Search found 2844 matches

by Dale_G
Tue Mar 21, 2017 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: Failing to understand taxable acct strat
Replies: 16
Views: 1716

Re: Failing to understand taxable acct strat

.... The follow-up question/reassurance becomes... if I hold something like TSM in the taxable account, and Vanguard Target Retirement 2035 Fund (VTTHX) (which is ~50% TSM) in an IRA, then I shouldn't have a wash sale issue, right? The potential for a wash sale only arises if the funds "are su...
by Dale_G
Mon Mar 20, 2017 10:31 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation and asset placement question?
Replies: 4
Views: 383

Re: Asset allocation and asset placement question?

And when it comes time to take RMDs, the amount you are required to take is likely to be larger if you have equities in the 401k/IRA than if you are invested wholly in bonds. The tax man would prefer that you keep bonds in the taxable account and equities in the tax deferred account.

Dale
by Dale_G
Fri Mar 17, 2017 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Can I minimize the Tax Torpedo and future Medicare costs?
Replies: 27
Views: 2126

Re: Can I minimize the Tax Torpedo and future Medicare costs?

To minimize the RMDs, hold bonds to the extent possible in the traditional IRA - and hold equities to the extent possible in the Roth IRA and taxable accounts. The "hump" only occurs over the income range where SS goes from being taxed at zero until 85% of it is fully taxed, then the tax r...
by Dale_G
Sun Mar 05, 2017 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: The Joys Of Tax Season! :(
Replies: 55
Views: 3833

Re: The Joys Of Tax Season! :(

I set a new record this year. Under 2 hours at a leisurely pace. I have a refund coming - my bad. But I haven't filed yet, I like to sit on the return and review it later to make sure all of the I's are dotted and the T's are crossed.. It is helpful that all of the income streams are now stable. Tur...
by Dale_G
Fri Mar 03, 2017 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Portfolio Help...when to ditch the advisor?
Replies: 11
Views: 952

Re: New Investor Portfolio Help...when to ditch the advisor?

1. Currently have a fee-only fiduciary advisor, he is giving me a discounted flat rate as an introductory rate, but normally 1.95% annual fee after that if/when moves me off. He has put me in DFFVX for my IRA and mentioned he has access to mutual funds that the individual investor doesn’t have acce...
by Dale_G
Fri Mar 03, 2017 4:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Bond Market Index Fund - Variation in Daily Accrued Income
Replies: 10
Views: 1315

Re: Vanguard Total Bond Market Index Fund - Variation in Daily Accrued Income

What doesn't make any sense is that the accrual is about 40 cents over a period of 45 days. Is there a data entry problem here?

$10.04 (a 4 cent accrual) is a much more logical number.

Dale
by Dale_G
Mon Feb 27, 2017 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Assisting Parent with Dementia
Replies: 14
Views: 1286

Re: Assisting Parent with Dementia

dbr wrote: ...snip.... Social Security and the IRS definitely will not recognize a POA as such.


IRS form 2848 would seem to fit the bill for immediate family members as far as the IRS is concerned. The stationary store POA won't work though.

Dale
by Dale_G
Sat Feb 25, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Pension at the PBGC - when to begin taking
Replies: 21
Views: 1550

Re: Pension at the PBGC - when to begin taking

You are not missing anything Brewman. It is many of your fellow workers who are missing something.

I'll bet a lot of the money they take early will be spent on boat, car and motorcycle payments plus excess taxes. Not a good choice on their part unless they expect a very short lifetime.

Dale
by Dale_G
Sat Feb 25, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone used YieldStreet?
Replies: 2
Views: 229

Re: Has anyone used YieldStreet?

8 - 20% target return *1


They say 8-20% target return.

See footnote 1 - no guarantee, no promise.

