Search found 15056 matches

by grabiner
Tue Jul 28, 2015 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: New Car - Cash or Finance?
Replies: 30
Views: 2015

Re: New Car - Cash or Finance?

We've paid cash for the last 2 personal cars. It's a great feeling to write a check, leave with the car and have no further financial obligation. The last time I did this a rather snide finance manager told me it was a dumb move to pay cash because if I happened to total it insurance wouldn't cover...
by grabiner
Tue Jul 28, 2015 10:20 pm
Forum: Investing - Theory, News & General
Topic: Audit over backdoor Roth
Replies: 4
Views: 710

Re: Audit over backdoor Roth

The IRS could easily identify probable backdoor Roths and audit everyone who did them, because the details are all on Form 8606. If you had no IRA last year, contributed $5500 to a non-deductible IRA, and converted $5500 (or $5400 or $5600), you almost certainly did a backdoor Roth. The fact that th...
by grabiner
Tue Jul 28, 2015 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable income computation by Vanguard
Replies: 21
Views: 864

Re: Taxable income computation by Vanguard

4. Should I be careful not to sell before the end of a quarter (end of September) or end of the year (end of December)? This doesn't matter. If you sell after a dividend, you will receive the dividend but the fund value will decrease by an equal amount. Since the dividend is probably 100% qualified...
by grabiner
Tue Jul 28, 2015 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: TIRA & ROTH IRA---which funds where?
Replies: 2
Views: 204

Re: TIRA & ROTH IRA---which funds where?

If you adjust for the fact that the IRS owns part of your traditional IRA and none of your Roth IRA, it doesn't matter much what goes in which account. If you are in a 15% bracket, $8500 in a Roth IRA and $10,000 in a Traditional IRA will give you the same after-tax value if you invest them the same...
by grabiner
Tue Jul 28, 2015 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Fund Placement help
Replies: 3
Views: 186

Re: Fund Placement help

I wouldn't recommend having more than half your bonds in NY. You might have half in a NY muni fund, and half in a bond fund in your IRA. Alternatively, you could have half in NY Long-Term Tax-Exempt, and half in Limited-Term Tax-Exempt; only half your bonds would be in NY, but far more than half you...
by grabiner
Tue Jul 28, 2015 12:10 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Developed & Emerging Markets Indexes — Transition Details
Replies: 45
Views: 3075

Re: Vanguard's Developed & Emerging Markets Indexes — Transition Details

It annoys me slightly. I also wondered why everyone is blaming VG for the changes. It seems to me that this was the FTSE Index Co.'s decision, not VG's?, though I don't really know. Just makes business sense to me, though VG may have high influence. It is Vanguard's decision. FTSE maintains both la...
by grabiner
Mon Jul 27, 2015 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: AGI Reductions and longterm tax minimization ideas
Replies: 2
Views: 383

Re: AGI Reductions and longterm tax minimization ideas

The next way to minimize tax exposure is to use tax-efficient investments. If your taxable investments are in stock index funds, you will only pay taxes on the dividends until you sell, and those dividends will be mostly qualified and taxed at 15%. If your taxable investments are in municipal bond f...
by grabiner
Mon Jul 27, 2015 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Would umbrella insurance cover this?
Replies: 3
Views: 686

Re: Would umbrella insurance cover this?

This is exactly what umbrella insurance is designed to cover; it covers your liability when you are at fault, just as ordinary liability does. It may also cover liability for things which are not in the underlying insurance policies, although exactly what it covers varies somewhat by policies. Even ...
by grabiner
Mon Jul 27, 2015 11:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Developed & Emerging Markets Indexes — Transition Details
Replies: 45
Views: 3075

Re: Vanguard's Developed & Emerging Markets Indexes — Transition Details

Also of interest is this wording from Vanguard, regarding capital gains Vanguard doesn't expect the transitions to result in capital gains distributions to the funds' shareholders, according to analysis based on the expected trading activity and the funds' current realized and unrealized capital ga...
by grabiner
Mon Jul 27, 2015 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investing
Replies: 2
Views: 362

Re: HSA investing

Since you are using the HSA to cover healthcare costs in retirement, it makes sense to invest the HSA as if it were part of your IRA. Thus, if Vanguard Total Stock Market would be an appropriate investment for your IRA (likely, unless you need to hold US stocks in your 401(k)), you can hold it in yo...
by grabiner
Sun Jul 26, 2015 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Yearly Check-Up
Replies: 8
Views: 1299

Re: Yearly Check-Up

Just some overall comments/questions regarding tax efficiency; Is VTIAX throwing off non-qualified dividends (given the foreign component)? If so, it might be better held in an IRA. But you should consider carefully before taking a capital gains to move it. VTIAX (Total International) has some non-...
by grabiner
Sun Jul 26, 2015 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Hourly W2 - Any Retirement Options?
Replies: 10
Views: 817

Re: Hourly W2 - Any Retirement Options?

