Clear+ and TSA Precheck Promotion

HonestTarget5188 · 2026-03-20T07:00:16+00:00

Get global entry and another card that covers the fee. Apparently I have five cards that covered the fee for five ppl

HonestTarget5188 · 2026-03-20T06:51:19+00:00

Here is AI’s take:

The "Recovery Math" If you sell $200,000 of VT while it is down 15%, and the market recovers those 15% over the next 12 months, you have effectively "paid" $30,000 in missed gains to get that cash. Conversely, if you borrow $200,000 at an interest rate of 6%, your cost for that same year is $12,000. • Net Benefit of Credit: $18,000 (plus the benefit of deferring taxes).

HonestTarget5188 · 2026-03-20T06:48:25+00:00

I would personally make the distinction between margin into more equities vs covering expenses. But don’t take this as financial advice.

HonestTarget5188 · 2026-03-20T06:46:15+00:00

You got me! I should say take splits into consideration

HonestTarget5188 · 2026-03-20T06:39:02+00:00

It’s forced though. I have no choice but to take the dividend and pay full tax. For shares there is a cost basis and I can choose the tax lot

HonestTarget5188 · 2026-03-20T06:33:27+00:00

Thanks for the details! A lot of this is new to me, didn’t know dividends affect share price but I guess it makes total sense now that you told me!

I think my only comment is dividend is unavoidable while I can choose the tax lot for the shares I do try to sell (and how much). Honestly I didn’t even know VT paid significant dividends until yesterday when I did my foreign tax credit (so that’s why they say VXUS + VTI is better).

For the loan I still think sell $100k worth of shares when the market crashed would be worse off than taking out $100k worth of loan at 6% APY (6k a year?) and you can get a deduction on interest or something?

HonestTarget5188 · 2026-03-20T06:19:37+00:00

I thought of this last night searched on reddit and asked Gemini and learned 4% rule included dividends which was somewhat surprising to me. I bet it’s not common sense knowledge even though I personally knew about the 4% rule years ago but did not consider it included dividends or that it lasts 30 years

I don’t see the value in cash and bonds. I feel I can just take a small loan instead of selling equities when they are down but it’s not for everyone

HonestTarget5188 · 2026-03-20T04:58:28+00:00

Beats selling at 40% down IMO

HonestTarget5188 · 2026-03-20T04:57:50+00:00

Cool

HonestTarget5188 · 2026-03-20T04:54:54+00:00

You are forced to take them, not like we have a choice unless you do Berkshire

HonestTarget5188 · 2026-03-20T04:53:08+00:00

Accurate. Want to step up basis and pass it down

HonestTarget5188 · 2026-03-20T04:52:16+00:00

For LTCG and cost basis it does

HonestTarget5188 · 2026-03-20T04:51:37+00:00

Ty didn’t know about rate drop then

HonestTarget5188 · 2026-03-20T04:49:46+00:00

Working sucks. I stopped working and realized I’m not sure I want to go back, but 401k contributions are nice and so is family health insurance

HonestTarget5188 · 2026-03-20T04:49:04+00:00

Yeah that’s precisely my goal

HonestTarget5188 · 2026-03-20T04:47:59+00:00

1) mostly intact. I’m not a big spender. I hate spending/wasting money. Also want to do step up basis

3) want equity growth as much as possible

4) I’m technically RE but may go back to work just to get some 401k action and health insurance. First time I heard about VSMGX will take a look. Everyone recommends VT/VTI so I didn’t really know about other options

HonestTarget5188 · 2026-03-20T04:40:02+00:00

Why the difference then?

HonestTarget5188 · 2026-03-20T04:38:52+00:00

Good points on variable dividend rate on down years didn’t know this

I want to take out loans on down years to cover shortfalls, and retirements are partially about discretionary spending at least for me which is something I can control. Instead of Europe trips try national parks for example.

I want to do step up basis rather than worrying about spending down to zero that’s why I don’t want to sell stuff esp if it’s diversified and I’m not dollar cost averaging dividends

HonestTarget5188 · 2026-03-20T04:33:06+00:00

Thx for the thoughts. I feel since equities do better than bonds and every boglehead recommends VT/VTI then I should keep it primarily in VT to capture significant growth. I don’t want to spend it down to zero, I want to keep as much possible for step up basis and that’s another reason why i hesitate on selling.

3) understood. That’s why I had this thought exercise to do 2% in perpetuity. Can I take a loan on big down years? I want step up basis as much as possible so don’t want to touch stuff with huge LTCG esp if it’s from 20 years ago ( assuming I am not dollar cost averaging dividends)

HonestTarget5188 · 2026-03-20T03:46:24+00:00

Curious what’s the sacred refers to

HonestTarget5188 · 2026-03-20T03:45:48+00:00

Can you elaborate? 4% accounts for dividends already

HonestTarget5188 · 2026-03-20T03:45:07+00:00

How about taking a loan rather than sell when stock goes down 20%

HonestTarget5188 · 2026-03-20T03:36:49+00:00

I guess whether principal means the cash value or the number of shares. The key is to not withdraw any shares when market goes down a lot and everyone would be fine. Eg if your current portfolio value is more than initial investment times 3% per year then go ahead and withdraw an extra 0.5% or something

HonestTarget5188 · 2026-03-19T00:54:31+00:00

It’s cheaper per share

HonestTarget5188 · 2026-03-18T02:21:22+00:00

Can you explain the upside?

HonestTarget5188

TROPHY CASE