Search found 97 matches
- Tue Feb 07, 2023 12:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: Qualified and non-qualified dividends
- Replies: 12
- Views: 984
Re: Qualified and non-qualified dividends
I would be encouraged to keep track of the taxes paid on all dividends and how much you should pay in taxes after the sale of the security. That is hard to track and I suspect everyone trusts the bank to do this.
- Tue Feb 07, 2023 9:20 am
- Forum: Personal Finance (Not Investing)
- Topic: Qualified and non-qualified dividends
- Replies: 12
- Views: 984
Re: Qualified and non-qualified dividends
Ok, then what's the purpose of showing something that's qualified (which the form explains is the non-taxable portion)?
- Tue Feb 07, 2023 9:17 am
- Forum: Personal Finance (Not Investing)
- Topic: Qualified and non-qualified dividends
- Replies: 12
- Views: 984
Qualified and non-qualified dividends
Why are there qualified and non-qualified dividends? Why do some need to be taxed and others not when you have VTSAX, VGT and VTI? The tax form 1099-INT statement doesn't specify which ones have the qualified or the non-qualified dividends. Also, what would be the alternative to non-qualified portion of this investment? This is going to be in the account for at least another 20-30 years.
- Wed Jan 25, 2023 12:20 am
- Forum: Personal Investments
- Topic: Safe investments in lieu of extra mortgage payments
- Replies: 46
- Views: 4453
Re: Safe investments in lieu of extra mortgage payments
I am trying to decide where to put money in lieu of extra mortgage payments. Currently, I am leaning between CDs and I-bonds. I have a mortgage with a remaining principal of $100k and a fixed rate of 2.1%. I am age 48 and we have 10 years left on our mortgage if we make minimum mortgage payments. We like our house and don't plan to move. I was putting extra mortgage payments in I-bonds but I am thinking about putting extra mortgage payments in CDs. I can get a 4.25% 12 month CD with Ally which is 2.15% better than my mortgage or a 2 year CD with Discover Bank at 4.3%. We have about $1k per month that we could put for extra mortgage payments. I already max out Roth IRA for self and spouse and my tax deferred accounts that we put into the ma...
- Sun Jan 08, 2023 1:17 pm
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
- Sun Jan 08, 2023 1:15 am
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
Re: Overinvestment in real estate
Not going to comment on whether becoming a landlord is a good idea or not as that's a personal choice. I took the plunge and it's been...ok. Technically renting out my old home has been a huge success with nice renters and good income but I definitely don't enjoy the consternation and worry that goes with it. Anyway, on to the mechanics: Instead of using retirement funds for the 2nd house you could also do a HELOC/2nd mortgage to pull the equity out of the future rental house to help with the downpayment on the new house. I'm not sure I'd dip into retirement savings to make this work but there's no reason you can't use the equity of the first house to buy the second. That assumes of course the rent will cover all that additional debt. Othe...
- Sun Jan 08, 2023 12:28 am
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
Re: Overinvestment in real estate
Yescarminered2019 wrote: ↑Sat Jan 07, 2023 11:20 pm Are you counting the new primary home as part your asset allocation ?
- Sat Jan 07, 2023 8:33 pm
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
Re: Overinvestment in real estate
Spoiler alert: It is rare for your current house to be a good rental if you have owned it for a while and have capital gains because you would lose the homeowners capital gains exclusion. If your decide to keep it as a rental then you will be running a business that is worth a good part of a million dollars so you should write up a business plan for it. You can likely find rental property business plans on the internet. That should include professional tax advice because the way the taxes work out will likely determine if it is a good rental or not. Is the line in the spoiler alert an assumption that I will be selling? There will be no capital gains tax because I’m not going to sell. It’s only the primary residence change. The taxes - isn’...
