Search found 424 matches

by Stormbringer
Tue Jan 16, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Considering PhD...but so much to consider...
Replies: 51
Views: 3285

Re: Considering PhD...but so much to consider...

Personally, I would start with the question "what do I want to do with my life?" and go from there. Once that is settled, you can figure out the money part.
by Stormbringer
Mon Jan 15, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Dow 30,000 S&P 3000, Nasdaq 10,000
Replies: 39
Views: 4446

Re: Dow 30,000 S&P 3000, Nasdaq 10,000

S&P 3000 is a chip shot from here. I've seen estimated 2018 earnings in the ballpark of $135 for the index. Slap a 23 p/e ratio on that and you get S&P 3100. Put a little multiple expansion on it and you can to 3500 pretty quick. Interest rates and inflation are still low. We have global synchronize...
by Stormbringer
Mon Jan 15, 2018 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Understanding the Great Recession Impact
Replies: 44
Views: 3264

Re: Understanding the Great Recession Impact

What am I missing? When people say something like "we lost half our retirement savings" in the recession, that often indicates a fundamental misunderstanding of investing -- they confuse market prices of assets with actual cash. If you have 10,000 shares of XYZ which is currently trading at $100 pe...
by Stormbringer
Mon Jan 15, 2018 7:18 am
Forum: Investing - Theory, News & General
Topic: Shares Are Wildly Overpriced. But Bonds May Be Even Worse
Replies: 35
Views: 5617

Re: Shares Are Wildly Overpriced. But Bonds May Be Even Worse

Anyone who says shares are "wildly overpriced" slept through finance class. Interest rates, which remain exceptionally low, have a significant impact on how you value a stream of cash flows: http://financeformulas.net/formulaimages/NPV%201.gif On top of the low interest rates, we have strong earning...
by Stormbringer
Mon Jan 15, 2018 7:02 am
Forum: Investing - Theory, News & General
Topic: 401K - best for biz w/ employees?
Replies: 3
Views: 477

Re: 401K - best for biz w/ employees?

We have W2 employees so unfortunately biz partner and I cannot go Solo 401K. What’s the next best thing we should look at? I’m thinking 401K that allows after tax contributions and yearly IRA conversions. Is that the “next best thing” (to a solo 401k) that a biz owner with employees should consider...
by Stormbringer
Sun Jan 07, 2018 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Request your suggestion - current job Vs. New job
Replies: 35
Views: 2261

Re: Request your suggestion - current job Vs. New job

I currently reside in NJ and work from home. For new job - work from home option is not possible and i will have to commute 4 days a week to work from office. I can work from home on Fridays Honestly, this would dominate my decision more than the money. Working from home -- if you like it (and not ...
by Stormbringer
Sun Jan 07, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation Package - Pay 2 points for 3.5 30 year?
Replies: 14
Views: 899

Re: Relocation Package - Pay 2 points for 3.5 30 year?

I have the opportunity to pay 2 points on a 360k loan (7200) to move the interest rate from 3.75 to 3.5 on a 30 year conventional loan. That seems really expensive. My bank always offers me a .5% reduction in interest for 2.5 points on my rental properties. By my math, you don't break even until yo...
by Stormbringer
Sun Jan 07, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken's future direction - a cause for concern
Replies: 491
Views: 63105

Re: Quicken's future direction - a cause for concern

I just ordered Quicken Premier 2017 from bonanza.com. They are selling them for $30 there. That should put this off for two more years. Hopefully a more appealing option emerges in that time.
by Stormbringer
Sun Jan 07, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Real Estate Investing: Cash Purchase vs. Mortgage
Replies: 10
Views: 1016

Re: Real Estate Investing: Cash Purchase vs. Mortgage

I'm looking at starting real estate investing in 2018. Trying to determine the best way to proceed: buying home in cash vs. mortgaging. I know this is a long debated issue with many articles on the topic, but was hoping those of you with experience (good or bad) could share your expertise and opini...
by Stormbringer
Fri Jan 05, 2018 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Convert to LLC for rental properties?
Replies: 10
Views: 1235

Re: Convert to LLC for rental properties?

