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  • Who Will Win The 2016 U.S. Presidential Election?   [View instapost]
    Well then most weren't paying attention or I can't see the political motivation of looking really dumb. I can't believe how many politicians seem to think the US can go bankrupt.
    Jan 27, 2015. 06:14 PM | Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    You have to pay estimated payments when you make the conversion, thus you need a lot of cash on hand.

    Conversion deadline is December 3.

    Recharacterization deadline is actually not until the following year in October. You of course need to file by april 15th, but can amend your return if you decide to recharacterize after April 15th but before the late filing deadline in October. Also they take some time to process so missing a deadline because the processing hasn't completed does not fly with IRS. Plan accordingly.
    Jan 27, 2015. 04:05 PM | 1 Like Like |Link to Comment
  • Will The U.S. Authorize The TransCanada (TRP) Keystone XL Pipeline In 2015?   [View instapost]
    Seems like there would be more jobs associated with operating rail than pipelines.
    Jan 26, 2015. 10:42 PM | Likes Like |Link to Comment
  • Who Will Win The 2016 U.S. Presidential Election?   [View instapost]
    I would like a candidate that understands macro-economics and especially the differences between state economics and sovereign economics.

    However, I have yet to see one in the field. Not too surprising though.
    Jan 26, 2015. 10:31 PM | Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    Lenmill, David, and Others

    Bigfoot48 over at the Bogleheads forum created a model that allows you to play out many different and complicated scenarios in an excel model. I used and continue to use it to navigate a close to "optimal" path for my mother (age 60) (where optimal means more than just having the largest pile of money at age X).

    Some things it helped me figure out: When to do conversions, and how much to minimize tax hits now and in RMD years. When should she take SS? How do rates of return affect it? etc.

    The bogleheads wiki has a link to the forum post containing the excel file download.

    It is an excellent tool that I highly recommend. However, I am very experienced in excel and would say fairly strong understanding of the options available in the model and their impact. For someone of similar level of experience it will probably take an hour or to get your first working scenario and somewhat comprehend it. For the less experience it could take several hours to complete your first scenario correctly. Once you get the hang of it, they come much faster and are well worth the effort.
    Jan 26, 2015. 10:18 PM | 2 Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    There are a number of reasons to take SS as early as possible.

    The obvious one is Life expectancy (if you think you won't live past the break even age) based on your current condition and family history.

    But less thought about is what the break even ages are. The following links show several break even ages for 62 vs 66 and 66 vs 70 for various scenarios of inflation and rates of return. Essentially they come out to be ~85 give or take.

    So if you aren't going to break even till 85 (less than half of us make it there), what good is having the "extra money" then when you probably will be less apt and able to enjoy it?

    There are also good reasons why you may want to delay it.

    Such as you expect to live a long time. You plan to work longer. You want to have more "conversion tax room" so you can get more in a roth so you don't have high RMD tax years. You don't need it to live now and feel more secure using it later and consuming riskier assets now. All your money is in the mattress so your rates of return are negative. And probably many other possible reasons.
    Jan 25, 2015. 10:41 PM | 1 Like Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    "They did note that if the investor has both mutual/index funds and individual stocks, that you must open a separate ROTH for the mutual/index account and another for the stock brokerage account. Two separate accounts, in actuality, and therefore require two separate ROTHs."

    It depends on the brokerage. Vanguard up until very recently required two separate IRA accounts.
    Jan 25, 2015. 06:54 PM | Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    You do not need income to open a ROTH IRA account. You do need income to contribute to it. You do not need income to convert funds from a traditional IRA to a ROTH IRA
    Jan 25, 2015. 05:09 PM | 3 Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    In most cases, if you not taking SS comes at the expense of cashing out an investment earning more than inflation then delaying SS will never pay off within one's lifetime.

    However, there are a bunch of other things that may change this such as delaying SS so that you have more "income room" to do conversions from a traditional IRA to Roth IRA to avoid high tax IRA distributions.
    Jan 25, 2015. 03:20 PM | 2 Likes Like |Link to Comment
  • When This Ends, Everybody Gets Hurt  [View article]
    Yea executives have at least 5 years horizon. Since that's when they can cash out.

    Debt in a countries own currency is nothing to fear. If you do then I will gladly be in Debt "Ba1k3es currency" for your stuff. I hope I know where I can get more oft that "Ba1k3es currency" to pay you back in the future... oh good lucky for me I own a printer.
    Jan 25, 2015. 02:58 PM | Likes Like |Link to Comment
  • Draghi Provides Markets QE Beer Goggles  [View article]
    "For those not familiar with the term "beer goggles," these are the vision devices that people put on to make a party more enjoyable with the help of excessive consumption of beer, alcohol, or in this case, QE."

    Sorry but this is wrong, I wouldn't use terms you don't know intimately well as a title. The term beer goggles does not refer to an object. It is a jest to the experience of intoxication lowering your standards; you find girls or men attractive that you would not have if you were sober.
    Jan 25, 2015. 02:29 PM | 1 Like Like |Link to Comment
  • My Roth Conversion Odyssey (Part 2)  [View article]
    You seriously doubt that taxes will go down? In the past several decades that is all they have done.

    Historical tax rates:

    I seriously doubt the bottom 3 brackets are headed anywhere but down. There has, for a change, been pressure to increase the top brackets so I could see that happening or the creation of some ultra-high income brackets. But bottom line don't put much credibility into tax rate increases, especially the lower ones.
    Jan 25, 2015. 10:58 AM | 5 Likes Like |Link to Comment
  • When This Ends, Everybody Gets Hurt  [View article]
    David is correct.
    Jan 22, 2015. 07:16 PM | 3 Likes Like |Link to Comment
  • John Hussman: QE And The ECB: 'Authorize' Is A Slippery Word  [View article]
    For Hussman the past and present is misery.

    The past of the American stock markets say if you hold on for the long haul you will come out ahead. Hussman aparently thought this time was different, and it wasn't. Too bad for his investors.
    Jan 20, 2015. 10:12 PM | 1 Like Like |Link to Comment
  • I'm Not Buying It-- Not The Wall Street Rip, Nor The Keynesian Rap  [View article]
    "You can't demand something that doesn't exist."

    Sure you can. People have demanded alternatives to putting gas in cars, we got tesla. People demanded we go the moon, we got the Apollo program.

    "Where does a "consumer" get money to consume things?"
    Loans, aka the creation of money.
    Dec 20, 2014. 03:45 PM | 1 Like Like |Link to Comment