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Re: Roth questions from an MD

I am a California MD in a similar situation. Although we don't know what future tax rates will be, the one constant is change. I have a hard time paying 50% tax now for Roth 401k contributions when I'm not sure where tax rates will be in the future, nor where I will be. California's highest tax brac...
by newpup
Fri Aug 15, 2014 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth questions from an MD
Replies: 32
Views: 3071

Re: 2014 BOGLEHEADS CONFERENCE ANNOUNCEMENT

Will this conference ever convene on the west coast??? Those of us out here would appreciate it! :D
by newpup
Thu Apr 03, 2014 5:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2014 BOGLEHEADS CONFERENCE ANNOUNCEMENT
Replies: 84
Views: 13833

Pay off auto loan or invest in Munis

Hi all- I have an auto loan at Pen Fed at 1.49% originated in Dec. 2012 which I could now pay off. Should I do that, or invest in Vanguard California intermediate muni (VCADX) yielding 2.42%? I have been keeping a lot of dry powder waiting for a stock market correction, and shockingly my market timi...
by newpup
Tue Jul 16, 2013 12:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pay off auto loan or invest in Munis
Replies: 5
Views: 492

How should I unwind Morgan Stanley broker's investments?

Confession: I decided to try active management. Conclusion after one year: Stick with index funds! :oops: I've transferred my Roth IRA and my wife's Roth IRA, and my taxable brokerage accounts out of Morgan Stanley and back to WellsTrade, and need to untangle the web of investments they've put me in...
by newpup
Mon Mar 11, 2013 6:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: How should I unwind Morgan Stanley broker's investments?
Replies: 2
Views: 445

Re: PenFed auto loan at 1.49%

Yes, you can... The money just has to be traced to the investment. So supposing I get a check from PenFed for $70,000- should I ask them to make it out to me or my broker instead of to Tesla? I'm just not clear on the mechanics of getting this done if I did want to invest the money and pay cash for...
by newpup
Thu Dec 13, 2012 8:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: PenFed auto loan at 1.49%
Replies: 29
Views: 1780

Re: PenFed auto loan at 1.49%

Rainier wrote:Pay for the car in cash.

Then separately take the loan and invest it. You can take an "investment interest" deduction if you do this properly.


Sounds great, but how do I go about doing this using an auto loan? The loan is made with the car as collateral, right?
by newpup
Thu Dec 13, 2012 6:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: PenFed auto loan at 1.49%
Replies: 29
Views: 1780

Re: PenFed auto loan at 1.49%

moneywise3 wrote:Life is easier with one less loan. Unless that 20k loan is a big % of your total assets, it is not worth it.


The loan would be $70k, and I would set it up with automatic monthly payments. It is a small % of total assets, but the hassle would be minimal.
by newpup
Thu Dec 13, 2012 3:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: PenFed auto loan at 1.49%
Replies: 29
Views: 1780

Re: PenFed auto loan at 1.49%

Not sure where you live, but Vanguard New York Tax Exempt has a yield right now of 1.65%. I'd probably put the cash in the TSM, I don't think it's unreasonable to assume better than 1.49% CAGR over 5 years. I'm in California, and Vanguard's Intermediate-Term Tax Exempt Admiral Fund currently yields...
by newpup
Thu Dec 13, 2012 3:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: PenFed auto loan at 1.49%
Replies: 29
Views: 1780

Re: PenFed auto loan at 1.49%

Watty wrote:What are you going to invest the money in?


I have a 15 year fixed mortgage at 3.0% which would be a better risk-free investment, even at top tax levels.
by newpup
Thu Dec 13, 2012 2:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: PenFed auto loan at 1.49%
Replies: 29
Views: 1780

PenFed auto loan at 1.49%

Hello all- I am in the process of buying a Tesla Model S. I could pay for this in cash, but am considering taking a loan from PenFed at 1.49% for 60 mos. I am guessing that inflation will be at least at that level on average over the next 5 years, making this essentially free money (in real terms). ...
by newpup
Thu Dec 13, 2012 2:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: PenFed auto loan at 1.49%
Replies: 29
Views: 1780

Re: Whole life for estate tax payment

IMHO, the key issue here is not whether life insurance is a good solution to pay federal estate taxes. The key issue stems from the fact that the people who may have this problem are not interested in having their son and his life insurance agent take over their estate planning and sell insurance w...
by newpup
Thu May 31, 2012 5:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

You want them to sell the land now piece by piece, so it seems you don't care about keeping the land for future generations. Your biggest concern is that you get a huge tax bill when they die, and you will be forced to sell the land right then (at who knows what price) to pay the tax man. But the l...
by newpup
Wed May 30, 2012 7:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

