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Re: IRA And 401k?

Oh, and another question concerning a higher income.. As I understand it, the Roth IRA contribution (2015) can be limited by income, starting to phase out after 183K (married filing jointly). Let's say I make 190K and then contribute 18K to a traditional pre-tax 401K. This brings my taxable income ...
by House Blend
Mon Mar 30, 2015 1:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 697

Re: Paying Taxes on Vanguard MISTAKEN Refund

Why not just cancel the incorrect redemption fee and add the money to my money market account? Surely they already did refund you the money in some way. If they incorrectly imposed (say) a 0.25% redemption fee, and then corrected it, you must have been refunded that 0.25%....either a check, or a de...
by House Blend
Mon Mar 30, 2015 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Paying Taxes on Vanguard MISTAKEN Refund
Replies: 7
Views: 565

Re: IRA And 401k?

Also, what about RMDs and dividend income? I know they don't show up on a W2, but could RMD or dividend income be used to raise the ceiling for an IRA contribution after earned income has been maxed out by 401k contributions? In think DSInvestor answered your other questions. On this one, the answe...
by House Blend
Mon Mar 30, 2015 12:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 697

Re: IRA And 401k?

If all of your earned income is from a W-2 job, then all that matters for IRA purposes is the number in Box 1 of the W-2. If it is over $6500 then you can max out an IRA (trad or Roth), or his and hers if over $6500+$5500. (Also, check whether you qualify for the Retirement Savers Credit.) Note that...
by House Blend
Mon Mar 30, 2015 8:30 am
 
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 697

Re: Vanguard's Week In Review

. Does anyone have any good suggestions for alternate source for the information normally found in Vanguard's Week in Review? In particular, a site that gives a summary of the week's reports along with the actual and expected values and the effect they had on interest rates and the stock market for...
by House Blend
Sat Mar 28, 2015 11:44 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard's Week In Review
Replies: 19
Views: 2068

Re: Recurring utility bills - How do you pay?

As mentioned already in this thread, there's more than one form of "autopay". One way is to autobill a credit card. (You can also set up autopay for the card; I don't do that.) Another is to autobill a bank account. No "online" involved. I use both. I've been doing the latter for...
by House Blend
Sat Mar 28, 2015 8:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Recurring utility bills - How do you pay?
Replies: 43
Views: 2899

Re: Traditional IRA into Roth; when Income too High?

OP here, I don't think the individual can re-characterize to a Roth directly due to bumping up on income limitations for the Roth. The individual only has a few years left of employment, perhaps it's just best to file the Form 8606 and let it go? Last year was an off year in terms of expected incom...
by House Blend
Fri Mar 27, 2015 8:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA into Roth; when Income too High?
Replies: 8
Views: 440

Re: Vanguard Expense Ratio Changes

FWIW, the posted ER for Admiral shares of Total Bond will be dropping 1 basis point when the prospectus comes out next month. (Investor shares unchanged.) Total AUM (all share classes) moved from 117B -> 108B -> 137B over the past two years, and dropped 2 basis points last year while AUM was falling...
by House Blend
Fri Mar 27, 2015 8:31 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard Expense Ratio Changes
Replies: 5
Views: 1462

Re: Traditional IRA into Roth; when Income too High?

By far the best option is to recharacterize the 2014 IRA contribution as a Roth. You will have to contact the IRA custodian to make it happen, but once it is done there will be no extra taxes due. Read the instructions for Form 8606 to see what the reporting requirements are when you do a recharacte...
by House Blend
Fri Mar 27, 2015 8:20 am
 
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA into Roth; when Income too High?
Replies: 8
Views: 440

Re: International stock dividend cut. Why?

