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Re: Can minor child claim self exemption on 1040?

From Pub 17 -- "You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. &q...
by fundtalker123
Mon Apr 07, 2014 12:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Can minor child claim self exemption on 1040? [generally no]
Replies: 3
Views: 150

Can minor child claim self exemption on 1040? [generally no]

Question: If a parent chooses to NOT claim a minor child as a dependent, then can the child claim 1 "self" exemption (line 6a) on the child's 1040 (filed to report investment income). I have not located clear instructions on this -- line 6a says "If someone can claim you as a dependen...
by fundtalker123
Sun Apr 06, 2014 11:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can minor child claim self exemption on 1040? [generally no]
Replies: 3
Views: 150

Re: Is 529 plans that bad? [White Coat Investor article]

Example below where the tax savings could be at least ~$500k and probably more - do I have anything wrong? Two kids and you front load $250k (the current cost of 4 years private college) into each of their 529s (by starting to contribute before birth and changing beneficiary). Invest in Vanguard 529...
by fundtalker123
Mon Mar 10, 2014 10:47 pm
 
Forum: Investing - Theory, News & General
Topic: Is 529 plans that bad? [White Coat Investor article]
Replies: 35
Views: 2178

Confusing analysis of my HSA vs PPO costs

Below is my attempt to compare effective costs of the HSA health plan vs. PPO plan we are offered. I think the HSA is the clear winner for us, but find it pretty confusing given tax considerations so any feedback is appreciated The PPO option costs $4400/yr (pretax), no deductible, mostly only small...
by fundtalker123
Sat Nov 09, 2013 12:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Confusing analysis of my HSA vs PPO costs
Replies: 5
Views: 715

Re: Marginal tax rate per turbotax lower than expected?

I assumed no state income tax in this example (that is, I assumed the itemized deductions were all mortgage interest, property tax, and charitable donations) to avoid muddying this examination of the federal tax structure. Hmmm, could it be that my calculation is muddied by the inclusion of a const...
by fundtalker123
Tue Nov 05, 2013 3:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 1065

Re: Marginal tax rate per turbotax lower than expected?

Even if I add 1,000,000 to wages (i.e., raise it from 490,000 to 1,490,000) the tax only goes up 330,000, implying 33% marginal rate, when I expected it to be 35%. 33% is only the average tax rate for that next $1,000,000 in wages, not the marginal tax rate. It could be possible that the next $286,...
by fundtalker123
Tue Nov 05, 2013 3:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 1065

Re: Marginal tax rate per turbotax lower than expected?

Tables say 2012 marginal tax rate is 35% for income >388k. Our taxable income is ~490k (virtually all due to ordinary wages), so I thought 35% applied. But if I add $1k to wage income using turbotax the calculated tax due goes up ~28%, so seems like the marginal rate is 28%. Same happens if I add $...
by fundtalker123
Tue Nov 05, 2013 3:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 1065

Re: Marginal tax rate per turbotax lower than expected?

In practice, virtually no marginal dollar will get taxed at the "Marginal Tax Rate" listed in the tables. All the various factors (some of which are mentioned by Bob's not my name, above) are just too complicated. Based on the numbers you gave, I am guessing you have a lot of charitable d...
by fundtalker123
Tue Nov 05, 2013 2:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 1065

Re: Marginal tax rate per turbotax lower than expected?

Sounds like you're comparing marginal rate to average rate. Sounds like you might also be overlooking tax effects outside the nominal brackets, such as AMT, phaseouts of personal exemptions and itemized deductions, ACA tax on wages, etc. Thanks for your reply. I'm not calculating average rate. I ad...
by fundtalker123
Tue Nov 05, 2013 2:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 1065

Marginal tax rate per turbotax lower than expected?

