Search found 1003 matches

by ryman554
Fri Jun 22, 2018 9:07 am
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 70
Views: 4207

Re: Did you celebrate when you finally hit $1m?

No. Well, maybe a little internal high-five.

Reason: I've still got a long way to go for financial independence. But it's the indication of light at the end of the tunnel.
by ryman554
Fri Jun 22, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 72
Views: 6586

Re: Can you retire on $2M?

You can argue between a 2% and 3% SWR, and you have a reasonable chance of ending with nothing. Anything higher you have to use a lot of imagination to justify. What data do you use to justify such small withdrawal rates? 3.3+% (or thereabouts) seems to be a perpetual withdrawal rate that takes you...
by ryman554
Fri Jun 22, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Seeking advice for purchasing home in HCOL area
Replies: 2
Views: 242

Re: Seeking advice for purchasing home in HCOL area

Hello everyone, I am currently looking to buy a home for my family in a high cost of living area for around $1M. We currently have about $800K invested in VBINX index fund right now with additional $400K coming in from selling property. I am a physician in my mid-30s, with avg household income of ~...
by ryman554
Thu Jun 21, 2018 5:08 pm
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 2468

Re: Ex-dividend days: Is there typically anything out of the ordinary?

Thank you all for the responses so far. First, we can look at the empirical evidence. Stock do drop pretty much by the dividend amount. Not exactly - but the differences between the close and open between ex-dividend dates are about the same differences between open and close on non-ex-dividend date...
by ryman554
Thu Jun 21, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 2468

Re: Ex-dividend days: Is there typically anything out of the ordinary?

So, the market maker *should* change the price to (closing price day N-1) - (dividend per share). But do they really? Because they don't *have* to. What makes you think that they don't have to adjust the opening quoted price for dividends? Because I can't get my head around what you seem to be sayi...
by ryman554
Wed Jun 20, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 2468

Re: Ex-dividend days: Is there typically anything out of the ordinary?

That really doesn't answer my question, and, while having dividend-adjusted prices is nice, doesn't get to the heart of the matter on how the bid/ask prices change from 1600EST ex-dividend day to 0900EST the next day. There are statistics to be had to see if the price people actually buy things for...
by ryman554
Wed Jun 20, 2018 9:49 am
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 2468

Re: Ex-dividend days: Is there typically anything out of the ordinary?

Since nobody sets prices for any stock, and a lot of folks out there don't even know it's ex-dividend day, how, exactly, does the price suddenly change? Yes, someone does set prices for stocks, or at least quotes the prices, and manages historical price data. The prices quoted are adjusted. https:/...
by ryman554
Wed Jun 20, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: I don't trust my own estimate of expenses
Replies: 29
Views: 2169

Re: I don't trust my own estimate of expenses

For me EVERYTHING is paid through my one checking account. I just pulled 24 months of statements from the bank and summed the debits. Gave a pretty good picture. Dottie57 is showing the right/easiest/most accurate way to do it. This is what I do: a. download the year's transactions from my checking...
by ryman554
Wed Jun 20, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 2468

Re: Ex-dividend days: Is there typically anything out of the ordinary?

You would expect the price of a stock to drop by the amount of the dividend on ex-dividend day. There are other things at play here though. Good news could boost the stock price even with the announced dividend. In any case, the price is lower than it would have been if there had been no dividend a...
by ryman554
Tue Jun 19, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Lost job. Take early SS or draw from accounts?
Replies: 54
Views: 5817

Re: Lost job. Take early SS or draw from accounts?

Therefore, the correct strategy is to get the income and money now. We can agree to disagree. IMHO, the correct strategy is to get a job (any job), lower her costs as much as possible, and delay SS her benefits for as long as she can. I absolutely agree with the first two, I was under the assumptio...
by ryman554
Mon Jun 18, 2018 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Lost job. Take early SS or draw from accounts?
Replies: 54
Views: 5817

Re: Lost job. Take early SS or draw from accounts?