Thank you for that information. Any insight (or even a guess) as to why this is? More companies in the index having irregular dividend payments or some other reason? Dunno. I do think there have been prior threads about this question (most likely exactly 2 years ago, when we saw the puny $0.066 div...
by House Blend
Thu Mar 26, 2015 3:51 pm
 
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 2971

Re: Tax Loss Harvesting Wash Sale in Roth IRA

That loss is now permanently gone (since the replacement shares are in an IRA), so instead of claiming a loss of $5000 on your 2015 Schedule D, you will claim only $4987. 149600*(5000/150000) This is only an approximation to the calculation one must do for the IRS. It will be close only if the gap ...
by House Blend
Thu Mar 26, 2015 12:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting Wash Sale in Roth IRA
Replies: 16
Views: 1226

Re: Tax Loss Harvesting Wash Sale in Roth IRA

^As I explained upthread, that's not how the calculation works. Let me try again, this time with slightly more realistic and specific numbers involving VEMAX (Emerging Markets Admiral). The price on the recent reinvest day was $33.99. If you had $400 in dividends from this fund, that means you bough...
by House Blend
Thu Mar 26, 2015 9:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting Wash Sale in Roth IRA
Replies: 16
Views: 1226

Re: Where to hold international bond funds?

Hi bogleheads, I appreciate your comments on the following: Shall I hold the Vanguard Total International Bond Fund in a taxable account because of the foreign tax credit OR in a tax-sheltered account because of the tax-inefficiencies of bond funds? Thank you very much Another option to consider is...
by House Blend
Wed Mar 25, 2015 8:45 pm
 
Forum: Investing - Theory, News & General
Topic: Where to hold international bond funds?
Replies: 1
Views: 352

Re: Wash Sale (w/ a slight spin)

I share ogd's view on this subject. I TLH, and choose not to hold any substantially identical funds in taxable and tax-advantaged. If I did, I would at least set the dividend distributions in the "substantially identical" fund in tax-advantaged to not be automatically reinvested. (But my e...
by House Blend
Wed Mar 25, 2015 8:39 pm
 
Forum: Investing - Theory, News & General
Topic: Wash Sale (w/ a slight spin)
Replies: 23
Views: 1423

Re: Tax Loss Harvesting Wash Sale in Roth IRA

I'm pretty sure wash sales tax rules don't apply to Roths. We've already had citations to two authorities earlier in this thread who are sure that you're wrong. Here's a third; pay close attention to item #4: Wash Sales A wash sale occurs when you sell or trade stock or securities at a loss and wit...
by House Blend
Wed Mar 25, 2015 5:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting Wash Sale in Roth IRA
Replies: 16
Views: 1226

Re: Tax Loss Harvesting Wash Sale in Roth IRA

The same thing happened to me. I sold about $150,000 worth of Vanguard's emerging markets and developed markets funds in my taxable account a couple weeks ago for a loss of $5000. Yesterday, the same funds in my Roth IRA reinvested a total of $400 in dividends. I would like to fix this if anything ...
by House Blend
Wed Mar 25, 2015 4:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting Wash Sale in Roth IRA
Replies: 16
Views: 1226

Re: Location of Total International Bond Index

It depends. For tax-efficiency it has been better than Total Bond, because it has been yielding less. While you are free to compare SEC yields if you want to project future returns , what matters for current taxes is distribution yield. For Admiral shares last month, it was about 1.5% for VTABX vs. ...
by House Blend
Wed Mar 25, 2015 2:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Location of Total International Bond Index
Replies: 1
Views: 234

Re: International stock dividend cut. Why?

Wow, there's a lot of magical thinking going on in this thread. It has been mentioned already, but I will repeat for emphasis: Total International has highly variable dividends from quarter to quarter . Typically Q1 and Q3 are smaller than Q2 and Q4. Beyond that I don't think there is much in the wa...
by House Blend
Wed Mar 25, 2015 11:57 am
 
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 2971

Re: Corrected 1099-DIV: Do I have to amend my return?

Same with Form 1116 - not really complicated if all you have is RIC investments and you follow the instructions. Wow. Good thing I didn't have a mouthful of coffee when I read that. Try looking at it from the newbie perspective. No, it is not easy. It takes quite a while to read through the instruc...
by House Blend
Tue Mar 24, 2015 10:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Corrected 1099-DIV: Do I have to amend my return?
Replies: 12
Views: 1116

Re: Vanguard Screwed up 1099-B

Were any of the shares inherited from a trust?

My understanding is that depending on the type of trust, there *might* not be a step-up in basis.
by House Blend
Tue Mar 24, 2015 9:34 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard [Messed up] 1099-B
Replies: 8
Views: 1564

Re: Corrected 1099-DIV: Do I have to amend my return?

