No way I would touch that deal.
Aside from the negative cash flow and other risks noted by others, this is a recipe for a mess and turning friends into former friends. What happens when one person gets married or divorced, loses a job and has trouble with the negative carry? There are theoretical answers to all of these questions put spending the money to properly document this deal is not worth it.
Search found 374 matches
- Tue Jan 02, 2024 7:02 am
- Forum: Personal Investments
- Topic: Am I missing the big picture
- Replies: 32
- Views: 5938
- Mon Jan 01, 2024 2:50 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072561
Re: Share your networth progression
Update 2023: $25.5 millionNYCguy wrote: ↑Sun Jan 02, 2022 5:54 pmUpdateNYCguy wrote: ↑Sun Jan 03, 2021 3:43 pmNYCguy wrote: ↑Fri Jan 04, 2019 6:09 pmUpdateNYCguy wrote: ↑Wed Nov 16, 2016 10:29 pm 1993 age 28 -$80k student loan debt
1997 $0
1999 $100k
2002 $400k
2005 $1 million
2007 $2 million
2010 $5 million
2014 $10 million
2016 $12 million
Always saved 30-60% of after tax income. Blessed with great job though 24/7/365 commitment. Low cost, tax efficient index funds.
2017 $14.9 million
2018 $15.7 million
Update:
2019: $18 million
2020: $20.5 million
30% is paid for RE, 30% tax deferred accounts, 30% taxable, 10% Roth/529/HSA. Asset allocation has moved from 80/20 to 60/40 over time.
2021: $23.5 million
- Mon Jan 01, 2024 8:54 am
- Forum: Personal Investments
- Topic: Investing house profit to subsidize apartment life
- Replies: 3
- Views: 590
Re: Investing house profit to subsidize apartment life
Not enough information here.
Your expenses would jump from $1700 to $5200 assuming there are not offsetting savings in the 1700.
I assume you are not spending $42,000 to live in your $300k house but you reference the $200k in needed maintenance and improvements.
My question is can you afford either option? What are your incomes and for how much longer and what other assets and liabilities are in the mix. I would be thinking about this in the context of the bigger picture.
Your expenses would jump from $1700 to $5200 assuming there are not offsetting savings in the 1700.
I assume you are not spending $42,000 to live in your $300k house but you reference the $200k in needed maintenance and improvements.
My question is can you afford either option? What are your incomes and for how much longer and what other assets and liabilities are in the mix. I would be thinking about this in the context of the bigger picture.
- Mon Jan 01, 2024 8:46 am
- Forum: Personal Finance (Not Investing)
- Topic: Looking to buy 2nd home in VHCOL, can we afford?
- Replies: 23
- Views: 2956
Re: Looking to buy 2nd home in VHCOL, can we afford?
Yes you can afford it and yes it is at least an ok financial move. You could pay cash for the house if you wanted to and you will have a healthy 18k monthly savings after purchase if you choose the mortgage. The 18 savings amount will be helpful for covering the hidden costs an electives that come with buying a nicer house. You do not say whether the rental income will be on the old home but I assume it is at least a wash. I get the value of a 2% mortgage but consider: 1. Do we want to be a landlord? 2. With kids and demanding tech jobs do we have the time to be a landlord? 3. Will you lose the 500k free capital gains if you convert from a primary residence to a rental property. Perhaps others on the forum can address the tax implications o...
- Wed Dec 27, 2023 5:45 pm
- Forum: Personal Consumer Issues
- Topic: What Book Are You Currently Reading? Part VI
- Replies: 7638
- Views: 1713184
Re: What Book Are You Currently Reading? Part VI
Just finished Archer Mayor's "Bomber's Moon" Joe Gunther is the lead investigator of Vermont Bureau of Investigation (VBI). He and his team investigate two murders - a drug dealer and a high end thief. His girl friend's daughter, Rachel Reiling is a reporter who teams up with a PI - Sally Kravitz to detail irregularities in a Vermont Prep School. The murders and prep school are intertwined. Not bad. I like investigator series...I have read two of Mayor's. I like the Vermont setting. While Mayor is no Michael Connelly (who is?) he provides a nice rural setting for his books. The author speaks from experience as he is a death investigator for Vermont Medical Examiner. Ed Coincidentally, I just finished Bomber’s Moon and enjoyed it....
- Wed Dec 27, 2023 4:57 pm
- Forum: Personal Consumer Issues
- Topic: How much to spend on single vacation?
