Search found 3004 matches

by azanon
Thu Mar 25, 2021 3:06 am
Forum: Investing - Theory, News & General
Topic: I bonds vs. tax advantaged accounts
Replies: 16
Views: 1860

Re: I bonds vs. tax advantaged accounts

This might help. I’d slot savings bonds between 7/8. But others might say they are part of 10. MYGAs also belong there somewhere. https://www.bogleheads.org/wiki/Prioritizing_investments Thanks for the link - didn't know about that. 10 (IMO) is too harsh for I-bonds and underappreciates their super...
by azanon
Thu Mar 25, 2021 2:57 am
Forum: Investing - Theory, News & General
Topic: I bonds vs. tax advantaged accounts
Replies: 16
Views: 1860

Re: I bonds vs. tax advantaged accounts

I bought some i-bonds before I completely filled tax-advantaged space because I wanted the diversification and I was also purchasing CD's at the time. I am looking at early retirement though and have several years before I can/want to tap into tira's and 401k's. The Roth is the one I wish I took ad...
by azanon
Thu Mar 25, 2021 2:55 am
Forum: Investing - Theory, News & General
Topic: I bonds vs. tax advantaged accounts
Replies: 16
Views: 1860

Re: I bonds vs. tax advantaged accounts

You guys are confirming what I already suspected. I really want to use them more, but other than for maybe an emergency fund, it's hard for me to justify it, because I'm personally eligible for 26K worth of 401(K) (including catchup), 6Kx2 for Roth IRAs (via backdoor Roth), and my wife's business m...
by azanon
Wed Mar 24, 2021 12:36 pm
Forum: Investing - Theory, News & General
Topic: I bonds vs. tax advantaged accounts
Replies: 16
Views: 1860

Re: I bonds vs. tax advantaged accounts

You guys are confirming what I already suspected. I really want to use them more, but other than for maybe an emergency fund, it's hard for me to justify it, because I'm personally eligible for 26K worth of 401(K) (including catchup), 6Kx2 for Roth IRAs (via backdoor Roth), and my wife's business ma...
by azanon
Wed Mar 24, 2021 10:54 am
Forum: Investing - Theory, News & General
Topic: I bonds vs. tax advantaged accounts
Replies: 16
Views: 1860

I bonds vs. tax advantaged accounts

Quick question: I really like the idea of buying I bonds, such as for retirement, but I take it, it's a really bad idea if I have tax-advantaged options still available, like Roth IRAs, Simple/SEPs, etc.? True, or is there some way I can justify it?

Thanks!
by azanon
Wed Mar 24, 2021 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution Question
Replies: 12
Views: 729

Re: Excess Roth IRA contribution Question

You didn’t answer this upthread, but if you don’t have any pretax IRAs (SEP, Rollover, etc), then in my opinion, it’s best to recharacterize the ineligible 2020 and 2021 contributions. Then just do the backdoor on those amounts (plus the earnings which the custodian will calculate and transfer to t...
by azanon
Wed Mar 24, 2021 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution Question
Replies: 12
Views: 729

Re: Excess Roth IRA contribution Question

The penalty on the earnings I presume WOULD be taxed per Roth rules, but that's going to be peanuts. I made ~ 15% in 2020 in that Roth IRA, so 15% earnings I wasn't allowed to get on that 6000 is $90 of earnings (6000 x .15), and a 10% penalty on that $90 of earnings is $9 dollars. Big deal. 6000 x...
by azanon
Tue Mar 23, 2021 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution Question
Replies: 12
Views: 729

Re: Excess Roth IRA contribution Question

If you made the excess contribution earlier in 2020, you might have some massive gains in your Roth since that time. If that is the case, you would be better off not to remove the excess with all those gains when the gains will be subject to tax and penalty. If that tax and penalty would exceed the...
by azanon
Tue Mar 23, 2021 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution Question
Replies: 12
Views: 729

Re: Excess Roth IRA contribution Question

If you made the excess contribution earlier in 2020, you might have some massive gains in your Roth since that time. If that is the case, you would be better off not to remove the excess with all those gains when the gains will be subject to tax and penalty. If that tax and penalty would exceed the...
by azanon
Mon Mar 22, 2021 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution Question
Replies: 12
Views: 729

Re: Excess Roth IRA contribution Question

Thanks so much guys - helped me a ton. I thought I had to do all of the math myself, but I see Vanguard will help me do all of this.
by azanon
Mon Mar 22, 2021 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution Question
Replies: 12
Views: 729

