Search found 427 matches

by BillyG
Wed May 24, 2023 1:11 pm
Forum: Personal Investments
Topic: Does Inherited IRA Prevent Back-Door Roth?
Replies: 3
Views: 576

Re: Does Inherited IRA Prevent Back-Door Roth?

My understanding...If the inherited IRA is transferred intp your name (which can only happen with a spouse's IRA), it will interfere with the backdoor process. If the inherited IRA is in the deceased's name but for your benefit, it does not interfere with the backdoor process. Actually, an inherited IRA (from a non-spouse) is in your name, but references the deceased. However, an "inherited IRA" is NOT a "t-IRA" as that term is generally used, and is not considered with regard to Roth conversions (or back door contributions via t-IRA to Roth). For example, you must take RMD's from an inherited IRA regardless of your age. And you cannot contribute to an inherited IRA or convert inherited IRA funds to Roth. So t-IRA's and...
by BillyG
Wed May 24, 2023 12:09 pm
Forum: Personal Investments
Topic: Does Inherited IRA Prevent Back-Door Roth?
Replies: 3
Views: 576

Does Inherited IRA Prevent Back-Door Roth?

I have a quick question - every year I contribute to a Roth using a back-door Roth conversion.

I recently inherited an IRA, and I know some of the rules surrounding Inherited IRAs are different from the rules for Traditional IRAs, particularly with respect to required distribution over ten years.

Question -- will an Inherited IRA prevent me from doing a back-door Roth conversion, or are the rules different for Inherited IRAs? To be clear the Roth conversion would be with new money invested in a Traditional IRA for one or two days before the conversion to Roth, not the Inherited IRA money.

Thanks,
BillyG
by BillyG
Thu Aug 19, 2021 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: I-Bond Succession/Inheritance Questions
Replies: 10
Views: 1375

Re: I-Bond Succession/Inheritance Questions

friar1610 wrote: Thu Aug 19, 2021 1:58 pm One thing that may not be obvious and I will just point it out for info. When the new owners of the bonds finally redeem them, they will not automatically receive a 1099-INT reporting accrued interest for income tax purposes like you do, say, from a bank where you have CDs. The owner has to go into his/her TD account and “pull” the accrued interest information. In other words, the ball is in the owner’s court to obtain the interest/tax info, not in TD’s to provide it.
Good to know - thanks!
by BillyG
Thu Aug 19, 2021 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: I-Bond Succession/Inheritance Questions
Replies: 10
Views: 1375

Re: I-Bond Succession/Inheritance Questions

Bonds issued in a child's name who is under 24 at the time of purchase do not qualify for the tax-free educational benefit. To qualify, the child must be a dependent and can be listed as a beneficiary, but not an owner or co-owner. So the parent's bonds would qualify, but not the child's, unless he/she was at least 24 when the bonds are issued. IANAL, but I'm not sure which date the IRS would use to determine eligibility (the date of the original issue or the date of re-issue). Since the original issue date will be on these re-issued bonds, I would think it would be the original issue date that would be used in determining the age of the child at the time of initial purchase for qualifying purposes. Thanks, Mel. In this case the I-Bonds ar...
by BillyG
Thu Aug 19, 2021 10:23 am
Forum: Personal Finance (Not Investing)
Topic: I-Bond Succession/Inheritance Questions
Replies: 10
Views: 1375

Re: I-Bond Succession/Inheritance Questions

epoche, Thanks so much for your answers and links. I truly appreciate it. The Treasury Direct phone lines worked better today, and their answers are provided below, for anyone who finds this thread while doing research on this topic: (1) Is the fixed portion of the interest going to be the same, based on the original date of issue of October 2001, or will the bonds be “reissued” at today’s rates, where the fixed portion will be much lower? Answer: The fixed rate portion of the I-Bonds is 3%, and that a variable rate applies on top of that. The rates change every six months. (2) Is the tax (on on the gain between October 2001 and today) payable when the bonds are reissued, or is all of it deferred until October 2031 when the I-bond terms exp...
by BillyG
Thu Aug 19, 2021 8:48 am
Forum: Personal Finance (Not Investing)
Topic: I-Bond Succession/Inheritance Questions
Replies: 10
Views: 1375

