the medical system would happily charge you 2-3X more than they charge the in...
by megabad
Thu Nov 01, 2018 1:27 pm
Forum: Investing - Theory, News & General
Topic: Is market cap weighting a dumb idea?
Replies: 64
Views: 2998

Re: Is market cap weighting a dumb idea?

Just saw a Tweet storm by Meb Faber. He argues that market cap weighting is a dumb idea, by showing that the largest stocks in the S&P500 have massively underperformed the index: https://pbs.twimg.com/media/Dq3AGtIU4AAbWXK.jpg:large Yet in market cap weighting those stocks are your largest holdings...
by megabad
Thu Nov 01, 2018 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: NY 457/Settlement Advice
Replies: 13
Views: 1353

Re: NY 457/Settlement Advice

Thanks for the reply Duckie I really appreciate it! Seems like a no brainer to move my money from American Funds to a cheaper Index fund like you mentioned. Are there fees or penalties for doing so? Likely yes. But remember, you are already paying sales loads, higher expense ratios and an account f...
by megabad
Thu Nov 01, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: controlling retirement income for ACA threshold-457
Replies: 7
Views: 801

Re: controlling retirement income for ACA threshold-457

I did see some other posts on the ACA cliff proposing the idea of bunching income into alternate years to qualify for subsidy in alternate years. You could do this. However, you will need to weigh the additional taxes paid against the subsidies. After running the numbers you may find that the savin...
by megabad
Thu Nov 01, 2018 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1336

Re: CD vs. Deferred Fixed Annuity

Thanks for your replies. From the calculators I was using, the tax deferral pushes the rate of return up above comparable CD's. With a AAA rated insurer and being within the limits of my State's insurance guaranty fund, it appears to be a fairly good deal. I assume you have a very high income and e...
by megabad
Thu Nov 01, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Is an MBA worth it these days?
Replies: 53
Views: 6319

Re: Is an MBA worth it these days?

I want to get into the financial side of construction for commercial real estate, where I would evaluate/run financials on new deals. This to me is key. In my experience in large companies, if you want to be a finance guy, you need a finance degree. Therefore, I interpret your question to be "Is an...
by megabad
Thu Nov 01, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Review of financial plan
Replies: 9
Views: 1346

Re: Review of financial plan

Looking to get some input on my family’s plan and critiques. Thanks in advance and appreciate everything this forum offers! SO#1 34 years old SO#2 34 years old One child who is 11 months old Salaries SO#1 400-550K, Varies somewhat considerably but always remains within this range. SO#2 35K We are b...
by megabad
Thu Nov 01, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Brokerage Firm Stock!
Replies: 4
Views: 438

Re: Brokerage Firm Stock!

I am a fan of Invesco (ticker: IVZ) and own a few of their funds. Yet I didn’t know they are a publicly traded company. I am now thinking of buying $500-$1000 worth of their stock. I know posts of people buying individual stocks via Bogleheads raises red flags. Yet what about buying stock of an inv...
by megabad
Thu Nov 01, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Limitations of RMD tool for reinvesting
Replies: 9
Views: 663

Re: Limitations of RMD tool for reinvesting

Yes, I found out that doing the RMD over the phone with Vanguard can avoid the limitations of their on-line RMD tool. Unfortunately next year if I choose to set up automation, there is no choice but to have the IRA distribution go to the non-retirement settlement fund (and manually moving that the ...
by megabad
Thu Nov 01, 2018 9:42 am
Forum: Personal Consumer Issues
Topic: Can Verizon waive inadvertent international data charges?
Replies: 10
Views: 855

Re: Can Verizon waive inadvertent international data charges?

We called verizon and they reduced the $150 fee to $5. Apparently iphones have some setting that tells it to automatically switch to the most powerful network. So that must have got triggered somehow. Awesome job on getting this reduced, I am apparently not as skilled as you at negotiating since I ...
by megabad
Thu Nov 01, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: HSA Rollover
Replies: 25
Views: 2321

Re: HSA Rollover

Please be aware that you can only do this type of rollover once per year. Consider a trustee to trustee transfer to avoid this limit. Actually, it is once per 12 month elapsed period, not based on a calendar year. Also, most HSA custodians charge $20 - $25 for a trustee -> trustee transfer. Rollove...
by megabad
Thu Nov 01, 2018 8:57 am
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting from ETF to Mutual Fund
Replies: 18
Views: 1261

Re: Tax Loss Harvesting from ETF to Mutual Fund

But the issue is more than the bid ask spread. The market could easily change 2-3% in a day, and if attempting to TLH with a large investment the time between selling an ETF and buying a mutual fund could result in a decent sized loss. For what it’s worth, Fidelity told me that funds from selling a...
by megabad
Wed Oct 31, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: How would you proceed?--car accident
Replies: 22
Views: 1788