It's not clear how much she can get in benefits by beginning early. If she starts now, she'll probably get about $1600/month or so. Frankly, that not enough. She may not have a choice. But if at all possible she should wait at least until FRA, and preferably until 70. She needs as much income as sh...
by ryman554
Mon Jun 18, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Why do we need 529?
Replies: 41
Views: 3488

Re: Why do we need 529?

One can save over $400,000 in a 529 plan; just try that with a ROTH IRA. One can withdraw principal from a ROTH IRA, one CAN NOT withdraw earnings from a ROTH IRA unless you are age 59.5. Will you be age 59.5 when child goes to school? To clarify: You most certainly *can* withdraw earnings from a R...
by ryman554
Thu Jun 14, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: One IRA contribution was non-deductible, but no records
Replies: 14
Views: 1017

Re: One IRA contribution was non-deductible, but no records

It would not be worth it to me. You are contemplating 4 or 5 rollovers and a roth conversion followed by a later rollover. If you are in the 25% tax bracket till the end of your days, the most you would save is $500. If you don't spend your entire IRA before you die, I guess you save nothing. I agr...
by ryman554
Thu Jun 14, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Does cost basis rollover during an IRA rollover and strategies involved?
Replies: 3
Views: 214

Re: Does cost basis rollover during an IRA rollover and strategies involved?

I know for retirement accounts cost basis really shouldn't matter, but I would like to have it if possible. Thank you for any thoughts. Why? As you said, it doesn't matter for tax reasons. Are you trying to compute an IRR? You need cash in, not cost basis, since the cost basis drops as dividends ar...
by ryman554
Tue Jun 12, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: WSJ-- Next Stop for Mutual-Fund Fees: Zero
Replies: 40
Views: 4194

Re: WSJ-- Next Stop for Mutual-Fund Fees: Zero

Yep. The difference between .04% and zero is really pretty minuscule. The article shows that a .09% ER fund (more than double VTI) will cost $1,500 over 30 years, but it should be pointed out that at the same growth rate, that fund would also grow by over $47,000. Fees make a BIG difference when yo...
by ryman554
Fri Jun 08, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Expensive house in HCOL area
Replies: 70
Views: 6250

Re: Expensive house in HCOL area

WhiteMaxima wrote:
Thu Jun 07, 2018 12:54 pm
Study shows in SF and SEA, people made more money from their home appreciation than their annual wages during last couple of years.
Unless they up and left, they haven't made anything yet.

nb: I'm living your statement and wondering about mine.
by ryman554
Fri Jun 08, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: how to buy more time -- job offer
Replies: 9
Views: 1594

Re: how to buy more time -- job offer

I got and will take job 2 -- a better offer all around thanks all for your advice and support. Next up speaking with Job 1 tomorrow! I feel bad as the CEO was very very kind to me. You have two offers. Why are you not using them to leverage each other? All other things being equal, do you want to w...
by ryman554
Fri Jun 08, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 159
Views: 17951

Re: Don’t cheat yourself with the 4% rule

I usually post to point out that 4% is plenty conservative enough NOT to convince those people to spend more money, but to protect people new to this site who might come on here and feel like they should work another 7 years, when they really don't have to. That's exactly why I responded. Even thou...
by ryman554
Wed Jun 06, 2018 8:40 am
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 159
Views: 17951

Re: Don’t cheat yourself with the 4% rule

Please show me the data the supports your 2.5% statement. It isn't based on historical data, it's based on being able to last for 40 years (the expected time I'll be in retirement, age 45 to 85) with 0% real return. Of course I might die at 50, or we might have positive real returns over the next 5...
by ryman554
Tue Jun 05, 2018 8:56 am
Forum: Personal Finance (Not Investing)
Topic: First time Home Buyer in HCOL area - funds check
Replies: 28
Views: 3686

Re: First time Home Buyer in HCOL area - funds check

pepperjackNJ wrote:
Tue Jun 05, 2018 6:19 am
I could not find any banks offering no PMI mortgage.
I will search again harder