- Sat Jan 07, 2023 5:54 pm
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
Re: Overinvestment in real estate
Ok. Isn’t the emphasis of location relating to the value of a property and not diversification?TropikThunder wrote: ↑Sat Jan 07, 2023 5:51 pmLocation, location, location. Which do you see as more diversified in terms of whatever risks RE ownership has: (1) owning two houses in the SF Bay Area; or (2) owning one house in the Bay Area and another in Kansas City.
- Sat Jan 07, 2023 5:34 pm
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
- Sat Jan 07, 2023 5:32 pm
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
Re: Overinvestment in real estate
It’s a second property and it would become primary, the old primary would become an investment property. I wouldn’t be selling the old one to get a new one, but that’s an idea.
- Sat Jan 07, 2023 4:48 pm
- Forum: Personal Investments
- Topic: Overinvestment in real estate
- Replies: 31
- Views: 3350
- Fri Dec 30, 2022 12:43 pm
- Forum: Personal Investments
- Topic: Question about selling Rollover IRA
- Replies: 2
- Views: 277
Question about selling Rollover IRA
Hello,
Are there any taxes on a rollover IRA in Vanguard?
I have one and it's not being contributed to and I'd like to weigh my options of withdrawing or moving it somewhere else.
Thanks
Are there any taxes on a rollover IRA in Vanguard?
I have one and it's not being contributed to and I'd like to weigh my options of withdrawing or moving it somewhere else.
Thanks
- Fri Oct 21, 2022 1:53 pm
- Forum: Personal Investments
- Topic: Extra cash question
- Replies: 11
- Views: 1251
Re: Extra cash question
Let me ask this way, what's the downside of VMRXX?
- Fri Oct 21, 2022 11:47 am
- Forum: Personal Investments
- Topic: Extra cash question
- Replies: 11
- Views: 1251
Re: Extra cash question
What about long-term investment that offers liquidity? T-Bills and I-Bonds seem to be investments that are great only for now.
- Fri Oct 21, 2022 10:43 am
- Forum: Personal Investments
- Topic: Extra cash question
- Replies: 11
- Views: 1251
Re: Extra cash question
What's the best place to buy T-Bills and I-Bonds?
- Fri Oct 21, 2022 8:19 am
- Forum: Personal Investments
- Topic: Extra cash question
- Replies: 11
- Views: 1251
- Mon Sep 19, 2022 2:25 pm
- Forum: Personal Investments
- Topic: Extra cash question
- Replies: 11
- Views: 1251
Extra cash question
If you have extra cash that you could invest but think you'd need it in 1-2 years, where would you place it?
- Thu Mar 31, 2022 12:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: A "proper" home [financial goals before buying another house and renting original one]
- Replies: 22
- Views: 2658
- Thu Mar 31, 2022 11:05 am
- Forum: Personal Finance (Not Investing)
- Topic: A "proper" home [financial goals before buying another house and renting original one]
- Replies: 22
- Views: 2658
Re: A "proper" home [financial goals before buying another house and renting original one]
- Thu Mar 31, 2022 10:27 am
- Forum: Personal Finance (Not Investing)
- Topic: A "proper" home [financial goals before buying another house and renting original one]
- Replies: 22
- Views: 2658
Re: A "proper" home [financial goals before buying another house and renting original one]
4% = yearly income / property value. Is this a high performing rental?
- Wed Mar 23, 2022 6:58 pm
- Forum: Personal Finance (Not Investing)
- Topic: A "proper" home [financial goals before buying another house and renting original one]
- Replies: 22
- Views: 2658
Re: A "proper" home [financial goals before buying another house and renting original one]
I would not keep my original home if I had a mortgage on it and I wasn't paying cash for the next one. If you are going to own both outright then more power to you. What if you owned your original home but only had the chance to own 30% (before repaying the mortgage) of the new one? And both houses, when paid off, were about 80% of your net worth? Would you be 80% in real estate? It's early here and I'm only into my first cup of coffee... I cannot parse your first sentence... Are you asking, "What if you owned the original home free and clear (no mortgage), and had a 30% down payment on the new home?" or are you asking, "What if you owned the original home free and clear (no mortgage), but are planning to mortgage it to come...
