Search found 392 matches

by Grogs
Fri May 18, 2018 10:44 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5353

Re: Rob Arnott:index Investors Buy High, Sell Low

Aren't VG and the other large fund companies allowed to swap stocks between funds? Seems like that would take most of the wind out of the sails of people trying to front run the S&P500 index. When company number 500 drops out of the index, they can transfer most of it to a completion index. Likewise...
by Grogs
Thu May 17, 2018 8:20 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10773

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Yep. Cheer up, eventually you can hit $24k/year! Frankly, we’ve never had the income to save significantly more. This is one of those threads where a popcorn-eating emoji would be useful. This will be the first year I can actually contribute the pre-tax max ($18.5k). I'm doing an additional 2% into...
by Grogs
Thu May 17, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10773

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Yeah, it's the Mega backdoor. See the Bogleheads wiki article about this. It's not available in most 401k plans. It requires the plan to allow after-tax contributions, and ideally allow in service rollovers to either Roth 401k or Roth IRA (or both). The details on how to perform a rollover differ b...
by Grogs
Wed May 16, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: How do companies that offer 401k profit?
Replies: 9
Views: 1477

Re: How do companies that offer 401k profit?

Im curious, how does a company like Vanguard that offers a large corporation a 401k portfolio make a profit off of said corporations employees buying into the 401k? I'm assuming you're asking something like this: " I work for Employer A, and our retirement plan is held/administered at Organization ...
by Grogs
Wed May 16, 2018 5:08 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10773

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

I'm not at a point yet where I can contribute the 51k or so I would need to hit 55k after the company match. The 55k includes all of your contributions as well. So if you're putting in 18.5k and getting 4k match, then the remaining is 32.5k. Understood. I was just saying that right now my total ann...
by Grogs
Tue May 15, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10773

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

I'm not at a point yet where I can contribute the 51k or so I would need to hit 55k after the company match. The 55k includes all of your contributions as well. So if you're putting in 18.5k and getting 4k match, then the remaining is 32.5k. Understood. I was just saying that right now my total ann...
by Grogs
Tue May 15, 2018 7:05 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10773

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

I'm not at a point yet where I can contribute the 51k or so I would need to hit 55k after the company match. For the past couple of years, I've been doing 18k to the 401k pretax, then $5500 to a Roth IRA and somewhere around $15k to a regular brokerage account. I may rethink that strategy going forw...
by Grogs
Sat Mar 10, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: How Index ETF is considered liquid when capital gain tax is ready to hit on liquidation
Replies: 10
Views: 1221

Re: How Index ETF is considered liquid when capital gain tax is ready to hit on liquidation

Epsilon 2. Yes i believe there is a way to wash the unrealized capital gain by being temporary permanent resident on capital gain tax free country, but not sure yet. But this is not abut me. This is about general bogleheads investment strategy and i see that a US person will pays 20% rate for long ...
by Grogs
Fri Mar 09, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Contribution Amounts...Percentage vs Specific
Replies: 15
Views: 864

Re: Contribution Amounts...Percentage vs Specific

We would then miss out on matching contributions in November and December because she is not eligible to contribute more than the maximum. Right, but everything she did contribute was properly matched it would seem, so how does she lose any money by this? Unless I'm interpreting things incorrectly,...
by Grogs
Sat Mar 03, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Fully Fund IRA before Taxable or Avg over year?
Replies: 10
Views: 684

Re: Fully Fund IRA before Taxable or Avg over year?

This. If investing >$66K/yr I assume you are doing a backdoor Roth, otherwise no other form of IRA really makes sense. I think that you may have misread OP's question. I think that he is talking about investing $5500/year, not per month (which is $66K/year). I disagree. Look at the title of the thr...
by Grogs
Sat Mar 03, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: CD - Early Withdrawal and Reinvest
Replies: 11
Views: 993

Re: CD - Early Withdrawal and Reinvest

With a six month EWP, I think you're going to be hard pressed to get a high enough interest rate to break even. Without breaking out the calculator, I think you would need to get a CD with at least 3% to come out better than just holding the CD to maturity. 10-yr treasuries are running around 2.85% ...
by Grogs
Wed Feb 28, 2018 8:48 pm
Forum: Investing - Theory, News & General
Topic: Why have Emergency Funds?
Replies: 54
Views: 4315

Re: Why have Emergency Funds?

