Search found 6895 matches

by JBTX
Sat Oct 17, 2020 1:37 pm
Forum: Personal Investments
Topic: newbie questions on retirement planning with new job. 403b annuity, 403b match, and 401a plans
Replies: 10
Views: 615

Re: newbie questions on retirement planning with new job. 403b annuity, 403b match, and 401a plans

good afternoon bogleheads I am looking at starting at a new job and I just wanted some help understanding some of the retirement options available to me: 403b tax deferred annuity I understand a 403b is like a 401k but how does an annuity work? how does this differ than the typical 401k where you i...
by JBTX
Sat Oct 17, 2020 1:32 pm
Forum: Personal Investments
Topic: Reason NOT to move $100k Roth 403b -> Roth IRA?
Replies: 13
Views: 1008

Re: Reason NOT to move $100k Roth 403b -> Roth IRA?

Only thing I can think of is 401ks (and presumably 403bs?) often have better liability / bankruptcy protections than Individual IRAs. This is heavily dependent on state law. It's a big advantage in CA. Somewhat less in states like TX which have decent IRA liability protection. If I have a good chea...
by JBTX
Sat Oct 17, 2020 1:25 pm
Forum: Personal Investments
Topic: Should I have a taxable account if I'm not maxing retirement accounts?
Replies: 77
Views: 5457

Re: Should I have a taxable account if I'm not maxing retirement accounts?

Absolutely. Save as much as you reasonably can, even if in taxable account. If invested in tax efficient index funds the ongoing tax liability will be minimal.
by JBTX
Sat Oct 17, 2020 1:20 pm
Forum: Personal Investments
Topic: Reason NOT to move $100k Roth 403b -> Roth IRA?
Replies: 13
Views: 1008

Re: Reason NOT to move $100k Roth 403b -> Roth IRA?

Only thing I can think of is 401ks (and presumably 403bs?) often have better liability / bankruptcy protections than Individual IRAs. This is heavily dependent on state law. It's a big advantage in CA. Somewhat less in states like TX which have decent IRA liability protection. If I have a good cheap...
by JBTX
Sat Oct 17, 2020 11:44 am
Forum: Personal Investments
Topic: Roll over IRA to 401K?
Replies: 13
Views: 1071

Re: Portfolio question

Just to grt things started TLH - I'll reserve that response for others. My only response it don't get too wrapped up thinking you need to do it. Bonds - I'd look into ibonds, and possibly eebonds, on treasury direct. They can serve as your bond allocation and your emergency funds, and currently have...
by JBTX
Sat Oct 17, 2020 11:31 am
Forum: Investing - Theory, News & General
Topic: Anybody here trying Coast FIRE?
Replies: 258
Views: 20285

Re: Anybody here trying Coast FIRE?

The acronym soup of the FIRE movement is getting a little out there. Financial independence means you don’t have to work for money if you don’t want to. I would very much consider myself a part of that movement, broadly speaking. But Coast FIRE is just changing jobs and taking longer to get to FI. ...
by JBTX
Sat Oct 17, 2020 11:07 am
Forum: Personal Investments
Topic: not entirely new, but knowledge is power right?
Replies: 35
Views: 2988

Re: not entirely new, but knowledge is power right?

I'd start with VTSAX, and down the road when you save enough ($10k or more) also get Vanguard total international. As to debt, I don't understand your question. High interest debt should be paid off asap. Low interest debt, like a mortgage or some student loans, can be held longer, with the priority...
by JBTX
Sat Oct 17, 2020 10:53 am
Forum: Investing - Theory, News & General
Topic: Anybody here trying Coast FIRE?
Replies: 258
Views: 20285

Re: Anybody here trying Coast FIRE?

It never made sense to me either. From my real world experience, from 1998 to 2013.. I had zero real returns after inflation. Counting on 6% every year (or whatever number you care to use) that will let you "coast" into FIRE seems like a pretty big gamble vs. guaranteed wage savings. (I plan to FIR...
by JBTX
Sat Oct 17, 2020 10:31 am
Forum: Investing - Theory, News & General
Topic: Anybody here trying Coast FIRE?
Replies: 258
Views: 20285

Re: Anybody here trying Coast FIRE?

