Search found 907 matches

by ray.james
Fri Feb 23, 2018 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 70
Views: 2438

Re: Defining "House Poor"

My definition of house poor 1) When the total housing budget encroaches/cuts into needs/basic wants budget(Wants to a large extent is okay in my view) 2)During retired/house paid off phase, a substantial net worth locked in house that prevents ones needs/basic wants to be cut down in $ to accomodate...
by ray.james
Fri Feb 23, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on an ESPP with 2 year contribution period?
Replies: 16
Views: 428

Re: Thoughts on an ESPP with 2 year contribution period?

I have to read up a little, but the gains in this case will qualify for long term capital gains? ESPP with 2 year holding period. Not all plans qualify though as per IRS definition. This is a partial advantage of 2 year holding period. The capital gains treatment depends on how long you hold the se...
by ray.james
Fri Feb 23, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on an ESPP with 2 year contribution period?
Replies: 16
Views: 428

Re: Thoughts on an ESPP with 2 year contribution period?

I have to read up a little, but the gains in this case will qualify for long term capital gains?
ESPP with 2 year holding period. Not all plans qualify though as per IRS definition. This is a partial advantage of 2 year holding period.
by ray.james
Thu Feb 22, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Time for twins to go to daycare
Replies: 36
Views: 2273

Re: Time for twins to go to daycare

If I understand correctly you are asking which savings to slow down to meet the expenses. If your tax rate is high, I would slow down roth(350) + misc savings(by 150). Once you fill emergency fund to your needed, you can route that money to roth. Does you/spouse have Dependent care FSA.(unrelated bu...
by ray.james
Tue Feb 20, 2018 2:17 pm
Forum: Personal Consumer Issues
Topic: Sams Club vs Costco
Replies: 66
Views: 5070

Re: Sams Club vs Costco

40% of our food budget happens to be costco. The denominator includes eating out, fast food, grocery and convenience items etc. However one has to be careful not to overspend there as walking through isles will make you pick a lot more. Our crockery, utensils, car tires/oil/wipers, clothes, gifts, b...
by ray.james
Tue Feb 13, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Did you learn anything from the market correction?
Replies: 160
Views: 11146

Re: Did you learn anything from the market correction?

This correction was pretty much a blip compared to early 2016/2011 one. I graduated in 2009-10 :- scared, jobless, hopeless, student loans, extended credit cards, weeks from bankruptcy. I do not think I will ever be that scared or learning something as substantial as was during that period. On the c...
by ray.james
Mon Feb 12, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 110
Views: 8418

Re: 30 yr tips auction 2/15: 1.0% yield?

This thread is great read. Great posts by Angst and Grok. I will not buy tips yet but atleast I understand why folks are buying it and to treat them in portfolio.(and more clarity on what they area.) I have come full circle on I -bonds. May be tips too someday.
by ray.james
Fri Feb 09, 2018 2:34 pm
Forum: Forum Issues and Administration
Topic: Black Theme for Site?
Replies: 38
Views: 3002

Re: Black Theme for Site?

I love the light blue background on bogleheads. Very easy on eyes. I wish the homepage uses that as well(the left panel uses that or some type of grey if I am not wrong).
by ray.james
Fri Feb 09, 2018 1:27 pm
Forum: Investing - Theory, News & General
Topic: I'm Calling an Emerging Markets Bottom
Replies: 278
Views: 50262

Re: I'm Calling an Emerging Markets Bottom

Ding! Valuation alert.
Fundamental index EM are now under 10 F-p/e. Yes this is not 2016 lows in pricing, but earnings were way up to bring it back under 10. The regular index is at 13.5 which is higher than 12 it was when this thread started but came down from 15.
Both are at 3% yield.
by ray.james
Thu Feb 08, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Mega /+ backdoor roth instead of 529
Replies: 16
Views: 889

Re: Mega /+ backdoor roth instead of 529

It sounds like you can do this. The downside is that you have to set aside 400k for your kids between now and when they go to college. For most people, that's a steep price to pay. I think we'll have about $400k total for two kids as well. We put $76k into our kids 529s total, and aren't putting an...
by ray.james
Thu Feb 08, 2018 4:16 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 5600
Views: 1265961

