Search found 38 matches

by 4803
Tue Oct 04, 2022 6:34 pm
Forum: Investing - Theory, News & General
Topic: Turn This Bear Market "Lemon" Into "Lemonade".
Replies: 42
Views: 8270

Re: Turn This Bear Market "Lemon" Into "Lemonade".

Thank you, Taylor,

I needed your message to notice that the extent of the downturn reached a level that allows me to simplify further. I even managed to incur a capital loss in the process that will come useful in the next several years.

I pulled the trigger on Monday and found myself effectively in the three fund portfolio ;)

Thank you again and best wishes,

:) 4803.
by 4803
Thu May 13, 2021 8:38 pm
Forum: Personal Investments
Topic: 10 million dollar dilemma
Replies: 56
Views: 15056

Re: 10 million dollar dilemma

Dear powercherry5,

Perhaps you'll find the following article encouraging:
https://awealthofcommonsense.com/2014/0 ... ket-timer/

The article, by Ben Carlson, is about Bob, the worst market timer, who only invests at market peaks. Nevertheless, it turns out quite OK for Bob.

Best wishes,

:) 4803.
by 4803
Sat May 01, 2021 11:58 am
Forum: Personal Finance (Not Investing)
Topic: income taxes
Replies: 15
Views: 2198

Re: income taxes

I think that as of 2015, the supreme court ruled on a 5-4 unconventional split that double taxation is unconstitutional.

https://www.ncsl.org/blog/2015/05/22/su ... ation.aspx

Best wishes,

:) 4803.
by 4803
Tue Apr 13, 2021 6:41 am
Forum: Investing - Theory, News & General
Topic: Watch out for inflation numbers
Replies: 111
Views: 12590

Re: Watch out for inflation numbers

Here is a table that provides the actual numbers of the CPI-U.

http://eyebonds.info/tips/cpi/cpibig_06.html

Best wishes,

:) 4803.
by 4803
Fri Mar 05, 2021 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Does SS at 62 with $1.3M make any sense?
Replies: 78
Views: 14204

Re: Does SS at 62 with $1.3M make any sense?

Dear Jim180, Assuming your $1.3M is reasonably invested, increasing your life style to around $40K would be very prudent (around 2.3% or $30K from the portfolio, plus the $10K pension). You can delay SS at least for a few years to get a "better return" - it does not really matter in my view. The main message here is that you should think what you want to do with the $1.3M you worked hard to accumulate. There is no reason to live on $20K per year - even with $50K spending per year ($40K from the portfolio), it will very likely grow over time, perhaps by quite a bit. Money is made to be used. Live a little; spend on experiences you like, perhaps with people you like; give to causes you like. You can do all of that with twice what yo...
by 4803
Fri Jan 29, 2021 12:58 pm
Forum: Investing - Theory, News & General
Topic: I still believe in “getting rich slowly”
Replies: 91
Views: 11338

Re: I still believe in “getting rich slowly”

Dear BogleBuddy12, I think the problem with the approach of the friends is that they have no "system". If this situation is a one time thing in which they bet really big and afterwards they are set for life, I doubt that they will stay disciplined and never do it again (and again). If this helped them a lot but they are not set for life, but say, are only 20% or 40% of the way there, then they have no "system" and will likely not be able to replicate these wins in the future to get to a set-for-life goal. Such crazy situations do happen but are not common and there is no guarantee that whoever was successful now will be successful in the next crazy situation 5-15 years from now. In contrast, most of the people on this bo...
by 4803
Tue Dec 08, 2020 9:29 am
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

Dear Danimals543, I drive a Honda and my wife drives a Tesla M3. Based on that experience, I totally agree with you that electric vehicles are the way of the future, and Tesla is doing a great job at advancing it. My 2014 Honda is probably our last combustion engine car, although I plan to keep it for at least a decade, and its likely one of my kids will drive it after that. Financial considerations are important. Timing is an issue. At your stage, investing for both the future and for flexibility in life, is important. Tesla, not so much. Get a reliable car for a reasonable price and invest the rest in your future. Invest well beyond the normal retirement vehicles. It does not matter what most people do, it matters what you do, what flexib...
by 4803
Wed Nov 25, 2020 5:51 pm
Forum: Investing - Theory, News & General
Topic: Dow 36k ?
Replies: 22
Views: 2432

Re: Dow 36k ?

