Search found 215 matches

by gsmith
Tue Feb 18, 2020 1:23 am
Forum: Personal Investments
Topic: [UPDATE] HELP With Parents In Law's Portfolio
Replies: 34
Views: 2770

Re: Taking PoA Action on MiL's Taxable Account [Advice Please]

This is anecdotal, but managed account reps are trained to provide resistance. The ETF commission can be extremely expensive, and they may pretend you don't know what you're talking about. (We're talking hundreds/thousands in costs for the same transaction that would be free at Vanguard) You could be better off opening an account with a new friendly broker and doing the ACATS (transfer instructions she'd complete w/ new broker) now, instructing the broker to sell all and send cash, as you'll be paying any deferred loads regardless of broker. This way you can avoid the lectures and snide remarks, and let the back office deal with it. Ask the new broker to take mercy and refund you the $190 fee MS will charge you on the way out. As a former P...
by gsmith
Tue Feb 18, 2020 1:05 am
Forum: Personal Investments
Topic: Guideline IRA Accounts
Replies: 0
Views: 358

Guideline IRA Accounts

Hi All, As some may know, Guideline is a 401k Plan Administrator, that uses a BH-like philosophy for small businesses Topic 1 Topic 2 Topic 3 They are soon going to be launching a consumer side IRA service for $5/month for $10k+ balances ($2/under) This is really interesting, as it will be a Vanguard/DFA menu, with auto-rebalancing and pick your own funds/AA option. I could see paying $60/yr+0.06%ER for a robo provider built around "set your funds%/asset allocation% and forget" 401k Pluses (assuming they will reuse most of their current platform): - Almost all plan fees are paid by company (Loan/Hardship/Check fees/ex-employee accounts are exceptions) - Access to Vanguard/5 DFA Funds - Robo-interview and recommendation of a AA, wi...
by gsmith
Mon Feb 17, 2020 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Recommended Self-Directed (checkbook) IRA/401K custodian?
Replies: 4
Views: 584

Re: Recommended Self-Directed (checkbook) IRA/401K custodian?

Was PMed on this topic, so I'll reply here. Make sure you talk to an attorney who is very familiar with these rules, as the penalties are extremely dangerous. Mary Hart is a decent attorney who is familiar with these rules. I would just mention risk/reward.. It may be a better idea to do this in taxable if it isn't a "sure thing"; long term capital gain if you sell the shares after a while... and you would be able to take a tax write off if the shares became worthless, as they often do. Not only is it expensive to purchase a private offering inside an self-directed IRA, the ENTIRE IRA could be deemed disqualified/withdrawn w/ penalty if you don't follow the Tax Court rulings to the letter. This area is rife with audits, and you ne...
by gsmith
Fri May 03, 2019 1:25 am
Forum: Personal Investments
Topic: Company IPO'd. What's Next?
Replies: 37
Views: 5154

Re: Company IPO'd. What's Next?

Congrats on your good fortune.
For the added boost in self-confidence, you may wish to consider paying a Fee-Only CFA/and CPA for a couple hour review to minimize taxes and risk.
One of the larger temptations is to adjust your expenses in ways that do not impact your quality of life. Wait until you are certain about the windfall.

I haven't been impressed with the robo-advisors, as tend to invest too heavily in emerging markets, but that was a few years ago, and the models may allow for more customization now.

Best of luck
by gsmith
Sun Mar 24, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Sell our condo or rent it out?
Replies: 17
Views: 1730

Re: Sell our condo or rent it out?

Just wanted to mention you may need to ask for permission to rent from your condo assn.
Many bylaws say a majority of condos must be owner-occupied, otherwise the condos aren't eligible for mortgages
Also, insurance for condos is very expensive and doesn't pay out for vacancy.
by gsmith
Fri Mar 15, 2019 11:54 am
Forum: Investing - Theory, News & General
Topic: Tax lien certificates
Replies: 9
Views: 1747

Re: Tax lien certificates

I know people who've invested in several IL/IN tax liens.. and it is critical to understand it varies greatly by state. In my experience the redemption rate (How often the homeowner pays back the property taxes+penalties+your interest+your lawyer+your title search fees) is about 20-30%. 70-80% you will get the underlying property. This is a niche field where individually they are highly speculative, but at scale they are profitable. The interest rate is very misleading. You can be on the hook for attorney costs, publishing costs, mailing costs, posting costs, all of which can go over the limit of reimbursable costs if redeemed. (The county typically caps the costs the homeowner can be charged). Like applying for a patent, you are essentiall...
by gsmith
Fri Mar 08, 2019 7:47 am
Forum: Personal Investments
Topic: In-Service After Tax 401k to Roth IRA Rollover
Replies: 11
Views: 1018

