Search found 163 matches
- Mon Jun 20, 2022 7:53 am
- Forum: Investing - Theory, News & General
- Topic: Bonds don't seem to hedge against downturns anymore
- Replies: 153
- Views: 17542
Bonds don't seem to hedge against downturns anymore
Seems in 08 and now they both fell when the downturn happened. Am I misunderstanding their purpose? I feel like just going 100% stock if they don't actually guard against downturns which are temporary anyways
- Fri Apr 29, 2022 4:02 pm
- Forum: Investing - Theory, News & General
- Topic: Seller financing and implications on taxes
- Replies: 4
- Views: 548
Re: Seller financing and implications on taxes
Thanks. Generally on these installment sales, if the seller does not have capital gains from other sources, it looks like their capital gains obligations would be near zero, does that sound right? If they're getting $2,000 in capital gains each month, that's under the $40,000 threshold for the 15% bracket.
- Fri Apr 29, 2022 9:34 am
- Forum: Investing - Theory, News & General
- Topic: Seller financing and implications on taxes
- Replies: 4
- Views: 548
Seller financing and implications on taxes
Hi I have a few questions about seller financing a house in vacaville california:
1. Is the payment due to the seller considered earned income?
2. He is 73 and asked if he has to file income taxes. I think yes at both the state and federeal level, is this correct? He receives social security payments right now.
1. Is the payment due to the seller considered earned income?
2. He is 73 and asked if he has to file income taxes. I think yes at both the state and federeal level, is this correct? He receives social security payments right now.
- Sun Oct 17, 2021 8:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth or Trad 401k if your first 120k is untaxed?
- Replies: 11
- Views: 1706
Re: Roth or Trad 401k if your first 120k is untaxed?
The 12% bracket caps out at about 40.5k right? So if I'm withdrawing say 45k, won't i pay 10% to 10k 12% to 40k, and 22% to 45k?
Sorry I'm not the greatest with taxes. What really confuses me is if I withdraw say 30k in cap gains from a taxable account, how the above changes.
- Sun Oct 17, 2021 11:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Roth or Trad 401k if your first 120k is untaxed?
- Replies: 11
- Views: 1706
Re: Roth or Trad 401k if your first 120k is untaxed?
20k income is not excluded and taxed in the middle brackets if I go with Roth 401k. I plan to withdraw $48k/year when I retire. How does the tax situation compare for putting 20k into the roth 401, trad 401k, or just a taxable account? What do you mean by “middle brackets?” If your taxable income is 20k wouldn’t that put you in the 10/12%? Are you married or single? You are planning to withdraw 48k in retirement, what is your projected total taxable income in retirement? 1. the last 20k of 140k income would be treated as such, as if there were no FEIE deduction. I think that puts that income in the 22 or 24% tax brackets 2. single 3. i'm not clear on having both cap gains and income tax. i believe 40k from investment liquidations will get ...
- Sun Oct 17, 2021 12:09 am
- Forum: Personal Finance (Not Investing)
- Topic: Roth or Trad 401k if your first 120k is untaxed?
- Replies: 11
- Views: 1706
Roth or Trad 401k if your first 120k is untaxed?
Although I make 120k I would like to present the scenario if I made 140k. The first 120k is untaxed (FEIE + standard deduction). My company is introducing a Roth 401k, our Trad 401k has no match so the Roth would not either.
20k income is not excluded and taxed in the middle brackets if I go with Roth 401k.
I plan to withdraw $48k/year when I retire.
How does the tax situation compare for putting 20k into the roth 401, trad 401k, or just a taxable account?
20k income is not excluded and taxed in the middle brackets if I go with Roth 401k.
I plan to withdraw $48k/year when I retire.
How does the tax situation compare for putting 20k into the roth 401, trad 401k, or just a taxable account?
- Wed Sep 08, 2021 9:08 am
- Forum: Investing - Theory, News & General
- Topic: Foreign Developed seems way less volatile than US
- Replies: 7
- Views: 1472
Re: Foreign Developed seems way less volatile than US
Anyone know a good fund or index to compare Foreign Developed over a 50+ year duration?
