Search found 6131 matches

by mptfan
Mon Apr 16, 2007 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: I've decided to go paperless
Replies: 80
Views: 36564

When I described saving electronic pdf files, I was referring to Vanguard's quarterly account statements, NOT tax forms.
by mptfan
Mon Apr 16, 2007 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: I've decided to go paperless
Replies: 80
Views: 36564

I went *mostly* paperless about 2 years ago, but I have yet to scan one single piece of paper! Almost all the important financial documents that I need are available for download in electronic PDF format. For example, Vanguard prepares quarterly statements that are available for download from their...
by mptfan
Mon Apr 16, 2007 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: I've decided to go paperless
Replies: 80
Views: 36564

I went *mostly* paperless about 2 years ago, but I have yet to scan one single piece of paper! Almost all the important financial documents that I need are available for download in electronic PDF format. For example, Vanguard prepares quarterly statements that are available for download from their ...
by mptfan
Mon Apr 16, 2007 9:42 am
Forum: Personal Investments
Topic: Your financial condition
Replies: 8
Views: 2944

I think the media is accurately reporting that the average American household is getting deeper in debt and further behind financially. However, as we all know, this forum does not represent the average American household.
by mptfan
Sat Apr 14, 2007 6:58 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

"I think you should follow the following order: 1. Defer the maximum that you can in any pretax plan you have access to. 2. Fully fund a Roth, if eligible. 3. Invest in taxable accounts." As you can see, I advocated "defering the maximum that you can in any pretax plan you have access to." That wou...
by mptfan
Sat Apr 14, 2007 6:53 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

You said: "Most people saving like crazy justify it to some degree because they like the idea of some of their money going to their children. If you don't care about your heirs, then you want to calculate it so you spend at least most of your money while alive which tends to mean a higher spending r...
by mptfan
Sat Apr 14, 2007 6:46 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Do you know whether the poster likes the idea of leaving a "nice amount of money to his heirs"??... The bottom line is that there are good reasons to consider a Roth before investing in pretax plans, and there are good reasons to consider pretax plans before investing in a Roth, and it depends on e...
by mptfan
Sat Apr 14, 2007 6:25 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Basically I view your advice as still extremely questionable, especially because the reality is allot of people like the idea of leaving a nice amount of money to their heirs, and a Roth IRA helps avoid all of the tax consequences of doing this otherwise. Do you know whether the poster likes the id...
by mptfan
Sat Apr 14, 2007 6:13 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

I view it as highly unlikely that the poster knows he is that much of an extreme super saver right now. I'd contend this still is pretty rare, and even rarer that its done without the saver suffering any discomfort from doing so. (I'd say there are probably are number of cases on here where the peo...
by mptfan
Sat Apr 14, 2007 5:38 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Ultimately if the poster believes he will be an extreme super saver your arguments for a tax deferred option may make more sense, but otherwise its not so convincing. You started this thread by saying that I gave "flat out bad advice." Now, you are saying that my advice "may make more sense" if the...
by mptfan
Sat Apr 14, 2007 3:19 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

:shock: Extremely rare?? You need to look around you and get to know the Diehards on this board. Take a look at the recent thread called "How much do you save" or a similar title. I recall that the average Diehard saves around 30 percent of their gross income, and some save even more. You need to r...
by mptfan
Sat Apr 14, 2007 3:15 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

It stands to reason, therefore, that Diehards spend less than they make while working and live well below their means, so that their income in retirement drops by choice. If the poster follows the Diehard philosophy, then my advice is likely to be appropriate for his situation. Your argument is bla...
by mptfan
Sat Apr 14, 2007 3:00 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