Re: How would you proceed?--car accident

I was involved in a car accident on my way home from work yesterday. I was in right lane, a truck was in left lane, and the trailer ran into my left front end as they seemed to be trying to get into my lane so as not to miss a right turn. :oops: I have clear pictures that show the truck on my left ...
by megabad
Wed Oct 31, 2018 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating ROI for PhD
Replies: 86
Views: 4779

Re: Calculating ROI for PhD

For others seeking ROI calculation (Not the OP): If you are single and looking for an interesting future spouse with high earning potential, you are likely to meet another Ph.D. with these qualities in a Ph.D. program. Again, the ROI is incalculable. :) Note: if one pursues this strategy, then ther...
by megabad
Wed Oct 31, 2018 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: need help with bond fund choice
Replies: 8
Views: 881

Re: need help with bond fund choice

Hi all, Thanks to feedback on this forum, I am rebalancing all my accounts and placing all bonds in non-taxable accounts and stocks in taxable. The challenge is my work 401K has very limited choices. I was in Blackrock LifePath, which had a fairly low expense ratio, but I really need to max out the...
by megabad
Wed Oct 31, 2018 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2709

Re: Tell me about establishing trusts for our minor children

1. If not a trust then what? Just leave the money in care of the guardian if they are minors and to the children if over age 18? 2. I did not mention inheritances but those could be involved as well. Our 3 girls are the only 3rd generation heirs on both sides of the family. My wife's parents have a...
by megabad
Wed Oct 31, 2018 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: How am I doing thus far and what can I do to reduce taxes?
Replies: 35
Views: 3299

Re: How am I doing thus far and what can I do to reduce taxes?

Long time reader but first time poster. Thank you Jack for your service popularizing low cost index funds!! - 37 yo, single - about $225K income - save (with company match) anywhere between $100K to $120K most of it pretax (55K in 401k + 18500×2 in 403b/457, the rest in after tax) It is not clear t...
by megabad
Wed Oct 31, 2018 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare Decision
Replies: 8
Views: 1329

Re: Healthcare Decision

The representative mentioned that often ACA would look at what I was offered under Cobra and that I might not be eligible either way. Does anyone know how significant this factor is in ACA qualification? I am not sure what this means. To my knowledge there is still a COBRA/ACA "gap" that you might ...
by megabad
Wed Oct 31, 2018 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Starting a small wholesale/resale biz at local collective market -- should it be an LLC?
Replies: 7
Views: 615

Re: Starting a small wholesale/resale biz at local collective market -- should it be an LLC?

My wife is looking at starting a small wholesale/resale business (mostly clothing, some crafts, etc) and will have a small booth (unmanned) at the local collective market. To protect our assets, should we create a single member LLC? Is there anything else that we should know/do before "setting up s...
by megabad
Wed Oct 31, 2018 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or Pay off Car Loan?
Replies: 19
Views: 1444

Re: Invest or Pay off Car Loan?

I'd invest. You can get near 2% in a CD after tax (depending on your tax bracket). In general, I think car loans are a bad deal but why get the leverage if you don't think you can do better? You already made the bet, now follow thru. In your case, the difference should be pretty insignificant one wa...
by megabad
Wed Oct 31, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 14
Views: 1368

Re: Portfolio Advice

2. Should I also steer a larger percentage of my 401K contributions to Roth 401k? If you really are in the 15% bracket (12% now) and can do it without changing that, then more Roth 401k seems fine to me. +1. I would guess that you will be in the 22% bracket in retirement with SS and RMDs and you wi...
by megabad
Wed Oct 31, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: just retired facing RMD & diversivation issues
Replies: 10
Views: 1429

Re: just retired facing RMD & diversivation issues

I would say sell the losers,(including the bond funds, then get back in after 30 days] offset the losses with the stocks that you feel will underperform in the future and buy whatever you need to achieve your aa. Then going forward sell the stocks for expenses. Soon enough you will have a much simp...
by megabad
Wed Oct 31, 2018 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Finer points of Roth vs traditional IRA
Replies: 21
Views: 1470

Re: Finer points of Roth vs traditional IRA

99% of the posts I see recommend the following investment path: traditional 401k to match -> HSA -> Roth (or trad?) IRA -> max out pre tax/Roth 401k -> 529 -> taxable etc... My question is about the bolded item. Does anyone here wait until the last minute to fill up their IRA? Yes, I have done this...
by megabad
Wed Oct 31, 2018 4:21 pm
Forum: Personal Consumer Issues
Topic: Need New Phone?
Replies: 17
Views: 2172

Re: Need New Phone?

