Search found 1207 matches

by Chip
Mon Apr 24, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Joint Checking Account - Fidelity CMA vs. Schwab?
Replies: 26
Views: 1034

Re: Joint Checking Account - Fidelity CMA vs. Schwab?

Just curious, was this a debit card purchase or an ATM withdrawal? There's an extensive thread over at Flyertalk that seems to suggest ATM withdrawals do not have the 1% fee. Not all the data is consistent, but they suggest that the fee, even when baked into the exchange rate, is refunded by Fideli...
by Chip
Mon Apr 24, 2017 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Joint Checking Account - Fidelity CMA vs. Schwab?
Replies: 26
Views: 1034

Re: Joint Checking Account - Fidelity CMA vs. Schwab?

CapitalOne may be a better card for international travel: 1.5% rebate, no (explicit) fee. Perhaps they stick you on that exchange rate, as well? I think the Cap One debit card is better. I just haven't bothered to get one. I mostly use the Cap One credit card with no foreign exchange fee for most p...
by Chip
Mon Apr 24, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Joint Checking Account - Fidelity CMA vs. Schwab?
Replies: 26
Views: 1034

Re: Joint Checking Account - Fidelity CMA vs. Schwab?

I think you mean the Fidelity 2% credit card, and yes I believe that is correct. I did not get any additional fees on my Fidelity debit card, at least in Italy and Switzerland last summer for withdrawing cash from bank ATM machines. Nope, I mean the debit card. I don't have the credit card. I agree...
by Chip
Mon Apr 24, 2017 6:49 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Questions and Review
Replies: 3
Views: 329

Re: Portfolio Questions and Review

A couple of other things.

1. Read the Bogleheads wiki (link at top right) if you haven't already. There is a ton of good information there.
2. Schwab has a lineup of very low cost ETFs that are worth considering. See those that are market cap-based here.
by Chip
Mon Apr 24, 2017 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Joint Checking Account - Fidelity CMA vs. Schwab?
Replies: 26
Views: 1034

Re: Joint Checking Account - Fidelity CMA vs. Schwab?

Also happy with Fidelity CMA account. As above, you can have separate log in/pw for spouse. Fidelity reimburses all ATM fees and no foreign transaction fees on ATM withdrawals. We used it on a trip to Italy/Switzerland last year and worked perfectly. Hmm. I've always paid 1% when using mine outside...
by Chip
Mon Apr 24, 2017 5:01 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Don't worry about where your order is getting routed. The market maker arena is hyper-competitive and you're going to get a good fill as a retail user as long as your security is moderately liquid. Depending on the broker you may even get filled on the bid for a buy order. Thanks, that's what I was...
by Chip
Sun Apr 23, 2017 3:50 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Marketable orders are going to be treated as market orders. This has to do with how the exchange fees and rebates work - the order that was there first gets treated one way (ie existing limit order, usually paid by the exchange), while the order that comes second (ie market or marketable limit) get...
by Chip
Sun Apr 23, 2017 2:51 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Transactions of DGS will be different than transactions of IJS will be different than transactions of VTI will be different than transactions of BND. Is there something different other than the liquidity of those ETFs? My question was: How does knowing that my limit order of IJS will be routed to B...
by Chip
Sun Apr 23, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Questions and Review
Replies: 3
Views: 329

Re: Portfolio Questions and Review

Hi, and welcome! You've obviously given this a good bit of thought. I suspect most here would say that 70/30 is awfully aggressive at age 59. Though I will admit to being at about that allocation at about that age. How did you sleep during the turmoil of 2008/9? Will you have significant pensions an...
by Chip
Sun Apr 23, 2017 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Changes (30 years old)
Replies: 5
Views: 295

Re: Portfolio Changes (30 years old)

You'll save a couple of hundred bucks a year doing this, so why not? And it will only grow with time. Don't put yourself in the straitjacket of having only one fund per account. Put two or more funds as needed in your largest account. You'll need them for rebalancing anyway. Most recommendations her...
by Chip
Sun Apr 23, 2017 6:45 am
Forum: Investing - Theory, News & General
Topic: Location of SPIAs, which account?
Replies: 49
Views: 1941

Re: Location of SPIAs, which account?

