Search found 329 matches

by MrJedi
Sun Sep 20, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: Best 401k provider offering mega backdoor Roth
Replies: 9
Views: 526

Re: Best 401k provider offering mega backdoor Roth

Be assured that I fully understand that there are costs. That's in fact my question: I'm trying to quantify these costs. Both the initial and ongoing. Any HR type folks here experienced in what these might work out to? Also, is there a reference on anti-discrimination testing specifically for the a...
by MrJedi
Sun Sep 20, 2020 11:55 am
Forum: Personal Investments
Topic: Lump sum mortgage payoff at 3.75% vs. invest
Replies: 15
Views: 949

Re: Lump sum mortgage payoff at 3.75% vs. invest

I would refinance and then keep the debt for some time until you build up more liquidity.

If you sink all of that money into paying your mortgage, it looks like maybe half or more of your net worth will be tied up into your house.
by MrJedi
Sun Sep 20, 2020 11:42 am
Forum: Personal Investments
Topic: Help w/simple taxable account investment choices
Replies: 4
Views: 295

Re: Help w/simple taxable account investment choices

Other than some Vanguard MFs, ETFs are more tax efficient than MFs in a taxable account. However, the difference is typically very small for an index fund, as there is naturally less activity and turnover in an index fund and thus less capital gains realized by the fund itself. To get an idea of the...
by MrJedi
Sun Sep 20, 2020 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA strategy - new MAGI
Replies: 7
Views: 530

Re: Roth IRA strategy - new MAGI

Since our tax rate is higher now, we did not see a Roth conversion as a good idea until we retired early (no/low income). The gap between now (still having earned income and lower MAGI) and then (no earned income, very low MAGI) is opening this window of opportunity. If I understand it correctly, w...
by MrJedi
Sun Sep 20, 2020 10:26 am
Forum: Personal Investments
Topic: How long does it take for your 403b/401k contribution to show up after payday?
Replies: 27
Views: 991

Re: How long does it take for your 403b/401k contribution to show up after payday?

Same day. I don't see it until the next day, but if I get paid on the 15th, I see purchases at the market closing prices on the 15th in my history when i look it up the next day.
by MrJedi
Sat Sep 19, 2020 11:02 am
Forum: Personal Investments
Topic: Fidelity Brokerage - Fund purchase from linked account?
Replies: 16
Views: 826

Re: Fidelity Brokerage - Fund purchase from linked account?

evancox10 wrote: Sat Sep 19, 2020 7:50 am Update: looks like the transferred money is still available on the weekend, but can only be used to setup a mutual fund buy. Can't do a market order ETF buy on the weekend.
You can do an "On the Open" order in Fidelity if you want to get your order in at the next opening price.
by MrJedi
Fri Sep 18, 2020 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: New X1 Credit Card (3%)
Replies: 15
Views: 2431

Re: New X1 Credit Card (3%)

If you like annual spending bonuses, pick up the FordPass Visa instead of this or pick up both. You get $200 back on $6k every year, plus some points you can use for oil changes and new batteries and whatnot at Ford dealer dealers. And it's cash in the form of a statement credit, not some weird poi...
by MrJedi
Fri Sep 18, 2020 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Just did a no-cost refinance @2.75% 30-yr
Replies: 18
Views: 2500

Re: Just did a no-cost refinance @2.75% 30-yr

What are you confused about? You will save money on day 1 after funds disbursement. It's a no brainer if you can get lower interest at no true cost. That's why it's mentioned all the time here.
by MrJedi
Fri Sep 18, 2020 7:33 pm
Forum: Personal Investments
Topic: Vanguard Federal Money Market Fund - Settlement Fund?
Replies: 20
Views: 1173

Re: Vanguard Federal Money Market Fund - Settlement Fund?

Your cash hasn't settled yet. You can still buy with unsettled funds though. Funds take a day or so to settle, just like any other bank transfer.
by MrJedi
Fri Sep 18, 2020 3:16 pm
Forum: Personal Investments
Topic: Invest quickly or save as cash for IRA investments?
Replies: 6
Views: 471

Re: Invest quickly or save as cash for IRA investments?

