Search found 2116 matches

by Artsdoctor
Fri Aug 26, 2016 8:09 pm
Forum: Investing - Theory, News & General
Topic: "How to Tell if Your Retirement Nest Egg Is Big Enough"
Replies: 39
Views: 7473

Re: "How to Tell if Your Retirement Nest Egg Is Big Enough"

Bill Bernstein's perspective is extremely healthy and worth remembering: Low yields are driving some people crazy -> people chucked fixed income and fled to stocks for yield -> pushed up the value of stocks way beyond what should've occurred with fundamentals -> those with a healthy equity allocatio...
by Artsdoctor
Fri Aug 26, 2016 8:02 pm
Forum: Investing - Theory, News & General
Topic: My only fund not in the red today...how about you?
Replies: 12
Views: 529

Re: My only fund not in the red today...how about you?

Cash wasn't down. Either were any of the muni bonds I hold.

Don't look if it's going to bother you!
by Artsdoctor
Fri Aug 26, 2016 7:58 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 265
Views: 30403

Re: TIPS - Did you give up?

"Relatively expensive" means compared to prior years. If you were to set up a TIPS ladder now, you'd pay a hefty price tag compared to at almost any time in the past for the same ladder. I set up a TIPS ladder which matures, roughly, between the ages of 65 and 85. When I was doing it, I wa...
by Artsdoctor
Fri Aug 26, 2016 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else make this mistake? [include home as retirement income]
Replies: 10
Views: 694

Re: Anyone else make this mistake? [include home as retirement income]

Most people would not include their home value in planning for an income stream in retirement. However, I suspect that you're going to see more and more ways to tap your equity. You should take a look at Wade Pfau's article and see if that helps alleviate some of your pain: http://www.thinkadvisor.c...
by Artsdoctor
Wed Aug 24, 2016 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Young man in a bind/car totalled/no insurance
Replies: 38
Views: 3495

Re: Young man in a bind/car totalled/no insurance

Luigi, This must be difficult for you to watch. The posters above have suitably pummeled the driver and the ramifications could be severe, and with good reason. He was irresponsible, he broke the law, and he endangered other drivers on the road on several levels. The other driver's insurance will pa...
by Artsdoctor
Wed Aug 24, 2016 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard discouraging investing with Prime MM
Replies: 10
Views: 1844

Re: Vanguard discouraging investing with Prime MM

This is not Vanguard's decision. National money market reform has really created a hassle for everyone. https://investor.vanguard.com/mutual-funds/money-market-reform/ If you truly love Prime Money Market, you can always transfer money into and out of it--from your Federal Money Market. And it won't...
by Artsdoctor
Wed Aug 24, 2016 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion or Tax Gain Harvest?
Replies: 6
Views: 598

Re: Roth Conversion or Tax Gain Harvest?

This is a perfect opportunity to convert some of your IRA money to a Roth and I'd begin there.

If you're charitably inclined, I'd open a Donor Advised Fund and start transferring over the highly appreciated shares of your "expensive" fund.
by Artsdoctor
Wed Aug 24, 2016 8:22 am
Forum: Investing - Help with Personal Investments
Topic: TIPS ladder - Have experience?
Replies: 11
Views: 868

Re: TIPS ladder - Have experience?

Nisi, As someone who detests getting any letter from the IRS, I can sympathize with your trauma. Although there will always be exceptions to any rule, I'd strongly recommend to anyone who is inclined to do so, that individual TIPS be held in tax-advantaged accounts. I'm pretty good at keeping meticu...
by Artsdoctor
Tue Aug 23, 2016 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: No 401k, what are my options for retirement savings?
Replies: 6
Views: 657

Re: No 401k, what are my options for retirement savings?

TRaditional IRA is not an option, since I am above the income limits. I think if your employer doesn't offer a retirement plan, you can contribute to a Traditional IRA and claim the deduction without regard to your income level. https://www.irs.gov/retirement-plans/ira-deduction-limits Yes. The IRS...
by Artsdoctor
Tue Aug 23, 2016 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS ladder - Have experience?
Replies: 11
Views: 868

Re: TIPS ladder - Have experience?

