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Re: 2.875% mortgage pay-off financially justifiable?

That interest rate is very attractive, and I suspect that you're itemizing which makes it even lower. You mentioned "investing in cash." Do you have the mortgage balance in cash? Or would you have to generate a capital gain to pay off the mortgage? How secure is your job? How much of an &q...
by Artsdoctor
Fri Jan 30, 2015 10:31 am
 
Forum: Personal Finance (Not Investing)
Topic: 2.875% mortgage pay-off financially justifiable?
Replies: 25
Views: 1981

Re: When to take a HSA distribution for past medical costs

The Medicare premium is based on your MAGI. Although the base rate might be $1200 it can easily cost three times that amount if you're working. And that premium is based on your previous 1040, for what that's worth (so if you and your spouse are high-income earners at ages 63 and 64, you'll be payin...
by Artsdoctor
Tue Jan 27, 2015 7:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: When to take a HSA distribution for past medical costs
Replies: 25
Views: 1811

Re: Where to hold $ for less than 1 year

It's hard to imagine making a lot of money on a one-year investment which you're going to keep safe. An online savings account is going to be your best option. The Ally rate of 0.9% isn't all that much lower than Barclays or Citi but you'll be able to find something that's FDIC-insured for 1% and ch...
by Artsdoctor
Tue Jan 27, 2015 7:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where to hold $ for less than 1 year
Replies: 4
Views: 703

Re: Get 17% in russian savings account?

So this "investment option" is about as far away from the Bogleheads as you're going to get, but why not walk through the logic one step at a time. Fixed income is generally an investment vehicle which is considered safe. "Bonds are for safety." I think that we can all agree that...
by Artsdoctor
Mon Jan 26, 2015 6:49 pm
 
Forum: Investing - Theory, News & General
Topic: Get 17% in russian savings account?
Replies: 49
Views: 4422

Re: When to take a HSA distribution for past medical costs

^ Sure, that's possible. But many of use are using an HSA as an investment account, not a savings account. If invested properly, you benefit from tax-free gains from pre-tax assets and ultimately from tax-free withdrawals. If you can afford it, don't touch it for many, many years and let it grow.
by Artsdoctor
Sun Jan 25, 2015 9:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: When to take a HSA distribution for past medical costs
Replies: 25
Views: 1811

Re: When to take a HSA distribution for past medical costs

So, if you were to die without emptying out your HSA, the HSA will pass to your spouse as long as your spouse is named as the beneficiary (you really want to check to make sure this has been done). Your spouse will then be able to use it as his/her HSA. If there is no spouse or if your spouse dies, ...
by Artsdoctor
Sun Jan 25, 2015 9:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: When to take a HSA distribution for past medical costs
Replies: 25
Views: 1811

Re: TIPs, what do they really add

Every year, from age 65 to age 85, I will have $X maturing with individual TIPS. This will not be the full portfolio payout, but it's awfully nice knowing that I'll have a certain amount without significant regard to inflation. I realize that one person's inflation rate is different than another's, ...
by Artsdoctor
Sun Jan 25, 2015 9:00 pm
 
Forum: Investing - Theory, News & General
Topic: TIPs, what do they really add
Replies: 33
Views: 2838

Re: Poll: Locating deceased person's assets

When my dad died, we found that he had made everything fully accessible and there were no surprises. It was a major gift and I'll always appreciate him for that--and I'm doing the same.
by Artsdoctor
Sun Jan 25, 2015 8:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Locating deceased person's assets
Replies: 33
Views: 2249

Re: When to take a HSA distribution for past medical costs

A paycheck is a very powerful thing. I'm not touching my HSA until the paychecks stop or unless I'm diagnosed with an illness which will chew up an awful of medical expense. We will be "penalized" tremendously with Medicare premium "surcharges" once we become eligible for Medicar...
by Artsdoctor
Sun Jan 25, 2015 8:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: When to take a HSA distribution for past medical costs
Replies: 25
Views: 1811

Re: HSA... any receipt savers?