Invest it all and keep maxing your IRAs. Once you get to a year where you don't have enough to max the IRAs, then sell from taxable and rebuy in the IRA. If you end up paying capital gains, that means you made money over letting it sit in a bank account. If you have losses then you just need to mane...
by MrJedi
Fri Sep 18, 2020 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Closing Disclosure questions (refi)
Replies: 2
Views: 276

Re: Closing Disclosure questions (refi)

APR isn't really what matters when comparing. Sometimes stuff like prepaids goes into calculating APR, but prepaids are just a reflection on what day of the month you close/disburse funds.
by MrJedi
Fri Sep 18, 2020 11:44 am
Forum: Personal Finance (Not Investing)
Topic: New X1 Credit Card (3%)
Replies: 15
Views: 2431

Re: New X1 Credit Card (3%)

Merchant restrictions on redemption kills it for me. Reaching $15,000 annual spend to make it worthwhile over a vanilla 2% card would mean sacrificing $300 in true cashback for $450 in restricted redemption. I do shop at a few of those merchants occasionally but not every year or enough to make that...
by MrJedi
Fri Sep 18, 2020 11:00 am
Forum: Personal Investments
Topic: Fidelity Brokerage - Fund purchase from linked account?
Replies: 16
Views: 826

Re: Fidelity Brokerage - Fund purchase from linked account?

You can only fund purchases directly from checking accounts with mutual funds, stocks/ETFs have to transfer in as cash and then can be traded once settled. If you have margin enabled it might be possible to trade immediately with a margin loan before the bank transfer completes, but I've never trie...
by MrJedi
Fri Sep 18, 2020 10:33 am
Forum: Personal Investments
Topic: Fidelity Brokerage - Fund purchase from linked account?
Replies: 16
Views: 826

Re: Fidelity Brokerage - Fund purchase from linked account?

I recently opened up a Fidelity brokerage, I was wondering if I’m able to purchase a fund / stock / ETF and to use a linked checking account as the source of the funds in a single step. Or do I have to do two steps, first transfer the money, then do a trade? What guarantee if any is made in the ava...
by MrJedi
Fri Sep 18, 2020 10:25 am
Forum: Personal Investments
Topic: Fidelity Brokerage - Fund purchase from linked account?
Replies: 16
Views: 826

Re: Fidelity Brokerage - Fund purchase from linked account?

Automatic MF purchases are possible, but not for ETFs from my experience.
by MrJedi
Fri Sep 18, 2020 9:58 am
Forum: Personal Investments
Topic: Fidelity Brokerage - Fund purchase from linked account?
Replies: 16
Views: 826

Re: Fidelity Brokerage - Fund purchase from linked account?

I don't think the single step automatic transfer is possible.

You do immediately get cash available to trade by initiating a transfer first though. You don't have to wait for the cash transfer to settle.
by MrJedi
Fri Sep 18, 2020 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 6787
Views: 450237

Re: Refinance Mega Thread

The "Loan Amount" is listed as the correct loan amount, but the "Total Payoffs and Payments" is my loan amount plus $2k, so I assume this is where the difference comes from (the difference matches exactly, even with non-rounded numbers). The "Payoffs and Payments" table lists my current lender and ...
by MrJedi
Fri Sep 18, 2020 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 6787
Views: 450237

Re: Refinance Mega Thread

am i missing something? how is everyone getting <3%? wife and i have a combined income of $250K. excellent credit (780+) and are looking to put 20% down on a $700-750K home. the best we've found is 3.25% . we've checked Better, Alliant, Citi, Chase and Rocket. we're in NY if it matters. totally at ...
by MrJedi
Fri Sep 18, 2020 5:38 am
Forum: Personal Finance (Not Investing)
Topic: refi or not?
Replies: 8
Views: 590

Re: refi or not?

If you have any chance of moving in the next few years I would opt for a no cost refinance. That is in exchange for a higher rate, you receive lender credits to offset your closing costs (title, certifications, etc.). The reason is your interest savings will start on day 1 instead of betting on keep...
by MrJedi
Thu Sep 17, 2020 3:50 pm
Forum: Investing - Theory, News & General
Topic: VTI vs VOO vs VV tax impact?
Replies: 20
Views: 1537

Re: VTI vs VOO vs VV tax impact?

