Search found 32 matches

by curi0usAndCuri0user
Thu Jan 28, 2021 10:27 pm
Forum: Investing - Theory, News & General
Topic: [GameStop GME trading mega-thread]
Replies: 5086
Views: 400848

Re: [GameStop GME trading mega-thread]

brad.clarkston wrote: Thu Jan 28, 2021 9:55 pm
curi0usAndCuri0user wrote: Thu Jan 28, 2021 9:33 pm
elderwise wrote: Thu Jan 28, 2021 9:23 pm

Second I do not see citadel paying 5k a share most likely either gme is taken private or a $500 per share is usually by the US Treasury valhalla lol.. flat 500 sounds better than infinite
GME already hit $513 after hours on Wednesday
Sure but that was last night. Tonight at the moment it's setting at $193.60 and has been parked there for a few hours. https://www.nasdaq.com/market-activity/stocks/gme.

It might open as high as $260 on the open but I'm not sure of that. Unless I'm missing something?
It's at $311 now after hours
by curi0usAndCuri0user
Thu Jan 28, 2021 9:33 pm
Forum: Investing - Theory, News & General
Topic: [GameStop GME trading mega-thread]
Replies: 5086
Views: 400848

Re: [GameStop GME trading mega-thread]

elderwise wrote: Thu Jan 28, 2021 9:23 pm

Second I do not see citadel paying 5k a share most likely either gme is taken private or a $500 per share is usually by the US Treasury valhalla lol.. flat 500 sounds better than infinite
GME already hit $513 after hours on Wednesday
by curi0usAndCuri0user
Sun Aug 30, 2020 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Which Mortgage Financing Option To Go With?
Replies: 5
Views: 527

Re: Which Mortgage Financing Option To Go With?

Unknown... could be 7-10 or it could be longer, but most likely we'll rent it out if we move.
by curi0usAndCuri0user
Sun Aug 30, 2020 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Which Mortgage Financing Option To Go With?
Replies: 5
Views: 527

Which Mortgage Financing Option To Go With?

Options:

30 Year Fixed @ 2.75%
10/1 ARM @ 2.375%
7/1 ARM @ 2.25%


30 year @ 2.75% seems like a pretty safe bet... but I don't see any incentive to raise interest rates either given our national debt is only increasing and the cost to service that debt would go up by raising interest rates. Anyone that's holding office and allows interest rates to rise would probably not be elected for a second term as that would likely cause asset prices to tank as well (stocks, real estate, etc.)
by curi0usAndCuri0user
Sun Aug 30, 2020 5:15 pm
Forum: Investing - Theory, News & General
Topic: What Would Cause Interest Rates to Rise?
Replies: 3
Views: 723

What Would Cause Interest Rates to Rise?

Given our national debt is only increasing and the cost to service that debt would go up by raising interest rates, what incentive is there to raise interest rates? Anyone that's holding office would probably not be elected for a second term as that would cause asset prices to tank as well (stocks, real estate, etc.)

The long term trend here has shown that interest rates have only gone down after peaking in 1981:

https://fred.stlouisfed.org/graph/?g=NUh
by curi0usAndCuri0user
Sun Jan 05, 2020 1:18 pm
Forum: Personal Consumer Issues
Topic: Good car for toddler and newborn
Replies: 41
Views: 2996

Re: Good car for toddler and newborn

A used Tesla Model S—safe and spacious if you can swing electric charging.
by curi0usAndCuri0user
Fri Jan 03, 2020 7:35 am
Forum: Investing - Theory, News & General
Topic: Apple stock
Replies: 37
Views: 4271

Re: Apple stock

A year later... shows what anybody really knows
by curi0usAndCuri0user
Fri Dec 20, 2019 8:13 pm
Forum: Investing - Theory, News & General
Topic: Accidentally Signed 401K to Roth IRA Check
Replies: 2
Views: 397

Accidentally Signed 401K to Roth IRA Check

I'm rolling over after-tax 401K funds to my Vanguard Roth IRA (mega backdoor). I wasn't thinking and accidentally printed and signed my name on the back...

