Search found 1102 matches

by Chip
Fri Mar 24, 2017 6:37 am
Forum: Personal Finance (Not Investing)
Topic: Follow up: What is RMD for wife (61) after death of husband (72)
Replies: 7
Views: 881

Re: Follow up: optimizing decisions after spouse's death

I am far from an expert on this, but your plan looks good. I agree with waiting until 66 to take the survivor's benefit. Wife's RMDs: I believe that if she puts the inherited IRAs in her name, she won't have to take RMDs until age 70.5. I'm not sure if there is some sort of reason to keep the 401k r...
by Chip
Thu Mar 23, 2017 5:46 am
Forum: Investing - Help with Personal Investments
Topic: Retirement draw down across taxable, 401k, and Roth
Replies: 7
Views: 782

Re: Retirement draw down across taxable, 401k, and Roth

Thanks for the insight. I know now not to always blindly follow rules of thumb. I'll be sure to dig deeper now to better allocate draw down resources to minimize tax bite. There are plenty of threads here (use the search box) where people are intentionally creating taxable income in early retiremen...
by Chip
Wed Mar 22, 2017 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's Asset Allocation - 401k options limited
Replies: 8
Views: 445

Re: Wife's Asset Allocation - 401k options limited

Umm, that's not even close to a bad 401k. Try 2+% ERs in a bad one. 1. The fixed income portion is concentrated in Munis, however the bond funds available are a bit obscure and high costs The only one suitable seems to be DFA INTERMEDIATE GOVT FIXED-INCOME - I - DFIGX Is it worth holding this to bre...
by Chip
Wed Mar 22, 2017 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Fixed income Asset Allocation
Replies: 4
Views: 332

Re: Help with Fixed income Asset Allocation

I may be misunderstanding, but there is no way I'd put that allocation into a taxable account with your tax rates. I'd put it all in VWIUX/VCADX. And not a very high percentage in VCADX to reduce CA-specific risk. Do you not have ANY equities in tax-deferred? If you have any tax-efficient equity fun...
by Chip
Wed Mar 22, 2017 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Retirement draw down across taxable, 401k, and Roth
Replies: 7
Views: 782

Re: Retirement draw down across taxable, 401k, and Roth

Forget that rule of thumb. To some extent the plan you develop should depend on the drawdown rate. But assuming the drawdown is small enough, this is the plan I'd follow: 1. Maximize SS payout. Normally this means delaying the higher payment until age 70. 2. Convert 401k/IRA to Roth each year. Proba...
by Chip
Wed Mar 22, 2017 9:00 am
Forum: Investing - Theory, News & General
Topic: Very basic undertanding of taxable and tax-advantaged accounts
Replies: 12
Views: 688

Re: Very basic undertanding of taxable and tax-advantaged accounts

All, I'm completely confused trying to follow various discussions on tax-advantaged accounts, taxable accounts, and who does what and why, since this is usually a starting point for some complicated strategy. Suggestions for a good book or links you've found helpful would be appreciated. At a high ...
by Chip
Wed Mar 22, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: IRA conversion
Replies: 2
Views: 224

Re: IRA conversion

I had been contributing 5500 for the last 4 years to a traditional IRA with post tax money. I used money from my paycheck(Im a w-2 worker). In 2016 I converted it all (about 23000) to a roth IRA. Is this ok? what taxes will I owe on it? I agree with sport. But are you SURE it was post tax money? Lo...
by Chip
Wed Mar 22, 2017 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Alternative SSA Claiming Strategy--question for the group
Replies: 10
Views: 628

Re: Alternative SSA Claiming Strategy--question for the group

This is exactly how I have thought of SSA benefits. I already have a plan to maximize my benefits, which has me taking SSA at FRA--for me, there was no benefit to waiting until age 70. However, I did want to explore the idea that there may be a better solution. I'm curious about how waiting until 7...
by Chip
Wed Mar 22, 2017 6:34 am
Forum: Investing - Help with Personal Investments
Topic: Wife's Asset Allocation - 401k options limited
Replies: 8
Views: 445

