Search found 49 matches

by PolarBearMarket
Sat May 18, 2019 10:18 am
Forum: Personal Investments
Topic: FDIC Coverage Limits
Replies: 22
Views: 1452

Re: FDIC Coverage Limits

Is it okay to exceed FDIC limits on a high interest rate 5 year CD if the bank is highly rated? Only the compounded interest is at risk. The principal is within insurance limits. The likelihood that you'll need FDIC protection is very, very low. If your balance is not significantly over the limit, ...
by PolarBearMarket
Thu Apr 18, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Expenses in Quicken, Moneydance
Replies: 8
Views: 713

Re: Expenses in Quicken, Moneydance

Why wouldn't you get a separate card for "business" that is 100% for business expenses. unless I am missing something... 3% cash back with CSR with *1.5 when used for travel. This means $4.5K/year just for routing expenses through our personal cards. 1. You don't need Quicken H&B. Deluxe will be su...
by PolarBearMarket
Wed Apr 10, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Expenses in Quicken, Moneydance
Replies: 8
Views: 713

Expenses in Quicken, Moneydance

I'd like to start using an expense analysis tool, and we're looking at Quicken and Moneydance (open to other recommendations if folks have them). One key feature we need is to be able to cleanly separate our personal and work expenses. We spent ~$100K last year on personal cards that was reimbursed ...
by PolarBearMarket
Mon Apr 08, 2019 11:44 am
Forum: Personal Finance (Not Investing)
Topic: How to fix taxes paid to wrong state
Replies: 7
Views: 771

Re: How to fix taxes paid to wrong state

There are numerous threads online about this question, but I still don't fully understand. I worked in NY all of last year, but my company accidentally showed me working mostly in CA (while correctly living the whole year in NYC, which may complicate things). They withheld lots for CA, some for NY ...
by PolarBearMarket
Mon Feb 04, 2019 8:23 pm
Forum: Personal Investments
Topic: Investment strategy for 28 year old
Replies: 12
Views: 1300

Re: Investment strategy for 28 year old

Agree with the above that HYSA world be my first choice if you think you'll need the money inside of 5 years. Worth noting that you should save back to front though. For example, if you want to buy a house in 5 years but expect to make enough in years 4 & 5 to cover the down payment (after maxing ta...
by PolarBearMarket
Mon Jan 14, 2019 5:11 pm
Forum: Personal Consumer Issues
Topic: Should I get umbrella liability insurance?
Replies: 56
Views: 4998

Re: Should I get umbrella liability insurance?

The amount of umbrella insurance depends on how much protection you need — all asset values minus protected assets (401k). Round up to the next higher million Umbrella insurance costs 200-250 or so for the first 1 million and scales up nonlinearly by little for each incremental million (2 million u...
by PolarBearMarket
Mon Jan 14, 2019 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 58
Views: 4839

Re: Mortgage: 15 vs 30 year

It completely depends on the financed amount and the rates. Check this Google sheet out: https://docs.google.com/spreadsheets/d/1biVc--8f9wvClwGKQNc0U9izD9cuYmBLHdoQjzddRf0/edit?usp=sharing Here I have given you 3 amortization tables to play with. There's a 30-year table, a 15-year table, and the f...
by PolarBearMarket
Wed Dec 12, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: 401k strategy in last year of training (MD)
Replies: 2
Views: 200

Re: 401k strategy in last year of training (MD)

What are the downsides to having two 401k accounts with two different employers? You need to track when you hit the combined contribution limit for the year. How would one best address that income after leaving those locations? You can roll it over to an IRA if you want better investment options. I...
by PolarBearMarket
Tue Dec 11, 2018 12:50 pm
Forum: Personal Investments
Topic: Should I do Roth 401k, and should I also rollover TO the Roth 401k?
Replies: 2
Views: 209

Re: Should I do Roth 401k, and should I also rollover TO the Roth 401k?

