Search found 124 matches

by DoctorPhysics
Wed Aug 21, 2019 11:28 pm
Forum: Investing - Theory, News & General
Topic: tax efficiency of funds vs ETFS - better to stay the course than chase a few bp
Replies: 4
Views: 387

tax efficiency of funds vs ETFS - better to stay the course than chase a few bp

To all, I read quite a few discussions recently on what funds to pick for a taxable account. Quite a few folks claim that ETFs are *far* more tax-efficient than Mutual Funds. So I ran some simple calculations. Below is the tax-cost ratio for 1-year and 3-year extracted from the Morningstar website f...
by DoctorPhysics
Thu Aug 15, 2019 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Net-worth rule of thumb for house purchase?
Replies: 123
Views: 5940

Re: Net-worth rule of thumb for house purchase?

If I followed some 2.5x net worth rule before buying a house I would still be waiting to enter the housing market 7 years later in my VHCOL area. It can really depend on your circumstances, needs, job stability, housing area, and ability to take a risk. DoctorPhysics, And, why would that be a bad t...
by DoctorPhysics
Thu Aug 15, 2019 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Net-worth rule of thumb for house purchase?
Replies: 123
Views: 5940

Re: Net-worth rule of thumb for house purchase?

If I followed some 2.5x net worth rule before buying a house I would still be waiting to enter the housing market 7 years later in my VHCOL area. It can really depend on your circumstances, needs, job stability, housing area, and ability to take a risk. DoctorPhysics, And, why would that be a bad t...
by DoctorPhysics
Wed Aug 14, 2019 11:47 pm
Forum: Personal Finance (Not Investing)
Topic: Net-worth rule of thumb for house purchase?
Replies: 123
Views: 5940

Re: Net-worth rule of thumb for house purchase?

If I followed some 2.5x net worth rule before buying a house I would still be waiting to enter the housing market 7 years later in my VHCOL area.

It can really depend on your circumstances, needs, job stability, housing area, and ability to take a risk.
by DoctorPhysics
Wed Aug 14, 2019 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Net-worth rule of thumb for house purchase?
Replies: 123
Views: 5940

Re: Net-worth rule of thumb for house purchase?

Banks will figure out a LTV for you and approve a loan amount. Take 10-20% (or more) off that amount so you have cash flow to handle things. Don’t max out the loan because you can.
by DoctorPhysics
Wed Aug 14, 2019 9:03 am
Forum: Personal Finance (Not Investing)
Topic: "Negotiating" Salary
Replies: 74
Views: 5519

Re: "Negotiating" Salary

Interesting thread. Responding so I can follow.

Off the cuff idea - run an NPER formula in excel based on some reasonable assumptions with a goal to retire at some point in the future, and use that to figure out a starting salary :P
by DoctorPhysics
Fri Aug 09, 2019 3:40 pm
Forum: Personal Investments
Topic: VTI vs. FSKAX for Taxable Account
Replies: 14
Views: 1523

Re: VTI vs. FSKAX for Taxable Account

I use FSKAX in taxable, and a dab of ITOT also.

FSKAX has ER 0.015 while ITOT has 0.03.

I guess one could also consider both for tax loss harvesting pairs.
by DoctorPhysics
Thu Aug 08, 2019 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Negotiation Came to a Halt
Replies: 67
Views: 5075

Re: Real Estate Negotiation Came to a Halt

I would walk away. Difficult sellers will just have more difficulty ahead. I had same situation years ago. Seller wanted 500k, I offered 480k with 10k credit to fix various items, very fair based on comps. They insisted 500k. I went up 5k. Then they insisted 510k because of the credit. I walked. Thr...
by DoctorPhysics
Wed Aug 07, 2019 3:39 pm
Forum: Investing - Theory, News & General
Topic: Fidelity to shift billions of retirement assets into international stocks
Replies: 20
Views: 2397

Re: Fidelity to shift billions of retirement assets into international stocks

Remember 2009, when Fidelity shifted billions of retirement assets into commodities? 2018: Fidelity retirement funds take multiyear hit from commodities bet https://imgur.com/YlskzJV.png I have a Fidelity Target Date Index Fund. Should I be concerned? No. Fidelity freedom INDEX funds have NO commod...
by DoctorPhysics
Wed Aug 07, 2019 3:09 pm
Forum: Investing - Theory, News & General
Topic: Fidelity to shift billions of retirement assets into international stocks
Replies: 20
Views: 2397

