Search found 6716 matches

by bottlecap
Tue Feb 14, 2012 10:18 am
Forum: Personal Investments
Topic: Okay, so here's what I'm struggling with...
Replies: 22
Views: 2752

Re: Okay, so here's what I'm struggling with...

If you educate yourself on the other issues you'll figure out the answer to this question as well.

Good luck,

JT
by bottlecap
Tue Feb 14, 2012 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Thinking about a new place to live does bankruptcy
Replies: 8
Views: 1011

Re: Thinking about a new place to live does bankruptcy

rec7 wrote:protection ever come into play. This may sound silly but some states offer great bankruptcy protection and others poor protection. Have any of you thought about this when you are moving to a new state?
This would all depend on what you are trying to discharge and/or keep. While I agree that bankruptcy laws are federal, states are permitted their own exemptions and exemption amounts. Also the law in each jurisdiction can be treated slightly differently by the courts. Most of the state to state differences have to do with exemptions, from what I understand.

JT
by bottlecap
Mon Feb 13, 2012 4:09 pm
Forum: Personal Investments
Topic: 401K limits and "anti-discrimination" policies
Replies: 34
Views: 4297

Re: 401K limits and "anti-discrimination" policies

Why not contribute the max and let them send you the refund? It seems like it's no extra paper work for you, aside from cashing the check.

Although I don't think this is common, it's probably not unheard of, either.

JT
by bottlecap
Mon Feb 13, 2012 3:54 pm
Forum: Personal Investments
Topic: Proving it to yourself: index funds vs. individual stocks
Replies: 57
Views: 6586

Re: Proving it to yourself: index funds vs. individual stoc

Let me preface this by saying, it's your thousand dollars and time. Do what you want. My questions were intended to get you to think. Is this really just to satisfy your ego (personal edification)? Your post suggests that you are really trying to get your foot in the door to see if you can justify opening up more of your portfolio to active, individual stock trading. This is not an attack on you and, if you perceive it that way, that would be another red flag to be wary of. Indulge me for a moment. Nevertheless, I am a very obstinate, sometimes foolhardy, individual, and I feel that I need to prove it to myself that I am like most everyone else and cannot consistently pick individual stocks that outperform my already established low cost in...
by bottlecap
Mon Feb 13, 2012 11:45 am
Forum: Personal Investments
Topic: Proving it to yourself: index funds vs. individual stocks
Replies: 57
Views: 6586

Re: Proving it to yourself: index funds vs. individual stoc

There's all sorts of things one could prove to oneself. You could prove that you're a better than average plumber by doing work on your own home. You could prove to yourself that you're a better than average runner by running in marathons. Why choose out-performing mutual fund managers or the "market"? Greed? You could spend 30 years "proving it" to yourself with no better results, or worse. Even if you're successful, how do you know that you're not just lucky?

Why not prove that you can be the best spouse, parent or whatever it is that you do as a profession? The benefits are much more likely to materialize and much more likely to be rewarding.

JT
by bottlecap
Fri Feb 10, 2012 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: who does "scheduled maintenance" on their cars?
Replies: 75
Views: 8548

Re: who does "scheduled maintenance" on their cars?

NHRATA01:

Thanks for the informative post. I've even pushed the oil change interval past the 12,000 mile (mostly highway miles) mark with no apparent adverse effects, but don't do that anymore, just in case - I'm trying to squeeze every last bit of life out of it!

Interesting about the transmission fluid - I've always heard about the "flush" possibly loosening deposits, but hadn't thought about detergents doing the same after a "change." I imagine that's a relatively low probability, but I'm going to check my service records this weekend...

JT
by bottlecap
Fri Feb 10, 2012 9:44 am
Forum: Investing - Theory, News & General
Topic: Has Buffett changed anyones mind
Replies: 65
Views: 6084

Re: Has Buffett changed anyones mind

Nothing Buffett says ever changes my mind. Not only has Buffett been wrong in the past, he is a sly dog with his own agenda. I always try to remember that just before I ignore him...

