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Does buying before a distribution matter in 401k/roth ira?

The advice is typically not to buy before a distribution event because of taxes.

Is this still true for tax deferred or tax free accounts such as 401k/Roth IRA/HSA or does it not matter?
by JustinR
Sat Nov 22, 2014 4:37 pm
 
Forum: Investing - Theory, News & General
Topic: Does buying before a distribution matter in 401k/roth ira?
Replies: 2
Views: 400

Re: Does investing in a 401k actually save any money?

Let's assume overall tax rates stay the same for 30 years since none of us has a crystal ball. Let's further assume that someone who is in the 33% marginal tax bracket during his working career will be in the 28% tax bracket when he retires. Let's further assume he's an index fund investor and over...
by JustinR
Fri Nov 21, 2014 10:52 am
 
Forum: Investing - Theory, News & General
Topic: Does investing in a 401k actually save any money?
Replies: 61
Views: 5559

Re: Confused by Wiki Advice on HSA Spending

I don't understand the examples that are like "pay expense from HSA, contribute that amount to 401k." What? I understand the examples where you contribute the money to a Roth IRA, but I don't understand how paying medical expenses from your HSA has anything to do with contributing to a 401...
by JustinR
Tue Nov 11, 2014 10:56 pm
 
Forum: Investing - Theory, News & General
Topic: Confused by Wiki Advice on HSA Spending
Replies: 22
Views: 2174

Re: A Returns Spreadsheet for Bogleheads

One weakness of this is that it requires your balance at the end of each month. My provider doesn't give me this info, so I can't use it. I only have the balance at the end of each year.

Thank you for the effort though!
by JustinR
Sun Nov 02, 2014 10:28 pm
 
Forum: Investing - Theory, News & General
Topic: A Returns Spreadsheet for Bogleheads
Replies: 31
Views: 3593

Re: Can anybody to backdoor Roth IRA investments?

VMMXX seems to distribute dividends on the 30th, so I should wait until November right?

https://personal.vanguard.com/us/JSP/Fu ... ab=0&tab=4
by JustinR
Wed Oct 22, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can anybody to backdoor Roth IRA investments?
Replies: 14
Views: 1708

Re: Why do people use age instead of life expectancy?

I have always found the "age in bonds" discussions a bit bizarre. Your age as such MEANS NOTHING from an investment point of view. It is a useless factoid. It is being used as a proxy for life expectancy by people whose Victorian delicacy prohibits talking about death. . So the question i...
by JustinR
Mon Oct 20, 2014 4:02 am
 
Forum: Investing - Theory, News & General
Topic: Why do people use age instead of life expectancy?
Replies: 43
Views: 2952

Re: The Mega Backdoor Roth IRA

What is this feature called, so that I can ask my 401k plan administrator about it?

After-tax contributions?
by JustinR
Mon Oct 20, 2014 1:26 am
 
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 181
Views: 29486

Is the backdoor Roth IRA legal?

I know that technically it is. But is it really?

I know the IRS doesn't write the laws, I just wonder if it's worth the risk if any.
by JustinR
Sun Oct 19, 2014 7:13 pm
 
Forum: Investing - Theory, News & General
Topic: Is the backdoor Roth IRA legal?
Replies: 13
Views: 1824

What's a good fund to do a backdoor Roth IRA with?

I've read a tip somewhere to buy a fund that doesn't move much so the value doesn't change during the backdoor Roth IRA conversion. And then exchange the fund for what you actually want later.

Is this a good tip? What fund at Vanguard would be best for this?
by JustinR
Sun Oct 19, 2014 3:55 am
 
Forum: Investing - Theory, News & General
Topic: What's a good fund to do a backdoor Roth IRA with?
Replies: 5
Views: 591

Re: Dollar averaging or single market entry

I would like to start with investing for the long term according to the bogglehead principles (I am 26 years old). My idea would be to save up money first and invest this once or twice a year at a fixed date in order to keep transaction costs low. At the moment I have saved up around $40,000 which ...
by JustinR
Thu Oct 09, 2014 3:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Dollar averaging or single market entry (in Switzerland)
Replies: 18
Views: 1295

Re: Bill Gross moving from PIMCO to Janus, Monday

Was going to rebalance into PTTRX this weekend, but now I'm hesitant.

