Search found 877 matches

by MichCPA
Mon Nov 09, 2020 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and FSA spousal impact
Replies: 1
Views: 278

HSA and FSA spousal impact

I have an open enrollment dilemma. Work added a spousal access surcharge to my health plan so I am looking to see what my options and costs are for me and my wife. I have only PPO plans at work and my wife has a range of plans that are generally more expensive, but include an HDHP/HSA option. I understand that if I were to have a healthcare FSA, my wife could not contribute to an HSA. Would it be possible for my wife to contribute up to either the individual or family limit if I opted out of the FSA or does my non-HDHP mean she (really we) are SOL as far as her HSA option is concerned? When I look at IRS Pub 969 I can see the following under "Qualifying for an HSA": Under the last-month rule, you are considered to be an eligible i...
by MichCPA
Thu Feb 13, 2020 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Should I find a different job with a better commute?
Replies: 50
Views: 4560

Re: Should I find a different job with a better commute?

Fourth, the amount of 160k (which is more like 200k if you move from average COL to HCOL) jobs at 40/wk every week is pretty small. If you go from a 2,000 hr job to a 50hr wk job and then add commuting, you have added 895 hrs to your year and you are now spending 2,895 out of 5,840 available hours (all time in the year - 8 hrs/day sleep) at work. That is 50% of every waking moment (incl weekends) and 70% of the work week. It would get worse when you consider any possibility commuting to work on Saturdays and the fact that your lunch hour is kind of worthless as personal time. In addition, some base level of time needs to be spent getting food, doing laundry, etc. so your marginal free time is suddenly down by 75-95%. You wouldn't have a fa...
by MichCPA
Thu Feb 13, 2020 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Should I find a different job with a better commute?
Replies: 50
Views: 4560

Re: Should I find a different job with a better commute?

Fourth, the amount of 160k (which is more like 200k if you move from average COL to HCOL) jobs at 40/wk every week is pretty small. If you go from a 2,000 hr job to a 50hr wk job and then add commuting, you have added 895 hrs to your year and you are now spending 2,895 out of 5,840 available hours (all time in the year - 8 hrs/day sleep) at work. That is 50% of every waking moment (incl weekends) and 70% of the work week. It would get worse when you consider any possibility commuting to work on Saturdays and the fact that your lunch hour is kind of worthless as personal time. In addition, some base level of time needs to be spent getting food, doing laundry, etc. so your marginal free time is suddenly down by 75-95%. You wouldn't have a fa...
by MichCPA
Thu Feb 13, 2020 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Which Credit Card to maximize value for $100K expense
Replies: 8
Views: 1586

Re: Which Credit Card to maximize value for $100K expense

IMO, if you have a travel card that gives progress toward status for higher spend (ex: Delta Reserve, Marriott Brilliant, Hyatt). That might be a decent option too IF you travel a ton.
by MichCPA
Thu Feb 13, 2020 4:15 pm
Forum: Investing - Theory, News & General
Topic: Zero Stocks In Retirement
Replies: 79
Views: 7392

Re: Zero Stocks In Retirement

hoops777 wrote: Thu Feb 13, 2020 3:38 pm
MichCPA wrote: Thu Feb 13, 2020 3:18 pm
hoops777 wrote: Thu Feb 13, 2020 3:11 pm I am retired at 68. We have zero stocks. No mortgage. A good LTC policy. 66,000 in HSA. About 50,000 in free travel rewards points.
[...]
If you thought the stock market was too volatile, I am not sure retiring on rewards points is really the answer. :D
:D They are actually pretty stable. A mix of Southwest,Marriott and Capital One Venture. We are going to spend these the next few years. I was able to buy most of my inventory by CC. Have not paid for a hotel/flight in many years.
Marriott literally just announced a devaluation. They have 3x the property class increases vs decreases. Also the transfer ratio on C1 is terrible, Chase, Citi and Amex are better values, but I digress.
by MichCPA
Thu Feb 13, 2020 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Should I find a different job with a better commute?
Replies: 50
Views: 4560

Re: Should I find a different job with a better commute?