I prefer Morningstar's 3-year Tax Cost Ratio. Example: https://www.morningstar.com/etfs/arcx/vti/price Morningstar doesn't always know about qualified dividends (as you can see because it often gives different tax costs for ETF and Admiral shares of the same Vanguard fund); it's better to get tax i...
by MrJedi
Thu Sep 17, 2020 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1148
Views: 102258

Re: My LenderFi refinance is going well

I prefer putting mortgage on auto pay over bill pay from my checking. Less chance for the servicer to screw up on how to apply payments.
by MrJedi
Thu Sep 17, 2020 1:30 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Across Accounts- Age and Taxable vs Non-Taxable
Replies: 20
Views: 992

Re: Asset Allocation Across Accounts- Age and Taxable vs Non-Taxable

The "flaw" is thinking your retirement accounts are untouchable when you just need to rebalance as needed to keep your funds tax efficient. As you get closer to qualified age, that "untouchability" becomes more and more meaningless. It is always your money. For example if I need 10k, I sell 10k tax ...
by MrJedi
Thu Sep 17, 2020 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 6787
Views: 450237

Re: Refinance Mega Thread

It doesn't sound right that your prepaid interest starts on closing day rather than disbursement date.
by MrJedi
Thu Sep 17, 2020 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Don’t understand when to pay taxes new retiree
Replies: 42
Views: 3228

Re: Don’t understand when to pay taxes new retiree

You always have at least 15 days following the end of each quarter to make a timely tax payment. Note that the IRS quarters aren't the same as the usual calendar quarters most people use. (Q2 is 2 months, Q4 is 4 months). https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2 You'll want t...
by MrJedi
Thu Sep 17, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1148
Views: 102258

Re: My LenderFi refinance is going well

Does anyone know what goes into who ends up servicing the loan. I see that certain loans are sold off to Well Fargo but some remain at LenderFi. Is LenderFi keeping those that will make them more money? Or some different criteria? This is just my speculation, but I would think they don't want to ho...
by MrJedi
Thu Sep 17, 2020 8:34 am
Forum: Investing - Theory, News & General
Topic: VT Portfolio Composition File vs total holdings
Replies: 10
Views: 566

Re: VT Portfolio Composition File vs total holdings

Here's another relevant article:
https://www.fidelity.com/learning-cente ... n-your-etf

I presume large swaths of smaller, less liquid stocks are grouped together and that explains most of the difference between number of baskets vs number of total stocks.
by MrJedi
Wed Sep 16, 2020 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can ROTH Conversion prevent ROTH IRA Contribution
Replies: 13
Views: 625

Re: Can ROTH Conversion prevent ROTH IRA Contribution

Does that conversion affect the $7K each that we contribute, because now our MAGI is greater than $206K ? It's not immediately clear exactly what you are asking. But just in case you are asking about Roth contribution ineligibility, conversions to Roth do not count towards Roth contribution limits....
by MrJedi
Wed Sep 16, 2020 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1148
Views: 102258

Re: My LenderFi refinance is going well

Signing/Closing on Friday 9/18 Disbursement on Wednesday 9/23 On the "CALIFORNIA PER DIEM INTEREST CHARGE DISCLOSURE" there is an option to check or not check a box that says "I request loan disbursement occur on a Monday or a day immediately following a bank holiday. As such, interest will commenc...
by MrJedi
Wed Sep 16, 2020 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 6787
Views: 450237

Re: Refinance Mega Thread

Also on a totally different question. Will the previous lender automatically send me a check for funds held in the escrow account? When I last did a refi back in April it was with the same lender so I just got a check from them at the end. I refinanced out of a small local lender. Funding was on 8/...
by MrJedi
Wed Sep 16, 2020 11:45 am
Forum: Personal Finance (Not Investing)
Topic: new car - 0% interest loan ?
Replies: 27
Views: 1661

Re: new car - 0% interest loan ?

