Search found 71 matches

by millennialmillions
Tue Nov 10, 2020 11:12 pm
Forum: Personal Investments
Topic: Best Order to Sell from Taxable
Replies: 8
Views: 1247

Re: Best Order to Sell from Taxable

NIIT also applies to short-term gains, so your marginal tax rate on them is 32.75%. Another reason to prefer taking long-term gains (once your short-term gains would exceed the offsetting losses) is that it reduces your future gains. If you can sell for a $3000 short-term gain or a $5000 long-term ...
by millennialmillions
Tue Nov 10, 2020 6:46 pm
Forum: Personal Investments
Topic: Best Order to Sell from Taxable
Replies: 8
Views: 1247

Re: Best Order to Sell from Taxable

I'm no expert(I'm an airline pilot), but if I needed to draw down a taxable account I would sell in this order.....anything with a loss, followed by long term gains and then short term gains. More importantly, what type of airplane are you getting? If it is for "business" you can get craz...
by millennialmillions
Tue Nov 10, 2020 6:43 pm
Forum: Personal Investments
Topic: Best Order to Sell from Taxable
Replies: 8
Views: 1247

Re: Best Order to Sell from Taxable

zorgs10 wrote: Tue Nov 10, 2020 6:22 pm I'd suggest a modification of your Strategy 1: instead of sorting by gain(loss) %, sort by tax_rate * gain %. This is the marginal tax cost for each lot.
Thank you, this is simple and effective. It doesn't factor in the carryover losses I had but ends up giving me the same result.
by millennialmillions
Tue Nov 10, 2020 1:10 pm
Forum: Personal Investments
Topic: Should I Rollover IRA to 401(k) - Backdoor Roth
Replies: 5
Views: 637

Re: Should I Rollover IRA to 401(k) - Backdoor Roth

Assuming your 401k has no other fees, I would definitely do this. The backdoor Roth space is valuable, and SSSYX tracks close enough to Vanguard Total Market. Here is the last 5 years from Portfolio Visualizer. SSSYX is in blue. https://i.ibb.co/Mhwqhsj/image.png The other thing to consider if you h...
by millennialmillions
Tue Nov 10, 2020 12:20 pm
Forum: Personal Investments
Topic: Best Order to Sell from Taxable
Replies: 8
Views: 1247

Best Order to Sell from Taxable

I am looking to sell some of my regular taxable portfolio to fund the purchase of an airplane. I want to do so in the most tax-efficient way possible. Searching the forum, the general recommended order is short-term losses -> long-term losses -> long-term gains -> short-term gains. However, that doe...
by millennialmillions
Mon Oct 12, 2020 8:01 pm
Forum: Investing - Theory, News & General
Topic: "Millennial Millionaire" a Gem
Replies: 20
Views: 4080

Re: "Millennial Millionaire" a Gem

I'm guessing that An avid entrepreneur and inventor, Blake is the founder of a protein beer company, a former professional sports bettor, a licensed pilot, creator of over 40 patents granted by the U.S. Patent Office, and a bestselling personal finance author. is the primary reason for his financia...
by millennialmillions
Mon Oct 12, 2020 7:43 pm
Forum: Investing - Theory, News & General
Topic: "Millennial Millionaire" a Gem
Replies: 20
Views: 4080

Re: "Millennial Millionaire" a Gem

Several months ago I was approached by Boglehead Blake Konrardy who asked me to write the Forward for his new book, Millennial Millionaire . I appreciated the honor and read Blake's pre-publication. His book is a winner and full of sound advice like this: ... Best wishes Taylor Taylor, thank you fo...
by millennialmillions
Sat Sep 12, 2020 10:11 am
Forum: Personal Consumer Issues
Topic: Anyone tried self-publishing with Amazon? If so can you share your experience?
Replies: 20
Views: 3135

Re: Anyone tried self-publishing with Amazon? If so can you share your experience?

