Search found 2527 matches

by rkhusky
Fri Sep 04, 2015 11:04 am
Forum: Investing - Help with Personal Investments
Topic: 401k vs After Tax Investments
Replies: 16
Views: 812

Re: 401k vs After Tax Investments

I find the second table at this page: http://www.bogleheads.org/wiki/Non-deductible_traditional_IRA, to be enlightening on comparing the differences between taxable, Traditional IRA, Roth IRA and non-deductible Traditional IRA. In your case, 401K is the same as Traditional IRA. The tax rates are lik...
by rkhusky
Fri Sep 04, 2015 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Is there a max limit to Roth 401(K) and Roth IRA (Together/Combined)?
Replies: 11
Views: 805

Re: Is there a max limit to Roth 401(K) and Roth IRA (Together/Combined)?

So how do I determine what is my MAGI? And what all things are considered to determine MAGI? If it matters, I file taxes as "Married filing jointly" and my Salary this year (houshold income) will be about 115K (+Bonus(10k'ish), not sure how this impact things) and I will be about 3K in Ro...
by rkhusky
Thu Sep 03, 2015 12:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Retirement - Institutional class
Replies: 4
Views: 614

Re: Vanguard Target Retirement - Institutional class

Owners of target retirement funds are probably more interested in simplicity than in tax loss harvesting. Most people don't tax loss harvest. Most people don't want to be bothered with keeping close tabs on their investments. If you are one of the few that likes to play an active role in investing a...
by rkhusky
Thu Sep 03, 2015 9:20 am
Forum: Investing - Theory, News & General
Topic: Vanguard Target Retirement - Institutional class
Replies: 4
Views: 614

Re: Vanguard Target Retirement - Institutional class

You can't Tax Loss Harvest in a 401K. And, actually, if you own the separate funds in a taxable account, you don't have to worry about wash sales as much, if you have a Target Retirement fund in your 401K.
by rkhusky
Thu Sep 03, 2015 6:21 am
Forum: Investing - Help with Personal Investments
Topic: TSP Rebalancing
Replies: 6
Views: 557

Re: TSP Rebalancing

The price per share is meaningless. For example, Vanguard's Investor and Admiral share classes can have widely different share prices (NAV), but you'd want to own the Admiral shares since they cost less. It doesn't matter what their share price is. What matters is the percent you own in each categor...
by rkhusky
Wed Sep 02, 2015 6:52 am
Forum: Investing - Theory, News & General
Topic: Investing without past performance data
Replies: 27
Views: 1344

Re: Investing without past performance data

If one invests based on forward P/E, then one is likely using some historical data to judge the accuracy of the estimates of future earnings. If one invests in P2P lending, one is likely using some historical data to estimate the default rate. If one invests in a local business or a friend or relati...
by rkhusky
Wed Sep 02, 2015 6:35 am
Forum: Investing - Theory, News & General
Topic: Selling all equities, discuss why I'm wrong. :)
Replies: 117
Views: 7692

Re: Selling all equities, discuss why I'm wrong. :)

No one can say whether the move will turn out to be right or wrong, because no one knows what the future holds. However, the process for making the decision appears to be lacking. As you yourself essentially say, people who bail when the market drops and then get back in after the market hits a peak...
by rkhusky
Tue Sep 01, 2015 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Saving for a home down payment using Roth IRA
Replies: 5
Views: 576

Re: Saving for a home down payment using Roth IRA

Regarding using NY Muni bonds in my taxable account for save for a down payment, would something like Vanguard New York Long-Term Tax-Exempt Fund Investor Shares (VNYTX) be acceptable? It's the only tax-exempt fund for NY residents available? Vanguard Intermediate-Term Tax-Exempt Fund Investor Shar...
by rkhusky
Tue Sep 01, 2015 7:16 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 100
Views: 13357

Re: Improving the TSP [for current participants]

Oh well, at least we had the benefit of TSP low costs during our working years. If we have to pay more in retirement in order to have the flexibility we need to manage our money, c'est la blankity-blank vie. Barring some better strategy, I'll be moving all other-than-G-fund allocation, both TIRA an...
by rkhusky
Mon Aug 31, 2015 9:57 am
Forum: Investing - Theory, News & General
Topic: Investing without past performance data
Replies: 27
Views: 1344