Re: Wife's Asset Allocation - 401k options limited

Hi, and welcome! You'll get much better answers if you add some information to your original post according to the outline in Asking Portfolio Questions . In particular, it is best to view your combined assets as a whole so you can pick the least bad option in the 401k while still meeting your portf...
by Chip
Wed Mar 22, 2017 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Alternative SSA Claiming Strategy--question for the group
Replies: 10
Views: 628

Re: Alternative SSA Claiming Strategy--question for the group

Maybe I'm misreading what you wrote, but my understanding is if you claim at 62, your benefits are permanently reduced. Period. Doesn't matter if you work (though that may increase the size of later REDUCED benefits). I would suggest rethinking the "leaving money on the table" idea. Instea...
by Chip
Mon Mar 20, 2017 6:48 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target Retirement fund vs. Vanguard ETFs vs. DIY Portfolio
Replies: 5
Views: 602

Re: Vanguard Target Retirement fund vs. Vanguard ETFs vs. DIY Portfolio

Do you have tax-deferred and/or tax-free accounts? (401k, IRA, Roth)
by Chip
Sun Mar 19, 2017 3:38 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6504

Re: It's worth remembering that bull markets don't last forever

Man, oh, man. Talk about a case of luck. Imagine if the recovery had not been V-shaped. It isn't luck as much as having a plan and sticking with it. Sure, the relatively quick recovery was nice. I wasn't expecting it. And I'd be okay if we were still at '09 levels. Not happy, but okay. Maybe it's y...
by Chip
Sun Mar 19, 2017 2:03 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6504

Re: It's worth remembering that bull markets don't last forever

jebmke wrote:Just peeking back at confirmations -- I show a six figure purchase of the VG Value index on March 16, 2009.


Wow, NICE market timing.
by Chip
Sun Mar 19, 2017 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab vs Vanguard
Replies: 54
Views: 10385

Re: Schwab vs Vanguard

confusedinvestor wrote:Vanguard will die soon or may be already in coma


That's hysterical. Want to give us a date as to when they'll be belly up?

Here's an trick question for you: how much in assets under management did Vanguard lose last year?
by Chip
Sun Mar 19, 2017 1:47 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6504

Re: It's worth remembering that bull markets don't last forever

The lesson is that you can't really know how to call it. So the best bet is to decide how much exposure you need and want and manage (re-balance) as necessary to deal with it. I have been re-balancing periodically back to my 40% target on the way up. I do the same on the way down again. I may go cr...
by Chip
Sun Mar 19, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: VFIAX vs. FUSVX capital gains distribution
Replies: 6
Views: 506

Re: VFIAX vs. FUSVX capital gains distribution

Does anyone have experience with this long term? Are Fidelity index funds in general less efficient than Vanguard's? What about other index funds international etc? Yes. Vanguard funds are more tax efficient because their corresponding ETFs are a share class of the fund. The ETF creation/redemption...
by Chip
Sun Mar 19, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio. Am I on the right track?
Replies: 9
Views: 607

Re: Help with portfolio. Am I on the right track?

I could be wrong on DIY TLH like you have noted, but it seems like a lot of work, which I would like to avoid if the gains are minimal. Hi, and welcome! The portfolio looks great to me. Though I second the idea of paying off the mortgage rather than investing in taxable. It's a guaranteed return of...
by Chip
Sat Mar 18, 2017 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard reinvested my dividends - what now?
Replies: 19
Views: 1680

Re: Vanguard reinvested my dividends - what now?

A family member had two Vanguard bond funds held in a mutual fund account. Both were set to send dividends to Prime Money Market, and had been for years. The owner died. As soon as Vanguard was notified of the death they switched both bond funds to automatic reinvestment in the fund, without any ins...
by Chip
Sat Mar 18, 2017 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: The "investment return" method of withdrawal
Replies: 37
Views: 1585

Re: The "investment return" method of withdrawal

I'm not sure I understand your plan. To me, my portfolio is everything that I have, regardless of which accounts it is in. It seems like you have a "portfolio" and a separate pile of money. Exactly. It's another form of mental accounting, like buckets, play money accounts, etc. And I don'...
by Chip
Sat Mar 18, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: Would like comments on this Roth Conversion quote.
Replies: 30
Views: 2270

Re: Would like comments on this Roth Conversion quote.

