Search found 70 matches

by sippyCUP
Mon May 08, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Federal job, "military time buyback" for pension
Replies: 22
Views: 2978

Re: Federal job, "military time buyback" for pension

OP, another reason to do this ASAP is to get moved into Leave category 6 instead of category 4 (i.e. six hours of leave per pay period). While HR should be able to do this solely based on your DD-214, good luck with that. I actually did just that, was able to break into 6-hour-land using a couple o...
by sippyCUP
Sun May 07, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Federal job, "military time buyback" for pension
Replies: 22
Views: 2978

Re: Federal job, "military time buyback" for pension

Hey all, I really appreciate all your replies! I think I am going to go with the "sooner rather than later" approach and forgo the arbitrage per your suggestions. I would really beat myself up if I missed some procedural change and/or new legislation that ate my lunch :oops: .

Thank you again,
Eric
by sippyCUP
Sat May 06, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Federal job, "military time buyback" for pension
Replies: 22
Views: 2978

Federal job, "military time buyback" for pension

This is a fairly basic question so apologize if this sounds silly. I just want to make sure I'm not overlooking something very important! I am a fairly recent (2 year) federal employee who did about 8 years in the military. I am eligibile for the FERS pension when I retire, and if I "buy-back" my mi...
by sippyCUP
Thu Oct 02, 2014 5:15 pm
Forum: Investing - Theory, News & General
Topic: my review of my HSA with Saturna brokerage
Replies: 170
Views: 50546

Re: my review of my HSA with Saturna brokerage

I guess I'm bumping a couple month old thread, but I'm trying to wrap my mind around whether Saturna would be a good choice for me. Seems like a lot of people are treating HSA's as bonus 401k's and paying for med expenses out of pocket, which is not bad per se, but my situation is a little different...
by sippyCUP
Mon Mar 10, 2014 9:30 pm
Forum: Personal Investments
Topic: rebalancing my Roth
Replies: 3
Views: 884

Re: rebalancing my Roth

I basically determined that exiting my positions in the foreign bond fund BWX and foreign REIT WPS will cost me at most $575 and $230 respectively - I say at most because I'm using the spread from market close ($3/$4) which although these are low volume ETF's, I'm not sure that is necessary what the...
by sippyCUP
Sat Mar 08, 2014 11:36 am
Forum: Personal Investments
Topic: rebalancing my Roth
Replies: 3
Views: 884

Re: rebalancing my Roth

ETF's in use: BND: yahoo Vanguard Total International Bond ETF BWX:SPDR Barclays International Treasury Bd IPE: SPDR Barclays TIPS VNQ: Vanguard REIT Index ETF WPS: iShares International Developed Property and, I am considering swapping BWX for... BNDX: Vanguard Total Intl Bd Idx ETF and I am consid...
by sippyCUP
Fri Mar 07, 2014 9:17 pm
Forum: Personal Investments
Topic: rebalancing my Roth
Replies: 3
Views: 884

rebalancing my Roth

Hey all, Just got back from a deployment and it's time to invest my 2014 Roth contribution. Since I started investing in 2008, a few new Vanguard ETF's have come out which have perked my interest - particularly VNQI to replace WPS and BNDX to replace BWX which have lower ER's. Age: 27 Target Equity/...
by sippyCUP
Thu Oct 31, 2013 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Planning on leaving, how to think about shoring up cash
Replies: 3
Views: 1302

Re: Planning on leaving, how to think about shoring up cash

Hey guys, thanks for your responses. as for staying in the military and doing part time on the MBA, it's not really its achievable in my particular field. The GI Bill won't cover everything at an elite school, it would be about 50,000 dollars out of pocket total over two years. I think I'm willing t...
by sippyCUP
Thu Oct 31, 2013 3:49 am
Forum: Personal Finance (Not Investing)
Topic: Planning on leaving, how to think about shoring up cash
Replies: 3
Views: 1302

