Search found 144 matches

by K8ya
Wed Jun 09, 2021 5:04 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin allocation
Replies: 10
Views: 742

Re: Bitcoin allocation

How can an asset rise from pennies to tens of thousands over a decade, and not have underlying value? It is clearly a digital asset.
by K8ya
Wed Jun 09, 2021 4:59 pm
Forum: Investing - Theory, News & General
Topic: Best time to add bonds right before retirement
Replies: 14
Views: 1960

Re: Best time to add bonds right before retirement

I'm also in accumulation phase with zero bonds. At some point, I'll also need to take that leap too. I think it is courageous / inspirational that you'll retire so young... hopefully in good health and need to fund 45 years of retirement... and with "only" $1.1 million to start with. On t...
by K8ya
Wed Jun 09, 2021 4:54 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin allocation
Replies: 10
Views: 742

Bitcoin allocation

Would you guys treat Bitcoin as a stock or cash equivalent?

I'm actually considering it to maybe be a whole nother group. Maybe a 5-10% allocation would be worthwhile based purely on performance.
by K8ya
Tue Jun 08, 2021 5:01 pm
Forum: Investing - Theory, News & General
Topic: Best time to add bonds right before retirement
Replies: 14
Views: 1960

Re: Best time to add bonds right before retirement

What kind of bonds are you planning to buy? 20 Year or a diversified fund. I haven't read up on bonds yet; i will closer to the decision date though Are you sure 1.1M is enough? You only have 33K/year to work with as you don't want to do 4% constant-dollar for 45 years. I plan to do variable percen...
by K8ya
Mon Jun 07, 2021 12:39 pm
Forum: Investing - Theory, News & General
Topic: Best time to add bonds right before retirement
Replies: 14
Views: 1960

Best time to add bonds right before retirement

I'm on track to retire at 46 so projecting 45 years of retirement. 100/0 stocks/bonds during accumulation is comfortable to me. I plan to retire with about 1.1m and take a 12% bond allocation representing about 3 years of expenses. In case of a downturn at retirement or shortly before/after, for the...
by K8ya
Wed Jun 02, 2021 4:10 am
Forum: Personal Finance (Not Investing)
Topic: Resources for setting up a Mega Backdoor Roth
Replies: 3
Views: 429

Re: Resources for setting up a Mega Backdoor Roth

Well, I bought it at a first year cost of $500 from solo401k.com. So now I get to learn how to be a plan administrator. I'm probing them for resources on how to manage this 401k correctly. If anyone else knows of a good guide, please share!
by K8ya
Tue Jun 01, 2021 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Resources for setting up a Mega Backdoor Roth
Replies: 3
Views: 429

Resources for setting up a Mega Backdoor Roth

Per my other discussion (https://www.bogleheads.org/forum/viewtopic.php?f=2&t=350219&p=6040698#p6040698) I am looking into options for setting up a mega-backdoor compatible solo 401k for my LLC. I thought Etrade was good enough. If it is not, perhaps there is no commercially available plan. ...
by K8ya
Tue Jun 01, 2021 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Mega back door / Etrade question
Replies: 4
Views: 319

Re: Mega back door / Etrade question

Your ordinary traditional or Roth contributions (the $19.5k each year) cannot be rolled out of the plan at all while still at that employer unless you are at least 59.5 (and only if the plan allows it). There is an exception for hardship. This is definitely a concern. I will have to ask a tax profe...
by K8ya
Tue Jun 01, 2021 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Mega back door / Etrade question
Replies: 4
Views: 319

Mega back door / Etrade question

I am opening a Solo 401k, both Roth and Traditional at Etrade. I see it allows in service transfers: https://i.imgur.com/SzHJJRE.png 1. With these options enabled, I believe I can roll an unlimited balance from my Roth 401k into my Roth IRA at any time, effectively greatly increasing the contributio...
by K8ya
Sat May 29, 2021 1:09 pm
Forum: Investing - Theory, News & General
Topic: FZILX seems like an excellent deal in taxable
Replies: 13
Views: 2406

Re: FZILX seems like an excellent deal in taxable

Don't underestimate the benefits of portability. At the $1M level you referenced, you can easily get annual brokerage transfer bonuses in the $2500+ range. There are obvious switching costs that aren't monetarily counted, but there are also benefits to trying various brokerages. Can this be done in...
by K8ya
Sat May 29, 2021 2:10 am
Forum: Investing - Theory, News & General
Topic: FZILX seems like an excellent deal in taxable
Replies: 13
Views: 2406

FZILX seems like an excellent deal in taxable

https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/31635T609 0 ER and 0 cap gains distributions unless I'm misreading. There is no cap gains distribution table above where there is on the FZROX page. Someone will mention that you're banking on the trend continuing. Well yes, the future i...
by K8ya
Fri May 28, 2021 8:39 am
Forum: Personal Investments
Topic: Have $2,000,000 in actively managed taxable accout. Should i fire my fee only advisor and go VTSAX?
Replies: 41
Views: 7077

Re: Have $2,000,000 in actively managed taxable accout. Should i fire my fee only advisor and go VTSAX?

