Search found 15100 matches

by grabiner
Tue Aug 04, 2015 1:42 pm
Forum: Personal Consumer Issues
Topic: Cancelling credit after first year?
Replies: 6
Views: 495

Re: Cancelling credit after first year?

For background, read the following site: http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx This tells you how your FICO, or credit score is calculated. Cancelling your paid-off cards will have a negative impact on your FICO score, by: 1) Eliminating a positive payment history. 2) Reducing...
by grabiner
Tue Aug 04, 2015 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Should I make $77,500 in make-up 401k contributions?
Replies: 3
Views: 483

Re: Should I make $77,500 in make-up 401k contributions?

Definitely get the full company match. Whether you should put more into the make-up savings depends on what you are going to use that money for. If you plan to buy a new house, saving money outside the 401(k) for the down payment may be a better idea than maxing out the 401(k), regardless of what it...
by grabiner
Tue Aug 04, 2015 12:59 pm
Forum: Investing - Theory, News & General
Topic: If your state taxes HSAs, another reason to hold Treasuries/TIPS
Replies: 2
Views: 182

If your state taxes HSAs, another reason to hold Treasuries/TIPS

If your state taxes Health Savings Accounts (AL, CA, and NJ do), then it is desirable to manage the account to minimize state taxes. Treasury bonds (including TIPS) are exempt from state tax, but the tax bill should also be low if you hold a tax-efficient stock index fund with a low dividend yield. ...
by grabiner
Mon Aug 03, 2015 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: the math of paying off debt vs investing
Replies: 12
Views: 1388

Re: the math of paying off debt vs investing

Paying down loans versus investing The correct math is not a comparison of earning $X on an investment versus $Y by paying down the loan, because the $X is risky and the $Y is risk-free. Rather, it is earning an extra $X-Y in exchange for taking more risk. If the extra risk is zero (which sometimes...
by grabiner
Mon Aug 03, 2015 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance, EIC, and investing.
Replies: 8
Views: 525

Re: Inheritance, EIC, and investing.

Vanguard has tax managed funds that are designed to generate minimum taxes due. They range in aggressiveness. Tax managed Capital Appreciation in 100% stock Tax Managed Balanced is about half and half stock/bond I would check them out. Neither one of these will work, because the problem is not to m...
by grabiner
Mon Aug 03, 2015 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Pay cash vs short-term loan for mortgage
Replies: 2
Views: 305

Re: Pay cash vs short-term loan for mortgage

Pay the cash. You are getting a risk-free 7% return on paying this cash. You have to take a lot of risk to get a 7% return on an alternative use of the cash, and if you want this, you can get it more cheaply by selling bonds in your IRA with a 2% low-risk return to buy stocks with a 7% high-risk ret...
by grabiner
Mon Aug 03, 2015 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Financial help for home purchase
Replies: 2
Views: 376

Re: Financial help for home purchase

Check your cost basis records. If you have non-covered shares, you may have to check them yourself; if you have covered shares, your brokerage may have the records. For each lot, you can compute the capital gain; jf you have held the shares for more than one year the tax due would be 15% (in most fe...
by grabiner
Mon Aug 03, 2015 9:22 pm
Forum: Investing - Theory, News & General
Topic: 529 Plans -Vanguard choices & Tax efficiency
Replies: 3
Views: 358

Re: 529 Plans -Vanguard choices & Tax efficiency

Welcome to the forum! Total Bond Market Index is not dominated by bonds exempt from CA state tax. It holds a lot of Treasuries, but also GNMAs, which are subject to state taxes. Vanguard says that only 27% of the income last year was exempt from state taxes, and at a 2.14% yield, that is 0.56% incom...
by grabiner
Mon Aug 03, 2015 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance, EIC, and investing.
Replies: 8
Views: 525

Re: Inheritance, EIC, and investing.