JT
by bottlecap
Fri Feb 10, 2012 9:24 am
Forum: Personal Investments
Topic: Would like some advice from the experts.
Replies: 44
Views: 2125

Re: Would like some advice from the experts.

rotaercz wrote:
grap0013 wrote:These numbers don't jive. Save 40k/year? How long have you been doing that? Your investment returns must be -90% annualized then to account for your account balances.
I just finished paying off all my debts. I'm a little surprised that people think I'm doing well when in reality I barely have anything. No car, no home, still buy clothes from Goodwill, etc. My quality of life is about the same since undergrad and I'm 33 for gods sake.
Heh. Around here, paying off your debts, being in a position to save money, and having the conviction to follow through with it constitutes doing well.

Good job.

JT
by bottlecap
Fri Feb 10, 2012 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Calculated Risk calls bottom of US housing market
Replies: 40
Views: 3832

Re: Calculated Risk calls bottom of US housing market

VT: I don't question your ability to represent orthodox views or cite statistics supporting their theories. Its the orthodoxy and its assumptions about cause and effect that makes me skeptical. The multiplier is an example of that. Any thinking on the subject must lead to the conclusion that any given model cannot be accurate for much more than a snapshot in time. Not even a supporter of the orthodox view would suggest that if we spent the $800 billion on home construction that GDP would have grown at least 28% because of a three times multiplier. That would be fantasy. So we know at the very least that changing some variables makes the model inaccurate. Well, unaccounted for variables change all the time in a complex economy. The very act ...
by bottlecap
Thu Feb 09, 2012 10:06 pm
Forum: Personal Investments
Topic: Would like some advice from the experts.
Replies: 44
Views: 2125

Re: Would like some advice from the experts.

rotaercz wrote:To be honest, I actually do believe it's possible to outsmart the market from personal experience.
Yup. That's the stereotype we're used to. There are millions of you out there and maybe all but one or two are wrong about their ability. If you're unlucky, it will take you another ten years to figure this out. It took me a few years.

JT
by bottlecap
Thu Feb 09, 2012 3:33 pm
Forum: Investing - Theory, News & General
Topic: About to buy into US market.....
Replies: 7
Views: 1359

Re: About to buy into US market.....

Whatever you do, it will prove to be wrong, unless you are lucky. However, it's the same if you wait. Just accept that and you'll be okay.

JT
by bottlecap
Thu Feb 09, 2012 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Buffett Says Bonds Among Most Dangerous Assets on Inflation
Replies: 94
Views: 11793

Re: Buffett Says Bonds Among Most Dangerous Assets on Inflat

nisiprius wrote:Gee, if only there were some sort of bond whose principal wasn't a fixed nominal dollar value, but was, oh, I don't know, indexed to the CPI or something. Oh, I know what you'll say: "Dreamer! Get your head out of the clouds." Well, OK, but a fellow can wish.
Too funny.
by bottlecap
Thu Feb 09, 2012 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Calculated Risk calls bottom of US housing market
Replies: 40
Views: 3832

Re: Calculated Risk calls bottom of US housing market

Specialized wrote:The banks, the government and the general public own a lot of homes they'd like to sell but won't as long as they have to take a large loss.
I've witnessed this, as well as the fact that many of the properties are tied up in the "process" of foreclosing or inventorying their foreclosures such that banks won't even consider offers on a property, even if its a decent offer. Not to mention the homes that are tied up in litigation.

I'd tend to agree that there is a significant amount of inventory that is not currently on the market while noting, of course, that the "market" is always local!

JT
by bottlecap
Thu Feb 09, 2012 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Calculated Risk calls bottom of US housing market
Replies: 40
Views: 3832

Re: Calculated Risk calls bottom of US housing market

VT: The problem I have with CR is not that they can't come up with a plausible explanation (or "thinking"), but that their plausible explanations are based on so many assumptions that they take as true. I just can't take things I read at face value, hence, I'm skeptical. For instance (and I haven't read all the previous posts on their site to see whether this is their information or information you received from another source), I'll mention one such assumption: Is there a "multiplier" for home construction? Maybe, but I can guarantee you it's not 3, or 2.4563. Someone made a model with various assumptions, plugged in some numbers and came out with the number "3". Repeating it does not make it true and does not...
by bottlecap
Thu Feb 09, 2012 11:07 am
Forum: Personal Investments
Topic: Considering purchasing parent's home and helping parents
Replies: 24
Views: 2494