Thanks
Go with a mortgage broker and get yourself an 80/10/10 or something. I'd suggest an upfront guy (head over to mortgage professor), but you're not going to get these options by going to a single bank.
by ryman554
Tue Jun 05, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 159
Views: 17951

Re: Don’t cheat yourself with the 4% rule

4% rule is risky business, at least for someone looking to retire a little early. I'm planning to use the 2.5% rule when I retire, with no SS or pension factored in. Please show me the data the supports your 2.5% statement. You can justify 3.5% or something nearby with data. Search for "perpetual w...
by ryman554
Tue Jun 05, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: new job bigger take home pay
Replies: 15
Views: 1833

Re: new job bigger take home pay

please read this on the mechanics on how to convert.... https://www.kitces.com/blog/how-to-do-a-backdoor-roth-ira-contribution-while-avoiding-the-ira-aggregation-rule-and-the-step-transaction-doctrine/ I really have no idea what you are saying. I am well aware of (and experienced in) all the variou...
by ryman554
Mon Jun 04, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: new job bigger take home pay
Replies: 15
Views: 1833

Re: new job bigger take home pay

Too high IRA balances? Not sure what that means - we do $24K for each of us each year before the 401K match and then do a backdoor Roth as well for each. (plus the HSA max's) IRS rules require that you pro-rate from all TIRA balances when you back door. So if you had, say, a prior employers 401k yo...
by ryman554
Mon Jun 04, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: Do bond funds lose value while CDs do not?
Replies: 31
Views: 3357

Re: Do bond funds lose value while CDs do not?

Short answer is that you can't compare bond funds to putting money in CDs, directly, anyhow. You can compare a *single bond* to a CD. Neither lose value in rising interest rates. You may lose money to inflation, but you get the contractually agreed to amount of interest at whatever period the bond/C...
by ryman554
Mon Jun 04, 2018 2:41 am
Forum: Personal Consumer Issues
Topic: 6 hour layover on Heathrow
Replies: 42
Views: 3320

Re: 6 hour layover on Heathrow

Let's do the math. Assume 30 minutes minimum to get from plane to landside. With no EU passport, could be 60 minutes or more, especially when you write"transit" on the landing card with a six hour layover. . You want to be back at LHR 90 minutes to departure to collect boarding pass and clear securi...
by ryman554
Thu May 24, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality
Replies: 98
Views: 10542

Re: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality

Finally, I'm a financially flexible person. All of my life, I've adapted my expenses to my income. That's what most people do; it's nothing unusual. People with high income tend to spend more than people with low income. So, if really bad markets happen during my retirement, I'll revisit my lifesty...
by ryman554
Wed May 23, 2018 9:12 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2970

Re: What are downsides of ESPP @ 15% discount ?

Hmm, it looks like each answer in this chain is off by at least a little, but I think that ryman554 is the closest. Correcting the Qualifying Disposition case: Compensation income is the lesser of - 15% of the Grant date price - Sales price minus Purchase price (but not less than 0) It looks like i...
by ryman554
Wed May 23, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2970

Re: What are downsides of ESPP @ 15% discount ?

3. The GAIN of the stock is long-term or short-term if HELD over more than a year, and is above the basis, regardless of qualifying or disqualifying distributions. In order for it to be a long-term GAIN it must be HELD over more than a year from PURCHASE and also be held for more than 2 years from ...
by ryman554
Tue May 22, 2018 6:38 pm
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2970

Re: What are downsides of ESPP @ 15% discount ?