If you're thrifty you generally spend extremely little when you're not making much money, and still spend a fair amount more when you're in better shape income wise. There are exceptions, but those are extremely rare. :shock: Extremely rare?? You need to look around you and get to know the Diehards...
by mptfan
Sat Apr 14, 2007 2:56 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Congratulations, you finally cited a study! So now we have two conflicting studies that come to conflicting conclusions regarding the CAUSE of reduced spending in retirement. In any event, we can agree that some reduce spending out of necessity, and others, out of choice. Most on this board probably...
by mptfan
Sat Apr 14, 2007 2:34 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Here is another survey that supports my position that most people don't spend enough to get into the higher tax brackets. This survey includes responses from working people and retired people: http://early-retirement.org/forums/index.php?topic=12138.0 Approximately 75 percent of the people respondin...
by mptfan
Sat Apr 14, 2007 2:25 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Its also true the average American does a lousy job of savings enough money for retirement, which often has a great deal to do with them staying in a low tax bracket. You continue to make statements that have no support, and this statement is directly contradicted by the study I cited from the Jour...
by mptfan
Sat Apr 14, 2007 2:21 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Mordoch, part of your problem is you equate income with spending. You need to understand that they are two different things, and that some people (especially Diehards) actually spend quite a bit less than they earn. So the fact that someone earns a high income during their working years does not mea...
by mptfan
Sat Apr 14, 2007 2:16 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

I think this is probably the third or fourth time you have ignored the same point....it doesn't matter how much money he earns while he is working...it only matters how much income he has in retirement. Try and read that sentence again please. I agree that the poster will likely be better of financ...
by mptfan
Sat Apr 14, 2007 2:09 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Its also true the average American does a lousy job of savings enough money for retirement, which often has a great deal to do with them staying in a low tax bracket. You continue to make statements that have no support, and this statement is directly contradicted by the study I cited from the Jour...
by mptfan
Sat Apr 14, 2007 2:01 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Quote from Mordoch: "You're simply refusing to use logic and acknowledge that young individuals who worry about saving at an early age, and who focus on a passive investment strategy with proper asset allocation in order to invest their money are certainly not typical in the United States. While we ...
by mptfan
Sat Apr 14, 2007 1:13 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

The thing is why all your examples can occur, its still is much more likely he will be at a higher tax bracket upon retirement. I'd say that would still probably be the case even with suffering from a job loss for instance. If he was in a higher tax bracket than 15% right now the decision would bec...
by mptfan
Sat Apr 14, 2007 1:09 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

If he does in fact get a graduate degree I could even look up the precise statistics on how that raises the likely amount of money he will earn during his lifetime for instance. You seem to miss the point no matter how many times I say it... the issue is NOT how much money he is projected to earn i...
by mptfan
Sat Apr 14, 2007 12:22 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

So, the statistics support my conclusion that MOST people will not be taxed at the higher marginal tax rates in retirement due to their relatively lower spending, and due to the fact that the higher marginal tax rates will likely be focused on those with income significantly above average. Ok, for ...
by mptfan
Sat Apr 14, 2007 11:58 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Mordoch, please read the following with an open mind. I know that what I am saying goes against the conventional wisdom on this point, but that doesn't mean I am wrong or that my points are not valid for consideration. Consider: 1. Even if marginal tax rates are higher in the future (and I agree it ...
by mptfan
Sat Apr 14, 2007 11:22 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

First, I don't agree that it is "exceedingly probable" that a young person will pay taxes at a higher marginal rate when they are retired. Re-read my reason number two. You simply are ignoring the situation in this case. He's an individual who is merely in the 15% tax bracket right now, and is resp...
by mptfan
Sat Apr 14, 2007 11:01 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

First, I don't agree that it is "exceedingly probable" that a young person will pay taxes at a higher marginal rate when they are retired. Re-read my reason number two. Then frankly your opinion is wrong. It is indeed extremely probably that the OP will be in a higher marginal tax rate at retiremen...
by mptfan
Sat Apr 14, 2007 10:49 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

