Search found 1378 matches

by Chip
Thu Jul 20, 2017 5:21 am
Forum: Investing - Theory, News & General
Topic: Complex (profitable?) Roth Conversion Strategy
Replies: 21
Views: 1329

Re: Complex (profitable?) Roth Conversion Strategy

Thanks for the sanity check on this Chip. I'm sure that there are other Roth converting Bogleheads who are holding stocks in Roth and maximizing bonds in their remaining tIRA; but I just hadn't seen this strategy mentioned before. Though I'm sure you know this and omitted it for clarity, in your Ye...
by Chip
Wed Jul 19, 2017 2:32 pm
Forum: Investing - Theory, News & General
Topic: No "sequence of returns risk" what to do about withdrawals
Replies: 35
Views: 2680

Re: No "sequence of returns risk" what to do about withdrawals

Interesting approach-- how did you arrive at it? Why do you feel it is low-risk? TIA Sorry for the delay in replying. Real life interfered. :) It's a just a logical result (at least to me) of the "riddle" that Thesaints referred to. Here's another way the riddle plays out: Imagine A and B...
by Chip
Wed Jul 19, 2017 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund and taxes
Replies: 9
Views: 480

Re: Donor Advised Fund and taxes

If the capital gains were long term the fair market value of the shares at the time of donation will be a non-cash charitable donation. So if you purchased your shares for $3,000 and they were worth $5,000 when you donated them, your Schedule A deduction would be $5,000. If your total non-cash gifts...
by Chip
Wed Jul 19, 2017 11:32 am
Forum: Personal Consumer Issues
Topic: Dutch Elm Disease looming, maybe. Should I fight it?
Replies: 15
Views: 1447

Re: Dutch Elm Disease looming, maybe. Should I fight it?

Unless you it is a very isolated elm tree, I doubt that this is Dutch Elm disease. It first came to our area in the 1960's and rarely do you see any elm tree survive to that size unless it is very isolated, i.e. in a rural location with no trees around. Not all areas of the country have been affect...
by Chip
Wed Jul 19, 2017 11:19 am
Forum: Investing - Theory, News & General
Topic: Complex (profitable?) Roth Conversion Strategy
Replies: 21
Views: 1329

Re: Complex (profitable?) Roth Conversion Strategy

Yes, it can work. It's what I'm now doing as the tIRAs are all 100% bonds.
by Chip
Wed Jul 19, 2017 5:57 am
Forum: Investing - Theory, News & General
Topic: A closer look at taxes/distributions: Fidelity vs. Vanguard
Replies: 15
Views: 1852

Re: A closer look at taxes/distributions: Fidelity vs. Vanguard

One other point: If the fund ever distributes short term capital gains, that would be considerably worse on a dollar for dollar basis. Those are taxed at the higher ordinary income tax rates, and cannot be cancelled out by harvested capital losses. I thought short term capital gains could be cancel...
by Chip
Sat Jul 08, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: Reuters Story on Used Car Market
Replies: 19
Views: 2330

Re: Reuters Story on Used Car Market

BUT - not as "interesting": Before electric wipers were common, cars had wipers powered from the engine (exhaust system somehow, I think). When you accelerated, the wipers slowed down. Then you could not see anything in a rainstorm. Car engines did not need the battery to run. If the batt...
by Chip
Sat Jul 08, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance - is it worth it?
Replies: 156
Views: 9401

Re: Long term care insurance - is it worth it?

In addition to the lifetime rider, you may need an inflation rider. For example 6K a month might pay half the monthly cost in a Connecticut facility today. When you submit a claim in 20 years, it may pay 25% of the cost. Where you live obviously makes a big difference. Right. The policy illustratio...
by Chip
Sat Jul 08, 2017 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance - is it worth it?
Replies: 156
Views: 9401

Re: Long term care insurance - is it worth it?

100,000 one time deposit without rider 6000 per month for 25 months with rider 5300 per month for life Husband 64 wife 63 100,000 4500 per month each for life or 6000 per year 4500 per month each Thank you! Just to be clear, in the first set of numbers, the premium is for a 65 year old single femal...
by Chip
Sat Jul 08, 2017 5:19 am
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance - is it worth it?
Replies: 156
Views: 9401

Re: Long term care insurance - is it worth it?

