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Re: Splitting value/growth between taxable/non-taxable

I don't think it is worth doing, because the extra expenses will cancel out the tax savings, and you may have tax costs from rebalancing. Assume Admiral shares of all funds, 50% tax bracket, 15% tax on qualified dividends. $100K Total Stock Market in taxable, 0.05% expenses cost $50. 1.79% yield is ...
by grabiner
Mon Mar 30, 2015 11:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Splitting value/growth between taxable/non-taxable
Replies: 1
Views: 141

Re: What makes my marginal tax rate behave like this?

Well I think the difference is that TurboTax is also considering my California tax, which is high but deductible once I start getting back into the regular income tax. But your numbers still show the same pattern of rising and then falling. Is it considering the CA tax for this year? If you add mon...
by grabiner
Mon Mar 30, 2015 11:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: What makes my marginal tax rate behave like this?
Replies: 15
Views: 1570

Re: Total International Vs. Small Cap Intl

Concerns: Looking forward, we note that the financial sector, at 25%, accounts for a significant portion of VXUS. These holdings are dominated by the shaky European banks, as well as Japanese banks, which face plenty of uncertainty under the new, easy money environment. In the emerging markets, the...
by grabiner
Mon Mar 30, 2015 11:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total International Vs. Small Cap Intl
Replies: 5
Views: 460

Re: What would you do now if you were all cash?

Why is the cash out of the market now? Did you just inherit it/receive it as a buyout/win the lottery, or did you pull it all out of the market? If you pulled it out of the market, your previous allocation was presumably too risky for you. Therefore, you should move back in, but not to the percentag...
by grabiner
Mon Mar 30, 2015 10:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: What would you do now if you were all cash?
Replies: 11
Views: 842

Re: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Fu

For clarification, Grabiner (and Nisiprius agrees) thinks there isn't that much difference in interest-rate risk between intermediate-term treasuries and intermediate-term corporate bonds, while the M* article states that treasuries are more risky in case of a rise in interest rates. Oh, there's so...
by grabiner
Mon Mar 30, 2015 10:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Funds
Replies: 16
Views: 2182

Re: Should I get a high-deductible plan?

I've had high deductible plans (I think also $1500) through most of my 20s, and was fine with them. I think the main thing is to make sure you have the ENTIRE deductible in your emergency fund so if you do have a huge medical emergency it doesn't turn into a financial emergency too. Fortunately, th...
by grabiner
Mon Mar 30, 2015 10:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I get a high-deductible plan?
Replies: 5
Views: 583

Re: Munis when moving to a different state

Thank you everyone for the great advice. This is exactly the type of guidance I was seeking. Am I correct in thinking I can sell VNYTX anytime in 2016 and be fine in terms of tax exemptions? For example, if I move to CA in June, but don’t switch to VCITX until October, will the distributions I earn...
by grabiner
Sun Mar 29, 2015 11:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Munis when moving to a different state
Replies: 9
Views: 1045

Re: K-1 tax question

You mention that the K-1 shows taxes paid on your behalf to DC. You don't mention any income shown on the K-1. While not a tax professional I'd guess that the DC non-resident tax form will look at all your income and then separate out the DC portion. Whether you get a refund or owe additional tax f...
by grabiner
Sun Mar 29, 2015 8:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: K-1 tax question
Replies: 8
Views: 757

Re: Recurring utility bills - How do you pay?

I do auto-pay for most bills from my checking account, including the two credit cards I use every month, my mortgage, my HOA dues, and my utilities. Since these are monthly bills, they are easy to track in Quicken; I know how much I will need in the checking account this month. My checking account i...
by grabiner
Sun Mar 29, 2015 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Recurring utility bills - How do you pay?
Replies: 43
Views: 2898

Re: Should I get a high-deductible plan?

I'm female, late 20s, in pretty good health (knock on wood)... haven't incurred any medical expenses in over 5 years. At the end of the every year, I regret that I didn't get a high-deductible plan and contribute to an HSA for the future (I'm hoping to have a kid in 2-3 years, and would like to set...
by grabiner
Sun Mar 29, 2015 8:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I get a high-deductible plan?
Replies: 5
Views: 583

Re: TurboTax Import Error from Vanguard: Who's Fault?

