Search found 1226 matches

by AndroAsc
Sun Feb 02, 2020 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: HR Block asking for the NAME of the Foreign Country for Foreign Tax Credit?
Replies: 4
Views: 809

Re: HR Block asking for the NAME of the Foreign Country for Foreign Tax Credit?

livesoft wrote: Sun Feb 02, 2020 8:41 pm It is helpful to read the text provided by HRBlock and click on LEARN MORE

Image
That didn't show up or I missed it. I came up during their accuracy review, and this got flagged.
by AndroAsc
Sun Feb 02, 2020 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: HR Block asking for the NAME of the Foreign Country for Foreign Tax Credit?
Replies: 4
Views: 809

HR Block asking for the NAME of the Foreign Country for Foreign Tax Credit?

This seems to be new in 2019...

H&R Block is asking me to enter the NAME of the Foreign Country, because I entered Foreign Tax Credit (from various international ETFs). What should I put there?
by AndroAsc
Sun Jan 19, 2020 9:54 pm
Forum: Investing - Theory, News & General
Topic: Holding too much emergency fund cash...
Replies: 47
Views: 5826

Re: Holding too much emergency fund cash...

Is anyone in the same boat as me? I feel like I'm holding too much emergency fund cash. I live in the a HCOL so the absolute value is high. Originally, I wanted to do 2 yrs emergency fund, but right now I've compromised at 18mth and $40k, and that's like the bare min to live on. I don't have a lot of assets, and this is a sizeable amount to be in cash. I do work in a very volatile industry, and if things go poorly [edited by Moderator Misenplace] , it will be very very very bad, hence I need >1 yr. I'm wondering what others have done... I no longer keep a separate EF as our taxable, liquid assets make it a moot point. But I keep 2.5 years in cash equivalents in my taxable account. Combined with taxable bonds in that account, there is about...
by AndroAsc
Sun Jan 19, 2020 9:46 pm
Forum: Investing - Theory, News & General
Topic: Holding too much emergency fund cash...
Replies: 47
Views: 5826

Re: Holding too much emergency fund cash...

Is anyone in the same boat as me? I feel like I'm holding too much emergency fund cash. I live in the a HCOL so the absolute value is high. Originally, I wanted to do 2 yrs emergency fund, but right now I've compromised at 18mth and $40k, and that's like the bare min to live on. I don't have a lot of assets, and this is a sizeable amount to be in cash. I do work in a very volatile industry. I'm wondering what others have done... Our goal is $60,000 for 2 years of living expenses. I have invested into 33% into Wellesley Income Fund, 33% into CDs and 33% into HYS. Order of liquidation is HYS --> 12 month rolling CDs --> Wellesley. Keeps up pretty well with inflation. Keep in mind that your emergency fund is an insurance policy first and inve...
by AndroAsc
Sun Jan 19, 2020 9:19 pm
Forum: Investing - Theory, News & General
Topic: Why have so many people forgotten about 19% drop 13 months ago?
Replies: 54
Views: 7793

Re: Why have so many people forgotten about 19% drop 13 months ago?

There was nearly a 20% drop a year ago? Honestly, I did not know. It wasn't creating enough of a doom and gloom news.
by AndroAsc
Sun Jan 19, 2020 9:18 pm
Forum: Investing - Theory, News & General
Topic: Holding too much emergency fund cash...
Replies: 47
Views: 5826

Holding too much emergency fund cash...

Is anyone in the same boat as me?

I feel like I'm holding too much emergency fund cash. I live in the a HCOL so the absolute value is high.

Originally, I wanted to do 2 yrs emergency fund, but right now I've compromised at 18mth and $40k, and that's like the bare min to live on.

I don't have a lot of assets, and this is a sizeable amount to be in cash. I do work in a very volatile industry, and if things go poorly [edited by Moderator Misenplace], it will be very very very bad, hence I need >1 yr.

I'm wondering what others have done...
by AndroAsc
Tue Jan 14, 2020 7:14 pm
Forum: Personal Investments
Topic: Just Accidentally Contributed to Roth IRA (over income limit). Now what?
Replies: 3
Views: 496

Re: Just Accidentally Contributed to Roth (over income limit). Now what?

retiredjg wrote: Tue Jan 14, 2020 7:08 pm Do not withdraw it.

Call your custodian and have them re-characterize the contribution to tIRA. It will be like you put it in tIRA from the get go. Then do your conversion as planned.

The re-characterization must be noted on your taxes. Not sure where. Might be schedule 1?
So it would go as:
Initial Roth IRA contribution -> Recharacterized to Trad IRA -> Convert to Roth IRA? I thought recharacterization is now irreversible from 2019 forward?