Dow 36,000 is more interesting than people sometime think, because of its specific reasoning behind its infamous prediction. Notice that even when the Dow reaches 36,000, it will not bear out their prediction, because the authors, Glassman and Hassett, said A sensible target date for Dow 36,000 is early 2005, but it could be reached much earlier. They wrote: The truth is that, over the long-term, stocks are no more risky than bonds or Treasury bills, so… With this in mind, investors in recent years have begun to act more rationally, bidding up the prices of stocks and driving down the premium they had demanded when they believed stocks were risky, and… Soon, prices will rise to where they will be “perfectly reasonable”—around 36,000 on the...
by 4803
Wed Nov 25, 2020 3:48 pm
Forum: Investing - Theory, News & General
Topic: Dow 36k ?
Replies: 22
Views: 2432

Re: Dow 36k ?

The title brings back a memory ;)

https://www.amazon.com/Dow-36-000-Strat ... 548&sr=8-2

Ignore the noise - a good advise then and now.

Best wishes,

:) 4803.
by 4803
Sat Oct 03, 2020 8:03 pm
Forum: Personal Consumer Issues
Topic: Compressing .PDF File
Replies: 25
Views: 2042

Re: Compressing .PDF File

Unfortunately, some modern software generating pdfs may not be very efficient in terms of space.
Thankfully, here is a link that may help in such a case:
https://www.ilovepdf.com/compress_pdf

This can sometimes save over 90% of the space without noticeable quality degradation.

Best wishes,

:) 4803.
by 4803
Sat Oct 03, 2020 10:01 am
Forum: Non-US Investing
Topic: Net Worth Split - Apartment and Stock Market (Israel)
Replies: 8
Views: 1341

Re: Net Worth Split - Apartment and Stock Market (Israel)

I agree with the above opinions (and have some understanding of the real estate market in Israel).

I would take the lowest mortgage I can take and retain a healthy and safe emergency fund. Excess funds should mainly go toward continued long-term investing in global equities.

In Israel, it is not always easy to pre-pay a mortgage but it may be possible to do so at certain points in time. I would consider funneling some part of my excess funds toward that.

Enjoy your new apartment in Tel-Aviv, one of the prime cities of the world :)

Best wishes,

:) 4803.
by 4803
Thu May 14, 2020 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax/Accounting Advice
Replies: 2
Views: 349

Re: Tax/Accounting Advice

Dear Guavapure, Are you interested in filing your own (and your LLC) returns or also, separately, your in-laws return? From the post it is not clear that they are connected in any way. In that light, I am not sure how to understand "the challenge is in my in-laws ...". Many people on this forum will likely be of the opinion that you should do your research and DIY. Since 2003, I am of the opinion that I rather work with a CPA that I can trust to deal with this duty and serve as a buffer in case the IRS (or the state) has an issue. I let the CPA do it and I also do it myself and compare, but that is me. Over the years, the tax system became more and more complex, never simpler, and I rather have the peace of mind that a professiona...
by 4803
Mon Jan 27, 2020 6:34 pm
Forum: Investing - Theory, News & General
Topic: Equity returns over the next 40 years
Replies: 87
Views: 6143

Re: Equity returns over the next 40 years

Hello,

In constructing a long-term 60-year plan, we assumed 4% real return for a diversified global equity portfolio.

So far, for the 15 years 1/2005 - 12/2019, the portfolio is showing 5.85% return, although throughout most of the period I would say 4.5% or so real return would have been a better representative rate.

Best wishes,

:) 4803.
by 4803
Mon Jul 29, 2019 12:17 pm
Forum: Personal Investments
Topic: 5500 EZ plan year contributions question
Replies: 5
Views: 553

Re: 5500 EZ plan year contributions question

I think care must be given here as the employee part of contributions for 2018 must all be made in 2018. I think it may be allowed to have employer part of contributions for 2018 be made in early 2019 before filing 2018 taxes, but never used that option. I would think that the 5500-EZ would include all contributions for 2018 in the report, but would follow my CPA.