So the receipts are a back-up plan. You may not even need them if you're investing for future medical expenses. If I had to guess, I'd say that my invested HSA money will ultimately be used for expenses in real time while in retirement. However, it's nice to know that I can always reimburse myself f...
by Artsdoctor
Wed Jan 21, 2015 7:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA... any receipt savers?
Replies: 188
Views: 8314

Re: Fidelity Donor Advised Fund

The question I have is I know Fidelity has a minimum amount to start the fund is 5K. Once it is in account you designate where to invest and then contribute to charities on your own time. My question is as folows: 1. I realize for example if I start the DAF this year with a 5K deposit, I can then d...
by Artsdoctor
Sun Jan 18, 2015 7:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity Donor Advised Fund
Replies: 50
Views: 3388

Re: Net Worth Survey, 2015 Edition

Superb compilation of data. Impressive group we have here!
by Artsdoctor
Fri Jan 16, 2015 1:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Net Worth Survey, 2015 Edition
Replies: 132
Views: 21886

Re: How to transfer estate without including tax man

Wricha,

You really have been given excellent advice by bsteiner, one of the most well-respected lawyers on the forum. You might trying PMing him and see if he's in your neighborhood in FL. This is really something that can be done very well by a good estate attorney.
by Artsdoctor
Wed Jan 14, 2015 6:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2401

Re: Parents spending on grandkids

If they're set financially, what they do with their money in entertaining is none of your business with one exception: if they ultimately run out because they've not even tried to be responsible and come after you to make up their shortfall, then it is your business. Provided that's not the case, le...
by Artsdoctor
Wed Jan 14, 2015 6:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Parents spending on grandkids
Replies: 23
Views: 1874

Re: Asness: Why individual bonds are no safer than bond fund

^ I'm trying hard to imagine an 8-10% hole that will be difficult to get out of. Is this a rough estimate on how much one would be behind by buying short-term bonds as opposed to intermediate-term bonds? If so, I'm not sure that's a fair argument. We've all been surprised at the length of this low i...
by Artsdoctor
Tue Jan 13, 2015 8:20 pm
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: How to transfer estate without including tax man

So in reality, your question can't really be answered based on the amount of information you've given. There are many types of assets, each with its inheritance rules. Real estate, taxable account, IRAs, Roths, social security benefits (which wouldn't apply to a non-spouse or child). The way a spous...
by Artsdoctor
Tue Jan 13, 2015 7:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2401

Re: Downside of putting condo in a trust

Estate planning is state-dependent. Be weary of asking questions pertaining to trusts on a forum because a person's perspective in CA will be completely different than a person's perspective in OH.

Probate can be a snap in some states, and it can be a long, drawn-out slog in another.
by Artsdoctor
Tue Jan 13, 2015 7:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Downside of putting condo in a trust
Replies: 29
Views: 2836

Re: Asness: Why individual bonds are no safer than bond fund

Therefore, Bernstein recommends purchasing only individual TIPS for redemption at maturity. I assume this means then that TIPS are never sold for re-balancing purposes if one follows this advice? And that in that case you just assume their value represents a fixed percent of your portfolio regardle...
by Artsdoctor
Tue Jan 13, 2015 7:15 pm
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: What was your costliest investment mistake?

It wasn't that "costly" because I was just starting out. But buying Fidelity Select funds with a load (was it 5%?) in the 1980s was one of the stupidest things I've done. The other ridiculous thing that I did was buy individual tech stocks in the late 1990s because "everyone else was ...
by Artsdoctor
Tue Jan 13, 2015 5:22 pm
 
Forum: Investing - Theory, News & General
Topic: What was your costliest investment mistake?
Replies: 119
Views: 9604

Re: How much in I bonds do you own?

