Search found 149 matches

by ChapMan
Fri Mar 13, 2020 8:45 am
Forum: Investing - Theory, News & General
Topic: How is this pandemic different than 2008?
Replies: 137
Views: 9343

Re: How is this pandemic different than 2008?

I understand that there is some dispute about the mortality rate of COVID-19, and I understand that the common comparison used is for seasonal influenza. I see that some are saying that the mortality rate for COVID-19 is actually much lower because a lot of people who get sick are never counted. What I can't quite grasp, however, is why the same logic doesn't apply to seasonal influenza? We think seasonal influenza has a mortality rate of about 0.1%, but how do we know that there are a lot more people who get it but never seek treatment and aren't counted? Anecdotally, neither I nor any co-workers I talk about this with have ever gone to the hospital due to seasonal influenza, and it seems like I get it about 3 out of every 4 years. Am I co...
by ChapMan
Tue Dec 18, 2018 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

Your order and calculations are still wrong. You should be using the proper IRS Instructions and documents as I pointed out in the third post. I.e. Schedule C, Schedule SE and Publication 560 Deduction Worksheet for Self-Employed and Form 1040. Schedule C $30,000 Income $1,000 Expenses $29,000 Profit Schedule SE $29,000 * 92.35% = $26,782 $26,782 * 12.4% = $3,321 Note: This is only applicable to the degree the above line and your W-2 Box 3 provide. $26,782 * 2.9% = $777 $3,321 + 777 = $4,098 SE tax $4,098 / 2 = $2,049 1/2 SE tax Deduction Worksheet for Self-Employed $29,000 - $2,049 = $26,951 Net earnings from self-employment. $26,951 * 20% = $5,390 Maximum employer contribution (subject to annual addition limits) Form 2018 Qualified Busin...
by ChapMan
Tue Dec 18, 2018 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

As we approach the end of the tax year, I wanted to check my estimated tax liability and see if my thinking is correct since I'll have to make quarterly payments. For these numbers, assume that I will not hit the SS max and will have to make the full SS contribution for all of my earnings and I'm purposely ignoring state taxes for now: 1. $30,000 gross revenue. 2. $1,000 in expenses. 3. One half of SE tax (7.65%) would be $2,295. 4. Take out the $2,295 immediately: $30,000 - $2,295 = $27,705. 5. Take out the $1,000 in expenses: $27,705 - $1,000 = $26,705. 6. $26,705 is my profit, so I can put in 20% of that into my solo 401(k): $26,705 * 0.2 = $5,341. I can put in a maximum of $5,341 into my solo 401(k). Assume I put $5,000 into my solo 401...
by ChapMan
Wed Oct 17, 2018 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

1. $30,000 gross revenue (assume no business expenses just to make it easier). 2. One half of SE tax (7.65%) would be $2,295. The 12.4% component of the 15.3% SE tax does not apply if your If your W-2 Box 3 Social Security (SS) earnings + (business profit * 92.35%) are > the SS maximum wage base (2018 = $128,400). Then your 1/2 SE tax calculation is incorrect. In fact, if just your W-2 Box 3 SS earnings are >= $128,400. Only the 2.9% Medicare component applies. Your 1/2 SE tax = $30,000 * 92.35% = $27,705 * 1.45% ~= $402. 3. Take out the $402 immediately: $30,000 - $402 = $29,598 . 4. $29,598 is my profit net self-employment earnings , so I can put in 20% of that into my solo 401(k): $29,598 * .2 = $5,920 . I can put in a maximum of $5,920...
by ChapMan
Wed Oct 17, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

Alright, thank you all for the replies. As I was going through my calculations, another question popped into my head about the order of operations: How does the 199A deduction interact with the 20% profit I am allowed to put into the solo 401(k) as my employer contribution? My original thought process was as follows: 1. $30,000 gross revenue (assume no business expenses just to make it easier). 2. One half of SE tax (7.65%) would be $2,295. 3. 20% 199A deduction of $30,000 gross revenue would be $6,000. 4. The profit would therefore be: $30,000 - $2,295 - $6,000 = $21,705. 5. 20% of my profit would be: $21,705 * .2 = $4,341. 6. This means that the maximum the employer could contribute is $4,341. 7. If I contribute the maximum, my taxable in...
by ChapMan
Wed Sep 12, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

Thanks, I'm way out of EIC territory, unfortunately (or fortunately?).

