Search found 353 matches

by JimInIllinois
Sat May 18, 2019 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 116
Views: 4410

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Marginal Tax Rate is the percent increase (decrease) in tax liability due to adding (subtracting) $1 of income, i.e. it is the tax rate on the "next" ("last") dollar of income. It is customary to ignore changes in the marginal rate that are due to rounding, tax tables, and other periodic step funct...
by JimInIllinois
Fri May 17, 2019 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 116
Views: 4410

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

How about this: A taxpayer's marginal tax rate is the amount by which tax liability increases due to a small increase in income, expressed as the percentage of the income increase by which the tax liability increases. For example, if earning an additional $20 per year would increase your tax liabili...
by JimInIllinois
Tue May 07, 2019 9:54 pm
Forum: Personal Investments
Topic: I will inherit 2Mil What to do with it?
Replies: 54
Views: 8116

Re: I will inherit 2Mil What to do with it?

hawaii808 wrote:
Tue May 07, 2019 9:14 pm
I want to retire on on the 2 mIl as I am 70 of age.
You should at least research putting some of it into an immediate fixed annuity.
by JimInIllinois
Sat Apr 27, 2019 3:05 pm
Forum: Personal Investments
Topic: Early Retirement Fixed Annuity?
Replies: 9
Views: 697

Re: Early Retirement Fixed Annuity?

The main reason to buy an annuity is to get paid for taking on mortality risk, i.e., for having your payments stop if you and your spouse die. If this risk is low (five years when you're relatively young) you shouldn't expect to be paid much for it. If you sign up at age 65 for payments starting at ...
by JimInIllinois
Sun Mar 31, 2019 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Finish backyard before selling?
Replies: 25
Views: 2015

Re: Finish backyard before selling?

Can you post a picture? How bad is this backyard? Its hard to fathom what is really entailed to advise you. For 30k, it sounds like there is no landscaping there at all. Is that true? zero, nada, nothing but dirt n' weeds :) . However, the front yard is really nicely landscaped though per the build...
by JimInIllinois
Tue Feb 19, 2019 9:50 pm
Forum: Personal Investments
Topic: Tilting AA into more stocks
Replies: 20
Views: 1290

Re: Tilting AA into more stocks

It is a good point that capital gains become taxable in case of changing funds, but could you clarify what is meant by changing funds? Selling & buying shares of different index funds? Yes, if you have capital gains in a taxable account in, for example, a target date fund, and realize you would be ...
by JimInIllinois
Sun Feb 17, 2019 11:22 pm
Forum: Personal Investments
Topic: Tilting AA into more stocks
Replies: 20
Views: 1290

Re: Tilting AA into more stocks

Based on the same logic, I'm not worried too much about tax efficiency at the present time, since my assets are so small (due to the late start) that it practically makes no difference. Having said that, I thought that I could increase my retirement assets quite a bit by exposing my portfolio to mo...
by JimInIllinois
Sun Feb 17, 2019 10:41 pm
Forum: Personal Investments
Topic: Tilting AA into more stocks
Replies: 20
Views: 1290

Re: Tilting AA into more stocks

Since you want to do something more complex than a target retirement fund, maybe you should look at using a three-fund portfolio to adjust your asset location for tax efficiency? You may also consider alternatives to a bond fund such as I-bonds or a stable value fund.
by JimInIllinois
Sat Jan 12, 2019 12:51 pm
Forum: Personal Investments
Topic: IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?
Replies: 5
Views: 525

Re: IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?

Is this a hypothetical question? Like maybe you are wondering whether you should include the EE bond interest on a final return that hasn't been filed yet? (In which case, I think the answer is that you ("you" being the person who inherits the EE bonds from the deceased) keep the relevant pages of ...
by JimInIllinois
Sat Jan 12, 2019 12:07 pm
Forum: Personal Investments
Topic: IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?
Replies: 5
Views: 525

IRS trouble due to "U.S. Savings Bond Interest Previously Reported"?