Re: U.S. stocks in freefall

Correct me if I am wrong, but even after all of this we STILL haven't had an actual correction (10% drop), but it is extremely close. 24071.54 / .9 = 26746.16 I think the Dow peaked at 26616.71 so no, this isn't even a correction yet. Looks like 23860.12/26616.71 = 0.8964 now that we are at the clo...
by ray.james
Thu Feb 08, 2018 3:31 pm
Forum: Investing - Theory, News & General
Topic: How to deal with regret
Replies: 87
Views: 7404

Re: How to deal with regret

Lauretta, What you are feeling is natural and many investors face as they graduate to emotional investing maturity. For me, I remember 1 thing: - expectations vs reality I remember a good number target in x Years. As long as I am on journey I am fine. Its a marathon, sometimes it runs faster than av...
by ray.james
Thu Feb 08, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: Volatility as a cause of volatility?
Replies: 18
Views: 1156

Re: Volatility as a cause of volatility?

Thanks nisipirius. The headline made me crack.

My Favourite, new terminology:
Why volatility is hitting ‘low vol’ strategies

If I may add this another headline,
"Bitcoin Is Less Volatile Than Stock Market Volatility Index, SEC Chair Says"
by ray.james
Thu Feb 08, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Mega /+ backdoor roth instead of 529
Replies: 16
Views: 889

Re: Mega /+ backdoor roth instead of 529

So following the roth withdraw rules, all my previous roth contributions, previous taxable conversion now that is >5 years, and previous and future nontaxable conversions (backdoor roth contributions and mega backdoor roth contributions) will be able to be withdrawn tax-free and penalty free even b...
by ray.james
Thu Feb 08, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Mega /+ backdoor roth instead of 529
Replies: 16
Views: 889

Re: Mega /+ backdoor roth instead of 529

My question - my wife and I are teachers - we contribute to a 403b - not a 401k - is there a way for us to participate - or is it limit to 401k's only? Thanks In addition to what retiredjg said, if you have plan that has reasonable costs but roth 403B/roth 457 but not (after-tax+ in-service rollove...
by ray.james
Wed Feb 07, 2018 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: Mega /+ backdoor roth instead of 529
Replies: 16
Views: 889

Re: Mega /+ backdoor roth instead of 529

1) Do you see any issues/misunderstanding of how things work Yes. The 5 tax year clock only applies to the taxable portion of the conversion when you do the back door. If you contribute $5,500 and convert it before any earnings occur, there is no taxable portion for the clock to attach to. The mone...
by ray.james
Wed Feb 07, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Mega /+ backdoor roth instead of 529
Replies: 16
Views: 889

Mega /+ backdoor roth instead of 529

I am thinking of changing couple of stratergies and would like to run them down with bogleheads. 1) Mega backdoor roth instead of 529: I use a 529 now(1 year old) and I am thinking of using mega backdoor roth option for flexibility. Wife has plans for sending kids to foreign colleges and this gives ...
by ray.james
Tue Feb 06, 2018 4:46 pm
Forum: Forum Issues and Administration
Topic: we need an individual stock sub forum
Replies: 31
Views: 1278

Re: we need an individual stock sub forum

panchilly, That is against the mission of the bogleheads, moderators, site owners and the non-profit that backs it partially. just my view: In the past threads like people holding huge individual stocks and contemplating what to do with gains, are usually the case for individual stock discussions ca...
by ray.james
Tue Feb 06, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Make $90k, pay no Federal Income Tax in 2018? Check / critique this scenario.
Replies: 71
Views: 10649

Re: Make $90k, pay no Federal Income Tax in 2018? Check / critique this scenario.

It's totally possible. A friend of mine who is married and has three children is in a position to pay no federal income tax with an income above $200k. His California state tax would be much higher at around $1500. Deductions and the child tax credit make this possible. Wow, that is crazy tax optim...
by ray.james
Mon Feb 05, 2018 9:37 pm
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 226
Views: 27185

Re: Hitting The Sell Button

What I will say is that I am glad that I have been rebalancing my portfolio since July 2013. I hated selling stock but I am glad that I did. My asset allocation was 66% stocks and 34% bonds and cash just before we saw this dramatic and recent downdraft. I just checked my asset allocation and it is ...
by ray.james
Sun Feb 04, 2018 1:59 am
Forum: Personal Finance (Not Investing)
Topic: [Flawed?] Paying off mortgage in 5 years
Replies: 17
Views: 2146

