Search found 670 matches

by Stormbringer
Tue Jan 15, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: An Annuity Hater Revisits SPIAs
Replies: 22
Views: 2823

Re: An Annuity Hater Revisits SPIAs

David Jay wrote:
Tue Jan 15, 2019 2:30 pm
Without going full CPI (which last I heard was only being issued by Principle), it is possible to build in some coverage with a fixed 2% or 3% escalator.

I priced a 2% for a 70 YO through the Fidelity website and I was pleasantly surprised.
AIG offers CPI adjustments too.
by Stormbringer
Mon Jan 14, 2019 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Solo 401k - What am I not getting?
Replies: 28
Views: 1029

Re: SEP IRA vs Solo 401k - What am I not getting?

I don't think you are missing anything. I do not understand why SEP IRA's exist. My first job was for a software company that deposited 15% of everyone's salary into a SEP IRA. For most employees it was better than a 401(k) because the investment choices were unlimited, it didn't require any contri...
by Stormbringer
Sat Jan 12, 2019 6:53 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces said in 2016 that IRS auditors disapproved of backdoor Roth IRAs
Replies: 249
Views: 40791

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

I am no legal or constitutional expert, but it seems that the conference report speaks to the spirit of the law. Which seems to allow backdoor ROTH conversions. Thoughts? I've been doing backdoor Roth's for years, and never had a problem with it. All the angst over them seems to be over a theoretic...
by Stormbringer
Fri Jan 11, 2019 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6069

Re: Building Wealth Through Home Equity--Myth or Reality?

I don't even get why this is controversial. You have to live somewhere. You are either paying your own mortgage, or your landlords mortgage. If you pay your own mortgage, the equity is yours. If you pay your landlord's mortgage, the equity is his. Either way, you pay for repairs, maintenance and tax...
by Stormbringer
Tue Jan 08, 2019 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Need a little insight from STEM Bogleheads
Replies: 59
Views: 2668

Re: Need a little insight from STEM Bogleheads

Her thinking is if she gets her doctorate she can teach at the college level since it’s more relaxed. A Glut Of Ph.D.s Means Long Odds Of Getting Jobs The challenge is that the trend with colleges is to staff as many teaching positions as possible with adjuncts, not tenure-track professors. With a ...
by Stormbringer
Sun Jan 06, 2019 6:17 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 220
Views: 14278

Re: What is your allocation to U.S. and International?

columbia wrote:
Sun Jan 06, 2019 5:42 pm
One reaction would be to put half (of equities) in total stock and the other in total world (for the sake of simplicity).
Sure, but the question is: is 50/50 on the efficient frontier? If not, you can do better for the same level of risk, or do as well with less risk.
by Stormbringer
Sun Jan 06, 2019 5:38 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 220
Views: 14278

Re: What is your allocation to U.S. and International?

Shouldn't efficient frontier analysis apply to this decision?
by Stormbringer
Sun Jan 06, 2019 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do you take inheritance into account when calculating net worth?
Replies: 68
Views: 4502

Re: Do you take inheritance into account when calculating net worth?

In the past, I asked about taking into account pensions when calculating ones net worth. What about future inheritances? I don't but wanted curious what others think. Net worth is a balance sheet construct. The same assets can't be double-counted on two different balance sheets (yours and the perso...
by Stormbringer
Sun Jan 06, 2019 2:43 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 234
Views: 28996

Re: Social Security for Millennials

In light of the trajectory of government finances, we are planning to leave our daughter (a millennial) a pretty decent inheritance to compensate for whatever may happen. I don't want her to be burdened by the financial decisions of earlier generations. She does save and invest, but I fear it will ...
by Stormbringer
Fri Jan 04, 2019 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Botched 401(k) Contributions
Replies: 23
Views: 1679

Re: Botched 401(k) Contributions

Okay, so my wife met with the CFO and the company acknowledged their mistake and is going to deposit the $1,200 into her 401k at their expense (employer contribution). So it worked out well. A free $1200. Sometimes it pays to make a little noise. :beer Also, the company reviewed the case with their ...
by Stormbringer
Fri Jan 04, 2019 5:07 am
Forum: Personal Finance (Not Investing)
Topic: Recent Engineering College Graduate can’t get job interviews, needs advice
Replies: 145
Views: 10836