One more question popped up - I'm thinking more and more about a solo Roth 401(k) since Vanguard has this option. Can the employer contribution go into the Roth 401(k) (since I've used up all the employee space already)? If so, I imagine that the employer contribution is no longer deductible. Is that accurate?
by ChapMan
Mon Sep 10, 2018 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

It looks like the less I deduct as business expenses, the more I can save into the solo 401(k). I'll have to look at what I actually want to deduct now. Deduct all your legitimate expenses. IRS guidance actually requires this, if to not do so would result in a tax benefit (larger 401k contributions) Interesting. This makes sense, but does anyone happen to know the pub that has more details on this? For instance, some things are easy - paper, toner, a printer used solely for business, etc. But I'm finding that a lot of my proposed deductions are in fact more or less judgment calls based on my estimated usage between business vs. private (cell phone, internet, a new computer, etc.). I'm keeping track as best I can, but the best I can do is o...
by ChapMan
Mon Sep 10, 2018 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

TwstdSista wrote: Mon Sep 10, 2018 6:44 pm
ChapMan wrote: Mon Sep 10, 2018 2:52 pm Does anyone know if I have to actually open the solo 401(k) before the end of the calendar year, or can I open it AND fund it in 2019 for tax year 2018?
I believe a solo 401k must be open in the year you wish to fund it -- so you must open it prior to 12-31-2018.

There is also a quirk about the Employee contribution must be determined in writing prior to the year ending, but it does not need to actually be funded until the tax deadline.
Interesting. Since I already maxed out $18,500 for this tax year, I won't have to worry about the employee contribution at least.
by ChapMan
Mon Sep 10, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

nosivol wrote: Mon Sep 10, 2018 4:11 pm
ChapMan wrote: Mon Sep 10, 2018 2:52 pm https://www.irs.gov/newsroom/tax-cuts-a ... ncome-faqs). Or am I misreading?
It's only not allowed if your income is above the following: "$315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers".

Since you have ~235K in income MFJ you are below the 315K threshold. Sec199A is good to go for you.
Wow I am bad at this. I need to read better!
by ChapMan
Mon Sep 10, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Re: Solo 401(k) Questions (and sanity check)

Thanks for the amazing replies, everyone! Some clarifying questions below: JBTX - Thanks for the info. It looks like the less I deduct as business expenses, the more I can save into the solo 401(k). I'll have to look at what I actually want to deduct now. Does anyone know if I have to actually open the solo 401(k) before the end of the calendar year, or can I open it AND fund it in 2019 for tax year 2018? Regarding 199A, the IRS seems to include consulting as something specifically excluded from this deduction (see Q5 here - https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-deduction-for-qualified-business-income-faqs). Or am I misreading? Spirit Rider - Thanks for the calculation sample, but unfortunately we'r...
by ChapMan
Sat Sep 08, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 28
Views: 3180

Solo 401(k) Questions (and sanity check)

Hello Everyone, I'm thinking of starting a solo 401(k) to stash some cash from a consulting job I landed a few months back. I'm posting here for a sanity check to make sure I understand the concept/limits of a solo 401(k). ASSUMPTIONS: Gross income from consulting - $30,000 TSP/401(k) employee deductions from day job - maxed out Gross MFJ income - ~$235,000 (including the $30,000 above) Deductions - probably the standard deduction Business expense deductions - Not sure yet, possibly ~$2,000 or so Total income minus 7.65% employer contribution of self-employment taxes - $27,705 Consultant job - not eligible for 199A deduction (I think this is accurate) No employees Under 50 years old QUESTIONS 1. I understand that in my situation, I am eligi...
by ChapMan
Thu Aug 02, 2018 6:05 pm
Forum: Personal Consumer Issues
Topic: Buy Another Car or Keep Up Old One?
Replies: 13
Views: 1621

Re: Buy Another Car or Keep Up Old One?

Thank you all for your input. In the end, we decided to trade the car in and now drive a Honda Civic after paying about $9,000. The BMW has been having too many problems, we only saw more maintenance on the horizon. Funnily enough, I actually enjoy driving the CIvic more than the BMW as it seems to be smaller, faster, and more nimble while I found the BMW actually somewhat clunky. Anyway, here's hoping I can say good bye to giant repair bills!
by ChapMan
Sun Jul 29, 2018 9:45 pm
Forum: Personal Consumer Issues
Topic: Buy Another Car or Keep Up Old One?
Replies: 13
Views: 1621

Re: Buy Another Car or Keep Up Old One?