At this time, should I wait and see what happens? Any predictions on what's going to happen?
by JustinR
Sat Sep 27, 2014 3:56 am
 
Forum: Investing - Theory, News & General
Topic: Bill Gross moving from PIMCO to Janus, Monday
Replies: 113
Views: 10467

Marriage - Community Property & Investment Gains

In California, how does marriage work with capital gains and dividends? Say that Jane owns 100 shares of VTSMX before the marriage. 1. Do gains in this account after the marriage count as community property? 2. Do dividends after the marriage count as community property? 3. What if Bob, her husband,...
by JustinR
Tue Sep 23, 2014 12:12 am
 
Forum: Investing - Theory, News & General
Topic: Marriage - Community Property & Investment Gains
Replies: 2
Views: 368

Re: The dangerous practice of rebalancing...

What if the answer to rebalancing in a falling market to double your rebalancing schedule?

For example, if you rebalance every year, do it every two years. If you rebalance every 6 months, do it every 12 months. Etc.
by JustinR
Mon Sep 15, 2014 2:40 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 191
Views: 14829

Re: "Why 97% of People Don't Use 529 College Savings Plans."

I'm in California. I haven't read very much about 529 plans, is it worth pursuing if you've maxed out all your other retirement funds?
by JustinR
Wed Sep 10, 2014 7:36 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 11029

Couples of diff ages: how do you handle asset allocations?

Do you average the two retirement dates, or do you account for the difference in ages in some way?
by JustinR
Sat Sep 06, 2014 5:08 am
 
Forum: Investing - Theory, News & General
Topic: Couples of diff ages: how do you handle asset allocations?
Replies: 13
Views: 1201

Re: Equities in tax-advantaged = bad?

https://personal.vanguard.com/us/insights/article/tax-time-kilroy-082014 Compare that with an investment in a broad stock index fund. The majority of its return over time comes from price appreciation, which is taxed as a capital gain. If you have held the fund for more than a year, the return is c...
by JustinR
Fri Sep 05, 2014 9:21 pm
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 847

Re: Equities in tax-advantaged = bad?

Raladic wrote:The key word here is tax-deferred (like Traditional IRA) because you pay income tax at withdrawal.
It's still better in a tax-free account (like Roth IRA) which is growth untaxed.


So tax-free > taxable > tax-deferred?
by JustinR
Thu Sep 04, 2014 11:04 pm
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 847

Equities in tax-advantaged = bad?

https://personal.vanguard.com/us/insights/article/tax-time-kilroy-082014 Compare that with an investment in a broad stock index fund. The majority of its return over time comes from price appreciation, which is taxed as a capital gain. If you have held the fund for more than a year, the return is co...
by JustinR
Thu Sep 04, 2014 10:52 pm
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 847

Poll: What is your International allocation?

Bogleheads, let's see what your international exposure is

Edit: For a lot of people, this consideration is only for equities, but if you do split domestic/intl for your bonds too then feel free to include bonds as well.
by JustinR
Sun Aug 10, 2014 10:19 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: What is your International allocation?
Replies: 5
Views: 634

Re: Going 60+% international? (US resident)

Mr. Bogle, in Common Sense on Mutual Funds, devotes an entire chapter to Global Investing. You may or may not agree, but after reading his chapter you will realize that he is extremely well informed on the subject and did not come to his recommendation lightly ("up to 20% international")....
by JustinR
Sun Aug 10, 2014 7:34 am
 
Forum: Investing - Theory, News & General
Topic: Going 60+% international? (US resident)
Replies: 83
Views: 6269

Re: Going 60+% international? (US resident)

Mr. Bogle, in Common Sense on Mutual Funds, devotes an entire chapter to Global Investing. You may or may not agree, but after reading his chapter you will realize that he is extremely well informed on the subject and did not come to his recommendation lightly ("up to 20% international")....
by JustinR
Sun Aug 10, 2014 7:05 am
 
Forum: Investing - Theory, News & General
Topic: Going 60+% international? (US resident)
Replies: 83
Views: 6269

Re: International investing. A good call by our mentor.