Tables say 2012 marginal tax rate is 35% for income >388k. Our taxable income is ~490k (virtually all due to ordinary wages), so I thought 35% applied. But if I add $1k to wage income using turbotax the calculated tax due goes up ~28%, so seems like the marginal rate is 28%. Same happens if I add $1...
by fundtalker123
Tue Nov 05, 2013 2:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 1065

Re: A Dangerous Misunderstanding about Bond Rates?

A stable value fund yielding 3% is an excellent choice for fixed income. The yield is quite a bit higher than something like total bond fund (2%-2.2%), and the risk is much less. It's a win/win as far as I'm concerned. Kevin I have a different opinion of SV funds - at At least the ones available to...
by fundtalker123
Wed Jul 24, 2013 10:41 pm
 
Forum: Investing - Theory, News & General
Topic: A Dangerous Misunderstanding about Bond Rates?
Replies: 124
Views: 10051

Re: RMD and the tax trap

Articles like this almost make it sound like it is a bad idea to end up with a lot of money in IRAs. But what is the alternative - just save in taxable accounts? Isn't that a worse idea? We are in the maximum possible tax brackets (federal + state) and have been putting the maximum possible pre-tax ...
by fundtalker123
Mon Jun 10, 2013 1:23 pm
 
Forum: Investing - Theory, News & General
Topic: RMD and the tax trap
Replies: 33
Views: 2268

Re: yet another mini flash crash Tue Apr 23 2013

It wasn't a flash crash, it was just a RBM - "Really Bad Minute". But fortunately my IPS doesn't require that I buy on every RBM.
by fundtalker123
Wed Apr 24, 2013 10:42 am
 
Forum: Investing - Theory, News & General
Topic: yet another mini flash crash Tue Apr 23 2013
Replies: 25
Views: 2138

Re: Survey: your liability adjusted stock allocation & age?

mhc wrote:Age: ~45
Stocks: 80%
Adj Stock: 80%

Not too interesting if there are no liabilities.


But that's a good comparison for me, Thanks.

On the face your 80/20 portfolio looks more risky than my 70/30.

But since I have a mortgage my equity allocation is probably more risky than yours.
by fundtalker123
Sat Mar 30, 2013 11:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Survey: your liability adjusted stock allocation & age?
Replies: 9
Views: 585

Re: Survey: your liability adjusted stock allocation & age?

If you want to consider home equity as an investment, I also think it is interesting to calculate: (stocks + home equity) / (investment portfolio + home equity - liabilities) For this I get 89%. To me it indicates I'm effectively heavier in equity like investements than my 70/30 investment portfolio...
by fundtalker123
Sat Mar 30, 2013 11:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Survey: your liability adjusted stock allocation & age?
Replies: 9
Views: 585

Re: Survey: your liability adjusted stock allocation & age?

I never characterized my mortgage as being leverage for my equities. Not sure the benefit of not counting home equity but counting mortgage(which to me is an expense to live somewhere) when calculating the risk of your asset allocation. I can't sell my home to pay for my retirement because then I w...
by fundtalker123
Sat Mar 30, 2013 11:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Survey: your liability adjusted stock allocation & age?
Replies: 9
Views: 585

Survey: your liability adjusted stock allocation & age?

I have seen surveys on this forum of age vs. asset allocation, but I would like to survey age vs. % in stocks relative to investments minus liabilities For example, age ~40, I have 70% stocks in my investment portfolio (not including home equity) But, stocks / (investment portfolio - loans) = 87% Hy...
by fundtalker123
Sat Mar 30, 2013 8:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Survey: your liability adjusted stock allocation & age?
Replies: 9
Views: 585

Re: should we think about retirement?

[personal comment removed by admin alex, followups by other members also removed]
by fundtalker123
Tue Mar 19, 2013 10:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: should we think about retirement?
Replies: 105
Views: 6591

Re: Opinions on Taxable Investing vs 529?