If the Bmw looks and drives good now, I would sell it on the private market and get closer to 9000. +1 The "average" annual expense for the older BMW is not too helpful, imo. It's the increasing likelihood of a catastrophic expense that worries me -- much more so than with a Honda or Toyota. That said, I plan to drive my 2011 335d into the ground -- mostly because it's fun to drive. I expect it to cost more than $1200 annually in expenses, and I have mentally budgeted for that. I agree. That's my fear as well. I estimated $1,200 per year, but we've been hit with one-time $3,000 expenses. It might smooth out over time, but it just seems like there's always something to fix on the thing. I don't think we get enough enjoyment out of...
by ChapMan
Sun Jul 29, 2018 9:44 pm
Forum: Personal Consumer Issues
Topic: Buy Another Car or Keep Up Old One?
Replies: 13
Views: 1621

Re: Buy Another Car or Keep Up Old One?

dwickenh wrote: Sun Jul 29, 2018 8:18 pm If the Bmw looks and drives good now, I would sell it on the private market and get closer to 9000. Now the difference is only 6000.00 for the Honda and you make that back in reduced maintenance in 6 years or less. The Civic will be less expensive to own than the BMW and will handle 150,000 miles much better. The 2 cars are not comparable in ride, so make sure you are ok with the Honda before you sell the Bmer
We thought about the private sales. It was just something I didn't necessarily want to deal with, but I think I can get about $8,000 for this one. I'll have to see how much stuff I'd have to fix to get it up to that, though.
by ChapMan
Sun Jul 29, 2018 9:42 pm
Forum: Personal Consumer Issues
Topic: Buy Another Car or Keep Up Old One?
Replies: 13
Views: 1621

Re: Buy Another Car or Keep Up Old One?

Your BMW is a 2009 and thus is nine years old. Not too long ago, the average age of the car on the road was over 10 years. Your car has some useful life in it. My understanding is the BMW's are fairly expensive to maintain but it probably is still a nice car and worth keeping. You have already taken most of the depreciation. As long as you keep up the maintenance, it should continue to be a reliable car. Problem is that older cars with deferred maintenance tend to have several things show up at once and this breaks the budget. I would bet you could get another six years out of it. It all depends upon the availability of parts, once parts get difficult to get, it is time to say good-bye. If the car looks nice with good paint and good uphols...
by ChapMan
Sun Jul 29, 2018 7:32 pm
Forum: Personal Consumer Issues
Topic: Buy Another Car or Keep Up Old One?
Replies: 13
Views: 1621

Buy Another Car or Keep Up Old One?

Hello Everyone, I am trying to decide whether I should trade in our current vehicle (2009 BMW 3 series) for a different car (2015 Honda Civic) or if I should instead pay the cost to keep the BMW until the wheels fall off of it. We haven't fully decided on the type of car we would replace the BMW with, but suffice it to say that it'll be something more practical. I want to make sure I'm conceptualizing this correctly and making the right comparison. My general belief is that a Honda would be a lot more practical and less ridiculous in maintenance costs, but then again, keeping the car we have now and maintaining it as best we can might be a better decision since we already own the car (although I fear I may be exhibiting an adherence to the ...
by ChapMan
Sun Mar 18, 2018 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Exemptions, W-4s, and Tax Liability
Replies: 12
Views: 1448

Re: Tax Exemptions, W-4s, and Tax Liability

That's easy enough. We've done that and it looks like we'll have the same problem in 2018. Adding extra tax contributions isn't hard. What I'm trying to figure out is why. We have always been a dual-income household since we began work and filing taxes. What I can't figure out is why we went from a refund of a few hundred/thousand dollars to a sudden deficit of ~$5k for the past two years. If I understand your question correctly, you are wondering why withholding forms filled on in one way, in the past, no longer leads to withholding which results in tax due/refund as in the past. But it's not as easy as thinking "but our W4s are the same". And that's because you have filled out the W4s in such a way that the tax withheld, relati...
by ChapMan
Sun Mar 18, 2018 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Tax Exemptions, W-4s, and Tax Liability
Replies: 12
Views: 1448