I'm confused: isn't the main Boglehead philosophy to buy the market and leave your biases at the door?
by JustinR
Fri Aug 08, 2014 1:00 am
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 12973

Re: Ultimate Buy and Hold - 8 slices vs 4

This is an excellent thread and very informative. Merriman now recommends 10 funds (adding domestic and international REIT). I wonder how the 4 fund approach recommended by Trev performs vs. the 10 fund recommendation. Perhaps there is little material difference. http://paulmerriman.com/pauls-mutua...
by JustinR
Sun Aug 03, 2014 6:00 am
 
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 633
Views: 222430

Re: Beware Vanguard DOES NOT update all your account values

From what I can guess, the reason it does this is because on the Holdings page, the numbers are updated live. The balance totals are like an excel sheet formula, simply multiplying the shares field with the price field to get you a number. For the other pages, instead of doing any math, it's pulling...
by JustinR
Sun Apr 20, 2014 10:21 pm
 
Forum: Investing - Theory, News & General
Topic: Beware VG DOES NOT update all your account values [UPDATE]
Replies: 61
Views: 7010

Re: Green Bogleheads discussing Target Stock

You are not smarter than the market.

Target's future has already been priced into the current price by the market.
by JustinR
Mon Mar 17, 2014 3:26 am
 
Forum: Investing - Theory, News & General
Topic: Green Bogleheads discussing Target Stock
Replies: 36
Views: 2714

I Bonds - buy now or wait for May?

Or wait for April to see the new inflation rate (does this matter?)

Or half now and half in May?
by JustinR
Mon Mar 10, 2014 12:54 am
 
Forum: Investing - Theory, News & General
Topic: I Bonds - buy now or wait for May?
Replies: 25
Views: 4761

Gross vs Net Expense Ratio?

Which is the one that Bogleheads look at?

Vanguard calls it "Total Expense Ratio", is it referring to gross or net?
by JustinR
Sat Feb 22, 2014 8:00 am
 
Forum: Investing - Theory, News & General
Topic: Gross vs Net Expense Ratio?
Replies: 2
Views: 341

Re: Article:How costly is the end of the year match

A good article which points out AOL may have done us a favor . http://www.nytimes.com/2014/02/15/your-money/beware-of-the-end-of-year-401-k-match.html?rref=business&module=Ribbon&version=origin&region=Header&action=click&contentCollection=Business%20Day&pgtype=article Not ex...
by JustinR
Mon Feb 17, 2014 5:22 am
 
Forum: Investing - Theory, News & General
Topic: Article:How costly is the end of the year match
Replies: 29
Views: 2492

Re: Are stock returns compound returns?

Disregarding dividends, stocks don't compound.

There's nothing to compound, people just call it that because they calculate returns annually.

Without dividends, a share simply gains or loses value. Am I wrong in this?
by JustinR
Sat Feb 15, 2014 6:01 pm
 
Forum: Investing - Theory, News & General
Topic: Are stock returns compound returns?
Replies: 13
Views: 1471

Re: Net Worth Survey, 2014 Edition

For simplicity's sake, there should be three fields:

- Value of investments
- Value of other assets
- Debt

Make everything else, including SS and pensions, an optional field.
by JustinR
Sun Jan 05, 2014 4:50 pm
 
Forum: Investing - Theory, News & General
Topic: Net Worth Survey, 2014 Edition
Replies: 149
Views: 23040

Re: Invest all at once or DCA-one of most asked questions I

I've quite honestly usually skip the DCA threads--for some reason I read this one. Anyhow, It seems to me that the advocates of LS often skip over a critical question--lump sum into what? sperry8 above gives a good example of a realistic lump-sum scenario (selling a business). Let me make up some o...
by JustinR
Sun Jan 05, 2014 6:22 am
 
