Search found 3303 matches

by MathWizard
Mon Apr 22, 2019 11:41 am
Forum: Investing - Theory, News & General
Topic: When to prioritize funding 529?
Replies: 19
Views: 1230

Re: When to prioritize funding 529?

Most people do not have enough savings to fund everything. It appears that you do, so the 529 is likely advantageous to you over taxable. I would put it last of the tax advantaged funds, as you do, so most would never get to the 529. I did put some in because I got a state deduction for it, otherwis...
by MathWizard
Mon Apr 22, 2019 11:34 am
Forum: Investing - Theory, News & General
Topic: Why should stocks beat bonds in the long run?
Replies: 96
Views: 5362

Re: Why should stocks beat bonds in the long run?

... Is your premise is that the expect returns of bonds should be greater than stocks because sometimes it happens that bond markets beat stock markets? What's your theory behind this premise? If anything, I would expect that in the very long run (many centuries), the world average return of stocks...
by MathWizard
Sun Apr 21, 2019 5:01 pm
Forum: Investing - Theory, News & General
Topic: Why should stocks beat bonds in the long run?
Replies: 96
Views: 5362

Re: Why should stocks beat bonds in the long run?

willthrill81 wrote:
Tue Feb 12, 2019 1:18 pm
We expect that businesses borrowing at one rate (i.e. bond interest rate) will only do so if they expect to outperform that rate through their own ventures (i.e. stock returns) over the long-run.
Exactly.
by MathWizard
Fri Apr 19, 2019 12:25 pm
Forum: Personal Investments
Topic: Help with Roth distribution on taxes
Replies: 7
Views: 441

Re: Help with Roth distribution on taxes

Hi All, I was looking for some guidance on if I filled out my tax form correctly last year (2017). I took out $20k from my Roth IRA for a down payment on my house. The $20k was all contributions. Since I only took out contributions, did I fill my tax for out correctly? Form 8606 Line 19. Enter tota...
by MathWizard
Thu Apr 18, 2019 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: I’m a Loser Stuck in a Dead End Job
Replies: 63
Views: 7775

Re: I’m a Loser Stuck in a Dead End Job

... and I have family who not only mocks me for not finishing school, but the job I have as well. You don't sound like a loser to me. But if this comment about your family is accurate, then you need to jettison them and don't look back. You don't need the negative input in your life. ... I definite...
by MathWizard
Mon Apr 15, 2019 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: In Laws Retirement Nest Egg
Replies: 156
Views: 14105

Re: In Laws Retirement Nest Egg

Using $ 1 Million net worth from $700K investments + $300K house value From: https://dqydj.com/net-worth-by-age-calculator-united-states/ puts a 62 year old in the 79-th percentile of net worth among those of his/her age cohort. Hardly a destitute couple. A household led by a 60-64 year old with a n...
by MathWizard
Mon Apr 15, 2019 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Layoff - Early 60's
Replies: 13
Views: 2141

Re: Layoff - Early 60's

What is the field in IT that they are in?

Networking?

Linux?

Are they willing to move?
...
by MathWizard
Mon Apr 15, 2019 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: What defines "income" on a retiree's credit card application?
Replies: 102
Views: 5895

Re: What defines "income" on a retiree's credit card application?

1) (Modified) adjusted gross income on my 1040: This would have been very, very low during the past few years when I was on ObamaCare. Now I am doing large (150k+/year) Roth conversions for the next 5 years, so MAGI would be respectable. This approach really does not seem right though, because doin...
by MathWizard
Sun Apr 14, 2019 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Son is a college student still staying at home. How to file taxes?
Replies: 9
Views: 944

Re: Son is a college student still staying at home. How to file taxes?

I assume that this is for federal taxes.

Personal exemptions are gone. In the past a dependent added to the number of personal exemptions. How would a dependent affect taxes now?
by MathWizard
Sun Apr 14, 2019 11:11 am
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6986

Re: If you have plenty of money, why not 100% stocks in retirement?