Is this allowed?
by AndroAsc
Tue Jan 14, 2020 6:59 pm
Forum: Personal Investments
Topic: Just Accidentally Contributed to Roth IRA (over income limit). Now what?
Replies: 3
Views: 496

Just Accidentally Contributed to Roth IRA (over income limit). Now what?

Crap... I was going to do a backdoor Roth IRA, but I accidentally contributed new money to my Roth IRA. Additional complication is this contribution is for CY 2019, and yes my AGI for CY 2019 is over the income limit.

How do I fix this? Do I just withdraw what I put in?
by AndroAsc
Fri Jan 03, 2020 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: For those who got out of tech industry (voluntarily or involuntarily)..
Replies: 109
Views: 10085

Re: For those who got out of tech industry (voluntarily or involuntarily)..

dcabler wrote: Fri Jan 03, 2020 11:37 am - I have 3 former colleages who did the coursework and became CFP's. All seem to still be happy with that choice.
I'm curious about the CFP path, as I've always had an interest in finance. What do they become after getting a CFP? Financial planner? Financial adviser? And is it as simple as getting the CFP certification and customers come in? Do you join a CFP firm? Go solo?
by AndroAsc
Fri Jan 03, 2020 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: For those who got out of tech industry (voluntarily or involuntarily)..
Replies: 109
Views: 10085

Re: For those who got out of tech industry (voluntarily or involuntarily)..

I'm in tech, and worried about ageism. I'm told that after age 40, you are too old, and for late comers like me, it's not a rosy path.

My plan is to grow my career as aggressively as possible in the next 10 years, getting entry in a top-tier FAAANGMULA company, and setting ridiculous goals like $500k-$1mil/yr when I hit age 40, such that when I'm let go, I can downgrade to a lower paying job if necessary (but hopefully NOT)
by AndroAsc
Fri Jan 03, 2020 8:13 pm
Forum: Investing - Theory, News & General
Topic: Do Home Prices Really Drop During a Recession, or was 2009 a Fluke?
Replies: 42
Views: 3970

Re: Do Home Prices Really Drop During a Recession, or was 2009 a Fluke?

RickBoglehead wrote: Fri Jan 03, 2020 8:01 pm Planning on making a profit on a house is flawed logic.

If you spend less than rent, you win.
It's not trying to make a profit, it's waiting for a good discount.
by AndroAsc
Fri Jan 03, 2020 7:53 pm
Forum: Investing - Theory, News & General
Topic: Do Home Prices Really Drop During a Recession, or was 2009 a Fluke?
Replies: 42
Views: 3970

Re: Do Home Prices Really Drop During a Recession, or was 2009 a Fluke?

I believe 2009 really was an unprecedented event. Part of the whole reason the bubble blew up so big was that "housing never goes down" was the selling point. The other thing to consider is how bad the housing crash was. I cannot speak for Seattle, but in Florida there are homes that have still not recovered to their bubble heights. I am talking about homes on sale now for $200-250k that sold for more than $300k in 2005. Housing may dip in the next recession due to lack of demand, but it will not likely be anything like what was seen last time around. If the assumption that recession = home price crash is flawed, what metrics or methodology would you approach to decide when it is a "good time" to purchase a home? Home p...
by AndroAsc
Fri Jan 03, 2020 7:37 pm
Forum: Investing - Theory, News & General
Topic: Do Home Prices Really Drop During a Recession, or was 2009 a Fluke?
Replies: 42
Views: 3970

Do Home Prices Really Drop During a Recession, or was 2009 a Fluke?

Yet another rent increase from landlord this year, 7%... I'm more on the renter side, because I like the flexibility that I can uproot myself and move if I ever need to. I'm also telling myself I will wait for the next recession, wait for home prices to drop (discount/sales!) then considering purchasing it. However, I'm not fully convinced that will be the case and the 2009 recession could be a fluke. I use the Seattle market as that is relevant to me. I managed to find this home price index that tracks it since the 1990s: https://fred.stlouisfed.org/series/ATNHPIUS53033A From 2007 to 2011, the home price index only dropped by 25%. From 2008 to 2009 it was only a 10% drop. The stock market dropped over 50% during this time. In the dot.com r...
by AndroAsc
Fri Jan 03, 2020 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Medical school at 34 - Is this financial suicide?
Replies: 116
Views: 14196

Re: Is this financial suicide?

Don't. Doctor's income are extremely late-weighted. Considering your age, it IS financial suicide.

You can run projections for yourself and check.

Would a better alternative to train for one of those Physician Assistant or Nurse Practitioner (or whatever they are called, basically "Doctor light" without the ridiculous training times and tuition fees).