With beneficial capital gains taxation rules it is not impossible for a taxable investment account to provide better (lower) tax results then a tax-advantaged investment account like a 401k or IRA. This is impossible for a Roth IRA, since a Roth IRA grows tax-free, and a taxable investment cannot g...
by grabiner
Sun Jul 26, 2015 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Protection against stock correctiom
Replies: 25
Views: 2434

Re: Protection against stock correctiom

For the sake of argument, let us say that it is just a matter of time before a correction (i.e., at least 10%). Has anyone done research on the type of stocks that would provide highest protection relative to the total market? High quality, minimum volatility? Low beta. Beta is a measure of correla...
by grabiner
Sun Jul 26, 2015 6:15 pm
Forum: Personal Consumer Issues
Topic: OPM breach and credit freeze
Replies: 194
Views: 16856

Re: CSID website from US govt for having - credit monitoring

This is a legitimate service. CSID is the contractor providing identity-theft coverage for people affected by the first OPM hack.

If you are still working for the government, your own agency may be able to give you more advice on what to do.
by grabiner
Sun Jul 26, 2015 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Hourly W2 - Any Retirement Options?
Replies: 10
Views: 817

Re: Hourly W2 - Any Retirement Options?

I might take a position that provides no retirement benefits (or any other benefits) but is technically paid hourly via W2 (not 1099 as I'm used to). Is there any retirement options available - apart from a Roth IRA? Since you have no retirement benefits, you can contribute to a Traditional IRA reg...
by grabiner
Sun Jul 26, 2015 6:07 pm
Forum: Investing - Theory, News & General
Topic: Would Demand For Bonds Temper the Drop in NAV
Replies: 13
Views: 780

Re: Would Demand For Bonds Temper the Drop in NAV

If rates rise and, subsequently, the bond funds 'nav' drops in proportion to average duration of the bond fund, is it possible that the magnitude of the drop will be tempered by the public demand for better yielding bond funds? In other words, if there is a rush to buy the bond funds once the yield...
by grabiner
Sun Jul 26, 2015 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing capital gains towards a shorter-term goal
Replies: 12
Views: 594

Re: Realizing capital gains towards a shorter-term goal

It looks like my choices are short-term savings (either the limited-term federal fund we discussed earlier or a MM/savings account/appropriate-term CD, and accepting that this is a lower effective return rate than my current mortgage, although in exchange I gain some liquidity) or paying down the m...
by grabiner
Sun Jul 26, 2015 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Hourly W2 - Any Retirement Options?
Replies: 10
Views: 817

Re: Hourly W2 - Any Retirement Options?

I might take a position that provides no retirement benefits (or any other benefits) but is technically paid hourly via W2 (not 1099 as I'm used to). Is there any retirement options available - apart from a Roth IRA? Since you have no retirement benefits, you can contribute to a Traditional IRA reg...
by grabiner
Sun Jul 26, 2015 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: New job - which TSP funds to select?
Replies: 4
Views: 592

Re: New job - which TSP funds to select?

Since you have a large taxable account, you will have to manage your asset allocation on your own even if you use an L fund in the TSP. Therefore, it makes sense to use the individual funds in the TSP to get your desired allocation. I know that investing in the G Fund is a good idea b/c of no risk i...
by grabiner
Sun Jul 26, 2015 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Harvest Savings Bonds or Proceed to Tax-deferred
Replies: 4
Views: 340

Re: Harvest Savings Bonds or Proceed to Tax-deferred

If the savings bonds are paying well above the market rate (I Bonds paying higher rates than TIPS, EE Bonds paying higher rates than current Treasuries), you should probably keep them. Interest on the savings bonds is also tax-deferred, so it makes more sense to sell bonds in your IRA paying the mar...
by grabiner
Sun Jul 26, 2015 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Investing the proceeds from the sale of your home
Replies: 8
Views: 852