Until now there seemed no reason to put them in an LLC, but if I do put them in an LLC would this be pass-through income eligible for the 20% deduction with the new tax rules? How much more complicated would the taxes be? Would my wife and I be a "single owner" so I'd report the income on a schedul...
by Stormbringer
Fri Jan 05, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: Jeremy Grantham (GMO) Talks Bubbles - 1/3/18
Replies: 16
Views: 1685

Re: Jeremy Grantham (GMO) Talks Bubbles - 1/3/08

neilpilot wrote:
Fri Jan 05, 2018 9:39 am
Saw the thread's title and was fascinated that Grantham could have this vision a decade ago.
I think the thread title is wrong. It should be 1/3/18, which is the published date of the linked piece.
by Stormbringer
Fri Jan 05, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: Jeremy Grantham (GMO) Talks Bubbles - 1/3/18
Replies: 16
Views: 1685

Re: Jeremy Grantham (GMO) Memo 1/3/08

Buffett is hiding in cash to the tune of 100B and Grantham is talking +50% gains in 1-2 years. Strange times. I think that can be explained by Buffett's holding period (forever) whereas Grantham would say that +50% would be followed by a crash. Buffett isn't looking to dart in and out of stocks. He...
by Stormbringer
Fri Jan 05, 2018 9:30 am
Forum: Investing - Theory, News & General
Topic: Jeremy Grantham (GMO) Talks Bubbles - 1/3/18
Replies: 16
Views: 1685

Re: Jeremy Grantham (GMO) Talks Bubbles - 1/3/08

I really like Grantham, but on Nov 8, 2016 in Barron's : Rather like a parrot, I have been repeating for 10 quarters now my belief that we would not have a traditional bubble burst in the U.S. equity market until we had reached at least 2300 on the Standard & Poor’s 500, the threshold level of major...
by Stormbringer
Fri Jan 05, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Heading for a top?
Replies: 103
Views: 7708

Re: Heading for a top?

For what it's worth, Grantham is now saying that if the market is in a classic bubble, then S&P 3,400 - 3,700 in 9 to 18 months may be in the cards.

I'm not all that into market timing, but I'm pretty sure if that happened in that time frame I would make changes to my equity allocation.
by Stormbringer
Fri Jan 05, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: Hypothetical question: Will a man who lives forever own the world?
Replies: 23
Views: 1594

Re: Hypothetical question: Will a man who lives forever own the world?

Is there an error in this logic? It seems odd that, purely through passive income, one could eventually own all the equity in the world. The error in the logic is that it ignores the political consequences of extreme wealth inequality (see: Let them eat cake ). Private ownership of property is itse...
by Stormbringer
Fri Jan 05, 2018 8:55 am
Forum: Investing - Theory, News & General
Topic: REITs under new tax law
Replies: 21
Views: 3312

Re: REITs In Taxable - New Tax Law

I thought the pass-through provisions have a sunset to them (i.e. not permanent). If so, there is a risk that you'll enjoy preferential tax treatment for a while and then things will snap right back to where they were in 2017.
by Stormbringer
Fri Jan 05, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: DOW breaks 25,000 for first time ever
Replies: 55
Views: 5479

Re: DOW breaks 25,000 for first time ever

I find it interesting that people in the accumulation phase celebrate a rising market. Would you rather buy something:
  1. When it is on sale
  2. At full list price
  3. When it is marked up above list price
by Stormbringer
Fri Jan 05, 2018 8:10 am
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 222
Views: 24537

Re: Hitting The Sell Button

What I've been selling is BONDS ... and building a CD ladder in my 401(k) instead. The yields a bit higher and I don't have to worry about principal loss.
by Stormbringer
Sun Dec 31, 2017 3:27 pm
Forum: Investing - Theory, News & General
Topic: Before buying gold, have a look at these returns since 1975
Replies: 84
Views: 6574