- Tue Sep 07, 2021 9:52 am
- Forum: Investing - Theory, News & General
- Topic: Foreign Developed seems way less volatile than US
- Replies: 7
- Views: 1472
Foreign Developed seems way less volatile than US
Foreign developed as captured by SCHF: https://www.netcials.com/stock-volatili ... quity-ETF/
US, SCHB: https://www.netcials.com/stock-volatili ... arket-ETF/
Can someone who believes in being US heavy make the case for why a US citizen should tilt to US stock instead of Foreign Developed?
US, SCHB: https://www.netcials.com/stock-volatili ... arket-ETF/
Can someone who believes in being US heavy make the case for why a US citizen should tilt to US stock instead of Foreign Developed?
- Mon Sep 06, 2021 7:06 pm
- Forum: Investing - Theory, News & General
- Topic: Volatility: how does SCHF (Foreign Developed) compare to SCHB (US)
- Replies: 3
- Views: 557
Volatility: how does SCHF (Foreign Developed) compare to SCHB (US)
I'm curious how the developed international markets, as a bundle, compare in terms of volatility, to US stocks. I'm guessing foreign's volatility is lower because many economies are represented. Is this correct or are they comparatively worse?
- Sun Sep 05, 2021 8:18 pm
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Re: Review of my investment plan
A higher stock allocation is long term safer than having 60% of your money earning 3-4% in bonds. During drawdown periods, withdrawing less helps. And especially taking some freelance work; I know most professions don't allow that but mine does.
High risk I would consider to be retiring early on 400k, high bond allocation, withdrawing 16k per year and no ability to hop back into the workforce.
If you guys don't agree with my definition of high vs medium risk, that's fine. I hope we can focus on substantive parts of the plan though
High risk I would consider to be retiring early on 400k, high bond allocation, withdrawing 16k per year and no ability to hop back into the workforce.
If you guys don't agree with my definition of high vs medium risk, that's fine. I hope we can focus on substantive parts of the plan though
- Sun Sep 05, 2021 2:23 pm
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Re: Review of my investment plan
I went back and added 70k per year contributions, or a little over 5800/mo
- Sun Sep 05, 2021 1:33 pm
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Re: Review of my investment plan
A near 50% devaluation is possible but unlikely. Dave Swenson says long term, currency fluctuations are EV neutral.
A recent report showed Thailand lost a huge chunk of its manufacturing to Vietnam and it's service heavy economy is currently taking heavy blows. It has never been an intellectual country, its success owes to well chosen alliances in the past. So I don't see a case for it rapidly gaining on the US economy personally.
A recent report showed Thailand lost a huge chunk of its manufacturing to Vietnam and it's service heavy economy is currently taking heavy blows. It has never been an intellectual country, its success owes to well chosen alliances in the past. So I don't see a case for it rapidly gaining on the US economy personally.
- Sun Sep 05, 2021 11:04 am
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Re: Review of my investment plan
I suppose you have a family and maybe kids in private schools? Because $3.5k/month is a huge spend here otherwise.
*I guess if you have a few girlfriends that could quickly require more funds too
- Sun Sep 05, 2021 8:20 am
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Re: Review of my investment plan
In reality I'll be overshooting for my needs as I live in Thailand and spend a moderate amount. So I'm quite happy with the 4% projection especially because I can top off with freelance work at any time if something looks off.
- Sun Sep 05, 2021 5:58 am
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Re: Review of my investment plan
Thanks guys, my responses: "Minimal tax payments to keep as much as possible" is not necessarily compatible. You want to optimize your taxes. Can you give a common example where your statement is not compatible with mine? What measure are you using to determine if something is under or over valued? I use the Buffet Indicator. You seem to have made your starting portfolio one of your objectives. Does that mean that you have not yet invested even $15k? If so, what are you changing now to start adding enough to reach your goals in 12 years? To make $15k into 1.23m in 12 years at 7%, you would have to invest about $63k a year. I have 15k invested. For a long time I lost money/savings running an unprofitable business. Now I have rejoin...