In this case, not amending is unlikely to trigger any correspondence or corrections from the IRS. There are circumstances where the correct amount of qualified dividends one is eligible to claim will be less than the numbers reported on one's Forms 1099-DIV. These circumstances generally do not requ...
by House Blend
Tue Mar 24, 2015 9:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Corrected 1099-DIV: Do I have to amend my return?
Replies: 12
Views: 1116

Re: Does your CPA/Tax Person help with reducing your taxes?

The CPA that you interact with may or may not have any role in preparing your return. More often than not the initial prep work is done by somebody with minimal experience (0-2 years experience) or, if the client allows, an Indian outsourcing company. If the client is important enough, i.e., paying...
by House Blend
Mon Mar 23, 2015 1:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does your CPA/Tax Person help with reducing your taxes?
Replies: 58
Views: 4731

Re: Munis for Diversification?

Where are your stocks? In the 15% bracket, stocks are extremely efficient in taxable. In your bracket, I wouldn't even think about tax-exempt bonds unless tax-advantaged was already 100% bonds. Even then, I might instead do something barbell-ish, such as put short bonds in taxable and the longer (hi...
by House Blend
Mon Mar 23, 2015 1:11 pm
 
Forum: Investing - Theory, News & General
Topic: Munis for Diversification?
Replies: 14
Views: 1325

Re: What Movie Have You Recently Watched?

I agree with Petrocelli on a 3 for Boyhood; and maybe that's a little high. I thought the whole story was based on an assumption that all adult males are violence-prone jerks. I disagree, again, with a high score for Fury. It's a gritty, authentic, plausible WW2 story for the first hour or so, then...
by House Blend
Sun Mar 22, 2015 9:19 pm
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 655
Views: 86488

Re: Foreign stocks/bonds may be less beneficial for retirees

1) Adding foreign stocks increases the volatility of portfolio returns. Yes, portfolio volatility is more important for retirees, but I'd like to see evidence in support of that statement. Adding small amounts of stock to a bond-only portfolio typically reduces volatility. In any case, a portfolio ...
by House Blend
Sun Mar 22, 2015 3:02 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign stocks/bonds may be less beneficial for retirees
Replies: 26
Views: 2325

Re: Foreign stocks/bonds may be less beneficial for retirees

1) Adding foreign stocks increases the volatility of portfolio returns. Yes, portfolio volatility is more important for retirees, but I'd like to see evidence in support of that statement. Adding small amounts of stock to a bond-only portfolio typically reduces volatility. In any case, a portfolio ...
by House Blend
Sun Mar 22, 2015 2:26 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign stocks/bonds may be less beneficial for retirees
Replies: 26
Views: 2325

Re: Taxable investing "schedule"

Should it be as simple as buying $1,000 worth of whichever index fund we're a bit low in every month (according to our desired allocation) or is there a more preferred approach? FYI, we'll be investing in VTSMX and VGTSX. Bingo. That said, if you are 1. starting from scratch, and 2. have space for ...
by House Blend
Fri Mar 20, 2015 4:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable investing "schedule"
Replies: 12
Views: 692

Re: Real worth of 1 million dollar IRA?

Social Security gets taxed too. I think a better comparison would a specific monthly SS amount versus what one wold have to pay for an inflation adjusted SPIA, perhaps with a bit of adjustment due to only max of 85% of SS is taxed. That was my thought also.... While I think that attempting to expre...
by House Blend
Fri Mar 20, 2015 4:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Real worth of 1 million dollar IRA?
Replies: 17
Views: 2032

Re: bond fund in taxable vs traditional IRA vs ROTH IRA

According to your posts in other threads, you will be inheriting a large traditional IRA later this year. You shouldn't be worried about this issue until that IRA is 100% bonds and you need more bonds to meet your asset allocation. I also doubt that you can realistically expect to stay in the 15% br...
by House Blend
Thu Mar 19, 2015 11:58 am
 
Forum: Investing - Help with Personal Investments
Topic: bond fund in taxable vs traditional IRA vs ROTH IRA
Replies: 2
Views: 246

Re: Question on Tax Loss Harvesting

How does tax loss harvesting work if you are married filing jointly? Example, if one spouse sells for a loss, can the other spouse buy the same security immediately or are they also obligated to wait the appropriate period as well to harvest the tax deductable loss? Selling in your account at a los...
by House Blend
Thu Mar 19, 2015 10:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Question on Tax Loss Harvesting
Replies: 8
Views: 982