Re: In-Service After Tax 401k to Roth IRA Rollover

IMHO, after-tax with in-service transfers is one of those awesome secret loopholes that only applies to people who work for the right businesses, and I did this when I could annually. As I understand it, instead of $6000 limit contributing to a IRA, or $19000 limit for a 401k don't apply to after-tax 401ks. The total contribution limit for retirement plans w/ after tax is $56,000 (incl. trad/Roth/employer match accounts) By combining w/ in-service, you are able to put away more money, while bypassing any percentage based fees charged by the 401k provider while you are employed there. The downside is that until you do the rollover, after tax is treated similar to a non-deductible IRA with a basis; so you will need to keep track of how much y...
by gsmith
Mon Mar 04, 2019 1:17 am
Forum: Personal Investments
Topic: State Street / GE
Replies: 7
Views: 1148

Re: State Street / GE

Just as an FYI, State Street is 62nd largest investment bank in the world and the sponsor of SPDRs.
I realize size is not a good indicator of risk, but their AA- credit ratings are a few notches below the US Gov's AAA

http://investors.statestreet.com/Custom ... age=302726
https://en.wikipedia.org/wiki/List_of_largest_banks

I would guess that another client tried to deposit a check with a stop payment, or something got miscoded at the bank.
BTW, if you wish, you can ask the sender to ACH or wire you the funds, there's a small fee, but it would be next day.
by gsmith
Sun Feb 17, 2019 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Stolen check, what should I do?
Replies: 18
Views: 1987

Re: Stolen check, what should I do?

Two points.....

1. There are significantly less protection if the check was drawn from a business bank account instead of a personal one, (see fed regs)
Even if you stop a check, the stop falls off unless you renew it. It's a very old way of doing business.

2. Many vendors are moving to cashless systems that are free... I prefer Chase Quickpay/Zelle, which works with most big banks, is free to both parties, instant, and so easy to audit.
by gsmith
Sun Feb 17, 2019 10:03 am
Forum: Personal Investments
Topic: Terrible 401(k) Investment Options at Work
Replies: 4
Views: 765

Re: Terrible 401(k) Investment Options at Work

Having been on both sides of the table, I can sympathize. The good news is that if you eventually move to a new job, you will be able to take the assets with you. The cheapest I've found is Guideline, which charges the employer only $8/employee/mo, and offers mostly Vanguard funds. The best part about them is their payroll integration. Once they make a pay run, OnPay makes the deductions/match accounting entries, and within two weeks Guideline pulls the money. No spreadsheets to upload. If they use a payroll provider compatible with Guideline, HR literally does nothing. Even changes to contributions, % or $, Roth or Trad, and AA percentages are handled online through a portal, and require no actions from the business. I would become friends...
by gsmith
Thu Feb 14, 2019 4:16 pm
Forum: Personal Consumer Issues
Topic: Explain: Landmark Forum
Replies: 9
Views: 1372

Re: Explain: Landmark Forum

nisiprius wrote: Tue Feb 12, 2019 3:17 pm So, is this just EST under a new name, or is it something different?
According to a Psychology Today article, the current group bought the intellectual property from Est and has changed, but I've never attended EST, so I wouldn't be able to say.

Just as an FYI, there was a Landmark thread in 2010: viewtopic.php?t=58194
Someone in that thread commented about really abhorrent EST techniques and another replied they are not used in modern Landmark, if that's helpful.
by gsmith
Tue Feb 12, 2019 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Bank As Executor Of Will?
Replies: 47
Views: 3454

Re: Bank As Executor Of Will?

You probably already know what the responsibilities of an executor, but it is an thankless task that's full of risk and drama.

Depending on the will, they may have provide an accounting to the probate court of assets distributed, etc.
There may be claims against the estate that has to meet certain requirements to be approved, and it takes experience to know how to deal with this.
Even as an executor for family, I relied heavily on the attorney who drafted the will, and he saved tens of thousands in bad claims.
First thing I did was hire the attorney to draft my own.

I would second the recommendation to reconsider talking to an attorney.

Greg
by gsmith
Mon Feb 11, 2019 7:20 pm
Forum: Personal Consumer Issues
Topic: Explain: Landmark Forum
Replies: 9
Views: 1372

Re: Explain: Landmark Forum

Wricha wrote: Mon Feb 11, 2019 7:06 pmYes that is of some concern to me also. She has already signed up to go to some advance course work.
I only paid for the "Forum" which was their 3 day class, and included a complementary refresher-like class for a few months. The refresher class was much less intense, and a little boring to be honest, as they went over the same topics as the Forum.