- Sat Sep 04, 2021 10:01 pm
- Forum: Personal Investments
- Topic: Review of my investment plan
- Replies: 16
- Views: 2030
Review of my investment plan
I think you guys may not like the lack of rebalancing and focusing new contributions on the "other" investment when US stock becomes severely over/underpriced (like right now). Your thoughts appreciated. ## Objective - Retire at age 48, in December 2032 - Annual income of $45,000 in 2031 dollars. About $34,000 in 2021 dollar - 15k start, 70k per year contributions, 12 full years invested, 7% return: 1.23m, 49k/yr at 4% withdrawal - Minimal tax payments to keep as much as possible ## Risk Tolerance - The short investment horizon reduces it - The willingness to work longer lengthens it - Overall, medium risk tolerance - Bonds are seen as low value though. Only good for holding cash assets ## Holding limits - Roughly 50% of each: US ...
- Sat Sep 04, 2021 3:34 pm
- Forum: Investing - Theory, News & General
- Topic: Is anyone tempted by value investing right now?
- Replies: 125
- Views: 15733
Is anyone tempted by value investing right now?
I personally am; index funds are at high P/Es right now. It goes against the Bogle ethos but my god, at some point you have to look at the price of the thing you're buying and hesitate.
- Sun Aug 15, 2021 8:10 am
- Forum: Investing - Theory, News & General
- Topic: Getting more tax efficient with VTI
- Replies: 23
- Views: 2750
Getting more tax efficient with VTI
I've been told the yearly capital gains on VTI amount to about 1.3% of its value. so 500k in VTI is $6,500 in yearly gains in a taxable account.
Are there any similar funds with lower expenses (ratio and taxes) for a taxable account. Or is VTI best for domestic stock?
Are there any similar funds with lower expenses (ratio and taxes) for a taxable account. Or is VTI best for domestic stock?
- Thu Jul 29, 2021 10:43 am
- Forum: Investing - Theory, News & General
- Topic: Is the market P/E range permanently higher?
- Replies: 57
- Views: 4210
Is the market P/E range permanently higher?
In the past 15 looked about average but 1990 to present appears to only crash to 15. looks like 20+ is the new "average' with much higher volatility too: https://www.multpl.com/s-p-500-pe-ratio
Do you guys think P/E 15 is gone as a market average?
Do you guys think P/E 15 is gone as a market average?
- Wed Jun 09, 2021 5:04 pm
- Forum: Investing - Theory, News & General
- Topic: Bitcoin allocation
- Replies: 10
- Views: 1082
Re: Bitcoin allocation
How can an asset rise from pennies to tens of thousands over a decade, and not have underlying value? It is clearly a digital asset.
- Wed Jun 09, 2021 4:59 pm
- Forum: Investing - Theory, News & General
- Topic: Best time to add bonds right before retirement
- Replies: 14
- Views: 2248
Re: Best time to add bonds right before retirement
I'm also in accumulation phase with zero bonds. At some point, I'll also need to take that leap too. I think it is courageous / inspirational that you'll retire so young... hopefully in good health and need to fund 45 years of retirement... and with "only" $1.1 million to start with. On this forum, people psychologically have a tough time retiring with 2x that amount. Is this $1.1 million in addition to a paid off house, or, is this your total net worth? Do you live in a LCOL area? What are your plans on how to spend retirement years... assuming you never have to go back to work? Thanks, my situation is I'm a US citizen living in Thailand. I don't think I've ever spent $3,000 in one month here. Cost go up and USD goes down though...
- Wed Jun 09, 2021 4:54 pm
- Forum: Investing - Theory, News & General
- Topic: Bitcoin allocation
- Replies: 10
- Views: 1082
Bitcoin allocation
Would you guys treat Bitcoin as a stock or cash equivalent?
I'm actually considering it to maybe be a whole nother group. Maybe a 5-10% allocation would be worthwhile based purely on performance.
I'm actually considering it to maybe be a whole nother group. Maybe a 5-10% allocation would be worthwhile based purely on performance.
- Tue Jun 08, 2021 5:01 pm
- Forum: Investing - Theory, News & General
- Topic: Best time to add bonds right before retirement
- Replies: 14
- Views: 2248
Re: Best time to add bonds right before retirement
20 Year or a diversified fund. I haven't read up on bonds yet; i will closer to the decision date though
I plan to do variable percentable withdrawal. Also, with a high stock % and willingness to work again one doesn't need to eliminate all risk. I could probably do over 4% SWR safely.Marseille07 wrote: ↑Mon Jun 07, 2021 4:44 pm Are you sure 1.1M is enough? You only have 33K/year to work with as you don't want to do 4% constant-dollar for 45 years.