It varies all the time and depends of course. Sometimes it is true that you cannot get a lower price even when declining 0% financing. Credit card companies offer 0% intro financing all the time. It's a promotion to earn your business, and you can play the same game there with floating the money for...
by MrJedi
Wed Sep 16, 2020 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Refi Question - help deciding
Replies: 21
Views: 875

Re: Refi Question - help deciding

The point is: do you get money back or not at closing. I was trying to figure out how some of the posts above were describing a lender credit - especially as it relates to the 30 year no closing cost loan with a rate of 2.5% mentioned: I locked my rate for a 30 year @ 2.5% about 2 weeks ago. That i...
by MrJedi
Wed Sep 16, 2020 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Reimbursing mileage for HSA
Replies: 26
Views: 1396

Re: Reimbursing mileage for HSA

You paid out of pocket for the mileage in 2020, this was your non reimbursed expense in 2020. If you reimburse yourself 30 years later, I would expect the rate in 2020 to be in effect. Just like if you had an out of pocket expense of $1000 in 2020. If you reimburse yourself in 2050, that amount is ...
by MrJedi
Wed Sep 16, 2020 11:10 am
Forum: Personal Finance (Not Investing)
Topic: new car - 0% interest loan ?
Replies: 27
Views: 1661

Re: new car - 0% interest loan ?

Assuming you can't get the price lower otherwise and you don't want to bother with leveraging up on your investments, the essentially risk free way to do it would be to just put the money into a savings account and just let the loan auto draft each month and collect the extra interest each month. Yo...
by MrJedi
Wed Sep 16, 2020 10:39 am
Forum: Personal Investments
Topic: Mutual Fund Exchanges & Time Out of the Market
Replies: 2
Views: 198

Re: Mutual Fund Exchanges & Time Out of the Market

Same fund family exchange (Vanguard to Vanguard, Fidelity to Fidelity, etc.), No. If you are going across fund families, like Fidelity fund to Vanguard fund, then you'll be out of market for 1 day to allow for the cash to settle and then transfer to the new fund manager. For example if you hold FSKA...
by MrJedi
Wed Sep 16, 2020 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Refi Question - help deciding
Replies: 21
Views: 875

Re: Refi Question - help deciding

I appreciate the response. It looks like the lender credit is a credit against closing costs and not cash back on a no closing cost loan. Big difference and we are trying to decide where to get the best "true" no cost refi program. The lender credits are used to offset closing costs. That's how you...
by MrJedi
Wed Sep 16, 2020 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Reimbursing mileage for HSA
Replies: 26
Views: 1396

Re: Reimbursing mileage for HSA

You paid out of pocket for the mileage in 2020, this was your non reimbursed expense in 2020. If you reimburse yourself 30 years later, I would expect the rate in 2020 to be in effect. Just like if you had an out of pocket expense of $1000 in 2020. If you reimburse yourself in 2050, that amount is s...
by MrJedi
Wed Sep 16, 2020 8:18 am
Forum: Personal Investments
Topic: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)
Replies: 82
Views: 4953

Re: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)

If your 401k plan has it, the in-plan Roth Conversion is just converting the after-tax 401k contribution to Roth. Some 401k plans have weird restrictions (limited times a year, etc.), some do it online or even automatically, while some require phone calls, etc. For my 401k plan there are no restric...
by MrJedi
Wed Sep 16, 2020 8:12 am
Forum: Personal Investments
Topic: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)
Replies: 82
Views: 4953

Re: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)

If you can't max both normal Backdoor Roth and Mega Backdoor Roth, there is a small benefit for maxing the normal one first. That is the chance that your employer fails the 401k ACP test (discrimination testing) and some of your after tax 401k contributions have to be returned since you may be consi...
by MrJedi
Wed Sep 16, 2020 5:37 am
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1148
Views: 102258

Re: My LenderFi refinance is going well

I just filed a cfpb complaint. In the meantime going to get Ryan or whoever is responsible to reverse this as I have an email from my loan processor stating it is supposed to be a soft inquiry. Was yours from SERVICE FIR? Can't be from anyone else as I intentionally held off on any inquiries til fu...
by MrJedi
Tue Sep 15, 2020 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1148
Views: 102258

Re: My LenderFi refinance is going well

My loan took a little over a month. Got a request to confirm that my recent hard inquiries were due to shopping Around (from a months go) than for new credit on the day of funding. It seems it was a hard inquiry despite loan officer claiming it was a soft inquiry. I got hit with a second hard inqui...
by MrJedi
Tue Sep 15, 2020 5:51 pm
Forum: Personal Investments
Topic: Vanguard Total World vs. Vanguard Total Stock Market + Vanguard Total International
Replies: 11
Views: 1022