They do have advanced classes, but it was only mentioned, and not pushed.
They are a legitimate leadership class, and the couple of friends and I who went did feel like we got value for our money.
by gsmith
Mon Feb 11, 2019 6:38 pm
Forum: Personal Consumer Issues
Topic: Explain: Landmark Forum
Replies: 9
Views: 1372

Re: Explain: Landmark Forum

The hard part in explaining it, is that it's hard to describe without spoiling the experience. I went ~5 years ago. I think one of the lines was something along the lines of "Having a breakthrough in your life is the reward, Understanding with your brain is the consolation prize" The best way to describe the Landmark Forum is applied philosophy (existentialism) mixed with group therapy. You sit anonymously in a room full of people who you'll never meet again, who share their secrets in a strange intimacy that is difficult to describe. They will go through group exercises to lead to a more meaningful life, encouraged to drop excuses, etc. Many have found value there, and even though I didn't act on the breakthrough, the realization...
by gsmith
Mon Feb 11, 2019 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Feedback on Guideline 401k
Replies: 43
Views: 11883

Re: Feedback on Guideline 401k

We started a new 401k with Guideline. I think it's a good deal at $8 per head, but they don't do cater to complicated plans. There are participant fees for loans, inactive accounts, etc, but reasonable IMO. Great: 1. Easy setup, they borrow almost all their information from OnPay, our payroll provider. 2. Employees can choose to reallocate, change contribution amounts, or Pretax or Roth %s at any time without bothering HR. 3. On the backend, they seem to be using State Street Trust as custodian, or at least that's where the ACH come from 4. They encourage participants to use a percentage based asset allocation, instead of pick a fund. 5. Employer matches are made with every payroll, instead of year end. 6. Guideline should only rebalance yo...
by gsmith
Wed Jul 25, 2018 10:33 am
Forum: Personal Investments
Topic: Bonds in Pre-tax or Roth bucket?
Replies: 7
Views: 1285

Re: Bonds in Pre-tax or Roth bucket?

grabiner wrote: Tue Jul 24, 2018 10:27 pm If you retire at a 25% marginal tax rate, $10,000 in a traditional IRA and $7500 in a Roth IRA will give you the same after-tax value if invested the same way.
Maybe I am making this more complicated then it needs to be, but I imagine for someone who's already has the 401k and would see the traditional deduction as a sunk benefit, phrase the question as "What is the ideal asset allocation for the traditional ira/401k to minimize opportunity cost?

As the purpose of bonds is to stabilize the value and risk profile of the portfolio, I would be biased in putting the lower yielding investments in the account with a deferred tax liability.
by gsmith
Tue Jul 24, 2018 9:59 pm
Forum: Personal Investments
Topic: Bonds in Pre-tax or Roth bucket?
Replies: 7
Views: 1285

Re: Bonds in Pre-tax or Roth bucket?

One thought is to treat the traditional/roth IRAs as different currencies.

$1 Trad IRA = $0.75 USD; Distributions are added to AGI, which could be much higher then LTCG, and it's a deferred tax too. Best for inefficient assets (Bonds/notes) that can't fit in Roth. But any growth is a deferred liability.

$1 taxable = $1 USD; If bought and held, Not only is tax deferred until sold, tax treatment at long term capital gains tax rate (LTCG). Best for international stocks with foreign tax deducted, real estate w/ depreciation, efficient stocks/etfs/mutual funds

$1 Roth IRA = $1.25; No distribution tax; Best for "moonshot" high risk/high reward short term investments with minimal cost. (Tax Liens)
by gsmith
Mon Jul 16, 2018 5:32 am
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 109
Views: 8179

Re: Advice on IT Certification program

A family member took an IT elective because it counted as a liberal arts collective for his undergrad, and his entire career stemmed from that experience. As a 2nd generation IT Consultant, I wanted to stress this is a career path not conductive to families, w/ lots of stress, and only something to consider if passionate. IT is similar to: - Plumbing before the invention of PVC piping - Auto mechanics before interchangeable parts The best advice I can offer is to specialize in one essential field, which is difficult to outsource: Does he like visualizing word problems? A career in data reporting/business intelligence might be good Does he like networking and Linux? Have him download "PBX in a Flash", and build his own phone system...
by gsmith
Tue Jun 12, 2018 2:29 am
Forum: Personal Finance (Not Investing)
Topic: death certificates...hospice and 911
Replies: 32
Views: 5063

Re: death certificates...hospice and 911

coffeehubcap wrote: Mon Jun 11, 2018 5:09 pm If you die at home and call 911 who issues the death certificate? If you're in hospice who issues the death certificate.
In IL, the funeral home enters the biographical information in, and a doctor (either the PCP, hospice, or nursing home doctor), can enter the cause of death and e-sign.
by gsmith
Sun Apr 08, 2018 12:42 am
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 43
Views: 7663

Re: Help Me Make The Case Against Online Trading Academy

I've had friends who are convinced they are superheros on Forex/SP500 hedging/real estate due to some expensive class, and once they announce they are no longer interested in BH, I wish them luck and quickly turn the conversation.

