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Re: Bonds for young(er) people

As I often say on bond threads, don't overthink this and resist the temptation to collect a few funds to "diversify". The only other candidates for THE bond recommendation are the tax-exempt fund for taxable accounts and high tax brackets, and bank CDs which are right now very attractive ...
by House Blend
Mon Sep 01, 2014 11:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Bonds for young(er) people
Replies: 10
Views: 806

Re: How does the Tax-Managed Balanced achieve tax efficiency

My concern there is rebalancing - do they do something special with the balanced fund to cause lower tax impact than if I did the rebalancing myself? And if I did it myself, would I need to do it every year plus one day to make the gains be long-term? A mini-essay on tax-efficiency: If you are conc...
by House Blend
Mon Sep 01, 2014 10:57 am
 
Forum: Investing - Help with Personal Investments
Topic: How does the Tax-Managed Balanced achieve tax efficiency?
Replies: 6
Views: 594

Re: milestones, skepticism, wealth creation. A thought

Here is my thinking on this: If one is saving a lot, then they will have maxed out their retirment plan contributions and will be forced to save in a taxable account. Or perhaps one has received a significant inheritance that ended up in a taxable account. In any event, Line 9a is a measure of most...
by House Blend
Fri Aug 29, 2014 3:29 pm
 
Forum: Investing - Theory, News & General
Topic: milestones, skepticism, wealth creation. A thought
Replies: 15
Views: 1666

Re: I'd buy an S&P 500 index fund in a pinch

Front-running may be getting harder to do with the S&P500, but at least historically it has been another reason to prefer other US indexes. Opportunities to front-run an index that includes almost everything are much rarer. Even though it has slightly higher expenses, I prefer VG Large Cap Index...
by House Blend
Fri Aug 29, 2014 1:02 pm
 
Forum: Investing - Theory, News & General
Topic: I'd buy an S&P 500 index fund in a pinch
Replies: 45
Views: 5438

Re: TLH in the 15% bracket conundrum(?)

I have this carryover which can allow $3k in income (mostly interest and qualified dividends, some small pension proceeds) to be offset but there will be some Capital Gains in mutual funds and I cannot ascertain how to make the best use of the carryover. If it offsets gains that would otherwise not...
by House Blend
Fri Aug 29, 2014 10:28 am
 
Forum: Personal Finance (Not Investing)
Topic: TLH in the 15% bracket conundrum(?)
Replies: 4
Views: 450

Re: Own the same fund in multiple accounts?

^Doesn't apply to the OP (no taxable account), but I try to avoid any duplication of funds between taxable and tax-advantaged. The reason is that it is very easy to create the bad kind of wash sale whenever you sell at a loss in taxable. Especially if you are reinvesting dividends in tax-advantaged....
by House Blend
Thu Aug 28, 2014 5:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Own the same fund in multiple accounts?
Replies: 9
Views: 918

Re: Cost Basis Method

I sent Vanguard a secure Email identifying which lots to sell, and what I had paid for the lots. I've used SpecID on noncovered shares without telling Vanguard. I just keep track of what I paid and received and report the info on my tax forms. Hopefully it won't come back to bite me. In order to us...
by House Blend
Thu Aug 28, 2014 5:00 pm
 
Forum: Investing - Theory, News & General
Topic: Cost Basis Method
Replies: 16
Views: 1014

Re: help with the math...

You are right.

Ask "they" how much the 2014 total would have been if the increase had been 1%.

Hint: Going from 429,889 to a final total of 4,289, most people would call that a loss.
by House Blend
Tue Aug 26, 2014 5:44 pm
 
Forum: Investing - Theory, News & General
Topic: help with the math...
Replies: 2
Views: 425

Re: 403b excessive fees?

I have received plan servicing credits in Q4 for the past couple of years. Recordkeeping for a 403(b) plan costs money. You can be sure that your employer is paying for it, even if the employer has chosen not to take the costs directly out of your wages or retirement plan assets. My understanding of...
by House Blend
Tue Aug 26, 2014 10:15 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b excessive fees?
Replies: 4
Views: 460

Re: Newbie roth ira question

The IRA contribution limit has no effect on the 401k limit and vice-versa. And for age 50+, the IRA contribution limit is $6500, not $5500. You may want to do a rollover of the 401K to an IRA. (Not clear to me whether having the IRA titled in your name is an option, but if so, it is preferable. In a...
by House Blend
Mon Aug 25, 2014 8:58 am
 
