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  • Why 401(K) Plans Don't Work In This Market [View article]
    Diver Dave,
    You are assuming that you'll only be at lower marginal bracket.
    Honestly, my "comfortable" retirement is likely to be ONLY at 25% marginal.
    Apr 3 06:54 PM | Likes Like |Link to Comment
  • Why 401(K) Plans Don't Work In This Market [View article]

    I would add that an individual investor ALSO answer those three questions, as well as keep "minutes" (personal notebook or "instablog" or ...)

    What's the Spangler "Investment Policy Statement"?

    When was the "last time the plan trustees met to review the performance of plan investment options"?

    Have you evaluated the "overall plan costs by category and when was the last time this information was reviewed"?

    You can keep the minutes private if you wish ;)

    Your comment has me thinking that I personally need to do the same evaluation/review as well as keep personal "minutes" that can be referenced.
    Apr 3 06:35 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investing And The Reluctant Spouse [View article]
    My wife and I structure "our" personal financial matters much like a business.

    We separate the responsibilities of payables and receivables. IMO, it's a mistake to have both be a single person for a family or a business (aka you spent what! on what?).

    We have a "board" that also involves another non-resident family member. This serves as an independent voice (which over her lifetime has amassed a 7 figure net worth).

    Myself as the "receivables" one, can focus on maximizing our income.
    My wife as the "payables" one, can focus on minimizing our expenses.
    Our "board" has informal meetings, but the inflow/outflow equation becomes well understood by all.

    We currently have a FCF of nearly 50%! I'm not a CPA, but I simply calculate as (income-expenses)/income.
    That "excess" is deployed via:
    50% to investments (savings, IRA's, brokerage)
    30% to capital improvements (remodeling, vehicle replacement, etc)
    10% to debt servicing (our only remaining debt is long term to our "board" member)
    10% to "fun" (vacations, bobbles, etc)
    Apr 3 05:36 PM | 8 Likes Like |Link to Comment
  • Don't Become The Biggest ETF Loser [View article]
    giorgiolb, et al

    My initial comment was to add yet another data series in.

    In other words don't get "suckered" by speak that the "front load will be absorbed by gains after 3-5 years".
    Apr 2 08:17 PM | Likes Like |Link to Comment
  • Dividend Stocks With Prices Way Too Far Ahead Of Themselves [View article]
    I also agree that the "alerting" mechanism is worthy.
    I also think it may be a lagging indicator which for me is somewhat less worthy.
    Apr 2 05:03 PM | Likes Like |Link to Comment
  • The Facts Are In - MLPs Work Great In IRAs [View article]
    I held KMP (only 20 shares) in my Roth for about 18 months before an exit last fall.

    The UTBI has never been positive, but because of the sale last year, the supplemental is showing a $400 "ordinary gain".

    I'll be ensuring my custodian properly files this!

    Obviously it's less than the $1000 (and why I decided to exit in that account), but I want to ENSURE the custodian properly files so that the IRS doesn't decide in the future to penalize my IRA for failure and/or improper reporting.

    It is completely irresponsible to assume that failure and/or improper reporting by your custodian will somehow become THEIR issue.

    The IRS will simply go after the IRA for the penalties, and the custodian is going to let them.

    You as the beneficiary of the IRA might have legal recourse against the custodian, but good luck with that.
    Apr 1 07:56 PM | 1 Like Like |Link to Comment
  • Don't Become The Biggest ETF Loser [View article]

    Another data series to consider might be front load "funds" (with $0 trade costs within the "family"). Say a front load of 4.5% ...

    The question would be: What is that performance after the 10 year period?

    (The initial 10 year period I think is most relevant since that is likely to represent the "early" years).
    Apr 1 07:21 PM | Likes Like |Link to Comment
  • Facebook Home For Android Leaked: What You Need To Know [View article]
    Facebook is "One Hacker Way".
    AAPL is "One Infinite Loop".
    MSFT is "One Microsoft Way".