Dale
by Dale_G
Sat Feb 25, 2017 1:00 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing -> Market Crash and rebalancing
Replies: 42
Views: 2048

Re: Rebalancing -> Market Crash and rebalancing

I sometimes think what I would do if i see a 10-20% crash - will I be afraid of catching a falling knife and do nothing? A 10%-20% decline is not a crash. In the scheme of things a 10% decline from a previous peak occurs almost yearly, 15% is a normal "correction" and it can occur every c...
by Dale_G
Wed Feb 22, 2017 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: Barney Style Instructions on a Taxable Investment Account
Replies: 6
Views: 579

Re: Barney Style Instructions on a Taxable Investment Account

It is perfectly okay to have just one fund in the Roth whether it is domestic or international. Next January, you will be able to add the second fund if you wish and it fits you desired allocation.

Dale
by Dale_G
Wed Feb 22, 2017 11:34 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with decision [leaving Edward Jones]
Replies: 11
Views: 870

Re: Need help with decision [leaving Edward Jones]

The no brainer part is to leave Ed Jones. Schwab, Fidelity and Vanguard all have a variety of inexpensive equity index funds these days. I think Vanguard continues to lead with a variety of low cost bond funds. Vanguard is presently having growing pains due to the huge influx of new money. I am cert...
by Dale_G
Tue Feb 21, 2017 12:39 am
Forum: Investing - Help with Personal Investments
Topic: Just received a UGMA in the form of a variable annuity…cash it out, or keep it?
Replies: 26
Views: 1306

Re: Just received a UGMA in the form of a variable annuity…cash it out, or keep it?

My read is that if a low cost annuity is kept for 15 years or more, the tax deferral outweighs the slight additional cost. In most respects, the VA is no different than having the money in a 401k with a similar expense ratio, except there are no forced withdrawals until age 90 or so. I would do the ...
by Dale_G
Sun Feb 19, 2017 1:16 am
Forum: Investing - Help with Personal Investments
Topic: How do you invest the proceeds [from your RMD?]
Replies: 22
Views: 1872

Re: How do you invest the proceeds [from your RMD?]

Our IRAs are all in bond funds. The RMDs are used to pay taxes, and whatever is left over is placed in Munis in taxable accounts in an effort to maintain our overall asset allocation.

Dale
by Dale_G
Sat Feb 18, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: New Allocations after Inherited IRA
Replies: 8
Views: 561

Re: New Allocations after Inherited IRA

It looks like you will be 90% equities (of which 78% will be US and 22% will be International) + 10% bonds. Some might suggest bumping up the International a bit, but you are basically okay. Whether you want to hold the International in the taxable account (to take advantage of the Foreign Tax Credi...
by Dale_G
Sat Feb 18, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: New Allocations after Inherited IRA
Replies: 8
Views: 561

Re: New Allocations after Inherited IRA

Is there a question?

There will be a fee at Vanguard to sell those stocks. If you have not yet moved to Vanguard you should find out how much Vanguard will charge to sell them - and how much the the company you are moving from will charge to sell them. Otherwise, it looks like a good plan.

Dale
by Dale_G
Thu Feb 16, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Getting back into market after sitting on sidelines
Replies: 11
Views: 1227

Re: Getting back into market after sitting on sidelines

JLJH - I am 11 years your senior and I am also it waiting it out, but i am invested in 72% equities and 28% bonds. If the market goes down seriously (and it will at some point in time), I will simply sell bonds and buy more equities. In fact, that is what Wellesley has been doing over the years, alt...
by Dale_G
Tue Feb 14, 2017 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: Parents variable annuity 1035 to vanguard
Replies: 8
Views: 621

Re: Parents variable annuity 1035 to vanguard

Just one item willie: 1. Return of premium Death Benefit (MUST BE SELECTED AT START OF CONTRACT) (0.2 expense ratio) This locks in the base of the contract as a ceiling. Ex- The 100k investment would be locked in as the principal, so even if the market downturned to 50k value for the annuity then th...
by Dale_G
Sat Feb 11, 2017 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Holding cash while researching investment manager
Replies: 31
Views: 895

Re: Holding cash while researching investment manager

Pardon us for being skeptical Minisota, but unless the advisor publishes his moves on a website, his alleged returns amount to hearsay. And how did he do over the past 10 or 15 years? So the market is at record highs, so what. Over the past 35 years of my serious investing history, I have seen hundr...
by Dale_G
Sat Feb 11, 2017 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: How Much Cash Do You Actually Hold?
Replies: 110
Views: 10545

Re: How Much Cash Do You Actually Hold?