I-Bond Succession/Inheritance Questions

We have a situation in which I-bonds are part of an estate, and it is very confusing to determine how they should be handled. I would be grateful if someone who has dealt with this can give some insight into tax-efficient treatment of this inheritance. The I-bonds were purchased by my parent who passed away, and they had gains of 150% during his lifetime. The children are the beneficiaries of the estate and our basic choices are: (1) to have the estate cash the bonds and distribute the after-tax portions to each child, or (2) to have the bonds reissued to each of the children. If they are reissued each child would receive I-bonds that would grow until the terms expire in about 10 years. The interest rates are composed of two portions; one f...
by BillyG
Fri Apr 12, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: 2019 BOGLEHEADS CONFERENCE REGISTRATION IS CLOSED. WAIT LIST IS AVAILABLE.
Replies: 121
Views: 33164

Re: 2019 BOGLEHEADS CONFERENCE REGISTRATION OPEN ANNOUNCEMENT

SGM wrote: Thu Apr 11, 2019 5:06 pm Clemson football coach Dabo Swinney quote reminds me of the inner glow of Jack Bogle... Let the light that shines in you be brighter than the light that shines on you.
That's right on target! I am registered and hope to see you this year, Sam.

Cheers,
Billy
by BillyG
Wed Jan 16, 2019 4:39 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 82117

Re: John Bogle, who founded Vanguard and revolutionized retirement savings, dies at 89

This is very sad -- he was a unique, wise, and incredibly decent human being. I owe a lot to him. May his family gain comfort in their family memories of him, his accomplishments, and his good humor.
by BillyG
Thu Dec 06, 2018 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Here's an interesting question: Part of divorce asset valuation involves apples and oranges -- savings accounts, homes, IRAs, ROTH IRA's, real estate etc with different basis calculations and different tax treatment. For assets that are divided in half, it doesn't matter because each party gets half-apples and half-oranges. In trying to convert all of these different asset types into after-tax assets (assets on which no taxes are due such as a regular savings account) that are "apples" for comparison, how would you convert a 401(k) into an after-tax "apple" for comparison to other assets? For example, if I offer an extra $100K from a 401(k) as part of an up-front payment, my wife's lawyer would say it is worth only $70K...
by BillyG
Thu Dec 06, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Billy, I am sorry for your breakup. #cruncher helped Ed concerning the math associated with a reverse mortgage when he was in Manhattan. David Grabiner knows a lot about Maryland taxes. How about giving your wife a life estate in your house or another house and putting the deed in your child's name. Give the wife a smaller lump sum and some alimony. Have your estate or a trust responsible for continuing the payments if you pre-decease her. Putting the deed in a child's name might help the both of you who might be interested in leaving a legacy. As an aside with nothing to do with your relationship or you. My "brain trust" of old fogies at breakfast meetings always make me laugh or teach me something. A business consultant Brian s...
by BillyG
Wed Dec 05, 2018 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

I tried for years to get her to attend a Bogleheads event. How nice it would be if she understood low transaction costs and preserving capital -- perhaps we could have done an index finger handshake and worked it out quickly! Billy, At this time, it's probably better that your wife is unfamiliar with the Bogleheads principles. If she were, she would have more ways to hurt you. When people are angry, they sometimes hurt others even if it hurts them too. (In Behavioral Economics, there is the Ultimatum game, which has a different premise from a divorce but a similar dynamic: desire to punish the other even if it hurts you.) Victoria Here's an interesting question: Part of divorce asset valuation involves apples and oranges -- savings account...
by BillyG
Wed Dec 05, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

J G Bankerton wrote: Wed Dec 05, 2018 3:43 pm "Heav'n has no rage like love to hatred turn'd / Nor Hell a fury, like a woman scorn'd."
Even a woman self-scorn'd - it was her decision to move out and do this...

You are correct, of course, at least in my case.

