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Re: Do you consider mortgage payments as savings?

The interest part of the payment is an expense. The principal part of the payment is an investment, which you can tap via sale, re-mortgage or home equity loan. It is less liquid than some investments, more liquid than others. Savings accounts are often considered a very liquid investment.
by rkhusky
Sat Feb 28, 2015 6:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 20
Views: 688

Re: Turning 40...Investment...Help Please

I would see about moving as much as you can to Vanguard and only use Target Retirement, Life Strategy, Total Stock Market, Total Int'l, Total Bond Market, and/or Intermediate Tax Exempt to greatly simplify things. Some things that could prevent a wholesale move to Vanguard are that you can't move yo...
by rkhusky
Fri Feb 27, 2015 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Turning 40...Investment...Help Please
Replies: 12
Views: 1414

Re: Property assessment increase after purchase

I believe one of the reasons for creating the property tax cap rule was that a lot of senior citizens were getting taxed out of their houses. They were living in a house for 50 years, some developer comes along and starts a housing development nearby, the value of the land skyrockets and then so doe...
by rkhusky
Fri Feb 27, 2015 5:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Property assessment increase after purchase
Replies: 30
Views: 1604

Re: How is the FL property tax cap (Save Our Homes) applied?

- assessments for all properties go up by 3%, then if the taxes are insufficient to meet the expenses, - the non-homesteaded ones go up to 10%, and if the taxes are still insufficient to meet the expenses, - the millage is increased Really? They just increase the millage if they need more money? Yo...
by rkhusky
Fri Feb 27, 2015 5:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: How is the FL property tax cap (Save Our Homes) applied?
Replies: 2
Views: 276

Re: International stock index in Taxible account for tax cre

Two reasons the benefit is so small right now is that Total Int'l has a larger dividend than Total Stock Market and has a smaller percentage of qualified dividends. Those offset partially or entirely the foreign tax credit, depending on your situation. That may change in the future, or it may not.
by rkhusky
Fri Feb 27, 2015 5:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: International stock index in Taxible account for tax credit
Replies: 6
Views: 623

Re: Capital gains and dividends real income ?

If the value of the fund increases from Jan 1 to Dec 31, do you consider that income?
by rkhusky
Thu Feb 26, 2015 8:21 pm
 
Forum: Investing - Theory, News & General
Topic: Capital gains and dividends real income ?
Replies: 12
Views: 661

Re: Capital gains and dividends real income ?

Perhaps the realized capital gains and dividends are counted in the NAV of the fund? But instead of paying them to you every day, they get stored up and paid out once a month/quarter/year.
by rkhusky
Thu Feb 26, 2015 8:16 pm
 
Forum: Investing - Theory, News & General
Topic: Capital gains and dividends real income ?
Replies: 12
Views: 661

Re: Property assessment increase after purchase

If your assessment drops next year, your taxes will drop too.

Those with assessed values far above their taxable values find that their taxes increase even though their houses decline in value, at least until the taxable value equals the assessed value.
by rkhusky
Thu Feb 26, 2015 8:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Property assessment increase after purchase
Replies: 30
Views: 1604

Re: Turning 40...Investment...Help Please

That looks too complicated for me. I would just move everything to Vanguard. You don't need a brokerage account if you just want to buy mutual funds. If this is a tax-advantaged account, move it all to a Target Retirement fund in an IRA (perhaps 2040 to match what you have in the TSP). If this is a ...
by rkhusky
Thu Feb 26, 2015 7:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Turning 40...Investment...Help Please
Replies: 12
Views: 1414

Re: Picking a Vanguard fund

The ER and asset allocation of a fund are better indicators of future returns than are past returns. For index funds that track the same index, choose the one with the lower ER. Could you explain this further? Why is ER and asset allocation a better indicator than past returns of a fund that's been...
by rkhusky
Wed Feb 25, 2015 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Picking a Vanguard fund
Replies: 7
Views: 789

Re: Preventing IRS Fraud

As this post noted, getting a pin doesn't necessarily prevent the IRS fraud: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=159315&newpost=2391540#p2390857 but perhaps it helps establish your identity faster after the fact. Actually, that post refers to the mistaken idea that being in...
by rkhusky
Wed Feb 25, 2015 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: [Protection against fraudulent IRS tax returns]
Replies: 39
Views: 1630