Re: Tax Exemptions, W-4s, and Tax Liability

You need to work through your taxes by hand and figure out your tax liability for 2018 NOW. Then check your withholdings against that and estimate how much in taxes you will pay by the end of the year. It really is simple to calculate and will increase your understanding of the tax law so you can take advantage of the various ways to reduce your tax liabilities. Agree 100%. The IRS has a calculator (that I believe is up and running for the new tax law now), but I suggest printing a 1040-ES and working your way through that. Just skip the bits about self-employment, the rest of the form still works for W4 taxpayers. If you pay state income taxes, check for a state version as well. When my wife started doing work as an independent contractor...
by ChapMan
Sat Mar 17, 2018 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Exemptions, W-4s, and Tax Liability
Replies: 12
Views: 1448

Re: Tax Exemptions, W-4s, and Tax Liability

I assume you and your partner are MFJ since it appears you have a combined return. When you filed your W-4 forms, did you each check "Married but withhold at higher single rate"? Withholding generally works most accurately for taxpayers who have a single job and no other income. If taxpayers have multiple jobs (regardless if it is one earner with multiple jobs or two earners each with a job apiece) and/or if there are other sources of income (e.g., in your case capital gains), then withholding is unlikely to come out right, due to the progressive rate structure of our tax system. We see this kind of situation a lot at our VITA site (though of course with much smaller incomes, since we have a limit of $54K in household income.) Bu...
by ChapMan
Sat Mar 17, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Exemptions, W-4s, and Tax Liability
Replies: 12
Views: 1448

Tax Exemptions, W-4s, and Tax Liability

This may seem like a stupid question, but my partner and I have been getting hit with ~$5k for the last two years and for the life of me I can't quite figure it out since we are both claiming 0 exemptions for withholding purposes. Partner and I are both employed. As an illustrative example, I'll give rough numbers this year: Partner income - $117,000 (not including the $18k in traditional 401k plan) My income - $50,000 (not including $18k in traditional TSP) Partner withheld federal taxes - $17,500 My withheld federal taxes - $7,700 Income tax owed - $30,100 Now, I'm simplifying this. We had ~$5k in capital gains (most long-term), but I can't figure out why the withholding is so low if we both claim 0 exemptions. At this point, is the only ...
by ChapMan
Sat Jun 03, 2017 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Help: Need advise on my situation with Student Loan
Replies: 8
Views: 1355

Re: Help: Need advise on my situation with Student Loan

I would refi to an outside company as soon as you havr the income to do so. Doesn't sound like your payment is covering interest which means you are getting behind not ahead every month. I second this advice. A few years after I graduated from grad school, I refinanced with Earnest and got a variable ~2.2% rate that's now around 2.7% (and probably going higher). Considering that it started at 6.8%, it seems like a win to me. Earnest also lets you do a fixed rate if you want. When I was researching this, Earnest had the most competitive rates, although companies like SoFi and even your local credit union might have better rates today. If/when you decide to do this, try to get a bonus offer/referral too - it won't be much, but every little b...
by ChapMan
Sat Oct 17, 2015 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Refinancing
Replies: 22
Views: 7845

Re: Student Loan Refinancing

Bump to see if anyone has had any recent experience/recommendations for student loan refinancing. I've looked at Sofi and DRB so far. I've also looked at Earnest, which based on their soft pull, seem to be able to give me a lower variable and fixed rate than the other two companies mentioned above. I also like their flexibility. Anyone have any experience with them/heard of them?
by ChapMan
Fri Nov 14, 2014 10:12 pm
Forum: Personal Investments
Topic: TSP over contribution
Replies: 12
Views: 3362

Re: TSP over contribution

Apparently I may have just overcontributed $3k or so. Does anyone know if anything has changed since the start of this thread? My understanding is that since I put in $17.5k into the Roth TSP and ~$3k into the traditional TSP, my refund will be pro rata such that I'll end up with something like $16.5k in the Roth and $1k in the traditional, and that I don't have to do anything to get it (it'll come automatically around January 2015), right?
by ChapMan
Mon Sep 01, 2014 1:52 pm
Forum: Personal Consumer Issues
Topic: Philly Hotels, with the family
Replies: 15
Views: 2012

Re: Philly Hotels, with the family

It's been a while since I've been in the Philly area, but if you have a government affiliation, I do believe that the Four Seasons actually has a government rate that makes staying there comparable to a less well-regarded hotel on the outskirts of the city. One of the few places that I know of where the Four Seasons will honor a government rate Good to know! :greedy Do you know if the Four Seasons government discount applies to federal and state workers alike? I'm fairly new to state employment and would appreciate hearing about hotel or similar discounts by businesses for personal use. Whoops - sorry, OP - don't mean to hijack this thread! I guess I'll limit this question to ChapMan regarding the Four Seasons chain That's a good question,...
by ChapMan
Mon Sep 01, 2014 12:09 am
Forum: Personal Consumer Issues
Topic: Philly Hotels, with the family
Replies: 15
Views: 2012

Re: Philly Hotels, with the family

It's been a while since I've been in the Philly area, but if you have a government affiliation, I do believe that the Four Seasons actually has a government rate that makes staying there comparable to a less well-regarded hotel on the outskirts of the city. One of the few places that I know of where the Four Seasons will honor a government rate.