Even if you are correct, you will lose his friendship, as you're doubting his skill.
Focus on your own path, and be grateful you saw this particular wealth-killer coming.
by gsmith
Fri Apr 06, 2018 4:00 am
Forum: Investing - Theory, News & General
Topic: Excess Returns in Alternatives?
Replies: 4
Views: 977

Re: Excess Returns in Alternatives?

]Main problem to me is informational asymmetry. And absence of diversification of risk. This is akin, to me, to single stock risk, or investing in a bond issued by a single corporation. There's an excellent book "The Salad Oil Swindle", about how American Express nearly went bankrupt lending money to a man who borrowed $175 million dollars in 1966 secured by salad oil. Criminal risk aside, Any hurdle can be overcome with conservative LTV and a high enough interest rate. One ad for "hard money lenders" (people who are willing to lend based on collateral instead of credit) was something to the effect of "If you get your money back, you made a great return. If the borrower doesn't perform, hopefully you negotiated a e...
by gsmith
Thu Apr 05, 2018 9:26 pm
Forum: Personal Investments
Topic: Are Callable CD's For Real?
Replies: 6
Views: 1228

Re: Are Callable CD's For Real?

The 17% is more then likely a scam, but a Callable CD is a FDIC insured deposit. (if this was anAamerican bank)

It's a regular CD, but it gives the bank the right to redeem it when interest rates plummet.
The bank would give you back your deposit, and then turn around and borrow money at a lower rate from somewhere else.
They were very common at one point, but nowhere would such a call option demand a 15% premium.

It is much more likely they are going to give you a sale pitch for a variable annuity, in which case you should still run, but it's probably legal.
by gsmith
Thu Apr 05, 2018 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: LLC: how much attorney involvement?
Replies: 7
Views: 915

Re: LLC: how much attorney involvement?

jeninhrco wrote: Thu Apr 05, 2018 4:47 pm If I used templates from the book, would an attorney need to review them each time? Maybe just "big"/potentially tricky ones like purchasing property?
The attorney will likely recommend his template.

Spirit Rider is spot on. The insurance company you hire will be providing the attorneys that will defend you and their interest.
The LLC is worth very little unless you keep very detailed corporate records and not commingle funds.
shawndoggy wrote: Thu Apr 05, 2018 6:42 pmIf people didn't keep messing things up, lawyers would be out of business.
I would assume that statement implied that lawyers didn't keep messing things up, and the further leap that lawyers are classified as people.
Perhaps when the judges/bar association is replaced by AI, we'll have continuity?
by gsmith
Thu Apr 05, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 1211

Re: Roth IRA for inheritance (with a snag?)

marklearnsbogle wrote: Thu Apr 05, 2018 3:44 pm Thank you all for this good information, delivered quickly to boot! NOW I understand that first and foremost, one needs to be converting from a tIRA or have earned income in order to do this. :oops: I didn't know. That's why this forum is so helpful.
I've gone on a few junkets who hype Roth IRAs, but honestly, to a boglehead, a normal (taxable) brokerage account is just as good, or in some cases even better than a Roth. The very efficient nature means the investor only pays taxes on dividends until they sell and the "stepped up cost basis" means if they don't sell, the IRS will consider the present market value as the price the beneficiary paid for the property.
by gsmith
Thu Apr 05, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for inheritance (with a snag?)
Replies: 17
Views: 1211

Re: Roth IRA for inheritance (with a snag?)

