Search found 2139 matches

by Ketawa
Fri Jul 19, 2019 10:25 am
Forum: Personal Consumer Issues
Topic: Do you buy cellphone outright or pay over 2 years?
Replies: 75
Views: 3186

Re: Do you buy cellphone outright or pay over 2 years?

One benefit to financing the cost that I have taken advantage of is having it available as a means to generate spend for a credit card signup bonus. For example, $5K in 3 months can be challenging for me to meet unless I shift all my spending, to include 6% cash back on groceries, to the new card. I...
by Ketawa
Thu Jul 18, 2019 1:15 pm
Forum: Personal Consumer Issues
Topic: The New Dropbox Instead of Carbonite
Replies: 6
Views: 573

Re: The New Dropbox Instead of Carbonite

Dropbox has always had the ability to restore deleted files. It's probably still not suitable for a backup solution with this change. You should probably stick with Carbonite. I don't know why you would need paid Dropbox. I run Arq backed up to a local external hard drive and a Backblaze B2 bucket, ...
by Ketawa
Sun Jul 14, 2019 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?
Replies: 32
Views: 3156

Re: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?

6-month renewal update - my premium with GEICO has remained exactly the same, $269. USAA is quoting me $508 for similar coverages. I intend to cancel my renters and valuable personal property policies with USAA so I can get $1400 out of my subscriber's account and sell what might as well be an indi...
by Ketawa
Sun Jul 14, 2019 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?
Replies: 32
Views: 3156

Re: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?

6-month renewal update - my premium with GEICO has remained exactly the same, $269. USAA is quoting me $508 for similar coverages. I intend to cancel my renters and valuable personal property policies with USAA so I can get $1400 out of my subscriber's account and sell what might as well be an indiv...
by Ketawa
Tue Jul 09, 2019 2:59 pm
Forum: Personal Investments
Topic: Frequency of 401k contributions - frontloading versus quateraly
Replies: 13
Views: 761

Re: Frequency of 401k contributions - frontloading versus quateraly

This is similar to the question of whether to invest a lump sum all at once or use DCA, spreading it out over time. Sometimes, it can make sense to DCA if you need to take some time to reassess whether you need to change your plan or asset allocation. However, if your cash flow supports it and you h...
by Ketawa
Mon Jul 08, 2019 11:59 am
Forum: Personal Investments
Topic: Merrill Edge best choice for higher net worth accounts?
Replies: 82
Views: 16334

Re: Merrill Edge best choice for higher net worth accounts?

I will probably have to ask Merrill Edge this question, but maybe someone here knows. My IRA is currently at Fidelity and is 100% invested in some AQR funds. I can't tell from the tools available on ME without opening an account whether I can continue to hold them at ME. I have QSPIX, QSMLX, QICLX,...
by Ketawa
Mon Jul 08, 2019 11:35 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1797
Views: 286152

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I think I have asked this before and had it answered, but are there any issues holding AQR funds at Merrill Edge? I have QEELX, QICLX, QSMLX, and QSPIX. I also have their N shares equivalents for free rebalancing: QEENX, QICNX, QSMNX, and QSPNX. Edit - I called Merrill Edge and they said only QSPIX/...
by Ketawa
Mon Jul 08, 2019 11:06 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Historical Imperative For International Diversification
Replies: 347
Views: 17458

Re: Larry Swedroe: The Historical Imperative For International Diversification

I don't mean to question whether this thread is actionable, not explicitly, so I'll ask this question: Has anyone ever changed their mind from one of these threads? I'd think if we had the data, we'd see that Bogleheads have increased allocations to ex-U.S. equities over time. It seems that way sin...
by Ketawa
Sun Jun 23, 2019 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: GEICO rate increase: 49% annualized?!
Replies: 52
Views: 11662

Re: GEICO rate increase: 49% annualized?!

sterlinga wrote:
Sun Jun 23, 2019 5:35 pm
Next comments will be to the Insurance Commissioner and then ClassAction.org
Seriously, a class action? How is that an appropriate response?

