Search found 668 matches

by kayanco
Thu Jun 12, 2014 9:41 am
Forum: Investing - Theory, News & General
Topic: Example of taxes and funds? 3 things...
Replies: 15
Views: 996

Re: Example of taxes and funds? 3 things...

kayanco .. If you receive interest from a bond in a taxable account (just like a bank CD), each year you must pay taxes on that interest at your top tax rate for ordinary income (what is called your marginal tax rate). So if you have 10,000 invested in a bond @ 5% interest, you will earn $500. That...
by kayanco
Thu Jun 12, 2014 9:32 am
Forum: Investing - Theory, News & General
Topic: Example of taxes and funds? 3 things...
Replies: 15
Views: 996

Re: Example of taxes and funds? 3 things...

..Some investors see bonds or bond funds as tax-inefficient because almost all of the return comes from the dividend yield, which is fully taxed as ordinary income. In contrast, stocks get most of their return from price appreciation, which is not taxed until the stocks are sold and is taxed at the...
by kayanco
Thu Jun 12, 2014 9:14 am
Forum: Personal Consumer Issues
Topic: TV show recommendations?
Replies: 573
Views: 224856

Re: TV show recommendations?

And Breaking Bad obviously! :) Mad Men...but I feel I need to have more patience to watch it, and try to follow it more carefully. Prison Break Season 1. Friends....best comedy. I tried to watch the recent comedy like, How i met you mother, Big Bang. I just don't find these funny at all. Don't even ...
by kayanco
Wed Jun 11, 2014 10:31 pm
Forum: Investing - Theory, News & General
Topic: Example of taxes and funds? 3 things...
Replies: 15
Views: 996

Example of taxes and funds? 3 things...

Hey guys, So far I've never had to deal much with taxes. Meaning, I just get my after-tax paychecks, and then when I file tax return at end of year, I just do the 1040EZ. And I get a tax refund every year. That's my total experience with taxes. I frequently come across this advice: Keep bonds in tax...
by kayanco
Wed Jun 11, 2014 7:29 pm
Forum: Personal Consumer Issues
Topic: TV show recommendations?
Replies: 573
Views: 224856

Re: TV show recommendations?

Game of Thrones Damn, I thought The Wire was tough, but the number of characters (and their allegiances and people) in GoT is utterly bewildering. GOT is incredible! You must watch it if you haven't! Homeland The first season was just about the most edge-of-your-seat exciting thing I've ever seen, ...
by kayanco
Wed Jun 11, 2014 2:18 pm
Forum: Personal Consumer Issues
Topic: TV show recommendations?
Replies: 573
Views: 224856

Re: TV show recommendations?

Game of Thrones
Homeland
by kayanco
Wed Jun 11, 2014 10:56 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

sscritic wrote: But I still don't see your tax bracket.
My bad, added.
by kayanco
Wed Jun 11, 2014 10:55 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

I'm 35 and have some thoughts....Here are my thoughts for how I would use that money if I were in your situation.. 1. Buy $10,000 in i-bonds from treasurydirect....This can take the place of your emergency fund, if you like. 2. Keep $10,000 in checking. Add small amounts of money to it over time..T...
by kayanco
Wed Jun 11, 2014 10:29 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

sscritic wrote: At the time, I knew where I lived and what my tax bracket was. I still do. Do you? I don't know yours because you haven't told us in any of your 8 different versions of your OP.
Thanks.
If I understood you correctly, I added more details to the 1st post.
by kayanco
Wed Jun 11, 2014 10:18 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

Since your question was about what I would do, and not necessarily for any particular situation you may be in, ... I have "savings" to help me sleep well at night and for any unexpected expenses, and every extra bit of money on top of my budgeted expenses and savings gets thrown into the Vanguard 5...
by kayanco
Wed Jun 11, 2014 10:09 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

40K in checking acct to invest. How would you invest this money? Without knowing the purpose and time horizon for this money, it’s impossible to give a good answer. Consider this analogy. You jump into your car and pull up to the edge of your driveway. You then open your window and ask a pedestrian...
by kayanco
Wed Jun 11, 2014 10:00 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

I would increase my emergency fund. Right now I keep 18-24 months in my EF simply because I sleep better with that much vs only 6 months. If you said that was foolish I wouldn't necessarily argue with you but that's what I do. Choice B would be open a taxable account and invest the 40k in accordanc...
by kayanco
Wed Jun 11, 2014 9:57 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

