Search found 411 matches

by magicrat
Wed Oct 17, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??
Replies: 15
Views: 2102

Re: Why not pick Vanguard Intermediate-Term Tax Exempt Fund??

I'm trying to pick a bond fund to round things out. What is the difference between the Vanguard Intermediate Term Bond fund and the variety that comes tax exempt? Why would a person not pick the tax exempt variety? Thanks! Depending on your marginal tax rate, the after-tax return on a taxable bond ...
by magicrat
Wed Oct 17, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - getting conflicting info about taxes
Replies: 7
Views: 617

Re: Roth conversion - getting conflicting info about taxes

Assuming this is pre-tax money being converted, you will owe taxes on the converted amount only.
by magicrat
Tue Oct 16, 2018 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Job Offer – bonus details provided after acceptance
Replies: 26
Views: 1783

Re: Job Offer – bonus details provided after acceptance

i'm not sure why they won't share some of the details about how the bonus if calculated. I've gotten tidbits of it verbally but recruiter (internal HR) keeps alluding that it's basically in the "head" right now of my would-be boss's boss. That plus the bonus structure is changing going into 2019. S...
by magicrat
Mon Oct 15, 2018 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Next Steps
Replies: 3
Views: 307

Re: Portfolio Next Steps

I got married about a month ago and things have finally settled. Now we need to figure out best way to combine finances. We have agreed to share everything. We are both 25 His Gross 2018 income--212,000 Her Gross 2018 income--25,000 Cash accounts- 28,000 His Retirement Accts Roth-14,300 (maxed) 401...
by magicrat
Mon Oct 15, 2018 7:55 am
Forum: Investing - Help with Personal Investments
Topic: Convert TIRA to Roth, nondeductible
Replies: 19
Views: 1114

Re: Convert TIRA to Roth, nondeductible

Do you have an active 401k where you can contribute pre-tax money? If so, will it take a rollover contribution? If yes to both, you may be able to roll the pre-tax portion of your IRA to the 401k and the after-tax portion to your Roth IRA. This is likely better than paying tax now.
by magicrat
Fri Oct 12, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Tax saving/investing tips for onetime bonus
Replies: 10
Views: 531

Re: Tax saving/investing tips for onetime bonus

0. Establish an emergency fund to your satisfaction 1. Contribute to your 401k up to any company match 2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. 3. Max HSA 4. Max Traditional IRA or Roth (or backdoor Roth) based on income level 5. Max 401k (if 401k ...
by magicrat
Wed Oct 10, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: seek advice on investing money that is currently sitting in my saving account
Replies: 5
Views: 569

Re: seek advice on investing money that is currently sitting in my saving account

ventureandy wrote:
Wed Oct 10, 2018 9:18 pm
Then we see what's been going on in recent weeks
What happened?
by magicrat
Wed Oct 10, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Millennials & Money Data
Replies: 25
Views: 3121

Re: Millennials & Money Data

I don't really understand what you're asking, but suggest that you ignore random surveys of affluent millennials and focus on your own planning. Do you have a plan? Does it make sense for you and can you stick to it? Are you saving what your plan requires to meet your goals?
by magicrat
Wed Oct 10, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Logic of CD laddering to pay down mortagage & which CD?
Replies: 3
Views: 299

Re: Logic of CD laddering to pay down mortagage & which CD?

Do after-tax CD rates exceed your after-tax mortgage rate?
by magicrat
Wed Oct 10, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Unwinding and transferring positions
Replies: 23
Views: 1249

Re: Unwinding and transferring positions

For the taxable account: First, sell all of the stocks with losses. Second, sell stocks with gains until your realized losses have been used up. You should do this by selling the stocks with the highest cost basis first. Third, invest the proceeds into your selected funds according to your target as...
by magicrat
Tue Oct 09, 2018 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Unwinding and transferring positions
Replies: 23
Views: 1249

Re: Unwinding and transferring positions

As a quick refresher, I have had a bad experience with a broker over the past 18 months, who managed to lose a nice chunk of $$$ in a rock solid market. I've been very nervous about self-managing the account, but bit the bullet today and converted our Fidelity account away from Professionally Manag...
by magicrat
Tue Oct 09, 2018 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: tlh vfwax to vtiax if both have losses? min to tlh?
Replies: 6
Views: 470

Re: tlh vfwax to vtiax if both have losses? min to tlh?

freckles01 wrote:
Tue Oct 09, 2018 3:20 pm
i haven't tlh yet but bought VFWAX for VTIAX and VLCAX for VTSAX in preparation.

both sets- VFWAX / VLCAX and VTIAX /VTSAX are set up for automatic purchase 1x month about 2 weeks apart.
What is your rationale for buying replacement funds in advance of tax-loss harvesting? I don't understand.
by magicrat
Wed Oct 03, 2018 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Take the hit or ride it out?
Replies: 21
Views: 3641

Re: Take the hit or ride it out?