Just self-published my first book with Amazon, and it's been a simple process. flaccidsteele has some excellent advice. I only have a couple additional tidbits to offer. One advantage of self-publishing is that you can test and change everything. Before publishing my book, I used Google and Facebook...
by millennialmillions
Thu Sep 10, 2020 9:08 am
Forum: Investing - Theory, News & General
Topic: "Active" aspects of passive investing
Replies: 16
Views: 1499

Re: "Active" aspects of passive investing

1) Deviate from neutral market cap weight by having home bias (Switzerland) and decrease the rest of the international developed markets in exchange for that. 2) Leading to more rebalancing and less automatic investments. I'm young, so cashflow rebalancing is enough right now. It's still very passi...
by millennialmillions
Tue Sep 08, 2020 11:32 am
Forum: Investing - Theory, News & General
Topic: "Active" aspects of passive investing
Replies: 16
Views: 1499

Re: "Active" aspects of passive investing

For me, choosing weights of international vs. U.S., whether to hold discrete funds in emerging markets, where to put funds (taxable vs. nontaxable), and trying to manage multiple accounts--all on my short list. These are all "active" decisions subject to manager (me) risk. How often do yo...
by millennialmillions
Mon Sep 07, 2020 9:31 pm
Forum: Investing - Theory, News & General
Topic: "Active" aspects of passive investing
Replies: 16
Views: 1499

"Active" aspects of passive investing

Bogleheads, Implementing a passive investment strategy can be very straightforward and hands-off if desired. Simply buy a Vanguard target retirement fund and watch your money grow over time. This is what I would recommend to anyone starting out. However, many of us want to optimize our investments m...
by millennialmillions
Mon Aug 10, 2020 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Insurance Companies
Replies: 10
Views: 1497

Re: Insurance Companies

Until you actually have a total loss claim and need to rebuild, any replacement cost will just be an estimate, regardless of if that estimate comes from your insurer or an independent appraiser. Most people simply go with the recommendation from the insurance company, which is enough in a total loss...
by millennialmillions
Sat Aug 08, 2020 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Insurance Companies
Replies: 10
Views: 1497

Re: Insurance Companies

Homeowners insurance industry insider here. 3. Earthquake insurance operates similar to homeowners insurance in that it doesn't matter what your home is worth, it matter what the replacement cost is. If you want full coverage, you should insure up to the replacement cost of your home. If you are in...
by millennialmillions
Fri Aug 07, 2020 10:03 pm
Forum: Personal Investments
Topic: Portfolio Critique for a 91 year old woman
Replies: 27
Views: 2678

Re: Portfolio Critique for a 91 year old woman

Sorry to hear of your father's death. That is a long list of funds. It sounds like you will be managing this portfolio going forward? If I were in your shoes, I would likely sell it all and invest the proceeds in the Vanguard LifeStrategy Income or Conservative Growth fund (based on your mom's goal ...
by millennialmillions
Fri Aug 07, 2020 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Insurance Companies
Replies: 10
Views: 1497

Re: Insurance Companies

Homeowners insurance industry insider here. 1. Talking to a broker/agent is fine, but you'll want to get quotes from multiple sources either way. One agent will only be able to quote you a small portion of your available options. Assuming you want to bundle your home, auto, and umbrella, all of the ...
by millennialmillions
Thu Aug 06, 2020 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Which job references to give?
Replies: 9
Views: 723

Re: Which job references to give?

I was in the same situation recently and didn't want to tip off my current employer that I was interviewing just yet. I ended up listing one former coworker who had previously left the company and one current coworker who I knew wouldn't share with my boss. Do you have either of those options availa...
by millennialmillions
Thu Aug 06, 2020 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: GEICO Umbrella: Significant Increase in Premium
Replies: 89
Views: 10054

Re: GEICO Umbrella: Significant Increase in Premium

GEICO has significantly increased the premium for my Umbrella insurance by 90% for the cars, no change for the house, and 60% for the 2nd million coverage. Insurance industry insider here. It seems you may be misunderstanding the premium increase. Umbrella insurance premiums are not split into cove...
by millennialmillions
Mon Aug 03, 2020 11:18 pm
Forum: Investing - Theory, News & General
Topic: What Would Be Your US/Int Equity Split If You Lived Outside US?
Replies: 58
Views: 2757

Re: What Would Be Your US/Int Equity Split If You Lived Outside US?

