Search found 96 matches

by QBoy
Mon Jan 20, 2014 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Family member's pension was invested into a Ponzi scheme
Replies: 14
Views: 2926

Re: Family member's pension was invested into a Ponzi scheme

If you live near a law school, you might find help there. Sometimes there are pro bono organizations on campus, where students are guided by professors. Your case might well interest them.
by QBoy
Sat Jan 11, 2014 5:11 am
Forum: Personal Investments
Topic: Given High PE10, How about this AA?
Replies: 13
Views: 1124

Re: Given High PE10, How about this AA?

According to Morningstar, the total world equity portfolio is now about 7 to 8 percent emerging markets. So your 25 percent is about three times the market weight.
by QBoy
Wed Jan 08, 2014 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: [Whole / Permanent] Life Insurance: A waste of money?
Replies: 16
Views: 1388

Re: Life Insurance: A waste of money?

My life insurance policy has been a terrible preforming asset, and I am delighted that is the case. If it ever performs well, my wife and kids will be sad but less sad than they would be if I had not made the investment.
by QBoy
Tue Jan 07, 2014 5:03 pm
Forum: Personal Consumer Issues
Topic: Dating, Gender, & Wealth Differences...
Replies: 102
Views: 8633

Re: Dating, Gender, & Wealth Differences...

You might find this research of interest: Gender Identity and Relative Income within Households Marianne Bertrand, Jessica Pan, Emir Kamenica NBER Working Paper No. 19023 Issued in May 2013 Abstract (italics added): We examine causes and consequences of relative income within households. We establis...
by QBoy
Wed Jan 01, 2014 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance for 30 year old
Replies: 27
Views: 4937

Re: Life insurance for 30 year old

I agree that term is a sensible approach for many people, but I would not completely discount life insurance with a savings component, especially if bought from a low-cost company like USAA. If you have maxed out all tax-deferred saving options like IRAs and 401ks, then putting some savings into a ...
by QBoy
Wed Jan 01, 2014 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance for 30 year old
Replies: 27
Views: 4937

Re: Life insurance for 30 year old

I agree that term is a sensible approach for many people, but I would not completely discount life insurance with a savings component, especially if bought from a low-cost company like USAA. If you have maxed out all tax-deferred saving options like IRAs and 401ks, then putting some savings into a l...
by QBoy
Sun Dec 22, 2013 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with a bunch of just-inherited legacy stock?
Replies: 14
Views: 1696

Re: What to do with a bunch of just-inherited legacy stock?

Here is a possibility: If you are giving to charities anyway, use these appreciated shares. You get the charitable deduction at current market value and never have to pay the capital gains tax. The cost basis then becomes irrelevant. If you plan on giving to charities over time, rather than immediat...
by QBoy
Thu Dec 05, 2013 10:27 am
Forum: Personal Consumer Issues
Topic: Learn Statistics? How?
Replies: 40
Views: 3751

Re: Learn Statistics? How?

by QBoy
Wed Dec 04, 2013 7:54 am
Forum: Personal Investments
Topic: If only 3% of your funds were tax-deferred...
Replies: 8
Views: 1120

Re: If only 3% of your funds were tax-deferred...

Yes, REITs. A good diversifier, but very tax inefficient.

Why are you selling munis for total bond? That will end up costing you a lot more in taxes.
by QBoy
Sun Dec 01, 2013 6:11 pm
Forum: Investing - Theory, News & General
Topic: Why does Lipper think VT is tax inefficient?
Replies: 3
Views: 765

Re: Why does Lipper think VT is tax inefficient?

Lipper's tax costs do not match Vanguard's own tax costs for the same fund. I suspect Lipper doesn't know whether dividends are qualified, and assumes that they are all non-qualified; Morningstar's tax costs have the same problem for some funds. In addition, VT has an extra inherent tax cost becaus...
by QBoy
Sun Dec 01, 2013 8:07 am
Forum: Investing - Theory, News & General
Topic: Why does Lipper think VT is tax inefficient?
Replies: 3
Views: 765

Why does Lipper think VT is tax inefficient?

Lipper gives a low tax efficiency rating to VT, the Vanguard Total World ETF. Does anyone know why?

Source of fact:
http://funds.us.reuters.com/US/etfs/ove ... ?symbol=VT
by QBoy
Thu Nov 28, 2013 8:26 am
Forum: Personal Finance (Not Investing)
Topic: should my nephew apply to a top-tier university?
Replies: 274
Views: 17460

Re: should my nephew apply to a top-tier university?