Billy
by BillyG
Wed Dec 05, 2018 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

I tried for years to get her to attend a Bogleheads event. How nice it would be if she understood low transaction costs and preserving capital -- perhaps we could have done an index finger handshake and worked it out quickly! Billy, At this time, it's probably better that your wife is unfamiliar with the Bogleheads principles. If she were, she would have more ways to hurt you. When people are angry, they sometimes hurt others even if it hurts them too. (In Behavioral Economics, there is the Ultimatum game, which has a different premise from a divorce but a similar dynamic: desire to punish the other even if it hurts you.) Victoria You've summed it up pretty well. These things that don't make sense to me are the result of anger. Billy
by BillyG
Wed Dec 05, 2018 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Billy, I have thought of a couple strategic considerations that may or may not be useful: 1. You wrote that "opposing counsel is a tax lawyer." You may be able to use this to your advantage if your lawyer is a divorce lawyer. If your wife's lawyer is satisfied with the numbers, you may be able to get some intangibles. 2. There are findings in psychology that people feel better when they receive good things in installments than if they get a greater amount at once. And people feel worse when they have many small losses than when they experience one large loss, even if the large loss is greater than the sum of small ones. In other words, people are more sensitive to the quantity of instances than to the amounts. If you pay a large ...
by BillyG
Tue Dec 04, 2018 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Billy, You're obviously intelligent and know what you have in store. I would recommend "The 10 stupidest mistakes men make when facing divorce" Joseph Cordell. Quick read and lays out solid tactics on the business transaction of divorce. The other part is that while she has a high dollar attorney and he has slick software to crunch numbers there is no getting around greed in people. If you can put a number in front of her that she settles for and add in the amount that will be wasted going to an attorney rather than her it may be worth it. The old "you can get the money or you're attorney can get the money. But not both of you. Choose." Bronko Bronko, You are exactly right. She really is too... shall I say "uninfor...
by BillyG
Tue Dec 04, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

One more question: Do you have an Attorney? It doesn't matter what her attorney knows or doesn't know. Yes, I have an attorney. And I am attorney myself (and MBA and engineer). I am not seeking legal advice... I am asking finance questions about alternative funding sources. Being Bogleheads we already understand a lot more about the pre-tax, after-tax, etc. issues in my different accounts than my divorce lawyer who has been practicing over 40 years. I don't understand why you say it doesn't matter what her attorney does and does not know. Can you explain? Thanks, Billy [/quote] It will all end of the same. Numbers get put into a computer, turn the crank and out comes the settlement. The only problem is that your ex thinks she deserves more...
by BillyG
Tue Dec 04, 2018 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

[/quote]
One more question: Do you have an Attorney? It doesn't matter what her attorney knows or doesn't know.
[/quote]

Yes, I have an attorney. And I am attorney myself (and MBA and engineer). I am not seeking legal advice... I am asking finance questions about alternative funding sources. Being Bogleheads we already understand a lot more about the pre-tax, after-tax, etc. issues in my different accounts than my divorce lawyer who has been practicing over 40 years.

I don't understand why you say it doesn't matter what her attorney does and does not know. Can you explain?

Thanks,
Billy
by BillyG
Tue Dec 04, 2018 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

money_bunny wrote: Tue Dec 04, 2018 12:49 pm
Bronko wrote: Tue Dec 04, 2018 12:04 pm +1 on the point of getting numbers in front of her. The lump sum may blind her to the payout benefits over time. Having been there, it's better to not have the monthly reminder of seeing cash go out to the person who left you.

Bronko
To the OP: I am sorry you are going through this.

Bronko: That is why I would do it also. Get it done and move on. I'd have to work really hard and probably need therapy to not be "That angry divorced guy." My issues with money would make that monthly check rage inducing.
Funny, her therapy is paying her expensive divorce lawyer with my money!
by BillyG
Tue Dec 04, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Bronko wrote: Tue Dec 04, 2018 12:04 pm +1 on the point of getting numbers in front of her. The lump sum may blind her to the payout benefits over time. Having been there, it's better to not have the monthly reminder of seeing cash go out to the person who left you.

