Search found 582 matches

by jdilla1107
Wed Jun 13, 2018 7:08 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin Price Manipulation
Replies: 42
Views: 4570

Re: Bitcoin Price Manipulation

I am so confused by this. How is manipulating bitcoin a crime? When did it become a regulated security? If someone were to manipulate the beanie baby market on ebay is that also a crime? Is bitcoin now regulated by the US government? I understand that bitcoin is now traded on the CME which is regula...
by jdilla1107
Tue Mar 27, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Google sheets not pulling stock prices
Replies: 21
Views: 2376

Re: Google sheets not pulling stock prices

It started working for me now after being broken for two days.
by jdilla1107
Sun Feb 18, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: I'm Cancelling My Home Insurance
Replies: 156
Views: 12169

Re: I'm Cancelling My Home Insurance

A better option is to set your deductible to a really high value. Mine is set at $20,000 and ends up being pretty cheap.
by jdilla1107
Sun Feb 11, 2018 9:33 am
Forum: Personal Finance (Not Investing)
Topic: 2018 taxes and AMT
Replies: 13
Views: 1920

2018 taxes and AMT

I find the AMT changes in 2018 difficult to understand. If I am taking the standard deduction in 2018, does that mean the AMT will no longer apply to me? The AMT always heavily limited my deductions in the past, so this feels like a significant win to me. Just making sure I am thinking about this co...
by jdilla1107
Fri Feb 09, 2018 7:37 pm
Forum: Investing - Theory, News & General
Topic: Bond funds and stock funds, which one is riskier?
Replies: 50
Views: 4486

Re: Bond funds and stock funds, which one is riskier?

I often see the "put option prices for stocks get more expensive for longer durations therefore risk increases with duration" argument. The problem is one is paying for the option of exercising the put *at any time* during the period Vs at the end of the period. So, this will cost more for longer t...
by jdilla1107
Thu Feb 08, 2018 7:48 pm
Forum: Investing - Theory, News & General
Topic: Bonds vs Stocks in Tax Deferred
Replies: 1
Views: 257

Re: Bonds vs Stocks in Tax Deferred

This topic gets debated to death here. You are right that it depends on the situation. Instead of making a recommendation, I will list out the factors I consider: - Bonds grow slower than stocks - Stocks are taxed at more favorable rates than bonds - The relative sizes of current taxable, roth, and ...
by jdilla1107
Sun Feb 04, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Brokerage 1099-DIV doesn't add up with international funds
Replies: 7
Views: 519

Re: Brokerage 1099-B doesn't add up with international funds

Interesting. The difference is still less than my foreign tax credit though. (Yes, i meant 1099-div) A corrected 1099 may be in your future. I have gotten a corrected 1099-DIV from Wells Fargo for the last 4 years. It's always for small amount in differences on my 1099-DIV. I wonder why it's so dif...
by jdilla1107
Sun Feb 04, 2018 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Brokerage 1099-DIV doesn't add up with international funds
Replies: 7
Views: 519

Re: Brokerage 1099-B doesn't add up with international funds

Interesting. The difference is still less than my foreign tax credit though. (Yes, i meant 1099-div)
by jdilla1107
Sun Feb 04, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Brokerage 1099-DIV doesn't add up with international funds
Replies: 7
Views: 519

Brokerage 1099-DIV doesn't add up with international funds

I own 4 ETFs in a taxable brokerage account. If I add up the dividends I received through 2017, everything equals the 1099-B for the 2 USA based funds (VTI, VYM). If I do this same thing for the international funds (VWO, VEA), the 1099-B is higher (around 4%) than what my dividend history shows. Thi...
by jdilla1107
Fri Jan 19, 2018 9:03 pm
Forum: Investing - Theory, News & General
Topic: How do Bogleheads reconcile efficient markets theory with Bitcoin?
Replies: 45
Views: 2683

Re: How do Bogleheads reconcile efficient markets theory with Bitcoin?