Forum: Investing - Theory, News & General
Topic: Newbie roth ira question
Replies: 3
Views: 411

Re: Old Employer 401K to Vanguard Traditional IRA

I'm not sure why posters here treat the Back Door Roth as an either/or issue - having pre-tax t-IRA contributions just means that you can't convert the after-tax t-IRA to a Roth and get away with paying no tax. Clearly, if the 401k you are rolling over is large then it negates the benefit of the Ba...
by House Blend
Sun Aug 24, 2014 9:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Old Employer 401K to Vanguard Traditional IRA
Replies: 11
Views: 974

Re: Old Employer 401K to Vanguard Traditional IRA

retiredjg wrote:Does your wife have a new 403k/403b? Could the money be rolled there?

This question has already been asked and answered. Yes and yes, but the new plan has high ERs also.
by House Blend
Sun Aug 24, 2014 8:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Old Employer 401K to Vanguard Traditional IRA
Replies: 11
Views: 974

Re: Old Employer 401K to Vanguard Traditional IRA

hkal, You can think of the 0.93% difference in ER (1.01% - 0.18%) as an annual tax you are paying by using the TD fund in her 401K versus a comparable TD fund in a VG IRA. If you pay this tax for 10-ish years, that's a ~10% tax cost. When thinking about a Roth conversion of this money, compare that ...
by House Blend
Sun Aug 24, 2014 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Old Employer 401K to Vanguard Traditional IRA
Replies: 11
Views: 974

Re: Slice n Dicers: How much have you outperformed?

Also many people cannot calculate their return anyways. I think that's a reason that advisors have done so well: No double checking of any number they report. :) Here is an old post with a chart of three-fund benchmark returns: http://www.bogleheads.org/forum/viewtopic.php?p=1430714#p1430714 Namely...
by House Blend
Sat Aug 23, 2014 9:03 pm
 
Forum: Investing - Theory, News & General
Topic: Slice n Dicers: How much have you outperformed?
Replies: 20
Views: 2465

Re: Question about wiki, SS taxation

How much income other than SS income would one need to have before the 'taxability' of SS benefits maxes out? I can handle that one for you: It maxes out when your "other" (non SS) income is S/2 + $44000 - $12000/(2*0.85) = S/2 + $36,941 (for MFJs) S/2 + $34000 - $9000/(2*0.85) = S/2 + $2...
by House Blend
Sat Aug 23, 2014 8:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about wiki, SS taxation
Replies: 8
Views: 1059

Re: Investors Pour Into Vanguard, Eschewing Stock Pickers

spectec wrote:Eschew Stock Pickers
Eschew Obfuscation

Ah, but I repeat myself

Superfluity does not vitiate.
by House Blend
Thu Aug 21, 2014 2:09 pm
 
Forum: Investing - Theory, News & General
Topic: Investors Pour Into Vanguard, Eschewing Stock Pickers
Replies: 70
Views: 6634

Re: Roth IRA mistake help

1. Whether it is in one IRA or two doesn't matter. Once you make a non-deductible contribution to an IRA, then you file a Form 8606 to document the contribution. If this was a 2010 contribution, and you neglected to file Form 8606 with it, you can do it now without having to file an amended return. ...
by House Blend
Thu Aug 21, 2014 10:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA mistake help
Replies: 2
Views: 583

Re: Why only stocks in a taxable account at retirement?

I've read on this board on a few threads that people do not change how they are invested when they retire. I don't understand why. :?: Some people continue, but I'd say that ramping down equity risk in the few years before and after retirement is very common. And then there's the latest fad making ...
by House Blend
Wed Aug 20, 2014 1:02 pm
 
Forum: Investing - Theory, News & General
Topic: Why only stocks in a taxable account at retirement?
Replies: 26
Views: 1845

Re: POLL: Age for Collecting Social Security Benefits

If [various hypotheticals], then it makes sense to wait. But those are ifs, and the personal ones are hard to estimate until you're close to that point in life. +1. I'd guess that a fair percentage of the votes for age 70 in this poll are from people who won't live that long. My default assumption ...
by House Blend
Wed Aug 20, 2014 10:29 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Age for Collecting Social Security Benefits
Replies: 103
Views: 7367

Re: Roth Conversion - Old Age

Parents are currently 65 & 59. His IRA $480K, Her IRA $140K, $120K in bank. Married, file jointly. Her Pension: $480 His Pension: $1,893 SS: $1,833 Able to live off this so don't need to take withdrawals from His IRA yet and may not have to for a while. They are in the 15% tax bracket and live ...
by House Blend
Tue Aug 19, 2014 4:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion - Old Age
Replies: 31
Views: 1181

Re: Why would anyone own a treasury bond fund?

