Search found 1100 matches

by ryman554
Tue Nov 13, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Severance | 401(k)
Replies: 20
Views: 1822

Re: Severance | 401(k)

Tell old company you over-contributed to 401(k) and request return of all (excess) contributions and earnings for 2019. You can try that. However, the old custodian doesn't have to cooperate. They look at their books and see no excess, and you can't provide any evidence of prior contributions. They...
by ryman554
Mon Nov 12, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Severance | 401(k)
Replies: 20
Views: 1822

Re: Severance | 401(k)

Can't you just do both? Max out 401(k) now. When you get a new job, max out 401(k) then (again) + match. Tell old company you over-contributed to 401(k) and request return of all (excess) contributions and earnings for 2019. No, you are only allowed $19K employee contributions across all plans, and...
by ryman554
Mon Nov 12, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Severance | 401(k)
Replies: 20
Views: 1822

Re: Severance | 401(k)

After discussing with HR, severance and 19' pro-rated bonus will not be eligible for 401(k) contributions. However, I have the option to contribute 100% of my pay check in early 2019 in order to max the 2019 401(k) limits (by February). Initially I liked this option but with more time I realized th...
by ryman554
Tue Nov 06, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: This man can predict when bubbles burst: time to time the market?
Replies: 145
Views: 10434

Re: This man can predict when bubbles burst: time to time the market?

I suffer from anxiety and I am afraid of huge losses in my investments. Taleb shows that extreme events are possible and losses in the stock market can be much higher than the bell curve predicts. So I am looking for ways to manage my anxiety in this, including by researching serious methods of ris...
by ryman554
Tue Oct 30, 2018 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor: Cap on Distribution to Roth IRA?
Replies: 12
Views: 955

Re: Mega Backdoor: Cap on Distribution to Roth IRA?

If you are thinking of accessing the conversion principal prior to turning 59.5, remember there is a 5 year seasoning period for penalty free access on each individual conversion. Keep records of your conversions until you are 59.5 in case you needed to withdraw principal. While true, this money co...
by ryman554
Tue Oct 30, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor: Cap on Distribution to Roth IRA?
Replies: 12
Views: 955

Re: Mega Backdoor: Cap on Distribution to Roth IRA?

I have read that some plans allow you to set up scheduled automated conversions. Mine does not and I have to initiate each conversion. If you have to initiate each withdrawal, then what matters is if any gains have accrued . When the market is going through a flat or declining period (like now), th...
by ryman554
Fri Oct 26, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Question about the 4% rule
Replies: 27
Views: 2412

Re: Question about the 4% rule

So for early retirement in early 50s does the 4% rule still apply? I would say no, because it was originally calculated for 30-year retirements. Early retirement can be tricky because you need to plan for more than 30-years (just in case), you're not getting Social Security for a while, and you hav...
by ryman554
Thu Oct 18, 2018 8:32 am
Forum: Investing - Theory, News & General
Topic: flat for the year
Replies: 27
Views: 2568

Re: flat for the year

I'm +5% when considering contributions. I'm -2% when subtracting out the new contributions. So, I'm down to flat. Treading water, so to speak, but still adding ballast, which is nice considering a (low) 7 figure portfolio. Contributions matter, even at this level. Not a good year to be 40% internati...
by ryman554
Thu Oct 18, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: "Breaking" a CD: On a Specific Date ??
Replies: 12
Views: 824

Re: "Breaking" a CD: On a Specific Date ??

I guess that different institutions have varied penalties for breaking CDs of similar maturities? Do some institutions claw back principal as well as interest if a CD is "broken"? Yes. If the penalty is 6 months of interest and you break the CD after 3 months, they will take 3 months of interest ou...
by ryman554
Sat Oct 13, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7477

Re: If I retire to a State that has no State taxes...