Would I increase my commute from 60 minutes to 150 minutes per day in order to earn $150k instead of $80k? Yes, most definitely. Why? Assuming a 2,000 hour work year, if you're making $80k, that's $40/hr. If you add 375 hours for additional commuting and make $150k, that's $63.16/hr., a significantly higher pay rate. Isn’t your sanity and family time worth more than that? My point is that this is not a purely financial exercise. Yes, it's not a purely financial exercise, but less than 20% more time for nearly double the money would be a worthy trade-off IMHO. You could reach FI much faster at $150k than $80k and then spend a lot more time with your family. First, for a 70k+ raise, you can probably find a way to shorten the commute. Second,...
by MichCPA
Thu Feb 13, 2020 3:18 pm
Forum: Investing - Theory, News & General
Topic: Zero Stocks In Retirement
Replies: 79
Views: 7392

Re: Zero Stocks In Retirement

hoops777 wrote: Thu Feb 13, 2020 3:11 pm I am retired at 68. We have zero stocks. No mortgage. A good LTC policy. 66,000 in HSA. About 50,000 in free travel rewards points.
[...]
If you thought the stock market was too volatile, I am not sure retiring on rewards points is really the answer. :D
by MichCPA
Wed Feb 12, 2020 4:52 pm
Forum: Personal Investments
Topic: Fidelity ETF fees
Replies: 5
Views: 670

Re: Fidelity ETF fees

This is a one-time $20 per $1m. I think you would be fine with VTI and should spend your energy looking at tax efficiency way before this.

ETA: The taxes you owed on FSKAX CG distributions would be about 3.5 cents per share per year averaging 2018 and 2019 levels and would cost you way more than this fee.
by MichCPA
Wed Feb 12, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: I'm owed $393; client won't pay; what are my options?
Replies: 45
Views: 6075

Re: I'm owed $393; client won't pay; what are my options?

Small claims court is the answer to disputes of this nature. You file, and you present your evidence and the client responds. Typically there is a mediation required prior to the court date, and things may get settled there. In your case you are entitled to be reimburse filing fees and perhaps fees you already paid in collection attempts. Like postage of return receipt expected. Think of a Judge Judy type show with far less drama. The key is how easy is it to collect a verdict if you win. This varies greatly by state. The way you present this, you should win. Then it is a matter of collection. Limits to small claims court vary greatly by jurisdiction but are generally around $2,500 to $5,000. Small claims is an option in the location the s...
by MichCPA
Wed Feb 12, 2020 4:00 pm
Forum: Personal Investments
Topic: Roth 401k rollover rules
Replies: 2
Views: 374

Roth 401k rollover rules

I currently have a roth 401k and a traditional component as well which houses matches and my new contributions. When I last did a rollover I rolled both into my new roth and traditional 401k plans (better plans) and did not choose an IRA option due to the need to keep the backdoor Roth option open.

Is it possible to take a Roth 401k component and roll it into a Roth IRA and take a traditional component and either keep it in an existing 401k or move it to a new 401k?

Side note: I am not contributing to the Roth 401k anymore, that was done a few years ago when my tax rate was lower.
by MichCPA
Wed Feb 12, 2020 9:13 am
Forum: Personal Investments
Topic: Choosing brokerages - next-best after Schwab, Fidelity, Vanguard, TD Ameritrade
Replies: 51
Views: 7415

Re: Choosing brokerages - next-best after Schwab, Fidelity, Vanguard, TD Ameritrade

I can only think of disadvantages from having (presumably) more than three brokerages. I understand that having 401k's and HSAs doesn't yield you much choice, but how are you even going to properly report a wash sale if you own the security in 4 different places?The brokerage won't flag it for you, so you or your accountant would need to be able to override the 1099-B.

Each place has strengths, but its really a choice between Schwab (bought TD) and Fidelity vs Vangaurd. If you want a one stop, choose Schwab or Fidelity. If you really want to squeeze some pennies out of your MMFs or want to volunteer to pay higher fees to buy MFs instead of ETFs Vanguard is your choice.
by MichCPA
Wed Feb 12, 2020 9:06 am
Forum: Investing - Theory, News & General
Topic: Why are you holding bonds
Replies: 161
Views: 13926

Re: Why are you holding bonds

Because I don't want to take the chance of losing all of my wage income and 50% of my assets in withing 6-9 months.

