Search found 1060 matches

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: 463

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: 2423

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: 1686

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: 757

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: 1686

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: 8447

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: 2450

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: 2450

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: 2450

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: 2450

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...
by ryman554
Mon Aug 13, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Huge mortgage mistake
Replies: 58
Views: 8447

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
Sun Aug 12, 2018 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2450

Re: RMD's: take distributions vs selling

Who says you have to sell? Transfer in kind Or if you can't do that, then sell in IRA, no tax cost , take distribution and repurchase in taxable. Haven't sold low at all. I don't understand. Unless you have $$$ already in taxable to cover taxes due, you have to pay FIT (and possibly state/local inc...
by ryman554
Sun Aug 12, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's: take distributions vs selling
Replies: 35
Views: 2450

Re: RMD's: take distributions vs selling

If you don't have cash in your 401k or IRA, then I think it is prudent to accumulate some. That way if stocks go down you will not be forced to sell for your next RMD. You can also use bonds, but my preference is safe, liquid cash, especially now that money market funds are actually paying some int...
by ryman554
Fri Aug 10, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Huge mortgage mistake
Replies: 58
Views: 8447

Re: Huge mortgage mistake

If we repeat the strategy, there comes a point in time where the total principe remaining is less than the recast amount. Instead of doing the final recast, i would payoff the loan when that scenario comes. In the end I will definitely reduce the term of loan and save on interest. As I stated early...
by ryman554
Fri Aug 10, 2018 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Huge mortgage mistake
Replies: 58
Views: 8447

Re: Huge mortgage mistake

Didn't have to pay anything for recast. I am aware that the terms will change. Primary objective is to increase cash flow. Then recasting provides some benefit. Notice that there are usually nominal $x00 fees (mine is $250) to recast, so the choice to do so is really driven by a perceived need to u...
by ryman554
Thu Aug 09, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: US and UK Deep History: Safe Withdrawal Rates
Replies: 38
Views: 3270

Re: US and UK Deep History: Safe Withdrawal Rates

The action I would take knowing that the average was 6.6% and 3/4 were above 5% would be to reject the Trinity-style withdrawal in favor of some other plan. Yup, I reached the same conclusion a few years ago, and will not look back. Actuarial methods and flexible decision rules have been around for...
by ryman554
Thu Aug 09, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Huge mortgage mistake
Replies: 58
Views: 8447

Re: Huge mortgage mistake

I have recasted my loan after paying 20000 extra over a period of 19 months. Now my monthly payment shrinked by around $140 which goes as "additional" additional payment to principle. I am planning to repeat this strategy every 2 years or so. What you are doing is not necessary, at best, and counte...
by ryman554
Thu Aug 09, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: US and UK Deep History: Safe Withdrawal Rates
Replies: 38
Views: 3270

Re: US and UK Deep History: Safe Withdrawal Rates

OK, for U.S. Investors with 70/30 asset allocation, for 30 year withdrawal period: Average max withdrawal rate was 6.6% and half were greater than 6.3%. 75% were in the range 5.0% to 7.9% 90% were in the range 4.3% to 9.4% They never showed these graphs and statistics in the Trinity Study and simil...
by ryman554
Thu Aug 09, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: Would buy and hold work if Japan's lost decade happens?
Replies: 64
Views: 7564

Re: Would buy and hold work if Japan's lost decade happens?

I'm fairly new to investing. Would this situation be alleviated anyway by holding bonds? Correct, that's the point of bonds. When stocks are crashing, bonds go up, historically. Incorrect. Corporate bonds track their underlying equities quite well. Which is why, even though they have a higher yield...
by ryman554
Tue Aug 07, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: 401k administrative fees
Replies: 19
Views: 1115

Re: 401k administrative fees

Hmm, that's a tough one. You're getting a guaranteed 9.4% return on your 401k contributions, on top of whatever each fund returns. If you are unable to max out both 401k and Roth IRA, I think the match on your 401k wins. Right, so with the current limits of $18,500 my company would match up to $185...
by ryman554
Thu Aug 02, 2018 8:25 pm
Forum: Personal Consumer Issues
Topic: New job commute
Replies: 64
Views: 3511

Re: New job commute

Where I live there is no feasible public transport route to my job, it would take 3 hrs one way to do so. Are you sure? You can't drive part of the way, park in a commuter lot, and train/subway or bus in the rest? I am guessing if the answer is no, you are not working in a big city. I dunno. Do you...
by ryman554
Thu Aug 02, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: 4% rule .. but when?
Replies: 35
Views: 4169

Re: 4% rule .. but when?