Can probably only use 529 withdrawals at selected universities in the USA
by fundtalker123
Tue Feb 19, 2013 1:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Opinions on Taxable Investing vs 529?
Replies: 4
Views: 312

Plan to simplify portfolio (17 accounts)

Seeking comments on plan to simplify portfolio. We have 17 different accounts: Taxable, 2x403b, 457, DCP, 401k, Money Purchase, Profit Sharing, 2xRoth IRA, Variable Annuity, 2x529s, Bank CDs, 3xTreasury Direct To achieve the desired allocation, due to fund choices, I use 18 different funds. Rebalanc...
by fundtalker123
Sat Feb 16, 2013 12:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Plan to simplify portfolio (17 accounts)
Replies: 2
Views: 406

Re: Are actively managed bond funds a better choice ?

Suppose you only had two bond funds to choose from in your retirement plan, a long bond index with mean duration ~20 years and an active bond fund wherein the manager could adjust the duration at whim. Suppose interest rates were at a historically low point and happened to sharply rise over the next...
by fundtalker123
Fri Feb 08, 2013 8:45 pm
 
Forum: Investing - Theory, News & General
Topic: Are actively managed bond funds a better choice ?
Replies: 20
Views: 1176

Re: Why not to delay all gratification

Fortunately it has been shown that over the last 30 years that small value stock returns correlate with frequency of meteor impacts, so those who tilt should be safe for the next millenium or so. If a meteor hits your house, your small value stocks will probably go up enough that you can buy a new h...
by fundtalker123
Fri Feb 08, 2013 8:37 pm
 
Forum: Personal Consumer Issues
Topic: Why not to delay all gratification
Replies: 30
Views: 3524

Re: Help Understanding Swedroe's Minimizing Fat Tails Portfo

First, never invest in anything you don't fully understand because when it underperforms you will be prone to confusing strategy and outcome and abandon the strategy Second, I have backtested the strategy to 1970 and it has held up remarkably well in all environments. Third, IMO it is the most dive...
by fundtalker123
Wed Jan 30, 2013 12:21 am
 
Forum: Investing - Theory, News & General
Topic: Help Understanding Swedroe's Minimizing Fat Tails Portfolio
Replies: 49
Views: 5687

Re: Better to rebalance daily when market is dropping sharpl

Neither of the poll options fit for me. I rebalance when my rebalancing bands are exceeded. Whether that turns out to be daily, weekly, monthly, yearly, or less frequently is dictated by the behavior of the market. I do not rebalance to "target", but to a point within the band. Events lik...
by fundtalker123
Fri Jan 25, 2013 6:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Better to rebalance daily when market is dropping sharply?
Replies: 9
Views: 675

Better to rebalance daily when market is dropping sharply?

In a recent poll I asked "If the stock market drops 50% in one week will you rebalance?" I should have specified "rebalance IMMEDIATELY" (i.e., daily following sharp daily drops) Many seem to say "Yes", presumably because they imagine they will capture the "inevita...
by fundtalker123
Fri Jan 25, 2013 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Better to rebalance daily when market is dropping sharply?
Replies: 9
Views: 675

Re: If market drops 50% in a week will you rebalance?

livesoft wrote:I wouldn't wait for it to be a 50% drop, so I would probably be rebalancing all the way down.


Fair enough, but is there some point where you would start to get nervous?
by fundtalker123
Mon Jan 21, 2013 6:01 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

Ok, how about if the market drops 99% in one day, you are still 100% sure you will have the guts to rebalance? Hmmm. Is it that you didn't like the answers to your 50% in a week question so you ask something still more extreme, with an added requirement of 100% confidence? It's always possible to f...
by fundtalker123
Mon Jan 21, 2013 5:59 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

There is no "supposed" plan... there is a plan [period]. It should be self-explanatory, but I'll be happy to expand if necessary. I contend that any "plan" simply written down on a piece of paper is merely theoretical until actually actually tested under extreme conditions. For ...
by fundtalker123
Mon Jan 21, 2013 5:57 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

Aren't the following questions relevant, too? 1) If the market drops 50% in a month, would you rebalance? 2) If the market drops 50% in a year, would you rebalance? But I would guess it also depends on how often you check the market. Seems like many on this site have the discipline of checking thei...
by fundtalker123
Mon Jan 21, 2013 5:47 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

LAlearning wrote:Yes.....a la Target date and Lifestrategy funds! KISS.


