Search found 31 matches

by HEPennyPacker
Sun Nov 22, 2020 1:50 pm
Forum: Personal Investments
Topic: Thoughts on VGT [Vanguard Information Technology ETF]
Replies: 53
Views: 3631

Re: Thoughts on VGT [Vanguard Information Technology ETF]

You'll probably hear a lot of people here vote against "sector" additions to your portfolio for a bunch of reasons. One, sector timing is market timing (ironically, now when it's high, if you wanted to market time, better to do it when the tech sector is low, etc.). Two, by holding TSM ind...
by HEPennyPacker
Sat Nov 21, 2020 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Student Loans before buying a house? [Help prioritizing finances]
Replies: 29
Views: 996

Re: Student Loans vs. Retirement

I'm in a similar place albeit lower relative numbers and I would focus as much on debt as possible. I don't like the risk. So, I would personally fund up to the company match and start killing the debt. Try to work the numbers so you could be debt free in 2-4 years.....then with your income, at your...
by HEPennyPacker
Fri Nov 20, 2020 2:28 pm
Forum: Personal Investments
Topic: Help with portfolio investment plan for a couple in their early late 20s/early 30s
Replies: 30
Views: 2505

Re: Help with portfolio investment plan for a couple in their early late 20s/early 30s

Ahhhhhhh, I think I understand now. So, if I could somehow net everything out I would have nothing withheld, contribute that money to pre-tax 457, and then in February-ish, I would STILL receive a refund.....I don't think we get an EITC. And in the first example of your answer, it makes sense becaus...
by HEPennyPacker
Fri Nov 20, 2020 12:05 pm
Forum: Personal Investments
Topic: Help with portfolio investment plan for a couple in their early late 20s/early 30s
Replies: 30
Views: 2505

Re: Help with portfolio investment plan for a couple in their early late 20s/early 30s

I'm sorry for my ignorance but how do you USE your tax money? For example, I get paid gross $100K/year and I have a 25% tax rate. If I contribute $25K to my pre-tax 401/457 (if I could do that in one year) how do I USE the $ to put into Roth? The Feds don't get it, but I don't get it either, right?...
by HEPennyPacker
Fri Nov 20, 2020 11:45 am
Forum: Personal Investments
Topic: Help with portfolio investment plan for a couple in their early late 20s/early 30s
Replies: 30
Views: 2505

Re: Help with portfolio investment plan for a couple in their early late 20s/early 30s

I'm sorry for my ignorance but how do you USE your tax money? For example, I get paid gross $100K/year and I have a 25% tax rate. If I contribute $25K to my pre-tax 401/457 (if I could do that in one year) how do I USE the $ to put into Roth? The Feds don't get it, but I don't get it either, right? ...
by HEPennyPacker
Thu Nov 19, 2020 12:17 pm
Forum: Investing - Theory, News & General
Topic: Confused by Bogle's apparent dislike of ETFs
Replies: 103
Views: 8745

Re: Confused by Bogle's apparent dislike of ETFs

Just as an aside, reading through this post, I agree with the idea that we can debate the pros-cons of ETFs, Mr. Bogle's stance on them, etc. But to imply that he didn't understand them is hilarious. Reminds me of a common saying: "Mr. Bogle would have forgotten more about investing by lunchtim...
by HEPennyPacker
Mon Nov 16, 2020 12:51 pm
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

What is the interest rate on the debt? Is it secured or unsecured debt? Not knowing that at this point, and being smack in the middle of paying for two in college and three next year, I wish I had gone the Roth route rather than the 529 route. Thanks It ranges. I have some high interest credit card...
by HEPennyPacker
Mon Nov 16, 2020 12:47 pm
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

HEPennyPacker, If it is high-interest credit card debt, I would agree with you. If it is a student loan and/or car loan, it may not be worthwhile to pay 20+% of taxes. <<It may be more mathematically correct to earn 10-12% returns on an investment, save on the taxes since the contribution is pre-ta...
by HEPennyPacker
Mon Nov 16, 2020 12:24 pm
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