If i retire to a State that has no state taxes, I wont pay any state taxes on my RMDs and long term capital gain that I exercise after moving to that state. Is that correct? Yes, I believe that's correct if it's one of the 7 states listed above. One caveat based on your use of the term "exercise". ...
by ryman554
Tue Oct 09, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Apartment 50% of assets
Replies: 21
Views: 1929

Re: Apartment 50% of assets

So. I agree completely. However, this place is pretty pricy and we could easily sell it and move to something much less expensive. It's a lot less complicated than you are making it. 1. Assume the goal of your investing is to become financially independent. Also assume you want to get there as soon...
by ryman554
Tue Oct 09, 2018 1:06 am
Forum: Personal Finance (Not Investing)
Topic: Postponing the bonus to next year. Is it a good idea?
Replies: 30
Views: 1990

Re: Postponing the bonus to next year. Is it a good idea?

It would not work in many jobs but taking a leave of absence without pay might keep you below the income limits. Even if your wife cannot take the time off you might be able to, or you both might be able to take two extra weeks off. Don't forget that if you have anything you can take a capital loss...
by ryman554
Mon Oct 08, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Postponing the bonus to next year. Is it a good idea?
Replies: 30
Views: 1990

Re: Postponing the bonus to next year. Is it a good idea?

Thanks everyone! I will just ask the employer to cancel the bonus this year all together. You are going to ask your wife’s employer to cancel her bonus? How does your wife feel about that? The OP will get hit with a 15k ACA subsidy penalty for 5k of extra income, if I remember the other thread corr...
by ryman554
Fri Oct 05, 2018 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Shorting and buying a stock in two accounts (one is retirement account)
Replies: 19
Views: 1366

Re: Shorting and buying a stock in two accounts (one is retirement account)

OP: Since this in an (M)AGI problem, please post to this group where your income is coming from, and what tax-advantaged space you have used up. There may be other solutions. You should also change your title to something like "need to reduce MAGI by $5000 to avoid Obamacare subsidy..." or something...
by ryman554
Thu Oct 04, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Record keeping fees fidelity 401k vs. brokerage link
Replies: 19
Views: 3007

Re: Record keeping fees fidelity 401k vs. brokerage link

Nevermind. I see my plan suddenly has a $67 a year recordkeeping fee. For me that's an additional 0.08% expense, thanks Fidelity :( It is up to the employer whether or not they want pass along the recordkeeping fee or not. For example, my wife's MegaUni's 403b has no recordkeeping fees while my Meg...
by ryman554
Wed Oct 03, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Record keeping fees fidelity 401k vs. brokerage link
Replies: 19
Views: 3007

Re: Record keeping fees fidelity 401k vs. brokerage link

Nevermind. I see my plan suddenly has a $67 a year recordkeeping fee. For me that's an additional 0.08% expense, thanks Fidelity :( Can you share Fidelity's response? In an old employer's 401k I have never seen recordkeeping fee's until I opened a brokeragelink account and transfered from one index...
by ryman554
Wed Oct 03, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Any good 2018 CA tax calculators out there?
Replies: 7
Views: 769

Re: Any good 2018 CA tax calculators out there?

Doesn't CA pretty much treat everything as normal income?

Take the top line on the back of the 1040 and multiply by 9.3% (or use the tax tables). Seems like a good estimate to me....
by ryman554
Wed Oct 03, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Retired Dilemma - dividends vs accumulating
Replies: 10
Views: 1582

Re: Retired Dilemma - dividends vs accumulating

The OP has 15M and wants to withdraw 2%. The OP should not apologize for wanting to spend 2% of their NW every year. That budget is not the problem. OP: pretty much anything you do, as long as you don't screw it up, will serve to grow you money in perpetuity. By screwing it up, meaning making bad in...
by ryman554
Mon Oct 01, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Salary negotiation: saying a number first on purpose?
Replies: 43
Views: 4025

Re: Salary negotiation: saying a number first on purpose?

Point taken. I agree it's better to avoid the term, and just let them issue an offer, see where it falls and where it can be improved. These are the things on my personal "total compensation" worksheet for my own consumption. Did I miss anything? salary 401k match bonus ESPP discount Don't forget m...
by ryman554
Sat Sep 22, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: How do I allocate social security in retirement?
Replies: 19
Views: 1891

Re: How do I allocate social security in retirement?

As the poster above me said, SS is an income stream. Guaranteed. So count as income. Just like a pension.