Shrug. 1) I like the easy-come-easy-go of a fund. Automatic reinvestment of dividends. No need to purchase or sell in large chunks. 2) I don't have much choice: roughly 4% of assets in an IRA, the rest is either not appropriate for 10 year T Bonds (taxable) or not available (employer's plan). 3) I'm...
by House Blend
Tue Aug 19, 2014 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why would anyone own a treasury bond fund?
Replies: 20
Views: 1724

Re: Online property tax payment lost

For property tax, I pay online via ACH.

Maybe it's unusual, but my county makes the payment history of every property available online. So after I pay, I monitor the website daily until I see that my payment has been credited. Usually takes 2-3 days. No need for a receipt.
by House Blend
Mon Aug 18, 2014 10:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Online property tax payment lost
Replies: 23
Views: 1398

Re: Retirement Party Discussions

But no one could answer in a satisfactory way why anyone in their right mind would use a Morgan Stanley except out of ignorance. Is that it, simple ignorance? Ostentation. You want everyone to know what kind of car you drive, and how many homes you own. Especially at parties. And so you want your f...
by House Blend
Sun Aug 17, 2014 6:12 pm
 
Forum: Investing - Theory, News & General
Topic: Retirement Party [Investment] Discussions
Replies: 50
Views: 4146

Re: TIPS vs SVF

In general, I think endless agonizing over how to slice and dice the fixed income side of the portfolio should be reserved for those with a bond heavy portfolio. So, typically, those nearing or in retirement. (Or for Bogleheads who like to obsess.) If you (generic you) are 80% equity, just pick a bo...
by House Blend
Fri Aug 15, 2014 4:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIPS vs SVF
Replies: 12
Views: 1339

Re: US Equity Benchmark Options

And the S&P 500 fund probably has a lower ER than either of the Growth or Value indexes.
by House Blend
Thu Aug 14, 2014 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: US Equity Benchmark Options
Replies: 4
Views: 225

Re: How to "fix" bad investments early in the game?

As for my Roth IRA/Annuity nonsense - what are my options? Obviously, I can quit contributing and just leave it to ride (There is nearly $9K in it now). I realize this is probably plan specific, and I will look into it, but is there a benefit to trying to just get my money out and start over with V...
by House Blend
Thu Aug 14, 2014 6:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to "fix" bad investments? (Whole Life & Annuity Roth)
Replies: 5
Views: 499

Re: "Cost" of foreign tax on international investing

Do you agree that for the guy in the 25% tax bracket, the foreign tax withholding is irrelevant? Irrelevant in what sense? You want to know what your tax liability will be when you hold $100 worth of international fund X in taxable versus $100 of something else. That's a key factor in fund placemen...
by House Blend
Mon Aug 11, 2014 7:02 pm
 
Forum: Investing - Theory, News & General
Topic: "Cost" of foreign tax on international investing
Replies: 19
Views: 1410

Re: Does domestic over weighting qualify as active managemen

If you want "passive management" to mean holding only the market portfolio.... ...and you take the view that no one actually does that (BTW, what is the market portfolio for bonds anyway? Does it include munis? Junk? TIPS?), then IMO there's no point in even using the term. Or its presumed...
by House Blend
Mon Aug 11, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: Does domestic over weighting qualify as active management?
Replies: 26
Views: 1226

Re: Wills, Spouses, Prenups, etc.

Drew777 wrote:I think this thread has run its course.

Drew,

Just as a point of information: if you, as the original poster, feel that your questions have been answered, you can PM a moderator and request that the thread be locked.
by House Blend
Mon Aug 11, 2014 5:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wills, Spouses, Prenups, etc.
Replies: 67
Views: 3742

Re: "Cost" of foreign tax on international investing

I agree with you that for those holding international in tax-deferred, the foreign tax withholding amounts to a 'cost". But for most who hold international in taxable, there is no cost . OK, so you prefer the first interpretation of what Berntson meant by "it's a wash". We have zero ...
by House Blend
Mon Aug 11, 2014 4:05 pm
 
Forum: Investing - Theory, News & General
Topic: "Cost" of foreign tax on international investing
Replies: 19
Views: 1410

Re: "Cost" of foreign tax on international investing

For the investor in the 25% tax bracket, the foreign tax withholding is a non-event (yes, it is a wash). If there was no foreign tax withholding, you would have the following: Depends on what berntson meant by "more or less a wash". If it meant "you get all the foreign tax back and o...
by House Blend
Mon Aug 11, 2014 1:39 pm
 
Forum: Investing - Theory, News & General
Topic: "Cost" of foreign tax on international investing
Replies: 19
Views: 1410

Re: Endowments: Paying for complexity or performance?