Do you know for sure what the details of the rebalancing policy of those funds are?
by fundtalker123
Mon Jan 21, 2013 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

[quote="YDNAL"]There is no "supposed" plan... there is a plan [period]. It should be self-explanatory, but I'll be happy to expand if necessary.[quote="YDNAL"] I contend that any "plan" simply written down on a piece of paper is merely theoretical until actual...
by fundtalker123
Mon Jan 21, 2013 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

Boglenaut wrote:In 2008 I rebalanced every day for a week. It kept hitting my triggers so I stuck to the plan.

I am glad I did now.


If the market had fallen but not recovered would you now be saying "I regret I did it" or would you be saying "Hmm, next time I'm not sure I'll do that again"?
by fundtalker123
Mon Jan 21, 2013 1:14 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

baw703916 wrote:I would probably wait until the negative momentum had stabilized, then rebalance.


How do you know when "the negative momentum has stabilized"

Do you mean if it drops 50% in one week, but then stays nearly constant for one week, then you will rebalance?
by fundtalker123
Mon Jan 21, 2013 1:12 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

YDNAL wrote:Yes, I would rebalance since our plan includes a floor for Fixed Income investments that will not be affected by taking money to rebalance after a 50% market drop in Equities.


This is an interesting component of your plan. What % of your portfolio is the floor?
by fundtalker123
Mon Jan 21, 2013 1:10 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

"I'm comfortable with my asset allocation (70/30) and usually rebalance when it gets off by >1% (as frequently as necessary) However, if the market dropped 50% in 1 week, realistically I'm not sure whether I'd have the stomach to rebalance." This doesn't make sense. Instead you should ign...
by fundtalker123
Mon Jan 21, 2013 1:08 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

Re: If market drops 50% in a week will you rebalance?

If market drops 50% in a week will you rebalance? Yes, I would rebalance since our plan includes a floor for Fixed Income investments that will not be affected by taking money to rebalance after a 50% market drop in Equities. I'm comfortable with my asset allocation (70/30) and usually rebalance wh...
by fundtalker123
Mon Jan 21, 2013 1:05 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

If market drops 50% in a week will you rebalance?

I'm comfortable with my asset allocation (70/30) and usually rebalance when it gets off by >1% (as frequently as necessary) However, if the market dropped 50% in 1 week, realistically I'm not sure whether I'd have the stomach to rebalance. I believe I wouldn't panic sell stock funds, but I'm not sur...
by fundtalker123
Mon Jan 21, 2013 12:44 pm
 
Forum: Investing - Theory, News & General
Topic: If market drops 50% in a week will you rebalance?
Replies: 118
Views: 5796

How many asset types do you use?

Sometimes think I should reduce, but currently use 10

Total stock index
Small value index
REIT index
Global ex-US
Foreign small value
Total bond
Short treasury index
TIPS index
Ibonds
CDs

Partly has to do with what is accessible in retirement accounts
by fundtalker123
Sun Jan 20, 2013 1:55 am
 
Forum: Investing - Help with Personal Investments
Topic: How many asset types do you use?
Replies: 10
Views: 780

Re: Does Vanguard have a fund similar to Fama & French ?