In my experience, no one buys these policies without the lifetime rider. Can you give us an illustration of policy premiums with and without the rider? For the example, let's say it's a 65 year old female in good health. When you have the rider what is the maximum annual reimbursement rate after th...
by Chip
Sat Jul 08, 2017 4:53 am
Forum: Investing - Theory, News & General
Topic: No "sequence of returns risk" what to do about withdrawals
Replies: 35
Views: 2680

Re: No "sequence of returns risk" what to do about withdrawals

A classic "riddle" is that assuming I retire on a million and the first year my capital increases to 1.1 millions due to good markets, what forbids me to declare "I was just joking when I said I was retiring last year. I'm only retiring this year and therefore I'll collect 44k, not j...
by Chip
Fri Jul 07, 2017 2:58 pm
Forum: Investing - Theory, News & General
Topic: Reuters Story on Used Car Market
Replies: 19
Views: 2330

Re: Reuters Story on Used Car Market

[...]people each "knew" just the trick to get their own car started. My instructions to the new owner of my 1970 GM product: Starting Procedures: Fuel drains back from the carb to the tank after it’s been sitting a while (more than a few days). That changes the starting procedure compared...
by Chip
Fri Jul 07, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: IRS Notice CP2000 for Tax Year 2015 Backdoor Roth
Replies: 5
Views: 660

Re: IRS Notice CP2000 for Tax Year 2015 Backdoor Roth

Thank you very much for the responses. Since it seems to be confirmed I made an error on both the 1040 and the 8606, what should my next course of action be? 1. Follow the instructions from the IRS agent, who seems to think my forms don't have an error? 2. Call the IRS back, talk to another agent a...
by Chip
Fri Jul 07, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: For retirement at 55 what is a good multiplier?
Replies: 43
Views: 4886

Re: For retirement at 55 what is a good multiplier?

I always cringe at giving a rule of thumb for amount of savings or withdrawal because these often ignore key factors such as other retirement income streams. When I say 30x or 25x or something like that, I'm always referring to net expenses that the portfolio has to cover. In other words, expense n...
by Chip
Fri Jul 07, 2017 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Advice Requested
Replies: 7
Views: 389

Re: Portfolio Review - Advice Requested

Hi Kim, and welcome! First, forget about what happened in the past. All of us have made investing mistakes. But you're headed to the right path now. That's all that is important. Questions: 1. We both have low cost index funds available to us. I’m trying to get my brain to consistently look at the p...
by Chip
Fri Jul 07, 2017 6:23 am
Forum: Personal Finance (Not Investing)
Topic: IRS Notice CP2000 for Tax Year 2015 Backdoor Roth
Replies: 5
Views: 660

Re: IRS Notice CP2000 for Tax Year 2015 Backdoor Roth

The agent gave you bad information. As you suspected, your forms are incorrect. 1. If your only IRA distributions were the backdoor Roth, 1040 Line 15a should be 5,500, 15b zero. Nothing from the annuity goes on these lines (annuity distributions would be on 1040 Line 16a & 16b unless the IRA bo...
by Chip
Thu Jul 06, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: For retirement at 55 what is a good multiplier?
Replies: 43
Views: 4886

Re: For retirement at 55 what is a good multiplier?

No one knows what the future will bring. But based on past history, something like 30x should be fine for a projected 40 year retirement.

With 24 years to go until retirement realize a lot of stuff can happen between now and then.
by Chip
Thu Jul 06, 2017 5:41 am
Forum: Personal Finance (Not Investing)
Topic: Retired, RSUs Vesting and Roth IRA contribution
Replies: 5
Views: 548

Re: Retired, RSUs Vesting and Roth IRA contribution

I don't have experience with RSUs, but I do know that non-qualified stock options exercised in retirement created W-2 income that was compensation eligible for contribution to IRAs, including spousal IRAs. I would be surprised if RSUs were treated significantly differently. The IRS says you must hav...
by Chip
Tue Jul 04, 2017 6:18 am
Forum: Personal Consumer Issues
Topic: Brake Pads and Rotors for 2011 Benz C300 4Matic?
Replies: 43
Views: 2557

Re: Brake Pads and Rotors for 2011 Benz C300 4Matic?