Am I giving up some return? Absolutely. Does that mean that my decision is sub-optimal? Not necessarily.
by MichCPA
Wed Feb 12, 2020 8:49 am
Forum: Investing - Theory, News & General
Topic: Berkshire Annual Meeting in person
Replies: 41
Views: 4182

Re: Berkshire Annual Meeting in person

Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years. No one knows! Warren Buffett has said as they get larger it is becoming increasingly difficult to out perform the S&P 500. It will be increasingly difficult to out-perform the S&P 500. That is true, but this is a matter of the time-frame. At present valuations, I think it's quite easy for Berkshire to out-perform. Over very long periods of time, like rolling 30-year periods, I don't think Berkshire, going forward, will deviate very significantly from the performance of the S&P. Those are very different arguments. The total return of BRK-B is 20% behind VOO over the past 10 years, 'almost certain' seems like a stretch. I think its ...
by MichCPA
Tue Feb 11, 2020 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Should I payoff my car loan" thread
Replies: 19
Views: 1686

Re: Another "Should I payoff my car loan" thread

Big Dog wrote: Tue Feb 11, 2020 3:05 pm
Admiral wrote: Tue Feb 11, 2020 2:34 pm I would invest the money as per my AA (with some small amount of cash in reserve) and not pay off the loan.
Do you also support buying equites/investments on margin (which essentially is the same thing)?
With around 100k in excess cash, why not use the bond allocation from the normal AA to pay the loan? Taking out margin to buy bonds is even worse than equities in terms of % chance of return beating your interest rate.
by MichCPA
Tue Feb 11, 2020 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Should I payoff my car loan" thread
Replies: 19
Views: 1686

Re: Another "Should I payoff my car loan" thread

We are at 2% or less all across the yield curve. Apply your asset allocation strategy to the excess cash and use the bond portion to pay off the loan. 4% post tax is a better use of cash than 2% pre tax.
by MichCPA
Fri Feb 07, 2020 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Intending to spend an HSA, still a good idea?
Replies: 21
Views: 1102

Re: Intending to spend an HSA, still a good idea?

cdallas wrote: Fri Feb 07, 2020 3:22 pm
We will be up to about $10K in an emergency fund in a couple months, so should be ok there. Our High Deductible is $6/family.
If you will have the EF in place why can't you then pivot and do both 403 and HSA by the end of the year? I would also plan based on OOP Max not just the deductible.
by MichCPA
Fri Feb 07, 2020 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Intending to spend an HSA, still a good idea?
Replies: 21
Views: 1102

Re: Intending to spend an HSA, still a good idea?

Thanks! I thought it was still a good idea, but just wanted to be sure! I know using it as another source of savings is *better*, but we're getting there ;) We do qualify, we've had a HDHP for a few years now. Now off to find which HSA provider is best... Go to fidelity. their HSA are free and no cost. If your employer HSA have matching contribution then use that otherwise I would say fidelity. Also, try max out HSA to 7k so that rest of the money you can invest for long term If we were to max the HSA to $7K, I would have to lower the 403b contributions (neither have matching funds provided by the employer)? It can be argued that the HSA funds are more valuable than the 403b funds, because you get an up front tax deduction and you may neve...
by MichCPA
Fri Feb 07, 2020 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Intending to spend an HSA, still a good idea?
Replies: 21
Views: 1102

Re: Intending to spend an HSA, still a good idea?

core4portfolio wrote: Fri Feb 07, 2020 3:11 pm Might be experts can guide you.
My understanding is 403b and HSA are 2 different entity. One for retirement account and another on health saving account.
They are not interlinked in my understanding and so you can contribute 7k in HSA without lowering 403b
OP was saying they could not afford to max out all of these accounts. Certainly no shame in not being able to fill a 19.5k 401k a, 6k IRA, a 3.5-7k HSA at the same time. No interlinking of max amounts was implied.
by MichCPA
Fri Feb 07, 2020 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Intending to spend an HSA, still a good idea?
Replies: 21
Views: 1102

Re: Intending to spend an HSA, still a good idea?

