IRA Rollover and Conversion

I didn’t stop blogging, I’m just on a four-week vacation around the East.  Also, happy 2018 and 2-year blogversary.  My wife an I have had income that put us in the 15% or 25% tax bracket for the past years.  After the MBA our combined income should put us in the 22% bracket for the near future.  Since this year the only income we earned was from my summer internship, it meant we would have to pay nothing after the standard deduction and personal exemptions.  However, that left room in low tax brackets.  If we could find a way to earn more income then it would only be taxed at 10%, which is a pretty good deal.  However, there weren’t any easy ways I could think of to earn income while abroad so we went another route.

IRA Rollover

I had a 401(k) from my old employer which I should have been investing aggressively, but I’m dumb.  I had placed it in very conservative investments yielding 1-2% expecting a stock market correction.  Instead, the market has gone up I decided to rollover my 401(k) into an IRA to give myself more options.  However, it was also necessary in order to do an…

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Points to the Rescue

Yesterday was quite an adventure, but everything ended well.  The story begins in Madeira.  After arriving to the airport at 8AM for our 9:20AM flight we looked at the departure board and noticed our flight to Lisbon was delayed until 1:45PM.  Then my wife checked her email and found that her flight from Lisbon to London got canceled.  The reason she was going to London was to catch a flight to Los Angeles.

The problem

If your flight is delayed and you miss your connection then you get rebooked on a later one.  However, sometimes it is cheaper to buy separate tickets, but in this case since the reservations aren’t connected you will have a problem if you miss your flight.  In this case the problem was she was on EasyJet for Funchal to Lisbon, British Airways to London, and LOT to Los Angeles.  So there were two points where a problem could occur.  To mitigate the chances we booked with at least 7 hour layovers in Lisbon and London.  But the delay from EasyJet coupled with a cancellation was threatening to derail the plan.

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This week’s article is written by a guest, Van from A Word About Wealth, an entertaining financial podcast.  They go over a variety of topics and it is a fun listen, so check them out.  Below is Van shares about his experience with timeshares…


I’ve made two major financial mistakes in my life. The first was purchasing a
universal life insurance (which I’ve since cancelled) and the other was purchasing a
timeshare (which I still regrettably own today). Some may see their timeshares as a
blessing, but I do not share that sentiment. Sure, the idea of traveling the world and
visiting new sites will always be appealing. But there are much better ways to go on
your dream vacation (as Mr. Ten Bucks has shown) than to own a timeshare.

What exactly are timeshares?

Simply put, timeshares are a way for you to own a piece of vacation property.
Instead forking out massive funds to buy a vacation home outright, you have the
option to purchase a “share” of the property for a specific amount of “time” within a
year, hence the term “timeshare”. The timeshares are typically held in resort
properties that are located all over the world.
There are several different flavors of timeshares and these are the 3 most common

  • Fixed – You can purchase a fixed week(s) that will only be reserved for
    you. This exact time period is locked for you every single year, so you
    always know that the timeshare is always available for you.
  • Floating – Instead of being limited to the same week every single year,
    you can make the reservations anytime. The only problem is that you run
    the risk of unavailability especially during peak holiday season.
  • Points – The points plan allows buyers to use points as a currency to
    reserve your vacation needs. With the previous 2 plans, if you don’t use
    your week, you lose it. However, with the points plan, many timeshare
    contracts allow you to roll over unused points, thereby minimizing any
    loss time with the timeshare.

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Everyone is going wild as Bitcoin (BTC) approaches $10,000.  Some people are calling it a fraud, others a bubble, and tons are jumping in to grab some.  So is this an opportunity of a lifetime or a waste of money?  Only time will tell, but let’s be as informed as possible.

My experience

When I first heard of BTC it was the beginning 2013 and I thought I should get some, it was around $50 and by the time I was able to buy some it was at $100.  The process was tedious involving going to the store for money orders and sending through some processors I’d never heard of, but it worked out.  It was still the wild west and new coins were being made left and right like Dogecoin and Feathercoin.  I noticed that there were price differences among exchanges and wanted to set up an arbitrage business, but it was so difficult to transfer cash between exchanges and transferring BTC took 10 minutes which was enough for the volatile currency to change in the interim.

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This entry was posted in Invest.

Let’s Talk Retirement

It seems like almost every week there is an article saying how American’s don’t have enough for retirement.  Here is a nice graph from the Economic Policy Institute.  It looks like people at the top may be alright with $163,000, but really that is simply less than $1,000 a month over twenty years.  Coupled with Social Security you’re not going to have the same quality of life you had previously, unless you were making around $24,000 a year.  Yet, the news gets worse.  The first graph is just the average which is driven up by people who have saved a ton.  The typical person in that category has only $17,000!  I think we all know that’s not going to make for a lovely retirement.

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Experiences on Points

Previously I said that our cash expenses on vacations are primarily food and the occasional experience because you can’t use points for those.  Well I figured out you sure can!  I was hoping this article would be one where I could say look what I won, but unfortunately I was outbid.

Introduction to Auctions

Instead of using your hotel points or airline miles for hotels and airlines, it is possible to get something unique.  Some items are fancy meals while others are trips around the world or tickets for a sports match.  You can even meet Mariah Carey.  This can work out great because you may have a pile of points and would prefer an experience to a hotel stay.  Don’t get carried away, it can be tough to win, but if you do there can be some great value.  Let’s look at some examples.