There are several "5 year rules" which makes it confusing, but there is a 5 year rule for inherited Roth IRAs converted from traditional IRAs. Fortunately, it's not nearly as onerous as interpreted in this thread. See https://www.rothira.com/roth-ira-5-year-rule If the decendant passes within 5 years of the opening of the converted Roth IRA account, the beneficiary might have to pay taxes on distributions before until that 5 years expires, if it was mostly earnings (profits) inside the IRA. (As opposed to contributions). Check Schwab's IRA benefitiry calculator to figure out what the RMD would look like, and if realistic, open the IRA by end of year get the clock ticking. As I understand, there's only one clock that starts when fu...
by gsmith
Wed Apr 04, 2018 3:19 am
Forum: Personal Finance (Not Investing)
Topic: Merrill Edge over-transferred money from Vanguard
Replies: 1
Views: 792

Re: Merrill Edge over-transferred money from Vanguard

ACATS, the process used to transfer securities between brokerages, stays open until settlement, so the transfer of proceeds from the sale of the refused security to Merrill Edge was automated. Most likely, the easiest thing is to call Vanguard, explain the issue, and have them accept a wire from your credit union. It's a mistake on Vanguard's end (They shouldn't have approved the outgoing wire), and the only way I can see you getting into trouble is if you ignored it and made Vanguard chase you down. The fair thing to do is to charge margin loan interest. ($13000*.09)/365=$3.21 a day Good Luck, Greg https://investor.vanguard.com/investing/margin https://www.sec.gov/reportspubs/investor-publications/investorpubsacctxferhtm.html http://www.fi...
by gsmith
Fri Mar 30, 2018 12:38 am
Forum: Personal Investments
Topic: Investing 150k of law school tuition
Replies: 7
Views: 1188

Re: Investing 150k of law school tuition

Since the goal is less then five years, the prudent move is to invest in bonds/tbills/CD ladders. (assuming $150k will be enough to meet her objective).

A quick warning, I've spoken to many attorneys in my day job, and most are unhappy with their occupation, the last telling me "If your daughter is smart enough to be a lawyer, she's smart enough to do something else". I know at least two non-practicing attorneys who are real estate brokers. I would encourage a gut-check to make sure that the opportunities law school would provide are intellectually satisfying, and would compensate for not just the cost of education, but the opportunity costs from not working.

Either case, best of luck
by gsmith
Fri Mar 23, 2018 1:27 am
Forum: Personal Investments
Topic: [Edward Jones Guided Solutions - transfer Roth to Vanguard]
Replies: 7
Views: 1996

Re: [Edward Jones Guided Solutions - transfer Roth to Vanguard]

The major problem with most full service brokers isn't just that they are expensive in comparison, it's because they have only need to offer "suitability" investments with high commissions instead of a "fiduciary" obligation to suggest the one in your best interest. There are fees on top of fees, and they get paid to retain you as a client and jam you into high-commissioned investments, instead of focusing on performance, If you are uncomfortable going it alone, there are many fee only financial advisers who will charge by the hour to understand your tolerance for risk, and build an appropriate asset allocation. The most important thing a financial adviser does is keep you from straying away from your allocation, and low...
by gsmith
Tue Mar 20, 2018 10:46 am
Forum: Personal Investments
Topic: Is buying $50,000 worth of TSLA at this time advisable?
Replies: 46
Views: 5577

Re: Is buying $50,000 worth of TSLA at this time advisable?

Speaking as a TSLA shareholder who's position nearly doubled in value, I would say you are investing in the vision of Elon Musk and his health. It is unlikely that like Nicola Tesla or Jeff Bezos, Elon would compromise his vision for short term shareholder value. Just a few years ago, the CNBC crowd was complaining about Amazon's reinvestment of profits. I bought the stock because I could not afford the car, and because I wanted to help raise capital for the one firm run by an engineer who focused on real life milestones instead of financial metrics of an MBA. Not sure if BH was around in the 90s when Steve Jobs rejoined AAPL after NextStep, but the safe/sane money was on Microsoft's profitibility. I believe in the vision of clean solar and...
by gsmith
Tue Mar 06, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: Crypto Index Fund
Replies: 26
Views: 3246

Re: Crypto Index Fund

Perhaps. I still view it as a very patriarchal move on their part. They have no problem with non-accredited investors going to a casino and putting it all on red, yet they will not allow these same people to purchase a number of at least passingly reasonable investments. You should interpret "only for accredited investors" as code for "We are unable to provide the audited bookkeeping/disclosures/definition of an investment that would stop most scams, but as a smart investor you can navigate the due diligence by yourself instead of relying on the SEC." The difference between gambling and investing is that investments have a "house edge" (positive expected return) over time, while the casino's edge ensures the g...
by gsmith
Thu Mar 01, 2018 12:40 am
Forum: Investing - Theory, News & General
Topic: Does the JOBS act make being a landlord obsolete?
Replies: 12
Views: 2568

Re: Does the JOBS act make being a landlord obsolete?