Re: Recent Engineering College Graduate can’t get job interviews, needs advice

Any other advice from the BH community? I had a similar experience when I graduated with a degree in Computer Science in 1991. I must have sent out 100 resumes and not a single interview. My GPA was 3.07, which was okay but not stellar (warning: fraternities can be bad for your grades). I ultimatel...
by Stormbringer
Thu Jan 03, 2019 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Botched 401(k) Contributions
Replies: 23
Views: 1679

Re: Botched 401(k) Contributions

Why wasn't it completely obvious to you what was happening by November at the latest? All it would have taken is monitoring the paychecks and doing some simple arithmetic. It's because she was told they would take out the $6,000 over the five remaining pay periods ($1200 per paycheck). The problem ...
by Stormbringer
Thu Jan 03, 2019 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: Botched 401(k) Contributions
Replies: 23
Views: 1679

Re: Botched 401(k) Contributions

Nate79 wrote:
Thu Jan 03, 2019 8:15 pm
Put the money in a taxable account and the financial impact will be miniscule.
Losing 40% of the money to taxes is hardly miniscule. These were to have been pre-tax contributions.
by Stormbringer
Thu Jan 03, 2019 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Botched 401(k) Contributions
Replies: 23
Views: 1679

Botched 401(k) Contributions

My wife's employer botched her 401(k) contributions for 2018. In January, we set it up to defer $24,500 of her salary ($18,500 plus a $6,000 catch-up contribution), spread across 26 pay periods. This worked fine until October, when she hit $18,500 and their payroll system mysteriously stopped making...
by Stormbringer
Thu Jan 03, 2019 4:35 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 234
Views: 28996

Re: Social Security for Millennials

In light of the trajectory of government finances, we are planning to leave our daughter (a millennial) a pretty decent inheritance to compensate for whatever may happen. I don't want her to be burdened by the financial decisions of earlier generations. She does save and invest, but I fear it will n...
by Stormbringer
Wed Jan 02, 2019 3:23 pm
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7282

Re: Annuities objectively considered

One impediment to getting a COLA’d SPIA is most insurance companies stopped offering them when real rates were negative sone years ago. The Principal still offers them, maybe 1 of 2 other companies. The reduction in initial payout used to be about 30% for inflation correction. I think The Principal...
by Stormbringer
Mon Dec 31, 2018 11:20 am
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7282

Re: Annuities objectively considered

A similar quotation through IncomeAnnuities.com, specifying CPI adjustment, gives us a quotation of $418/month first year for true CPI adjustment. I think it's worth noting that $418 a month is $5,016 per year vs. $4,000 per year using the 4% rule. That's 25% extra income, which could be a meaningf...
by Stormbringer
Mon Dec 31, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7282

Re: Annuities objectively considered

2%, however, is as close to guaranteed as you get in this life. So if the first 2% covers your "needs", and the second 2% covers your "wants", then you don't need to worry about "rummaging through garbage cans at 90". For most of the people on this board, 4% "failing" means exactly what you said ab...
by Stormbringer
Sun Dec 30, 2018 7:46 pm
Forum: Investing - Theory, News & General
Topic: Spot gold down 15% (12/30 at 6 pm central)
Replies: 7
Views: 1054

Re: Spot gold down 15% (12/30 at 6 pm central)

The bid price is $1089.80
The ask price is $1280.60

I wonder if someone is fishing for suckers who put in market sell orders.
by Stormbringer
Sat Dec 29, 2018 7:02 pm
Forum: Investing - Theory, News & General
Topic: What are some critiques of passive investing/index funds?
Replies: 75
Views: 5679

Re: What are some critiques of passive investing/index funds?