Re: Considering purchasing parent's home and helping parents

PreserveCapital wrote:OP's parents have lived beyond their means, pulling equity out of the home from time to time to pay off the credit cards, yet not being able to avoid a recent bankruptcy. It doesn't take a financial planner to be able to know that they have to spend less than they have been spending in the past, and that they can't use home equity as a credit card any longer.
Agreed - the financial planner suggestion was primarily for the benefit of the poster to see how he might be able to help his parents without compromising his security or credit.

JT
by bottlecap
Thu Feb 09, 2012 9:24 am
Forum: Personal Investments
Topic: Considering purchasing parent's home and helping parents
Replies: 24
Views: 2494

Re: Considering purchasing parent's home and helping parents

Why don't you find a fee only financial adviser and ask for his advice as to what you could do for your parents so you have an independent opinion? Once you found one you like and have the advice, then introduce your parents to him and get them some advice. Get your advice about the situation before suggesting that he or she help your parents. If you like the plan, then tell the adviser you want him to help your parents and ultimately execute the plan.

JT
by bottlecap
Wed Feb 08, 2012 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Seller Contract for Deed Question
Replies: 7
Views: 964

Re: Seller Contract for Deed Question

At the very least, I'd consult a lawyer. Deeds don't typically involve a loan or interest rates - deeds of trust do, but deeds transfer title. [Edit/Note: I see that a "contract for deed" is like an installment land contract. This doesn't change my advice!] You need help on this.

On another note, I would not provide financing to a buyer you describe. They will be trouble and if they can't get financing later, they will stop paying you. At best, they will walk away and you will have to foreclose, at worst you will have to foreclose and kick them off the property. I'd accept less on the purchase price and find a buyer who can obtain financing.

Good luck,

JT
by bottlecap
Wed Feb 08, 2012 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: legal costs
Replies: 7
Views: 1025

Re: legal costs

I'm not certain, but in New York City, I'd expect to pay north of $3,500 even if everything is as simple as you say.

JT
by bottlecap
Wed Feb 08, 2012 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Calculated Risk calls bottom of US housing market
Replies: 40
Views: 3832

Re: Calculated Risk calls bottom of US housing market

It this would be nice, but I'll believe it when I see it! If housing prices are going to rise, then buyers will 'bring forward' their buying decisions, thus increasing demand, and, shortly, housing starts. Housing prices will rise either because of an increase in demand that results in people buying or by a reduction in the supply of housing. Since a reduction in the supply of houses isn't likely to happen spontaneously, isn't this statement a bit like saying "If people begin buying houses, more people will begin buying houses, and more homes will be built."? Although this could happen, none of them necessarily cause the other and, in any event sounds like a receipe for a bubble. It is more likely that other factors will drive the...
by bottlecap
Wed Feb 08, 2012 9:21 am
Forum: Personal Finance (Not Investing)
Topic: who does "scheduled maintenance" on their cars?
Replies: 75
Views: 8548

Re: who does "scheduled maintenance" on their cars?

SPG8 wrote:Remember growing up, parents always going to the garage for some noise the vehicle was making. I'm at 11 years, and my vehicle is a veritable symphony of noise, but it's still got guts, and runs like a champ. The check engine light has been on for most of the last five years.
Although this has apparently worked well for you, I find that noises and check engine lights are sometimes far more important that over-changing your oil. Sometimes a noise is just a noise (my old truck has a few), but sometimes it's a harbinger of something worse to come if not taken care of. There have been several such things that I ignored that I wished I hadn't later.

JT
by bottlecap
Tue Feb 07, 2012 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: who does "scheduled maintenance" on their cars?
Replies: 75
Views: 8548

Re: who does "scheduled maintenance" on their cars?

amarone wrote:Are you sure of what the OP means, because s/he actually said:
the scheduled maintenance visits that are recommended by manufacturers based on time or mileage passed
which looks awfully like something that IS recommended by the manufacturer.
I guess you're right. Then its not much of a question - I've never heard of a "scheduled maintenance visit" recommended by the manufacturer, only maintenance schedules that can include recommending that a part be "inspected." There's nothing unusual about that.