It’s really as asset allocation question. You could include your cash fund as part of your non stock allocation. Instead of being 60/40 maybe you are 60/35/5. The difference in returns for cash and bonds is not nearly as dramatic as stocks and cash, and part of your cash fund could include accumula...
by Grogs
Sun Feb 25, 2018 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Fast IRS refund
Replies: 41
Views: 4043

Re: Fast IRS refund

I try to always get a small refund on my taxes. For whatever reason, when I try to have a tax payment withdrawn from my checking account, the payment will bounce and I have to mail a check via snail mail. Refunds TO my checking account go through no problem. I normally try to tune my withholding so ...
by Grogs
Sat Jan 27, 2018 5:27 pm
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 25439

Re: 401k millionaires

My plan administrator (Schwab) gives statistics for where my 401k ranks against my peers, defined as age +/- 2 year's and salary +/- 5%. Is that on their website somewhere? I access my plan on workplace.schwab.com and it's right on the main (account overview) page down at the bottom. It looks like ...
by Grogs
Sat Jan 27, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 25439

Re: 401k millionaires

My plan administrator (Schwab) gives statistics for where my 401k ranks against my peers, defined as age +/- 2 year's and salary +/- 5%. For someone in their mid-40s with a salary in the $120ks, here are some rough numbers: n = 3500 401k balance: Median $95k $150k balance: 60th percentile $300k bala...
by Grogs
Sun Dec 24, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Help Me Fill Out a New W4 (getting married, multiple jobs)
Replies: 2
Views: 314

Re: Help Me Fill Out a New W4 (getting married, multiple jobs)

Congrats on the upcoming wedding. If her name is Tammy, I recommend an iron-clad pre-nup. :D Your plan sounds pretty good to me. Ideally, you only want to make changes on one W4. Using the largest paycheck gives you the most flexibility, i.e., you can withhold a lot in the final paycheck if you sudd...
by Grogs
Sat Dec 23, 2017 11:43 am
Forum: Personal Finance (Not Investing)
Topic: 401k Roth v 401k (new tax changes)
Replies: 27
Views: 3022

Re: 401k Roth v 401k (new tax changes)

I've been pondering this myself. Right now I'm doing 100% pretax on the 401k, and my analysis had indicated the Roth vs traditional would be a wash. Now my entire $18k contribution has dropped from 28% to 24%. I hope to have a pension that fills the 12/15% bracket, so the lowest I would expect on th...
by Grogs
Thu Dec 21, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 58819

Re: Tax Bill Omnibus Thread

Extra payments go toward the next month(s) due in some cases if you do not specify that the extra payment(s) is for the principal. Unless you have an interest only loan, 4% of 400k mortgage isn't 16K interest. A chunk of that is principle... His payment might be higher than $16k but a 4% loan on a ...
by Grogs
Thu Dec 21, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 58819

Re: Tax Bill Omnibus Thread

How can you submit a new W4 in Jan when it appears there will be no legal W4s to submit? Must get done before year end then. I submitted a new W4 yesterday. I'm strongly considering this action myself. I'd rather be headed towards an underpayment right now and then have to add extra withholding a l...
by Grogs
Tue Dec 19, 2017 1:57 pm
Forum: Investing - Theory, News & General
Topic: Who missed out on maximizing 401k?
Replies: 62
Views: 6324

Re: Who missed out on maximizing 401k?

