Search found 6016 matches

Return to advanced search

Re: Building a New House

We just built a custom home in Houston last year. We used an architect who was recommended by several of the custom home builders in the development. He charged $1.50 per square foot for the home. This calculation included the garage and porch area as well. His contract also stipulated a few add-on ...
by Wagnerjb
Fri Dec 19, 2014 11:14 am
 
Forum: Personal Consumer Issues
Topic: Building a New House
Replies: 8
Views: 584

Re: Top-hat 457(b) Plan and FICA?

I take part in a Top Hat program at my employer. As I understand it, both SS and FICA are deducted from my salary in the current year - even if I defer the salary. Thus, when the deferred compensation is returned to me in future years, I won't owe any SS or FICA. Any investment earnings on the defer...
by Wagnerjb
Fri Dec 19, 2014 10:30 am
 
Forum: Investing - Theory, News & General
Topic: Top-hat 457(b) Plan and FICA?
Replies: 4
Views: 368

Re: PenFed Auto Loan in lieu of Grad PLUS

Have you considered the tax deduction for student loan interest? I suspect the savings on the (pretax) cost of the loan will overwhelm the tax aspects...and maybe you won't qualify to deduct the interest anyway...but that should be part of your calculations. I assume that auto loan interest isn't de...
by Wagnerjb
Fri Dec 19, 2014 10:20 am
 
Forum: Personal Finance (Not Investing)
Topic: PenFed Auto Loan in lieu of Grad PLUS
Replies: 3
Views: 272

Re: Roll Call for the Retirement Class of 2015!

I will be retiring in April 2015, after 32 years with my employer...plus a few years in graduate school and a few years working for an Accounting firm before that. Looking forward to it :D
by Wagnerjb
Thu Dec 18, 2014 3:20 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2015!
Replies: 25
Views: 2287

Re: Split Assets Between Two Firms?

My idea of the biggest threat is IT issues such as locked accounts, cyber crime, some sort of temporary internal breakdown at a company, etc. The recent thread about Vanguard telling someone that they didn't even exist at Vanguard as part of some kind of fraud prevention stupidity at Vanguard is an...
by Wagnerjb
Fri Dec 12, 2014 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Split Assets Between Two Firms?
Replies: 28
Views: 2424

Re: Is the collapse of oil price a "black swan"?

...largest price decline since the 2008 financial crisis. ...Does this qualify as a bona fide "black swan" event? If not, what does it take to be a "black swan"? Something that happens twice within 6 years is not a black swan. For oil prices, IMO the only black swan since the ad...
by Wagnerjb
Thu Dec 11, 2014 8:53 am
 
Forum: Investing - Theory, News & General
Topic: Is the collapse of oil price a "black swan"?
Replies: 87
Views: 7599

Re: 'Might Vanguard Founder Jack Bogle Be Wrong for a Change

A typical Boglehead would walk on hot coals to reduce his ER by 0.25%. He would LOVE to earn 2% more with less risk. If they don't really care about 2%, then they won't care about high ER's either. Apples and oranges...at any rate my point is not that the difference is inconsequential,but that succ...
by Wagnerjb
Thu Dec 11, 2014 8:42 am
 
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4157

Re: 'Might Vanguard Founder Jack Bogle Be Wrong for a Change

“A portfolio that was 50% U.S. stocks, 25% developed international and 25% emerging markets generated an annual return of 14% over this period with a standard deviation of 19.8. A pure U.S. portfolio generated a 12% return with a standard deviation of 17.9. You not only generated a better nominal r...
by Wagnerjb
Wed Dec 10, 2014 8:00 pm
 
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4157

Re: Why are Falling Oil Prices Bad for the Stock Market

How can you be sure that falling prices are causing the stock market to decline? Could it be that a decline in the stock market is causing oil to fall? As somebody who has worked in energy for 32 years, I am pretty sure that supply and demand is causing oil prices to drop. But I am less sure about w...
by Wagnerjb
Wed Dec 10, 2014 4:02 pm
 
Forum: Investing - Theory, News & General
Topic: Why are Falling Oil Prices Bad for the Stock Market
Replies: 29
Views: 2540

Re: What millionaires are buying for the holidays

They publish those articles because the common man has a fascination with wealth and wealthy people. We want to know about their fancy exotic cars, about their 12,000 square foot mansions, their tropical resort vacation spots, their designer jewelry, etc. They are giving the public what they want. B...
by Wagnerjb
Wed Dec 10, 2014 9:02 am
 