Looks like both fund managers have been doing their jobs, those are some fair returns. If you think they can keep it up stay put, otherwise look into index funds.
by K8ya
Fri May 28, 2021 8:29 am
Forum: Investing - Theory, News & General
Topic: Bear market and how to handle the bond allocation
Replies: 6
Views: 991

Re: Bear market and how to handle the bond allocation

It's kind of like being a working girl, once you enter the profession you can never really leave. i may spend my time learning new things and building apps that no one buys. But I'll never just lose the skill :happy
by K8ya
Fri May 28, 2021 7:59 am
Forum: Investing - Theory, News & General
Topic: Bear market and how to handle the bond allocation
Replies: 6
Views: 991

Bear market and how to handle the bond allocation

I plan to retire at 46 which means my stock allocation should remain high. I'm ok taking more risk because I can just become a programmer again if needed. Every 4% into bonds is another year of bear market reserve. I think 12% is sufficient; I know others will consider that low. Do you guys spring y...
by K8ya
Fri May 28, 2021 5:28 am
Forum: Investing - Theory, News & General
Topic: Help calculating the cost of a mutual fund in a taxable account
Replies: 5
Views: 510

Re: Help calculating the cost of a mutual fund in a taxable account

They are almost the same then. So I think FZROX is the lower cost fund at least in 2019, is that correct?
by K8ya
Fri May 28, 2021 4:15 am
Forum: Investing - Theory, News & General
Topic: Help calculating the cost of a mutual fund in a taxable account
Replies: 5
Views: 510

Re: Help calculating the cost of a mutual fund in a taxable account

Ok, I googled and qualified dividends are taxed as cap. gains. How do I find the percent dividends that are qualified?
by K8ya
Fri May 28, 2021 2:14 am
Forum: Investing - Theory, News & General
Topic: Help calculating the cost of a mutual fund in a taxable account
Replies: 5
Views: 510

Help calculating the cost of a mutual fund in a taxable account

I would like to verify for myself whether the cost of a mutual fund like FZROX do indeed outweigh the expense ratio of an ETF like SCHB (0.03%) in taxable accounts. Let's assume $1 million invested in the fund: I see the following: for FZROX: Dividend History 12/04/20 $0.171 $13.21 12/13/19 $0.164 $...
by K8ya
Fri May 28, 2021 1:54 am
Forum: Investing - Theory, News & General
Topic: Early withdrawals to avoid withdrawing during bear markets?
Replies: 22
Views: 2431

Re: Early withdrawals to avoid withdrawing during bear markets?

It sounds like some are saying bonds could be used as a cash equivalent. And rebalancing in this scenario implies selling off stock to purchase bonds. Could a 100% stock investor come out ahead by reallocating 0.5% of the account into bonds for every year post crash, with a cap of 4%? Then when the ...
by K8ya
Wed May 26, 2021 2:47 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Zero Funds in Taxable
Replies: 5
Views: 1062

Fidelity Zero Funds in Taxable

Is this going to cost a lot more than a 0.03% to 0.06% ER fund in a taxable account? I'm not good with the math on tax inefficient funds which I hear the Zeros are.
by K8ya
Wed May 26, 2021 8:36 am
Forum: Investing - Theory, News & General
Topic: Schwab international mutual fund?
Replies: 7
Views: 656

Schwab international mutual fund?

I find Schwab's fund selector hard to use. My target equity allocation is 75% US 25% international, but I can not seem to find an international mutual fund at Schwab. do they have one? International developed is also good.
by K8ya
Wed May 26, 2021 6:38 am
Forum: Investing - Theory, News & General
Topic: Early withdrawals to avoid withdrawing during bear markets?
Replies: 22
Views: 2431

Early withdrawals to avoid withdrawing during bear markets?

if one aims to withdraw 40k/year, does it make sense to withdraw an extra 4k/year for every non-bear market year (positive return) so that one can skip withdrawing during a downturn? This way if the bear market occurs at year 11, one has 40k extra to pull from. If the bear market occurs at year 6, 2...
by K8ya
Sat May 22, 2021 5:25 pm
Forum: Investing - Theory, News & General
Topic: NASDAQ instead of SP500?
Replies: 96
Views: 11137

NASDAQ instead of SP500?