Anyway, I received my first renewal with GEICO. My premium is exactly the same. I'm very pleased. I'm single and live in DC.
by Ketawa
Mon Jun 03, 2019 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3887
Views: 721760

Re: What's Your Credit Card Rewards Strategy?

Bank of America gives $500 for $3k spend Details please? https://www.bankofamerica.com/credit-cards/products/premium-rewards-credit-card/ I got denied by this card and now figure I'm basically a persona non grata at all the major issuers except Amex and Citi. I've had 48 cards in the last 5 years s...
by Ketawa
Fri May 24, 2019 8:22 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3887
Views: 721760

Re: What's Your Credit Card Rewards Strategy?

Bank of America gives $500 for $3k spend Details please? https://www.bankofamerica.com/credit-cards/products/premium-rewards-credit-card/ I got denied by this card and now figure I'm basically a persona non grata at all the major issuers except Amex and Citi. I've had 48 cards in the last 5 years s...
by Ketawa
Thu May 16, 2019 9:47 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1797
Views: 286152

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I'm planning a move to BoA/ME for some bonuses. There are 3 bonuses I am trying to maximize: BoA Premium Rewards card signup bonus, targeted $300 bonus for opening a BoA checking account, and ME brokerage transfer bonus. I don't think I can enroll in Preferred Rewards if I want to get targeted for ...
by Ketawa
Mon May 13, 2019 10:53 am
Forum: Personal Investments
Topic: What’s the better hedge for unexpected inflation: G Fund or TIPS ETF?
Replies: 5
Views: 539

Re: What’s the better hedge for unexpected inflation: G Fund or TIPS ETF?

TIPS are probably better if the sole concern is unexpected inflation, but the G Fund has other advantages and should do quite well in scenarios with unexpected inflation. I still wouldn't bother with TIPS if I had access to the G Fund.
by Ketawa
Fri May 10, 2019 5:39 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1797
Views: 286152

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Let me know if this order of operations makes sense. 1. BoA Premium Rewards card 2. Hope to get targeted for the $300 checking account bonus, then open it 3. Transfer IRAs 4. Should be able to enroll in Preferred Rewards after 1 month. By the time brokerage bonus is reached, will be at Platinum lev...
by Ketawa
Thu May 09, 2019 1:27 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1797
Views: 286152

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I'm planning a move to BoA/ME for some bonuses. There are 3 bonuses I am trying to maximize: BoA Premium Rewards card signup bonus, targeted $300 bonus for opening a BoA checking account, and ME brokerage transfer bonus. I don't think I can enroll in Preferred Rewards if I want to get targeted for t...
by Ketawa
Wed May 08, 2019 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Capital Loss Carryover
Replies: 11
Views: 654

Re: Capital Loss Carryover

Go through Schedule D to map out various scenarios. 2018 carryover short term losses and long term losses will be applied to 2019 short term and long term gains/losses, respectively. After that, it's as if they were 2019 gains or losses. If you have a net loss when you combine short term and long te...
by Ketawa
Tue May 07, 2019 8:12 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 4599
Views: 1182980

Re: What Movie Have You Recently Watched?

Avengers: Endgame. Perhaps the greatest moviegoing experience of my life. Yes! I thought it'd be amazing, but it was 10x more! +1000 DW and I saw it twice. As a huge Marvel movies fan, it was a very satisfying conclusion to the 21 movies that started with Iron Man in 2008. I've seen it 3 times now ...
by Ketawa
Wed May 01, 2019 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: 401K Loan: Better to use pre-tax or Roth funds? High or low interest rate?
Replies: 3
Views: 356

Re: 401K Loan: Better to use pre-tax or Roth funds? High or low interest rate?

I went through some generalized calculations to analyze this in this post . I'll put in a code box here so it doesn't take up the entire thread. Rtax = return in taxable account (tax-adjusted return for paying off debt or taxable investing) R401k = return in 401k L = 401k loan rate Tm = 100% minus c...
by Ketawa
Fri Apr 26, 2019 12:38 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 4599
Views: 1182980

Re: What Movie Have You Recently Watched?

