Vote for New Mortgage Disclosure Form Design
The new Consumer Finance Protection Bureau is asking the public to vote on two draft designs for the mortgage disclosure form. The goal is to make it easier for the borrower to understand the loan terms. They call it "Know What You Owe."
The new form, when it’s finalized, will replace the current Good Faith Estimate (GFE) and Truth In Lending forms.
The two draft designs are here: Ficus Bank and Pecan Bank. The bureau randomly marks them as Option A and Option B. Some people will see Ficus Bank as Option A, Pecan Bank as Option B; some people will see the other way around.
2011 and 2012 HSA Contribution Limits
The IRS announced contribution limits for Health Savings Account (HSA) for 2012.
HSA Contribution Limits
| 2011 | 2012 | Change | |
| Individual Coverage | $3,050 | $3,100 | +$50 |
| Family Coverage | $6,150 | $6,250 | +$100 |
You can only contribute to an HSA if you have a High Deductible Health Plan (HDHP). » Read more …
TIPS Price Up: Buy, Hold, Or Sell?
US Treasury sold 30-year TIPS at 2.19% real yield in February 2011. I didn’t buy it because the maturity is too long for me. Now, not mere three months later, the value of this bond has gone up substantially. Had I known it would do this well, I should’ve put a lot of money in it.
Back in February, investor paid $987 for each $1,000 bond. As I’m writing this post, you can sell this bond for $1,113. That’s a gain of nearly 13% in three months. The stock market went up maybe 2% during the same time. Who says you can’t make more money in bonds?
Better Work For A Large Company Or For A Small Company?
If you work as an employee, do you work for a large company or for a small company? If you have worked for both types, which do you prefer?
Speaking of looking for a new job for better pay, a former colleague just told me an opportunity at the company he’s working now. Because he knows I do a good job, he invited me to interview for it.
That company is a small company, with fewer than 50 employees. My current employer is a large company, with more than 10,000 employees.
Take Money Off the Table After a Good Run
Almost three years ago, when the stock market entered a bear market, I devised a plan for overbalancing, which called for increasing the percentage of my portfolio invested in stocks as the market goes lower.
| Stock Market | Allocation to Stocks |
| -5% | 60% |
| -10% | 60% |
| -15% | 60% |
| -20% | 65% |
| -25% | 65% |
| -30% | 70% |
| -35% | 70% |
| -40% | 75% |
| -45% | 80% |
| -50% or more | 85% |
In-Plan Roth Rollover: Practically Useless
A new law passed last year, Small Business Jobs Act of 2010, added a provision to allow participants in 401k or 403b plans to move their money from a traditional 401k or 403b account to a Roth 401k or 403b account within the same plan. This is called an “in-plan Roth rollover.”
As a practical matter though, it’s useless to almost everyone.
I say this not just because I’m not a fan of Roth 401k or Roth 403b. First it’s hard to qualify. When you qualify, you realize you are able to do it all along, to your own IRA with better investment options. Finally it may not be a good idea to do it anyway. In the end, it’s practically useless.
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