The way to avoid this going forward is to use a percentage that may amount to be slightly above $18K. The employer system will automatically cut off at the maximum permitted by law. Does every employer do this though? But I did call Vanguard (who runs my company's 401k) and confirmed they will do t...
by Grogs
Mon Oct 23, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Letter from CC company (Discover) re: current income
Replies: 31
Views: 6639

Re: Letter from CC company (Discover) re: current income

Financial institutions are supposed to "know their customers" so they have been increasing efforts to get info like this. However there is no rule that you have to respond nor that they have to actually have this info on file to continue to do business with you. I routinely ignore such requests. If...
by Grogs
Sat Oct 21, 2017 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 IRS tax information
Replies: 28
Views: 4947

Re: 2018 IRS tax information

Much obliged; my spreadsheet has been adjusted accordingly. Now I wonder where I can find a 2018 paycheck calculator to work out the exact withholding amounts. :annoyed You're likely looking for IRS pub 15, which doesn't come out until late December (last year it was Dec 21). AFAIK, Pub 15 is based...
by Grogs
Sat Oct 21, 2017 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: new 401(k) limits announced
Replies: 88
Views: 14504

Re: new 401(k) limits announced

Like others, my company doesn't stop contributions at $18k. They put anything over the limit in as after tax contributions. I'd rather just just invest in my VG taxable account than after tax 401k contributions, so I usually tune my contributions to hit the limit +/- about $100. That's as close as I...
by Grogs
Sun Jul 23, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Delaying pension benefits - what would you do?
Replies: 21
Views: 3303

Re: Delaying pension benefits - what would you do?

But, what do you want to do? Do you want to work? Do you want to travel? I planned to work longer, then I got a new boss that made really bad decisions. I decided that I would rather retire earlier, and I have not regretted a reduced pension to get out faster. But, if I had kept my old boss, I woul...
by Grogs
Sat Jul 22, 2017 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone set portfolio goals and rewards?
Replies: 35
Views: 2739

Re: Does anyone set portfolio goals and rewards?

I like bobcat2's funded ratio https://www.bogleheads.org/forum/viewtopic.php?t=219878 as a metric. I was thinking as long as one was at least at target or maybe 1.x target, some set rewards may be appropriate. Another option would be some combination of metrics, such as meeting the funding ratio an...
by Grogs
Sat Jul 22, 2017 8:12 am
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 8838

Re: 4% mortgage rate vs 2.5% BND yield

For me, I find the comparison between having $100k in cash and a $100k mortgage vs. no cash and no mortgage a compelling one. Admittedly, those are rather extreme cases, but I think the overall point about the value of liquidity is useful. I agree that the decrease in expenses will be nice once it'...
by Grogs
Fri Jul 21, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone set portfolio goals and rewards?
Replies: 35
Views: 2739

Re: Does anyone set portfolio goals and rewards?

I also have no idea what ppg is. Regardless, investing is a means to an end, not the end itself. If you feel like you're ahead of where you need to be and want to have a little fun, I see no harm. It's too easy to calculate how much every little cost you incur will subtract from your eventual retire...
by Grogs
Fri Jul 21, 2017 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 8838

Re: 4% mortgage rate vs 2.5% BND yield

For me, I find the comparison between having $100k in cash and a $100k mortgage vs. no cash and no mortgage a compelling one. Admittedly, those are rather extreme cases, but I think the overall point about the value of liquidity is useful. I agree that the decrease in expenses will be nice once it's...
by Grogs
Fri Jul 21, 2017 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: if spreadsheet with account balances goes to hackers?
Replies: 11
Views: 1346

Re: if spreadsheet with account balances goes to hackers?

Yeah, I don't see any direct threat. Only thing I could for see would be if you have large balances and someone decided it made you a good target for a phishing scam to try and get the account numbers and such. Passwording the file does seem like a really easy deterrent. Someone could crack the pass...
by Grogs
Fri Jul 21, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Lexus to Camry, invest difference
Replies: 30
Views: 3426

Re: Lexus to Camry, invest difference

Yeah, I agree with the others. No way I would buy a new Lexus, but a two year old one at the price of a Camry seems to be a pretty good trade off. The high cost you paid buying new is already lost, and there's no getting that back now. The new Camry would have 2 extra years on the warranty, but you'...
by Grogs
Sat Jul 15, 2017 9:34 am
Forum: Personal Finance (Not Investing)
Topic: What am I missing here? [I'm a bachelor]
Replies: 51
Views: 4221