This is ONLY true if you assume that the tax rate at withdrawal is higher than the tax rate at contribution. That may turn out to be true, but it is not necessarily true. The problem is its exceedingly probable in this particular case that the thread starter will be in that situation. Frankly the r...
by mptfan
Sat Apr 14, 2007 10:22 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Now on point two it depends what we're talking about exactly and can get more complicated with a 401K plan involved, but if we're talking about a Traditional IRA versus a Roth IRA, you're effectively allowed to contribute more into a Roth since its tax free at that point (its true that you're liter...
by mptfan
Sat Apr 14, 2007 10:19 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

If you intend to be selfish you should actually be planning to basically spend all your money and enjoying it while alive by the way. Mordoch, I agree. Please tell me the day that I am going to die, and I will spend all of my money before that day comes. What's that you say? You don't know when I w...
by mptfan
Sat Apr 14, 2007 9:56 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Yes I did read the OPs message. Most or all of my reasons do apply. Regarding reason number 1...and despite the popular notion to the contrary....the true difference in tax liability between contributing to a Roth and a tax deferred plan is NOT the difference between paying the current tax rate ver...
by mptfan
Sat Apr 14, 2007 4:13 am
Forum: Personal Finance (Not Investing)
Topic: Ameriprise (AMEX) Class Action Settlement
Replies: 15
Views: 8581

For those who criticize the payment to the lawyers, do you really believe that Ameriprise would have done anything to change their practices or pay back a nickel without being compelled? Do you think they simply gave up without a fight? Don't you realize that the lawyers have to spend a great deal o...
by mptfan
Sat Apr 14, 2007 3:42 am
Forum: Investing - Theory, News & General
Topic: Great News for Investors vs. Stockbrokers
Replies: 9
Views: 3641

Re: Appeal

Rickdunnjr wrote:The blog says they will keep updates on any apeals. I didn't realize one could apeal the US Supreme Court?

Rick
The article did not state that the decision came from the US Supreme Court.
by mptfan
Sat Apr 14, 2007 3:38 am
Forum: Investing - Theory, News & General
Topic: What % of International should be in Emerging Markets?
Replies: 13
Views: 5133

John and test, The way I read those two references from Mr. Bogle, they are NOT inconsistent. The first quote from the little book says to hold no more than 20 percent of equity (not of international equity) in foreign stocks. One can hold 20 percent of equity in international, of which 10 percent i...
by mptfan
Sat Apr 14, 2007 3:27 am
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Allow me to offer support for my view that it is generally better to contribute to a tax deferred plan before investing in a Roth. Did you read the OPs message. Most of these reasons don't apply at all. In the 15% marginal tax rate is a great time to contribute to a Roth. Chances are extremely good...
by mptfan
Fri Apr 13, 2007 5:11 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Doc, thank you for summarizing the exchange between me and Mordoch, that was very helpful. :roll:
by mptfan
Thu Apr 12, 2007 11:02 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Allow me to offer support for my view that it is generally better to contribute to a tax deferred plan before investing in a Roth. For starters, I prefer to get a tax deduction now, as opposed to waiting many years, perhaps decades before getting the tax deduction, if ever. Therefore, I think it is ...
by mptfan
Thu Apr 12, 2007 10:45 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

I disagree with this advice. I think you should follow the following order: 1. Defer the maximum that you can in any pretax plan you have access to. 2. Fully fund a Roth, if eligible. 3. Invest in taxable accounts. There are good arguments for both strategies. This is simply flat out bad advice for...
by mptfan
Thu Apr 12, 2007 8:19 pm
Forum: Investing - Theory, News & General
Topic: How much do you save?
Replies: 9
Views: 4268

We save about 27% of our gross, and about 33% of our disposable income (as defined above).
by mptfan
Thu Apr 12, 2007 8:16 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

Some people propose the following order of priority for retirement savings: 1. Defer up to whatever amount your employer will match. (it's free money) 2. Fully fund a Roth, if eligible. 3. Defer the maximum in your employer sponsored pretax plan. 4. Invest in taxable accounts. I disagree with this a...
by mptfan
Wed Apr 11, 2007 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: OT: What percent of your gross pay goes to .......
Replies: 8
Views: 3550