- Replies: 108
- Views: 25005
Re: How much to spend on single vacation?
Since you are in soldi financial shape, I would not think twice about it.
I have experienced total vacation lifestyle creep over the past decade and have zero regrets and memories with my family and friends that will be with me when I am in diapers eating jello. Whatever does not feel right to spend money on, skip. Otherwise enjoy!
I have experienced total vacation lifestyle creep over the past decade and have zero regrets and memories with my family and friends that will be with me when I am in diapers eating jello. Whatever does not feel right to spend money on, skip. Otherwise enjoy!
- Wed Dec 27, 2023 4:15 pm
- Forum: Personal Consumer Issues
- Topic: What Book Are You Currently Reading? Part VI
- Replies: 7638
- Views: 1713184
Re: What Book Are You Currently Reading? Part VI
The Missing Billionaires - A Guide to Better Financial Decisions.
This book is by some of the LTCM principals who had a front row seat at the implosion in 1998. This is not another recount of the implosion. It is a thoughtful, practical but technical how to book. On my second read and still digesting it. The Book made The Economist 20223 Best Books list.
Also just re-read Psychology of Money and Morgan Housel’s new book, Same As Ever. Housel is brilliant IMO.
Maddow’s new book is a real eye opener.
This book is by some of the LTCM principals who had a front row seat at the implosion in 1998. This is not another recount of the implosion. It is a thoughtful, practical but technical how to book. On my second read and still digesting it. The Book made The Economist 20223 Best Books list.
Also just re-read Psychology of Money and Morgan Housel’s new book, Same As Ever. Housel is brilliant IMO.
Maddow’s new book is a real eye opener.
- Sun Jul 02, 2023 7:46 am
- Forum: Personal Finance (Not Investing)
- Topic: Is this move to NYC worth it?
- Replies: 109
- Views: 9242
Re: Is this move to NYC worth it?
I know I'd definitely be having more fun and better quality of life in NYC, but I would be losing around $1000/month because of this move. As an employer of several hundred 20 something’s in NYC today and as someone who moved to NYC out of grad school, young, single and broke 30 years ago, I can tell you you have answered your own question but should focus on the big picture. It will be fun and your quality of life will be better, by your own assessment. Post COVID NYC is booming with energy and opportunity. The restaurants and bars are full and the younger employees love being back in the office. That said, I think we will operate on a flexible hybrid model for years to come. The big picture is not the $1000 a month possible loss. You sho...
- Thu Jun 02, 2022 9:37 pm
- Forum: Investing - Theory, News & General
- Topic: My experience selling 40M worth of Company Stock
- Replies: 96
- Views: 16824
Re: My experience selling 40M worth of Company Stock
Congrat. Interesting story. I tried to place an online purchase order at Vanguard for $1 million of a Vanguard muni fund a few weeks ago and I was forced to phone it in. I was told it settled at that day’s market close (it was exactly 4pm). It took a few days for the trade to settle and I was given the market close a day later than I when I called. It turned out the price dropped a about 10 bps ($1,000) between the two days. About a week later I got an urgent call from Vanguard asking me if I wanted my original trade date. I told them I would honor my original trade date but if they are giving me the choice, I would take the later date at the lower price. They said it was my choice so of course I pocketed the $1k averted loss. Very odd. I a...
- Sun Jan 02, 2022 5:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072561
Re: Share your networth progression
UpdateNYCguy wrote: ↑Sun Jan 03, 2021 3:43 pmNYCguy wrote: ↑Fri Jan 04, 2019 6:09 pmUpdateNYCguy wrote: ↑Wed Nov 16, 2016 10:29 pm 1993 age 28 -$80k student loan debt
1997 $0
1999 $100k
2002 $400k
2005 $1 million
2007 $2 million
2010 $5 million
2014 $10 million
2016 $12 million
Always saved 30-60% of after tax income. Blessed with great job though 24/7/365 commitment. Low cost, tax efficient index funds.
2017 $14.9 million
2018 $15.7 million
Update:
2019: $18 million
2020: $20.5 million
30% is paid for RE, 30% tax deferred accounts, 30% taxable, 10% Roth/529/HSA. Asset allocation has moved from 80/20 to 60/40 over time.