I can speak to this. I have a TIPS ladder set to mature between ages 65-85. There are some holes in maturing TIPS (2033-2039 and 2030-2031) but you can work around that. It won't be possible to set up a true retirement ladder without getting involved with the secondary market although you can certai...
by Artsdoctor
Mon Aug 22, 2016 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: State imposes fine for underwitholding after a Roth conversion
Replies: 11
Views: 943

Re: State imposes fine for underwitholding after a Roth conversion

Does your state have safe harbor amounts? 90% of this year's tax liability, 100% of last year's, etc.? Some states just follow the federal rules whereas others have their own peculiarities.
by Artsdoctor
Mon Aug 22, 2016 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: How do you view debt?
Replies: 101
Views: 5404

Re: How do you view debt?

I don't view debt as inherently evil. I don't know how I could've bought my home without a mortgage or gone to medical school without a loan. Throughout "accumulation mode," I limited my debt to something that had the potential to appreciate financially (a home, an education). As I near th...
by Artsdoctor
Mon Aug 22, 2016 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: HSA - Can you withdraw from the HSA an amount equal to my past medical expenses?
Replies: 39
Views: 3391

Re: HSA - Can you withdraw from the HSA an amount equal to my past medical expenses?

One more thought/question... I assume you would be required to take the future mileage reimbursement at whatever mileage rate is in effect at the time you incurred the expense, correct? Excellent question. I'm curious if anyone has any insight to this. You can log on to irs.gov and search for Publi...
by Artsdoctor
Mon Aug 22, 2016 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Tax advice on withdrawing from an IRA
Replies: 6
Views: 304

Re: Tax advice on withdrawing from an IRA

Holley, There are a couple of things you need to do. We talk here about marginal tax rates. Unfortunately, the tax law has become so complex that it's almost impossible to "guess" your marginal tax rate unless you have extremely easy tax returns. You would do yourself a really huge favor b...
by Artsdoctor
Mon Aug 22, 2016 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Tax advice on withdrawing from an IRA
Replies: 6
Views: 304

Re: Tax advice on withdrawing from an IRA

^ Just to clarify, the NIIT of 3.8% does not apply to disbursement itself from your qualified retirement plan. The large distribution would subject your investment income to the 3.8% NIIT.
by Artsdoctor
Sat Aug 20, 2016 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Help - can you transfer in-kind within Vanguard?
Replies: 8
Views: 661

Re: Help - can you transfer in-kind within Vanguard?

Sperry, So roughly, you're talking about $120,000 or so? It's going to be more efficient to hold onto it. Your dividends might be about $3,600 per year? Versus the capitals gains of $16,000? If it were me, I'd probably wait for rates to rise and then sell when the capital gains would be minimal, or ...
by Artsdoctor
Fri Aug 19, 2016 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Moving 4M from Goldman. retired and needs 200K/Y
Replies: 33
Views: 4813

Re: Moving 4M from Goldman. retired and needs 200K/Y

A word of caution with firecalc. Remember that your spending during "retirement" will change. If you're supporting parents, that will not remain constant so one would presume that your basic expenses may decrease. Additionally, you're going to be getting social security eventually so that ...
by Artsdoctor
Wed Aug 17, 2016 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Help - How to deposit a check without endorsement?
Replies: 37
Views: 3266

Re: Help - How to deposit a check without endorsement?

I hate to be a stickler here, but bear in mind that we're really not supposed to be recommending anything illegal. Although we can all come up with a trusted friend or family member who'd forge our signatures in a pinch, I don't think we should be advocating it formally on the forum. Let's give him ...
by Artsdoctor
Wed Aug 17, 2016 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help - can you transfer in-kind within Vanguard?
Replies: 8
Views: 661

Re: Help - can you transfer in-kind within Vanguard?

What type of tax-advantaged account are you talking about? You'd hate to generate income tax when all you'd be expected to pay is capital gains.
by Artsdoctor
Wed Aug 17, 2016 12:00 pm
Forum: Investing - Theory, News & General
Topic: Someone wants to pay me to manage their finances
Replies: 46
Views: 4136

Re: Someone wants to pay me to manage their finances

Anytime you accept money, you're essentially running a business. You will be responsible for your actions and you will be susceptible to liability. Why would you do this? Agree with the above. Sit down, discuss goals, use something really focused and simple (the 3 Fund Portfolio will do), make a cas...
by Artsdoctor
Wed Aug 17, 2016 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Help - How to deposit a check without endorsement?
Replies: 37
Views: 3266

Re: Help - How to deposit a check without endorsement?

