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Messages - Jim

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Maccountant, I have no idea how Fidelity will be making money on their zero percent management fee index funds.  I assume with Keith that they will be considered their "loss leader" to get new investors in the door and then overtime up-sell them to advisory services or higher expense products.

As for any plans on investing in the fund.  I won't be investing in them.  Not because I don't believe them, but because of simplicity.  My employer offers Vanguard funds and I invest all of my money at Vanguard.  To move over with my modest portfolio to save 0.04% seems more hassle than it is currently worth.  I may re-evaluate once i get to a $1m portfolio or something along those lines, but that will be several years down the road.  Right now I need to keep saving and letting the market do it's long term thing.

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General Discussion / Re: Things we pay for that we can get for free
« on: October 22, 2018, 05:53:11 AM »
That's an interesting take Gatorwife.  I keep reading articles and thinking about things that are free now which we used to pay significant sums of money for (i.e. Skype or FaceTime vs. paying for video teleconferencing) etc.  I see the bottled water vs. tap water thing a lot.  Another similar one is air purifiers vs. getting natural fresh air.  Granted, air pollution is a problem in some major metropolitan areas, but fresh air and opening the window used to be free.  Now we use machines to purify it for us.

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General Discussion / Re: Target Dates Funds
« on: October 22, 2018, 05:49:01 AM »
Curly, sorry that this is a later response so you may have gotten good advice elsewhere.  As for Target Funds, the general consensus I have read online is that they are good for an individual who doesn't want to stomach a ton of volatility and just set it and forget it.  The reason being is they automatically re-balance into more bonds and conservative investments as you get closer to your retirement date (in your case 2030 for the target date of your fund).

The only negative I've seen is the expense ratios tend to be a tad higher than if you built out the allocation yourself using Vanguard funds based on the allocation of the fund.  The trade-off is you would have to manually re-balance every year to get to a more conservative asset allocation.  Even with the higher expense ratios, they are significantly lower than an active managed fund.

Sorry to hear you felt like you were sold on them and pushed onto you, but they aren't the worse things have sold on you.  Based on you having a 12 year old son active in sports and you working a bunch, I could see why your adviser recommended them as it would naturally get more conservative for you without your intervention. 

Hopefully this helps.

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I need a Tax Accountant to Help Me With ____ / Re: 401k - "Age 55 Rule"?
« on: February 21, 2018, 06:58:41 AM »
Mark,

I haven't had to be in this specific situation, but I looked on the IRS website and found this helpful link (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions).  If you scroll down on the table until the heading of "Separation from Service" it says as long as you turn 55 that year, you can withdraw from a 401k without the additional tax penalty.

I believe this has to be from your current employer's 401k and not from a 401k a couple of jobs ago (if you didn't roll it over).

I don't know how the mechanics of it work on your form 1040, but that is what I found.  Hopefully this was helpful in some way.

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Investing / Re: VFIAX | VTSAX
« on: February 21, 2018, 06:46:09 AM »
I'm not 100% sure why everyone loves VTSAX so much.  I think a big part of it has to be with people reading JL Collins' stock series (http://jlcollinsnh.com/stock-series/) and his recommendation of VTSAX.

I personally use the ETF (VTI) in my taxable brokerage, but VFIAX in my Roth IRA's.

For me, JL Collins' stock series solidified my understanding and acceptance of index funds and if others new to the series did the same it could skew the recommendation in the FI community.

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How to Become a Wealthy Accountant / Re: Apparently not?
« on: February 21, 2018, 06:35:47 AM »
I agree with Nords on the fact tax preparation will be a commodity business with filing prices racing towards zero.  That being said, I think the niche of tax planning and advice for individuals and businesses could be a place where you could make a side hustle or a full-time business from.

Of course, your customers would probably want you to also file their returns so you would still have the seasonality of it. 

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General Discussion / Re: Before-Tax or After-Tax Contributions
« on: February 20, 2018, 09:06:24 PM »
I would need to know the balances of how much you have in pre-tax accounts now that are subject to Required Minimum Distributions (RMDs) and when you plan on retiring.  I still voted for a split approach mostly because I think you will be subject to some RMDs eventually and could get hit with a higher tax bill down the stretch unless you plan on getting rid of the rental when you retire.

I like the thought you are putting into it, but fear we would need a little more information.

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Bloggers Helping Bloggers / Re: Favorite tools for writing
« on: January 27, 2018, 11:20:27 AM »
I'll have to check out LibreOffice to see if it would be an improvement than writing directly in WordPress as I do now.
One day WordPress will give you the 404 or the "server error" message on 2000 words of your best draft post ever...

Good point Nords.  Always best to keep a backup. I was wondering if you or Clackapedia had any suggestions on a good plugin for social media sharing?  It seems to me that social media is a more important presence to have nowadays than SEO. I would prefer something free as I am just trying to build an audience at this point, but if there is an inexpensive paid for plugin that is hands down the best, then I would go that route as well. Thanks in advance for any help you can provide.

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Bloggers Helping Bloggers / Re: Favorite tools for writing
« on: January 17, 2018, 01:22:20 PM »
Nords thanks for all the great writing tips.  I recently started a blog primarily to chronicle my journey to FI, but I'm really enjoying the creative outlet to write as well.  Kind of funny since I never scored well in English class and am an accountant by day.

I'll have to check out LibreOffice to see if it would be an improvement than writing directly in WordPress as I do now.

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