Search found 1208 matches

by Admiral
Thu Aug 16, 2018 10:23 am
Forum: Personal Finance (Not Investing)
Topic: SS benefits and work history question
Replies: 6
Views: 457

Re: SS benefits and work history question

They take the highest 35 years. Low years are bumped out of the calculation by higher years. But yes, in her case it would be 10 years if she did not have any additional years with SS-taxable wages.
by Admiral
Thu Aug 16, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

Looking ahead, to when you retire, if the tax scheme was the same, would you shift things around at retirement? Also, how did you figure the 75K above? 12k standard deduction, 38.6K before LTCG are taxed...? I was referring to the amounts below a current 25% marginal bracket that a family has to fi...
by Admiral
Thu Aug 16, 2018 6:12 am
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

That doesn't really account for performance, which is WCI's point. You have to compare tax adjusted performance, Now, if like livesoft your tax rate is zero on stock dividends, then yes bonds seem to be better in tax-deferred. But since stock funds will grow much faster than bond funds, it doesn't ...
by Admiral
Wed Aug 15, 2018 2:04 pm
Forum: Personal Consumer Issues
Topic: As an American, where are some great places in the world to retire?
Replies: 88
Views: 7090

Re: As an American, where are some great places in the world to retire?

Why move? Stay where they are, and travel and see the world, with a home to come back to. Most older folk want to (or need to) be close to family, and particularly as health declines. They don't want (or are unable to afford) to fly from Tasmania or Hawaii to see their grand kids in Boston. And they...
by Admiral
Wed Aug 15, 2018 11:50 am
Forum: Personal Finance (Not Investing)
Topic: order of withdrawal in retirement (regular, IRA, Roth)?
Replies: 8
Views: 611

Re: order of withdrawal in retirement (regular, IRA, Roth)?

David Jay wrote:
Wed Aug 15, 2018 11:47 am
they won't pay any taxes on the withdrawals either.
Actually they won't pay tax on the gains but they are required to take RMDs based on an age-based schedule. [EDIT: RMDs are required but are not taxable, sorry for the confusion]
by Admiral
Wed Aug 15, 2018 11:40 am
Forum: Personal Finance (Not Investing)
Topic: order of withdrawal in retirement (regular, IRA, Roth)?
Replies: 8
Views: 611

Re: order of withdrawal in retirement (regular, IRA, Roth)?

This not the case with a Roth: if you do nothing, you pay nothing . Even if you do SOMETHING with your Roth, you pay nothing... :happy Yeah I know I realized that did not make sense as I hit submit. I meant that in taxable account even if you do nothing, you pay tax on distributions, versus a Roth,...
by Admiral
Wed Aug 15, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: order of withdrawal in retirement (regular, IRA, Roth)?
Replies: 8
Views: 611

Re: order of withdrawal in retirement (regular, IRA, Roth)?

The Kitces article is good, if somewhat complicated, and with lots of assumptions about amounts and where they are saved. In general, there is a yearly tax drag on a taxable account that is not present in a Roth: the larger the account gets, the more you will have to pay in taxes: both on distributi...
by Admiral
Wed Aug 15, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 232
Views: 19078

Re: "Don't Obsess About Expense Ratios"

I think there is no question Vanguard will lower their fees. To what, I have no idea. They may lower them to zero and slightly raise fees on managed funds to make up the difference (though history shows that their fees tend to get lower over time, not higher). As someone who has the bulk of retirem...
by Admiral
Wed Aug 15, 2018 10:41 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 232
Views: 19078

Re: "Don't Obsess About Expense Ratios"

I think there is no question Vanguard will lower their fees. To what, I have no idea. They may lower them to zero and slightly raise fees on managed funds to make up the difference (though history shows that their fees tend to get lower over time, not higher). As someone who has the bulk of retireme...
by Admiral
Wed Aug 15, 2018 6:12 am
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

Can you elaborate? Can you show the math, similar to what WCI did, that would show that bonds should not be in taxable, given a tax rate, soy, lower than 35%? WCI assumed a 33% marginal tax rate (15% for LTCG and dividends). It would seem like the smaller the gap between marginal income tax rate an...
by Admiral
Tue Aug 14, 2018 4:40 pm
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 94
Views: 5893

Re: Retire in Florida or Alabama?

