Search found 27 matches

by spocksynder
Tue Dec 09, 2014 2:30 pm
Forum: US Chapters
Topic: Master Thread for Baltimore/Southern PA Bogleheads
Replies: 65
Views: 34088

Re: Any interest in a Baltimore Chapter?

I live in Ellicott City, MD, and would be interested in the Baltimore chapter.
by spocksynder
Thu Jul 31, 2014 10:03 pm
Forum: US Chapters
Topic: How old are you?
Replies: 82
Views: 14479

Re: How old are you?

DVMResident wrote:32 years and 2 weeks.

Like Jasc15, I thought I was young compared to the rest of the forum. Interesting to see a peak of late-20's to early-30 year olds.
Maybe this is the age people start making "real" money and feel the need understand finance.
32 here, and I am a DMV resident too. So, there's at least a few of our age band here dealing with the same learning curve issues. :happy
by spocksynder
Mon Jul 28, 2014 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Difference between leasing a car and renting a home
Replies: 7
Views: 1427

Difference between leasing a car and renting a home

My research on renting versus buying a home suggests that the decision to go with either is a wash from a financial perspective. So, the decision on whether to rent or to buy a home is mostly likely to be a personal one - whether one would like to put down roots in a place, or retain the flexibility of moving to a new place at short notice.

But most of my research on whether to buy a car or to lease a car suggests that buying a car makes much more financial sense. Most articles treat leasing as a financial drain. Shouldn't it also be treated on par with renting a home in personal finance literature?
by spocksynder
Wed Nov 27, 2013 12:25 pm
Forum: Investing - Theory, News & General
Topic: What are the consequences of Fed's tapering?
Replies: 18
Views: 2714

What are the consequences of Fed's tapering?

I have searched around but I am yet to find any information about what are the consequences of the Fed tapering it's bond buying program. I am not trying to start a speculation about the future with this post, instead I would like to know: 1. Why are bonds affected by the news of Fed's tapering program? 2. Will the money that has been entered into the system since the start of the bond buying program need to be removed from the system? Does this mean that the Fed will start selling the Govt. bonds it has in its balance sheet now, presumably sucking up the money it has pumped into the system so far? And, who in the system can plausibly come up with the huge amounts of money required to buy these bonds? 3. How is the tapering connected to inf...
by spocksynder
Fri Nov 08, 2013 9:26 am
Forum: Personal Investments
Topic: Investing in Bonds
Replies: 39
Views: 3077

Re: Investing in Bonds

I have an IRA worth about 1.2 million with Schwab. Slightly off-topic, but I wonder how is possible to accumulate such a sum in an IRA if the annual contribution limits are just $5500 at present, and must have been lower in the previous years? I rolled over a 403b (like a 401k but usually for educators) from a former employer and an individual IRA I had been accumulating. The 403b I was in involved my contribution of 5% of my salary and the employer, a University, put in 10%. I started at about 11K total salary a year. I now have socked away another $485 in three other tax deferred accounts with my current employer. Still a portion of my salary is matched, more like 1 to 1 with this university, but the rest come out of my salary. I'm defer...
by spocksynder
Thu Nov 07, 2013 8:33 pm
Forum: Personal Investments
Topic: Investing in Bonds
Replies: 39
Views: 3077

Re: Investing in Bonds

john94549 wrote:Spocksnyder, at our firm, we had employee contribution, employer match, and profit-sharing, all pouring into a 401K. Some years, it seemed like one-third of my total compensation package was going into the 401K. It was a bit hard to understand, but I was assured it was all above-board.