Re: 10 Interesting facts about the S&P500

I don't know much about the S&P500 other than it's cap weighted meaning that it's overweight the most expensive stocks and underweight the cheapest ones. :) I don't think cap weighted means what you think it means. If you're going to say that it's "overweight" or "underweight&quo...
by rkhusky
Wed Feb 25, 2015 8:14 am
 
Forum: Investing - Theory, News & General
Topic: 10 Interesting facts about the S&P500
Replies: 28
Views: 3501

Re: Preventing IRS Fraud

As this post noted, getting a pin doesn't necessarily prevent the IRS fraud:
viewtopic.php?f=2&t=159315&newpost=2391540#p2390857
but perhaps it helps establish your identity faster after the fact.
by rkhusky
Wed Feb 25, 2015 8:01 am
 
Forum: Personal Finance (Not Investing)
Topic: [Protection against fraudulent IRS tax returns]
Replies: 39
Views: 1630

Re: Is this wash sale?

in other words, if you were to sell for a loss in taxable, and then immediately buy the same fund in your IRA, that would be a wash sale.
by rkhusky
Tue Feb 24, 2015 8:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this wash sale?
Replies: 4
Views: 284

Re: Picking a Vanguard fund

The ER and asset allocation of a fund are better indicators of future returns than are past returns.

For index funds that track the same index, choose the one with the lower ER.
by rkhusky
Tue Feb 24, 2015 8:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Picking a Vanguard fund
Replies: 7
Views: 789

Re: Recapturing gains due to TLH at the 0% level

JoinToday wrote:No.
For tax gain harvesting, I think you can sell and buy back immediately. No need to wait 31 days.


Vanguard makes you wait 60 days, unless one of the transactions is via mail or a one-shot automated transaction.
http://www.bogleheads.org/wiki/Frequent_trading_policy
by rkhusky
Tue Feb 24, 2015 3:11 pm
 
Forum: Investing - Theory, News & General
Topic: Recapturing gains due to TLH at the 0% level
Replies: 16
Views: 855

Re: 401k Max-out Strategy

My 401K allows a fixed dollar amount contribution and won't allow you to over-contribute. I just have to make sure there is enough in the last paycheck to get the match. I just choose an even amount such that the total is 18K+delta, where delta is a couple hundred dollars or so.
by rkhusky
Tue Feb 24, 2015 2:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k Max-out Strategy
Replies: 16
Views: 1802

Re: Value investing doesn't even beat the S&P 500

VTSMX is opposite. 15-yr total return = 4.85%, actual investor return 7.00%. http://performance.morningstar.com/fund/performance-return.action?p=investor_returns_page&t=VTSMX To expand on the above, the following Vanguard funds and time periods had investor returns higher than total return: Exp...
by rkhusky
Tue Feb 24, 2015 10:10 am
 
Forum: Investing - Theory, News & General
Topic: Value investing doesn't even beat the S&P 500
Replies: 45
Views: 4265

Re: Arkansas: Expensive 529 Plan (math help on B/E point pls

A higher growth rate will make the higher expenses equal the tax deduction after fewer years, not more. But the tax deduction grows also at a growth rate, right? To be fair I should grow it too, no? Year 1 tax benefit is $3,000 X 0.07% = $210. Assuming that $210 is reinvested, by end of year 2 it i...
by rkhusky
Tue Feb 24, 2015 8:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Arkansas: Expensive 529 Plan (math help on B/E point pls)
Replies: 7
Views: 526

Re: 529 Breakeven math; quick question

If you invest the one-time tax savings on the contributions, then you can count them in the investment return year after year. If you spend the tax savings, you cannot.
by rkhusky
Tue Feb 24, 2015 8:06 am
 
Forum: Personal Finance (Not Investing)
Topic: 529 Breakeven math; quick question
Replies: 4
Views: 672

Re: Value investing doesn't even beat the S&P 500

I am suspicious of any results that cover only one time frame.
by rkhusky
Tue Feb 24, 2015 8:03 am
 
Forum: Investing - Theory, News & General
Topic: Value investing doesn't even beat the S&P 500
Replies: 45
Views: 4265

Re: Will Admiral shares drop to Investor share?