A) Why would you want to pay 20+% taxes (Federal + state) in order to save X% in debt interest? Please explain. HEPennyPacker, If you have a $1,000 loan at 3% and your taxes is 25% A) You could pay $250 in taxes and $1,000 to the loan and save 3% interest. This costs you $1,250. B) You could contri...
by HEPennyPacker
Mon Nov 16, 2020 11:35 am
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

A) Why would you want to pay 20+% taxes (Federal + state) in order to save X% in debt interest? Please explain. B) You could contribute to 457B and use the tax savings to pay off the debt. When would I see the "tax savings"? When I file? Doesn't the debt greatly increase risk. Between all...
by HEPennyPacker
Mon Nov 16, 2020 11:07 am
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

Taking the tax break is probably smart, but adding more money to the state plan may not be. I'd put any additional contributions into a low cost plan elsewhere. Math wise, a $5,000 investment that has to pay a 0.39% expense ratio works out to be 5,000 * .0039 = $19.50 per year. Regards, So, would i...
by HEPennyPacker
Mon Nov 16, 2020 8:40 am
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

I wouldn't worry about college until you establish an emergency fund, contribute to your 401k up to any company match, pay off any debts with interest rates 5% or more, max out your Roth. You got it. I am "looking ahead" but it helps keep me focused on WHY I want to pay off this debt quic...
by HEPennyPacker
Mon Nov 16, 2020 8:38 am
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

Taking the tax break is probably smart, but adding more money to the state plan may not be. I'd put any additional contributions into a low cost plan elsewhere. Math wise, a $5,000 investment that has to pay a 0.39% expense ratio works out to be 5,000 * .0039 = $19.50 per year. Regards, So, would i...
by HEPennyPacker
Sun Nov 15, 2020 5:09 pm
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

Re: College Investing Question

Okay, so living/working in Vermont can you help me with this: Is VT's 529 plan "worth it" or would it better to use Vanguard's age adjusted (another benefit is then everything would be within Vanguard). Here is what VT offers: https://www.vheip.org/benefits-tax-advantages/#vermont-state-in...
by HEPennyPacker
Sun Nov 15, 2020 4:38 pm
Forum: Personal Investments
Topic: College Investing Question
Replies: 21
Views: 1164

College Investing Question

So, I grew up poor and I didn't realize how bad debt is. But, anyway fast forward to my question: I've been blessed with two nice incomes for my wife and I combined (130K+ and growing) and am getting ready to clean out this debt. If we really bear down, I think we could be done in 2-3 years. However...
by HEPennyPacker
Sat Nov 14, 2020 5:47 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel Interview
Replies: 14
Views: 2105

Re: Burton Malkiel Interview

I'll find it. Thanks ­čĹŹ
by HEPennyPacker
Sat Nov 14, 2020 5:35 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel Interview
Replies: 14
Views: 2105

Burton Malkiel Interview

I listened to a Burton Malkiel (pioneer of indexing with Bogle) Interview (Animal Spirits podcast, episode a few weeks back) and he said something interesting re: the Bogle rule of age in bonds. He disagrees with that advice because bond yields are SO bad compared to the 70s/80s, etc. and instead ad...
by HEPennyPacker
Sat Jul 29, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Master's or Master's PLUS MBA Dual Degree
Replies: 14
Views: 1801

Re: Master's or Master's PLUS MBA Dual Degree

How's the school district pay set up. Do you get increases in pay with higher degrees like teachers? Would you get more money for a second Masters level degree? If you get more with degrees, maybe look into a Doctor's degree. I'm not on a "schedule" or "steps" or anything like t...
by HEPennyPacker
Sat Jul 29, 2017 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Master's or Master's PLUS MBA Dual Degree
Replies: 14
Views: 1801

Re: Master's or Master's PLUS MBA Dual Degree

Depending on where you are, I would not worry too much about the name of the institution. I would get the MBA now from any recognized and accredited school. Outside of top 20 or so schools MBA from one is not much different than other when it comes to hiring. You may have roots where you are and yo...
by HEPennyPacker
Sat Jul 29, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Master's or Master's PLUS MBA Dual Degree
Replies: 14
Views: 1801

Re: Master's or Master's PLUS MBA Dual Degree

What's your long-term career objective? Will having another degree listed on your resume make a large difference in your future employment? Also, getting an MBA now precludes you from ever getting another MBA at another school, and depending on your long-term career goals you may not want an MBA fr...
by HEPennyPacker
Fri Jul 28, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Master's or Master's PLUS MBA Dual Degree
Replies: 14
Views: 1801