Thanks! I thought it was still a good idea, but just wanted to be sure! I know using it as another source of savings is *better*, but we're getting there ;) We do qualify, we've had a HDHP for a few years now. Now off to find which HSA provider is best... Go to fidelity. their HSA are free and no cost. If your employer HSA have matching contribution then use that otherwise I would say fidelity. Also, try max out HSA to 7k so that rest of the money you can invest for long term If we were to max the HSA to $7K, I would have to lower the 403b contributions (neither have matching funds provided by the employer)? If you can't max out all tax advantaged options, just use the HSA for spending. That is better than leaving money in taxable because ...
by MichCPA
Fri Feb 07, 2020 8:47 am
Forum: Personal Consumer Issues
Topic: Do you buy plastic bags for your home trash bins?
Replies: 99
Views: 8989

Re: Do you buy plastic bags for your home trash bins?

fru-gal wrote: Thu Feb 06, 2020 4:53 pm
MichCPA wrote: Thu Feb 06, 2020 4:43 pm The correct answer is that you buy the scented trash bags so the house/apartment doesn't smell.
Scented trash bags guarantee that the house/apartment smells.
Touche, I guess I like vanilla or lavender better than rotting food though.
by MichCPA
Thu Feb 06, 2020 4:43 pm
Forum: Personal Consumer Issues
Topic: Do you buy plastic bags for your home trash bins?
Replies: 99
Views: 8989

Re: Do you buy plastic bags for your home trash bins?

The correct answer is that you buy the scented trash bags so the house/apartment doesn't smell.
by MichCPA
Thu Feb 06, 2020 1:34 pm
Forum: Personal Investments
Topic: I bought a house, what is my AA now?
Replies: 152
Views: 13148

Re: I bought a house, what is my AA now?

Yikes!

I thought one of the major lessons from 07-09 was to NOT treat your house like an investable asset because it is very illiquid and that is never more true than when everyone tries to sell at once. I guess you just need to ask yourself. "Would I be willing to sell my house at a huge loss due to a temporary change in the stock market.
by MichCPA
Wed Feb 05, 2020 10:07 am
Forum: Investing - Theory, News & General
Topic: Those Who Want to Work Past 70
Replies: 25
Views: 2981

Re: Those Who Want to Work Past 70

IMO, planning to work past 70 and planning to HAVE to work past 70 are very different. I would recommend the former and be sure you could retire at 65. If you can work later that is a much easier adjustment than the other way around.
by MichCPA
Wed Feb 05, 2020 9:59 am
Forum: Personal Investments
Topic: Paralyzed by TSLA
Replies: 58
Views: 9030

Re: Paralyzed by TSLA

10% of your portfolio is too much for an individual stock.

As far as taxes go, I normally look at my assets each year and calculate a deferred tax liability based on my unrealized gains and traditional portion of my 401k. If you calculate these numbers all along, it doesn't feel as much like you are taking an avoidable expense. The realizable value of your stocks being less than what you see on the balance screen is just reality for taxable accounts.
by MichCPA
Wed Feb 05, 2020 9:19 am
Forum: Personal Consumer Issues
Topic: Would you drive without a spare tire?
Replies: 193
Views: 14739

Re: Would you drive without a spare tire?

averagedude wrote: Tue Feb 04, 2020 4:55 pm Having a flat tire is similar to other things in life such as speeding tickets, car accidents, ect.. You may go 25+ years and have none, or you may have 2 or 3 in a matter of months.
Wind shield chips need to be added to this list.
by MichCPA
Wed Feb 05, 2020 9:00 am
Forum: Personal Investments
Topic: My wife's Morgan Stanley Financial advisor passed at 44 years old
Replies: 21
Views: 4688

Re: My wife's Morgan Stanley Financial advisor passed at 44 years old

I had one year in my mid 50's when I went to three funerals of people that were about my age. None of them were real close to me but that does get your thinking. That helped me decide to retire as soon as I could. My wife's Morgan Stanley Financial advisor passed at 44 years old One of the often overlooked pitfalls of using a financial advisor is that even if you are happy with one they will eventually die, retire, or change jobs. There was a post awhile back where someone had an elderly parent who had a new financial advisor advised that was badly abusing them by generating a lot of additional fees. It sounded like that office had someone who specialized in taking over old accounts to generate a lot more revenu. How is this in any way a p...
by MichCPA
Fri Jan 31, 2020 12:33 pm
Forum: Personal Consumer Issues
Topic: Amazon price gouging
Replies: 61
Views: 4863