Will Vanguard still accept it? Technically the check is made payable to Vanguard, FBO my name and account #
by curi0usAndCuri0user
Mon Aug 05, 2019 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Scenario on Gains / Losses
Replies: 15
Views: 1568

Re: Mega Backdoor Scenario on Gains / Losses

I spoke with multiple representatives and used some of the language in these replies to confirm my plan provider does not carry over basis (i.e., they do not offset gains with losses). I should also mention that:

(1) There isn't an option to set a different asset allocation than my standard employee deductible 401K contributions (even though deductible and after-tax contributions are maintained separately). I set those to be 100% stock market index, thus my after-tax contributions follow

2) I am limited to at most 4 MBR conversions / year (no chance to minimize losses/gains by executing conversions immediately)
by curi0usAndCuri0user
Thu Jul 25, 2019 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating QBI for Independent Contractor
Replies: 1
Views: 329

Calculating QBI for Independent Contractor

My wife is an independent contractor, operating as a sole prop providing services to a recruiting company. Her comp is tied to her making placements on behalf of the recruiting company (ie employers using the recruiting company must both make an offer to job applicants referred by the recruiting company and those applicants must accept the offer for wife to make commission). From what I understand, this would not classify her sole prop as an SSTB.

Which leads to QBI...

If I’m a W-2 and we file jointly, what range does QBI deduction start to phase out? Is our combined income considered or only her sole prop’s business income?
by curi0usAndCuri0user
Fri Jul 19, 2019 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Scenario on Gains / Losses
Replies: 15
Views: 1568

Mega Backdoor Scenario on Gains / Losses

Suppose I contribute $10k in 2019 to an after-tax 401(K), intending to do a mega backdoor. Normally, I'd do the rollover into the Roth IRA and pay any taxes on the gains. But what if the market dives (let's say the $10k becomes $5k)? My 401(K) provider said they won't carry forward any losses to offset future gains. In that case: 1) Does it make sense to wait on the conversion, say until 2020 (or whenever) until the combination of the original contribution + subsequent contributions have enough gains to put me back at $0 profit / loss? 2) Is there a limit on the amount of post-tax 401(K) contributions that can be rolled over in a given year? I know max 401(K) contributions (pre-tax + employer + post-tax) for 2019 are 56k, but wasn't sure if...
by curi0usAndCuri0user
Fri Jul 19, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: 401(K) + Solo 401(K) + Mega Backdoor
Replies: 3
Views: 553

Re: 401(K) + Solo 401(K) + Mega Backdoor

Thank you! Very clear and valuable answers, exactly what I was looking for!
by curi0usAndCuri0user
Thu Jul 18, 2019 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: 401(K) + Solo 401(K) + Mega Backdoor
Replies: 3
Views: 553

401(K) + Solo 401(K) + Mega Backdoor

Scenario: Spouse 1: W-2, maxes out 401(K) + employer match. Does IRA --> Backdoor Roth annually. May make after-tax 401(K) contributions as well for purposes of mega backdoor (employer supports this). Spouse 2: Formerly W-2, recently turned 1099 Sole Prop. No 401(K) but does IRA --> Backdoor Roth annually. Thinking of opening Solo 401(K). Questions: 1) Does it make sense for Spouse 2 to bring Spouse 1 in on the Sole Prop as a QJV (Spouse 1 already puts in material hours)? Idea is to have Spouse 1 also contribute to Solo 401(K) and effectively double Spouse 2's tax-deferred amount. 2) Can QJV Sole Prop continue operating under only Spouse 2's name? Or does it need to be updated to operate under both Spouse's names (e.g., currently Sole Prop ...
by curi0usAndCuri0user
Wed Jun 12, 2019 1:01 am
Forum: Investing - Theory, News & General
Topic: Fed Impact on Market
Replies: 2
Views: 499

Fed Impact on Market

It seems to me that the Fed is unwilling to let the market go anywhere but up. At any slight hint of a downturn (e.g., Mexico tariffs the other week), there is a willingness to lower rates to keep the market going up.

My question is, what incentive does the Fed really have to raise rates? The only one I can think of is that if the market is doing well, the Fed may raise rates slowly so they can replenish their ammo if you will for the next hint of a downturn.

And if the Fed is essentially insuring the stock market (seems like that's been the case since the 2008 crash), is the best strategy to go all-in on the market as well?
by curi0usAndCuri0user
Mon Feb 18, 2019 2:55 pm
Forum: Personal Consumer Issues
Topic: Thoughts on Getting a Tesla Model 3 Performance?
Replies: 10
Views: 1278

Re: Thoughts on Getting a Tesla Model 3 Performance?