The acronym soup of the FIRE movement is getting a little out there. Financial independence means you don’t have to work for money if you don’t want to. I would very much consider myself a part of that movement, broadly speaking. But Coast FIRE is just changing jobs and taking longer to get to FI. ...
by JBTX
Sat Oct 17, 2020 12:46 am
Forum: Investing - Theory, News & General
Topic: Big Mac Index and Bogleheaders' Thoughts on it
Replies: 41
Views: 3224

Re: Big Mac Index and Bogleheaders' Thoughts on it

Who eats Big Mac? When I go to McDonald's and have a burger it is usually a quarter pounder. And where is a Big Mac higher than $5? You can get a mcdouble for $2 I think. But I will say the big Mac index reflects what inflation "feels" like. It seems like prices are gradually going up, more than wha...
by JBTX
Sat Oct 17, 2020 12:30 am
Forum: Personal Investments
Topic: Need portfolio advice heading into retirement
Replies: 5
Views: 954

Re: Need portfolio advice heading into retirement

1. You can only contribute to iras or Roths if you have earned income (ie work income). If you have earned income in retirement, and have the ability to fund a Roth, I would certainly do so. You can always pull out your contribution if you need it in an emergency, otherwise it grows tax free. 2. If ...
by JBTX
Sat Oct 17, 2020 12:16 am
Forum: Investing - Theory, News & General
Topic: Anybody here trying Coast FIRE?
Replies: 258
Views: 20285

Re: Anybody here trying Coast FIRE?

This is great! Now instead of FIRE at 35 years, you can "Coast Fire" at 30! All one had to do was rename FIRE and you can retire 5 years earlier!! This works because the market always goes up. That is so totally awesome! What could possibly go wrong? Yeah, if you had a high paying job that you hate...
by JBTX
Fri Oct 16, 2020 11:52 pm
Forum: Investing - Theory, News & General
Topic: Anybody here trying Coast FIRE?
Replies: 258
Views: 20285

Re: Anybody here trying Coast FIRE?

This is great! Now instead of FIRE at 35 years, you can "Coast Fire" at 30! All one had to do was rename FIRE and you can retire 5 years earlier!! This works because the market always goes up. That is so totally awesome! What could possibly go wrong?
by JBTX
Fri Oct 16, 2020 2:18 pm
Forum: Personal Consumer Issues
Topic: Building a new house - Successes and regrets?
Replies: 53
Views: 4992

Re: Building a new house - Successes and regrets?

Prewire home for alarm system, even if you don't plan to use it. Much easier to wire all points, windows, doors, potential motion detectors during construction. Including fire alarm. If bugs are a concern - there is "tubes in the wall" that distributes insecticides inside the walls, and also tubes i...
by JBTX
Fri Oct 16, 2020 1:46 pm
Forum: Personal Investments
Topic: Restating solo 401k every six years
Replies: 5
Views: 480

Re: Restating solo 401k every six years

The one-participant 401k provider (E-Trade, Fidelity, Schwab, TD Ameritrade and Vanguard) will restate the 401k plan. This involves updating the plan document with any mandatory amendments. For example, the SECURE ACT made several changes affecting 401k plans. There is an amendment window (maybe 3 ...
by JBTX
Fri Oct 16, 2020 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: 15 or 10 year mortgage...or cash
Replies: 17
Views: 1134

Re: 15 or 10 year mortgage...or cash

The interest differential (mortgage interest less interest earned on proceeds) will be pretty small compared to your income. Is it worth it to pay $1k to $2k interest differential per year to have the liquidity? In our case that is what we are doing and the answer is yes. Minimize the differential b...
by JBTX
Fri Oct 16, 2020 1:08 pm
Forum: Investing - Theory, News & General
Topic: Has the growing trend of blindly buying index funds caused market inefficiency?
Replies: 44
Views: 4418

Re: Has the growing trend of blindly buying index funds caused market inefficiency?

As long as there are ample active investors setting prices, there shouldn't be inefficiencies. You could, in theory, get to such a high percentage of indexers that perhaps it would be an issue, but it is doubtful that will ever happen. Wall Street firm employees can't collect 7 figure bonuses invest...
by JBTX
Fri Oct 16, 2020 1:01 pm
Forum: Investing - Theory, News & General
Topic: Money is cheap, Financial Assets seem overvalued - should I buy stuff?
Replies: 10
Views: 1197

Re: Money is cheap, Financial Assets seem overvalued - should I buy stuff?

justsomeguy2018 wrote: Fri Oct 16, 2020 11:21 am If money is cheap and financial assets are expensive, does it make sense to buy stuff? E.g. a new car, remodeled kitchen, etc.
I think we can call this the Keynesian school of personal finance.
by JBTX
Fri Oct 16, 2020 12:36 pm
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

nix4me wrote: Fri Oct 16, 2020 12:20 pm Ibonds are paying 1%. Loosing money to inflation. Meh. I prefer No-bonds.
That's great and is a defensible position, as long as you can weather) a 50-70% loss in equities at any point in time. Most people cannot.