For me, the goal is maximize after-tax income during my lifetime. For that, I project my expected taxable ordinary income (including all sources, RMD, SS, taxable fixed income), expected qualified dividends and expected realization of capital gains (for the rest of my life). I could be wrong, but I...
by Chip
Sat Mar 18, 2017 8:18 am
Forum: Investing - Theory, News & General
Topic: Would like comments on this Roth Conversion quote.
Replies: 30
Views: 2270

Re: Would like comments on this Roth Conversion quote.

This thread misses one huge advantage of a conversion - the ability to detemine the moment that a portfolio is valued for tax purposes and then, with months if hindsight, undo that value crystallization if you picked the wrong moment. I guess we didn't discuss it, but I'm certainly aware of it. I h...
by Chip
Sat Mar 18, 2017 6:47 am
Forum: Investing - Theory, News & General
Topic: Would like comments on this Roth Conversion quote.
Replies: 30
Views: 2270

Re: Would like comments on this Roth Conversion quote.

An additional consideration is whether one is planning for MFJ or Filing as Single for the full planning horizon. In addition to the often expressed surprise that accompanies realizing that one's tax bracket has jumped to a higher level given RMD and Deferred SS at age 70; there is also the reality...
by Chip
Sat Mar 18, 2017 6:32 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct not calculating foreign tax credit
Replies: 15
Views: 961

Re: TaxAct not calculating foreign tax credit

I just learned today from a fellow TaxSlayer user for Taxaide that TaxSlayer's professional system doesn't even support Form 1116. I haven't verified this. But after watching the debacle of their rollout this year I am glad they don't support it - they would botch the implementation for certain. An...
by Chip
Thu Mar 16, 2017 3:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1578

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

I entered the total and the software stopped displaying an error. If I wanted to sell this random fund for the hassle-factor, what's a more low-maintenance fund I can buy to replace it and hold in a Vanguard taxable account? In an old post you mentioned having a 4.75% mortgage. If you still have it...
by Chip
Thu Mar 16, 2017 6:16 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct not calculating foreign tax credit
Replies: 15
Views: 961

Re: TaxAct not calculating foreign tax credit

Are your foreign taxes paid less than the $300/$600 special election limit? If so, does TaxAct have a way to enter those taxes paid directly on Form 1040, line 48? That would be very simple. Form 1116 isn't required by the IRS if you're below those limits.
by Chip
Thu Mar 16, 2017 6:12 am
Forum: Investing - Help with Personal Investments
Topic: American Expat in Hong Kong Starting with US$10,000
Replies: 4
Views: 288

Re: American Expat in Hong Kong Starting with US$10,000

Hi, and welcome! I think the advisor portfolio is reasonable, and certainly low cost. But you didn't mention your age and other factors. I agree the Merriman portfolio is too complex. I would skip REITS. While there is probably no tax on them now due to the foreign earned income exclusion, if/when y...
by Chip
Thu Mar 16, 2017 5:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1578

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

Total cost: Covered Shares: $4,398.62 Noncovered Shares: $591.30 I don't understand the difference. Which one do I enter? The sum of the two numbers. Though it really doesn't matter, as TaxAct will be happy and your return accurate as long as you enter a number larger than the amount of the non-div...
by Chip
Wed Mar 15, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return - MFJ to MFS
Replies: 37
Views: 1455

Re: Amend Return - MFJ to MFS

As I have mentioned before, I have only seen two cases where this worked in the last 8 years of doing taxes. One did involve a complicated two-state situation. The other was a large difference in individual income. I had a case two weeks ago that came close but still paid to file jointly. Very hard...
by Chip
Wed Mar 15, 2017 1:43 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1578

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

yes, there's a box that I can enter a number into. I'm asking which number to enter, or where to find that number in my Vanguard account I don't have a Vanguard account, but surely there is a page that shows you the cost basis of your holding in VIPSX. Right? That's the number to enter -- total cos...
by Chip
Wed Mar 15, 2017 1:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1578

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

Find your basis at Vanguard and enter it. Where? I'm in "My accounts>Balances and holdings>Cost basis accounting>Unrealized Gains and Losses" ? or should I look in "Realized Gains and Losses"? I don't know. When you get the following error message from TaxAct does it at that poi...
by Chip
Wed Mar 15, 2017 4:45 am
Forum: Personal Consumer Issues
Topic: FX Cash Aboard: What to do with extra?
Replies: 9
Views: 726

Re: FX Cash Aboard: What to do with extra?