Then figure out how much income you need from investments. sS is not an investment.
by ryman554
Fri Sep 21, 2018 7:57 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity brokerage account - question about automatic investment
Replies: 13
Views: 922

Re: Fidelity brokerage account - question about automatic investment

I really don't understand your question is. Here is the procedure for posterity: Go to. https://digital.fidelity.com/ftgw/digital/automatic-investments/ Click on "Set up automatic investments" Then choose "Transfer from external bank account" Under "transfer to", select a mutual fund you own. Choose...
by ryman554
Thu Sep 20, 2018 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: 401K loan
Replies: 7
Views: 527

Re: 401K loan

With $350k a year, in a LCOL, O fail to see why you cannot cash flow the entire expense without needing a loan at all
by ryman554
Thu Sep 13, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Another high expense-ratio 401(k), Help!
Replies: 22
Views: 1303

Re: Another high expense-ratio 401(k), Help!

Use Ivy International Core Equity if you must have international. Agree with Hartford Core Equity Fund (us stocks) and PIMCO Total Return (bonds). Trying to control my gagging reflexes. You should request your employer add some low cost index funds such as a S&P 500 index, extended market index fun...
by ryman554
Thu Sep 13, 2018 7:57 am
Forum: Investing - Help with Personal Investments
Topic: Another high expense-ratio 401(k), Help!
Replies: 22
Views: 1303

Re: Another high expense-ratio 401(k), Help!

Use Ivy International Core Equity if you must have international. Agree with Hartford Core Equity Fund (us stocks) and PIMCO Total Return (bonds). Trying to control my gagging reflexes. You should request your employer add some low cost index funds such as a S&P 500 index, extended market index fun...
by ryman554
Wed Sep 12, 2018 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage with 87K left on it
Replies: 69
Views: 6347

Re: Paying off mortgage with 87K left on it

Agreed, on the mechanics, but for a few hundred the option to pay less if I had to is appealing. I guess there is no reason to do it now and I could wait until it was ever needed. The question is if interest rates have doubled then or worse -- its that + a surprise layoff -- maybe they wouldn't off...
by ryman554
Tue Sep 11, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage with 87K left on it
Replies: 69
Views: 6347

Re: Paying off mortgage with 87K left on it

Agreed, on the mechanics, but for a few hundred the option to pay less if I had to is appealing. I guess there is no reason to do it now and I could wait until it was ever needed. The question is if interest rates have doubled then or worse -- its that + a surprise layoff -- maybe they wouldn't off...
by ryman554
Tue Sep 11, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else not save for cars?
Replies: 113
Views: 10337

Re: Anyone else not save for cars?

I usually finance my cars with our Home Equity Line. Prime minus 1/2% and I pay it off over 4-5 years. I prefer that to building up a bunch of cash over time to make a cash purchase several years down the road. I'm surprised it took 50 posts to get to this. This is what we do - was even better back...
by ryman554
Tue Sep 11, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage with 87K left on it
Replies: 69
Views: 6347

Re: Paying off mortgage with 87K left on it

My own situation, I am looking at making an additional large payment up front to reduce the interest costs on the my loan. While they may not be "front loaded" as some have suggested, your payments are fixed through the course of the mortgage. If you are thinking of making a large prepayment then y...
by ryman554
Mon Sep 10, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage with 87K left on it
Replies: 69
Views: 6347

Re: Paying off mortgage with 87K left on it

Watty -- indeed there's about 4-1/2 years left on the mortgage (due to some previous lump sum principal paydowns). Main thing I've wondered is whether it's really a 3.75% return at this point. Mortgages are front-loaded with interest --- even though the rate across the entire 15-year note is 3.75%,...
by ryman554
Tue Sep 04, 2018 8:13 am
Forum: Investing - Theory, News & General
Topic: ESPP as emergency fund
Replies: 7
Views: 699

Re: ESPP as emergency fund

I'm thinking about keeping most of the shares as part of my emergency fund. By my calculations, I'll end up with $30-35k each year, and this would amount to <5% of my overall net worth. I already have close to $100k cash as an emergency savings right now, so as these ESPP shares start to add up, I ...
by ryman554
Thu Aug 30, 2018 8:29 am
Forum: Investing - Theory, News & General
Topic: Done saving for retirement according to firecalc?
Replies: 51
Views: 4946

Re: Done saving for retirement according to firecalc?