Efficient doesn't mean correct or rational. Efficient also doesn't mean that "you should own it". The markets for Tuna fish and wood pulp are quite efficient and I would not recommend owning those markets. Do you have any inside information that will allow you to derive bitcoin profits with no risk?...
by jdilla1107
Mon Jan 01, 2018 4:10 pm
Forum: Investing - Theory, News & General
Topic: Tax Law Sunset 2025 - Roth vs Traditional
Replies: 90
Views: 8334

Re: Tax Law Sunset 2025 - Roth vs Traditional

The possibility that tax rates might go up never enters anyone's heads. No. What enter's people's heads is that locking in savings now is better than the possibility of saving an indeterminate amount of money in the future. To have a higher marginal tax rate in retirement than one's working years i...
by jdilla1107
Sat Dec 30, 2017 2:14 pm
Forum: Personal Consumer Issues
Topic: Ford Fusion under Safety Recall for 2 Years - Ford Can't Fix - help
Replies: 49
Views: 5298

Re: Ford Fusion under Safety Recall for 2 Years - Ford Can't Fix - help

The Ford dealer near me fixed mine on the same day I called. This was over a year ago though. Is there another Ford dealer you can try contacting? What did he fix it with? Are you sure we are discussing the Takata air bags? Are you sure it cleared out the recall? According to Ford's own letter and ...
by jdilla1107
Fri Dec 29, 2017 9:21 pm
Forum: Personal Consumer Issues
Topic: Ford Fusion under Safety Recall for 2 Years - Ford Can't Fix - help
Replies: 49
Views: 5298

Re: Ford Fusion under Safety Recall for 2 Years - Ford Can't Fix - help

The Ford dealer near me fixed mine on the same day I called. This was over a year ago though. Is there another Ford dealer you can try contacting?
by jdilla1107
Thu Dec 28, 2017 3:47 pm
Forum: Investing - Theory, News & General
Topic: Conceptually: *Why* does the Yield Curve invert?
Replies: 29
Views: 3152

Re: Conceptually: *Why* does the Yield Curve invert?

What I do not understand is: Basically what I asked above. Why not take the higher rates that are available on the shorter-term part of the yield curve? Which would you rather do: -Earn 3% interest for 1 year and then 1% interest for another 9 years - Earn 2% interest for 10 years This is an exampl...
by jdilla1107
Tue Dec 26, 2017 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

Here's an example: let's say someone can save 15% on a contribution now. Even without that contribution, the person expects to have a 22% marginal rate in retirement, but an 11% effective/blended/overall rate. Should that person - contribute to traditional because 15% > 11%, or - contribute to Roth...
by jdilla1107
Tue Dec 26, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

Having said that, I also expect to retire early and spend 10 years in the 15% or lower marginal rates living off after-tax investments. At that point, taking pre-tax dollars contributed at 24%+ marginal rates and converting them at 15% or lower marginal rates makes a lot of sense. I am done discuss...
by jdilla1107
Tue Dec 26, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

For a single person under age 65 using a 4% withdrawal rate on traditional balances alone, the balances required to reach several rates are 10%: $300,000 12%: $538,125 22%: $1,267,500 24%: $2,362,500 32%: $4,237,500 Once the traditional balance reaches (or is projected to reach, depending on one's ...
by jdilla1107
Tue Dec 26, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

In this case, semantics does matter. If only the IRS would allow us to withdraw from each year's tIRA contribution "in parallel" then one could apply the $12K standard deduction to withdrawals from each individual year's contribution and resulting gains. But we don't get to do that, do we? I am pre...
by jdilla1107
Tue Dec 26, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