Anyone think this is a better play going forward? Tech has been the real driver of the economy since 2000 onwards.
by K8ya
Fri May 21, 2021 3:52 pm
Forum: Non-US Investing
Topic: FEIE excluded income, tax minimization
Replies: 3
Views: 1437

Re: FEIE excluded income, tax minimization

There's nothing left over after the exclusion. In this case is my plan optimal?
by K8ya
Fri May 21, 2021 9:40 am
Forum: Non-US Investing
Topic: FEIE excluded income, tax minimization
Replies: 3
Views: 1437

FEIE excluded income, tax minimization

IRAs can not accept FEIE excluded income as contributions. 401ks treat withdrawals as earnings for tax calcs, but they can not be excluded by the FEIE. Therefore I think my best option as an FEIE eligible US citizen expat, is to simply invest in a brokerage account. The FEIE will exclude all of my i...
by K8ya
Fri May 21, 2021 2:25 am
Forum: Investing - Theory, News & General
Topic: How fast have the cap gains tax brakets moved over time?
Replies: 9
Views: 1342

Re: How fast have the cap gains tax brakets moved over time?

Walkure wrote: Thu May 20, 2021 2:01 pm Careful, there are no capital gains in a 401k, it is all treated as (deferred) earned income. Harvesting gains is only for taxable accounts.
Wow, how bizarre. i'm glad you mentioned this! Earned income is excludable under the FEIE which means this greatly helps me avoid taxes, since I'm an expat
by K8ya
Thu May 20, 2021 11:41 am
Forum: Investing - Theory, News & General
Topic: How fast have the cap gains tax brakets moved over time?
Replies: 9
Views: 1342

How fast have the cap gains tax brakets moved over time?

Nowadays you pay 0% up to 40k. I will retire in about 10 years and expect to make 50k per year, a hefty sum in Thailand (I'm a US expat). If the cap gains tax brackets have regularly moved up i may totally be covered by the 0% bracket in 10 years. With would mean a Traditional Solo 401k favors me ov...
by K8ya
Thu May 20, 2021 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Techniques to keep one's account balance out of mind?
Replies: 53
Views: 4725

Re: Techniques to keep one's account balance out of mind?

Rebalancing every several years is fine. Check your portfolio at least once a year. How's about quarterly, but don't make any transactions? It sounds as though you're trying to thwart behavioral problems and I commend you for recognizing them. It's moreso trying to preserve peace of mind! In my pri...
by K8ya
Thu May 20, 2021 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Techniques to keep one's account balance out of mind?
Replies: 53
Views: 4725

Re: Techniques to keep one's account balance out of mind?

Has anyone gone the extra step of having someone handle rebalancing on your behalf? Ideally I don't even look at my balance on a yearly basis. Hard to feel the sting of a 40% drawdown when you haven't seen your account in years!
by K8ya
Wed May 19, 2021 5:52 am
Forum: Personal Finance (Not Investing)
Topic: Techniques to keep one's account balance out of mind?
Replies: 53
Views: 4725

Techniques to keep one's account balance out of mind?

Have you guys used any techniques to block out your knowledge of your account balance? I used to do that as a poker player and it really helps during drawdown phases as you never get married to a high number. Any tips are welcome; I'm with Schwab and invest in their mutual funds. I have a Solo Roth ...
by K8ya
Mon May 17, 2021 12:51 am
Forum: Investing - Theory, News & General
Topic: Marginal improvement in drawdown for every 5% in bond allocation
Replies: 6
Views: 1057

Re: Marginal improvement in drawdown for every 5% in bond allocation

dbr wrote: Sun May 16, 2021 11:37 am It also makes sense to me that the maximum stock allocation be no more than 75%, but each investor has to decide that for themselves.
Can you justify this one in your personal context? I take it you simply have no use for the extra returns at your stage?
by K8ya
Sat May 15, 2021 11:45 am
Forum: Investing - Theory, News & General
Topic: Marginal improvement in drawdown for every 5% in bond allocation
Replies: 6
Views: 1057