Re: Amazon price gouging

tc101 wrote: Fri Jan 31, 2020 12:23 pm
I go by Lowes and Target almost every day
Why?
Is it really that hard to believe that one could have these things on their work commute? I have three grocery stores( incl a Target) and a Lowe's on my 10 mile commute.
by MichCPA
Wed Jan 29, 2020 2:45 pm
Forum: Personal Consumer Issues
Topic: Not allowed to board American Airlines flight - Forced to buy second ticket for same flight - Help requested [UPDATED]
Replies: 125
Views: 18865

Re: Not allowed to board American Airlines flight - Forced to buy second ticket for same flight - Help requested

willthrill81 wrote: Tue Jan 28, 2020 7:13 pm
whodidntante wrote: Mon Jan 27, 2020 6:24 pm It would be a warm day in Nome before I fly AA again.
We haven't had good experiences with AA. The majority of the flights that we or family members have booked through them over the last two years have been rescheduled, and not by a few minutes either: hours and, on one occasion, by a day. We aren't interested in flying with them again.
Delta> Alaska/SW> (big gap)> United> AA
by MichCPA
Thu Jan 23, 2020 2:44 pm
Forum: Personal Consumer Issues
Topic: Windows 7 end of support - Jan 14, 2020
Replies: 107
Views: 10566

Re: Windows 7 end of support - Jan 14, 2020

When W10 first came out it was horrible but apparently it got better. I have about 50 machines running Win10 and have not had any issues. Didn't have with 7 either. My desktop runs Win10 and it is quite stable. The only time I restart it is to install updates. Its really every other one that is bad ME :x XP :D Vista :x 7 :D 8 :x 10 :D Its close to every other OS but you left out Windows 2000 Windows 95 was great OS for their time. I still have my Windows 3.1 and Windows 95 & Windows 2000 software Plus a MS DOS 3.3 on floppy still in the shrink wrap! Such fun times... Windows 10 has been one of the most stable OSs for me... So Should be Windows 3.1 :x Windows 3.11 :D Windows 95 :D Windows 98 :D Windows 98 SE :x ME :x XP :D Windows 2000 ...
by MichCPA
Thu Jan 23, 2020 1:23 pm
Forum: Personal Consumer Issues
Topic: Windows 7 end of support - Jan 14, 2020
Replies: 107
Views: 10566

Re: Windows 7 end of support - Jan 14, 2020

jebmke wrote: Thu Apr 18, 2019 5:50 pm
GrowthSeeker wrote: Thu Apr 18, 2019 10:15 am When W10 first came out it was horrible but apparently it got better.
I have about 50 machines running Win10 and have not had any issues. Didn't have with 7 either.

My desktop runs Win10 and it is quite stable. The only time I restart it is to install updates.
Its really every other one that is bad

ME :x
XP :D
Vista :x
7 :D
8 :x
10 :D
by MichCPA
Thu Jan 23, 2020 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Two TurboTax Errors in Income Section Alone?
Replies: 10
Views: 1048

Re: Two TurboTax Errors in Income Section Alone?

bjames310 wrote: Thu Jan 23, 2020 12:11 pm I'm just using it on their website for free and will do the option to pay once I'm ready to file.
I didn't think the free version did itemized deductions. As far as I am aware, you need to pay up for that.

Are you trying to say that the software is taking the standard (not itemized) even though it is lower? Because its possible the system locks that out somehow in the free version so that is all that shows up.
by MichCPA
Thu Jan 23, 2020 10:44 am
Forum: Personal Consumer Issues
Topic: Subaru Outback engine stop/start
Replies: 125
Views: 16164

Re: Subaru Outback engine stop/start

TomatoTomahto wrote: Thu Jan 23, 2020 8:23 am My wife’s Porsche has that, and it’s disabled by going into Sport mode. My Tesla doesn’t have that feature 😁
It's not super uncommon, even my very plebeian Ford Escape can defeat auto start/stop with 'Sport' mode. The biggest issue for me is the loss (or partial loss) of heating / cooling power Auto S/S in on.
by MichCPA
Thu Jan 23, 2020 10:31 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 445
Views: 79741

Re: Larry Swedroe says "Goodbye."

