Search found 38 matches

by VartAndelay
Fri Jan 08, 2021 11:09 pm
Forum: Personal Investments
Topic: What is an appropriate percentage of net worth to spend on a house?
Replies: 19
Views: 1859

Re: What is an appropriate percentage of net worth to spend on a house?

I think it makes a huge difference whether the house is being bought with a mortgage or free & clear. And in the mortgage case, there are established percentages of income for what's considered an acceptable mortgage payment and you could work back from that with interest rates to estimate the ...
by VartAndelay
Fri Jan 08, 2021 10:51 pm
Forum: Personal Investments
Topic: What is an appropriate percentage of net worth to spend on a house?
Replies: 19
Views: 1859

What is an appropriate percentage of net worth to spend on a house?

For example if someone has $250k total how much should he budget to buy a house? Or what if he has $1 million? Or even more?
by VartAndelay
Fri Jan 08, 2021 9:31 pm
Forum: Investing - Theory, News & General
Topic: How much money does a 30 year old need to retire?
Replies: 60
Views: 6141

How much money does a 30 year old need to retire?

If he wants to live in a major US city and not have to live like a hermit.
by VartAndelay
Fri Jan 08, 2021 7:19 pm
Forum: Investing - Theory, News & General
Topic: What's to stop the US markets from following a similar path from Japan Nikkei since the late 1980s?
Replies: 36
Views: 2908

What's to stop the US markets from following a similar path from Japan Nikkei since the late 1980s?

What's to stop the US markets from following a similar path from Japan Nikkei since the late 1980s? If I have my information right I believe that market suffered a huge drop that took a very long time to even recover.
by VartAndelay
Fri Jan 08, 2021 6:20 pm
Forum: Investing - Theory, News & General
Topic: Question about possible dependent
Replies: 5
Views: 276

Re: Question about possible dependent

Not true. They would have to be disabled if they are 24 and older. See IRS.gov https://www.irs.gov/faqs/filing-requirements-status-dependents/dependents/dependents-2 But perhaps as Qualifying Relative and not as a Qualifying child. It seems the gross income amount is $4300 for 2020 per the above li...
by VartAndelay
Fri Jan 08, 2021 6:18 pm
Forum: Personal Investments
Topic: Capital gains question on covered calls
Replies: 3
Views: 197

Capital gains question on covered calls

If you sell a covered call out of the money on January 8, 2021, and the expiration date is December 31, 2021, and the call goes unexercised on December 31, then when is this short-term capital gains considered to be earned? January 8 or December 31?
by VartAndelay
Fri Jan 08, 2021 6:11 pm
Forum: Investing - Theory, News & General
Topic: Question about possible dependent
Replies: 5
Views: 276

Re: Question about possible dependent

Not true. They would have to be disabled if they are 24 and older. See IRS.gov https://www.irs.gov/faqs/filing-requirements-status-dependents/dependents/dependents-2 But perhaps as Qualifying Relative and not as a Qualifying child. It seems the gross income amount is $4300 for 2020 per the above li...
by VartAndelay
Fri Jan 08, 2021 6:09 pm
Forum: Investing - Theory, News & General
Topic: Question about possible dependent
Replies: 5
Views: 276

Re: Question about possible dependent

livesoft wrote: Fri Jan 08, 2021 6:04 pm Not true. They would have to be disabled if they are 24 and older. See IRS.gov

https://www.irs.gov/faqs/filing-require ... pendents-2
Thank you. I am talking about the qualifying relative test though in this case.
by VartAndelay
Fri Jan 08, 2021 6:01 pm
Forum: Investing - Theory, News & General
Topic: Question about possible dependent
Replies: 5
Views: 276

Question about possible dependent

I heard something that if a guy is over 25 years old and lives with his parents and makes under about $5000 in income for the year then the parents can claim the son as a dependent under the qualifying relative test. But what is considered income in this case? If he does not have a job so he earns 0...
by VartAndelay
Fri Nov 06, 2020 3:10 pm
Forum: Investing - Theory, News & General
Topic: Estimating early retirement threshold?
Replies: 27
Views: 2650

Estimating early retirement threshold?