Marginal improvement in drawdown for every 5% in bond allocation

I've heard that a small amount of bonds goes a long way to help reduce drawdown during bear markets, on stock heavy portfolios. Have any blogs run the numbers on what recent drawdowns would have looked like at their lows for a 100/0 portfolio, vs 95/5, 90/10, 85/15, 80/20 ?
by K8ya
Sat May 15, 2021 6:24 am
Forum: Investing - Theory, News & General
Topic: Maintaining high stock allocation + VPW
Replies: 2
Views: 489

Maintaining high stock allocation + VPW

Recently I have soured on target date funds: https://www.mymoneyblog.com/wordpress/wp-content/uploads/2016/08/schwabglide.gif A bond allocation higher than 50% will surely lower the SWR a significant amount. Probably part of the concern of a 4% SWR. Rather, I am starting to think it would be better ...
by K8ya
Fri May 14, 2021 1:57 am
Forum: Non-US Investing
Topic: FEIE excluded income: Able to invest in Roth Solo 401k?
Replies: 0
Views: 984

FEIE excluded income: Able to invest in Roth Solo 401k?

Hi, does anyone know if a US expat claiming the FEIE may contribute excluded income into a Soio Roth 401k? It seems this matter is unresolved online. I wonder what that means if it is challenged.
by K8ya
Thu May 13, 2021 12:27 am
Forum: Non-US Investing
Topic: Solo 401k: Roth vs Traditional
Replies: 1
Views: 570

Solo 401k: Roth vs Traditional

I make 110k post tax now, thanks mainly to the FEIE (Overseas US citizen expat). My income may rise a bit over the next few years as well. I plan to retire in 10-12 years and withdraw 30k to 50k per year, more likely at the lower end. I am self employed under an LLC treated as an S corp. I think my ...
by K8ya
Mon May 10, 2021 9:57 am
Forum: Personal Finance (Not Investing)
Topic: High savings rate, low tax burden. How to minize taxes during early retirement?
Replies: 1
Views: 296

High savings rate, low tax burden. How to minize taxes during early retirement?

I make 110k which is almost a match for the 108.7 Foreign Earned Income Exclusion (i'm a US citizen expat) which I qualify for. I also finally crossed the milestone of a zero net worth, previously from negative. I expect to save 70k to 80k this year. These are all post tax dollars. I also plan to re...
by K8ya
Sun May 09, 2021 3:36 am
Forum: Personal Finance (Not Investing)
Topic: Do the top 1% earn most of their income through investments?
Replies: 18
Views: 2378

Do the top 1% earn most of their income through investments?

I've heard this but would think the lower top 1%, eg married doctors and other professionals, are still earning salary mostly. What do you guys think?
by K8ya
Tue Apr 06, 2021 11:13 am
Forum: Investing - Theory, News & General
Topic: How to make a decision on real estate investing vs stock/bond portfolio?
Replies: 2
Views: 435

Re: How to make a decision on real estate investing vs stock/bond portfolio?

Regarding the management consideration, I want to bring up property management. They can be -- not great. But from what I've read and been told by passive landlords, you just need to ask around and go through a couple to find a decent one. Then REI becomes pretty passive too. There's management of t...
by K8ya
Tue Apr 06, 2021 6:00 am
Forum: Investing - Theory, News & General
Topic: How to make a decision on real estate investing vs stock/bond portfolio?
Replies: 2
Views: 435

How to make a decision on real estate investing vs stock/bond portfolio?

The financial portfolio is the default. When I look at RE investing in comparison my thoughts go to: * Do I have the time and energy to manage tenants? * If not, can I be confident in finding a good PM company? * Is now even a right time to buy property? * Is out of state investing viable? Overall I...
by K8ya
Thu Mar 04, 2021 9:34 am
Forum: Investing - Theory, News & General
Topic: Thoughts on 5% SWR
Replies: 205
Views: 13910

Re: Thoughts on 5% SWR

Guys, am I the only one that just sees: Image (no hyperlink or embed). I want to see this chart or graph you all are discussing!
by K8ya
Tue Mar 02, 2021 10:00 am
Forum: Investing - Theory, News & General
Topic: Thoughts on 5% SWR
Replies: 205
Views: 13910

Re: Thoughts on 5% SWR

Great discussion guys. My takeaways have been: 1. 5% SWR has a risk of failure. Even 4% has a risk of failure. 2. The best angle to hit this with therefore, is to raise risk tolerance by structuring retirement expenses for uncertainty. I think this boils down to low monthly bills and high(er) discre...
by K8ya
Sun Feb 28, 2021 10:40 am
Forum: Investing - Theory, News & General
Topic: Thoughts on 5% SWR
Replies: 205
Views: 13910