Have a great time!

Why not just have a stamp made with your signature? You can have a friend or relative stamp the check and deposit it for you.
by Artsdoctor
Tue Aug 16, 2016 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Moving 4M from Goldman. retired and needs 200K/Y
Replies: 33
Views: 4813

Re: Moving 4M from Goldman. retired and needs 200K/Y

NYC, I would really look back, preferably over the past couple of years, and find out what you're spending your money on. There are essential expenses and there are aspirational expenses. I suspect that you'll be able to decrease some of your current expenses although can't be sure. As it stands rig...
by Artsdoctor
Tue Aug 16, 2016 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for clarification on IRA Rollover One-Per-Year rule
Replies: 16
Views: 555

Re: Looking for clarification on IRA Rollover One-Per-Year rule

^ Spirit Rider's idea is the best, regarding taking the second and third distributions and converting to a Roth. There will be income tax to be paid, but there will be no penalty.
by Artsdoctor
Tue Aug 16, 2016 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for clarification on IRA Rollover One-Per-Year rule
Replies: 16
Views: 555

Re: Looking for clarification on IRA Rollover One-Per-Year rule

In your example, the IRA owner had one shot within one 365-day period. He should have withdrawn as much as he needed from one account, once, within that 365-day period in order to avoid penalties. The rule was put in place in order to limit the extent to which IRA owners could take tax-free loans fr...
by Artsdoctor
Tue Aug 16, 2016 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Looking for clarification on IRA Rollover One-Per-Year rule
Replies: 16
Views: 555

Re: Looking for clarification on IRA Rollover One-Per-Year rule

Hello: In 2014, IRS issued new guidance on IRA rollovers which said that the one-per-year rule applies to an individual's IRAs in aggregate, rather than on an account-by-account basis. Then there was some further clarification in November 2014. The original langugage surrounding the allowability an...
by Artsdoctor
Mon Aug 15, 2016 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any reason to wait [to do a 2016 Roth conversion]
Replies: 21
Views: 1817

Re: Is there any reason to wait [to do a 2016 Roth conversion]

Engineer, If the amount of federal tax you've had withheld in 2016 is 90% or more of the total tax bill due, you're fine and there will be no penalty. Or, if you've withheld 100% of your 2015 total tax bill from your paycheck for 2016 (or 110% if you're a higher earning individual), there will be no...
by Artsdoctor
Mon Aug 15, 2016 5:11 pm
Forum: Investing - Theory, News & General
Topic: Tax drag reported by Morningstar for index funds is high
Replies: 19
Views: 2175

Re: Tax drag reported by Morningstar for index funds is high

Morningstar itself uses 39.6% for ordinary income and 15% for capital gains taxes for their calculations. It excludes state and city taxes. And that alone should give you pause. People paying 39.6% federal tax are subjected to 20% capital gains tax. I think that M* numbers are more for illustration,...
by Artsdoctor
Mon Aug 15, 2016 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any reason to wait [to do a 2016 Roth conversion]
Replies: 21
Views: 1817

Re: Is there any reason to wait [to do a 2016 Roth conversion]

^ I realize that there are benefits to filing extensions and in the past, I've done so. Over the past several years, I've tried to be cognizant of things to do to reduce the risk of IRS identity theft. One of them is to try and file early. This isn't always possible but once I have the information I...
by Artsdoctor
Sat Aug 13, 2016 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: any rule of thumb for umbrella insurance?
Replies: 8
Views: 1017

Re: any rule of thumb for umbrella insurance?

