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Re: Why do Engineers Think They’ll Be Good at Picking Stocks

In engineering field as a manager and in my heart I believe that everything can be explained with an equation to a reasonable degree OK Humor mode on :happy :D I give my Eng students the following problem you are a customer at a Casino. By careful observation you note that Player A wins regularly a...
by House Blend
Wed Oct 22, 2014 1:48 pm
 
Forum: Investing - Theory, News & General
Topic: Why do Engineers Think They’ll Be Good at Picking Stocks?
Replies: 77
Views: 3863

Re: When to think about tax lost harvesting

Sorry, I wasn't clear. I'm expecting around the same capital gains distributions this year, $10,000 long-term. Just an estimate. Ouch. What do you have in taxable that is generating $10K in cap gain distributions ? If you are already tapping the account for expenses and spending that $10K anyway, t...
by House Blend
Wed Oct 22, 2014 1:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: When to think about tax lost harvesting
Replies: 15
Views: 1102

Re: Calculating return

To make them comparable, you'd need to determine the ending value of Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (TSM) assuming the same investments as were made into your account. There may be web sites that will help with this computation, but I went ahead and did it using the Dis...
by House Blend
Wed Oct 22, 2014 1:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calculating return
Replies: 13
Views: 1014

Re: Bonds in taxable account?

What would you do if you were currently in a high tax bracket (high income with 28% tax or higher, which is why you're stuck using a taxable account in the first place), but you anticipate going to a lower tax bracket within 5-10 years due to retiring early? Which of these options (if any) would yo...
by House Blend
Wed Oct 22, 2014 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bonds in taxable account?
Replies: 27
Views: 3316

Re: "You're invited to...." (nonsense talk and dinner)

VictoriaF wrote:There may even be stool pigeons at each table who pretend to be regular attendees like yourself and share with you some of their "successes" with similar products.

Those are called shills, not stool pigeons.

(Not that I have any experience in either domain...)
by House Blend
Wed Oct 22, 2014 11:49 am
 
Forum: Personal Consumer Issues
Topic: "You're invited to...." (nonsense talk and dinner)
Replies: 67
Views: 3443

Re: Calculating return

^First, unless your account was 100% (domestic) stock, there's no reason at all to compare your rate of return with the return of Total Stock Market. Second, even if your account was 100% invested in TSM, you still wouldn't have earned 14.8%, because you were adding money at regular intervals. Yes, ...
by House Blend
Tue Oct 21, 2014 9:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calculating return
Replies: 13
Views: 1014

Re: Help a Confused New Boglehead

Aha a light bulb moment! Yes, we even have an emoticon for that: :idea: FInd out if I can roll my pre-tax TIRA into my 401K. If I can, then I can also fund a new traditional and then convert (after the TIRA is no longer). Or just convert the existing traditiional (pre-tax) $10K and pay the taxes an...
by House Blend
Tue Oct 21, 2014 1:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help a Confused New Boglehead
Replies: 9
Views: 933

Re: Help a Confused New Boglehead

I thought that having the traditional IRA (the small 10K one) would interfere with my ability to do a Roth conversion. House Blend made a good point that we could still convert some of my husband's 401K if we decide to go this route. Thanks. By failing to use the backdoor Roth for your husband, you...
by House Blend
Tue Oct 21, 2014 1:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help a Confused New Boglehead
Replies: 9
Views: 933

Re: Write-off capital loss against capital gains?

One question that I've had is: Do you have to use the capital losses to offset any gains? Or can you save the losses and only apply them against income and non-qualified capital gains? Yes to the first, no to the second. (Also, you meant to say "short term capital gains". I don't think th...
by House Blend
Tue Oct 21, 2014 12:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Write-off capital loss against capital gains?
Replies: 24
Views: 1028

Re: Help a Confused New Boglehead

Welcome to the forum. 1. Looks like taxable will remain a small fraction of the total portfolio, given that you have just a few more years to retirement. I would recommend using 100% stocks for it, such as TSM. No point in using tax-exempt bonds in my opinion, if you expect your tax rate to drop sig...
by House Blend
Tue Oct 21, 2014 10:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Help a Confused New Boglehead
Replies: 9
Views: 933

Re: Inherited IRA investment for 20-somethings

Hmm. I may have to go back to the attorney on this. The official IRA beneficiaries of course can't be changed, but the fact that my mother listed her sixth grandchild in the trust as being an intended beneficiary of the IRA (mistakenly, as it turned out), along with the other grandchildren, I thoug...
by House Blend
Mon Oct 20, 2014 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA investment for 20-somethings
Replies: 13
Views: 739