Re: Tax Loss Accounting & Calculating Returns Accurately

I also question the usefulness of actually calculating after tax return. Taxes are what they are and we or our heirs are going to have to pay them. It's easier to just treat them as an expense instead of a capital item. The only reason to think about taxes paid or accrued on investments is to allow...
by House Blend
Wed Mar 18, 2015 3:45 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Accounting & Calculating Returns Accurately
Replies: 20
Views: 567

Re: Tax Loss Accounting & Calculating Returns Accurately

Determine the tax loss by recalculating a year's tax return without the tax loss producing event, and noting the difference. To get the after tax return, integrate the tax loss into annual cash flows as an expense on some convenient date. I don't think it is right to regard tax loss accounting as s...
by House Blend
Wed Mar 18, 2015 1:26 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Accounting & Calculating Returns Accurately
Replies: 20
Views: 567

Re: Social Security Website's "Online Calculator"

The second line that you fill out for the calculator is "Age at Retirement" with the description "Enter the age in years and months at which you plan to stop working. Your earnings are assumed to stop at that age." Yes, you're absolutely correct. Thank you. I entered the age I r...
by House Blend
Tue Mar 17, 2015 2:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Website's "Online Calculator"
Replies: 8
Views: 760

Re: Social Security Website's "Online Calculator"

The second line that you fill out for the calculator is "Age at Retirement" with the description "Enter the age in years and months at which you plan to stop working. Your earnings are assumed to stop at that age." Bogleheads should translate this to "Enter the age at which ...
by House Blend
Tue Mar 17, 2015 2:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Website's "Online Calculator"
Replies: 8
Views: 760

Re: 60 Minutes, Dead or Alive

Before you get too worked up over the '60 minutes' piece, you should read this critique over at the LA Times: "'60 Minutes' bungles another hit piece on Social Security"
http://www.latimes.com/business/hiltzik/la-fi-mh-60-minutes-bungles-20150316-column.html#page=1
by House Blend
Tue Mar 17, 2015 7:57 am
 
Forum: Personal Consumer Issues
Topic: 60 Minutes, Dead or Alive
Replies: 15
Views: 3361

Re: An oddball portfolio suggestion: TR Income + equities

Might work. Main issue I see is how you plan to maintain your glide path when market movements don't cooperate. For example, you don't really have a way to rebalance from bonds to stocks without adding a new fund in tax-advantaged. And if/when you take RMDs that you don't spend, you'll be draining f...
by House Blend
Mon Mar 16, 2015 9:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: An oddball portfolio suggestion: TR Income + equities
Replies: 5
Views: 629

Re: Retired - When to Sell to Generate Cash

All my bonds are in my IRA as well. I do a double trade to get money to spend: 1. Sell Total Stock Market in taxable, no matter what the price, high, low, same does not matter to me . 2. Exchange from GNMA to TSM in IRA. Uhh, if you sell at a loss, it should matter--this would be a wash sale the wa...
by House Blend
Mon Mar 16, 2015 4:14 pm
 
Forum: Investing - Theory, News & General
Topic: Retired - When to Sell to Generate Cash
Replies: 30
Views: 1961

Re: Experienced advice wanted re inherited stocks etc

My question has to do with how to get out of the individual stocks, maximize my tax advantaged accounts, and prepare for yet another inheritance later this year which will likely be in the low seven digits. Other than hiring a financial advisor (I tried Vanguard Investor Services and it was very fr...
by House Blend
Mon Mar 16, 2015 2:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice wanted re inherited stocks etc
Replies: 6
Views: 798

Re: Target Retirement Fund better for rebalancing tax?

In general, capital gains leak out of balanced funds and generate additional taxes beyond dividends. This is business as usual for Vanguard TR and LS funds. IF you can stay in balance by holding the individual funds and only selling bits and pieces when absolutely necessary, you are likely to genera...
by House Blend
Sun Mar 15, 2015 8:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Fund better for rebalancing tax?
Replies: 2
Views: 433

Re: LifeStrategy Moderate Growth vs Separate funds

I am curious if folks with the separate funds do better than VSMGX or the fund closest to their asset allocation --whether a LifeStrategy or Target Retirement fund? I modeled my mother's portfolio after VG Target Retirement Income, but with individual Admiral funds. And it resembles that fund less ...
by House Blend
Sat Mar 14, 2015 7:46 am
 
