Search found 8889 matches

by Spirit Rider
Sun Oct 13, 2013 10:32 am
Forum: Personal Consumer Issues
Topic: Used car dealers don't really negotiate any more.. true?
Replies: 34
Views: 13114

Re: Used car dealers don't really negotiate any more.. true?

There really are two different dynamics between new cars and used cars. However, I have used a similar successful approach to both. In both cases you need to not look at the retail price, but the dealers competitive pressure. Bottom up, not top down. New car invoice prices (including holdbacks, etc....
by Spirit Rider
Sun Oct 13, 2013 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Is law no longer a viable career option for young people?
Replies: 36
Views: 4925

Re: Is law no longer a viable career option for young people

The bigger truth is that even if you do find initial employment, it is no career guarantee. Even smaller firms will work their associates to death. Then after they have burned you out, you either make partner or you are out, because they always have fresh cannon fodder available. I dated a couple of...
by Spirit Rider
Sat Oct 12, 2013 5:00 pm
Forum: Investing - Theory, News & General
Topic: Catch-up contributions
Replies: 20
Views: 2211

Re: Catch-up contributions

My friend turned 50 a few months ago so he became eligible for catch-up contributions in both his Roth IRA and his employer's 457b plan. The 457b catch-up contribution is the same as the 401k catch-up contribution ($5,500; I think you had a type there because you got the total limit correct). Thank...
by Spirit Rider
Sat Oct 12, 2013 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k Contribution vs. Payroll Tax
Replies: 16
Views: 3143

Re: Solo 401k Contribution vs. Payroll Tax

The IRS rules including contribution calculations try to be neutral between a sole proprietorship and an S-Corp. As ObliviousInvestor mentioned, it isn't really self-employment (SE) tax in an S-Corp. The 1/2 of FICA is paid by the S-Corp and 1/2 paid by the "employee", just like any other regular W2...
by Spirit Rider
Sat Oct 12, 2013 3:06 pm
Forum: Investing - Theory, News & General
Topic: Catch-up contributions
Replies: 20
Views: 2211

Re: Catch-up contributions

IRA contributions and 401k contributions have separate limits. A contribution to one does not affect a contribution to the other. If you have a 401k, the deductibility of a traditional IRA contribution may be limited by income. A Roth IRA contribution may be limited by income regardless of whether y...
by Spirit Rider
Fri Oct 11, 2013 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Loan Help for a newbie
Replies: 13
Views: 1140

Re: Loan Help for a newbie

You may want to consider that they wanted to give you this head start on life. Consider gifting them the most value asset in the universe; time . Don't be a stranger and if you have children or if/when you do have them, time with them too. I don't mean babysitting, I mean be generous with their acce...
by Spirit Rider
Fri Oct 11, 2013 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: UGMA and College Aid
Replies: 6
Views: 548

Re: UGMA and College Aid

Starting with the 2009/2010 school year a 529 owned by the student is considered a parental asset (assed at 2.6%-5.6% instead of 20%). That said individual private colleges still may assess a student owned 529 differently for purposes of their financial aid package. If the OP already knows the speci...
by Spirit Rider
Fri Oct 11, 2013 3:04 pm
Forum: Investing - Theory, News & General
Topic: Should I use my margin to buy bonds?
Replies: 41
Views: 14027

Re: Should I use my margin to buy bonds?

The only arbitrage that Bogleheads would consider acceptable would be risk-free arbitrage. This means principal protected assets with no credit/interest rate risk. Bonds depending on issuer are subject to credit and/or interest rate risk. The only destination investments that I can think meet these ...
by Spirit Rider
Thu Oct 10, 2013 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring wealth from one person to another
Replies: 17
Views: 2735

Re: Transferring wealth from one person to another

If your grandfather and/or your father are married, then the amounts can be increased. If one is true then $28K/year could be transferred without using the lifetime exclusion. If both are true then $56K/year could be transferred. If your father needs the money over a number of years, there is no rea...
by Spirit Rider
Thu Oct 10, 2013 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: For TIPS ladder, IBonds versus TIPS?
Replies: 20
Views: 2149

Re: For TIPS ladder, IBonds versus TIPS?

And you can buy an additional $5k per year in paper I Bonds via your tax refund. So does that means I need to overpay my taxes in order to get the extra $5K in paper I bonds? And, while the current base rate is 0%, at some point will that rise when interest rates are unbound by the Fed? Yes, you st...
by Spirit Rider
Wed Oct 09, 2013 9:39 am
Forum: Investing - Theory, News & General
Topic: SPIA - Interest vs Principle ?
Replies: 14
Views: 1129

Re: SPIA - Interest vs Principle ?