Re: Investing without past performance data

Without past performance data you wouldn't know the risk of investing in stocks. Or whether stocks are expected to return more than bonds over the long term. You wouldn't know anything about risk vs. return.
by rkhusky
Mon Aug 31, 2015 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Saving for a home down payment using Roth IRA
Replies: 5
Views: 576

Re: Saving for a home down payment using Roth IRA

We are now wanting to save for a down payment for a home in the NYC area, so we'll need probably $300-400k for a down payment plus closing costs. Would it be reasonable to make backdoor roth IRA contributions in order to save for a down payment? And would be it ok to use NY muni fund in a taxable a...
by rkhusky
Sat Aug 29, 2015 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Best use of a Roth
Replies: 4
Views: 697

Re: Best use of a Roth

Our advisor advocated placing International equities in our Roth accounts. His reasoning is that we want to protect the investment with the most potential, long term gains, by using the account that will never be taxed. Our Roth accounts are our smallest and the International with be our smallest a...
by rkhusky
Fri Aug 28, 2015 6:24 am
Forum: Investing - Help with Personal Investments
Topic: Too good to be true? vgenx or vgpmx
Replies: 38
Views: 7169

Re: VGPMX Low

. Actually, Vanguard's Price History Search for Precious Metals and Mining fund (VGPMX) lists its low as $5.05 on 08/31/1998 (and its high as $40.02 on 05/19/2008). Just bumpin this up as I noticed VGPMX is currently at $6.90. I believe the all time low is $6.21. Those calling "nadir" are...
by rkhusky
Thu Aug 27, 2015 7:27 am
Forum: Investing - Theory, News & General
Topic: Bounced back too quick
Replies: 33
Views: 5705

Re: Bounced back too quick

It hasn't bounced back yet. When the DOW tops 18000, then it will have bounced back.
by rkhusky
Thu Aug 27, 2015 7:19 am
Forum: Investing - Theory, News & General
Topic: Admiral Shares
Replies: 6
Views: 778

Re: Admiral Shares

livesoft wrote: Maybe they will get rid of the Investor share class next?

Except for a few entry level funds and those that don't have Admiral shares, that might make sense.
by rkhusky
Thu Aug 27, 2015 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest - Wash Sale - Your 401k
Replies: 23
Views: 1364

Re: Tax Loss Harvest - Wash Sale - Your 401k

The issue addressed in this ruling is about IRA's and so naturally all the subsequent text is about IRA's. The ruling concludes with this statement: This ruling does not address any issues other than those specifically addressed herein. In particular, this ruling does not address (and no inference s...
by rkhusky
Thu Aug 27, 2015 6:40 am
Forum: Investing - Help with Personal Investments
Topic: Cost basis for TLH
Replies: 5
Views: 495

Re: Cost basis for TLH

I'm not sure why you care what Vanguard's web site currently says, since you know it is wrong and Vanguard has the true data in their internal files. I would sell based on my own records.
by rkhusky
Wed Aug 26, 2015 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest - Wash Sale - Your 401k
Replies: 23
Views: 1364

Re: Tax Loss Harvest - Wash Sale - Your 401k

Here is the IRS ruling that started all this: http://www.irs.gov/pub/irs-drop/rr-08-05.pdf which has The loss on the Sale of stock is disallowed under § 1091. A’s basis in the individual retirement account or Roth IRA is not increased by virtue of § 1091(d). This ruling does not address any issues ...
by rkhusky
Wed Aug 26, 2015 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Another Wash Rule ?
Replies: 7
Views: 612

Re: Another Wash Rule ?

Just because the IRS does not list other tax deferred accounts on that revenue ruling does not mean the wash sale rules do not extend to such accounts. I've be very careful about incurring potential wash sales if you have a brokerage window in your 401(k) and trade the same securities held in other...
by rkhusky
Wed Aug 26, 2015 2:29 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 136
Views: 9176

Re: TLH for absolute dummies

The Wizard wrote:And yes, exchange from one fund to the other on VG website...