Since the OP is in New England, maybe he's best served by Tom & Ray: http://www.cartalk.com/content/i-am-about-change-brake-pads-my I've never "bedded" brake pads on any of the many brake jobs that I've done, though it certainly sounds reasonable. There's this quote from Tom & Ray...
by Chip
Mon Jul 03, 2017 5:17 am
Forum: Investing - Help with Personal Investments
Topic: Retirement withdrawal rates
Replies: 36
Views: 2504

Re: Retirement withdrawal rates

I accept your arguments that the 4% rule is not designed as a financial plan and that my objections to it are "not news". However, I am positive that financial planning advisors are currently recommending such fixed withdrawal rates and using research by Bierworth, Bengen, and others to j...
by Chip
Wed Jun 28, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis at new Schwab account for reinvesting dividends
Replies: 11
Views: 499

Re: Cost basis at new Schwab account for reinvesting dividends

livesoft wrote:ETF and stocks cannot use Average Cost Basis. Only mutual funds can use Average Cost Basis.


Kitces doesn't agree with you on ETFs. And neither does Fidelity.
by Chip
Wed Jun 28, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis at new Schwab account for reinvesting dividends
Replies: 11
Views: 499

Re: Cost basis at new Schwab account for reinvesting dividends

Well, I learned something. I didn't think ETFs were eligible for average cost treatment, but a quick search shows that some might be . At least Fidelity thinks so, but says it's ETF provider-dependent. Note that all of the choices on your form are a variant of specific ID, so all of your lots will b...
by Chip
Wed Jun 28, 2017 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Best Alternative to Vanguard (Taxable Investing)
Replies: 12
Views: 785

Re: Best Alternative to Vanguard (Taxable Investing)

Would Vanguard ETFs be allowed? If so, Schwab or Fidelity would be fine. Or buy Schwab ETFs at Schwab or Fidelity. Fidelity has very low cost index funds, but they aren't as tax efficient as similar cost ETFs.
by Chip
Mon Jun 26, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: A TIPS is maturing in Fidelity. What to do?
Replies: 44
Views: 2317

Re: A TIPS is maturing in Fidelity. What to do?

The Treasury is auctioning a 10 year TIPS new issue on 7/20. That would be another option for the proceeds.
by Chip
Mon Jun 26, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: A TIPS is maturing in Fidelity. What to do?
Replies: 44
Views: 2317

Re: A TIPS is maturing in Fidelity. What to do?

VictoriaF wrote:And I don't think I can just transfer TIPS from one custodian to another.

Victoria


Sure you can. I've done it.
by Chip
Mon Jun 26, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: A TIPS is maturing in Fidelity. What to do?
Replies: 44
Views: 2317

Re: A TIPS is maturing in Fidelity. What to do?

I have that same TIPS issue. I will be buying SCHP with the proceeds. It doesn't have the long duration of LTPZ but the ER is .05% vs. .20%.

In January I will swap the SCHP for a new 10 year TIPS issue at auction. 0% ER. :)
by Chip
Mon Jun 26, 2017 8:09 am
Forum: Personal Consumer Issues
Topic: Stupid Security Questions
Replies: 46
Views: 3740

Re: Stupid Security Questions

So my question is, how do you remember your security questions, especially when you have several accounts. And what dumb questions have others seen. Allan I keep mine in the notes section of Keepass, a password manager. I don't answer the questions with the real answer. I use Keepass to create a ra...
by Chip
Sun Jun 25, 2017 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: 58 years old and laid off seeking advices
Replies: 43
Views: 5516

Re: 58 years old and laid off seeking advices

Thank you Chip! You basically gave me a year by year plan all the way to our 70's. :happy I do have a simple question for you. Why 64k/year, 36+22+3+3, is in 25% tax bracket? ( laid off is still bothering me ) I thought it is between $75,901 and $153,100 for 2017. Your brackets are correct. I didn'...
by Chip
Sun Jun 25, 2017 8:58 am
Forum: Personal Consumer Issues
Topic: emerald ash borer disaster
Replies: 35
Views: 2074

Re: emerald ash borer disaster

I feel your pain. I have removed 19 ash trees from my yard since 2013. Most were 10-20" in diameter. For the four years prior to removal I attempted the soil drench treatment that Kenkat mentioned but it wasn't successful, probably due to the large size of the trees. Injection probably would ha...
by Chip
Sun Jun 25, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 56
Views: 4431