Re: Inherited IRA investment for 20-somethings

Also, on a related note, a sixth grandchild was inadvertently left out of the IRA beneficiary designation (mentioned in the Trust as a beneficiary, but not in the paperwork with the investment company). I intend to give her the equivalent of what she otherwise would have gotten, as that was clearly...
by House Blend
Mon Oct 20, 2014 2:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA investment for 20-somethings
Replies: 13
Views: 739

Re: Help on Turbo Tax Long term cap gains

Doing the calculation without LT cap gains and doing the calculation with LT cap gains should not change his tax. No, SS income is all that is required for this to happen. The amount of SS income that is taxable depends on how much "other income" you have. Other income includes things lik...
by House Blend
Thu Oct 16, 2014 9:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help on Turbo Tax Long term cap gains
Replies: 21
Views: 1099

Re: Poll: which portion of the chart shows higher volatility

Didn't vote. No way can the eye distinguish standard deviations of 9.5 and 9.6. But I do have a problem with the formulation--you've presented the data as a time series. Yes, that's how market returns occur in real life. But the order in which data occurs has zero effect on standard deviation. The e...
by House Blend
Thu Oct 16, 2014 11:01 am
 
Forum: Investing - Theory, News & General
Topic: Poll: which portion of the chart shows higher volatility?
Replies: 26
Views: 1435

Re: Roll Over Old TIAA CREF Account?

My wife has a TIAA CREF retirement account from when she worked at a college 10 or 12 years ago. It's her account and there's not much in it. I'm tempted to suggest that she just roll it over into a VG IRA account. Get rid of it. Roll to a Vanguard IRA. Given that "there's not much in it"...
by House Blend
Thu Oct 16, 2014 10:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Roll Over Old TIAA CREF Account?
Replies: 15
Views: 764

Re: TLH and Dividend Elections

My Vanguard based 401K does not allow me to elect to NOT reinvest dividends*. I'm worried about accidentally triggering a wash sale in my taxable account as a result of a reinvestment transaction in my 401K. FWIW, I deal with the issue by not holding the same fund in both places. The one asset clas...
by House Blend
Wed Oct 15, 2014 5:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: TLH and Dividend Elections
Replies: 5
Views: 470

Re: need advice for bond fund in taxable low income high as

Are you maxing out his and hers 401(k) plans and IRAs?

If not, you should start doing so immediately and use the windfall to cover any shortfall in income that this creates. This won't solve the immediate problem but will improve your tax-efficiency in the long run.
by House Blend
Wed Oct 15, 2014 5:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: need advice for bond fund in taxable low income high assets
Replies: 16
Views: 1265

Re: Very remedial help needed in understanding MUNI fund

Should I exchange it for a bigger position in VBTLX? Sort of. I assume you have tax-advantaged accounts--401(k), IRA (his & hers), 403(b),... Unless they are 100% VBTLX already, what you should do is improve your tax-efficiency by exchanging the muni fund for more shares of VTSAX or VTIAX, and ...
by House Blend
Tue Oct 14, 2014 4:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Very remedial help needed in understanding MUNI fund
Replies: 6
Views: 264

Re: Does your ROTH hold risky or stable items?

new2bogle2 wrote:Should a Roth (compared to a traditional IRA) have the more risky or more stable investment items?

Yes. My Roth is 50% Total Bond and 50% US Small Value.

(But it is about 2% of the total portfolio, so it doesn't really matter how it is allocated.)
by House Blend
Mon Oct 13, 2014 10:34 pm
 
Forum: Investing - Theory, News & General
Topic: Does your ROTH hold risky or stable items?
Replies: 56
Views: 3284

Re: Sorry, another wash sale question

The Vanguard Rep is correct. Not a wash. Suppose instead you sold all of your shares except for the 32.495+9.414 shares you bought on 9/22 and 9/23. Those shares would then be participating in a wash sale. So some of the loss in the sale of the other 1792.257-32.495-9.414 shares you sold would be ad...
by House Blend
Mon Oct 13, 2014 10:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Sorry, another wash sale question
Replies: 3
Views: 374

Re: Fixed Income Investments In Tax Deferred Accounts?