After growing and compounding for a number of years, and rolling into an IRA, the amount does not shock me.
Thanks, that clarifies it for me. Direct contributions are not the only way to get money into an IRA.
by spocksynder
Thu Nov 07, 2013 8:17 pm
Forum: Personal Investments
Topic: Investing in Bonds
Replies: 39
Views: 3077

Re: Investing in Bonds

Don46 wrote:I have an IRA worth about 1.2 million with Schwab.
Slightly off-topic, but I wonder how is possible to accumulate such a sum in an IRA if the annual contribution limits are just $5500 at present, and must have been lower in the previous years?
by spocksynder
Thu Apr 11, 2013 1:05 pm
Forum: Personal Consumer Issues
Topic: Moving to Baltimore, advice on finding a place to rent?
Replies: 18
Views: 3030

Re: Moving to Baltimore, advice on finding a place to rent?

I live in Catonsville - just outside the Beltway, and its almost Howard County. Low crime, nice people all around, downtown Ellicott City is close by, and Inner Harbour is a 15 min drive away. Almost all places in Howard County(Columbia, Elkridge, Ellicott City especially) are great places to live, and not too far from Baltimore to commute to.
by spocksynder
Wed Mar 13, 2013 3:42 pm
Forum: US Chapters
Topic: DC Chapter Bogleheads meeting?
Replies: 3
Views: 1905

DC Chapter Bogleheads meeting?

Hello DC Bogleheads,
Is there a meeting for DC area Bogleheads on March 17? Could someone provide me information on meeting location and time? I found an older thread about the meetings, but I am not sure if the information in it is current.
by spocksynder
Thu Feb 21, 2013 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Where were you financially in your late twenties?
Replies: 191
Views: 20866

Re: Where were you financially in your late twenties?

VictoriaF wrote: Off-off topic: In another thread you mentioned Goa. I'd like to hear more about it, if you have a few minutes after the meeting.
Victoria
Sure, I'd be delighted to.
by spocksynder
Wed Feb 20, 2013 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Where were you financially in your late twenties?
Replies: 191
Views: 20866

Re: Where were you financially in your late twenties?

Just turned 31. It took a while to save up enough money to complete grad school without any loans. So, my entire twenties were spent garnering skill sets.

At present, my net worth is somewhere in mid five figures, but growing up in a tight financial family situation had distilled frugal lifestyle long before I came across this forum. I am happy and confident about my future though, and hopefully will join the two comma club well before retirement. Much of the confidence stems from reading encouraging posts from people who were in a similar boat as mine and have done really well for themselves since.

Off topic maybe, but I am looking forward to meeting some of the folks here during the Bogleheads' meeting in DC in March.
by spocksynder
Sun Feb 17, 2013 2:20 pm
Forum: Personal Investments
Topic: Utility of Money Market Funds
Replies: 10
Views: 1358

Re: Utility of Money Market Funds

dbr, SSSS, tfb, FrugalInvestor and nisiprius,
Thank you for the replies. They helped clarify the use of Money Market funds for me.
by spocksynder
Sun Feb 17, 2013 11:06 am
Forum: Personal Investments
Topic: Utility of Money Market Funds
Replies: 10
Views: 1358

Utility of Money Market Funds

Hello,
What is the utility of Money Market Funds? They seem to maintain a stable value of $1 for every $1 invested, and could also potentially lose the value. But even the lowliest of checking accounts seem to offer somewhat better yield than than, and they also are backed by FDIC. Why then do people seek to put any money in a money market fund? I think I am missing something crucial about their reason for existence.
by spocksynder
Sun Feb 10, 2013 9:32 pm
Forum: Personal Investments
Topic: Help - Recharacterize excess contribution to traditional IRA
Replies: 6
Views: 2420

Re: Help - Recharacterize excess contribution to traditional

What you should really avoid here is a corrective distribution of the non deductible portion as the earnings will increase your MAGI and further reduce your deduction in a vicious circle. For that reason full or partial recharacterization is best, and a partial recharacterization is the same amount of work as a full recharacterization. Your tax return should include the explanatory statement regarding your contribution and recharacterization, since the IRS will not know what you did till Jan, 2014 otherwise and could contact you. Thank you for this really important note - I had completely missed the part about it increasing my MAGI again. I think I will recharacterize the non-deductible 2150 portion of the contribution as Roth IRA. Again, ...
by spocksynder
Sun Feb 10, 2013 7:18 pm
Forum: Personal Investments
Topic: Help - Recharacterize excess contribution to traditional IRA
Replies: 6
Views: 2420

Re: Help - Recharacterize excess contribution to traditional

kaneohe wrote:Contact the broker or financial institution and have them recharacterize the whole contribution.
Thank you for the reply.

