Menu

jz

Home jz Replies Created

Forum Replies Created

  • Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    Historical context:   back in the 80s, 90s, 00s  these “location” strategies were clear;  put high dividend bonds at 12–5% rates in tax deferred,  to protect them from immediate taxation. For the past 10 years, however, bond rates have been a pittance, so what’s to protect?

    As per your questions, I believe each of your  accounts should have it’s own asset allocation, based upon duration, and independent of your others. As your mentioned, you can not transfer money across accounts, so keep them independent.

    in reply to: Asset location questions – bonds and REITs #245837 Reply
    Liked by Vagabond MD
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    @vanguard MD,  do you not also read A Wealth of Common Sense? and listen to AnimalSpiritspod ?

    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    “Living in a barn”—- Never.  No amount of white wash could eliminate the wafts of manure from those timbers. And neither the corn crib, the milk house, the machine shed, nor the chicken coop.  Build a HOUSE.

    in reply to: Dream home but no liquidity of 1mil investment #242546 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    @neuro-doc.

    The role of bonds is primarily to reduce risk and volatility in your portfolio

    Agree, but also can generate income.   EM bonds currently yielding  5.5%.  It’s all a tradeoff.

     

    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    The billionaires are clustered geographically, so rarely cross paths with us.  Michael Kitces interviewed a wealth manager in my city.  When the WM acutely needed $$ for a partner buyout, he simply traveled  around his lake house neighborhood to find a lender—-right in the hood.

    in reply to: The 1% #240185 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    Historical review.  The 16th constitutional amendment allowed a federal income tax which originally included only the top 1% earners….a beachhead that now includes 50% of earners.  A wealth tax will similarly serve as a beachhead to include progressively lower levels of wealth.

    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    @panscan,  recognizing patterns.   What you do every image you interpret.

    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    ( have not read above ) Retirement uber alles.   At 4% withdrawal, you’ll need x25 retirement budget to fill your nest egg.   Do not  burden your children with your retirement failure.

    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    Beware reporting bias.   Your BIL will report whenever he has a hot streak;  and go silent when he’s underwater.

    in reply to: Cryptocurrency #239937 Reply
    Liked by RocDoc, Lordosis
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    (have not read the above replies)  Ask him about a potential world of negative bond interest rates.  How likely?  how to navigate?

    in reply to: Bringing Michael Kitces on the Podcast #239933 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    I”ll push back against @panscan statement that  the cognitive practice of medicine involves memorization. Cognitively, good medical practice requires pattern recognition, pattern recognition, pattern recognition, pattern recognition, etc.   In the wild, on the screen, listening to pts. visual observation, EKG reading, and more pattern recognition.    When you’ve got that down, you need more pattern recognition, pattern recognition, pattern recognition, and more pattern recognition.

    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    Now age 62.  I dropped mine 14 years ago, and at $2k annually, I savor the $28k extra in my purse, not theirs.

    in reply to: When to let Term Insurance Lapse #236562 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    Your proposal would yield a first year $1200 on $27,000 of principal.    $1200/27,000=4.4%.  Each successive year would yield slightly less.  Yes, I would do that deal.

    in reply to: Looking to cancel PMI, check my math please! #235615 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    The effective DURATION is the difference. If the Fed raises short term  rates , VCITX, with a duration of 6.76 years, will drop in asset value by 6.76% for every 1% rise  in short term rates.  VCAIX, with a duration of 5.05 years, will drop in value 5.05% for every 1% rise in short term rates.  In reality the changes are not that precise nor predictable because the long duration bonds tend to be influenced by more factors than just short term Fed rates. Because you can not predict the Fed decisions,  and you need the asset soon, put them into the shortest available duration fund.

    in reply to: Muni funds help – CA #235084 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 672
    Joined: 01/09/2016

    Consider a series I bond over a TIPS bond.  The series I advantage is no taxation until the decade that you decide to sell it.

    in reply to: Any thoughts on buying TIPS thru Treasury Auctions? #232642 Reply
Notifications Mark all as read  |  Clear