Has anyone ever had a problem with the IRS due to subtracting inherited savings bond interest that was included on the decedent's final tax return? It seems like making a large amount of interest reported on a 1099-INT go away with a single line of generic text and no documentation might raise a red...
by JimInIllinois
Wed Nov 28, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: How to place windfall into stocks
Replies: 6
Views: 1158

Re: How to place windfall into stocks

If you are on an asset allocation glide path then I wouldn't put a big chunk of new money in stocks that you would be pulling out again in under five years. Invest the windfall so that your overall asset allocation is where you want it five years from now, then keep your asset allocation constant fo...
by JimInIllinois
Wed Oct 31, 2018 1:16 am
Forum: Personal Consumer Issues
Topic: Luxury Sedans for around $25k used with lower miles? AWD?
Replies: 38
Views: 2803

Re: Luxury Sedans for around $25k used with lower miles? AWD?

You can get a new Subaru for around this price. AWD and collision avoidance standard. Not "luxury" but plenty nice.
by JimInIllinois
Sat Oct 27, 2018 3:24 pm
Forum: Personal Consumer Issues
Topic: Just Moved. Furnishing Apartment. Beanbag recommendations
Replies: 19
Views: 1706

Re: Just Moved. Furnishing Apartment. Beanbag recommendations

Go on craigslist and buy real furniture from someone who is leaving town.
by JimInIllinois
Tue Oct 23, 2018 10:07 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 11018

Re: Debunking Bonds in Taxable

One scenario I can envision where bonds in taxable is beneficial is: -You retire early (before 59 1/2) -The market is in a downturn so you don't want to sell stocks from taxable accounts -You can't access bonds without special withdrawals from IRAs (like 72t) Why would you not want to sell stocks f...
by JimInIllinois
Mon Oct 22, 2018 10:49 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 11018

Re: Debunking Bonds in Taxable

One scenario I can envision where bonds in taxable is beneficial is: -You retire early (before 59 1/2) -The market is in a downturn so you don't want to sell stocks from taxable accounts -You can't access bonds without special withdrawals from IRAs (like 72t) Why would you not want to sell stocks f...
by JimInIllinois
Mon Oct 22, 2018 8:49 pm
Forum: Personal Investments
Topic: Very short term taxable
Replies: 2
Views: 302

Re: Very short term taxable

Vanguard has several good money market funds (prime, federal, and treasury) paying over 2%, plus a California municipal money market fund. https://investor.vanguard.com/mutual-funds/list?filterAllAssetClasses=false&filterMoneyMarket=true&filterFiftyThousandAndUp=true&filterLowCostInvestor=true#/mutu...
by JimInIllinois
Fri Aug 24, 2018 12:12 am
Forum: Personal Investments
Topic: Inheritance—Advice Requested
Replies: 63
Views: 7192

Re: Inheritance—Advice Requested

Why not Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) in place of VIOO in taxable?
It has a lower expense ratio (.09% vs .15%) and should save on income taxes while tracking the same index.
by JimInIllinois
Fri Aug 10, 2018 9:24 am
Forum: Personal Consumer Issues
Topic: Should I Buy a Tablet?
Replies: 16
Views: 1465

Re: Should I Buy a Tablet?

Buy a Fire HD 8 for $60 (https://www.amazon.com/dp/B01J94T4R2/re ... ab_ds?th=1) and see what you like/hate about it.
Personally I like having a tablet just for books/video that doesn't have my email etc. on it for security reasons.
by JimInIllinois
Tue Jun 12, 2018 11:58 pm
Forum: Investing - Theory, News & General
Topic: Paul Merriman criticism?
Replies: 73
Views: 13172

Re: Paul Merriman criticism?

Please pardon a noon question. Has anyone figured out how to implement International Small Cap via Schwab or Vanguard? Also, how do folks allocated to US LC, US SC, Intl LC, Intl SC? I am sorry for the stupid question. If the question is inappropriate please let me know that too! At https://paulmer...
by JimInIllinois
Mon Apr 02, 2018 8:42 pm
Forum: Personal Consumer Issues
Topic: New Microwave - what to select?
Replies: 11
Views: 1480

Re: New Microwave - what to select?

Panasonic Inverter. Low power is actually low power, not high power alternating with off.
by JimInIllinois
Sat Feb 10, 2018 9:37 pm
Forum: Personal Consumer Issues
Topic: Does it ever make sense to buy a new car?
Replies: 103
Views: 9598

Re: Does it ever make sense to buy a new car?