There's no such thing as a normal exchange rate.
by magicrat
Tue Oct 02, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: My biggest mistake - market timing
Replies: 62
Views: 8969

Re: My biggest mistake - market timing

Make sure that your husband knows that if you invest in cash the real value of your portfolio is likely to decline by ~40-50% over the next 20-25 years.
by magicrat
Mon Oct 01, 2018 7:55 am
Forum: Investing - Help with Personal Investments
Topic: Where to put my play money, in taxable or sheltered?
Replies: 9
Views: 782

Re: Where to put my play money, in taxable or sheltered?

Definitely taxable so you can at least harvest losses when this inevitably goes south.
by magicrat
Sun Sep 30, 2018 11:09 am
Forum: Investing - Help with Personal Investments
Topic: Pay 22.85% taxes to diversify?
Replies: 26
Views: 1905

Re: Pay 22.85% taxes to diversify?

Sure, reducing fees is a great thing to do. What has she asked you for help with?
by magicrat
Wed Sep 26, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: SIL - 25x vs firecalc
Replies: 39
Views: 4165

Re: SIL - 25x vs firecalc

- we've received a lot of advice from friends and counselors to walk away. We're not going to do that, we think there is a compromise where her son, who is 23, will provide financial and emotional support and we'll work with him if necessary. We're hoping by the time she runs out of money, he'll be...
by magicrat
Tue Sep 25, 2018 3:27 pm
Forum: Investing - Theory, News & General
Topic: Inflation and withdrawal from portfolio
Replies: 23
Views: 920

Re: Inflation and withdrawal from portfolio

My brother in law is retired. He told me he uses 33% of what his portfolio generates ( cap gains , dividends and interest) every year for his expenses. He reinvests all capital gains and a portion of the dividends and interest. We are trying to figure out what you are saying here. How does his port...
by magicrat
Tue Sep 25, 2018 3:04 pm
Forum: Investing - Theory, News & General
Topic: Inflation and withdrawal from portfolio
Replies: 23
Views: 920

Re: Inflation and withdrawal from portfolio

He reinvests all capital gains and a portion of the dividends and interest. He lives on a portion of the dividends and interest only - he takes no capital gains from the account. That amount he lives on equates to 33% of the average portfolio returns. His portfolio AA is 40/60. That doesn't sound r...
by magicrat
Tue Sep 25, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Investment types in a no-growth environment
Replies: 35
Views: 2729

Re: Investment types in a no-growth environment

If you can't get growth you have to get share. I'd invest in things that give me a higher share of whatever they participate in and which are hard for others to take or compete away from me. Direct investments in farmland and natural resources come to mind.
by magicrat
Thu Sep 20, 2018 12:54 pm
Forum: Personal Consumer Issues
Topic: BlackFriday Shopping - what do you usually buy? (other than Christmas gifts)
Replies: 36
Views: 2563

Re: BlackFriday Shopping - what do you usually buy? (other than Christmas gifts)

The only thing I"ll be buying on black friday is takeout so I can stay home.
by magicrat
Wed Sep 19, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: Stock market scenarios
Replies: 12
Views: 956

Re: Stock market scenarios

If I knew the future, I would short the market at it's peak and cover the short at it's bottom. But I don't know the future, so I'll follow my IPS, 75% stocks, 25% bonds, 40% of stocks international, and re-balance as necessary.
by magicrat
Mon Sep 17, 2018 12:58 pm
Forum: Investing - Theory, News & General
Topic: Is there such thing as saving TOO much?
Replies: 78
Views: 6931

Re: Is there such thing as saving TOO much?

tman9940 wrote:
Mon Sep 17, 2018 12:57 pm
magicrat wrote:
Mon Sep 17, 2018 12:56 pm
You can probably afford haircuts.
HAHA! Actually..the hair is thinning...so I just shave my head! No need to go to a barber if he is just going to do the same thing I can do in 10 minutes!
Fair enough!
by magicrat
Mon Sep 17, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: Is there such thing as saving TOO much?
Replies: 78
Views: 6931

Re: Is there such thing as saving TOO much?