Re: What am I missing here? [I'm a bachelor]

Looked at a house today, $240,000 with a 30 year fixed at 3.75% APR I will pay $270,000 in interest/$510,000 total principle+interest at the end of the 30 years. Add in all the home maintenance, and the taxes. This is why I rent. I have no kids, no wife. Don't need it. The white picket fence Americ...
by Grogs
Sat Jul 15, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: What am I missing here? [I'm a bachelor]
Replies: 51
Views: 4221

Re: What am I missing here? [I'm a bachelor]

You might buy a condo on the secondary market, 1500 sq ft or so, not too small. That should appreciate in value over the next decade if you're lucky... Never considered that but raises my eyebrow. May be a good compromise. I bought a condo 30 years ago. Series of 3 story buildings. Very modest. No ...
by Grogs
Fri Jul 14, 2017 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 14246

Re: Do you count vehicle equity in net worth?

I don't bother. I think cars (and furnishing and miscellaneous household goods) are all assets and rightly are part of my networth. If I were to expire and my estate liquidated, they would certainly be part of the proceeds available to my heirs. But it is more effort than it is worth to calculate a...
by Grogs
Fri Jul 14, 2017 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Do you consider business travel to be a perk or a burden?
Replies: 117
Views: 9581

Re: Do you consider business travel to be a perk or a burden?

For me, as an academic, travel tends to be more of perk rather than a burden. I have a small budget for conferences and I can usually choose which conference to go to. Sometimes my boss wants me to go to a particular conference but that comes out of her budget. One thing I have never understood is ...
by Grogs
Thu Jul 13, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Do most mortgages have a prepayment penalty?
Replies: 10
Views: 1135

Re: Do most mortgages have a prepayment penalty?

Question - why would you want to? You have to pay heft fees upfront to get the mortgage. If you got the cash to pay off the mortgage then why take it out in the first place? Maybe the cash is coming from the sale of a current home? Trying to set up a contingency sale is a lot more hassle, and could...
by Grogs
Thu Jul 13, 2017 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do you consider business travel to be a perk or a burden?
Replies: 117
Views: 9581

Re: Do you consider business travel to be a perk or a burden?

If it's a requirement of the job when you take it then it is built in to your pay. You can't knowingly accept a salaried job with X% travel and then complain about not being compensated for it. Excellent point. If viewed as a perk or burden doesn't really matter. If it is a requirement of a job tha...
by Grogs
Thu Jul 13, 2017 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 6344

Re: When to max out 401k (Aspiring Early Retiree)

$600k house with 20% down is probably at least $3k per month PITI. That's almost half your gross income. Even assuming you could get financing, you'd be massively house poor and likely unable to save anything for retirement at that point. I think you need to either try to keep renting or find a smal...
by Grogs
Thu Jul 13, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: portfolio growth - compounding vs savings
Replies: 15
Views: 2005

Re: portfolio growth - compounding vs savings

There is an ugly side to the 'dog days' theory though. When you're just starting out, your portfolio will grow pretty much every month just based on the contributions. For example, if you're dropping in $1k per month to a $20k portfolio, your balance will probably go up unless it's an exceptionally ...
by Grogs
Wed Jul 12, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: 100k milestone
Replies: 49
Views: 7066

Re: 100k milestone

I didn't know it at the time, but I hit $100k in 2014 right around my 41st birthday. Three years later, I'm knocking on $300k. About 2/3 of that growth is new contributions, the rest is from returns. For my investments, I hit $100k last August, then promptly fell below the following day, and bounced...
by Grogs
Wed Jul 12, 2017 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Do you consider business travel to be a perk or a burden?
Replies: 117
Views: 9581

Re: Do you consider business travel to be a perk or a burden?

I find it to be a bit of both. I tend to travel 4-6 times per year, so not too terribly onerous. I would never want to be one our our program reps who travel 50%+. My specific pros and cons are: Pros: - We travel under government travel rules, so most fees (bags, parking, taxis, etc) get reimbursed....
by Grogs
Thu Jun 22, 2017 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Please explain how Medicare Billing works? Update
Replies: 114
Views: 12403

Re: Please explain how Medicare Billing works?