    I'm guessing that "One Stupid Market Tier" was taken.
    Apr 1 06:40 PM | 2 Likes Like |Link to Comment
  • Facebook Home For Android Leaked: What You Need To Know [View article]
    If this is true (today is April fools day), Facebook doesn't need to manufacture a phone, they'll simply replace the UI of them?
    Apr 1 06:27 PM | 1 Like Like |Link to Comment
  • Dividend Stocks With Prices Way Too Far Ahead Of Themselves [View article]

    A case in point might be Coke (KO) vs. Dr.Pepper (DPS).
    Purchase 100 shares of KO a year ago for $3600 (current income of $28).
    Could trade those shares for roughly 87 shares of DPS today (and get $33 of current income).

    A nice 17% raise in income.

    They are *not* exactly in the same league however, and become an individuals decision on their comfort level of the swap.
    Apr 1 03:50 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing: Myths 11-15 [View article]

    You and I probably share a common "goal". The "number" isn't wealth or a date, but instead the sustainable income. The strategy to accomplish it can be varied (and also might vary over time).

    I started at 25 (min was 10% my income for goal). The strategies have varied of the source of the income to compound (sometimes real estate, sometimes equities, sometimes loans).

    I'm within striking distance of the retire at 50 goal ...
    Mar 28 09:49 PM | 1 Like Like |Link to Comment
  • Why 401(K) Plans Don't Work In This Market [View article]
    I'm also in the "no good reason for me to participate in my 401(k)" camp.

    Mine is $1k match for the first $1k, and $1k for the next $2k.
    So, on the surface, $3k is $5k (40% free return!).
    Available investments are "American Funds" (need I say more)
    By participating, I'd be unable to make deductible IRA or Roth IRA contributions (due to my AGI).
    Mar 28 02:53 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing: Myths 11-15 [View article]

    I'd kindly suggest you establish your goal _first_.
    Some examples:
    - A hard date goal (e.g. 10 years).
    - A wealth goal (e.g. monte-carlo simulations with a predictive success rate) and a withdrawal schedule.
    - An income goal (e.g. $X invested today provides sufficient ongoing income in retirement)

    Only after establishing a goal is the strategy in order to meet that goal a basis for determining the risk of meeting it and its success post-retirement.

    Each strategy has differing risk profiles. Some "risky" examples:
    * A wealth based goal with a strategy of winning the lottery.
    * A date goal of "never" with the strategy of working forever.
    * An income goal to be solely met by SS.

    Obviously most on SA aren't using these "risky" strategies, but the point is that whatever the goal profile chosen, it is subject to a different risk profile, for example:
    - Is the wealth based goal "enough" when subjected to market whims?
    - Is a date based goal too early (or too late) to have a comfortable retirement?
    - Is an income based goal going to be sufficient if expenses change to exceed income?
    Mar 28 01:57 PM | 5 Likes Like |Link to Comment
  • Citing upcoming catalysts, UBS puts Apple (AAPL +1.6%) on its Most Preferred list, helping shares outperform in early trading. The firm was among the first to raise alarm bells about iPhone order cuts. Apple is now up 11% from its March 4 low. [View news story]
    Humble on NQSO's, the difference between current price and strike price is "income" (and the required withholding is likely to be ~50% in CA even if their marginal is less).

    So, when a price dips, it appears as less "income" and the tax bill is lower, and the cost basis becomes that price.

    When the price recovers, and held for more than a year, then it's a long term gain on the difference between the cost basis set at exercise and the sale price after price recovery.

    The point is, NQSO exercise by insiders is actually a bullish move by them since they expect a price recovery to more than make up for the income tax they pay at exercise.
    Mar 25 04:07 PM | 1 Like Like |Link to Comment
  • Your Bond Allocation For 2013: It's Time To Lower Your Risk [View article]

    Am I incorrect in your comment that the "call date" is likely to be an advantage to someone other than myself?

    If so, they call, they win, they don't I lose?
    Mar 21 09:12 PM | Likes Like |Link to Comment