Planning on leaving, how to think about shoring up cash

Hey all, Long time follower, I have been dutifully socking away in a Roth IRA, TSP, and taxable for the last 5 years. I'm 27, military, make about 85k/yr as of last month. Looking at getting out and working in consulting for about a year and then getting an MBA with my GI Bill. Rough figures: Roth: ...
by sippyCUP
Fri Jul 22, 2011 11:36 am
Forum: Personal Finance (Not Investing)
Topic: watar damage, property management goons, and the landlord
Replies: 4
Views: 973

Eric, let the handyman do his job which doesn't include relationships with landlords. A certified letter raises the stakes and you are a new renter. Just tell him/her the problem. DO NOT tell him you moved pipes or holes or anything, just that you noticed this and won't use the washer of course but...
by sippyCUP
Fri Jul 22, 2011 10:39 am
Forum: Personal Finance (Not Investing)
Topic: watar damage, property management goons, and the landlord
Replies: 4
Views: 973

watar damage, property management goons, and the landlord

Hi all, Just moved into a lovely 3 bedroom home in Washington state. We're renting, and a week it looks like we have our first major issue. Last night we discovered standing water in our utility room and the moulding loose from the wall against the washer. Apparently the drain hose from the washer w...
by sippyCUP
Wed Mar 23, 2011 11:10 am
Forum: Personal Finance (Not Investing)
Topic: first time homebuyer w/ roommates, does this make sense?
Replies: 16
Views: 2491

So if I hold on to the property for >5 years and rent out to tenants from 3 onward, it does make sense. The cons are that I would probably be working through a property manager from afar, so I would have minimal ability to personally verify the condition of the property.
by sippyCUP
Wed Mar 23, 2011 9:53 am
Forum: Personal Finance (Not Investing)
Topic: first time homebuyer w/ roommates, does this make sense?
Replies: 16
Views: 2491

Given the unanimous response, I'm probably going to stop investigating the buy option. Any devil's advocates though?
by sippyCUP
Tue Mar 22, 2011 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: first time homebuyer w/ roommates, does this make sense?
Replies: 16
Views: 2491

I have definitely heard the 5 year point is the threshold between renting and buying, but does that conventional wisdom hold up even if I manage to have the entire mortgage paid every month by my roommates?
by sippyCUP
Tue Mar 22, 2011 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: first time homebuyer w/ roommates, does this make sense?
Replies: 16
Views: 2491

first time homebuyer w/ roommates, does this make sense?

Hi all, I hesitated to post this on Bogleheads since it's primarily an investing forum, but all the mortgage forums I investigated were mind-numbing in their analysis (for instance, on one forum the primary counsel I received was that if I fail to make mortgage payments, the lender will foreclose on...
by sippyCUP
Wed Jul 21, 2010 9:10 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Thanks for the responses the last few days. I had to take a breather to study for a test, but I've been catching up on the thread this morning. A lot of the discussion here is due to ambiguity about sippycup's goals and expectations. If the goal is to increase leverage then the slightly more expensi...
by sippyCUP
Sun Jul 18, 2010 4:56 pm
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

David Grabiner's explanation of two equivalent choices is quite straightforward. If you take out a loan to buy $25,000 in stock it costs $750 per year. If you sell $25,000 of bonds to buy stock it costs only $418 per year. Why would anyone choose the first? Especially considering that the first is ...
by sippyCUP
Sun Jul 18, 2010 2:07 pm
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

-You are invested in the TSP G Fund. This pays the yield of intermediate term Treasuries, but has no term risk. The interest rate for a loan of a few years is pretty close to the current G Fund yield. But the combination of a loan at a fixed interest rate, and an equal investment in the G Fund carr...
by sippyCUP
Sun Jul 18, 2010 2:02 pm
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Re: taking out 3% loan to invest