Bacchus01 is correct about marginal rate versus marginal rate. Note that "other income sources" also includes "withdrawals from traditional (aka pre-tax) accounts based on past contributions". The more one already has in traditional accounts, the higher the marginal rate one will pay on the additio...
by jdilla1107
Sun Dec 24, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

the marginal benefit of taking it out in the 24% bracket and paying in say the 22% bracket Wouldn't it be more like taking it out at 24% and paying it back in the 12% bracket? The key to pre-tax 401ks is that you get to deduct at your marginal rate and pay at your future average rate. It also depen...
by jdilla1107
Sun Dec 24, 2017 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

the marginal benefit of taking it out in the 24% bracket and paying in say the 22% bracket Wouldn't it be more like taking it out at 24% and paying it back in the 12% bracket? The key to pre-tax 401ks is that you get to deduct at your marginal rate and pay at your future average rate. It also depen...
by jdilla1107
Sun Dec 24, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Pre-Tax 401k
Replies: 57
Views: 4714

Re: Roth 401k vs Pre-Tax 401k

Do you live in a state with income tax? Do you plan on living in a state with no income tax in retirement? Thanks for this consideration. I am dropping from a marginal rate of 33% to 24% and didn't consider the state impact of staying with pre-tax 401k. My state doesn't tax IRA withdrawals, so that...
by jdilla1107
Fri Dec 22, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Do you see a meaningful change in your income with new Tax Bill?
Replies: 266
Views: 23373

Re: Do you see a meaningful change in your income with new Tax Bill?

It looks like I'll save between 2 and 4 thousand, which isn't very interesting to me. (It's also very hard to estimate with AMT, capital gains, qualifed dividends, and so on) But what is interesting is that it looks like my marginal tax rate is going from 33% to 24%, which creates some new situation...
by jdilla1107
Sat Dec 16, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: Jim Simons Medalion fund averages 71.8% annual return
Replies: 26
Views: 4632

Re: Jim Simons Medalion fund averages 71.8% annual return

Jim Simmons fund is not passive investing. It's people working long hours on building a business. Tesla, Microsoft, and Amazon have all had fantastic returns too, yet people don't like that comparison because they imagine his fund "stock picking", which is not what is going on. There is a fine line ...
by jdilla1107
Mon Dec 11, 2017 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: best cashback credit card ?
Replies: 48
Views: 6113

Re: best cashback credit card ?

The costco card is 4% on gas, 3% on travel, 3% on restaurants. The Amex Blue cash is 3% on groceries. (Or 5% if you pay an annual fee)

A combination of those two cards plus the double cash for everything else, is what I do.
by jdilla1107
Sun Dec 10, 2017 9:20 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7938

Re: Stocks always in taxable for tax efficient investing?

People always debate this issue with a set of assumptions which then don't hold for others. The factors that should be considered are: - Capital gains tax rates vs income tax rates (Traditional account withdrawls get taxed as income; capital gains is less) - Personal tax rates now vs retirement. (Th...
by jdilla1107
Fri Dec 08, 2017 8:13 pm
Forum: Investing - Theory, News & General
Topic: Pepsi moving from NYSE to NASDAQ
Replies: 5
Views: 773

Re: Pepsi moving from NYSE to NASDAQ

It makes no difference to an investor. It's likely a cost savings play on Pepsi's part. Companies often get financial incentives for switching. The NYSE considers themselves the "name brand" exchange and charges more in listing fees.
by jdilla1107
Thu Nov 23, 2017 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Filing Illinois Income Taxes Online
Replies: 11
Views: 1130

Re: Filing Illinois Income Taxes Online

I always use tax software and then instead of paying the fee to file my state taxes electronically, I just spend 10 minutes and copy the values onto IL website.
by jdilla1107
Mon Nov 20, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 12521

Re: Valuation of EE Savings Bonds

I agree with all of this, except I don't think it's good to blindly use 3.53%. EE bonds should be valued compared to other available investments. What if the US was experiencing high inflation and savings account interest rates were 10%? At the 19 year mark of your EE bonds, your model would have t...
by jdilla1107
Mon Nov 20, 2017 9:12 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 12521

Re: Valuation of EE Savings Bonds

I agree with willthrill. An EE-bond within a portfolio should be valued as what it is presently worth. For an EE-bond prior to maturity, this would be the face value plus the 0.1% interest accrued thus far. The 3.53% rate is simply a mental accounting for what the 20yr holding period returns; not a...
by jdilla1107
Sun Nov 12, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 2421

