Search found 129 matches

by Ethelred
Sat Feb 25, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Regarding taxation USA
Replies: 3
Views: 282

Re: Regarding taxation USA

Can I choose to be considered as a resident alien for tax purpose, even if I do not pass the substantial presence test or any other test? Non-resident aliens are taxed at 30% withholding on all dividends. While resident aliens are only taxed at the long term cap gains rate, and also in a progressiv...
by Ethelred
Tue Feb 21, 2017 2:57 pm
Forum: Investing - Theory, News & General
Topic: The case against small cap value
Replies: 79
Views: 13738

Re: The case against small cap value

Morningstar indicates that all of those funds are right where they are supposed to be in the mid-cap value box. http://www.morningstar.com/funds/XNAS/VMVIX/quote.html http://www.morningstar.com/funds/XNAS/VMVAX/quote.html http://www.morningstar.com/etfs/arcx/voe/quote.html Yes. Bear in mind that th...
by Ethelred
Tue Feb 21, 2017 9:02 am
Forum: Investing - Theory, News & General
Topic: The case against small cap value
Replies: 79
Views: 13738

Re: The case against small cap value

While I agree that mid-cap value has had great historic returns, and I still hold some, someone here pointed something out to me last week: Vanguard's MCV fund (VMVIX/VMVAX/VOE) currently has pretty much no value tilt at all, and it hasn't had a consistent tilt to value since early 2011. For the PV ...
by Ethelred
Mon Feb 20, 2017 8:18 am
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 34
Views: 3715

Re: 2016 Relative Tax Efficiency

I consider marginal rate to be the tax paid on the last x dollars of income divided by x. X may be $1 or any other amount you choose like your RMD for example. To get the number use a tax software program. I use TurboTax. Yes, I use TaxAct. Thanks. I'm afraid that wasn't the help I was looking for ...
by Ethelred
Sun Feb 19, 2017 3:20 pm
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 34
Views: 3715

Re: 2016 Relative Tax Efficiency

So, this thread has made me realize that our effective LTCG / QDI rate is really high, due to AMT, as well as our marginal income tax being really high. I therefore have a question: what, if any, level of income tax and long-term capital gains tax during the accumulation phase would push you to inve...
by Ethelred
Sun Feb 19, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Is there ideal Asset LOCATION % as you get closer to retirement?
Replies: 45
Views: 2197

Re: Is there ideal Asset LOCATION % as you get closer to retirement?

ved, In theory, yes. In real world? I am a lifetime 30+% gross income saver. I could not even reach half of that number. I max my Trad. 401K every year for 20+ years with the exception of maybe 5 years in total. <<Let's say, In the first 10 years, they contribute $10k per year.>> Student loan and l...
by Ethelred
Sun Feb 19, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Is there ideal Asset LOCATION % as you get closer to retirement?
Replies: 45
Views: 2197

Re: Is there ideal Asset LOCATION % as you get closer to retirement?

I'm afraid several of your assumptions are wrong: A) The only kind of employer that are willing to contribute to the max is the self-employed people. Without going into details, I can guarantee that all of the senior managers and executives at both my company and my wife's company, are at the $54k c...
by Ethelred
Sun Feb 19, 2017 1:47 pm
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 34
Views: 3715

Re: 2016 Relative Tax Efficiency

It appears to me that the top of the AMT exemption phaseout is intended to coincide (for households without large adjustments beyond the schedule A lines anyway) with a non-LTCG/QDIV income level that marks the beginning of the 39.6% bracket and 20% LTCG/QDIV taxation in the regular scheme. As well...
by Ethelred
Sun Feb 19, 2017 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Is there ideal Asset LOCATION % as you get closer to retirement?
Replies: 45
Views: 2197

Re: Is there ideal Asset LOCATION % as you get closer to retirement?

ved, <<When does a tax-deferred amount be too much at retirement? >> <<I would think having all $2.5 mil in tax-deferred is not ideal. >> I am not quite sure that this is possible. There is a limited amount of tax deferred space available (18K for less than 50 years old, 24K for 50 and above) every...
by Ethelred
Fri Feb 17, 2017 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Does anyone have experience with Fidelity BrokerageLink?
Replies: 14
Views: 448

Re: Does anyone have experience with Fidelity BrokerageLink?

Don't want to hijack the thread but which funds are commission free? I have heard ishares funds and etfs and commission free on brokeragelink but would like a comprehensive list so I can see what my options are. I would call your 401k provider and ask for details - I would not assume there is a one...
by Ethelred
Fri Feb 17, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidating 401K to consolidate - should I stay in CASH
Replies: 7
Views: 414

Re: Liquidating 401K to consolidate - should I stay in CASH

Here's what I would do with 401k rollover money, inheritance or if DB Cooper accidentally dropped a bundle containing 20 billion dollars on my driveway: 1) Look at my target asset allocation. 2) Buy the appropriate funds immediately to fulfill that target asset allocation. 3) Go make myself an ice ...
by Ethelred
Fri Feb 17, 2017 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Does anyone have experience with Fidelity BrokerageLink?
Replies: 14
Views: 448

Re: Does anyone have experience with Fidelity BrokerageLink?

