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Re: "At Vanguard my voice is my password"

JamesSFO wrote:I have used it, it can avoid the need for medallion signature guarantees.


Same here
by Wagnerjb
Wed Apr 16, 2014 9:24 pm
 
Forum: Personal Consumer Issues
Topic: "At Vanguard my voice is my password"
Replies: 24
Views: 2170

Re: Looking at top 1% for actionable insight

For an "actionable insight" that applies to younger forum members wrestling with educational and career choices, for example, the fact the IRS's top one percent statistics show that big chunks of the one percent club own a small business (maybe 22%?) or own a slice of a professional servi...
by Wagnerjb
Wed Apr 16, 2014 11:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Looking at top 1% for actionable insight
Replies: 66
Views: 6322

Re: Looking at top 1% for actionable insight

Basic Psychology: My success are due to hard work and my failures are due to bad luck. Your success are because of good luck and your failures are because your lazy.:) As always the truth is in between. Basic Pyschology: If I can convince you that your success is due to good luck, then my failures ...
by Wagnerjb
Tue Apr 15, 2014 8:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Looking at top 1% for actionable insight
Replies: 66
Views: 6322

Re: Looking at top 1% for actionable insight

How about "be really really lucky"? Is that actionable? The link provided by DaleMaley has a quote: The 99th to 99.5th percentiles largely include physicians, attorneys, upper middle management, and small business people who have done well. I know a lot of these people, and I wouldn't dis...
by Wagnerjb
Tue Apr 15, 2014 6:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Looking at top 1% for actionable insight
Replies: 66
Views: 6322

Re: NYTimes: Inexpensive Advice for Index-Fund Investments

livesoft wrote: Real human beings generally answer one's questions on this forum.


What do you call people who ask the OP if they have searched the internet for the answer? :D
by Wagnerjb
Tue Apr 15, 2014 8:34 am
 
Forum: Investing - Help with Personal Investments
Topic: NYTimes: Inexpensive Advice for Index-Fund Investments
Replies: 15
Views: 2379

Re: Random individual stocks as supplement to indexing

It would be easier if you bought index funds for small cap stocks and international, since it is harder to achieve diversification in those areas with individual stocks. Then, use individual stocks in the US Large cap area. Buying the bigger names while paying attention to sector diversification is ...
by Wagnerjb
Tue Apr 15, 2014 8:17 am
 
Forum: Investing - Theory, News & General
Topic: Random individual stocks as supplement to indexing
Replies: 13
Views: 959

Re: less you need social security, earlier you should claim

I am 57, but have saved enough to be "at risk". While the economics suggest delaying filing for SS is a financially wise move, I will certainly consider this risk when considering whether delaying SS is wise FOR ME PERSONALLY.

Best wishes.
by Wagnerjb
Sun Apr 13, 2014 11:40 am
 
Forum: Investing - Theory, News & General
Topic: less you need social security, earlier you should claim
Replies: 39
Views: 2781

Re: deferred comp plans

The tax benefits of deferral and arbitrage (deferring at rates of 40%+, paying at much less) are very substantial and worth considering. The offset is the bankruptcy risk. Here is how I suggest people manage the risk: A) keep the DC plan balance below a threshold. I used a 10% target personally. Wit...
by Wagnerjb
Sun Apr 13, 2014 11:21 am
 
Forum: Personal Finance (Not Investing)
Topic: deferred comp plans
Replies: 20
Views: 1406

Re: deferred comp plans

Are you in a high tax bracket such that the tax deferral is valuable?

Are you close enough to retirement such that the duration of your company default risk is limited?

How much of your portfolio will be in the NQDC plan?


Best wishes.
by Wagnerjb
Fri Apr 11, 2014 9:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: deferred comp plans
Replies: 20
Views: 1406

Re: Lump Sum vs Annuity: A New Question?