By far the most important thing you get at a top-tier university is a first-rate peer group. The students at these schools are amazing, and their interactions with one another over meals, etc., are hard to replicate. Sure, the faculty is great, but that is not the only, or even the main, reason for ...
by QBoy
Sat Nov 09, 2013 3:55 pm
Forum: Investing - Theory, News & General
Topic: Does the estate tax make tax-deferred accounts less useful?
Replies: 9
Views: 1260

Re: Does the estate tax make tax-deferred accounts less usef

patrick wrote:There seems to be a deduction available for this case:

http://www.bogleheads.org/wiki/Income_i ... a_decedent
Thank you. That does seem very much on point. The rules seem sufficient complex that I am not entirely sure how it works out. Are the two cases then equivalent?
by QBoy
Sat Nov 09, 2013 2:16 pm
Forum: Investing - Theory, News & General
Topic: Does the estate tax make tax-deferred accounts less useful?
Replies: 9
Views: 1260

Does the estate tax make tax-deferred accounts less useful?

I have been wondering whether putting more money into tax-deferred accounts might not be a good idea in some circumstances. Let me illustrate my thinking with a numerical example. Assume an income tax rate of 40 percent and an estate tax rate of 50 percent (including the state estate tax). Now suppo...
by QBoy
Wed Aug 14, 2013 6:40 am
Forum: Personal Investments
Topic: Does Roth conversion make any sense ?
Replies: 18
Views: 2601

Re: Does Roth conversion make any sense ?

If you have kids and want to leave them the money in the IRA, then a conversion may make sense, especially if you can pay tax with money outside the IRA. You would be giving them more tax-preferred assets. Avoiding minimum distribution requirements is then a big plus.
by QBoy
Mon Aug 05, 2013 2:13 pm
Forum: Investing - Theory, News & General
Topic: What is the Role of TIPS in Your Portfolio?
Replies: 71
Views: 6773

Re: Results for 50% TBM (VBTLX) and 50% TIPS (VIPSX)

Our portfolio has been 50% Total Bond Market and 50% TIPS for the past 12 years. I chose 50%/50% because a mathematician once told me that this ratio provides maximum diversification between two non-correlated funds with similar expected return. This is true only if the two funds have the same vari...
by QBoy
Thu Jul 25, 2013 5:09 am
Forum: Personal Investments
Topic: Total Bonds vs TIPS vs Tax Free Muni Bonds
Replies: 7
Views: 2626

Re: Total Bonds vs TIPS vs Tax Free Muni Bonds

The case for munis is strong for those in high tax brackets. Ten year muni yields are very close to ten year Treasury yields: http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/ But with Treasuries you will give up more than 100 basis points per year in taxes. The same is true, of cour...
by QBoy
Thu Jul 25, 2013 4:04 am
Forum: Personal Investments
Topic: VNQ vs VNQI as fourth fund.
Replies: 6
Views: 1636

Re: VNQ vs VNQI as fourth fund.

I would buy both in equal percentages. That would be consistent with your asset allocation between domestic and foreign stocks. Why wait?
by QBoy
Sun Jul 07, 2013 7:45 am
Forum: Personal Investments
Topic: Help me invest $2Million
Replies: 30
Views: 3594

Re: Help me invest $2Million

One risk to consider is your mother outliving the savings she has. Therefore, with part of that savings, you might consider a single premium immediate annuity. Many years ago, when I was in a similar situation, I helped my mother purchase one from USAA, and it has served her well over the years.
by QBoy
Tue Jul 02, 2013 11:01 am
Forum: Personal Consumer Issues
Topic: Safety schools for a Physics/Math kid
Replies: 264
Views: 32593

Re: Safety schools for a Physics/Math kid

Consider the University of Rochester . Very good in physics and a strong program in economics if things change. I agree with this. Rochester is great and was going to be my son's safety before he got into his first choice early decision. Rochester is easier to get into than many comparable schools ...
by QBoy
Tue Jun 25, 2013 9:49 pm
Forum: Personal Investments
Topic: Buying physical gold
Replies: 53
Views: 8932

Re: Buying physical gold

Why not an ETF, such as IAU?
by QBoy
Sat Jun 15, 2013 11:46 am
Forum: Personal Finance (Not Investing)
Topic: What age did you reach 100K networth?
Replies: 433
Views: 95379

Re: What age did you reach 100K networth?