I currently use the BrokerageLink in my 401k for our international emerging markets and international small allocations. I'm happy with the flexibility it provides, though not without reservations. It works fine, though there I think there's a day or two delay between purchases in my main 401k and B...
by Ethelred
Fri Feb 17, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 34
Views: 3715

Re: 2016 Relative Tax Efficiency

Ethelred -- Kitces says yes: "In an AMT environment, the primary planning opportunity is actually to manage income around the AMT “bump zone” – that span of income where the AMT exemption is phased out, temporarily boosting AMT rates (and capital gains rates!) by an extra 7%." and "n...
by Ethelred
Fri Feb 17, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 1205
Views: 148980

Re: What's Your Credit Card Rewards Strategy?

My spouse is not citizen but legal resident. They have had 1 Chase Freedom Visa (on their own) for around a year and have no other credit history. Does anyone know if they would be eligible for any kind of card with a bonus (the Chase had a bonus of $100 or $150)? They don't want to apply and have ...
by Ethelred
Fri Feb 17, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 34
Views: 3715

Re: 2016 Relative Tax Efficiency

Also, I would suggest deducting state tax from federal tax (either always, or at least as an option by default). Most investors who pay state tax and have taxable investments itemize deductions. The tax cost of an 8% state tax is only 6% if you are in the 25% federal tax bracket. As noted above, so...
by Ethelred
Tue Feb 14, 2017 4:07 pm
Forum: Investing - Theory, News & General
Topic: help me understand factor analysis - Regression vs M* box
Replies: 8
Views: 323

Re: help me understand factor analysis - Regression vs M* box

One of the other problems with the portfolio visualizer data is the limited historical data for some funds. Take for example VMVAX, it only has five years of data - the ETF version, VOE, has 10 years of data and you see much larger size and value exposure. Of course that might not tell you much eit...
by Ethelred
Tue Feb 14, 2017 4:04 pm
Forum: Investing - Theory, News & General
Topic: help me understand factor analysis - Regression vs M* box
Replies: 8
Views: 323

Re: help me understand factor analysis - Regression vs M* box

What is your R squared? If it's below 95% or so you probably don't have a good match and shouldn't put much stock in the results. You definitely need to include term/credit since 30% of your portfolio is fixed income. Honestly, get rid of mid-cap value. It doesn't tilt heavily enough to justify inc...
by Ethelred
Tue Feb 14, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: help me understand factor analysis - Regression vs M* box
Replies: 8
Views: 323

Re: help me understand factor analysis - Regression vs M* box

In order to determine your factor loadings via regression (i.e. with Portfoliovisualizer) you have to select matching data (the dropdown called "Stock market" in Portfolio Visualizer). As you portfolio does not resemble a global stock market portfolio (USA would only have about 60% and no...
by Ethelred
Tue Feb 14, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: help me understand factor analysis - Regression vs M* box
Replies: 8
Views: 323

Re: help me understand factor analysis - Regression vs M* box

The equity portion of your portfolio is heavily tilted to the U.S. The factor regression you ran is using global equities with U.S. stocks at their global market weight. I think this helps to explain your results, including the 224bp of annual alpha. (U.S. stocks outperformed non-U.S. significantly...
by Ethelred
Tue Feb 14, 2017 9:44 am
Forum: Investing - Theory, News & General
Topic: help me understand factor analysis - Regression vs M* box
Replies: 8
Views: 323

help me understand factor analysis - Regression vs M* box

So, I'm looking for some help understanding how my portfolio is actually tilted, as opposed to how I think it's tilted. My IPS looks like this: 20% Large-cap blend (e.g. VOO) 20% Mid-cap value (VMVAX) 10% Small-cap value (VSIIX) 10% Total international (VTIAX) 5% Emerging markets (FPMAX) 5% Internat...
by Ethelred
Mon Feb 13, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Corp - Long Term Incentive
Replies: 13
Views: 1359

Re: Mega Corp - Long Term Incentive

2. LTI Stock - Stick is split into two buckets. One you receive after a year and another after three years post the award. They are received into my brokerage account as 'Net Shares' - with taxes (Fed Withholding, Fed MED/EE, Fed OASDI/EE & State Withholding) already taken out. Assume the only ...
by Ethelred
Tue Feb 07, 2017 6:41 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 294
Views: 32084