The conventional advice is to place your fixed income investments in tax deferred accounts, and stock mutual funds in taxable accounts. No it isn't. The conventional wisdom says to not let the relative sizes of your taxable and tax-advantaged accounts dictate your asset allocation. If that means yo...
by House Blend
Sun Oct 12, 2014 10:21 am
 
Forum: Investing - Theory, News & General
Topic: Fixed Income Investments In Tax Deferred Accounts?
Replies: 6
Views: 489

Re: Calculating RMDs

If you have multiple custodians, you can wait until they've told you how much your RMD is based on assets held with them. (This assumes all the custodians use the same age for you. :D ). Add up all these RMDs. There you have it. You can take your total RMD from any one account or split up among the...
by House Blend
Sun Oct 12, 2014 9:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Calculating RMDs
Replies: 14
Views: 1453

Re: Wash Sale Question

I just sold my entire position of VGTSX (total international) as all of it was in capital loss and purchased VFWIX (all-world ex-us). As far as I have read, this will not trigger a wash sale, correct? Correct, in my opinion. Agreed. Looks like a good move. The one thing that might bite you (a flea ...
by House Blend
Fri Oct 10, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: Wash Sale Question
Replies: 10
Views: 533

Re: Threshold for [Resetting Roth Conversion]

^You probably know this, but for others reading along, you will need to have more than one Roth IRA if you are planning to do a "selective recharacterization" of multiple conversions. If all of the conversions go into the same Roth IRA, then the gains in the entire account are prorated to ...
by House Blend
Fri Oct 10, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Threshold for [Resetting Roth Conversion]
Replies: 14
Views: 1056

Re: diff share prices between investor, admiral, & ETF share

When a mutual fund starts out, the initial share price is generally set to some nice round number. At Vanguard, I think $10/share and $25/share are the most popular starting prices. The choice is completely arbitrary. So if a fund rolls out Investor, Admiral, and Institutional classes at different t...
by House Blend
Wed Oct 08, 2014 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: diff share prices between investor, admiral, & ETF shares
Replies: 5
Views: 492

Re: Three fund allocation per Vanguard Flagship CFP?

^OK, here is my view of the tax situation. Looks like she will be solidly in the 25% Federal bracket, and not in any of the nastier phase out ranges. Whether munis are a good deal or not in this situation is something that Bogleheads can spend endless hours arguing about. But IMO they aren't a no-br...
by House Blend
Tue Oct 07, 2014 11:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Three fund allocation per Vanguard Flagship CFP?
Replies: 45
Views: 4655

Re: Backdoor Roth w/ large SEP IRA - What would you do?

If I have to pay taxes on the backdoor Roth, would it still be worthwhile? My tax bracket currently is 33%. Almost 100% of it would be taxed based on the pro-rate rule. I'm assuming that for a $5500 backdoor Roth that I would pay $1815 in taxes? To echo Spirit Rider, either there is something unusu...
by House Blend
Tue Oct 07, 2014 1:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth w/ large SEP IRA - What would you do?
Replies: 14
Views: 617

Re: Is the IRA custodian responsible for initiating RMDs?

Is it the responsibility of Dreyfus to begin sending RMDs at 70-1/2 and avoid the penalty? For better or worse, the answer is no. This happened in my mother's case. She had multiple IRAs and 403(b)s, some of which had automatic RMDs setup, and some that didn't. We caught the error several years lat...
by House Blend
Tue Oct 07, 2014 11:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Is the IRA custodian responsible for initiating RMDs?
Replies: 26
Views: 1450

Re: Help with tax loss harvesting

Traveller, You have it right, and the others trying to help you have it wrong. If you harvest a loss in taxable, and hold the same fund elsewhere, whether it is in your IRA, or your spouse's IRA, or your trust account, or, ... then purchases in that other account within 30 days of the sale creates a...
by House Blend
Tue Oct 07, 2014 10:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with tax loss harvesting
Replies: 16
Views: 1077

Re: Capital loss carryover in the (almost) 15% bracket

Not sure what the problem is. First, there is no "optionality" with carryover losses: they *must* be used, first to cancel out capital gains (if any), and then if more losses remain, up to $3000 of them must be used to deduct against other income. If you're in the 15% bracket, that's savin...
by House Blend
Mon Oct 06, 2014 6:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Capital loss carryover in the (almost) 15% bracket
Replies: 7
Views: 497

Re: "Vanguard converting mutual fund accounts to brokerage?