By definition ibonds return inflation.
by JBTX
Fri Oct 16, 2020 12:30 pm
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

It’s fine if you like paying more taxes. Bonds belong in tax advantaged accounts. Not necessarily. You keep giving out terrible advice. My responses align with the tax code for dividends and the Boglehead wiki and Boglehead methods. Your terrible advice does not. from the wiki If you have both tax-...
by JBTX
Fri Oct 16, 2020 11:47 am
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

Don’t put that Lifestrategy fund in a taxable account. It’s very tax in-efficient due to the bonds. In most cases this is not true at all. A life strategy in taxable is fine. It’s fine if you like paying more taxes. Bonds belong in tax advantaged accounts. Not necessarily. You keep giving out terri...
by JBTX
Fri Oct 16, 2020 10:25 am
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

Hello totality Tinkering is an issue especially once the account grows in size. Honestly i am in the cap for “One fund portfolio across all accounts” for simplicity reasons. And it would make it super simple to manage the account for heirs. Have you gone over this thread? https://www.bogleheads.org...
by JBTX
Thu Oct 15, 2020 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: What would your retirement number be if?
Replies: 30
Views: 6614

Re: What would your retirement number be if?

Back of the envelope calculation.

Using 3.0% SWR.

SS average over remainder of life is about $30k per year. $120k - $30k = $90k from investments. $90k / .03 = $3 million. Fairly conservative methodology.
by JBTX
Thu Oct 15, 2020 8:28 pm
Forum: Personal Investments
Topic: Restating solo 401k every six years
Replies: 5
Views: 480

Restating solo 401k every six years

I have heard and read solo 401ks must be restated every six years. What does that mean? What do i have to do?

I have Vanguard solo 401k.
by JBTX
Thu Oct 15, 2020 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Social security. Take it at 62 [Motley Fool article]
Replies: 222
Views: 19612

Re: Social security. Take it at 62 [Motley Fool article]

Ignoring the fact that 2% is more than CDs are paying today (the article is dated November 2019), the author is using a nominal rate of return instead of a real rate of return. He should be using the latter since SS benefits are indexed to inflation. Thanks for confirming this- that they ignored in...
by JBTX
Thu Oct 15, 2020 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Not taking some schedule C business expenses to raise income over the poverty level to avoid Medicaid & keep ACA.
Replies: 30
Views: 2052

Re: Not taking some schedule C business expenses to raise income over the poverty level to avoid Medicaid & keep ACA.

Various scattershot ideas: - you can increase income by billing in advance in the current tax year, if possible -you can decrease expenses by waiting to pay them until next year, if possible. -change the way you recognize home office deduction to the simplified method, which is a lower deduction. Or...
by JBTX
Thu Oct 15, 2020 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Not taking some schedule C business expenses to raise income over the poverty level to avoid Medicaid & keep ACA.
Replies: 30
Views: 2052

Re: Not taking some schedule C business expenses to raise income over the poverty level to avoid Medicaid & keep ACA.

by over-reporting income you could avoid going on Medicaid + you'd earn the ACA premium tax credit (not necessarily the intent of this thread's OP) which might cost the Treasury in the long run. Maybe? The ACA gives a subsidy to buy private insurance. Medicaid IS the insurance. So lets say the subs...
by JBTX
Thu Oct 15, 2020 4:56 pm
Forum: Personal Investments
Topic: Really confused about tax loss harvesting. Plz Help.
Replies: 19
Views: 1389

Re: Really confused about tax loss harvesting. Plz Help.

Do you have any articles or tips on handling TLH myself? I thought the reason for using robo investors is because it is very complicated? Thanks! Tax loss harvesting is one of the finer points of investing and for most less meaningful. For the most part TLH is just tax deferral. You get far more ba...
by JBTX
Thu Oct 15, 2020 8:39 am
Forum: Personal Finance (Not Investing)
Topic: The Value of a Business Deduction in a low/no income year.
Replies: 5
Views: 309

Re: The Value of a Business Deduction in a low/no income year.