Excess Roth IRA contribution Question

So i discovered i wasn't eligible to contribute 6K in 2020 due to income limits. However, I'm not sure how to do the IRS formula below to correct this to determine exactly how much to remove, since I also made some 2K or so additional contributions, so far in 2021 as well. Is my "adjusted closi...
by azanon
Tue Mar 16, 2021 8:35 am
Forum: Investing - Theory, News & General
Topic: Investing at the very top in 2000 has still made one 7% a year over the past 21 years
Replies: 148
Views: 12329

Re: Investing at the very top in 2000 has still made one 7% a year over the past 21 years

That's definitely what I would expect comparing a peak from 21 years ago to definitely a peak now. If the market drops 50% over the next year, what's the return then over that 22 years - 3.5%? If that happened, what would your point evolve to - if you stay in stocks and tolerate that volatility for ...
by azanon
Tue Mar 16, 2021 7:48 am
Forum: Personal Consumer Issues
Topic: Car negotiation (vs Truecar/Costco) for factory car orders?
Replies: 16
Views: 2392

Re: Car negotiation (vs Truecar/Costco) for factory car orders?

My head spins at the thought of playing 10 dealers off of each other. I don't know how getting the absolutely lowest possible price for a car became such an important thing for people, especially those of reasonably high means. Heck, when i watch cnbc in the morning, I probably gain or lose more mo...
by azanon
Tue Mar 16, 2021 7:39 am
Forum: Personal Consumer Issues
Topic: Car negotiation (vs Truecar/Costco) for factory car orders?
Replies: 16
Views: 2392

Re: Car negotiation (vs Truecar/Costco) for factory car orders?

My head spins at the thought of playing 10 dealers off of each other. I don't know how getting the absolutely lowest possible price for a car became such an important thing for people, especially those of reasonably high means. Heck, when i watch cnbc in the morning, I probably gain or lose more mon...
by azanon
Tue Mar 16, 2021 7:12 am
Forum: Personal Finance (Not Investing)
Topic: How much income would justify paying $2500 for a finance planner?
Replies: 58
Views: 5741

Re: How much income would justify paying $2500 for a finance planner?

The hourly rate is $280 which seems on the high end, but at least I know I’m not wasting my time with someone incompetent. Price doesn’t guarantee quality. As Bernard says, “the Boglehead investment philosophy is so simple that a caveman can do it.” I think it's fairly common to confuse simple with...
by azanon
Mon Mar 15, 2021 7:29 pm
Forum: Personal Consumer Issues
Topic: Tesla for people that keep cars a long time
Replies: 147
Views: 11227

Re: Tesla for people that keep cars a long time

I think if all you care about is getting a good 10-12 years out of it for yourself with those low miles you drive, you'll be fine. Just don't have any high expectations for reselling it when you are finally done. I assume that isn't a major concern anyway for someone of boglehead-level appropriate m...
by azanon
Tue Mar 02, 2021 8:32 am
Forum: Investing - Theory, News & General
Topic: Debt is a Negative Bond - The White Coat Investor
Replies: 542
Views: 27340

Re: Debt is a Negative Bond - The White Coat Investor

"It does not make a lot of logical sense to invest in bonds paying 1-2% while carrying a 5% student loan, much less a 15% credit card. Paying off that credit card is probably the best investment available to you, and paying off that student loan certainly beats buying a bond fund, CD, or simila...
by azanon
Fri Feb 19, 2021 11:39 am
Forum: Personal Consumer Issues
Topic: New version of Microsoft Office won't require you to pay for a subscription
Replies: 71
Views: 6448

Re: New version of Microsoft Office won't require you to pay for a subscription

I'm still using Word and Excel 2010. I don't feel feature deprived. Have they added anything worthwhile? I mainly use Excel as a front-end for Python or for very simple stuff. I also use Google Docs, but some things I don't want in the cloud. Lack of features isn't the main reason to stop using uns...
by azanon
Fri Feb 19, 2021 11:23 am
Forum: Personal Consumer Issues
Topic: New version of Microsoft Office won't require you to pay for a subscription
Replies: 71
Views: 6448

Re: New version of Microsoft Office won't require you to pay for a subscription

I'm still using Word and Excel 2010. I don't feel feature deprived. Have they added anything worthwhile? I mainly use Excel as a front-end for Python or for very simple stuff. I also use Google Docs, but some things I don't want in the cloud. Lack of features isn't the main reason to stop using uns...
by azanon
Fri Feb 19, 2021 11:11 am
Forum: Personal Consumer Issues
Topic: New version of Microsoft Office won't require you to pay for a subscription
Replies: 71
Views: 6448