Firecalc is a back-test tool. It is predictive only if the future is like the past. What happens if it isn't? Did you investigate or model a 2008-like drop, but with a 10 year recovery period (and not a one-year recovery followed by an 11 year bull market?) Yes, the OP did. From the years of 1929-1...
by ryman554
Wed Aug 29, 2018 8:27 am
Forum: Investing - Theory, News & General
Topic: Done saving for retirement according to firecalc?
Replies: 51
Views: 4946

Re: Done saving for retirement according to firecalc?

Am I missing something, by my view the OP is *already* FI, at least on the bleeding edge of it. FIREcalc is nothing more than a restatement of the trinity study using fancy graphs. If you believe in the 4% rule (or 3.x% or whatever), then you believe in FIREcalc. End of story. Regardless of current ...
by ryman554
Tue Aug 28, 2018 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Recast plus lump sum prepayment -
Replies: 11
Views: 936

Re: Recast plus lump sum prepayment -

Looks like this new home purchase is going to be tight on your monthly budget. You are also NOT maximizing your 401k and IRAs With the sale of the old home, I would first try to hit the max on the 401k and IRAs for this year (say 10K). If the extra 500 that you put towards car loan gives you the co...
by ryman554
Mon Aug 27, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: The first million is the hardest?
Replies: 46
Views: 9173

Re: The first million is the hardest?

Does it start getting faster at some point due to compounding returns? Only when the market is going up. :happy When the market is going down, you are not going to see a lot of "compounding". But yes...sort of. When your portfolio is small, the portfolio growth you see is from the contributions you...
by ryman554
Mon Aug 27, 2018 8:37 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1247
Views: 105728

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

What I see in the data is that stock returns are fractal and not predictable. One wants to be as widely diversified as possible because you really cannot predict what country, what stock market, what stock market sector will do well in the next cycle. Hence my question about riskiness. Is it more r...
by ryman554
Sun Aug 26, 2018 6:15 am
Forum: Investing - Help with Personal Investments
Topic: $3.5M cash pile at age 63 – what would you do right now (and what wouldn't you do)?
Replies: 34
Views: 5804

Re: $3.5M cash pile at age 63 – what would you do right now (and what wouldn't you do)?

Ignoring pensions and SS is a fool's errand, since if they exist, will contribute >25% to your cash flow needs. Your $110k required income is a mixture of "required" income and "wanted" income. Nobody really needs $110k per year to live, and the better you can come up with wants vs needs, the better...
by ryman554
Fri Aug 24, 2018 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Decent compensation to move to Bay Area CA?
Replies: 290
Views: 22040

Re: Decent compensation to move to Bay Area CA?

I figured the RSUs were a vesting signing bonus. Bonuses have not been mentioned by OP yet, which is an important consideration. Also, an ESPP program could mean 15% more on a certain chunk of salary. Do the math on 15% ESPP on 10% of salary. 1.5%. Not a big needle mover. It's nice, but it's not ev...
by ryman554
Fri Aug 24, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: SALT: IRS issues proposed regs for State Tax Credit for Donation
Replies: 62
Views: 6163

Re: SALT: IRS issues proposed regs for State Tax Credit for Donation

Aren't these exactly the same thing? So what they are saying is that state taxes have to be completed before federal? One mentions tax credit and the other tax deduction, which are two different things. If you donate $100,000 to California and receive nothing for it, that is a $100,000 federal char...
by ryman554
Thu Aug 23, 2018 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Company Stock - % in portfolio
Replies: 42
Views: 3889

Re: Company Stock - % in portfolio

What a wonderful problem to have! Lots of cash and you are concerned about negative returns in the short run? Do you have any debt? - mortgage, student loans, credit card? You may want to consider paying down any outstanding debt you may have in lieu of purchasing bonds. No sense in paying interest...
by ryman554
Thu Aug 23, 2018 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Stop Roth IRA Contributions to Pay Off Loan
Replies: 9
Views: 467