Welcome to the forum! A few things I thought about which don't work: Municipal bonds. Interest on munis is tax-exempt, but it still counts for EIC eligibility. Giving money to the aunt. This would reduce her income, and she could get the money back as an inheritance, but there is a risk that it woul...
by grabiner
Mon Aug 03, 2015 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Spec ID and reinvestment [Specific shares ID, dividend reinvestment]
Replies: 5
Views: 352

Re: Spec ID and reinvestment

Vanguard will track cost basis, but you have a bit more to keep track of when you sell. If you buy every year and reinvest dividends every quarter for 20 years, you will have 100 tax lots to choose. The main reason not to reinvest dividends in a taxable account is that you may not necessarily want t...
by grabiner
Mon Aug 03, 2015 7:24 pm
Forum: Investing - Theory, News & General
Topic: State Taxes and Total Bond
Replies: 6
Views: 696

Re: State Taxes and Total Bond

Great feedback, thanks! One question - assuming a NJ resident owns (say) 'Total Bond' in taxable, must one manually segregate the $ that belong on the taxable vs. tax-exempt lines? I suspect many if not most NJ taxpayers aren't aware of the distinction and just pay NJ taxes on the gross amount? Yes...
by grabiner
Sun Aug 02, 2015 11:05 pm
Forum: Investing - Theory, News & General
Topic: State Taxes and Total Bond
Replies: 6
Views: 696

Re: State Taxes and Total Bond

SO, while I gather treasuries are not subject to state taxes, my question is 'does this treatment travel through the total bond fund... Yes. My understanding is that states don't have any choice in the matter. In any case, the smoking gun for NJ is here: http://www.state.nj.us/treasury/taxation/pdf...
by grabiner
Sun Aug 02, 2015 10:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Fund Dividends - More Significant Digits Than Shown?
Replies: 8
Views: 895

Re: Vanguard Fund Dividends - More Significant Digits Than Shown?

I should also pass along an interesting observation about year-to-date performance for Vanguard Bond funds available in each Vanguard fund profile. During the month the stated year-to-date performance appears to include accrued but unpaid dividends . This is probably an SEC requirement. And this ma...
by grabiner
Sun Aug 02, 2015 10:45 pm
Forum: Investing - Theory, News & General
Topic: Mark Hulbert: Stock market 3.5%/yr over next decade
Replies: 28
Views: 2543

Re: Mark Hulbert: Stock market 3.5%/yr over next decade

Note that he expect s 3.5% real returns. While that isn't great, it is 3% more than the risk-free real return on 10-year TIPS, and 3% isn't an unreasonable equity premium. The real problem with forecasts like this is that they don't have a margin of error. If the correct expectation is a real return...
by grabiner
Sun Aug 02, 2015 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Any method to quickly establish a credit history?
Replies: 9
Views: 686

Re: Any method to quickly establish a credit history?

Also, once the secured card has been changed into an unsecured credit card, it will probably have a low limit. He should make ABSOLUTELY SURE that he is not late with a single payment (anytime, but this is a crucial stage). And then he can incrementally ask the card company to increase his credit l...
by grabiner
Sun Aug 02, 2015 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss Harvest Help
Replies: 27
Views: 1706

Re: Tax loss Harvest Help

Before FSEVX goes ex-div in December, can I just point out that it is, for an equity index fund, tax-inefficent. Relative to a tax-efficient large-cap or all-cap index fund, one will lose more to taxation of distributions with FSEVX in taxable than gained in TLH through diversity in asset classes. ...
by grabiner
Sun Aug 02, 2015 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt to work on next?
Replies: 31
Views: 2540

Re: Which debt to work on next?

School loans. You don't want to be paying them for the next 18 years. Why not? In 18 years much of that debt will be inflated away, and instead of dumping cash into the loans...cash that is then gone forever and can't be used for anything else...he can buy safe investments that will yield more than...
by grabiner
Sun Aug 02, 2015 2:56 pm
Forum: Investing - Theory, News & General
Topic: Houston, we have a problem... [Small cap historical performance]
Replies: 56
Views: 3790

Re: Houston, we have a problem... [Small cap historical performance]