Just a quibble, but you don't "exchange" funds, you sell one fund and buy another fund. Selling in a taxable account can have tax consequences.
by rkhusky
Wed Aug 26, 2015 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Identical fund in two accounts: possible to avoid wash sale rule?
Replies: 14
Views: 1846

Re: Identical fund in two accounts: possible to avoid wash sale rule?

randomizer wrote:My thought was that, if I could simultaneously exchange all at once (dubious), then I might be able to avoid the wash.

Might be a quibble, but there is no "exchange". You buy and sell.
by rkhusky
Wed Aug 26, 2015 7:32 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 6924

Re: VHT down 27% - Glitch or missed opportunity

I haven't been following the news closely but it bothers me a lot that the press isn't yet making a big deal of these flash crashes. I think this is pretty serious and speaks to instability or worse in the trading infrastructure. This is something that isn't supposed to happen. There are quite a fe...
by rkhusky
Wed Aug 26, 2015 7:13 am
Forum: Investing - Theory, News & General
Topic: [Original Research] [Theory] The Optimal Portolio
Replies: 40
Views: 3227

Re: [Original Research] [Theory] The Optimal Portolio

What you will find is that as you decrease the stock position, risk decreases until some point in the range of 40-60% stock, I don't remember where, and then you reach a local minimum for risk, so if you continue increasing the bond allocation past that point, risk starts increasing again. I though...
by rkhusky
Wed Aug 26, 2015 7:10 am
Forum: Investing - Help with Personal Investments
Topic: another tax loss harvest question
Replies: 9
Views: 445

Re: another tax loss harvest question

Here is a trick question: One buys 1000 shares of VTI last week and holds no other shares of VTI nor any substantially identical shares. One sells 500 shares at a loss today. Is it a wash sale? Example 2: http://www.fairmark.com/capgain/wash/wsreplac.htm Since I usually forget the specific rules, I...
by rkhusky
Tue Aug 25, 2015 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains to avoid a wash sale
Replies: 12
Views: 749

Re: Reinvest dividends and capital gains to avoid a wash sale

Vanguard Total Stock, Total International and FTSE All-World ex-US all distribute dividends quarterly (mutual fund and ETF). And they have distributed dividends each quarter in 2014 and 2015, but no cap gains.
by rkhusky
Mon Aug 24, 2015 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains to avoid a wash sale
Replies: 12
Views: 749

Re: Reinvest dividends and capital gains to avoid a wash sale

Any idea about why Vanguard asks about reinvesting capital gains in a Roth account? Perhaps for the same reasons they ask about dividends - provides flexibility to users. To avoid wash sales you may not want to reinvest capital gains. when do capital gains get reinvested for a Roth account? I usual...
by rkhusky
Mon Aug 24, 2015 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains to avoid a wash sale
Replies: 12
Views: 749

Re: Reinvest dividends and capital gains to avoid a wash sale

ThankYouJack wrote:Any idea about why Vanguard asks about reinvesting capital gains in a Roth account?

Perhaps for the same reasons they ask about dividends - provides flexibility to users. To avoid wash sales you may not want to reinvest capital gains.
by rkhusky
Mon Aug 24, 2015 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: TLH question
Replies: 5
Views: 386

Re: TLH question

Indexfan89 wrote:
rkhusky wrote:You would not have a wash sale if you sell all TR 2055 (http://fairmark.com/capgain/wash/wsreplac.htm)

I am planning to sell all of TR 2055. So I take it the wash sale rule doesn't apply if I sell all of the shares.