Q1: Based on what I've learned from reading here, I think it would be a good idea to contribute to the Roth 401k (instead of the traditional 403b) for 2019. Do you agree? Think this just depends on your situation and https://www.bogleheads.org/wiki/Traditional_versus_Roth Q2: Would it be a good ide...
by PolarBearMarket
Sat Dec 08, 2018 1:36 am
Forum: Personal Investments
Topic: options to cover next 10 years before SS
Replies: 49
Views: 4110

Re: options to cover next 10 years before SS

Why 50/50? If your time horizon for withdrawal is "now," I would expect ~80% bonds.
by PolarBearMarket
Fri Dec 07, 2018 12:46 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Priority
Replies: 12
Views: 1120

Re: Mega Backdoor Roth Priority

I generally follow advice from https://www.bogleheads.org/wiki/Prioritizing_investments in choosing where to invest my money. However, my company just announced some changes to our 401k plan. Among them is the ability make after-tax contributions with a possibility of doing a mega backdoor Roth con...
by PolarBearMarket
Thu Dec 06, 2018 9:15 am
Forum: Personal Investments
Topic: What Now?
Replies: 11
Views: 1249

Re: What Now?

But today I observed another drop in the market due to the arrest of a Chinese executive in Canada. The stock market swings are beyond any reasonable consideration I no longer care to participate. This pair of statements is akin to saying you hate traffic while sitting in traffic. You are the traff...
by PolarBearMarket
Mon Dec 03, 2018 7:35 pm
Forum: Investing - Theory, News & General
Topic: Bond Inversion! Real estate prices, and more.
Replies: 25
Views: 2294

Re: Bond Inversion! Real estate prices, and more.

"... and yield curve inversions have preceded each of the last seven recessions (as defined by the NBER." https://www.clevelandfed.org/our-research/indicators-and-data/yield-curve-and-gdp-growth.aspx Yes, but not all yield curve inversions have been followed by recessions. The old say going like "y...
by PolarBearMarket
Mon Dec 03, 2018 1:46 pm
Forum: Personal Investments
Topic: Advice on Which Indexes to Track
Replies: 8
Views: 585

Re: Advice on Which Indexes to Track

Hi everyone, I was hoping to get some advice on portfolio diversification, particularly with index tracking. I have currently ~150k invested in indexes (70% tracks S&P500, 20% tracks small/mid cap indexes, 10% tracking international indexes). I was wondering...should I diversify in terms of trackin...
by PolarBearMarket
Mon Dec 03, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Megacorp vs Small Company
Replies: 23
Views: 2072

Re: Megacorp vs Small Company

IMHO, if you just state what you would like using "I-statments" (statements that are all about you) with some explanation, you should be able to do it without it being offensive. Something like, "Given the risk that I perceive in being in a small company, I would not be comfortable moving (or it wo...
by PolarBearMarket
Sun Dec 02, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Job search and Finance industry
Replies: 7
Views: 1181

Re: Job search and Finance industry

The world of HFT and the world of personal investing (the topic of this forum) have almost nothing to do with each other. It's like comparing a toothpick and a refrigerator - they are both in the kitchen, but that's where the similarity ends. That said, my favorite book on the subject is A Random Wa...
by PolarBearMarket
Tue Nov 27, 2018 9:23 pm
Forum: Personal Investments
Topic: Roth 401K + Roth IRA Dilemma
Replies: 1
Views: 280

Re: Roth 401K + Roth IRA Dilemma

1. Will I be eligible to open a Roth IRA even if I have an existing Roth 401k? Yes. 2. If yes, does it make sense to have 2 separate accounts? I called Vanguard and they keep on hammering that I can roll-over the Roth 401K to a new Roth IRA w/o incurring a taxable event (and although that will give...
by PolarBearMarket
Mon Nov 26, 2018 7:43 am
Forum: Investing - Theory, News & General
Topic: Is today a bad time to rebalance?
Replies: 18
Views: 2443

Re: Is today a bad time to rebalance?

The timing of your re-balancing should not be determined by your future expectations for the market.
by PolarBearMarket
Sun Nov 18, 2018 6:12 pm
Forum: Personal Investments
Topic: Do you angel invest? If so, how many investments do you typically do?
Replies: 5
Views: 776

Re: Do you angel invest? If so, how many investments do you typically do?

No. Angel investing does not align with my long-term strategy.
by PolarBearMarket
Sat Nov 17, 2018 8:03 am
Forum: Personal Investments
Topic: 401(k) allocations - target date fund plus bonds?
Replies: 11
Views: 641

Re: 401(k) allocations - target date fund plus bonds?

You haven't heard of it because the target date funds have bonds in them.