- Mon Jun 07, 2021 12:39 pm
- Forum: Investing - Theory, News & General
- Topic: Best time to add bonds right before retirement
- Replies: 14
- Views: 2248
Best time to add bonds right before retirement
I'm on track to retire at 46 so projecting 45 years of retirement. 100/0 stocks/bonds during accumulation is comfortable to me. I plan to retire with about 1.1m and take a 12% bond allocation representing about 3 years of expenses. In case of a downturn at retirement or shortly before/after, for the first 5 years, I'm happy to hop back into the work force and will do side projects to keep sharp (I'm a web dev).
My question is about when the bonds should be bought. I'm planning on buying as I retire but maybe buying 1-2 years in advance is worth the slightly lower return for a couple years?
My question is about when the bonds should be bought. I'm planning on buying as I retire but maybe buying 1-2 years in advance is worth the slightly lower return for a couple years?
- Wed Jun 02, 2021 4:10 am
- Forum: Personal Finance (Not Investing)
- Topic: Resources for setting up a Mega Backdoor Roth
- Replies: 3
- Views: 534
Re: Resources for setting up a Mega Backdoor Roth
Well, I bought it at a first year cost of $500 from solo401k.com. So now I get to learn how to be a plan administrator. I'm probing them for resources on how to manage this 401k correctly. If anyone else knows of a good guide, please share!
- Tue Jun 01, 2021 8:53 am
- Forum: Personal Finance (Not Investing)
- Topic: Resources for setting up a Mega Backdoor Roth
- Replies: 3
- Views: 534
Resources for setting up a Mega Backdoor Roth
Per my other discussion (viewtopic.php?f=2&t=350219&p=6040698#p6040698) I am looking into options for setting up a mega-backdoor compatible solo 401k for my LLC.
I thought Etrade was good enough. If it is not, perhaps there is no commercially available plan. In that case costs may go up a lot.
Can anyone who has done this comment on the costs for setup, and perhaps recommend someone? Thank you
I thought Etrade was good enough. If it is not, perhaps there is no commercially available plan. In that case costs may go up a lot.
Can anyone who has done this comment on the costs for setup, and perhaps recommend someone? Thank you
- Tue Jun 01, 2021 8:50 am
- Forum: Personal Finance (Not Investing)
- Topic: Mega back door / Etrade question
- Replies: 4
- Views: 595
Re: Mega back door / Etrade question
This is definitely a concern. I will have to ask a tax professional about this. And also whether it is possible to hook a mega backdoor after tax account to my Etrade Solo 401k. Thank you!
- Tue Jun 01, 2021 6:03 am
- Forum: Personal Finance (Not Investing)
- Topic: Mega back door / Etrade question
- Replies: 4
- Views: 595
Mega back door / Etrade question
I am opening a Solo 401k, both Roth and Traditional at Etrade. I see it allows in service transfers: https://i.imgur.com/SzHJJRE.png
1. With these options enabled, I believe I can roll an unlimited balance from my Roth 401k into my Roth IRA at any time, effectively greatly increasing the contribution limit on my Roth IRA
2. Further, I believe I can roll all of my Solo Traditional 401k balance into my Roth IRA, paying federal income taxes during the rollover.
Is this correct? Is this the mega backdoor roth I've read about?
1. With these options enabled, I believe I can roll an unlimited balance from my Roth 401k into my Roth IRA at any time, effectively greatly increasing the contribution limit on my Roth IRA
2. Further, I believe I can roll all of my Solo Traditional 401k balance into my Roth IRA, paying federal income taxes during the rollover.
Is this correct? Is this the mega backdoor roth I've read about?
- Sat May 29, 2021 1:09 pm
- Forum: Investing - Theory, News & General
- Topic: FZILX seems like an excellent deal in taxable
- Replies: 13
- Views: 3315
Re: FZILX seems like an excellent deal in taxable
Can this be done indefinitely with reliable brokers, or is the list too small for that?abracadabra11 wrote: ↑Sat May 29, 2021 9:50 am Don't underestimate the benefits of portability. At the $1M level you referenced, you can easily get annual brokerage transfer bonuses in the $2500+ range. There are obvious switching costs that aren't monetarily counted, but there are also benefits to trying various brokerages.
