Search found 596 matches

by jdilla1107
Sun Dec 02, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: The new tax law and charitable giving
Replies: 15
Views: 1569

Re: The new tax law and charitable giving

Consider bunching donations to a donor advised fund. For example, instead of donating $5k a year, donate $30k to a donor advised fund and then payout to the charities over 6 years. There is really downside to doing this besides needing to having the money available. Also, donate appreciated stock to...
by jdilla1107
Sun Nov 04, 2018 5:05 pm
Forum: Personal Consumer Issues
Topic: Thoughts on the New Macbook Air?
Replies: 70
Views: 4080

Re: Thoughts on the New Macbook Air?

The 2018 macbook air and the 2017 macbook pro are almost the same machine in terms of CPU performance. Here are some benchmarks showing this: https://9to5mac.com/2018/11/01/macbook-air-geekbench-results/ You would not be able to perceive these differences. The 2017 macbook pro is slightly better per...
by jdilla1107
Mon Oct 15, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Should I sell Microsoft Bond
Replies: 19
Views: 1422

Re: Should I sell Microsoft Bond

A 7 year bond that you have held for 3 years, is now a 4 year bond. Taking a 2% loss to trade a 4 year bond for a 2 year bond at the interest rate doesn't make any sense to me.

The interest rate market is just as hard to predict as any other market. Stay the course.
by jdilla1107
Wed Oct 10, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 102
Views: 9946

Re: When will you backup the truck on stocks

A 10% drop would seem to put us around levels seen in March of this year. Yawn.
by jdilla1107
Sun Sep 30, 2018 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Layoffs – Insurance after COBRA
Replies: 16
Views: 2310

Re: Layoffs – Insurance after COBRA

Note that we are almost to the end of the year and deductibles run year to year. So, if you already hit your deductible on your current plan, it could likely make sense to stay on conbra until Dec 31 and then switch to ACA. Otherwise you will have an ACA plan for only 3 months, and your deductible w...
by jdilla1107
Mon Sep 24, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Nitty Gritty of solo 401k
Replies: 7
Views: 702

Re: Nitty Gritty of solo 401k

1. Looking into discount 401(k) vs mysolo401(k) as potential document preparers. Plan on having 1 trust with 3x2= 6 different accounts (1 for ROTH 401k, 1 for pretax 401k and Profit sharing and lastly, 1 for VAT for each person)- Plan to rollover VAT to either ROTH 401k or ROTH IRA. This should mak...
by jdilla1107
Sun Sep 23, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: I'm just itching to tax-GAIN harvest
Replies: 7
Views: 1241

Re: I'm just itching to tax-GAIN harvest

gd wrote:
Sun Sep 23, 2018 6:31 am
You're going to pay the state tax at some point.
Not if you move to a lower tax state later in life.
by jdilla1107
Mon Sep 17, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k at Wells Fargo
Replies: 7
Views: 511

Re: Solo 401k at Wells Fargo

I came back to answer part of my own question. Some providers (Fidelity and Vanguard) are willing to act as the trustee for the Solo 401k. This means you only need to act as the "Employer"; thus one account. Some providers are not willing to act as the trustee (ie: Wells Fargo). This means at Wells ...
by jdilla1107
Wed Sep 12, 2018 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k at Wells Fargo
Replies: 7
Views: 511

Re: Solo 401k at Wells Fargo

The Wells Fargo specifc comments are completely off base. It's a regular brokerage account (buy anything), I get 100 free trades per year per account, and pay no fees whatsoever. (This is apparently a grand fathered deal called "PMA" that is no longer offered.) I have been extremely happy with them ...
by jdilla1107
Wed Sep 12, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k at Wells Fargo
Replies: 7
Views: 511

Solo 401k at Wells Fargo

I just opened a solo 401k as a sole proprietorship at Wells Fargo and it didn't go as I expected. I asked them a bunch of followup questions and they didn't come off as super knowledgeable with regards to the mechanics. I can't tell if I am confused or they are. As background, when I opened the acco...
by jdilla1107
Sun Aug 19, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2851

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

How about use the HSA to hold bond allocation? Then it becomes clearly better to defer the withdrawals. (ie; you aren't comparing income tax to LTCG tax)
by jdilla1107
Wed Aug 15, 2018 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: High tax bracket - Go 100% Roth in tax advantaged?
Replies: 47
Views: 4188

Re: High tax bracket - Go 100% Roth in tax advantaged?

My CPA pointed out that RMD's when I hit 70 would be so high that I'd end up in the same or higher tax bracket. While we don't know if there'll be a new tax plan by 2026, the new tax brackets (2018) are set to expire that year and revert to the old (2017) system, which would bump me up to the 39.6%...
by jdilla1107
Sat Jul 14, 2018 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and sole proprietorship
Replies: 9
Views: 836

Re: Taxes and sole proprietorship

Thanks. I think it's time to sell my muni bonds and switch to taxable bonds. :)
by jdilla1107
Sat Jul 14, 2018 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and sole proprietorship
Replies: 9
Views: 836

Taxes and sole proprietorship

I am looking to convert to consulting/contract work from a career as a W2 employee. I am high net worth person and am looking to decelerate my career. To keep the numbers simple, let's say I make $100k of sole proprietor income in 2018. Is it right that I would get these deductions? The new 20% QBI ...
by jdilla1107
Wed Jun 13, 2018 7:08 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin Price Manipulation
Replies: 45
Views: 5696

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: 40
Views: 6969

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: 13282

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: 2204

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: 4796

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: 263

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: 586

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: 586

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: 586

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: 3025

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: 8864

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: 87
Views: 12712

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: 87
Views: 12712

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: 30
Views: 3852

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: 5215

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: 5215

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: 5215

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: 5215

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: 5215

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: 5215

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: 5215

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: 5215

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: 25487

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: 5811

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: 8753

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: 102
Views: 9111

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: 835

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: 1229

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: 13194

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: 13194

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: 2827

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: 2827

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: 2827

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: 2827

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: 2827

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: 537

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 ...