Being agressive in retirement is OK, but a minimal percentage of bonds in your AA allows rebalancing, and acts to provide stability to your portfolio balance at a small cost. Graham recommended at least 25% bonds, I'm planning rebalancing bands to keep me in the 70 to 80% equities, which is agressiv...
by MathWizard
Fri Apr 12, 2019 1:05 pm
Forum: Personal Investments
Topic: What definition of income do you use to figure out the percent you pay in taxes
Replies: 19
Views: 1367

Re: What definition of income do you use to figure out the percent you pay in taxes

I don't care how much I pay in taxes. I care what my marginal rate is, since the benefits that I can get
from a small amount of adjustments I can make to income all have to do with the marginal rate.
by MathWizard
Fri Apr 12, 2019 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Unpleasant surprise 2018 Federal Tax - high level overview?
Replies: 114
Views: 16301

Re: Unpleasant surprise 2018 Federal Tax - high level overview?

My taxes went up some, but the withholding was so way off that I ended up owing a bunch, which usually does not happen. It was so bad, that we were required to either increase withholding, make quarterly estimated payments, or face a penalty next year. I chose to increase withholding enough to get u...
by MathWizard
Fri Apr 12, 2019 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: 4% SWR - how confident are you?
Replies: 117
Views: 8020

Re: 4% SWR - how confident are you?

Quite confident, with some defensive assumption. The 4% rule came from the failure of a portfolio in only the worst time to retire. The chart on https://fourpillarfreedom.com/the-trinity-study-updated-for-2018/ shows AAs of 50/50 and 75/25 shows that historically, only 2% of the time did an inflatio...
by MathWizard
Wed Apr 10, 2019 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: physics/math major looking for programmer/analyst job?
Replies: 111
Views: 8838

Re: physics/math major looking for programmer/analyst job?

Hi, My nephew graduated a year ago from stony brook university with a 3.3 gpa with a double major in applied math and physics. He quickly came to realize there are very few job prospects within his areas of study and spent the last year learning how to code (java, python, sql). He's obtained a numb...
by MathWizard
Wed Apr 10, 2019 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: physics/math major looking for programmer/analyst job?
Replies: 111
Views: 8838

Re: physics/math major looking for programmer/analyst job?

OP, The job market is not as great as the unemployment number claimed it to be. My nephew has a computer science degree. It still took him more than 1 year to find a job. KlangFool many of my college classmates in my field had 3+ job offers by november of their senior year. different experiences. T...
by MathWizard
Wed Apr 10, 2019 11:05 pm
Forum: Personal Investments
Topic: Fidelity is making it hard for my daughter to fund a Roth
Replies: 55
Views: 5790

Re: Fidelity is making it hard for my daughter to fund a Roth

My daughter turned 18 not long ago and has been working for several years. I suggested she open a Roth and fund it with her 2018 earnings. I helped her go online and open a Roth IRA account at Fidelity, but we were not able to fund the IRA from her checking account because Fidelity could not "verif...
by MathWizard
Tue Apr 09, 2019 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Are life insurance basically scams?
Replies: 43
Views: 1836

Re: Are life insurance basically scams?

I didn't get life insurance until I had children. Paid annually renewable term for 30 years, never claimed (I'm still alive) but my family would have been take care of had I died. That is what I bought, security. I'm dropping now at my wife's request (she's the one that would collect) because we are...
by MathWizard
Tue Apr 09, 2019 4:03 pm
Forum: Investing - Theory, News & General
Topic: Avoiding market risk with nestegg
Replies: 23
Views: 3098

Re: Avoiding market risk with nestegg

Roll over ROTH 401k to ROTH IRA consisting exclusively of "safe" products, like CDs/ treasuries, but leave it in the ROTH. These can be in a bank, and CDs would be FDIC insured, and treasuries are as safe as your dollar bills. A collapse causing you to lose money in any of these FDIC,Treasuries or d...
by MathWizard
Mon Apr 08, 2019 3:49 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Are you annually spending in Real or Nominal Terms?
Replies: 63
Views: 3796

Re: Retirees: Are you annually spending in Real or Nominal Terms?

The 4% rule or whatever else is for planning. Once retired, you take what you need to survive + some discretionary. You don't live 11 months of the year and starve the 12th. The reasoning on an incremental in spending is not that you try to spend 4% + an inflation factor, it is that one would expect...
by MathWizard
Fri Apr 05, 2019 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Is it bad to have nothing in taxable when you retire?
Replies: 62
Views: 6590

Re: Is it bad to have nothing in taxable when you retire?

No, provided you have some money in Roth. It sounds like you are about in the same situations as we are 20-25% of retirement assets in ROTH. If you are saving, why not have it in tax advantaged. If you are saving more than you can put in tax advantaged, then yes, use taxable. Most people are going t...
by MathWizard
Mon Apr 01, 2019 6:44 pm
Forum: Investing - Theory, News & General
Topic: Can A Watch Be Considered An Investment?
Replies: 33
Views: 2068

Re: Can A Watch Be Considered An Investment?