- Wed Mar 16, 2022 10:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: A "proper" home [financial goals before buying another house and renting original one]
- Replies: 22
- Views: 2658
Re: A "proper" home [financial goals before buying another house and renting original one]
What if you owned your original home but only had the chance to own 30% (before repaying the mortgage) of the new one? And both houses, when paid off, were about 80% of your net worth? Would you be 80% in real estate?HMSVictory wrote: ↑Wed Mar 16, 2022 5:28 am I would not keep my original home if I had a mortgage on it and I wasn't paying cash for the next one.
If you are going to own both outright then more power to you.
- Tue Mar 15, 2022 7:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: A "proper" home [financial goals before buying another house and renting original one]
- Replies: 22
- Views: 2658
A "proper" home [financial goals before buying another house and renting original one]
Hi all, I just wanted to ask:
What other financial goals would it make best sense to achieve before buying another house and renting your original one? I don't want to sell it but want to be somewhere else. This isn't a wish or something I've dreamed up but a real question.
What other financial goals would it make best sense to achieve before buying another house and renting your original one? I don't want to sell it but want to be somewhere else. This isn't a wish or something I've dreamed up but a real question.
- Sat Mar 12, 2022 3:08 pm
- Forum: Investing - Theory, News & General
- Topic: Reporting Tools?
- Replies: 15
- Views: 1485
Re: Reporting Tools?
I'm an engineer and my wife is a former software engineer. For us, we have our own custom spreadsheet where we track everything, automated reminders are set to tell us to rebalance, etc. The amount of automation is limited by your imagination and coding skills, but there are also limits regarding data sources and whether you have a way to download the info you need in a secure way. Sounds like you might be thinking you want to build something commercial for the masses? There are a number of tools out there that do a lot of what I care about, but none that do them all. Hence my own spreadsheets. The issue is, especially on a board like this is the "simplicity" vs. "complexity" thought processes. For me, simplicity or com...
- Fri Mar 11, 2022 10:24 pm
- Forum: Investing - Theory, News & General
- Topic: Reporting Tools?
- Replies: 15
- Views: 1485
- Fri Mar 11, 2022 6:58 pm
- Forum: Investing - Theory, News & General
- Topic: Reporting Tools?
- Replies: 15
- Views: 1485
Re: Reporting Tools?
Hi all, I'm a fellow Boglehead and use this forum somewhat regularly, and I'm also an index investor. I'm also a software engineer and have always been wondering what solutions are missing out there that could automate a lot of the things we do, like rebalancing (or realistically at least remind us to). Maybe a better research portal would be great. Better analytics that show performance comparisons. I know a lot of efforts around index investing are already "automated" by brokers already rebalancing to match the indexes, but there must be some niche that software hasn't yet filled. If you have any ideas that would give me a lot of food for thought. I'm an engineer and my wife is a former software engineer. For us, we have our ow...
- Fri Mar 11, 2022 11:43 am
- Forum: Investing - Theory, News & General
- Topic: Reporting Tools?
- Replies: 15
- Views: 1485
Re: Reporting Tools?
Thanks, the part I'm interested is an example of a point when updating a spreadsheet is starting to be more challenging.LadyGeek wrote: ↑Fri Mar 11, 2022 7:03 am For comparison, here's a "one size fits all" retirement planning spreadsheet: Retiree Portfolio Model
It can do everything you can possibly think of. If not, you can modify the formulas.
What's the downside? A lot of complexity and the user interface can be challenging.
For example, I've always wanted to have a sheet with all dividend distributions and not just update number of shares (assuming a portfolio where everything is reinvested). This gives an additional perspective, let's just say a trend in distributions (for lack of a better example).
- Fri Mar 11, 2022 11:34 am
- Forum: Investing - Theory, News & General
- Topic: Reporting Tools?
- Replies: 15
- Views: 1485
Re: Reporting Tools?
