Search found 42 matches

by mbecker03
Thu May 17, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

I agree with all of this. I guess what I'm getting at, assuming the math is correct, is that in all of the pay off debt vs. investing commentary I have seen, I have never once heard anyone say that you have to put that debt payment towards some kind of investment once the debt is paid off in order ...
by mbecker03
Wed May 16, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

I think the issue here that is causing you grief is the time period. This is 100% true. It is actually the entire reason I started looking into this in more depth. It seemed to me that most of the commentary on this topic assumed that you were either talking about a single extra payment or that you...
by mbecker03
Wed May 16, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

I agree with all of this. I guess what I'm getting at, assuming the math is correct, is that in all of the pay off debt vs. investing commentary I have seen, I have never once heard anyone say that you have to put that debt payment towards some kind of investment once the debt is paid off in order ...
by mbecker03
Wed May 16, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

But if that point isn't part of the conversation, my first concern is that I would imagine there are many people who do not snowball their loan payments into their investment accounts once their debt is paid off, but who think they're coming out ahead because all they know is that you're supposed t...
by mbecker03
Wed May 16, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

I think you are mixing different questions, modifying variables without realizing it, and that's causing confusion. If you don't start investing any of the additional money after the loan is paid off, then you can simply remove the loan from the equation for your investment return. At that point, y...
by mbecker03
Wed May 16, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

Whoops, you're right. I was looking at the numbers backwards. :oops: Where is that accounted for in your example? That narrows the gap by $18k then, right? I would really encourage you to look at the spreadsheet if you'd like to question the numbers. I am more than open to a critique of my calculat...
by mbecker03
Wed May 16, 2018 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

I didn't look at your spread sheet. But, per your example, it doesn't appear you're accounting for interest saved by paying down the debt aggressively nor the total interest paid by paying the loan on schedule. Especially at a 25% rate, those numbers could be significant in your scenario. I also di...
by mbecker03
Wed May 16, 2018 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

The conventional wisdom says that you should compare the interest rate on your debt to the expected return on your investments. Ignoring the fact that debt payments represent a guaranteed return and investments do not (which I realize is not actually something to ignore), it's as simple as putting ...
by mbecker03
Wed May 16, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Re: Paying off Debt vs. Investing

I didn't look at your spread sheet. But, per your example, it doesn't appear you're accounting for interest saved by paying down the debt aggressively nor the total interest paid by paying the loan on schedule. Especially at a 25% rate, those numbers could be significant in your scenario. I also di...
by mbecker03
Wed May 16, 2018 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Paying off Debt vs. Investing
Replies: 25
Views: 1641

Paying off Debt vs. Investing

I've been digging into the question of paying off debt vs. investing and I'm coming to a conclusion that I haven't seen talked about elsewhere, which has me thinking that I must be overlooking something or doing the math wrong. So now I'd really appreciate some input. The conventional wisdom says th...
by mbecker03
Sun Aug 16, 2015 8:20 am
Forum: Personal Consumer Issues
Topic: Laptop Recommendation
Replies: 41
Views: 5347

Re: Laptop Recommendation

Thanks guys! This is awesome. So probably stupid question but if the laptop is Bluetooth capable, does that mean I'd be able to link multiple Bluetooth devices to it at a time? Like a mouse, keyboard, and phone?
by mbecker03
Sat Aug 15, 2015 2:03 pm
Forum: Personal Consumer Issues
Topic: Laptop Recommendation
Replies: 41
Views: 5347

Laptop Recommendation

I'm in need of a new laptop and to be honest this isn't something I know much about. My needs are pretty basic, but I would love to get your input if you have any suggestions. I'll be using it primarily for work, but my needs there are pretty light. I'm self-employed, working on my own, with most of...
by mbecker03
Wed Oct 01, 2014 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: looking for a sample whole life insurance illustration
Replies: 0
Views: 511

looking for a sample whole life insurance illustration

I have a request for help running the numbers on whole life vs. buy term and invest the difference, and I'm wondering if there's somewhere I could find a sample whole life illustration based on current conditions. I found one example here , which is actually close to exactly what I'm looking for in ...
by mbecker03
Wed Jan 29, 2014 7:32 am
Forum: Investing - Theory, News & General
Topic: Long-term capital gains tax rate
Replies: 7
Views: 4829