2021: $23.5 million
- Mon Aug 09, 2021 8:46 pm
- Forum: Investing - Theory, News & General
- Topic: The Long Run Is Lying to You (Part 2)
- Replies: 126
- Views: 17636
Re: The Long Run Is Lying to You (Part 2)
I went back to read Part 1 and Cliff’s article. I respect Cliff and feel badly for friends that have followed the value, factor tilt for the past decade plus. I see little need to feel sorry for them. People that are into factor investing are usually smart enough to diversify internationally. An international small value portfolio has outperformed the total market by about ~2% over the last ~10 years. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2011&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceTy...
- Sun Aug 08, 2021 8:23 am
- Forum: Investing - Theory, News & General
- Topic: The Long Run Is Lying to You (Part 2)
- Replies: 126
- Views: 17636
Re: The Long Run Is Lying to You (Part 2)
I went back to read Part 1 and Cliff’s article. I respect Cliff and feel badly for friends that have followed the value, factor tilt for the past decade plus. The irony is history MAY prove the strategy correct, but those investors are paying a steep price. The beauty of Jack Bogle and a Boglehead three fund portfolio, is we do not need to be right or wrong. We own the whole market. Large cap growth may be relatively overvalued for an extended time and value may outperform in the future. It does not matter for a total market investor. I was tempted over a decade ago by the academic literature suggesting that value and factor tilts should outperform on a risk adjusted basis. A sophisticated Boglehead friend switch from a 3 fund portfolio to ...
- Fri Jun 11, 2021 6:33 pm
- Forum: Personal Investments
- Topic: Financial Planner Requiring Custody "for compliance" True?
- Replies: 25
- Views: 2310
- Fri Jun 11, 2021 6:33 pm
- Forum: Personal Investments
- Topic: Financial Planner Requiring Custody "for compliance" True?
- Replies: 25
- Views: 2310
Re: Financial Planner Requiring Custody "for compliance" True?
Does this explanation ring true for any RIA financial planners here? Keep in mind, this firm is a RIA, is prepared to have a full fiduciary relationship with us and is not compensated on an AUM model. Their compensation is a subscription fee only. I can't speak for your state. (i'm assuming NY), but in WA, the regulators are a pain in the butt. They make "subscription" fee's illegal, unless its computed as "assets under management". So if I want to charge someone $12k per year as a subscription, you have them put assets in an account, that you can bill against (regardless if you take the money from the account, but it can make sense to pay out of a pretax/traditional account). WA doesn't allow fee's higher then 2%, so a...
- Fri Jun 11, 2021 4:50 pm
- Forum: Personal Investments
- Topic: Financial Planner Requiring Custody "for compliance" True?
- Replies: 25
- Views: 2310
Financial Planner Requiring Custody "for compliance" True?
DW and I are looking to engage a hourly fee only or subscription based financial planner to plan for the retirement de-accumulation phase of life. Ideally we are looking for a small firm or individuals who specialize in working with high net worth families ($22 million) and we are looking for a long term relationship similar to what we have with our accountants and lawyers. We have been on top of asset allocation and generally have a BH three fund portfolio allocated across taxable, tax deferred and Roth accounts so actual investment management is less important than the financial planning aspects but obviously they are very much related. We particularly liked one small firm we interviewed but there is one aspect that does not make sense to...
- Sun May 09, 2021 8:22 am
- Forum: Personal Consumer Issues
- Topic: Need car for approximately 1 year
- Replies: 31
- Views: 3198
Re: Need car for approximately 1 year
As an alternative to one year car ownership consider a specialized car service for transporting children. Aside from the convenience, the numbers may not be prohibitive as compared to one year car ownership.
I have heard good things about hop skip drive.
https://www.hopskipdrive.com/
I have heard good things about hop skip drive.
https://www.hopskipdrive.com/
- Fri Jan 22, 2021 10:16 pm
- Forum: Investing - Theory, News & General
- Topic: 2nd million is easier!
- Replies: 193
- Views: 52777
Re: 2nd million is easier!
OMG. I just caught up on this thread from four years ago. I am truly touched by the generous comments made by so many of you. You are what makes Bogleheads great and why I contribute and learn from others. For those who are interested, we now have about 1200 employees globally. Almost everyone has been working remotely since March and I am proud to say we have not laid anyone off or reduced salaries. After a rough adjustment, we are now busier than ever. I am as much a benefactor as I am troubled by the Y shaped recovery. I appreciate that most who work hard are not going to win the financial lottery, but I can testify that if you work hard and follow the Boglehead principles financial success should follow. I am on my own financial journey...
- Sat Jan 16, 2021 6:16 am
- Forum: Personal Consumer Issues
- Topic: Is anyone playing the Future Cruise Credit game?