I've thought many times about purchasing I-bonds, but I find the Treasury Direct web site to be a mess. I would not want to leave my wife trying to deal with it if something happened to me. If I could buy them through a broker, or even in paper form at a bank, I'd be right there. But Treasury Direc...
by Artsdoctor
Tue Jan 13, 2015 5:14 pm
 
Forum: Investing - Theory, News & General
Topic: How much in I bonds do you own?
Replies: 29
Views: 3118

Re: How to transfer estate without including tax man

That's a very, very high legal bill. Did I read $14,000 correctly? There is a huge difference between passing your estate to your spouse and to a non-spouse. If your estate is sizeable, you do run the risk of gift taxes if you are "too generous" during your life (if your estate is "ov...
by Artsdoctor
Tue Jan 13, 2015 5:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2401

Re: True cost of selling high ER funds

So if you sold today, I would look to really tax-loss harvest over the course of this year in order to offset some of those gains. No one knows what the market will bring, but if there's increased volatility, you'll find some opportunities to potentially save some bucks in gains taxes.
by Artsdoctor
Tue Jan 13, 2015 12:33 am
 
Forum: Investing - Theory, News & General
Topic: True cost of selling high ER funds
Replies: 5
Views: 828

Re: Asness: Why individual bonds are no safer than bond fund

^ Stlutz, I think you've offered a very pragmatic assessment about the pitfalls of putting together a LMP in practice. However, I don't think that putting together a TIPS ladder is all that difficult, if you're inclined to do it. For me, gradually putting together a TIPS ladder that matures between ...
by Artsdoctor
Tue Jan 13, 2015 12:30 am
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: Asness: Why individual bonds are no safer than bond fund

I think he softens a bit when it comes to his #10. In reality, the whole article is a rant, but the bond section is a small tirade, by his own description. He really leaves out the whole TIPS market and in his footnote, he gives reasons why investors may logically prefer one form of fixed income ove...
by Artsdoctor
Mon Jan 12, 2015 8:07 pm
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: True cost of selling high ER funds

Sorry, N, I am probably missing something in your calculation. If you have $100,000 in capital gains, you'll owe taxes on that sale alone. Can you estimate how much you'd pay in capital gains tax on that amount (short-term, long-term, offset by losses, state tax, etc.)?
by Artsdoctor
Mon Jan 12, 2015 7:48 pm
 
Forum: Investing - Theory, News & General
Topic: True cost of selling high ER funds
Replies: 5
Views: 828

Re: Asness: Why individual bonds are no safer than bond fund

You put quite a bit of work into that synopsis. Nice job.

There's plenty of room for differences of opinion on the Forum.
by Artsdoctor
Mon Jan 12, 2015 7:35 pm
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: Poll - How much is enough / what's your number?

There are also people who anticipate a nice pension, making the amount they need less.

Unfortunately, I'm not one of those lucky people.
by Artsdoctor
Mon Jan 12, 2015 6:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll - How much is enough / what's your number?
Replies: 79
Views: 7549

Re: Asness: Why individual bonds are no safer than bond fund

^ This is the crux of the LMP argument. If you don't agree with it, then go for the total return approach. There's certainly nothing wrong with that. For me, I know that I require X per year for fundamentals. I like knowing that it'll be there. It's not the majority of what I anticipate liquidating ...
by Artsdoctor
Mon Jan 12, 2015 6:49 pm
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: Fidelity Donor Advised Fund

^ Absolutely. Yet another reason to use the Specific Lot ID method. You donate, or "unload," the lots with the LOWEST cost basis. If you'd like, you can then even re-purchase the same fund with new money, thereby resetting your basis, if your asset allocation requires it.
by Artsdoctor
Mon Jan 12, 2015 6:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity Donor Advised Fund
Replies: 50
Views: 3388

Re: Asness: Why individual bonds are no safer than bond fund

So Asness is focused on only one aspect of the bond world in his rant: the rolling nominal bond ladder. He mentions nothing about TIPS and he mentions nothing about spending the bond when it matures. In fact, he leads one to believe that bonds inevitably are worth less when they mature due to inflat...
by Artsdoctor
Mon Jan 12, 2015 6:21 pm
 
Forum: Investing - Theory, News & General
Topic: Asness: Why individual bonds are no safer than bond funds
Replies: 59
Views: 2940

Re: Fidelity Donor Advised Fund

That's our DAF. Could not be easier to use. Also could not be easier to transfer over appreciated mutual fund shares from your main Fidelity account. Would be difficult to go back to writing out checks again!
by Artsdoctor
Mon Jan 12, 2015 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity Donor Advised Fund
Replies: 50
Views: 3388

Re: Poll: Do you own I Bonds?