What are some critiques of passive investing/or which critiques do you find most warranted? I see the potential for two macro problems caused by passive investors being free-riders: If everyone indexed, the market would not have a price discovery mechanism because everyone is a price-taker. It isn'...
by Stormbringer
Sat Dec 29, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: HSA allowed if already have FSA and HRA?
Replies: 2
Views: 154

Re: HSA allowed if already have FSA and HRA?

am I also allowed to contribute to a Vanguard HSA in addition? Probably not, as the HRA and FSA are considered "other health coverage" per IRS Publication 969 (page 4) : An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally can’t make...
by Stormbringer
Sat Dec 29, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7282

Re: Annuities objectively considered

For what it's worth, here is how I look at. People mostly live their lives by the cash flow statement, not the balance sheet. Every month money comes in, and money goes out. There is: Income we need. Income we want. For income I need (i.e. for non-discretionary expenses such as food on the table, ro...
by Stormbringer
Thu Dec 27, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: Why call them "losses" when you still own the shares?
Replies: 103
Views: 4886

Re: Why call them "losses" when you still own the shares?

Why call them "losses" when you still own the shares? It seems to me that they may have a flawed mental model about investing. If someone knocks on your door and offers to buy your house for 50% of what you paid for it, do you: Freak out that your home has lost half it's value; or Slam your door in...
by Stormbringer
Tue Dec 25, 2018 8:31 pm
Forum: Investing - Theory, News & General
Topic: What have you learned this year
Replies: 90
Views: 6873

Re: What have your learned this year

I think this is the year when I came to believe that the goal in retirement planning should be inflation-adjusted income , not wealth (your "number"). While the two aren't entirely unrelated, they aren't exactly the same either. I think people focus too much on the size of the portfolio, and not eno...
by Stormbringer
Tue Dec 25, 2018 8:20 pm
Forum: Investing - Theory, News & General
Topic: buy HIGH and sell LOW?
Replies: 21
Views: 3117

Re: buy HIGH and sell LOW?

What does "buy low, sell high" mean as an actionable strategy? I guess I would consider re-balancing as the actionable strategy. Sell the asset class that has moved above the target allocation, and buy the asset class that has fallen below the target allocation. Although that's probably not what mo...
by Stormbringer
Tue Dec 25, 2018 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: What did you do once you hit your target number?
Replies: 49
Views: 5414

Re: What did you do once you hit your target number?

Reduced risk. Rick Ferri This is easily the best post I have read in the past 3 months and maybe post of the year for 2018. This simple posts tells you so much, like your number should be larger enough as to not require you to take large amounts of risk in order for it to be able to supply your nee...
by Stormbringer
Sun Dec 23, 2018 8:11 am
Forum: Investing - Theory, News & General
Topic: Treasury yield puzzles
Replies: 7
Views: 992

Re: Treasury yield puzzles

Still, even calculating the actual returns, the note/bond returns are consistently lower than the Bill yields. Why is this? I wonder if there is some supply/demand characteristic at work here, where the desire (or need) for the coupon bids up the price a bit higher than the bills. Do you happen to ...
by Stormbringer
Sat Dec 22, 2018 3:26 pm
Forum: Investing - Theory, News & General
Topic: When did the musicians on the titanic realize their fate?
Replies: 132
Views: 9751

Re: When did the musicians on the titanic realize their fate?

Some wisdom from 1987. Ben Graham, my friend and teacher, long ago described the mental attitude toward market fluctuations that I believe to be most conducive to investment success. He said that you should imagine market quotations as coming from a remarkably accommodating fellow named Mr. Market w...
by Stormbringer
Fri Dec 21, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: When did the musicians on the titanic realize their fate?
Replies: 132
Views: 9751

Re: When did the musicians on the titanic realize their fate?

TVD wrote:
Fri Dec 21, 2018 5:15 pm
What are the conditions where people on this site become concerned?
My concern has been that stocks were too expensive. I'd rather buy them at lower prices than at higher prices. If they dropped another 20% from here I would be thrilled!
by Stormbringer
Fri Dec 21, 2018 7:31 am
Forum: Investing - Theory, News & General
Topic: Why contribute to retirement funds?
Replies: 43
Views: 3231

Re: Why contribute to retirement funds?