You can probably afford haircuts.
by magicrat
Sat Sep 15, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: New Job 1 year 401k wait, advice?
Replies: 12
Views: 1433

Re: New Job 1 year 401k wait, advice?

How about Backdoor Roths?
by magicrat
Thu Sep 13, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: What do I do with my investments during a downturn/recession?
Replies: 24
Views: 2838

Re: What do I do with my investments during a downturn/recession?

viewtopic.php?f=1&t=245004&p=3842668#p3842668

You had a very similar post in March (above). It sounds to me like 90% equities is simply too aggressive for your personal risk tolerance, regardless of market conditions.
by magicrat
Wed Sep 12, 2018 1:06 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor roth vs Keeping company issued stock
Replies: 9
Views: 590

Re: Mega backdoor roth vs Keeping company issued stock

I don't see these issues as related. Yes, you should sell RSUs as soon as they vest. Yes, you should take advantage of backdoor Roth opportunities. I understand that it's not very boglehead'y of me to hold a single company' stock, but this is assuming I still wanted to hold my company's stock after...
by magicrat
Wed Sep 12, 2018 12:23 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor roth vs Keeping company issued stock
Replies: 9
Views: 590

Re: Mega backdoor roth vs Keeping company issued stock

I don't see these issues as related. Yes, you should sell RSUs as soon as they vest. Yes, you should take advantage of backdoor Roth opportunities.
by magicrat
Wed Sep 12, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Hypothetical Question - Market Timing
Replies: 43
Views: 2499

Re: Hypothetical Question - Market Timing

Whoa, ya I did the math wrong on those scenarios. Thanks for pointing that out. It’s late here in Texas :) I appreciate the feedback. The more I think about it, the more I’m leaning towards a 60/40 type portfolio until the next recession hits. Then I can just rebalance my account to my desired 90/1...
by magicrat
Sun Sep 09, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: I think my father has a gambling problem
Replies: 78
Views: 6831

Re: I think my father has a gambling problem

How old is he? Is cognitive decline a possibility?
by magicrat
Thu Sep 06, 2018 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: To Be or Not to Be...Married
Replies: 135
Views: 4908

Re: To Be or Not to Be...Married

Marriage is not a financial decision. I disagree! It is ALL about fiance, taxes, inheritance, estate. If it is only about love then one can commit to exclusive relationship, monogamy, without any ceremony, church, or religion. So does it follow that you would pick whom you marry (if at all) based o...
by magicrat
Thu Sep 06, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: To Be or Not to Be...Married
Replies: 135
Views: 4908

Re: To Be or Not to Be...Married

Marriage is not a financial decision.
by magicrat
Thu Sep 06, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: Wisdom Tree
Replies: 6
Views: 777

Re: Wisdom Tree

Kind of weird that they would advertise their "system" instead of just keeping quiet and making billions.
by magicrat
Thu Sep 06, 2018 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Invest for income?
Replies: 20
Views: 2100

Re: Invest for income?

Financial advisors love to dish their 4% “sell-as-you-go strategy” to retirees. These guys (who have not successfully retired yet themselves, by the way) say that you should supplement your dividend income by withdrawing 4% or so annually from your capital basis. This is not what the 4% rule is. Th...
by magicrat
Wed Sep 05, 2018 9:12 am
Forum: Investing - Theory, News & General
Topic: Can/should high yielding equities make up a *part* of a retirement portfolio for a little padding in bear markets?
Replies: 10
Views: 737

Re: Can/should high yielding equities make up a *part* of a retirement portfolio for a little padding in bear markets?

Money is money, it has to come from somewhere. Even acknowledging that PRDGX fell less than the others, it wouldn't have taken that much pressure off the bond component. Yes the money has to come from somewhere, but isn't one from the company's earnings and one from the underlying asset? No. Divide...
by magicrat
Wed Sep 05, 2018 8:30 am
Forum: Investing - Theory, News & General
Topic: Can/should high yielding equities make up a *part* of a retirement portfolio for a little padding in bear markets?
Replies: 10
Views: 737

Re: Can/should high yielding equities make up a *part* of a retirement portfolio for a little padding in bear markets?

