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Re: Tax loss harvesting in excess of $3000

CPT, VTIAX just distributed a dividend on Friday. Approximately 72% of that dividend is eligible to be counted as a Qualified Dividend (a lower tax rate than ordinary income). However, in order to classify those dividends as Qualified, you will need to hold those shares for 60 days. So technically, ...
by Artsdoctor
Sat Dec 20, 2014 11:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting in excess of $3000
Replies: 15
Views: 1003

Re: Tax loss harvesting in excess of $3000

Presumably you'll be selling some of your investments at a gain in the future during your retirement (congratulations), so if you're confident those gains will not be taxed, influence your Medicare premiums, or be subject to the net investment tax, there would be little advantage to tax-loss harvest...
by Artsdoctor
Fri Dec 19, 2014 10:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting in excess of $3000
Replies: 15
Views: 1003

Re: Better Costs: ETFs or Admiral Shares?

A bond ETF pays out dividends. The way this happens is not the same as with a stock ETF (or fund). With a stock ETF, the NAV drops by the same amount as the dividend (if the dividend is 1%, the NAV or trading price drops 1%). This is not the same with a bond ETF (or fund, for that matter). I think ...
by Artsdoctor
Tue Dec 16, 2014 6:30 pm
 
Forum: Investing - Theory, News & General
Topic: Better Costs: ETFs or Admiral Shares?
Replies: 53
Views: 3757

Re: Better Costs: ETFs or Admiral Shares?

Help me out here, because I want to make sure this is correct. With a bond ETF, the dividend paid at the end of the month will not be reinvested (if you choose to reinvest) the next day like a fund; SpringMan is correct that it will take 3-4 for the dividend to be reinvested. The price of the ETF ma...
by Artsdoctor
Tue Dec 16, 2014 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: Better Costs: ETFs or Admiral Shares?
Replies: 53
Views: 3757

Re: Better Costs: ETFs or Admiral Shares?

Assuming you reinvest dividends, keep in mind that for bond mutual funds that pay monthly dividends, these dividends will be reinvested overnight (T+1). Holding the same fund in the ETF share class will have their reinvested dividends out of the market for at least 3 days (T+3). At VBS it can take ...
by Artsdoctor
Tue Dec 16, 2014 10:45 am
 
Forum: Investing - Theory, News & General
Topic: Better Costs: ETFs or Admiral Shares?
Replies: 53
Views: 3757

Re: (Poll) Did you tap into emergency fund in the past 10 ye

Yes. I had a significant end-of-the-year bonus which was totally unexpected and I ultimately paid for the taxes out of my emergency fund. At the same time, I needed to replace the roof and went over budget on a bathroom remodel. It was quick and relatively painless, but it was helpful to have the mo...
by Artsdoctor
Sat Dec 13, 2014 12:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: (Poll) Did you tap into emergency fund in the past 10 years?
Replies: 54
Views: 3474

Re: Retirees: Withdrawals by time and amount

Don't be afraid to take more out of your tax-deferred account than your RMD, if it suits your needs. Take advantage of your low tax bracket, if it applies, if you think that you'll be in a higher tax bracket next year. You can easily convert some of the IRA money into a Roth if you want, again takin...
by Artsdoctor
Fri Dec 12, 2014 1:14 pm
 
Forum: Investing - Theory, News & General
Topic: Retirees: Withdrawals by time and amount
Replies: 36
Views: 3418

Re: Tax moves before year end

Vesper, First off, a "tax liability" presumably means that you're going to have to write a check, as opposed to getting a refund. If this doesn't involve a penalty, this is a GOOD thing. It means you haven't given the government an interest-free loan. Dividends and capital gains distributi...
by Artsdoctor
Fri Dec 12, 2014 1:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax moves before year end
Replies: 3
Views: 620

Re: Question for bond experts about Treasury STRIPS

Nomad, Great question, and the links above are superb at helping explain the nuances. Presumably, if you're building a ladder of STRIPS, you're buying something that you expect to hold until maturity. Both coupon and principal STRIPS are equally safe so you're not really going to be interested in th...
by Artsdoctor
Thu Dec 11, 2014 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: Question for bond experts about Treasury STRIPS
Replies: 14
Views: 1599

Re: Helping Wife After I'm Gone

FlyingAway, You'd be surprised what Vanguard can actually do. Not only can they manage your portfolio, if you'd like, but they can be a co-trustee (or even trustee) if you have a trust and need them to be. I was surprised by the services they provide, and the services are one-on-one. But you're righ...
by Artsdoctor
Thu Dec 11, 2014 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Helping Wife After I'm Gone
Replies: 14
Views: 2730