Re: Investing the proceeds from the sale of your home

1. Tax Managed Balanced funds are designed to avoid regular Fed tax only right? Do they avoid AMT, because we are hit with AMT every year? I had "tax advantaged bond funds" in the past, but they were always hit with AMT. The muni portion avoids Federal taxes - but I don't know if they cur...
by grabiner
Sun Jul 26, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing capital gains towards a shorter-term goal
Replies: 12
Views: 594

Re: Realizing capital gains towards a shorter-term goal

Can I get you to clarify something for me? Your bond holdings should not have a significantly longer duration than your time horizon; if rates rise, you will lose money and not have time to make it up from the higher yields. Thus, while CA Intermediate-Term Tax-Exempt is a good fund for a CA invest...
by grabiner
Sun Jul 26, 2015 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Blue chip or index Funds? Well, would ya Punk?
Replies: 20
Views: 2257

Re: Blue chip or index Funds? Well, would ya Punk?

I am hoping to achieve 6% p.a long term across the funds & stocks and eventually draw 4% pa off of them. Would you say that 6% pa would be a reasonable expectation going on your own experiences? 6% is a reasonable expected value, but you can't count on an expected value, because it falls short ...
by grabiner
Sun Jul 26, 2015 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Proportions large/mid/small cap and value v.s. growth
Replies: 4
Views: 389

Re: Proportions large/mid/small cap and value v.s. growth

I agree with David, and would like to add that Vanguard's Portfolio Watch tool, by my direct experience, doesn't even correctly classify the holdings of all of Vanguard's own mutual funds. If you want to know your actual allocation, use Morningstar's Portfolio X-Ray instead. Vanguard categorizes mo...
by grabiner
Sat Jul 25, 2015 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Line of Credit
Replies: 5
Views: 927

Re: Personal Line of Credit

A line of credit is just a term for an open credit account. If you open it, then it will be reported on the credit report according to whatever type of loan it is, with an inquiry to open it, and a current balance, date opened, amount owed, and payment history which affect your credit history accord...
by grabiner
Sat Jul 25, 2015 4:04 pm
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3776

Re: "Total" Stock No More So than "Total" Bond

Wasn't the Tax Managed Large Cap also merged with something, maybe into the S&P 500 index fund? I don't remember the details, since I don't own either fund. Tax-Managed Growth and Income was merged into 500 index. With the development of ETFs, the S&P 500 index was already just as tax-effic...
by grabiner
Sat Jul 25, 2015 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: NY 529 tax deductability for NY resident who works in NJ
Replies: 3
Views: 263

Re: NY 529 tax deductability for NY resident who works in NJ

You will probably benefit from the NY 529, and get close to the full benefit. The way taxes work in your situation is that you pay NJ tax on all the income you earned in NJ, then compute your NY tax, and take a NY tax credit equal to the lesser of the tax you actually paid to NJ on income taxed by b...
by grabiner
Sat Jul 25, 2015 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Proportions large/mid/small cap and value v.s. growth
Replies: 4
Views: 389

Re: Proportions large/mid/small cap and value v.s. growth

I did the VG portfolio analysis and it stated: "Caution: The proportions of large-, mid-, and small-capitalization stocks in your portfolio differ from those of the market. This puts your portfolio at risk of underperforming the market. " "Caution: Your portfolio emphasizes value sto...
by grabiner
Sat Jul 25, 2015 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: What should I put in my Roth IRA if TDF's are "bad?"
Replies: 24
Views: 919

Re: What should I put in my Roth IRA if TDF's are "bad?"

Are there any problems with having nothing BUT a tdf (VFFVX) in your Roth IRA? There are no problems, and, in fact, this is the best way to use target-date funds. The purpose of a target-date fund is to keep the right allocation automatically; if you mix target and non-target funds, you have to do ...
by grabiner
Sat Jul 25, 2015 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Do I dump the Vanguard energy Fund in my 401k
Replies: 32
Views: 2806

Re: Do I dump the Vanguard energy Fund in my 401k

breakfixit , welcome to the forum. I would hold the energy allocation if I were you. IMO you are demonstrating exactly the behavior of why most people severely underperform the market - don't sell low. You shouldn't decide to buy, sell or hold a fund because it is down or up; any of these can be a ...
by grabiner
Sat Jul 25, 2015 3:14 pm
Forum: Investing - Theory, News & General
Topic: [Original Research] Is credit risk exaggerated?
Replies: 20
Views: 1174

Re: [Original Research] Is credit risk exaggerated?