Seawalls are obviously just one form of technology, you just listed a few others that are also effective and that can also be implemented incrementally. Well none of it is free. Expect taxes to go up. And if the OP's parents are retiring for the beaches, they will not protected with pumps. Agreed, ...
by Admiral
Tue Aug 14, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

OK well, let me elaborate so you can understand what I'm implying: conventional wisdom is that bonds should not be in taxable accounts because of the taxation of distributions but WCI spells out the argument as to why bonds should be in taxable. Take a look at the articles at https://www.whitecoati...
by Admiral
Tue Aug 14, 2018 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

Everyone keeps saying this - except White Coat Investor. https://www.whitecoatinvestor.com/tag/bonds-in-taxable/ Whatever you are implying suggests that you did not understand what WCI wrote. OK well, let me elaborate so you can understand what I'm implying: conventional wisdom is that bonds should...
by Admiral
Tue Aug 14, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Marriage [How should finances be handled?]
Replies: 58
Views: 4527

Re: Marriage [How should finances be handled?]

Combine everything. Your spouse will get it all when you die anyway! In all seriousness, the way it works in most households is there is one "bill payer" or "finance person" and one who is not. That is why it is critical--CRITICAL--to have a budget, even if it is aspirational. (This is what we WANT ...
by Admiral
Tue Aug 14, 2018 9:23 am
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 94
Views: 5893

Re: Retire in Florida or Alabama?

My personal opinion is that due to climate change buying beach-front or beach-adjacent property anywhere in the southern half (and possibly even the northern half) of the United States is a risk not worth taking. In 20 years many of those areas will be unrecognizable. At the bare minimum the disrup...
by Admiral
Tue Aug 14, 2018 9:07 am
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 94
Views: 5893

Re: Retire in Florida or Alabama?

My personal opinion is that due to climate change buying beach-front or beach-adjacent property anywhere in the southern half (and possibly even the northern half) of the United States is a risk not worth taking. In 20 years many of those areas will be unrecognizable. At the bare minimum the disrupt...
by Admiral
Tue Aug 14, 2018 6:40 am
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

That said: Wellington is a good fund, I just would not hold it in a taxable account because it holds about 33% bonds, which result in taxable distributions. Everyone keeps saying this - except White Coat Investor. https://www.whitecoatinvestor.com/tag/bonds-in-taxable/ Whatever you are implying sug...
by Admiral
Mon Aug 13, 2018 11:20 am
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 3743

Re: What am I missing about bonds...

The long-term difference between 80/20 and 90/10 is not likely to make a material difference in your portfolio until the numbers are quite large. Especially if you have no plans to stop work early, 10% bonds is probably fine for you. That said: Wellington is a good fund, I just would not hold it in ...
by Admiral
Mon Aug 13, 2018 11:06 am
Forum: Personal Finance (Not Investing)
Topic: House Value & Mortgage as a Percentage of Net Worth
Replies: 80
Views: 5309

Re: House Value & Mortgage as a Percentage of Net Worth

So, I am asking for your opinion on the following questions to see how far off the mark I am. I am providing my answers but they are based on my gut not on any hard evidence I can back up: OP, this thread has been derailed. Let me make a very simple guide to deciding to buy a home. 1. Do you want t...
by Admiral
Sat Aug 11, 2018 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Average expenses in MCOL area for a family of 4
Replies: 50
Views: 2333

Re: Average expenses in MCOL area for a family of 4

Correct. Not saying I am average. I am trying to guage if I am above or below the average 4 person family in MCOL area. The reason to consider 15 years of expenses is that it averages out the big spending years with home and car purchases to the leaner years. No college expenses for me yet. skor99,...
by Admiral
Sat Aug 11, 2018 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Average expenses in MCOL area for a family of 4
Replies: 50
Views: 2333

