Search found 1328 matches

Return to advanced search

Re: Let's compare 2013 effective tax rates

I think including federal income, state income, SS, medicare, local income, and school district income makes the most sense if you want to see what percentage of your gross income goes to income based taxes. Distinguishing between SS income based taxes, Medicare income based taxes, and federal inco...
by rkhusky
Wed Apr 16, 2014 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Let's compare 2013 effective tax rates
Replies: 42
Views: 1575

Re: Let's compare 2013 effective tax rates

I thought "effective tax rate" was income tax, in the sense of federal, state, and local income tax, and nothing else, not even other income-based taxes like Social Security and Medicare, or Friendly Neighborhood Enforcement Protection Money, or Whatever. The outcome would be cleaner if i...
by rkhusky
Wed Apr 16, 2014 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Let's compare 2013 effective tax rates
Replies: 42
Views: 1575

Re: SS Strategy Metric

Also, does/did anyone factor in that by delaying SS one could convert more tax-deferred savings to a Roth at lower rates?
by rkhusky
Wed Apr 16, 2014 1:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 20
Views: 899

Re: SS Strategy Metric

Some initial calculations show that one would have to live a very long time to recoup the cost of waiting, if the rate of return is above a certain level. But perhaps if the rate of return is high enough, one does not need SS as much.
by rkhusky
Wed Apr 16, 2014 1:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 20
Views: 899

SS Strategy Metric

What metric do/did you use to determine which Social Security strategy to choose? Total amount received over a particular period? Total return by factoring in a particular rate of return? Factor in inflation? I now have a spreadsheet that looks at 11 taking strategies for my wife and me. I have incl...
by rkhusky
Wed Apr 16, 2014 1:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 20
Views: 899

Re: Options used to fund ROTH after retirement?

http://www.irs.gov/publications/p590/ch01.html#en_US_2013_publink1000230355 Here is the IRS definition for "What is compensation" It's found in T-IRA info, but Roth IRA info links to it. Partial quote: The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other c...
by rkhusky
Wed Apr 16, 2014 8:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Options used to fund ROTH after retirement?
Replies: 11
Views: 520

Re: Child's Roth

Here is an article on the subject: http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/roth-iras-for-minors/ “Intrafamily transfers of this type can be properly viewed as excludable by a higher authority than the language of [the Internal Revenue Code] — a supposition, so obv...
by rkhusky
Tue Apr 15, 2014 4:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Child's Roth
Replies: 27
Views: 1337

Re: Stocks: How Bad It Can Get

It would be interesting to see a histogram of peak to trough declines since the depression.
by rkhusky
Tue Apr 15, 2014 10:35 am
 
Forum: Investing - Theory, News & General
Topic: Stocks: How Bad It Can Get
Replies: 72
Views: 5163

Re: Tax deductions from charities

Do the free admissions you receive for being a member count as income?

Edit: The document above indicates "no".
by rkhusky
Fri Apr 11, 2014 3:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax deductions from charities
Replies: 31
Views: 1599

Re: How to short?

Didn't you just author a post entitled "Worth $1.6m but clueless on investments" and now you want to try shorting stocks?

Edit: Perhaps shorting is not investing?
by rkhusky
Fri Apr 11, 2014 12:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to short?
Replies: 14
Views: 1009

Re: Tax audit poll

jebmke wrote: What you don't want to avoid is having to scramble around when you get their letter just to assemble the docs.


I think I would rather avoid that. :)
by rkhusky
Fri Apr 11, 2014 8:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax audit poll
Replies: 19
Views: 935

Re: How to encrypt files for backup?

Encrypted disk images (Disk Utility) on a Mac with a different password than your login password. Not sure if you can access the files on Windows though.
by rkhusky
Thu Apr 10, 2014 7:39 am
 
Forum: Personal Consumer Issues
Topic: How to encrypt files for backup?
Replies: 22
Views: 1180

Re: Tax deductions from charities

If you are already able to itemize deductions without that gift (that is, itemized deductions are more than your standard deduction), then you will be able to deduct 100% of the gift. If your itemized deductions would be less than the standard deduction without that gift, then you will benefit from...
by rkhusky
Wed Apr 09, 2014 2:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax deductions from charities
Replies: 31
Views: 1599

Re: Should VG's Tax-Exempt funds be adjusted for % in your s

My state return has a spot for including other income, such as from tax exempt bonds that are not from my state. I subtract off the portion of Vanguard's returns that are from my state.
by rkhusky
Tue Apr 08, 2014 8:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should VG's Tax-Exempt funds be adjusted for % in your state
Replies: 4
Views: 224

Re: How is social security calculated?

sunnyday wrote:So say someone makes $50k for 20 years and has zeros for the rest.