This is one of the hardest things in life to deal with. Upside is time will pass and it will get better.

Drive on Billy!

Bronko
Her divorce lawyer also happens to be a tax lawyer. I can go head to head with him but he won't be blinded at all by the differences in lump sums and payments over time. He deals with it every day and has software than runs the numbers assuming tax rates, discount rates, etc.
Billy
by BillyG
Tue Dec 04, 2018 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

OP cut your losses and don't let the lawyers drag it out and get her married. The "donation" stops the day she remarries. Kept women law or something. Simple but correct. We all have stories... The bottom line is that in the end, marriage is a contract and there are laws to deal with it. Is it fair? Somebody always thinks they got cheated. My advice to BillyG. Your goal is to get the ex to sign on the dotted line. You're absolutely correct and it has been my goal from the day after she moved out. But she is the plaintiff and the plaintiff controls all of this and can drag it out through trial as long as they wish. It took more than a year of legal wrangling for me to receive my first settlement proposal from her. She is not a Bog...
by BillyG
Mon Dec 03, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Hi WhyNotUs. Thanks for your comments -- see my responses it italics after yours below. I appreciate you sharing your thoughts and experience. Thanks, Billy Not saying what I did was the best financially but it worked out well for my ex and I. Hi there, Question 1 -- IRA and ROTH IRA There is a ROTH IRA in my name and a Traditional IRA in my wife's name. Let's say my ROTH is worth about $120K and my spouse's traditional IRA is worth about $90K. I funded both of them but that doesn't matter here. Much of the new traditional IRA investments were with after-tax money because we did not qualify for the deductible contributions. The standard approach is to divide each of these IRAs in half with a QDRO. The problem for me is that I would no longe...
by BillyG
Mon Dec 03, 2018 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Q1: I would not bring this into the divorce discussion with a lawyer simply because it gives an opening for the opposing party to 'get something' - split it in the middle and deal with the consequences later or use both halfs to pay off the lump sum (see below) Q2: I would try the buy out with after tax money. The pre tax money is retirement money, in retirement you would pay only, what, 15 % of it to access during retirement (if true), to you right now its only worth 0.7 * - so using it to pay off the divorce is an extra penalty - I think. q3: more psychology than math, you might be able to negotiate a better lump sum deal since your opposing party might be blinded by the total amount vs the yearly payouts (similar to a lottery winner, bu...
by BillyG
Mon Dec 03, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

In addition to the three questions above, I have a fourth question:

Question 4:
What are the issues and tradeoffs to consider in paying a lump sum settlement using a QDRO from an after-tax Vanguard account versus paying the lump sum from a portion of the proceeds from the sale of a home? Assume that paying from the Vanguard account uses money subject to capital gains. Paying from a portion of the proceeds from a house sales means I would lose some money that could be used to reinvest in a primary residence without having to pay gains on the sale of a residence. It seems I would be better off paying the lump sum from Vanguard funds than from the proceeds of a home sale, correct, or am I missing something?

Thanks,
Billy
by BillyG
Sun Dec 02, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Is there anyone who wants to comment on these specific questions? I really appreciate your thoughtful comments and advice. Thanks, Billy Billy, Unfortunately, I can't help with your specific questions. I just wanted to say that I am sorry that this is happening to you. Best wishes for the least-stress divorce and a new life in the new year. Victoria Hi Victoria, Thanks so much - I appreciate it! I look forward to getting to the point where I can end this and begin to rebuild financially. It is tragic to see hard earned money being wasted on unnecessary transaction costs. Emotionally and personally I am better off. I've considered reaching out to Bobcat but I hate to bother him with this. I think I can figure out the options. Cheers, Billy
by BillyG
Sun Dec 02, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Trapper wrote: Sat Dec 01, 2018 4:33 pm Assuming her tax rate is 30% may not be accurate.
It is very close to this, with alimony payments.

The significance for these questions is the differential between her tax rate and my tax rate.