I’m currently 70/30 U.S./international, selected based on long-term historical performance and volatility.

If I lived outside the U.S., I would likely eliminate my home bias and hold the market cap of around 56/44.
by millennialmillions
Tue Jul 28, 2020 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Ultra high deductible auto/home/umbrella insurance?
Replies: 34
Views: 2134

Re: Ultra high deductible auto/home/umbrella insurance?

Over your lifetime you are already paying $75k or more in insurance premiums. So you could have foregone insurance entirely and still came out better despite your "horror story". That $75,000 was part of the mandatory medical coverage. I spent about $20 more then required to get $100,000 ...
by millennialmillions
Tue Jul 28, 2020 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Ultra high deductible auto/home/umbrella insurance?
Replies: 34
Views: 2134

Re: Ultra high deductible auto/home/umbrella insurance?

OP if you own your premises free and clear you aren't required to have property insurance. This is a good suggestion. I own my condo free and clear. My understanding is the insurance just covers everything from the "paint inside". All that is worth $50-100k. I presume if I drop home owner...
by millennialmillions
Sun Jul 26, 2020 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax strategies
Replies: 7
Views: 1787

Re: Tax strategies

When you say you are maxing out your individual 401ks, does that include both employee and employer contributions? That would be $57,000 each. You said high income, so you may be able to hit that via the standard profit sharing contribution, but if not, you could look into setting up a solo 401k wit...
by millennialmillions
Sun Jul 26, 2020 10:35 pm
Forum: Personal Investments
Topic: Looking for good HSA provider to transfer to
Replies: 14
Views: 870

Re: Looking for good HSA provider to transfer to

Question: Can I simple open an account with Fidelity and transfer the funds from my current HSA account to this account without triggering any tax or other legal issues? I don't think my employer will agree to send the money directly to Fidelity just only for me, as all employees are with one finan...
by millennialmillions
Wed Jul 01, 2020 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity Check: Career Gap Year
Replies: 40
Views: 2596

Re: Sanity Check: Career Gap Year

I'm surprised the responses thus far are so pessimistic about this idea. You are in an amazing financial position. Even assuming your expenses are understated a bit, you have a paid off house and an investment portfolio that, left untouched, will fully fund your retirement when you're in your 60's....
by millennialmillions
Wed Jul 01, 2020 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity Check: Career Gap Year
Replies: 40
Views: 2596

Re: Sanity Check: Career Gap Year

I'm surprised the responses thus far are so pessimistic about this idea. You are in an amazing financial position. Even assuming your expenses are understated a bit, you have a paid off house and an investment portfolio that, left untouched, will fully fund your retirement when you're in your 60's. ...
by millennialmillions
Sat Jun 06, 2020 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford 600k house?
Replies: 95
Views: 9270

Re: Can we afford 600k house?

I would say no. You should definitely run the numbers yourself, but here is why I say no: Monthly: Total after-tax pay (assuming 25% combined federal/state effective tax rate): $11,250 Housing expenses: $3,500 (including $6,000 annual maintenance, low for a $600k house) Day care for 2 children: $3,3...
by millennialmillions
Fri Jun 05, 2020 10:23 pm
Forum: Investing - Theory, News & General
Topic: Anyone not bother with Tax Loss Harvesting?
Replies: 129
Views: 9292

Re: Anyone not bother with Tax Loss Harvesting?

I disagree with most of the posts so far. Tax loss harvesting makes a significant difference, and I think it is actually under-discussed relative to its impact. This study from First Quadrant analyzes the impact of tax loss harvesting on a portfolio’s value over time. They simulated holding the S&am...
by millennialmillions
Sun May 31, 2020 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Potentially Take Job Offer or Not
Replies: 17
Views: 1673

Re: Potentially Take Job Offer or Not

I agree with the others that you have identified a red flag that would give me pause switching to the new job. However, I don't believe you can describe your current job as "stable" when you recently received a 40% pay cut. I think you are forcing a false dichotomy of current job vs. this ...
by millennialmillions
Sun May 17, 2020 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Three years of emergency fund too much in this time?
Replies: 39
Views: 4658

Re: Three years of emergency fund too much in this time?