That said, there has been at least one case where a tax court judge accepted a "TurboTax defense", but there are far more cases where the taxpayers' attempt to blame tax software fell on deaf ears. Some relevant articles are linked here: http://taxprof.typepad.com/taxprof_blog/2012/09/tax...
by grabiner
Sun Mar 29, 2015 8:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: TurboTax Import Error from Vanguard: Who's Fault?
Replies: 15
Views: 1136

Re: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Fu

http://news.morningstar.com/articlenet/article.aspx?id=689802 In a recent article, Morningstar does not include any index (or Vanguard) funds among its top seven intermediate bond funds and lists the Vanguard Ginnie Mae fund as #8. The eight recommended funds are in alphabetical order, not order of...
by grabiner
Sun Mar 29, 2015 7:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Funds
Replies: 16
Views: 2182

Re: In-kind transfer & back-end sales load

However, you should think of the back-end load as already lost. When you bought shares with a back-end load, you agreed to pay a 12b(1) fee, probably 1% annually, and to pay a back-end load if you sold within a specified time. If the back-end load was, say, 5% going away after six years, then you lo...
by grabiner
Sun Mar 29, 2015 7:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: In-kind transfer & back-end sales load
Replies: 4
Views: 362

Re: All lazy portfolios impossible at Vanguard?

I agree with several other posters that getting the precise allocation on your first $10,000 isn't that important; it won't make any difference in your retirement income whether your first $10,000 has 32% foreign stock (LifeStrategy Growth) when you wanted 24%. When your portfolio gets to be $100,00...
by grabiner
Sun Mar 29, 2015 7:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: All lazy portfolios impossible at Vanguard?
Replies: 23
Views: 2601

Re: Advice on going from Roth with load funds to Vanguard

You can hold Franklin Templeton funds in a Vanguard brokerage account, and sell them within the account. If you want to hold Vanguard mutual funds instead, contact Vanguard for the procedure of selling IRA funds and transferring the money to a Vanguard fund. However, what you paid as a load is alrea...
by grabiner
Sun Mar 29, 2015 7:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice on going from Roth with load funds to Vanguard
Replies: 1
Views: 170

Re: Basic question about taxable and tax-advantaged accounts

Welcome to the forum! Taxable and tax-advantaged accounts are a separate decision from what to invest in. Every account has a type (Traditional IRA, Roth IRA, taxable account) as well as a holding (Vanguard Total International Stock Index, Vanguard Prime Money Market, bank CD). Whenever you open an ...
by grabiner
Sun Mar 29, 2015 7:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Basic question about taxable and tax-advantaged accounts
Replies: 2
Views: 402

Re: Estimated Quarterly Tax FOR VA STATE

[quote="djs05101985"]I guess my question is whether the 'safe harbor' rule is the same for VA state as it is for the Fed - i.e. "Pay 100% of your liability last year = no penalty and interest. If your 2014 adjusted gross income was more than $150,000 ($75,000 if you are married filing...
by grabiner
Sun Mar 29, 2015 7:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estimated Quarterly Tax FOR VA STATE
Replies: 5
Views: 752

Re: How to understand tax return

I wish TT or other programs did something like this: Because you donated $100 of goods, your tax liability went down by $29. Because you qualified for the foreign income exclusion, your tax liability went down by $800. The problem is that these things intersect in various ways, so the numbers won't...
by grabiner
Sat Mar 28, 2015 11:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: [Do 457 and extra pension contribs appear on tax return?]
Replies: 5
Views: 549

Re: Turbo Tax keeps prompting me to pay estimated quarterlie

If you owe enough tax this year that you might owe a penalty next year, TurboTax automatically prints out estimated tax forms; it doesn't help you adjust your withholding. (Nor does it help you adjust if you get a big refund, in which case you should probably file a W-4 claiming more allowances.) Yo...
by grabiner
Sat Mar 28, 2015 10:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estimated Quarterly Tax FOR VA STATE
Replies: 5
Views: 752

Re: investment allocation for a non-retirement goal

I am not a Californian. Other threads recommend not having all your tax-exempt bonds in one state. The optimum may be 50% California tax-exempt and 50% US tax-exempt. The risk is that something specific to California will occur and cause those bonds to default at a higher rate. Good point. I can do...
by grabiner
Sat Mar 28, 2015 7:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: investment allocation for a non-retirement goal
Replies: 9
Views: 806

Re: Paying for a house, paying off mortgage early

In this situation, you could also get a bridge loan, which is designed for this situation. A bridge loan is a short-term loan against a house you are trying to sell, so that you can buy a new house before you sell the current one. Interest rates on bridge loans tend to be higher than on other mortga...
by grabiner
Sat Mar 28, 2015 7:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying for a house, paying off mortgage early
Replies: 7
Views: 778

Re: Mortgage Debt in Retirement?