Re: Vanguard Total World vs. Vanguard Total Stock Market + Vanguard Total International

VTSAX+VTIAX is technically more diversified as well, as it combines for more holdings than VTWAX, though the difference I'm sure is negligible.
by MrJedi
Tue Sep 15, 2020 1:21 pm
Forum: Personal Investments
Topic: FZROX vs. FXAIX [Fidelity ZERO Total Market Index vs. 500 Index]
Replies: 24
Views: 9995

Re: FZROX vs. FXAIX [Fidelity ZERO Total Market Index vs. 500 Index]

The biggest downside of the zero funds is that they are not portable and can only be held at Fidelity. This means if you were to ever want to move to another broker, you would have to sell which would be a taxable event, as opposed to ETFs or more portable mutual funds that can be transferred in-ki...
by MrJedi
Tue Sep 15, 2020 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Which refi would save me more?
Replies: 20
Views: 1158

Re: Which refi would save me more?

Have you checked rates at the lenders most often mentioned here - LoanDepot, LenderFi (their quick rates are higher than the actual rates they offer after an application), LoanCabin (if it operates in your state), Better? I tried lender fi but it asked for my social. Wouldn't that result in a hard ...
by MrJedi
Tue Sep 15, 2020 12:47 pm
Forum: Personal Investments
Topic: FZROX vs. FXAIX [Fidelity ZERO Total Market Index vs. 500 Index]
Replies: 24
Views: 9995

Re: FZROX vs. FXAIX [Fidelity ZERO Total Market Index vs. 500 Index]

Hi, re-activating this thread. Why is FZROX good in terms of taxes in an IRA as opposed to a regular brokerage account? What are the tax implications of FZROX? The biggest downside of the zero funds is that they are not portable and can only be held at Fidelity. This means if you were to ever want ...
by MrJedi
Mon Sep 14, 2020 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1148
Views: 102258

Re: My LenderFi refinance is going well

I have been having issue with servicing post close. At the table they told me servicing would be sold, and to wait to get info from the "interim servicing" department before mailing a payment. No problem, not unusual... Never heard anything after that and finally had to call/email the week before m...
by MrJedi
Mon Sep 14, 2020 2:08 pm
Forum: Personal Investments
Topic: Simplifying Investing
Replies: 13
Views: 843

Re: Simplifying Investing

I don't think you need to do anything different other than stay away from the news and not mess with your AA. There's nothing wrong with rebalancing quarterly or even just annually when you review your accounts for fraud. Some years you may not even need to rebalance or reallocate your new contribut...
by MrJedi
Mon Sep 14, 2020 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: tax underpayment penalty
Replies: 32
Views: 2443

Re: tax underpayment penalty

This may be basic but I will mention it, ignore if you understand this already. Withholding is something different than paying a quarterly estimated tax. Withholding is done through something like a paycheck or IRA distribution, not a quarterly tax payment. I wanted to mention because your OP said "...
by MrJedi
Mon Sep 14, 2020 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 6787
Views: 450237

Re: Refinance Mega Thread

So here's my quote from better.com - Location: Central TX - 625k home value - 457k loan balance (to refi) - 760 credit score - No debt other than this mortgage - 3.125% current rate I'd be out about $6000 at closing, I don't understand why I'm getting such a terrible deal while others are getting 2...
by MrJedi
Sun Sep 13, 2020 6:07 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 149
Views: 11210

Re: Paying off sub 4% mortgage interest rate early

Is anyone who has a sub 4% fixed mortgage interest rate paying it off aggressively early? If you are, why? If you are nowhere near retirement, I would personally not pay off any debt under 5%, but would rather invest aggressively. Pay off the mortgage in the last 5-10 years of your career. Get your...
by MrJedi
Sat Sep 12, 2020 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 6787
Views: 450237

Re: Refinance Mega Thread

I'm in the same boat. Seemingly excellent stats going in, should be a no-brainer to find one of these deals. I even had a guy call me from LoanDepot and tell me straight up "You should stay with your 3.125%, it's not going to get better than that." State of TX. I'm so confused seeing all these post...