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Re: Deduction of tax preparation fees in the US (timing)

Thanks for your comments and confirming that I can deduct from my 2014 taxes. To already preempt the "Why don't you ask your tax lawyer?": By answering he probably bill me for the amount I could potentially save from a deduction. Your thinking doesn't make sense. You've retained a tax atto...
by wuschelbeutel
Sun Mar 30, 2014 10:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deduction of tax preparation fees in the US (timing)
Replies: 7
Views: 486

Deduction of tax preparation fees in the US (timing)

At the end of 2013, I used my credit card to build up a retainer for my tax attorney (the credit card bill was paid off in 2014). However, this retainer was partially charged by the lawyer in 2014 (he didn't charge from it in 2013). I think I can't deduct the entire retainer (since the entire sum wa...
by wuschelbeutel
Sun Mar 30, 2014 8:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deduction of tax preparation fees in the US (timing)
Replies: 7
Views: 486

Re: Rate of DCA with a large lump sum in a savings account?

"the idea being that short term bond funds have little volatility and cancel out inflation" Short term bonds cancel out inflation? Hardly. I think it's close (assuming the marginal tax rate is small). If the expected inflation rate is 3.4% and the returns on the short term bonds is at 4%....
by wuschelbeutel
Mon Mar 24, 2014 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

"the idea being that short term bond funds have little volatility and cancel out inflation" Short term bonds cancel out inflation? Hardly. I think it's close (assuming the marginal tax rate is small). If the expected inflation rate is 3.4% and the returns on the short term bonds is at 4%.
by wuschelbeutel
Mon Mar 24, 2014 12:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

Thanks for (almost) all of the answers so far. I thought about it some more and came to the conclusion that those who recommended lump sum were right. All I'm doing with DCA is reducing the variance of "the first day." Nevertheless, I still have disdain for those sheep that just accept wha...
by wuschelbeutel
Mon Mar 24, 2014 12:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

The point is, the second you place money at principal risk, you will be exposed to variance that is not quantifiable . If that's true, then why are the different assets placed into different risk-reward categories? While various asset class categories typically offer higher returns, returns are NOT...
by wuschelbeutel
Mon Mar 24, 2014 9:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

You should dollar cost average in $273.97 every day for 2 years. Is that what you want to hear? Why do you post here if you're just going to argue w/the advice? Do it how you want; you don't need anyone's permission. But don't waste people's time by asking for advice that you have no intention of t...
by wuschelbeutel
Mon Mar 24, 2014 9:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

Immediately buying all the funds exposes the person to high volatility, Investing in the funds at all exposes the person to high volatility. If that is the issue, then DCA is certainly not the solution, and if this is the logic for suggesting DCA, then it is not logic. My worry isn't about the vola...
by wuschelbeutel
Mon Mar 24, 2014 8:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

One year ago, almost to the day, I was faced with a similar decision. The market was up about 10% and our 401k adviser was saying don't be surprised if the market doesn't gain any more over the next 9 months - 10% for the whole year is pretty good. I DCA'd so I wouldn't "lose too much money&qu...
by wuschelbeutel
Mon Mar 24, 2014 8:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

One year ago, almost to the day, I was faced with a similar decision. The market was up about 10% and our 401k adviser was saying don't be surprised if the market doesn't gain any more over the next 9 months - 10% for the whole year is pretty good. I DCA'd so I wouldn't "lose too much money&qu...
by wuschelbeutel
Mon Mar 24, 2014 8:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

Your question was answered in this thread: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=132098 Please read it. As noted in that thread, I almost always recommend investing 50% right now and the rest in each month over the next 10 months. If the market has a really bad day, then invest t...
by wuschelbeutel
Mon Mar 24, 2014 5:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Rate of DCA with a large lump sum in a savings account?

What does "risk-neutral" mean? Why is this ~28 year looking for rational investing guidance while simultaneously assuming irrational health decisions that will kill him/her in the next ~30 years? Invest the entire amount as a lump sum and spend brain time fixing the lifestyle issue(s). Fo...
by wuschelbeutel
Mon Mar 24, 2014 2:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Rate of DCA with a large lump sum in a savings account?

I posted this question here , but only have an answer for one of two questions so far and it would be good to have a second opinion on the question that was answered. A risk-neutral person, who is not expected to reach the IRA retirement age (through an unhealthy lifestyle), earning approx, $30,000 ...
by wuschelbeutel
Mon Mar 24, 2014 2:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate of DCA with a large lump sum in a savings account?
Replies: 30
Views: 1226

Re: Devil's advocate: Why are recommendations so conservativ

Regarding the emergency fund question (savings, money market, short bonds, or intermediate bonds): 1. The difference in liquidity should be a non-issue : Say, you become unemployed (in the unlikely case that you don't get unemployment money). You are likely to have access to money that saves you for...
by wuschelbeutel
Wed Dec 26, 2012 1:10 am
 
Forum: Investing - Theory, News & General
Topic: Devil's advocate: Why are recommendations so conservative?
Replies: 34
Views: 3549

Devil's advocate: Why are recommendations so conservative?