Thanks! Most likely we will end up taking your advice if we do end up getting a Tesla (insurance should be cheaper too on a non-performance version).

What're your thoughts on the 3 vs the S? Reason being, one alternative is to spend some more $$ and get a used model S like this: https://www.tesla.com/used/5YJSA1E48HF181305

Given the extra space of the S, higher performance, full self-driving and free supercharging, is it worth it?
by curi0usAndCuri0user
Mon Feb 18, 2019 2:42 pm
Forum: Personal Consumer Issues
Topic: Thoughts on Getting a Tesla Model 3 Performance?
Replies: 10
Views: 1278

Thoughts on Getting a Tesla Model 3 Performance?

Looking to get your thoughts on getting a Model 3 Performance (P3) w/ Enhanced Autopilot ($68k, excluding taxes, federal rebates, etc.) We live in the Bay Area, California, DW (32) & I (30) had a combined income of $330k in 2018. Though that's likely to go down in the very near future as we look to have kids, so maybe more like $200k. Except for rent ($2600/mo), no major recurring expenses. We drive an old (but much loved) 2008 Prius, and pay about $350/6 months for insurance and maybe $100/month on gas on average. I have free electric charging at work if I need it. Total assets: $745k 401K: $200k Roth IRA: $85k Vanguard Brokerage: $300k Cash: $160k The reason for the cash stockpile is that we've been house hunting. But based on what we...
by curi0usAndCuri0user
Tue Dec 04, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4685172

Re: U.S. stocks in freefall

J G Bankerton wrote: Tue Dec 04, 2018 5:12 pm
Hiwatter wrote: Tue Dec 04, 2018 5:07 pm
WanderingDoc wrote: Tue Dec 04, 2018 4:57 pm
Hiwatter wrote: Tue Dec 04, 2018 4:33 pm Pushed all my dry powder in today on Fidelity Total Stock Market

Hope it goes up before I retire in 20 years.
Or you can put that money into something that produces income now, tomorrow, and in 20 years.
sorry, I must be missing the joke here.
No money down real estate; ask me how.
How?
by curi0usAndCuri0user
Wed Oct 25, 2017 1:05 am
Forum: Investing - Theory, News & General
Topic: Theoretical — Lump Sum Investing Your Lifetime Earnings
Replies: 11
Views: 1922

Theoretical — Lump Sum Investing Your Lifetime Earnings

I suspect most of us are relegated to investing earnings (if any) from paycheck to paycheck.

If you had the option to lump-sum invest all of your future earnings TODAY (i.e., only those earnings that you would have invested over the course of your lifetime, discounted for inflation over the lifetime of those earnings), would you do it?

Why or why not?
by curi0usAndCuri0user
Tue Sep 26, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area Real Estate
Replies: 154
Views: 22663

Re: Bay Area Real Estate

In terms of net worth, do you think your friends would have been ahead had they bought that $400k house in Campbell, vs investing in a total stock market index along the way and renting?
by curi0usAndCuri0user
Mon Sep 25, 2017 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area Real Estate
Replies: 154
Views: 22663

Re: Bay Area Real Estate

I currently live and work in Cupertino, and pay $2500 / month in rent for a 1 bedroom / 1 bathroom. From what I can tell, most people are banking on appreciation to continue. Given interest rates are relatively low compared to historical averages, and YoY appreciation here being > 5%, I can see why getting a 5x levered position w/ 20% down and 4% interest rate is so attractive (not to mention the further tax write-off on the interest portion of one's payment) Let's pretend I'll live here for a while (> 10 years) with a stable job. Is it then financially better to divert my savings for a 20% down payment and take advantage of this leveraged and tax-advantaged instrument, or is it better to continue indexing my savings (VTSAX)? Lastly, if you...
by curi0usAndCuri0user
Mon Sep 25, 2017 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area Real Estate
Replies: 154
Views: 22663

Bay Area Real Estate

Any recommendations on making it out here in this crazy market? I'm doing various buy vs. rent analyses and can't seem to make sense of buying (am I missing something obvious?) I understand salaries tend to be higher here, but how does a family come out ahead when similar homes in other areas of the country (e.g., the midwest) go for < 25% of the asking price out here? Not to mention the all cash offers that go an additional 10-20% above asking in parts of the Bay... If I was to come up with a down payment and have my offer accepted with financing, it looks like I'd run up some massive debt and the majority of my compensation would go into housing for the next 30 years? Doesn't seem very Boglehead-like to me given we tend to shy away from l...
by curi0usAndCuri0user
Sun Dec 21, 2014 10:16 pm
Forum: Investing - Theory, News & General
Topic: Do Companies Index Their Profits?
Replies: 15
Views: 1845

Do Companies Index Their Profits?