Read a book not too long ago that made a convincing case that you should always hold the maximum possible mortgage on any house that you own, even if you have to borrow against the equity. This is unlikely as a general rule. If you would be better off borrowing at mortgage rates to invest, why is t...
by grabiner
Sat Mar 28, 2015 7:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 74
Views: 4705

Re: HSA Tax Reporting

Ok, now as I re-read the statute, I wonder if HSAs could be exempted by this paragraph: 77:4-b Interest and Dividend Income of Employee Benefit Plans and Tax Deferred Investments Not Taxable. – Notwithstanding any provisions of RSA 77:4 to the contrary, interest and dividend income received by an e...
by grabiner
Sat Mar 28, 2015 7:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA Tax Reporting
Replies: 10
Views: 1065

Re: Mortgage Debt in Retirement?

Doesn't the interest portion decrease with each house payment and the amount of principal payoff increases with each payment? If so, towards the end of the mortgage, the borrower is paying less interest, more principal, thus slightly more tax on the same income necessary for the house payment? That...
by grabiner
Fri Mar 27, 2015 9:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 74
Views: 4705

Re: VFSVX or VSS for International Small Cap?

Leif wrote:Seems like the poll is messed up. Both choices say the same and have the same numbers.


When the forum was upgraded a few years ago, it broke all old polls; this thread was started in 2009.
by grabiner
Fri Mar 27, 2015 9:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: VFSVX or VSS for International Small Cap?
Replies: 69
Views: 17089

Re: HSA Tax Reporting

Three states: AL, CA, and NJ. Make that 4 states: AL, CA, NJ, NH However, NH's 5% Interest and Dividends Tax exempts the first $2400 of interest and dividends from taxation ($4800 for MFJ). Do you have an official source for this? I checked several sites which say that NH and TN do tax dividends an...
by grabiner
Fri Mar 27, 2015 9:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA Tax Reporting
Replies: 10
Views: 1065

Re: HSA question

After 65, are distributions taxed as ordinary income and is there a limit to how much you can withdraw (since 65 is the cut off for receipt/qualified distribution requirement)? After 65, distributions not used for medical expenses are taxed as ordinary income, without penalty. You can still have me...
by grabiner
Fri Mar 27, 2015 8:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA question
Replies: 20
Views: 1701

Re: Why 529 plan makes any sense??

I'm sure I'm missing something obvious here, but I've actually considered continuing to contribute to a 529 despite the fact that my kids are older and I may already be overfunded. My thinking is that even assuming a 10% penalty on earnings, I might still be better off using the Colorado Stable Val...
by grabiner
Fri Mar 27, 2015 8:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: When does a 529 plan make sense to me?
Replies: 194
Views: 8510

Re: HSA Tax Reporting

No Fed reporting required if no distributions taken. You may want to check your state requirements. At least one doesn't recognize HSAs and treats as a normal taxable account. Three states: AL, CA, and NJ. Even if you file a non-resident return with one of these states, you have to report the HSA a...
by grabiner
Thu Mar 26, 2015 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA Tax Reporting
Replies: 10
Views: 1065

Re: HSA question

This is incorrect. In order to qualify for tax-free HSA distributions, you must have had allowable medical expenses of at least the amount of the distribution. That's it. There is no requirement whatsoever that those expenses be incurred during a certain tax year or calendar year. The only time-rel...
by grabiner
Thu Mar 26, 2015 9:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA question
Replies: 20
Views: 1701

Re: New all-world Small-Cap multi-factor ETF

It looks interesting as a way to get exposure to international small-cap value, which currently isn't available except in the dividend-weighted DLS and DGS. Still, I'll pass. The 0.6% ratio is effectively a 1% ratio for the international small-cap value portion, if you would otherwise be holding the...
by grabiner
Thu Mar 26, 2015 8:55 pm
 
Forum: Investing - Theory, News & General
Topic: New all-world Small-Cap multi-factor ETF
Replies: 4
Views: 631

Re: Keep Cash in Yuan?