I'm not so sure it's a trap. I acknowledge that the inflation rate is backwards looking, and I definitely acknowledge that no one can predict where rates are going and where income tax brackets will be in the future. The fact is that everyone is limited to $10,000 per year in I-bond purchases so the...
by Artsdoctor
Mon Jan 12, 2015 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Do you own I Bonds?
Replies: 62
Views: 5470

Re: Poll: Do you own I Bonds?

But everyone's situation is different. Some of us have run out of space in tax-advantaged accounts. If you want inflation protection or even an emergency fund, I-bonds can serve as an adjunct. Many here are using Barclays Online Savings account, including me. It's earning 1% each year which is taxab...
by Artsdoctor
Sun Jan 11, 2015 10:29 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Do you own I Bonds?
Replies: 62
Views: 5470

Re: Why is it wrong to think individual bonds are safer vs f

This topic will probably be debated. During your accumulation years, I would be hard-pressed to beat a bond fund with an average maturity which is far less than the time you're going to need your money. But during retirement, I'd also be very hard-pressed to recommend bond fund to someone who's goin...
by Artsdoctor
Sat Jan 10, 2015 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is it wrong to think individual bonds are safer vs funds
Replies: 30
Views: 1985

Re: Bogleheads: Wealth and Happiness

I always enjoy learning. Studying personal finance and seeing how it's applied on this forum is very gratifying and rewarding. But by far the most important thing is having the financial security to now share the wealth with others, to start cutting back at work, and to start spending time with fami...
by Artsdoctor
Sat Jan 10, 2015 3:52 pm
 
Forum: Personal Consumer Issues
Topic: Bogleheads: Wealth and Happiness
Replies: 16
Views: 2261

Re: Poll: Do you own I Bonds?

I arranged for my parents to buy as many I-bonds as possible when the real rate was so high several years ago. However, I was always convinced that my tax bracket would make them a poor investment for me. My way of thinking has changed. I'm now transitioning into a true capital preservation mode and...
by Artsdoctor
Fri Jan 09, 2015 1:41 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Do you own I Bonds?
Replies: 62
Views: 5470

Re: Poll: Favorite Coping Strategies for Volatility

If there's moderate volatility, shrug it off and even rebalance. If there's horrific volatility (like in 2000-2001 and 2008-2009), write down what you're thinking and how you're feeling. You wouldn't believe how useful it is to re-read those things years later. And if you're smart, you might even do...
by Artsdoctor
Wed Jan 07, 2015 8:27 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Favorite Coping Strategies for Volatility
Replies: 41
Views: 2653

Re: Reinvest Dividends and Capital Gains in Taxable Account

Caring, I think that feeding the cash account with dividends from bond and equity funds is exactly the right thing to do. The question that you didn't ask pertains to the suitability of the bond fund for your 84-year-old mom. Because fixed income returns are so low, I'm going to guess that she won't...
by Artsdoctor
Wed Jan 07, 2015 6:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends and Capital Gains in Taxable Account
Replies: 7
Views: 1013

Re: HSA not associated with employer and FSA

Take a look at the IRS publication. It'll give you the answers you need. The bottom line is that MOST people who have an FSA will not be able to open an HSA, although the publication will walk you through everything.

http://www.irs.gov/pub/irs-pdf/p969.pdf
by Artsdoctor
Wed Jan 07, 2015 3:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA not associated with employer and FSA
Replies: 11
Views: 1126

Re: When the stars align...

My luckiest story by far was rounding in the hospital in late 1999 when one of the cleaning staff asked what I thought of Tyco. That was when everyone was screaming "this time it's different" and throwing money at the market (growth stocks in particular) would return to you with massive ga...
by Artsdoctor
Mon Jan 05, 2015 7:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: When the stars align...
Replies: 4
Views: 848

Re: Pre-tax Retirement Accounts and Pensions in Networth

Very thoughtful post. One thing that you might want to follow. An inherited IRA and any Roth may have changes coming down the pike. I can only make decisions based on current tax law, but I've learned to be flexible. Instead of the current (non-spouse) inherited IRA stretch potential, a 5-year maxim...
by Artsdoctor
Mon Jan 05, 2015 7:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-tax Retirement Accounts and Pensions in Networth
Replies: 24
Views: 2378