Re: Average expenses in MCOL area for a family of 4

Especially in light of the fact that the median household income in the US is only about $59K/year. I think you misunderstood what OP meant by "average". He was averaging out his expenses over years. He never claimed his expenses is the average amount in MCOL. OP, correct me, if wrong. Correct. Not...
by Admiral
Sat Aug 11, 2018 7:26 am
Forum: Personal Consumer Issues
Topic: Buying used car - advice requested
Replies: 36
Views: 2328

Re: Buying used car - advice requested

If you intend to buy used--and especially well used, i.e. out of warranty--you should budget for annual preventive maintenance and repairs and build this into what you intend to spend. What that budget is depends on the make and model (i.e. is it a BMW/Porsche with pricey parts and per hour mechanic...
by Admiral
Sat Aug 11, 2018 7:13 am
Forum: Personal Finance (Not Investing)
Topic: Average expenses in MCOL area for a family of 4
Replies: 50
Views: 2333

Re: Average expenses in MCOL area for a family of 4

But what is your income? We spend more than that (after taxes and all other retirement contributions are accounted for) for a family a four, but our incomes are 300k and we pay for private school. It's all relative. 86k may be a lot if you make 150k. If you make 400k, not so much. As long as you are...
by Admiral
Fri Aug 10, 2018 6:46 pm
Forum: Personal Consumer Issues
Topic: Buying used car - advice requested
Replies: 36
Views: 2328

Re: Buying used car - advice requested

Maybe consider leasing a car. I know many here would argue against the financials of leasing but I've been doing do since 1995. Hey people rent places that they live in, why not a car? Thank you @tennisplyr for the suggestion. The renting a house analogy is an interesting one - could you give addit...
by Admiral
Fri Aug 10, 2018 11:29 am
Forum: Personal Consumer Issues
Topic: Buying used car - advice requested
Replies: 36
Views: 2328

Re: Buying used car - advice requested

I would not buy an 8 year old car, period, and certainly not one with those miles, and not as a daily driver. A cherry, maybe. Run don't walk from the Elantra. Agree that for a commuter car (i.e. must be reliable) that you will keep forever, your best option is to buy new, Prius or a small Honda/Toy...
by Admiral
Fri Aug 10, 2018 11:09 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs. Traditional 401k
Replies: 36
Views: 1845

Re: Roth 401k vs. Traditional 401k

Note that your heirs (non-spouse that is) would be required to take RMDs from an inherited Roth IRA (assuming you would convert from a Roth 401k). The RMD of an inherited Roth is not a taxable event, but--unlike you--they cannot sit on the money forever and allow it to grow. You have high income and...
by Admiral
Fri Aug 10, 2018 6:15 am
Forum: Investing - Help with Personal Investments
Topic: Would you pay this mortgage off?
Replies: 51
Views: 4110

Re: Would you pay this mortgage off?

There's not a "correct" answer to this question, as per usual. Me personally, at your age and at 4%, I would not liquidate equities to pay it off. In fact, I would not pay the extra $500 monthly principal you are while you still have some 457 space not being filled, I'd focus on that first. Some pr...
by Admiral
Thu Aug 09, 2018 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Would you pay this mortgage off?
Replies: 51
Views: 4110

Re: Would you pay this mortgage off?

There's not a "correct" answer to this question, as per usual. Me personally, at your age and at 4%, I would not liquidate equities to pay it off. In fact, I would not pay the extra $500 monthly principal you are while you still have some 457 space not being filled, I'd focus on that first. Some pr...
by Admiral
Thu Aug 09, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Would you pay this mortgage off?
Replies: 51
Views: 4110

Re: Would you pay this mortgage off?