Thanks guys ! If a single male was to begin receiving payments now at age 60, the interest rate looks to be 2.4%. That's using a 25 years worth of payments with no survivor benefit. Add a surviving wife benefit and the rate plummets to 1.4%. Are you sure you are factoring in mortality credits? Your...
by Spirit Rider
Mon Oct 07, 2013 10:57 am
Forum: Personal Consumer Issues
Topic: Renting a House, What Should Be on a Lease Agreement?
Replies: 9
Views: 1535

Re: Renting a House, What Should Be on a Lease Agreement?

Also, because it is a house make sure there are clear terms on yard maintenance. House Repairs (inside and out) are usually the responsibility of the landlord. However, depending on your location, snow removal may be a big issue as well as lawn maintenance. Snow removal is usually (but not always) a...
by Spirit Rider
Sat Oct 05, 2013 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Convert from W2 to 1099 to enable pre-tax retirement savings
Replies: 6
Views: 1200

Re: Convert from W2 to 1099 to enable pre-tax retirement sav

...Self-Employment (SE) tax is 7.065% of net self-employment income (7.65% * 92.35% of income) I don't think this clearly communicates the self-employment tax burden. Though the communication problem may simply be typos. SE tax is 15.3% of self-employment income if person operates as sole proprieto...
by Spirit Rider
Fri Oct 04, 2013 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Convert from W2 to 1099 to enable pre-tax retirement savings
Replies: 6
Views: 1200

Re: Convert from W2 to 1099 to enable pre-tax retirement sav

Pay attention to what jsl11 is saying. Search for IRS twenty questions employee vs. contractor on the web. You need to consider all benefits provided when determining a self-employment rate. Self-Employment (SE) tax is 7.065% of net self-employment income (7.65% * 92.35% of income) paid time off day...
by Spirit Rider
Wed Oct 02, 2013 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Quick question regarding SEP-IRA and TIRA
Replies: 1
Views: 196

Re: Quick question regarding SEP-IRA and TIRA

Yes, the two limits are separate.
by Spirit Rider
Tue Oct 01, 2013 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Changing Jobs - COBRA Question
Replies: 10
Views: 11058

Re: Changing Jobs - COBRA Question

There are really two major issues COBRA (coverage continuation) and HIPPA (pre-existing conditions) With COBRA you actually have 60 days from the receipt of the notice from your previous employer to "elect" coverage. Then you have 45 days to send in the first premium. So you really have 105 days aft...
by Spirit Rider
Tue Oct 01, 2013 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) HCE provision - How does it actually work?
Replies: 16
Views: 1420

Re: 401(k) HCE provision - How does it actually work?

I didn't see anyone else mentioning this. The non-discrimination testing does not apply to the catch-up amount. You are entitled to the full amount (2013=$5500) So if your company has separate buckets make sure that one is maxed out. If the company doesn't have separate buckets, the catch-up is remo...
by Spirit Rider
Mon Sep 30, 2013 11:48 pm
Forum: Personal Consumer Issues
Topic: Travel for work expense reporting
Replies: 14
Views: 1050

Re: Travel for work expense reporting

If your company said you could spend $25 for breakfast, $50 for lunch, and $75 for dinner, would you spend the max? The policy at my job states that receipts must be provided and meals are to go towards only the individual unless its with business clients. As a Boglehead, my individual meal expense...
by Spirit Rider
Sat Sep 28, 2013 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Paycheck ?: Employer cont. to 401k deducted AFTER fed. tax
Replies: 12
Views: 2506

Re: Paycheck ?: Employer cont. to 401k deducted AFTER fed. t

All employer 401k contributions are required to be before tax. It doesn't matter whether it is profit sharing or match. With a match it doesn't matter if it is based on a before tax (traditional 401k) or an after tax (Roth 401k) employee contribution. You definitely need to get this verified/correct...
by Spirit Rider
Fri Sep 27, 2013 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for a Friend (low income, windfall)
Replies: 20
Views: 1991

Re: Asset Allocation for a Friend (low income, windfall)

I also like the idea of waiting till later in the year, and possibly making a traditional ira contribution to make bigger use of the savers credit. Although... does this 18,000 count as income? That would blow the whole scheme. And I endorse saving some money until next year to make a second contri...
by Spirit Rider
Fri Sep 27, 2013 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Is a hand-written Federal tax return an audit magnet?
Replies: 32
Views: 10172

Re: Is a hand-written Federal tax return an audit magnet?