Otherwise, there's a few economical choices in the UPenn area that is fairly safe (don't go beyond 40th or so) and has public transportation to Center City (or you can enjoy a long walk if you want). You didn't say when you were going, so I'd say to avoid the University City area during the Fall rush when everyone's trying to get into town to help their new college kids move in.
by ChapMan
Fri Apr 04, 2014 9:23 pm
Forum: Personal Consumer Issues
Topic: Republic Wireless
Replies: 69
Views: 20972

Re: Republic Wireless

I figured I'd try to resurrect this thread rather than starting my own... I'm about to leave my contract with my current provider and am in the market for a new plan/phones. I'm looking for two smart phones (one with low/moderate usage, the other with moderate usage)) and two regular phones (talk and text should be enough). After doing some research, it looks like it's come down to either Ting or Republic Wireless for me. They're both on the Sprint network and it looks like Ting gives us a bit more flexibility (different phones, pricing seems favorable), so I was wondering if anyone had any relevant experience they'd be willing to share regarding Ting or RW (or really any other comparable plan, like some of those Wal-Mart plans?). Thanks! ...
by ChapMan
Mon Mar 31, 2014 7:15 pm
Forum: Personal Consumer Issues
Topic: Republic Wireless
Replies: 69
Views: 20972

Re: Republic Wireless

I figured I'd try to resurrect this thread rather than starting my own... I'm about to leave my contract with my current provider and am in the market for a new plan/phones. I'm looking for two smart phones (one with low/moderate usage, the other with moderate usage)) and two regular phones (talk and text should be enough). After doing some research, it looks like it's come down to either Ting or Republic Wireless for me. They're both on the Sprint network and it looks like Ting gives us a bit more flexibility (different phones, pricing seems favorable), so I was wondering if anyone had any relevant experience they'd be willing to share regarding Ting or RW (or really any other comparable plan, like some of those Wal-Mart plans?). Thanks!
by ChapMan
Tue Jul 16, 2013 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Help create a Financial Presentation: Calling all Bogleheads
Replies: 134
Views: 32450

Re: Help create a Financial Presentation: Calling all Bogleh

This is a great idea, and I'd be more than happy to hop onto a team to contribute whatever I can. I deal with young sailors/Marines/airmen/soldiers a lot, as well as more seasoned officers, so a nice shell presentation that can be calibrated to an audience sounds like a fantastic idea. In fact, the docs on Google Drive are already quite impressive.
by ChapMan
Sun Apr 21, 2013 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Starting Fidelity Brokerage Acct & Fidelity Amex CC
Replies: 12
Views: 2552

Re: Starting Fidelity Brokerage Acct & Fidelity Amex CC

I have this card and I actually do not have a Fidelity account. What I did was to accumulate enough awards for $250, call customer service, and have them cut a check to me for $250. It's a paper check that I have to deposit at a later time, but it means I don't have to start a Fidelity account.

That said, the Priceline card is probably better/easier to use as an "everyday" card.
by ChapMan
Fri Mar 22, 2013 11:49 am
Forum: Personal Consumer Issues
Topic: Maximizing a Stay at the Ritz
Replies: 29
Views: 4542

Re: Maximizing a Stay at the Ritz

All,

Lest I orphan this thread, I figured I'd give a quick update.

Thank you all for your experience and contributions. I ended up just doing what a lot of you recommended - enjoying the room, the view, and the lobby/bar area. It was overall a nice stay, and Philadelphia is a nice city. I would never pay the $300+ regular price for a room there if it were my own dime (I honestly didn't see much difference in the rooms between that and a Sheraton/Hilton/Marriott/etc.), but it was an enjoyable experience.
by ChapMan
Wed Mar 13, 2013 8:00 pm
Forum: Personal Consumer Issues
Topic: Maximizing a Stay at the Ritz
Replies: 29
Views: 4542

Maximizing a Stay at the Ritz

All,

Due to some (fortunate) circumstances, I find myself with a free evening at the Ritz in Philadelphia this coming weekend. Being cheap/frugal, I'd never stay there myself, so I don't have too much experience with luxury (ultra-luxury?) hotels like the Ritz-Carlton.