And don't buy more TR 2055 for 30 days.
by rkhusky
Mon Aug 24, 2015 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains to avoid a wash sale
Replies: 12
Views: 749

Re: Reinvest dividends and capital gains to avoid a wash sale

Do you have substantially identical funds in your taxable and Roth IRA accounts? Yes, the exact same of what I just sold are in my Roth IRA You can send your dividends to a money market fund (or to TSM or to any other fund), if you wish to avoid a wash sale, provided you aren't also selling that fu...
by rkhusky
Mon Aug 24, 2015 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: TLH question
Replies: 5
Views: 386

Re: TLH question

Are all your lots showing a loss? If not, would you have an overall loss if selling all of TR 2055? If not, how much tax would you owe if you sold all of TR 2055? TR 2055 is not the best fund to hold in taxable, due to the bonds. However, the bond allocation in TR 2055 is low, so it's not too bad. I...
by rkhusky
Mon Aug 24, 2015 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains to avoid a wash sale
Replies: 12
Views: 749

Re: Reinvest dividends and capital gains to avoid a wash sale

Do you have substantially identical funds in your taxable and Roth IRA accounts?
by rkhusky
Mon Aug 24, 2015 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard doesn't allow dividends to Prime MM?
Replies: 28
Views: 1755

Re: Vanguard doesn't allow dividends to Prime MM?

ccdoc wrote:I thought the general recommendation was to TLH in taxable accounts and not tax advantaged accounts??


You can't TLH in a tax advantaged account.

But, transactions in a tax advantaged account can cause wash sales when TLH'ing in a taxable account.
by rkhusky
Mon Aug 24, 2015 7:29 am
Forum: Investing - Theory, News & General
Topic: "FEAR" Is Here,...
Replies: 53
Views: 6937

Re: "FEAR" Is Here,...

Some investors have good reason to fear. Those that are nearing retirement with 100% stocks. Better to sleep well at night. http://www.marketwatch.com/story/dow-5000-yes-it-could-happen-2015-08-21 If you are nearing retirement, could you handle the DOW dropping to 5000, if it didn't return to curren...
by rkhusky
Mon Aug 24, 2015 7:09 am
Forum: Investing - Theory, News & General
Topic: [Original Research] [Theory] The Optimal Portolio
Replies: 40
Views: 3227

Re: [Original Research] [Theory] The Optimal Portolio

What you will find is that as you decrease the stock position, risk decreases until some point in the range of 40-60% stock, I don't remember where, and then you reach a local minimum for risk, so if you continue increasing the bond allocation past that point, risk starts increasing again. I though...
by rkhusky
Mon Aug 24, 2015 6:41 am
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA non-deductible contributions question.
Replies: 8
Views: 410

Re: Traditional IRA non-deductible contributions question.

If you do not want to use the so-called "Back-door Roth" two-step Roth contribution method, due to having a large deductible traditional IRA account, realized that for most people a taxable account is better than a non-deductible traditional IRA (http://www.bogleheads.org/wiki/Non-deductib...
by rkhusky
Mon Aug 24, 2015 6:38 am
Forum: Investing - Help with Personal Investments
Topic: What to do now with market crash?
Replies: 56
Views: 7589

Re: What to do now with market crash?

Put it all in Vanguard Target Retirement 2050 (VFIFX).
by rkhusky
Sun Aug 23, 2015 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: TSP G Fund
Replies: 7
Views: 769

Re: TSP G Fund

Hello today, Do any federal employees use just the G fund for their TSP allocation? Thanks in advance, Norcalkenny I am sure there are a lot, since G Fund is the default if you don't make a selection. I've also heard of people moving their stock allocation to an IRA when they retire, but leaving th...
by rkhusky
Sun Aug 23, 2015 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: When is a good time to change Roth IRA investments?
Replies: 6
Views: 593

Re: When is a good time to change Roth IRA investments?

If you really want to change, move everything. It doesn't pay to have two Target Retirement funds in a Roth, where it doesn't cost anything to move.
by rkhusky
Sun Aug 23, 2015 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Is it possible to hold cash in Roth IRA?
Replies: 12
Views: 821

Re: Is it possible to hold cash in Roth IRA?

sawhorse wrote:As others have said, you can put it in the money market. Vanguard unfortunately applies a 3000 minimum even to the money market.

Funny, I often have less then $3000 in Prime Money Market and haven't received any warning from Vanguard. Perhaps I opened it with more.
by rkhusky
Fri Aug 21, 2015 11:10 am
Forum: Investing - Theory, News & General
Topic: Pascal's Wager and prudent investment decisions
Replies: 29
Views: 3349

Re: Pascal's Wager and prudent investment decisions

rca1824 wrote: I consider Roth > Trad > Taxable.