Forum: Investing - Theory, News & General
Topic: Invest all at once or DCA-one of most asked questions I get
Replies: 125
Views: 5659

Re: Invest all at once or DCA-one of most asked questions I

DCA makes zero sense. None. It makes negative sense. It's a completely flawed method that only exists because it appeals to human emotions. It's a purely emotional method of investing. Lump sum, on the other hand, makes a lot of sense. We invest because we expect the market to go up. If you don't ex...
by JustinR
Sat Jan 04, 2014 4:45 am
 
Forum: Investing - Theory, News & General
Topic: Invest all at once or DCA-one of most asked questions I get
Replies: 125
Views: 5659

Re: What was your 2013 return?

MnD wrote:Here's a link on how to compute your return using Excel xirr
http://whitecoatinvestor.com/how-to-cal ... -function/


Do distributions that were deposited into your bank (instead of reinvested) count as withdrawals?
by JustinR
Thu Jan 02, 2014 5:37 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] What was your 2013 return?
Replies: 209
Views: 9578

Last 401k contribution of 2013 gets processed in January?

So there's typically a week delay after your paycheck in which the 401k administrator actually processes the transaction.

If this takes place in January, does it count as a 2013 contribution still?
by JustinR
Wed Jan 01, 2014 5:00 am
 
Forum: Investing - Theory, News & General
Topic: Last 401k contribution of 2013 gets processed in January?
Replies: 1
Views: 231

Re: buy/hold vs. buy/hold/rebalance

cowboyj65 wrote:It is not intuitively evident to me how changing the percentage of my portfolio in a sector that is currently doing well (or not doing well), in order to get back to my AA, is better in the “long term” than just “holding”.

Define "better."
by JustinR
Sun Dec 08, 2013 7:11 am
 
Forum: Investing - Theory, News & General
Topic: buy/hold vs. buy/hold/rebalance
Replies: 64
Views: 3865

Re: "There is a rebalancing bonus ... false"

Can someone explain the above like I'm five years old?
by JustinR
Thu Nov 14, 2013 12:23 pm
 
Forum: Investing - Theory, News & General
Topic: "There is a rebalancing bonus ... false"
Replies: 188
Views: 14151

What are the chances of HSA reimbursement laws changing?

Say you let your HSA grow tax-free and pay for your medical bills using your taxed income, saving all your receipts and planning to reimburse yourself after you retire. Is there a chance that the government could change the laws between now and then, screwing you out of reimbursing yourself for prev...
by JustinR
Mon Nov 11, 2013 10:26 am
 
Forum: Investing - Theory, News & General
Topic: What are the chances of HSA reimbursement laws changing?
Replies: 5
Views: 441

Re: "There is a rebalancing bonus ... false"

So...what's the consensus? Is or isn't there a rebalancing bonus? It depends. If investments fluctuate with no real trend, there is a bonus. If investments move with a trend, there may even be a penalty. Suppose you have two investments, A and B. Here are their prices: Case 1: Start Mid End A $1.00...
by JustinR
Sun Nov 10, 2013 4:06 am
 
Forum: Investing - Theory, News & General
Topic: "There is a rebalancing bonus ... false"
Replies: 188
Views: 14151

Re: "There is a rebalancing bonus ... false"

So...what's the consensus?

Is or isn't there a rebalancing bonus?
by JustinR
Sat Nov 09, 2013 9:38 pm
 
Forum: Investing - Theory, News & General
Topic: "There is a rebalancing bonus ... false"
Replies: 188
Views: 14151

Some HSA questions

1) When you withdraw for non-medical expenses, are you federally taxed on earnings (capital gains/dividends) + principle, or just the principle? I keep reading that "interest and earnings are tax-free", but it's unclear if this applies to non-medical distributions. 2) Am I correct in that ...
by JustinR
Mon Nov 04, 2013 5:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Some HSA questions
Replies: 4
Views: 451

Re: HSA help

Another option... http://www.alliantcreditunion.org/depositsinvestments/healthsavings/ Here's a list of funds: https://www.savedaily.com/partners/acu/funds.asp?Type=30 The monthly fee to invest is $5.95 ($71.4/yr) and you have to keep $1000 in savings: The HSA Investment option through Self Managed ...
by JustinR
Sun Nov 03, 2013 6:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA help
Replies: 16
Views: 2042

Re: Feeling like I am forced to contribute more to retiremen

It'll pay off 40 years from now.