I would if it were my mortgage No doubt :happy Ditto. That is if you are maximizing your tax sheltered opportunities. Others disagree but in my view debt is debt. Don't owe anything to anybody if you can help i t. Perfect. Debt is a ball and chain when it comes to wealth creation :mrgreen: :mrgreen...
by Admiral
Thu Aug 09, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 647

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

I don't think the poster is arguing that his or her equity share will perform differently depending upon whether they're held in a Roth or a tax-deferred account, and having a Roth rather than a TIRA probably makes the most sense for them. This sounds like a public school teacher early in his or he...
by Admiral
Thu Aug 09, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 647

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

Okay well this is all blowing my mind. I was under the impression that whatever I put into my Roth IRA could be taken out tax free after I followed whatever the requirements were at age 59 1/2 or whatever it is. That is correct. But you are paying the tax now, not later. I have to run to a meeting,...
by Admiral
Thu Aug 09, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 647

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

Okay well this is all blowing my mind. I was under the impression that whatever I put into my Roth IRA could be taken out tax free after I followed whatever the requirements were at age 59 1/2 or whatever it is. That is correct. But you are paying the tax now, not later. I have to run to a meeting,...
by Admiral
Thu Aug 09, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 647

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

After reading more posts on Bogleheads I've learned that, in an ideal world, you hold your bonds in your pre-tax account (such as the 403b) while having stocks, such as VTI/VXUS, in a Roth because of the growth that won't be taxed on it. I understand this concept and I think I would like to ultimat...
by Admiral
Thu Aug 09, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Am I on track for FI? (Review with questions)
Replies: 10
Views: 1185

Re: Am I on track for FI? (Review with questions)

Use caution when investing in real estate. View WanderDoc's other posts and you will see a pattern. Your portfolio strikes me as too complex, too costly, and inefficient when it comes to taxes. And it will be more so in the future. You can only control three things when you invest: asset allocation,...
by Admiral
Thu Aug 09, 2018 11:06 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 647

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

After reading more posts on Bogleheads I've learned that, in an ideal world, you hold your bonds in your pre-tax account (such as the 403b) while having stocks, such as VTI/VXUS, in a Roth because of the growth that won't be taxed on it. I understand this concept and I think I would like to ultimat...
by Admiral
Thu Aug 09, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 647

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

After reading more posts on Bogleheads I've learned that, in an ideal world, you hold your bonds in your pre-tax account (such as the 403b) while having stocks, such as VTI/VXUS, in a Roth because of the growth that won't be taxed on it. I understand this concept and I think I would like to ultimat...
by Admiral
Thu Aug 09, 2018 6:24 am
Forum: Investing - Theory, News & General
Topic: If it were March, 2000, would you still allocate 50% to Stocks?
Replies: 94
Views: 4257

Re: If it were March, 2000, would you still allocate 50% to Stocks?

This thread is nothing but troll feeding at this point. CraigTester continues to post inaccurate information so I would suggest there is no point in responding further.

Just my $.02.
by Admiral
Wed Aug 08, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: If it were March, 2000, would you still allocate 50% to Stocks?
Replies: 94
Views: 4257

Re: If it were March, 2000, would you still allocate 50% to Stocks?

If you are buying (or selling) based on CAPE or any other random numerical value of stocks or stock prices you are market timing. It's that simple. You're not going to convince a Boglehead otherwise, no matter how it's dressed. Now, if you want to try to time the markets, that is your choice. BH's d...
by Admiral
Wed Aug 08, 2018 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Help to evaluate Job Offer
Replies: 27
Views: 1811

Re: Help to evaluate Job Offer

Isn't the rule of thumb that it's not worth the move for less than 15-20% bump in salary (all other things being equal and assuming this is not a lower-salary-for-less-stress lifestyle choice)? Is this a firm offer? I would absolutely make your concerns clear to the HR person or whomever and say tha...
by Admiral
Wed Aug 08, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of contributing to 401k?
Replies: 61
Views: 3871

Re: Pay off mortgage instead of contributing to 401k?

It can be both. Most people who have carried a mortgage and used the extra cash flow to invest have done far better than they would have by paying down or saving up to buy with cash. It's certainly part of the reason that I'm now retired and sitting on a substantial portfolio. Any factual statistic...
by Admiral
Wed Aug 08, 2018 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Would you pay this mortgage off?
Replies: 51
Views: 4110

Re: Would you pay this mortgage off?