I hold about 0.5% in cash and have done so since retiring in 2001. Since I retired the S&P500 has gained about 150% of the initial investment and Total bond is up about 93% of the initial investment. Will I have some "immediate" expense in the future that exceeds my cash? Maybe, maybe ...
by Dale_G
Wed Feb 08, 2017 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner's Portfolio Critique
Replies: 5
Views: 587

Re: Beginner's Portfolio Critique

It looks like an excellent plan yura - especially: concentrating 401k money into the three low expense ratio Vanguard funds offered in it, shifting my Betterment Roth-IRA and Taxable accounts to Vanguard to better tune them to complement the 401k. You are fortunate to have such a nice selection of f...
by Dale_G
Tue Feb 07, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie asks-should I put sell limits on my portfolio?
Replies: 18
Views: 911

Re: Newbie asks-should I put sell limits on my portfolio?

Actually Raven, it might be a good idea to set protective stops on your individual stocks. Then, if and when you get stopped out, take the proceeds and invest in index mutual funds or ETFs. You'll killed two birds with one stone - and likely be much better off down the road.

Dale
by Dale_G
Mon Feb 06, 2017 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Increased deferrals into NQ deferred comp, use taxable to pay off our house or pay monthly expenses?
Replies: 4
Views: 366

Re: Increased deferrals into NQ deferred comp, use taxable to pay off our house or pay monthly expenses?

Yes, the plan docs should tell all. But the rules have changed since I was involved. Your plan probably has a generic name (mine was a "Top Hat plan). I suggest you also do a Google search that may provide a less "legal" description of such plans that may help you interpret your docum...
by Dale_G
Sun Feb 05, 2017 6:45 pm
Forum: Investing - Theory, News & General
Topic: Ratio: Pain of Loss v. Happiness of Equal Size Gain
Replies: 22
Views: 1471

Re: Ratio: Pain of Loss v. Happiness of Equal Size Gain

For me it is highly non-linear. I am happy with a 20% increase, but don't care much about a 20% decline - that is when I automatically begin selling bonds and buying equities. At +/- 20% loss/gain I think I care about 0.2 for the loss and 2 for the gain. At +/- 30% loss/gain I am probably 1:1. At a ...
by Dale_G
Sat Feb 04, 2017 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Increased deferrals into NQ deferred comp, use taxable to pay off our house or pay monthly expenses?
Replies: 4
Views: 366

Re: Increased deferrals into NQ deferred comp, use taxable to pay off our house or pay monthly expenses?

40% to a NQ plan is pretty aggressive. I sometimes put 70% of gross in my plan, but it was late in my working years. It worked out okay. I deferred 42% in taxes and ended up paying 25% tax on the distributions. In my day there was a "springing trust" that activated if the company assets we...
by Dale_G
Tue Jan 31, 2017 6:30 pm
Forum: Investing - Theory, News & General
Topic: Are you changing your AA based on current events?
Replies: 68
Views: 3327

Re: Are you changing your AA based on current events?

What is different today? War, declared or not?, political unrest?, pestilence? uncertainty everywhere? The situation is normal, nothing new here. As long as capitalism survives, I will maintain my AA. The "current events" are already known to everyone and the markets have adjusted the expe...
by Dale_G
Tue Jan 31, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones Guided Solutions Fees
Replies: 25
Views: 2247

Re: Edward Jones Guided Solutions Fees

New rules will soon be in force that require advisors to put the customer first with respect to retirement accounts. It is called "fiduciary responsibility". Jones will no longer be able to justify selling people the "loaded" funds where they presently earn most of their money. T...
by Dale_G
Tue Jan 31, 2017 2:20 pm
Forum: Investing - Theory, News & General
Topic: Does credit risk show up at the wrong time? [A look at 89 years of corporate bond data]
Replies: 42
Views: 2986

Re: Does credit risk show up at the wrong time? [A look at 89 years of corporate bond data]

Thank you lack_ey. A very nice presentation. It is certain to arouse some conversation.

note: I own a very healthy amount of corporates.