Unfortunately Vanguard's small cap fund used to be tied to the R2k, an awful index which underperformed by something like 2% a year because it was easily exploited And Vanguard's index regularly outperformed the Russell 2000 as well. The main reason for the poor performance of the Russell 2000 is t...
by grabiner
Sun Aug 02, 2015 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Portfolio mgr says only 38% gains instead of 68%?!
Replies: 5
Views: 1127

Re: Portfolio mgr says only 38% gains instead of 68%?!

bought $50k worth of prhsx (healthcare fund) in 2013 in a non-tax advantaged acct. (ie: after tax $) I have not added/sold since then. It's now worth 84k. (84-50)/50 = 68% I'm using Morningstar's portfolio manager. (portfolio.morningstar.com) it says I only have 38% unrealized gains since purchase....
by grabiner
Sun Aug 02, 2015 11:24 am
Forum: Local Chapters and Bogleheads Community
Topic: bogleheadism == Vanguard?
Replies: 65
Views: 4447

Re: bogleheadism == Vanguard?

I encourage you to scrub references to Vanguard in anything that you control, like the wiki. Otherwise you run the danger of being perceived as a marketing tool to promote Vanguard"Thanks, 2x4 The Boglehead's forum is a non-profit group of unpaid volunteers. Perhaps you should consider joining...
by grabiner
Sun Aug 02, 2015 11:06 am
Forum: Investing - Help with Personal Investments
Topic: About to dive in - would love a look-over of my IPS
Replies: 11
Views: 1338

Re: About to dive in - would love a look-over of my IPS

39.6% — I work for a company in California, but do not have residence there (though I still pay CA's state taxes :oops: ). I'd be curious to know if I could qualify for any tax-exempt CA bonds because of that (or do they strictly require you to live in the state?)… If you aren't a CA resident, you ...
by grabiner
Sun Aug 02, 2015 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Which debt to work on next?
Replies: 31
Views: 2540

Re: Which debt to work on next?

Would you go borrow $53,000 and $57,000 at 1.5% in order to do after tax investing? I certainly would! You could if you want get some pretty safe investments that beat that, but the return of a balanced investment of stocks and bonds would likely blow that away over that kind of time period. Not on...
by grabiner
Fri Jul 31, 2015 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: CA State Refund Intercepted by DMV
Replies: 12
Views: 1263

Re: CA State Refund Intercepted by DMV

So California doesn't require you to actively un-register vehicles? Seems silly. I had a similar issue. I moved from CA to AZ, and registered my car in AZ. A year later, I got a notice that my CA registration had not been renewed and a bill for the delinquent registration; apparently, AZ never noti...
by grabiner
Fri Jul 31, 2015 9:07 pm
Forum: Investing - Theory, News & General
Topic: "Pants on Fire: 10 Big Lies in the Financial Services Industry" by Bob Seawright/Above the Market Blog
Replies: 5
Views: 1536

Re: "Pants on Fire: 10 Big Lies in the Financial Services Industry" by Bob Seawright/Above the Market Blog

"I'm different" does have some meaning, but not as a measure of ability. If you are 20 years from retirement, you should have more stock than the average investor; if you are retired and living off your portfolio, you should have less stock. If you live in California and are in a high tax ...
by grabiner
Fri Jul 31, 2015 8:42 pm
Forum: Investing - Theory, News & General
Topic: Chance of bond being called?
Replies: 4
Views: 400

Re: Chance of bond being called?

As an example, say I am looking a bond with a maturity date of Dec. 2024. It becomes callable Jan 2017. The coupon rate is 5%. The bond rating is AA. If my guess is that the federal funds rate will be 1.5% on the callable date, will this bond be called? The federal funds rate isn't the relevant rat...
by grabiner
Fri Jul 31, 2015 8:36 pm
Forum: Investing - Theory, News & General
Topic: Questions regarding Tax-Loss Harvesting
Replies: 5
Views: 305

Re: Questions regarding Tax-Loss Harvesting

So hypothetically, you invest $100,000 in the stock market in January. In February the value of your stocks falls to $90,000. You sell your stocks, realizing a loss of $10,000. After waiting 31 days (as to avoid a wash sale), you reinvest the $90,000 plus the additional tax money you've saved by re...
by grabiner
Fri Jul 31, 2015 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss Harvest Help
Replies: 27
Views: 1706