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

My reaction is that we should be good customers too. I am a Fidelity customer and in my Fidelity account, I have mostly Fidelity products. My holdings there are mostly index funds. To me it seems odd that you would go to Fidelity to buy Vanguard products, why not just go to Vanguard? A few bad expe...
by Chip
Sun Jun 25, 2017 6:50 am
Forum: Investing - Help with Personal Investments
Topic: 58 years old and laid off seeking advices
Replies: 43
Views: 5516

Re: 58 years old and laid off seeking advices

As others have said, you seem to be in fine shape financially for retirement. Assuming you are going to stay retired you have some tax planning opportunities between now and the year you turn 70, when social security and tIRA/401k RMDs start. RMDs start at 3.7% of account value and go up each year. ...
by Chip
Sat Jun 24, 2017 5:50 am
Forum: Personal Consumer Issues
Topic: HP Laptop - Black Screen - Help
Replies: 14
Views: 941

Re: HP Laptop - Black Screen - Help

I have had the LCD screen backlight fail on an older HP laptop. The screen looked black, but shining a bright light onto it at a close distance (like a good flashlight) showed that the screen was displaying data, I just couldn't see it under normal room lighting. So the previous suggestion to hook u...
by Chip
Thu Jun 22, 2017 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested:[Revised] Proposed Allocations in Prep for Retirement

For instance, I know that: 1. I don't want a portfolio that has 39 separate holdings across my IRA/401K space. As part of shifting from using a FA, I want to simplify and reduce expenses. Limited slice-and-dice would be ok--if I had a really compelling vision. 2. Willing to be a bit more risky for ...
by Chip
Thu Jun 22, 2017 6:10 am
Forum: Personal Finance (Not Investing)
Topic: MAGI and removing roth conversions
Replies: 3
Views: 552

Re: MAGI and removing roth conversions

-thanks for that response and history. Still has me perplexed as to they why behind it. In particular, until I ran across Worksheet 2-1, I had always thought both transactions were income and remained in the AGI and MAGI for ALL taxes and tests. Still not understanding why either and/or not both ar...
by Chip
Thu Jun 22, 2017 5:20 am
Forum: Investing - Help with Personal Investments
Topic: How to follow the 10-year Treasury
Replies: 6
Views: 407

Re: How to follow the 10-year Treasury

I am very familiar with how to find past/current quotes for certain types of things (Dow Jones, S&P 500, etc). I am much less confident of where to pull bond numbers from. Take for example the 10 year Treasury. How do I get past/current information on that? I use this WSJ page . You can look at...
by Chip
Wed Jun 21, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested:[Revised] Proposed Allocations in Prep for Retirement

My latest thinking is: 47% VTI Vanguard Total Stock Market ETF 10% VXUS Vanguard total International Stock 25% BIV Vanguard Intermediate-Term Bond 14% VCSH Vanguard Short-Term Corporate Bond 4% CASHX Cash Equivalents Here is the Backtest against the previous iteration. It seems to be a bit simpler ...
by Chip
Wed Jun 21, 2017 12:53 pm
Forum: Personal Consumer Issues
Topic: What is your car's average cost ownership?
Replies: 70
Views: 4921

Re: What is your car's average cost ownership?

2014 Chevrolet volt 1 year cost this year: $ 3898 depreciation $ 680 insurance $ 326 Taxes $ 1260 Fuel $ 100 maintenance $ 4300 parking $ 2700 meters, tolls and parking tickets (live in Boston. parking in midtown NYC is $50+) Total ~$11000 Indeed, there is a lot of selective accounting going on, es...
by Chip
Wed Jun 21, 2017 6:15 am
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested: Proposed Allocations in Prep for Retirement

So did this make you convert more aggressively? It probably will, but I haven't finished analyzing it yet. Up until this year we were regularly converting to the top of a bracket. Though we took some years off when other income filled that bracket (including 2013-16). So 2017 is the first conversio...
by Chip
Wed Jun 21, 2017 5:50 am
Forum: Personal Consumer Issues
Topic: What is your car's average cost ownership?
Replies: 70
Views: 4921

Re: What is your car's average cost ownership?

Previous thread here.

On a previous car mine worked out to $120/month, but that counts all maintenance, not just one set of tires. All in costs, including fuel, insurance, license, etc. worked out to $240/month.