Dale

edit: fixed spelling :annoyed
by Dale_G
Thu Jan 26, 2017 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard High-Yield Corp. Adm. VWEAX
Replies: 16
Views: 1487

Re: Vanguard High-Yield Corp. Adm. VWEAX

If you do hold this fund, count it as half stocks and half bonds in your asset allocation. It may have high returns in normal years, but it will probably lose about half as much as the stock market when the market crashes; this is what happened in 2008. I agree that junk may look like 50% equity du...
by Dale_G
Thu Jan 26, 2017 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: All in VANGUARD is that ok??
Replies: 51
Views: 5467

Re: All in VANGUARD is that ok??

Except for a checking account and a few I bonds, everything is at Vanguard. I've been at Vanguard since 1982. I have no qualms.

Dale
by Dale_G
Tue Jan 24, 2017 1:54 am
Forum: Personal Finance (Not Investing)
Topic: TurboTax is playing games again.
Replies: 52
Views: 9571

Re: TurboTax is playing games again.

I have full confidence that TT Deluxe will handle my 1099Bs. But I also have full confidence that Intuit is a company that loves to be hated. They certainly seem to go out of their way to arouse disdain, frustration and anger.

Dale
by Dale_G
Mon Jan 23, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: % taxable bonds needed for rebalancing taxable equity?
Replies: 26
Views: 1597

Re: % bonds for rebalancing taxable equity rule of thumb?

Why not do your rebalancing in tax deferred accounts? This avoids any tax implications due to rebalancing in the taxable account.

Dale
by Dale_G
Mon Jan 23, 2017 12:30 am
Forum: Personal Finance (Not Investing)
Topic: HELP ! Letter from NY on State income tax
Replies: 22
Views: 2175

Re: HELP ! Letter from NY on State income tax

If the check was not cashed, something went awry. Maybe you, maybe them or maybe the post office (unlikely). But NY is not going to send a bunch of SWAT guys to bust down your doors at 2am. With a tax bill of <$50, the penalty and interest are likely to be minimal. Stuff happens. Pay up and put it b...
by Dale_G
Sat Jan 21, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ Detailed Equity Allocation
Replies: 4
Views: 379

Re: Help w/ Detailed Equity Allocation

The three fund portfolio is simple, but not simplistic. Unless you want to overweight large, mid or small caps, you are duplicating stuff that is already held in the Total Stock Market fund. If you really feel the need to have more funds, split the bond portion into whatever makes you happy.

Dale
by Dale_G
Thu Jan 19, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Robo-advisors vs Vanguard
Replies: 28
Views: 3459

Re: Robo-advisors vs Vanguard

Emergency fund: none. Debt: credit card debt of $3000, planning to pay off within the next couple months. Loans of $11k, paying in small amounts every month. Should I just not even think about investing at the moment given my situation and my plan to go back to school for 2 more years which will on...
by Dale_G
Thu Jan 19, 2017 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B costs
Replies: 14
Views: 1408

Re: Medicare Part B costs

Yup, a little confusing. This is the first year that my part B premium is different than my wife's. Spirit Rider provided an easy to understand explanation. Mystery solved.

Dale
by Dale_G
Sat Jan 14, 2017 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3839

Re: Dollar-Cost-Average over HOW MANY years?

If the OP is interested in the maximum return, the probability is that DCA should be done over 1/365th of a year. Sometimes this has to be delayed to the next day the market is open.