Do companies index their profits? You hear about companies like Apple hoarding loads of cash. Why don't they set up something like a 3-fund portfolio (e.g. total stock market index, bonds, etc.)? Do they believe they can invest that cash internally and generate a greater return with new products than something like a 3-fund portfolio?
by curi0usAndCuri0user
Tue May 07, 2013 8:05 am
Forum: Investing - Theory, News & General
Topic: Counting the Individual in Asset Allocation
Replies: 5
Views: 548

Counting the Individual in Asset Allocation

There's a lot of talk about asset allocation on here and about what bond funds, total market funds, REITS, etc. to invest in. How about we add another asset in there... namely the individual that's doing all of this asset allocation. I want to start a hypothetical thread in which we explore the rationale to invest in ourselves vs. the market and what a reasonable % would be from a Boglehead perspective. Investing in ourselves can include things like going to a university, learning new job skills, starting a business, etc. I want to raise this topic because there's only so much we have control over when it comes to the market--and that is when we buy and sell. The smartest or strongest person mean nothing to the market because it will do wha...
by curi0usAndCuri0user
Sun Feb 17, 2013 12:43 am
Forum: Personal Investments
Topic: Roth to Non-Deductible IRA to Backdoor Roth
Replies: 4
Views: 477

Re: Roth to Non-Deductible IRA to Backdoor Roth

Duckie wrote:
curi0usAndCuri0user wrote:Also, as I've never "converted" a non-deductible traditional IRA to a Roth (for step 2), is there some special process involved? I'll be doing all of this on Vanguard's end.
When you file your taxes next year you will need to fill out Form 8606 (Part I for the non-deductible contribution and Part II for the conversion).

Do you have any other non-Roth IRAs (Traditional IRA, SEP-IRA, SIMPLE-IRA, Rollover IRA)? Because the 
Backdoor Roth IRA
 method has a pro-rata rule and if you have other IRA assets the conversion could be mostly taxable.
Nope--I just have a Roth at the moment.
by curi0usAndCuri0user
Sat Feb 16, 2013 11:51 pm
Forum: Personal Investments
Topic: Roth to Non-Deductible IRA to Backdoor Roth
Replies: 4
Views: 477

Re: Roth to Non-Deductible IRA to Backdoor Roth

Link to information you are looking for http://www.bogleheads.org/wiki/IRA_recharacterization Thank you for this! So if I understand correctly, this should be my action plan: 1) Call up Vanguard and have my Roth IRA contribution for 2013 "recharacterized" to a non-deductible traditional IRA. Even with gains--there is no tax implication at this step. 2) Continue working with Vanguard to transfer (i.e. "convert") my non-deductible traditional IRA funds to my Roth IRA. The gains (i.e. anything above $5500) will be counted as income and be taxed. Is there anything I'm missing? Also, as I've never "converted" a non-deductible traditional IRA to a Roth (for step 2), is there some special process involved? I'll be do...
by curi0usAndCuri0user
Sat Feb 16, 2013 11:27 pm
Forum: Personal Investments
Topic: Roth to Non-Deductible IRA to Backdoor Roth
Replies: 4
Views: 477

Roth to Non-Deductible IRA to Backdoor Roth

I'm expecting to be over the income limit for a full $5500 Roth IRA deposit this year. Had I expected this in January and had I read up on the "Backdoor Roth" earlier, I would have followed that method then itself.

Now I'm a bit confused as to what to do going forward. I'm with Vanguard and want to know if it's possible to convert my $5500 Roth deposit into VTSAX (which has undoubtedly grown a bit since January) to a non-deductible traditional IRA and back to a Roth (i.e. roth to T IRA to roth).

How should I go about this and what are the tax implications? Are there any other questions/factors I should be considering?