JT
by bottlecap
Mon Feb 06, 2012 10:41 pm
Forum: Personal Investments
Topic: Is it really this simple?
Replies: 34
Views: 4634

Re: Is it really this simple?

Yes, an asset allocation can be that simple. Congrats.

JT
by bottlecap
Mon Feb 06, 2012 11:49 am
Forum: Personal Investments
Topic: To those that have bought a house..Are you happy?
Replies: 142
Views: 15426

Re: To those that have bought a house..Are you happy?

Yes, but owning a home is work, too, and not for everyone.

JT
by bottlecap
Mon Feb 06, 2012 10:47 am
Forum: Personal Investments
Topic: Unemployed with $200,000?
Replies: 24
Views: 4199

Re: Unemployed with $200,000?

MoneyMe wrote:I work in the web design field. It's tough out there and YES, there is age discrimination, weather you want to believe me or not.
It's not a matter of belief, it's that your situation wasn't fully explained. I can believe that youth is more highly prized in the web design field.

If it were me, I would do exactly what you are doing - continue to try to build clientele and see if you can make a living with your own company. You've got a bit of a cushion to make a go of it for 6 to 8 months and see what happens.

It is also a good excuse to change careers, if that's something you have pondered in the past.

Good luck,

JT
by bottlecap
Mon Feb 06, 2012 8:39 am
Forum: Personal Finance (Not Investing)
Topic: who does "scheduled maintenance" on their cars?
Replies: 75
Views: 8548

Re: who does "scheduled maintenance" on their cars?

tea_lover wrote:The poll shows that 38% of people do NOT do the scheduled maintenance on their car. And this forum can afford to do it.

Imagine how many regular people do NOT do regular maintenance? 50%+ easily I bet.

There's another reason for buying NEW over USED cars.
I don't think you understand what the OP means by scheduled maintenance. This a service performed by the dealer at a certain mileage regardless of whether it's needed. It is not recommended by the manufacturer.

I suspect many of the respondents don't realize this.

JT
by bottlecap
Fri Feb 03, 2012 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Save or Spend?
Replies: 19
Views: 2492

Re: Save or Spend?

Should people just ignore this problem and go blindly on saving and sacrificing for the future? This is a serious question. I would appreciate knowing how others have answered it for themselves. Yes, of course you go on blindly saving.... What are the options? If you don't save where will you be in the future? I don't understand the logic of your question.... Although I understand the logic of the question, I agree with this sentiment. Yes, politicians and monetary authorities often favor spenders at the expense of savers, but a responsible adult has no other option but to save, even if the purchasing power of your savings is being eroded. It is a nest egg to take care of you when you can't work anymore. Think of it in these terms. If you ...
by bottlecap
Fri Feb 03, 2012 10:16 am
Forum: Personal Finance (Not Investing)
Topic: More aggressive
Replies: 39
Views: 4310

Re: More aggressive

randomwalk wrote:Wow. Great post, nisiprius.
Yes, excellent post.
by bottlecap
Fri Feb 03, 2012 10:01 am
Forum: Investing - Theory, News & General
Topic: Found winning active fund manager?
Replies: 51
Views: 3315

Re: Found winning active fund manager?

ALinLI wrote:it's not a listed mutual fund.
How are unlisted mutual funds regulated? How well do you trust this "good" friend? Those are also questions you have to ask yourself.

JT
by bottlecap
Fri Feb 03, 2012 9:59 am
Forum: Investing - Theory, News & General
Topic: Found winning active fund manager?
Replies: 51
Views: 3315

Re: Found winning active fund manager?

If you're willing to bet money that he's the next Buffett, then why not go for it? Just know that you're not diversified and that 5 years is not a long time period.

JT
by bottlecap
Fri Feb 03, 2012 9:22 am
Forum: Personal Investments
Topic: Help! First stab for noobie Boglehead
Replies: 13
Views: 1042

Re: Help! First stab for noobie Boglehead

You don't mention your age, which could affect advice on bond allocation, but given the other information and your screen name, I'd assume early thirties. In any event, it appears that you've done a very good job. It's about what I would have done, anyway.