If I bought an Admiral share with minimum but the market dropped (I did not sell), will the fund be converted to Investor share or still keep it as Admiral? Thanks. Vanguard reserves the right to, but whether they do so and how fast is up to them. This provides some advice: If the balance in an Adm...
by rkhusky
Mon Feb 23, 2015 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Will Admiral shares drop to Investor share?
Replies: 6
Views: 1077

Re: Is this formula for asset allocation a good one?

This is what Vanguard does: http://i.imgur.com/mBKesEg.png So they use slightly different allocations for S vs. B based on time until retirement. They keep it at 90% for a while and then slowly ramp it down. Assuming you are retiring at 65, Vanguard's equation looks like S = 154 - 8/5 A, 40<A<70.
by rkhusky
Mon Feb 23, 2015 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Is this formula for asset allocation a good one?
Replies: 30
Views: 1058

Re: Is this formula for asset allocation a good one?

That would be a fairly standard asset allocation, although S=120-age is on the aggressive side. S=100-age is on the conservative side (age in bonds). Note that Vanguard does not have a linear ramp down in stock percentage, but no reason that one cannot. That is what I use for simplicity.
by rkhusky
Mon Feb 23, 2015 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Is this formula for asset allocation a good one?
Replies: 30
Views: 1058

Re: 401K allocation and contribution question

DME 20 sounds like an excellent choice, as would DME 18-21, depending on when you want to retire. I would use the same fund in your Roth IRA's for you and your spouse.
by rkhusky
Sun Feb 22, 2015 5:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K allocation and contribution question
Replies: 6
Views: 344

Re: 401K/Roth IRA

Are you in the 15% or 25% bracket?

If in the 25% bracket, I would go with putting more in the 401K.

If in the 15% bracket, you might might to put some in the Roth, especially if you expect to move up to the 28% bracket within the next 10 years or so.
by rkhusky
Sun Feb 22, 2015 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K/Roth IRA
Replies: 2
Views: 276

Re: a study of rebalancing

I would hate to see a 50% loss in my unrebalanced portfolio a few years before I was going to retire, especially if I was counting on that balance to retire comfortably. If I had more than I needed, I guess it wouldn't matter much.
by rkhusky
Sun Feb 22, 2015 5:01 pm
 
Forum: Investing - Theory, News & General
Topic: a study of rebalancing
Replies: 6
Views: 577

Re: All-World ex-US vs Total International Stock

So the difference between the two now is the index tracked and the inclusion of small in TISM (chart in linked post above). Didn't immediately see "small" when I looked quickly at VGTSX. Where is small listed for VGTSX? I'd like to reset what I'm supposed to know. If you compare the portf...
by rkhusky
Sun Feb 22, 2015 7:13 am
 
Forum: Investing - Help with Personal Investments
Topic: All-World ex-US vs Total International Stock
Replies: 19
Views: 2060

Re: Better with higher cost or Worse with lower cost

Unfortunately, she doesn't have an IRA and probably isn't interested in it, although I try to tell her she needs to invest more. She doesn't have to think about the 401K since it's deducted from her paycheck. But thanks for the advice. She could set up an automatic deduction from her checking accou...
by rkhusky
Sun Feb 22, 2015 6:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Better with higher cost or Worse with lower cost
Replies: 4
Views: 514

Re: Better with higher cost or Worse with lower cost

Unfortunately, she doesn't have an IRA and probably isn't interested in it, although I try to tell her she needs to invest more. She doesn't have to think about the 401K since it's deducted from her paycheck. But thanks for the advice.
by rkhusky
Sat Feb 21, 2015 2:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Better with higher cost or Worse with lower cost
Replies: 4
Views: 514

Better with higher cost or Worse with lower cost

Of the choices that my sister has for her 401K, here are the ones under consideration: AF Capital World G&I (1.10%) Oppenheimer Dev Mkts (1.30%) Oppenheimer Intl Gr (1.15%) Templeton Foreign (1.15%) SSgA SC Ind Sec Lend (0.40%) SSgA MC Ind Sec Lend (0.40%) SSgA S&P 500 Ind SL (0.10%) SSgA DJ...
by rkhusky
Sat Feb 21, 2015 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Better with higher cost or Worse with lower cost
Replies: 4
Views: 514

Re: Withdraw TSP to Convert Traditional to Roth?