Re: Donor Advised funds

"Tax deferred space" refers to the maximum contribution limits related to traditional IRAs and workplace retirement plans - NOT at all what you are talking about. That's why everyone is either confused or disagreeing with you. I think this forum commonly accepts that EE boonds and I Bonds expand ta...
by jdilla1107
Sat Nov 11, 2017 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 2421

Re: Donor Advised funds

You've got it backwards. It doesn't expand your tax deferred space, but the charity's. It's not your tax deferred space, but the charity's. For exactly that reason, not to mention the costs, you proposal is inferior. Either the money sits in my taxable account or the DAF. If the money sits in my ta...
by jdilla1107
Sat Nov 11, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 2421

Re: Donor Advised funds

You've got it backwards. It doesn't expand your tax deferred space, but the charity's. It's not your tax deferred space, but the charity's. For exactly that reason, not to mention the costs, you proposal is inferior. Right. Absent administrative or other reasons such as those DM200 elaborated on, b...
by jdilla1107
Sat Nov 11, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 2421

Re: Donor Advised funds

You've got it backwards. It doesn't expand your tax deferred space, but the charity's. It's not your tax deferred space, but the charity's. For exactly that reason, not to mention the costs, you proposal is inferior. Either the money sits in my taxable account or the DAF. If the money sits in my ta...
by jdilla1107
Sat Nov 11, 2017 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 2421

Donor Advised funds

Let's say I am faced with the choice between: 1) Donating $X per year over 10 years to charity 2) Donating $10X all in one year to a donor advised fund and dispersing $X to charity annually I didn't think of it this way before, but #2 seems better for the following reasons: - It expands my limited t...
by jdilla1107
Fri Nov 03, 2017 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Value of charitable donations on taxes
Replies: 3
Views: 496

Value of charitable donations on taxes

Based of the news of potential tax changes that may or may not come to pass, I have been considering accelerating charitable giving in 2017. My thinking is like this: - It's seems very unlikely that my deduction would be worth MORE in the future than it is this year. -There is a chance my deduction ...
by jdilla1107
Tue Oct 17, 2017 8:34 pm
Forum: Personal Consumer Issues
Topic: any good credit card sign up bonuses?
Replies: 15
Views: 1479

Re: any good credit card sign up bonuses?

I just did Barclay arrival plus. Bonus of $400 in travel reimbursement, no annual fee for first year.

Next up for me is likely capital one venture rewards. Looks like 50,000 mile bonus.

I also always do 2x bonuses because i do one card for me and a separate account for my spouse.
by jdilla1107
Tue Oct 17, 2017 7:58 pm
Forum: Investing - Theory, News & General
Topic: Alternatives to selling TSM from a taxable account
Replies: 5
Views: 797

Re: Alternatives to selling TSM from a taxable account

Direct all new funds plus all stock dividends to bonds. Around 2% of your stock portfolio can naturally shift to bonds per year through dividends alone.
by jdilla1107
Wed Aug 30, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax and Trusts
Replies: 4
Views: 510

Re: Estate Tax and Trusts

My own situation is that I am well under the estate tax exemption today, but am optimistic about my future. I sometimes wonder if I should transfer assets to a trust to let them grow in the trust. The downside is annual tax complexity I would rather avoid. However, I think this is the secret to gett...
by jdilla1107
Wed Aug 30, 2017 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax and Trusts
Replies: 4
Views: 510

Estate Tax and Trusts

I am trying to understand the basics of trusts and the estate tax. Say a single person is on their death bed with a $10m portfolio all in a taxable account. Can they create a trust immediately, transfer all assets to the trust, leave the trust to heirs, and avoid the estate tax completely? (I picked...
by jdilla1107
Fri Aug 25, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Passive investing is a Ponzi scheme
Replies: 77
Views: 7150

