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Re: are pension plans disciplined investors?

http://www.etf.com/sections/index-investor-corner/23615-swedroe-investor-mistakes-writ-large.html They have reputation for disciplined rebalancers, but is it true? There is nothing stopping an individual from rebalancing by buying stocks when they are down a lot, but how can a large class of instit...
by grabiner
Sat Oct 25, 2014 5:08 pm
 
Forum: Investing - Theory, News & General
Topic: are pension plans disciplined investors?
Replies: 4
Views: 494

Re: Process of buying my ETF.

I don't really don't care about the spreads anymore but all I buy is large/big/very active traded funds like TSM so the spread is mostly a non issue. Vanguard publishes historical bid/ask spreads for its ETFs, and ETF.com also publishes spreads. If an ETF normally trades at a 10-cent spread and is ...
by grabiner
Sat Oct 25, 2014 4:56 pm
 
Forum: Investing - Theory, News & General
Topic: Process of buying my ETF.
Replies: 4
Views: 398

Re: Yield vs. Duration

Have you thought about constructing a yield curve with the x axis as duration instead of maturity. I think Fido has all the data needed in their quotes. I think all the "outliers" will disappear with this presentation. I can do that. But I'll do it from the WSJ quotes, since there is more...
by grabiner
Sat Oct 25, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: So do we care more about change in bond price or bond yield?
Replies: 174
Views: 12006

Re: tax implications of international in taxable account

You have a choice actually between taking an itemized deduction or claiming the credit. If you claim the credit, I don't believe you have to itemize. I also don't believe there are phaseouts. The credit isn't huge, but it's free money. Last year I had about $40K in international in my taxable accou...
by grabiner
Sat Oct 25, 2014 4:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: tax implications of international in taxable account
Replies: 3
Views: 213

Re: Lower Expenses vs Consolidation

For my job, I have Thrift Savings Plan, but never been a big fan of the I Fund. What do you dislike about the I fund? If it is just the lack of emerging markets and small-caps, you can make up for that by rolling the old 401(k) into an IRA, and putting some of the IRA in Emerging Markets Index and ...
by grabiner
Sat Oct 25, 2014 4:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Lower Expenses vs Consolidation
Replies: 3
Views: 294

Re: Do I need a "tax-managed" portfolio?

Wiki article link: Tax-managed fund comparison Total Stock Market is tax-efficient enough that you don't need explicitly tax-managed funds; it saves more in expenses than any tax difference is likely to cost. If you have some reason to overweight small-caps or large-and-mid-caps in your taxable acco...
by grabiner
Sat Oct 25, 2014 4:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do I need a "tax-managed" portfolio?
Replies: 5
Views: 377

Re: Store or cut up un-needed credit cards?

As long as you have several open accounts and are nowhere near the limits, closing a credit card won't hurt your score now. In theory, it could reduce your score ten years from now when the old account drops off your report, but ten years from now, your current accounts will be old, so that isn't li...
by grabiner
Sat Oct 25, 2014 4:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Store or cut up un-needed credit cards?
Replies: 5
Views: 282

Re: Time For Me to Kick Wellington Through The Goalpost of L

About 5 years ago, I made the incredibly wise decision (for me) to move nearly all my assets into VTINX (Vanguard's Target Retirement Fund). It had (and still has) almost exactly the AA wanted and that I held in individual funds. In the past few years, it has evolved nicely by adding foreign bonds ...
by grabiner
Sat Oct 25, 2014 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Time For Me to Kick Wellington Through The Goalpost of Life?
Replies: 41
Views: 3965

Re: Max Out Retirement Funds or Payoff Debt

Thanks for the response, bhsince87. I was only tossing the cash-value idea out there as a possible fixed income investment since it grows tax-deferred and at a fixed dividend % with the ability to withdraw cash or use it as collateral in the future (and it doesn't go down in value). This is a poor ...
by grabiner
Sat Oct 25, 2014 3:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Max Out Retirement Funds or Payoff Debt
Replies: 12
Views: 435

Re: Help on Turbo Tax Long term cap gains

2) here are different senarios for LTCG First number is Sale Price, second is cost basis , third is Fed tax owed, fourth is Minnesota tax owed SP CB Fed tax MN tax $5000 - $3000 - $1919 - $1239 $10,000 - $6000 - $1919 - $1095 $20000 - $12000 - $1919 - $813 $30,000 - $18000 - $1919 - $531 $40,000 - ...
by grabiner
Sat Oct 25, 2014 2:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help on Turbo Tax Long term cap gains
Replies: 29
Views: 1375