The easy question is still unanswered: Will the lump sum buy your pension as an annuity? http://www.immediateannuities.com The interest rate assumptions used to calculate the lump sum are irrelevant. The more difficult question is, what will you do instead? Using the lump sum, can you buy a bond la...
by Wagnerjb
Fri Apr 11, 2014 8:56 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

90% of the treasury rate is an excellent deal. Most lump sums are based on the corporate bond rate, so not only are you starting from a lower rate, but then you get to take 10% off the top! Lower rates mean larger lump sums, and this is a strong argument for the lump sum. My company's pension Lump ...
by Wagnerjb
Fri Apr 11, 2014 9:06 am
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Always understand taxes do not trust software

If I can't trust the software and have to do it by hand anyway, there's no point in using the software. It's better for me to just trust the software and deal with any problems that crop up later. Much less hassle that way, even if there are eventually problems I have to deal with. Missing out on a...
by Wagnerjb
Fri Apr 11, 2014 8:39 am
 
Forum: Personal Consumer Issues
Topic: Always understand taxes do not trust software
Replies: 33
Views: 2679

Re: Lump Sum vs Annuity: A New Question?

Also, if the lump sum is the normal form of payment (like for a cash balance pension plan), then the lump sum isn't really dependent on today's interest rates. In fact, for a cash balance pension plan, when interest rates go up the lump sum stays the same but the annuity value increases. -g$$ Yes. ...
by Wagnerjb
Thu Apr 10, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

You can disagree if you want, but the annuity may very well be generating that kind of return. Also, if the annuity includes an early retirement subsidy, but the lump sum does not (many don't), then he will have to live much longer than the actuarially expected age to break even. -g$$ In my company...
by Wagnerjb
Thu Apr 10, 2014 4:36 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

The real issue that bothers me is that I can't really do any math on the Lump Sum / pension decision because no exact numbers are given. Saying the Lump Sum is low 7 figures and the pension is low 6 figures only tells me the difference is about 10-20 times which is a pretty wide gap. For your lump ...
by Wagnerjb
Thu Apr 10, 2014 2:13 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

... fixed income securities, short-term and safe, ... is unlikely, IMO to return anything near to that of an annuity. L. I respectfully disagree. The pension does not give the annuitant the benefit of equity-type returns. The Lump Sum will have a higher total return if the person dies before his ac...
by Wagnerjb
Thu Apr 10, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

Let me put it in a slightly different light --- whether a company goes bankrupt or not, in most cases will not affect their pension plan at all - in this I have some history, having received one of my pensions going on 7+ years from a company that did file for bankruptcy. The pension was not affect...
by Wagnerjb
Wed Apr 09, 2014 7:09 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

[Well for starters it mitigates longevity risk (aka, the risk that you will run out of money before you die). Longevity is one of the primary risks a retiree faces. The Lump Sum strategy deals with that by purchasing an immediate annuity (several, with different insurance companies) later in retire...
by Wagnerjb
Wed Apr 09, 2014 9:24 am
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Lump Sum vs Annuity: A New Question?

What you have to realize is that these risks are in no way equal. In fact it is quite easy to see when you stop and think about it, that if you take the lump sum, the risk is orders of magnitude larger for a loss than if an insurance company and the PBGC are backing the money. The longer you hang o...
by Wagnerjb
Wed Apr 09, 2014 8:58 am
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Always understand taxes do not trust software

I have said this before. When you enter data in a tax program you should already know what should show up on what line of the 1040. If you don't, you have no way to check whether you did the job correctly or not. The software is just a tool. If it becomes a crutch, you are in trouble. I strongly su...
by Wagnerjb
Wed Apr 09, 2014 8:48 am
 
Forum: Personal Consumer Issues
Topic: Always understand taxes do not trust software
Replies: 33
Views: 2679

Re: Lump Sum vs Annuity: A New Question?

Big John: many of the posters are focused on the credit risk of your pension - where a failure by your employer would result in you taking a serious haircut in your monthly payments. Here is how I see the pro's and the con's of this decision: a) When you take the Lump Sum, you eliminate that credit ...
by Wagnerjb
Tue Apr 08, 2014 12:52 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Why Americans are Retiring Overseas

From the article: But they were worried they didn't have enough money saved. They were afraid that the home they owned in Baltimore, which they hoped to rent out, wouldn't hold its value. They wondered if their IRAs would ever rebound. Most of all, they worried about how they would be able to afford...
by Wagnerjb
Mon Apr 07, 2014 7:58 pm
 
Forum: Personal Consumer Issues
Topic: Why Americans are Retiring Overseas
Replies: 109
Views: 8783

Re: What are voting rights worth?