Re: Before buying gold, have a look at these returns since 1975

The main reason to own gold is that you may not be able to bribe the border guards with bitcoins. :P
by Stormbringer
Sun Dec 31, 2017 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Target Net Worth
Replies: 39
Views: 4478

Re: Target Net Worth

Be careful not to conflate 'net worth' with income producing assets. Your home, auto, household goods, etc. generally produce expense not income, so shouldn't be included when considering how much you have to support expenses in retirement. The exception would be if you plan to downsize considerabl...
by Stormbringer
Sat Dec 23, 2017 3:41 am
Forum: Personal Finance (Not Investing)
Topic: Is Software consulting considered a services business?
Replies: 13
Views: 1494

Re: Is Software consulting considered a services business?

nordsteve wrote: ↑Fri Dec 22, 2017 9:19 pm This exemption generally does not apply to specified service businesses, which include those in the fields of health, law, accounting, actuarial sciences, performing arts, consulting, financial services, brokerage services, or any other business where the ...
by Stormbringer
Fri Dec 22, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Is Software consulting considered a services business?
Replies: 13
Views: 1494

Re: Is Software consulting considered a services business?

This exemption generally does not apply to specified service businesses, which include those in the fields of health, law, accounting, actuarial sciences, performing arts, consulting , financial services, brokerage services, or any other business where the primary asset is the reputation or skill o...
by Stormbringer
Fri Dec 22, 2017 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth with solo 401k
Replies: 7
Views: 729

Re: Backdoor Roth with solo 401k

Dear all, I have a full time job with a 403B plan, the income of which puts me above the Roth IRA phase out limit. I have a pre-tax traditional IRA and a Roth IRA. I did a consulting job this year with small profits and am now eligible for a solo 401k. Can I do the following? 1. Set up a solo 401K;...
by Stormbringer
Fri Dec 22, 2017 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Do you see a meaningful change in your income with new Tax Bill?
Replies: 260
Views: 19965

Re: Do you see a meaningful change in your income with new Tax Bill?

In 2016, we paid $88,855 on an AGI of $379,675. Plugging those same numbers into the WSJ calculator (which accounts for the pass-through deduction) it says we would save $24,070, a 27% reduction!

Crazy.
by Stormbringer
Fri Dec 22, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: How I got to $1.5MM
Replies: 42
Views: 7345

Re: How I got to $1.5MM

I got a contract programming gig that lasted almost a year. I was still programming 2 days/week and now working an additional 30 hours/week on the new contract, plus time at the store, but we were finally starting to get ahead financially. What is your skill set? My day job is also as an independen...
by Stormbringer
Fri Dec 22, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: A meal with friends yields a financial revelation
Replies: 95
Views: 11738

Re: A meal with friends yields a financial revelation

I'm curious--for people mentioning "keeping score," what does this mean to you, and is it something you aspire to? It has a really negative connotation for me...I'm wondering if maybe I'm misunderstanding it. Well, there is a reason why people build homes like this: https://upload.wikimedia.org/wik...
by Stormbringer
Thu Dec 21, 2017 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds
Replies: 96
Views: 11297

Re: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds

I am following age in bonds. currently aged 33, so have around 30% in bonds. Age in bonds is a pretty conservative asset allocation. I prefer age minus 10 in bonds. Even Jack Bogle qualifies his "age in bonds" recommendation by suggesting that you count social security as part of your bond allocati...
by Stormbringer
Thu Dec 21, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: A meal with friends yields a financial revelation
Replies: 95
Views: 11738

Re: A meal with friends yields a financial revelation

I have posted about what I consider the 3 levels of Financial Independence before and to me this is the embodiment of the third level, what I call abundance. I think there is a fourth level of financial independence that has a profoundly powerful effect on the world in which we live: 4) Keeping sco...
by Stormbringer
Thu Dec 21, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: 2.45%CD vs Paying off 3% mortgage early
Replies: 19
Views: 2558