Forum: Personal Finance (Not Investing)
Topic: What millionaires are buying for the holidays
Replies: 13
Views: 2187

Re: Tax Planning - Bunching of Deductions

It was the OP who proposed "bunching together" items that reduce both regular tax and AMT (charitable contributions and mortgage interest) with items that only reduce regular tax (property tax). I was pointing out that bunching in this manner, under certain conditions, was not only not a ...
by Wagnerjb
Tue Dec 09, 2014 3:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Planning - Bunching of Deductions
Replies: 12
Views: 1076

Re: Tax Planning - Bunching of Deductions

Bunching deductions to get rid of amt liability in alternate years is likely to be a bad decision in many cases. Assume that you are in the 28% amt bracket and within the phaseout range, resulting In an effective 35% marginal bracket. Assume also that your regular marginal rate is 28%. As soon as b...
by Wagnerjb
Tue Dec 09, 2014 8:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax Planning - Bunching of Deductions
Replies: 12
Views: 1076

Re: projected income metric for portfolios

I think this idea is a good one and hope it catches on. Especially with Vanguard! It is an excellent idea, and is one way to help bridge the gap between the (defined benefit) pensions of yesterday and the (defined contribution) 401k plans of tomorrow. Less sophisticated investors seem to love the m...
by Wagnerjb
Mon Dec 08, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: projected income metric for portfolios [WSJ article]
Replies: 11
Views: 939

Re: Stock Buybacks???

DVMResident wrote:Board members are often paid in deferred compensation in the form of...wait for it...company stock.
Buying back stock pushes the price up.


Shame on them. Have you considered writing to the CEO, asking him/her to stop issuing buybacks because you don't like it when the stock price goes up?
by Wagnerjb
Mon Dec 08, 2014 8:26 am
 
Forum: Investing - Theory, News & General
Topic: Stock Buybacks???
Replies: 9
Views: 733

Re: Stock Buybacks???

Do you think it is possible that most companies have extra cash when the economy is doing well....which happens to be the same time as the stock market is doing well? If this bothers you, I see two options to consider: Ask your mutual fund manager to stop demanding that companies pay out their exces...
by Wagnerjb
Sun Dec 07, 2014 10:59 pm
 
Forum: Investing - Theory, News & General
Topic: Stock Buybacks???
Replies: 9
Views: 733

Re: New research on funds chasing dividends

Jason mentions the Alpine Dividend fund, which practiced the dividend capture trick. I had many posts over at Morningstar in the 2005-2007 time frame trying to educate (and warn) some of the income-focused investors there but unfortunately most was lost on them. Nevertheless, dividend capture is an ...
by Wagnerjb
Sun Dec 07, 2014 5:08 pm
 
Forum: Investing - Theory, News & General
Topic: New research on funds chasing dividends
Replies: 2
Views: 516

Re: Most stocks are losers - golden swans drive returns of i

I think Mr. Bogle talks about this in Common Sense on Mutual Funds . He looks at a set of securities held for 30 years without rebalancing (he picked the GoGo stocks from the 1960s) and assumed one purchased them right before the decline (1971) and held them without rebalancing until 1996. The tota...
by Wagnerjb
Sun Dec 07, 2014 10:02 am
 
Forum: Investing - Theory, News & General
Topic: Most stocks are losers - golden swans drive returns of index
Replies: 21
Views: 2630

Re: "Small-Cap Performance Edge on the Wane"

Investing is so much fun.So you use 80 years of data to back up your beliefs but you then must acknowledge that the next 80 years could be different. You use 80 years of data to help you understand how financial markets work. The 80 years of data support your belief that risk and expected return go...
by Wagnerjb
Sun Dec 07, 2014 9:47 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: Hypothetical - Mutual Funds Don't Exist

If no Mutual Funds or Index Funds existed, we wouldn't know that passively holding the broad stock market would outperform the average investor over time. Sure we would. The reason that passive investors achieve superior returns is due to cost....and we knew that many many decades ago. Before mutua...
by Wagnerjb
Fri Dec 05, 2014 9:44 pm
 
Forum: Investing - Theory, News & General
Topic: Hypothetical - Mutual Funds Don't Exist
Replies: 26
Views: 1823

Re: "Small-Cap Performance Edge on the Wane"

Since inception on 12/23/1981, DFA US Micro Cap Portfolio (DFSCX) has returned 12.16% while the S&P 500 has returned 11.74%, a difference of 0.42%. When you consider that DFSCX has expenses of 0.52%, these small caps have outperformed by about 0.9%. However, I don't think anyone should pay an a...
by Wagnerjb
Fri Dec 05, 2014 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: "Small-Cap Performance Edge on the Wane"