My case

First, there was a trip for two to Japan with 7 nights at a 5-star hotel and a 4-day guided tour with business class flights.  The price for the tour alone was $4,000 per person.  All together I estimated the trip was around $12,000.  It ended up going for 651,000 United miles.  Close to 2 cents a point is not a bad use of miles.

Next, there was a trip to Telluride that included two pairs of custom skis.  The skis were worth $3,500 and the lift tickets another $1,000.  Add in hotel, flights, and car and this package was around $8,000.  That sold a bit higher than all the miles we have at 400,000 United miles.  Again, they are getting around 2 cents a point.  That’s not to say there aren’t even better deals.

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Negotiation Class

I’m back in school and I’m taking a negotiation class because who doesn’t want to be a better negotiator?  I sure do because then I can get better deals on everything and hopefully find creative value-creating solutions.

Getting to No

One of our assignments is to make requests and get rejected ten times.  I think this is a great idea!  It has made me try more extreme asks.  I challenge you to go ask for things because only good things can happen.  I asked my kitesurf instructor to make a package of lessons and got €5/hour discount.  Same thing happened for my Portuguese lessons.  If they say yes, then maybe next time you should try a larger discount.

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This entry was posted in Earn.

Budget Airlines

Europe is full of budget airlines and yet I’ve managed to avoid them, until this week.  I bought a roundtrip on TAP, but I decided it would be easier to fly back earlier, so I bought a ticket on EasyJet.  Still no plans to use RyanAir though.

Decline of service

I find it funny how much people complain about flying.  I see it as more of situation of you get what you pay for.  If you would like to pay $19 for a two hour flight, then you may have to be cramped, forego a check in bag, and go without a snack.  If you want better service you are free to fly other airlines or pay for another class.  Airlines have simply been taking our actions of getting the cheapest fares and acting accordingly to try to reduce their costs.  Simply, you get what you pay for, but there are deals and there are always airline miles.

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Iceland: Lots of Hype

I have heard wonderful things about Iceland and I probably wouldn’t have gone, except for a friend strongly recommended that I tried to get there.  Well, Lisbon isn’t too far away, so I made it.  Now I’m back to tell you about it.


Everyone says Iceland is so expensive, but I did not find it to be that bad.  The groceries at Bonus were similarly priced to America, but restaurants were about double the amount.  Like Norway, gas was $8 a gallon.  However, the car rental was much cheaper at $160 for a manual Fiat 500.  It was a tiny car, but it was fine on the Ring Road.  We stayed in hotels for $70 to $150, but the expensive one was because it was remote.

We were able to get one flight free from the Merrill+ card.  The price of flights showed up as $500 when I searched from Lisbon to Iceland going through London.  However, for my wife’s ticket we booked two roundtrips, Lisbon to London and London to Iceland and the price came to only $300.  It is a risk because if the flight gets delayed you will miss

The total cost without flights was around $900 for 4 days for two people.  Not bad for a pricy place.

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Norway: Crazy Beautiful, Insanely Expensive

We just returned from a vacation to Norway.  It was amazing.  The entire time I felt like I was driving through Yosemite.  We were constantly going through tunnels and driving along fjords.  On both sides there were dozens of waterfalls.  It was a really great drive going along some narrow roads, hairpin turns, and even through the longest tunnel in the world!


There are probably ways to get to Norway affordably on Norwegian Air.  However, I had $1,000 in free flights from my Merrill+ card, so you can’t beat free.  We booked the flights on KLM and Wideroe from Lisbon to Molde and returned from Bergen.  Since it was under $1,000 I was able to use my points and pay nothing.


There was no cheap option for renting a car.  However, we did get lucky.  I booked the car and later found that I could get 10% off if I booked through Expedia.  That brought the cheapest option to $464.  I ended up choosing the $496 option for an Elite vehicle.  We got a manual Passat TDI Alltrack, my new favorite car.  It worked out really well because it is Diesel and gets over 40 MPG.  Diesel is cheaper than gas, but still $7 a gallon.  The fuel totaled to around $120. Continue reading →

Road Trip: Surprisingly Expensive

Last weekend we took a three-day road trip from Lisbon to Gibraltar and Seville.  I don’t think I would ever plan a trip to Gibraltar, but since I was able to drive there, why not?


The car is a crucial part of a road trip.  The difference between a miniature and a economy size was $1 a day, so I went for the economy one.  The automatic car was an additional $30 a day, so I went with the manual.  The only reason I learned to drive a stick was to save on rental cars.  The car was only $8 a day but had $57 in initial fees for crossing the border and the toll collection device.  If the trip were longer the price would have been really great as it would just be $8 for additional days.

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Cost of Living in Lisbon

After a summer in Austin, I’ve been back in Lisbon for a month.  I don’t budget, but I track my expenses on Mint, however I recently found a great new tool called Keep Thrifty that allows you to input your expenses.  Mint is great, but I have so many transactions that Keep Thrifty was a good way to isolate my Lisbon expenses.

The picture shows how the site nicely sums each category’s transactions.  In the picture it shows dollars because that’s the only option, but I spent Euros, so I’ll convert it in my totals below.


We got a great deal on housing through a platform for student housing.  It is located in Bairro Alto which is a good part of the city but can get really loud as there are lots of bars.  We have our own place with a living room, bedroom, kitchen, patio, and bathroom.  In the first five months we were in an apartment with 10 people in seven bedrooms and had to pay $648, so this is really a deal.

If you want to rent a room you could probably find something for $400, even in Lisbon.  Every other city in Lisbon is going to be even cheaper.

Total cost: $720

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This entry was posted in Living.