Passion is overrated btw. Passion will not feed you when you are negative net worth and when you can't afford things.
by AndroAsc
Fri Jan 03, 2020 11:41 am
Forum: Investing - Theory, News & General
Topic: Why has the economy not crashed yet?
Replies: 36
Views: 3055

Why has the economy not crashed yet?

I'm not a market timer, and generally don't listen to financial news...

But I'm getting worried the market hasn't crashed yet. It's been long overdue by now, yes?
by AndroAsc
Fri Jan 03, 2020 11:28 am
Forum: Investing - Theory, News & General
Topic: Notes on International small-cap as of 2019
Replies: 51
Views: 6485

Re: Notes on International small-cap as of 2019

Isn't DLS and DGS a good proxy for international small-cap value?
by AndroAsc
Wed Jan 01, 2020 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Strategies for Dealing with A Job Layoff
Replies: 28
Views: 2610

Re: Strategies for Dealing with A Job Layoff

There is always the fear in my head that I will be laid off from my job. Does someone have a step by step action plan on what you would do immediately following a lay-off. This is my plan initially, but I’d like to hear from y’all on something better. 1. Immediately file for unemployment benefits / check with HR on any PTO payout etc. 2. Start Applying for jobs / Polishing resume / connect with LinkedIn contacts / prior managers etc. 3. Begin looking into options to produce cash flow such as: 1.Look into refinancing home to a 30 year. I currently owe 100k on a home worth $300k. 2. Liquidate Roth contribution portion 3. Home equity loan. 4. Apply for jobs at service sector such as fast food etc. Any other suggestions? I’m just trying to pre...
by AndroAsc
Wed Jan 01, 2020 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Financially Optimal Career Path: Investment Banker vs Management Consultant vs Software Engineer vs Doctor vs Lawyer
Replies: 46
Views: 8151

Re: Financially Optimal Career Path: Investment Banker vs Management Consultant vs Software Engineer vs Doctor vs Lawyer

I agree that a 20-30 year analysis may be better, but if you look at the methodology section, the author mentioned that after 10 years, public data points are harder to come by and the variance is larger. Also, in 10 years: - The management consultant path assumes the person reaches Principal, the level before Partner (highest level in this field) - The IB path assumes the person reaches Director, the level before Managing Director (highest level in this field) - The SWE path assumes the person reaches Staff, which is 2 levels before Principal (using Google scale, which is almost the highest level in this field, the next being Distinguished Engineer / Fellow but there's only a handful of those). Not that familiar with Law or Medicine paths....
by AndroAsc
Sun Dec 29, 2019 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Financially Optimal Career Path: Investment Banker vs Management Consultant vs Software Engineer vs Doctor vs Lawyer
Replies: 46
Views: 8151

Re: Financially Optimal Career Path: Investment Banker vs Management Consultant vs Software Engineer vs Doctor vs Lawyer

The numbers for software engineers are somewhat accurate, considering you are talking about the top percentiles (I am in the field). However, in order to get those numbers you are “forced” to live in the Bay Area basically (where run-down houses are 2M+), or maybe Seattle, so that’s another point to consider, whereas a doctor is getting paid that much even in a LCOL (source: I currently live in the Bay Area). Also, while I am enjoying milking those compensations right now, I am living very frugally and saving as much as I can because I am not at all convinced engineers will keep being paid that much in the next decade, the barrier of entry is so low and at some point the market will get saturated, there is no BAR exam or AMA association to...
by AndroAsc
Sun Dec 29, 2019 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Financially Optimal Career Path: Investment Banker vs Management Consultant vs Software Engineer vs Doctor vs Lawyer
Replies: 46
Views: 8151

Financially Optimal Career Path: Investment Banker vs Management Consultant vs Software Engineer vs Doctor vs Lawyer

Some kind soul did a 5-way analysis for financially optimal career path for high W-2 income jobs. This assumes top-tier (so >80th percentile).

https://docs.google.com/spreadsheets/d/ ... edit#gid=0

I found it very insightful, and wished I had this information when I was younger. Will be useful to younger members and those with kids for planning purposes.

Methodology and references are also in the other tabs.

Please DO NOT post your comments on subjective issues like "money is not everything". Keep discussion to factual numbers.
by AndroAsc
Sun Sep 29, 2019 10:38 pm
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 7006

Re: Why not use Margin Loan as eFund?

MotoTrojan wrote: Sun Sep 29, 2019 12:45 pm 0% APR credit card(s) would be a better primary option imho.
In the last recession, many banks stopped offering 0% APR and many banks cut existing credit line limits.