- Replies: 16
- Views: 2237
Re: Is anyone playing the Future Cruise Credit game?
If I were interested in that game I would buy cruise-line debt or equity and then pay cash for my cruise if and when the cruise industry recovers. I wouldn’t want to be an unsecured creditor in a bankruptcy with my upside being a paid for cruise.
- Sat Jan 09, 2021 7:34 am
- Forum: Personal Finance (Not Investing)
- Topic: Weird Phone Conversation with Fidelity
- Replies: 56
- Views: 6695
Re: Weird Phone Conversation with Fidelity
Reporting it is beneficial to the rep and FIDO. Managers use these recordings as training and teaching moments. It also will help identify a problem if it exists.
I would not report this if it were Verizon or a cc call center. I suspect those reps would be punished and I don’t need that karma.
I would not report this if it were Verizon or a cc call center. I suspect those reps would be punished and I don’t need that karma.
- Mon Jan 04, 2021 10:20 pm
- Forum: Personal Consumer Issues
- Topic: ISP email account vs Gmail
- Replies: 28
- Views: 2880
Re: ISP email account vs Gmail
+1 for proton mail. Also iCloud provides great email, particularly if you using Apple products. It has strong security similar to Gmail without the privacy issues.
- Sun Jan 03, 2021 5:08 pm
- Forum: Personal Consumer Issues
- Topic: Mac Mini Upgrade?
- Replies: 9
- Views: 1072
Re: Mac Mini Upgrade?
Your current MM sounds like it is still doing the job so I would sit tight. I am using a new MM with the M1 and it is terrific but my old MM works fine too.
I had a "reason" to get the M1 but I suspect there will be an even better one in 12 months.
I had a "reason" to get the M1 but I suspect there will be an even better one in 12 months.
- Sun Jan 03, 2021 5:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: What is the right saving strategy to buy a home in HCOL area?
- Replies: 31
- Views: 3434
Re: What is the right saving strategy to buy a home in HCOL area?
The piece of your situation that makes me nervous is not being able to make your purchase contingent on the sale of your townhouse. I have seen too many people over a financial barrel because they couldn't sell their former home.
I would not hesitate to use your cash reserves for the purpose. I would marshal all the cash you can for the transition over the next 12 - 24 months. Be patient and get the right house. If at all possible, sell, rent and then buy.
I would not hesitate to use your cash reserves for the purpose. I would marshal all the cash you can for the transition over the next 12 - 24 months. Be patient and get the right house. If at all possible, sell, rent and then buy.
- Sun Jan 03, 2021 3:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072561
Re: Share your networth progression
NYCguy wrote: ↑Fri Jan 04, 2019 6:09 pmUpdateNYCguy wrote: ↑Wed Nov 16, 2016 10:29 pm 1993 age 28 -$80k student loan debt
1997 $0
1999 $100k
2002 $400k
2005 $1 million
2007 $2 million
2010 $5 million
2014 $10 million
2016 $12 million
Always saved 30-60% of after tax income. Blessed with great job though 24/7/365 commitment. Low cost, tax efficient index funds.
2017 $14.9 million
2018 $15.7 million
Update:
2019: $18 million
2020: $20.5 million
30% is paid for RE, 30% tax deferred accounts, 30% taxable, 10% Roth/529/HSA. Asset allocation has moved from 80/20 to 60/40 over time.
- Tue Dec 29, 2020 9:57 pm
- Forum: Personal Consumer Issues
- Topic: Monitor For a Mac Mini
- Replies: 23
- Views: 2207
Re: Monitor For a Mac Mini
I've decided it's time to upgrade my iMac and rather than wait a year for the M1 chip to be available on this model, I'm considering a Mac Mini. This 21.5" +/- size is about right for my desk but I assume I want a monitor that has speakers and a camera to replace what my iMac offered. Can anyone suggest a decent monitor for this use? First, I have been very happy with the Mac mini with the M1 chip. I highly recommend the 27 inch LG ultrafine monitor. It benefits from the built-in camera, speaker and microphone, all of which work well. I have also have the 24 inch LG ultra fine and an LG 49 inch monitor. The 24 inch is fine if you can forgo the camera, speaker and microphone. The single thunderbolt 3 connection works really well with a...