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

So this page says offer expired 12/31/16, but it's still active. https://www.merrilledge.com/offers/1000offer Anyone try it this year? I need to roll over my 401k next month and I'm not sure I trust Vanguard to handle it correctly (part of it is a roth 401k), might as well take an incentive bonus a...
by Ethelred
Mon Feb 06, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: IRA Account Strategy - Spouse Overlap
Replies: 20
Views: 1453

Re: IRA Account Strategy - Spouse Overlap

Thank you for your comment. My main motivation is with the diversification, our portfolios would react differently. example: my portfolio is up, when hers is down; and her portfolio is up when mine is down. I think this is a bad idea, because of the difficulty it will cause with rebalancing. When t...
by Ethelred
Mon Feb 06, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Expat Investor - portfolio recommendations
Replies: 9
Views: 667

Re: Expat Investor - portfolio recommendations

I think you need to be asking this question to someone who knows about Swiss and Japanese taxation. Asset allocation is only one part of the puzzle for expats.
by Ethelred
Sun Feb 05, 2017 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Keeping some investments in Europe - HOW TO?
Replies: 13
Views: 892

Re: Keeping some investments in Europe - HOW TO?

I have a few shares from a share save scheme from a previous employer in the UK. When I wanted to sell them, after moving to the US, the broker in charge of the scheme was unable to sell shares for US tax residents. So, I moved them to the US, and they are sat in an account with Fidelity. Dividends ...
by Ethelred
Sat Feb 04, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: 70% marginal tax rate !?!
Replies: 25
Views: 4062

Re: 70% marginal tax rate !?!

Ouch! Our marginal rate is pretty heavy because we're at the worst point for AMT, but we have the luxury that Texas has no state income tax. Our property tax and sales tax are relatively low because we choose to live in a house that's still nice, but far cheaper than what we could afford if we wante...
by Ethelred
Fri Feb 03, 2017 10:35 am
Forum: Personal Consumer Issues
Topic: Best Expat Forums or Advice on Expat Package?
Replies: 10
Views: 1130

Re: Best Expat Forums or Advice on Expat Package?

I believe the main forum for US expats in the UK is called UK Yankee. I don't post myself, but have read threads there before because some of the issues for British expats in the US are similar to those for US expats in the UK, especially when it comes to taxes.
by Ethelred
Wed Feb 01, 2017 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Unsure which country i'm retiring in - investing advice?!
Replies: 4
Views: 683

Re: Unsure which country i'm retiring in - investing advice?!

If you retire to the UK, you will want to invested in what are termed "HMRC reporting funds". I believe some Vanguard Ireland-domiciled ETFs fit this requirement. Others know more about these things than I do (possible Valuethinker?), but Google is also your friend. I am also a British exp...
by Ethelred
Sun Jan 29, 2017 11:55 am
Forum: Investing - Theory, News & General
Topic: Oil Speculators, are you greedy or fearful?
Replies: 26
Views: 1948

Re: Oil Speculators, are you greedy or fearful?

What time horizon do the majors use for amortization of newly developed resources? I thought Exxon used 20-30 years. So, it might take 3-5 years to bring a conventional resource on line, but if prices are cr@p 10 years from now, you still lose. I don't know their exact number, but Exxon are known f...
by Ethelred
Sun Jan 29, 2017 10:12 am
Forum: Investing - Theory, News & General
Topic: Oil Speculators, are you greedy or fearful?
Replies: 26
Views: 1948

Re: Oil Speculators, are you greedy or fearful?

I think we agree @Valuethinker. The HUGE change in the last couple years is in future projections of global demand, which have gone from exponentially climbing **forever** (in the economic sense 30-50 years) to sensible people debating when peak global demand will occur. Since it was never clear wh...
by Ethelred
Sun Jan 29, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Oil Speculators, are you greedy or fearful?
Replies: 26
Views: 1948

Re: Oil Speculators, are you greedy or fearful?

Of course oil producers would buy shorts, but what is the deal with the record volume? On your first point, I am not involved with the economic strategy side of the business, but if I were to guess, I'd say that they are doing just what they are doing in 2014. The price is now about $50, but WTI re...
by Ethelred
Sat Jan 28, 2017 12:09 pm
Forum: Investing - Theory, News & General
Topic: Oil Speculators, are you greedy or fearful?
Replies: 26
Views: 1948

Re: Oil Speculators, are you greedy or fearful?

I'm guessing that no-one else in this thread has any internal knowledge of the oil industry. Some of this opening post is spot on, but the fundamentals are the most important part, and they are missing. I don't know if I agree with the thesis that hedgies are 'smart money', but they are probably bet...
by Ethelred
Thu Jan 19, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes owed 2016 as % of AGI?
Replies: 18
Views: 1176

Re: Taxes owed 2016 as % of AGI?