FWIW, I will be opting out as long as possible. I prefer all dividend and cap gain distributions in my taxable mutual fund account to go straight to my (external) bank account. The new account structure only allows two choices for distributions: reinvest, or direct to a Money Market sweep account. P...
by House Blend
Mon Oct 06, 2014 3:26 pm
 
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 72
Views: 8030

Re: Annual savings to taxes ratio?

Anything much over 1:1 just means your not making enough money per year:) I don't understand the math on this. The top federal marginal rate is just under 40%, but since it's marginal, the total rate is almost always going to be under that number. And even that doesn't kick in until you make somewh...
by House Blend
Mon Oct 06, 2014 1:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Annual savings to taxes ratio?
Replies: 25
Views: 2227

Re: Roth conundrum

For other folks who have both traditional and Roth retirement accounts with a single provider (whether 403b or 401k), I wonder how common it is for the provider just to commingle the pretax and posttax account in this way? I believe this is the usual way Roth options are handled in employer plans. ...
by House Blend
Sun Oct 05, 2014 9:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth conundrum
Replies: 13
Views: 1302

Re: Annual savings to taxes ratio?

This obviously varies with income ( higher earners can save a higher percent). Taxes move in the same direction ( higher earners pay more % in taxes ). My theory is that most bogleheads save about as much as they pay in income taxes, regardless of income.. Huh? I see a couple of problems with that ...
by House Blend
Sun Oct 05, 2014 8:49 am
 
Forum: Personal Finance (Not Investing)
Topic: Annual savings to taxes ratio?
Replies: 25
Views: 2227

Re: Contribute 401k or Roth IRA? AA across tax-deferred and

Regarding this conversion, all SEP-IRA + traditional-IRA accounts are taken into consideration for a conversion right? Not sure what you mean by this comment. If all of your SEP IRA and trad IRA accounts were seeded with tax-deferred dollars, then your Roth conversions don't care how many IRA accou...
by House Blend
Sat Oct 04, 2014 5:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Contribute 401k or Roth IRA? AA across tax-deferred and Roth
Replies: 12
Views: 1223

Re: TLH questions

1. There is no minimum. But if it is a Vanguard stock fund on a quarterly distribution schedule, and the shares you bought were purchased 60 days ago or less from October 3, you might want to wait. Example: You bought $100K worth of VTSAX on September 1. Those shares are now worth $95K. You'd like t...
by House Blend
Fri Oct 03, 2014 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: TLH questions
Replies: 6
Views: 556

Re: Three fund allocation per Vanguard Flagship CFP?

There is some question about the tax implications since $1,141,000 is in a taxable account and income generated will be taxed at 25%, (my mistake when I posted 28%). I did discuss a Muni bond fund applicable to my mom's state of residence, and I will also look into the Vanguard Intermediate-Term Ta...
by House Blend
Fri Oct 03, 2014 12:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Three fund allocation per Vanguard Flagship CFP?
Replies: 45
Views: 4655

Re: Three fund allocation per Vanguard Flagship CFP?

CaringInvestor, Welcome to the forum. (My mother is in a similar situation.) The 3-fund approach is pretty good, but you could do also do well, and be much simpler, with a one-fund solution: Vanguard Target Retirement Income. It is a 5-fund portfolio if you break it into its components. ER a bit hig...
by House Blend
Thu Oct 02, 2014 10:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Three fund allocation per Vanguard Flagship CFP?
Replies: 45
Views: 4655

Re: Contribute 401k or Roth IRA? AA across tax-deferred and

If you could make all of your contributions tax-deferred, could you drop down into the 15% bracket? If so, I would aim for a combination of tax-deferred and Roth contributions that keep you just below the top of the 15% bracket. What is the methodology behind aiming to keep just under the upper lim...
by House Blend
Thu Oct 02, 2014 1:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Contribute 401k or Roth IRA? AA across tax-deferred and Roth
Replies: 12
Views: 1223

Re: Inherited IRA

do I set up the inherited IRA with the same AA as my retirement funds? That's one option. Others to think about: 1. Are you maxing out your own tax-advantaged accounts? Start doing that now, and use withdrawals from the inherited IRA to make up the shortfall in income, if any. Any withdrawals of co...
by House Blend
Thu Oct 02, 2014 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA
Replies: 13
Views: 1089