There is no particular reason to keep cash in a foreign currency unless you plan to spend that foreign currency (for example, going on a trip to China); you take the risk that the specific foreign currency will rise or fall against the dollar, and if it falls, you lose purchasing power. If you are c...
by grabiner
Thu Mar 26, 2015 8:47 pm
 
Forum: Investing - Theory, News & General
Topic: Keep Cash in Yuan?
Replies: 10
Views: 1122

Re: Vanguard Expense Ratio Changes

The bond fund ERs certainly seem to move a lot less frequently. I suppose that's probably because the AUM doesn't swing wildly. Also, some Vanguard actively-managed stock funds have incentives as part of the management fee; if the fund outperforms its benchmark, the manager may be rewarded with a s...
by grabiner
Thu Mar 26, 2015 8:44 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Expense Ratio Changes
Replies: 5
Views: 1462

Re: Treasuries vs. Treasury Funds?

Buying individual TIPS has an additional complication that you owe tax on the inflation adjustment but don't receive a payment for it. TIPS funds distribute the inflation adjustment as a dividend.
by grabiner
Thu Mar 26, 2015 8:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Treasuries vs. Treasury Funds?
Replies: 6
Views: 766

Re: HSA deadline for tax deduction eligibility

I called up Anthem to verify and I was told that the May to January plan was officially labeled HSA compatible but the January to May one (with the 5600 deductible) was not. I asked if the one that wasn't labeled HSA compatible was still considered an HDHP by the IRS's rules and the agent had no id...
by grabiner
Thu Mar 26, 2015 8:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA deadline for tax deduction eligibility
Replies: 10
Views: 641

Re: Can you really know your AA until you've hit a bear mark

I agree with the advice here. Whenever a poster asks for advice on an all-stock portfolio, I always ask, "How much stock did you have in 2008?" If the answer is 80% of a non-trivial portfolio, then he knows how he reacted to losing half his investments, and 100% stock may be right. For me,...
by grabiner
Thu Mar 26, 2015 8:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can you really know your AA until you've hit a bear market?
Replies: 74
Views: 5117

Re: Why 529 plan makes any sense??

The money that I earn is used in the following order: 1. For food, clothing and shelter today. 2. Fund 401K upto the match. 3. Fund Roth IRA or backdoor Roth. 4. Fund balance of the 401K. 5. Fund HSA (as stealth IRA) 6. Fund 529 ac to the extent of the state tax exemption. 7. Fund 457 B plan. (My 4...
by grabiner
Thu Mar 26, 2015 8:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: When does a 529 plan make sense to me?
Replies: 194
Views: 8510

Re: Total International Stock Index includes small caps or n

I still do not understand why Vanguard manages the two funds anymore and does not merge them. While the names are confusing, the pair makes sense. In US stocks, Vanguard has a Large-Cap Index, a Small-Cap Index, and a Total Stock Market Index which includes both. Similarly, in foreign stocks, Vangu...
by grabiner
Wed Mar 25, 2015 8:31 pm
 
Forum: Investing - Theory, News & General
Topic: Total International Stock Index includes small caps or not?
Replies: 9
Views: 1308

Re: Should a BH investor never use futures/options?

You can use them to hedge your exposure to your own company's stock. Check with your compliance department; many corporations do not allow you to trade options on your own company's stock, and others may not allow you to take an adverse position such as buying a put, particularly if you are restric...
by grabiner
Wed Mar 25, 2015 8:26 pm
 
Forum: Investing - Theory, News & General
Topic: Should a BH investor never use futures/options?
Replies: 64
Views: 3645

Re: Vanguard Screwed up 1099-B

I will hold off on filing my taxes until close to 4/15 to see if I get a new 1099B. If you are still waiting, you can file for an extension, with a payment of an estimate of tax due, and then file the full return through October 15 with no penalty. (If you underpay, you may owe a small amount of in...
by grabiner
Wed Mar 25, 2015 7:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard [Messed up] 1099-B
Replies: 8
Views: 1564

Re: Free Credit Report

Since it has been a while since you checked your credit reports, you might consider checking your fico score also. You can do this for free with credi karma. https://www.creditkarma.com/ Credit Karma gives a VantageScore 3.0, not a FICO score. This is a score used by some lenders, although FICO is ...
by grabiner
Tue Mar 24, 2015 10:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Free Credit Report
Replies: 8
Views: 836

Re: Corrected 1099-DIV: Do I have to amend my return?