Pssst. By the way. Apple, penny, table. Also, DEFPOTEC. ???? I'm just as confused. The apple, penny, table thing is the short term memory test. They tell you three words, then a short time later ask you what they were. I'm well short of Medicare age, but I used to be enrolled in a program at work t...
by Grogs
Thu Jun 22, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Step-up basis of inherited rental properties
Replies: 10
Views: 2514

Re: Step-up basis of inherited rental properties

... Originally, 10 were owned jointly with my mother, and 8 were in my father's name only. Based on the advice of our realtor, he filed quit claim deeds on those eight properties to make my mother a joint owner on all 18 a few weeks before he died. ... Why did he seek legal advice from the real est...
by Grogs
Wed Jun 21, 2017 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Step-up basis of inherited rental properties
Replies: 10
Views: 2514

Re: Step-up basis of inherited rental properties

Thanks everyone for you condolences. We do intend to consult an accountant and an estate attorney, but finding a 'good' one is sometimes easier said than done. I'm hoping that by learning as much as I can beforehand we can filter out the ones that just talk the good talk. @ Kevin M - Thanks for answ...
by Grogs
Tue Jun 20, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Step-up basis of inherited rental properties
Replies: 10
Views: 2514

Step-up basis of inherited rental properties

Hi all, My father recently passed away, and my mother and I are struggling to get our heads around the rental properties that he left behind. My mother did some of the simple bookkeeping like entering rents into the ledgers, and I have done some maintenance on the properties, but my father always ha...
by Grogs
Fri Jun 09, 2017 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Housing is too expensive.
Replies: 49
Views: 8326

Re: Housing is too expensive.

Compared to the rest of the world housing in the U.S.is cheap. Even in the HCOL areas. As the world becomes smaller maybe U.S. prices will continue to rise until they are just as expensive as other counties. What are you talking about? What exactly is your definition of "the rest of the world"? Pro...
by Grogs
Fri Jun 09, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 3353

Re: Small tax refund or owing taxes?

I prefer to get a small refund. For whatever reason, when I OWE tax and put in the routing and account number during e-file it bounces. That happened two years ago and I ended up just sending in a check by mail. When I get a refund, the direct deposit goes through no problem. Since I can calculate m...
by Grogs
Wed Jun 07, 2017 4:32 am
Forum: Investing - Theory, News & General
Topic: E*Trade Account Closure fees
Replies: 17
Views: 3466

Re: E*Trade Account Closure fees

Something in the $50-100 range seems pretty common. I've seen posts from people leaving EJ who had seven different accounts with them and were charged a closure fee on each one. I believe Fidelity will reimburse you for these if you transfer money into them, but I've never heard of VG doing that.
by Grogs
Sat Jun 03, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Is there a way on earth to reduce SS taxes?
Replies: 54
Views: 6182

Re: Is there a way on earth to reduce SS taxes?

For someone who's 38, one realistically should apply a factor of about 75% to account for the trust fund being exhausted before they begin benefits. Of course this may still change, but under the current system that's what will happen. As for avoiding SS tax, I didn't pay any while I was in grad sch...
by Grogs
Sat Jun 03, 2017 7:15 am
Forum: Investing - Theory, News & General
Topic: Using limit orders to limit losses
Replies: 21
Views: 2465

Re: Using limit orders to limit losses

I think Brexit provides a pretty good example of how this could have gone wrong, even in the absence of something like a flash crash. On Thursday night before the election (6/23/16), VTI closed at 107.98. Let's say you put in a limit order for a 5% loss, or 102.58. VTI dropped about 3% by the Friday...
by Grogs
Fri Jun 02, 2017 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: IRA vs. 401k
Replies: 9
Views: 988

Re: IRA vs. 401k

I would just go ahead and keep contributing to the Roth if you're going to be contributing to a traditional 401k. You'll be in a low tax bracket this year, and you'll probably hit the traditional limit fairly quickly once you start getting salary increases. The Roth phase out starts at $118k for a s...