Search found 2842 matches

by House Blend
Fri Jul 03, 2015 12:34 pm
Forum: Investing - Theory, News & General
Topic: What is the Duration of Your Bond Portfolio? And Why?
Replies: 50
Views: 2721

Re: What is the Duration of Your Bond Portfolio? And Why?

TIAA Traditional Annuity in a SRA/GSRA is liquid and has zero duration. TIAA Traditional Annuity in a RA/GRA has a duration of 4.5 years because of the 10-year withdrawal rule; while the quoted value of the fund may not fall when rates rise, you must continue to earn the lower rate over a 10-year w...
by House Blend
Tue Jun 30, 2015 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: TLH and wash sale with living trust and across accounts
Replies: 2
Views: 251

Re: TLH and wash sale with living trust and across accounts

1. For an IRA, yes. For a 401(k), unclear. I don't think there is a definitive answer available. FWIW, I do not hold shares of TSM in my 401(k) for exactly this reason. 2. Yes. If you TLH a muni fund, all of the usual wash sale rules apply. In addition, you would prefer not to sell shares purchased ...
by House Blend
Sun Jun 28, 2015 8:05 am
Forum: Personal Finance (Not Investing)
Topic: SS bennies
Replies: 23
Views: 3150

Re: SS bennies

So the year of zero income would have been less than 10k. My income has been 10x that for the past decade. Dollar wise, how much difference would a year of zero income, when I was literally just above minimum wage, make ? I actually do still have all of my tax returns :) It's a bit messy, and depen...
by House Blend
Fri Jun 19, 2015 10:30 am
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1582

Re: IRS "Safe Harbor" & withholding vs. 1099 income

There is an exception that seems to have been glossed over in this thread. If you do make estimated tax payments, then calculating whether you're in one of the safe harbors is more complicated. In particular, simply having made payments totalling 100%/110% of last year's tax liability is not suffic...
by House Blend
Fri Jun 19, 2015 9:32 am
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1582

Re: IRS "Safe Harbor" & withholding vs. 1099 income

There is an exception that seems to have been glossed over in this thread. If you do make estimated tax payments, then calculating whether you're in one of the safe harbors is more complicated. In particular, simply having made payments totalling 100%/110% of last year's tax liability is not suffici...
by House Blend
Thu Jun 18, 2015 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Selling Fund Before Dividend Distribution & Buying it Right Back to Avoid Withholding Tax
Replies: 16
Views: 2434

Re: Selling Fund Before Dividend Distribution & Buying it Right Back to Avoid Withholding Tax

Let's take Vanguard Small-Cap Value ETF (VBR) as an example - let's ignore the smaller distribution and only take he $1.845 distribution into account. FWIW, using VBR as an example is a bit problematic here. Vanguard has announced that this fund is switching to a quarterly distribution schedule. I ...
by House Blend
Wed Jun 17, 2015 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Communicating with the IRS
Replies: 3
Views: 647

Re: Communicating with the IRS

tried calling the IRS but as expected was never able to get a human. All I really want is to hear "we got your documentation and you're all set" so I don't have to stress out about this. Has anyone experienced anything similar to this - if so, how did you get confirmation that the issue w...
by House Blend
Wed Jun 17, 2015 8:03 pm
Forum: Investing - Theory, News & General
Topic: TIAA Real Estate Account as non-403(b) deferred annuity?
Replies: 10
Views: 792

Re: TIAA Real Estate Account in taxable?

Does anybody want to speculate why TIAA-CREF does not offer the TIAA Real Estate account (TREA) to the general retail investor? If the unwashed hordes could buy TREA in a deferred annuity, I think the biggest problem might be to scale up their strategy. They've found ~100 suitable properties. Could...
by House Blend
Wed Jun 17, 2015 10:59 am
Forum: Investing - Help with Personal Investments
Topic: 403b Loan from TIAA CREF [Portfolio help]
Replies: 2
Views: 444

Re: 403b Loan from TIAA CREF [Portfolio help]

You are paying yourself interest on the loan, so even if the reason for the drop in payment from $400 to $30 is to stretch the process out, you're the one being enriched by any extra interest paid. Edit : No. Looks like the above statement is completely wrong, at least according to the previous thre...
by House Blend
Tue Jun 16, 2015 10:05 am
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7227