On withdrawal rates - endowments rates do vary - not sure exact policy at Harvard - but Yale's is based on 80 percent of last year's spending with 20 percents adjusted for market level and inflation (again as per Swensen's book). I would question the sustainability of a 4.5% withdrawal rate, and ce...
by House Blend
Sun Aug 10, 2014 10:32 pm
 
Forum: Investing - Theory, News & General
Topic: Endowments: Paying for complexity or performance?
Replies: 14
Views: 1057

Re: Simple Yield Question, Hoping for Easy Answer

Bond Funds (eg, Vanguard Intermediate Term Tax Exempt, VWIUX, 0.12) Stock Funds (eg, TSM Admiral, VTSAX, 0.05) For these, I would use the most recent "distribution yield", but the farther out you extrapolate, the less reliable the estimate will be. You can get the distribution yield for V...
by House Blend
Sun Aug 10, 2014 3:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Simple Yield Question, Hoping for Easy Answer
Replies: 6
Views: 481

Re: "Cost" of foreign tax on international investing

Houseblend: My impression is that foreign taxes on dividends and the foreign tax credit are more or less a wash for most investors (as long as those funds are held in a taxable account). Is that right? No. Again it depends on brackets, and percentage qualified. A back of envelope calculation using ...
by House Blend
Sun Aug 10, 2014 2:29 pm
 
Forum: Investing - Theory, News & General
Topic: "Cost" of foreign tax on international investing
Replies: 19
Views: 1410

Re: Fear of Disclosing Net Worth

Do others have these concerns about letting one party know all of your assets? Does value of the consulting comments outweigh downstream risks? (TIAA, Schwab, Vanguard)? I have accounts with all three and am least inclined to share with Schwab. I have accounts at T-C and VG. Every so often T-C trie...
by House Blend
Sun Aug 10, 2014 2:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fear of Disclosing Net Worth
Replies: 60
Views: 8128

Re: "Cost" of foreign tax on international investing

^Yes, more like 5.75% of the dividend last year. It varies. But if you can claim the foreign tax credit, then that means you have it in a taxable account. When you account for the Federal and State tax due on your dividends, you are typically[*] losing even more to tax than someone who has the fund ...
by House Blend
Sun Aug 10, 2014 1:20 pm
 
Forum: Investing - Theory, News & General
Topic: "Cost" of foreign tax on international investing
Replies: 19
Views: 1410

Re: New VG Performance Charts

^If you read the fine print about what VG calls "Personal Rate of Return", you'll see that it is IRR (internal rate of return). And yes, it is annualized. So, unless you have no transactions in the account over the time period in question except dividend reinvestments, it will almost alway...
by House Blend
Sun Aug 10, 2014 11:25 am
 
Forum: Investing - Help with Personal Investments
Topic: New VG Performance Charts
Replies: 17
Views: 2009

Re: Investing for those in the 15% tax bracket

Tax deferred accounts and Roth accounts treat cap gains, whether short or long, and dividends, whether qualified or not, the same way. The only difference is whether you are taxed at the beginning (Roth) at tax rate #1 (Roth), or at withdrawal/conversion time at tax rate #2 (deferral). If those two...
by House Blend
Mon Aug 04, 2014 6:43 pm
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2773

Re: Just started my taxable account!

I finally took the plunge and made my first taxable investment - $10k of VTSAX!! I'm really wishing I had done it back in March, but I needed the time to get comfortable with the idea. I still have $10k more I can put in taxable, I'm just not sure exactly where to put it yet. I have $21k in ibonds,...
by House Blend
Mon Aug 04, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Just started my taxable account!
Replies: 6
Views: 675

Re: Investing for those in the 15% tax bracket

Tax deferred accounts and Roth accounts treat cap gains, whether short or long, and dividends, whether qualified or not, the same way. The only difference is whether you are taxed at the beginning (Roth) at tax rate #1 (Roth), or at withdrawal/conversion time at tax rate #2 (deferral). If those two...
by House Blend
Mon Aug 04, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2773

Re: Investing for those in the 15% tax bracket

And this is where I add my opinion that QDI/LTCG favorable treatment is beneficial enough that it is worth considering muni bonds to keep one in the 15% MTB. It's just gravy if the TEY is comparable to TBM. I don't think this is relevant to the permanently-in-the-15%-bracket scenarios of the OP, bu...
by House Blend
Mon Aug 04, 2014 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2773

Re: Investing for those in the 15% tax bracket

asif408 wrote:Let's assume I am in the 15% tax bracket this year. I put in $100 into a Roth IRA and $100 into a traditional IRA this year.