JT
by bottlecap
Thu Feb 02, 2012 6:08 pm
Forum: Investing - Theory, News & General
Topic: Reg 401k vs Roth 401k
Replies: 19
Views: 2169

Re: Reg 401k vs Roth 401k

We are in the 30+% tax bracket and have always maxed out our regular 401k. I think most of the time, assuming ones believes your tax rates in retirement will be similar to those now, it's best to stick with traditional IRA in a high tax bracket because of the graduated income tax - much of the money you withdraw will be taxed at less than your current marginal rate. Exceptions to this include where social security and pension income will fill up those lower brackets, or where your anticipated RMDs will put you into the higher bracket anyway (because you have so much socked away). Even then, you're looking at basically a wash, save for the additional flexibility you have with distributions with the Roths (no RMD) and the advantage they give...
by bottlecap
Thu Feb 02, 2012 5:57 pm
Forum: Personal Investments
Topic: Unemployed with $200,000?
Replies: 24
Views: 4199

Re: Unemployed with $200,000?

And to the folks thinking age discrimination is vapor, let me tell you about the number of times I was told I was too old to fit in when I was in my fifties interviewing for jobs in a technical field. Yes, I was up to date technically, a hard worker, degrees from a major technical school, recent additional education. I finally gave up and retired at least ten years earlier than I had planned. Although it pains me to say this, at some point soon into your fifities, you're certainly no longer middle-aged. Obviously, in some fields, being "middle-aged" might be a legitimate disadvantage, especially if you're in your fifties. I'm not suggesting age discrimination is "vapor", but it is a little strange the way the OP put it:...
by bottlecap
Thu Feb 02, 2012 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Gut my Roth IRA to buy a house?
Replies: 55
Views: 5447

Re: Gut my Roth IRA to buy a house?

If you can wait, I'd consider that route.
stomie wrote:I find it so funny that the schools are good enough to take a paycheck but not good enough for your kids.
Just because you work at McDonald's doesn't mean you have to eat there...

Ordinarily, I'd say never dip into a retirement account to buy a bigger/better home, but if I couldn't wait and had to to buy into a better school district, I might very well break that rule.

Good luck,

JT
by bottlecap
Thu Feb 02, 2012 3:19 pm
Forum: Personal Investments
Topic: Unemployed with $200,000?
Replies: 24
Views: 4199

Re: Unemployed with $200,000?

MoneyMe wrote:Hell again,
Say you're middle aged, unemployed for years because of age discrimination and inherited over $200,000. What would you do?
Thanks
There's not enough information to go on, as others have said, but I'd look for another job.

Are "middle-aged" people subject to age discrimination? Middle age is your most productive time unless you're a model or maybe a pop star.

JT
by bottlecap
Thu Feb 02, 2012 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting not going so well
Replies: 138
Views: 10490

Re: Budgeting not going so well

BuckyBadger wrote:Remember, your take home "per month" isn't exactly two pay periods. You get paid 26 times a year, not 24. Recalculate that and you'll be pretty close to breaking even I think...

Your monthly take home is 3106.74 rather than 2867.77.
Agreed. In the original post, you'd have almost another $300 per month if you multiply by 26 paychecks and divide by 12 months.

Biggest bang for your buck is to move into a smaller place and/or get a roommate. You could also follow the advice to skip the stock plan and invest in an IRA, netting another few hundred bucks a month, I think.

Wow. $98,000 isn't very much in California, is it?

JT
by bottlecap
Thu Feb 02, 2012 1:31 pm
Forum: Personal Investments
Topic: Took a Tad Off the Table
Replies: 24
Views: 4708

Re: Took a Tad Off the Table

Congratulations. No, I don't trade unless to rebalance. Not only do I understand the odds are against me, I'd feel like failed in developing my AA if I didn't stick to my AA. Moreover, if my move lost me money, I'd kick myself for being a putz.

Now, would I "take money out" if the market tripled and I was so close the my retirement number that I didn't need to take the additional risk? Heck yeah. But I'd be changing my AA based on my need to take risk (or lack thereof) and not because I was trying to beat the market.