Re: tIRA's RMDs causing increasing tax concerns

In addition to the factor epsilon-delta mentioned, here's another reason why a Roth conversion might still be worthwhile. If SS income puts you in the zone where the marginal tax cost of a Roth conversion is 27.75%, and you will be in the 25% bracket when RMDs start, then it's possible that the las...
by House Blend
Tue Jun 16, 2015 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Mom's Employer - Lots of Issues
Replies: 19
Views: 2378

Re: Mom's Employer - Payroll Mistakes (and other issues)

If the pay was direct deposited, be prepared for the possibility that all of the incorrect deposits will be yanked out of the account, without notification or permission from her. Fun things could happen if there are insufficient funds. I saw this happen first hand, many years ago, when I temporaril...
by House Blend
Mon Jun 15, 2015 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone have multiple IRAs through different brokerage firms?
Replies: 25
Views: 1997

Re: Anyone have multiple IRAs through different brokerage firms?

Yes, per person, but there are restrictions based on income and if you are covered by a plan at work. As I recall if you are covered by a plan at work you cannot deduct a tIRA. Not true. Even if you are covered by a retirement plan at work, your 2015 IRA contribution is fully deductible if your mod...
by House Blend
Mon Jun 15, 2015 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7227

Re: tIRA's RMDs causing increasing tax concerns

It appears that a Roth Conversion would not be advisable in this case if the marginal tax rate to convert is higher than the 25% tax rate expected after age 70.5. The marginal tax rate related to Social Security taxation might be 22.5% or 27.75%. Since we are talking about filling the 15% bracket, ...
by House Blend
Mon Jun 15, 2015 9:39 am
Forum: Personal Finance (Not Investing)
Topic: History of taxes
Replies: 5
Views: 984

Re: History of taxes

I recently stumbled across this website with historical rates for long-term capital gains: http://taxfoundation.org/article/federal-capital-gains-tax-rates-1988-2013. Is this correct that they only go back to 1988? If so, I assume before 1988 capital gains were taxed no differently than any other i...
by House Blend
Sun Jun 14, 2015 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7227

Re: tIRA's RMDs causing increasing tax concerns

Electron, As I pointed out in my previous post, the tax cost of a Roth conversion depends on your marginal tax rate for ordinary income (and how it changes as you increase the conversion amount). Simply having taxable income in the 15% bracket does not mean that your marginal rate is 15%. Now that y...
by House Blend
Sun Jun 14, 2015 10:39 am
Forum: Investing - Help with Personal Investments
Topic: TIAA CREF annual policyholder vote
Replies: 5
Views: 739

Re: TIAA CREF annual policyholder vote

Despite the language on the "ballot", it's absurd to call this a vote. It's a survey at best. The TIAA Board is going to continue doing whatever they please.
by House Blend
Sun Jun 14, 2015 10:34 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 931
Views: 147563

Re: What Movie Have You Recently Watched?

Kill the Messenger. Very good drama about investigative journalism. "Based on a true story" (i.e., exaggerated for maximum manipulative effect).

Not at the level of All the President's Men, but still compelling.
by House Blend
Sun Jun 14, 2015 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Variable Annuity - Does it become part of inheritance?
Replies: 38
Views: 2780

Re: Variable Annuity - Does it become part of inheritance?

IRegrettably, you will just need to ask your folks, and they may not know or understand. If you can glance at one of their statements it will probably be clear. Also if possible take a look at tax documents, especially Forms 5498 and 1099-R. Note that if it is an ANYA (Annuity Not Yet Annuitized) i...
by House Blend
Sat Jun 13, 2015 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: TLH Int Term Tax-Exempt --> CA Int Term Tax-Exempt?
Replies: 4
Views: 482

Re: TLH Int Term Tax-Exempt --> CA Int Term Tax-Exempt?