Further, you can't just withdraw Traditional funds. Based on your balances, any withdrawal will be 70% Roth and 30% Traditional.
by rkhusky
Sat Feb 21, 2015 11:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Withdraw TSP to Convert Traditional to Roth?
Replies: 13
Views: 1071

Re: Cost Basis Questions

https://personal.vanguard.com/us/help/FAQCostBasisContent.jsp#Brokeragechgmethod If you haven't sold any shares yet, it is possible specific ID could be used for all shares. Confirm w/ VG. I found this comment from the Vanguard page interesting: I've been using specific identification for mutual fu...
by rkhusky
Sat Feb 21, 2015 6:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Questions
Replies: 11
Views: 992

Re: Balanced in Taxable ok for 15% tax rate?

Hello - I've referenced the wiki here and read that balanced funds do not belong in a taxable account. Dividends and capital gains rates are at 0% for someone in the 15% tax rate. If that's where I am/plan to be for a long while, would there be any reason not to put a balanced fund in a taxable acc...
by rkhusky
Sat Feb 21, 2015 6:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Balanced in Taxable ok for 15% tax rate?
Replies: 10
Views: 1296

Re: Shall I roll over my TIAA-CREF retirment account to Vang

Yes, you can move everything to Vanguard. The TSP has the well regarded G Fund that you might want to take advantage of. You are only allowed one partial withdrawal from the TSP. And once you completely exit the TSP, you won't be able to get back in unless you get another government job. The TSP's I...
by rkhusky
Sat Feb 21, 2015 6:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Shall I roll over my TIAA-CREF retirment account to Vanguard
Replies: 25
Views: 1639

Re: Pick-Pockets

texasdiver wrote:
Watty wrote:
larryinnewyork wrote:Wow, a lot of overseas stories.

Maybe the USA is still the land of opportunity.



More likely the land of mugging instead of pick pocketing.


No, our thieves just know where the real money is....like in Hedge Funds and defense contracts.


[OT comments removed by admin LadyGeek]
by rkhusky
Sat Feb 21, 2015 6:21 am
 
Forum: Personal Consumer Issues
Topic: Pick-Pockets
Replies: 63
Views: 5077

Re: Traditional IRA Investment advice

If you plan to pay taxes on all withdrawals from the IRA, I don't see a need to maintain 8606's, or even fill out an 8606.
by rkhusky
Fri Feb 20, 2015 3:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA Investment advice
Replies: 4
Views: 362

Re: NY 529 - Withdrawing/Contributing Same Year - Tax Deduct

You should be able to find that info in the spot in your state tax form where you can deduct the 529 contribution. My state (not NY) lets you deduct contributions, less qualified withdrawals, on an account by account basis. So, in my state, you cannot take a deduction for a $5K contribution in the s...
by rkhusky
Fri Feb 20, 2015 10:16 am
 
Forum: Investing - Help with Personal Investments
Topic: NY 529 - Withdrawing/Contributing Same Year - Tax Deduction?
Replies: 4
Views: 345

Re: All-World ex-US vs Total International Stock

no way to stay within Vanguard to TLH VEMAX :-( That is a bit strong. Better to say "no way to stay within Vanguard to TLH VEMAX the way that I want to." You can TLH VEMAX by simply not buying VEMAX for 30 days before/after the sale. You could put the money in cash, bond funds, Total Int'...
by rkhusky
Fri Feb 20, 2015 7:48 am
 
Forum: Investing - Help with Personal Investments
Topic: All-World ex-US vs Total International Stock
Replies: 19
Views: 2060

Re: Cost Basis Questions

1. Yes, they are covered. 2. The Vanguard website lets you switch any time you want. If you've sold some shares using average cost basis, there may be some added computation. 3. You can rely on Vanguard to keep track of the info. And/or you can keep track of purchases yourself in a spreadsheet - dat...
by rkhusky
Thu Feb 19, 2015 4:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Questions
Replies: 11
Views: 992

Re: Mimicing my Vanguard Roth IRA to set 401k allocations

The S&P 500 has some mid-caps in it, about 12% using Morningstar's definition of size, so your 40% allocation is really about 35% large and 5% mid. And Vanguard might have different definitions for large/mid/small. The above bond fund is not following the same index as Vanguards Total Bond Market.
by rkhusky
Thu Feb 19, 2015 4:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mimicing my Vanguard Roth IRA to set 401k allocations
Replies: 7
Views: 278

Re: Which 401k option should I switch to? Should I stay put?