Re: Tax loss Harvest Help

Maybe your right, not sure if I am understanding if wash sale really comes into play. Right now my 403b gets deducted every 2 weeks at paycheck time si I buy twice a month. For taxable brokerage I buy once a month on auto invest. I gues I could adjust auto investing the month after tax loss harvest...
by grabiner
Fri Jul 31, 2015 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: About to dive in - would love a look-over of my IPS
Replies: 11
Views: 1338

Re: About to dive in - would love a look-over of my IPS

Welcome to the forum! Your plan looks good in general. You don't need to plan for specific dollar amounts, as those will change as you make new investments every year, and as the markets rise and fall; planning for a percentage makes more sense. Whatever your portfolio happens to be, you can put 20%...
by grabiner
Fri Jul 31, 2015 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Advisor Self Interest?
Replies: 15
Views: 921

Re: Advisor Self Interest?

What, if any, self-interested incentives are there in these specific Fidelity rep recommended investments for recently inherited $900,000 in cash? (65 year-old retiree) 50% Individual Corporate Bonds in 7 year ladder This is the one I would worry most about. Corporate ond pricing is not transparent...
by grabiner
Fri Jul 31, 2015 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt to work on next?
Replies: 31
Views: 2540

Re: Which debt to work on next?

Since you hit the Pease limitation every year, you get full benefit of every additional dollar deducted, so you would have a 1.66% return on mortgage payments. With a shorter term on the mortgage, paying it off is the better deal. But I wouldn't do either one. Rather, I would suggest investing the ...
by grabiner
Thu Jul 30, 2015 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax 401K or Roth IRA for Bonds
Replies: 6
Views: 451

Re: Pre-Tax 401K or Roth IRA for Bonds

bdpb wrote:
grabiner wrote:Therefore, given that your stock options in the 401(k) are better than your bond options, it's best to hold bonds in the 401(k).


I think you meant "it's best to hold stocks in the 401k".


Yes; corrected.
by grabiner
Thu Jul 30, 2015 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: am i doing everything to minimize my AGI?
Replies: 19
Views: 2655

Re: am i doing everything to minimize my AGI?

i have know idea what this saver's credit is (the article you mention..overall very interesting..thanks) if you replicate this, bravo! but don't you pay capital gains You pay 0% capital gains taxes if your AGI + capital gains is less than $75,000...so you can can get a deduction for capital losses ...
by grabiner
Thu Jul 30, 2015 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Auto insurance rates are based on your credit score
Replies: 5
Views: 891

Re: Auto insurance rates are based on your credit score

As the clip indicates, your FICO score is just a starting point. Insurers cherry pick certain elements out of the FICO score and weight them differently according to their own proprietary formula. Therefore, your score from insurer to insurer may differ, and all will differ in some degree from your...
by grabiner
Thu Jul 30, 2015 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt to work on next?
Replies: 31
Views: 2540

Re: Which debt to work on next?

I am looking for some opinions on which debt I should attack next. Before I even ask, I understand that this is low interest rate debt and that I am loosing money by not investing and paying it off. I feel I invest plenty as it is and am looking to semi retire in 6-8 years therefor being debt free ...
by grabiner
Thu Jul 30, 2015 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Auto collision with uninsured driver caused $5000 in damage. What to do?
Replies: 23
Views: 2125

Re: Auto collision with uninsured driver caused $5000 in damage. What to do?

