Search found 1544 matches

by Electron
Wed Jul 13, 2016 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for conversion of $1.8 million IRA
Replies: 63
Views: 5846

Re: Strategy for conversion of $1.8 million IRA

Scenario - Equity asset market downturn of % X. (Think 2008-2009, when you were looking at a 50% off sale). During this period very aggressively convert fixed income assets in an IRA to equity assets in Roth. This is essentially waiting for a "sale" in equity assets to aggressively conver...
by Electron
Wed Jul 13, 2016 12:44 pm
Forum: Personal Consumer Issues
Topic: Windows 7 updates for broker fraud protection
Replies: 28
Views: 2105

Re: Windows 7 updates for broker fraud protection

I still think Micro$oft is trying to force Win7 users to adopt Win10 and I fully expect to have more problems updating my systems in the future. If you would like to remove the Get Windows 10 Icon located in the system tray, try an Internet Search on KB3035583. That update can be uninstalled and hi...
by Electron
Wed Jul 13, 2016 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for conversion of $1.8 million IRA
Replies: 63
Views: 5846

Re: Strategy for conversion of $1.8 million IRA

In pre SS and RMD environment, which for me is the next 8 years - Minimize taxable income in lower brackets by getting rid of (selling off) taxable interest and non-qualified dividends in accounts. Focus on maximizing tax efficiency and do opportunistic conversions and harvesting of capital gains w...
by Electron
Tue Jul 12, 2016 2:51 pm
Forum: Personal Consumer Issues
Topic: Windows 7 updates for broker fraud protection
Replies: 28
Views: 2105

Re: Windows 7 updates for broker fraud protection

A very recent Microsoft Update (KB3161608) adds some improvements to the Windows Update Client. I installed it on June 21. https://support.microsoft.com/en-us/kb/3161608 The update includes several other updates including the one below. https://support.microsoft.com/en-us/kb/3161647 Here is the pert...
by Electron
Tue Jul 12, 2016 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for conversion of $1.8 million IRA
Replies: 63
Views: 5846

Re: Strategy for conversion of $1.8 million IRA

Here are two considerations that aren't mentioned quite as frequently. If there is any chance you would move to a higher tax state in the future, there might be an advantage in doing any Roth Conversions before moving. Another situation involves the high income surcharge on Medicare Part B and Part ...
by Electron
Mon Jul 11, 2016 12:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds
Replies: 11
Views: 1073

Re: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds

Zero coupon bonds have an interest rate and just as coupon bonds will go up in price as interest rates fall, so will zero coupon bonds. If the difference between the zero coupon bond's interest rate and current rates is large enough, the bond's market value can climb above face. Wouldn't that condi...
by Electron
Sat Jul 09, 2016 5:16 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds
Replies: 11
Views: 1073

Re: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds

Another surprise in the Vanguard Semiannual Report is that the majority of bonds in several portfolios all have a 5.000% coupon. I'll guess that the issuers for many years had all the paperwork in place for the 5% bond and simply issued it at a premium or discount as dictated by current interest rat...
by Electron
Sat Jul 09, 2016 3:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds
Replies: 11
Views: 1073

Re: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds

Thanks ogd and Geologist for your replies. In the case of taxable zero coupon bond funds, taxes must be paid on imputed interest even though it is not paid out. I believe cost basis is then increased by the amount of the imputed interest. American Century has a number of these funds. Since states ma...
by Electron
Sat Jul 09, 2016 1:14 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds
Replies: 11
Views: 1073

Vanguard Intermediate Term Tax Exempt - Zero Coupon Bonds

The latest Semiannual Report for Vanguard Intermediate Term Tax Exempt Fund shows quite a few zero coupon bonds in the portfolio. Here are a few examples: Beverly Hills California Unified School District GO, 0.000%, 8-01-28, $5M Face Amount, $3.744M Market Value Cerritos California Community College...
by Electron
Thu Jul 07, 2016 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10397

Re: $400,000 Roth Conversions Between Ages 66-69?