Think of this loan as a negative bond investment. I haven't heard the loan/ negative bond analogy before, but I halfway understand it conceptually. However, if I decide to get the loan, I could budget in the loan balance as a negative bond in my calculation of equity%/bond% and still maintain 80/20...
by sippyCUP
Sun Jul 18, 2010 8:02 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Current credit cards were closed or you just couldn't open new ones? I can say the one big downside to taking out a lot of debt relative to your income is your credit score may drop. Mine tanked following my loans (summer of 2008) and I was subsequently cut off from all credit cards for over a year ...
by sippyCUP
Sun Jul 18, 2010 7:56 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Sure, I definitely will. To those who say what I'm proposing is a terrible idea based on the risks I assume, I understand where you're coming from. I'm just more of a numbers guy. If I knew that my expected return from playing blackjack were 55%, I'd be in the casino every night, albeit not betting ...
by sippyCUP
Sun Jul 18, 2010 7:45 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Rubber stamp no, probe my assumptions yes. Generally, you should only invest money in stocks that are not needed for 10 years or more. The money to pay back this loan is needed in 5. So, there is a mismatch of loan and repayment funds and this would not be a good idea, just on that point alone. Also...
by sippyCUP
Sun Jul 18, 2010 7:38 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Yup, I am, and will continue to max out those accounts.
superthan34 wrote:Another good question is if you max out your tax deferred opportunities. If you aren't maxing out the tsp right now than you should definitely take advantage of this offer and put as much as you can into the tsp.
by sippyCUP
Sat Jul 17, 2010 1:17 pm
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

xerty, what are the tax issues? will the loan count as income, or are you referring to whether or not interest would be deductable? Two things: - Look at the book lifecycle investing. Basically explains a strategy similar to your. However, they recommend investing in levered funds instead of taking ...
by sippyCUP
Sat Jul 17, 2010 12:30 pm
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Brad, that is exactly it. If I borrow, I won't be selling after 5 years, and if i don't borrow, I would be spending the loan repayments on stock investments anyway. So the purpose of the loan is to enjoy the postulated returns of the next 5 years. BTW I found out how to extrapolate to 5 years. Take ...
by sippyCUP
Sat Jul 17, 2010 12:16 pm
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

I dunno, maybe I need to pay a visit to their sole branch in Texas and start asking tough questions. :x I know the government has a program military/exmilitary for really cheap home loans, but this is the best rate on a personal loan that I can get to my knowledge. USAA gives everybody else 0% loans...
by sippyCUP
Sat Jul 17, 2010 11:55 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Re: taking out 3% loan to invest

I'm getting the loan from USAA, but I don't think I'm going to have enough other tax exempt expenses to exceed the standard deduction. For reference, my marginal rate is 15% Hey all, I am contemplating taking out a $25k loan at 2.99% repaid monthly over 5 years to invest in stocks How are you gettin...
by sippyCUP
Sat Jul 17, 2010 11:52 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Can't believe I forgot about this! Thanks Imperabo!
Imperabo wrote:
CodeMaster wrote:Interest rate is 3%, inflation rate is around 2.5%, so your looking at a loss of 0.5% if your stocks only bring you back 5%.
Inflation isn't relevant. You pay back the loan in nominal dollars.
by sippyCUP
Sat Jul 17, 2010 11:37 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

Sorry, I failed to note that the 5% returns already has 3% inflation factored in. So it was 8% without accounting the effects of inflation, 5% real. Interest rate is 3%, inflation rate is around 2.5%, so your looking at a loss of 0.5% if your stocks only bring you back 5%. and even if it goes above ...
by sippyCUP
Sat Jul 17, 2010 10:58 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

fireh0t wrote:Statistics look fine. Idea looks like a bad one to me.
In that I'm taking a bet?