That's a peculiar choice for a non-CA resident. You are paying the premimum for a concentrated risk, and not reaping the reward for taking that risk (no CA taxes). I would TLH into Limited Term, or Long Term, or a combination of the two if you want to match average duration. Or just go with another ...
by House Blend
Sat Jun 13, 2015 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7227

Re: tIRA's RMDs causing increasing tax concerns

If I do a Roth conversion in the 15% marginal income tax bracket to avoid paying taxes at 25% when RMDs kick in, I figure I'd need a time horizon of at least 8 years before breaking even on that move. ($15 @ 7% / yr. increases to $25 in about 8 years?). That's of course if the portfolio generates a...
by House Blend
Fri Jun 12, 2015 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional and Rising Interest Rates
Replies: 49
Views: 3149

Re: TIAA Traditional and Rising Interest Rates

TIAA hasn't "locked" your 4.1% (or, for current investors 3.75%) for you during those nine years. They could drop to their contractual minimum of 3% at any time they choose. I thought that this was incorrect but after reading TIAA's website, you may be correct. "Additional amounts ar...
by House Blend
Fri Jun 12, 2015 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional and Rising Interest Rates
Replies: 49
Views: 3149

Re: TIAA Traditional and Rising Interest Rates

I contributed to T-C for forty years. Good rule of thumb is to put a percentage into Trad in your GRA that you are comfortable annuitizing for monthly income when you get older. Not a bad rule of thumb if you are sure you will be comfortable annuitizing with TIAA in the future. I know they have bee...
by House Blend
Fri Jun 12, 2015 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional and Rising Interest Rates
Replies: 49
Views: 3149

Re: TIAA Traditional and Rising Interest Rates

They could drop to their contractual minimum of 3% at any time they choose. Really? I thought they could drop anything above the contractual minimum any time they choose, but they have to give you at least the contractual minimum. That is precisely what I said. They could drop to their contractual ...
by House Blend
Fri Jun 12, 2015 10:11 am
Forum: Personal Finance (Not Investing)
Topic: What should my wife do if I die early? [was: Vanguard PAS as Plan B]
Replies: 18
Views: 2376

Re: What should my wife do if I die early? [was: Vanguard PAS as Plan B]

FWIW, I have seen what can happen when Spouse 1 handles all of the investing and retirement accounts and Spouse 2 takes no interest (and has no aptitude for it). Then Spouse 1 dies at a young age. Dad was Spouse 1 and Mom was Spouse 2. Short synopsis: Mom's best friend just happens to be married to ...
by House Blend
Thu Jun 11, 2015 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional and Rising Interest Rates
Replies: 49
Views: 3149

Re: TIAA Traditional and Rising Interest Rates

^Well, I suppose she should click on that entry--it's a link, not just text.
And be sure to RTFF (read the fine footnotes).
by House Blend
Thu Jun 11, 2015 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional and Rising Interest Rates
Replies: 49
Views: 3149

Re: TIAA Traditional and Rising Interest Rates

4) Click the + sign, it will expand to give the guaranteed rate as well as the crediting rate of every vintage. Yes, that works if you already have TIAA traditional, but if you have your measly ~$100 in a money market account and want to get more info to see if you should exchange into TIAA traditi...
by House Blend
Wed Jun 10, 2015 12:28 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 931
Views: 147563

Re: What Movie Have You Recently Watched?

This current prison break in the news has me wanting to catch a prison movie. The prison in the news was featured in a movie, but now the name of it escapes me. BFG More than one commentator has compared the escape to Shawshank Redemption . (But it wasn't filmed there.) Plenty of other good ones co...
by House Blend
Wed Jun 10, 2015 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Does VWITX = VBTLX
Replies: 4
Views: 393

Re: Does VWITX = VBTLX

Reasons to hold VWITX: 1. You are in a high tax bracket, and have decided that the risk and tax tradeoffs are such that you prefer to have more bonds in taxable and fewer bonds in tax-advantaged accounts. Or, 2. All of your tax-advantaged accounts are filled with ordinary bond funds such as VBTLX, y...
by House Blend
Wed Jun 10, 2015 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Please help me understand tax-exempt bond funds
Replies: 12
Views: 1588

Re: Please help me understand tax-exempt bond funds

CA now has a 50% threshold for a muni bond fund. This is from the Bogleheads Wiki: " All interest from tax-exempt mutual funds is taxed unless at least 50% of the assets are in bonds not taxed by CA" which agrees with TurboTax. This is a relatively new requirement and it is why 100% of th...
by House Blend
Tue Jun 09, 2015 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: When can an early FI person drop disability insurance?
Replies: 10
Views: 1137

Re: When can an early FI person drop disability insurance?

