The Retirement Gamble by PBS Frontline
I only watched the first half. I’m saving it here as a bookmark to finish the second half.
I see it’s about 401k plan costs. 401k plan costs should be lower, but I also note that a 401k plan, good or bad, is part of the total compensation. Having a bad 401k plan basically means you are paid less, all else being equal. However, all else are not equal; otherwise you wouldn’t be working at an employer with a bad 401k plan. You can always go to an employer with a better 401k plan. If you can’t, it means you already maximized your human capital at your current employer, even with its bad 401k plan. If I’m paid well enough or if I have a job I like the most, I can deal with a bad 401k plan or no 401k plan at all.
A safe retirement does not depend on a low cost 401k or a government pension. A better 401k would be nice, in the same way a better salary would be nice.
Proposal Threatens To Ban Specific Share Identification Method For Lot Level Accounting Tax Strategies by Michael Kitces at Nerd’s Eye View
A proposal in President Obama’s 2014 budget will require average cost as the only cost basis tracking method to use for shares held for more than one year. This will stop investors from cherry picking tax lots to minimize capital gains or maximize capital losses when they sell. Although it doesn’t affect tax loss harvesting just yet because tax loss harvesting for the most part involves short-term losses not long-term, it would be easier to require average cost for everything not just long-term. Is tax loss harvesting an abuse that should be stopped? I think so.
Which Bonds are Most Tax-Efficient? by Mike Piper at Oblivious Investor
Munis are most tax-efficient. They are also a better deal than taxable bonds.
Your Old 401(k) Take it or Leave It? by Roger Wohlner at The Chicago Financial Planner
I heard about this report by the GAO criticizing service providers for steering terminated employees to an IRA rollover as opposed to leaving the money in the 401k plan or rolling it over to the new employer’s plan. I couldn’t believe it. The GAO analysts must be influenced by their own good plan. 90% of the time rolling over to an IRA would be the right choice.
I like the clean slate approach in this revised Bowles-Simpson Plan. It “starts by eliminating all tax expenditures, lowering rates and requiring restoration of tax expenditures to be offset with higher rates.”
Your Entire Financial Life in One Deceptively Simple Chart by Jonathan Ping at My Money Blog
Do you achieve financial independence by earning more or spending less? Obviously you need both but I’m a firm believer in earning more. Because spending more money mostly buys convenience, it would be easy to cut down some convenience and not affect happiness. Doubling one’s income is not as easy.
Managing 25 Million Dollar Portfolio by Mike at Long-Term Returns
Managing a $25 million portfolio would be much easier than managing a $250k portfolio because you just can’t go very wrong with $25 million. Put it all in CDs. Let inflation eat it. You would still have plenty left. See how easy it is when you earn more?
What do you see as the next market bubble? by Joe Davis at Vanguard Blog
Ever since we had the dot com bubble and the real estate bubble, people are on constant bubble watch. Now people are talking about a gold bubble, a bond bubble, or maybe an Apple bubble. Bubbles don’t happen that often. Most of the time there isn’t any bubble.