The general point is that you want to avoid a human being "reviewing" your return. Missing or incorrect information will cause the computer to reject your return and route it for a review. However, the review we are talking about is a review of the total content of the return. It just so happens tha...
by Spirit Rider
Fri Sep 27, 2013 2:07 pm
Forum: Investing - Theory, News & General
Topic: Fidelity target date funds pile on stocks
Replies: 65
Views: 6417

Re: Fidelity target date funds pile on stocks

[OT comment removed by admin LadyGeek] Vanguard has grown because the amount of investor assets has grown exponentially since 1976 when VG introduced the S & P 500 fund. [Response to OT comment removed by admin LadyGeek] However, Vanguard has grown because marketing has driven decisions on offering...
by Spirit Rider
Fri Sep 27, 2013 10:28 am
Forum: Investing - Help with Personal Investments
Topic: New Poster. Talk me out of 100%stock allocation
Replies: 50
Views: 10063

Re: New Poster. Talk me out of 100%stock allocation

I for one consider the frequency of the "why not 100% equities" a contrary indicator. They peaked in late 1999, late 2007, and starting now. We didn't see these questions in early 2002 or early 2009. To me the fact of the timing of the question is the answer. That along with "I am sitting in cash, i...
by Spirit Rider
Fri Sep 27, 2013 10:15 am
Forum: Personal Finance (Not Investing)
Topic: "Notice of Revocation of Modified Administration"
Replies: 6
Views: 997

Re: "Notice of Revocation of Modified Administration"

i googled this exact phrase for pennsylvania-it appears that although the preliminary filing was done a final deposition must be sent so they can officially close it out. I suggest you contact the lawyer who handled this and tell him this Ok - what does "deposition" mean basically? I assume he mean...
by Spirit Rider
Fri Sep 27, 2013 9:16 am
Forum: Investing - Theory, News & General
Topic: Fidelity target date funds pile on stocks
Replies: 65
Views: 6417

Re: Fidelity target date funds pile on stocks

Vanguard, Fidelity, T Rowe Price and TIAA/CREF are the largest provider of Target Date Funds T Rowe Price has the highest stock/bond ratio, it has the best 5 year return, people notice that and they advertise that, its funds are selling very well, Fidelity noticed that too, Vanguard may notice that...
by Spirit Rider
Wed Sep 25, 2013 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: 401K limitations with 2 employers in same year
Replies: 8
Views: 968

Re: 401K limitations with 2 employers in same year

Your max employee deferral contribution at the new company is $8150 (17500-9350). Your friend might be mistakenly confusing the fact that an employer contribution is limited to 25%. This is usually relevant only for the self-employed. I have yet to hear of a company with a 25% match or profit sharin...
by Spirit Rider
Wed Sep 25, 2013 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Tenant that moved out won't pay back rent
Replies: 34
Views: 3289

Re: Tennant that moved out won't pay back rent

We are just going to have to agree to disagree.

OP, I think this is terrible advice. Take whatever legal action is appropriate, but I advise against anything that appears retaliatory in nature.
by Spirit Rider
Wed Sep 25, 2013 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Tenant that moved out won't pay back rent
Replies: 34
Views: 3289

Re: Tennant that moved out won't pay back rent

How does FDCPA apply to a landlord trying to collect a debt from the tenant? FDCPA only applies to debt collection agencies, not to parties who are trying to collect a debt owed to them under a legally enforceable contract. http://oag.ca.gov/consumers/general/collection_agencies10 OK, so the FDCPA ...
by Spirit Rider
Wed Sep 25, 2013 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tenant that moved out won't pay back rent
Replies: 34
Views: 3289

Re: Tennant that moved out won't pay back rent

If you want to get the money back send her a certified letter informing her that if she doesn't pay the back rent you will notify her employer that she is a dead beat and that you are going to sue her in small claims court to recover the debt. As a new doctor she will not want her employer to know ...
by Spirit Rider
Wed Sep 25, 2013 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) Advice
Replies: 34
Views: 4027