27, several decades ago
by QBoy
Sat Jun 15, 2013 7:33 am
Forum: Investing - Theory, News & General
Topic: Bogleheads' investable assets at retirement
Replies: 43
Views: 7389

Re: Bogelheads' investable assets at retirement

Interesting question, but the range of possible outsomes is not useful. Too many people are in the top category. Maybe you should start another poll with a better range of outcomes.
by QBoy
Thu Jun 13, 2013 1:55 pm
Forum: Personal Investments
Topic: 3 funders with a pinch of gold, silv
Replies: 22
Views: 1941

Re: 3 funders with a pinch of gold, silv

David Swensen has recommended 5% to 10% as the minimum to an asset class. Anything less will not move the "needle" in either direction to have an impact up or down. Mathmetically, that is not true. The world is more continuous than that. Indeed, if you are adding an uncorrelated asset, th...
by QBoy
Thu Jun 13, 2013 12:06 pm
Forum: Personal Investments
Topic: 3 funders with a pinch of gold, silv
Replies: 22
Views: 1941

Re: 3 funders with a pinch of gold, silv

I am tempted to hold a small percentage of portfolio in gold (IAU), say 2 percent of portfolio, on the grounds that its expected return is about the same as bonds and it is not strongly correlated with either stocks or bonds and thus offers diversification benefits. I have started buying a bit, but ...
by QBoy
Wed Jun 12, 2013 11:40 am
Forum: Personal Investments
Topic: 403B -> Roth or 401k? Complicated by new tax brackets
Replies: 1
Views: 333

Re: 403B -> Roth or 401k? Complicated by new tax brackets

The Roth plan seems to make sense for you. The main issue I see is whether you will have the funds for a house down payment when you want to buy. If you are not sure you will, then you might not want to use up that liquidity paying taxes on the conversion.
by QBoy
Tue Jun 11, 2013 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Please give me some tax advice, newly self-employed.
Replies: 18
Views: 1627

Re: Please give me some tax advice, newly self-employed.

Gecko10x wrote:
joebloe wrote:Just get a CPA now. You'll need one anyway.
:D I was going to say that as well!
+1
I have known some financially sophisticated people make terrible tax mistakes when doing their own taxes.
by QBoy
Tue Jun 11, 2013 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Converting SEP IRA contribution to Roth each year
Replies: 39
Views: 2541

Re: Converting SEP IRA contribution to Roth each year

Yes, this is the point: "the Roth gives you, effectively, a higher contribution limit if you are contributing the maximum."
by QBoy
Tue Jun 11, 2013 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Converting SEP IRA contribution to Roth each year
Replies: 39
Views: 2541

Re: Converting SEP IRA contribution to Roth each year

First, you need to understand that paying 28% federal now and paying 28% federal later result in the exact same amount of money. That's just math and it is true if you retire in 1 year or 50 years. That is correct only if you pay the taxes for a conversion from the account itself. If you pay the ta...
by QBoy
Mon Jun 10, 2013 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Converting SEP IRA contribution to Roth each year
Replies: 39
Views: 2541

Re: Converting SEP IRA contribution to Roth each year

First, you need to understand that paying 28% federal now and paying 28% federal later result in the exact same amount of money. That's just math and it is true if you retire in 1 year or 50 years. That is correct only if you pay the taxes for a conversion from the account itself. If you pay the ta...
by QBoy
Sun Jun 09, 2013 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Converting SEP IRA contribution to Roth each year
Replies: 39
Views: 2541

Re: Converting SEP IRA contribution to Roth each year

The main reason NOT to do this is if you expect to need the money in retirement and you expect your tax rate in retirement to be significantly below your current tax rate. QBoy, I agree with your points except for the last part: wouldn't the reason to not convert to Roth be that you need the tax be...
by QBoy
Sun Jun 09, 2013 10:09 am
Forum: Personal Investments
Topic: noob question 3 fund approach
Replies: 3
Views: 565

Re: noob question 3 fund approach

The standard advice is that you can't time the market, so just stick to your proposed asset allocation (which seems reasonable).
by QBoy
Sun Jun 09, 2013 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Converting SEP IRA contribution to Roth each year
Replies: 39
Views: 2541

Re: Converting SEP IRA contribution to Roth each year

I have followed this strategy in recent years. By doing this, you are sheltering more of your assets. When you have 20K in a SEP-IRA, in effect about a third of it belongs to the IRS. Once you convert to a ROTH, all of it is yours. Another advantage: The ROTH has no minimum distribution requirements...
by QBoy
Tue Jun 04, 2013 3:41 pm
Forum: Personal Investments
Topic: Most assets in taxable - Should I get a variable annuity?
Replies: 25
Views: 2038

Re: Most assets in taxable - Should I get a variable annuity

I think variable annuities are given a bit of a bum rap on this forum. If a person 1. is in a high tax bracket, 2. has a long time horizon, 3. wants space to invest tax inefficient assets, like REITS and high yield bonds, and 4. sticks to low cost variable annuities like Vanguards, then I think they...
by QBoy
Sun Jun 02, 2013 3:43 pm
Forum: Personal Investments
Topic: Charles Schwab personal defined benefit plan (pdbp)
Replies: 12
Views: 1546

Re: Charles Schwab personal defined benefit plan (pdbp)

dhodson and I had the same thought about the SEP (which I added as an afterthought). One additional benefit of the SEP is that you have the option to convert to a ROTH.
by QBoy
Sun Jun 02, 2013 3:26 pm
Forum: Personal Investments
Topic: Charles Schwab personal defined benefit plan (pdbp)
Replies: 12
Views: 1546