Billy
by BillyG
Sat Dec 01, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Question 1 -- IRA and ROTH IRA There is a ROTH IRA in my name and a Traditional IRA in my wife's name. Let's say my ROTH is worth about $120K and my spouse's traditional IRA is worth about $90K. I funded both of them but that doesn't matter here. Much of the new traditional IRA investments were with after-tax money because we did not qualify for the deductible contributions. The standard approach is to divide each of these IRAs in half with a QDRO. The problem for me is that I would no longer be able to do a back-door ROTH every year because I would own pre-tax IRA funds from my half of my spouse's traditional IRA. One approach after dividing these IRAs would be for me to roll over the pretax portion of the traditional IRA into my 401(k), ...
by BillyG
Sat Dec 01, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Trapper wrote: Sat Dec 01, 2018 9:28 am So sorry you are going through divorce.

Looks like you will be paying alimony. I think the deductibility from your income taxes for alimony paid sunsets soon (end of 2018?) for divorce agreements not finalized.

My other advice would not to lump sum pay alimony, but have a series of payments that you both find acceptable. Pencil in the agreement when alimony would cease, generally death or remarriage, or time certain (say 84 months).

It sounds like you have sufficient assets to be ok. Don’t let the tax tail wag the divorce dog.
Good advice, Trapper. They will accept pre-tax or after tax money -- one question is which approach is best for me?

Billy
by BillyG
Sat Dec 01, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Re: Advice on Divorce Settlement Options

Billy, I've been in your shoes and I'm sorry to hear that you have to go through this. It sounds like you want to get through this ASAP, so I'm a fan of lump-sum options. Even though they may not be mathematically beneficial to you, there's something to be said for not dragging things out. Does your spouse have reasonable demands? Hi SixAlpha, You're correct it is no fun. My spouse has been unreasonable and she has dragged this out for 15 months. A little over a month ago was the first time she made an actual proposal. In October 2017 I offered to pay her and suggested we go to mediation and wrap it up by the end of the year and she responded my suing me and dragging it out. It appears she has a lot of anger and vindictiveness and lawyers ...
by BillyG
Fri Nov 30, 2018 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Divorce Settlement Options
Replies: 51
Views: 9257

Advice on Divorce Settlement Options

Hi there, I'm a Bogleheads investor hit with a personal "Black Swan" of a surprise divorce after more than 20 years of marriage. I took advantage of many investing strategies to avoid or minimize surprises and plan for the future, such as a hopefully wise stock/bond allocation, domestic/international stock index allocations, bond index/TIPS allocations, funding 529 plans from the day my children were born, various types of insurance, HSA, allocation among pre-tax and after-tax funds etc. I never could get my wife interested in Bogleheads or any investment activities, and unfortunately she chose a high transaction fee approach to divorce, taking a back seat and letting her very expensive lawyers take the wheel and spend huge sums o...
by BillyG
Thu Mar 08, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: 2018 BOGLEHEADS CONFERENCE UPDATE 9-3-18
Replies: 116
Views: 42069

Re: 2018 BOGLEHEADS CONFERENCE SOLD OUT

I missed it too. I was running a meeting all day and into the evening when the announcement came out and it was sold out by the time I was able to read my emails. Oh well.
Billy
by BillyG
Tue Aug 02, 2016 7:00 am
Forum: Personal Finance (Not Investing)
Topic: Electrical Engineering OR Computer Science?
Replies: 52
Views: 6556

Re: Electrical Engineering OR Computer Science?

Listen to dn123, as he answered the key question about which career provides more room for growth. I have a BSEE and after 5 years and certainly after 10 years I could see the career potential was not there in the same way it was for CS majors. The EE technology changes SO FAST that in a few years your school knowledge will be outdated and the companies would rather pay a lower salary to a new grad who has more current knowledge than invest in an employee with older knowledge. One lesson is you should never stop learning, which is true in all parts of life, but it is an absolute requirement for growth in the tech world. My friends with CS degrees were able to unlock more opportunities and build on their past knowledge much better than my EE...
by BillyG
Thu Feb 11, 2016 4:41 pm
Forum: Personal Consumer Issues
Topic: Motivation to do Yoga / stretch more
Replies: 31
Views: 3737