- Sat May 29, 2021 2:10 am
- Forum: Investing - Theory, News & General
- Topic: FZILX seems like an excellent deal in taxable
- Replies: 13
- Views: 3315
FZILX seems like an excellent deal in taxable
https://fundresearch.fidelity.com/mutua ... /31635T609
0 ER and 0 cap gains distributions unless I'm misreading. There is no cap gains distribution table above where there is on the FZROX page.
Someone will mention that you're banking on the trend continuing. Well yes, the future is unknown. Meanwhile SCHF ETF and equivalents are paying $600 per million per year in ER. At a cost of $2,400 to date. Some consider that trivial, personally I'd rather have the $2,400.
Does this mutual fund beat ETFs in taxable?
0 ER and 0 cap gains distributions unless I'm misreading. There is no cap gains distribution table above where there is on the FZROX page.
Someone will mention that you're banking on the trend continuing. Well yes, the future is unknown. Meanwhile SCHF ETF and equivalents are paying $600 per million per year in ER. At a cost of $2,400 to date. Some consider that trivial, personally I'd rather have the $2,400.
Does this mutual fund beat ETFs in taxable?
- Fri May 28, 2021 8:39 am
- Forum: Personal Investments
- Topic: Have $2,000,000 in actively managed taxable accout. Should i fire my fee only advisor and go VTSAX?
- Replies: 41
- Views: 11105
Re: Have $2,000,000 in actively managed taxable accout. Should i fire my fee only advisor and go VTSAX?
Looks like both fund managers have been doing their jobs, those are some fair returns. If you think they can keep it up stay put, otherwise look into index funds.
- Fri May 28, 2021 8:29 am
- Forum: Investing - Theory, News & General
- Topic: Bear market and how to handle the bond allocation
- Replies: 6
- Views: 1143
Re: Bear market and how to handle the bond allocation
It's kind of like being a working girl, once you enter the profession you can never really leave. i may spend my time learning new things and building apps that no one buys. But I'll never just lose the skill
- Fri May 28, 2021 7:59 am
- Forum: Investing - Theory, News & General
- Topic: Bear market and how to handle the bond allocation
- Replies: 6
- Views: 1143
Bear market and how to handle the bond allocation
I plan to retire at 46 which means my stock allocation should remain high. I'm ok taking more risk because I can just become a programmer again if needed.
Every 4% into bonds is another year of bear market reserve. I think 12% is sufficient; I know others will consider that low.
Do you guys spring your bond allocation back to your pre-bear market allocation on the next positive year? Or do you do some sort of phase in, perhaps 2-4% converted from stocks for the next few years?
Every 4% into bonds is another year of bear market reserve. I think 12% is sufficient; I know others will consider that low.
Do you guys spring your bond allocation back to your pre-bear market allocation on the next positive year? Or do you do some sort of phase in, perhaps 2-4% converted from stocks for the next few years?
- Fri May 28, 2021 5:28 am
- Forum: Investing - Theory, News & General
- Topic: Help calculating the cost of a mutual fund in a taxable account
- Replies: 5
- Views: 638
Re: Help calculating the cost of a mutual fund in a taxable account
They are almost the same then. So I think FZROX is the lower cost fund at least in 2019, is that correct?
- Fri May 28, 2021 4:15 am
- Forum: Investing - Theory, News & General
- Topic: Help calculating the cost of a mutual fund in a taxable account
- Replies: 5
- Views: 638
Re: Help calculating the cost of a mutual fund in a taxable account
Ok, I googled and qualified dividends are taxed as cap. gains. How do I find the percent dividends that are qualified?
- Fri May 28, 2021 2:14 am
- Forum: Investing - Theory, News & General
- Topic: Help calculating the cost of a mutual fund in a taxable account
- Replies: 5
- Views: 638
Help calculating the cost of a mutual fund in a taxable account
I would like to verify for myself whether the cost of a mutual fund like FZROX do indeed outweigh the expense ratio of an ETF like SCHB (0.03%) in taxable accounts. Let's assume $1 million invested in the fund: I see the following: for FZROX: Dividend History 12/04/20 $0.171 $13.21 12/13/19 $0.164 $11.11 12/28/18 $0.002 $8.71 12/14/18 $0.053 $9.12 Capital Gains History 12/13/19 $0.007 $11.11 12/28/18 $0.007 $8.71 12/14/18 $0.003 $9.12 The price is roughly $15. So about 66,667 shares. Which means in 2019 there are dividends of $10,933. Capital gains of $466. So someone in the 22% fed income tax bracket and 15% capital gains bracket would pay roughly $2,405 income tax, and $70 capital gains tax, per year, just to maintain their account before...