Myself, I would call that speculation, not investing.
by MathWizard
Mon Apr 01, 2019 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: How to get cash quickly
Replies: 102
Views: 5934

Re: How to get cash quickly

I'm having a hard time with what kind of transaction this would be which is a "need". If it truly is a need, and you only have a day, then you have yourself a cash flow crunch. Desperate times, desperate measures. Though I would pull such a sum out of my local bank account, if I were in this situati...
by MathWizard
Mon Apr 01, 2019 2:38 pm
Forum: Non-US Investing
Topic: Your opinion on debt?
Replies: 111
Views: 6485

Re: Your opinion on debt?

It it not always possible to have all the money to do the things that you need to do. . Yup, agreed. For me, practicality wins out over mental purity. I can be fiscally responsible and still find being debt-free a lower priority than, say, living in a house I enjoy. Money is a tool, not a goal. It ...
by MathWizard
Mon Apr 01, 2019 11:19 am
Forum: Non-US Investing
Topic: Your opinion on debt?
Replies: 111
Views: 6485

Re: Your opinion on debt?

I have noticed that many people seem to see debt mainly as a burden. Some even take special pride in being 100% debt-free. I see debt merely as an agreement from which both parties usually benefit. Being debt-free is safe and may be good psychologically, but usually it's not the smartest position t...
by MathWizard
Mon Apr 01, 2019 11:07 am
Forum: Investing - Theory, News & General
Topic: Rich Dad / Poor Dad Investing Theory
Replies: 74
Views: 5497

Re: Rich Dad / Poor Dad Investing Theory

Can someone summarize the Rich Dad / poor Dad investing theory? I read the book many years ago and saw little actionable information in it. A lot of people seem to swear by it. Wondering if I missed something. You were astute in that there was little actionable information. I would recommend the bo...
by MathWizard
Mon Apr 01, 2019 6:26 am
Forum: Personal Finance (Not Investing)
Topic: How can I get a handle on income taxes in retirement?
Replies: 33
Views: 2765

Re: How can I get a handle on income taxes in retirement?

I doubt that RMDs alone will put you in the top bracket.

This would mean RMDs above $600k for a couple.
Initial RMDs are less than 4% of the portfolio, which would mean you'd have to have more than $15 million in tax deferred.

Is this the case?
by MathWizard
Sun Mar 31, 2019 8:44 am
Forum: Personal Consumer Issues
Topic: "The best and worst U.S. states for retirement"
Replies: 259
Views: 21549

Re: "The best and worst U.S. states for retirement"

I wonder how much, if any, of South Dakota's ranking is due to RV enthusiasts that travel around the US camping, but use South Dakota as a base state for tax purposes. If one looks online, you can see a number of sites that offer to process South Dakota residency packages at low fees for RV & other...
by MathWizard
Sun Mar 31, 2019 8:35 am
Forum: Personal Consumer Issues
Topic: "The best and worst U.S. states for retirement"
Replies: 259
Views: 21549

Re: "The best and worst U.S. states for retirement"

Greg in Idaho wrote:
Sun Mar 31, 2019 8:27 am
One of the more ridiculous features of these state lists is how it lumps the whole state together...as if Yreka and San Diego are comparable...or that Sioux Falls and Pine Gap are...
I don't know Pine Gap S Dak.

Did you mean Pine Ridge?
Buffalo Gap?
by MathWizard
Sat Mar 30, 2019 9:49 am
Forum: Investing - Theory, News & General
Topic: Any Insurance Products better than the Stock Market?
Replies: 22
Views: 1751

Re: Any Insurance Products better than the Stock Market?

What are some of your favorite insurance products for investing? It appears that many high net worth individuals invest in insurance. What kind of products do they buy? No. Insurance companies taken in premiums and use the float to invest. How could that possibly be better than investing yourself a...
by MathWizard
Tue Mar 26, 2019 8:43 pm
Forum: Personal Consumer Issues
Topic: Are independent garages cheaper than dealer?
Replies: 58
Views: 4109

Re: Are independent garages cheaper than dealer?

You need to find a good one. Then, yes.