Re: New version of Microsoft Office won't require you to pay for a subscription

I'm running the standalone Office 2019 one from the home use program or whatever it's called - was $19 or $25 dollars or something low like that. I'm going to stick with it for a while since it'll have Mainstream support until October 10, 2023, and extended support until October 14, 2025, per Micros...
by azanon
Fri Feb 19, 2021 8:11 am
Forum: Personal Consumer Issues
Topic: Credit Score / Credit Cards - College Freshman
Replies: 16
Views: 950

Re: Credit Score / Credit Cards - College Freshman

My thought - not sure there's a one size fits all here. My particular kid happens to have some extreme frugal mindset that I think was mostly just nature. I'm fairly frugal myself, but he's on another level. So, I have no concern at all about letting him have his own credit card (on my account), and...
by azanon
Mon Feb 01, 2021 2:12 pm
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12840

Re: Does the 4% rule take tax, fees etc into account?

Provided that you're using very low cost index funds for the portfolio, I'd say yes, because fees that are sub 0.15% are fairly inconsequential. Remember it's the 4% rule, not the 4.0% rule, or 4.00% rule (anyone familiar with significant digits knows what I mean). And if you're using a retirement w...
by azanon
Fri Jan 29, 2021 10:00 am
Forum: Personal Consumer Issues
Topic: The Economist print and digital, $99 today
Replies: 23
Views: 2573

Re: The Economist print and digital, $99 today

The only reason I don't buy these sorts of things (Economist, Wall Street Journal, whatever), is because I have a hard time thinking of any portfolio strategy that would depend on what you read in these sorts of things. Now if I were in the finance industry, I might subscribe so that I'm up-to-speed...
by azanon
Tue Jan 26, 2021 3:00 pm
Forum: Investing - Theory, News & General
Topic: Inflation-Protected Portfolio ?
Replies: 58
Views: 4127

Re: Inflation-Protected Portfolio ?

If you're interested in this subject, I'd recommend W. Bernstein's book called "Deep Risk: how History Informs Portfolio Design" which I recall having a very good discussion on the risk of inflation to a portfolio, and what you can do about it.
by azanon
Fri Jan 22, 2021 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Is Amex Blue Cash preferred card still worth keeping?
Replies: 51
Views: 3370

Re: Is Amex Blue Cash preferred card still worth keeping?

It's one of my 3 cards I rotate: 1. Amex Blue Cash preferred for groceries/gas (I do get the max for groceries). 2. Amazon CC for amazon purchases (3% back cause I'm not prime and finally the best of all: 3. USAA Limitless cash for 2.5% cash back on everything. The only other thing I do with Credit ...
by azanon
Fri Jan 22, 2021 8:01 am
Forum: Personal Consumer Issues
Topic: Any multimillionaire's (more than 2mm) out there still mow their own lawn?
Replies: 341
Views: 25972

Re: Any multimillionaire's (more than 2mm) out there still mow their own lawn?

I think needing to mow your own lawn might mean you bought too much house. Think about renters for a moment, who are thought of as a rung down from homeowners. Even they don’t do the landscaping at their apartment. They also don’t fix parts of the apartment that break. So if you’re going to supposed...
by azanon
Fri Jan 15, 2021 3:06 pm
Forum: Investing - Theory, News & General
Topic: Can limit orders get worse prices than market orders?
Replies: 16
Views: 1105

Re: Can limit orders get worse prices than market orders?

No it cannot. A limit order is for all intents and purposes a market order at or below (or above, whichever is applicable) the limit price. But don’t let that fact make you think the limit order is by definition superior. The risk is your order might not execute at all if it never reaches the limit ...
by azanon
Thu Jan 14, 2021 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA contribution question re: income limits
Replies: 8
Views: 514

Re: Roth IRA contribution question re: income limits

Also, when I convert to a Roth, I take it I can have those monies go into the existing Roth accounts I already have, or will I be doomed to have/maintain a separate Roth IRA strictly for Roth conversions? No need for a separate Roth IRA just for conversions. One for both contributions and conversio...
by azanon
Wed Jan 13, 2021 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA contribution question re: income limits
Replies: 8
Views: 514

Re: Roth IRA contribution question re: income limits

As noted you could do the backdoor Roth now. Or you could wait until tax filing season next year (you can make the contribution for 2021 until April 15, 2022) to see if you really need to do the backdoor, if below the phaseout range then just do the regular Roth IRA contribution then. Hmm, ok so I ...
by azanon
Wed Jan 13, 2021 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA contribution question re: income limits
Replies: 8
Views: 514