So person A retires at year 2007 with $1M. This person decides he can live with $40k/year Person B has the same $1M at year 2007. At year 2009, the stock market has crashed and and lost 50% value, so $500k are left. This person decides he can live with $20k/year You could argue that 100% stocks is ...
by ryman554
Thu Aug 02, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: SWR 2.5% --how much equity required?
Replies: 9
Views: 1269

Re: SWR 2.5% --how much equity required?

antiqueman wrote:
Wed Aug 01, 2018 7:14 pm
On another on going post someone posted that 2.5 withdrawl rate was perpetual .

If that is true , how much equity should one hold?

Thoughts.

Thanks.
Anything works. You saved too much. Congratulations on being completely FI.
by ryman554
Wed Aug 01, 2018 8:44 am
Forum: Investing - Theory, News & General
Topic: I desire above average results
Replies: 14
Views: 1833

Re: I desire above average results

The market return is an above average investor return. So if you can reduce expenses and taxes and get at least the market return, then you will have outperformed the average investor who pays more in fees and taxes. So do you actually know the performance of your portfolio? Do you compare it to a ...
by ryman554
Wed Aug 01, 2018 8:33 am
Forum: Investing - Help with Personal Investments
Topic: 1.9 M windfall. My plan; input requested
Replies: 30
Views: 4587

Re: 1.9 M windfall. My plan; input requested

- Real estate: this ties into a business my brother is already in. The short version is that it's been a successful small business for 6 years; the 300k would simply double the current business. This business gives my parents a free place to live near the ocean for 6 months a year. So it's sort of ...
by ryman554
Tue Jul 31, 2018 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Reserve travel insurance
Replies: 33
Views: 3418

Re: Chase Sapphire Reserve travel insurance

I had to cancel a flight due to being forced to work when I was previously scheduled off. I called and stated my case that did not qualify for reimbursement under cancellation policy. They said I could submit and application but I just ate the $300. I could have lied but wasn’t worth it. Why go thr...
by ryman554
Mon Jul 30, 2018 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Reserve travel insurance
Replies: 33
Views: 3418

Re: Chase Sapphire Reserve travel insurance

I had to cancel a flight due to being forced to work when I was previously scheduled off. I called and stated my case that did not qualify for reimbursement under cancellation policy. They said I could submit and application but I just ate the $300. I could have lied but wasn’t worth it. Why go thr...
by ryman554
Sun Jul 29, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Firecalc "Your Portfolio" Tab to adjust for less stocks in future
Replies: 7
Views: 651

Re: Firecalc "Your Portfolio" Tab to adjust for less stocks in future

I have the "risk tolerance" to handle a 80/20 portfolio. Our retirement portfolio is 40/60. IMHO retirees should not invest even near their risk tolerance. I don't understand this statement. One huge knob to define the "SWR" is you AA. Generally, the lower the equity number, the higher (worse) the ...
by ryman554
Sun Jul 29, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4442

Re: Is the 4% rule/ index funds flawed?

What wrong with 1990? A great year to retire for 4% rule. You get the run up of the 90's ( of which 2000 was a correction) and only a "little" blip in 2008. Iraq invaded Kuwait in July 1990, causing oil prices to increase. The Dow dropped 18% in three months, from 2,911.63 on July 3 to 2,381.99 on ...
by ryman554
Sat Jul 28, 2018 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4442

Re: Is the 4% rule/ index funds flawed?

Jerry55 wrote:
Fri Jul 27, 2018 7:33 pm
ryman554 wrote:
Fri Jul 27, 2018 9:04 am
What's wrong with 2000?

LOL !!! Looks like I skipped a decade !!! I meant 1990.
I really hate getting old at times.... :oops:
What wrong with 1990? A great year to retire for 4% rule. You get the run up of the 90's ( of which 2000 was a correction) and only a "little" blip in 2008.
by ryman554
Fri Jul 27, 2018 9:10 am
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4442

Re: Is the 4% rule/ index funds flawed?

The US wasn't the best market to invest in (Sweden, Australia, and South Africa all beat it out, if I remember). But it was certainly in the top performers. Looking at other markets during the 20th century is a hard thing to interpret. ... My sense is that, for the cases/countries where something l...
by ryman554
Fri Jul 27, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4442

Re: Is the 4% rule/ index funds flawed?