Re: 2.45%CD vs Paying off 3% mortgage early

The combination of the new standard deduction and historically low mortgage interest rates put the tax benefits of a mortgage on shaky grounds for many people. The math of paying off your mortgage might be more favorable going forward, and it has the added benefit of reducing the cash flow risk of a...
by Stormbringer
Thu Dec 21, 2017 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

This whole notion of prepaying 2018 property taxes and taking the deduction in 2017 seems sketchy to me. IRS Pub 17 says: The following two tests must be met for you to deduct any tax. The tax must be imposed on you. You must pay the tax during your tax year. The tax must be imposed on you. In gener...
by Stormbringer
Wed Dec 20, 2017 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

Bacchus01 wrote:
Wed Dec 20, 2017 10:04 pm
So, PEP and Pease are gone, right?

Is the 3.8% investment income tax gone?

If these are both gone, there's no longer a need for me to try to get under those income thresholds to avoid them. Is that correct?
Personal exemptions are gone.
Pease is gone.
3.8% investment income tax remains.
by Stormbringer
Wed Dec 20, 2017 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

(3) Qualified residence interest For purposes of this subsection- (A) In general The term "qualified residence interest" means any interest which is paid or accrued during the taxable year on- (i) acquisition indebtedness with respect to any qualified residence of the taxpayer, or (ii) home equity ...
by Stormbringer
Wed Dec 20, 2017 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

letsgobobby wrote:
Wed Dec 20, 2017 5:50 pm
Are rental property expenses such as mortgage interest and taxes still fully deductible on schedule E?
Yes. The limitations apply to Schedule A, not Schedule E.

Also, it looks like you can now fully expense some big ticket repairs (roofs, furnaces, etc.) that previously you needed to depreciate.
by Stormbringer
Wed Dec 20, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Act Omnibus Thread

White House National Economic Council Director Gary Cohn said Trump would sign the bill this year if Congress is able to pass a separate provision waiving automatic spending cuts as part of a year-end spending deal to avoid a government shut down before Friday. If not, Trump would sign the bill in ...
by Stormbringer
Wed Dec 20, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 135
Views: 8785

Re: Pass Through Entities Questions Thread

Also, how does the pass through deduction work for people with rental properties (not mega corporations). Let's say you have a couple of rental properties that bring in a modest amount of cash flow but you do not pay any wages associated with the properties. Do you get a deduction of 2.5% of the pu...
by Stormbringer
Wed Dec 20, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 135
Views: 8785

Re: Pass Through Entities Questions Thread

Chicago60 wrote:
Wed Dec 20, 2017 4:22 pm
I believe lawyers and other specified professionals are excluded from the pass through entities eligible for this provision.
I *think* that only applies above the threshold ($315,000 married, filing jointly).
by Stormbringer
Wed Dec 20, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

If you don't itemize (i.e. you take the standard deduction), does AMT ever apply?
by Stormbringer
Wed Dec 20, 2017 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

How does the 20% deduction for pass-through income interact with AMT? It seems like if you had to add the deduction back in, it would negate the benefit (then again, that seems to be the point of AMT). I haven't been able to find a comprehensive explanation of the pass-through deduction, just some ...
by Stormbringer
Wed Dec 20, 2017 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Bill Omnibus Thread

Folks, Pardon my ignorance, my kids are in college. They are more than 17 years old and less than 24 years old. They are my dependents. If I meet the income limit, can I claim the child tax credits? KlangFool It doesn't look like they changed the original age requirement, just the amount of the cre...
by Stormbringer
Wed Dec 20, 2017 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48656

Re: Tax Act Omnibus Thread

Prepay your mortgage but the bill explicitly forbids deducting a 2018 SALT payment against 2017 Just to clarify: an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, shall be trea...
by Stormbringer
Wed Dec 20, 2017 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do We Have to Wait Until Trump Signs the Bill Before We Can Discuss It?
Replies: 44
Views: 2722

Re: Do We Have to Wait Until Trump Signs the Bill Before We Can Discuss It?