No good solution here. You can go to the Travelex booth at the airport and exchange it. You will feel violated after that experience. You can bring it home and keep it until your next trip. Or sell it to a friend going to one of the countries. I have a little cash box with cash from different countr...
by Chip
Wed Mar 15, 2017 4:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1578

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

I have the same problem with VIPSX. I entered everything from the 1099-DIV they sent me into TaxAct, and it's giving me an error msg: "Error or Omission: Form 1099-DIV - Liquidation Distributions You entered nondividend distributions on Form 1099-DIV for Vanguard. Enter the adjusted basis of t...
by Chip
Tue Mar 14, 2017 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return - MFJ to MFS
Replies: 37
Views: 1455

Re: Amend Return - MFJ to MFS

Note that you can't amend to file MFS after filing MFJ after the due date for the return (April 18th). See p. 22 of the 2016 Pub 17 PDF.
by Chip
Sun Mar 12, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: FSSVX vs VSMAX? YTD return difference [Fidelity vs. Vanguard small-cap]
Replies: 3
Views: 212

Re: FSSVX vs VSMAX? YTD return difference

Did you check to see which index they each follow?
by Chip
Sat Mar 11, 2017 12:28 pm
Forum: Personal Consumer Issues
Topic: can you recommend good tires
Replies: 50
Views: 2235

Re: can you recommend good tires

traveltoomuch wrote:Costco just posted a free install deal, good this weekend only, no exec membership required. So this may be an especially good time to act.


Wow, impeccable timing on my part. I had new tires installed YESTERDAY at Costco. Mount/balance was $56. :oops:
by Chip
Sat Mar 11, 2017 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank Replacement
Replies: 65
Views: 4706

Re: Ally Bank Replacement

Correct. I'm not advocating using it for stashing all your cash. I keep enough for monthly cash flow needs and the rest in *wait for it* Ally. I see. Your comment about FDIC insurance at Fidelity made me think you were advocating putting large sums there. FWIW, I have used FIdelity billpay for year...
by Chip
Sat Mar 11, 2017 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review and Our Complete Economic Situation
Replies: 16
Views: 1160

Re: Portfolio Review and Our Complete Economic Situation

F. I need to learn more on SS. when I Googled: "the two "knees' on the SS payout amounts" all I get is "disability for knee replacement". Is what you are talking about known by another name? or do you have a URL on the subject? Try "social security bend points" fo...
by Chip
Sat Mar 11, 2017 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Ally Bank Replacement
Replies: 65
Views: 4706

Re: Ally Bank Replacement

Choy wrote:If I were you, I'd go with Fidelity. You already have several accounts there and Fidelity billpay/cash management is the best I've ever used:


What rate of interest is Fidelity paying you on your cash deposits?
by Chip
Thu Mar 09, 2017 6:42 am
Forum: Personal Consumer Issues
Topic: Honda civic maintenance according to Sticker?
Replies: 17
Views: 1315

Re: Honda civic maintenance according to Sticker?

My question: Do people strictly follow the maintenance schedule on the sticker? Or people only perform service when the maintenance minder comes on? Can the maintenance minder cover 100% of the service scenarios? I have a 2013 Accord. My advice would be to ignore any dealer-applied maintenance stic...
by Chip
Wed Mar 08, 2017 12:09 pm
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 43
Views: 4660

Re: 2016 Relative Tax Efficiency

I was just thinking about Schwab yesterday. Do you have a good link to a resource for all Schwab funds, for the complete 2016 year and including all necessary tax info? I don't think you can get all of it. It was very difficult for me to find anything with Google. I can't even remember how I eventu...
by Chip
Wed Mar 08, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Use "Various" when 1099-B does not show "Date Acquired" ???
Replies: 14
Views: 664

Re: Use "Various" when 1099-B does not show "Date Acquired" ???