I think I have the tax tail wagging the investment/1099 dog. I am wondering if I am missing a key basic concept. I think I am going to have a loss this year on my Schedule C. I as of this point have no 1099 or W2 earnings but some Unemployment Income. I usually make my money as a 1099 Sole Prop (no...
by JBTX
Wed Oct 14, 2020 11:39 pm
Forum: Investing - Theory, News & General
Topic: The Wrong Way to Think About Debt - The White Coat Investor
Replies: 164
Views: 19745

Re: The Wrong Way to Think About Debt - The White Coat Investor

So I shouldn’t go skiing because I have a 30-year mortgage. If I lived like that, I could probably pay off my mortgage in 10 years instead of 30. I’d rather hit the slopes. Balance in all things. I hit the slopes many times when we had a mortgage. It's just important to recognize that when you have...
by JBTX
Wed Oct 14, 2020 10:28 pm
Forum: Investing - Theory, News & General
Topic: The Wrong Way to Think About Debt - The White Coat Investor
Replies: 164
Views: 19745

Re: The Wrong Way to Think About Debt - The White Coat Investor

Great article and thank you White Coat Investor. This is my reply to the post's 2 questions and 14 reasons. If I wasn't able to answer these points, perhaps I am looking at debt the wrong way. 1. No, I am not rich 2. I don't know why I shouldn't answer the second question just because I am not rich...
by JBTX
Wed Oct 14, 2020 10:12 pm
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

I have 1 fund in my taxable account. VTI And I remind myself every time I think about doing something else that it will cause more taxes, which I hate, which makes me just put more into VTI. Bonds are terrible, especially for a young person and especially right now. Don’t buy bonds. International i...
by JBTX
Wed Oct 14, 2020 10:08 pm
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

Hello totality Tinkering is an issue especially once the account grows in size. Honestly i am in the cap for “One fund portfolio across all accounts” for simplicity reasons. And it would make it super simple to manage the account for heirs. Have you gone over this thread? https://www.bogleheads.org...
by JBTX
Wed Oct 14, 2020 10:01 pm
Forum: Personal Investments
Topic: Managing Parents' Retirement After Dementia Diagnosis
Replies: 27
Views: 2755

Re: Managing Parents' Retirement After Dementia Diagnosis

While the advisor likely isn't using the investing style many here use, given the history, the amount and the reasonably conservative allocation I wouldn't suggest changing anything right away. I'd probably just try to get a portfolio composition of investments to make sure there isn't anything over...
by JBTX
Wed Oct 14, 2020 9:43 pm
Forum: Investing - Theory, News & General
Topic: Tipswatch: November 1, 2020 I Bond combosite rate of 1.68%
Replies: 2
Views: 635

Re: Tipswatch: November 1, 2020 I Bond combosite rate of 1.68%

Based on the latest Tipswatch post, the November 1, 2020 I Bond composite rate will likley be 1.68% (0% fixed rate, 1.68% variable rate). https://tipswatch.com/2020/10/14/unique-opportunity-i-bonds-as-an-11-month-investment/ With interest rates now in the gutter, I Bonds have become more and more a...
by JBTX
Wed Oct 14, 2020 9:37 pm
Forum: Personal Investments
Topic: Really confused about tax loss harvesting. Plz Help.
Replies: 19
Views: 1389

Re: Really confused about tax loss harvesting. Plz Help.

Do you have any articles or tips on handling TLH myself? I thought the reason for using robo investors is because it is very complicated? Thanks! Tax loss harvesting is one of the finer points of investing and for most less meaningful. For the most part TLH is just tax deferral. You get far more ba...
by JBTX
Wed Oct 14, 2020 9:08 pm
Forum: Investing - Theory, News & General
Topic: Seriously, what is going on with international?
Replies: 216
Views: 19617

Re: Seriously, what is going on with international?

Is a Japan scenario even possible in the US? and what are the likely chances? If it's something like 1%, should it have an impact on your AA? How can you possibly guess that a Japan scenario is only a 1% probability? While I don't see a Japan scenario as likely, a Japan - lite scenario is plausible...
by JBTX
Wed Oct 14, 2020 8:53 pm
Forum: Personal Investments
Topic: Roth Conversion - Is it worth to pay taxes upfront to convert
Replies: 53
Views: 4175

Re: Roth Conversion - Is it worth to pay taxes upfront to convert

I am making deductible contributions to 401k/457/403b. This caught my eye. If you are filling 3 different tax-deferred accounts (and maybe another one for your spouse?) you may be contributing too much to tax-deferred accounts. Before continuing to do this for many years, you should give some consi...
by JBTX
Wed Oct 14, 2020 8:31 pm
Forum: Personal Investments
Topic: Too cash heavy, but do not know how to begin - please help :)
Replies: 35
Views: 4823

Re: Too cash heavy, but do not know how to begin - please help :)

Hey all - As stated in the title, I am being advised by most of my most trusted confidants that I am making major financial mistakes but being too heavily leveraged in cash. I do have a few friends RobinHood'ing and making a killing so I am having a bit of FOMO, but I am also very risk adverse. Sit...
by JBTX
Wed Oct 14, 2020 7:04 pm
Forum: Investing - Theory, News & General
Topic: The Wrong Way to Think About Debt - The White Coat Investor
Replies: 164
Views: 19745