I won't get into the Index fund conversation, good, bad or indifferent. The 4% rule is a horse of a different color. Have another melt down like 2008, or mini crash like in 2000 or so ? Those numbers can be quite difficult to obtain and may force one to actually stop taking cash. It all depends. Wh...
by ryman554
Thu Jul 26, 2018 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Effect of Social Security when Retiring before Benefits Begin
Replies: 23
Views: 5526

Re: Effect of Social Security when Retiring before Benefits Begin

I could go through the math and work out present value calculations, but it seems is if these methods need to assume a growth rate of the portfolio.. what happens when such growth rate is not achieved, or is overachieved? I prefer a different approach, using a sustainable withdrawal rate. I know rou...
by ryman554
Wed Jul 25, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP - Optimum Holding Period, Taxes & Fees?
Replies: 11
Views: 724

Re: ESPP - Optimum Holding Period, Taxes & Fees?

Stock vests. Sell within miliseconds of settled shares. When the stock takes an unexpected 20% dive, you don't care. (before learning my lesson, I had my shares dive 75%) Don't let the tax tail wag the dog. I'd rather pay 33% tax on a big gain than 0% tax on a big loss. Having been there, I can say...
by ryman554
Tue Jul 24, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Biggest financial decision of my life: selling a big wad of options
Replies: 46
Views: 5149

Re: Biggest financial decision of my life: selling a big wad of options

Dumb question, but any benefit to relocating, at least on paper, to another state to avoid the CA taxes? Not sure the nuance of it, but CA = ouch. Not from the options, no. I learned this the hard way. Options are taxed as sourced to the state in which the options were granted. Even if you move to ...
by ryman554
Tue Jul 24, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: GMO 7 year forecasts are worse than a toss of a coin
Replies: 47
Views: 4339

Re: GMO 7 year forecasts are worse than a toss of a coin

Sure, and for the reasons you say, I am a passive investor 90% of the time, mostly with Vanguard due to their low fees. However, I've "actively" cut back my equity allocation since last year, because I think at today's valuations, the rewards for risk are not appealing to me. What I put the money i...
by ryman554
Mon Jul 23, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Biggest financial decision of my life: selling a big wad of options
Replies: 46
Views: 5149

Re: Biggest financial decision of my life: selling a big wad of options

Thank you, everyone. Sounds like I should accelerate my sales plans. On whether I've already won and don't "need" any more: I figured I'd retire early if I hit $20M, as 5% long-term return would yield my current salary. That said, I'm not willing to gamble the whole pot in the hopes of getting to $...
by ryman554
Sun Jul 22, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: GMO 7 year forecasts are worse than a toss of a coin
Replies: 47
Views: 4339

Re: GMO 7 year forecasts are worse than a toss of a coin

No there isn't , this thread is just food for thought. Anyway I appreciated your post, I'm surprised they got one forecast right. I didn't know. Well I think it is QUITE actionable. The moral of the story is NOT to jump all over GMO and Mr. Granthem, but to reinforce for those who need it (and base...
by ryman554
Sun Jul 22, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Biggest financial decision of my life: selling a big wad of options
Replies: 46
Views: 5149

Re: Biggest financial decision of my life: selling a big wad of options

You're making $1M a year. You have $10M in options. You said they are NQO ( and not ISO), so there is no tax benefit to selling later rather than sooner unless you are gambling on price appreciation, in which case you want to exercise options as soon as they vest. Since you aren't doing that, I prop...
by ryman554
Fri Jul 20, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Tax Implications On My Stock Options
Replies: 2
Views: 327

Re: Tax Implications On My Stock Options

You gained $1.04 per share, ($3.49-$2.45) by exercising the stock option. The net gain of $3,250 (3,125*$1.04) minus any fee incurred by the exercise will show up on line 1 of your 2018 Form W-2 by your previous employer as ordinary wages or salary. The basis of the stock is now $3.49. Is that righ...
by ryman554
Wed Jul 18, 2018 9:10 am
Forum: Personal Finance (Not Investing)
Topic: $500k Term Life- get new policy?
Replies: 14
Views: 872

Re: $500k Term Life- get new policy?