Re: Charles Schwab personal defined benefit plan (pdbp)

I am considering doing much the same. My accountant tells me that what my regular employer puts into retirement accounts for me does not affect how much I can put away for myself in a DB plan based on my separate self-employment income. Added thought: If you only want to defer about 50K per year, yo...
by QBoy
Mon May 27, 2013 6:01 am
Forum: Personal Finance (Not Investing)
Topic: Purchasing a second home before retiring
Replies: 26
Views: 2489

Re: Purchasing a second home before retiring

As to which mutual funds to sell: I would keep a close eye on the tax implications. Some of your funds may have more unrealized capital gains than others. Keep in mind that the capital gains rate can now be as high as 23.8 percent for those with incomes above 250K, plus whatever your state tax is.
by QBoy
Sun May 26, 2013 2:52 pm
Forum: Personal Consumer Issues
Topic: Do you tip on take out?
Replies: 70
Views: 7272

Re: Do you tip on take out?

No. Tipping is normally for the wait staff. But they are not involved with take out. Who would get the tip in that case?

I do tip for delivery.
by QBoy
Wed May 22, 2013 7:44 am
Forum: Investing - Theory, News & General
Topic: glide path vs. fixed asset allocation [POLL]
Replies: 50
Views: 6858

Re: glide path vs. fixed asset allocation [POLL]

I use a fixed 60/40. I think of myself as investing not just for my own retirement but also for my kids' inheritance. As a result, my time horizon does not shrink as I age. In effect, I am investing for the infinitely-lived QBoy dynasty!
by QBoy
Wed May 22, 2013 6:26 am
Forum: Personal Investments
Topic: Moving from 4-fund portfolio to 3-fund portolio (yes or no)
Replies: 17
Views: 2488

Re: Moving from 4-fund portfolio to 3-fund portolio (yes or

I would keep your current allocation. TIPS are good protection against inflation risk.
by QBoy
Sat May 18, 2013 11:07 am
Forum: Non-US Investing
Topic: Lazy / 3 funds portfolio with ETFs for European (ITA) people
Replies: 21
Views: 3666

Re: Lazy / 3 funds portfolio with ETFs for European (ITA) pe

I would recommend taking a more global view, rather than focusing on Europe, even though you are European. Here is a simple 2 fund portfolio: VT for stocks (vanguard total world index). GTIP for bonds (global inflation indexed bonds). Given your age, I would put more in stocks than bonds, but that d...
by QBoy
Mon May 13, 2013 5:08 pm
Forum: Personal Consumer Issues
Topic: Obtaining University Scholarship(s)
Replies: 54
Views: 3936

Re: Obtaining University Scholarship(s)

Another data point: A close relative received a merit-based scholarship to an Ivy League and the parent was a physician. So they do exist out there. Here's an example: http://en.wikipedia.org/wiki/Vagelos_Scholars_Program_in_Molecular_Life_Sciences That description does not say that the students in...
by QBoy
Mon May 13, 2013 4:12 pm
Forum: Personal Investments
Topic: Active versus Passive
Replies: 29
Views: 2878

Re: Active versus Passive

Given the inherent randomness of returns, there will always be some active funds that beat passive. But it is impossible to know which they will be in advance. Studies have found that those that outperform cannot be reliably predicted to continue outperforming. Just because someone has flipped a coi...
by QBoy
Mon May 13, 2013 5:08 am
Forum: Personal Consumer Issues
Topic: Obtaining University Scholarship(s)
Replies: 54
Views: 3936

Re: Obtaining University Scholarship(s)

Victoria writes: The top schools have generous endowments and have their ways to attract top students. They use more favorable formulas for calculating financial aid and provide interesting opportunities to earn money from part-time jobs. Not only going to one of the top universities has long-term b...
by QBoy
Sun May 12, 2013 5:37 pm
Forum: Personal Consumer Issues
Topic: Obtaining University Scholarship(s)
Replies: 54
Views: 3936

Re: Obtaining university scholarship(s)

The most elite schools, such as the Ivy League, do not give academic scholarships (that is, scholarships based on academics rather than need). Lower ranked schools do. Their goal is to attract students who would otherwise go to the most elite schools. The student then faces the choice of paying full...
by QBoy
Sun May 05, 2013 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Schwab Personal DB Plan [Defined Benefit]
Replies: 4
Views: 1501

Schwab Personal DB Plan [Defined Benefit]

First post. Long-time lurker. I have some questions I bet the community here can help with. I have significant self-employment income and, like most here, a high saving rate. I have been putting the max into a SEP-IRA. I am now considering switching to a personal defined benefit plan, because I unde...