Re: Long-term capital gains tax rate

My question is whether long-term capital gains taxes are calculated progressively as is ordinary income. Have you ever used Turbo Tax? Good suggestion. Using the taxcaster ( https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ ) confirms that it is indeed progressive, with $500 taxed at 0% ...
by mbecker03
Wed Jan 29, 2014 6:46 am
Forum: Investing - Theory, News & General
Topic: Long-term capital gains tax rate
Replies: 7
Views: 4829

Long-term capital gains tax rate

I've had trouble finding a definitive answer to this question and would appreciate being pointed in the direction of a reference to verify it one way or the other. My question is whether long-term capital gains taxes are calculated progressively as is ordinary income. As a simple example, say that b...
by mbecker03
Mon Nov 04, 2013 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Conundrum - "last to die" policy
Replies: 35
Views: 3862

Re: Life Insurance Conundrum - "last to die" policy

Please correct me if I'm wrong on anything here. Regardless of the cash value, this sounds like a life insurance policy with a face value of $125,000. Unless the cash value accumulates to something greater than that, the policy will pay out at least that amount at the mother's death as long as there...
by mbecker03
Tue Sep 24, 2013 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: random check in the mail
Replies: 22
Views: 2627

Re: random check in the mail

You said it was a person. There is no company name listed on the check? Try Googling the name and see what might show up I have googled the name on the check as well as the address and I end up with several results for various businesses associated with both the name and the address. None of the bu...
by mbecker03
Tue Sep 24, 2013 10:12 am
Forum: Personal Finance (Not Investing)
Topic: random check in the mail
Replies: 22
Views: 2627

random check in the mail

Yesterday I received a check in the mail for $23 from a person I don't know. No message or anything, just a check. I'm assuming this is some kind of scam, but what exactly does the person have to gain from this?
by mbecker03
Thu Aug 22, 2013 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Buying a car - comparing prices
Replies: 8
Views: 1644

Buying a car - comparing prices

I'm in the process of buying a car and I'd like to do so within the next week or so. The two cars we're looking at are the Honda Odyssey and the Toyota Sienna. I'm trying to find a simple way to compare the cost of cars with different mileage and price. The way I'm thinking about it is very simple. ...
by mbecker03
Tue Jun 18, 2013 9:41 pm
Forum: Personal Consumer Issues
Topic: New Car Advice
Replies: 58
Views: 6633

Re: New Car Advice

Some new information. My battery died on my way out of the office today (Murphy's law strikes again!). Anyways, my co-worked helped my jump it, and the first time we did it smoke immediately started coming out from where the dipstick is located. I turned the car off, tried again about 5 minutes late...
by mbecker03
Tue Jun 18, 2013 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Whole life guaranteed returns
Replies: 10
Views: 1120

Re: Whole life guaranteed returns

I have no interest in determining the rate of return on the death benefit. Are they factoring that into their calculation? I'm also not interested in the illustrated return from dividends for my purposes here. The big piece that seems to make sense to me in that article (thanks for the link by the w...
by mbecker03
Tue Jun 18, 2013 9:43 am
Forum: Personal Consumer Issues
Topic: New Car Advice
Replies: 58
Views: 6633

Re: New Car Advice

It was a shop in Boston, MA. Again, it's closed now as they just retired. For a couple of those earlier services (not the radiator), I did call around to a few places and got similar prices. After those first couple of times I stopped comparison shopping.
by mbecker03
Tue Jun 18, 2013 9:20 am
Forum: Personal Consumer Issues
Topic: New Car Advice
Replies: 58
Views: 6633