$50K in real dollars (i.e. indexed for inflation).
by rkhusky
Tue Apr 08, 2014 3:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: How is social security calculated?
Replies: 21
Views: 1155

Re: How is social security calculated?

Or login and get your report with estimated benefits:

http://www.ssa.gov/myaccount/
by rkhusky
Tue Apr 08, 2014 2:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: How is social security calculated?
Replies: 21
Views: 1155

Re: If trading is a losing game, how do you explain prop fir

EMH is folklore and true only in the limit of equilibrium (well, almost by definition true then). To you, who are slow and ungainly to see and act, the market appears in equilibrium all the time (except under extreme circumstances). To others who see and work with more detail, events happen constan...
by rkhusky
Tue Apr 08, 2014 2:55 pm
 
Forum: Investing - Theory, News & General
Topic: If trading is a losing game, how do you explain prop firms?
Replies: 38
Views: 2941

Re: Asset location strategies for taxes are OK; but not grea

Another consideration I am struggling with is the "Foreign Tax Credit". For example, I hold DGS (Emerging Mkt Small Cap Dividend ETF) in my Roth. It is great that I do not have to pay tax on the dividend distributions but I have no way of claiming credit for all the foreign taxes that wer...
by rkhusky
Tue Apr 08, 2014 10:20 am
 
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 27
Views: 2568

Re: Spouse benefits when applying for SS before FRA

Great. I think I've got it now. Thanks.
by rkhusky
Sat Apr 05, 2014 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Spouse benefits when applying for SS before FRA
Replies: 6
Views: 456

Re: Spouse benefits when applying for SS before FRA

Suppose the wife had filed for her own benefits at 63, then her benefits would be reduced by 20% - $1920. The husband then files for his benefits at 62. That still equals $750 + $140 right? It's based on the PIA, not the benefit (PIA +- adjustment). If wife hasn't filed yet, can she file at FRA for ...
by rkhusky
Sat Apr 05, 2014 2:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Spouse benefits when applying for SS before FRA
Replies: 6
Views: 456

Re: Spouse benefits when applying for SS before FRA

Thank you. I hadn't realized that the benefit would be a blend of both and that both could be reduced by filing early.
by rkhusky
Sat Apr 05, 2014 9:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Spouse benefits when applying for SS before FRA
Replies: 6
Views: 456

Spouse benefits when applying for SS before FRA

1) You can't get a benefit as a spouse of a worker if your worker spouse is not "entitled" to his/her own old-age benefit. 3) If you apply for a benefit of either kind before FRA, you are presumed to file for the other. At FRA, you can apply for one without the other. Situation: Spouse1 i...
by rkhusky
Sat Apr 05, 2014 8:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Spouse benefits when applying for SS before FRA
Replies: 6
Views: 456

Re: GPS with "favor interstates" option?

As mentioned, Garmin does not handle traffic lights well. It should be simple to add in traffic lights to the database and add a minute or so to the time estimate for each light. It won't be exact because some lights are timed, such that, if traffic is light, you don't hit many of them. But it would...
by rkhusky
Thu Apr 03, 2014 9:59 am
 
Forum: Personal Consumer Issues
Topic: GPS with "favor interstates" option?
Replies: 37
Views: 1322

Re: The Gap between Emerging Markets GDP and Stock Returns

Its clear where the high risk is, I'm wondering where the higher reward is going to come from, if not from economic growth. Higher expected return comes from higher risk. Nothing else. Higher risk is no guarantee of higher return. Rationale investors demand higher expected return for higher risk. B...
by rkhusky
Fri Mar 28, 2014 12:29 pm
 
Forum: Investing - Theory, News & General
Topic: The Gap between Emerging Markets GDP and Stock Returns
Replies: 7
Views: 354

Re: Municipal Bond Fund Risks

Having a whole state and its political entities all go bankrupt is close enough to an end of the world scenario. Most single state muni funds target big states. Many people use a diversified muni fund that includes all states. If the muni fund has a range of qualities ranging from BBB -> AAA, center...
by rkhusky
Thu Mar 27, 2014 2:10 pm
 
Forum: Investing - Theory, News & General
Topic: Municipal Bond Fund Risks
Replies: 7
Views: 646

Re: How/do you change asset allocation with time?

I have a linear ramp up in bonds with time, which equates to age-x.
by rkhusky
Thu Mar 27, 2014 2:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: How/do you change asset allocation with time?
Replies: 18
Views: 1135

Re: Can I Backdoor Roth BEFORE rolling TIRA to 401k?