Hi all, I'm a fellow Boglehead and use this forum somewhat regularly, and I'm also an index investor. I'm also a software engineer and have always been wondering what solutions are missing out there that could automate a lot of the things we do, like rebalancing (or realistically at least remind us to). Maybe a better research portal would be great. Better analytics that show performance comparisons. I know a lot of efforts around index investing are already "automated" by brokers already rebalancing to match the indexes, but there must be some niche that software hasn't yet filled. If you have any ideas that would give me a lot of food for thought. I'm an engineer and my wife is a former software engineer. For us, we have our ow...
- Thu Mar 10, 2022 10:33 pm
- Forum: Investing - Theory, News & General
- Topic: Reporting Tools?
- Replies: 15
- Views: 1485
Reporting Tools?
Hi all, I'm a fellow Boglehead and use this forum somewhat regularly, and I'm also an index investor. I'm also a software engineer and have always been wondering what solutions are missing out there that could automate a lot of the things we do, like rebalancing (or realistically at least remind us to). Maybe a better research portal would be great. Better analytics that show performance comparisons. I know a lot of efforts around index investing are already "automated" by brokers already rebalancing to match the indexes, but there must be some niche that software hasn't yet filled. If you have any ideas that would give me a lot of food for thought.
- Fri Feb 18, 2022 9:49 am
- Forum: Personal Investments
- Topic: Investing around 529
- Replies: 4
- Views: 529
Investing around 529
Does it make sense to make separate/additional investments to 529? If we lump-sum place these additional funds into 529 and some portions are unused for college, will it make sense to transfer over to an index account? Have to pay taxes on that transfer when there are no family members left going to college. We're fine with starting out a separate fund as you'd have to pay taxes on unused 529 funds withdrawal anyway. However we've no idea how much college will end up costing anyway so that's the attraction of the 529.
- Tue Dec 28, 2021 5:30 pm
- Forum: Personal Investments
- Topic: Fidelity's Vanguard Fund Transfers
- Replies: 5
- Views: 730
Fidelity's Vanguard Fund Transfers
I invest through Fidelity into my 401k and they've been known to transfer funds a lot. I started out with VFORX then they transferred to VIRSX. Now they are transferring it back to VFORX in February 2022. My main question is why are they doing this? They would definitely not be doing this to make it less expensive to the investor - the VFORX expense ration is 0.14% and VIRSX is 0.09%. Is Fidelity fighting back some employer-initiated transfers to Vanguard's lower expense funds by moving them to high expense ones? Those are Vanguard expense ratios, not Fidelity's, so what's the point? Are there some commissions on these transfers? Here's the wording: This notification is being sent to you to notify you of a fund merger that is scheduled to t...
- Mon Dec 20, 2021 1:41 pm
- Forum: Personal Investments
- Topic: Reallocate or not to reallocate
- Replies: 2
- Views: 374
Reallocate or not to reallocate
Hello there fellow Bogleheads, Per the age = bond allocation rule it's quite clear the below portfolio should be updated but I wanted to post this anyway because nothing is ever that simple. We're both 40 years old and our combined allocation is 80% US stocks, 15% US bonds, and 5% international. Here is the breakdown. 43% Vanguard Institutional Target Retirement 2040 Fund Institutional Shares 46% Vanguard Institutional Index Fund Institutional Plus Shares 4% Vanguard Emerging Markets Stock Index Fund Institutional Shares 7% Vanguard Total Bond Market Index Fund Institutional Shares Because we still have some working life ahead we were also wondering whether we should only adjust the contribution or do asset reallocation as well. On that que...
- Wed Aug 04, 2021 4:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: A different direction [good business to start after 20 years in IT]
- Replies: 1
- Views: 430
- Wed Aug 04, 2021 3:24 pm
- Forum: Personal Investments
- Topic: Table showing amount of decline for various stock/bond allocations
- Replies: 5
- Views: 722
Re: Table showing amount of decline for various stock/bond allocations
- Wed Aug 04, 2021 2:51 pm
- Forum: Personal Investments
- Topic: Table showing amount of decline for various stock/bond allocations
- Replies: 5
- Views: 722
Re: Table showing amount of decline for various stock/bond allocations
Thanks, but a 100% of equity in a diversified portfolio could also go below 50%.