Levels: 1 REIT > completely passive. A fund. Zero hands on control. Risk unknown. 2 Probably "crowdfunding in this slot. Unanimous investors taking a chance. Zero hands on control for investors except for the "hands on person". Very limited return. High risk. 3 "Hui" (in Hawaiian) or group of folks pooling money for an investment. All are known. Small business group or family. Many help or have active roles of involvement. Hands on control over outcome, or limited. Limited Return. Moderate Risk. 4 Personal R/E investment, own money/or loan, full control over outcome, maximum return (not shared). Minimal risk except for what is generated by self. In between 2 and 3 would be "Hard Money Lending", which is.....
by gsmith
Tue Feb 27, 2018 12:51 pm
Forum: Personal Consumer Issues
Topic: Dealership oil change worth it?
Replies: 69
Views: 10545

Re: Dealership oil change worth it?

Nearly half of the dealership's revenue comes from Service.
It's so bad, the service department subsidizes the new car price.

Elon Musk (Tesla) has been quoted several times saying "I think it’s terrible to make a profit on service", and aimed to make Tesla's service department to be revenue neutral
by gsmith
Mon Feb 19, 2018 8:20 am
Forum: Personal Investments
Topic: Roth conversions to shrink RMDs
Replies: 15
Views: 1616

Re: Roth conversions to shrink RMDs

There's also a five year rule that taxes roth conversions, even if the original owner passes away before satisfying the time period.
I believe it only covers earnings, but it wasn't clear to me in my research.
by gsmith
Fri Feb 16, 2018 10:24 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Investors Love Lottery Stocks
Replies: 2
Views: 841

Re: Larry Swedroe: Investors Love Lottery Stocks

One of the most interesting parts working with small businesses is to see risk tolerance diminish.
The second generation of ownership often loses the confidence/skills that a startup has to make decisions, out of fear of being perceived as a failure.

If one has a well-diversified core portfolio, it's my opinion a small percentage should be dedicated to non-corrolated "moon-shots", if only to prevent the regret of once was. Can't the majority of the S+P500 gains can be attributed to Apple, Microsoft, Amazon and Facebook?
by gsmith
Tue Feb 13, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Should I claim chapter 7 bankruptcy? debt 110k
Replies: 64
Views: 9955

Re: Should I claim chapter 7 bankruptcy? debt 110k

SmallSaver wrote: Tue Feb 13, 2018 6:13 pmI find the moralizing in this thread uncharacteristic of the forum.
I agree with SmallSaver. The "moral hazard" argument has already bolted. Somehow OP's broker decided to give super-amplified casino chips, and OP blew up.

I'm just going to leave this image describing the standard of living causing confirmation bias of a turkey before Thanksgiving....


Image


Taleb also recommends against picking up pennies in front of steamrollers; sure it's unlikely the steamroller will get you, but it will have a sigificant impact on quality of life as OP is learning,
by gsmith
Tue Feb 13, 2018 1:26 am
Forum: Personal Investments
Topic: UGMA vs UTMA vs Vanguard Confusion
Replies: 6
Views: 1789

Re: UGMA vs UTMA vs Vanguard Confusion

UTMA/UGMA offers the least amount of control; it can't be spent on essentials and they have the right to do whatever they wish at age of majority. That could be wasted, or even harmful if they're not prudent.

If you're going to go this route, you might want to ask the parents to "hire" their child....
If it's a parent, then they don't have to pay Medicare or Social Security
With the earned income, the children could then open an Roth IRA and compound tax-free earnings all but guaranteeing financial freedom, assuming they don't do early distributions.
by gsmith
Mon Feb 12, 2018 10:32 pm
Forum: Personal Investments
Topic: realized startup equity / schwab private client
Replies: 16
Views: 2811

Re: realized startup equity / schwab private client

The questions have really been answered, but I just wanted to leave this link here WSJ:Advisers at Leading Discount Brokers Win Bonuses to Push Higher-Priced Products Fidelity representatives are paid 0.04% of the assets clients invest in most types of mutual funds and exchange-traded funds. They earn more than twice as much, 0.10%, on choices that typically generate higher annual fees for Fidelity, such as managed accounts, annuities and referrals to independent financial advisers. “If I was sitting in front of someone and there were 20 different avenues we could choose from,” said former Fidelity financial consultant Sean Gray, “and we could choose Fidelity’s managed accounts—that is what paid us more—in my mind, that created a conflict. ...
by gsmith
Mon Feb 12, 2018 8:08 pm
Forum: Personal Investments
Topic: From EJ to Vanguard to Schwab
Replies: 21
Views: 3479

Re: From EJ to Vanguard to Schwab

Just another post expressing empathy about dealing with bad transfers
Fidelity's site will show you a preview of the ACAT request before they send it.