What I'd like to ask the collective wisdom of the forum here is how I can maximize my enjoyment of my stay at the Ritz. The room is comped, but other services aren't, so I'm looking for little fun things I can ask for/do that are complementary. I'd appreciate any ideas and any experiences you've all had.

This is a weird request, I know, but I'd like to enjoy my stay and not look/sound stupid by asking for things they can't do/won't do for no upcharge.

TIA.
by ChapMan
Sat Mar 09, 2013 10:07 pm
Forum: Personal Investments
Topic: 25 isn't too late to start......right? [Military]
Replies: 17
Views: 2758

Re: 25 isn't too late to start......right? [Military]

First, you've probably already found the military part of the Wiki, but it's pretty useful: http://www.bogleheads.org/wiki/Military_finances There's a lot of good and pretty up-to-date information there. Now, to your specific questions: 1. I’ve committed some financial sins in the past, but I’ve settled down. Bottom line is that I should have more in investments by now. I paid cash for a $28k car and put $7k into it after around 2 years ago… good news is that I plan on driving it until the wheels fall off. I just turned 25 last week, so hopefully time is still on my side. My main question is how to maximize this deployment as an opportunity to really stack on the investments considering my extra income. It’s a little too easy to just dump m...
by ChapMan
Fri Jan 18, 2013 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Buying listed house without realtor
Replies: 8
Views: 1181

Re: Buying listed house without realtor

You may also be able to find a buyer's agent that will refund you part of his commission. This is legal in many states (although you may have to double-check your state). If the buyer's agent doesn't have to do anything, he can split his commission with you. Assuming a 3% buyer's agent commission, you may be able to talk him into refunding you 2%-2.5% of his/her commission if s/he basically has to do nothing.
by ChapMan
Thu Oct 18, 2012 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Buying a Condo/Townhouse in DC (and lost!)
Replies: 23
Views: 3984

Re: Buying a Condo/Townhouse in DC (and lost!)

Also, I remember a discussion about rent vs. buy in the recent past that had a link to a long-ish academic article about the cost and benefits of both. I can't seem to find it via the search function. Does anyone know/remember what I'm talking about?
by ChapMan
Thu Oct 18, 2012 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Buying a Condo/Townhouse in DC (and lost!)
Replies: 23
Views: 3984

Re: Buying a Condo/Townhouse in DC (and lost!)

Thank you all for your insights. I'm definitely not set on buying, but with my community that way it is, chances are that I'll be bouncing in and out of the DC area, moreso if I actually have a desire to be there. That said, there will be times when the condo will be vacant and have to be rented out. I figure you either rent the apartment or you rent the money, either way you're throwing away money at something. I did the NYT calculator again with the following settings: Rent: $2,000 per month Cost: $300,000 Down payment: $0 Interest Rate: 3.5% Property Taxes: 1% Increase in rent 2% (based on experience so far in the DC area) Increase in house price 1% (just a guesstimate) Condo Fee: $400 Everything else left in default. This gives me a 4-5...
by ChapMan
Sat Oct 13, 2012 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a Condo/Townhouse in DC (and lost!)
Replies: 23
Views: 3984

Re: Buying a Condo/Townhouse in DC (and lost!)

Yeah, that's true. Renting would be easier. The thing about is that as active duty military, there's no guarantee I'll be in any place for more than 2 years at a time, but there are certain "hubs" where you can bounce back into and out of throughout your career. Washington DC is, unsurprisingly, one of them. So the plan would be to do 2 years in DC, 2 years somewhere else, back to DC again, rinse and repeat. Otherwise I may never own a place in the next 20 years. That might not be so bad, I like to think of myself as disciplined enough to invest the difference if I keep paying rent, but I do like the idea of owning. You either rent the house or you rent the money I guess, but maybe I'd prefer to rent the house and be able to lever...
by ChapMan
Sat Oct 13, 2012 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a Condo/Townhouse in DC (and lost!)
Replies: 23
Views: 3984

Buying a Condo/Townhouse in DC (and lost!)