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Moderate Growth vs Separate funds
Replies: 38
Views: 2986

Re: Index Fund Capital Gains Tax, Over the Years

With all that said, why would someone (small bus owner) invest in a Traditional IRA, SEP IRA, or SIMPLE IRA? My thought process is that these are taxed upon withdrawal year as ordinary taxable income. So if someone withdraws $80/yr, they're already in a high tax bracket. On the other hand with tota...
by House Blend
Fri Mar 13, 2015 2:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Index Fund Capital Gains Tax, Over the Years
Replies: 19
Views: 764

Re: Replacement fund for tax loss harvesting VWIUX?

If you want to TLH, use stocks or stock funds. For muni bond funds, it is too much hassle for not enough value. For example, if you had TLH'd VWIUX yesterday, you would almost certainly be exchanging capital losses for taxes on your so-called tax-exempt interest. In more detail: yesterday's price wa...
by House Blend
Fri Mar 13, 2015 11:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Replacement fund for tax loss harvesting VWIUX?
Replies: 3
Views: 316

Re: Overcontribution to 403B and Non elective contribution

netizen, I think you are in the clear. 1. Matching contributions from your employer(s) do not count towards the elective deferral limit of $17,500. Those aren't deferrals from your wages . 2. Mandatory (non-elective) contributions from your wages also do not count towards the $17,500 limit. For exam...
by House Blend
Fri Mar 13, 2015 8:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to 403B and Non elective contribution
Replies: 1
Views: 196

Re: Silly Question About Tax Refund

I bet they have a rockin interest rate, huh? :happy Not clear to me whether that was meant to be sarcasm, but when I amended my 2012 return in 2013 I received an extra 2% in interest. Not sure how they do the accounting, but I did an IRA recharacterization in June 2013 that changed my 2012 tax bill...
by House Blend
Thu Mar 12, 2015 8:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Silly Question About Tax Refund
Replies: 12
Views: 1680

Re: I hate the new Vanguard Web navigation!!!

I'm still having problems with the disappearing drop-down menus. Is anyone else? It's making it devilishly difficult to navigate the website. FWIW, the same menu selections are also available at the bottom of the VG homepage, without the glitz and glamour of drop down menus. In response to another ...
by House Blend
Thu Mar 12, 2015 9:09 am
 
Forum: Personal Finance (Not Investing)
Topic: I hate the new Vanguard Web navigation!!!
Replies: 47
Views: 4539

Re: Correlation between REITs and TIAA Real Estate?

Yeah. At some point, probably during the crash and subsequent liquidity crisis, they changed the procedure. It used to be that each property was assessed "for real" by an outside firm only once per year, and then in the other 3 quarters they would throw darts at the wall and invent their o...
by House Blend
Wed Mar 11, 2015 1:33 pm
 
Forum: Investing - Theory, News & General
Topic: Correlation between REITs and TIAA Real Estate?
Replies: 14
Views: 631

Re: Correlation between REITs and TIAA Real Estate?

^I would guess 1.5 months, since each property is assessed quarterly.
by House Blend
Wed Mar 11, 2015 1:23 pm
 
Forum: Investing - Theory, News & General
Topic: Correlation between REITs and TIAA Real Estate?
Replies: 14
Views: 631

Re: TIAA Traditional Annuity as sole fixed income component

When you initiate a TPA, the interest rate will be fixed over that 9-year period and it may be different from the rate being paid in Traditional. This could have the result of lowering your effective yield over the entire period your money is in Traditional plus the TPA. Just an FYI: I have a TPA t...
by House Blend
Wed Mar 11, 2015 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional Annuity as sole fixed income component
Replies: 36
Views: 1980

Re: Correlation between REITs and TIAA Real Estate?

I just downloaded the daily returns of TREA and VGSIX since 1996 and the correlation was 0.17 between the two. However, the variance of TREA returns is quite a bit smaller than for VGSIX and I'm pretty sure this needs to be considered. Monthly returns would probably be better, and perhaps some sort...
by House Blend
Wed Mar 11, 2015 12:57 pm
 
Forum: Investing - Theory, News & General
Topic: Correlation between REITs and TIAA Real Estate?
Replies: 14
Views: 631
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