Re: Stop Roth IRA Contributions to Pay Off Loan

I would not want to take money out of a Roth IRA because Roth space is precious and limited. Similarly, I would be reluctant to stop making Roth contributions. However, your interest rate on the loan is high. I would suggest trying to reduce that interest rate by obtaining some other lower rate loa...
by ryman554
Tue Aug 21, 2018 2:45 am
Forum: Investing - Help with Personal Investments
Topic: How to track and manage investment income to meet tax tier objectives
Replies: 4
Views: 552

Re: How to track and manage investment income to meet tax tier objectives

Out of curiosity.... isn't a strategy that doesn't depend on the whims of the market include having a 1-n year bolus of money in "cash" sitting in some "checking" account? Us young guys call that an "emergency fund", but in retirement, everything is an "emergency". Take the strategy that things you ...
by ryman554
Sun Aug 19, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2821

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

I think the paradox is slightly different: the greater one's future medical expenses, the more worthwhile to defer reimbursement. But I agree with you that this leads to quite a bit of fatalism. If future medical expenses are low, then paying income tax on the appreciated HSA balance is worse than ...
by ryman554
Sat Aug 18, 2018 7:43 am
Forum: Investing - Help with Personal Investments
Topic: Any tool to help predict net worth in N years?
Replies: 11
Views: 1840

Re: Any tool to help predict net worth in N years?

Inputs: (real) assumed growth in equities and bonds. Periodic investments and amounts. All you have to do is compute the "interest" each month, add the periodic investment onto it and sum to the previous month. Drag down for however many months you have/want. This certainly works. But the same resu...
by ryman554
Fri Aug 17, 2018 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Rental home and paying off debt by refinancing primary home cash out
Replies: 9
Views: 874

Re: Rental home and paying off debt by refinancing primary home cash out

I don't know if you can loan yourself money? You could if you had the rental set up as an LLC or other business type I would think. But with what you've got now then being able to get better deals on your own mortgage is offset by what expenses you can't deduct now from the rental. You may find tha...
by ryman554
Fri Aug 17, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Any tool to help predict net worth in N years?
Replies: 11
Views: 1840

Re: Any tool to help predict net worth in N years?

I searched around but didn't find an answer. I'd like to have a tool with input - current net worth, yearly contribution (regardless of retirement or taxable account), stock/bond split (assuming yearly contribution also gets the same split). It can tell me what the net worth would (likely to) be in...
by ryman554
Tue Aug 14, 2018 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Huge mortgage mistake
Replies: 58
Views: 8738

Re: Huge mortgage mistake

As I stated before, I understand that making regular 1000 per month as additional payment would save 1 month and $1557.59 vs recasting every year and putting the additional cash flow back in as additional principle payments. No. I will fix this for you. "As I stated before, I understand that making...
by ryman554
Mon Aug 13, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2645

Re: RMD's: take distributions vs selling

Perhaps fungible is the wrong word... and I am unable to make a coherent argument. I will just say that it is the rare case, indeed, that somebody is forced to "sell low" in an IRA for RMD reasons. Since most folks keep far too many cash/equivalents, there are many options to keep the same (low val...
by ryman554
Mon Aug 13, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2645

Re: RMD's: take distributions vs selling

Earl Lemongrab wrote:
Mon Aug 13, 2018 2:58 pm
ryman554 wrote:
Sun Aug 12, 2018 5:33 pm
Selling in IRA and buying in taxable is no net tax cost for gains or anything. (Ok, there are esoteric wash sale rules to worry about)
That can't result in a wash sale. You have to sell for a tax loss. The other way around can be a problem.
Yup, you're correct.
by ryman554
Mon Aug 13, 2018 8:39 am
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2645

Re: RMD's: take distributions vs selling

...Money in IRA is completely fungible and investments can get bought and sold with no tax ramifications. Money in your IRA is not "fungible". What's fungible is: my monthly SS amount and monthly RMD amount starting in 2020 are expected to be comparable in size (SS several hundred $$ larger). So ma...
by ryman554
Mon Aug 13, 2018 8:34 am
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2645

Re: RMD's: take distributions vs selling

...The point is, nobody should ever be forced to sell low when doing RMD, regardless of account... Why not? Let's say stocks drop 20% or 30%. So you sell low in your tax deferred account and almost simultaneously buy similar funds in your taxable account. I don't see a problem... Didn't you just ag...