Thoughts on 5% SWR

I've been reading on this and opinions are divided. Some say even the 4% SWR is a risk. Others write that 2.3% for inflation, 4% SWR, requires only a 6.3% return, a fair amount below what a mixed fund portfolio should return. Where do you guys stand and why? If 5% SWR is too risky, do you still feel...
by K8ya
Sun Feb 21, 2021 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity vs Schwab for auto-investment
Replies: 0
Views: 212

Fidelity vs Schwab for auto-investment

Ideally I have this setup: 1. The brokerage account is able to receive a direct deposit from my employer's payroll company (We use Gusto which is "web savvy"). 2. At the end of each week, any non-invested funds are put into a 2060 target retirement fund I have accounts at both of these bro...
by K8ya
Sat Feb 20, 2021 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans or delay in case of a cancellation
Replies: 4
Views: 680

Pay off student loans or delay in case of a cancellation

My loans are on a rate of 6%. I have 23k usd worth. I'm thinking of putting my money in the markets and paying the minimum payment on the loans. - Say there is a 25% chance that the debt is cancelled and I have 15k at that point. That's an expected value of a little under 4k. - The market (80/20 sto...
by K8ya
Tue Feb 16, 2021 3:38 pm
Forum: Personal Investments
Topic: Anyone open an HSA at Schwab?
Replies: 12
Views: 1293

Re: Anyone open an HSA at Schwab?

anon_investor wrote: Tue Feb 16, 2021 12:09 am Just get a Fidelity HSA, it is BH approved!
This is currently the option I will probably do. but it would be nice to log into one place instead of several. Anyone know if the Schwab HSBA is a decent HSA-like entity?
by K8ya
Mon Feb 15, 2021 7:03 am
Forum: Personal Investments
Topic: Anyone open an HSA at Schwab?
Replies: 12
Views: 1293

Anyone open an HSA at Schwab?

Maybe I'm not understanding the mechanics of opening one because the closest thing I found, HSBA, sounds like ti resides "inside" an HSA. I am unclear on the meaning of that: https://www.schwab.com/hsba I don't have an HSA. Anyone know the most direct way to start one at Schwab, where I ha...
by K8ya
Mon Feb 15, 2021 7:00 am
Forum: Investing - Theory, News & General
Topic: Thoughts on investing in non-taxable accounts
Replies: 36
Views: 3385

Re: Thoughts on investing in non-taxable accounts

It still doubles as a 401k like option even if you don’t use it for medical expenses But if I plan to retire early there is no way to roth ladder out of it. Now that I think about it, it's probably still better than a taxable account. I remember reading the 10% early withdrawal beats the taxable ac...
by K8ya
Sun Feb 14, 2021 8:02 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on investing in non-taxable accounts
Replies: 36
Views: 3385

Re: Thoughts on investing in non-taxable accounts

Why is an HSA of no use to you? Do you plan on being killed outright with no medical spending for the rest of your life? I will say, finding the mega backdoor Roth (and that we had it available) was a nice surprise. We started out with a taxable goal of 10x, before we had ever heard of 25x/ the 4% ...
by K8ya
Sun Feb 14, 2021 7:08 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on investing in non-taxable accounts
Replies: 36
Views: 3385

Thoughts on investing in non-taxable accounts

An HSA isn't much use for me. That leaves 6,000 and 19,500 for the roth ira and 401k. I could conceivably invest $36,000 per year and am still early career too. I guess I have no choice but to put the extra funds into non-taxable accounts. That or spend it on things I find mid to low value. Somethin...
by K8ya
Sun Feb 14, 2021 7:04 pm
Forum: Non-US Investing
Topic: HSA qualifying deductions outside USA
Replies: 2
Views: 441

Re: HSA qualifying deductions outside USA

I'm certain the plan is HSA eligible, so we're good on that side at least. I'm starting to think an HSA won't benefit me much if I pay for most med expenses overseas, I can't withdraw contributions that total my insurance premiums, and I plan to retire early. I don't see the value. I guess more mone...
by K8ya
Sat Feb 13, 2021 3:42 pm
Forum: Non-US Investing
Topic: HSA qualifying deductions outside USA
Replies: 2
Views: 441

HSA qualifying deductions outside USA

I'm outside America a lot, domiciled in Florida. I spend about $400/year on health/dental/vision out of pocket, outside the US. I have a health/vision/dental plan in the US which costs $32/month and is HSA eligible. I take it the $400 or so per year spent on the plan, allows me to deduct $400 per ye...