We are not retired, but here goes: Gross income with match: 104.5% Gross income 100% Fed Income Tax 9.8% SS Tax 5.7% Medicare Tax 1.4% Total savings 27.0% Health Ins. 0% Net Income 56.0%
by mptfan
Wed Apr 11, 2007 4:30 pm
Forum: Investing - Theory, News & General
Topic: Most people rely on financial advisors for advice
Replies: 16
Views: 4892

Most people rely on financial advisors for advice

Out of all the sources of information available to people who save for retirement, 40 percent of respondents to the EBRI survey said that advice from financial advisors is the most helpful source of information regarding investing for retirement. http://www.ebri.org/pdf/briefspdf/EBRI_IB_04a-20075.p...
by mptfan
Wed Apr 11, 2007 10:14 am
Forum: Investing - Theory, News & General
Topic: Precious Metals Poll
Replies: 51
Views: 20406

I responded in the affirmative because 1) I own a total market index fund which would include commodity stocks, and 2) I own a small amount of gold and silver bullion coins, mostly as a hobby.
by mptfan
Wed Apr 11, 2007 10:12 am
Forum: Personal Finance (Not Investing)
Topic: OT - How do you mail your tax return?
Replies: 31
Views: 12877

I did not mail my return, I electronically filed it.
by mptfan
Mon Apr 09, 2007 9:08 pm
Forum: Investing - Theory, News & General
Topic: one will be rich and four will be financially independent
Replies: 45
Views: 22189

Re: Social security is out of our own pockets

With all respect, it is important to keep in mind that Social Security is not a government handout. It is a retirement system in which all of us wage earners invest a substantial portion of our incomes "out of our own pockets" with a substantial match from our employers. I find it disturbing when c...
by mptfan
Sun Apr 08, 2007 8:47 pm
Forum: Investing - Theory, News & General
Topic: What's your current FICO score?
Replies: 39
Views: 18090

I don't know and I don't care.
by mptfan
Sun Apr 08, 2007 8:38 pm
Forum: Investing - Theory, News & General
Topic: Edward Jones now discloses revenue sharing arrangements
Replies: 16
Views: 5755

I became aware of this because my MIL has an account with "the local Edward Jones guy." I was at her house today and I saw the notice on the table with some other mail and I read it. Later, it was not on the table, and I asked her where it was, and she said she threw it away. I asked her if she read...
by mptfan
Sun Apr 08, 2007 8:02 pm
Forum: Investing - Theory, News & General
Topic: Edward Jones now discloses revenue sharing arrangements
Replies: 16
Views: 5755

"For the year ended Dec. 31, 2006, Edward Jones received approximately $110 million in revenue sharing payments from the preferred fund families as designated throughout 2006. For that same period, Edward Jones' net income was $391 million."
by mptfan
Sun Apr 08, 2007 5:36 pm
Forum: Investing - Theory, News & General
Topic: Edward Jones now discloses revenue sharing arrangements
Replies: 16
Views: 5755

Edward Jones now discloses revenue sharing arrangements

As a result of settling a class action lawsuit, Edward Jones now discloses its revenue sharing arrangements with various mutual fund families, and it discloses that it has a potential conflict of interest. http://www.edwardjones.com/cgi/getHTML.cgi?page=/USA/products/mutualfunds_revenue_sharing.html...
by mptfan
Tue Apr 03, 2007 10:41 am
Forum: Personal Investments
Topic: Explaining Investing to Your Parents
Replies: 27
Views: 10607

I am facing the same issue right now with my MIL who is 76. My FIL passed away about 5 years ago, and she has been using a guy from Edward Jones since then. She has made comments about how "nice" he is and how she takes care of her. I have tried a few times to talk to her about how he is charging he...