Thanks for the link, interesting read. I am curious why from 2007-2008, both"No EF Net Worth" and "EF Net Worth" decreased at the similar rate? Shouldn't the "No EF Net Worth" decrease at the lower rate than the other one? I am missing something? Depending on how curio...
by millennialmillions
Sun May 17, 2020 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Three years of emergency fund too much in this time?
Replies: 39
Views: 4658

Re: Three years of emergency fund too much in this time?

Yes, three years of emergency fund is too much. At that point, it is no longer an emergency fund and is instead a significant portion of your asset allocation. It's fine if you determine that an asset allocation with cash is appropriate for your risk tolerance, but I feel calling it an "emergen...
by millennialmillions
Wed May 06, 2020 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Home insurance up 40%, stay w/same company due to possible roof issues?
Replies: 22
Views: 1611

Re: Home insurance up 40%, stay w/same company due to possible roof issues?

I work in the homeowners insurance industry. I assume the recommendation to wait until after you replace the roof to switch companies is because other companies will not write you a policy with the current condition. Or they may issue a policy, perform an inspection, and then cancel the policy, whic...
by millennialmillions
Fri Apr 24, 2020 6:43 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

Many investors are better off without an emergency fund, instead investing all extra cash according to their typical asset allocation. Assuming a large enough portfolio, this strategy can mitigate the downside risk by selling investments to cover expenses in case of emergency. I am re-reading this ...
by millennialmillions
Fri Apr 17, 2020 4:25 pm
Forum: Personal Consumer Issues
Topic: Frugal quarantine habits to keep
Replies: 87
Views: 8617

Re: Frugal quarantine habits to keep

Weekly group Happy Hour suspended. Not holding my breath for a restart real soon but I do miss it. I think we will be staying home a lot more until hopefully a vaccine is available. If no vaccine it will be 3 years or so before herd immunity is widespread enough to make it safer to be in crowds for...
by millennialmillions
Fri Apr 17, 2020 1:45 pm
Forum: Personal Consumer Issues
Topic: Frugal quarantine habits to keep
Replies: 87
Views: 8617

Re: Frugal quarantine habits to keep

Far less use of toilet paper 8-) Amazing how I just used to pull off squares and squares. No longer do I unthinkingly just rip off a handful. I've heard bidet sales are way up, but I suspect it will be a while before the saving on toilet paper offsets the bidet cost. Hmm, you've given me some resea...
by millennialmillions
Fri Apr 17, 2020 10:00 am
Forum: Personal Consumer Issues
Topic: Frugal quarantine habits to keep
Replies: 87
Views: 8617

Re: Frugal quarantine habits to keep

We also did a home gym, but got everything from Rogue, which was a little more than $360. Consider it a prepayment of a few years' of gym dues. We also got hair clippers so will probably get haircuts at home from now on. I also got hair clippers for the first time (managed to snag them on Ebay befo...
by millennialmillions
Fri Apr 17, 2020 7:57 am
Forum: Personal Consumer Issues
Topic: Frugal quarantine habits to keep
Replies: 87
Views: 8617

Frugal quarantine habits to keep

Like it or not, the pandemic and quarantine have forced frugal habits on all of us. According to the National Bureau of Economic Research , overall consumer spending is down over 50%. On the bright side, some of these frugal habits will be worth keeping after returning to business as usual. The bigg...
by millennialmillions
Sun Apr 12, 2020 12:49 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

1. Is losing a job for just two years over a twenty year period truly a "worst case scenario"? 2. What about other emergencies like a major health expense that may have contributed to loss of job? If you're serious about not having an emergency fund, I'd like to see a better put argument ...
by millennialmillions
Fri Apr 10, 2020 4:37 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

User 7eight9 just found an error in my calculations which makes the difference smaller than I originally concluded. In the corrected worst-case scenario, the no-EF investor comes out ahead by a net worth of $100,000 (6%), not 20% as previously stated. So that does hurt my argument a bit. I have upda...
by millennialmillions
Fri Apr 10, 2020 2:21 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