A poor mechanic is not cheaper.
by MathWizard
Mon Mar 25, 2019 5:57 pm
Forum: Personal Investments
Topic: Experience with Edward Jones?
Replies: 76
Views: 6928

Re: Experience with Edward Jones?

My wife had to write a letter that was very much to the point. I will contact you, do not contact me. She had been forced to EJ because when she started the 403bm her employer used a local EJ firm to handle it. My wife said that the rep (a woman) was very nice, but really persistent, wanting to know...
by MathWizard
Sun Mar 24, 2019 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: [Retiring before 65: How do you deal with health insurance?]
Replies: 70
Views: 8272

Re: [Retiring before 65: How do you deal with health insurance?]

Relatives have used Cobra to retire at 63.5.

I can stay on my employer's group HMO policy if I pay full freight. That is a bit over $1500/month for me and my spouse.

I'm not yet retired, but am getting ready to.
by MathWizard
Sun Mar 24, 2019 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Is a million really the benchmark for retirement
Replies: 153
Views: 23132

Re: Is a million really the benchmark for retirement

Age has a lot to do with it. You need more, a lot more, if you retire early. Before 65, no Medicare, so health care is more expensive, and withdrawing more for the higher insurance means you need to withdraw even more more the taxes on the extra draw. If you retire before FRA, you need more to eithe...
by MathWizard
Sun Mar 24, 2019 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Do you treat inheritance as a singular or shared asset?
Replies: 113
Views: 5293

Re: Do you treat inheritance as a singular or shared asset?

All income is shared. However, when an inheritance is not divided this is not possible. In our case, the inheritance for my wife was a small farm which was not subdivided or sold. Given this, we could not mix them with our finances without entangling our finances with those of all our siblings. To i...
by MathWizard
Sat Mar 23, 2019 12:01 am
Forum: Personal Consumer Issues
Topic: Suggestions for an internet service provider that is NOT Comcast?
Replies: 15
Views: 1129

Re: Suggestions for an internet service provider that is NOT Comcast?

Number one, fight them tooth and nail. DSL providers seem to provide a much more consistent, lower-cost, and trouble free level of service in my experience, where available. DSL is expensive where I live. It was consistent, but quite slow. Typically DSL is delivered over the old tiny copper wires. ...
by MathWizard
Fri Mar 22, 2019 11:37 pm
Forum: Investing - Theory, News & General
Topic: Why past performance does not predict future?
Replies: 70
Views: 2837

Re: Why past performance does not predict future?

Three part answer: 1) Whether you talk about individual stocks or the market is important. Individual stocks are extremely volatile compared to the market. They can go to zero. Unless a country's economy totally collapses, the market does not go to zero. 2) Time is important. Rolling 30 year returns...
by MathWizard
Thu Mar 21, 2019 9:07 pm
Forum: Personal Consumer Issues
Topic: Suggestions for Landline Alternatives (Ooma, Magic Jack, etc.)
Replies: 56
Views: 2113

Re: Suggestions for Landline Alternatives (Ooma, Magic Jack, etc.)

I had, and still have ObiTalk with Google Voice. We had lots of trouble with older relatives with it. Something about the having to say who is calling threw them. If she only called out, it would be no problem, but relatives stopped calling us. We went back to Vonage. The internet company may also ...
by MathWizard
Thu Mar 21, 2019 4:47 pm
Forum: Investing - Theory, News & General
Topic: The $4,026,858.95 Car or a Worry-Free Retirement?
Replies: 245
Views: 11480

Re: The $4,026,858.95 Car or a Worry-Free Retirement?

Bogleheads: The automobile industry must have the most successful marketing program in the world (even more successful than the investment industry. No longer is the automobile used to get from point A to Point B. Our car now represents prestige, safety, comfort and more. Even the lowest priced car...
by MathWizard
Thu Mar 21, 2019 11:51 am
Forum: Personal Consumer Issues
Topic: Suggestions for Landline Alternatives (Ooma, Magic Jack, etc.)
Replies: 56
Views: 2113

Re: Suggestions for Landline Alternatives (Ooma, Magic Jack, etc.)

For your mother, Vonage definitely. The first year it will be cheap, then the push it up to about $40. I had, and still have ObiTalk with Google Voice. We had lots of trouble with older relatives with it. Something about the having to say who is calling threw them. If she only called out, it would ...
by MathWizard
Thu Mar 21, 2019 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell stocks to pay off credit card debt?
Replies: 11
Views: 587

Re: Should I sell stocks to pay off credit card debt?