Re: 401(k) Advice

ieee488 wrote:Interesting that the company is also matching on a Roth IRA. Never seen that before.
The company is not matching a Roth IRA. It is matching either traditional 401k (pre-tax 401k) or Roth 401k (post-tax 401k) contributions. All employer contributions (profit sharing or match) are always pre-tax.
by Spirit Rider
Tue Sep 24, 2013 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Transamerica IRA compared to fidelity
Replies: 8
Views: 5885

Re: Transamerica IRA compared to fidelity

Your returns from the past year are at best anecdotal information. The last year was a good year for equities. Your 15% return might have been higher with less risk elsewhere. The relevant question is "What are the investment choices and what are their costs?" Costs matter and Transamerica is a rela...
by Spirit Rider
Mon Sep 23, 2013 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Guaranteed Retirement Income
Replies: 16
Views: 2278

Re: Guaranteed Retirement Income

and most SPIAs are not inflation indexed and can have high surrender fees when you need the money for the heart surgery you didn't plan on. As far as I know, SPIAs cannot be surrendered and have no surrender value. Medicare and any supplemental coverage you may have will pay for your heart surgery ...
by Spirit Rider
Mon Sep 23, 2013 1:11 am
Forum: Investing - Theory, News & General
Topic: Six lessons You Should Have Learned
Replies: 12
Views: 3717

Re: Six lessons You Should Have Learned

The loss of a home, savings, financial plan, college fund, or retirement account was entirely unnecessary during the stock crash, and anyone who had this happen needs to only blame themselves. The job loss thing is certainly true. If someone lost their job and couldn't find another one, I'm not sur...
by Spirit Rider
Mon Sep 23, 2013 12:30 am
Forum: Personal Finance (Not Investing)
Topic: CPAs - Question on Self Employment Taxes
Replies: 7
Views: 1077

Re: CPAs - Question on Self Employment Taxes

All of the responses so far are correct. You don't say why people are telling you to form an LLC for tax purposes. There are different tax issues. An LLC is a state chartered business entity. It is a separate issue how it is treated by the IRS for federal tax issues. By default a single member (SM)L...
by Spirit Rider
Sun Sep 22, 2013 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k and Roth IRA contribution interactions
Replies: 13
Views: 1668

Re: Solo 401k and Roth IRA contribution interactions

This thread http://www.bogleheads.org/forum/viewtopic.php?t=101971&f=2 doesn't answer your question directly, but I believe it answers it indirectly: if the 401k is a Roth 401k, you can double-use the earned income. Note Alan S's posts in particular. Thanks for the link, which answers my question I...
by Spirit Rider
Fri Sep 20, 2013 6:12 pm
Forum: Investing - Theory, News & General
Topic: Does active investing work for college endowments?
Replies: 26
Views: 2623

Re: Does active investing work for college endowments?

However, many endowments have significantly under-performed. In fact I seem to recall many of them seriously tanked during the financial crisis far worse than the markets in general. I wonder whether any studies have been done to look at them in totality and see whether they truly on average out per...
by Spirit Rider
Fri Sep 20, 2013 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Help with individual 401k
Replies: 8
Views: 785

Re: Help with individual 401k

Thank you Bolder Boy. It makes sense to stop contributing to our current 401k plan and set up a account for all of us. Luke Duke --I might offer the same to the new employee if s/he is willing to reduce their salary by the amount of employer contribution. Otherwise it doesn't make any sense(financi...
by Spirit Rider
Thu Sep 19, 2013 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone has experience with Ally bank?
Replies: 41
Views: 6391

Re: Anyone has experience with Ally bank?

The thing I like about Ally is they are not usually the highest interest rate available, but consistently among the top tier rates. So you can just stay with them year after year and not worry about rate chasing.
by Spirit Rider
Thu Sep 19, 2013 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: "Chip" credit card for foreign travel
Replies: 105
Views: 19942

Re: "Chip" credit card for foreign travel

Be aware that the majority of US "Chip" cards (BoA, Chase, Citi) are Chip and "Signature". There are some specific cards at major issuers and smaller issuers (credit unions) that have true Chip and "Pin" capability. However, there are reports that they are not 100% effective. You are still fine 99% ...
by Spirit Rider
Thu Sep 19, 2013 8:45 am
Forum: Personal Consumer Issues
Topic: Car dealer refusing to repair car
Replies: 54
Views: 7218