Here's a hypothetical scenario for all the SCV tilters on this forum. Suppose some private equity companies bought every company owned by RZV, combined all of those companies into a conglomerate, and then took the conglomerate public a few years later. How much would you overweight this one company...
by Wagnerjb
Fri Dec 05, 2014 8:11 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: Hypothetical - Mutual Funds Don't Exist

Before mutual funds existed, intelligent investors purchased individual stocks and sought to achieve a decent level of diversification. My father probably owned 30-50 stocks and many dozens of different bonds as well. You can do this today if you want, but the vast majority of people prefer the simp...
by Wagnerjb
Thu Dec 04, 2014 7:07 pm
 
Forum: Investing - Theory, News & General
Topic: Hypothetical - Mutual Funds Don't Exist
Replies: 26
Views: 1823

Re: Capital Gains

Have you considered using the highly appreciated shares for charitable contributions (instead of donating cash)? If you do so, you - in most cases - can deduct the fair value of the stocks, without paying capital gains tax.

Best wishes.
by Wagnerjb
Wed Dec 03, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: Capital Gains
Replies: 8
Views: 580

Re: "Small-Cap Performance Edge on the Wane"

Data from the past 80 years says that small beats large and value trumps growth - for the disciplined, long-term investor. Exactly. I suspect some investors who believe in simplicity ("buy TSM and forget about it") would like to believe that tilting doesn't add to your returns. An awful l...
by Wagnerjb
Wed Dec 03, 2014 11:17 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: A rational allocation in individual stocks?

Every time I start thinking of these things I remember that I don't have any particularly better insights (or interests in doing the research) to pick a stock. Constructing a passive portfolio of individual stocks has nothing to do with "picking stocks". You obviously have to "select...
by Wagnerjb
Mon Dec 01, 2014 9:39 am
 
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1306

Re: A rational allocation in individual stocks?

4. Minimizing expenses (admittedly already rather minimal via index funds or ETFs) For broad indexes, yes this will be tiny. For some more narrow areas it can be significant, or there might not exist an ETF. I've used individual stocks for Quality before there were ETFs other than dividend quality,...
by Wagnerjb
Mon Dec 01, 2014 9:21 am
 
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1306

Re: A rational allocation in individual stocks?

I have been holding individual stocks for the Large Cap portion of my portfolio for almost 15 years....for many of the same reasons that you outline. I explained my strategy to another poster in this thread:

http://www.bogleheads.org/forum/viewtopic.php?t=24564

Best wishes.
by Wagnerjb
Sun Nov 30, 2014 8:42 pm
 
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1306

Re: New ESPP Non-qualified Plan Questions and Thoughts?

Thanks for the reply. Yes, my main concern is figuring out what my "sell and sit out" strategy/timing should be. It would be easy and a no brainer if it was like most plans I'm used to where I could sell immediately and still continue in the plan, reaping the discount or match. The match ...
by Wagnerjb
Thu Nov 27, 2014 11:43 am
 
Forum: Investing - Help with Personal Investments
Topic: New ESPP Non-qualified Plan Questions and Thoughts?
Replies: 4
Views: 389

Re: Honor Societies (any point?)

It's amazing how many 'honor' societies will contact you for $. Ten years ago I had to tell my mom to stop responding after the first few. Yup. I get them regularly for my daughter, who is a senior at a large state University. Those letters go immediately into the round file :happy I also get simil...
by Wagnerjb
Thu Nov 27, 2014 10:18 am
 
Forum: Personal Consumer Issues
Topic: Honor Societies (any point?)
Replies: 35
Views: 2297

Re: Wealthfront Tax-Optimized US Index Portfolio??

I have been using a similar strategy personally for over a dozen years, but I do it myself. I have read about the WF strategy and it makes perfect sense. Here is why it is financially astute: a) The WF 500 strategy is VERY well diversified, using all 500 of the S&P500 b) It is part of a well div...
by Wagnerjb
Thu Nov 27, 2014 10:11 am
 
Forum: Investing - Theory, News & General
Topic: Wealthfront Tax-Optimized US Index Portfolio??
Replies: 3
Views: 988

Re: New ESPP Non-qualified Plan Questions and Thoughts?

