Search found 235 matches

Return to advanced search

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Kevin,

Okay, I think I have enough to go on.

Thanks for all advice, patience, and extra explaining when I needed it!

:sharebeer
by bobsmith
Sun Mar 29, 2015 4:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

To my understanding Betterment will invest in vanguard funds on your behalf keeping your asset allocation and doing constant tax loss harvesting. All for a very small fee. Maybe worth looking into. This way you may never need to actually look at the accounts just let the robo advisor do it's thing ...
by bobsmith
Sat Mar 28, 2015 3:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

EnjoyIt wrote:I have to say Kevin M has gone far and beyond on this thread. Lots to read and learns here for anyone.

Thank you.


Agreed! Also, check out his website:
http://www.kevinoninvesting.com/
by bobsmith
Sat Mar 28, 2015 3:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

A lot going on here, so let's just focus on one thing at a time. Usually in order to make these kinds of decisions, my approach would be to look at historical returns instead of just the current SEC yields. Is this a flawed approach? I take a buy and hold strategy and I'm mostly oblivious to the la...
by bobsmith
Sat Mar 28, 2015 2:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Maybe a little simplistic, but once you get the full idea of what funds you want to buy and at what AA as well as which tax exempt bond fund, have you considered Betterment for holding his funds? They would do all the rebalancing and tax loss harvesting for him. For a fee of coarse, but once set he...
by bobsmith
Sat Mar 28, 2015 1:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Thank you again for you patience and continuing help. For example, when comparing Intermediate-term TE with Long term PA TE bond fund, I would save 3.06% in taxes on all gains from the LT PA fund. However, if in one year there's 1% change in interest rates, your rule of thumb say I'd lose 5.5% from ...
by bobsmith
Fri Mar 27, 2015 5:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I guess I'll just follow what Vanguard does. I've had international stock target at 40% of equities for several years now, so Vanguard is finally catching up with me ;-) Of course their timing probably will work out better, since international has under-performed in recent years. huh, makes me wond...
by bobsmith
Fri Mar 27, 2015 8:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

If I load up his 50K with TBM, what's left of the million outside the retirement accounts is more like 84/16 than 80/20. I would view retirement and taxable accounts as one portfolio if intended for the same goal (bequests, other long-term). So TBM is part of the 20%. So you put 150K of the million...
by bobsmith
Thu Mar 26, 2015 10:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Yeah, but the thing is retiredjg, you know almost nothing about the situation and I strongly resent you thinking that you do. I'm sorry you found my comments unhelpful. I'd be happy to delete them if you like. In my defense, your first post said "Any help is appreciated..." and your secon...
by bobsmith
Wed Mar 25, 2015 7:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

It's hard not to get into risk tolerance discussions when suggesting an 80/20 portfolio for someone described as "risk averse". From the description, it sounds like the friend is experiencing regret about not being in the market during the last few years of big returns. If I were helping ...
by bobsmith
Wed Mar 25, 2015 7:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Fund of funds

Surely I can do better than a fund of funds." I doubt if I could do better than a low-cost, diversified, easily maintained fund of funds designed by Vanguard experts. if I could start over with everything in a tax-advantaged account I would own the appropriate Vanguard target fund. Best wishes...
by bobsmith
Wed Mar 25, 2015 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I do believe you need to think of his age and perhaps yours as well. What happens if you become incapacitated? Do you expect him to give you power to control his assets? Is his family in agreement with this? This assistance is not simple even for children of 80-yr-olds, not to mention friends. What...
by bobsmith
Wed Mar 25, 2015 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I really don't know what you mean by a bad feeling or the way you bolded my name. Being a little vague and anonymous seems like a prudent approach when you are disusing personal finances on a public forum,wouldn't say so, Mr. Djg? lol Don't find offense where none exists. :happy I think bolded your...
by bobsmith
Wed Mar 25, 2015 4:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: VanG Intermediate Term Bond Market Question

Okay guys, I'm starting to better understand the variables here. Special thanks to asif408 for making a second attempt to essentially explain the same thing. That really helped. For the record, I was using Vanguard's website returns for admiral shares going back to 2001. I'm not sure why other have ...
by bobsmith
Tue Mar 24, 2015 10:26 am
 
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 1823

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

It is fair to assume that the ratio is 95% taxable and 5% tax advantaged? For all intents and purposes, yes. RMDs are bringing it down but maxing out his 401K may raise it. Either way, it's a small part of the portfolio. Is it fair to assume your friend is not interested in fiddling with this money...
by bobsmith
Tue Mar 24, 2015 9:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