^ maybe today 2017, but in 2008-2012 purchase looks pretty good in relation to our gains and guarantees. And exceedingly good if the SPY establishes a mode of low growth, (4 real, 5-6 nominal) comes true. Have you seen this Michael Kitces analysis of a 2009-purchased VA with GLWB rider? It may not ...
by Chip
Sat Apr 22, 2017 3:53 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Chip, You can check out your broker's 606 report to see where they route market and limit orders. Below is Fidelity's. https://nationalfinancial.fidelity.com/app/item/RD_13569_21696/sec-rule-606.html Chances are your non marketable limit orders are routed to exchanges that pay rebates (NYSE, Nasdaq...
by Chip
Sat Apr 22, 2017 2:43 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Depends on what you're trading, but 100-200k is not a ton. You can buy something like $10M of SPY without going more than a single level into the book. I just do what you said, I send limit orders a couple ticks into the spread anytime in the afternoon. I only trade very liquid instruments though (...
by Chip
Sat Apr 22, 2017 12:53 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

As for your order, you actually cannot execute at 123.97 if there's another order order on any of the exchanges at better than 123.97 (Reg NMS protects best quotes). As for what happened, 99% of the time orders you submit through your broker never make it to an exchange. They first go to a place li...
by Chip
Sat Apr 22, 2017 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Understanding iShares initial investment index differences
Replies: 12
Views: 551

Re: Understanding iShares initial investment index differences

What do you see if you click on that little button that says "Why does the amount matter?"
by Chip
Sat Apr 22, 2017 9:41 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Thanks, Doc. I haven't found Level 2 at Fidelity. It's certainly not readily available on their standard trade screen. It would be nice to have.

It might be available through their Active Trader software. I haven't used that in quite a while.
by Chip
Sat Apr 22, 2017 7:22 am
Forum: Investing - Help with Personal Investments
Topic: Taxation of Treasury Bills (Question)
Replies: 8
Views: 532

Re: Taxation of Treasury Bills (Question)

Sorry. I didn't read your original post closely enough, then realized it after I posted, then edited my post (apparently while you were replying). For other readers, that's why the quote differs from my post. The short answer is that if interest rates stay the same (on that part of the yield curve),...
by Chip
Sat Apr 22, 2017 6:59 am
Forum: Investing - Help with Personal Investments
Topic: Taxation of Treasury Bills (Question)
Replies: 8
Views: 532

Re: Taxation of Treasury Bills (Question)

There will be an interest component and also a possible capital gain or loss. See IRS Pub 1212.
by Chip
Sat Apr 22, 2017 6:37 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Doc wrote:I recently got access to ARCA book. BATS is less efficient.


How did you get that access, Doc?
by Chip
Sat Apr 22, 2017 4:53 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Tweaking?
Replies: 3
Views: 333

Re: Asset Allocation Tweaking?

Stay the course. Tune out the noise. That's all there is to it.

You have an efficient, extremely low cost, well-diversified portfolio. Leave it alone.

I heard a nice little aphorism the other day:

"Your portfolio is like a bar of soap; the more you touch it the less you have."
by Chip
Sat Apr 22, 2017 4:10 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Reallocation Request
Replies: 14
Views: 901

Re: Portfolio Reallocation Request

I'm looking at the buy in as more of a dollar cost averaging mechanism than a timing one. I'm not looking for the bottom, just trying to not put a lump sum in at the top. I would think a monthly transfer over 6 months moving from 30/70 to 70/30 would be less risky. You can call it DCA, or you can c...
by Chip
Sat Apr 22, 2017 3:46 am
Forum: Personal Finance (Not Investing)
Topic: K-1 Distributions of Dividends
Replies: 13
Views: 862

Re: K-1 Distributions of Dividends

Ok so on my 1040 it still says the same thing just in 9a and 9b. So how can there be ordinary and qualified dividends for almost the same amount (The ordinary is $6 more...)? As pshonore has said, the qualified dividends are a subset of the total dividends. Qualified dividends plus non-qualified di...
by Chip
Fri Apr 21, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Do CDs make sense in an IRA
Replies: 4
Views: 600

Re: Do CDs make sense in an IRA

CDs are a fine choice. Just make sure they're FDIC insured and not callable. Remember that if you need to sell them before maturity it will be costly. It's a bit of an illusion that they don't lose any value. If interest rates go up you will receive less interest than you would for a new CD at the h...
by Chip
Fri Apr 21, 2017 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Reallocation Request
Replies: 14
Views: 901

Re: Portfolio Reallocation Request

Currently sitting about 65 stocks and 35 cash & short term instruments. Given that, going to 70/30 isn't much of a change. Yes, you're moving some things around, but the primary driver of risk and return is the stock/bond ratio. Since you're barely moving the needle on that, just get it all don...
by Chip
Fri Apr 21, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Reallocation Request
Replies: 14
Views: 901

Re: Portfolio Reallocation Request

Hi, and welcome!