Very frequently, the recommended asset allocations, for an investment horizon of 30-40 years, contain US stocks and the total bond market (average maturity: five years) as the lion's share of the recommended portfolio. However, looking at the historic worst case "valley" (longest period un...
by wuschelbeutel
Tue Dec 25, 2012 11:54 am
 
Forum: Investing - Theory, News & General
Topic: Devil's advocate: Why are recommendations so conservative?
Replies: 34
Views: 3549

Print all transactions of a credit card that will be closed?

Is it worthwhile to go through the trouble of printing out all transactions of a credit card that has been used for business expenses before the corresponding card is cancelled and destroyed? The expenditures are assumed to have been verified (i.e., assume that the company has reimbursed me with 100...
by wuschelbeutel
Fri Jul 06, 2012 10:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Print all transactions of a credit card that will be closed?
Replies: 2
Views: 288

Why invest in stock market index funds when there is BRK?

I've been following the advice of prudent investment advisers and invested most of my savings in stock market index funds. Then, I compare BRK with the domestic stock market and see that it has consistently outperformed it. Now, I feel like a sucker. Why should I go for the market average when I mig...
by wuschelbeutel
Thu Apr 26, 2012 9:43 pm
 
Forum: Investing - Theory, News & General
Topic: Why invest in stock market index funds when there is BRK?
Replies: 31
Views: 2559

Re: Drop car insurance if I don't use my car in the next 2 y

Thanks for all the answers. I should have stated that I have plenty of garages/storage available at our home and the car is paid in full (no loan outstanding). If you have a low cost place to store this car indoors (eg a barn or a garage), the car is a keeper, and you don't need the cash from the sa...
by wuschelbeutel
Tue Mar 06, 2012 8:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Drop car insurance if I don't use my car in the next 2 yrs
Replies: 7
Views: 807

Drop car insurance if I don't use my car in the next 2 yrs

I'm going back to school for the next two years. When I go to school I won't drive. I know that car insurance companies check if you had prior car insurance to determine the premium and it will be higher if you don't, but I don't know by how much and whether it's worth spending ~$1500 for nothing du...
by wuschelbeutel
Mon Mar 05, 2012 5:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Drop car insurance if I don't use my car in the next 2 yrs
Replies: 7
Views: 807

Foreign tax credit carryover w/o having filed previously

I owned VGTSX for many years now but only in year 2011 was it a requirement for me to file taxes.

Can I claim foreign tax credit carryovers for past years even though I didn't file taxes during those years?

How can I access that information (i.e., foreign taxes paid in prior years) on Vanguard.com?
by wuschelbeutel
Sat Feb 11, 2012 7:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Foreign tax credit carryover w/o having filed previously
Replies: 1
Views: 138

Re: Tax q's when you sell a Vanguard fund and use TurboTax

But where do you set the method: when filing taxes (i.e., to the IRS) or before selling a fund (i.e., to Vanguard)?

And at what resolution does this method get applied: your entire portfolio or on a per-fund basis?
by wuschelbeutel
Tue Dec 27, 2011 10:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax q's when you sell a Vanguard fund and use TurboTax
Replies: 3
Views: 233

Tax q's when you sell a Vanguard fund and use TurboTax

1. I heard Vanguard integrates with TurboTax. Suppose I sold some index fund shares in a given tax year, will TurboTax automatically go to "Transaction History", figure out when I bought that share (and how much I paid for it) and when I sold the shares (and how much I sold them for) - and...
by wuschelbeutel
Tue Dec 27, 2011 10:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax q's when you sell a Vanguard fund and use TurboTax
Replies: 3
Views: 233

Car insurance - High grades discount

After Johnny graduated from community college in 2008, he got his first driver's license, car, and car insurance. When talking with the insurance agent, he was told that he would get the Good Student discount even though he is not in school anymore (since it's been so close to his graduation). Johnn...
by wuschelbeutel
Sun Dec 25, 2011 5:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Car insurance - High grades discount
Replies: 1
Views: 225

Re: 401(k) and LTGC tax software question

0% 401(k) contributions is a bad idea? Maybe for Americans who plan to stay here and get old. My situation is different because I could move back to my home-country and give up US citizenship (due to tax reasons). Also, I don't plan on getting that old.
by wuschelbeutel
Fri Dec 23, 2011 7:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) and LTGC tax software question
Replies: 14
Views: 378