Since you filed a claim where your insurance had to pay out, your rates will probably go up for a few years. Check the rating information in your policy. Since you were rear-ended, most insurers will not consider this an at-fault accident, even if your own insurer has to pay because it cannot colle...
by grabiner
Thu Jul 30, 2015 9:12 pm
Forum: Investing - Theory, News & General
Topic: Don't have to be a market timer to think this is worrisomeh
Replies: 1
Views: 723

Re: Don't have to be a market timer to think this is worrisomeh

The key is behind the headline. Six stocks account for more than half the value added to the Nasdaq index this year, and more than all the value added to the S&P 500 index. But the S&P 500 is up only 1% for the year; six stocks making up 10% of the index could account for more than all the g...
by grabiner
Thu Jul 30, 2015 8:59 pm
Forum: Investing - Theory, News & General
Topic: Another ex-dividend question: transferring shares
Replies: 12
Views: 676

Re: Another ex-dividend question: transferring shares

There might be an advantage for waiting to receive the dividend because of tax arbitrage. If you are in a 28% bracket and receive a $1000 dividend, you pay $150 in tax. But if you then donate that $1000 dividend (possibly reinvested) to a charity, you save $280 in tax, so you have a net savings of $...
by grabiner
Thu Jul 30, 2015 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Please Help Me Identify 5 Reasons To Get Mother-In-Law Out of A Variable Annuity
Replies: 11
Views: 1046

Re: Please Help Me Identify 5 Reasons To Get Mother-In-Law Out of A Variable Annuity

Surrender fee is 6% and she has 4 more years until it is 0%. http://s22.postimg.org/wugrs51m9/surrender.jpg The extra fees for holding funds in the variable annuity are 2.7%; this isn't quite a total loss because of the Guarantee of Principal death benefit, but since the annuity has increased in va...
by grabiner
Thu Jul 30, 2015 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficient bonds & other allocation questions
Replies: 5
Views: 574

Re: Tax efficient bonds & other allocation questions

Do you have a TIPS fund available in the HSAs? CA taxes HSAs as ordinary investments, so holding a TIPS fund will save you the state tax. If there is no good TIPS fund or you don't want to hold one, a stock index fund is tax-efficient.
by grabiner
Thu Jul 30, 2015 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Stock, which to ROTH?
Replies: 6
Views: 703

Re: Total Bond or Total Stock, which to ROTH?

After adjusting for the after-tax value, there is no direct advantage to having stocks or bonds in the Roth. However, there are minor advantages for having stocks in the Roth and bonds in the 401(k); there is the risk that tax rates will change, or that a booming stock market will require you to tak...
by grabiner
Thu Jul 30, 2015 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Asset Allocation
Replies: 8
Views: 556

Re: HSA Asset Allocation

It really depends on how you are using your HSA. If you max out your retirement accounts, it is better to keep the HSA invested and pay medical expenses out of pocket; in that case, you can invest the whole HSA as if it were an extension of your IRA. If you are using the HSA for current expenses, on...
by grabiner
Thu Jul 30, 2015 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax 401K or Roth IRA for Bonds
Replies: 6
Views: 451

Re: Pre-Tax 401K or Roth IRA for Bonds

If you adjust for the fact that the IRS owns 25% of your 401(k), there is no longer any tax advantage to holding bonds there. If you put $4000 in bonds in the 401(k) and $3000 in stocks in the Roth IRA, or vice versa, you will have the same amount after tax. If you don't make this adjustment, then $...
by grabiner
Thu Jul 30, 2015 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Aggressive TSP Portfolio
Replies: 3
Views: 507

Re: Aggressive TSP Portfolio

You might as well just use the G fund for your bond allocation; the F fund adds risk for little benefit. With $103K in the TSP, you must have been investing for a while. Did you start before or after 2008? If you started before 2008, you know your risk tolerance in a bear market, and your portfolio ...
by grabiner
Thu Jul 30, 2015 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice please on high tax bracket, high taxable portfolio structure!
Replies: 13
Views: 1098

Re: Need advice please on high tax bracket, high taxable portfolio structure!

There is no low-cost CO muni fund, so unless you buy individual CA bonds, you will need to pay CO state tax on your munis; Intermediate-Term Tax-Exempt makes sense. In your very high tax bracket, Vanguard's US tax-managed funds make some sense (but don't sell for a capital gain to switch); see Tax-m...
by grabiner
Tue Jul 28, 2015 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: New Car - Cash or Finance?
Replies: 32
Views: 2351

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: 9
Views: 1431

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: 25
Views: 1161

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: 252

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: 4
Views: 321

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: 50
Views: 3875

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...

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