Discuss Latest WCI Blog Post: Early Retirement Now with Dr. Karsten – Podcast #246

[The White Coat Investor]

An interview with Big ERN, the man behind Early Retirement Now, where he discusses the pro and cons of FIRE and how to figure out withdrawal rates.

The post Early Retirement Now with Dr. Karsten – Podcast #246 appeared first on The White Coat Investor - Investing & Personal Finance for Doctors.



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[Tangler]

BIG ERN!!!!!!!
Awesomeness!!!!!
Love this guy!!!!
thanks!!!!!!!!!!!!!!!!!!!

[BruinBones]

For some reason, I get more out of listening to Big ERN on his various podcast appearances than reading his site (maybe because he just summarizes what he has written rather than getting into the devil details). His appearance on your podcast did not disappoint. Thanks.

[VagabondMD]

For some reason, I get more out of listening to Big ERN on his various podcast appearances than reading his site (maybe because he just summarizes what he has written rather than getting into the devil details). His appearance on your podcast did not disappoint. Thanks.

I completely agree. It is easy to get lost in all of the math, tables, charts, etc. I think his overall message is excellent, and he speaks it very well. The executive summary works for me.

[8arclay]

Im very much looking forward to this one

[JBME]

On thing they talked about was robo advisors and tax loss harvesting. Let's say I'm using VTSAX and VFIAX to tax loss harvest. What if I own one of those in my 401k and the other in my Roth IRA? I though wash sale issues are only an issue for individuals across all their taxable accounts. Retirement accounts don't fit in this world. Is there a consensus on this?

[bovie]

Excellent. Big ERN for the win, as usual.

Much appreciated.

[VentAlarm]

I consider myself a pretty smart guy…..listening to ERN brings me back down to earth.

[Senator]

I consider myself a pretty smart guy…..listening to ERN brings me back down to earth.

This. Hearing him talk about options made me want to run the other way.

[Larry Ragman]

On thing they talked about was robo advisors and tax loss harvesting. Let's say I'm using VTSAX and VFIAX to tax loss harvest. What if I own one of those in my 401k and the other in my Roth IRA? I though wash sale issues are only an issue for individuals across all their taxable accounts. Retirement accounts don't fit in this world. Is there a consensus on this?

My best understanding is that the IRS issued a revenue (2008-5) ruling that wash sales apply across TIRA and Roth IRA. Conservative practice is to assume that rule would hold for 401k/403b. However, the ruling does not actually address the latter two cases and aggressive practice is to ignore 401k/403b holdings.

[Tangler]

On thing they talked about was robo advisors and tax loss harvesting. Let's say I'm using VTSAX and VFIAX to tax loss harvest. What if I own one of those in my 401k and the other in my Roth IRA? I though wash sale issues are only an issue for individuals across all their taxable accounts. Retirement accounts don't fit in this world. Is there a consensus on this?

I think big ERN is correct.
I think if you sell in a taxable and immediately buy in an IRA that is a wash sale. Otherwise people would do that. I think you have to sell in taxable and immediately buy something that is similar but not "substantially identical". You cannot sell VTSAX in taxable and immediately buy VTSAX in IRA.
But, I am no CPA, just a dumb doc.

[Tangler]

This. Hearing him talk about options made me want to run the other way.

Yes. You are playing with dudes like that. Brilliant dudes with lots of time to study and trade and experience.

Fun to learn about but No thanks.

[Nysoz]

Interesting guy and topics.

What's interesting is that he sells like 2 dte index puts which exposes him to a lot of gamma risk. Most people recommend selling 30-45 dte to decrease that risk. He also talks about just taking the loss and losing money occasionally, but what you can do is roll the option to 'never lose money'. He's also leaving money on the table by not selling the call side. But that's my approach and one size doesn't fit all.

He does make a point where a busy physician can't check trades frequently, especially with his frequent expirations. For the DIY person, setting up monthly trades shouldn't be too hard.

[The White Coat Investor]

On thing they talked about was robo advisors and tax loss harvesting. Let's say I'm using VTSAX and VFIAX to tax loss harvest. What if I own one of those in my 401k and the other in my Roth IRA? I though wash sale issues are only an issue for individuals across all their taxable accounts. Retirement accounts don't fit in this world. Is there a consensus on this?

IRAs definitely count. 401(k)s are a gray area. Nobody is actually watching them though.

[pit.alumni]

I thought he was interesting but not sure he’s truly “walking the talk”
He’s making his current income based on an option strategy, blogging, and teaching a course. He’s still working, he’s just found an area where he can mostly control how and when he’s working.
His option strategy has worked great in a prolonged bull market, doubtful it will work in a prolonged bear.
He’s relying on a health share ministry for his health insurance. I think they’re kind of like Medicare advantage plans, good until you’re really sick and want something more than bread and butter care.