Second, what sort of premium would you pay to have voting shares as opposed to non-voting shares? Every single individual who invests in mutual funds should have an opinion on this - because we all give up our rights to vote the shares of each company when we invest via a mutual fund. I would say t...
by Wagnerjb
Fri Apr 04, 2014 9:07 am
 
Forum: Investing - Theory, News & General
Topic: What are voting rights worth?
Replies: 9
Views: 907

Re: Sales Tax Deduction Question

I once asked the IRS that specific question, and they said Yes. You can deduct state sales tax from any state, assuming you have the receipt and you claim from the receipts (as opposed to using the tables).

Best wishes.
by Wagnerjb
Thu Apr 03, 2014 7:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Sales Tax Deduction Question
Replies: 3
Views: 326

Re: Lump Sum vs Annuity: A New Question?

Hi BigJohn and welcome to the Boglehead forum. I am in a very similar position to you. Will turn 57 next month, and planning to retire within a year or so. My Lump Sum vs Annuity decision is identical, and the dollar amounts are probably close as well. I am a CPA and I manage my taxes, just like you...
by Wagnerjb
Thu Apr 03, 2014 9:02 am
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3179

Re: Charities selling or sharing our data?

I use a DAF, but I cannot donate anonymously because I get matching donations provided by my employer. The charity has to acknowledge to my employer that I donated, so I cannot ask the DAF to donate anonymously. In addition, I have to send the matching donation certificate to the charity (via e-mail...
by Wagnerjb
Tue Apr 01, 2014 5:31 pm
 
Forum: Personal Consumer Issues
Topic: Charities selling or sharing our data?
Replies: 15
Views: 727

Re: Are master limited partnerships worthwhile?

I bought FEN in late 2008 for $14.85. Currently $32.48 plus I have been paid about $2 annually in dividends and have had an approximately $2 return of capital lowering my cost basis to $12.88. So I am very pleased with my MLP CEF investment. Using a CEF I have no K-1s and diversification. Diversifi...
by Wagnerjb
Fri Mar 28, 2014 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: Are master limited partnerships worthwhile?
Replies: 25
Views: 1441

Re: Stock index futures

The Vanguard Total Stock Market Index Fund currently own about $.32 Trillon of domestic equities. Does a $10 Billion purchase of domestic equities index futures have the same impact on domestic equity markets as a $ 10 Billion purchase of the actual domestic equities comprising the index? I will ta...
by Wagnerjb
Tue Mar 25, 2014 1:48 pm
 
Forum: Investing - Theory, News & General
Topic: Stock index futures
Replies: 4
Views: 634

Re: Donor Advised Funds

I set one up with Fidelity a couple of years ago. Been happy with it. I use it to separate the timing of the income tax deduction from the time of gifting. I contribute more during high income years, whereas my gifts are more stable. Same here. I use Fidelity, I use it to separate tax deductions an...
by Wagnerjb
Tue Mar 25, 2014 9:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Funds
Replies: 56
Views: 2043

Re: Dividends and the Magic Pants

Larry - I love the "magic pants" analogy. :D :D
by Wagnerjb
Tue Mar 18, 2014 11:23 pm
 
Forum: Investing - Theory, News & General
Topic: Dividends and the Magic Pants
Replies: 38
Views: 4556

Re: Help w Backdoor Roth Pro Rata Rule Avoidance

Be careful. If your wife's 401k has nothing but high cost funds, it might not be worth it.