Re: Vanguard IRA Beneficiary Designation

Penny, Having just gone through estate planning again, I can share my experience, and I believe you might find it helpful. You can definitely name Person A as your primary beneficiary for your Traditional IRA and Person B as your primary beneficiary for your Roth IRA. You can have two primary benefi...
by Artsdoctor
Thu Dec 11, 2014 7:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard IRA Beneficiary Designation
Replies: 3
Views: 398

Re: Poll: Dividend income to match annual salary?

The only time our dividend income will surpass our salaries is when we retire or cut back to 1/4-time. If you include appreciation of principal, that was last year, and that is extremely unlikely to be repeated until retirement.
by Artsdoctor
Wed Dec 10, 2014 10:18 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Dividend income to match annual salary?
Replies: 39
Views: 3587

Re: Poll: Your Portfolio Tax Diversification

Interesting, but I suspect there will be innumerable variations. Don't forget about inherited tax-sheltered accounts.

65% taxable
25% tax-deferred
5% Roth
5% Inherited Roth
by Artsdoctor
Wed Dec 10, 2014 10:14 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Your Portfolio Tax Diversification
Replies: 45
Views: 2445

Re: HELOC as emergency fund

Emergency fund means different things to different people. Take a look at the Wiki here which will help you out.

https://www.bogleheads.org/wiki/Emergency_fund
by Artsdoctor
Thu Dec 04, 2014 12:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: HELOC as emergency fund
Replies: 19
Views: 1651

Re: Share your networth progression

This is easy. Only one thing, really: SAVE. From late 30s to early 50s, we tried to save about 35% of our gross income. In some years, it was much more. I worked overtime during the 2008-2009 collapse in order to save like a crazy bandit because I didn't know how long the meltdown would last and I w...
by Artsdoctor
Tue Dec 02, 2014 8:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Share your networth progression
Replies: 132
Views: 24129

Re: What % of your fixed-income is TIPs?

"And the 2013 update when TIPS were a big drag on performance: " For me, I've taken TIPS out of my asset allocation altogether and don't even pay attention to the performance. It's now a one-way street for me, in that I buy TIPS and will not sell them until maturity (unless a health disast...
by Artsdoctor
Tue Dec 02, 2014 8:25 pm
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3500

Re: What % of your fixed-income is TIPs?

All of my tax-advantaged accounts contain only fixed income and about 75-80% of the tax-advantaged space contains individual TIPS. 60% of our investment portfolio is in taxable accounts and I will not buy TIPS in an account which is not tax-advantaged. The fixed income in the taxable account is made...
by Artsdoctor
Tue Dec 02, 2014 8:20 pm
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3500

Re: [Poll] What's Your Tax Prep Strategy?

Both TurboTax and the CPA. Our income tax filing, both federal and state, is very complex. I use TurboTax to collect my data (it saves the CPA time) but most importantly, it teaches me how $100 change in dividends, pay, deductions, credits, etc., influences everything. It's through these exercises t...
by Artsdoctor
Tue Dec 02, 2014 8:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] What's Your Tax Prep Strategy?
Replies: 64
Views: 3481

Re: "2015 Tax Brackets, Standard Deduction, and Other Update

The above is correct. There is no inflation adjustment for this [the additional Medicare Tax and the Net Investment Income Tax]. It caused quite a stir when that became clear because one could argue that this was intentionally meant from the start to ensnare more and more people as time went on. Tha...
by Artsdoctor
Mon Dec 01, 2014 8:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: "2015 Tax Brackets, Standard Deduction, and Other Updates
Replies: 13
Views: 2512

Re: Tax deductions for donating a lot

Boy, if I tried deducting $5,000 in old clothes on my return, my accountant would have me get my head checked. That's an awful lot of non-cash contributions and might turn a few heads in the IRS office. You might want to just ask your accountant if a high number like this is worth the potential red ...
by Artsdoctor
Mon Dec 01, 2014 5:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax deductions for donating a lot
Replies: 20
Views: 1423

Re: Simplifying your finances: Practical tips

Yes! Simplication is a very, very noble goal. During working years, streamlining may be challenging but you can rollover 401k's or 403b's from previous employers at the very least. Whatever you do, don't forget to make sure your beneficiary designations are correct and up-to-date. If you do have to ...
by Artsdoctor
Sun Nov 30, 2014 8:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Simplifying your finances: Practical tips
Replies: 28
Views: 3998

Re: Life changing decision... advices needed!