Here is another article from Michael Kitces that is worth reading. https://www.kitces.com/blog/why-a-roth-conversion-may-be-a-bad-idea-even-if-taxes-are-higher-in-the-future/ One issue is that marginal tax rates may change in the future. Tax reform may actually lower marginal tax rates by widening t...
by Electron
Wed Jul 06, 2016 12:37 pm
Forum: Personal Consumer Issues
Topic: My Excel is 9 yrs old(2007). Update??
Replies: 28
Views: 1986

Re: My Excel is 9 yrs old(2007). Update??

I've used Excel 5, Excel 2003, and Excel 2013. It takes some time to become proficient with the Ribbon in Excel 2013. However, once you are past the learning curve it seems to work very well. A lot of functions can be done with a right click of the mouse. I liked the charting in Excel 2003 much bett...
by Electron
Tue Jun 28, 2016 4:44 pm
Forum: Investing - Theory, News & General
Topic: limiting Cap Gains - with ETFs ?
Replies: 17
Views: 1248

Re: limiting Cap Gains - with ETFs ?

Distributions will be smaller or even eliminated in a declining market It's actually not an issue that capital gains distributions can decrease or even be eliminated in down markets. Spending capital gains distributions is essentially the same as selling shares and taking capital from any equity fu...
by Electron
Tue Jun 28, 2016 1:23 pm
Forum: Investing - Theory, News & General
Topic: limiting Cap Gains - with ETFs ?
Replies: 17
Views: 1248

Re: limiting Cap Gains - with ETFs ?

The investment philosophy generally recommended on this board is to use low cost Index funds. Stock index funds such as Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund avoid capital gains distributions entirely in normal markets. Don't forget that Index funds of this type by defin...
by Electron
Mon Jun 27, 2016 2:28 pm
Forum: Investing - Theory, News & General
Topic: limiting Cap Gains - with ETFs ?
Replies: 17
Views: 1248

Re: limiting Cap Gains - with ETFs ?

I think the issue is whether you can restructure your investments for better tax efficiency. Think about how your tax return would look if taxable investments generated only qualified dividends, tax exempt income, minimal capital gains, and minimal ordinary income. See if you could take advantage of...
by Electron
Sun Jun 26, 2016 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing corporate bonds with tax-exempt munis
Replies: 10
Views: 833

Re: Comparing corporate bonds with tax-exempt munis

It's also worth viewing how different funds performed in 2008. http://quotes.morningstar.com/chart/fund/chart?t=VBMFX&region=usa&culture=en_US&dataParams=%7B%22zoomKey%22%3A9%2C%22version%22%3A%22US%22%2C%22showNav%22%3Atrue%2C%22defaultShowName%22%3A%22name%22%2C%22mainSettingId%22%3A%2...
by Electron
Sun Jun 26, 2016 3:23 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 14
Views: 736

Re: Tax Diversification

One issue is that marginal tax rates may change in the future. Tax reform may actually lower marginal tax rates by widening the tax base. That will make it more difficult to evaluate a Traditional IRA versus a Roth Conversion. https://www.kitces.com/blog/why-a-roth-conversion-may-be-a-bad-idea-even-...
by Electron
Fri Jun 24, 2016 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds - Tot Bond vs LT Corp vs Wellesley vs CD
Replies: 21
Views: 1863

Re: Bonds - Tot Bond vs LT Corp vs Wellesley vs CD

If taxes have been a concern, I would review recent tax returns and determine your marginal tax rate for ordinary income. Funds such as Wellesley Income, Long Term Corporate, Total International Bond, and Total Bond Market all generate ordinary income. W‌indsor fund tends to have high portfolio turn...
by Electron
Fri Jun 24, 2016 12:24 am
Forum: Investing - Theory, News & General
Topic: limiting Cap Gains - with ETFs ?
Replies: 17
Views: 1248

Re: limiting Cap Gains - with ETFs ?