Charlie Munger, Vice-Chairman of Berkshire Hathaway, has said that even he could not make money if he had to pay 18% interest on it.
(18% interest being standard on Credit Cards at the time.)

So yes, sell stocks, pay of CC debt, and establish an emergency fund.
by MathWizard
Wed Mar 20, 2019 10:24 pm
Forum: Personal Consumer Issues
Topic: Suggestions for Landline Alternatives (Ooma, Magic Jack, etc.)
Replies: 56
Views: 2113

Re: Suggestions for Landline Alternatives (Ooma, Magic Jack, etc.)

Greetings Bogleheads, I've had a traditional AT&T copper landline for my mother for the past several years. I knew it would cost more, but I also knew it would just work and we would also be able to make calls to 911 if needed. Well, the bill has now reached $71 per month and I think it's time for ...
by MathWizard
Wed Mar 20, 2019 3:23 pm
Forum: Personal Investments
Topic: Invest Money for House Down Payment in 5 Years
Replies: 25
Views: 1402

Re: Invest Money for House Down Payment in 5 Years

I plan on setting aside between $25,000 - $30,000 each year for the next 5 years for a house down payment. Currently, I've been setting this aside in a 2.0% APY money market account through Capital One. I've been debating on whether I should put it in a diversified taxable portfolio to get a potent...
by MathWizard
Wed Mar 20, 2019 1:55 pm
Forum: Investing - Theory, News & General
Topic: Overbalancing, interested please explain it to me
Replies: 44
Views: 1981

Re: Overbalancing, interested please explain it to me

Yes I do, but only in very unusual cases. It may not be the best, but it makes sense to me, and I would call it mildly active. I recognize that unless I am continuously rebalancing, I will be in a band around my target AA. So when I say "buy and hold a specific AA", I really mean "stay with a range ...
by MathWizard
Wed Mar 20, 2019 12:28 pm
Forum: Personal Consumer Issues
Topic: Need some help with slow folders in Windows
Replies: 33
Views: 1697

Re: Need some help with slow folders in Windows

Possibly you just have way too many files.

More likely you have a problem with the SSD. I would swap it out for a new one,
they are getting pretty cheap.
by MathWizard
Tue Mar 19, 2019 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: College for average kids
Replies: 72
Views: 4782

Re: College for average kids

Your kids have to know what your kids would like to do for a living. If you go the trade route, look for a school with a good track record of apprenticeships. Colleges give you your diploma, and say go find work on your own. Good trade schools have pipelines into industries. In the past you might ha...
by MathWizard
Tue Mar 19, 2019 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Are RMDs that bad if you're not an over-saver?
Replies: 139
Views: 11949

Re: Are RMDs that bad if you're not an over-saver?

The difficulty is that it is far more than 4% after age 86 when it is about 7%, and by 90 it is about 9%. I expect that my spouse will still be around then, required to pull 9% and pay tax on that as a single person. This along with SS benefits would push her into the next tax bracket. To avoid this...
by MathWizard
Mon Mar 18, 2019 8:14 pm
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever Stocks
Replies: 104
Views: 15319

Re: Buy and Hold Forever Stocks

Forever is a very long time. In 1900, the Dow Stocks were: American Cotton Oil Federal Steel * Peoples Gas American Steel & Wire * General Electric Company * Tennessee Coal, Iron and Railroad American Sugar National Lead U.S. Leather (Preferred) Continental Tobacco * Pacific Mail Steamship U.S. Rub...
by MathWizard
Mon Mar 18, 2019 3:02 pm
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 8186

Re: Retired Investors - Do You Keep Cash For Down Years

Soon to retire, but I'll be doing Roth Conversions until 70, and I'll keep a cash cushion while I am doing that, but afterwards plan to have a SPIA which together with SS , taken at age 70, plus RMDs will fund bare bones expenses.
by MathWizard
Sun Mar 17, 2019 7:59 pm
Forum: Personal Investments
Topic: Mourning the loss of savings rate
Replies: 38
Views: 4344

Re: Mourning the loss of savings rate

Enjoy the greatest wealth you will ever experience: 3 kids. Money can't hold a candle to the richness of having a family. I predict you will look back on your post one day and see this clearly. +100 Your lowered savings rate is still good. At. 25% , your expenses are 75%, so every 3 years you are s...