As some advice, Schwab/Fidelity will sometimes reimburse you the costs of transferring money if your balance is large enough.
As painful as it was, know that a couple hundred dollar mistake is minor compared to the savings of fees/commissions from EJ
Schwab is a really nice broker, with super low-cost funds, and they will over you a free soda or water when you visit, which adds a touch of class despite knowing their managed clients are paying for it.
by gsmith
Mon Feb 12, 2018 2:32 am
Forum: Personal Finance (Not Investing)
Topic: Seeking career advice - Software Engineer
Replies: 34
Views: 4131

Re: Seeking career advice - Software Engineer

A couple points - You might be able to leverage your skills with their vendors if there's a healthy ecosystem... If you enjoy and know their ERP's API, you might be able to be an easy sell for a recruiter for the same responsibilities without the drama. - If the company uses outdated tech, the more your specialization in their stack is worth to them, and less to others. (COBOL?) - Consider publishing articles/answering questions on the message board of vendors.. I've gotten AWESOME job referrals that have changed my career. - You should only have as much loyalty to a company as their management has in you. - The best salary jumps in your career are from job-changing. - There lots of age discrimination in this market due to stereotyping and ...
by gsmith
Mon Feb 12, 2018 2:12 am
Forum: Personal Finance (Not Investing)
Topic: Deciding to Buy Rental Property - Need Advice
Replies: 16
Views: 2579

Re: Deciding to Buy Rental Property - Need Advice

Having tried the landlord/rehab The "why" part is to continue to better our lives and look for additional income streams With respect. I have tried to play landlord at my peril, and I just wanted to include some warnings... - BHs don't like fees, but when buying you will be paying at least half of a 6% round-trip commission. - Your tenants may not pay on time, and may complain about heat/leaking/smells, clogged pipes, HVAC, or externalities like employment, and you may have to budget money to evict them, and repair damage. - Unless you are purchasing at nose-high prices, you will have to hire contractors who will steal supplies, make promises they won't keep, and blame others for their shoddy work. I had to pay the plumber to not ...
by gsmith
Mon Feb 12, 2018 1:51 am
Forum: Personal Investments
Topic: Wunder Capital - solar lending as an investment - Thoughts?
Replies: 9
Views: 1210

Re: Wunder Capital - solar lending as an investment - Thoughts?

Tyler Aspect wrote: Mon Feb 12, 2018 12:58 am This is just one of the many high yield instruments that will separate your money from you eventually. When the yield is very high then you know the principle value is extremely unstable. There is no free lunch. :shock:
The requirement for a highly accredited investor means the investment is exempt from usual SEC protections and disclosures, as people who meet that requirement are capable of the due diligence and diversification required.

There could be some place for this in the speculative allocation of some very rich, very lucky investor's portfolio, but I'm neither.
by gsmith
Mon Feb 12, 2018 1:45 am
Forum: Personal Finance (Not Investing)
Topic: Accidental Rollover of after tax contributions to a traditional IRA (thread 2)
Replies: 2
Views: 367

Re: Accidental Rollover of after tax contributions to a traditional IRA (thread 2)

Right, you now have a traditional IRA with non-deductable contributions.

You can either:
A: Do as you propose, and any earnings will be taxed at your tax bracket on distribution.
B: Convert the Traditional IRA with a cost basis to a Roth IRA, pay taxes on the conversion amount minus $9000, and enjoy your earnings tax-free.
by gsmith
Mon Feb 12, 2018 1:38 am
Forum: Investing - Theory, News & General
Topic: I think US interest rates could drop.
Replies: 75
Views: 12744

Re: I think US interest rates could drop.

Theoretical wrote: Mon Feb 12, 2018 1:18 am Currency hedged, the rates are comparablein both directions. Also, the end of quantitative easing is a known unknown in that it having an effect in some way is almost guaranteed but how that effect spirals out remains to be seen.
I would agree with Theoretical... we are possibly coming out of an addiction to cheap money from unprecedented measures.
If further intervention is not taken, we could look for reversion to historical yield curves, but that cannot be guaranteed.

Alas, the only safe path forward is to stay the course.
by gsmith
Mon Feb 12, 2018 1:03 am
Forum: Personal Investments
Topic: Vanguard advice--I'm confused
Replies: 30
Views: 5018

Re: Vanguard advice--I'm confused

Thanks for the input. So I should not be freaked out buying over $400,000 in bond funds right now? You may or may not freak out... here are some differences that you should know ahead of time A bond has different types of risks, some of which are comparable to a CD - Interest Rate Risk/Inflation. -- A 1% $1000 CD will pay $10 every year until it matures, and you will have to pay a penalty to access your money before maturity -- A 1% $1000 bond will pay $10 every year until it matures but can be sold for a discount/premium to the market based on interest rates. (Changes in rates are priced daily, where it would be invisible to a CD owner) -- The longer the avg maturity of a bond fund, the more sensitive it is to these daily fluctuations. Yo...
by gsmith
Mon Feb 12, 2018 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Bank offering 0.25% off mortgage interest for asset transfer
Replies: 24
Views: 4130