Re: Motivation to do Yoga / stretch more

I also highly recommend yoga -- as recent convert myself. Last summer I was doing whitewater kayaking with my daughters and realized I didn't have nearly the flexibility I thought I had. Learning to perform rolls was taking longer for me than for others. In September I took up yoga to improve my flexibility and it has helped immensely with not only flexibility but also with my core strength and balance, and I've dropped over 25 pounds because it somehow makes me want to eat less and eat healthier. No way do I want to do some of the poses with a full stomach! I do the hot Bikram yoga which is not for everyone, as it is an intense 90 minute workout with a lot of sweating... this suits me just fine. I've never done organized workouts and I lik...
by BillyG
Wed Feb 10, 2016 5:27 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 806
Views: 174017

Re: Excellent Article Explaining Ridiculous Vanguard Lawsuit

Energy companies are a good analogy. Right now they charge market prices for their product and then pay their owners a dividend that gets taxed. Imagine of the structure changed so that owners of BP shares could receive free gasoline instead of a dividend, thereby paying no taxes.
Actually that is a poor analogy. Vanguard pays us no "profits" regardless of their wording in the excerpt you clipped.

Billy
by BillyG
Wed Feb 10, 2016 4:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 806
Views: 174017

Excellent Article Explaining Ridiculous Vanguard Lawsuit

[See my post below --admin LadyGeek] "Vanguard's Low Blow" The title is tongue in cheek... This is a very well-written and short article explaining the ridiculous whistleblower lawsuit against Vanguard based on its fees being "too low." http://www.bloombergview.com/articles/2016-02-10/vanguard-is-more-mutual-than-most-mutual-funds "Near the end of last month, mutual-fund giant Vanguard announced that it had lowered the expense ratios on 35 of its mutual funds. That’s after a December announcement that it had lowered expense ratios on 53 funds. All in all, Vanguard estimated, the changes resulted in an $87.4 million reduction in the fees paid by its customers. Isn’t that outrageous!?!?! I mean, seriously, how shamel...
by BillyG
Sat Feb 06, 2016 11:59 am
Forum: Personal Consumer Issues
Topic: Airllne carry on luggage size: recommendations?
Replies: 24
Views: 3754

Re: Airllne carry on luggage size: recommendations?

Some of the European airlines are notoriously strict about size AND weight limitations, even when flying First or Business Class. Flying home from Vienna a month ago they had someone before security grabbing every one on that airline (maybe it was Austrian Air?), pulling them aside, and weighing and measuring their bags. This was after getting your boarding pass. After weighing and measuring your bag they put a tag on the cleared carry-on bag so you could go through security. Even if your bag is small enough if you happen to be a tight packer your bag may weigh too much.

I'm at a loss as to what to recommend these days.

Billy
by BillyG
Fri Feb 05, 2016 6:39 am
Forum: Personal Consumer Issues
Topic: Advice for parents with Perfectionist Child?
Replies: 48
Views: 5534

Re: Advice for parents with Perfectionist Child?

I'll second the recommendation to read "Mindset" by Carol Dweck and go from there.
Billy
by BillyG
Wed Feb 03, 2016 6:33 am
Forum: Personal Consumer Issues
Topic: Alternative to Briggs & Riley Luggage
Replies: 33
Views: 17904

Re: Alternative to Briggs & Riley Luggage

I've flown over 3 million miles on United and many miles on other airlines. Last year I flew almost 200,000 miles. I like TravelPro. They are built well and easy to repair (although the old ones were built better). They have different quality lines so pay attention to this. More important is to get the features you want like a place to hang and fold suits and dress clothes. Pay attention to carry-on sizes -- they are changing and most European airlines have smaller size requirements than U.S. airlines. Get more efficient at packing and bringing only what you really need, and/or getting laundry done in hotels. I can go for almost a week with a single carry-on and my briefcase. I'm too cheap to buy Briggs & Riley or Tumi, although I did g...
by BillyG
Tue Feb 02, 2016 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Public school or private school (with school data)
Replies: 102
Views: 12694