3. The GAIN of the stock is long-term or short-term if HELD over more than a year, and is above the basis, regardless of qualifying or disqualifying distributions. In order for it to be a long-term GAIN it must be HELD over more than a year from PURCHASE and also be held for more than 2 years from ...
by ryman554
Tue May 22, 2018 2:38 pm
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2970

Re: What are downsides of ESPP @ 15% discount ?

rymann554 - We weren't saying the same thing and you ALSO missed my point and made incorrect statements above (shown in BOLD). The Capital gain being short term and long term is NOT just dependent purely upon the PURCHASE date (contrary to discussions in these threads and what you stated above) but...
by ryman554
Tue May 22, 2018 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Employee stock - Brokerage account suggestion
Replies: 7
Views: 687

Re: Employee stock - Brokerage account suggestion

The best place to park those stocks is to sell them immediately in the lowest cost way. This may be after transferring in kind to a place like TD, or it may be at your current spot. That is where I have a concern. Will I not be subject to capital gains tax if I sell these stocks? I am not sure if I...
by ryman554
Tue May 22, 2018 8:41 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2970

Re: What are downsides of ESPP @ 15% discount ?

If you are in a high tax bracket (say, 32% or higher), it may be worth looking at extending the rotation period to 1 year in order to sell at long term capital gains (LTCG) rate. No, not really. The 15% discount (or whatever discount you get) at vesting is always taxed as ordinary income. Only the ...
by ryman554
Tue May 22, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2361

Re: Frontloading 401k Mistake

Perfect! Thanks everyone! Not to make this any more complicated, but can I /what if I roll this over to an IRA now? Would I be able to remove the excess contribution myself at year end? Or is that just making the mess stickier?? For the love of all that is good, please don't do this. You have to ge...
by ryman554
Tue May 22, 2018 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2361

Re: Frontloading 401k Mistake

Guys, just think it over will you? If one could reverse 401K contributions, wouldn't everybody do that when the market drops later in the year? You ask your company to give back all of your contribution IN DOLLARS contributed and then put it back again next day? Does legitimate excess contribution ...
by ryman554
Mon May 21, 2018 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Employee stock - Brokerage account suggestion
Replies: 7
Views: 687

Re: Employee stock - Brokerage account suggestion

What is the best place to park these stocks? The best place to park those stocks is to sell them immediately in the lowest cost way. This may be after transferring in kind to a place like TD, or it may be at your current spot. Is TD Ameritrade the best brokerage account? Is there a better alternati...
by ryman554
Mon May 21, 2018 8:43 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2970

Re: What are downsides of ESPP @ 15% discount ?

I have the same type of plan. There is no downside, short of the stock price crashing massively on the day the offering closes... Just put in a sell @ market order before market open the day the shares release, take the money and run :) Yes, and every single time the ESPP stock has this nasty ilttl...
by ryman554
Mon May 21, 2018 8:28 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8739

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Of course if your 401(k) won't accept incoming rollovers from former employees, then there's nothing to be done. But if the plan does, and the amounts at stake are big enough, it might still be worth doing. My 401(k) will accept incoming rollovers from former employees (aka older rollover IRA) but ...
by ryman554
Fri May 18, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Best use of inherited assets to get to retirement soon
Replies: 7
Views: 1344

Re: Best use of inherited assets to get to retirement soon

+1 for selling the rental. You're only getting 5% on it, and you haven't talked about maintenance/new roof. Plus, you're no longer doing business with family. That's never a good idea. Have your relative buy you out or force a sale. I am, additionally, somewhat uneasy on your 2.15M to 2.5M to 3M ass...
by ryman554
Fri May 18, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Cashless exercise of NSO vs ISO
Replies: 7
Views: 730

Re: Cashless exercise of NSO vs ISO

OP said cashless exercise, which can only be done as a cashless exercise and immediate sale. There’s no such thing as a cashless exercise and hold thus an ISO disqualifying disposition is a certainty. The money to buy and hold the shares must come from somewhere. Isn't there a "sell to cover" optio...
by ryman554
Thu May 17, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Cashless exercise of NSO vs ISO
Replies: 7
Views: 730

Re: Cashless exercise of NSO vs ISO

If by cashless exercise you mean cashless exercise and sale, then there is little difference between ISOs and NSOs. The big differences arise when you exercise options one calendar year and then sell the shares in another year. I was under the impression that the taxation of both were exactly the s...
by ryman554
Thu May 17, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 2968