I don't have an ESPP plan at work, so I am not an expert. But this seems like an easy decision to me due to the 15% contribution by your company. The main concern with these plans is that you are not diversified, and in addition you are holding your employer stock....which further impairs your perso...
by Wagnerjb
Thu Nov 27, 2014 9:47 am
 
Forum: Investing - Help with Personal Investments
Topic: New ESPP Non-qualified Plan Questions and Thoughts?
Replies: 4
Views: 389

Re: Moving Inherited IRA & Portfolio Advice

Welcome to the Bogleheads forum! My first reaction is that you have a problem in that you have an advisor and you are also asking for advice here. You are bound to have conflicts between your advisor's recommendations and those you get from Bogleheads. My first reaction is that 25% in your company s...
by Wagnerjb
Tue Nov 25, 2014 12:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving Inherited IRA & Portfolio Advice
Replies: 8
Views: 659

Re: GAO Concerned your IRA may be too big!

a dual-professional couple who aggressively saved and invested in qualified 401k (with full employer contributions) beginning upon departure from school is in serious danger of running afoul of the 5,000,000 figure that is a recurring theme of the GAO report. In a country of over 300,000,000 people...
by Wagnerjb
Fri Nov 21, 2014 8:32 am
 
Forum: Personal Finance (Not Investing)
Topic: GAO Concerned your IRA may be too big!
Replies: 25
Views: 3541

Re: Tax Loss Harvesting in Gold Miners: GDX vs RING

Based on the top 25 holdings, in my opinion you would not have a wash sale.

Best wishes.
by Wagnerjb
Mon Nov 17, 2014 8:18 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting in Gold Miners: GDX vs RING
Replies: 4
Views: 363

Re: PEP and Pease phase out [understanding of]

I am pretty sure your understanding is correct. Why don't you "double down" on your charitable contributions as well? Either donate to a Donor Advised Fund in one year (and take the $14,000 deduction), then have the DAF disburse $7,000 each year.....or donate twice as much to the charities...
by Wagnerjb
Mon Nov 17, 2014 1:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: PEP and Pease phase out [understanding of]
Replies: 2
Views: 275

Re: HSA Contribution: Can I do a end of year lump sum?

I suggest calling your benefits department. I am retiring in early 2015 and I am hoping to contribute the full-year limit to my HSA in the first three months of 2015. The system where you sign up for benefits won't allow such an election, but I called our benefits department and - after two days of ...
by Wagnerjb
Sat Nov 15, 2014 10:48 am
 
Forum: Personal Finance (Not Investing)
Topic: HSA Contribution: Can I do a end of year lump sum?
Replies: 3
Views: 403

Re: If your networth is over $3 million, how did you do it?

I've known quite a few who planned on saving up the last 10 years before retirement so they could actually retire only to have the carpet yanked out underneath them. This is a perfect example of people creating their own "luck". It is certainly unfortunate when a 50 year-old loses his job...
by Wagnerjb
Wed Nov 12, 2014 1:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: If your networth is over $3 million, how did you do it?
Replies: 270
Views: 33326

Re: If your networth is over $3 million, how did you do it?

Worked hard in college, studied and passed the CPA test, worked hard at my first job, studied and get a good score on the MBA entrance test (GMAT), borrowed a small fortune and went to a good MBA school, worked hard in my job for 30 years, didn't quit when times seemed frustrating, accepted 5 transf...
by Wagnerjb
Tue Nov 11, 2014 11:32 am
 
Forum: Personal Finance (Not Investing)
Topic: If your networth is over $3 million, how did you do it?
Replies: 270
Views: 33326

Re: Find flaws in my plans for Deferred Compensation?

InertiaMan: my situation is fairly similar to yours: a) My NQDC plan is around 10% of my assets b) I am retiring early (at age 57 in March 2015) c) I work for a very large and stable company I am using a strategy very similar to yours - that is, electing to receive distributions during the window be...
by Wagnerjb
Mon Nov 10, 2014 7:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Find flaws in my plans for Deferred Compensation?
Replies: 13
Views: 832

Re: Deferred Compensation Strategies

I used the executive deferred comp plan at my company and it has provided me with substantial tax benefits. Here are some strategies to consider: a) Due to the bankruptcy risk, consider limiting the cumulative amount in the deferred comp plan to a certain % of your net worth. I used 10% as my target...
by Wagnerjb
Fri Nov 07, 2014 1:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deferred Compensation Strategies
Replies: 7
Views: 1074