Maybe said in a different way I TOTALLY AGREE. I can't believe the OP thinks it is okay to come up with the "best" financial plans by discussing your parents finances with a FA that is not even involved with your parents. Your parents are not interested in your ideas of "estate plann...
by newpup
Wed May 30, 2012 5:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

If you can get them to a top notch estate planning attorney. Right now, it sounds like they are not too interested in financial advice from you or the insurance agent/financial planner. After many years of discussion, they have set up an A/B trust with a third-rate estate attorney. They have proven...
by newpup
Tue May 29, 2012 6:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

Are you planning on saving the land for future generations for some reason, or are you going to sell it anyway when they die? How much are the premiums? They must be huge... What's the life expectency of a 76-year old couple? Looks like there is a 10% chance one is still alive in 22 years. 20% chan...
by newpup
Tue May 29, 2012 6:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

If life insurance is used, look for a last-to-die Universal Life policy with guaranteed death benefit and premium till death. Second, it only makes sense for premiums to come out of the parents estate vs. you paying for it. The policy I'm looking at has premiums til age 100, and guaranteed payout r...
by newpup
Tue May 29, 2012 3:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

Other non real-estate assets total less than $1 million.
by newpup
Tue May 29, 2012 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Whole life for estate tax payment

JDCPAEsq wrote: Have the estate taxes in the surviving parent's estate been estimated in the $5 million range?
John


Yes. $5 million is the current estimate, although the land value may appreciate; it is in a desirable area which has been resistant to the recent real estate drop.
by newpup
Tue May 29, 2012 2:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Whole life for estate tax payment

Hello all- A financial advisor has suggested I purchase a second-to-die whole life policy on my parents in order to pay anticipated estate taxes. They are currently both 76. The policy costs $137,000 annually for a $5 million policy. Although I would love it if they would place such a policy in an i...
by newpup
Tue May 29, 2012 2:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole life for estate tax payment
Replies: 44
Views: 1795

Re: Asset location: small cap vs. large, international

Thanks Landy-

Would VTSAX or VTIAX make more sense than the tax-managed funds? I understand that the internaional tax-managed fund is Euro-Pacific only. I would like to minimize current income.
by newpup
Mon Feb 27, 2012 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset location: small cap vs. large, international
Replies: 4
Views: 555

Asset location: small cap vs. large, international

Hello all- I understand from the wiki that for optimal asset location, an investor should prefer large v. small cap stocks in taxable accounts, all things being equal. My 401k gives me access to these institutional funds, which have low expense ratios: Vanguard Institutional Index (VINIX): E.R.=0.04...
by newpup
Mon Feb 27, 2012 10:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset location: small cap vs. large, international
Replies: 4
Views: 555

Re: What should I ask a fee-only financial planner?

If things go well, I would take this person on as my financial advisor. As a follow-up question: he charges an annual fee of $600, but $1200 for the first year since much of the planning happens then. Fee is independent of assets "under advisement." Is that reasonable?
by newpup
Tue Feb 14, 2012 6:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: What should I ask a fee-only financial planner?
Replies: 6
Views: 463

What should I ask a fee-only financial planner?

Hi all- Meeting with a fee-only financial planner tomorrow for the first time. Up to this point I've done all my own financial management and taxes (thanks, Turbotax), but the numbers are getting larger (thanks, Bogleheads), and I want to make sure I'm not making major errors. What questions should ...
by newpup
Tue Feb 14, 2012 6:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: What should I ask a fee-only financial planner?
Replies: 6
Views: 463

Re: Deferred gift annuities

When you compared with USAA, were you comparing your deferred annuity with an immediate annuity, so USAA came out worse? I compared the charitable gift annuity with a deferred USAA annuity, with the same beginning payout date/age, and the USAA agent suggested that the charitable gift annuity rate w...
by newpup
Fri Nov 18, 2011 3:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Deferred gift annuities
Replies: 7
Views: 527

Re: Deferred gift annuities

Thanks Christine. Frankly I'm not sure how to calculate the ROI on this investment. Expected inflation and life expectancy would be factors. My sense from these types of things is that a better return could be obtained investing in other ways, but is that always the case? I called USAA to get a comp...
by newpup
Thu Nov 17, 2011 7:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Deferred gift annuities
Replies: 7
Views: 527

Re: Deferred gift annuities

Thanks for the reply. The $869 is only part of the payout- that portion is tax-free, and the remaining $1377 is taxed as ordinary income. I'm in the 35% federal, 9.3% state tax bracket. Also, the immediate investment is closer to $18114 after the tax deduction and the $1k credit card rebate if I hav...
by newpup
Thu Nov 17, 2011 1:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Deferred gift annuities
Replies: 7
Views: 527

Deferred gift annuities

Hello all- I have an opportunity to give a deferred gift annuity to my alma mater, with the following terms: Donation: $20,000 at age 41 Payout: $2246 per year beginning at age 65, continuing until death, $869.28 of which is tax-free for the first 20 years Charitable deduction: $2000 They accept cre...
by newpup
Wed Nov 16, 2011 7:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Deferred gift annuities
Replies: 7
Views: 527

Re: Social Security Rebate Tax question...