Re: Max Out Retirement Funds or Payoff Debt

Thanks for the response, bhsince87. I was only tossing the cash-value idea out there as a possible fixed income investment since it grows tax-deferred and at a fixed dividend % with the ability to withdraw cash or use it as collateral in the future (and it doesn't go down in value). This is a poor ...
by grabiner
Sat Oct 25, 2014 2:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Max Out Retirement Funds or Payoff Debt
Replies: 12
Views: 435

Re: anticipating tax rate in retirement

The difficulty is projecting one’s tax bracket in retirement. And assessing which returns will be taxed as ordinary income. Including: 1. Stock dividends 2. Bond dividends 3. Capital gains a. Including distinguishing between short vs. long term 4. Social security (presuming high income and high mun...
by grabiner
Sat Oct 25, 2014 2:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: anticipating tax rate in retirement
Replies: 3
Views: 208

Re: Tax planning for long term capital gains

(Corrected, as I copied the wrong tax bracket; thanks to four posters and PM's for catching this error). Consider someone sitting on a nest egg of 3million. Supposing he/she is receiving 2% dividends, it would be 60K in dividends every year and there is no other income. That will put the person in 1...
by grabiner
Fri Oct 24, 2014 11:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax planning for long term capital gains
Replies: 12
Views: 667

Re: dividend fund in a taxable account

I'm in the 15% federal tax bracket & should remain in it for the rest of my life. I pay zero tax on qualified dividends & long term capital gains. I have a substantial amount of $ in the Vanguard Total International fund in my taxable account... it is the only fund I hold in my taxable acco...
by grabiner
Fri Oct 24, 2014 11:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: dividend fund in a taxable account
Replies: 2
Views: 423

Re: Tax Free Mutual Fund

I am trying to compare the higher expense ratio vs savings in not paying MN State and Federal Income Tax with the SIT Minnesota Tax Free Income Fund. SIT fund has expense ratio in the 0.8% range. Fed Tax marginal rate is probably 25% and MN State Tax marginal rate is in the 7% range. Are there Muni...
by grabiner
Fri Oct 24, 2014 11:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Free Mutual Fund
Replies: 3
Views: 585

Re: RMUCX

I invested in some RMUCX class C shares more than 6 years ago, and I still own them. It lost about 14% of its value since I bought it. I'm not sure if it will ever come back to its original value. I don't have to sell it, but I was wondering if this municipal investment is worth holding on, especia...
by grabiner
Fri Oct 24, 2014 10:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 4
Views: 409

Re: Help needed for tax efficient fund placement

Total International, and a US stock index (you could use Total Stock Market, or overweight small-caps in taxable with Tax-Managed Small-Cap to balance out the S&P in your 401(k)), are the best choices for the taxable account. REIT Index must be in your IRA. However, you want to hold 40% bonds, s...
by grabiner
Fri Oct 24, 2014 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help needed for tax efficient fund placement
Replies: 6
Views: 443

Re: Vanguard Emerging Markets Stock Yield

The comparison you're making is meaningless. I disagree. Your money has to go somewhere and valuations matter. But dividend yields aren't a good measure of valuation. Stock valuations are usually measured by price/earnings ratio (how much you pay to get $1 of corporate earnings), because this depen...
by grabiner
Fri Oct 24, 2014 10:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Emerging Markets Stock Yield
Replies: 10
Views: 1263

Re: Mortgage Options For Home

15 yr or 30 fixed rate. ARM's are terrible and being pushed by unethical lenders and bought by suckers. Don't be in a hurry to pay it off. It's cheap debt and I suspect you itemize your taxes. This rate is not high on a historical basis. I am on my 4th home and have always, with knowledge, purchase...
by grabiner
Fri Oct 24, 2014 10:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Options For Home
Replies: 16
Views: 946

Re: HSA, Please Help!