10% US BOND INDEX FUND (Annual Gross Expense Ratio 0.03%) #92.82% TNA: Corporate Notes/Bonds #5.50% TNA: Fixed Income Other #0.18% TNA: Govt. Agency Notes/Bonds This is a corporate bond fund, so it will likely be more volatile than something like Vanguard's Total Bond Market, but will have also hav...
by rkhusky
Thu Feb 19, 2015 2:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which 401k option should I switch to? Should I stay put?
Replies: 17
Views: 845

Re: Risk of Rebalancing

There is always the risk that a market will drop and not come back for a long time. Japan is often seen as an example. Emerging markets have been down from their highs for 7+ years. You just have to estimate what the probability of something like that happening. There are those who have decided not ...
by rkhusky
Thu Feb 19, 2015 1:30 pm
 
Forum: Investing - Theory, News & General
Topic: Risk of Rebalancing
Replies: 63
Views: 3693

Re: Roth vs traditional IRA post retirement

They should contribute to Roth IRA's if they have sufficient earned income. RMD's will boost them into the 15% bracket after 70.
by rkhusky
Thu Feb 19, 2015 11:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth vs traditional IRA post retirement
Replies: 4
Views: 417

Re: Do Not Use Lenovo Computers to Shop or Access Finance Si

After reading how the NSA has inserted code into the firmware of a number of hard drives, and probably can put stuff in the BIOS, should one trust any computer coming out of China or Russia?
by rkhusky
Thu Feb 19, 2015 11:15 am
 
Forum: Personal Consumer Issues
Topic: [Heads up: Lenovo PC security compromised, thanks to adware]
Replies: 51
Views: 4668

Re: Starter 401K allocation

I would just use Explorer for small/mid if you don't want to set up an IRA - drop the Midcap fund. Keep in mind that Explorer is growth oriented and doesn't include much in the way of value stocks. You are currently overweighting small/mid US stocks compared to Total Stock Market. To match the latte...
by rkhusky
Thu Feb 19, 2015 8:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Starter 401K allocation
Replies: 4
Views: 348

Re: 80% stock/20% bonds? Or 90% stock/10% bonds? (Age 28)

Does it cost anything to switch from one type of account to another? (Target vs. homerolled, etc)? What about for 401k's? For example earlier I switched allocations from 100% Lifepath to something like: Percent Fund Name Investment Style 10% US EXTENDED EQUITY MARKET INDEX FUND BLEND 20% US BOND IN...
by rkhusky
Thu Feb 19, 2015 8:07 am
 
Forum: Investing - Help with Personal Investments
Topic: 80% stock/20% bonds? Or 90% stock/10% bonds? (Age 28)
Replies: 90
Views: 3511

Re: 80% stock/20% bonds? Or 90% stock/10% bonds? (Age 28)

These two Vanguard pages have some interesting data on asset allocation: http://www.vanguard.com/us/insights/saving-investing/model-portfolio-allocations https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-risk The second one is interactive- you can see how various combin...
by rkhusky
Wed Feb 18, 2015 3:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: 80% stock/20% bonds? Or 90% stock/10% bonds? (Age 28)
Replies: 90
Views: 3511

Re: Which 401k option should I switch to? Should I stay put?

The cost will not be significantly cheaper than LifePath, but the holdings are more transparent (LifePath is composed of 12 different fund components). Say you want to get to a 30/70 stock/bond ratio in retirement, which is what Vanguard's TR funds go to 7 years after the target date in the name. Th...
by rkhusky
Wed Feb 18, 2015 12:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which 401k option should I switch to? Should I stay put?
Replies: 17
Views: 845

Re: Which 401k option should I switch to? Should I stay put?

I don't know what allocation to use across those funds, though. Try this: S&P 500 Index Fund - 50% US Extended Equity Market Index Fund- 15% Non US Equity Index Fund - 25% US Bond Index Fund - 10% or S&P 500 Index Fund - 45% US Extended Equity Market Index Fund- 10% Non US Equity Index Fund...
by rkhusky
Wed Feb 18, 2015 10:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Which 401k option should I switch to? Should I stay put?
Replies: 17
Views: 845
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