Edit: should help me with my credit score as well, though, to take out such a large loan and repay it. This will be my first loan.
by sippyCUP
Sat Jul 17, 2010 10:49 am
Forum: Personal Investments
Topic: taking out 3% loan to invest
Replies: 147
Views: 13930

taking out 3% loan to invest

Hey all, I am contemplating taking out a $25k loan at 2.99% repaid monthly over 5 years to invest in stocks. I figure assuming a 5% real return (after inflation), I am more likely to make money than not (though it's by no means guaranteed). I would like to get more opinions before I pull the trigger...
by sippyCUP
Tue Dec 29, 2009 9:53 am
Forum: Personal Investments
Topic: Recent Graduate, Investing Help Please
Replies: 5
Views: 1070

Yellowfin, a couple years ago I was where you are now. A few things I've learned since then: *Since your company isn't matching you in their 401k anyway (if you get a match take it!), it might make sense to contribute to a Roth IRA instead while you're young. The Roth contributions are taxed now, wh...
by sippyCUP
Tue Dec 29, 2009 9:38 am
Forum: Personal Investments
Topic: EE savings bond interest
Replies: 26
Views: 4045

Bad News: the representative could not tell me anything.

Good News: a "specialist" is going to call me back in 2-3 business days.

Will update if I learn anything!
by sippyCUP
Mon Dec 28, 2009 8:11 pm
Forum: Personal Investments
Topic: EE savings bond interest
Replies: 26
Views: 4045

Mel and figma,

I'm going to give them a call tomorrow and see what I find out, will let you all know what I learn. Ah, I love being on leave... plenty of time for financial planning!
by sippyCUP
Mon Dec 28, 2009 7:02 pm
Forum: Personal Investments
Topic: EE savings bond interest
Replies: 26
Views: 4045

Mel, I downloaded the bond wizard and input my bonds. I get the same information plus it tells me the yield in addition to the rate. The indicated rate for the aforementioned bond is 1.57% (same as the online calculator) with a 4.19% yield. Am I right in stating that this indicates that over the lif...
by sippyCUP
Mon Dec 28, 2009 4:23 pm
Forum: Personal Investments
Topic: EE savings bond interest
Replies: 26
Views: 4045

And what's weird is that the online calculator is the one which is quoting me the lowest rate... its "interest" field should be the actual interest being earned, since the backend should be privy to all appropriate information and be able to indicate whether I am earning the minimum or the higher ma...
by sippyCUP
Mon Dec 28, 2009 2:18 pm
Forum: Personal Investments
Topic: EE savings bond interest
Replies: 26
Views: 4045

EE savings bond interest

I may be overlooking something simple here, but right now I am confused. I recently received some EE savings bonds from my grandparents. Using the following site, I found their current rate of return - or so I thought: http://www.treasurydirect.gov/BC/SBCPrice For one of the bonds issued in 09/1993,...
by sippyCUP
Tue Sep 15, 2009 11:11 am
Forum: Personal Investments
Topic: bond in taxable space
Replies: 5
Views: 1206

Ooops, sorry all. Tax bracket is 25%.
by sippyCUP
Tue Sep 15, 2009 10:04 am
Forum: Personal Investments
Topic: bond in taxable space
Replies: 5
Views: 1206

bond in taxable space

Good Morning, I am in my mid-20's and invest in a TSP (no match, uniformed services), a Roth IRA, and a taxable account. I have set it up so that my TSP is a self-sufficient balanced portfolio, and my taxable and Roth IRA contain balanced allocations of equity and bonds, respectively. The taxable ac...
by sippyCUP
Thu Jan 22, 2009 1:58 pm
Forum: Investing - Theory, News & General
Topic: 401k historical contribution data?
Replies: 0
Views: 575

401k historical contribution data?

Hey all,

I was curious about the total American worker contributions to 401k plans each year since their inception, but failed to locate any such data on the Internet. Does anyone know if this data is available?