In an effort to be argumentative, I would argue an Iphone 7 or 8 is a better deal than this. Unfortunately, most android phone manufacturers refuse to support their product with updates for more than short period of time. I would say the update life of most of my Android phones has been ~12 months f...
by megabad
Wed Oct 31, 2018 4:10 pm
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting from ETF to Mutual Fund
Replies: 18
Views: 1261

Re: Tax Loss Harvesting from ETF to Mutual Fund

Or one could have a preference against high-variance outcomes and choose markets where the spread is tighter, so one ensures that one is not the one who is ripped off. This. The bid ask spread on everything I own is pretty small. If a tiny one day variance on a small portion of my portfolio mattere...
by megabad
Wed Oct 31, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Rollover
Replies: 25
Views: 2321

Re: HSA Rollover

Please be aware that you can only do this type of rollover once per year. Consider a trustee to trustee transfer to avoid this limit.
by megabad
Wed Oct 31, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2709

Re: Tell me about establishing trusts for our minor children

We are contemplating using Vanguard Trust Services and having Vanguard act as financial advisor and Co-Trustee along with my brother-in-law. I understand that this isn't necessarily the cheapest option but seems reasonable. Vanguard's fees for a trust under $5 million in size are 0.25% for trust ad...
by megabad
Wed Oct 31, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: How much for retirement ?
Replies: 21
Views: 2311

Re: How much for retirement ?

What % should I aim for if I am unable to max out my 403B retirement? Current age 26 Salary 52k Investing 11% Match 5.5% 2018 Roth maxed out I’ve seen threads that state 15% should be invested, does that include match or should that be before match? Thanks :sharebeer What do you think? Wild guess, ...
by megabad
Wed Oct 31, 2018 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating ROI for PhD
Replies: 86
Views: 4779

Re: Calculating ROI for PhD

1. What are the ways to calculate ROI for graduate school? I've seen threads on this forum suggesting you can calculate a multiplier for school, but they don't seem to account for your pre-education income: [post-graduation salary] * [years employed after graduating] / [cost of graduate school] But...
by megabad
Wed Oct 31, 2018 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Is it more advantageous to live in HCOL or LCOL area in terms of financial independence?
Replies: 180
Views: 11033

Re: Is it more advantageous to live in HCOL or LCOL area in terms of financial independence?

In moving around the country my impression is that for most jobs the regional salary differences are not anywhere near enough to cover the higher living expenses in the high cost of living areas. +1. I can attest that this is the case in many industries. However, some industries really only have a ...
by megabad
Wed Oct 31, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 53
Views: 4157

Re: Should we discourage the bond tent?

To me it looks like a bad strategy and I believe BH'ers should push back on it. I have a hard time predicting what will be a good or bad strategy in the future. The bond tent violates the most fundamental rule of asset allocation: money should be allocated to match time horizon. I do not interpret ...
by megabad
Wed Oct 31, 2018 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Girlfriend's Student Loans
Replies: 101
Views: 9279

Re: Girlfriend's Student Loans

I would never pay on a loan for someone that I'm not married to, but would it be unreasonable for me to focus on increasing my income and stacking cash in preparation for tackling this loan one day? Isn't it always reasonable to increase your income? I would not "stack cash". At least some of the l...
by megabad
Wed Oct 24, 2018 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Mother-in-law Portfolio
Replies: 15
Views: 1307

Re: Mother-in-law Portfolio

By my rough calculations, over 45% of the portfolio is fixed income. To me this means that sisters concerns have been dealt with (not invested in equities). Done. In my opinion, if MIL is able minded than neither of you have any right to force MIL to do anything so I would just put the decision on h...
by megabad
Wed Oct 24, 2018 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Downturn and Roth Conversions
Replies: 8
Views: 720

Re: Downturn and Roth Conversions

Am I correct that a market downturn is a good time to convert since each dollar converts a higher percentage of the tIRA? What am I missing? A higher percentage compare to what? If your tax rate drops 20% on early retirement than this might result in more after tax even in an up market. If you tax ...
by megabad
Wed Oct 24, 2018 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Rolling Early Withdrawal Penalty?
Replies: 13
Views: 836

Re: Roth IRA Rolling Early Withdrawal Penalty?

David’s post is a good reference. The Kitces article appears good to me as well. The second sentence explicitly defines what the two rules apply to and so I find it rather clear. The only point I disagree with him on is that there are only two five year rules. In the OP alone, direct contributions, ...
by megabad
Wed Oct 24, 2018 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Invested Just Before This Downturn (New to Investing)
Replies: 24
Views: 2546

Re: Invested Just Before This Downturn (New to Investing)

Decision to sell should be based on immediate need for funds and tax situation (if in taxable account) and should not depend on whether the market is in a correction or not in my opinion. Do you have realized gains that would offset the realized loss if you sold or would you be deducting on income? ...