Re: Active investing is a Ponzi scheme

The problem with making this play is you are taking on tremendous market risk by holding Facebook. Most of the share price is the cost of playing the ponzi scheme not the intrinsic value of the stock. This is precisely the point. Risk is a component of price, right? To get more return you have to t...
by jdilla1107
Fri Aug 25, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: Passive investing is a Ponzi scheme
Replies: 77
Views: 7150

Re: Active investing is a Ponzi scheme

In the interview she did mention specific examples of where she felt the risk in indexing were particularly acute with the FANG stocks vs. stocks like Microsoft where you get the same growth at more reasonable valuations. Why doesn't she invest in FANG stocks, stay away from Microsoft, and enjoy he...
by jdilla1107
Sat Aug 19, 2017 1:02 pm
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 10385

Re: IBonds: My worst bond investment over the last 5 years

Also, OP is not comparing apples to apples. OP is comparing liquid I Bonds to bond funds with 6 year duration. Duration says nothing about liquidity. 10 yr treasuries are some of the most liquid investments in the world. Perhaps you mean different risk profiles. On the other hand...instead of compa...
by jdilla1107
Sat Aug 19, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 10385

Re: IBonds: My worst bond investment over the last 5 years

whodidntante wrote:
Sat Aug 19, 2017 11:10 am
You're comparing a lot of different kind of fruits there over a short time period. Don't confuse outcomes with strategy. In poker we call this "playing results."
My point was that few would have predicted this 5 years ago, including myself. That's all.
by jdilla1107
Sat Aug 19, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 10385

Re: IBonds: My worst bond investment over the last 5 years

Five years ago, inflation was a big concern on this forum and a good number of people thought that low yields had no where to go but up. I bought a 5 year CD at that time and wrote a note to myself to check-in on results when that CD expired. (It recently did) I bought that CD with a 60 day cancel ...
by jdilla1107
Sat Aug 19, 2017 9:47 am
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 10385

Re: IBonds: My worst bond investment over the last 5 years

From the TD website: May 1, 2017 0.98% November 1, 2016 1.38% May 1, 2016 0.08% November 1, 2015 0.77% May 1, 2015 -0.80% November 1, 2014 0.74% May 1, 2014 0.92% November 1, 2013 0.59% May 1, 2013 0.59% November 1, 2012 0.88% Assuming a 0% on the fixed part: I did (.98+1.38)/2 + (.08+.77)/2 + (0+.7...
by jdilla1107
Sat Aug 19, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 10385

IBonds: My worst bond investment over the last 5 years

Five years ago, inflation was a big concern on this forum and a good number of people thought that low yields had no where to go but up. I bought a 5 year CD at that time and wrote a note to myself to check-in on results when that CD expired. (It recently did) I bought that CD with a 60 day cancel f...
by jdilla1107
Mon Aug 07, 2017 8:45 pm
Forum: Investing - Theory, News & General
Topic: Final word: Bonds in Tax-Deferred or Taxable?
Replies: 10
Views: 1381

Re: Final word: Bonds in Tax-Deferred or Taxable?

My strategy is to minimize taxes for the current year and not a future year. Stock dividends are taxed at a lower rate than bond yield and stocks also yield less for the bonds I buy. This means bonds in tax deferred stocks in taxable. In the future, I will worry about minimizing taxes for a future y...
by jdilla1107
Fri Jul 28, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Illinois Partial Year tax increase
Replies: 19
Views: 3620

Re: Illinois Partial Year tax increase

I just got this from a CPA:

"The Department of Revenue will provide two elective options: apply a blended daily rate to all income, or identify when various components of income are earned and apply the rate in effect at those different times. "
by jdilla1107
Fri Jul 07, 2017 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Illinois Partial Year tax increase
Replies: 19
Views: 3620

Illinois Partial Year tax increase

Illinois just passed a tax increase from 3.75% to 4.95% retroactive to July 1st. How does a partial year tax increase even work? What if a capital gain occurred on April 1st? (I had a large one in April) Will it just be a blended rate of (3.75+4.95)/2 since it conveniently is 6 months into 2017? I g...