If your friend is in his late 70's, he is not eligible to contribute to tIRA any more. That ends at 70.5 if I remember correctly. I think he can contribute to the 401k if still working. And to Roth IRA if still working, but he'd have to use the back door which might not even be appropriate in his s...
by bobsmith
Tue Mar 24, 2015 9:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I'm stumbling on this too. Here's a person near 80 who is still working and making lots of money who has it all squirreled away in cash. But our poster is talking about an 80/20 allocation and rebalancing and tax-loss harvesting and taking losses off of taxes and all manner of other tax things that...
by bobsmith
Tue Mar 24, 2015 8:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: TLH


"TLH" stands for Tax-Loss Harvesting.



Okay, yes, thanks! I just wasn't getting the acronym. That sounds like what I had in mind. I'll check out bogleheads wiki for other ways to construct the TSM. What cost-basis method do you use?
by bobsmith
Tue Mar 24, 2015 7:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Re: VanG Intermediate Term Bond Market Question

Thank you. I've read all your responses more than once and I do appreciate them. The vibe I'm getting is that these funds aren't much different and I'd be fine with either. However, if these funds are so similar, then I guess I'm not understanding why the returns are so different. An average of 0.97...
by bobsmith
Tue Mar 24, 2015 6:36 am
 
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 1823

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Retiredjg, My OP was so long I'm sure it was easy to miss where I mentioned it, but believe it or not, he really does have nothing invested. It's all bank accounts and money markets and a small CD that's very soon to come due. Glad we agree the 401ks are available, but not the IRAs. And, yes, he rea...
by bobsmith
Mon Mar 23, 2015 5:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

Suggest a good passive allocation 4 hi-tax-bracket investor

I'm helping a friend of mine to allocate his wealth using a passive investment strategy based on Vanguard index funds. He doesn't actually have a million dollars to invest, but I'm going to use that number to make the math easy. He's in his late 70s and he lives and earns his income in Pennsylvania....
by bobsmith
Mon Mar 23, 2015 1:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 3534

VanG Intermediate Term Bond Market Question

I'm a passive investor investing exclusively in Vanguard mutual funds. All my bond funds are held inside retirement accounts. For the last 15 years I've represented the bond market by simply using Vanguard's Total Bond Market Fund. However, I realized I've been a bit confused about how to best diver...
by bobsmith
Mon Mar 23, 2015 10:44 am
 
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 1823

Re: Tax vs. Tax-exempt bonds.Difference in returns historica

That is a hard comparison to make. You would have to find a taxable fund and a non-taxable fund with exactly the same average credit ratings and effective durations to make a valid comparison. Because of that, I have never been to keen on that rule of thumb about needing to be in the 25% or high ta...
by bobsmith
Sat Mar 14, 2015 2:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 710

Re: Tax vs. Tax-exempt bonds.Difference in returns historica

lack-ey, Thanks for your long response. I'm still wading through some of the links, but I'm feeling overwhelmed. <quote> A fair enough guideline is that the market is pricing them reasonably appropriately for those in the mid-high tax brackets relative to taxable bonds (in other words, advantageous ...
by bobsmith
Sat Mar 14, 2015 2:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 710

Re: Tax vs. Tax-exempt bonds.Difference in returns historica

Okay, Vanguard has a short, intermediate, and long term bond fund in both regular (taxable) form and in tax-exempt form. I've compared the two based on the last 14 years of performance. For the short term bond fund, taxable outperforms, on average, by 0.87% For the intermediate term, taxable outperf...
by bobsmith
Sat Mar 14, 2015 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 710

Tax vs. Tax-exempt bonds.Difference in returns historically?

With regards to return, is there any rule of thumb about how much less tax-exempt bond funds return when compared to taxable bond funds? For example, Vanguard shows the historical returns for bonds to be 5.5%. https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations His...
by bobsmith
Sat Mar 14, 2015 12:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 710

Re: Tax exempt alternative to TBMI?

Thanks everyone. You guys gave me so good choices and better knowledge about how to decide.

THanks!
by bobsmith
Fri Mar 13, 2015 9:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax exempt alternative to TBMI?
Replies: 12
Views: 801

Re: Tax exempt alternative to TBMI?