The sooner the target date is to now, the more bonds they have.
by PolarBearMarket
Tue Nov 13, 2018 11:50 am
Forum: Personal Investments
Topic: Bonds vs. Savings Account
Replies: 28
Views: 2423

Re: Bonds vs. Savings Account

Newbie question here - can a high interest savings account i.e. say 1.9% take the place of Bonds in a portfolio? Why or why not? In terms of giving yourself a buffer or peace of mind in a downturn let's say you have "X" amount of dollars in a high interest earning savings account by which this allo...
by PolarBearMarket
Tue Nov 13, 2018 10:52 am
Forum: Personal Investments
Topic: How much should Son and DIL put into Roth & Pre-tax 401k accounts...?
Replies: 21
Views: 1214

Re: How much should Son and DIL put into Roth & Pre-tax 401k accounts...?

Both should obviously hit the employer match at a minimum. That's just free money. Personally I would contribute as much as possible to the tax advantaged accounts, including 401(k). At that salary, it's entirely within range for your son to max out 401(k) and IRA contributions - if he has a goal of...
by PolarBearMarket
Mon Nov 12, 2018 10:13 am
Forum: Personal Investments
Topic: Vanguard Index Fund Admiral Shares Question
Replies: 25
Views: 3180

Re: Vanguard Index Fund Admiral Shares Question

VTSAX.

It simplifies your portfolio by providing broader diversification without requiring you to manage multiple equity funds.

Also, the majority of VTSAX market cap is S&P 500.
by PolarBearMarket
Sun Nov 11, 2018 9:09 am
Forum: Personal Investments
Topic: All extra savings into FDs 1.9%@12m
Replies: 5
Views: 749

Re: All extra savings into FDs 1.9%@12m

I have started to shift most of my spare monies to FDs. Fixed deposits here gives 1.9%@12m That feels a little low to me. Ally's regular savings account is 1.9% right now. In the recent month or so, with all the turbulence and quite a bit of drop in my ETFs, I thought it felt safer to put some of m...
by PolarBearMarket
Tue Nov 06, 2018 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Ally doesn't allow using accounts for business...where to go for free checking for wholesale biz?
Replies: 3
Views: 304

Re: Ally doesn't allow using accounts for business...where to go for free checking for wholesale biz?

If the checking account is setup in her personal name, she owns the account, not her company. At the stage where the line between your person and your business is blurry, that's not much of an issue - and is why many people with very small side businesses might just opt to use the same checking acco...
by PolarBearMarket
Mon Nov 05, 2018 11:40 pm
Forum: Personal Investments
Topic: Save tuition money or fund 401(k)?
Replies: 10
Views: 940

Re: Save tuition money or fund 401(k)?

So, should he discontinue the Roth 401(k) contributions and instead save cash for tuition, or should he keep shoveling as much money as possible into the 401(k) and take out a larger educational loan later? In that position, I would continue to take advantage of tax-advantaged accounts until attend...
by PolarBearMarket
Mon Nov 05, 2018 11:24 am
Forum: Personal Investments
Topic: Best Nasdaq Short ETF?
Replies: 5
Views: 375

Re: Best Nasdaq Short ETF?

In case OP is not a flame: If I were to take short position on a large portion of the market, it wouldn't be a direct position. I'd change my asset allocation to lean heavily toward cash / bonds, then re-balance with a stock-heavy AA at the same time that I would be covering my shorts. So as far as ...
by PolarBearMarket
Sat Nov 03, 2018 9:42 am
Forum: Personal Investments
Topic: Fully maxed out
Replies: 70
Views: 8521

Re: Fully maxed out

I finished the math I think correctly for those wondering. Scenario. MFJ - both W2 employees. Both over 50. Both have 401(k) plans w/ mega-back door. No company match. HDHP plan with HSA for family. Employee Deferrals 401(k) 49k (18.5 + 6 + 18.5 + 6) Employee AfterTax (Mega) 73k (55 - 18.5 + 55 - 1...
by PolarBearMarket
Thu Nov 01, 2018 1:58 pm
Forum: Personal Investments
Topic: Fully maxed out
Replies: 70
Views: 8521

Re: Fully maxed out

By the time 401(k)s and ROTHs are filled (usually by May), money goes to taxable Is there a benefit to front-loading 401k contributions? I understand time in the market, but I'd still be investing the same amount in 401k and taxable regardless, so there wouldn't be an overall difference in time in ...
by PolarBearMarket
Thu Nov 01, 2018 1:56 pm
Forum: Personal Investments
Topic: Too much risk in this retirement draw down plan?
Replies: 21
Views: 2094