Message boards require thick skin. I belong to other types of boards which are a totally different subject matter and it's the same kind of thing. This forum is actually far more cordial. I belong to a strength training forum and you can only imagine. "This training system is the best way to train you idiot!" Debates on studies with different training protocols, experience, etc. Diets the same way (low carb vs low fat, etc.). However, sometimes almost everyone needs a break from boards before getting the urge to jump back in. One of the themes on most forums is the desire to persuade others that their view is the best or correct one. Its more cordial in that you are less likely to be verbally assaulted, but lets not pretend that ...
by MichCPA
Fri Jan 17, 2020 10:25 am
Forum: Investing - Theory, News & General
Topic: Are Fidelity Zero Funds Underperforming or ...
Replies: 28
Views: 9577

Re: Are Fidelity Zero Funds Underperforming or ...

Jack FFR1846 wrote: Fri Jan 17, 2020 10:15 am Zero funds started around August 4th, 2018. I bought FZROX with half of my total US market money. I held for a year. FZROX beat what became FSKAX when Fidelity eliminated their various classes and lowered the ERs. I sold the remaining FSKAX and now only invest in FZROX in accounts where its available.
I bought in to FSKAX and FZROX in the same amount on the same day last summer as well. FZROX leads 12.33% to 12.13%. My international counterparts are FZILX and FSPSX. FZILX leads 9.61% to 7.87%.

It seems like Fidelity's US indexes are closer than the Global ones.
by MichCPA
Fri Jan 17, 2020 10:08 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 23491

Re: Isn’t Inflation Much Larger Than 2%?

CoastalWinds wrote: Thu Jan 16, 2020 9:34 pm
dukeblue219 wrote: Thu Jan 16, 2020 9:34 pm 5-10 percent (call it an average of 7.5%) means prices doubled since 2011. I cant think of much that's truly doubled in price since 2011.
I can:

-Health insurance premium (250/mo -> 500/mo for silver plan)
-Rent (900/mo -> 1,800/mo for 1-BD)
-Housing prices (400K -> 800K median)

But I guess these are small potatoes.
I am beginning to think you view of inflation is heavily influenced by your local housing market. Those number aren't reflective of the country as a whole. Also, most manufactured goods and technology haven't seen much of an increase since 2011.
by MichCPA
Fri Jan 17, 2020 9:57 am
Forum: Personal Investments
Topic: HSA - Spend or Save?
Replies: 16
Views: 1614

Re: HSA - Spend or Save?

The majority of Bogleheads should definitely save.

For the average person it is less of a slam dunk. If you aren't able to get your full 401k match, fill up a Roth IRA and fill up your HSA, you should do both. The majority of Americans couldn't put 6k into a Roth, 3.5k into an HSA and go out and hit the 401k match.

If anyone is at or near this situation, funding some medical out of the HSA isn't a bad idea. I would rather have someone over save into an HSA and need to withdrawal, than leave 401k match or Roth IRA space on the table. If you can't fill all of your tax-advantaged buckets, I don't see as much of a reason to save in taxable.
by MichCPA
Thu Jan 16, 2020 4:30 pm
Forum: Investing - Theory, News & General
Topic: S&P 2/3 'correction' - Hussman makes his case.
Replies: 93
Views: 11077

Re: S&P 2/3 'correction' - Hussman makes his case.

watchnerd wrote: Thu Jan 16, 2020 11:12 am
jeffyscott wrote: Thu Jan 16, 2020 10:30 am I think US stock prices are high and have been for some time, but not the the extent that our investment results resemble this over the past 15 years:

Image
:shock:
It's trading at all-time low!

Surely a buying signal!

:P
To be honest, it really took a ton of talent to lose money in 2019 like Hussman did. I know Bogleheads are normally passive, but I kind of wish I was smart enough to set up a trading algo to do the opposite of whatever he is doing.
by MichCPA
Tue Jan 14, 2020 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Daycare Provider Wants to Charge $20/week for Receipt
Replies: 145
Views: 11837

Re: Daycare Provider Wants to Charge $20/week for Receipt

How about paying by check and including a remark like the following in the memo "Childcare for Boy/Girl schutzk21 for January 2020 at Mrs Jones Childcare, 123 Main St, Anytown NY" That is probably not good enough for the FSA administrator. From a quick Google search Information necessary to file a dependent care claim includes: • the dependent care provider’s name and address • provider signature • service start and end dates • dependent name and relationship to employee • description of service • amount requested Please remember that credit card receipts, non-itemized cash register receipts and cancelled checks are not acceptable forms of documentation. https://www.connectyourcare.com/tools/faqs/dependent-care-fsa-faqs/
by MichCPA
Tue Jan 14, 2020 11:17 am
Forum: Personal Investments
Topic: Financial Engines very aggressive recommendation
Replies: 22
Views: 2324

Re: Financial Engines very aggressive recommendation

Grt2bOutdoors wrote: Tue Jan 14, 2020 11:08 am
MichCPA wrote: Tue Jan 14, 2020 11:03 am Its not the way I would set it up and is slightly (not in a major way) more aggressive than I would be. The biggest issue I have is going super heavy in small and mid cap.