Re: give me a reason [to add TIPS]

Buying any treasury investment will be expensive because there is no default risk. You could potentially put your entire retirement savings in STRIPS and call it a day but it would cost a fortune--and even STRIPS are not inflation-protected. There is no investment without risk. TIPS come close. Ther...
by Artsdoctor
Mon Jan 05, 2015 7:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: give me a reason [to add TIPS]
Replies: 22
Views: 2577

Re: Turning 66 this year. Retirement looming and concerned

Take a very close look at those expenses. I bet that there will be plenty fat you can trim. And are some of those expenses going to end soon (like a mortgage)? I think you're too precariously perched to fund your needs at this point. Can you downsize to a smaller house by any chance? Are you living ...
by Artsdoctor
Mon Jan 05, 2015 6:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Turning 66 this year. Retirement looming and concerned
Replies: 15
Views: 1539

Re: give me a reason [to add TIPS]

There's a big difference between individual TIPS and a TIPS fund, especially if you're expecting to actually spend the money you've invested in TIPS someday. Individual TIPS have a maturity date which you can plan for; there's no credit risk and there's no inflation risk. A TIPS fund does not provid...
by Artsdoctor
Mon Jan 05, 2015 6:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: give me a reason [to add TIPS]
Replies: 22
Views: 2577

Re: Pre-tax Retirement Accounts and Pensions in Networth

Harmony, I can definitely understand trying to calculate how much will be left in order to care for a child with special needs. That goes to heart of estate planning. I'm just not sure how the concept of net worth figures into that since life insurance is probably one of the planning tools you might...
by Artsdoctor
Mon Jan 05, 2015 5:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-tax Retirement Accounts and Pensions in Networth
Replies: 24
Views: 2378

Re: Turning 66 this year. Retirement looming and concerned

Clutchied, Of course everyone's finances are different. As a general rule--and this is very general--a $1MM portfolio should generate $40,000 annually to start for you. You stated that your expenses are in the $150,000 per year range. I'm not sure how to make those numbers fit. How have you been ant...
by Artsdoctor
Mon Jan 05, 2015 5:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Turning 66 this year. Retirement looming and concerned
Replies: 15
Views: 1539

Re: Help! Capital Gains on a Mutual Fund??? Tax Question

When you look at tax-efficiency, you're also going to look at predictability. If you're buying index funds, you pretty much estimate that your Total Stock found is going to pay around 2% and the dividends are going to be qualified. Total International is going to pay around 3% and it will generally ...
by Artsdoctor
Sat Jan 03, 2015 8:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help! Capital Gains on a Mutual Fund??? Tax Question
Replies: 13
Views: 1412

Re: Pre-tax Retirement Accounts and Pensions in Networth

It's not so much "bragging" to others as much as it is seeing a number which can be quite large but is not really actionable. Does it really matter how much your house is worth today if you're not going to sell it? What difference could that possibly make if you're 35 or 40 years old? You ...
by Artsdoctor
Sat Jan 03, 2015 8:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-tax Retirement Accounts and Pensions in Networth
Replies: 24
Views: 2378

Re: Help! Capital Gains on a Mutual Fund??? Tax Question

Deep Thoughts, Mutual funds may pay out dividends, short-term capital gains distributions, and long-term gains distributions. You can see a history of these payouts on Morningstar. The mutual fund manager must pay out these distributions and it doesn't matter how long you've held the fund. This has ...
by Artsdoctor
Sat Jan 03, 2015 8:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help! Capital Gains on a Mutual Fund??? Tax Question
Replies: 13
Views: 1412

Re: Poll: How long have you been with your current AA?

^ This also made me start thinking as well, as I went to the beginning of my Quicken program to the 1990s. When I discovered the Diehards on Morningstar and later finished reading Swenson's book, I ultimately settled on a 60/40 split. That was a little more than 10 years ago and I was in my mid-40s....
by Artsdoctor
Sat Jan 03, 2015 7:49 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: How long have you been with your current AA?
Replies: 44
Views: 2475
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