I'm referring to the sizable TIRA that he already owns that hasn't made it into his 401K yet. Which doesn't come into play until the conversion is made which can't be in 2013 as that year is past and the conversion hasn't been made so the soonest it could be a problem is 2014. Right, but the OP sai...
by rkhusky
Thu Mar 27, 2014 8:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I Backdoor Roth BEFORE rolling TIRA to 401k?
Replies: 24
Views: 1168

Re: Is there ever a reason to prefer taxable over tax advant

No, you're not wrong. Traditional IRA's are taxed at withdrawal. Any earnings, dividends, etc. aren't taxed UNTIL withdrawal, though, so the money is able to compound without taxation until withdrawal, so it is a smaller bite, but it's not as if all earnings are tax free. Yes he is wrong. Earnings ...
by rkhusky
Wed Mar 26, 2014 5:12 pm
 
Forum: Investing - Theory, News & General
Topic: Is there ever a reason to prefer taxable over tax advantaged
Replies: 48
Views: 4506

Example of efficient markets, or not?

On Wednesday, a day after Facebook announced its planned acquisition of Oculus VR for $2 billion, trading of penny stock Oculus VisionTech (OVTZ) was halted after surging almost 90% in half an hour. The Vancouver-based digital media company bears no connection to Facebook's acquisition target, but ...
by rkhusky
Wed Mar 26, 2014 3:12 pm
 
Forum: Investing - Theory, News & General
Topic: Example of efficient markets, or not?
Replies: 14
Views: 641

Re: TSP Lazy Porfolio with 4 funds

Barefootgirl wrote:Is there an optimal combination (combined percentages) of TSP Funds that most closely approximates the Vanguard VTSMX (Total Stock Market Index Fund)?

Thank you, BFG


Holding the C Fund and S Fund in a 4 to 1 ratio approximates VTSMX (80% C/20% S).
by rkhusky
Wed Mar 26, 2014 7:50 am
 
Forum: Investing - Theory, News & General
Topic: TSP Lazy Porfolio with 4 funds
Replies: 41
Views: 4433

Re: Is there ever a reason to prefer taxable over tax advant

This Wiki article shows a specific comparison between taxable and various tax advantaged accounts: http://www.bogleheads.org/wiki/Non-deductible_traditional_IRA Conclusion: deductible IRA is much better than taxable account. If the average tax rate on withdrawals is less than the marginal rate, the ...
by rkhusky
Wed Mar 26, 2014 7:41 am
 
Forum: Investing - Theory, News & General
Topic: Is there ever a reason to prefer taxable over tax advantaged
Replies: 48
Views: 4506

Re: IRS Refund Fraud

pshonore wrote: That only leaves prepaid debit cards.


Exactly. Debit cards that require no ID to use - a scammer's dream come true. (And how hard is to get fake ID, anyway, if the IRS somehow tries that?)
by rkhusky
Tue Mar 25, 2014 2:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Refund Fraud
Replies: 41
Views: 3174

Re: IRS Refund Fraud

In the event of two returns with the same SS#, I would think that the IRS would tend to believe the filer that sent in a check vs. the filer that received a refund via debit card. I try to arrange to owe money at the end of the year.
by rkhusky
Tue Mar 25, 2014 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Refund Fraud
Replies: 41
Views: 3174

Re: Domestic vs. International Stock Allocation

One of the advantages of a cap-weighted index is the efficiency and low cost. Does this hold for Total World? Do we expect that the ER for Total World to eventually drop below that of a combination of Total Stock and Total International?
by rkhusky
Tue Mar 25, 2014 12:13 pm
 
Forum: Investing - Theory, News & General
Topic: Domestic vs. International Stock Allocation
Replies: 37
Views: 2925

Re: Should I contribute to a bad 401k or to a Roth IRA

One of the keys is the average tax rate on 401K withdrawals, which depends on pension, SS and other income besides the 401K withdrawals. If you have none of the latter, than some of your 401K withdrawal will be taxed at 0%, 10%, 15%, etc. If you have other income, then that will fill some of these l...
by rkhusky
Tue Mar 25, 2014 8:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I contribute to a bad 401k or to a Roth IRA
Replies: 7
Views: 640

Re: Roth vs Traditional

Modified AGI limit for traditional IRA contributions increased. For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: * More than $95,000 but less than $115,000 for a married couple filing a...
by rkhusky
Tue Mar 25, 2014 8:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional
Replies: 9
Views: 775

Re: Noob questions on Roth/TSP.

If you haven't already, check out this thread on Military Investing and this Wiki article on Military finances . And read this article: Most TSP Participants Should Switch To The Roth TSP . Whether "most" TSP participants should switch is open for debate. The article provides 5 exceptions...
by rkhusky
Mon Mar 24, 2014 6:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Noob questions on Roth/TSP.
Replies: 6
Views: 565

Re: Morningstar Discussion On Roth Conversions

I would only do a Roth conversion if my income dropped significantly below average or I was expecting my tax bracket to jump up significantly in the future.
by rkhusky
Mon Mar 24, 2014 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: Morningstar Discussion On Roth Conversions
Replies: 11
Views: 1140

Re: Vanguard Long-term Tax Exempt vs. Intermediate-Term TE?