Re: Urgent: escrow situation in bay area

I think your mortgage is high for your salary, but you can make it work. I did something very similar to you back in 2010, with similar to lower salary than you. I have a slightly higher salary than you, and I will tell you that 960k mortgage, you are paying $5000 (or more) a month in P&I. You will ...
by ryman554
Tue May 15, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality
Replies: 98
Views: 10542

Re: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality

BH rules don't allow to speculate on that but individuals are welcome to keep that in mind. Any other ideas to make the retirement expenses 100% secure and never ever seeing portfolio going down? I am wondering what do I really have to do keep portfolio going up even when the markets are going down...
by ryman554
Fri May 11, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality
Replies: 98
Views: 10542

Re: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality

I really like the work that ERN has done in this field. Nevertheless, I think his analysis here is overly pessimistic. It's widely known that the '4% rule' was tailored for 30 year retirements, and longer periods than 30 years need a lower starting withdrawal rate. Most of those who have done any r...
by ryman554
Fri May 11, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: When to exercise options at public company?
Replies: 6
Views: 593

Re: When to exercise options at public company?

In case this isn't clear, the value of the options grant is always taxed as ordinary income, no matter the holding period. It is only the increase of the grant value that would be taxed at long term CG rates if you hold long enough. Knowing that, there is no reason to exercise before expiration. If...
by ryman554
Thu May 10, 2018 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Newby to this forum: do i have enough?
Replies: 44
Views: 8434

Re: Newby to this forum: do i have enough?

It's delusional to think that clipping coupons is part of the path to wealth accumulation when someone is making $650,000 a year. Self-identifying as 'frugal' here may make you feel good, but it stretches the limits of credulity. I currently make about $1,200,000/year on a business that collects ab...
by ryman554
Wed May 09, 2018 8:19 am
Forum: Investing - Help with Personal Investments
Topic: ESPP taxing rules, to hold or not to hold
Replies: 28
Views: 2070

Re: ESPP taxing rules, to hold or not to hold

I kept my ESPP stocks so far (two quarters). I just recently learned ESPP shares have to be hold for more than a year after the purchase date AND more than two years after the beginning of the offering period then any profit above the gain from the discount will be taxed at capital gains tax rates....
by ryman554
Thu May 03, 2018 8:42 am
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 156
Views: 16300

Re: Trinity Study updated to 2018

The past performance of a 50/50 AA looks pretty good. Not to me, it doesn't. Yes, it has the most 100%. But the dropoff in success is rapid as you to to higher WR or, more importantly, longer terms. That tells me that I am more susceptible to "unexpected expenses" for 50/50, as you would expect fro...
by ryman554
Thu May 03, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Questions preparing for an ISO Cashless Exercise
Replies: 1
Views: 224

Re: Questions preparing for an ISO Cashless Exercise

I wouldn't file estimated taxes, as long as you didn't have a big tax year last year. Given this is a one-off(?), get you money and put 50% in the bond account and use it to pay taxes next year. Increase your current W-2 withholding to meet 110% of last years tax obligations so you are in the safe h...
by ryman554
Thu May 03, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Mega-backdoor Roth with Fidelity BrokerageLink account
Replies: 1
Views: 262

Re: Mega-backdoor Roth with Fidelity BrokerageLink account

I need some help on the subject: My 401K plan is with Fidelity and I recently opened a BrokerageLink account thru the 401K account. My pre-tax contributions go to the 401K account first and then I transfer them to the BrokerageLink account to invest in Fidelity funds that are not available in my 40...
by ryman554
Tue May 01, 2018 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: OrderingRules mega backdoor Roth
Replies: 8
Views: 638

Re: OrderingRules mega backdoor Roth

Maybe this helps (these are smaller than above. I was counting my wife's Roth above. This is just my Roth): 2014 - Roth IRA opened, no contributions 2015 - 11,000 non-taxable conversion, 603.29 taxable conversion (earnings before backdoor) [starts 5 year clock] 2016 - 21,852.70 non-taxable conversi...