- Wed Aug 04, 2021 1:54 pm
- Forum: Personal Investments
- Topic: Table showing amount of decline for various stock/bond allocations
- Replies: 5
- Views: 722
Table showing amount of decline for various stock/bond allocations
Hello, how is this a table below showing the amount of decline for various stock/bond allocations? This is by author Larry Swedroe from 1970s.
Max Equity - Exposure Max loss
20%...............5%
30%..............10%
40%..............15%
50%..............20%
60%..............25%
70%..............30%
80%..............35%
90%..............40%
100%.............50%
If you have max 100% equity in a portfolio you can easily lose 100% if you're invested in a stock that fails. Can someone help me understand this table?
Max Equity - Exposure Max loss
20%...............5%
30%..............10%
40%..............15%
50%..............20%
60%..............25%
70%..............30%
80%..............35%
90%..............40%
100%.............50%
If you have max 100% equity in a portfolio you can easily lose 100% if you're invested in a stock that fails. Can someone help me understand this table?
- Wed Jun 30, 2021 10:12 pm
- Forum: Personal Investments
- Topic: VTSAX June 2021 dividend question
- Replies: 3
- Views: 841
Re: VTSAX June 2021 dividend question
Ok. I just divided the dividend amount by the holdings in that fund. The holding amount almost definitely changed after the dividend was made.
- Wed Jun 30, 2021 9:54 pm
- Forum: Personal Investments
- Topic: VTSAX June 2021 dividend question
- Replies: 3
- Views: 841
VTSAX June 2021 dividend question
Hopefully a very quick question.
Vanguard announced VTSAX 1.25% dividend for 6/23 but it appears that the dividend was 1.1987%.
Any ideas?
Vanguard announced VTSAX 1.25% dividend for 6/23 but it appears that the dividend was 1.1987%.
Any ideas?
- Wed May 13, 2020 1:57 pm
- Forum: Personal Investments
- Topic: Adjusting allocation
- Replies: 4
- Views: 529
Re: Adjusting allocation
- Mon May 11, 2020 9:08 pm
- Forum: Personal Investments
- Topic: Adjusting allocation
- Replies: 4
- Views: 529
Adjusting allocation
Hello,
Is this the right 401k allocation for a couple that's both 43 years old?
(Person 1) VFORX - 42.72%
(Person 2) VIIIX - 42.72%
(Person 2) VEMIX - 4.78%
(Person 2) VBTIX - 9.78%
The issue is that although it's wise to reallocate to more bonds, such move is problematic in the current market as a result of the pandemic. There is time to recover the value but I wanted to see what others think.
Is this the right 401k allocation for a couple that's both 43 years old?
(Person 1) VFORX - 42.72%
(Person 2) VIIIX - 42.72%
(Person 2) VEMIX - 4.78%
(Person 2) VBTIX - 9.78%
The issue is that although it's wise to reallocate to more bonds, such move is problematic in the current market as a result of the pandemic. There is time to recover the value but I wanted to see what others think.
- Mon May 13, 2019 6:32 pm
- Forum: Personal Investments
- Topic: Quick retirement startup
- Replies: 9
- Views: 1855
Re: Quick retirement startup
that's a fine choice, but I'm wondering if you have other options as well. For instance, I find it hard to believe you only have an 80/20 fund but not a 60/40 or 30/70 as well. My plan has all those three. I was surprised they didn't have 80/20, 60/40, 40/60 and 20/80 (like lifestrategy funds) but I guess those three are close "enough". So I would be 80/20 for a while, then switch to 60/40 for a while then use 30/70 in retirement as an example (my plan has no target date retirement fund so that would be the next best option in lieu of rebalancing holding separate stock and bond funds in whatever allocations I so desire, which is another option. are you only choices really only: 1. 80/20 2. target date retirement fund 3. individua...