- Sat Dec 05, 2020 5:38 pm
- Forum: Personal Consumer Issues
- Topic: Ventless Clothes Driers
- Replies: 19
- Views: 2235
Re: Ventless Clothes Driers
We have a 15-year-old ventless Bosch dryer in an Inlaw apartment. Does not get regularly use and has been serviced several times. The only problem with it is that it really does not dry clothes.
Curious whether anyone has had a better experience with a more recent unit.
Curious whether anyone has had a better experience with a more recent unit.
- Sat Dec 05, 2020 5:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: My work wants to take out a $3.5M life insurance on me
- Replies: 65
- Views: 7109
Re: My work wants to take out a $3.5M life insurance on me
This does not sound like a key man insurance policy. This is a COLI program that the company has decided they can make money for itself. There is a secondary market for these types of policies. I would be more concerned about why the company is messing around with this type of product and not focusing on its core business. The downsides for you are: 1. Will this adversely affect your ability to get life insurance in the future. Probably not. 2. There is some chance this program ends up in litigation and you may be a witness. I think that is unlikely. Be careful what you are certifying to when you apply for the insurance. Misstatements can be insurance fraud. 3. Someone you do not know will have a $2,450,000 interest in your premature death....
- Thu Dec 03, 2020 7:11 pm
- Forum: Personal Investments
- Topic: Is there any advantage to using wealth management or private banking?
- Replies: 33
- Views: 4683
Re: Is there any advantage to using wealth management or private banking?
I have had the benefit of a private banker and his team for many years. I receive the service for “free“ through my business. While I enjoy the ability to send an email and get many little things addressed, send wires, deal with credit card issues, get mortgages, I would not pay for the services. I think they are excellent but overpriced and not worth it to me. I am happy to pay by the hour top dollar for excellent services. I have a trust and estates attorney, accountant who does my taxes and assists with tax planning, and I’ve consulted a fee only financial advisor for some specific issues. Generally I am a three fund buy-and-hold investor so investments are not so complicated for me. Like you, I enjoy investing. I’ve told my wife to call...
- Sun Nov 15, 2020 4:42 pm
- Forum: Personal Investments
- Topic: Portfolio after large house purchase
- Replies: 29
- Views: 4210
Re: Portfolio after large house purchase
1. I am squarely in the camp of viewing a mortgage as a negative bond. I believe William Bernstein shared that view. When I took on a jumbo mortgage 10 years ago I committed to paying it off in four years. I was and I am in a high income high-risk job. I knew I would sleep better when the mortgage was paid off though I recognize conventional financial wisdom suggests keeping your mortgage outstanding. I like the fact you can recast your mortgage. I took out an interest only arm because that feature was not available to me. 2. I also sold my REIT exposure when I purchased expensive real estate. The benefits of having REITs in a three fund portfolio is unclearly best. Once I had substantial real estate exposure I decided not to continue with ...
- Wed Nov 11, 2020 10:22 pm
- Forum: Investing - Theory, News & General
- Topic: Taylor Sends His Best to Fellow Bogleheads
- Replies: 334
- Views: 34172
Re: Taylor Sends His Best to Fellow Bogleheads
+1Normchad wrote: ↑Wed Nov 11, 2020 5:32 pm Thanks for posting. I’ve never seen a picture of Taylor before; it’s really nice to put a face with a name.
Taylor, thank you for everything you’ve done. You’ve helped so many over the years. On top of the great financial advice, you’ve also demonstrated class, civility, and patience to all of us. You’re a role model for me.
Best wishes!
- Mon Nov 02, 2020 7:37 pm
- Forum: Personal Investments
- Topic: unlimited Roth conversions and distributions
- Replies: 5
- Views: 709
Re: unlimited Roth conversions and distributions
Remember that the amount converted is treated as taxable income to you. You need cash outside of your IRA to pay that tax bill.
- Mon Oct 26, 2020 9:38 am
- Forum: Personal Consumer Issues
- Topic: Quicken - Vanguard Charitable Fund Downloads
- Replies: 1
- Views: 246
Quicken - Vanguard Charitable Fund Downloads
Is it possible to download transactions from Vanguard Charitable DAF into Quicken 2020? If not, I am interested in your best workaround other than manual input.
Thanks
Thanks
- Sat Oct 03, 2020 9:47 pm
- Forum: Personal Consumer Issues
- Topic: Music Streaming Services
- Replies: 62
- Views: 7814
Re: Music Streaming Services
Long time Apple Music user. I am now testing both TIDAL and Qobuz for hi res audio. I think I’m switching to Qobuz. Impressive.WhiteMaxima wrote: ↑Fri Oct 02, 2020 2:12 pm I prefer Qobuz HiRes Streaming. $149/year. 192kHz/24bit Music. Tried Amazon HD. their HD streaming App is limited to 96Khz/24bit. Next is Tidal HiFi MQA. For HD streaming, you will need a good DAC.