The fixed income portion of the portfolio on most recommended glide paths doesn't significantly increase until about 50-55.

If you were doing the 100-age thing, that really has fallen out of favor.
I also hold a tilt to mid and small cap, but I don't believe in marching to the beat of lemmings either. You only recognize the value of something when you don't have it.
I understand a tilt, but this is pretty notable. You are taking 17% of the market and weighting it above 83%.
by MichCPA
Tue Jan 14, 2020 11:03 am
Forum: Personal Investments
Topic: Financial Engines very aggressive recommendation
Replies: 22
Views: 2324

Re: Financial Engines very aggressive recommendation

Its not the way I would set it up and is slightly (not in a major way) more aggressive than I would be. The biggest issue I have is going super heavy in small and mid cap.

The fixed income portion of the portfolio on most recommended glide paths doesn't significantly increase until about 50-55.

If you were doing the 100-age thing, that really has fallen out of favor.
by MichCPA
Tue Jan 14, 2020 10:54 am
Forum: Personal Investments
Topic: IRA worth it given salary / income dynamics?
Replies: 18
Views: 1901

Re: IRA worth it given salary / income dynamics?

Spirit Rider wrote: Mon Jan 13, 2020 11:14 am
hand wrote: Mon Jan 13, 2020 10:45 am
MichCPA wrote: Mon Jan 13, 2020 10:13 am IMO, if the traditional IRAs are only at 11k, OP should bite the bullet and pay the few grand in taxes and go do the backdoor setup moving forward.
Agreed 100%. One-time tax hit on the $11k allows $6k/yr (after-tax) into Roth which is unquestionably better than the same $6k/yr (after-tax) into taxable.
Why, when it is highly likely that the OP can roll the pre-tax traditional IRA assets over to an employer plan. The whole point of tax deferral is to not pay taxes when you are in your highest marginal tax brackets.
I am glad that worked out in this case and it was a good catch by you. It's not a typical feature of a 401k though.
by MichCPA
Tue Jan 14, 2020 10:52 am
Forum: Personal Finance (Not Investing)
Topic: JPM Chase Reserve Card gets more expensive
Replies: 509
Views: 57439

Re: JPM Chase Reserve Card gets more expensive

TravelGeek wrote: Wed Jan 08, 2020 5:13 pm
WhiteMaxima wrote: Wed Jan 08, 2020 5:09 pm
Leesbro63 wrote: Wed Jan 08, 2020 4:53 pm I just want to confirm that the Chase Sapphire Preferred card (not the card in the subject title) will continue to be $95 and have primary rental car coverage...is that correct?
Costco Citi has primary rental car coverage and it's free (costco member fee is $60)
I'd double-check that.

https://www.cardbenefits.citi.com/~/med ... coCon.ashx

"In the United States, the coverage provided by this benefit is secondary"
Pretty much all Citi benefits were obliterated on Sept 22. Insurances and price rewind are dead.
by MichCPA
Mon Jan 13, 2020 10:30 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1413513

Re: What's Your Credit Card Rewards Strategy?

michaeljc70 wrote: Sat Jan 11, 2020 6:06 pm I wouldn't keep too many points sitting around for a long time. It is like holding on to third world currencies. Even if they offer a cash conversion inflation cuts into it. Trips I took many times on UAL for 60k miles now are typically 105k miles 2 years later.
This^^, you should really have a timeframe for using any points and that probably shouldn't be more than 12-18 months. On the Chase side, we just had the United devaluation and a Hyatt one has been announced for March. Honestly, the Hyatt one will turn out to be a large blow to the overall value of UR as a whole, if peak/off peak turns out to be really unfavorable (basically a 30% peak price increase).
by MichCPA
Mon Jan 13, 2020 10:13 am
Forum: Personal Investments
Topic: IRA worth it given salary / income dynamics?
Replies: 18
Views: 1901

Re: IRA worth it given salary / income dynamics?