Best wishes,

:) 4803.
by 4803
Sat May 18, 2019 5:51 pm
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 6603

Re: Will ETFs Replace Traditional Funds

Interesting discussion.

Personally, I use ETFs in a taxable account and index mutual funds in tax advantage accounts.

The ETFs are easier for me to track for tax purposes and are more tax efficient in my case, using Vanguard ETFs and Fidelity mutual funds, all in Fidelity-managed accounts.

Best wishes,

:) 4803.
by 4803
Mon Apr 08, 2019 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Taxes (itemize or not?)
Replies: 16
Views: 1637

Re: Taxes (itemize or not?)

One more reason not to itemize is that taking the standard deduction simplifies the return and reduces the likelihood of an audit.

Best wishes,

:) 4803.
by 4803
Mon Mar 18, 2019 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford a $1.5 million house?
Replies: 125
Views: 10801

Re: Can I afford a $1.5 million house?

If you have siblings, I would strongly recommend against this.

If you are an only child, well, I am not positive either, but many of the concerns are gone. Still, this will likely change relations with your parents over time and may, at some later point, put some strain vis a vis relations between your spouse and your parents.

Good luck!

Best wishes,

:) 4803.
by 4803
Sat Mar 02, 2019 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Income Tax State of maryland
Replies: 16
Views: 1566

Re: 2018 Income Tax State of maryland

delamer wrote: Sat Mar 02, 2019 6:19 pm I am curious as to what the major factor was in making itemizing the better choice.

Large amounts of mortgage interest and/or property taxes?
Yes, as well as any other item that adds to itemized deduction, such as charitable contributions.

Best wishes,

:) 4803.
by 4803
Sat Mar 02, 2019 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Income Tax State of maryland
Replies: 16
Views: 1566

Re: 2018 Income Tax State of maryland

Hey, Just finished with our 2018 income taxes too (and so happy about that :) Overall, we paid about 13.5K less in 2018 compared with 2017 rules with the same 2018 numbers (the effect of the new tax law). About 12.5K of the difference was due to the elimination of the alternative minimum tax for people making less than a $1M. Even though we are in a blue state, the SALT limitation effects were pretty much cancelled in our case by the new brackets and reduced rates. Interestingly, similarly to the OP, taking the itemized deduction would have increased our federal taxes some but would have decreased our MD taxes even more. We decided to take the standard deduction anyway because the difference was small (tens of dollars) and we preferred to k...
by 4803
Mon Feb 04, 2019 8:49 pm
Forum: Personal Investments
Topic: Why ally bank
Replies: 98
Views: 18649

Re: Why ally bank

I use both Discover and Ally. They are both very good. Ally is across the board better - easier to open CD accounts with the same co-owner, faster in moving funds, and the interest is almost always a tad better.

Best wishes,

:) 4803.
by 4803
Fri Nov 30, 2018 8:13 pm
Forum: Personal Investments
Topic: Down payment for a house or investing the money?
Replies: 15
Views: 1851

Re: Down payment for a house or investing the money?

Normally, unless you pay 20% down, you will need to pay PMI (mortgage insurance), which will increase your cost. What kind of investment do you have in mind is also a relevant question.

When my wife and I faced the same question, we first completed the house purchase. Putting 20% down (to allow more favorable terms and avoid PMI) took almost all the cash we had at the time. Thereafter, we continued to max retirement accounts, and anything beyond that went 50% to investments and 50% to additional mortgage principal payments until the mortgage was gone. Some people would prefer 100% to investment and put down the minimum. Others want to avoid debt at all costs. I guess we split it in the middle :)

Best wishes,

:) 4803.
by 4803
Sun Sep 09, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth and SEP
Replies: 7
Views: 558

Re: Backdoor Roth and SEP

If the 401K balance is higher than $250,000, you will need to file Form 5500 every year. In such a case, the 401K solo is more complicated than SEP IRA to maintain. But the Form 5500 (or actually Form 5500EZ if possible for you, which is likely) should not be too complicated.