Just found this on the IRS website: Medical Resident FICA Refund Claims: Taxability of Refund to Individual Recipient Is my refund taxable? Your refund will include your share of the FICA taxes plus interest. The refunded FICA taxes are not taxable; however, the interest portion of the refund is tax...
by newpup
Sun Oct 30, 2011 2:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Rebate Tax question...
Replies: 4
Views: 748

Social Security Rebate Tax question...

Hi all- I was a medical resident about a decade ago, and am benefitting from a lawsuit challenging whether residents are students and therefore exempt from Social Security/FICA taxes, or hospital employees and subject to them. To make a long story short, I'm finally receiving refund checks for previ...
by newpup
Sat Oct 29, 2011 5:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Rebate Tax question...
Replies: 4
Views: 748

Unallocated brokeragelink funds go into a Fidelity money market fund. You shouldn't have a problem moving all your 401k funds and future contributions to brokeragelink, and should be able to make the changes online.
by newpup
Mon Sep 12, 2011 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Anyone with Fidelity BrokerageLink Experience?
Replies: 30
Views: 17909

Does it make more sense to first use tax-deferred space for fixed-income holdings, or may I consider I-bonds as additional tax-deferred space? :?
by newpup
Wed Aug 31, 2011 6:50 pm
 
Forum: Investing - Theory, News & General
Topic: I bonds
Replies: 38
Views: 5451

Asset location for bonds

I understand that bonds should generally be placed in tax-favored accounts. The only bond fund available in my 401k is PIMCO total return institutional (ER=0.47). The equity investment options have very low ER's, on the order of 0.04 for Vanguard Large Cap to 0.08 for Vanguard Small Cap. The 401k is...
by newpup
Sun Aug 28, 2011 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset location for bonds
Replies: 0
Views: 314

I would strongly argue against the convertible. I've owned two and will never buy another one. To drive with the top down, you need a day that's not too cold, but not so sunny that you get baked to a crisp. You need a trip that is not too short to make it worth while to put the top up and down, but ...
by newpup
Sun Aug 28, 2011 1:33 pm
 
Forum: Personal Consumer Issues
Topic: Help me choose a car please.
Replies: 50
Views: 5469

Suppose I buy stock X at 100 on 1/1, sell it 3/1 at 90, and replace it with Y. On 4/2 I buy back X at 90, selling Y. On 4/20, X is at 50. I like X, and want to buy more of it, but also want to tax loss harvest. Is it okay to buy a new tax lot at 50, selling an older tax lot on the same day? Will thi...
by newpup
Thu Aug 04, 2011 12:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting- twice in the same year/same ETF?
Replies: 7
Views: 1042

Tax loss harvesting- twice in the same year/same ETF?

Hello all- I have a position in Vanguard Total International ETF (VXUS) which I want to tax-loss harvest (down over 5% today!). However, I've already done so this year with VXUS, hiding in VEU (Vanguard FTSE all-world ex-US) for 31 days, and getting back into VXUS on August 18th. Ideally, I would li...
by newpup
Thu Aug 04, 2011 12:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting- twice in the same year/same ETF?
Replies: 7
Views: 1042

Disability insurance

Hello- My workplace provides a disability benefit with two options: 1. Pay tax on the benefit payment, and receive benefits tax-free. 2. Pay NO tax on the benefit payments, and later pay taxes on benefits. What's the better option here? I currently pay in the 35% federal bracket, 9.3% state (CA).
by newpup
Fri Jul 22, 2011 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Disability insurance
Replies: 12
Views: 1150

I think this is the key quote: "Current investors would walk away okay, since any changes will likely be accompanied with a grandfather clause -- all existing municipal bond holders would still be exempt for paying taxes on their returns," said Alex Grant, portfolio manager of RS Investmen...
by newpup
Tue Jul 19, 2011 4:47 pm
 
Forum: Investing - Theory, News & General
Topic: Being debated: Muni bonds to lose tax exemption ??
Replies: 24
Views: 2155

I suppose another point to consider is whether or not the student loans are fixed. If not, it is probably worth getting rid of them now.