Thanks,
Eric
by sippyCUP
Tue Jan 20, 2009 1:35 pm
Forum: Investing - Theory, News & General
Topic: value investing - what is wrong with this picture?
Replies: 18
Views: 3955

I hadn't heard supertreat's explanation before, but if I understand supertreat and Henry together, higher cost-of-capital does not cause a value premium, but is responsible for volatility, leading to higher risk-adjusted returns. And Henry posits that any premium exceeding that suggested by the risk...
by sippyCUP
Mon Jan 19, 2009 4:44 pm
Forum: Personal Investments
Topic: tax-managed mutual vs etf
Replies: 12
Views: 2028

Hey Dan, Thanks for the reply. If by abandoning the emerging/small cap approach you mean selling at a loss, I can definitely assure you I won't be doing that :) . I'll continue to buy the risky stuff through the years, though gradually scaling back their allocations. I'm already down 40% since I sta...
by sippyCUP
Sun Jan 18, 2009 8:32 pm
Forum: Personal Investments
Topic: Portfolio rebalancing
Replies: 3
Views: 927

Portfolio rebalancing

What are your guys' thoughts on rebalancing? I know some people do it quarterly, but I have a spreadsheet that allows me to enforce in my portfolio's asset allocation with every purchase ($5, $2,000, whatever). What this ends up doing is making me buy more of the poorly performing stock and less of ...
by sippyCUP
Sun Jan 18, 2009 8:22 pm
Forum: Investing - Theory, News & General
Topic: value investing - what is wrong with this picture?
Replies: 18
Views: 3955

value investing - what is wrong with this picture?

I was reading this asset allocation guide - http://www.fundadvice.com/articles/buy-hold/the-ultimate-buy-and-hold-strategy.html - and found that the authors greatly favored value over growth equities based on historical data (1970-2007). What struck me about these years is that they coincide with th...
by sippyCUP
Sun Jan 18, 2009 7:48 pm
Forum: Personal Investments
Topic: tax-managed mutual vs etf
Replies: 12
Views: 2028

Hey Dan, I've had to take a hiatus from investing activities recently due to work, but I've been referring to your post the last couple weeks. I have a few questions. More specifically on your investments, I do not recommend international bonds, because the large currency risk negates the safety of ...
by sippyCUP
Tue Jan 06, 2009 2:17 pm
Forum: Personal Investments
Topic: tax-managed mutual vs etf
Replies: 12
Views: 2028

I would probably go with a small cap value fund instead of VB myself. I would choose VBR or IJS. Full disclosure: I own IJS at the present time. Hey livesoft, thanks for your reply. Why do you prefer the value fund? I am kind of wary of the whole "value/growth" distinction (which I know may sound w...
by sippyCUP
Tue Jan 06, 2009 2:08 pm
Forum: Personal Investments
Topic: tax-managed mutual vs etf
Replies: 12
Views: 2028

Re: I'm confused

Dan, thanks for your advice. Here is a more detailed description of my current portfolio: Emergency Fund: about 8K, going to pare down to about 2k with further investments Debt: zero Tax Filing: single Age: 22 Marginal Bracket: right on the lower edge of 25% Paper Worth (cash + investments): About $...
by sippyCUP
Tue Jan 06, 2009 1:29 pm
Forum: Personal Investments
Topic: tax-managed mutual vs etf
Replies: 12
Views: 2028

livesoft wrote:You should tax-loss harvest your VB if it is held in a taxable account. That way, you can get the government to help pay for your losses.
Opps, missed the boat on that. Maybe next year.
by sippyCUP
Mon Jan 05, 2009 11:44 pm
Forum: Personal Investments
Topic: tax-managed mutual vs etf
Replies: 12
Views: 2028

tax-managed mutual vs etf

When I started investing about half a year ago, I had less than the $10,000 necessary to buy VTMSX for my small cap portion (25% of my equities, I'm young and looking for volatility or at least its promise of gains therein). I now have about $10,000 in VB, but am wondering if switching to VTMSX woul...
by sippyCUP
Fri May 30, 2008 10:40 am
Forum: Personal Investments
Topic: In my taxable: taxable bonds and REITs?
Replies: 13
Views: 3102

I ended up not doing it because I had few enough shares that the $0.01 bid-ask spread did not bother me :D .