Streptococcus, As you probably are seeing, primary care is becoming increasingly onerous from an administrative point of view. You can buffer yourself with administrative assistants but there's no doubt in my mind that primary care will become increasingly burdensome as bureaucratic requirements inc...
by Artsdoctor
Wed Nov 26, 2014 10:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Life changing decision... advice needed!
Replies: 91
Views: 10722

Re: Vanguard: "Updated capital gains estimates "

Gordon,

Even though the capital gains distribution for the Conservative Growth fund is high, over 95% is in long-term capital gains distributions. These gains can be offset by any capital losses you have (whereas, the short-term capital gains distributions cannot and must be counted as income).
by Artsdoctor
Wed Nov 26, 2014 9:44 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard: "Updated capital gains estimates "
Replies: 14
Views: 2045

Re: 30 Year TIPS Bond as a SPD Annuity Alternative?

TIPS are US government bonds so there is no credit risk. Before you buy anything, spend some time looking at the Wiki here. Buying a 30-year bond is not to be done lightly and I'd only recommend it if you're familiar with individual bonds. Good luck!
by Artsdoctor
Mon Nov 24, 2014 6:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: 30 Year TIPS Bond as a SPD Annuity Alternative?
Replies: 7
Views: 789

Re: 30 Year TIPS Bond as a SPD Annuity Alternative?

^ dbr, good point. Totally agree and the difference is an important one. Once a TIPS ladder is set up and the bonds are maturing, you're getting your inflation-adjusted income which is comprised of the principal and any on-going interest payments. But prior to the maturity date of the earliest bond,...
by Artsdoctor
Mon Nov 24, 2014 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: 30 Year TIPS Bond as a SPD Annuity Alternative?
Replies: 7
Views: 789

Re: Suggested retirement reading for 60 year olds

You may want to look at Retirement Portfolios: Theory, Construction and Management by Michael J. Zwecher. This book specifically addresses portfolio management for retirees and near retirees. It is not one of those books that assumes you are 22 years old and just starting. There are so many of thos...
by Artsdoctor
Sun Nov 23, 2014 10:42 am
 
Forum: Investing - Theory, News & General
Topic: Suggested retirement reading for 60 year olds
Replies: 25
Views: 3518

Re: 30 Year TIPS Bond as a SPD Annuity Alternative?

Mike, There is no benefit to buying TIPS at auction through Treasury Direct versus your retirement brokerage account: both are free. When you purchase TIPS in your taxable account, you will pay federal income tax on the interest which is paid every six months AND the appreciation in principal (phant...
by Artsdoctor
Sun Nov 23, 2014 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: 30 Year TIPS Bond as a SPD Annuity Alternative?
Replies: 7
Views: 789

Re: Why I will fund retirement with TIPs ladder no matter wh

^ I don't think this a fair comparison. The columnist invested in a TIPS fund. The argument for building a TIPS ladder is that it gives you a payout when the bond matures. No one advocating a life cycle approach to investment would ever advocate a TIPS fund. If you think you need an inflation-adjust...
by Artsdoctor
Sat Nov 22, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: Why I will fund retirement with TIPs ladder no matter what
Replies: 55
Views: 4932

Re: Why I will fund retirement with TIPs ladder no matter wh

^ Yes, no one knows. Take a look at the WSJ TIPS pricing page. It'll give you prices and yield everyday. At the top, you can also click on historical numbers and you can get a sense of how long people would have been waiting if they thought TIPS were too expensive 4-5 years ago. Of course, the oppos...
by Artsdoctor
Sat Nov 22, 2014 6:58 pm
 
Forum: Investing - Theory, News & General
Topic: Why I will fund retirement with TIPs ladder no matter what
Replies: 55
Views: 4932

Re: Why I will fund retirement with TIPs ladder no matter wh

making my decision to build a TIPs ladder to fund my retirement no matter what the real yield look like. Using only TIPS to fund a retirement is expensive. You would need to have a large portfolio. If you would enjoy spending more than the TIPS portfolio allows, you will probably give up a lot of l...
by Artsdoctor
Sat Nov 22, 2014 9:44 am
 
Forum: Investing - Theory, News & General
Topic: Why I will fund retirement with TIPs ladder no matter what
Replies: 55
Views: 4932

Re: lock-up for 20 years [20 year CD]

I would not. I use (an admittedly arbitrary) 20 basis points to justify going out each year on the yield curve for taxable fixed income. You can find a 10-year CD for around 3.2% so you're really not being compensated for going so far out on the yield curve. The exception might be that you're enteri...
by Artsdoctor
Wed Nov 19, 2014 6:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: lock-up for 20 years [20 year CD]
Replies: 21
Views: 2640

Re: Actual experience with California probate court?