Re: The Wrong Way to Think About Debt - The White Coat Investor

Whether the money was borrowed or earned shouldn't make a difference as to whether they invest it or waste it on consumption. This is a really interesting concept I've spent a lot of time thinking about and will likely continue to think about in the future. In reality, since most of us have debt, m...
by JBTX
Wed Oct 14, 2020 6:25 pm
Forum: Personal Investments
Topic: Is it worth to do SEP IRA or solo 401k if short term?
Replies: 32
Views: 1469

Re: Is it worth to do SEP IRA or solo 401k if short term?

I have vanguard solo 401k as a (former) sole proprietor and it was easy to set up and really no incremental effort to maintain. As others have said Vanguard is in some ways one of the more inflexible plans in that you can't do roll ins and can't have other family members on the plan.
by JBTX
Wed Oct 14, 2020 6:11 pm
Forum: Investing - Theory, News & General
Topic: The Wrong Way to Think About Debt - The White Coat Investor
Replies: 164
Views: 19745

Re: The Wrong Way to Think About Debt - The White Coat Investor

I refinanced a house with a mortgage in the amount of $280 K almost 9 years ago. I had two choices -- either a 30 year at 3.5% or a 15 year at 2.875%. I took the 30 year at 3.5% and invested the difference every month in VTSAX. After 9 years: Mortgage balance = $225 K Mortgage balance assuming 15 y...
by JBTX
Wed Oct 14, 2020 5:42 pm
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3518

Re: How to avoid behavioral errors in a taxable account?

I am in my 30s, and got serious about saving for retirement a handful of years ago. Since then I've been maxing out my 401k and Roth IRA, and also putting a bit of money leftover into a taxable brokerage account. I have no debt, and a few years of expenses saved in an emergency fund. My 401k and Ro...
by JBTX
Tue Oct 13, 2020 1:16 am
Forum: Investing - Theory, News & General
Topic: How do Bogleheads cope with not beating the market?
Replies: 142
Views: 10529

Re: How do Bogleheads cope with not beating the market?

I realize I am finally becoming an investor instead of a speculator. I felt really good and less stressed when I finally completed a buy and hold asset allocation portoflio. But then I got a little bored and thought I have all this free time to fill. Shouldn't I apply it to optimizing / tweaking th...
by JBTX
Mon Oct 12, 2020 8:25 pm
Forum: Investing - Theory, News & General
Topic: "Millennial Millionaire" a Gem
Replies: 20
Views: 3888

Re: "Millennial Millionaire" a Gem

I am sure there are a lot of Bogleheads who could write a similar book. That's a bit unfairly dismissive imo. In the end it's execution that matters; unrealized potential isn't worth much. You caught me before I edited post. Personally I tend to think a book should bring something new to the table,...
by JBTX
Mon Oct 12, 2020 8:21 pm
Forum: Personal Consumer Issues
Topic: Equifax - need advice regarding logging in (refi)
Replies: 9
Views: 406

Re: Equifax - need advice regarding logging in (refi)

Equifax login has a been broken for months. You have to use automated phone service to freeze unfreeze account. Recently went through this with my sons frozen acct . Other credit agencies web site works fine. I found info about issue via Google search. I had no problem unfreezing mine about a month...
by JBTX
Mon Oct 12, 2020 8:10 pm
Forum: Investing - Theory, News & General
Topic: "Millennial Millionaire" a Gem
Replies: 20
Views: 3888

Re: "Millennial Millionaire" a Gem

Never mind.
by JBTX
Mon Oct 12, 2020 8:06 pm
Forum: Investing - Theory, News & General
Topic: The Wrong Way to Think About Debt - The White Coat Investor
Replies: 164
Views: 19745

Re: The Wrong Way to Think About Debt - The White Coat Investor

Based on the title of this blog I assume the target audience is doctors. A quick google search shows the bulk of medical school student debt interest is 6.36%-7.41%. I have heard it is quite tempting for a young doctor to reward their 30 years of diligence by splurging on luxury goods and oversized...
by JBTX
Mon Oct 12, 2020 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - transfer on death vs will
Replies: 36
Views: 2662

Re: Estate planning - transfer on death vs will

Hello I am trying to work on an estate plan and was hoping to get some input. My understanding is: Transfer on death - this allows transfer of the account on death of the account holder without probate and this would bypass the will as well. This is different than beneficiaries and most useful for ...