- Fri May 28, 2021 1:54 am
- Forum: Investing - Theory, News & General
- Topic: Early withdrawals to avoid withdrawing during bear markets?
- Replies: 22
- Views: 2857
Re: Early withdrawals to avoid withdrawing during bear markets?
It sounds like some are saying bonds could be used as a cash equivalent. And rebalancing in this scenario implies selling off stock to purchase bonds.
Could a 100% stock investor come out ahead by reallocating 0.5% of the account into bonds for every year post crash, with a cap of 4%?
Then when the bear market hits, withdraw bonds into cash at a rate of 0.5% per month.
That's $5,000 per million into bonds on every good year. $5,000 per month taken from bonds instead of the whole portfolio, in a bad year.
I think this is a fairly clean play, a way to stay invested and maintain a bear market fund that actually shoots up in value when the time arives.
Could a 100% stock investor come out ahead by reallocating 0.5% of the account into bonds for every year post crash, with a cap of 4%?
Then when the bear market hits, withdraw bonds into cash at a rate of 0.5% per month.
That's $5,000 per million into bonds on every good year. $5,000 per month taken from bonds instead of the whole portfolio, in a bad year.
I think this is a fairly clean play, a way to stay invested and maintain a bear market fund that actually shoots up in value when the time arives.
- Wed May 26, 2021 2:47 pm
- Forum: Investing - Theory, News & General
- Topic: Fidelity Zero Funds in Taxable
- Replies: 5
- Views: 1332
Fidelity Zero Funds in Taxable
Is this going to cost a lot more than a 0.03% to 0.06% ER fund in a taxable account? I'm not good with the math on tax inefficient funds which I hear the Zeros are.
- Wed May 26, 2021 8:36 am
- Forum: Investing - Theory, News & General
- Topic: Schwab international mutual fund?
- Replies: 7
- Views: 1306
Schwab international mutual fund?
I find Schwab's fund selector hard to use. My target equity allocation is 75% US 25% international, but I can not seem to find an international mutual fund at Schwab. do they have one? International developed is also good.
- Wed May 26, 2021 6:38 am
- Forum: Investing - Theory, News & General
- Topic: Early withdrawals to avoid withdrawing during bear markets?
- Replies: 22
- Views: 2857
Early withdrawals to avoid withdrawing during bear markets?
if one aims to withdraw 40k/year, does it make sense to withdraw an extra 4k/year for every non-bear market year (positive return) so that one can skip withdrawing during a downturn?
This way if the bear market occurs at year 11, one has 40k extra to pull from.
If the bear market occurs at year 6, 20k savings, and then 20k must be taken from the portfolio.
The cost is opportunity cost. That extra 4k per year is not invested and thus not generating returns. It's just sitting there as a pre-emptive bear market gap filler fund.
This way if the bear market occurs at year 11, one has 40k extra to pull from.
If the bear market occurs at year 6, 20k savings, and then 20k must be taken from the portfolio.
The cost is opportunity cost. That extra 4k per year is not invested and thus not generating returns. It's just sitting there as a pre-emptive bear market gap filler fund.
- Sat May 22, 2021 5:25 pm
- Forum: Investing - Theory, News & General
- Topic: NASDAQ instead of SP500?
- Replies: 96
- Views: 13782
NASDAQ instead of SP500?
Anyone think this is a better play going forward? Tech has been the real driver of the economy since 2000 onwards.
- Fri May 21, 2021 3:52 pm
- Forum: Non-US Investing
- Topic: FEIE excluded income, tax minimization
- Replies: 3
- Views: 1808
Re: FEIE excluded income, tax minimization
There's nothing left over after the exclusion. In this case is my plan optimal?
- Fri May 21, 2021 9:40 am
- Forum: Non-US Investing
- Topic: FEIE excluded income, tax minimization
- Replies: 3
- Views: 1808
FEIE excluded income, tax minimization
IRAs can not accept FEIE excluded income as contributions.