I was in a similar situation recently and sold two actively managed funds that consistently paid out large distributions. Both funds had high portfolio turnover. Review all of your taxable funds on Morningstar and note portfolio turnover and the size and type of recent capital gains distributions. C...
by Electron
Mon Jun 13, 2016 3:14 pm
Forum: Investing - Theory, News & General
Topic: Non-linear Tax Code and Roth vs Traditional IRA
Replies: 57
Views: 4246

Re: Non-linear Tax Code and Roth vs Traditional IRA

Dave - Thanks for the analysis. I think we are discussing two somewhat different situations. Take the case of someone who is considering doing a Roth Conversion and has extra money available to invest. They either cannot contribute to an IRA or have extra money available after making maximum contrib...
by Electron
Sun Jun 12, 2016 2:00 pm
Forum: Investing - Theory, News & General
Topic: Non-linear Tax Code and Roth vs Traditional IRA
Replies: 57
Views: 4246

Re: Non-linear Tax Code and Roth vs Traditional IRA

There just aren't any cases where I can think a Taxable account is going to win over either a tax advantaged TIRA or a Roth. At best you could break even compared to the Roth if all your gains were in the zero tax bracket. Dave - My discussion was not about a taxable account as an alternative to a ...
by Electron
Sat Jun 11, 2016 1:17 pm
Forum: Investing - Theory, News & General
Topic: Utility Stocks - Why doing so well?
Replies: 21
Views: 2334

Re: Utility Stocks - Why doing so well?

Yes, but not before they completely omitted the dividend in 1974. That was a HUGE wakeup call to those who thought ConEd was a true widows and orphans stock. I see that Consolidated Edison did omit one quarterly dividend in April 1974 but there is an interesting story behind it. The decision was re...
by Electron
Thu Jun 09, 2016 1:39 pm
Forum: Investing - Theory, News & General
Topic: Utility Stocks - Why doing so well?
Replies: 21
Views: 2334

Re: Utility Stocks - Why doing so well?

The demand for relatively safe income is high with low interest rates in the United States, negative interest rates in Europe, and concerns about a global slowdown. Dividend income is in demand especially if a company has a history of dividend increases. The utility sector has had problems in the pa...
by Electron
Sun Jun 05, 2016 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking of dumping REIT - thoughts?
Replies: 20
Views: 2132

Re: Thinking of dumping REIT - thoughts?

In September Standard & Poor's will be creating a new real estate sector within its classification system.

http://www.reuters.com/article/usa-stoc ... SL2N16O1IL
by Electron
Sun Jun 05, 2016 1:03 pm
Forum: Investing - Theory, News & General
Topic: Non-linear Tax Code and Roth vs Traditional IRA
Replies: 57
Views: 4246

Re: Non-linear Tax Code and Roth vs Traditional IRA

We could use the nonlinearity to not only reconstitute the combined option to the Roth but also have extra left over. Thanks for the explanation and I now understand the point of the Roth Conversion option. However, I think there is a complication regarding this option that has not been discussed i...
by Electron
Sat Jun 04, 2016 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Engines made a big move in my investments
Replies: 23
Views: 3401

Re: Financial Engines made a big move in my investments

I had access to Financial Engines for quite a few years. Their recommendations are based on your inputs and the portfolio recommendations will vary accordingly. I would check your inputs and see if anything changed. In my case, it was possible to modify my inputs and see how the recommendations chan...
by Electron
Fri Jun 03, 2016 10:27 pm
Forum: Investing - Theory, News & General
Topic: Non-linear Tax Code and Roth vs Traditional IRA
Replies: 57
Views: 4246

Re: Non-linear Tax Code and Roth vs Traditional IRA

A greater concern is whether marginal tax rates change in the future. It is also possible that one's tax filing status could change at some point. One of the recommended tax reform proposals actually reduces marginal tax rates which can be accomplished by widening the tax base. A reduction in future...
by Electron
Fri Jun 03, 2016 12:28 pm
Forum: Investing - Theory, News & General
Topic: Non-linear Tax Code and Roth vs Traditional IRA
Replies: 57
Views: 4246

Re: Non-linear Tax Code and Roth vs Traditional IRA

An overall loss in a Roth IRA or Traditional IRA with basis is deductible on Schedule A as a Miscellaneous Deduction for the amount exceeding 2% of Adjusted Gross Income.