Best wishes.
by Wagnerjb
Sat Mar 15, 2014 2:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help w Backdoor Roth Pro Rata Rule Avoidance
Replies: 4
Views: 228

Re: Retirement Account Growth exceeds Annual Retirement Expe

I am not sure I understand the logic of including your contributions in the calculation. After all, you won't be contributing when you are retired. Thus, I would look at growth only. I am 56 (and not yet retired), and my portfolio growth began exceeding my annual retirement spending probably 25 year...
by Wagnerjb
Tue Mar 11, 2014 9:06 am
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Savings Growth exceeds Annual Retirement Expense
Replies: 29
Views: 2904

Re: Constructing a portfolio to meet expenses

My grandmother was quite happy with her 12+% CDs in the 1980s. My mom does not understand why her Pen Fed 3% CD rate is so low and requires her to draw down principal for living expenses. She tells me its not fair to retirees. People tend to remember the very high interest rates of the early 1980's...
by Wagnerjb
Sun Mar 09, 2014 2:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Constructing a portfolio to meet expenses
Replies: 25
Views: 1111

Re: 401K withdrawals after 55 with deferred compensation

marcmeg, my understanding from research I did is that if the compensation was earned prior to payment, it does not count against earnings for SS taxation purposes and you are not considered currently earning income. You are separated unless currently employed. The way you describe your situation, n...
by Wagnerjb
Fri Mar 07, 2014 11:21 am
 
Forum: Personal Finance (Not Investing)
Topic: 401K withdrawals after 55 with deferred compensation
Replies: 4
Views: 237

Re: Tax strategy: college tuituion credit

Can she take a personal exemption? If her father could have claimed her, but did not, she can not claim herself What if you had gifted her (for example) $15,000 in securities during the year? She sold the securities and spent the funds on college and living expenses. Would those $15,000 of funds be...
by Wagnerjb
Tue Mar 04, 2014 7:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax strategy: college tuituion credit
Replies: 13
Views: 740

Re: App for Stock Price Notifications

I would be surprised to see an App that allows you to get a notification on a mutual fund. Since mutual funds don't trade within the day, you won't see your target price in many instances. One day your fund closes at $25.75, the next day it may close at $24.80. The Apps that provide notices probably...
by Wagnerjb
Tue Mar 04, 2014 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: App for Stock Price Notifications
Replies: 5
Views: 376

Re: Tax strategy: college tuituion credit

Thanks to all for the discussion. To recap: 1) in 2013, I (parent) paid the tuition for Sara(the kid in college under 24). 2) Sara made 10K in 2013. 3) If I don't claim Sara on my tax form as dependent (I could since I paid more than half of her expenses: does expense include tuition?), then Sara c...
by Wagnerjb
Tue Mar 04, 2014 9:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax strategy: college tuituion credit
Replies: 13
Views: 740

Re: How likely the feds ever tax Roth IRAs?

I think an indirect hit on Roth's are likely... either thru increased sales tax or cuts in benefits due to the withdrawls - I doubt they would go after them directly and go back on the Roth provisions as no need to and can do it more easily indirectly. Anyone that trusts a politician is a fool (unf...
by Wagnerjb
Fri Feb 28, 2014 2:28 pm
 
Forum: Investing - Theory, News & General
Topic: How likely the feds ever tax Roth IRAs?
Replies: 12
Views: 1036

Re: Rising equity retirement theory - anyone aware of it?

It is old news, and has been hashed and re-hashed here. I suggest you search and you will find several in-depth conversations on this issue.

Best wishes.
by Wagnerjb
Fri Feb 28, 2014 2:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rising equity retirement theory - anyone aware of it?
Replies: 2
Views: 342

Re: Which options to exercise?

Another variable to add to the mix. My company switched from offering options to RSU's. With RSU's, it is no question for me, when they vest, I cash out and add to my normal asset allocation. Given that more options might not be coming my way, perhaps yet another reason to hold off on the sale? I d...
by Wagnerjb
Thu Feb 27, 2014 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which options to exercise?
Replies: 18
Views: 1161

Re: Would this work?