There was a community of 0% APR floaters, basically get $100k-1mil credit, do BT to savings that was yielding 5-6% APY, and pay off before the promo period ends. When the 2008 crash came, this entire game died.
by AndroAsc
Sun Sep 29, 2019 10:35 pm
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 7006

Re: Why not use Margin Loan as eFund?

alex_686 wrote: Sun Sep 29, 2019 8:11 am I used to work the margin desk. I would recommend using margin to handle cash flow issues but not as a emergency fund. Margin loans tend to have high/higher interest rates than alternatives.

As a rule of thumb I would not hold a margin loan longer than 90 days.
What alternatives are there? I don't believe in owning homes so the HELOC option is out.
by AndroAsc
Sun Sep 29, 2019 7:34 am
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 7006

Re: Why not use Margin Loan as eFund?

I don't know much about margin borrowing, but in a perfect storm like 2008 couldn't this plan turn around to bite you? Imagine: 0) Assume you plan to use margin to fund your e-fund. 1) You lose your job due to a widespread recession, so you need to live off your emergency fund for a while. 2) Stocks crash at the same time, leaving your stock portfolio 30-50% smaller, possibly pushing you under margin requirements but certainly limiting the amount you can borrow. 3) Due to the recession/market crash, brokerages restrict margin lending. (I believe this happened in 2008?) Result: you no longer have an e-fund and have to sell securities at depressed prices. Of course this depends on your asset allocation—if you're 60/40 you might be able to ju...
by AndroAsc
Sat Sep 28, 2019 11:15 pm
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 7006

Re: Why not use Margin Loan as eFund?

Most people don't have a $100,000 taxable account, especially when they're at the phase of their life where they most need an emergency fund. By the time most people have a $100,000 taxable account, you'll find many people saying they no longer need an emergency fund at all. Let's assume for discussion sake, the person has at least a $100k taxable account. Is there anything wrong in my analysis in using margin loan as eFund? And to be clear, this eFund is for stuff like unemployment, major medical, and not small misc things like car repair or a new computer... I'm not all that for using taxable as eFund, as murphy law states that you will be forced to liquidate when the market crashes. But in this case, it seems that you don't need to liqu...
by AndroAsc
Sat Sep 28, 2019 11:03 pm
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 7006

Why not use Margin Loan as eFund?

Discovered a new thing today, and now I'm trying to figure out why all our conventional eFund advice is to sock it in savings/CDs/etc.... One of the highest APY for online savings is 2.4% APY, which is where my eFund will be. Interactive Brokers offer margin loans for is 3.35% (I assume this is APR rate?), which is only +1% higher than savings account. This is for a $50k loan. Margin loans are callable, yes. From IB: Margin Loan + Margin Deposit = Market Value of Security Margin Deposit >= Margin Requirement Regulation T: US rules governing margin accounts. Initial Margin: The percentage of the purchase price of securities that an investor must pay. Reg T calls for initial margin of up to 50%. Maintenance Margin: The minimum amount of equit...
by AndroAsc
Sat Sep 28, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 924
Views: 207715

Re: Interactive Brokers (Best Kept Secret)

I'm trying to understand this margin loan thing from a few posts back. Is it possible to use it as an emergency fund? Is the loan callable?
by AndroAsc
Sat Sep 28, 2019 10:14 pm
Forum: Investing - Theory, News & General
Topic: How many Bogleheads do Real Estate Investing (not REITs)
Replies: 16
Views: 2880

Re: How many Bogleheads do Real Estate Investing (not REITs)

I know many Bogleheads do not do Real Estate Investing, I'm with you on that. Maybe I've hanging out with the "wrong crowd" recently, but I'm starting to think more about Real Estate Investing. Btw, to define RE, I'm talking about stuff like rental properties, NOT your home. I'll start with cons first: 1) Illiquid investment 2) Lots of hidden costs (buying, selling, maintenance, repairs, etc.) 3) More subject to black swan events (squatter tenant, massive repair bills, etc.) 4) More work involved In short, it's a bad investment relative to mutual funds because of the risks and work involved. BUT... there's one thing RE can do that normal mutual funds cannot, which is to borrow money for it. Admittedly, this makes it even more ris...
by AndroAsc
Sat Sep 28, 2019 10:00 pm
Forum: Investing - Theory, News & General
Topic: How many Bogleheads do Real Estate Investing (not REITs)
Replies: 16
Views: 2880

Re: How many Bogleheads do Real Estate Investing (not REITs)