Dale
by Dale_G
Sat Jan 14, 2017 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice for Vanguard fund choices for $1.6M
Replies: 19
Views: 2450

Re: Need advice for Vanguard fund choices for $1.6M

Duckie is on the money. Since you have children who will eventually inherit whatever you do not spend, bonds belong in tax deferred accounts to the extent possible and equities in taxable accounts to the extent possible. Forget about balanced funds in the taxable account, in your tax bracket you wil...
by Dale_G
Sat Jan 14, 2017 1:05 am
Forum: Personal Finance (Not Investing)
Topic: cruise around the world
Replies: 16
Views: 1610

Re: cruise around the world

very doable. The costs are higher these days, but the wife and I did a fair amount of cruising in retirement. One of our trips was 54 days - Europe, Africa, Antartica and South America. Another (forgot the number of days) - Australia, Asia, South America, North America. Both of the trips were less t...
by Dale_G
Sat Jan 14, 2017 12:41 am
Forum: Personal Finance (Not Investing)
Topic: Check image - illegible
Replies: 12
Views: 1357

Re: Check image - illegible

Next time use a pen with black ink - and not with a fine tip. In more than 60 years of writing checks, I have never had anyone claim that they had not received/cashed a check. While your original check has been destroyed, I believe that digital records exist that could track your check back to the a...
by Dale_G
Tue Jan 10, 2017 1:10 am
Forum: Investing - Help with Personal Investments
Topic: [403(b) Fidelity or TIAA Cref allocation, and do I want one?]
Replies: 137
Views: 5417

Re: EJ not [costing me as much as] others?

Stock markets go up and down from time to time, but investment expenses go on forever - or however long you are willing to put up with them.

Dale
by Dale_G
Tue Jan 10, 2017 12:26 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18187

Re: How Bad was 2008, really?

... snip...but for me the real fear would be the fear of stocks going down for like...decades. What is so scary about a 2 year blip? You hit the nail on the head. At the market low on March 9, 2009 the S&P 500 had declined 56.8% from the high on October 9, 2007 (dividends excluded). On March 9,...
by Dale_G
Mon Jan 09, 2017 12:20 am
Forum: Investing - Help with Personal Investments
Topic: Disadvantage of Tax loss harvesting
Replies: 65
Views: 3724

Re: Disadvantage of Tax loss harvesting

The oldest of my six figure tax losses were realized in 2008/2009. So far I have benefited from 7 years of reducing ordinary income by $3,000/yr. I have used up a bit of the tax loss carry-forward to rebalance from domestic to international. At 79 years old, I do not expect to use the entire balance...
by Dale_G
Tue Jan 03, 2017 12:48 am
Forum: Investing - Help with Personal Investments
Topic: Bonds go in taxable/
Replies: 13
Views: 1965

Re: Bonds go in taxable/

the whitecoatinvestor is comparing a Roth account to a taxable account. That is not the same situation as comparing a traditional IRA or 401k account to a taxable account. Yes, if you can stuff your equities into a Roth IRA or Roth 401k, it is ok, but not so if you are using a traditional IRA or tax...
by Dale_G
Fri Dec 30, 2016 1:11 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Plans and Tax Deferred investing - references
Replies: 25
Views: 1622

Re: Retirement Plans and Tax Deferred investing - references

Barefootgirl, a Google search on "Retirement Plans and Tax Deferred Investing" comes up with 929,000 hits, so there is a lot of ground to cover here. It will be easier for people to make suggestions if you can indicate what areas you are specifically interested in.

Dale
by Dale_G
Fri Dec 30, 2016 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard inherited annuity -- pay tax for it in 2016 or 2017
Replies: 8
Views: 595

Re: Vanguard inherited annuity -- pay tax for it in 2016 or 2017

It is the sell date that counts - not the date you actually receive the money.
by Dale_G
Wed Dec 28, 2016 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Tax-Exempt Bond Fund Wash Sale?
Replies: 4
Views: 537

Re: Vanguard Tax-Exempt Bond Fund Wash Sale?

Sufficiently different - otherwise known as "not substantially identical".
by Dale_G
Wed Dec 28, 2016 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to ROTH Conversion in Advance of RMD
Replies: 14
Views: 1085

Re: IRA to ROTH Conversion in Advance of RMD

If mom has not made any after tax contributions to her IRA, the easy way to simulate the Traditional to Roth conversion in TurboTax is to simply enter the conversion dollars as a 1099-int. Since interest and the conversion dollars are taxed at the same rates, you will see exactly the same tax impact...

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