I understand that focusing too much on yield leads to ignoring total returns, and I would not want to have a portfolio focused on yield. But what about a portion? Great idea. I'd suggest a portion that matches the portion in the overall market. You can accomplish this easily and at low cost with Va...
by magicrat
Tue Sep 04, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth conversion timeline
Replies: 10
Views: 578

Re: Backdoor Roth conversion timeline

You changed your dates in the OP. yeah, it wasn't correct initially... now that is it correct do you see any issues with this plan? I am just trying to cover my bases to make sure I am not mistaken about anything as the tax consequences for any errors are pretty stiff! I would roll in my existing I...
by magicrat
Tue Sep 04, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor roth question
Replies: 10
Views: 825

Re: Backdoor roth question

My wife has a small (few hundred dollar) traditional simple IRA from an employer that was opened this year. We also did a backdoor roth contribution for her this year. How do I reconcile this? Can we just cash out the simple, pay taxes on it, and be done? For tax purposes, the rollover will be deem...
by magicrat
Tue Sep 04, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Reducing Risk
Replies: 22
Views: 1247

Re: Reducing Risk

Scenario A. You pay $100 for a share of dividend paying stock. After one year it pays $3 dividend, your portfolio is worth $103. Scenario B. You pay $100 for a share of non-dividend paying stock. After one year it grows to $103. Your portfolio is worth $103. Why would you prefer A over B? If you fe...
by magicrat
Tue Sep 04, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Is it correct, not to make a non-tax deductible IRA contribution ?
Replies: 12
Views: 883

Re: Is it correct, not to make a non-tax deductible IRA contribution ?

Probably a bad idea but you really have to do some math and scenarios for your specific situation. Gains will be taxed at ordinary income rates when you withdrawal, instead of capital gains rates if you had contributed to a taxable account instead.
by magicrat
Tue Aug 28, 2018 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Help with investments to mirror total stock market index fund
Replies: 7
Views: 432

Re: Help with investments to mirror total stock market index fund

I've been reviewing my wife's 401k investments. After reading "The Bogleheads' Guide to the Three-Fund Portfolio" I'd like to change her investments from the current mix to the three fund portfolio. She does not have access to the Vanguard Total Stock Market Index Fund (VTSAX) within her 401k; howe...
by magicrat
Mon Aug 27, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review & LARGE Tax Loss Harvesting Question
Replies: 8
Views: 397

Re: Portfolio Review & LARGE Tax Loss Harvesting Question

I think a $130k emergency fund when you have $2.6mm is excessive, but to each his own.
by magicrat
Mon Aug 27, 2018 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: 401k rollover?
Replies: 6
Views: 357

Re: 401k rollover?

If the 0.5% fee works out to only $188, I would leave it there so you can continue backdoor roth contributions.
by magicrat
Thu Aug 23, 2018 10:11 am
Forum: Investing - Help with Personal Investments
Topic: What to do with cash in this market?
Replies: 34
Views: 3312

Re: What to do with cash in this market?

Hello, I have about $40k sitting in cash in my Roth IRA. It is in cash because I needed some extra cushion due to my real estate investments. However, I need this cushion less and less and would like to put this money to work. I know what the Bogleheads think of market-timing. Nonetheless, S&P500 j...
by magicrat
Tue Aug 21, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Open ROTH IRA's - when, where and how?
Replies: 14
Views: 752

Re: Open ROTH IRA's - when, where and how?

Vanguard, Fidelity, and Schwab are all fine. Best time of the year is now. Wouldn't bother with payroll deduction, easier to do it yourself.
by magicrat
Tue Aug 21, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard target date fund
Replies: 17
Views: 1728

Re: Vanguard target date fund

I am a passive investor, but gaining some knowledge through research. I've been tempted to go from 90/10 to 80/20 or 70/30 since the market is so high right now, but I guess that would be considered market timing. Then bumping stock percentage back up when market crashes. I don't want to tinker too...
by magicrat
Tue Aug 21, 2018 8:07 am
Forum: Investing - Help with Personal Investments
Topic: The 1 portfolio
Replies: 23
Views: 3097

Re: The 1 portfolio

passive-winning wrote:
Tue Aug 21, 2018 3:22 am


I don't think i'm good at handling the market in general.
This is a strong argument against 100% stocks.