Re: Fidelity to shift billions of retirement assets into international stocks

Remember 2009, when Fidelity shifted billions of retirement assets into commodities? 2018: Fidelity retirement funds take multiyear hit from commodities bet https://imgur.com/YlskzJV.png I have a Fidelity Target Date Index Fund. Should I be concerned? No. Fidelity freedom INDEX funds have NO commod...
by DoctorPhysics
Wed Aug 07, 2019 1:11 pm
Forum: Investing - Theory, News & General
Topic: Fidelity to shift billions of retirement assets into international stocks
Replies: 20
Views: 2397

Re: Fidelity to shift billions of retirement assets into international stocks

nisiprius wrote:
Wed Aug 07, 2019 12:17 pm
Remember 2009, when Fidelity shifted billions of retirement assets into commodities?

2018: Fidelity retirement funds take multiyear hit from commodities bet

Image
I have a Fidelity Target Date Index Fund.

Should I be concerned?
by DoctorPhysics
Wed Aug 07, 2019 12:10 am
Forum: Personal Investments
Topic: E-Trade Sold VUSXX @ $0.99998
Replies: 10
Views: 1996

Re: E-Trade Sold VUSXX @ $0.99998

I use Fidelity... here’s what they say on the matter...

“Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal).”

So for a 100k sale, you could be charged 1-3 dollars.
by DoctorPhysics
Thu Aug 01, 2019 1:35 pm
Forum: Investing - Theory, News & General
Topic: Anyone afraid of missing a RGD (Really Good Day)?
Replies: 30
Views: 3799

Re: Anyone afraid of missing a RGD (Really Good Day)?

Looks like a RGD and a RBD rolled into one.

Time in market, thanks for reiterating this today.
by DoctorPhysics
Tue Jul 30, 2019 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax settlement: how to file claim?
Replies: 147
Views: 12669

Re: Equifax settlement: how to file claim?

ddunca1944 wrote:
Sat Jul 27, 2019 4:57 pm
I filled it out but not spending it yet......

https://www.theverge.com/2019/7/26/8932 ... mpensation

Losing legal rights for pennies? Maybe better to write them to opt out of the settlement class.
by DoctorPhysics
Fri Jul 26, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Equifax settlement: how to file claim?
Replies: 147
Views: 12669

Re: Equifax Settlement Claims

Anyone consider opting out? It seems like the $250 I could get is a pittance for losing the right to sue and recover my money if my identity is stolen in the future. How do you anticipate your money being stolen in a way that's not easily recoverable? I've had fraudulent cc transactions and my 2.5k...
by DoctorPhysics
Fri Jul 26, 2019 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Equifax settlement: how to file claim?
Replies: 147
Views: 12669

Re: Equifax Settlement Claims

Anyone consider opting out? It seems like the $250 I could get is a pittance for losing the right to sue and recover my money if my identity is stolen in the future.
by DoctorPhysics
Thu Jul 25, 2019 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: MBA worth it?
Replies: 93
Views: 7131

Re: MBA worth it?

OP here, thank you for all your replies. To answer a few posters, yes - I have a Ph.D. in Applied Physics from a top 10 school. A little background on me and why I asked the question - "Is an MBA worth it?" I initially started in corporate R&D, transitioned with the project into a product division ...
by DoctorPhysics
Wed Jul 24, 2019 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: MBA worth it?
Replies: 93
Views: 7131

Re: MBA worth it?

OP here, thank you for all your replies. To answer a few posters, yes - I have a Ph.D. in Applied Physics from a top 10 school. A little background on me and why I asked the question - "Is an MBA worth it?" I initially started in corporate R&D, transitioned with the project into a product division t...
by DoctorPhysics
Sun Jul 21, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: MBA worth it?
Replies: 93
Views: 7131

Re: MBA worth it?

Hi there, just like the title says.. is an MBA worth it? They look very expensive, 75k/year to 200k/year if I read what I browsed correctly. So is an MBA worth it? As in a worthwhile investment on future career growth and likely income? Which MBA are you seeing that costs $200,000 a year? Apologies...
by DoctorPhysics
Sun Jul 21, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: MBA worth it?
Replies: 93
Views: 7131

Re: MBA worth it?