I know many Bogleheads do not do Real Estate Investing, I'm with you on that. Maybe I've hanging out with the "wrong crowd" recently, but I'm starting to think more about Real Estate Investing. Btw, to define RE, I'm talking about stuff like rental properties, NOT your home. I'll start with cons first: 1) Illiquid investment 2) Lots of hidden costs (buying, selling, maintenance, repairs, etc.) 3) More subject to black swan events (squatter tenant, massive repair bills, etc.) 4) More work involved In short, it's a bad investment relative to mutual funds because of the risks and work involved. BUT... there's one thing RE can do that normal mutual funds cannot, which is to borrow money for it. Admittedly, this makes it even more ris...
by AndroAsc
Sat Sep 28, 2019 9:10 pm
Forum: Investing - Theory, News & General
Topic: How many Bogleheads do Real Estate Investing (not REITs)
Replies: 16
Views: 2880

How many Bogleheads do Real Estate Investing (not REITs)

I know many Bogleheads do not do Real Estate Investing, I'm with you on that. Maybe I've hanging out with the "wrong crowd" recently, but I'm starting to think more about Real Estate Investing. Btw, to define RE, I'm talking about stuff like rental properties, NOT your home. I'll start with cons first: 1) Illiquid investment 2) Lots of hidden costs (buying, selling, maintenance, repairs, etc.) 3) More subject to black swan events (squatter tenant, massive repair bills, etc.) 4) More work involved In short, it's a bad investment relative to mutual funds because of the risks and work involved. BUT... there's one thing RE can do that normal mutual funds cannot, which is to borrow money for it. Admittedly, this makes it even more risk...
by AndroAsc
Sun Sep 22, 2019 12:17 am
Forum: Investing - Theory, News & General
Topic: Home as Investment: Would Negative Interest Rate Makes Sense?
Replies: 5
Views: 1108

Home as Investment: Would Negative Interest Rate Makes Sense?

I know many Bogleheads (including myself) don't see homes as an investment. Too much hidden costs, and work.

But... if we have negative interest rates, that means the banks pay us each month to own a mortgage right? Would that change your opinion on homes as an investment, and has anyone done the math to figure out what the negative interest rate would need to be for it to "make sense", since there are still costs associated like property tax, upkeep, etc...
by AndroAsc
Sat Sep 21, 2019 8:19 pm
Forum: Investing - Theory, News & General
Topic: Swedroe Advocates: LENDX, SRRIX, AVRPX, QRPRX/QSPRX
Replies: 119
Views: 13150

Swedroe Advocates: LENDX, SRRIX, AVRPX, QRPRX/QSPRX

Read Larry Swedroe's new book "Your Complete Guide to a Successful & Secure Retirement".

It's interesting that he advocates for a bunch of alternative investments:
- Alternative Lending (LENDX)
- Reinsurance (SRRIX)
- Variable Risk Premium (AVRPX)
- Alternative Risk Premium (QRPRX/QSPRX).

I've definitely seen all the AQR posts on Bogleheads, especially how it's flopping big time. AQR aside... not going down that rabbit hole...

LENDX, SRRIX, AVRPX gets less attention here. What do you guys think about the non-AQR alternatives? Is it accessible to DIY investors? They seem to be from Stone Ridge fund company that appears to favor institutional investors? :(
by AndroAsc
Fri Sep 20, 2019 9:45 pm
Forum: Investing - Theory, News & General
Topic: eFund: CD Ladder vs High-Yield Savings vs Money Market Fund
Replies: 5
Views: 1305

eFund: CD Ladder vs High-Yield Savings vs Money Market Fund

For my first-level emergency fund, I have the following options: 1) CD Ladder 2) High-Yield Savings 3) Money Market Fund Objective is to minimize effort and maximize return. But I'm also wary that in the intermediate-term future (next 5yrs), I may need to dip into my emergency fund for reasons out of my control (e.g. layoffs). Initially, I was going to do a rolling 3-yr CD ladder. Rates at Ally/Discover/SallieMae are about 2.35-2.45% APY. However, they all have steep penalties for early withdrawal, and even the best for Ally is 60-90 days. I consider the probability of dipping into my emergency fund to be higher than usual for the next 0-5 years. So, I thought of moving to Vanguard Prime MMF. SEC yield is 2%, which is slightly better than A...
by AndroAsc
Sun Aug 11, 2019 1:51 am
Forum: Personal Finance (Not Investing)
Topic: Chubb/PURE vs "normal" insurance (lifelong renter)
Replies: 3
Views: 1497

Chubb/PURE vs "normal" insurance (lifelong renter)

Recently learned about Chubb/PURE and other "high-end" insurance policies that seems to give less grief when it comes to claim time.