Re: Finding Equivalent Vanguard Muni Fund

He is sitting on a $12,000 capital loss which I would like him to harvest to lower his taxes. This fund has 0.72% ER but still yields an amazing 6.37% according to Morningstar. Exiting this fund is probably a good idea. But before you sell, make sure you 1. Aren't reinvesting dividends in this fund...
by House Blend
Wed Oct 01, 2014 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Finding Equivalent Vanguard Muni Fund
Replies: 5
Views: 404

Re: Contribute 401k or Roth IRA? AA across tax-deferred and

sliu, It looks like you have the opportunity to contribute quite a bit to tax advantaged accounts, including a 401k, a TSP account, and a SEP IRA. (Plus any employer matches, which must be tax-deferred.) If you could make all of your contributions tax-deferred, could you drop down into the 15% brack...
by House Blend
Wed Oct 01, 2014 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Contribute 401k or Roth IRA? AA across tax-deferred and Roth
Replies: 12
Views: 1223

Re: Maxing your IRA or 401k at the beginning of the year?

I've never understood the obsession that some BHs have for this. Maybe if 100% of your contributions fit into an IRA+401k, you can make an argument that it somehow matters to get your money into the accounts 6 months early (on average). Me, I just invest whatever cash is available every month, and d...
by House Blend
Tue Sep 30, 2014 11:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Maxing your IRA or 401k at the beginning of the year?
Replies: 14
Views: 1119

Re: Roth 401(k) vs. Traditional 401(k)

@rk - Thanks for the link. Will go through it. @campos - You have a point about moving to a low tax state (although pigs might fly before I decide to move out of the Bay Area). I think my main consideration is that of mandatory distributions in the Trad 401(k) which I am not so sure about. I am alr...
by House Blend
Tue Sep 30, 2014 11:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401(k) vs. Traditional 401(k)
Replies: 7
Views: 849

Re: favorite brand name products

Hewlett-Packard calculators. Are they still being made? Certainly HP's overall reputation for quality has nose-dived from where it was in the 1970s. I remember when Dad brought home from work an original HP-35, then later the even more awesome HP-45. http://en.wikipedia.org/wiki/HP-35 http://en.wiki...
by House Blend
Mon Sep 29, 2014 2:13 pm
 
Forum: Personal Consumer Issues
Topic: favorite brand name products
Replies: 58
Views: 2994

Re: My 30-day trial experience with Betterment

When you are in the 15% tax bracket you want to tax gain harvest, at the 0% cap gains rate. If you tax loss harvest, then your carryover cap losses will effectively turn later cap gains into ordinary income, in terms of their marginal effect. Harvesting cap losses is just foolish in this case. No. ...
by House Blend
Sat Sep 27, 2014 8:53 am
 
Forum: Investing - Theory, News & General
Topic: My 30-day trial experience with Betterment
Replies: 73
Views: 8534

Re: Insurance Agent / Annuity Question??

+Do most people just leave the $$$ inside the annuity and take the RMDs as they come? +Is it possible to roll over an annuity to a vanguard tradional ira, as you might a 403B or 401k? Another option is to annuitize, if dad needs the income, or in any case, more income than the RMDs would provide. D...
by House Blend
Fri Sep 26, 2014 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Insurance Agent / Annuity Question??
Replies: 5
Views: 511

Re: Online privacy and smartphones

Ged wrote:The observation is that if the service you are using is free, YOU are the product.

Warning: sarcasm alert!

So, here at bogleheads.org, we users are the product?

Who are the customers?

I guess it must be the chumps who make donations, since they are the only ones paying for it.
by House Blend
Fri Sep 26, 2014 11:57 am
 
Forum: Personal Consumer Issues
Topic: Online privacy and smartphones
Replies: 20
Views: 1353

Re: Mutual Fund NAV & Dividends

Some account holders choose to reinvest their dividends and capital gains. That apparently takes place on the Reinvestment Date, which is the same date as the Ex-Dividend date. That makes sense to me. Other account holders choose to be paid in cash, so why doesn't that event take place on the same ...
by House Blend
Thu Sep 25, 2014 11:31 am
 
Forum: Investing - Theory, News & General
Topic: Mutual Fund NAV & Dividends
Replies: 7
Views: 646

Re: Mutual Fund NAV & Dividends

Does this mean that all else being equal in the market, that the reason the NAV dropped between 09/22 & 09/23 is because the Record Date (and that's considered Ex-Dividend) passed? Correct. If you wanted to buy shares of that fund as early as possible, but without buying the dividend, you would...
by House Blend
Wed Sep 24, 2014 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: Mutual Fund NAV & Dividends
Replies: 7
Views: 646
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