Re: Roth IRA contribution question re: income limits

As noted you could do the backdoor Roth now. Or you could wait until tax filing season next year (you can make the contribution for 2021 until April 15, 2022) to see if you really need to do the backdoor, if below the phaseout range then just do the regular Roth IRA contribution then. Hmm, ok so I ...
by azanon
Wed Jan 13, 2021 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA contribution question re: income limits
Replies: 8
Views: 514

Re: Roth IRA contribution question re: income limits

The only pre-tax I/we have is my TSP (~ Federal version of a 401(k))
by azanon
Wed Jan 13, 2021 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA contribution question re: income limits
Replies: 8
Views: 514

Roth IRA contribution question re: income limits

I'm getting very close to hitting the income limits on being able to contribute to a Roth IRA, but unfortunately my (our) income is variable due to my wife's business. So my question is, should I just go ahead and make a regular Roth contribution and cross my fingers I don't hit the limit (and undo ...
by azanon
Sun Jan 03, 2021 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: USAJobs - Senior Executive Service Positions
Replies: 22
Views: 1558

Re: USAJobs - Senior Executive Service Positions

How does one qualify for Senior Executive Service positions within the Federal Government if applying from private sector? Is this even possible? Trying to make sense of this page: https://www.usajobs.gov/Help/working-in-government/unique-hiring-paths/senior-executive-service/ . For any given poste...
by azanon
Sun Jan 03, 2021 12:22 pm
Forum: Personal Consumer Issues
Topic: how to negotiate sale at Carmax?
Replies: 32
Views: 3056

Re: how to negotiate sale at Carmax?

I just went in yesterday! Built rapport with "buyer" - they offered $31k. KBB says private party is $34-36k. They said no mechanical inspection needed with 60k miles. Dealer offered $30k trade in which is a little better as if I do buy another car I am getting the tax reduction of ~5%*30k...
by azanon
Sun Dec 27, 2020 12:40 am
Forum: Personal Consumer Issues
Topic: Child will soon need a car. What would be the best approach?
Replies: 56
Views: 2985

Re: Child will soon need a car. What would be the best approach?

Got my 16yr old teen a new 2020 corolla about a year ago. Yeah like many say, they'll inevitably crash it. But for me, that's the reason I want a new one, not a used one. 2020 safety in cars (esp TSS 2.0) is way beyond a 2010. Fender benders can be fixed, but I can't get another son. Not trying to s...
by azanon
Fri Dec 25, 2020 7:41 pm
Forum: Investing - Theory, News & General
Topic: Looking to truly understand “ability, willingness and need to take risk“ concept
Replies: 55
Views: 3894

Re: Looking to truly understand “ability, willingness and need to take risk“ concept

When it comes to the "ability, willingness and need to take risk" concept, I wonder if investors are also considering the possibility of compounded negative rate of real returns in the bond market, or are they just assuming that bond returns will continue like they have done over the past...
by azanon
Wed Dec 23, 2020 2:41 pm
Forum: Personal Consumer Issues
Topic: Where do you store gold?
Replies: 118
Views: 8081

Re: Where do you store gold?

One of the easier things to do is to match handles with real people, provided there's PII anywhere on the net associated with that handle. If that's actually the case, then no one here should ever provide balances on anything or they could be exposed to all sorts of threats. Merely mentioning that ...
by azanon
Wed Dec 23, 2020 1:12 pm
Forum: Personal Consumer Issues
Topic: Where do you store gold?
Replies: 118
Views: 8081

Re: Where do you store gold?

I store my 1 million dollars worth of gold in my glass gun cabinet, where you will see it as soon as you open my front door. My address is 111 Pacific Ave, Chicago, Ill. Just kidding. Exactly. Hope no criminals are reading this thread. If they are, they found a gold mine - pun intended. One of the ...
by azanon
Fri Dec 11, 2020 10:34 am
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 13547

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

It's a mistake to compare an essentially risk free rate (e.g the bank will own the car until it's paid in full so they have collateral), with a risky rate such as the stock market. A comparable rate is probably more in the neighborhood of high-yield savings rates - so about 0.6%. In short, that's a...
by azanon
Wed Dec 09, 2020 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 13547

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

Don't get a luxury car until you can pay cash for it. Cash doesn’t max sense with a 2.5% loan. Would rather take out a loan and invest the cash. It's a mistake to compare an essentially risk free rate (e.g the bank will own the car until it's paid in full so they have collateral), with a risky rate...
by azanon
Tue Dec 08, 2020 11:52 pm
Forum: Personal Consumer Issues
Topic: That Frugal Thing You Do
Replies: 608
Views: 147062