- Sun Sep 27, 2020 8:14 am
- Forum: Personal Consumer Issues
- Topic: Experience w/LG's 5k Ultrafine Display
- Replies: 6
- Views: 653
Re: Experience w/LG's 5k Ultrafine Display
I have the 5k Ultrafine and the 4K variant connected to a MBP. Image quality is outstanding on both. The 5k has the benefit of camera, speakers and mic. Being able to connect with a single thunderbolt cable and also charge the MBP is impressive and convenient. The camera, speakers and mic are surprisingly good and convenient, especially for Zoom and FaceTime, but understandably not as good as the Brio. As others have said, it is pricey. A couple of months ago supplies of the 5K became slim and some speculated Apple was going to release its own version of this monitor, hopefully at a lower price point than its current monitor. Since then, supplies of the LG 5K have improved and I haven’t seen evidence of a new Apple monitor coming. Highly re...
- Wed Aug 12, 2020 5:19 pm
- Forum: Personal Investments
- Topic: Selling my VTSAX Index Fund for a down payment on a new house?
- Replies: 7
- Views: 1671
Re: Selling my VTSAX Index Fund for a down payment on a new house?
I guess what I’m getting at is can anyone think of a better iway to raise $120,000 for the downpayment other than liquidating this index fund? I don't know if it would be a good idea on not but you could get a home equity loan on your current home or the condo. A margin loan on your brokerage account or 401k loan would also be an option. If you only need an additional $22K you might be able to get car loans on paid off cars. If you do get a new loan sure to that it will not cause problems with your lender who is doing the financing for your new property. That said I would likely just sell the $22K in stock to raise the money. If you have some capital gains taxes that you would have to pay it may only be a question of "when" you p...
- Mon Aug 03, 2020 9:17 am
- Forum: Personal Investments
- Topic: Capturing the loss plus tax-free gain in Roth?
- Replies: 44
- Views: 2599
Re: Capturing the loss plus tax-free gain in Roth?
Hi, I am looking at a variation of this. Let me simplify the question and situation. Let's assume that my AA is 50/50 and my portfolio is 200K. 100K of bond in the Roth IRA and 100K of stock in the taxable account. A) Let's assume that we have a market crash and the stock drop 50% and the bond stays at no loss. B) So, I have 50K of stock and 100K of the bond. 1) I could tax loss harvest at my taxable account and generate a capital loss. 2) In order to maintain AA of 50/50, I sell 25K of the bond and buy 25K of the stock in my Roth IRA account. So, my future gain from the stock will be tax-free. In summary, I get both the benefits of tax loss from my taxable account and tax-free growth from my Roth IRA in a market downturn. Am I correct in ...
- Sun Aug 02, 2020 8:59 pm
- Forum: Personal Investments
- Topic: Capturing the loss plus tax-free gain in Roth?
- Replies: 44
- Views: 2599
Re: Capturing the loss plus tax-free gain in Roth?
Hi, I am looking at a variation of this. Let me simplify the question and situation. Let's assume that my AA is 50/50 and my portfolio is 200K. 100K of bond in the Roth IRA and 100K of stock in the taxable account. A) Let's assume that we have a market crash and the stock drop 50% and the bond stays at no loss. B) So, I have 50K of stock and 100K of the bond. 1) I could tax loss harvest at my taxable account and generate a capital loss. 2) In order to maintain AA of 50/50, I sell 25K of the bond and buy 25K of the stock in my Roth IRA account. So, my future gain from the stock will be tax-free. In summary, I get both the benefits of tax loss from my taxable account and tax-free growth from my Roth IRA in a market downturn. Am I correct in ...
- Sat Jun 13, 2020 7:32 pm
- Forum: Personal Investments
- Topic: Opinion of HNW Portfolio [High Net Worth]
- Replies: 33
- Views: 5229
Re: Opinion of HNW Portfolio [High Net Worth]
I'd suggest to you to read the pages in Buffett's letter from 2011 on pages 17-19 on Choices for Investors. It will help inform your decisions about your asset allocation, or at least keep you thinking. It's especially relevant to your longer term horizon. Congratulations on your position. Good luck. https://www.berkshirehathaway.com/letters/2011ltr.pdf Warren writes so eloquently and is so true. Indeed, I’d love to be able to garner a higher yield and have inflation protection. What if the portfolio was 60/40 or 80/20 instead of 45/55? I want to let go, hopefully turning the reins over to my son. Although I will mentor him and I believe he has the ability, I’m concerned he could make my mistake. I’m ashamed to admit it but, even after I t...