Avengers: Endgame. Perhaps the greatest moviegoing experience of my life.
by Ketawa
Fri Apr 26, 2019 11:09 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3887
Views: 721760

Re: What's Your Credit Card Rewards Strategy?

My understanding is that closed accounts are not immediately removed from your credit report, and continue to be used to calculate your score. Once 10 years pass after an account is closed, *then* it is removed from your credit report. So any impact to your Average Age of Accounts is delayed well i...
by Ketawa
Mon Apr 22, 2019 1:54 pm
Forum: Personal Consumer Issues
Topic: Where to buy a movie (Amazon/Google/iTunes/PS)?
Replies: 35
Views: 1502

Re: Where to buy a movie (Amazon/Google/iTunes/PS)?

I recently watched a movie and want to buy it but I think last time I bought smth on DVD 5 years back lol. My son has a Playstation 4 so one of the options is PS network. Would love to hear your experience about Amazon/Google/iTunes/PS (maybe I missed other options?) It is cheaper and better to buy...
by Ketawa
Mon Apr 22, 2019 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401k loan as a way to contribute?
Replies: 7
Views: 646

Re: Roth 401k loan as a way to contribute?

You indicate that the loan would be from your Roth 401k and you would leave a pre-tax balance (Traditional) balance in the account. Does your plan actually allow you to choose whether to use Roth or Traditional balances for the loan?
by Ketawa
Fri Apr 19, 2019 8:18 am
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

Sorry but I still disagree because you're paying exactly the same taxes on the withdrawal of that interest paid as on the interim gains within the plan if no loan is taken. No difference. Your repaid interest isn't held in a separate account which gets the double taxation treatment. It's taxed on w...
by Ketawa
Thu Apr 18, 2019 11:03 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

I would also add that the double-taxation-when-viewed-as-a-contribution issue also argues for repaying the loan -- when you actually need a loan -- as quickly as possible, because the 7.5% is considerably higher than likely consumer loans and you lose some of it to this taxation. That argument woul...
by Ketawa
Thu Apr 18, 2019 10:23 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

Looking at someone who has a 100% Roth 401k. Most general form of the formulas Net Worth 1A: (Y * (Rtax - L)) * Td + (X - Y) * R401k * Tl + Y * L * Tl Net Worth 1B: (-Y * (L - Rtax) / Tm ) * Td + (X - Y) * R401k * Tl + Y * L * Tl Net Worth 2: X * R401k * Tl Tl = 100% because investor has a 100% Roth...
by Ketawa
Thu Apr 18, 2019 9:52 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

I think there was something missing from my decision tool. I went back to learning_head's original post in the other thread I linked to see if there's something I missed. I think it was a variable to deal with current marginal tax rate, and I also misinterpreted something in his post. The tool doesn...
by Ketawa
Wed Apr 17, 2019 3:46 pm
Forum: Investing - Theory, News & General
Topic: New era for TSP "I" Fund?
Replies: 60
Views: 9811

Re: New era for TSP "I" Fund?

So does anybody know where we are in transaction from EAFE to ACWI-IMI ex-US. Has it not started? or we halfway there? or are we mostly done? Just curious as to whether there are emerging markets in my I fund right now and if it is still dominated by Japan? Search the internet and there seems to be...
by Ketawa
Wed Apr 17, 2019 3:42 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

To clarify: I agree that a 401k loan (or ANY non-deductible loan) will be tax-disadvantaged when compared to a fully tax-deductible loan, as in your example. But a 401k loan will be tax-equivalent when compared to a NON-deductible loan (while leaving the entire 401k balance invested) over the entir...
by Ketawa
Wed Apr 17, 2019 3:30 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

sailaway wrote:
Wed Apr 17, 2019 3:20 pm
Or, you could recognize that Roth is tax sheltered and the other examples are taxes on new money that has not yet been taxed, hence no second taxation.
I could also recognize that this is purely semantics.
by Ketawa
Wed Apr 17, 2019 3:19 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