IMO, if the traditional IRAs are only at 11k, OP should bite the bullet and pay the few grand in taxes and go do the backdoor setup moving forward.
by MichCPA
Mon Jan 06, 2020 4:28 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 8472

Re: Debt payoff

EnjoyIt wrote: Mon Jan 06, 2020 4:06 pm
I'm just trying to show you by example of how using up an emergency fund to pay off very high interest credit card debt is in fact a good idea. Feel free to put in any value for this example that makes you understand the concept I am trying to convey. I also agreed with you that canceling the credit card may not be the correct approach.
Then why not go to 0? You can open a new cc and put all expenses on that, then only hold enough cash to pay the bill when it comes due.
by MichCPA
Mon Jan 06, 2020 4:01 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 8472

Re: Debt payoff

Think of it this way: 1) High credit card debt is an emergency so treat it as such. 2) If you have for example $3k in an emergency fund and $2k in credit card debt paying 17% interest, it is in your best interest to just wipe out that debt. If for some reason you lose your job 2 months later, then you can always use that credit card to pay rent and get to work. As long as you don't rack up $2k in card payments immediately, you will come out ahead. Though I agree if the debt being payed off is something like a 4% car loan and 5% school loan, maybe a higher emergency fund is a good idea. There are a few bank accounts that will pay you 4-5% interest on sums smaller sums like $10k which could be a good place to park the emergency fund. There a...
by MichCPA
Mon Jan 06, 2020 3:38 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 8472

Re: Debt payoff

I love Dave but disagree with him in the baby steps. I feel more comfortable with a much larger EF of 3-6 months. --> If my EF was only $1,000, as a homeowner with 2 young kids, I would not have been able to pay for multiple real life emergencies this past year. Secondly, I aggressively pay high interest debt and leverage low interest debt.. I just finished paying off DW's 5.35% student loans while taking out another loan (0% home energy upgrade) all while making 0 extra payments towards our 1.60% auto loans. --> If I hadn't contributed towards our Roths this year, I would have traded about 30% in returns to pay off 1.60%. That makes no sense to me. The 1k emergency fund for any household size during debt payoff is the worst advice DR give...
by MichCPA
Mon Jan 06, 2020 2:58 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 8472

Re: Debt payoff

I love Dave but disagree with him in the baby steps. I feel more comfortable with a much larger EF of 3-6 months. --> If my EF was only $1,000, as a homeowner with 2 young kids, I would not have been able to pay for multiple real life emergencies this past year. Secondly, I aggressively pay high interest debt and leverage low interest debt.. I just finished paying off DW's 5.35% student loans while taking out another loan (0% home energy upgrade) all while making 0 extra payments towards our 1.60% auto loans. --> If I hadn't contributed towards our Roths this year, I would have traded about 30% in returns to pay off 1.60%. That makes no sense to me. The 1k emergency fund for any household size during debt payoff is the worst advice DR give...
by MichCPA
Tue Dec 31, 2019 2:26 pm
Forum: Personal Consumer Issues
Topic: Apple iMac 2013? Replace with Fusion? Or all SSD? Security? Questions
Replies: 38
Views: 3409

Re: Apple iMac 2013? Replace with Fusion? Or all SSD? Security? Questions

SSD is the way to go, but I would do that in a newer computer.

Hybrid drives typically just speed up boot times.
by MichCPA
Tue Dec 31, 2019 10:59 am
Forum: Personal Finance (Not Investing)
Topic: SECURE Act - 529 Plans
Replies: 46
Views: 6854

Re: SECURE Act - 529 Plans

livesoft wrote: Sat Dec 21, 2019 4:03 pm 5. How do you think states will change their 529 plans with respect to state income taxes because an entire new way to avoid state taxes has been invented without the permission of the affected state governments?
In most states, the deduction is for contributions. The question is whether a state's rules are already setup for federal conformity or whether there is a rule making process required to change the definition of a qualified withdrawal.

I seem to remember about 40% to half are conforming and the other half would need either a legislative or administrative update. The 10k cap for a lifetime makes it hard to see a state throwing a major fit. In most circumstances, the lifetime tax benefit will be less than $1k.