There's been a little gain in the time since the contribution to the traditional IRA - will that be a problem?
by spocksynder
Sun Feb 10, 2013 6:13 pm
Forum: Personal Investments
Topic: Help - Recharacterize excess contribution to traditional IRA
Replies: 6
Views: 2420

Help - Recharacterize excess contribution to traditional IRA

Hello, This is the first year I started making contributions to a traditional IRA. On Jan. 15, 2013, I made a $5000 contribution to traditional IRA, assuming that my MAGI would be under the income limits. But when I completed my taxes in TaxAct, I realized that I was only eligible to make $2850 in contributions to traditional IRA that could be made deductible(I participate in a retirement program). I now have an excess contribution of $2150 to the traditional IRA. TaxAct tells me that I don't owe penalty for the excess contribution since it is under the limit. I don't want to make a non-deductible IRA contribution at this time. I'd rather have it changed to a RothIRA. What are my options in this scenario: I don't care about the deductible p...
by spocksynder
Tue Feb 05, 2013 7:15 pm
Forum: US Chapters
Topic: What's the ratio of retired/not retired on this forum?
Replies: 41
Views: 7079

Re: What's the ratio of retired/not retired on this forum?

31 here, and just started to scratch the surface with my retirement planning. Long march till I hit my numbers.
by spocksynder
Tue Jan 22, 2013 12:38 pm
Forum: Personal Investments
Topic: 401(k)'s higher contribution limits - what's the catch?
Replies: 3
Views: 1112

Re: 401(k)'s higher contribution limits - what's the catch?

spocksynder wrote:Is there a downside to 401(k)s that makes it palatable that the contribution limits for small business employees are lower than those who are offered the 401(k) plans?
No, some people are luckier than others. Even within the class of those with 401(k), some have expensive plans with actively-managed funds, others have low-cost institutional index funds.

Life isn't always fair.


Brian
Thanks for the reply. Yes, I guess that last statement of yours just about sums it up. I shouldn't be complaining about something I didn't already have anyway, so I will try and do best with whatever tax advantaged limits I possess currently.
by spocksynder
Mon Jan 21, 2013 2:42 pm
Forum: Personal Investments
Topic: 401(k)'s higher contribution limits - what's the catch?
Replies: 3
Views: 1112

401(k)'s higher contribution limits - what's the catch?

401(k) allows upto $17500/year to be tax deferred. But for people whose employers do not offer a 401(k), and instead some other form of retirement plan(which the employee cannot contribute to), they really miss out on the higher contribution limits.

Is there a downside to 401(k)s that makes it palatable that the contribution limits for small business employees are lower than those who are offered the 401(k) plans?
by spocksynder
Thu Jan 17, 2013 9:44 am
Forum: Personal Investments
Topic: Advice needed to reduce tax - PS, but no 401(k) at work
Replies: 12
Views: 911

Re: Advice needed to reduce tax - PS, but no 401(k) at work

dbr wrote:
Mill wrote:Have you considered tax-exempt muni bonds (VWITX) or I-bonds?
Good ideas for helping with investment income.

I think the issue with the OP is reducing tax cost on salary income from a job. The big deal with a 401K is to not pay taxes now on the principal diverted into the 401K. However, one would have to investigate what might happen if a resident alien or person on some work permit has a 401K and permanently leaves the US.
Speaking about my situation alone, I'd be comfortable with leaving the money in the 401(k) until I need it, even if I were to leave the US to return to my home country, and only use it when I reach retirement age.