Buy out the 2015 Camry, then save for a couple of years and buy your wife a new car with cash.
by JimInIllinois
Mon Jan 15, 2018 11:16 pm
Forum: Personal Investments
Topic: Help with tax efficient asset allocation for taxable account
Replies: 16
Views: 2605

Re: Help with tax efficient asset allocation for taxable account

boglenobNYC wrote:
Mon Jan 15, 2018 10:44 pm
I don't have tax-advantaged account and not planning to have. I have a goal of early retirement abroad.
OK, that's outside my experience. I hope you've done your homework on this.
by JimInIllinois
Mon Jan 15, 2018 10:38 pm
Forum: Personal Investments
Topic: Help with tax efficient asset allocation for taxable account
Replies: 16
Views: 2605

Re: Help with tax efficient asset allocation for taxable account

Have you seen https://www.bogleheads.org/wiki/Tax-managed_fund_comparison ? If you have savings in tax-advantaged accounts, look at the asset allocation across your entire portfolio rather than treating taxable and tax-advantaged separately, so you could put small caps in tax-advantaged and S&P 500 ...
by JimInIllinois
Mon Jan 15, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: DFA Has Introduced Target Date Funds - LifeCycle Based?
Replies: 64
Views: 10138

Re: DFA Has Introduced Target Date Funds - LifeCycle Based?

Wondering if there are any updated opinions on the DFA Dimensional Target Date Retirement Income Funds two years in. https://us.dimensional.com/funds/dimensional-2025-target-date-retirement-income-fund https://www.tiaa.org/public/investment-performance/nonpropmutualfunds/profile?ticker=92810731 http...
by JimInIllinois
Sat Jan 13, 2018 7:25 pm
Forum: Personal Consumer Issues
Topic: Replacement Suggestions For Microwave Oven
Replies: 22
Views: 2166

Re: Replacement Suggestions For Microwave Oven

I'd recommend an "inverter" model. On most microwaves the different power levels are achieved by turning full power on and off on a cycle of 15 seconds or so, so at power level 5 you get 10 for 7.5 seconds and 0 for 7.5 seconds. An inverter model applies lower power continuously, which I think is be...
by JimInIllinois
Thu Dec 14, 2017 11:01 pm
Forum: Personal Consumer Issues
Topic: Need to find a Used/Refurbished Macbook Air
Replies: 24
Views: 2116

Re: Need to find a Used/Refurbished Macbook Air

I'd recommend just getting a new 13" Macbook Air. Used would probably need the battery replaced (not do-it-yourself) before she graduates. She'll get her (or your) money's worth out of it.
by JimInIllinois
Thu Dec 07, 2017 12:07 am
Forum: Personal Investments
Topic: End of life care: urgent.
Replies: 9
Views: 2414

Re: End of life care: urgent.

I would have two goals, both needing legal advice:
1) Giving her as much influence as possible over the appointment of a new guardian.
2) Ensuring that as much of her estate as possible is used for the grandkids' education after they turn 18 rather than being siphoned off for their living expenses.
by JimInIllinois
Wed Feb 08, 2017 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Meb Faber and John Bollinger - you spend 80-90% of the time in drawdown?
Replies: 5
Views: 1187

Re: Meb Faber and John Bollinger - you spend 80-90% of the time in drawdown?

But if you bought at $25 a share and years later it gets to $50 a share and then falls to $40 or $30, is that really a drawdown? Aren't you still positive (up from where you bought)? Maybe I'm just equating drawdown with "loss" and that's not what's intended. Any input is appreciated. Thanks. Drawd...
by JimInIllinois
Mon Feb 06, 2017 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Family Emergency, Seeking Tax and Legal Insights
Replies: 11
Views: 2395

Re: Family Emergency, Seeking Tax and Legal Insights

But if she is not thinking straight, how can she make any decisions? Apparently the legal system is allowing her to make decisions, terrible ones, the consequences of which the OP would like to help his loved ones avoid. His sister-in-law may be a person, but the choices are being made by the disea...
by JimInIllinois
Mon Dec 19, 2016 12:23 am
Forum: Personal Investments
Topic: Portfolio Advice for Worried 70 years olds
Replies: 9
Views: 1819