Re: Car dealer refusing to repair car

The dealer refuses to fix the head gasket, telling my girlfriend to drive the car "until the head gasket fails completely. Then it will be fully covered under factory warranty." My girlfriend and I both agree that this is an unacceptable solution, given the danger involved if this event occurs whil...
by Spirit Rider
Tue Sep 17, 2013 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: IBonds role in AA
Replies: 7
Views: 985

Re: IBonds role in AA

It really depends on your definition of "bonds" or "cash". Since there are many variations of these definitions, there is a difference of opinion. I would maintain that the primary features of cash are that they are fixed income and principal protected. Their principal is not subject to interest rat...
by Spirit Rider
Mon Sep 16, 2013 10:46 am
Forum: Personal Consumer Issues
Topic: Kitchen appliance - extended warranties
Replies: 30
Views: 2735

Re: Kitchen appliance - extended warranties

Extended warranties are really property value insurance policies. The general rule is that you should only insure that which you can not afford to self insure. On "average" it will cost far less to self insure. The insurance (warranty) company has overhead and a profit to make. This is the differenc...
by Spirit Rider
Sun Sep 15, 2013 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Maxed out Roth IRA, What Next?
Replies: 20
Views: 2749

Re: Maxed out Roth IRA, What Next?

The plan matches with the following statement "When you participate in the plan, your employer will match 50% up to the first 4% of your contributions." Does that just mean it will match the first 4% that I contribute to the 401k? Yes, for each dollar you contribute they will contribute 1/2 dollar,...
by Spirit Rider
Sat Sep 14, 2013 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred annuity: are folks starting to use these?
Replies: 20
Views: 1777

Re: Deferred annuity: are folks starting to use these?

Spent an hour at lunch y'day in a Retirement help/seminar. Mostly stuff I know. However still a few i didnt: This the entire problem. You didn't think that lunch was free did you??? Friends do not let friends attend retirement seminar lunches/dinners. Unless it is for entertainment value to tell th...
by Spirit Rider
Fri Sep 13, 2013 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred annuity: are folks starting to use these?
Replies: 20
Views: 1777

Re: Deferred annuity: are folks starting to use these?

#1 is not entirely correct. HSA cannot be used for medical insurance premiums in retirement? It cannot be used for Medigap (Medicare supplemental) premiums. Also, deferred annuities are for accumulation not income. Maybe you meant Single Premium Immediate Annuities (SPIAs) which are specifically de...
by Spirit Rider
Fri Sep 13, 2013 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: calculating SS benefit: $25k/yr x4 yr vs $100k yr once
Replies: 20
Views: 2279

Re: calculating SS benefit: $25k/yr x4 yr vs $100k yr once

Does that sound feasible? I'm not sure I'm doing the calculations correctly. If so, it's discouraging that the first 10 years of earnings provide me with 2/3 of my final benefit, whereas the final 25 years of earnings provide me with only 1/3 of my final benefit. From that standpoint, at least, it'...
by Spirit Rider
Thu Sep 12, 2013 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance with return of premium?
Replies: 17
Views: 2105

Re: Term Life Insurance with return of premium?

I wonder if a single premium term policy would be more expensive than the usual periodic premium because of the impossibility of lapse? I would think it would have to be if you figure in the time/value of the two premiums streams. Just like a SPIA has a higher return because of mortality credits, a...
by Spirit Rider
Thu Sep 12, 2013 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: New Blue Cash Preferred / When do you pay annual fee?
Replies: 20
Views: 3672

Re: New Blue Cash Preferred / When do you pay annual fee?

I think people abused the gift card thing and that's why amex put a spending cap (used to not have one). Yup, it is always the greedy people who ruin it for everyone else. A single mother with five kids was spending ~= $1K/month, getting a nice little reward. This was until people started buying $1...
by Spirit Rider
Thu Sep 12, 2013 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: New Blue Cash Preferred / When do you pay annual fee?
Replies: 20
Views: 3672

Re: New Blue Cash Preferred / When do you pay annual fee?

Note: You are paying $75 for an extra 3%, the annual fee free version gives you 3% at grocery stores.

It still makes sense for the OP, but the benefit is $6000 * 0.03 = $180 - $75 annual fee = $105 rewards/yr.
by Spirit Rider
Thu Sep 12, 2013 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Help understanding HSA
Replies: 11
Views: 1123

Re: Help understanding HSA

Another disqualification is a family plan that has a separate lower individual deductible that is below the minimum family plan deductible. For example, a family plan with a family deductible of $3K, but with an individual deductible of $2K. The $2K is below the HSA minimum family deductible of $2.5...