JT
by bottlecap
Thu Feb 02, 2012 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Home is a Consumption Item, Not an Investment
Replies: 111
Views: 14495

Re: Home is a Consumption Item, Not an Investment

I hope my home performs like an "investment," but will be satisfied if it merely suffices as a "store of value" whilst I live there.

None of this matters, of course, because there is no way my wife would agree to rent and move every few years. To the extent a home can be considered a consumption item, it would fall into the "necessity" category for me...

JT
by bottlecap
Thu Feb 02, 2012 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: The Sovereign Man?
Replies: 43
Views: 5508

Re: The Sovereign Man?

Valuethinker wrote:I actually question whether people long to be free.

My own experience is people long to have an illusion of freedom, but in a context where validating signals about their life choices are sent to them constantly.
Perhaps you are right. A proviso, then: Because the thinking, self-aware person yearns to be free. :beer

JT
by bottlecap
Thu Feb 02, 2012 10:39 am
Forum: Personal Finance (Not Investing)
Topic: More aggressive
Replies: 39
Views: 4310

Re: More aggressive

coachz wrote:Thanks. Is Catfish a good fund ?
Simpsons, reference. seemed appropriate for whatever reason...
by bottlecap
Thu Feb 02, 2012 10:33 am
Forum: Personal Finance (Not Investing)
Topic: The Sovereign Man?
Replies: 43
Views: 5508

Re: The Sovereign Man?

You were lucky enough to be born in a country that has a good socio-economical structure and you were even born in the top half of that overall class structure. And you're bitter to your country why, if I may ask? Because people long to be free. No one is truly free, however, it's all a matter of degree. The fact that you're lucky enough that your spouse beats with only a 1/2 inch diameter stick doesn't mean you can't - or are wrong to - long for a spouse that only has access to a 1/4 inch stick. That said, and to the OP, this stuff does have scam written all over it. I don't like taxes, but the idea behind them is based on a legitimate need to run a government and, remember, they're not the worst thing in the world. You can be free and pa...
by bottlecap
Thu Feb 02, 2012 9:38 am
Forum: Personal Finance (Not Investing)
Topic: More aggressive
Replies: 39
Views: 4310

Re: More aggressive

If you want to get more aggressive, don't hold large cap index funds, go with small cap index funds. If you don't want that kind of risk, then go with large cap index funds. Catfish?

JT
by bottlecap
Thu Feb 02, 2012 9:34 am
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 10263

Re: "The only way to extreme wealth is buying individual sto

If you want "eight figure" wealth, then lottery tickets or individual stocks are the means most people would need to get there.

Just know that out of the two, the lottery ticket will probably give you better odds.

JT

P.S. I also suspect someone that has acquired $40 million whilst "living modestly" wouldn't tell you how much money they had. Although it is possible to it consecutive home runs like that, because they are bragging about it, I suspect hey are either having fun with you or not telling the truth.
by bottlecap
Wed Feb 01, 2012 3:22 pm
Forum: Investing - Theory, News & General
Topic: Is the Backdoor Roth legal or not?
Replies: 96
Views: 28965

Re: Is the Backdoor Roth legal or not?

Bob's not my name wrote:]I got it from this:
Bob's not my name wrote:In my extensive research on step transaction doctrine (5 minutes of Googling) I found that it was defeated in court when the assets were in an intermediate state for six days.
Ah, yeah, I forgot about your mention of this. Out of curiosity, I'll try to find the case.

Thanks,

JT
by bottlecap
Wed Feb 01, 2012 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Please explain differences between Wills/Trust
Replies: 18
Views: 2952

Re: Please explain differences between Wills/Trust

Living will: http://www.alllaw.com/articles/wills_an ... ticle7.asp

Last Will: http://www.estateplanninglawfirms.com/lastwill.cfm

Living "Inter Vivos" Trust: http://www.estateplanninglawfirms.com/info/living-trust

Can't vouch for the sites, but the explanations appear fairly accurate.