I would set 10k aside for miscellaneous expenses (or to increase our emergency fund) and perhaps to buy some I bonds. The other 30k would go into total US stock / total int'l stock funds, as dictated by our asset allocation. Hey, thanks! Set aside meaning leaving them in a checking acct? Where/how ...
by kayanco
Wed Jun 11, 2014 9:51 am
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

Did not provide your tax filing status and if you rent or own a home or plan on buying a home. What are your monthly expenses and your emergency fund? How about need of a car? Needs like these dictate the time horizon of investing . If all these are taken care of and you still have money left, then...
by kayanco
Tue Jun 10, 2014 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

Time horizon, I don't really know . . . What should it be? Ask yourself, what am I saving for? I don't know, really!....that's why I'm asking what would other folks do...maybe someone 35 is reading this and says, "If I were in this situation, I would save for xyz..." And that might make me think..A...
by kayanco
Tue Jun 10, 2014 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

I want to thank EVERYONE for helping on this thread. I feel indebted to you. Thank you!!
by kayanco
Tue Jun 10, 2014 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

Re: What would "you" do?? [in this case]

cheese_breath wrote:What's your time horizon for this money? That will affect the investment advice.
Time horizon, I don't really know, to be honest with you :(
What should it be?
by kayanco
Tue Jun 10, 2014 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: What would "you" do?? [in this case]
Replies: 50
Views: 4957

What would "you" do?? [in this case]

[Please consider this thread closed. After taking the suggestions from this thread, I decided my time horizon, and have a specific discussion here ] Hey guys, I got a lot of help from many of you in optimizing my 401(k). So thanks :) Can you imagine yourself in the following situation today, and tel...
by kayanco
Tue Jun 10, 2014 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Kayanco, Great job, young man. I encourage you to keep reading and learning, even in light of the fact that your desired asset allocation is pretty much ideal. As we learn more over time, we can better help others. Have a great time in Austin. Kick back and relax. You are well on your way to invest...
by kayanco
Tue Jun 10, 2014 4:14 pm
Forum: Investing - Theory, News & General
Topic: Diversification apply to portfolios as well??
Replies: 20
Views: 1352

Re: Diversification apply to portfolios as well??

...Increasing returns and reducing risk are the main goals of retirement investing, not diversification. There is not always a good correlation between the two. For example, one could also diversify into timberland, Beanie Babies, or ammunition... Ahhh...well put... ...We should diversify, not to d...
by kayanco
Tue Jun 10, 2014 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Kayanco, ...eliminate the relatively high-cost 2045 Retirement fund and create your own mix of US stock index, International stock index and Bond index.. Done :) ..When everything has settled down, then break it into less costly funds... Earlier in the thread, the OP seemed to be mixing IRA convers...
by kayanco
Tue Jun 10, 2014 2:53 pm
Forum: Investing - Theory, News & General
Topic: Diversification apply to portfolios as well??
Replies: 20
Views: 1352

Re: Diversification apply to portfolios as well??

If one did better than another, it would most likely just be by chance, and the difference would be small. I am assuming a lazy portfolio that has a total US stock fund, total International fund, and a total bond fund. The stock funds own pretty much every stock available above a certain size, at t...
by kayanco
Tue Jun 10, 2014 2:34 pm
Forum: Investing - Theory, News & General
Topic: Diversification apply to portfolios as well??
Replies: 20
Views: 1352

Diversification apply to portfolios as well??

Guys, Some of my friends just talk about specific company stocks...but now I'm getting a little understanding of diversification and asset allocation, and why it's important. Like, if someone owns two assets, and one goes down, they would be covered if the other goes up. And that it's hard to predic...
by kayanco
Tue Jun 10, 2014 2:21 pm
Forum: Investing - Theory, News & General
Topic: Which Book? for these concepts...
Replies: 4
Views: 544

Re: Which Book? for these concepts...

I agree :) I'm only looking to understand in a basic/beginner sense why some some assets are considered tax-efficient, and some tax-inefficient...and why some should be placed on one type of account, and vice versa....and what it means by "I recommend that interest and dividends from investment flow...
by kayanco
Tue Jun 10, 2014 1:27 pm
Forum: Investing - Theory, News & General
Topic: Which Book? for these concepts...
Replies: 4
Views: 544

Re: Which Book? for these concepts...