All, I once again come to this community for financial advice. I have decided to try to look for a condo/townhouse to buy in the DC area. I like the NW area and have been looking for a 1 bedroom/1 bath for around $300,000 (absurd, I know). I've looked at a few places, but I am a bit clueless as to the process and do not want to be taken for a ride. So far my plan is to get a VA loan and put nothing down, which frees my cash flow a bit to put in extra principal payments if I want to. I haven't talked to many banks yet, but have only shopped online. Real estate-wise, I am thinking of working with/getting a buyer's agent in the hopes that s/he could give me some insight into the real estate market in the area and give me a clue about what is/i...
by ChapMan
Mon Oct 08, 2012 10:21 am
Forum: Personal Investments
Topic: Direct Rollover into TSP
Replies: 7
Views: 1336

Re: Direct Rollover into TSP

Thanks for the responses.

Brian, I'm fairly certain I can make fully deductible contributions for a while yet. I plan on maxing out my TSP for the foreseeable future, which should put me below $58k for some time yet.

Is there a difference between doing annual rollovers vice one big rollover right before I want to do a backdoor Roth? It seems like one big rollover might be cleaner/easier?

oneyedfiona - thanks for sharing your experience. That gives me a bit of comfort since I hear some not-so-good things about TSP and its responsiveness from other people and how they've gotten hosed by having a take a distribution since things weren't lined up properly.
by ChapMan
Sun Oct 07, 2012 12:57 pm
Forum: Personal Investments
Topic: Direct Rollover into TSP
Replies: 7
Views: 1336

Direct Rollover into TSP

Hello All, I am looking down the road a bit and want to make sure that my thought process makes sense: I am currently on a loan repayment assistance program which has a graduated rate in determining how much the program will help me with my loans (the more I make the less the program will help me). The relevant income is measured by my adjusted gross income, giving me an incentive to sock away money into TSP and other deferred programs. I work for the federal government currently so I have access to TSP. I may soon be hitting a point whereby my AGI makes it so that the program will help me significantly less. My plan is to start putting money into a traditional IRA whereby I max it out every year (I already have a Roth IRA) to lower my AGI ...
by ChapMan
Sun Jul 15, 2012 11:22 am
Forum: Personal Investments
Topic: Edward Jones or fee-based advisor?
Replies: 17
Views: 21176

Re: Edward Jones or fee-based advisor?

This community is largely composed of do-it-yourselfers with regard to personal finance. Some (many?) of us do seek outside professional help, but I'd venture to say that most of us run our own relatively simple portfolios. It's very difficult to answer your question without knowing what funds EJ has you in and what value a fee-based advisor could possibly add. I will say, however, that someone charging 5% AUM has a MASSIVE obstacle in his way to get you better returns than a comparable low-cost index fund. If you are interested in seeking professional advice, you may want to consider a fee-ONLY financial advisor vice a "fee-based" advisor. That way, they charge you a set amount rather than a continuing percentage of your assets. ...
by ChapMan
Wed Jun 27, 2012 1:40 pm
Forum: Personal Investments
Topic: Index-Linked Digital Notes
Replies: 9
Views: 1089

Re: Index-Linked Digital Notes

The product here actually is a bit worse than the index-linked CDs because this one isn't a CD and isn't FDIC-insured.
by ChapMan
Tue Jun 26, 2012 11:12 am
Forum: Personal Investments
Topic: Index-Linked Digital Notes
Replies: 9
Views: 1089

Index-Linked Digital Notes

All, A friend of mine asked my opinion on Goldman Sachs "Index-Linked Digital Notes." I had never heard of these before and from reading a bit of the registration statement, it sounds like it's just some weird derivative (this one is based on the S&P 500 index). As far as I can tell, it's basically a bet whereby you can potentially make out well, or not. I may have missed on some other significant red flags, but I'd appreciate everyone's views on what they think of such "investments." I'd personally never put my money into this because it just seems far too complicated for me to deal with, but I wanted to give something more concrete to my friend. I can't find a link to the exact same note he's looking at, but a simi...
by ChapMan
Wed Jun 13, 2012 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Ivy League Myths Uprooted
Replies: 288
Views: 26935

Re: Ivy League Myths Uprooted

I know this is a weird thing to assert on a forum like this, but it's really not all about the money. I think if you look at college as a way to earn more income, it probably doesn't make a whole lot of sense to pay full price for a fancy private school vs. in-state college. But if you think of it as a way to help you grow, the calculation becomes difference. There's a lot of focus on this forum about the financial cost-benefit of certain actions, and rightfully so, but for a lot of people, it's not just about money. Maybe it's about being able to meet and learn from people you wouldn't come into contact with otherwise. Maybe it's about a program here or there that you can't find somewhere else. Maybe it's a time when you can take a class o...
by ChapMan
Fri May 04, 2012 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone rent a car for driving trips?
Replies: 30
Views: 3172

Re: Anyone rent a car for driving trips?