So the thing to remember about probate is that every state is different. CA is very different from NY, for example. Some states, like New York, can have a relatively seamless probate period. California does not. There are a lot of variable in CA. If the estate is small, things could go smoothly. If ...
by Artsdoctor
Wed Nov 19, 2014 6:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Actual experience with California probate court?
Replies: 11
Views: 1443

Re: Tips Ladder Now or Not So Fast........

#Cruncher has a superb TIPS ladder spreadsheet if you're interested. The 2033-2039 is a problem. There are several ways around: you can buy enough 2032 bonds to take you through to when the 2040 bonds mature, you can split the difference by buying enough 2032s to last until 2035 and buy more 2040s t...
by Artsdoctor
Wed Nov 19, 2014 5:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tips Ladder Now or Not So Fast........
Replies: 9
Views: 1188

Re: Poll: Net cost of your checking account annually?

Nice job for people getting more than $100 per year without strings attached! We use the Vanguard Advantage account. Free checks, electronic transfers, they will mail checks free of charge, cash flow couldn't be easier, never had a problem with reliability, and certainly easy access. I was surprised...
by Artsdoctor
Wed Nov 19, 2014 4:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Net cost of your checking account annually?
Replies: 44
Views: 2808

Re: CA int municipal bond fund vs. Vanguard int muni fund

Ilan, I'm a CA resident and understand your question completely. First, consider your goal. The national fund is a fine fund and very diversified. If you feel you'd like to begin transferring some of it into the CA fund, then do it in stages. First, re-direct the dividends to the CA fund at least. S...
by Artsdoctor
Tue Nov 18, 2014 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: CA int municipal bond fund vs. Vanguard int muni fund
Replies: 32
Views: 2613

Re: Tips Ladder Now or Not So Fast........

N, I'm a little older than you and have been slowly building a 30-year TIPS ladder. The amount has been more or less decided for me just because of the amount we have in tax-deferred and Roth accounts. In reality, that made the process easier because it ultimately meant that my retirement income is ...
by Artsdoctor
Mon Nov 17, 2014 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tips Ladder Now or Not So Fast........
Replies: 9
Views: 1188

Re: is 3.20% Vanguard brokered CD best deal around?

Arthur, You should be paid for going further out on maturity. Take a look at some of the easy-to-obtain 5-year CDs since you will most likely find some that are paying more than 2.25%. Although everyone has their own way of calculating these things, I usually use 20 bp per year to justify going furt...
by Artsdoctor
Sat Nov 15, 2014 9:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: is 3.20% Vanguard brokered CD best deal around?
Replies: 48
Views: 4507

Re: Where would you invest 100k for a year?

You have specific need at a specific time. As others have said, this is not investing, it is savings. If you know exactly when you're going to need the money, you might pick a 1-year CD. If you want a little more flexibility regarding liquidity, you can open an online savings account (they're yieldi...
by Artsdoctor
Wed Nov 05, 2014 8:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where would you invest 100k for a year?
Replies: 17
Views: 1958

Re: Job advice - academic physician career move?

Two physician household here, and we're 13 years older than you. MDs in academics look around quite a bit, and it's almost expected. It's not unreasonable to move, especially when you're in your early and mid-40s, to further your career. Career advancement can certainly trump salary and I know plent...
by Artsdoctor
Wed Nov 05, 2014 7:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Job advice - academic physician career move?
Replies: 35
Views: 3349

Re: BND or a CD

Kevin, nice summary. It's not that Bill Bernstein is recommending holding off on funding your LMP with TIPS, I believe he's saying that with prices so high, he'd be reluctant to go all in at one time since it would be so expensive. In reality, very few people are going to build their LMP all at once...
by Artsdoctor
Wed Nov 05, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: BND or a CD
Replies: 119
Views: 10178