Treat all your investments as one portfolio. If TIPS fit your portfolio, then you want to hold TIPS in the account with the biggest tax benefit, which is the HSA, and hold more stock in your IRA and 401(k) to get the correct overall allocation. If you value simplicity over tax optimization and want ...
by grabiner
Fri Oct 24, 2014 10:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA, Please Help!
Replies: 4
Views: 585

Re: question on selling real estate costs

My problem now is this: The buyer and I came to agreement and signed a contract. Now appraisals are to be done. This is a state with high foreclosures. If the appraisals come in lower, the bank will not loan above the appraisal I am told. So for purposes of example, say the agreement is to sell the...
by grabiner
Fri Oct 24, 2014 10:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: question on selling real estate costs
Replies: 14
Views: 846

Re: More Aggressive AA Post Home Purchase

One way to look at the situation is that the amount of income you will need in retirement has been reduced, since you will own a house and thus won't need to pay rent. Thus, if your portfolio is the same size, you may now be saving less of it for your needs in retirement, and more for luxuries in re...
by grabiner
Fri Oct 24, 2014 10:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: More Aggressive AA Post Home Purchase
Replies: 16
Views: 790

Re: NJ - Buying house in flood zone (FEMA)?

I should add that the house is otherwise is an excellent location, and also that it's not in the middle of a large flood zone. It's just the brook. Find out how high the brook was during Hurricane Irene. Most small rivers in central NJ hit record flood levels, so this would give you some idea of th...
by grabiner
Fri Oct 24, 2014 10:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: NJ - Buying house in flood zone (FEMA)?
Replies: 34
Views: 1285

Re: Help with HSA in CA. Am I ready? How-to?

3) Invest like a taxable account for CA tax purposes Pro: Highest potential for growth over a long horizon Con: Taxed like a taxable and keep track of basis I'm wondering if tax software would help the bookkeeping aspect of going full steam using HSA as a federal tax-free/CA taxed investment vehicl...
by grabiner
Fri Oct 24, 2014 9:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 1429

Re: Need help to choose between HSA and PPO

Thanks. I know that. But suppose I can contribute enough pre-tax money to FSA if I go with PPO, tax is not an issue here because either option is using pre-tax money(of course I understand that FAS money sometimes is not enough and sometime maybe forfeited). You'll contribute a lot more to the HSA ...
by grabiner
Thu Oct 23, 2014 10:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help to choose between HSA and PPO
Replies: 9
Views: 619

Re: Is Wells Fargo misleading my friend?

I thought C shares had a back end load. I found that confusing since there is a front end load as well, but it is relatively small compared to some. C shares usually have a 1% redemption fee if sold within one year. Traditional back-end load shares (B shares) have a much higher redemption fee, typi...
by grabiner
Thu Oct 23, 2014 9:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Wells Fargo misleading my friend?
Replies: 20
Views: 1919

Re: Credit Score Question

I think there is value in maintaining a good credit score. This score not only affects credit, but such things as how much your car insurance and your house insurance cost. Even if you never plan to use debt, I'd buy something on credit (some furniture or something) and pay it off in 3 months or 6 ...
by grabiner
Thu Oct 23, 2014 9:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Credit Score Question
Replies: 6
Views: 402

Re: Need help to choose between HSA and PPO

My understanding is that the premium difference almost covers the difference in deductible. So HSA should be a better choice in any scenarios unless in an unlikely case where you have a lot of prescription expense but little medical expense and the $3000 deductible is not met. Does it make sense? d...
by grabiner
Thu Oct 23, 2014 9:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help to choose between HSA and PPO
Replies: 9
Views: 619

Re: HSA HDHP or Traditional PPO?

So $6,000 costs - $585 employer HSA contribution + $1,224 premiums = $6,639 total cost for health insurance. Subtract the tax savings on your own $6065 HSA contribution from this total cost... With the PPO plan, you will will pay co-pays instead. $500 for delivery is my guess, plus $30 x 11 office ...
by grabiner
Thu Oct 23, 2014 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA HDHP or Traditional PPO?
Replies: 2
Views: 278

Re: Risk in a high dividend stock portfolio

The price (NAV in the case of VEIPX) are not similar at all. The two funds got similar total returns but they got them in different ways. VEIPX got more of it from dividends, VIVAX more of it from capital appreciation. http://s15.postimg.org/fgdcopvq3/Captura_de_pantalla_2014_10_21_a_la_s_9_47_51_A...
by grabiner
Thu Oct 23, 2014 8:51 pm
 
Forum: Investing - Theory, News & General
Topic: Risk in a high dividend stock portfolio
Replies: 19
Views: 1974

Re: Is this worth it?