I pretty much see things the same way as cherijoh If you are FI with no debt, DI (disability insurance) is not like buying a lottery ticket. IMO, part of the calculation should be that if you become permanently disabled, your expenses may be permanently higher relative to whatever projections you ma...
by House Blend
Mon Jun 08, 2015 10:17 am
Forum: Investing - Help with Personal Investments
Topic: avoiding capital gains via reducing taxable income
Replies: 5
Views: 799

Re: avoiding capital gains via reducing taxable income

The back story is that my fiancé has $11,000 in VTI within a taxable brokerage account. $4,500 of this long term capital gains. Currently her yearly salary as resident physician is ~$64,000 year. However, she has access to a 457 and 403b plan and is pouring all of her paycheck into the plans in ord...
by House Blend
Sun Jun 07, 2015 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Dividend Growth
Replies: 5
Views: 769

Re: Dividend Growth

I am trying to generate more income to offset RMD's in an inherited IRA. Is it worth the cost? No, it isn't. First, you should drop the notion that you need to "offset" the RMDs. Accept the fact that this account will be drained out, whether you like it or not, over your expected lifetime...
by House Blend
Thu Jun 04, 2015 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help with TIAA-CREF
Replies: 7
Views: 556

Re: Need Help with TIAA-CREF

Be aware that TIAA Traditional comes in multiple flavors. Some flavors are not easily transferable to other investments or rolled out (it can take 9 years to move the money). Other flavors do not have this restriction, but pay a lower rate of interest. (On the order of 0.75% less; it varies.) Most l...
by House Blend
Thu Jun 04, 2015 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA from Vanguard
Replies: 9
Views: 812

Re: Inherited IRA from Vanguard

Welcome to the forum. In general, picking funds comes last, after you develop a plan. And the plan should take into account all of your savings and investments, not just this particular one. The wiki has plenty of helpful articles to get you started. https://www.bogleheads.org/wiki/Getting_started I...
by House Blend
Wed Jun 03, 2015 12:27 pm
Forum: Investing - Theory, News & General
Topic: What is total return vs. dividend investing?
Replies: 59
Views: 4020

Re: What is total return vs. dividend investing?

At one time Blue chips paid a healthy dividend - I believe the Old AT&T paid something like 5-6%. You could see that a retiree with a large Blue Chip stock holdings could essentially live off the dividends - and sometimes the stock even rose to boot. Those days are pretty much gone. But there a...
by House Blend
Wed Jun 03, 2015 10:57 am
Forum: Investing - Help with Personal Investments
Topic: How to invest proceeds of CalSTRS teacher's pension
Replies: 6
Views: 574

Re: How to invest proceeds of CalSTRS teacher's pension

⋅ Is there any way to invest 100% of that monthly pension amount as "rolled over" into another tax deferred plan? (At least until 70 1/2) No. But as you say, you can do this indirectly by maxing out your 401(k) contributions and using the pension to make up for the income shortf...
by House Blend
Tue Jun 02, 2015 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Does it matter when I take my RMD for the year?
Replies: 20
Views: 2023

Re: Does it matter when I take my RMD for the year?

^^I'm familiar with the 61/121 rule for qualified dividends. IMO, it is not of primary importance vis-a-vis when to take RMDs. First, there's no notion of qualified dividends (or unqualified for that matter) in a tax-deferred account. Withdrawals are ordinary income. If the withdrawal is then used t...
by House Blend
Tue Jun 02, 2015 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Does it matter when I take my RMD for the year?
Replies: 20
Views: 2023

Re: Does it matter when I take my RMD for the year?