The loan rate is fixed. I realize a return of 2.875 is not great, but is "tax free" and guaranteed. The interest is not deductible for us.
by newpup
Sat Jul 16, 2011 12:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Student loans: to pay off or not to pay off
Replies: 9
Views: 840

^^ Yes, currently maxing out tax-advantaged space, including 401k, cash balance program, backdoor Roth x 2, I-bonds. I first paid off the equity line at 4.24% and last year refinanced a 30-yr fixed at 5.75% to 15-yr at 4.0%, paying that one down in the process, but haven't paid it off entirely becau...
by newpup
Fri Jul 15, 2011 7:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Student loans: to pay off or not to pay off
Replies: 9
Views: 840

Student loans: to pay off or not to pay off

Hello all- My wife has outstanding student loans of approximately $30,000 at a rate of 2.875%. We could easily pay them off. We have a first mortgage at a fixed 4% rate, tax bracket of 35% federal, 9.3% state. Should I pay off this loan? Seems to me an easy guaranteed 2.875% return, which in this en...
by newpup
Fri Jul 15, 2011 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Student loans: to pay off or not to pay off
Replies: 9
Views: 840

Tax loss harvesting noob

Yesterday I did some first-time tax-loss harvesting out of VXUS (Vanguard total international), and immediately into VEU (Vanguard FTSE Ex-US). For my AA I would prefer to be in VXUS, but if it goes up in the next 31 days, I could add VWO (Vanguard emerging markets) to balance and not have to sell V...
by newpup
Fri Jun 17, 2011 7:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting noob
Replies: 3
Views: 371

Excel does the job for me on autopilot with rebalancing bands and everything. With functions like =TODAY(), no need to even enter my age. :) I have Excel, but am a real rookie using it. Do you have a blank spreadsheet with formulas you could post or send me? Or would I need to build my own to under...
by newpup
Tue May 31, 2011 10:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocation/ rebalancing software
Replies: 16
Views: 3657

Thanks for replies.

Will M* or Easyallocator.com allow you to save your portfolio, or do they require manual entry each time?
by newpup
Tue May 31, 2011 7:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocation/ rebalancing software
Replies: 16
Views: 3657

Re: Should I refinance with Amerisave?

3.375% with 2600 credit. the estimated closing cost will be 2100. NB: You will never receive cash if your credit exceeds closing costs. You may be able to use residual credit to pay partial month's payment on your loan, but I would ask specifically about this if your credit will likely exceed closi...
by newpup
Tue May 31, 2011 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I refinance with Amerisave?
Replies: 13
Views: 2259

Refinanced late last year with Amerisave and got exactly the terms listed on the website. I was highly skeptical but very happy with the end result. LOTS of paperwork and submissions, but I gather this is the standard these days. I think this is a no-brainer as long as you are willing to submit stac...
by newpup
Tue May 31, 2011 6:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I refinance with Amerisave?
Replies: 13
Views: 2259

Asset allocation/ rebalancing software

I'm looking for a software package to help me keep my asset allocation on track. I've got his and hers IRA's, my 401k, an HSA and a taxable brokerage account, and will be adding to both taxable and non-taxable accounts on a monthly basis, and would love some technological help. I'd like a program to...
by newpup
Tue May 31, 2011 5:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocation/ rebalancing software
Replies: 16
Views: 3657

If I sign up for a new TD account today, will I be unable to buy bonds until I receive a card in the mail, or may I buy bonds at the time of registration?
by newpup
Thu May 26, 2011 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: ibond question
Replies: 6
Views: 906

The national tax-free sweep option had a current return of 0.01%.

Does anyone know what the default (non tax-free) return is? Can't be much lower! :evil:
by newpup
Tue May 24, 2011 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Wells Fargo Cash Sweep Letter
Replies: 4
Views: 852

Thanks for the responses.

I did have a 403b to IRA rollover from a former employer to which I contributed after-tax money for 4 years before converting all to a Roth in 2010.
by newpup
Tue May 10, 2011 1:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Non-deductible traditional IRA contributions: Yay or nay
Replies: 17
Views: 1821

thank you

I thought the immediate rollover was an option, and had first called my brokerage to try to make that happen, but the rep. assured me that the option to roll-over without income restriction was limited to 2010. I take it he is wrong.
by newpup
Mon May 09, 2011 5:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Non-deductible traditional IRA contributions: Yay or nay
Replies: 17
Views: 1821
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