- Sat Apr 11, 2020 5:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Executive pay cut request: How to respond?
- Replies: 130
- Views: 15474
Re: Executive pay cut request: How to respond?
I am an entrepreneur. I make a 7 figure annual income. I built my own successful company. I don’t enjoy going to the expensive lawyers and accountants all that much. I may get more interesting advice when I post on bogleheads or on a forum in my industry. Sure, I may then bring forward some of those ideas to the expensive professionals, but I still get good ideas and appreciate the discussion right here. I also like to think that I know how to spot good advice and how to ignore bad advice, but no matter what, I quite often benefit from the discussions on this forum. Please be polite and respect the OP for the question posed. Rich people have feelings too! Go ahead and present a thoughtful answer, or otherwise, you could simply opt to reser...
- Sat Apr 11, 2020 4:50 pm
- Forum: Personal Investments
- Topic: Guys I Rebalanced (Moved Monies Out Of S&P 500)
- Replies: 301
- Views: 23909
Re: Guys I Rebalanced (Moved Monies Out Of S&P 500)
So you think you know better than the rest of the market No, I never said that. ......and are willing to bet your portfolio on it? That’s up to you. I’ll be buying (maybe even your shares). For it to get worse, expectations have to get worse. Expectations are pretty bad right now. Expectations are going to get worse. That's what I'm trying to point out here. And I know I'm falling into the timing the market situation, but I'm just not understanding how you guys aren't seeing my point here. I know that I'm not following the built in theories, but I don't think DOW 19000 is the worse. I think it's about to bleed down to DOW 15000 or way way worse. I don't think the market has priced everything in at all. As a long time buy and hold Boglehead...
- Sat Apr 11, 2020 12:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Executive pay cut request: How to respond?
- Replies: 130
- Views: 15474
Re: Executive pay cut request: How to respond?
OP: Whether to accept the 25% cut depends upon 1. Whether you want a long term relationship with the company. 2. Whether you can find a replacement job in the current environment that you will be happy with from a work/comp perspective or whether you are ok with the company terminating you either assuming they payout the contractual terms or do not (go bankrupt or force you to sue to collect). The number of hours you work and how much more or less you work from home I would think is irrelevant to the company and I would not bring it up in any communication. Presumably you are being compensated for the value you bring to the enterprise and you just need to communicate your willingness to continue to bring that value regardless of whether you...
- Sun Apr 05, 2020 8:14 am
- Forum: Personal Investments
- Topic: Any high bracket investors dumping munis?
- Replies: 127
- Views: 11020
Re: Any high bracket investors dumping munis?
"I would say, think about why you get into munis to begin with. It’s got really low historical default rates and you get tax-free income. So, right now, with yields where they are, you have the ability to lock in some very nice yields to get that tax-free income. You can invest on a diversified basis to remove even the smallest bit of default risk and hold it for the long term." - Paul Malloy, Vanguard. Having quoted that, I do believe that this recession is it's own animal for sure. I'm not selling my muni fund (VTEB) outright, but if the equities market drops further and rebalancing from bonds to stocks is required by my IPS (5% rebalancing bands) I'll sell from my muni fund instead of my intermediate-term bond index fund (BIV)...
- Tue Mar 31, 2020 2:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: House Buying Advice - Contract Already Signed
- Replies: 39
- Views: 4709
Re: House Buying Advice - Contract Already Signed
You definitely need to be represented by a lawyer. Do not listen to a RE agent or anyone else.
Have her explain the legal consequences/risks of breaching the contract and then make a decision.
Alternatively, take a long view and close on the house and you probably will be fine.
Have her explain the legal consequences/risks of breaching the contract and then make a decision.
Alternatively, take a long view and close on the house and you probably will be fine.
- Tue Mar 31, 2020 2:50 pm
- Forum: Personal Investments
- Topic: Wait a bit for TLH?
- Replies: 10
- Views: 1038
Re: Wait a bit for TLH?
+1.UpsetRaptor wrote: ↑Tue Mar 31, 2020 12:37 pm No reason to wait. Just do it now, and if the market does happen to drop again then just do it again then.