Re: Bank offering 0.25% off mortgage interest for asset transfer

Toward the end of the hour, he finally told me that I would pay a $50 per transaction fee if I moved my TRP account in kind into a self-directed account at Chase and kept the funds invested in TRP! There are a couple things my Chase advisor told me. - Chase calls non-managed accounts "Self-Directed", and most fees are waived for Chase Private Client. ($250k+) - Chase has a really crazy interpretation of Fiduciary rules applied to retirement accounts, and a self-directed IRA/Roth would require permission from compliance, and it sounded complicated and unlikely. - I was the only "Self-Directed" client he had, and he understood that I was allergic to fees. - Moving Fidelity SP500 Premium FUSVX from a Fidelity Brokerage Acc...
by gsmith
Sun Feb 11, 2018 1:29 am
Forum: Personal Consumer Issues
Topic: SSD + HDD good option for upgrading desktop PC?
Replies: 74
Views: 13104

Re: SSD + HDD good option for upgrading desktop PC?

CurlyDave wrote: Sun Feb 11, 2018 1:07 am The other neat trick the Mac has is called a Fusion drive. It is just a small-medium SSD combined with an ordinary large capacity drive. The system software keeps the system and recent files on the SSD, but migrates older files to the larger drive over time. 99% of the time it acts just like a large SSD, but the cost is much less.

I don't know if software for this kind of thing exists for Windows, but you might look into it.
In the Windows universe these are called Hybrid Drives, or SSHD.
Intel calls their software Smart Response Technology..

https://www.intel.com/content/www/us/en ... ology.html
by gsmith
Wed Feb 07, 2018 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: free dinner investing seminar
Replies: 396
Views: 46721

Re: free dinner investing seminar

I have never been to any free dinner investing seminar. If your friend reports to his experience on Bogleheads , it will be my privilege to donate $100 to Bogleheads. So i don't know if this counts, but this happened when I was 16. One day my mom gets a call from a telemarketer whishing her a happy mothers day, and they would like to celebrate her by giving her free popcorn and a chance to win a million dollars... for attending a timeshare presentation. My father and (mostly) I try to beg her off, offering her anything else, but she was determined that this was what she wanted on her day. So we drive to the middle of nowhere to a building that's pretending to be a cabin, and our assigned salesman is a former special-ed teacher, who is too ...
by gsmith
Wed Feb 07, 2018 9:31 pm
Forum: Investing - Theory, News & General
Topic: How to short TSLA?
Replies: 50
Views: 4769

Re: How to short TSLA?

Seeing option trading advice on Bogleheads is like watching the leaders of a temperance movement take shots of whiskey. You want to see if they can hold their liquor and if so straying from "staying the course" more then they'd admit. Both shorting stocks and options are forms of leverage; the financial equivalent of steroids. You can make very large profits short term at the expense of the long term. With shorting stocks, you are borrowing shares and then selling them, essentially owning negative shares. By buying put options, you are buying an "insurance policy", a security that will expire worthless at the expiration date unless the underlying stock is priced below the strike price of your option. There are complicate...
by gsmith
Wed Feb 07, 2018 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Would You Recommend Living Revocable Trusts? Married, Retired, No Kids.
Replies: 10
Views: 2048

Re: Would You Recommend Living Revocable Trusts? Married, Retired, No Kids.

The living trust is really great for FDIC insurance limits, as you can have $1.25 million insured at the same bank if titled correctly.
See https://www.fdic.gov/deposit/covered/trust.html
by gsmith
Wed Jan 24, 2018 3:27 am
Forum: Investing - Theory, News & General
Topic: Importance of FDIC Insurance
Replies: 17
Views: 3088

Re: Importance of FDIC Insurance

I have done a lot of research on this topic, and hopefully it might be of help.... Short Answer: It's not the end of the world if you don't have it, but it's easy enough to get that you should. First point: FDIC treats each benefitiary of a Living Trust as a depositor, so a living trust that gives $10 to four different charities, (plus yourself as grantor), you will have $1.25 million in insurance per bank. When the number of beneficiaries is five or fewer, the calculation of coverage is simple: the number of owners multiplied by the number of beneficiaries multiplied by $250,000. If the product is greater than the aggregate balance of the accounts, the funds will be fully insured. If the product is less than the aggregate balance of the ac...