Re: Portfolio Advice for Worried 70 years olds

You could show them that income (dividends) from stocks is much less volatile than prices, so their income should be stable. With 70% bonds they will never be forced to sell stocks into a down market, so they can ride out any downturns. Finally, if they do want to reduce their risk, show them that t...
by JimInIllinois
Tue Oct 25, 2016 11:43 pm
Forum: Personal Consumer Issues
Topic: Chocolate Recommendations
Replies: 64
Views: 6839

Re: Chocolate Recommendations

Try Aldi, usually right near the entrance.
by JimInIllinois
Sat Oct 22, 2016 9:03 pm
Forum: Investing - Theory, News & General
Topic: How to know phone call from mutual fund company is legitimate?
Replies: 18
Views: 2452

How to know phone call from mutual fund company is legitimate?

At around 9am this morning (Saturday) I received a phone call from someone claiming to be from XXX mutual fund company (major, not Vanguard) that I recently opened an account with wanting to clarify some detail of my account. She then said she needed to verify who she was talking to and what was my ...
by JimInIllinois
Sat Jun 18, 2016 12:19 pm
Forum: Personal Investments
Topic: Nice problem to have, Too much cash headed my way next 2.5 years
Replies: 22
Views: 3277

Re: Nice problem to have, Too much cash headed my way next 2.5 years

However #8 and #46 seem to conflict with the Taxable Account concept (?). 8. Don’t keep a heap of money in your checking account. 46. Don’t keep money in the stock market that you’ll need to spend within five years. What's the conflict? #8 doesn't say anything about keeping money in a higher-yieldi...
by JimInIllinois
Thu Feb 25, 2016 9:53 pm
Forum: Personal Investments
Topic: I Bonds for Emergency Fund?
Replies: 22
Views: 2766

Re: I Bonds for Emergency Fund?

Just thought I'd mention it since emergency funds usually connote money you plan to use in the next 1-5 years. It's important that funds needed for emergencies be liquid (that means you can get your money when you need it and hopefully without penalties). I'd say a true emergency fund is one you pl...
by JimInIllinois
Mon Feb 15, 2016 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to save money and keep the house clean?
Replies: 48
Views: 7583

Re: How to save money and keep the house clean?

How many people live in the house with you? If it's just you then you are either the worlds biggest slob or you are cleaning things that aren't dirty, pulling weeds that nobody would notice, and controlling pests that are long dead. Figure out how much time you are willing to invest in cleaning and ...
by JimInIllinois
Sun Jan 10, 2016 11:02 pm
Forum: Personal Consumer Issues
Topic: First Time Buying Furniture
Replies: 30
Views: 4518

Re: First Time Buying Furniture

Splurge on a good mattress and get everything else off of Craigslist. Lots of new furniture is crap, regardless of price.
Don't buy a desk - just use a big table. Get enough seating that you can have people over.
by JimInIllinois
Tue Jan 05, 2016 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: If all space heaters = 1500w max, then buy the cheapest one?
Replies: 25
Views: 3185

Re: If all space heaters = 1500w max, then buy the cheapest one?

My understanding is that some use the 1500w more efficiently than others. I use the a blower/fan-like 1500w unit in our bathroom which quickly reaches high temp (and dries out the air), however in a dry basement room use a 1500w oil unit which heats more gradually and evenly since I'm down there fo...
by JimInIllinois
Wed Nov 25, 2015 5:38 pm
Forum: Personal Consumer Issues
Topic: Travel backpacks with removable backpack option
Replies: 42
Views: 6233

Re: Travel backpacks with removable backpack option

I've been pretty happy with the Rick Steves Convertible Carry-On Backpack:
https://store.ricksteves.com/shop/p/carry-on-backpack
by JimInIllinois
Thu Oct 29, 2015 8:38 pm
Forum: Personal Investments
Topic: Should we go with TIAA/CREF Portfolio Advisor?
Replies: 30
Views: 6064

Re: Should we go with TIAA/CREF Portfolio Advisor?