See IRS Publications 529 and 590.
by Electron
Mon May 30, 2016 1:39 pm
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 57
Views: 2395

Re: Books on Options

An alternative if you want to buy at lower prices is just use Good Until Canceled Limit Orders. Note that you can place multiple orders at different prices. In the meantime your Money Market fund will pay dividends and the yield may be headed higher. Vanguard Prime Money Market fund currently has an...
by Electron
Sun May 29, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 57
Views: 2395

Re: Books on Options

By selling puts with strike prices about 15% below the current price, I keep the option premium if SPY doesn't fall below the strike price and if SPY falls below the strike price I buy it at a much lower price. A put option 15% below current prices would be considered deep out-of-the-money and prem...
by Electron
Sat May 28, 2016 4:44 pm
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 57
Views: 2395

Re: Books on Options

The Options Industry Council offers online options courses at no charge. The second link lists the available courses.

http://www.optionseducation.org/en.html

http://education.optionseducation.org/course/
by Electron
Fri May 27, 2016 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1637

Re: Monsanto-BayerAG

Monsanto history I found the history of Monsanto quite interesting as well as the background on my particular shares. My father purchased 50 shares of Lion Oil Company in 1950. Monsanto Chemical Company bought Lion Oil in 1955 which included a chemical division. Each share of Lion Oil was exchanged...
by Electron
Wed May 25, 2016 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1637

Re: Monsanto-BayerAG

Monsanto has quite an interesting history going back to 1901. The company today with symbol MON is actually the New Monsanto which was a spin-off from Pharmacia. https://en.wikipedia.org/wiki/Monsanto#Spin-offs_and_mergers Click on "Show" at the bottom right to see a detailed pictorial. Pr...
by Electron
Tue May 24, 2016 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1637

Re: Monsanto-BayerAG

Monsanto shareholders with unrealized capital gains might have preferred Bayer stock rather than cash. Bayer ADRs (BAYRY) currently pay a higher dividend yield than Monsanto although foreign tax withholding would likely apply. Based on the current price of Monsanto shares, investors do seem skeptica...
by Electron
Thu May 19, 2016 1:08 pm
Forum: Investing - Theory, News & General
Topic: Bogle's Common Sense 5 fund portfolio
Replies: 13
Views: 2669

Re: Bogle's Common Sense 5 fund portfolio

The Five Fund Portfolio should be viewed in the context of Rule 7 as discussed in the book. The chapter is entitled "On Simplicity" and eight different rules are discussed. Rule 1 - Select Low Cost Funds Rule 2 - Consider Carefully the Added Costs of Advice Rule 3 - Do Not Overrate Past Fu...
by Electron
Wed May 18, 2016 1:59 pm
Forum: Investing - Theory, News & General
Topic: Bogle's Common Sense 5 fund portfolio
Replies: 13
Views: 2669

Re: Bogle's Common Sense 5 fund portfolio

EdLaFave wrote:Where in the book can I find him recommending that portfolio?

See page 103 in the first edition of the book.
by Electron
Tue May 17, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: Riding the yield curve, in action
Replies: 80
Views: 13742

Re: Riding the yield curve, in action

Thanks ogd and patrick013 for the replies. I just wanted to confirm that the bullet portfolio strategy can result in additional distributed capital gains at times. The distributions were quite significant for the longer maturity fund. I agree that the tax accounting and other factors may impact the ...
by Electron
Sun May 15, 2016 4:47 pm
Forum: Investing - Theory, News & General
Topic: Riding the yield curve, in action
Replies: 80
Views: 13742

Re: Riding the yield curve, in action

I noticed that the Vanguard Intermediate and Long Term Treasury funds have both paid capital gains distributions in recent years. https://personal.vanguard.com/us/funds/snapshot?FundId=0583&FundIntExt=INT#tab=4 https://personal.vanguard.com/us/funds/snapshot?FundId=0535&FundIntExt=INT#tab=4 ...
by Electron
Tue May 03, 2016 3:27 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 3139

Re: Linux/Windows Boot Problem

A 2 GB flash drive should work with or without persistence. One unknown is your BIOS and the limitations on the "USB Memory" choice. I'd also check on the capabilities of the Pendrive Linux Universal USB Installer. It may be designed to only work with the first partition on the flash drive...
by Electron
Tue May 03, 2016 1:20 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 3139

Re: Linux/Windows Boot Problem

I've had quite a few Linux distributions installed on my 20 GB second disk. You need a root partition for each distribution. It is also necessary to have one swap partition on the disk. Later on you may also want a home partition for each distribution. As I recall many distros running live include g...
by Electron
Mon May 02, 2016 3:07 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1357