Fama and French say if you want to take a bigger risk of losing money look into small value stocks
by fundtalker123
Wed Jan 16, 2013 6:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard have a fund similar to Fama & French ?
Replies: 23
Views: 2010

Re: minivan thing

We have a 2011 Sienna. It theoretically accomodates 8 people, but in my view it really only accomodates 4. After you put two kids car seats in the "middle row (left and right sides, where the only latch connectors are) you are left with: 1. One very narrow very uncomfortable seat in the middle ...
by fundtalker123
Sat Jan 05, 2013 6:05 pm
 
Forum: Personal Consumer Issues
Topic: minivan thing
Replies: 84
Views: 4779

Re: Retiring Vanguard CIO Gus Sauter Looks Back

My understanding is they don't get paid too well at Vangard (if that is actually true, thank you!). But he probably indexed his portfolio (unless they don't practice what they preach?), so he's probably ok if he limits his withdrawls per year to 3%. He could earn some money part time, shoveling the ...
by fundtalker123
Tue Dec 25, 2012 1:55 am
 
Forum: Investing - Theory, News & General
Topic: Retiring Vanguard CIO Gus Sauter Looks Back
Replies: 13
Views: 1652

Can't think of x-mas gift to give wife...

I have trouble thinking of anything ... Money is not an issue, as she already has way more than enough to buy anything she wants (due more to her salary than mine... ) Any ideas :?: Clothes/shoes - she is not into fashion and she would have to pick what she wants herself anyways (but maybe just givi...
by fundtalker123
Tue Dec 18, 2012 5:23 pm
 
Forum: Personal Consumer Issues
Topic: Can't think of x-mas gift to give wife...
Replies: 44
Views: 3125

Re: How much do I really have for retirement?

A typical retirement strategy in CA has been to buy house 30-40 years ago for 20k, sell for 2000k, move
to another state and live like a king (albeit in worse weather)
by fundtalker123
Tue Dec 11, 2012 10:16 pm
 
Forum: Investing - Theory, News & General
Topic: How much do I really have for retirement?
Replies: 65
Views: 5258

Re: Wiki Topic "Back Door Roth IRA"

I suggest it simply be called "Mechanism to insure that each and every American has equal opportunity to contribute to a Roth IRA" Sorry, you are wrong. I have no earned income. I can not contribute to an IRA or any kind, front door, backdoor, Roth, traditional, deductible, or non-deducti...
by fundtalker123
Sat Dec 01, 2012 3:59 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Wiki Topic "Back Door Roth IRA"
Replies: 21
Views: 1319

Re: Wiki Topic "Back Door Roth IRA"

I suggest it simply be called "Mechanism to insure that each and every American has equal opportunity to contribute to a Roth IRA"
by fundtalker123
Sat Dec 01, 2012 3:50 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Wiki Topic "Back Door Roth IRA"
Replies: 21
Views: 1319

Re: Is this a Really Bad Day?

livesoft wrote:I'm afraid there is no formula. There is an algorithm. I have written a computer program that runs the algorithm. I am willing to sell it to folks for $10 million a pop.


Thanks for the offer, but I already have a random number generator on my computer.
by fundtalker123
Fri Nov 09, 2012 1:53 am
 
Forum: Investing - Theory, News & General
Topic: Is this a Really Bad Day?
Replies: 52
Views: 6503

Re: Our expenses will be 70% lower in retirement?

A couple of things came to mind as I was looking at your list. You have car payments going to zero but I assume you will still buy a car or cars sometime in retirement. Also I didn't see health care related expenses. Maybe you have these bundled in categories. I retired at 63 (currently 64) and hea...
by fundtalker123
Sat Jul 21, 2012 11:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Our income needed will be 70% lower in retirement?
Replies: 43
Views: 3708

Re: Our expenses will be 70% lower in retirement?

Here are some expenses that you may have missed or not considered. (1) College Tuition. (I am not sure if the Student loan payments are for you/spouse or future for the kids.) (2) Gifts (Charitable and Non-Charitable). Gifts for grandchildren/DIL/SIL can get expensive. :) (3) Unanticipated support ...
by fundtalker123
Sat Jul 21, 2012 11:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Our income needed will be 70% lower in retirement?
Replies: 43
Views: 3708
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