You'll probably replace those 4 performance tires a few more times in 150k miles.
by Chip
Tue Jun 20, 2017 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested:[Revised] Proposed Allocations in Prep for Retirement

Backtest Analysis using Portfolio Visualizer Portfolio-1 Original Proposal, Portfolio -2 This Revision , Portfolio-3 Boglehead 3-Fund . This seems like a good improvement. As always, suggestions are appreciated . Just the usual caveats about past performance vs. future results. Something in me does...
by Chip
Tue Jun 20, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested: Proposed Allocations in Prep for Retirement

I will be into the 28% bracket and do expect to pay about $260/month (combined) additional. It seems a reasonable price to pay for getting funds into the Roth and avoiding much larger taxes once RMDs begin. It is still less than what I have to pay for medical before 65 so it feels like a bargain. T...
by Chip
Tue Jun 20, 2017 3:54 am
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested: Proposed Allocations in Prep for Retirement

There is some of the MegaCorp Stock available for NUA and this will be part of the 401K Rollover to the IRA (NUA stock will go to Taxable, its about $50,000 with a basis of $10,000). Okay, sounds like you have that covered. Do you plan to use that low basis stock for charitable contributions, livin...
by Chip
Mon Jun 19, 2017 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Review Requested:[Revised] Proposed Allocations in Prep for Retirement
Replies: 25
Views: 2022

Re: Review Requested: Proposed Allocations in Prep for Retirement

A couple of thoughts/questions: Is your mid-6 figure taxable account going to last until you take Social Security? I note you mentioned that you're going to perform Roth conversions "to fund living expenses". I don't understand this. Unless you withdraw from the Roth (or additional funds f...
by Chip
Tue Jun 13, 2017 10:49 am
Forum: Personal Consumer Issues
Topic: Watch Batteries
Replies: 53
Views: 2478

Re: Watch Batteries

Buy the batteries in bulk on Amazon and replace them yourself. Less than $1 apiece.
by Chip
Tue Jun 13, 2017 9:01 am
Forum: Personal Consumer Issues
Topic: House softener system
Replies: 39
Views: 2594

Re: House softener system

I'd be interested to know the amount of expense involved to retrofit the plumbing for a house not already plumbed for a softener. I'm sure it's highly variable, depending on access to the plumbing and the layout of the system. In my house I had to run about 30 feet of 1/2" copper for one hose ...
by Chip
Tue Jun 13, 2017 8:24 am
Forum: Personal Consumer Issues
Topic: House softener system
Replies: 39
Views: 2594

Re: House softener system

I doubt if you'll be able to tell that softened water has sodium in it. At your hardness level it doesn't taste salty. You're not going to think you're taking a shower in sea water. What you will notice is that you will be able to use much less soap and shampoo and that it will be easier to rinse of...
by Chip
Mon Jun 12, 2017 7:55 am
Forum: Personal Consumer Issues
Topic: House softener system
Replies: 39
Views: 2594

Re: House softener system

If you are really looking for a water softener a salt-based system is the way to go. They are the only reasonable cost systems I know of that will remove significant amounts of calcium and magnesium from the water. Ca and Mg significantly affect the performance of your washing machine and dishwasher...
by Chip
Thu Jun 08, 2017 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Can I really pay no capital gains on $100k?
Replies: 31
Views: 6127

Re: Can I really pay no capital gains on $100k?

Just checking -- #4, so if I sold 1 share post distribution date, it would always have a LT and ST gains component associated with it? The short term being any gain that happened between distribution date and sell date? That's my understanding for the first year after distribution, though I haven't...
by Chip
Mon Jun 05, 2017 3:14 pm
Forum: Investing - Theory, News & General
Topic: Best Roth conversion calculator?
Replies: 14
Views: 772

Re: Best Roth conversion calculator

It sure feels like you want a more complicated answer to a relatively simple question. The same one the Wiki proposes: Will your tax bracket be higher at time of conversion or at time of withdrawal? The math is that simple. I don't think it is that simple. As bsteiner has pointed out, since your tI...
by Chip
Sun Jun 04, 2017 8:44 am
Forum: Personal Consumer Issues
Topic: Mobile phone SIM advice for multiple countries in Europe
Replies: 24
Views: 890

Re: Mobile phone SIM advice for multiple countries in Europe

I used an earlier version of the Mobal SIM that provided unlimited data (2 or 3G) and free texts, but calls were 30c/minute. It worked well in Hungary & France. A second identical SIM worked well in Panama on another trip. Plus they both worked in the US on the T-Mobile network. So I could test ...

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