This is your situation: You are paying down a 4% loan while not maximizing your 457 (or 403b plan, I think you have a typo so it's hard to tell which one), which (with a presumably pre-tax contribution) would save you, what, 22%? Or whatever your marginal federal tax rate is. This is precisely the w...
by Admiral
Tue Aug 07, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of contributing to 401k?
Replies: 61
Views: 3871

Re: Pay off mortgage instead of contributing to 401k?

I agree with KlangF that what is likely the worst choice is to take SS earlier than FRA because one has depleted their savings by paying off a mortgage. I would keep it and keep saving as much as possible. That said, you might also consider working another year or two, if possible, before retirement...
by Admiral
Thu Jul 26, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on prioritizing 401k, mortgage and/or 529
Replies: 23
Views: 2200

Re: Thoughts on prioritizing 401k, mortgage and/or 529

All of you have been so helpful! I really appreciate your advice. So going forward, I will max all retirement accounts and see how much this will drain my taxable account each year (assuming salary goes up with inflation and wife continues to stay at home). Last question: if our household income in...
by Admiral
Thu Jul 26, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage on Upcoming Home Purchase
Replies: 12
Views: 1778

Re: Mortgage on Upcoming Home Purchase

If you cleared over $300k on your existing home sale, I would not be stressing over $3800. What I WOULD do is pay more down so the new loan is a) lower and the interest is b) less. If you do that then all the math in the world won't make a difference about your $3800...you'll be saving money. W/o kn...
by Admiral
Thu Jul 26, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on prioritizing 401k, mortgage and/or 529
Replies: 23
Views: 2200

Re: Thoughts on prioritizing 401k, mortgage and/or 529

If you have 150k in a taxable account you are unlikely to be able to get college aid thru FAFSA anyway, so that doesn't seem like a big worry. You should be a) maxing tax deductible retirement space before paying an extra cent on your mortgage and b) maxing tax deductible retirement space before put...
by Admiral
Tue Jul 24, 2018 1:11 pm
Forum: Personal Consumer Issues
Topic: Are laminate floors better-wearing than real hardwood?
Replies: 36
Views: 2721

Re: Are laminate floors better-wearing than real hardwood?

Your question was: Are laminate floors better-wearing than real hardwood? The answer is an unequivocal "no." Laminate is cheaper. That is it. Good hardwood boards are 3/4" thick tongue and groove. Engineered hardwood is typically 1/2" thick, with the hardwood of choice on top of a layer of cheaper w...
by Admiral
Tue Jul 24, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Legacy across generations......
Replies: 66
Views: 4155

Re: Legacy across generations......

Personally I feel like leaving money to (minor) grandchildren is not a great plan, unless it is held in trust until they are at least 25 if not older. The money should go to their parents...if the kids are minors the parents should be deciding how it's spent (or not spent) anyway. Also let's keep in...
by Admiral
Mon Jul 23, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Investing with a Developer
Replies: 48
Views: 3543

Re: Investing with a Developer

Why does the developer even need your money? If developer already owns the land and is subdividing, AND has made the lots buildable, why not just pre-sell the homes to buyers and then let them pay for the construction, while developer takes money off the top as a GC. Or developer just gets a bridge/...
by Admiral
Sun Jul 22, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Reevaluating mortgage payoff strategy
Replies: 63
Views: 6049

Re: Reevaluating mortgage payoff strategy

^^^ Er, what? In either case you have a fixed monthly payment. If you don't pay it, they foreclose. The issue is not that you carry a mortgage and don't make the payment. The issue is using your EXCESS capital (above and beyond what you MUST pay) to either invest or to pay off the loan, which peopl...
by Admiral
Sun Jul 22, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Reevaluating mortgage payoff strategy
Replies: 63
Views: 6049

Re: Reevaluating mortgage payoff strategy

This is a situation where 'inverting' the decision could be insightful. If you owned your home free and clear, would you take out a 15 year mortgage at 2.625% on it? Nitpickers will note that this isn't a precise inversion because the OP doesn't have all of the money in hand to pay off the mortgage...