I'm a cheapo using GEICO for auto/home and $3mil Umbrella. Should I be switching? I don't want to deal with nonsense that when I need the payout, especially for umbrella GEICO doesn't pay. I'm also a lifelong renter too, and don't plan on getting a home. My focus would be on the umbrella coverage and it needs to appear when I need it.
by AndroAsc
Fri Jul 26, 2019 7:34 pm
Forum: Investing - Theory, News & General
Topic: Is getting a home to airbnb a good investment?
Replies: 20
Views: 3553

Is getting a home to airbnb a good investment?

I know Bogleheads are generally anti-rental property, and I agree with you guys on that.

Often, when you figure out the hidden costs of empty rentals, tenant eviction, legal/court fees, maintenance and upkeep fees, the returns ain't that good. I get that.

However, does AirBnb change the equation? Assume that you live in a place with decent AirBnb demand.

What I mean is that, does it make sense to buy a home just for the sake of AirBnb-ing it out? Reasons that support this as a better investment are:
- Higher daily rates than regular rental properties
- Because stays are short, you're not looking for that golden tenant for a year. Getting people to fill up days here and there should be easier.

Am I right? Or am I misguided?
by AndroAsc
Sun Jul 14, 2019 11:14 pm
Forum: Investing - Theory, News & General
Topic: Best Crypto Offline Wallet (from security perspective)
Replies: 3
Views: 1024

Best Crypto Offline Wallet (from security perspective)

Let's table any "political" discussion of why crypto is a bad idea. Yes, it's a bad idea. Yes, I think I'm buying some with my 5% play money. I'm ok if I lose everything tomorrow. I'm sorry for being such a weak-willed Boglehead. Now that's out of the way, I've been looking into what is the best (from a security perspective) way of securing one's crypto in an offline wallet (cold storage). However, it's hard to me to figure things out, as god knows maybe all of the articles I read are paid promo. So far I have figured out it's down to hardware wallet vs actual paper wallet. I was going to go paper wallet, as you need to "trust" the person making the hardware wallet that there is no backdoor... but then you need some code...
by AndroAsc
Wed Jul 10, 2019 12:15 am
Forum: Personal Investments
Topic: Should I rollover my Vanguard 401k to my Fidelity 401k?
Replies: 16
Views: 1494

Re: Should I rollover my Vanguard 401k to my Fidelity 401k?

Unless Vanguard has changed in the last year, Vanguard did not support (technology wise) all the features a 401K plan could offer such as allowing you to do after-tax contributions and immediately and automatically roll them into a ROTH 401K. Fidelity is able to do this. According to Vanguard (last year) it was technology limitation on their end. They also do not advocate for changes to 401K plans, where as FIDO would allow you to submit an RFE to your company's 401K plan and would actively advocate for the changes. My point is, over time you are likely to get more bells and whistles out of FIDO. Yes, Vanguard does not allow source-specific fund selection, which made it a complete [nightmare -- moderator oldcomputerguy] as I was doing Mega...
by AndroAsc
Wed Jul 10, 2019 12:14 am
Forum: Personal Investments
Topic: Should I rollover my Vanguard 401k to my Fidelity 401k?
Replies: 16
Views: 1494

Re: Should I rollover my Vanguard 401k to my Fidelity 401k?

Double plot twist...

Looks like my ex-employer just launched a self-directed brokerage in the 401k. Which would swing me towards keeping my Vanguard 401k

But then I calculated the current fees from CY 2018, and it amounted to 0.06%-0.07% of my current portfolio value (so the actual expense is probably higher since my portfolio has grown). Given the extra fees, Vanguard institutional funds means nothing now cause this is more than doubling my ER!!!

I believe my current Fidelity 401k has no fees. Will confirm to be sure, but looks like I'm leaving the Vanguard 401k.
by AndroAsc
Tue Jul 09, 2019 10:37 pm
Forum: Investing - Theory, News & General
Topic: Help me understand Morningstar Tax Cost Ratio. Some things are not right?
Replies: 6
Views: 1273

Re: Help me understand Morningstar Tax Cost Ratio. Some things are not right?