The advantage of bonds in taxable is to rebalance or sell on the taxable side without LTCG. But.... you are saying that bonds can't accumulate long term cap gains? Right? Although I don't think we are talking a lot of tax because dividends on Short Term Bonds will be small. In theory, bonds can acc...
by grabiner
Thu Oct 23, 2014 8:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this worth it? [capital gains issue]
Replies: 7
Views: 1434

Re: Is this worth it?

Although I expect to stay in the 15% tax bracket I would like a little "wiggle room" in the future if equity should not be sold. This doesn't make much sense to me. If you expect to stay in the 15% bracket, or nearly so, there's no point at all in tax gain harvesting. Realize gains only w...
by grabiner
Thu Oct 23, 2014 8:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this worth it? [capital gains issue]
Replies: 7
Views: 1434

Re: TSP Contribution

I'm planning on using my ROTH IRA for medical and my TSP for daily expenses. If you have the TSP, you work for the federal government, so you would probably be better off using a high-deductible health plan and saving in your HSA for medical expenses. The government makes high-deductible plans part...
by grabiner
Thu Oct 23, 2014 8:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: TSP Contribution
Replies: 7
Views: 753

Re: Is Wells Fargo misleading my friend?

I would stop short in saying it is a bad portfolio - it is just not the way people here invest. For those as baffled as me: 40% WASCX Ivy Asset Strategy C WASCX, Morningstar four star performance, analyst rating neutral, expenses 1.68% which Morningstar calls "low," world allocation class...
by grabiner
Thu Oct 23, 2014 8:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Wells Fargo misleading my friend?
Replies: 20
Views: 1919

Re: Help with HSA in CA. Am I ready? How-to?

For proper book-keeping when owning a TIPS fund in an HSA residing in CA, what documents or paperwork should I keep track of? Is there a suggested list of items? Save your brokerage statements as long as you continue to hold the fund. If you sell using specific identification of shares, save your s...
by grabiner
Thu Oct 23, 2014 8:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 1429

Re: is optimization(TLH+tax credit) worth cost(time,behavior

For international stocks, high yields mean high dividends, mean more taxes and thus more foreign tax credit, right ? So the advantage of holding this in taxable account is more now. More foreign tax credit is good, but more total tax is not. Typically, the foreign tax credit is about 7% of the yiel...
by grabiner
Thu Oct 23, 2014 7:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: is optimization(TLH+tax credit) worth cost(time,behavior)?
Replies: 14
Views: 858

Re: Will canceling my Discover card lower my FICO score?

One of the factors on your credit score is average age of open credit lines. Source? This seems to be a common rumor, but I haven't seen an actual reference. FICO says average age of all credit lines, not just open. FICO forum discussion on Closing Credit Cards (Therefore, the closed card will decr...
by grabiner
Wed Oct 22, 2014 11:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will canceling my Discover card lower my FICO score?
Replies: 9
Views: 930

Re: Active bond funds better than indexes? Pimco thinks so

The data seems to back this up - at least for intermediate term investment grade funds. A majority of active funds beach the benchmark over the 1,3 and 5 year intervals for this category. From the latest SPIVA report for 2014. http://i.imgur.com/Qi4GwWSl.png What is going on here is that the index ...
by grabiner
Wed Oct 22, 2014 11:31 pm
 
Forum: Investing - Theory, News & General
Topic: Active bond funds better than indexes? Pimco thinks so
Replies: 36
Views: 2197

Re: Which lots do you sell when redeeming shares?

One other time not to sell the highest-basis lot is when you would have to pay short-term gains. In 2006, I needed to sell some Total Stock Market. I could have sold shares which I had bought in 2005 for $4500, or shares which I had bought earlier in 2006 for $5000. If the shares had been worth $600...
by grabiner
Wed Oct 22, 2014 11:24 pm
 
Forum: Investing - Theory, News & General
Topic: Which lots do you sell when redeeming shares?
Replies: 14
Views: 890

Re: buying this year and selling next year

Some of the stocks I bought this year, I am not planning to sell them yet in 2014. May be in 2015 i will sell. So, when I am doing my 2014 taxes next spring, I will do nothing about these stocks yet correct? Because gain or loss will not be realized as of 2014 correct? You won't pay any tax on the ...
by grabiner
Wed Oct 22, 2014 11:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: buying this year and selling next year
Replies: 5
Views: 493