I believed this too before I saw the numbers . In a case with a couple financial emergencies, the investor with no EF had a net worth that was 20% higher. In a case without financial emergencies, the no-EF investor came out 3% higher. I believe a 3-20% difference in net worth is substantial enough ...
by millennialmillions
Fri Apr 10, 2020 10:41 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

There are three key flaws with this analysis... First, the analysis follows on the conceit that an investor would have a static asset allocation in the investment portfolio, regardless of whether the investor has an emergency fund... Thanks for the response. [...snip...] Addressing your other point...
by millennialmillions
Fri Apr 10, 2020 10:31 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

There comes a point where the negative effects of cash drag are a rounding error. Not only do you not need an EF if your portfolio large enough, there also comes a point where a little extra cash lying around doesn't matter much. This. A nice way to put it. Cheers I believed this too before I saw t...
by millennialmillions
Fri Apr 10, 2020 9:10 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

If you seriously believe the stock market you are inbested in could drop 100%, or even 87%, you should not be invested. I mean, that's insane. You're willing to risk 100% loss of that part of your portfolio? Why don't you just whack it all in options? It did happen. The Dow fell almost 90% from 381...
by millennialmillions
Fri Apr 10, 2020 9:05 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

By "giving away" more of it in taxes (from needing to liquidate in times of uncertainty when my tax rates are SKY HIGH) because I did not allocate enough cash into an EM, I do, in fact, get to keep less of it than if I choose to liquidate later when the equities are worth more and my tax ...
by millennialmillions
Thu Apr 09, 2020 7:42 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

Third, the analysis relies on a historical period containing two crashes with relatively quick stock rebounds. Try running the analysis again during the 1968-1980 period and let me know how it goes. Edit: changed the starting portfolio to $120,000 rather than $200,000 - results below updated to ref...
by millennialmillions
Thu Apr 09, 2020 6:30 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

There are three key flaws with this analysis. Before getting into that, though, I'm curious where you find "many recent topics explaining why everyone needs an emergency fund." I have participated in many recent topics, and it has generally been one reasonable point of view that investors...
by millennialmillions
Thu Apr 09, 2020 3:57 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

If there is an extended "Trading Halt" having a sizable portfolio won't help if you can't liquidate. Oh, you say an extended "Trading Halt" isn't a likely occurrence? Neither was our current situation two months ago. An emergency fund provides cash when other regular expected so...
by millennialmillions
Thu Apr 09, 2020 3:29 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

But if you have a sizable portfolio, the drag from having one doesn't matter enough to fuss about. The Achilles heel of any attempt to simulate or optimize anything about emergency funds is the lack of any good, widely-known statistical data on the size and frequency of "emergencies..." a...
by millennialmillions
Thu Apr 09, 2020 12:42 pm
Forum: Investing - Theory, News & General
Topic: Deploying your emergency fund to buy stocks? Think again.
Replies: 187
Views: 31016

Re: Deploying your emergency fund to buy stocks? Think again.

No matter how bullish you are, you need to keep enough cash on hand to make sure you are NOT forced to sell cheap. It's better to sell for strategic reasons and on your own terms than to have the terms dictated to you by circumstances. This is something that cuts across all investment philosophies....
by millennialmillions
Thu Apr 09, 2020 12:36 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

The same logic can be used to argue that those with more net worth should have a higher stock allocation, because they can afford to lose more without going broke. People get flustered about this idea because it implies you might have to sell stock after a downturn if you ever do need to access cas...
by millennialmillions
Thu Apr 09, 2020 12:33 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

There are many ways to skin the EM cat, you gave your valid personal opinion, but there are also home dynamics that come into play as well. We have our EM in a joint account. My wife wanted all cash so we compromised and we have 9months in MM, while the other 3 months are on Total World ETF. This i...
by millennialmillions
Thu Apr 09, 2020 10:54 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 32740

Re: If you have a sizable portfolio, you don't need an emergency fund

Just FYI: There are a ton of existing threads on the difference between an "emergency strategy" vs an "emergency fund" and that you don't need a segregated EF once your portfolio gets big enough. We haven't had a separate EF in years due to portfolio size and how many years of l...