Re: New Car Advice

Wow, thanks again for all the replies! Tons to think about here. I guess I was simply mistaken about the horsepower. 95 was just a ballpark guess. The point was that it's low and I don't care. But clearly, again, my knowledge on this subject is very limited. In terms of what's been done recently, he...
by mbecker03
Tue Jun 18, 2013 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Whole life guaranteed returns
Replies: 10
Views: 1120

Whole life guaranteed returns

In doing some research, I went back to an old whole life illustration I had received just a couple of years ago. I was surprised to see that the "guaranteed return" was quoted at 4%. But when I actually ran the numbers using their illustration, after 40 years the IRR on the guaranteed portion was on...
by mbecker03
Sun Jun 16, 2013 3:37 pm
Forum: Personal Consumer Issues
Topic: New Car Advice
Replies: 58
Views: 6633

Re: New Car Advice

Again, thank you everyone for the advice. This has all been immensely helpful. Some of your input has also begged for more information, so let me try to give a little more detail about our situation. My wife has a Scion XA, which has been a great car but is tiny. It's likely we'll want to replace th...
by mbecker03
Sun Jun 16, 2013 8:53 am
Forum: Personal Consumer Issues
Topic: New Car Advice
Replies: 58
Views: 6633

Re: New Car Advice

Thanks everyone for the input. Has anyone bought a CRV new and regretted it?
by mbecker03
Sat Jun 15, 2013 4:07 pm
Forum: Personal Consumer Issues
Topic: New Car Advice
Replies: 58
Views: 6633

New Car Advice

Found out yesterday that the engine on my 1998 Honda Civic might need to be replaced. If that's the case, we're looking at replacing rather than fixing. This has been a long time coming, so it's not a total shock. But I know very little about cars, so any advice would be appreciated. We have two big...
by mbecker03
Fri Jun 14, 2013 4:05 pm
Forum: Investing - Theory, News & General
Topic: Importance of reinvesting dividends
Replies: 33
Views: 3902

Re: Importance of reinvesting dividends

They're about 40% of the whole. And isn't that a remarkable result ? If you look at the expected return for the stock market, dividends are only 25% of its yearly average! :happy I should say that historically they have been 40% of the whole, at least at the time Bogle wrote that article, for the t...
by mbecker03
Fri Jun 14, 2013 3:46 pm
Forum: Investing - Theory, News & General
Topic: Importance of reinvesting dividends
Replies: 33
Views: 3902

Re: Importance of reinvesting dividends

SpaceCommander wrote:And now more math from the critics who want to show that the reinvested dividend is irrelevant, etc. And we go round and round again... :P
They're not irrelevant. They're hugely important. They're just not 95% of the whole. They're about 40% of the whole.
by mbecker03
Fri Jun 14, 2013 12:30 pm
Forum: Investing - Theory, News & General
Topic: Importance of reinvesting dividends
Replies: 33
Views: 3902

Re: Importance of reinvesting dividends

I can see the logic (assuming all the above math is correct) in that if you leave out the reinvestment you come out 95% behind but I think what is being left out is that when you TAKE the dividends whatever you spend them on may ALSO have value -- food, shelter and clothing, for example! Not sure h...
by mbecker03
Fri Jun 14, 2013 12:15 pm
Forum: Investing - Theory, News & General
Topic: Importance of reinvesting dividends
Replies: 33
Views: 3902

Re: Importance of reinvesting dividends

In short what Mr. Bogle is suggesting that we should reinvest capital gains and dividends to get maximum benefits of our investing. Nothing wrong about that. :D I couldn't agree more with this last sentence, but that still doesn't make the 95% figure accurate. The fact of the matter is that capital...
by mbecker03
Fri Jun 14, 2013 11:40 am
Forum: Investing - Theory, News & General
Topic: Importance of reinvesting dividends
Replies: 33
Views: 3902