How about a more simple question. Do you guys believe $25K/year ($19K 401K + 6K IRA) into retirement for the next 30 years would get you enough to comfortably retire without the help of other things such as SS. It depends on what you mean by "comfortably retire". If you mean maintaining the standar...
by Stormbringer
Wed Dec 19, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: How does the Fed Funds Rate work?
Replies: 2
Views: 369

How does the Fed Funds Rate work?

I've always assumed the Fed Funds Rate was an exact interest rate, but looking at the FOMC statements, it appears to be a target range: In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2...
by Stormbringer
Thu Dec 13, 2018 8:29 am
Forum: Investing - Theory, News & General
Topic: Will the 2008 recession help avoid severity of the next recession?
Replies: 40
Views: 2586

Re: Will the 2008 recession help avoid severity of the next recession?

Will the 2008 recession help avoid severity of the next recession? Some are arguing that the next financial crisis will be worse than the last one, because governments around the world are in a much worse position to respond to it. Interest rates are already low, central bank balance sheets are loa...
by Stormbringer
Thu Dec 13, 2018 5:52 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 20303

Re: What Happened to you during the Financial crisis of 2007–2008

Its weird, we weren't that well off, my parents had maybe a couple rentals at the time, but I don't recall them complaining at all. There were never any horror stories to cloud my mind. Mind you, they just bought property without ever running the numbers, considering a business plan, or even having...
by Stormbringer
Thu Dec 13, 2018 5:40 am
Forum: Personal Finance (Not Investing)
Topic: What is/ was your career and would you recommend it now?
Replies: 408
Views: 41681

Re: What types of jobs do Bogleheads have?

Shoveled snow for neighbors
Gas station attendant (full service!)
Gas station cashier
Blackjack dealer
Software developer
by Stormbringer
Wed Dec 12, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 20303

Re: What Happened to you during the Financial crisis of 2007–2008

To sit and listen to people say it was all correctable and the risks were overblown is incredulous. I still think we got lucky. This is why I'm not a huge fan of probabilistic strategies like the 4% rule to fund minimum basic expenses. I prefer something safer, like a TIPS ladder. That sounds bette...
by Stormbringer
Wed Dec 12, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 20303

Re: What Happened to you during the Financial crisis of 2007–2008

So, the banks did the practical thing - they cut or outright eliminated the home equity lines, hard to lend when the value of the underlying collateral is falling by 10% daily. That happened to me. I had a Wells-Fargo HELOC that I kept open as an emergency fund. In early 2009 I received a letter fr...
by Stormbringer
Wed Dec 12, 2018 8:28 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 20303

Re: What Happened to you during the Financial crisis of 2007–2008

I nervously watched a lot of CNBC. For a while it felt like there was no bottom. I enjoy history, and was familiar with the Great Depression and worried that we might be headed into something like that. In hindsight, what really strikes me is how unevenly the pain was distributed. I know people who ...
by Stormbringer
Tue Dec 11, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Too Much Savings Regret
Replies: 112
Views: 17215

Re: Too Much Savings Regret

My thrifty mom saved a lot over the years, and now she continues to spend too little -- only 2% of her portfolio. I try to encourage her to spend a little more on vacations and luxuries, but she says she wants to make sure I get an inheritance (that I don't need).
by Stormbringer
Tue Dec 11, 2018 5:09 am
Forum: Personal Consumer Issues
Topic: To each his own ( I guess ) [Opinions of traveling in retirement]
Replies: 109
Views: 7939

Re: To each his own ( I guess ) [Opinions of traveling in retirement]

Indianrock wrote:
Mon Dec 10, 2018 8:09 am
Call us uncultured but neither of us seem to have much interest in Europe.
You might want to consider the UK. Things are similar enough that there isn't much of a culture shock, and there is so much to see and do. My whole family went for ten days last year and everyone had a wonderful time.
by Stormbringer
Tue Dec 11, 2018 5:00 am
Forum: Personal Consumer Issues
Topic: LED light bulbs
Replies: 130
Views: 15999

Re: LED light bulbs

Our house has lots and lots of recessed can lights that use BR30 bulbs. Initially I tried replacing a few with CFL's which were very disappointing. They would take a while to get bright, were not dimmable, and sometimes would flicker. So I gave up on that and stockpiled a few cases of incandescent b...
by Stormbringer
Mon Dec 10, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: How To Save More Than $100,000 A Year Pre-Tax: Open A SEP-IRA Or Solo 401k
Replies: 3
Views: 901