How would one even go about estimating the amount of money needed to retire early given the massive uncertainty in huge factors such as healthcare costs and taxes decades from now?
by VartAndelay
Mon Nov 02, 2020 5:10 pm
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 16015

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

000 wrote: Mon Nov 02, 2020 5:08 pm The namesake of the site, John Bogle, literally suggested 0% international was appropriate and >20% was probably too much.
Wow that is interesting and quite surprising to me. But yet it still clearly goes against the Boglehead principles.
by VartAndelay
Mon Nov 02, 2020 5:05 pm
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 16015

How on earth can overweighting US stock over international stock possibly be considered Boglehead?

It goes against the principles of Bogleheads. How on earth can anything but market cap weighting of total world taking I believe somewhat close to 50-50 US and International (although it may now have diverged a bit from 50-50) be considered Boglehead. It literally makes no sense. And yet here I freq...
by VartAndelay
Thu Oct 22, 2020 11:52 am
Forum: Personal Investments
Topic: Financial moves to make while not working?
Replies: 2
Views: 384

Financial moves to make while not working?

I might not work (and thus receive no income) for all of 2021. Are there any financial/investment related things I could do during this year to maximize any advantages that might be related to having 0 income? I have money in Traditional 401k and Roth 401k (from previous employer) and also Roth IRA ...
by VartAndelay
Fri Oct 16, 2020 12:22 pm
Forum: Investing - Theory, News & General
Topic: Has the growing trend of blindly buying index funds caused market inefficiency?
Replies: 52
Views: 6656

Has the growing trend of blindly buying index funds caused market inefficiency?

In the recent years there has been a growing trend of workers allocating some of their money each paycheck into an automatic investment into a stock index fund. I don't know the exact stats but from my anecdotal experience it seems like a lot of people are doing this. This means they are not giving ...
by VartAndelay
Mon Oct 05, 2020 1:11 pm
Forum: Personal Investments
Topic: Is it a no-brainer to rollover Traditional 401k and convert some to Roth IRA in no-income year?
Replies: 3
Views: 465

Is it a no-brainer to rollover Traditional 401k and convert some to Roth IRA in no-income year?

I may not work in 2021 and thus receive 0 income that year. I have money right now in a Traditional 401k from a previous job. If I end up not working in 2021, is there any downside to rolling over that 401k money into a Traditional IRA and then converting some of it to a Roth IRA? Wouldn't this give...
by VartAndelay
Mon Sep 21, 2020 10:14 pm
Forum: Personal Investments
Topic: Trying to figure out my estimated taxes for 2020 is driving me insane!
Replies: 22
Views: 2726

Re: Trying to figure out my estimated taxes for 2020 is driving me insane!

Thank you all so much for the help. I am still having trouble trying to figure out whether or not I need to pay AMT though.
by VartAndelay
Mon Sep 21, 2020 7:01 pm
Forum: Personal Investments
Topic: Trying to figure out my estimated taxes for 2020 is driving me insane!
Replies: 22
Views: 2726

Trying to figure out my estimated taxes for 2020 is driving me insane!

I recently incurred large capital gains and have been trying to figure out about how much federal tax I'll owe for 2020 (no state tax). Here is my situation, and these numbers are final for 2020 so I can use them for the entire year. I will earn no more wages. 28 years old single no dependent not an...
by VartAndelay
Tue Sep 15, 2020 1:51 pm
Forum: Personal Investments
Topic: Which are taxed first long-term capital gains or short-term capital gains?
Replies: 9
Views: 1020

Which are taxed first long-term capital gains or short-term capital gains?