Hi there, just like the title says.. is an MBA worth it? They look very expensive, 75k/year to 200k/year if I read what I browsed correctly. So is an MBA worth it? As in a worthwhile investment on future career growth and likely income? Which MBA are you seeing that costs $200,000 a year? Apologies...
by DoctorPhysics
Sun Jul 21, 2019 12:00 am
Forum: Personal Finance (Not Investing)
Topic: MBA worth it?
Replies: 93
Views: 7131

MBA worth it?

Hi there, just like the title says.. is an MBA worth it? They look very expensive, 75k/year to 200k/year if I read what I browsed correctly.

So is an MBA worth it? As in a worthwhile investment on future career growth and likely income?
by DoctorPhysics
Fri Jul 19, 2019 11:11 am
Forum: Personal Consumer Issues
Topic: Do you buy cellphone outright or pay over 2 years?
Replies: 129
Views: 8210

Re: Do you buy cellphone outright or pay over 2 years?

I got 2 phones on a buy one get one with zero financing over a 2 year plan.

I can afford them outright but time value of money working for me is worth more.

I set them on auto pay and forget about it.
by DoctorPhysics
Wed Jul 17, 2019 12:16 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Re: Not Another Pay off the House or Invest...

Here is the situation that seems borderline: Mortgage: $388k @ 3.875% Years Left on Mortgage: 27 Tax Bracket and Filing Status: 24% MFJ Standard Deduction: $24,600 SALT Cap: $10,000 Available Deduction for Mortage Interest = $24,600 - $10,000 = $14,600 Mortage Interest Paid Last Year: $14,900 ... r...
by DoctorPhysics
Tue Jul 16, 2019 1:42 pm
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Re: Not Another Pay off the House or Invest...

milktoast wrote:
Tue Jul 16, 2019 12:23 pm
OP, I agree with your math.

There is liquidity risk with paying off the mortgage. But from the perspective of long term return, you can't get that rate from bonds right now.
Yep, off to the index funds I go :sharebeer
by DoctorPhysics
Tue Jul 16, 2019 10:15 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Re: Not Another Pay off the House or Invest...

OP, Do you max up your tax-deferred accounts? If not, how does it makes any sense paying 24% taxes to save 3+% mortgage interest? KlangFool I max the tax-deferred accounts already. DoctorPhysics, 1) How about Roth IRAs? 2) How big is your portfolio excluding the house? Is it safe to put more eggs i...
by DoctorPhysics
Tue Jul 16, 2019 8:50 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Re: Not Another Pay off the House or Invest...

OP, Do you max up your tax-deferred accounts? If not, how does it makes any sense paying 24% taxes to save 3+% mortgage interest? KlangFool I max the tax-deferred accounts already. DoctorPhysics, 1) How about Roth IRAs? 2) How big is your portfolio excluding the house? Is it safe to put more eggs i...
by DoctorPhysics
Tue Jul 16, 2019 8:31 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Re: Not Another Pay off the House or Invest...

KlangFool wrote:
Tue Jul 16, 2019 7:55 am
OP,

Do you max up your tax-deferred accounts? If not, how does it makes any sense paying 24% taxes to save 3+% mortgage interest?

KlangFool
I max the tax-deferred accounts already.
by DoctorPhysics
Tue Jul 16, 2019 8:30 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Re: Not Another Pay off the House or Invest...

Inflation is like 2% so the 3.875% is really like 1.875%. I wouldn't invest the extra payment in the market. Instead, put the extra payment in a bank account that pays >1.875%. I don't know of a bank account that is yielding 1.875% in real terms, let alone more. You can't account for inflation for ...
by DoctorPhysics
Mon Jul 15, 2019 11:56 pm
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2593

Not Another Pay off the House or Invest...

Here is the situation that seems borderline: Mortgage: $388k @ 3.875% Years Left on Mortgage: 27 Tax Bracket and Filing Status: 24% MFJ Standard Deduction: $24,600 SALT Cap: $10,000 Available Deduction for Mortage Interest = $24,600 - $10,000 = $14,600 Mortage Interest Paid Last Year: $14,900 ... ri...
by DoctorPhysics
Sat Jul 13, 2019 12:30 pm
Forum: Investing - Theory, News & General
Topic: Questions about unsettled funds and freeriding trade violations
Replies: 8
Views: 702