401ks treat withdrawals as earnings for tax calcs, but they can not be excluded by the FEIE.
Therefore I think my best option as an FEIE eligible US citizen expat, is to simply invest in a brokerage account. The FEIE will exclude all of my income, and most in future years. When I start distributing earnings as cap gains, the first 40k is tax free and the next 10k is taxed at 15%. So withdrawing my target of 50k/yr at age 45, I'd pay 1,500 in tax.
Is that the best I can do or are there other options I have not considered?
401ks treat withdrawals as earnings for tax calcs, but they can not be excluded by the FEIE.
Therefore I think my best option as an FEIE eligible US citizen expat, is to simply invest in a brokerage account. The FEIE will exclude all of my income, and most in future years. When I start distributing earnings as cap gains, the first 40k is tax free and the next 10k is taxed at 15%. So withdrawing my target of 50k/yr at age 45, I'd pay 1,500 in tax.
Is that the best I can do or are there other options I have not considered?
- Fri May 21, 2021 2:25 am
- Forum: Investing - Theory, News & General
- Topic: How fast have the cap gains tax brakets moved over time?
- Replies: 9
- Views: 1521
Re: How fast have the cap gains tax brakets moved over time?
Wow, how bizarre. i'm glad you mentioned this! Earned income is excludable under the FEIE which means this greatly helps me avoid taxes, since I'm an expat
- Thu May 20, 2021 11:41 am
- Forum: Investing - Theory, News & General
- Topic: How fast have the cap gains tax brakets moved over time?
- Replies: 9
- Views: 1521
How fast have the cap gains tax brakets moved over time?
Nowadays you pay 0% up to 40k. I will retire in about 10 years and expect to make 50k per year, a hefty sum in Thailand (I'm a US expat). If the cap gains tax brackets have regularly moved up i may totally be covered by the 0% bracket in 10 years.
With would mean a Traditional Solo 401k favors me over a Roth Solo 401k. I'm contemplating it now.
Anyone have data on cap gains tax bracket changes over the years?
With would mean a Traditional Solo 401k favors me over a Roth Solo 401k. I'm contemplating it now.
Anyone have data on cap gains tax bracket changes over the years?
- Thu May 20, 2021 10:39 am
- Forum: Personal Finance (Not Investing)
- Topic: Techniques to keep one's account balance out of mind?
- Replies: 53
- Views: 5625
Re: Techniques to keep one's account balance out of mind?
It's moreso trying to preserve peace of mind! In my prior experience I tended to get married to a high number. then when that number drops the stress of "losing" 20-40% can weigh on me. Not so when you never see a high number to attach yourself to!
- Thu May 20, 2021 7:28 am
- Forum: Personal Finance (Not Investing)
- Topic: Techniques to keep one's account balance out of mind?
- Replies: 53
- Views: 5625
Re: Techniques to keep one's account balance out of mind?
Has anyone gone the extra step of having someone handle rebalancing on your behalf? Ideally I don't even look at my balance on a yearly basis. Hard to feel the sting of a 40% drawdown when you haven't seen your account in years!
- Wed May 19, 2021 5:52 am
- Forum: Personal Finance (Not Investing)
- Topic: Techniques to keep one's account balance out of mind?
- Replies: 53
- Views: 5625
Techniques to keep one's account balance out of mind?
Have you guys used any techniques to block out your knowledge of your account balance? I used to do that as a poker player and it really helps during drawdown phases as you never get married to a high number. Any tips are welcome; I'm with Schwab and invest in their mutual funds. I have a Solo Roth 401k at Etrade as well.
- Mon May 17, 2021 12:51 am
- Forum: Investing - Theory, News & General
- Topic: Marginal improvement in drawdown for every 5% in bond allocation
- Replies: 6
- Views: 1223
- Sat May 15, 2021 11:45 am
- Forum: Investing - Theory, News & General
- Topic: Marginal improvement in drawdown for every 5% in bond allocation
- Replies: 6
- Views: 1223
Marginal improvement in drawdown for every 5% in bond allocation
I've heard that a small amount of bonds goes a long way to help reduce drawdown during bear markets, on stock heavy portfolios. Have any blogs run the numbers on what recent drawdowns would have looked like at their lows for a 100/0 portfolio, vs 95/5, 90/10, 85/15, 80/20 ?