Any suggested books from the wiki?
by kayanco
Tue Jun 10, 2014 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

[side note:] nedsaid, I especially like your thinking style: "Successful investing is all about putting the odds in your favor as much as possible" I feel that it is true for life in general. Till about few months ago, my thinking was around trying to find, expect and predict certainties in life...b...
by kayanco
Tue Jun 10, 2014 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

...All you can do is put the odds in your favor as much as possible...keep your expenses low....limit the trading of your accounts. ...put your money into asset classes that are likely to grow in excess of inflation. ...Whatever success I have had has come from learning from my mistakes and not rep...
by kayanco
Tue Jun 10, 2014 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Investing Extra Cash
Replies: 6
Views: 1263

Re: Investing Extra Cash

I would add the $5.5k to the roth for 2013 and another $5.5k for 2014 if you will qualify this year. If you have even more money then up your 401k contributions to maximize money into that account then use the remaining money to cover the gap in your salary and living expenses. Once the taxable mon...
by kayanco
Tue Jun 10, 2014 1:41 am
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

but 401(k), I have this confusion...search for post the with string "ruralavalon » Mon Jun 09" (btw, I think if the forum posts were numbered, it would be easy to refer to...) If you have 50K waiting to invest outside of retirement accounts, increase your 401k contributions so that you max out for ...
by kayanco
Tue Jun 10, 2014 12:24 am
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Your 2045 fund is managed by Fidelity. Fidelity ..... Again, excellent explanation...makes things so much easier to understand :) Thanks! What should I put in the Roth? (at least for now). Thanks. If you want 80/20 AA for your portfolio, you can pick any fund that will help you get there.... I like...
by kayanco
Mon Jun 09, 2014 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: What does this mean? [investing terms and concepts]
Replies: 14
Views: 1533

Re: What does this mean? [investing terms and concepts]

These books cover bond math, and a lot more. I'd recommend you start with Strategic Financial Planning and try the others if you're still hungry after that. Strategic Financial Planning over the Lifecycle: A Conceptual Approach to Personal Risk Management , by Charupat, Huang & Milevsky, Cambridge ...
by kayanco
Mon Jun 09, 2014 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

If you are not eligible for deductible Traditional IRA contribution but are eligible for full Roth IRA contributions, you should max out Roth IRA for $5500. ... If your $5,500 Roth IRA contribution grows to $1M, you can withdraw all $1M tax free from Roth IRA. If your non-deductible Traditional IRA...
by kayanco
Mon Jun 09, 2014 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: What does this mean? [investing terms and concepts]
Replies: 14
Views: 1533

Re: What does this mean?

$9906 invested at 6% for one year will be worth $10,500, so that is the value of a bond which will pay $10,500 in one year. The number is computed as 10500/1.06. Similarly, four years from maturity, you pay to receive $500, $500, $500, and $10,500 in the next four years, so the value is 500/1.06 + ...
by kayanco
Mon Jun 09, 2014 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Kayanco, if you have a ROTH IRA there is no need for a non-deductible Traditional IRA. You did a boo-boo. But it is easily fixed. Call your Fund Company and have your Traditional IRA contributions redesignated (or recharacterized) as ROTH IRA Contributions. If you make too much money to have a Dedu...
by kayanco
Mon Jun 09, 2014 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Kayonco, it sounds like you want 1/2 of your portfolio managed passively and 1/2 of your portfolio in the Target Date 2045 fund. You are hedging your bets and seeing if an actively managed portfolio can outperform a passive one. What fund company is offering your 2045 fund? I need to know that befo...
by kayanco
Mon Jun 09, 2014 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Kayonco, a few simple concepts to understand. 401k's are deferred compensation. In other words, ... ... So these are the concepts of deferred wages, tax deferred growth on your money, and the money taken out at retirement being taxed just like wages. This is one of the most eloquent and clear expla...
by kayanco
Mon Jun 09, 2014 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

Kayanco wrote: Increased retirement contributions to 50% of paycheck: 25% -> 401(k) 25% -> Roth 401(k) - With these %s, my living expenses will be HIGHER than my take-home paycheck, so my checking acct will dwindle over the upcoming months Zabar wrote: Relax, take a breath. You are acting very impu...
by kayanco
Mon Jun 09, 2014 8:37 pm
Forum: Investing - Theory, News & General
Topic: Which Book? for these concepts...
Replies: 4
Views: 544

Which Book? for these concepts...