Re: How To Save More Than $100,000 A Year Pre-Tax: Open A SEP-IRA Or Solo 401k

The gist is the $56k/year limit (2019) is only the limit per account, not across all accounts combined. If you have a SEP IRA through your employer at your W2 job and then own a side business and open a Solo 401k (or vice versa), the limit is $56k/year for each account, not $56k/year combined for b...
by Stormbringer
Sat Dec 08, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 12423

Re: Why Retirement Is Broken And Needs To Be Reinvented

If people don't know how to do something themselves, they can hire a firm that specializes in this to do it for them. Yes but they don't . Or they do, and their money ends up in variable annuities because they don't know any better. As matter of public policy -- and our retirement system is exactly...
by Stormbringer
Sat Dec 08, 2018 10:10 am
Forum: Investing - Theory, News & General
Topic: Do long-term bonds belong in one's portfolio?
Replies: 235
Views: 13162

Re: Do long-term bonds belong in one's portfolio?

Do long-term bonds belong in one's portfolio? I wouldn't touch 30-year bonds with a ten foot pole unless they were inflation-adjusted (e.g. TIPS or I-Bonds). Loaning money to the government for 30 years at 3.1% seems crazy to me, particularly when you look at the trajectory of debt and deficits. Yo...
by Stormbringer
Sat Dec 08, 2018 9:55 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 12423

Re: Why Retirement Is Broken And Needs To Be Reinvented

There should be opportunities for all people to be educated about personal finance, but once you lead a horse to water..... I think a reasonable question to ask is: " *should* people need to be educated about personal finance in order to have good retirement outcomes?" Not everyone is interested in...
by Stormbringer
Mon Dec 03, 2018 10:44 pm
Forum: Investing - Help with Personal Investments
Topic: Rate My Portfolio
Replies: 8
Views: 696

Re: Rate My Portfolio

What would you suggest for the Roth? Do you think real estate would be appropriate? I'm not sure what you mean by "real estate" (a real estate investment trust? a rental property?). In any event, no. Stocks in the Roth IRA. REITs would be best placed in a different tax-deferred account (e.g. standa...
by Stormbringer
Mon Dec 03, 2018 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Rate My Portfolio
Replies: 8
Views: 696

Re: Rate My Portfolio

bltn wrote:
Mon Dec 03, 2018 10:33 pm
I would put the entire Roth into the Total Stock Market Fund.
Yes, do this and max out the account before putting anything in the taxable. One of the best things you can go is plow as much as you can into a Roth when you are young and have a low tax rate.
by Stormbringer
Mon Dec 03, 2018 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Bond alternative to balance portfolio?
Replies: 25
Views: 2317

Re: Bond alternative to balance portfolio?

When interest rates go significantly up, I can move from the Saving and CDs to bond funds then. You can invest in short-duration bond funds, which are less sensitive to interest rates. Also, the yield curve has been flattening, so the interest you collect is only marginally less. That said, don't a...
by Stormbringer
Mon Dec 03, 2018 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Rate My Portfolio
Replies: 8
Views: 696

Re: Rate My Portfolio

Roth IRA -Target 2060 Index Fund 100% I'd be inclined to go 100% stocks in my Roth IRA if I was 23 years old. That's the account where you want the most growth, because it's the account you will never pay taxes on. That 2060 target date fund probably has 10% in bonds, and will rebalance more and mo...
by Stormbringer
Mon Dec 03, 2018 9:38 am
Forum: Investing - Help with Personal Investments
Topic: CD vs Bond ETF (SCHZ)
Replies: 1
Views: 265

CD vs Bond ETF (SCHZ)

Right now I have some retirement money in a Schwab bond ETF (SCHZ) that has an average duration of 6 years, and they quote the following yields: Distribution Yield: 2.72% Average Yield to Maturity: 3.54% SEC Yield: 3.34% I can also buy marketable CDs in my retirement account. They are offering 5YR C...