JGoneRiding wrote:
Wed Dec 20, 2017 1:13 pm
Am I crazy. I thought none of these changes would have any affect until 2018 taxes. Or are people trying to do something now so it doesn't fall on 2018?
There are things you can do, such as deferring income until next year, or pulling expenses forward into 2017 to optimize your taxes.
by Stormbringer
Tue Dec 19, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: How much did you contribute to your 401k in 2017?
Replies: 155
Views: 10507

Re: How much did you contribute to your 401k in 2017?

Me (48): $54,000 in Solo 401(k) plus $5,500 backdoor Roth IRA.
Wife (50): $24,000 in employer 401(k) plus match and $6,500 backdoor Roth IRA.
by Stormbringer
Sun Dec 17, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: Diversification: Is there any way to produce the same returns with less risk?
Replies: 52
Views: 5116

Re: Diversification: Is there any way to produce the same returns with less risk?

Yes. Split your investments between assets that have the same expected return, but are not correlated with each other. Harry Markowitz won a Nobel prize on this subject, and it is the foundation of Modern Portfolio Theory.
by Stormbringer
Mon Dec 11, 2017 10:05 am
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2426

Re: TSM vs High Dividend Yield if I never choose to sell?

I am in my late 20's and have 2,000,000 to invest. I have a relatively safe government job that will supply me with a pension when I am older. With that time horizon and a pension, I would be inclined to put it all in a Warren Buffett 90/10 portfolio so long as you promise to rarely look at your st...
by Stormbringer
Sun Dec 10, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: CDs that compound interest payments, at big brokerages ?
Replies: 17
Views: 1588

Re: CDs that compound interest payments, at big brokerages ?

Schwab offers CDs with a coupon frequency of "at maturity" but I've only seen them on 1-year CDs (1.75%).
by Stormbringer
Sun Dec 10, 2017 1:03 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 3042

Re: What mix of intermediate and short term bonds?

Are you in a position to build a CD ladder? I recently switched a portion of my IT bond holdings into CDs, which seem to enjoy a bit higher interest rate.
by Stormbringer
Sun Dec 10, 2017 10:53 am
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1505

Schwab 25% Cheaper than Vanguard?

I noticed that Schwab's U.S. Broad Market ETF (SCHB) is now 25% less expensive (.03% vs .04%) than Vanguard's Total Stock Market ETF(VTI).

Is there a catch?
Is there a meaningful difference between the funds?
by Stormbringer
Sat Dec 09, 2017 2:54 am
Forum: Investing - Theory, News & General
Topic: John T. Reed (real estate) reading suggestions
Replies: 6
Views: 732

Re: John T. Reed (real estate) reading suggestions

Have you read any of his books? If so, would you recommend one in particular to get started with? I have read a couple, but I don't recall which ones. The guy is a bit of a crank, but his books are much better than most. In my experience, most real estate books cater to the no-money-down, get-rich-...
by Stormbringer
Thu Dec 07, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: 33 years old, 13 years IT experience, currently make 63k a year. I need advice to start making more money
Replies: 76
Views: 6715

Re: 33 years old, 13 years IT experience, currently make 63k a year. I need advice to start making more money

I'll admit, it gets pretty depressing to see some of the salaries that other Bogleheads are earning. I would like to start making moves to get myself into another tier financially. I am open to furthering my education (if it makes financial sense) and even switching my career path (if necessary). C...
by Stormbringer
Thu Dec 07, 2017 1:32 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate from SPIA???
Replies: 41
Views: 2558

Re: Safe Withdrawal Rate from SPIA???

moghopper wrote:
Wed Dec 06, 2017 10:50 am
Why assume a need for a CPI adjustment on the SPIA, or a "man-made" one in your scenario?
Because if you bought an annuity in the early 1970s, you lost half of your purchasing power in about eight years. As plenty of other countries have demonstrated, next time could be much worse.