JT

P.S. You probably, at the very least, need a will now, but usually you can get all of these documents from a lawyer together. You might as well knock them all out at once.
by bottlecap
Wed Feb 01, 2012 12:19 pm
Forum: Investing - Theory, News & General
Topic: Is the Backdoor Roth legal or not?
Replies: 96
Views: 28965

Re: Is the Backdoor Roth legal or not?

Although I think we've beat this to death, I have a few more thoughts, one that will ease one's mind and one that won't. First, I don't know where Slott of anyone else got the idea that waiting a few days to convert will protect you from the step transaction doctrine, assuming the IRS would try to apply it. If the IRS is going to bother to bring suit to argue that you intended to take these steps to avoid future taxes, they are not going to look at your answer and say, "Wait a minute, he waited three days to convert, clearly that suggests that there was never an intention to perform a back door contribution. Our mistake; we dismiss our case." Moreover, if you use Vanguard, you have to wait a few days for this process to take place...
by bottlecap
Wed Feb 01, 2012 10:58 am
Forum: Investing - Theory, News & General
Topic: Investments costing us $1000 a year in expenses.
Replies: 8
Views: 1638

Re: Investments costing us $1000 a year in expenses.

gordo wrote:There's just something about Vanguard's index management that has me convinced I should spend the extra ER and sleep peacefully knowing that I'm not going to lose thousands of dollars in index tracking errors over the years.
I'd spend the extra to avoid having a more complex rebalancing job. Keep in mind that managing a fund, even and index fund, costs money. You can get something for nothing - at least not for very long.
by bottlecap
Wed Feb 01, 2012 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Keep my car or buy new car?
Replies: 73
Views: 5202

Re: Keep my car or buy new car?

It sounds like switching, if that's what you want, wouldn't cost you that much and might actually save you some money. I wouldn't worry about it. I second not doing the "scheduled maintenance" - they're rip-offs. I never did those recommended on my vehicle and have suffered no ill-effects as a result. JT That sometimes backfires. Some Audi A4s in the past had a sludge problem that was avoided by those who stuck the the specified maintenance schedule. I should state a caveat - don't buy cars that need expensive scheduled maintenance, either. If the car needs a various unspecified "scheduled" maintenance costing more than $100 to keep it in good running condition, you're either being ripped off or you're buying a piece of...
by bottlecap
Wed Feb 01, 2012 9:25 am
Forum: Investing - Theory, News & General
Topic: Is the Backdoor Roth legal or not?
Replies: 96
Views: 28965

Re: Is the Backdoor Roth legal or not?

Anyhow, I wonder if anyone else feels the same or if I am being overly cautious. I think the thoughts have been clearly expressed in the thread. Some think its a worry, others, like me, think it's something to worry about mostly if you like to worry... It's all reported. You're not doing anything wrong. You haven't come up with a novel way around taxes, you are just doing what the Code expressly allows you to do. The result happens to allow you to avoid a very small amount of taxes in the future, should you have gains (and then only when you sell to realize those gains). Was this an intended consequence of the legislature? Who knows? If the IRS wants it stopped, the best cost-effective approach for them would be to talk to the legislature ...
by bottlecap
Wed Feb 01, 2012 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Keep my car or buy new car?
Replies: 73
Views: 5202

Re: Keep my car or buy new car?

It sounds like switching, if that's what you want, wouldn't cost you that much and might actually save you some money. I wouldn't worry about it.

I second not doing the "scheduled maintenance" - they're rip-offs. I never did those recommended on my vehicle and have suffered no ill-effects as a result.

JT
by bottlecap
Tue Jan 31, 2012 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: For those of you morally against strategic mortgage defaults
Replies: 32
Views: 3323

Re: For those of you morally against strategic mortgage defa

I think I can see your point of view now... not saying I agree with it, but I think I can see it :sharebeer From my point of view, even if consumer protection laws create an egregious environment with unacceptable uncompensated risk that the bank can always walk away. A bank that is making unsound loans is going to eventually go under regardless. Now, are consumer protection laws to blame for a self-inflating housing market and need to be overhauled? I think that's a whole different debate :lol: Yeah, I can see your point, too. It's an interesting phenomena as to why, almost regardless of the law, investors (in banks, for instance) are still willing to stick their neck out and enter a market Where they are at a disadvantage relative to oth...