Thanks in advance.
by curi0usAndCuri0user
Thu Aug 16, 2012 10:43 pm
Forum: Personal Investments
Topic: 401k vs Taxable Account Implications
Replies: 6
Views: 1060

Re: 401k vs Taxable Account Implications

What you said makes sense. I also thought about it for a bit and decided to come up with a simplified equation showing why maxing a 401k is mathematically always better than putting post-tax money into a taxable account. Assumptions: x = expected growth rate (e.g. 1.08) y = federal and state income tax rates combined (e.g. 0.37) z = long term capital gains rate (e.g. 0.15) Let's take a 30-year time frame to prevent any more variables. Then for every $1 being invested, we have: Post Tax Return After 30 years >= Pre-Tax Return After 30 years Post Tax Money = ($1)*(1-y), Post Capital Gains Multiplier = (1-z), Pre-Tax Money = $1 (($1)*(1-y))*(x^30)*(1-z) >= ($1)*(x^30)*(1-y) Assuming you won't have to pay 100% of your paycheck to taxes (1-y > 0...
by curi0usAndCuri0user
Thu Aug 16, 2012 10:09 pm
Forum: Personal Investments
Topic: 401k vs Taxable Account Implications
Replies: 6
Views: 1060

401k vs Taxable Account Implications

Hi, I live in California and for earnings between $46,766.00 and $1,000,000, the tax rate is 9.30% plus $2,059.00. I'm currently in the 28% federal tax bracket. I contribute 6% (up to my employer match) to my 401k in addition to my Roth IRA and taxable accounts. I'm looking at 2 scenarios: Scenario 1: Increase my 6% contribution to the 40% maximum in my 401k. This results in me dropping down from the 28% to the 25% federal tax bracket. California income taxes remain the same (the 9.30% scales taxes down but the +$2,059 takes a greater % of the paycheck). Any future withdrawals from the 401k will be taxed at the regular income tax rates. Scenario 2: Keep my 6% contribution. Stay in the 28% federal tax bracket. There is no change to the Calif...
by curi0usAndCuri0user
Wed Aug 15, 2012 5:09 pm
Forum: Personal Investments
Topic: Introduction and Questions
Replies: 11
Views: 2488

Re: Introduction and Questions

1) To bottlecap: I know what you mean... and you're probably right--I usually try to read as much as I can in a short amount of time so it probably amounts to a cursory review in the end. Having said that, I will go read all of the books you mentioned. Thanks for the list. 2) Jerilynn: I favor 100% stocks myself, however I guess that doesn't fit with the Boglehead philosphy from everything I've read. Just to err on the side of caution and make sure I'm not "missing out" on any potential, I'm putting 20% of my Boglehead portfolio into a U.S. bond index for now (FBIDX) with future contributions going to U.S. stock and international indexes (the bond % will decrease with time for the immediate future). This is more for an insurance p...
by curi0usAndCuri0user
Wed Aug 15, 2012 11:22 am
Forum: Personal Investments
Topic: Introduction and Questions
Replies: 11
Views: 2488

Re: Introduction and Questions

Thank you for the responses all. 1) To xerty24: Would 10% in long term treasuries be better than 10% in a U.S. Bond Index Fund? If so, why? Also, I agree about the traditional IRA however I am unfortunately over the income limit and had to convert a while ago to Roth. Yes the house is indefinite--I live in the bay area and renting is a financially better choice than owning at the moment (but living at home is still the best option given the sky high rents here). I would probably only buy a house if real estate came down or if I moved out of the state to somewhere more reasonable/affordable. Having said that, I think what you say makes sense about just investing the money and pulling out later down the line. 2) To Johm221122 Great quick resp...
by curi0usAndCuri0user
Tue Aug 14, 2012 10:22 pm
Forum: Personal Investments
Topic: Introduction and Questions
Replies: 11
Views: 2488

Re: Introduction and Questions

Sorry that was a typo, now fixed to FSTMX.
by curi0usAndCuri0user
Tue Aug 14, 2012 9:33 pm
Forum: Personal Investments
Topic: Introduction and Questions
Replies: 11
Views: 2488

Introduction and Questions

Hi everyone, Please excuse my long post. I've just joined this site after skimming the Bogleheads' Guide to Investing and reading through the Wiki extensively. My investing/trading history thus far has always been to dabble in a few stocks with a set amount of money and invest everything else into SPY or the corresponding mutual fund in my retirement accounts. Having said that, I know my individual chances of trading to outperform the market are slim and its not the first time I've heard it (I've read The Intelligent Investor as well--hence the reason I've put everything else into SPY thus far). After reading the book, I cashed out all of my SPY shares and bought total US stock market indexes instead. I'm curious as to what you think a wise...