I can't believe I'm making this post instead of watching the latest episode of Game of Thrones :p Guys, Below is a list of statements/questions/concepts that I come across (reading the wiki, forums, etc)...that I just don't comprehend at all. Can you please look at this, and recommend 1 or 2 books f...
by kayanco
Mon Jun 09, 2014 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! Asset Allocation?/401k/Roth [Confused...]

... C) Thats a reasonable procedure for, in effect, moving money out of checking and into the 401k. Yepp..that's exactly what I was going for :) E) ... The FTSE All-World ex US fund covers developed and emerging markets but not int'l small caps, so does not exactly duplicate Vanguard's total intern...
by kayanco
Mon Jun 09, 2014 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

Increased retirement contributions to 50% of paycheck: 25% -> 401(k) 25% -> Roth 401(k) Do you mean you added contributions to Roth 401k and now new money is going 50% to tax-deferred and 50% to Roth 401k. Is total contribution still 5% of pay? Or did you actually up contributions to 50% of your pa...
by kayanco
Mon Jun 09, 2014 1:22 am
Forum: Investing - Help with Personal Investments
Topic: What does this mean? [investing terms and concepts]
Replies: 14
Views: 1533

Re: What does this mean?

... When interest rates rise, bond prices fall. If you have bought a bond for $10,000 which pays $500 per year until maturity and then pays back the $10,000, it has a 5% interest rate. If rates rise to 6%, then nobody will pay $10,000 for your bond, as a new $10,000 bond would pay $100 more per yea...
by kayanco
Mon Jun 09, 2014 12:31 am
Forum: Investing - Help with Personal Investments
Topic: Expense ratio? How much difference does it make?
Replies: 25
Views: 2796

Re: Expense ratio? How much difference does it make?

From what I've read about re-balancing, can you please tell if my understanding is correct? e.g. Today if we decide 50/30/20 for a 3-fund portfolio, then once a year, we should rebalance back to that ratio? No matter what the individual fund performance, we should ignore that. And do this every yea...
by kayanco
Mon Jun 09, 2014 12:15 am
Forum: Investing - Help with Personal Investments
Topic: Expense ratio? How much difference does it make?
Replies: 25
Views: 2796

Re: Expense ratio? How much difference does it make?

Does ER matter for asset classes that have no low cost investment options like frontier markets or commodity futures? There is no comparison you can make to something cheaper wt Vanguard. The returns you get is as good as you will do. ER matters among options in any asset class; if the least expens...
by kayanco
Sun Jun 08, 2014 11:51 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

[Progress update :happy ] Dear folks, based on all the valuable help you all have given me in this thread and elsewhere...I've taken these steps: (instead of figuring out EVERYTHING at the same time, I just implemented a few things, and I'll go from here) 1. Increased retirement contributions to 50%...
by kayanco
Sun Jun 08, 2014 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

Kayanco, I will do my best to answer your questions. My thinking is this: 1) your Equity Index is most likely the S&P 500; 2) Pairing Equity Index with Sm Mid-Cap Core Index will replicate the Total US Stock Market; .... I do have to say, you are spot on!! I found it incredible that you were able t...
by kayanco
Sun Jun 08, 2014 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

From digging more into this incredible useful form and the Wiki.... it looks like.... In my 401(k) if we combine (approx): 80% Equity Index fund (S&P 500) + 20% Small-Mid Cap Core Index Fund (S&P Completion Index) = S&P Total Market Index (I believe "S&P Total Market Index" should be good approximat...
by kayanco
Sun Jun 08, 2014 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

LadyGeek wrote:What is the asset allocation of your selected "pre-mixed" 2045 target date fund?

Image
by kayanco
Sun Jun 08, 2014 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

Will your employer's 401k plan allow you to leave your account there after you leave their employment? Sorry I missed your questions, my bad....Yes they will The 401(k) plan is with Fidelity NetNenefits I don't see the ticker names. And they all say: The investment option has been unitized by Fidel...
by kayanco
Sun Jun 08, 2014 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Basics help! Asset Allocation?/401k/Roth [Confused...]
Replies: 60
Views: 4574

Re: Basics help! 401k/Roth/AA [Confused...]

Tax Filing Status: Single Tax Rate: 25% Federal, 0% State State of Residence: TX . . . . . (looks like I also have option of Roth...but I don't understand this concept at all...please help/guide me!) . . . . . Should I: . . . . . iii) open some other IRA? Roth IRA? (I keep reading about it, but don...