Re: How to avoid AMT

The ideas is good but you have to be very careful since there graduated income rates are working against you. . Imagine that the couple pays 10% in state taxes (income/property) 450k/yr = 122k(111k normal 10k amt) = 27% 300k/yr = 68k (62k/5k) = 22% 150k/yr = 23k = 12% so we have 122+23 =145k versus...
by Wagnerjb
Fri Nov 07, 2014 10:22 am
 
Forum: Personal Finance (Not Investing)
Topic: How to avoid AMT
Replies: 51
Views: 9297

Re: How to avoid AMT

The only way to really understand the AMT and minimize your overall tax is to play with a software program. It is essential to do this. As sscritic points out, one can easily be subject to the AMT with income over $400,000 and it doesn't really take a stingy high-income person to have that happen. ...
by Wagnerjb
Thu Nov 06, 2014 1:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to avoid AMT
Replies: 51
Views: 9297

Re: Fund sales: Covered vs Non Covered question?

So I have finally made a taxable sale since the new regulation and was pleased with the process. I sold half covered lots and was able to use SpecID as I had initially set. My old non-covered shares were all in a Various lot with average cost basis. I just wanted to make sure that for tax return pu...
by Wagnerjb
Tue Oct 28, 2014 2:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund sales: Covered vs Non Covered question?
Replies: 4
Views: 648

Re: 39.6% Tax Bracket :(

I don't believe your mortgage deduction or your charitable contribution deduction "won't be an option" for you. They should still be deductible. Separately, you will have a haircut applied to your itemized deductions (mortgage, charity, property tax, etc) due to your income exceeding a cer...
by Wagnerjb
Tue Oct 28, 2014 8:48 am
 
Forum: Personal Finance (Not Investing)
Topic: 39.6% Tax Bracket :(
Replies: 28
Views: 6250

Re: Bad Stock-Market Timing Fueled Wealth Disparity

Households with the highest education and strong portfolios to begin with were likely to keep buying stocks during the decline, they found. Those with less education and smaller account balances were more likely to sell during the downturn. When the subsequent rebound happened, the already rich got...
by Wagnerjb
Mon Oct 27, 2014 2:03 pm
 
Forum: Investing - Theory, News & General
Topic: Bad Stock-Market Timing Fueled Wealth Disparity
Replies: 9
Views: 1165

Re: Donee Unable to Accept Stock

Interesting. Looks like the OP certainly needs to check with the IRS or the library before counting on the tax deduction. The OP will get a tax deduction from the Donor Advised Fund when he/she donates the securites to the DAF. But they probably will be surprised to find out later that the DAF won'...
by Wagnerjb
Mon Oct 27, 2014 11:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Donee Unable to Accept Stock
Replies: 22
Views: 2057

Re: IRS Relents! Notice 2014-54 permits Basis Isolation

If you simply pay tax on the earnings part of the after-tax "rollover" to Roth IRA, you can do both the ordinary back door contribution to Roth IRA and the after-tax rollover to Roth IRA. Edit: or find a 401k plan to roll that tIRA into before 12/31. You can even roll it back into the 401...
by Wagnerjb
Wed Oct 22, 2014 6:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Relents! Notice 2014-54 permits Basis Isolation
Replies: 112
Views: 12906

Re: Question about Excluding the Gain from Sale of Home

The capital gain is the difference between your cost basis (which is essentially what you paid for it plus any capital improvements you made to it) and the amount realized from the sale (which is the sale price minus the sales expenses). Then the $250K or $500K exclusion is subtracted from that. ji...
by Wagnerjb
Wed Oct 22, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about Excluding the Gain from Sale of Home
Replies: 5
Views: 335

Re: IRS Relents! Notice 2014-54 permits Basis Isolation

Am I understanding this correctly? If an individual made a back-door Roth contribution for the 2014 tax year and had after-tax contributions made to a 401k plan that also had an after-tax earnings component attached to it, then requesting an in-service distribution of the after-tax earnings would d...
by Wagnerjb
Wed Oct 22, 2014 12:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Relents! Notice 2014-54 permits Basis Isolation
Replies: 112
Views: 12906

Re: IRS Relents! Notice 2014-54 permits Basis Isolation

dillrob, note that if you do have them split the distribution into tIRA and Roth IRA, the presence of the tIRA will interfere with your ability to do back door contributions to Roth IRA. Is that an issue for you? It is an issue for some people who want to do both things (after-tax rolled into Roth ...
by Wagnerjb
Wed Oct 22, 2014 7:58 am
 
Forum: Personal Finance (Not Investing)
Topic: IRS Relents! Notice 2014-54 permits Basis Isolation
Replies: 112
Views: 12906
Next

Return to advanced search