I actually don't think it's a question of your current net worth alone. It's your earning potential as well. There's a lot that goes into the equation.
by Artsdoctor
Sat Aug 13, 2016 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any reason to wait [to do a 2016 Roth conversion]
Replies: 21
Views: 1817

Re: Is there any reason to wait [to do a 2016 Roth conversion]

^ I've not had to recharacterize but I helped a friend who also received an IRS notice for improper recharacterization. It also worked out in the end but it required more time and energy than I really cared for. And who wants a letter from the IRS? And as far as recharacterization late in the next y...
by Artsdoctor
Sat Aug 13, 2016 9:06 am
Forum: Personal Finance (Not Investing)
Topic: any rule of thumb for umbrella insurance?
Replies: 8
Views: 1017

Re: any rule of thumb for umbrella insurance?

I'm not sure if there's a rule of thumb. Some parts of the country are higher risk so that factors into the equation. If you expect your net worth to grow and you have a family, that would also weigh in on increasing the policy. Umbrella insurance is so inexpensive that that also weighs in in favor ...
by Artsdoctor
Sat Aug 13, 2016 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Is there any reason to wait [to do a 2016 Roth conversion]
Replies: 21
Views: 1817

Re: Is there any reason to wait [to do a 2016 Roth conversion]

Sure. If you're not really sure what your marginal tax rate will be, I wouldn't convert until I had a firm grasp on that. Bear in mind that marginal rate isn't necessarily the same as your "tax bracket." Why not? You can recharacterize it. You can. To me, it's more paperwork than I care f...
by Artsdoctor
Fri Aug 12, 2016 10:38 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing while being mindful of gains
Replies: 9
Views: 918

Re: Rebalancing while being mindful of gains

^ Fully concur with above. In addition, you can "rebalance" by directing new money to where it's needed most. By doing that, as well as directing dividends to where they are needed, you will infrequently need to be realizing a gain. As mentioned, since most of your assets will be in a taxa...
by Artsdoctor
Fri Aug 12, 2016 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any reason to wait [to do a 2016 Roth conversion]
Replies: 21
Views: 1817

Re: Is there any reason to wait [to do a 2016 Roth conversion]

Sure. If you're not really sure what your marginal tax rate will be, I wouldn't convert until I had a firm grasp on that. Bear in mind that marginal rate isn't necessarily the same as your "tax bracket."
by Artsdoctor
Thu Aug 11, 2016 11:43 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Life Strategy Funds
Replies: 32
Views: 3536

Re: Vanguard Life Strategy Funds

At the Bogleheads conferences, we have heard Jack Bogle recommend the Vanguard Balanced Index fund, which is 60/40 all US stocks and bonds, no international. Expense ratio is .08, which is a bargain. This fund does not get much discussion on this forum, but could be another consideration for a good...
by Artsdoctor
Thu Aug 11, 2016 11:38 pm
Forum: Investing - Theory, News & General
Topic: Anyone looking at changing AA in presence of Current Valuations?
Replies: 71
Views: 3288

Re: Anyone looking at changing AA in presence of Current Valuations?

No change in AA here. However, I have this nagging feeling that valuations are a bit rich so I've just transferred over appreciated US equity shares to our Donor Advised Fund. I don't want to be accused of market timing; I was going to make a contribution anyway. Tax planning is yearlong but it's Au...
by Artsdoctor
Thu Aug 11, 2016 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Questions on withdrawing retirement $'s
Replies: 15
Views: 1907

Re: Questions on withdrawing retirement $'s

I suggest you read the following about retirement withdrawal strategies: http://www.caniretireyet.com/the-best-retirement-withdrawal-strategies-digging-deeper/ The article, and its earlier version, are really about how to withdraw and rebalance. According to Mr. Kirkpatrick's models, how you withdr...
by Artsdoctor
Thu Aug 11, 2016 9:50 am
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 66
Views: 15685

Re: HSAs in California

Bnes, Try using a software program to keep track of your transactions. At the end of the year, you can print out dividends and capitals gains/losses. You'd benefit from doing it anything with your taxable accounts. Occasionally, you can spot an error on your 1099 when you reconcile and it's easier t...
by Artsdoctor
Wed Aug 10, 2016 6:04 pm
Forum: Investing - Theory, News & General
Topic: Take more $$ from IRA and pay taxes now?
Replies: 7
Views: 746

Re: Take more $$ from IRA and pay taxes now?