I'm a little confused. Have you already cashed out of the market or are you close to 100% stocks?
by Chip
Fri Apr 21, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: When does it make sense to start paying down (or off) a low rate mortgage?
Replies: 43
Views: 3278

Re: When does it make sense to start paying down (or off) a low rate mortgage?

Admiral wrote:That's an easy answer:

Liquidity.


I can understand the liquidity reason, but most of these posts are about return differentials. And many of them come from people who also own bonds.
by Chip
Fri Apr 21, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: When does it make sense to start paying down (or off) a low rate mortgage?
Replies: 43
Views: 3278

Re: When does it make sense to start paying down (or off) a low rate mortgage?

Someone please explain why you would pay down or off a 3 or 4% mortgage when the long term 500 index will return you 7% ? Invest at 7% and forget the interest on a 4% mortgage. The short answer is risk. Stock market returns aren't guaranteed but the mortgage is a guaranteed debt. If you are 100% st...
by Chip
Fri Apr 21, 2017 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Moving from 10 to 2 funds - capital gains?
Replies: 12
Views: 1402

Re: Moving from 10 to 2 funds - capital gains?

Will your marginal tax rate decrease when you retire? Specifically, is it likely you will have a few years where you're in the 15% bracket, where some cap gains can be realized at no federal tax cost?
by Chip
Fri Apr 21, 2017 9:54 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 137
Views: 11659

Re: Case study Broker trade executions

Another experience to add: I was selling 800 shares of IEI a few minutes ago. The quote was bid 1 x 123.99, ask 4 x 124.00. 1 cent spread, but not enough demand. I looked up the order book on BATS and saw that the next bid was 10 x 123.97. I remembered from "Flash Boys" that BATS was prett...
by Chip
Fri Apr 21, 2017 6:33 am
Forum: Investing - Help with Personal Investments
Topic: Advice for 30yr old with limited knowledge-Calling all Bogleheads
Replies: 17
Views: 1940

Re: Advice for 30yr old with limited knowledge-Calling all Bogleheads

A sample plan: 401k 20% Fidelity® U.S. Bond Index Fund - Premium Class (Bond) ER .05% 64% FID 500 INDEX PR (Large Cap)-30% Expense Ratio .045% 16% FID SM CAP IDX PR (Small Cap)-10% Expense Ratio .07% Taxable -Sell all and rebuy: 20% VBTLX 60% VTSMX 20% VGTSX -You will pay some marginal capital gain...
by Chip
Thu Apr 20, 2017 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Is an IRA conversion the same as a backdoor IRA?
Replies: 2
Views: 314

Re: Is an IRA conversion the same as a backdoor IRA?

Yes. The backdoor Roth is a non-deductible contribution to a traditional IRA followed by conversion of that IRA to a Roth.
by Chip
Thu Apr 20, 2017 11:39 am
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

Yup, you are exactly right. So for 2017 how can I make sure that I don't run into this again and I can harvest gains? The loss/gain was from LendingClub or Betterment, and I can't control and of those robo trades. I've since closed my Betterment account and have been winding down my LendingClub acc...
by Chip
Thu Apr 20, 2017 4:34 am
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

I've given up. Next year I'll do a simple return to see if they calculate LTCGs correctly. Thanks everyone. Okay. But I think we know exactly what happened. TaxAct is calculating your tax correctly. The problem is that the scenario you created doesn't do what you think it does. 1. Your original ret...
by Chip
Wed Apr 19, 2017 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

Another possibility. Given your $108 ST gain and -268 LT loss, if you add $268 of LT gain, it will net against your LT loss, leaving you with a taxable ST gain of $108. Which is taxed at ordinary income rates, in your case 15%.
by Chip
Wed Apr 19, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

Do you mean the schedule D tax form? It shows a $108 ST gain and a $376 LT loss. So Line 21 is -268. I actually prefer the tax forms to the online tax summaries and lists. No, I mean this worksheet . TaxAct should have it available somewhere, all filled in with your numbers. We need to see it for b...
by Chip
Wed Apr 19, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

I hear what you're saying. But if you want to know the answer as to why it happened we need to see both Schedule D tax worksheets. Not Schedule D itself, but the tax worksheets where the tax rates for LTCG and qualified dividends come into play.
by Chip
Wed Apr 19, 2017 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

Thanks. But we need to see the Schedule D tax worksheets for each scenario to understand why it is happening.
by Chip
Wed Apr 19, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: On the 0.00218% Securities Transaction Fee
Replies: 7
Views: 1080