Re: is optimization(TLH+tax credit) worth cost(time,behavior

Tax loss harvesting is certainly worthwhile; a quick check every time the market drops can save you $1000 every year, or more if your losses offset gains. For example, I bought a home last year, and sold stocks to buy it at the market peak. Because of losses harvested in 2008-2009 and 2012, I paid n...
by grabiner
Wed Oct 22, 2014 11:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: is optimization(TLH+tax credit) worth cost(time,behavior)?
Replies: 14
Views: 858

Re: Help with HSA in CA. Am I ready? How-to?

The best investments for California HSAs if you want to minimize state taxes are nominal US Treasuries and CA Munis. (And even those aren't fully immune if you hold them in a fund that has short- or long-term capital gains distributions.) But holding munis in an HSA is not a good idea, as you waste...
by grabiner
Wed Oct 22, 2014 10:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with HSA in CA. Am I ready? How-to?
Replies: 22
Views: 1429

Re: question about "avoid buying the dividend"

For stocks that pay regular dividends quarterly, this probably does not matter. Many mutual funds only pay dividends once a year, and usually late in the year. If you buy in late December and the dividend is paid a few days later and credited as a reinvestment, you will have taxable income in this ...
by grabiner
Wed Oct 22, 2014 10:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: question about "avoid buying the dividend"
Replies: 11
Views: 994

Re: Loaning money to invest?

I have 0 debt and make well over 6-figures. Since a lot of people on this forum believe that taking a 30 year mortgage instead of 15 years is better (so you can invest the difference)... then why not also take a personal line of credit for $100k or $200k to invest too? Same concept, right? I can ta...
by grabiner
Wed Oct 22, 2014 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Loaning money to invest?
Replies: 13
Views: 1266

Re: Why is VIPSX (TIPS) active?

I sometimes recommend LTPZ on this forum because there is no similar fund at Vanguard, active or index. (The alternative to LTPZ is to buy and hold long-term TIPS yourself.) David, Thanks for the info. Can you summarize the advantages/disadvantages of LTPZ vs. buy and hold indidual long term TIPS f...
by grabiner
Tue Oct 21, 2014 11:55 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Re: Portfolio Help for 29YO - First Taxable Investment Cont.

I've been investing since January 2007, the first time I was eligible to invest in the 401k at my employer at the time. I opened a Roth IRA in April 2008. I started both accounts investing in the Vanguard Target Retirement 2045/2050 funds, both 90/10. I remember my accounts going down during the cr...
by grabiner
Tue Oct 21, 2014 11:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help for 29YO - First Taxable Investment Cont.
Replies: 15
Views: 1390

Re: Why is VIPSX (TIPS) active?

As was stated a few hundred years ago, "Much ado about nothing". :D Not quite. Because it's an 'active" fund, the admiral threshold it $50k. If it were an index fund it would be $10K, and there could be an ETF share class. I'm sure there are people to whom this would make a differenc...
by grabiner
Mon Oct 20, 2014 10:57 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Re: Why is VIPSX (TIPS) active?

When the fund started, there weren't many different TIPS, so an index wouldn't have been a good choice; its duration would change substantially every time a new TIPS was issued, and would decrease over time if no new TIPS were issued. For example, if the fund had a 10-year average maturity, and a ne...
by grabiner
Mon Oct 20, 2014 10:01 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Re: 2nd Opinions on Bond Alternatives?

I've typically heard some iffy things about non-traded REITS and Annuities. I am a little skeptical because I've heard these can carry high fees, and offer low performance. However the reasoning behind these (as explained to me) makes a little bit sense: with interest rates as they are (and the fac...
by grabiner
Sun Oct 19, 2014 11:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2nd Opinions on Bond Alternatives?
Replies: 35
Views: 2115

Re: Help Create a Portfolio Generating 2,500 a month on 600K

abyan wrote:But woukdnt they have to either sell off the IRA to buy the annuity, or sell off the brokerage account (which they don't want to do).


You can buy an annuity in an IRA; the distributions from the annuity substitute for the RMDs you would otherwise take out.
by grabiner
Sun Oct 19, 2014 8:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help Create a Portfolio Generating 2,500 a month on 600K
Replies: 22
Views: 3755
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