The IRS rules are detailed but I find that they're not well-written. In fact, #Cruncher quotes a table from the IRS that would imply that if there are multiple non-spouse beneficiaries, then the RMDs are based on the oldest beneficiary's life expectancy table. In fact, this is not necessarily the ca...
by Artsdoctor
Wed Aug 10, 2016 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary for young investors?
Replies: 58
Views: 3222

Re: Are bonds necessary for young investors?

"Dry powder" is simply the ability to buy when something's on sale. We would general apply to term buying equities when they've taken a significant hit. Bonds can fulfill several functions in a portfolio--not just one. This is one of them. If you're at the beginning of your investment care...
by Artsdoctor
Wed Aug 10, 2016 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 66
Views: 15685

Re: HSAs in California

The main bummer I've found is that the HSA custodians are not California aware, so they don't report out the gains that California filers need :annoyed It's not that big of a deal to keep track of this on your software. I've been doing this for many years and the hassle-factor is very small in the ...
by Artsdoctor
Wed Aug 10, 2016 3:39 pm
Forum: Investing - Theory, News & General
Topic: Take more $$ from IRA and pay taxes now?
Replies: 7
Views: 746

Re: Take more $$ from IRA and pay taxes now?

"It would be a balancing act to make the best decision possible." This would be relatively easy to do with tax software. The new versions usually come out around Thanksgiving each year so you have the month of December to make an informed decision regarding amounts to pull out of your IRA....
by Artsdoctor
Wed Aug 10, 2016 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary for young investors?
Replies: 58
Views: 3222

Re: Are bonds necessary for young investors?

Investors panic. This has been shown time and time again. It would be a rare investor that just keeps adding money to an all-stock portfolio even during gargantuan bear markets. Bonds may help soften the blow and may even allow you to buy more stocks in a down market than you normally could with ear...
by Artsdoctor
Wed Aug 10, 2016 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs bond funds
Replies: 17
Views: 1811

Re: Bonds vs bond funds

^ Premium bonds are amortized to the call date, not the maturity date. The cash flow will remain the same because the cash flow depends on the coupon. Your taxes will be influenced by the amortization (if it is out of state); if your muni is in-state (and it's not subject to the AMT), your taxes wil...
by Artsdoctor
Tue Aug 09, 2016 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Questions on withdrawing retirement $'s
Replies: 15
Views: 1907

Re: Questions on withdrawing retirement $'s

BC, If you withdraw the same percentage from each fund, you'd ultimately have a higher equity asset allocation; this assumes that equity returns would generally be higher than fixed income return in the long run (of course, this could be erroneous). Your asset allocation helps control your risk. You...
by Artsdoctor
Tue Aug 09, 2016 4:39 pm
Forum: Investing - Theory, News & General
Topic: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt
Replies: 59
Views: 4567

Re: New Fiduciary cases, about 403b's at MIT, Yale, & NYU

^ I have worked with three friends regarding putting pressure on their HR departments to offer Institutional shares after originally offering Investor shares. All three work at very large institutions so I can't say if it's applicable to small plans, but all three ultimately changed to Institutional...
by Artsdoctor
Tue Aug 09, 2016 4:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgrading to Brokerage account comes with some nuisances
Replies: 66
Views: 6719

Re: Vanguard upgrading to Brokerage account comes with some nuisances

I don't know how many of the above posters have voice recognition at Vanguard but that has served as a workaround for a lot of paperwork that used to require a notary or signature guarantee. If you haven't already signed up for voice recognition, make sure you've done it.
by Artsdoctor
Tue Aug 09, 2016 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs bond funds
Replies: 17
Views: 1811

Re: Bonds vs bond funds

^ I'm not disagreeing that you may well purchase a bond at a discount and not owe income tax if it falls within the "de minimus" rule. However, one should always be aware of that calculation when purchasing a bond at discount because if you're wrong, you're going to owe income tax at bond ...
by Artsdoctor
Tue Aug 09, 2016 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs bond funds
Replies: 17
Views: 1811

Re: Bonds vs bond funds

^ What might work for you might not work for another, so "the best" is subjective. For me, I would almost always avoid discount bonds for several reasons. You're right that if the discount is small, you would not be subject to income tax (there's is a "de minimus" formula for tha...

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