Saving for retirement isn't really fun for those of us who are sooooo far away from that day.
by JustinR
Sat Nov 02, 2013 10:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Feeling like I am forced to contribute more to retirement?
Replies: 82
Views: 6478

Re: HSA investments- are you taxed when you sell/exchange fu

1) When you withdraw for non-medical expenses, are you federally taxed on earnings (capital gains/dividends) + principle, or just the principle? I keep reading that "interest and earnings are tax-free", but it's unclear if this applies to non-medical distributions. 2) Am I correct in that ...
by JustinR
Sat Nov 02, 2013 8:50 am
 
Forum: Investing - Help with Personal Investments
Topic: HSA investments- are you taxed when you sell/exchange funds?
Replies: 6
Views: 712

Re: HSAs in California

If you withdraw from your HSA for purposes other than medical expenses, you will pay federal tax on the withdrawals. If you hold stocks in your HSA and there is a stock-market boom, your HSA may be more than enough to cover your medical expenses, so you will have to make some taxable withdrawals. I...
by JustinR
Fri Nov 01, 2013 2:53 am
 
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 32
Views: 4878

HSA investments- are you taxed when you sell/exchange funds?

Are you taxed when you exchange funds in an HSA, or is it tax-free like a Roth IRA and 401k?

I'm wondering if an HSA investment account is a good place to do rebalancing.
by JustinR
Thu Oct 31, 2013 6:58 am
 
Forum: Investing - Help with Personal Investments
Topic: HSA investments- are you taxed when you sell/exchange funds?
Replies: 6
Views: 712

Re: A Social Security "working couple bonus?"

Edit: Ooh right, I divided the wrong way.
by JustinR
Sun Oct 27, 2013 11:11 am
 
Forum: Investing - Theory, News & General
Topic: A Social Security "working couple bonus?"
Replies: 18
Views: 1704

Re: HSAs in California

So is there any point of using an HSA if you live in California, for either investing purposes or medical purposes? You can invest your HSA in Treasury bonds or TIPS, so that gains on the HSA will not be taxable in California either. (And TIPS are a particularly good choice for an HSA, as they redu...
by JustinR
Sun Oct 27, 2013 10:24 am
 
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 32
Views: 4878

Re: HSAs in California

So is there any point of using an HSA if you live in California, for either investing purposes or medical purposes? You can invest your HSA in Treasury bonds or TIPS, so that gains on the HSA will not be taxable in California either. (And TIPS are a particularly good choice for an HSA, as they redu...
by JustinR
Sat Oct 26, 2013 3:49 am
 
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 32
Views: 4878

Re: Net Worth Survey 2014

- Would cash be included in "portfolio" or "other assets"? The more specific you get with each question, the better I think.

- For Social Security, shouldn't it also be "must be receiving, not anticipated" like inheritances?
by JustinR
Fri Oct 25, 2013 11:44 pm
 
Forum: Investing - Theory, News & General
Topic: Net Worth Survey 2014
Replies: 58
Views: 9289

Re: Improved Net Worth by Age [and plot]

When you do the new survey, please make sure to leave out pensions and social security , and have it in giant red letters on the actual survey. For the younger crowd, we have no idea what either of those entail and it makes the whole comparison among the ages apples and oranges if older people are ...
by JustinR
Thu Oct 24, 2013 3:09 am
 
Forum: Investing - Theory, News & General
Topic: Improved Net Worth by Age [and plot]
Replies: 250
Views: 38372
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