I've always been confused by where the interest goes. Does it really go back into YOUR account? With some whole life insurance policies, the insurance company receives the interest payment. Also, does collateral you put up from the account impact the account? If you have $50k invested in TSM and bo...
by Ketawa
Wed Apr 17, 2019 3:16 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

I think we agree, except that I would call this double taxation of the loan interest. I would also call the end result of a investing in a taxable account double taxation, or investing in a Traditional IRA with non-deductible contributions double taxation. Doesn't a non-deductible IRA allow you to ...
by Ketawa
Wed Apr 17, 2019 3:11 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

I would also add that the double-taxation-when-viewed-as-a-contribution issue also argues for repaying the loan -- when you actually need a loan -- as quickly as possible, because the 7.5% is considerably higher than likely consumer loans and you lose some of it to this taxation. That argument woul...
by Ketawa
Wed Apr 17, 2019 2:47 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

Upon withdrawl, the money repaid as interest is taxed. But so is every dollar ever earned (along with contributions) within the account. It makes zero difference whether the money was interest repaid from a 401k loan, interest paid on bonds held in the account, or capital gains from stocks. The mon...
by Ketawa
Wed Apr 17, 2019 2:44 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

If you think that the loan interest isn't taxed, then please make the case why borrowing $50K from a Traditional 401k to pay back $100K in one year could be a good idea. It's exactly like a non-deductible IRA contribution which is sometimes a good idea and sometimes not. It is a good idea if you ar...
by Ketawa
Wed Apr 17, 2019 1:42 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

I apologize if I'm missing something, but as I was looking into taking a small loan from my solo 401k (and moving it to Etrade because Vanguard does not allow loans), I realized I did not care about having to pay it back with interest because the money goes right into my account. From what I learne...
by Ketawa
Wed Apr 17, 2019 1:25 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

There was a long thread a while ago about the proper way to compare 401k loans vs consumer loans (or investing in taxable). Here is the way to decide, edited from another post I made. I believe this is the definitive post on calculating whether a 401k loan to either invest in taxable or prepay debt ...
by Ketawa
Wed Apr 17, 2019 1:25 pm
Forum: Investing - Theory, News & General
Topic: Loans from 401k -- back door investing?
Replies: 57
Views: 4360

Re: Loans from 401k -- back door investing?

The extra 10k is paid with post tax money, so if you have a 25% tax rate, it cost you 13,373 of pre-tax money to add $10k to your 401k. However, it will be treated as pre-tax money at withdrawal and taxed again. You are better off investing in an after-tax 401k, or sticking to the normal channel wh...
by Ketawa
Tue Apr 16, 2019 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Better banking than USAA
Replies: 10
Views: 1494

Re: Better banking than USAA

Fidelity SPRXX - 2.25% - https://fundresearch.fidelity.com/mutual-funds/summary/31617H201 Fidelity 12 month CD - 2.4% - https://www.fidelity.com/fixed-income-bonds/cds Simple fact is a savings account is different from a money market or CD. Ally's savings rate is consistently (i.e. last 10 years or...
by Ketawa
Mon Apr 15, 2019 3:09 pm
Forum: Investing - Theory, News & General
Topic: What TIPS yield is equivalent to 4% SWR but guarantees 30 year portfolio survival?
Replies: 30
Views: 2957

Re: What TIPS yield is equivalent to 4% SWR but guarantees 30 year portfolio survival?

If inflation is zero for year 1, then @ maturity one rung of the 30 year TIPS ladder pays $4, but the average 1.31% yield also pays $1.31. So, don't we have $5.31 at the end of year 1 and that extra $1.31 has to be re-invested? Technically, it is $4 taken out at the start, year 0. Then $96 invested...
by Ketawa
Fri Apr 12, 2019 10:53 am
Forum: Personal Investments
Topic: ORP says I should stop all pre-tax contribs
Replies: 75
Views: 6085

Re: ORP says I should stop all pre-tax contribs

Not sure I follow. You set the stock/bond allocation for each account. It applies the return value (stock or bond) that you specify to each asset class, regardless of account. It accounts for taxes, if applicable, either as tax drag (taxable) or as income tax (on distribution of pre-tax account). I...
by Ketawa
Fri Apr 12, 2019 10:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 187
Views: 18629