Re: Public school or private school (with school data)

As your kids enter middle school stay close to them so they talk with you about their experiences. There is a LOT that happens during these years, and as a generalization it is different for boys and girls, and often parents have no knowledge about what is happening to them at school. This can help insure their public school experience is a good one, and help you avoid (expensive financially and emotionally) corrective measures later. This advice would be helpful whether or not they go to public school, but you might receive very personalized feedback from private school administrators and teachers that you would not receive in a public school. We were surprised to hear many years later about our kids' middle school experiences that were no...
by BillyG
Sun Jan 31, 2016 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Public school or private school (with school data)
Replies: 102
Views: 12694

Re: Public school or private school (with school data)

there is a reason teachers line up trying to become a teacher at this school... although the financial benefits and work hours are better at the public school. The most influential teachers my kids had were teaching at the private after successful careers elsewhere (Wall Street, Bell Labs, a chemical company, etc.) because they wanted to be there. I know that one of the teachers donates more annually than his pay. I don't think it's an accident that those are the teachers DS is still in touch with as a college sophomore. I also was a staunch believer in public schools until I saw how the sausages are made. Politically I'm a liberal, and want to be a public school advocate. But, as a parent, it's not a good fit for my kids. Everyone's milea...
by BillyG
Sun Jan 31, 2016 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Public school or private school (with school data)
Replies: 102
Views: 12694

Re: Public school or private school (with school data)

There is no way I would pay more for middle school/high school tuition than what college costs, especially when you live in a top public school district. Not to mention that you are already paying a premium for your home because it is in that top district and you pay taxes for public schools too. I said the same thing -- until we woke one day to learn the depths of our child's depression with her on the verge of suicide. Obviously there are lots of moving parts but you cannot say "you would never" do something until you learn your ideal world is not the real world. There was a lot more going on than the the public/private issue but this is something we could change. As expensive as it was it (along with some other things) saved o...
by BillyG
Sun Jan 31, 2016 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Public school or private school (with school data)
Replies: 102
Views: 12694

Re: Public school or private school (with school data)

First I would like to say the OP's analysis totally misses the mark. It is not about the statistics, it is about what works for your kid. If it doesn't work for your child they will pay the price and you will too. So first teach your kids how to be resilient, have persistence, about limits and goals, about good judgment and good manners, and about happiness. Without that it won't matter what school you send them to. I was firmly with the public school camp considering I live in a school district in which the high school consistently places in the top 10 public high schools in the country. Then I saw things up close. When there is a high performing school district lots of parents want to move there and the schools grow faster than the county...
by BillyG
Sun Jan 31, 2016 9:44 am
Forum: Personal Investments
Topic: Advisor issues - life insurance vs 529 for college funding
Replies: 9
Views: 1405

Re: Advisor issues - life insurance vs 529 for college funding

Calculate all of the expense rations, commissions, etc in the whole life plan. I suspect it is over 4% and it could be 6% or higher.

Now calculate what that expense ratio represents on that investment over 18 years until college (or 22 years until the end of college). That is how much money would be lost to the financial advisor for his "advice."

Then tell your parents to put on their track shoes and blinders, and run away very very fast without looking back.

Billy
by BillyG
Mon Oct 19, 2015 12:32 pm
Forum: US Chapters
Topic: Thank you Bogleheads Conference 2015!
Replies: 49
Views: 6989

Re: Thank you Bogleheads Conference 2015!

Thanks to all for another superb and well-run Bogleheads Conference!

As hard as it may be to believe, Jack Bogle seems to get wiser every year. I don't know how he does it, but he does! I guess when people are Really Wise it takes years for their wisdom to unfold and Jack's wisdom AND humanity are apparent to anyone who looks and listens.

Thank you, Jack Bogle.