Re: What's worrying Vanguard's CEO

The regulars on this forum are level-headed and have relatively good memories. Certainly a lot of my colleagues at work, not so much. It's uncanny that so many people have forgotten the pain of the 2008-2009 meltdown and have only seen the last couple of years of stellar equity returns. You and I we...
by Artsdoctor
Tue Nov 04, 2014 7:52 pm
 
Forum: Investing - Theory, News & General
Topic: What's worrying Vanguard's CEO
Replies: 14
Views: 2795

Re: BND or a CD

dbr, Definitely share your concerns. Several things could be done. When in doubt, you could diversify: you could have a TIPS ladder that would take you to age 85, for example; you could purchase a deferred income annuity (say, when you're 70 to begin when you're 85); you could also combine your TIPS...
by Artsdoctor
Tue Nov 04, 2014 7:43 pm
 
Forum: Investing - Theory, News & General
Topic: BND or a CD
Replies: 119
Views: 10178

Re: What's worrying Vanguard's CEO

I'm going to be the contrarian here. I think this information is actionable. A lot of people, perhaps not on this forum, have seen a very substantial run-up in the portfolios over the 5 years. For those of us in our late 50s or early 60s, there may be a tendency to extrapolate from these returns and...
by Artsdoctor
Tue Nov 04, 2014 6:48 pm
 
Forum: Investing - Theory, News & General
Topic: What's worrying Vanguard's CEO
Replies: 14
Views: 2795

Re: Should I stop tracking past performance?

I used to track my performance and compared it to a few benchmarks with similar allocations. For me, it was a valuable experience. I learned that simpler is inevitably better and I developed confidence in my investing. It's not that my returns were so much better than the benchmark to which I was co...
by Artsdoctor
Tue Nov 04, 2014 6:38 pm
 
Forum: Investing - Theory, News & General
Topic: Should I stop tracking past performance?
Replies: 36
Views: 2221

Re: How to avoid AMT

Geez, tough crowd. The only way to really understand the AMT and minimize your overall tax is to play with a software program. It is essential to do this. As sscritic points out, one can easily be subject to the AMT with income over $400,000 and it doesn't really take a stingy high-income person to ...
by Artsdoctor
Mon Nov 03, 2014 7:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to avoid AMT
Replies: 51
Views: 9302

Re: Explaining muni bond spreads

Thanks for posting the article, Larry. Another factor that I don't think the authors addressed when it comes to examining the spread includes the heightened tax aversion in 2014 of high-income earners which also drove prices up. Munis might not have the "flight to quality" of treasuries, b...
by Artsdoctor
Mon Nov 03, 2014 10:18 am
 
Forum: Investing - Theory, News & General
Topic: Explaining muni bond spreads
Replies: 40
Views: 3750

Re: BND or a CD

MPT, Are you in the accumulation stage or in retirement? What's the role of fixed income in your investment portfolio? If you're in the middle of accumulation mode and all you're after from fixed income is a smoothing out of the equity volatility portion of your portfolio, you can use either or both...
by Artsdoctor
Fri Oct 31, 2014 4:10 pm
 
Forum: Investing - Theory, News & General
Topic: BND or a CD
Replies: 119
Views: 10178

Re: "Why Bother With Bonds" -- A Gem

Ganacel, TIPS are peculiar investments so your uncertainty surrounding them isn't unusual. There are several moving parts with individual TIPS. If you buy $10,000 at a TIPS auction and the coupon is 1%, you would think that your bonds would pay $100 a year in interest. Not so. If "inflation&quo...
by Artsdoctor
Fri Oct 31, 2014 8:51 am
 
Forum: Investing - Theory, News & General
Topic: "Why Bother With Bonds" -- A Gem
Replies: 33
Views: 8853

Re: Primary Doc Steering to Specialist Within Own Group

^ Now this is a better assessment. Your concerns have been evolving over several years, and your concerns are not only valid but shared by patients and doctors alike. Private practice is changing significantly, and it is the rare physician whose practice hasn't been impacted by the current environme...
by Artsdoctor
Fri Oct 31, 2014 8:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Primary Doc Steering to Specialist Within Own Group
Replies: 31
Views: 2513

Re: Primary Doc Steering to Specialist Within Own Group

Twenty years is an awfully long time. If you are seriously considering ending your relationship with your doctor after 20 years, it is hard to imagine that one incident like this would do it. I would venture a guess that you've not been entirely happy for a while. If that is not the case, why didn't...
by Artsdoctor
Thu Oct 30, 2014 7:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary Doc Steering to Specialist Within Own Group
Replies: 31
Views: 2513
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