Re: Questions about unsettled funds and freeriding trade violations

This is easy to avoid, apply for margin on your brokerage account. You don’t have to use it and you won’t pay interest on margin so long as you have the cash credit from unsettled trade to cover.
by DoctorPhysics
Mon Jul 08, 2019 9:50 pm
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 28706

Re: Americans believe they need $1.7 million, on average, to retire

2.5 mil @ at 4% withdraw rate is 100k/year, 3% withdraw is 75k/year. I think 1.7 mil is too low, I am in a VHCOL area. What age are you retiring? Have you viewed the Social Security actuarial tables of longevity? Most people I know and relatives are included in that, even with advances in modern me...
by DoctorPhysics
Mon Jul 08, 2019 9:27 pm
Forum: Personal Consumer Issues
Topic: Reservations about purchasing a 16 year old house
Replies: 65
Views: 5090

Re: Reservations about purchasing a 16 year old house

Ask the seller for a good home warranty policy for 1 year Sure then renew it every year after that No. They are not worth it - even for the good ones, the list of exclusions is long and the max payout is tiny. Sure "everyone knows" somebody who's so glad they got one, but by the numbers it's compar...
by DoctorPhysics
Mon Jul 08, 2019 3:03 pm
Forum: Investing - Theory, News & General
Topic: Corporate Default Rates
Replies: 5
Views: 669

Re: Corporate Default Rates

They are clustered about what seems to be a shoddily formed normal distribution over a few years.

Could one use this behavior and exit corporate bonds when the default rate starts to rise? And then enter again when they start to fall? Market timing I am sure!
by DoctorPhysics
Mon Jul 08, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 28706

Re: Americans believe they need $1.7 million, on average, to retire

2.5 mil @ at 4% withdraw rate is 100k/year, 3% withdraw is 75k/year.

I think 1.7 mil is too low, I am in a VHCOL area.
by DoctorPhysics
Thu Jul 04, 2019 10:14 pm
Forum: Personal Consumer Issues
Topic: Reservations about purchasing a 16 year old house
Replies: 65
Views: 5090

Re: Reservations about purchasing a 16 year old house

Ask the seller for a good home warranty policy for 1 year Sure then renew it every year after that No. They are not worth it - even for the good ones, the list of exclusions is long and the max payout is tiny. Sure "everyone knows" somebody who's so glad they got one, but by the numbers it's compar...
by DoctorPhysics
Wed Jun 26, 2019 8:07 pm
Forum: Personal Investments
Topic: Stock / Bond Allocation Sweet Spot
Replies: 26
Views: 2319

Re: Stock / Bond Allocation Sweet Spot

You want to check out Markowitz efficient frontier. I will guess it is around 60/40 stock bond for most return vs minimum risk.
by DoctorPhysics
Wed Jun 19, 2019 3:19 pm
Forum: Personal Investments
Topic: tIRA to Roth conversion question
Replies: 5
Views: 486

Re: tIRA to Roth conversion question

What, if any complexity did I introduce to our future tax filings? Form 8606 . Try filling it out by hand now. Questions asked by tax software are often unclear, leading to erroneous entries on that form. You should know how it should look, and compare that to whatever tax software generates. Excel...
by DoctorPhysics
Wed Jun 19, 2019 1:32 pm
Forum: Personal Investments
Topic: tIRA to Roth conversion question
Replies: 5
Views: 486

Re: tIRA to Roth conversion question

Did not introduce any new complexity... you would get a 1099R next January for the conversion even if there had been no gain. The ~$25 in gain you had will be taxable as ordinary income, and if you go ahead and send along the ~$5 to the Roth it will be taxed as well. No big deal, your turbotax (or ...
by DoctorPhysics
Wed Jun 19, 2019 12:41 pm
Forum: Personal Investments
Topic: tIRA to Roth conversion question
Replies: 5
Views: 486

tIRA to Roth conversion question

I opened a tIRA for my wife, put $5,500 in cash, left it sit for a bit (I think 2 or 3 months), it gained about $25 dollars in interest then I opened the Roth and moved the tIRA funds over in whole. Somehow $5 dollars more of additional interest posted into the tIRA. What, if any complexity did I in...
by DoctorPhysics
Wed Jun 19, 2019 12:33 pm
Forum: Personal Consumer Issues
Topic: Best way to teach my 4 year old to be fluent in Spanish?
Replies: 53
Views: 3634

Re: Best way to teach my 4 year old to be fluent in Spanish?