Ignore things like deductions/exemptions, net investment income tax, etc. to make the example simpler. Example for single filer in 2020: $100k wages $300k long-term capital gains $200k short-term capital gains If long-term is taxed first: First calculate taxes on wages Long-term gains are then from ...
by VartAndelay
Thu Sep 03, 2020 1:09 pm
Forum: Personal Investments
Topic: Oh no! I contributed to a Roth IRA but I might make over the income limit for 2020
Replies: 1
Views: 346

Oh no! I contributed to a Roth IRA but I might make over the income limit for 2020

Unfortunately like a fool I contributed directly to a Roth IRA for 2020 because I thought I would definitely be under the limit but now it looks like I might not be. Is there any way for me to somehow change this to a backdoor Roth without any penalty? Also how would I properly report this on my 202...
by VartAndelay
Thu Aug 27, 2020 11:31 pm
Forum: Personal Investments
Topic: Do medical expense have to be incurred while on an HSA-eligible HDHP to be eligible for HSA reimbursement?
Replies: 2
Views: 382

Do medical expense have to be incurred while on an HSA-eligible HDHP to be eligible for HSA reimbursement?

I am on a HDHP with an HSA. However soon I will no longer be on this plan and will no longer be eligible for an HSA. But I will still have my old HSA funds. In this situation, are new medical expenses incurred after no longer being eligible for an HSA still considered eligible medical expenses that ...
by VartAndelay
Wed Aug 26, 2020 12:02 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

Thank you to all for the great responses. You have really given me a lot of useful things to think about. One thing I want to clarify though since a lot of people are saying they think I do not have high risk tolerance since I am worried about being down a little bit in bonds after a few weeks. I un...
by VartAndelay
Wed Aug 26, 2020 11:59 am
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

...I remember I bought this particular bond fund about 3 or 4 weeks ago. So that is the time period in which I have lost money. I would have been better off in stocks or in cash instead... Over periods of weeks , in a bond fund with a duration of 6.48 years , of course you will sometimes lose money...
by VartAndelay
Tue Aug 25, 2020 5:51 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

...I remember I bought this particular bond fund about 3 or 4 weeks ago. So that is the time period in which I have lost money. I would have been better off in stocks or in cash instead... Over periods of weeks , in a bond fund with a duration of 6.48 years , of course you will sometimes lose money...
by VartAndelay
Tue Aug 25, 2020 5:36 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

...I have lost money on it... Over what time period, exactly, have you lost money on it? (And I hope you are looking at total return and not price per share). Bonds are not bank accounts. This is an intermediate-term bond fund with a duration of 6.48 years. As such, you should be looking at holding...
by VartAndelay
Tue Aug 25, 2020 5:25 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

I am currently holding cash + gold and no bonds. Thank you. I really wish I had done that because I bought the bond fund a few weeks ago I believe. And I check and it seems like almost every day that fund is down meanwhile the stock market is up. I would have been better off if I had stayed in cash...
by VartAndelay
Tue Aug 25, 2020 5:17 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

I am currently holding cash + gold and no bonds. Thank you. I really wish I had done that because I bought the bond fund a few weeks ago I believe. And I check and it seems like almost every day that fund is down meanwhile the stock market is up. I would have been better off if I had stayed in cash...
by VartAndelay
Tue Aug 25, 2020 5:13 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 12037

As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?

I recently put my non-stock money into FUAMX. I heard it was a good bond fund. But now I have been reading that some people say bonds are horrible investments these days because of the unique economic situation the world is now in. Is this true? Is FUAMX a good bond fund or not? Is it even worth hol...
by VartAndelay
Wed Aug 12, 2020 12:45 pm
Forum: Personal Investments
Topic: Is FUAMX a good bond fund?
Replies: 3
Views: 695

Is FUAMX a good bond fund?

I recently put my non-stock money into FUAMX. I heard it was a good bond fund. But now I have been reading that some people say bonds are horrible investments these days because of the unique economic situation the world is now in. Is this true? Is FUAMX a good bond fund or not? Is it even worth hol...
by VartAndelay
Tue Jul 28, 2020 12:02 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Traditional or Roth?
Replies: 14
Views: 1192

Bonds in Traditional or Roth?

How do you decide whether to hold shares of Total Bond Fund in a Traditional retirement account or a Roth retirement account?
by VartAndelay
Mon Jul 06, 2020 4:05 pm
Forum: Personal Investments
Topic: Good treasury bond fund at Fidelity?
Replies: 16
Views: 1245

Re: Good treasury bond fund at Fidelity?