I would think that all this information is already priced into the bonds that Vanguard is holding. Further, I imagine that Vanguard is taking into account the callable nature of the bonds when computing duration (inasmuch as one can put that nonlinear information into a linear metric). Investment de...
by rkhusky
Mon Mar 24, 2014 1:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Long-term Tax Exempt vs. Intermediate-Term TE?
Replies: 11
Views: 1254

Re: Question about 401k vs Roth IRA

If you are in the 15% tax bracket now and you have horrible choices in your 401K (active funds with ER of 1-2%), it might make sense to forgo some of the free money.
by rkhusky
Fri Mar 21, 2014 8:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Question about 401k vs Roth IRA
Replies: 8
Views: 635

Re: Roth 401k or 401k? - lots of calculations done. sanity c

Here are a couple of examples: Withdraw $100K from a Traditional 401K with no pension or SS or other income, standard deductions, married filing jointly: average tax cost - 12%. Withdraw $60K from a Traditional 401K with $40K of SS and no pension or other income, standard deductions, married filing ...
by rkhusky
Thu Mar 20, 2014 5:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or 401k? - lots of calculations done. sanity check
Replies: 11
Views: 869

Re: Roth 401k or 401k? - lots of calculations done. sanity c

Do you expect a large pension? Do you expect to remain in the 25% bracket through your career? Do you expect to retire early and/or defer SS to age 70? The rate of return on your investments applies to both Roth or Traditional, so it doesn't play much of a role in the decision of which to use.
by rkhusky
Thu Mar 20, 2014 1:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or 401k? - lots of calculations done. sanity check
Replies: 11
Views: 869

Re: Talk me out of my TSP L2050 choice

MichDad wrote: I keep telling them to root for a downturn while they're young so they can purchase their assets "on sale."


The optimum time is midway through your career when you have enough on hand to take advantage of the drop, but enough time left for the market to recover.
by rkhusky
Thu Mar 20, 2014 1:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Talk me out of my TSP L2050 choice
Replies: 20
Views: 1187

Re: Talk me out of my TSP L2050 choice

I just wish I was able to invest even more during the downturns. This is one problem with being 100% stock. I own no bonds but I will have my FERS pension and Social Security. If you can survive on FERS and SS, than you can take more risk, such as a 50% drop in stocks that lasts a year or two.
by rkhusky
Thu Mar 20, 2014 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Talk me out of my TSP L2050 choice
Replies: 20
Views: 1187

Re: Do you consider Vanguard Total Market to be 100% stocks?

Hi: According to the December 31, 2013 annual report, the managers of the Vanguard Total Stock Market Index fund has the following note: The fund invests a portion of its cash reserves to equity markets through the use of index futures contracts. After giving effect to futures instruments, the fund...
by rkhusky
Wed Mar 19, 2014 12:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you consider Vanguard Total Market to be 100% stocks?
Replies: 15
Views: 2410

Re: Should I continue to do Roth 401k and Roth IRA?

With the ~10% of CALI taxes thrown in there, I think it's a slam dunk decision to go traditional for the 401k. Heck, you can really even make the argument that you should do a traditional IRA as well. +1. I do a traditional 401k in the 25% tax bracket here in Texas with a Roth IRA, with 0% state in...
by rkhusky
Wed Mar 19, 2014 11:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I continue to do Roth 401k and Roth IRA?
Replies: 25
Views: 1425

Re: Filling out FAFSA every year

Previous post on this subject: viewtopic.php?f=2&t=113789
by rkhusky
Wed Mar 19, 2014 11:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Filling out FAFSA every year
Replies: 2
Views: 352

Re: Decreasing Term Life Insurance question

Do I understand correctly that if I purchased a 20 year term life policy, and say in year 5, I decided to reduce the face value to 75% of its original, then the premium would also be reduced to about 75%? That sounds like a very simple and convenient option. You are correct, and as brudude mentione...
by rkhusky
Wed Mar 19, 2014 11:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Decreasing Term Life Insurance question
Replies: 18
Views: 902

Re: Roth vs. Traditional w/SS

Thanks JW. I will definitely download it and take a look.
by rkhusky
Wed Mar 19, 2014 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth vs. Traditional w/SS
Replies: 16
Views: 1063

Re: Roth vs. Traditional w/SS

The numbers above aren't necessarily for my situation, I just wanted to show a range of results. I will probably be nearer the latter two situations. I mainly wanted to see if a Roth 401K makes sense. I am at a marginal rate of 30% and the results seem to indicate that for pension+SS+401K I could be...
by rkhusky
Wed Mar 19, 2014 8:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth vs. Traditional w/SS
Replies: 16
Views: 1063
Next

Return to advanced search