Vanguard Intermediate Term Tax Exempt Investor VWITX Admiral VWIUX would be an alternative. Do you need to hold bonds in your taxable account? One way to avoid the need for a tax exempt bond fund in taxable is to hold your entire bond allocation in your tax advantaged accounts. If your tax advantag...
by bobsmith
Thu Mar 12, 2015 4:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax exempt alternative to TBMI?
Replies: 12
Views: 801

Re: Tax exempt alternative to TBMI?

I love Vanguard, but if anyone knows of non-vanguard low expense bond index funds representing the US Market, please let me know. Schwab, Fidelity and DFA all have offerings, as I'm sure many others do. Questions for you: Did you intend to ask about tax-exempt bonds? You put that in the title of th...
by bobsmith
Thu Mar 12, 2015 4:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax exempt alternative to TBMI?
Replies: 12
Views: 801

Tax exempt alternative to TBMI?

For a passive investor, what's a good tax exempt index fund alternative to Vanguard's Total Bond Market Index? One good option for the state I live is Pennsylvania Long Term Tax Exempt Fund, but it's not as well diversified as Vanguards ordinary TBMI. I love Vanguard, but if anyone knows of non-vang...
by bobsmith
Thu Mar 12, 2015 3:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax exempt alternative to TBMI?
Replies: 12
Views: 801

Re: Average Expense ratios for Stock, Bond, and Int'l Funds?

Thanks. I should be able to get something together from suggestions and links here.

Much appreciated!
by bobsmith
Tue Mar 10, 2015 1:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Average Expense ratios for Stock, Bond, and Int'l Funds?
Replies: 3
Views: 425

Re: A few questions about Child Credit....

For me, box 1 of my 1040 does not include my pension contribution as part of my taxable income. Therefore, the child tax credit does not consider my pension contribution as part of my taxable income and so it does not count towards the ceiling. Also, I see no where on the 1040 that would offer the p...
by bobsmith
Mon Mar 09, 2015 4:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: A few questions about Child Credit....
Replies: 6
Views: 436

Re: Quick W2 question

My employer and I both make equal contributions. That's what threw me. Right now I'd say that box 1 "wages" is my income with my pension contribution deducted. Boxes 3 and 5 (ss & medicare) show my full pay which would be box 1 plus my pension contribution. Therefore, it appears that m...
by bobsmith
Mon Mar 09, 2015 3:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick W2 question
Replies: 10
Views: 524

Re: Want to invest with Vanguard but not comfortable with...

Just a quick reply to say that I've been using Vanguard for many many years and I've found their over the phone advice to be excellent and accurate. I've never felt rushed. No one there is on commission. They help you fill out forms and answer all the pesky questions. Wait times are usually short or...
by bobsmith
Mon Mar 09, 2015 1:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Want to invest with Vanguard but not comfortable with....
Replies: 79
Views: 4671

Re: Quick W2 question

livesoft, Obviously I need to take a better look at my paycheck or maybe talk to my employer. The "pension contribution" I'm referring to is listed in box 14 "Other". Box 3 (social security wage) is just box 1 added to the pension amount in box 14 and I can see from box 4 (ss tax...
by bobsmith
Mon Mar 09, 2015 1:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick W2 question
Replies: 10
Views: 524

Re: A few questions about Child Credit....

I'm going to piggypack on this question a bit... My AGI hovers around the 115k mark, what are some ways I can lower it to get the full child tax credit, if my 401k is already maxed? I'm less informed than others, but if you're married filing jointly, of course your wife's 401k/403b would lower it. ...
by bobsmith
Mon Mar 09, 2015 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: A few questions about Child Credit....
Replies: 6
Views: 436

Re: A few questions about Child Credit....

rkhusky, Thanks for the rely. I'm sure you're right. I'm just trying to understand the process. Going by the 1040, line 38 is of course my AGI, carried over from line 37. In my case this amount falls just under the 110,000 ceiling allowing me the full credit. Part of what confused me is from what I ...
by bobsmith
Mon Mar 09, 2015 12:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: A few questions about Child Credit....
Replies: 6
Views: 436

A few questions about Child Credit....