Same with Form 1116 - not really complicated if all you have is RIC investments and you follow the instructions. You probably haven't gotten it right if you think it isn't complicated; in particular, tax software can't get it right. (Usually, the failure to get it right won't matter.) Suppose that ...
by grabiner
Tue Mar 24, 2015 10:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Corrected 1099-DIV: Do I have to amend my return?
Replies: 12
Views: 1116

Re: Do all cost-basis calcs yield the same total capital gai

All cost-basis calculations yield the same total capital gains if you sell all the shares . But if you donate some of your shares to charity, or leave them to your heirs, specific identification will reduce your total capital gains, because you can make the shares you never sell those with the lowes...
by grabiner
Tue Mar 24, 2015 10:09 pm
 
Forum: Investing - Theory, News & General
Topic: Do all cost-basis calcs yield the same total capital gains
Replies: 5
Views: 445

Re: Vanguard fund in 401k with higher fees

There is a cost to run a 401(k), and it may be paid by either the employer or the plan accounts. John Hancock has an agreement that the plan accounts pay the fees, which appear to be about 1%. All you can do about this is max out other accounts (your 401(k), IRAs, 529 for children's college savings)...
by grabiner
Tue Mar 24, 2015 9:52 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard fund in 401k with higher fees
Replies: 4
Views: 426

Re: HSA as a retirement account

This is a great idea as long as you max out your retirement accounts; see Health savings account on the wiki. If you don't max out your retirement accounts, then it is better to use the HSA for current expenses. If you have a $1000 medical bill and $1000 in your checking account, you can pay the med...
by grabiner
Tue Mar 24, 2015 9:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA as a retirement account
Replies: 2
Views: 343

Re: Difference between SEC yield and Distribution yield

Another issue is that funds may amortize premiums; thus, the distribution yield for the same bond may depend on when the fund bought it. Consider that example Treasury bond. If you had bought the bond at par for $100, you would owe tax on the dividend of $2.875 annually. But if you bought the bond t...
by grabiner
Tue Mar 24, 2015 9:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Difference between SEC yield and Distribution yield
Replies: 3
Views: 483

Re: Munis when moving to a different state

Welcome to the forum! There will be almost no cost to switch funds when you move; capital gains on muni funds are usually very low. If you move from NY to CA, you will owe NY tax on any dividends you earned while you are a NY resident, and CA tax on any dividends you earned while you are a CA reside...
by grabiner
Tue Mar 24, 2015 9:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Munis when moving to a different state
Replies: 9
Views: 1045

Re: Fidelity offer to match IRA contributions

One has to transfer half a million ($500,000) to get 10%. Less than $10,000 gets nothing, $10K gets 1%. That puts it in perspective. And the match is only on the annual contributions. If you transfer $500K, you will get a 10% match on the $16,500 you contribute over the next three years, which is $...
by grabiner
Tue Mar 24, 2015 9:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity offer to match IRA contributions
Replies: 12
Views: 2208

Re: Tax Differed Variable Annuity

Fidelity is currently looking more attractive because it only charges 0.25% expense ration and the sp500 index fund is only 0.1% for a total of 0.35% expense ration. It doesn't make sense to buy a variable annuity to hold a stock index fund. Gains on variable annuities are not taxed until you withd...
by grabiner
Tue Mar 24, 2015 9:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Differed Variable Annuity
Replies: 16
Views: 1138

Re: Company Savings plan-was Riffed, Now what

You may also be able to roll the old 401(k) into a 401(k) at your new employer (but check the options first; using an IRA might be better because high fees are common in 401(k) plans).
by grabiner
Tue Mar 24, 2015 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Company Savings plan-was Riffed, Now what
Replies: 14
Views: 1930
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