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

I must be missing something: how does bulking the selloffs from your taxable account provide a sweet spot for Roth conversions? Sales of appreciated assets from a taxable account are subject to capital gains tax, not income tax. Roth conversions are subject to income tax. You can do both in the sam...
by PolarBearMarket
Thu Nov 01, 2018 1:08 pm
Forum: Personal Investments
Topic: Too much risk in this retirement draw down plan?
Replies: 21
Views: 2094

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

I must be missing something: how does bulking the selloffs from your taxable account provide a sweet spot for Roth conversions? Sales of appreciated assets from a taxable account are subject to capital gains tax, not income tax. Roth conversions are subject to income tax. You can do both in the sam...
by PolarBearMarket
Thu Nov 01, 2018 12:51 pm
Forum: Personal Investments
Topic: Too much risk in this retirement draw down plan?
Replies: 21
Views: 2094

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

I must be missing something: how does bulking the selloffs from your taxable account provide a sweet spot for Roth conversions? Sales of appreciated assets from a taxable account are subject to capital gains tax, not income tax. Roth conversions are subject to income tax. You can do both in the same...
by PolarBearMarket
Mon Oct 29, 2018 9:21 pm
Forum: Personal Investments
Topic: Help with Investing for Retirement
Replies: 21
Views: 1630

Re: Help with Investing for Retirement

Welcome to the forum. I am investing in the VYM and have 1 share of SCHD. Why is that? It sounds like you are sticking with one fund right now. How did you land on high divided equities? I was thinking since I am starting off, should I invest in a fund which is at low priced because the VYM $80+ is ...
by PolarBearMarket
Mon Oct 29, 2018 2:40 pm
Forum: Personal Investments
Topic: Employer 401(k) After-tax option
Replies: 3
Views: 411

Re: Employer 401(k) After-tax option

Agree it's a great option. After you contribute and before you conduct the mega-backdoor, make sure there is no risk of your employer failing the non-discrimination test (https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-the-plan-failed-the-401k-adp-and-acp-nondiscrimination-tests). This i...
by PolarBearMarket
Thu Oct 25, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Student loans vs House down payment
Replies: 16
Views: 1146

Re: Student loans vs House down payment

Am I missing something here? When there is student loan repayment assistance in play, it's almost always worth it to take advantage. OP is throwing away $1200/yr if they pay off the student loan early.
by PolarBearMarket
Tue Oct 23, 2018 8:50 pm
Forum: Personal Investments
Topic: An odd retirement scheme? [TIAA Yale retirement savings program]
Replies: 14
Views: 2818

Re: An odd retirement scheme?

1. Don't know that it's necessarily superior, but there's nothing wrong with it. 2. 60/40 seems reasonable 10 years out to me. 3. You're going to get different answers on that one. 1:1 is more aggressively international than most folks here would go. However, 1:1 is a more accurate reflection of the...
by PolarBearMarket
Tue Oct 23, 2018 6:27 pm
Forum: Personal Investments
Topic: Benefit of bonds
Replies: 12
Views: 1938

Re: Benefit of bonds

...bonds will tend to go up when stocks go down and vice versa... 1) Unfortunately, this hasn't really been true. This is the data from the Ibbotson 2015 SBBI Classic Yearbook, covering 1926-2015, for intermediate-term government bonds and large-company stocks; inflation-adjusted. If bonds had tend...
by PolarBearMarket
Tue Oct 23, 2018 2:44 pm
Forum: Personal Investments
Topic: Benefit of bonds
Replies: 12
Views: 1938

Re: Benefit of bonds

Psychology is certainly part of it. However, a tangible advantage bonds have when combined with a stock portfolio is inverse correlation. This reduces volatility in your portfolio, since bonds will tend to go up when stocks go down and vice versa. It also allows you to take advantage of market trend...
by PolarBearMarket
Fri Oct 12, 2018 12:47 pm
Forum: Personal Investments
Topic: Tax saving/investing tips for onetime bonus
Replies: 10
Views: 618

Re: Tax saving/investing tips for onetime bonus

0. Establish an emergency fund to your satisfaction 1. Contribute to your 401k up to any company match 2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. 3. Max HSA 4. Max Traditional IRA or Roth (or backdoor Roth) based on income level 5. Max 401k (if 401k ...
by PolarBearMarket
Thu Oct 11, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: 401k - more than one company in one year
Replies: 3
Views: 336