It's not that simple. For example, if your marginal rate is 30% due to 25% bracket plus 5% phaseout of child tax credit, and you expect to retire early in the 15% bracket, Traditional is likely much better than Roth.
by rkhusky
Fri Aug 21, 2015 9:52 am
Forum: Investing - Theory, News & General
Topic: Pascal's Wager and prudent investment decisions
Replies: 29
Views: 3349

Re: Pascal's Wager and prudent investment decisions

rca1824 wrote: So capital gains is always worth deferring, its a free lunch -- deferring income is not.

I don't think that is true. An income producing investment in a tax deferred account will have a larger after tax value than if the investment were in a taxable account where the income is taxed every year.
by rkhusky
Fri Aug 21, 2015 6:46 am
Forum: Investing - Theory, News & General
Topic: Pascal's Wager and prudent investment decisions
Replies: 29
Views: 3349

Re: Pascal's Wager and prudent investment decisions

Funny, I get the opposite conclusion to favor Roth. 3) The government raises taxes in your retirement, even for those in the "zero" or "low" tax bracket, and all non-Roth funds become subject to huge tax losses. Better to pay a known tax today than an unknown tax tomorrow. Or, t...
by rkhusky
Thu Aug 20, 2015 8:14 am
Forum: Investing - Theory, News & General
Topic: Piling into emerging markets
Replies: 67
Views: 7830

Re: Piling into emerging markets

It is not just the fall, but lack of growth in EM for past 5 years. It went on to value scale during the time as it went from 17 p/E to 12 right now. However, the correlation was expected to be inline around 0.7 against total stock market based on "historical data". Very good demonstratio...
by rkhusky
Wed Aug 19, 2015 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Is your Pension considered earned income
Replies: 8
Views: 860

Re: Is your Pension considered earned income

... I will work part time for fun and my wife wants to keep working anyway. I live in Florida so no state taxes. Then you can contribute up to your yearly part-time wages/salary to a Roth, up to the yearly limit. jimb And the wife's income can also be used for contributing to either spouse's Roth.
by rkhusky
Wed Aug 19, 2015 9:51 am
Forum: Investing - Help with Personal Investments
Topic: What do you think of this 'demo' portfolio?
Replies: 55
Views: 2658

Re: What do you think of this 'demo' portfolio?

VTI has REIT's and Healthcare companies, pretty much all of the big ones.
by rkhusky
Wed Aug 19, 2015 6:59 am
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard fund?
Replies: 37
Views: 3198

Re: Which Vanguard fund?

The only theory about stock style that has some credible status in terms of robust data analysis is the Fama-French factor model which predicts that positive loading on small and value factors has higher return than the total stock market due to some form of additional risk factor. I don't think th...
by rkhusky
Wed Aug 19, 2015 6:50 am
Forum: Personal Consumer Issues
Topic: Can a bill dispute ruin our credit?
Replies: 30
Views: 2681

Re: Can a bill dispute ruin our credit?

I would file a complaint with the BBB. It is really easy to do online. Even if the company is technically right, a better business practice would be to notify the customer that they have been auto renewed. If you still can't work things out (such as paying for company's cost, or 50%), the BBB will a...
by rkhusky
Wed Aug 19, 2015 6:36 am
Forum: Personal Finance (Not Investing)
Topic: SSA: your estimated benefits (how to calculate)
Replies: 30
Views: 3199

Re: SSA: your estimated benefits (how to calculate)

Rob54keep wrote:use this worksheet from SSA.

http://www.ssa.gov/pubs/EN-05-10070.pdf


When I use the methodology in the worksheet, I get pretty close to the SS estimates, even though I'm not 62.
by rkhusky
Tue Aug 18, 2015 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: What do you think of this 'demo' portfolio?
Replies: 55
Views: 2658

Re: What do you think of this 'demo' portfolio?

I will also mention this, it seems all investment advice is given based on these assumptions: that the person works, has a yearly salary, and needs to take some of that yearly salary to live on once he/she stops working: retirement. Which is why advisors ask your 'goals' etc. I'm not in that situat...

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