Re: [Flawed?] Paying off mortgage in 5 years

This is no different than rotating balances on credit cards to pay off education loans or something similar. However while that/this would save interest, the pay off date does not move that much lower(often in few months than years due to lower interest). However the risk adds up on cash flow. Let m...
by ray.james
Fri Feb 02, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 5600
Views: 1265961

Re: U.S. stocks in freefall

Anybody know the reason for the fall? I am confused as the US economy is growing, the job market is tight, earnings are decent and the world economy seems to be picking up. Internationally Oil prices are increasing as is demand, there is no real war that can or may break out. Syria, Iraq, Afghanist...
by ray.james
Fri Feb 02, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 5600
Views: 1265961

Re: U.S. stocks in freefall

Anybody know the reason for the fall? I am confused as the US economy is growing, the job market is tight, earnings are decent and the world economy seems to be picking up. Internationally Oil prices are increasing as is demand, there is no real war that can or may break out. Syria, Iraq, Afghanist...
by ray.james
Fri Feb 02, 2018 1:28 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 5600
Views: 1265961

Re: U.S. stocks in freefall

triceratop wrote:
Fri Feb 02, 2018 11:44 am
I bought VSS and VGIT today. Foreign stocks fell more.
Quite surprised with emerging markets resisting to drop as much as developed international.
vwo 1.3%
vss 1.7%

Need to see atleast 15% drop/PE under 20 for me to re-balance 5% from bonds to stocks. However today is paycheck time for 401k :)
by ray.james
Thu Feb 01, 2018 2:12 am
Forum: Personal Consumer Issues
Topic: "I Volunteered for the Hospital Board and was Sued for Millions."
Replies: 44
Views: 10371

Re: "I Volunteered for the Hospital Board and was Sued for Millions."

Thanks for sharing it POF and Taylor.
It is absolutely terrifying and very educating on understanding the pitfalls and law. This might actually discourage and make me do a lot more diligence to go for board of HOA/charities.
by ray.james
Wed Jan 31, 2018 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Should I stop contributing to 401(k) to pay off debt
Replies: 44
Views: 2485

Re: Should I stop contributing to 401(k) to pay off debt

From your post, your issue is not about the debt but about cash flow. I would do something differently. I will pay off the loan to parents, car and furniture. This seems very doable in less than an year. This would free up almost 400+ per months and will reduce your anxiety on debt level/payoff budg...
by ray.james
Wed Jan 31, 2018 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: MFJ 2 allowances underpayment penalty
Replies: 16
Views: 929

Re: MFJ 2 allowances underpayment penalty

Forgive my ignorance, but how do I "do married but withhold as single."? Is that just a change with our W4? We would change our filing status to Single (with HR in the payroll system) but continue to file our taxes as Married Filing Jointly? I am unsure when the new W4 will come out from IRS due to...
by ray.james
Wed Jan 31, 2018 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: MFJ 2 allowances underpayment penalty
Replies: 16
Views: 929

Re: MFJ 2 allowances underpayment penalty

If you want to be absolutely certain about avoiding the underpayment penalty, you can make sure to withhold at least 100% of your 2017 taxes. If you want to be hardcore about it, you could look at the withholding tables and calculate exactly how many allowances you need to get there. Not always. At...
by ray.james
Fri Jan 26, 2018 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: What will you do with your tax refund?
Replies: 46
Views: 2938

Re: What will you do with your tax refund?

For a third year in a row I owe IRS, this time over 1K but I am fine as I crossed 100% of last year dues.
Three years ago, I had a 9$ due, which made me feel genius.
by ray.james
Fri Jan 26, 2018 2:07 pm
Forum: Investing - Theory, News & General
Topic: Dalio says bonds have entered a bear market
Replies: 96
Views: 9407

Re: Dalio says bonds have entered a bear market

It's important to realize that a bond bear market isn't at all like a stock bear market. Even in the worst bond bear markets bond holders don't lose a lot of money quickly. Rather they lose positive inflation adjusted return over time. The bond bear market, unlike a stock bear market, doesn't sudde...
by ray.james
Thu Jan 25, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: facebook-Ira to Roth
Replies: 7
Views: 490