Re: Importance of reinvesting dividends

If the capital gain had not been reinvested the return would have been 4.3% compounded resulting in a final value of $302,711, hence capital gain accounted for 99% of the return :shock: That's exactly my point! By the logic used in the article, isn't it just a matter of which one you apply first? S...
by mbecker03
Fri Jun 14, 2013 11:01 am
Forum: Investing - Theory, News & General
Topic: Importance of reinvesting dividends
Replies: 33
Views: 3902

Importance of reinvesting dividends

I was recently pointed to the following article by John Bogle and would like some input on one particular piece. The full article is here: http://www.indexuniverse.com/publications/journalofindexes/joi-articles/3869-the-importance-of-investment-income.html The particular quote I'm interested in is: ...
by mbecker03
Sun Apr 21, 2013 9:09 am
Forum: Personal Consumer Issues
Topic: Getting lower cable rates by threatening to cancel
Replies: 67
Views: 9352

Re: Getting lower cable rates by threatening to cancel

I've done this with cable and with cell phones. You need to be polite but firm that you can't pay the current amount and that you'll just have to cancel if you can't work out a deal. Don't start with the threat to cancel though. Start by explaining that the current cost is too much and you need to w...
by mbecker03
Fri Apr 19, 2013 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Return on house sale
Replies: 11
Views: 887

Re: Return on house sale

Cool. Thanks for the input!
by mbecker03
Fri Apr 19, 2013 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Return on house sale
Replies: 11
Views: 887

Re: Return on house sale

Both a and c are meant to include all costs directly related to purchase/sale. So that would include commissions. FYI, I purposefully didn't choose generalizations for these variables, as you suggested, because I wanted something that people could use and plug in their own numbers. I do like the sim...
by mbecker03
Fri Apr 19, 2013 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Return on house sale
Replies: 11
Views: 887

Re: Return on house sale

Thanks both for the input. Littleken, I definitely get the impact of the ongoing costs above a rental, but I'm deliberately ignoring that for this purpose. When you say the formula is correct, are you referring to both formulas or just the first, non-inflation adjusted one? It's still not totally cl...
by mbecker03
Fri Apr 19, 2013 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Return on house sale
Replies: 11
Views: 887

Return on house sale

I'm trying to make a simple formula that determines the selling price needed to break even on a house. Looking for some input: Assumptions: -PITI = equivalent rental price -Ignoring cost of maintenance, other such costs. Trying to keep it simple. Variables: -a = broker/closing costs associated with ...
by mbecker03
Tue Feb 19, 2013 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on health insurance premiums paid on maternity leave
Replies: 3
Views: 426

Re: Tax on health insurance premiums paid on maternity leave

I'm finding the same unfortunate answer in a few places. Oh well. Thanks for the help.
by mbecker03
Tue Feb 19, 2013 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on health insurance premiums paid on maternity leave
Replies: 3
Views: 426

Tax on health insurance premiums paid on maternity leave

My wife had 9 months of unpaid maternity leave last year, during which we stayed on her health insurance and paid the premiums with weekly checks from our bank account. Now we have her W-2 and see that her company didn't count any of those payments as pre-tax. We've alerted them and their initial re...
by mbecker03
Fri Dec 07, 2012 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Non-Owners Auto Insurance - NY
Replies: 1
Views: 507

Non-Owners Auto Insurance - NY

I'm helping my brother get his finances together and we have an insurance question. He doesn't own a car but does drive from time to time and is interested in the liability coverage. I have no experience with non-owner's auto insurance. Does anyone know what providers have good non-owner's coverage ...
by mbecker03
Thu Jun 14, 2012 9:03 am
Forum: Investing - Theory, News & General
Topic: another value as risk story paper
Replies: 41
Views: 2935

Re: another value as risk story paper

I'm not familiar with the research, so forgive me if this is already considered. Let's assumed for a second that the small-value anomaly is real and will persist for the future. How do costs factor into actually implementing a strategy weighting these stocks more heavily? Just comparing Vanguard's T...