I want to hold something similar to the common Three-fund portfolio, but I do not want to hold corporate bonds. Instead I would rather hold only treasury bonds. Because of this I am looking for 1 bond fund at Fidelity where I would hold all of my fixed income. Does anyone know of a good fund for th...
by VartAndelay
Mon Jul 06, 2020 3:43 pm
Forum: Personal Investments
Topic: Good treasury bond fund at Fidelity?
Replies: 16
Views: 1245

Re: Good treasury bond fund at Fidelity?

I want to hold something similar to the common Three-fund portfolio, but I do not want to hold corporate bonds. Instead I would rather hold only treasury bonds. Because of this I am looking for 1 bond fund at Fidelity where I would hold all of my fixed income. Does anyone know of a good fund for th...
by VartAndelay
Mon Jul 06, 2020 3:36 pm
Forum: Personal Investments
Topic: Good treasury bond fund at Fidelity?
Replies: 16
Views: 1245

Good treasury bond fund at Fidelity?

I want to hold something similar to the common Three-fund portfolio, but I do not want to hold corporate bonds. Instead I would rather hold only treasury bonds. Because of this I am looking for 1 bond fund at Fidelity where I would hold all of my fixed income. Does anyone know of a good fund for thi...
by VartAndelay
Fri Jul 03, 2020 7:07 pm
Forum: Investing - Theory, News & General
Topic: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?
Replies: 15
Views: 1171

Re: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?

Vulcan wrote: Fri Jul 03, 2020 7:02 pm
VartAndelay wrote: Fri Jul 03, 2020 6:54 pm For those wishing to accurately construct a total world stock portfolio, what is the definitive percentage composition between U.S. stocks and international stocks?
100% VTWAX

:beer
That's a great answer, but unfortunately I cannot access that fund in my 401(k).
by VartAndelay
Fri Jul 03, 2020 7:01 pm
Forum: Investing - Theory, News & General
Topic: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?
Replies: 15
Views: 1171

Re: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?

60/40 US/ex-US is about the current mix. Thank you. Is there a definitive source people can follow to periodically rebalance their portfolios? For example, if someone wants to hold a total world portfolio by separately holding shares of a U.S. stock index fund and an international stock index fund,...
by VartAndelay
Fri Jul 03, 2020 6:54 pm
Forum: Investing - Theory, News & General
Topic: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?
Replies: 15
Views: 1171

What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?

I have seen some total world index funds which hold 60% U.S. stocks and 40% international stocks. However I have also seen people reference the total world stock composition as 50% U.S. stocks and 50% international stocks. For those wishing to accurately construct a total world stock portfolio, what...
by VartAndelay
Tue Aug 25, 2015 11:21 am
Forum: Personal Investments
Topic: Are these included in MAGI calculation?
Replies: 2
Views: 417

Are these included in MAGI calculation?

1. Federal tax refund
2. Roth IRA dividends
3. 401(k) dividends

I know these are tax-free or tax-deferred, but are they included in MAGI calculation for Roth IRA limits?
by VartAndelay
Tue Aug 25, 2015 12:02 am
Forum: Personal Investments
Topic: New investor confused by TLH
Replies: 2
Views: 574

New investor confused by TLH

With the recent downswing, I am thinking about tax loss harvesting for the first time and want to make sure this is the right process. I have VTSAX in a taxable account. 1. Exchange shares of VTSAX for shares of VLCAX. 2. 31+ days later, exchange the shares of VLCAX back into VTSAX. Does that look o...
by VartAndelay
Wed Mar 04, 2015 12:40 am
Forum: Personal Investments
Topic: 23 year old looking for medical plan advice
Replies: 2
Views: 551

23 year old looking for medical plan advice

I need to choose a medical plan, and I have narrowed things down to two choices -- an HSA plan or an HRA plan. Ideally, I would love to choose the HSA plan. However, I am almost certain to meet my out-of-pocket max this year, and this plan carries a higher limit. If I go with the HSA plan, I would p...