This research is flawed. During times of crises, defaults will increase, resulting in price reduction to HYG, due to loss of principal. Put another way: the discount rate applied to HYG should be higher because of this risk. But those defaults already show up in the lower dividend stream so I've go...
by grabiner
Fri Jul 24, 2015 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: Unequal estimated tax payments
Replies: 25
Views: 1767

Re: Unequal estimated tax payments

EFTPS or otherwise, despite the government's preference for equal estimated tax payments you don't incur an underwithholding penalty if you adjust each quarter's payment for income received that quarter. However, if you pay estimated tax, you will have to file Form 2210 to show how your income was ...
by grabiner
Fri Jul 24, 2015 10:49 pm
Forum: Forum Issues and Administration
Topic: Are Things Slowing Down Again?
Replies: 10
Views: 1370

Re: Are Things Slowing Down Again?

Speed is back to normal; I have read articles and made several posts.
by grabiner
Fri Jul 24, 2015 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing capital gains towards a shorter-term goal
Replies: 12
Views: 594

Re: Realizing capital gains towards a shorter-term goal

According to IRS Publication 590-A, Contributions to IRAs , the modified AGI for Roth IRA contribution does not need to be adjusted for tax-exempt interest. Thus, if you are trying to keep your income below the Roth IRA eligibility limit, putting the money in municipal bonds will help. (Another alt...
by grabiner
Fri Jul 24, 2015 9:15 pm
Forum: Investing - Theory, News & General
Topic: [Original Research] Is credit risk exaggerated?
Replies: 20
Views: 1174

Re: [Original Research] Is credit risk exaggerated?

The problem with yield is that the yield is not on the same money. Suppose that you have $10K in high-yield bonds with a stated yield of 5%. In a bad year, 20% of the bonds default and pay back half their value; the others continue to pay their yields. Your actual dividend yield is 4%. But more impo...
by grabiner
Fri Jul 24, 2015 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing capital gains towards a shorter-term goal
Replies: 12
Views: 594

Re: Realizing capital gains towards a shorter-term goal

According to IRS Publication 590-A, Contributions to IRAs , the modified AGI for Roth IRA contribution does not need to be adjusted for tax-exempt interest. Thus, if you are trying to keep your income below the Roth IRA eligibility limit, putting the money in municipal bonds will help. (Another alte...
by grabiner
Fri Jul 24, 2015 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Blue chip or index Funds? Well, would ya Punk?
Replies: 20
Views: 2257

Re: Blue chip or index Funds? Well, would ya Punk?

If you are more than 15 years from retirement, there are really only two questions for bond allocation: 1. Can I sleep well at night? 2. Will I stay the course through a huge market downturn (40+ percent)? There will likely be more than one of these in your investing lifetime. And you don't know th...
by grabiner
Thu Jul 23, 2015 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Better to realize stock losses in taxable or TIRA?
Replies: 18
Views: 1175

Re: Better to realize stock losses in taxable or TIRA?

Thanks guys for your perspectives but this question arose as we're considering moving stock from our TIRA to taxable for better tax efficiency and to reduce growth in the TIRA and future RMDs. BUT before doing anything was curious whether this was considered a good move or not with us only being in...
by grabiner
Thu Jul 23, 2015 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: When and how is the expense ratio of mutual funds deducted?
Replies: 6
Views: 857

Re: When and how is the expense ratio of mutual funds deducted?

Wonder how this works with VGMMX. I have had a few $k sitting in there with no change in value for months. This isn't a valid ticker. I assume you mean Vanguard Prime Money Market (VMMXX). Currently, for most money-market funds, including Vanguard's, the expenses are subsidized by the fund provider...
by grabiner
Thu Jul 23, 2015 8:37 pm
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4547

Re: The Danger of higher-yielding bond funds

I think Larry is off the mark on this one. Since 1985... High Yield.... Sharpe = 0.44, Correlation to SP500 = 0.2 International Stocks....Sharpe = 0.38, Correlation to SP500 = 0.8 If high yield isn't a good enough diversifier, then how does International make the cut? Your portfolio isn't the S&...
by grabiner
Thu Jul 23, 2015 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalance in Taxable or in IRA after receipt of Lump Sum
Replies: 6
Views: 423

Re: Rebalance in Taxable or in IRA after receipt of Lump Sum

It is more tax-efficient to hold stock in your taxable account, particularly in the 15% tax bracket in which you pay no taxes on qualified dividends or capital gains. You don't need to worry about having stock in your taxable account and planning to go through the taxable account first, because you ...
by grabiner
Thu Jul 23, 2015 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Do you take taxes into account when deciding your AA?
Replies: 6
Views: 717

Re: Do you take taxes into account when deciding your AA?