Does VWITX help reduce taxable income?
by spocksynder
Thu Jan 17, 2013 9:02 am
Forum: Personal Investments
Topic: Advice needed to reduce tax - PS, but no 401(k) at work
Replies: 12
Views: 911

Re: Advice needed to reduce tax - PS, but no 401(k) at work

I am assuming you are single, don't own a home, have high income, and may be returning to a foreign country someday??. There is not a lot you can do, but maybe something. You can save money in a tax efficient way using low-cost index mutual funds ( available at Vanguard and Fidelity, eg.), municipal bonds or tax-managed funds, and perhaps Flex accounts at work for known upcoming medical/dental/optical out-of-pocket costs. Unless you plan to live in the same place for a long time, buying a home may not be to your advantage although mortgage interest payments might make your itemized deductions greater than the standard deduction when added to state income tax, and charitable contributions. Don't make taxes your only criteria for buying a ho...
by spocksynder
Thu Jan 17, 2013 8:13 am
Forum: Personal Investments
Topic: Advice needed to reduce tax - PS, but no 401(k) at work
Replies: 12
Views: 911

Re: Advice needed to reduce tax - PS, but no 401(k) at work

Grt2bOutdoors wrote:
spocksynder wrote:I am trying to reduce the amount of tax I pay. My employer offers only a profit sharing plan, and I am not allowed to contribute to the plan. I already max out my IRA limits(and my spouse included). 401(k) limits seem to be much more higher than what goes into my profit sharing plan currently.

Is there anyway in which I can defer my income to reduce taxes without the cooperation of my employer? A self directed 401(k) for instance? Is that even possible?
Do you have a side-business or act in contractor capacity with this business?
No, I don't. I work as a full time employee, and I am also not permitted by visa restrictions to work on any side business..
by spocksynder
Thu Jan 17, 2013 6:04 am
Forum: Personal Investments
Topic: Advice needed to reduce tax - PS, but no 401(k) at work
Replies: 12
Views: 911

Advice needed to reduce tax - PS, but no 401(k) at work

I am trying to reduce the amount of tax I pay. My employer offers only a profit sharing plan, and I am not allowed to contribute to the plan. I already max out my IRA limits(and my spouse included). 401(k) limits seem to be much more higher than what goes into my profit sharing plan currently.

Is there anyway in which I can defer my income to reduce taxes without the cooperation of my employer? A self directed 401(k) for instance? Is that even possible?
by spocksynder
Sun Dec 30, 2012 8:04 pm
Forum: Personal Consumer Issues
Topic: Early retirement overseas?
Replies: 116
Views: 14046

Re: Early retirement overseas?

Consider India. Goa is a small ex-Portuguese colony on the western coast of India. Its very beautiful, and has a sizeable expat population. The place does have a reputation for hippies, but its overblown in my opinion. I think a decent American pension would buy a very good lifestyle there.
by spocksynder
Fri Dec 28, 2012 1:30 pm
Forum: Personal Investments
Topic: First time poster - newbie question about bond funds
Replies: 4
Views: 693

Re: First time poster - newbie question about bond funds

Thank you for the answers. Its very obvious to me that I need to do more research.

Also, I missed out on reading the newbie guide on the format of questions to post to the forum. I will do better next time.
by spocksynder
Fri Dec 28, 2012 6:43 am
Forum: Personal Investments
Topic: First time poster - newbie question about bond funds
Replies: 4
Views: 693

First time poster - newbie question about bond funds

Hello, I just turned 31. I intend to max out my retirement contribution this year. This is also the first year that I am contributing towards my retirement savings. I am not sure about how to split up the max allowable IRA contributions($11k, married filing jointly) between Roth IRA, and traditional IRA. I am leaning on putting the entire amount into a traditional IRA, but given that the wiki recommends adding bonds to a tax deferred account ( http://www.bogleheads.org/wiki/Principles_of_Tax-Efficient_Fund_Placement ), I am worried that I will lose out on tax efficiency by using this money for stock investing instead of bond investments. Would you recommend saving in a traditional IRA(to save on tax immediately) or in a Roth IRA? To clarify...