You have to find a fool who will sell you the two derivatives that guarantee you won't have a loss. Most people with money didn't accumulate their money by making foolish investments such as that. You will find that the people who are willing to sell you those derivatives are pretty smart, and they ...
by Wagnerjb
Thu Feb 27, 2014 9:37 am
 
Forum: Investing - Theory, News & General
Topic: Would this work?
Replies: 7
Views: 612

Re: what's your number?? (for married couples)

when trying to calculate our "number" for retirement, i get wildly different answers from half a dozen different calculators, ranging from 3.5mil to 15mil. i know that this depends on many variables, including desired monthly retirement income, geography, and single vs married vs no kids ...
by Wagnerjb
Thu Feb 27, 2014 9:31 am
 
Forum: Investing - Help with Personal Investments
Topic: what's your number?? (for married couples)
Replies: 70
Views: 6111

Re: Which options to exercise?

Another good point -- but no easy answer. :happy I'm 30 (my wife is 28) and the options after taxes are ~$250k (total value around $450k). My current estimate is that I could exercise and sell ~$150k this year while staying within the 33% tax bracket. I was considering maybe selling ~$50k this quar...
by Wagnerjb
Wed Feb 26, 2014 11:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Which options to exercise?
Replies: 18
Views: 1161

Re: Backdoor Roth conversions for 2013 and 2014 at same time

Maybe I am missing something, but a "backdoor Roth" is a contribution to a non-deductible IRA and an immediate conversion to a Roth. I don't think immediate is required. Backdoor represents the idea that you are not eligible to make a front door Roth contribution. Since you are not allowe...
by Wagnerjb
Wed Feb 26, 2014 10:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversions for 2013 and 2014 at same time
Replies: 21
Views: 1144

Re: Which options to exercise?

That is a great point, since I would want the same amount. The reason I'm so conflicted is the stock has done quite well, and even after taxes the portion that I'm eligible to exercise represents about 40% of my net worth (cash, investments, retirement), and about 34% if you include home equity. At...
by Wagnerjb
Wed Feb 26, 2014 9:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Which options to exercise?
Replies: 18
Views: 1161

Re: Backdoor Roth conversions for 2013 and 2014 at same time

Thanks DSInvestor for the link to the logic of the 30-day period. I understand the concept, but I am unmoved. First of all, the dates of contribution and conversion are not part of the automatic reporting to the IRS, so they have no method of identifying those who converted immediately. Second, the ...
by Wagnerjb
Tue Feb 25, 2014 9:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversions for 2013 and 2014 at same time
Replies: 21
Views: 1144

Re: Inheriting money, then leaving it to your kids

cheese_breath wrote:I would just consider it part of my total wealth. When I pass the kids will get whatever's left whether it's more or less than the inheritance.


Same here
by Wagnerjb
Tue Feb 25, 2014 9:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheriting money, then leaving it to your kids
Replies: 23
Views: 1929

Re: Backdoor Roth conversions for 2013 and 2014 at same time

sscritic wrote:tfb in his primer on BDRs suggests a 30 day cooling off period (ala the 80 cooling off period of the Taft-Hartley Act) between the non-Roth contribution and the Roth conversion.


What is the purpose of the 30-day period? I have converted my back door Roth contributions the very next day.
by Wagnerjb
Tue Feb 25, 2014 9:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversions for 2013 and 2014 at same time
Replies: 21
Views: 1144

Re: Backdoor Roth conversions for 2013 and 2014 at same time

You can still contribute for 2013 & 2014, but the conversion will be in 2014. The conversion will show up on your 2014 taxes. Maybe I am missing something, but a "backdoor Roth" is a contribution to a non-deductible IRA and an immediate conversion to a Roth. I don't think that results...
by Wagnerjb
Tue Feb 25, 2014 8:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversions for 2013 and 2014 at same time
Replies: 21
Views: 1144

Re: Deduction for cash donations without receipts

I have gotten fed up with all the mail solicitations from charitable groups. It seems like if I give a group $20, they spend twice that sending me mailings asking for more money. And, they sell my name. So my mail box is filled with solicitations. So, I decided to only donate cash anonymously. (E.g...
by Wagnerjb
Tue Feb 25, 2014 3:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deduction for cash donations without receipts
Replies: 8
Views: 764
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