Billy
by BillyG
Sun Jun 14, 2015 10:13 am
Forum: Personal Investments
Topic: Disadvantages from moving 401k to IRA
Replies: 37
Views: 13378

Re: Disadvantages from moving 401k to IRA

Another potential disadvantage -- your 401(k) may offer access to a stable value fund that you would not have access to in an IRA. I will echo the sentiments about having an IRA to facilitate setting up backdoor ROTHs. When we had kids my wife dropped out of the workforce to raise them. We converted her 401(k) to an IRA. I've made IRA contributions for her over the years but now the taxes would be too heavy to convert her IRA to a ROTH. If she still had the 401(k) it would be easy to transfer the pre-tax portion of the IRA to the 401(k) and roll over the rest to a ROTH and take advantage of the backdoor ROTH every year, but we cannot do that. When I encourage her to go back to work so we can take advantage of a backdoor ROTH for her I get a...
by BillyG
Thu Apr 16, 2015 6:00 am
Forum: Personal Investments
Topic: Maryland 529 Plan Tax Tip
Replies: 3
Views: 1188

Re: Maryland 529 Plan Tax Tip

JLJL, Very interesting! I think you posted the wrong link -- this is what you meant for a link:
viewtopic.php?f=1&t=146281

I'm not sure if the state would question the approach of making the spouses beneficiaries AND account holders for themselves. This may or may not raise red flags.

But it is clear that each spouse could separately be an account holder as I mentioned and each take the income exclusion, because the tax authorities used that as an example in explaining the effect of the law.

Billy
by BillyG
Wed Apr 15, 2015 10:31 pm
Forum: Personal Investments
Topic: Maryland 529 Plan Tax Tip
Replies: 3
Views: 1188

Maryland 529 Plan Tax Tip

Assuming you are a MD resident funding a Maryland 529 I just noticed a way to double up on tax savings, assuming you have a spouse. (I understand the arguments about fees versus the Vanguard administered plans in other states, but that's a separate subject.) Maryland allows an income exclusion of $2500 per account holder per beneficiary per year, with a 10 year carry-forward for contributions over this amount. With two kids we set up an account for each one so we exclude $5K per year. But in digging into the regulations I think that I could set up one account for each of two kids for a $5K income exclusion and my spouse could set up one account for each of the same two kids and get another $5K income exclusion for a total of $10K on our joi...
by BillyG
Fri Apr 10, 2015 10:40 pm
Forum: Personal Consumer Issues
Topic: Gearing up for big replacement windows project
Replies: 35
Views: 5397

Re: Gearing up for big replacement windows project

Mojave,

The old paint has lead in it, but that can be dealt with.

Old windows are beautiful and refurbishing them takes time but is satisfying. You could start with one window and see how it is put together with the rope tied to pocked weights inside the window jambs. You might want storm windows on the outside to increase energy efficiency in winter. The old windows look good in an old farm house.

There are lots of resources online to guide you.

Billy
by BillyG
Sun Apr 05, 2015 2:22 pm
Forum: Personal Consumer Issues
Topic: Gearing up for big replacement windows project
Replies: 35
Views: 5397

Re: Gearing up for big replacement windows project

I highly suggest you don't use Pella windows. They are not very good quality although they do a LOT of advertising to make you think otherwise. When you buy their windows you are paying for that advertising. Their aluminum cladding is roll-formed rather than extruded like Marvin windows -- roll formed is much cheaper, doesn't look as good, and is more prone to leaks. Look closely at the Pella snap-in interior grills and see how poorly they fit. Andersen 400 windows are nice. I suggest you investigate places where there are carpenters who actually install and repair windows, and get their opinions. One of the websites is here: http://forums.delphiforums.com/breaktime_3/messages/?msg=2037.1 Installation is a huge factor. A good window install...
by BillyG
Mon Feb 16, 2015 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Anti-virus software on my MAC?
Replies: 20
Views: 2634

Re: Anti-virus software on my MAC?

First do what nisiprius said, and second, you should install anti-virus software. I have a friend who is an IT guru and he caught the Ransom virus trying to run on his computer before he installed antivirus. It almost got him but he powered down the computer quickly. Google the Ransom virus if you haven't heard of it...

We installed Sophos (free) and it found viruses or Trojans on all three of our Macs at home.

Just think about the news and all of the hacks that are occurring, and consider the wisdom of an ounce of prevention.

Billy