I happened to TLH earlier today, though I think there is a distinct possibility the market has another significant downward leg ahead. If it does, I will TLH again. If it doesn't, I will have captured the losses I have. Win-Win in an otherwise loosing market.
- Sat Mar 28, 2020 9:44 pm
- Forum: Personal Consumer Issues
- Topic: What will you do first, once COVID pandemic is over?
- Replies: 271
- Views: 22592
Re: What will you do first, once COVID pandemic is over?
Leave my bunker and go home.
- Sat Mar 28, 2020 6:21 pm
- Forum: Personal Investments
- Topic: Any high bracket investors dumping munis?
- Replies: 127
- Views: 11020
Re: Any high bracket investors dumping munis?
I moved seven figures from the Vanguard New York Long Term and Money Market funds to short term treasuries a few weeks ago. As I have posted over the years, I think there is muni risk in the long term and I am not taking that risk today given the severe financial stress New York faces.
- Thu Mar 12, 2020 6:34 pm
- Forum: Investing - Theory, News & General
- Topic: NY Times: Something Weird Is Happening On Wall Street
- Replies: 5
- Views: 2589
Re: NY Times: Something Weird Is Happening On Wall Street
This article was written before the Fed intervention, but normalcy has not returned. 1. Marking asset values remains difficult. Let’s see what tomorrow brings. 2. High quality muni bonds are falling in value despite the flight to quality in fixed income. My IPS calls for a switch to treasury funds when I see anomalous behavior in the muni market. Today I switched seven figures out of New York bond and money market funds for that reason.. I took this precaution in 2008. I hope it is unnecessary. 3. There have been several media reports that private equity firms have ordered their portfolio companies to borrow, and several large corporations are borrowing under their committed credit facilities. This means that these companies would rather ha...
- Sat Dec 07, 2019 2:18 pm
- Forum: Personal Investments
- Topic: All munis for fixed income allocation in early retirement for roth conversion?
- Replies: 42
- Views: 2095
Re: All munis for fixed income allocation in early retirement for roth conversion?
Do you get any special treatment than paying tax for contribution and earnings in tax deferred when paying for long term care? In 2019, the IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses for the year that exceeds 10% of their adjusted gross income. For 2017 and 2018, the threshold amount was lowered to 7.5% of AGI. I believe the theory is that if you are in long-term care, potentially spending $100,000 or more a year, you can deduct 90% of that expense against your withdrawal from your tax deferred account. This would effectively make all but 10% of your withdrawal tax free. In contrast if you paid the same long-term care expense from taxable accounts you probably do not have ordinary income to ta...
- Sat Dec 07, 2019 2:02 pm
- Forum: Personal Investments
- Topic: All munis for fixed income allocation in early retirement for roth conversion?
- Replies: 42
- Views: 2095
Re: All munis for fixed income allocation in early retirement for roth conversion?
I can see that may seem attractive, but I think you are overlooking the fact that it completely changes the risk profile of your portfolio. This is NOT a choice between equally good portfolios. I would like to understand this point better. I understand the general rule to put bonds in tax-deferred accounts. I understand that using munis may or may not adversely effect yields and return, and will adversely affect diversification. Is the risk that if there is significant equity appreciation while disproportionately more equities are held in the tax-deferred accounts OP will be paying more tax on the time of conversion as ordinary income whereas if the same event occurred in taxable accounts it would be capital gains or not taxed at all since...
- Sat Dec 07, 2019 11:43 am
- Forum: Personal Finance (Not Investing)
- Topic: Most "vanguard like" HSA provider
- Replies: 51
- Views: 5884
- Sat Dec 07, 2019 11:37 am
- Forum: Personal Investments
- Topic: All munis for fixed income allocation in early retirement for roth conversion?
- Replies: 42
- Views: 2095
Re: All munis for fixed income allocation in early retirement for roth conversion?
I am keenly interested in others’ view of your question. I did a detailed analysis and reached the same conclusion. My observation in working with the tax calculators is that there is a significant benefit to managing your taxable income during the conversion years end it sounds like you are seeing the same thing. The State concentration risk is real and difficult to quantify. Unlike New York and Illinois, I agree with you that California is too big to fail. The federal government would need to bail it out.. In the case of New York, it is a risk I probably can live with. I have been slowly reducing my asset allocation from 80/20 to now approximately 70/30 and will likely land at 55/45 when entering retirement. This is partly to mitigate aga...