Re: 401(k) and LTGC tax software question

Based on all the info I've read here I'm convinced to set my contributions to 0%. Thanks everyone!
by wuschelbeutel
Fri Dec 23, 2011 6:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) and LTGC tax software question
Replies: 14
Views: 378

Re: 401(k) and LTGC tax software question

You do not need to take out a loan for a house or a 529 plan. I am trying to get you to understand that you can have your cake and eat it, too. You do not have to pay a penalty nor do you have to pay taxes if you take out a loan and invest the money.. I think my confusion arises from the definition...
by wuschelbeutel
Thu Dec 22, 2011 6:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) and LTGC tax software question
Replies: 14
Views: 378

Re: Cancelling a credit card with a wide history

Lets say is in this way: The only reason to cancel the card is to give in to my OCD traits (I have 5 cards atm and want to cancel 4). But I have to draw a line if my FICO drops more than, say, 25 points due to this. The FICO decrease due to credit line decrease I dont care about but the payment hist...
by wuschelbeutel
Thu Dec 22, 2011 6:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cancelling a credit card with a wide history
Replies: 24
Views: 2135

Re: 401(k) and LTGC tax software question

Let me rephrase my question: Are you even allowed to withdraw from your 401(k)? Your employer will control this, not the IRS. A way to avoid taxes and penalty is to take out a loan against your 401(k). We do that and invest the money in a tax-free 529 plan. The benefits specialist at my company sai...
by wuschelbeutel
Thu Dec 22, 2011 6:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) and LTGC tax software question
Replies: 14
Views: 378

Re: Cancelling a credit card with a wide history

I cancelled a USAA card that I had had for 25 years. I didn't worry about it. May I ask this: What would happen if your FICO went down by 10 points? Would it be the end of the world? Payment history makes up 35%....this was my only card up until 2months ago and Ive never used any other credit/loan
by wuschelbeutel
Thu Dec 22, 2011 5:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cancelling a credit card with a wide history
Replies: 24
Views: 2135

Re: 401(k) and LTGC tax software question

livesoft wrote:Are you allowed to withdraw from your 401(k) without penalty?


I thought the IRS defines a 10% penalty on it...
by wuschelbeutel
Thu Dec 22, 2011 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) and LTGC tax software question
Replies: 14
Views: 378

401(k) and LTGC tax software question

1. Suppose my salary is $60,000 and my company offers to match 50% on the first 6% My plan is to invest the pretax range where I get matched (6%), then immediately withdraw it for a total investment of [Company match]*[fraction left after 10% penalty]*[match range]*[pretax] =1.5 * .06 * 60 000 Penal...
by wuschelbeutel
Thu Dec 22, 2011 5:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) and LTGC tax software question
Replies: 14
Views: 378

Cancelling a credit card with a wide history

I have a card since 06 but it doesn't offer any cashback so I wan't to cancel it. I have paid every bill on time. Will my FICO go down if the credit line gets transfered over to my other credit card of the same bank? I'm worried that the credit history component of FICO will be erased by cancelling ...
by wuschelbeutel
Thu Dec 22, 2011 5:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cancelling a credit card with a wide history
Replies: 24
Views: 2135

Re: What insurances should I sign up for with my company?

According to the article below, it looks like, for now at least, the act does not require insurance companies to insure adult children with access to employer-sponsored health plans. But, if the adult child does not have access to one of these plans, even if a non-student, not claimed as a dependen...
by wuschelbeutel
Mon Nov 14, 2011 12:40 am
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Re: Do I have to file past taxes?

Thanks for the clarification. :sharebeer School project prize was actually only $250 and the redemptions were a little less than $3000. I assume that if I file delinquent 2010, I still owe the government $0? What is the penalty for not filing a tax return in which the tax payer owes nothing? Can I s...
by wuschelbeutel
Mon Nov 14, 2011 12:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Do I have to file past taxes?
Replies: 15
Views: 1130

Re: What insurances should I sign up for with my company?

So, the act forces insurance providers to offer employers a plan in which its employees' kids are covered up to the year of 26 even if they have full time jobs (i.e., not full time students)?
by wuschelbeutel
Sun Nov 13, 2011 8:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Re: What insurances should I sign up for with my company?

But what about the Patient Protection and Affordable Care Act ?
by wuschelbeutel
Sun Nov 13, 2011 8:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Re: What insurances should I sign up for with my company?