Re: Vanguard Announces Plans to Launch Commodities Fund

I'm not saying that you are wrong, but as someone who views the purpose of fixed income differently, I would still use this, extend my fixed income duration, and if I wanted to take risk off of the table, then put some money in the G Fund. Since the G Fund and (some) stable value funds act like hig...
by Ketawa
Fri Apr 12, 2019 2:01 am
Forum: Investing - Theory, News & General
Topic: Which bonds in taxable?
Replies: 19
Views: 2269

Re: Which bonds in taxable?

I'm not a big fan of I Bonds. They expand tax-advantaged space in the worst way possible. By default, interest from I Bonds is tax deferred and free from state and local taxation. This is similar tax treatment to a non-deductible Traditional IRA filled with fixed income investments similar to TIPS a...
by Ketawa
Fri Apr 12, 2019 1:46 am
Forum: Personal Consumer Issues
Topic: Buying a bed
Replies: 42
Views: 3150

Re: Buying a bed

My recommendation would be to try bed in a box type mattresses until you find one you like. They have generous return policies. I tried Leesa and Casper before settling on one from Brooklyn Bedding because I needed something firmer. This was 4 years ago, so might be out of date. If you have tried a ...
by Ketawa
Fri Apr 12, 2019 1:42 am
Forum: Personal Investments
Topic: To refinance or not
Replies: 5
Views: 499

Re: To refinance or not

The baseline for comparison should be a no-cost refinance. Compare a no-cost refinance to your current mortgage. Then determine if paying points on the refinance is worth it.
by Ketawa
Fri Apr 12, 2019 1:38 am
Forum: Personal Finance (Not Investing)
Topic: 1 stage or 2 stage refinance?
Replies: 31
Views: 2213

Re: 1 stage or 2 stage refinance?

Pay off the credit cards immediately. It's insanity to have $100K in credit card debt with a mortgage of $600K and a property worth $1.8M. It's impossible to know what action is better without knowing the interest rates you could get now. I'm guessing much of your mortgage interest is deductible sin...
by Ketawa
Fri Apr 12, 2019 12:11 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 187
Views: 18629

Re: Vanguard Announces Plans to Launch Commodities Fund

As far as I know, Larry has recommended that investors who hold CCFs should also consider extending duration of safe bonds, and this has been a consistent recommendation. In the article linked from Yahoo Finance, he gives Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Intermediate-Term Treasur...
by Ketawa
Thu Apr 11, 2019 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Re: Conversion vs Roth 401k Contribution

Rather than framing this decision as Roth 401k contribution vs Roth to Traditional conversion in the 12% federal tax bracket, I would first assess whether Traditional or Roth contributions to 401ks and IRAs are better. Traditional might be better if you can get into range for the Retirement Savings ...
by Ketawa
Thu Apr 11, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Conversion vs Roth 401k Contribution
Replies: 12
Views: 627

Re: Conversion vs Roth 401k Contribution

Your situation isn't clear. How would you convert pre-tax amounts into post-tax amounts with 0% capital gains? Capital gains apply to taxable accounts. Do you mean that your marginal tax rate is 0%? If you are deciding between contributions to a Roth 401k and converting money from Traditional to Rot...
by Ketawa
Thu Apr 11, 2019 2:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 187
Views: 18629

Re: Vanguard Announces Plans to Launch Commodities Fund

I'd consider a commodities fund if I wanted to extend duration with my fixed income investments. Since I use the G Fund, my fixed income duration is zero, and I have no interest in a commodities fund.
by Ketawa
Thu Apr 11, 2019 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Help with Mortgage Interest Deduction - Buy/Sell Home
Replies: 9
Views: 1145

Re: Help with Mortgage Interest Deduction - Buy/Sell Home

I'm going to revive this topic. I'm in a similar situation and I can't figure out how to calculate the actual deduction properly. Pub 936 is not clear at all but here are my thoughts. If I only owned a home for half the year and bought a new home the second half of the year with a mortgage greater ...