Re: facebook-Ira to Roth

Doesn't wash rule apply if there is a cross transaction in a Taxable account. Ira, 401k, roth cross transactions does not matter between themselves unless there is a same ticker transaction in taxable. The rule is to prevent double dipping tax losses.
by ray.james
Wed Jan 24, 2018 8:17 pm
Forum: Personal Consumer Issues
Topic: Buying a house now versus waiting (Bay Area)
Replies: 35
Views: 3182

Re: Buying a house now versus waiting (Bay Area)

calisaver wrote:
Wed Jan 24, 2018 8:16 pm
Personally, it seems like the values right now are not sustainable.
Why? almost every good school district homes are getting 7+ offers. Where will rest of buyers go... There is a lot of pent up demand and sufficient enough people with money.
by ray.james
Tue Jan 23, 2018 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8817

Re: Working in the real world

Every time I moved I raised my salary by 30% but cost of living increased as well. However it is still much better as we both max our 401k's and IRA. Two things: 1) Coasts/mid tier plus cities do have jobs and do promote faster as they have competition for employees. So there is money made when empl...
by ray.james
Fri Jan 19, 2018 1:38 pm
Forum: Personal Consumer Issues
Topic: Costco Citi removing Foreign Transaction Fees; No Fee/Reimbursed Fee International ATM; ; Free International Data
Replies: 40
Views: 4578

Re: Costco Citi removing Foreign Transaction Fees; No Fee/Reimbursed Fee International ATM; ; Free International Data

This is great news! We will also cut down to 3 cards from four but that was planned before. This is just the cherry for our decision.

I am surprised Citi is not putting up banners in Costco to advertise this!
by ray.james
Thu Jan 18, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: 70% chance of correction in 2018 according to Vanguard - Highest in 15 years
Replies: 96
Views: 10977

Re: 70% chance of correction in 2018 according to Vanguard - Highest in 15 years

10% for a market correction. With a P/E ratio of 26, and a CAPE ratio of almost 34, I'd say we are closer to a 33% correction, perhaps up to 50% correction. I've only seen a higher CAPE at the end of the Internet bubble of the late 1990's. Stocks are not even throwing off dividends like they used t...
by ray.james
Fri Jan 12, 2018 6:55 pm
Forum: Personal Consumer Issues
Topic: Has InformedforLife.org (vehicle safety ratings) gone too far?
Replies: 29
Views: 2068

Re: Has Informed for Life .org (vehicle safety ratings) gone too far?

I too had the same feeling when I visited the site last week. If 2 cars are consider reduced safety while one is just because <3200 weight limit and other one is rated badly in rollover/other test; it does not make sense. Case in point is prius which now come safety sense standard, and NCAP/IIHS/NIH...
by ray.james
Fri Jan 12, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions at 24%(CA -> WA)
Replies: 4
Views: 542

Roth conversions at 24%(CA -> WA)

I am wondering if this is a wise strategy. I have a possible job opportunity lined up that I am very much inclined to take and wife is on-board. The job will make me move from CA to WA. I have few weeks to decide yet. However one of the thoughts I am also having is; Given the new tax brackets will i...
by ray.james
Fri Jan 12, 2018 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: 529 gift limits
Replies: 11
Views: 1011

Re: 529 gift limits

15k is the limit from this year; since the limit is raised for 2018. It is also per person/gift-giver. So 15K from grandma, 15K from grandpa. Regarding super-funding, others have explained and there is wiki which explains it better. There is a potential 150K gift "out of estate taxes" if both grandm...
by ray.james
Thu Jan 11, 2018 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Am I doing this right?
Replies: 5
Views: 681

Re: Am I doing this right?

Varoma, welcome to the forum. A few pertinent question that others might ask you for giving replies. Your marginal tax rate. Is your emergency fund sufficient? When people say 6 months, it is 6 months total expenses. is 16k enough with your new married situation? Is your roth divided across 7 funds?...
by ray.james
Thu Jan 11, 2018 3:30 pm
Forum: Personal Consumer Issues
Topic: Help choosing a hatchback- civic, golf, prius and Volvo V60
Replies: 40
Views: 2248

Re: Help choosing a hatchback- civic, golf, prius and Volvo V60

Sportwagen has had a few issues. Most expensive was A/C which died...ended up costing $1500 at independent shop and took several days to resolve. A/C is definitely a problem area based on consumer reports ratings. The radio died but it was all replaced under warranty. Otherwise we had some minor is...
by ray.james
Wed Jan 10, 2018 7:06 pm
Forum: Personal Consumer Issues
Topic: Help choosing a hatchback- civic, golf, prius and Volvo V60
Replies: 40
Views: 2248