Master's or Master's PLUS MBA Dual Degree

So, I'm in the homestretch of a M.S. in Technology Management (2 courses left), one this summer and one in the fall of '17 and I'm done. Now, when I originally signed up for this degree, there was a dual degree option whereby after completion of the M.S. in Technology Management, I could continue on...
by HEPennyPacker
Fri Jul 28, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Should I Quit my 6-figure job?
Replies: 84
Views: 12001

Re: Should I Quit my 6-figure job?

I'm almost in your exact position, even similar salary and benefits. I have two young kids and my wife works in the same town I do. I was feeling almost exactly like you do and started "looking around" last year. Next thing I knew, I had a job offer last winter making 15-20% more with a co...
by HEPennyPacker
Tue Jul 11, 2017 10:52 am
Forum: Personal Investments
Topic: 457(b) Pre-Tax vs 457(b) Roth
Replies: 1
Views: 516

457(b) Pre-Tax vs 457(b) Roth

Info: Married, filing jointly, two kids Gross Income: 125K +/- Rental property, which has helped lower our effective tax rate greatly (5% I believe for 2016) I just found out that through work in addition to our defined benefit, we also have access to a 457(b) plan either as pre-tax or a Roth option...
by HEPennyPacker
Fri Jul 07, 2017 2:52 pm
Forum: Personal Investments
Topic: Practical Question - Roth IRA
Replies: 16
Views: 1409

Re: Practical Question - Roth IRA

Great, that's what I would like. Thanks!
by HEPennyPacker
Fri Jul 07, 2017 2:40 pm
Forum: Personal Investments
Topic: Practical Question - Roth IRA
Replies: 16
Views: 1409

Re: Practical Question - Roth IRA

But my wife works. So, two separate logins?
by HEPennyPacker
Fri Jul 07, 2017 2:28 pm
Forum: Personal Investments
Topic: Practical Question - Roth IRA
Replies: 16
Views: 1409

Practical Question - Roth IRA

So, correct me if I'm wrong: As a married couple, filing jointly, we can contribute up to $11,000 per year in a Roth IRA. Now, how does that work logistically in Vanguard.com? Do I create one account for her, one account for me, with separate logins and auto-draft from each paycheck up that amount? ...
by HEPennyPacker
Tue Jan 21, 2014 11:25 am
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 15199

Re: Evaluate my finances. Young guy.

If I had those assets, I would have paid off the debt yesterday.
by HEPennyPacker
Tue Apr 02, 2013 7:10 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3080
Views: 1947773

Re: The Three Fund Portfolio

Taylor,

Do you still suggest age in bonds +/- even though we both have pensions for 60% of pay upon retirement? Would you count that as part of the "bond" part of our portfolio, which would allow us to go 100% equities in our Roth's?
by HEPennyPacker
Sun Mar 31, 2013 8:13 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3080
Views: 1947773

Re: The Three Fund Portfolio

Taylor,

Thank you for your insightful comments. I think you've swung me towards holding some bonds. Maybe not my age in bonds but definitely some. I just came across this article: http://www.kiplinger.com/article/invest ... folio.html. What do you think?
by HEPennyPacker
Sun Mar 31, 2013 7:31 pm
Forum: Personal Investments
Topic: School Loans, IRA, Vanguard, OH MY!
Replies: 35
Views: 2902

Re: School Loans, IRA, Vanguard, OH MY!

If it were me, and I'm in a similar boat although not as bad overall and a little older than you two, I would definitely throw the $50K into the debt and ALSO seriously consider cashing out the inherited IRA into it. Those two things should allow you to pay off your debt in half the time and if you ...
by HEPennyPacker
Sun Mar 31, 2013 12:09 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3080
Views: 1947773

Re: The Three Fund Portfolio

Taylor, Would you suggest NOT having a Total Bond Index for someone in their 20s/30's? We are paying debt down and are looking to invest in 2 or 3 years (maxing out Roths for each of us with the rest going into a normal taxable account). At that time we'll be 34-35 years old with defined benefit pen...