Best wishes,

:) 4803.
by 4803
Wed Apr 11, 2018 8:09 pm
Forum: Personal Investments
Topic: 29 YO With a big windfall. Invest or Pay off the mortgage?
Replies: 17
Views: 3417

Re: 29 YO With a big windfall. Invest or Pay off the mortgage?

How about 50% 50% ?

If the cost of re-casting is low ($200?) I would go for that but would keep paying at the same rate if possible.

Plus - how about taking 10% to live a little ?
(so, 45% toward the mortgage, 45% for taxable equities, 10% to live a little) :happy

Best wishes,

:) 4803.
by 4803
Sun Jun 18, 2017 5:27 pm
Forum: Personal Investments
Topic: Issue w/Personal Capital vs Vanguard Retirement Planners
Replies: 13
Views: 4175

Re: Issue w/Personal Capital vs Vanguard Retirement Planners

Dear Keepcalm, My spreadsheet contains both the year-by-year inflation adjusted numbers as well as the actual numbers as the years progress. On the "planning" side of the spreadsheet, I only work with inflation adjusted numbers anchored to the year I started my plan (in my case 2005). One of the columns is the inflation percentage since the start (2005). I assume that additional funding through the years are invested in the middle of the year. On the "actual" side of the spreadsheet, I use contemporary (actual) numbers, but they are adjusted automatically by the spreadsheet to the "planning" side of the spreadsheet based on the inflation percentage since the start for the year. In essence, I would like a certai...
by 4803
Sun Jun 18, 2017 6:06 am
Forum: Personal Investments
Topic: House Down Payment vs Retirement
Replies: 8
Views: 2890

Re: House Down Payment vs Retirement

Dear Keepcalm,
I appreciate the direction, do you think I should split the retirement and house down payment equally or do you think I should favor retirement by a higher percentage? As of right now I'm able to save more than 15% of my monthly income so I have been maximizing my Roth IRA contribution to hit the 5500 by years end and dumping the rest into my house den payment.
I agree with Dan and with your current strategy. Put everything into the house down-payment fund after making sure you max your Roth IRA for the year assuming you can have your down payment ready within 2-4 years.

Good job on your 20% approach!

Best wishes,

:) 4803.
by 4803
Sun Jun 18, 2017 5:47 am
Forum: Personal Investments
Topic: Issue w/Personal Capital vs Vanguard Retirement Planners
Replies: 13
Views: 4175

Re: Issue w/Personal Capital vs Vanguard Retirement Planners

Dear Keepcalm, I actually think that your method is fine and is a good start for where you are in the process. I think I have created a similar spreadsheet to the one you created at some point during my personal path, at a time I was older than you. I still use it 12.5 years later. I plugged your numbers in my spreadsheet assuming 4% real return (and using only real - inflation adjusted) numbers, and I do get 894483. The very small difference between that and the calculator Avo suggests is that my spreadsheet assumes that the contribution is throughout the year, not at the beginning of the year. Note that this assumes that your $12,500 contribution per year for 34 years will be inflation adjusted too. I also used 4% real return in my initia...
by 4803
Mon Nov 28, 2016 6:11 am
Forum: Personal Investments
Topic: $ 4 mil. after bs. sale. Redeploy & Portfolio advice?
Replies: 29
Views: 4821

Re: $ 4 mil. after bs. sale. Redeploy & Portfolio advice?

Dear ChuangTzu, Thank you for an interesting post. It looks to me that the amount of resources you have - $5M cash - should sustain well a $150K-200K per year withdrawals if invested properly (nothing fancy) in a disciplined way. And that is the catch here - one has to be disciplined and avoid costly mistakes. Many experienced people on this board who attained considerable wealth (a few $mm) did it over years and had several chances (financial market corrections and crashes) to learn to be disciplined when the stakes were lower. Over time, their disciplined "system" was developed, just like you developed a "system" that made you a disciplined R/E investor. For example, in your successful R/E system, you use no leverage a...
by 4803
Sat Jul 23, 2016 5:38 am
Forum: Personal Investments
Topic: 401(k) rollover to solo 401(k)-who'll accept???
Replies: 18
Views: 2090

Re: 401(k) rollover to solo 401(k)-who'll accept???