We do this a couple times a year, when we need a larger vehicle or when we'll be driving where the roads are rough, (and we also rent through Enterprise). Since we keep our cars a long time, our larger vehicles (minivans) have a lot of miles on them, and I don't like the idea of breaking down in the middle of nowhere and being at the mercy of a local mechanic. Driving a rental: 1. Reduces the chance of a breakdown, as rentals are almost always less than a year old. Just to this point - I'd be a bit wary of this. I rented a car from Enterprise like 2 years ago and I'm still trying to unwind myself from that disaster. The car broke down, fingers got pointed about who to blame, and I'm still still fighting with them. Depending on the company,...
by ChapMan
Wed May 02, 2012 7:31 pm
Forum: Personal Investments
Topic: I've proven that market timing is bad, but ...
Replies: 45
Views: 4451

Re: I've proven that market timing is bad, but ...

Here's an idea (from the idiot that bought into RIG literally 2-3 days before the Deepwater Horizon disaster), with the caveat that basically everything I do to try to time the market is wrong:

- We both plan to DCA. You buy x% of your portfolio now.
- If it falls a%, I buy in with x% of my portfolio.
- If it rises a%, you buy in with another chunk.
And so on and so forth. This way, my bad luck combined with your bad luck, one of us has to be right, no?
by ChapMan
Mon Apr 30, 2012 6:29 pm
Forum: Investing - Theory, News & General
Topic: "The Stock Market Game"
Replies: 51
Views: 5815

Re: "The Stock Market Game"

All,

You know, we have a lot of people on this board with a broad range of experiences and skills. It honestly might be a very valuable exercise to try to think up a conceptual board game to teach this stuff. I for one would be very interested and would be willing to lend whatever support or ability I can to such a project. I wonder if others have the time/inclination to do this as well?

EDIT: oops, totally missed the posts immediately above. Ah well, the game sounds interesting!
by ChapMan
Tue Apr 10, 2012 4:13 pm
Forum: Personal Investments
Topic: New O-1 looking for some advice.
Replies: 18
Views: 2174

Re: New O-1 looking for some advice.

Thanks for the wiki page, I've added that one to bookmarks.

I agree with your statements about emergency funds, As soon as I get my retirement contributions maxed, I'll start working on building up an emergency fund. Just out of curiosity, what type of account do you have your emergency fund in? Checking, MM, CD, saving, other?
I actually have split my emergency funds between BOA (yes, they're terrible, but I have automatic loan repayment with them and the two-three month delay that apparenty it would take to get it fixed is too much of a PITA for me to deal with, plus I might miss a loan repayment) and i-bonds. After a certain time, you can take money out of your i-bonds without too much of a penalty (if any at all).
by ChapMan
Mon Apr 09, 2012 11:21 am
Forum: Personal Investments
Topic: New O-1 looking for some advice.
Replies: 18
Views: 2174

Re: New O-1 looking for some advice.

MIDN,

You should check out the wiki here: http://www.bogleheads.org/wiki/Military_finances

It gives you the basics to get started.

As a JO a bit further up in the food chain, I've taken a bit more of an aggressive stance than you have: (see here: http://www.bogleheads.org/forum/viewtop ... =1&t=64238). I've slimmed down quite a bit in terms of the # of funds I hold thanks to this place. I also still have an emergency fund equivalent to 3-4 months' expenses. I know that you feel like a commission is ironclad job security, and often it is, but in my designator I've seen people lose it surprisingly quickly.
by ChapMan
Mon Apr 09, 2012 7:32 am
Forum: Personal Investments
Topic: Starting out: NYC on a budget
Replies: 25
Views: 2755

Re: Starting out: NYC on a budget

rasputin wrote:i have no idea how realistic this is but....

you could potentially lower expenses but living further out. then again, that may contradict what you want to experience in nyc.

you could save a fair amount of money by biking to work instead of taking the subway.
I enjoy biking to work now, but if you're going to do that in NYC, you might want to splurge on a better insurance plan that has more than catastrophic coverage.