Yes, but before I finetune the policy I need to know whether I even need health insurance at all. It's almost $1,000/yr :cry:
by wuschelbeutel
Sun Nov 13, 2011 6:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Re: What insurances should I sign up for with my company?

I don't see how asking for money and then buying my own policy at non-negotiated rates would help me.

I don't have health issues but I don't want to take a risk of being six to seven digits in debt due to something that could come up.
by wuschelbeutel
Sun Nov 13, 2011 5:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Re: Do I have to file past taxes?

Yes, someone did claim me as their dependent during those years.
by wuschelbeutel
Sun Nov 13, 2011 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do I have to file past taxes?
Replies: 15
Views: 1130

Re: What insurances should I sign up for with my company?

Thanks for the answers.

I am still in the dark regarding Question 1: Can someone please address whether I need to sign up for the medical plan?
by wuschelbeutel
Sun Nov 13, 2011 4:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Re: Do I have to file past taxes?

Thanks for the references.

In terms of gross income, I'm okay. However, the pdf makes no mention of fund holders (in that section), but rather uses the vague term for most people - do you know whether the simple fact of me having been an investor will require me to file nonetheless?
by wuschelbeutel
Sun Nov 13, 2011 3:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Do I have to file past taxes?
Replies: 15
Views: 1130

Do I have to file past taxes?

This article describes situations in which low income singles don't have to file taxes. I never had any dependents, was never blind, always single, and am currently a 24-year-old US citizen (in previous years I was a US permanent resident). I am not sure whether I can be claimed as a dependent by s...
by wuschelbeutel
Sun Nov 13, 2011 1:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Do I have to file past taxes?
Replies: 15
Views: 1130

What insurances should I sign up for with my company?

I'm a 24-year old citizen of the United States and have an emergency fund. 1. Do I need to sign up for medical with my company or does the Patient Protection and Affordable Care Act obviate this need? 2. I read in Personal Finance for Dummies that one should avoid small insurances - unless it's paid...
by wuschelbeutel
Sun Nov 13, 2011 12:34 am
 
Forum: Personal Finance (Not Investing)
Topic: What insurances should I sign up for with my company?
Replies: 18
Views: 943

Which gadget for personal use in business travels?

I carry my business notebook with me when I travel to the client. However, I don't feel comfortable storing personal files and bookmarks on it. That's why I want to buy a mobile digital device for during the flight (reading books) and for the hotel room in the evenings (browsing the web, videos). I ...
by wuschelbeutel
Mon Oct 24, 2011 2:03 am
 
Forum: Personal Consumer Issues
Topic: Which gadget for personal use in business travels?
Replies: 9
Views: 789

The stock market

1. When one applies a fit to the market cap of S&P500, an appreciating trend can be seen. Why do stocks appreciate over time? I saw an article stating that it can be explained by the fact that companies' earning grow over time. However, why should we investors as a collective then say "ok, ...
by wuschelbeutel
Sun Oct 23, 2011 10:10 pm
 
Forum: Investing - Theory, News & General
Topic: The stock market
Replies: 1
Views: 274

Re: Difference between interest income and capital gains?

If I have just converted all shares in a Vanguard Investor Fund to the corresponding Admiral Fund, and the former has made a capital gain compared to the original investment amount - do I have to treat this as a liquidation of the fund to purchase/convert to an entirely new fund, or does it not have...
by wuschelbeutel
Fri Oct 21, 2011 5:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Difference between interest income and capital gains?
Replies: 25
Views: 2997

Re: Which of the following do you have t report as gross inc

Can somebody else confirm that A. is tax exempt? Is B. tax exempt even if you use the card to pay for business expenses for which you are reimbursed for? Also, if C was given to me as a check in a year in which I was not a degree candidate, does it count as gross income? Finally, if my company tells...
by wuschelbeutel
Fri Oct 21, 2011 5:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Which of the following do you have t report as gross income?
Replies: 8
Views: 1248

Re: Credit card bonuses

Thanks. I was under the impression that 1 Delta mile counts as 1 free-of-charge physical mile when you redeem it. The distance from USA to Europe is about 5000 miles. There are a lot of credit card companies out there that hand out bonuses when you open credit cards with them and spend a certain amo...
by wuschelbeutel
Thu Oct 20, 2011 1:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Credit card bonuses
Replies: 19
Views: 1947

Credit card bonuses

There are a lot of credit card companies out there that hand out bonuses when you open credit cards with them and spend a certain amount in a certain time interval. 1. Some of these bonuses tend to be quite high. How can companies afford to hand them out? 2. Could I simply sign up for one, get a bon...
by wuschelbeutel
Thu Oct 20, 2011 12:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Credit card bonuses
Replies: 19
Views: 1947
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