Re: 401k - more than one company in one year

It sounds like your first concern is just missing out on a potential employer match. In my experience, most employers that match 401(k) contributions match a portion of monthly pay. If you contribute $2,042/month to your 401(k) all year, you should be able to maximize the hypothetical match of your ...
by PolarBearMarket
Wed Oct 10, 2018 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: New business - expenses with zero revenue
Replies: 6
Views: 1013

Re: New business - expenses with zero revenue

It's possible to deduct the $75K against your personal income if you own the business. However, suddenly claiming $75K in business expenses with no revenue as a personal income deduction is a surefire way to trigger an IRS audit. Given this, it's worth consulting a tax professional familiar with sma...
by PolarBearMarket
Wed Oct 10, 2018 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 4011
Views: 743365

Re: What's Your Credit Card Rewards Strategy?

Would it make sense to have the CSR + CFU combo if I'd be spending 20k/year on the CFU for general spending but only about 3-4k on the CSR for travel and dining? I'm guessing this would be 40k UR points a year, but not sure how that would compare to the ~$500 per year cash back I normally get from ...
by PolarBearMarket
Wed Oct 10, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Additional post-tax 401(k) contribution
Replies: 7
Views: 764

Re: Additional post-tax 401(k) contribution

Make sure that the plan allows in-service rollovers of the after-tax contributions. If so, get the details: frequency allowed, any fees for the rollover, any restrictions. The law requires distributing a proportional share of earnings with the distribution. If done fairly frequently, this shouldn't...
by PolarBearMarket
Wed Oct 10, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Airline vs. non-airline travel card
Replies: 10
Views: 965

Re: Airline vs. non-airline travel card

In the business travel community, the go-to for comparing loyalty programs is https://thepointsguy.com/ If you will be staying at hotels, eating out, or frequently switching airlines, the most popular travel card with business travelers is the Chase Sapphire Reserve . The effective annual fee is $15...
by PolarBearMarket
Wed Oct 10, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: IRA to Roth conversion question
Replies: 5
Views: 415

Re: IRA to Roth conversion question

Hi all, My wife is 61 and I am 64, both now retired. We have enough after tax money to last 2.5 more years when we will take Social security ( wife will be 64 and I will be 67) and will start taking withdrawals from our IRAs. My wife earned about 30,000 this year before retiring. We have a chance t...
by PolarBearMarket
Wed Oct 10, 2018 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Newlywed IRA recharacterization & conversion
Replies: 3
Views: 300

Newlywed IRA recharacterization & conversion

Hi all - really appreciate the advice we've gotten on this forum. My wife and I married this year. We have both contributed the maximum to our IRAs already: I contributed to a Traditional IRA and conducted a backdoor Roth conversion, she contributed directly to a Roth IRA. Prior to our marriage, I w...
by PolarBearMarket
Tue Oct 09, 2018 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Additional post-tax 401(k) contribution
Replies: 7
Views: 764

Re: Additional post-tax 401(k) contribution

A lot of good information on the WIKI, link: https://www.bogleheads.org/wiki/After-tax_401(k) As I read the WIKI, only the GAINS in the account are taxed (as regular income, in the year of the gain). The contributions do not appear to be taxed. Check it out. Thanks David! Missed that page on the wi...
by PolarBearMarket
Tue Oct 09, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Additional post-tax 401(k) contribution
Replies: 7
Views: 764

Additional post-tax 401(k) contribution

Fairly straightforward question to ensure I'm thinking about things correctly: Currently I am maxing out my 401(k) and IRA contributions. My employer offers a additional after-tax savings plan of up to 10% of total income (up to the contribution maximum). Here's what this looks like in Vanguard. My ...
by PolarBearMarket
Thu Sep 13, 2018 2:28 pm
Forum: Personal Investments
Topic: Flipping a home Resident Physician flipping a home while in debt? help me weigh my pros and cons
Replies: 21
Views: 1602

Re: Flipping a home Resident Physician flipping a home while in debt? help me weigh my pros and cons

There's a few things that we haven't talked about here: -200K in federal loans at 5.8% interest (low minimum monthly payment) Assuming some of these are unsubsidized, this effectively makes your post-tax risk-free rate of return >5.8%. Most people, if they had that risk free rate, would not be flipp...