Neither. These are covered shares, so you shouldn't even be filing Form 8949. The net long and net short results of your covered sales can go straight to page 1 of Schedule D, and you don't even get to write "various". I agree this is the simplest way to do it. Unfortunately some tax soft...
by Chip
Wed Mar 08, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Use "Various" when 1099-B does not show "Date Acquired" ???
Replies: 14
Views: 664

Re: Use "Various" when 1099-B does not show "Date Acquired" ???

Various is the correct entry. And Vanguard should have put it on your 1099-B, especially since those are covered shares.
by Chip
Wed Mar 08, 2017 11:34 am
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 43
Views: 4660

Re: 2016 Relative Tax Efficiency

I'll update it with iShares, Fidelity, Schwab, and WisdomTree data as the information is released. Requests are welcome, but I will arbitrarily decide the funds are important. This is easy for you to add to, anyway! Enjoy! Here are the numbers for FNDF and SCHF, assuming you want to add them. The e...
by Chip
Wed Mar 08, 2017 10:29 am
Forum: Investing - Theory, News & General
Topic: Rekenthaler: My Asset Allocation
Replies: 21
Views: 2098

Re: Rekenthaler: My Asset Allocation

David Jay wrote:Slept like a baby in 2008.


Me too. Woke up every few hours and cried a little. :P
by Chip
Tue Mar 07, 2017 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Standard Deduction, Capital Losses, IRAs
Replies: 7
Views: 290

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

7. I will itemize next year and will need to apportion state taxes. My state starts with Federal AGI, then deducts federally taxed Social Security and excess medical expense and personal exemptions to arrive at state taxable income. Taxable income will definitely be greater than US-source income on...
by Chip
Tue Mar 07, 2017 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Standard Deduction, Capital Losses, IRAs
Replies: 7
Views: 290

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

#5 is typical as I see in my 1116 and by searching online for "Form 1116 example" #7 I don't pay state income taxes. I think HRBlock included my sales taxes. I'd let TT just do what it does as long as 100% of foreign taxes paid are credited. I doubt the IRS will come looking for you no ma...
by Chip
Tue Mar 07, 2017 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Standard Deduction, Capital Losses, IRAs
Replies: 7
Views: 290

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

It all sounds reasonable to me. I don't have plenty of headroom and I am in the 15% marginal income tax bracket. In the past I have reduced international holdings in taxable to not overshoot my headroom. Thanks. I guess those with plenty of headroom are in higher brackets. I sure hope I don't have ...
by Chip
Tue Mar 07, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Standard Deduction, Capital Losses, IRAs
Replies: 7
Views: 290

Form 1116: Standard Deduction, Capital Losses, IRAs

I'm filling out Form 1116 in TurboTax for 2016. I'm taking the standard deduction, and have deductible IRA contributions and capital losses. I am below the $20,000 foreign income threshold for adjusting dividends and capital gains. I have read many of the Form 1116 threads here, but want to confirm ...
by Chip
Sat Mar 04, 2017 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a combined RMD and SS tax calculator?
Replies: 13
Views: 918

Re: Is there a combined RMD and SS tax calculator?

So, roughly with bank interest of 4,000+ 34,000 38,000 (don't have any nontaxable interest) minus 21,600 (current MFJ combined exemption) = 16,400 + 16,250 (½ of SS) = 32,650 "combined income" from which we may have to pay up to 50 % Anything missing? You don't get to subtract the combine...
by Chip
Sat Mar 04, 2017 3:28 pm
Forum: Personal Consumer Issues
Topic: Oil Change Advice Honda CR-V
Replies: 40
Views: 2250

Re: Oil Change Advice Honda CR-V

I agree with sport; follow the owner's manual. If it's the same advice as for my 2013 Accord, it will be "change when the maintenance minder tells you to", which is with 15% oil life remaining or less. The exception to this is that it should be changed no less than once per year. If she's ...

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