Whenever we've moved money in an IRA that requires RMDs, we were always required by the custodian to take the RMD before we moved the funds. The calculation is always based on the 12/31 balance of the IRA from the prior year. My understanding was I didn't really have a choice--if I wanted to move m...
by House Blend
Tue Jun 02, 2015 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Best type of account for inherited funds for family member
Replies: 8
Views: 617

Re: Best type of account for inherited funds for family member

But whether the IRA is trad or Roth, FM can only transfer $6500 into it for each year FM has wages over $6500. You can't just transfer cash or shares from some other source (be it someone else's IRA, or a trust, etc) into an IRA in FM's name. This is not correct. Another person can most definitely ...
by House Blend
Tue Jun 02, 2015 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Best type of account for inherited funds for family member
Replies: 8
Views: 617

Re: Best type of account for inherited funds for family member

I presume the best approach is for them to simply open an IRA and I transfer the shares directly into this account, rather than selling shares and sending cash. Having a hard time making sense of this. With $40K gross wages/year, FM (Family Member) has their choice of deductible trad IRA or Roth IR...
by House Blend
Mon Jun 01, 2015 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Investment options for someone else's retirement
Replies: 4
Views: 526

Re: Investment options for someone else's retirement

Could you purchase a deferred annuity for her with the money?

I know we are supposed to hate deferred annuities here on this forum, but this might be a circumstance that calls for one.
by House Blend
Mon Jun 01, 2015 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Div/Cap Gain reinvesting into spouses acct
Replies: 1
Views: 228

Re: Div/Cap Gain reinvesting into spouses acct

Ask your custodian.

At Vanguard, I doubt this is possible but it can't hurt to ask. For sure you would need to have an old style mutual funds only account, not a brokerage account. And Agent Authorization on your spouse's account.
by House Blend
Mon Jun 01, 2015 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvest question...401k contributions
Replies: 4
Views: 532

Re: Tax loss harvest question...401k contributions

Is it possible to tax loss harvest in my taxable account without triggering a wash sale despite my 401k contributions? Yes, no 401(k) problem whatsoever if you want to TLH in your taxable account. So if I say exchange TSM for S&P 500, then exchange back 30 days later while I am making regular c...
by House Blend
Mon Jun 01, 2015 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions?
Replies: 19
Views: 2030

Re: Roth Conversions?

Converting to a Roth loses most of its advantage if you pay the taxes out of an IRA. Don't convert unless you can pay the conversion taxes out of your taxable account. I did most of my conversions when I was working fewer hours or retired. No. Assuming you are over age 59.5 (OP mentions age 60 to 7...
by House Blend
Fri May 29, 2015 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: questions about 1099 income and taxes
Replies: 7
Views: 457

Re: questions about 1099 income and taxes

So, the main new wrinkle is that you'll owe payroll tax: SS + medicare, in addition to regular income tax when you file. That requires filing Schedule SE. And you will report the income itself on Schedule C or (more likely, for simple situations) C-EZ. Note that if you have any deductible business e...
by House Blend
Fri May 29, 2015 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question
Replies: 16
Views: 1576

Re: Social Security question

It depends. Your primary insurance amount is a function of your 35 highest years of (wage-inflation-adjusted) earnings. So if your earnings from 62-70 would not be included in your 35 highest years, there would be no difference. On the other hand, if those years of earnings would knock out other lo...
by House Blend
Thu May 28, 2015 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about swapping betterment -> vanguard, some questions about wash sales & bond funds
Replies: 2
Views: 358

Re: Thinking about swapping betterment -> vanguard, some questions about wash sales & bond funds

2) When withdrawing or TLHing the taxable account, how do I avoid wash sales in the tax-advantaged accounts? Some of those funds distribute monthly... or would I have to account for that too and calculate the disallowed loss & such in the advantaged accounts? Or would it be better to eat a (ver...
by House Blend
Thu May 28, 2015 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Need 60k for downpayment, take from VTIAX or VTSAX?
Replies: 11
Views: 909

Re: Need 60k for downpayment, take from VTIAX or VTSAX?

I would also suggest that you change the setting in vanguard to allow you to sell certain lots. (not sure I'm using the correct terminology) So you could sell certain VTSAX (or whatever) shares that perhaps did not gain as much. Also- you have to consider how long you have had those particular lots...
by House Blend
Tue May 26, 2015 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Adjustments to a taxable account
Replies: 7
Views: 777

Re: Adjustments to a taxable account

mhall, 1. They should not reinvest dividends or any other distributions from these funds. If and when there is a distribution, invest the proceeds in one of the components of the three fund portfolio. Presumably TSM or TISM--aim to keep all of the bonds in tax-advantaged accounts. 2. If they are hov...

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