Ok, bringing in triceratop's data from 2017 spreadsheet, assuming 35% federal tax, 0% state tax and 15% QDI tax rate. I'm not sure if M* accounts for foreign tax credit, so I've also included with no foreign tax credit M* (5-yr) vs Triceratop 2017 (1-yr) IJS - 0.42% vs 0.27% VTI - 0.56% vs 0.33% VEA - 0.91% vs 0.55% (0.71%) VWO - 0.94% vs 0.53% (0.75%) VEU - 0.88% vs 0.50% (0.68%) VSS - 0.97% vs 0.80% (0.95%) DLS - 1.01% vs 0.42% (0.66%) M* ranking would be: IJS > VTI > VEU = VEA = VWO = VSS = DLS Triceratop 2017 ranking would be: IJS > VTI > DLS > VEU = VEA = VWO > VSS Triceratop 2017 ranking with no foreign tax credit would be: IJS > VTI > DLS = VEU = VEA = VWO > VSS It does looks like Triceratop ranking without foreign tax credit is some...
by AndroAsc
Tue Jul 09, 2019 10:20 pm
Forum: Investing - Theory, News & General
Topic: Help me understand Morningstar Tax Cost Ratio. Some things are not right?
Replies: 6
Views: 1273

Re: Help me understand Morningstar Tax Cost Ratio

Why is it useless? I've seen some of triceratop's tax efficiency spreadsheets, but I'm also looking into several non-Vanguard ETFs. Also M* is nice because they give the past 5-yr/10-yr tax efficiency (assuming their numbers can be trusted!) It assumes the highest federal marginal rate, no state taxes, and that qualified dividends don’t exist. If you fork triceratop’s sheet, it’s easy enough to non-VG ETFs. My version has iShares, State Street, and Schwab covered. Granted, it doesn’t cover the averages you’re seeking. I can see that DIY will give you more useful numbers for your personal situation (and that requires some work/effort), but all I need is an accurate *relative* ranking. Changing tax brackets should not change the relative tax...
by AndroAsc
Tue Jul 09, 2019 10:04 pm
Forum: Investing - Theory, News & General
Topic: Help me understand Morningstar Tax Cost Ratio. Some things are not right?
Replies: 6
Views: 1273

Re: Help me understand Morningstar Tax Cost Ratio

drk wrote: Tue Jul 09, 2019 10:02 pm It’s useless. Search the forum for triceratop’s tax efficiency threads for a far better approach, with spreadsheets.
Why is it useless? I've seen some of triceratop's tax efficiency spreadsheets, but I'm also looking into several non-Vanguard ETFs. Also M* is nice because they give the past 5-yr/10-yr tax efficiency (assuming their numbers can be trusted!)
by AndroAsc
Tue Jul 09, 2019 10:01 pm
Forum: Investing - Theory, News & General
Topic: Help me understand Morningstar Tax Cost Ratio. Some things are not right?
Replies: 6
Views: 1273

Help me understand Morningstar Tax Cost Ratio. Some things are not right?

I'm trying to figure out using a more precise method the tax efficiency of my various ETF/funds, and which one I should place in taxable. I recently stumbled onto Morningstar Tax Cost Ratio, which they define as "The Morningstar Tax Cost Ratio measures how much a fund's annualized return is reduced by the taxes investors pay on distributions." Has anyone done a detailed analysis into M* Tax Cost Ratio and sees if it makes sense? Some things are not adding up for me. Here's some sample data for last 5-years tax cost ratio, and things that don't make complete sense to me: 1. Why is VEA and VWO so much higher than VTI? Both VTI and VEA are total market funds, and VWO is large-cap centric, so why are their tax costs not the same as VT...
by AndroAsc
Tue Jul 09, 2019 9:49 pm
Forum: Personal Investments
Topic: WisdomTree DLS & DGS for International Small Cap Value tilt?
Replies: 16
Views: 3327

Re: WisdomTree DLS & DGS for International Small Cap Value tilt?

Are WisdomTree DLS & DGS good choices to achieve an International Small Cap Value tilt? I know they pay dividend, that's not an issue for me. I know their TER is relatively high but the performance seems to make up for it. I've read Paul Merriman thinks their good choices for SCV. What are your thoughts on these funds, for someone that wants to tilt to SCV? I used DLS/DGS exclusively starting a little over 10 years ago. I now use ISCF instead of DLS as its cheaper plus includes a value tilt. I now have access to DFA EM Value DFEVX which is an all cap value fund so I'm using that instead of DGS now, but I know that most don't have access to DFEVX. All I hold in my IRAs now are ISCF (Intl SC Multifactor) and SLYV (S&P 600 Value). Why...
by AndroAsc
Tue Jul 09, 2019 9:46 pm
Forum: Personal Investments
Topic: Frequency of 401k contributions - frontloading versus quateraly
Replies: 13
Views: 1369

Re: Frequency of 401k contributions - frontloading versus quateraly

Front load. Because if you get laid off or fired, you would have lost the match.
by AndroAsc
Tue Jul 09, 2019 9:30 pm
Forum: Personal Investments
Topic: Should I rollover my Vanguard 401k to my Fidelity 401k?
Replies: 16
Views: 1494

Re: Should I rollover my Vanguard 401k to my Fidelity 401k?