Without debt and mortgage, 140k is a lot of spending. But, then again, you're doing extremely well. Are you including taxes on this spending? You have $3M in the bank. You could stop right now and support a ~$120k retirement (pretax, slightly aggressive). Let's say you get hit by a bus. Since you ha...
by ryman554
Mon Jul 16, 2018 8:28 am
Forum: Investing - Theory, News & General
Topic: Any source for: "If markets fall X%, a X/X portfolio will fall X%?
Replies: 10
Views: 857

Re: Any source for: "If markets fall X%, a X/X portfolio will fall X%?

Thanks, Joe. Math was never my strength! A real liability in investing. -Bob It is a *huge* liability, because without a decent math background, you will be forced to trust others. There aren't a whole lot of folks in the investment community that have your best interests at heart. Even those with ...
by ryman554
Thu Jul 12, 2018 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Keeping a checkbook register
Replies: 122
Views: 9377

Re: Keeping a checkbook register

Edit: Wow, <facepalm>. That was a zombie post... Sorry! A year or two ago I changed to keeping it in a Word document. The entries look like this: check 1061 Dec 12 Pocasset $25 balance 621.95 check 1062 Dec 14 charlies rubbish removal $396 balance 225.95 The entries are in bold type and I change the...
by ryman554
Thu Jul 12, 2018 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: when is it better to take short term capital gain
Replies: 6
Views: 740

Re: when is it better to take short term capital gain

Is there any time based on accrued income, it is better to take short term gain than long term gain ? I have a vague understanding that after a certain income accrued long term gains are not taxed at 20% + 3.8% medicare tax and it is better to take short term gains and keep the long term gains for ...
by ryman554
Wed Jul 11, 2018 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Can I use Fidelity's BrokerageLink to avoid 401k fees?
Replies: 14
Views: 961

Re: Can I use Fidelity's BrokerageLink to avoid 401k fees?

One data point here: I appears as if I avoid the fees. I know my ex- company started instituting $25/quarter fees or so before I left. I had some remainder funds stuck in a MM account due to an unexpected (and botched) after tax contribution and subsequent roth roll-over from a random bonus I was no...
by ryman554
Sat Jul 07, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Re-casting mortgage
Replies: 11
Views: 1320

Re: Re-casting mortgage

With a $6k mortgage payment I’ll assume you have enough interest that you are above the new $24k standard deduction. Maybe that is another thing to consider depending on your tax bracket. A 6k mortgage payment corresponds to a 1.3M house or so. There is a limit (750k, now?) on the deductibility, an...
by ryman554
Sat Jul 07, 2018 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Re-casting mortgage
Replies: 11
Views: 1320

Re: Re-casting mortgage

It's unclear if your take-home includes 401(k) or other such investments. I calculate close to $200k take home, so this could be anywhere from 300 to 450k in total salary. You have about a 1.3M mortgage. That's a lot for a 300k salary, perhaps OK for a 450k salary. For the bay area, that's a step ab...
by ryman554
Fri Jul 06, 2018 8:47 am
Forum: Personal Finance (Not Investing)
Topic: W-4 allowances: why not withhold the minimum to avoid penalty?
Replies: 17
Views: 1368

Re: W-4 allowances: why not withhold the minimum to avoid penalty?

Just as a follow up, I calculated using Notice 1036 ( https://www.irs.gov/pub/irs-pdf/n1036.pdf ) and, if I want to have NO income tax withheld from my paychecks going forward, I have to claim >50 allowances on my W-4. My question: if I claim >50 allowances on my W-4, will this, in itself, cause an...
by ryman554
Thu Jul 05, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Can't participate in 401k for 1 year
Replies: 33
Views: 2513

Re: Can't participate in 401k for 1 year

FYI - The one year rule is not uncommon. That usually signifies a "safe harbor" plan. I'm struggling with the connection between the two. The safe harbor plan (at least one version of it), ensures "fairness" across different earnings levels by either matching a certain percentage of your contributi...
by ryman554
Mon Jul 02, 2018 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for my employer’s ESPP?
Replies: 27
Views: 1402

Re: Strategy for my employer’s ESPP?

If you are maxing pre-tax 401ks, Roth IRAs, HSA, then I put ESPP and Taxable investing on the same level. I wouldn't do it if you have non-mortgage debt or aren't maxing your other retirement buckets. I take issue with that advice. After the first period, ESPP plans become self-funding. Return of c...