- Mon May 13, 2019 6:25 pm
- Forum: Personal Investments
- Topic: Quick retirement startup
- Replies: 9
- Views: 1855
Re: Quick retirement startup
So what you are saying is that target date retirement funds charge for "automatic" reallocation that investors pay?
The information page on Vanguard site for the target retirement funds does not disclose any information whatsoever besides the regular fees. There is even a comparison to other "similar funds" that shows those other funds as three or four times more expensive.
The information page on Vanguard site for the target retirement funds does not disclose any information whatsoever besides the regular fees. There is even a comparison to other "similar funds" that shows those other funds as three or four times more expensive.
- Mon May 13, 2019 11:42 am
- Forum: Personal Investments
- Topic: Quick retirement startup
- Replies: 9
- Views: 1855
Re: Quick retirement startup
It’s with Fidelity... Do they charge each time they rebalance?fortfun wrote: ↑Sun May 12, 2019 8:34 pmYes. What fee does your 401k charge?zratis wrote: ↑Sun May 12, 2019 8:31 pm For the first 20 years of employment I had 80/20 stock and bond allocation and now to save myself the hassle of rebalancing consistently I am thinking about the target date fund. My company has VFORX. Does it make sense to switch over from 80/20 to a target retirement fund if you don't want to rebalance the allocation every year?
https://investor.vanguard.com/mutual-fu ... file/VFORX
- Sun May 12, 2019 8:31 pm
- Forum: Personal Investments
- Topic: Quick retirement startup
- Replies: 9
- Views: 1855
Quick retirement startup
For the first 20 years of employment I had 80/20 stock and bond allocation and now to save myself the hassle of rebalancing consistently I am thinking about the target date fund. My company has VFORX. Does it make sense to switch over from 80/20 to a target retirement fund if you don't want to rebalance the allocation every year?
https://investor.vanguard.com/mutual-fu ... file/VFORX
https://investor.vanguard.com/mutual-fu ... file/VFORX
- Thu Mar 28, 2019 8:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: When were you able to max out your 401k, IRAs?
- Replies: 69
- Views: 7819
- Thu Jan 17, 2019 10:54 pm
- Forum: Personal Investments
- Topic: Investment switch without my knowledge
- Replies: 4
- Views: 694
Investment switch without my knowledge
Hello, I had a portfolio of the following funds in my 401k: 25% FXAIX 25% VTSNX 30% FSEVX 20% VBTIX I left this investment allocation as is and left the company for another. The old company was sold and it looks like they've shifted my allocations to some other funds they are not disclosing names of: 30% SM MID CAP EQTY INDX 27% LRG CAP EQTY INDX 23% INTL EQTY INDX 20% BOND INDX FUND So as you can see the allocations held somewhat. The more concerning question I have is what are the exact funds this new company is using? Also all of the above "funds" have inception date of 8/31/2018, and their life time returns are: -19.70% SM MID CAP EQTY INDX -13.00% 27% LRG CAP EQTY INDX -11.60% INTL EQTY INDX +1.00% BOND INDX FUND Their YTD re...
- Mon Sep 10, 2018 9:37 pm
- Forum: Personal Investments
- Topic: Switching investment fund
- Replies: 9
- Views: 848
Re: Switching investment fund
I expected so, thank you. I haven't touched the funds in while, thought that perhaps there would be some way to transfer the value of shares from one fund to another at Vanguard.
- Mon Sep 10, 2018 9:36 pm
- Forum: Personal Investments
- Topic: Switching investment fund
- Replies: 9
- Views: 848
- Sun Sep 09, 2018 9:55 pm
- Forum: Personal Investments
- Topic: Switching investment fund
- Replies: 9
- Views: 848
Switching investment fund
If I switch one investment fund into another fund completely will I pay taxes? Let's say I want to switch from VTRIX to VTCAX, just as an example.
Thank you.
Thank you.