I believe that partners in partnerships with no employees, with income that is normally reported in schedule E, are eligible. My spouse's partnership did just that with Fidelity last year and it works like a charm. A rollover of an IRA was accepted. Indeed, form 5500 has to be filed by the partnership above some threshold (in her partnership case, 5500-EZ).

Best wishes,

:) 4803.
by 4803
Sun Jun 19, 2016 4:37 pm
Forum: Personal Consumer Issues
Topic: Buying Quality Personal Property
Replies: 30
Views: 4433

Re: Buying Quality Personal Property

About 25 years ago, my wife and I were on vacation and we walked into a photographer's gallery. She wanted to buy two framed photos for $300 each for my office. They were signed and numbered limited editions. I thought it seemed extravagant, but we bought the two photos. I have had them in my office since then. Recently, I redecorated my office. I wanted to buy two more photographs. The same photographs were now selling for $1,200 each. (Google "First Light Grizzly Bear" to see my last addition.) ... That got me to thinking about spending money on quality assets. The great thing about quality assets is that the generally hold their value. I could have the $300 photos on my wall for my entire career. They will look fantastic after...
by 4803
Sun Jun 05, 2016 4:36 pm
Forum: Personal Investments
Topic: Thank you from a new member and an introduction
Replies: 6
Views: 1516

Re: Thank you from a new member and an introduction

Very helpful - thank you so much!

:) 4803.
by 4803
Sat Jun 04, 2016 2:49 pm
Forum: Personal Investments
Topic: Thank you from a new member and an introduction
Replies: 6
Views: 1516

Re: Thank you from a new member and an introduction

Dear Lafder, Thank you for your reply. Yes - I think our actions were fairly sensible based on the knowledge we had. However, if we knew about the Boglehead community (or the diehards at the time), this could have saved us some steps. Today, I recommend this site and related books to help other people short-cut our discovery path. Do you hold a % of your assets in cash? Yes - outside of the plan, we are accumulating FDIC insured funds until we can figure out how to integrate that to the plan. At this point, it is more than 15% of the value of the plan and is steadily increasing. I would like to learn more about inflation-protected fixed income instruments in the near future. I do not think they earn much these days, which is understandable ...
by 4803
Mon May 30, 2016 12:07 pm
Forum: Investing - Theory, News & General
Topic: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]
Replies: 553
Views: 172352

Re: New Book: Living off Your Money (Michael McClung)

Hello, First - I have no relation to the author. Second - I am another person who has registered and became a member to be able to post about the book. I learned about the book here (thanks for posting siamond!), got the free part, and then purchased the pdf. I find this book to be thought-provoking at a level rarely seen in personal finance books. The third chapter alone, describing numerous income harvesting strategies and evaluating them, was worth the money to me (even though that part of the book is available for a free download). The main value I gained from that part of the book is how to decide when equities reach a point where they should be harvested (when their value, including reinvested dividends, reaches a point that is 20% in...
by 4803
Mon May 30, 2016 10:20 am
Forum: Personal Investments
Topic: Thank you from a new member and an introduction
Replies: 6
Views: 1516

Thank you from a new member and an introduction

Hello, Thank you all for your enormous contributions to this excellent forum! In a world of financial uncertainty full of conflicting interests and useless media noise, I found this forum to be a useful source of thought-provoking ideas, sound advice, and actionable information. I appreciate the courtesy and grace with which advice and comments are dispensed here. I found this forum in 2012 and have been a frequent visitor since, implementing the first tangible idea we (my spouse and I) learned here in early 2013. Thank you all so much! Our journey into finding and refining a systematic approach to investing started in 1997 when I had to chose investment options for a defined contribution plan (with Fidelity). I picked based on what "l...