See Tax-adjusted asset allocation on the wiki. Whether it makes sense depends on whether you view risk mathematically or psychologically. Psychologically, losing $10,000 hurts just as much whether the IRS will eventually share that loss with you or not. But mathematically, losing $10,000 isn't as ba...
by grabiner
Thu Jul 23, 2015 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest my HSA?
Replies: 13
Views: 1579

Re: Should I invest my HSA?

My company's health plan offers an HSA that has an investing component - CareFirst + BenefitWallet/SaveDaily investing, with investments allowed after the first $1K in the savings account. The plan waives/covers all the HSA fees EXCEPT for the investment account. Each month that it is open, the inv...
by grabiner
Thu Jul 23, 2015 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Better to realize stock losses in taxable or TIRA?
Replies: 18
Views: 1175

Re: Better to realize stock losses in taxable or TIRA?

If you are in the 15% tax bracket, you should prefer stocks in taxable because the tax cost on qualified dividends is zero, and you may even be able to harvest some gains at zero tax (although converting a traditional IRA to a Roth is probably a better use of the 15% bracket). If stocks decline, yo...
by grabiner
Wed Jul 22, 2015 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Target Fund in Taxable
Replies: 3
Views: 674

Re: Target Fund in Taxable

There is no particular advantage of one distribution schedule over another; you get taxed on all the income either way. If you aren't spending the monthly distributions, you can reinvest them into this fund (or another fund, if appropriate). If you already have held one fund in a taxable account for...
by grabiner
Wed Jul 22, 2015 11:40 pm
Forum: Investing - Theory, News & General
Topic: Stock Tax Reporting?
Replies: 8
Views: 686

Re: Stock Tax Reporting?

Line-by-line will be trivial if you download the 1099-B into your tax program. The program won't group things into various (at least I have never seen it do that). Don't have a good tax program that does this? Get one. :) The download is not a substitute for checking the data yourself. In 2013, I s...
by grabiner
Wed Jul 22, 2015 11:30 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest my HSA?
Replies: 13
Views: 1579

Re: Should I invest my HSA?

See Health savings account on the wiki. You should be maxing out your HSA in preference to any other investment except a 401(k) matched by your employer. Unmatched 401(k) contributions are tax-deductible, but withdrawals are taxed. HSA contributions are tax-deductible, and withdrawals are not taxed ...
by grabiner
Wed Jul 22, 2015 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Emerging / Frontier Markets: Allocation & ETF Recomendations
Replies: 6
Views: 696

Re: Emerging / Frontier Markets: Allocation & ETF Recomendations

Welcome to the forum! - Overall, in equities I would still like to achieve an allocation of roughly 20%/30%/40%/10% to US/Developed/EM/FM. US and Developed I'm happy to use Vanguard's excellent VTI and VEA. This looks like an unnecessary risk. Developed markets don't have any inherent advantage over...
by grabiner
Wed Jul 22, 2015 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: asset allocation: based on pure or real investment?
Replies: 9
Views: 750

Re: asset allocation: based on pure or real investment?

What matters is to have a definition, and set your asset allocation accordingly. If you decide that small-cap is the bottom 10% of the market (as Morningstar does), and you want to overweight small-caps slightly, then you could hold 15% of your portfolio in that 10% region. If you decide that it is ...
by grabiner
Wed Jul 22, 2015 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: Huge Mistake, Bought PBYI, Now What?
Replies: 26
Views: 3425

Re: Huge Mistake, Bought PBYI, Now What?

If you had the cash in hand today, would you buy this stock at it's current price? If so, hold. If not then you should sell and get the cash back. This would be my advice as well. Divorce the decision from the emotion of "locking in the loss" and make an independent decision on ownership ...

Go to advanced search