Re: On the 0.00218% Securities Transaction Fee

I suppose if you do a lot of frequent trading that fee can add up over time. Perhaps. But if I made trades of $20,000,000 principal amount, half buys and half sells, I'd still only pay $218 in fees (you only pay when selling). I can guarantee that this cost would be absolutely overwhelmed by the co...
by Chip
Wed Apr 19, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA Withdrawal question
Replies: 6
Views: 385

Re: Traditional IRA Withdrawal question

As DSInvestor said, for a traditional IRA there is no 5 year rule. That's only for Roth IRAs. So you can withdraw without penalty once you turn 59.5. You will pay income tax at ordinary income rates on all contributions that were deductible when you made them, plus on all the earnings in the account.
by Chip
Wed Apr 19, 2017 1:53 pm
Forum: Personal Consumer Issues
Topic: Lower cost - older car minor body work?
Replies: 6
Views: 530

Re: Lower cost - older car minor body work?

If you just want it to be a 50 foot car, then sure. My father in law has often used these cut rate body guys over the years. From 50 feet, the car looks pretty good. From 49 feet, I see ripples, badly mismatched color, misalignment of panels and such. From 10 feet, I see rust starting where work wa...
by Chip
Wed Apr 19, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

Okay, now give us the same screen shot WITHOUT the $100 gain. And the Schedule D tax worksheets for each scenario.
by Chip
Wed Apr 19, 2017 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: On the 0.00218% Securities Transaction Fee
Replies: 7
Views: 1080

Re: On the 0.00218% Securities Transaction Fee

This is a joke, right?

$2 fee on a 100,000 trade? I think I can handle it.
by Chip
Mon Apr 17, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 41
Views: 5042

Re: Tax form 1116 questions

So you are basically saying that your "total income for federal tax purposes" is what you put on Form 116, Line 3(e), namely "Gross income from all sources"? Then what does "State Income" mean in the formula above? Is it the number you get before you look up how much t...
by Chip
Mon Apr 17, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Standard Deduction, Capital Losses, IRAs
Replies: 10
Views: 584

Re: Form 1116: Standard Deduction, Capital Losses, IRAs

In calculating your "Gross Income From All Sources" for Form 1116, do you: A) Add in the $1,000 in short term capital gains, plus only those long term capital gains that you sold at a gain, and ignore any sales that resulted in a loss and ignore the $2,500 carryover from 2015; B) Add in t...
by Chip
Mon Apr 17, 2017 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Scratched bumper cost to repair
Replies: 17
Views: 1212

Re: Scratched bumper cost to repair

and after 3 quotes in our area, the cheapest one is $800. I'm surprised at the cost, actually, thinking it would only be a few hundred dollars. The owner has been fair in getting the 3 different quotes, but I just thought I'd post and get some feedback. Four years someone rear-ended my car at low s...
by Chip
Mon Apr 17, 2017 6:39 am
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 41
Views: 5042

Re: Tax form 1116 questions

I am far from an expert on this, but Federal "total income" isn't any of the things you mentioned. The calculation of "total income" used to apportion the Line 3 items takes Form 1040 Line 22 income and adds back any losses that were used in the calculation of that total. In part...
by Chip
Mon Apr 17, 2017 5:11 am
Forum: Personal Finance (Not Investing)
Topic: TLH question please. Doing my taxes.
Replies: 10
Views: 802

Re: TLH question please. Doing my taxes.

So far my tax return shows approximately: $9100 Cap Gains. $20,900 Ordinary Dividends, $18,500 Qualified. $11,200 Taxable interest. Is the $13,300 in long term losses only used to offset the $9100 cap gains? Then $3000 toward ordinary income and have to carry over $1200 for next year This is correct.
by Chip
Sun Apr 16, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: multiple funds added complexity?
Replies: 9
Views: 666

Re: Form 1116: multiple funds added complexity?

Google "Vanguard foreign tax credit" and follow the links.
by Chip
Sun Apr 16, 2017 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund HELOC?
Replies: 7
Views: 496

Re: Emergency Fund HELOC?

There are several people that advocate the HELOC as an emergency fund. I think it is a good tool to have in the tool belt, but you have to think about the scenario when a huge banking crisis or housing market collapse happens and the banks freeze all the revolving lines of credit. Then you get laid...
by Chip
Sat Apr 15, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: sold stock - what about taxes?
Replies: 16
Views: 991

Re: sold stock - what about taxes?

It isn't clear if the $7K includes state taxes (if applicable). Also, the ATM can cause the actual rate on extra income to be more than 15%. (Ask me how I know :( ) Agreed! I don't know OP's tax knowledge and was just testing to make sure we're all on the same page. And the Fed impact could be zero...

Go to advanced search