That's not a fair comparison.

The options are: put $85 in a Roth and send $15 to Uncle Sam, or put $100 in a trad IRA....
by House Blend
Mon Aug 04, 2014 12:41 pm
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2773

Re: Stop Passing Up This Great Deal - In Money Magazine

^I suppose you can try to argue that if one writes "Many retirees in the 15% bracket actually have a marginal rate of X% or Y% when SS taxes are added in," then the one and only mistake here is that X% and Y% should represent possible marginal rates on SS income, so something like 50% or 8...
by House Blend
Mon Aug 04, 2014 11:51 am
 
Forum: Investing - Theory, News & General
Topic: Stop Passing Up This Great Deal - In Money Magazine
Replies: 80
Views: 11085

Re: Investing for those in the 15% tax bracket

You do need to assume that this tax bracket, and the special 0% rate on LTCG and QDI that goes with it, persists through your investing life. Even as recently as 2008(?), the LTCG/QDI rate was 5%, not 0%. You also need to assume you always live in a no income tax state. You also need to assume that ...
by House Blend
Mon Aug 04, 2014 11:00 am
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2773

Re: Tax-Efficient Account for Retirement

Yes, to reinforce bcjb's point, make sure you understand the Backdoor Roth. Using it would be a no-brainer in your situation, unless you have large tax-deferred amounts in your traditional IRAs. If you have small tax-deferred amounts, it might be worthwhile to take the tax hit now and convert them t...
by House Blend
Fri Aug 01, 2014 11:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax-Efficient Account for Retirement
Replies: 30
Views: 2641

Re: Allocation review and advice for better use of "cash"

^However, it appears that you have no IRA accounts. Did you know that you can withdraw your Roth contributions at any time and any age without penalty? I think it is close to a no-brainer that you should be putting $5.5K + $5.5K into his and hers Roth IRAs every year until you have no more excess ca...
by House Blend
Sun Jul 20, 2014 8:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Allocation review and advice for better use of "cash"
Replies: 5
Views: 1197

Re: Allocation review and advice for better use of "cash"

Our household is pretty conservative with money, no debt, decent retirement portfolio and regular contributions, a little bit of speculative sideline with essentially experimental (play) money, and mostly everything else has simply gone into standard FDIC-insured accounts. I've let that grow too la...
by House Blend
Sat Jul 19, 2014 8:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Allocation review and advice for better use of "cash"
Replies: 5
Views: 1197

Re: Apple TV

I watched the entire World Cup on the Apple TV via the WatchEspn App. Between that and broadcast channels, I don't need cable anymore. Hate to break it to you, but unless you actually have a subscription to ESPN (via your cable provider, usually), you can't access WatchESPN. Until you can pay separ...
by House Blend
Sat Jul 19, 2014 8:10 am
 
Forum: Personal Consumer Issues
Topic: Apple TV
Replies: 43
Views: 3815

Re: Anyone using TIAA-CREF Brokerage Svcs? Just curious.

Anyway that was seven years ago. It seems odd to me that I've heard absolutely nothing about TIAA-CREF brokerage services in this forum. It is pure, pure curiosity on my part but I'd like to know how it's doing, what it's like. Is anyone familiar with it? My $0.02. I don't know much about their bro...
by House Blend
Sun Jul 06, 2014 4:38 pm
 
Forum: Investing - Theory, News & General
Topic: Anyone using TIAA-CREF Brokerage Svcs? Just curious.
Replies: 4
Views: 475

Re: I think I might have too much saved in a 401k

At any rate the reason I mentioned it in the first place was to give some context to how I grew my 401k and why I felt concerned that continued similar performance going forward could result in RMDs becoming a problem. You keep saying that future RMDs might be a "problem". Maybe, in the s...
by House Blend
Sun Jul 06, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: I think I might have too much saved in a 401k
Replies: 40
Views: 4220
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