I use an app called Duolingo. It’s free. I like it, it seems really effective. Its very interactive, like a simple game. Has listening, writing and speaking components. In a matter of weeks I’ve improved my abilities. I dare say if a 4 year old can use a tablet, this could also work. Thank you for ...
by DoctorPhysics
Mon Jun 17, 2019 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: With hindsight, what signs indicated you were about to lose your job?
Replies: 127
Views: 12451

Re: With hindsight, what signs indicated you were about to lose your job?

The biggest sign I have seen is when your direct boss, the person who presumably would be the one to fire you, suddenly begins to find all sorts of problems and flaws with your work. Flaws and problems that they never seemed to notice before, which usually result in some pretty uncomfortable and co...
by DoctorPhysics
Sun Jun 16, 2019 2:09 pm
Forum: Personal Consumer Issues
Topic: Best way to teach my 4 year old to be fluent in Spanish?
Replies: 53
Views: 3634

Re: Best way to teach my 4 year old to be fluent in Spanish?

I use an app called Duolingo. It’s free. I like it, it seems really effective. Its very interactive, like a simple game. Has listening, writing and speaking components.

In a matter of weeks I’ve improved my abilities. I dare say if a 4 year old can use a tablet, this could also work.
by DoctorPhysics
Sat Jun 15, 2019 6:40 pm
Forum: Personal Investments
Topic: Should I invest 100k into a total index or do it slowly
Replies: 58
Views: 6692

Re: Should I invest 100k into a total index or do it slowly

Yes, statistically lump sum wins over DCA, though for what it’s worth I DCA mostly myself.. Psychologically it helps me sleep at night and well given the recent volatility in the market, it seemed like the right thing to do. What I did specifically was invest a good sized chunk initially, then setup...
by DoctorPhysics
Sat Jun 15, 2019 2:28 pm
Forum: Personal Investments
Topic: CDARS - Can anyone share experience?
Replies: 7
Views: 1130

Re: CDARS - Can anyone share experience?

Is there a similar setup offered by brokerages for SiPC insured accounts? For example with Fidelity if I had funds spread across several holdings including the standard cash sweep fund SPAXX that exceeded the SiPC limits?
by DoctorPhysics
Sat Jun 15, 2019 1:59 pm
Forum: Personal Consumer Issues
Topic: My Bad Experience With Angie's List
Replies: 36
Views: 4362

Re: My Bad Experience With Angie's List

I learned you won’t get the best service or price from those pay to play rating sites. The worst pricing I got was from folks advertising their services through those sites, for example I had 3 whole house repipe quotes and 2 were within 1k of each other while the 3rd was nearly double and would cha...
by DoctorPhysics
Fri Jun 14, 2019 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Currently Viable Refinance Options when 30-YR Mortgage is Currently at 3.875%?
Replies: 23
Views: 1844

Re: Currently Viable Refinance Options when 30-YR Mortgage is Currently at 3.875%?

Have similar rates and terms. i’d keep the one you have as it affords greater budget flexibility. You can always accelerate payments to bring the mortgage pay off date closer or recast it. At about that price, approximately every extra $75/month shaves off a year (eg $150/month would shave off 2 yea...
by DoctorPhysics
Fri Jun 14, 2019 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Professional work titles
Replies: 30
Views: 2780

Re: Professional work titles

You and me both. Similar pay, stagnant title and approaching 40. I feel title is important enough to a degree because I want folks to take my experience and my resume seriously.
by DoctorPhysics
Wed Jun 12, 2019 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: How much is your guys’ fees for your 401k?
Replies: 96
Views: 5605

Re: How much is your guys’ fees for your 401k?

$100/year by Fidelity. I honestly don’t think it’s right because they already steer us towards Fidelity funds in the 401k. Feels like double dipping.
by DoctorPhysics
Mon Jun 10, 2019 4:12 pm
Forum: Personal Investments
Topic: How are “high earners” (HCEs) eligible for Mega-backdoor Roth?
Replies: 12
Views: 1302

Re: How are “high earners” (HCEs) eligible for Mega-backdoor Roth?

I think you can do a tIRA, then move it into a Roth IRA, no taxes in so far as I know if you have zero growth and zero initial balance in the tIRA before moving to Roth. This is called a back door Roth and you would only be able to do 5.5k for yourself and then for your significant other for a tota...