Re: That Frugal Thing You Do

Not only do I drink box wine, but when it’s almost empty, i tear the box open so that I can squeeze that last glass worth of wine out of the bag. And a 7 digit investment account Boglehead FTW! I also find that if you fill it with 4 oz water after empty, shake it, you can get a pretty good extra gl...
by azanon
Tue Dec 08, 2020 10:54 pm
Forum: Personal Consumer Issues
Topic: That Frugal Thing You Do
Replies: 608
Views: 147062

Re: That Frugal Thing You Do

Not only do I drink box wine, but when it’s almost empty, i tear the box open so that I can squeeze that last glass worth of wine out of the bag. And a 7 digit investment account

Boglehead FTW!
by azanon
Tue Dec 08, 2020 10:35 pm
Forum: Investing - Theory, News & General
Topic: Can anyone reach Vanguard on the phone?
Replies: 173
Views: 14227

Re: Can anyone reach Vanguard on the phone?

Calling is pretty old school. They have an internal email system, and going on memory, I think they respond within 2 business days. It usually worked for me. Probably for someone that is old school, and wants that almost immediate response, Vanguard probably isn't the best brokerage for that.... Ev...
by azanon
Tue Dec 08, 2020 9:41 am
Forum: Investing - Theory, News & General
Topic: Can anyone reach Vanguard on the phone?
Replies: 173
Views: 14227

Re: Can anyone reach Vanguard on the phone?

Calling is pretty old school. They have an internal email system, and going on memory, I think they respond within 2 business days. It usually worked for me. Probably for someone that is old school, and wants that almost immediate response, Vanguard probably isn't the best brokerage for that.... Eve...
by azanon
Fri Dec 04, 2020 9:33 am
Forum: Personal Consumer Issues
Topic: What is a good source for car ratings? Looking for comparisions between Mazda CX5, Honda CRV, and Subaru Forester
Replies: 49
Views: 2948

Re: What is a good source for car ratings? Looking for comparisions between Mazda CX5, Honda CRV, and Subaru Forester

I can save you some time - the CX5 wins (in just about any recent competition between those 3). I'd go CX5 myself, and probably pony up on one with the new 2.5T in it (250hp!). Main sell points to me is its very luxurious inside (looks audi or bmwish almost), and Japanese made. If I HAD to pick som...
by azanon
Thu Dec 03, 2020 4:28 pm
Forum: Personal Consumer Issues
Topic: What is a good source for car ratings? Looking for comparisions between Mazda CX5, Honda CRV, and Subaru Forester
Replies: 49
Views: 2948

Re: What is a good source for car ratings? Looking for comparisions between Mazda CX5, Honda CRV, and Subaru Forester

If I HAD to pick something else, probably Subaru (highly regarded AWD and also Japanese made) or RAV4 (and make sure and get Japanese assembled, as some are not). As one that closely follows the RAV4 forums, the Japanese builds tend to have just as many if not more problems than the NA builds. Let'...
by azanon
Thu Dec 03, 2020 3:44 pm
Forum: Personal Consumer Issues
Topic: What is a good source for car ratings? Looking for comparisions between Mazda CX5, Honda CRV, and Subaru Forester
Replies: 49
Views: 2948

Re: What is a good source for car ratings? Looking for comparisions between Mazda CX5, Honda CRV, and Subaru Forester

I can save you some time - the CX5 wins (in just about any recent competition between those 3). I'd go CX5 myself, and probably pony up on one with the new 2.5T in it (250hp!). Main sell points to me is its very luxurious inside (looks audi or bmwish almost), and Japanese made. If I HAD to pick som...
by azanon
Wed Dec 02, 2020 9:40 am
Forum: Personal Consumer Issues
Topic: Career planning and federal government jobs
Replies: 67
Views: 4533

Re: Career planning and federal government jobs

My teenager and I were talking about what type of work environment might be a good fit for him when he grows up. He said he would be more interested in working in public sector than private sector. To me, it seems a job with the federal government provides good benefits, reasonable hours and stabil...
by azanon
Sat Nov 28, 2020 11:31 am
Forum: Personal Consumer Issues
Topic: Should I get a new ATT Cellular Plan?
Replies: 7
Views: 505

Should I get a new ATT Cellular Plan?

Does anyone happen to know much about the latest ATT cellular plans? We're on an older "AT&T Unlimited Plus Enhanced" plan (I assume the previous one, or 2 generations back) and I see AT&T now has these newer "AT&T Unlimited Starter, Extra, or Elite" plans. We have 3 ...