I understand I need to stay under a certain MAGI income in order to get the full child credit. By MAGI, I mean my Income + All Dividends + all realized gains The only thing I take out before seeing if I qualify for the child tax credit would be contributions to deferred tax IRAs or work plans (401k,...
by bobsmith
Mon Mar 09, 2015 10:29 am
 
Forum: Investing - Help with Personal Investments
Topic: A few questions about Child Credit....
Replies: 6
Views: 436

Re: Quick W2 question

livesoft, Thank you and thanks for not typing out the "eye rolls" I'm sure you must feel at times.lol So it's a fair assumption that the difference is, in fact, my employers contribution to my pension. My pension contributions would not be shown on the W2 and would not be given any special...
by bobsmith
Mon Mar 09, 2015 10:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Quick W2 question
Replies: 10
Views: 524

Re: Quick W2 question

Do you have pre-tax deductions (aka Section 125 cafeteria plan for benefits)? Those aren't subject to Social Security tax and would contribute to a difference between Box 1 and Box 3 amounts. But in the wrong way. Box 1 is usually less than Box 3. The OP has Box 1 more than Box 3, if I understand c...
by bobsmith
Mon Mar 09, 2015 9:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Quick W2 question
Replies: 10
Views: 524

Quick W2 question

Let me see if I got this right.... On my W2, the amount in the "Wages, tips, other compensation" (box 1) is higher than my "Social Security Wages" (box 3). It looks as though contributions to my pension are what make up the difference. So the IRS charges me the 6.2% on the "...
by bobsmith
Mon Mar 09, 2015 8:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Quick W2 question
Replies: 10
Views: 524

Re: Historical Dividends on Vanguard Index funds?

Just in case I didn't make this clear, thank you for all the expert help. Have a good one!
:D
by bobsmith
Mon Mar 09, 2015 8:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Historical Dividends on Vanguard Index funds?
Replies: 7
Views: 920

Re: Deferred Employer Ret. Plans always tax deductible?

Thanks everyone. I really appreciate you walking me through the finer points. This is just what I needed to know!
:sharebeer
by bobsmith
Mon Mar 09, 2015 8:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Deferred Employer Ret. Plans always tax deductible?
Replies: 12
Views: 754

Average Expense ratios for Stock, Bond, and Int'l Funds?

I'd like to make a few charts to illustrate how higher fees can make a big difference over time when investing for the long term. In one example, I'd like to compare Vanguard's low fund rates to other companies. When I say rates, I'm talking about the total expense ratio, less any 12b1 or other load...
by bobsmith
Mon Mar 09, 2015 8:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Average Expense ratios for Stock, Bond, and Int'l Funds?
Replies: 3
Views: 425

Re: Deferred Employer Ret. Plans always tax deductible?

Thanks everyone for helping me to understand. Let me go over a few picky details... • The IRS does not require 401k plans to make RMD distributions IF the person is still working at the company and IF the person owns less that 5% of the company. However, the employer can decide to require RMDs at 70...
by bobsmith
Sun Mar 08, 2015 7:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Deferred Employer Ret. Plans always tax deductible?
Replies: 12
Views: 754

Re: Historical Dividends on Vanguard Index funds?

SEC yield is a 30 day average yield of the underlying assets. In an index fund with low turnover it will be relatively stable over the course of a year (unless there is a sharp downturn or upturn in the market), but I still wouldn't want to use much more than the first significant digit for extrapo...
by bobsmith
Sat Mar 07, 2015 7:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Historical Dividends on Vanguard Index funds?
Replies: 7
Views: 920

Re: Deferred Employer Ret. Plans always tax deductible?

You can continue to contribute to a employer sponsored plan as long as your are still working. Also, you do not need to begin RMDs until you retire, unless you have >= 5% ownership. Okay, so no matter how old you are you can keep contributing to a deferred 401k plan. I was actually asking this for ...
by bobsmith
Sat Mar 07, 2015 10:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Deferred Employer Ret. Plans always tax deductible?
Replies: 12
Views: 754

Re: Historical Dividends on Vanguard Index funds?

livesoft, Thanks for the help. Thanks to House Blend, I'll be able to do more research on this specific to each of the few funds I hold and am considering. My married filing jointly income is less than 105K annually, but later in life I get a pension and part of what I'm trying to determine is how m...
by bobsmith
Sat Mar 07, 2015 10:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Historical Dividends on Vanguard Index funds?
Replies: 7
Views: 920

Re: Historical Dividends on Vanguard Index funds?

House Blend, Thanks for the reply. You already have offered more help than the vanguard rep was even aware of. For TSM and TISM, I would just use rough estimates of 2% and 3%. If you want more accuracy than that, then best to say more about what your purpose is and exactly which percentage you are t...
by bobsmith
Sat Mar 07, 2015 9:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Historical Dividends on Vanguard Index funds?
Replies: 7
Views: 920
Next

Return to advanced search