I wouldn't do it, and certainly not on the claim that superior returns (at what risk?) will cover their fees. I would stick to the annuities in her retirement plan. What kind of plan is it (403b, 401a, ...) and what funds are available?
by JimInIllinois
Sat Jul 18, 2015 8:01 pm
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 100
Views: 25901

Re: The "No Bonds" portfolio

This guy is either being disingenuous or doesn't know how bonds work: With interest rates at record lows it is only logical to assume that interest rates will move higher sometime in the not too distant future. Consequently, I believe that bonds, as an asset class, should temporarily at least be av...
by JimInIllinois
Sat Jul 18, 2015 11:15 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 100
Views: 25901

Re: The "No Bonds" portfolio

This guy is either being disingenuous or doesn't know how bonds work: With interest rates at record lows it is only logical to assume that interest rates will move higher sometime in the not too distant future. Consequently, I believe that bonds, as an asset class, should temporarily at least be av...
by JimInIllinois
Sat Jun 06, 2015 10:12 am
Forum: Personal Finance (Not Investing)
Topic: New 12" Macbook: Which one to buy?
Replies: 10
Views: 6210

Re: New 12" Macbook: Which one to buy?

I love my 13" Air.
by JimInIllinois
Sat May 30, 2015 11:01 pm
Forum: Personal Investments
Topic: Upcoming Economic Bubble
Replies: 45
Views: 8020

Re: Upcoming Economic Bubble

Congratulations on getting a stable job. Your $9500 is a good emergency fund, so either keep it in a bank or at most invest half of it in a bond fund. Set up 10% of each paycheck (at least - more would be better) to automatically buy into whatever 100% stock index fund portfolio you like. Then get o...
by JimInIllinois
Fri May 29, 2015 12:34 am
Forum: Personal Finance (Not Investing)
Topic: Long term capital gains tax question
Replies: 7
Views: 1179

Re: Long term capital gains tax question

By default your sale will use FIFO (first in first out) accounting, so the oldest shares will be sold first, resulting in a long-term gain (or loss). See http://www.bogleheads.org/wiki/Cost_basis_methods
by JimInIllinois
Tue May 12, 2015 9:21 am
Forum: Personal Investments
Topic: Opinions on Fidelity Freedom Index 2020 fund?
Replies: 5
Views: 1246

Re: Opinions on Fidelity Freedom Index 2020 fund?

Consider the Vanguard Life Strategy funds. $3000 minimum and fixed stock/bond ratios:
https://investor.vanguard.com/mutual-fu ... estrategy/#/
by JimInIllinois
Tue May 12, 2015 9:09 am
Forum: Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 2243

Re: Portfolio Advice: Especially with TIAA Real Estate

Would Trea fit your definition as something that mirrors housing prices? Depending on the purchase price of the house, my wife and I could use the $10,000 withdrawal from a roth account towards a downpayment. TREA is commercial real estate, not residential, but it's the closest thing I can think of...
by JimInIllinois
Mon May 11, 2015 10:56 pm
Forum: Personal Investments
Topic: Opinions on Fidelity Freedom Index 2020 fund?
Replies: 5
Views: 1246

Re: Opinions on Fidelity Freedom Index 2020 fund?

This fund has 7% in a money market fund earning 0.1% interest, which is a waste given your time horizon. Since the fund assumes you are retiring soon it will be even more conservative in the future. There are funds that maintain a constant 60/40 ratio if that is what you want.
by JimInIllinois
Mon May 11, 2015 10:43 pm
Forum: Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 2243

Re: Portfolio Advice: Especially with TIAA Real Estate

The defined benefit pension cash value should be excluded from your asset allocation calculation unless you are planning to cash it in during the next market crash to buy stocks. Treat the pension (and social security) as reducing your income needs during retirement. The only funds I would consider ...
by JimInIllinois
Sun May 10, 2015 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Philosophies of frugality.
Replies: 64
Views: 9723

Re: Philosophies of frugality.

Why experience is better than things? I see so many saying that here. We don't like to travel but we like nice things (house, cars, shoes, clothes). Why spending money on experience such as travel is better the others? The specific claim made by researchers is that buying novel, memorable experienc...