Re: Help choosing a hatchback- civic, golf, prius and Volvo V60

I agree that a 2-3 year old v60 seems to be a steal, at least relative to its level of luxuries and original price as a new vehicle. I suspect that Lower expected reliability and higher maintenance costs account for this high depreciation. I tried to learn more but last time I checked consumer repo...
by ray.james
Wed Jan 10, 2018 6:15 pm
Forum: Personal Consumer Issues
Topic: Help choosing a hatchback- civic, golf, prius and Volvo V60
Replies: 40
Views: 2248

Re: Help choosing a hatchback- civic, golf, prius and Volvo V60

ETadvisor wrote:
Wed Jan 10, 2018 5:58 pm
Just curious as to why the Mazda was eliminated?
Mazda3 hatchback was indeed the best looker. But the criteria for choosing was in the order:

utility/cargo space
Safety
Fuel Economy + reliability
back seat hip/shoulder room. - much lower weight than above 3.
by ray.james
Wed Jan 10, 2018 3:50 pm
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 200
Views: 13694

Re: Post your Financial Milestone Announcements Here

My third one will be all about tax reduction, but I put it off when Congress started messing with the tax code last Fall. Hopefully I'll get it written this year. We'll see. Lots of pans in the fire right now. Congratulations on hitting the number WCI. I hope your blog will transform many more doct...
by ray.james
Wed Jan 10, 2018 2:27 pm
Forum: Personal Consumer Issues
Topic: Help choosing a hatchback- civic, golf, prius and Volvo V60
Replies: 40
Views: 2248

Re: Help choosing a hatchback- civic, golf, prius and Volvo V60

I don't think you can go wrong with any of them. That said, as a family car, I would lean Volvo, and look for one with the integrated booster seats in the rear. With two kids, these will pay dividends for years in how much easier they are to put kids in and out of the car - and the kids themselves ...
by ray.james
Wed Jan 10, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: How diversified are you really with cap weighted foreign markets?
Replies: 37
Views: 2092

Re: How diversified are you really with cap weighted foreign markets?

A cap weighted portfolio is maximally diversified. Any non cap weighted portfolio can be seen as the sum of a cap weighted portfolio (valued less than the total capital), plus a number of bets in individual companies. A simple example can clarify the concept. Let’s take the simplest possible index,...
by ray.james
Wed Jan 10, 2018 1:39 pm
Forum: Personal Consumer Issues
Topic: Help choosing a hatchback- civic, golf, prius and Volvo V60
Replies: 40
Views: 2248

Re: Help choosing a hatchback- civic, golf, prius and Volvo V60

The general idea that I can buy a 42k new BMW/Volvo/MB/... for 28k a couple of years and it will cost the same as buying a 28k honda is in general delusional:). I am not saying buying the used car is a bad idea. I am saying you should expect it to cost more than the same priced new car. This is wha...
by ray.james
Tue Jan 09, 2018 6:08 pm
Forum: Personal Consumer Issues
Topic: Help choosing a hatchback- civic, golf, prius and Volvo V60
Replies: 40
Views: 2248

Help choosing a hatchback- civic, golf, prius and Volvo V60

This is for my cousin who just announced welcoming a second child to their family. They are looking to replace an 10 year old elantra with a new hatchback/safer car. The second car is an SUV that is now used for longer trips etc. This car will serve as main car in town, hauling kids, workplace commu...
by ray.james
Tue Jan 09, 2018 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Pay down student loan or mortgage first
Replies: 18
Views: 1170

Re: Pay down student loan or mortgage first

Echoing others, I would pay down student loans. (I would also bolster the emergency fund if one has a kid.)
by ray.james
Fri Jan 05, 2018 6:43 pm
Forum: Personal Consumer Issues
Topic: Can anyone recommend a case for the Google Pixel 2?
Replies: 12
Views: 573

Re: Can anyone recommend a case for the Google Pixel 2?

Spigen makes pretty good shock protective covers.
https://www.spigen.com/collections/google-pixel-2

check ebay/amazon for discounted pricing.