Re: Foreign Tax Credit, Form 1116, Double Taxation

That seems to be exactly the way my international mutual funds (and ETFs) work: Vanguard FTSE-all-world ex-US pays a quarterly dividend and withholds the foreign taxes paid. The withholding results in a Foreign Tax Credit at the end of the year. Individual foreign stocks and international mutual fu...
by Electron
Mon May 02, 2016 2:53 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1357

Re: Foreign Tax Credit, Form 1116, Double Taxation

Turbo Tax does a marvelous job of handling the foreign tax carryover. I'm sure TurboTax is easier than my method for FTC Carryback and Carryover. When I first looked into this I was surprised at all the rules. One thing that initially surprised me is that you have to use the current year's Foreign ...
by Electron
Sun May 01, 2016 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: No tax advantaged accounts - all muni bonds?
Replies: 12
Views: 1277

Re: No tax advantaged accounts - all muni bonds?

You might review how Municipal Bonds performed in 2008-2009. Municipal Bonds can have liquidity problems in times of crisis. Here is a chart comparing Vanguard Intermediate Term Tax Exempt with Vanguard Intermediate Term Treasury. Note that Treasury bonds are tax exempt for any state income tax. htt...
by Electron
Sun May 01, 2016 1:48 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1357

Re: Foreign Tax Credit, Form 1116, Double Taxation

Thanks all for the help. I agree with the comments on Effective Tax Rate and the 0% CG/QD bracket coming into play in my example. My initial post brought up the subject of whether the calculations on Form 1116 are very precise in terms of relieving any double tax burden. My example did not illustrat...
by Electron
Fri Apr 29, 2016 3:16 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1357

Re: Foreign Tax Credit, Form 1116, Double Taxation

Thanks jjface and CyberBob for the replies. The calculations on Form 1116 are the key to the Foreign Tax Credit. Form 1116 appears to only look at the blended effective tax rate. That rate may be a combination of the separate tax rates on Ordinary Income and Capital Gains/Qualified Dividends. In add...
by Electron
Fri Apr 29, 2016 1:25 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1357

Foreign Tax Credit, Form 1116, Double Taxation

IRS Publication 514 as shown below states that the foreign tax credit is intended to prevent double taxation. How precise are the calculations on Form 1116 in meeting that goal? Consider the following example. Taxpayer A: $100K Ordinary Income, Itemized Deductions and Personal Exemption, 25% margina...
by Electron
Thu Apr 28, 2016 11:43 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 3139

Re: Linux/Windows Boot Problem

That did it! That did the trick. I used a 1 GB drive instead of a 16 GB drive and it worked! Congratulations on your success. That is great news. If a 2 GB Flash works you can try the Persistence feature. The Physical Address Extension (PAE) that was mentioned earlier is required to access memory g...
by Electron
Thu Apr 28, 2016 11:20 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 3139

Re: Linux/Windows Boot Problem

I'd definitely try the WinXP system again with the other USB Flash drive removed. In regards to any BIOS update, I would avoid that unless you can determine that additional USB boot options were added. I think there is risk in updating a BIOS should anything go wrong. Does the system identify the ty...
by Electron
Thu Apr 28, 2016 12:52 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 3139

Re: Linux/Windows Boot Problem

Attached below is the Universal USB Installer Log for my most recent installation. I have only used 1 GB and 2 GB Flash drives. I would recommend not using the Persistence feature initially. That feature allows you to store files and settings on the Flash Drive. I always verify the md5 checksum for ...
by Electron
Thu Apr 28, 2016 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: if you HAD to pick 2 actively managed funds???
Replies: 45
Views: 3486

Re: if you HAD to pick 2 actively managed funds???

The funds selected might be different for taxable and tax sheltered accounts. Portfolio turnover and tax efficiency should be evaluated for investment in a taxable account. T. Rowe Price Blue Chip Growth (TRBCX) has performed very well over time. There are a few things to monitor when investing in a...
by Electron
Wed Apr 27, 2016 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: if you HAD to pick 2 actively managed funds???
Replies: 45
Views: 3486

Re: if you HAD to pick 2 actively managed funds???

Review the available choices on Morningstar in terms of past performance, management, expenses, and portfolio strategy. Avoid any fund with a concentrated portfolio. You may have read about the problems at Sequoia Fund recently. The fund was not properly diversified and had a very large percentage o...

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