TheEleven wrote: Tue Jul 09, 2019 7:50 pm Is there a kind of employer 401k plan administration wrapped around those Vanguard funds? Just wondering if there is an overall plan fee associated with the plan beyond just the expense ratios of the funds. If so, surely best to move. Fidelity is great and has some super low cost index funds, great customer service, can't see that you'd regret consolidating there. I wish my current employer 401k was at Fidelity, where my other stuff is, so I wasn't always bouncing between the employer plan and Fidelity.
Actually, there is another overall plan fee for my Vanguard 401k. I'll need to do the math to figure out how much extra ER there is.
by AndroAsc
Tue Jul 09, 2019 9:28 pm
Forum: Personal Investments
Topic: Should I rollover my Vanguard 401k to my Fidelity 401k?
Replies: 16
Views: 1494

Re: Should I rollover my Vanguard 401k to my Fidelity 401k?

You state that your Vanguard 401k is from a previous employer. In most cases, when you leave an employer, you are able to roll that employer's 401k plan into a self-directed IRA. There are 2 VERY important advantages to a self-directed IRA: Considerably lower fees, both administrative fees and expense ratios for equivalent funds available in the general marketplace. Infinitely more investment options. I suggest that you investigate your ability to roll over your previous employer's 401k plan to a self-directed IRA. I decided not to rollover to IRA because 401k has better creditor protection. With BrokerageLink in my Fidelity 401k, the options are almost like an IRA. Only exception is $4.95 for ETF trades and no Vanguard mutual funds.
by AndroAsc
Tue Jul 09, 2019 10:39 am
Forum: Personal Investments
Topic: Should I rollover my Vanguard 401k to my Fidelity 401k?
Replies: 16
Views: 1494

Re: Should I rollover my Vanguard 401k to my Fidelity 401k?

whodidntante wrote: Tue Jul 09, 2019 10:37 am I would consolidate at fidelity given the situation you described. Is there some reason you don't want to?
I like Vanguard mutual funds... A LOT.
by AndroAsc
Tue Jul 09, 2019 10:32 am
Forum: Personal Investments
Topic: Should I rollover my Vanguard 401k to my Fidelity 401k?
Replies: 16
Views: 1494

Should I rollover my Vanguard 401k to my Fidelity 401k?

Can't believe I am considering this: Should I rollover my Vanguard 401k to my Fidelity 401k?

Vanguard 401k:
- Have access to institutional Vanguard mutual funds (VITSX, VTSNX)
- Have access to a Vanguard operated stable value fund (under 3% in recent times - so not quite TIAA Trad)
- It's an ex-employer account. No more money can go into this

Fidelity 401k:
- No Vanguard mutual funds
- Has a small/mid cap DFA fund (not a mutual fund, so not sure what it corresponds to)
- Has Brokeragelink, which gives me fidelity spartan funds (FSKAX, FSRNX)
- Has Brokeragelink, which allows me to purchase ETF at $4.95/fee and some ETFs have no fees.
- Current employer account

Stay or go?
by AndroAsc
Tue Jul 02, 2019 12:26 am
Forum: Personal Finance (Not Investing)
Topic: HCOL vs LCOL Dilemma
Replies: 96
Views: 7024

Re: HCOL vs LCOL Dilemma

KlangFool wrote: Tue Jul 02, 2019 12:24 am OP,

Some alternatives:

A) Rent instead of buying a house there.

B) If you buy, only put 20% down payment and nothing more. California is a non-recourse loan state. You can walk away from the house if you need to.

KlangFool
a) Agreed

b) What??? Wouldn't they send him to collections (and take a huge hit on the credit report) if he doesn't pay up his mortgage? Are you saying that you can pick the longest term mortgage in CA and just walk away from it?
by AndroAsc
Tue Jul 02, 2019 12:18 am
Forum: Personal Finance (Not Investing)
Topic: HCOL vs LCOL Dilemma
Replies: 96
Views: 7024

Re: HCOL vs LCOL Dilemma

OP, based on your TC you are likely working for a top tier tech company. I would NOT downgrade at this point, as staying in a top tier employer opens a lot of door. The 50% TC cut is not worth it, and there's no employers in Dallas that can pay as well. I'll be blunt, moving to Dallas is committing career suicide, especially if you are still young. You should also look at future growth in income as well. At Dallas you are likely to be glass-ceiling out, not so in CA where the sky is the limit (especially in tech). FYI: I moved from a LCOL to HCOL. My TC almost tripled and my rent doubled. My situation is way better than before. The only time you should consider to move to LCOL in your situation is to do early retirement. That's when you hav...