No, of course, we're not taking anything for granted. I was more interested in whether or not our total tax was a standard deviation (or two) above the mean for our AGI, even though I'm fairly certain we haven't missed any obvious deductions/deferments/contributions. You seem to be operating under ...
by Ethelred
Thu Jan 19, 2017 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes owed 2016 as % of AGI?
Replies: 18
Views: 1176

Re: Taxes owed 2016 as % of AGI?

Just preliminarily crunched the numbers for 2016, and our total tax is 155k (125k Federal, 30k State) on 450k income, or 35% of our AGI. This is a massive jump for us, as our salary was significantly lower in 2015 (paid 60k total tax on 260k income, or 23% of AGI). We maximize contributions to 403b...
by Ethelred
Wed Jan 18, 2017 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: shopping for a new bank
Replies: 2
Views: 309

Re: shopping for a new bank

Not sure if you're after an online bank or brick and mortar, but this is the latest JD Power survey on banking customer service. California is the first chart shown.
http://www.jdpower.com/press-releases/2 ... tion-study
by Ethelred
Wed Jan 18, 2017 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Is Being a Private Banking Client Worth it?
Replies: 97
Views: 22051

Re: Is Being a Private Banking Client Worth it?

I am looking into Chase private client. It seems to me to offer services with no obligations other than an expectation of 250k at the bank. From what i can tell, the services are nice perks and I don't have to end up paying more. Here are the perks that I would appreciate: -possible access to chase...
by Ethelred
Sun Jan 15, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Which brokerage to sell stock awards?
Replies: 12
Views: 662

Re: Which brokerage to sell stock awards?

Are you even sure that you can move restricted stock/options to another broker? That wasn't possible in the single situation I'm familiar with. The company chose the broker and that's who you had to deal with. YMMV. The options can't be moved - I'd sell and then transfer cash if I did it this way. ...
by Ethelred
Sat Jan 14, 2017 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct Donation Assistant
Replies: 13
Views: 1831

Re: TaxAct Donation Assistant

After the early version of Taxact came out in December, I did an estimate of our 2016 taxes. I used the Donation Assistant in the 2015 version to work it out, then saved the whole file separately. Once the 2016 version is updated, I'll might re-enter the numbers, or just assume they're close enough.
by Ethelred
Sat Jan 14, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Which brokerage to sell stock awards?
Replies: 12
Views: 662

Re: Which brokerage to sell stock awards?

Last year, I tried to transfer vested book shares from the transfer agent for my spouse's company to Vanguard to sell. The Vanguard rep had no idea how to do this. Fidelity allowed me to easily do it online. So I recommend Fidelity. Thanks for the info. It is strange, though. The Vanguard website i...
by Ethelred
Sat Jan 14, 2017 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity HSA fees
Replies: 6
Views: 513

Re: Fidelity HSA fees

The $12/qtr HSA fee is what Fidelity charge my account, too. My employer covers it, but stops once an employee leaves the company.

I hadn't heard that it's waived for total holdings above $250k, though. That could be useful.
by Ethelred
Fri Jan 13, 2017 12:59 pm
Forum: Personal Consumer Issues
Topic: 24 hour stop over at LHR, what all can I visit in London?
Replies: 31
Views: 1802

Re: 24 hour stop over at LHR, what all can I visit in London?

London has more worthwhile attractions than you could visit in a month, let alone a single day. Without knowing what your interests are when travelling, this is a very difficult question to answer.
by Ethelred
Wed Jan 11, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Which brokerage to sell stock awards?
Replies: 12
Views: 662

Re: Which brokerage to sell stock awards?

I've had checks sent in the past. Heck...I currently am awaiting. $10,000 check from a broker and don't give it two thoughts that its coming in the mail. And I'm convinced that my mailman is psychotic. I don't think our local mailman (or mailwoman) is dishonest, but the mail isn't that reliable. We...
by Ethelred
Wed Jan 11, 2017 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Which brokerage to sell stock awards?
Replies: 12
Views: 662

Re: Which brokerage to sell stock awards?

Are these options or stock you purchased because you awarded the option to buy? Assuming stock, I would move to Fidelity and then you can sell and transfer money to bank account. I haven't worked with other brokerages. Some (restricted) stock awards and some stock options. The options are all curre...
by Ethelred
Wed Jan 11, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Which brokerage to sell stock awards?
Replies: 12
Views: 662

Which brokerage to sell stock awards?

OK, I'm looking for some advice on whether I should avoid using Merrill Lynch to sell my company stock, and if so, how best to go about it. A few years ago, my employer decided to change administrator of the company stock awards and stock options from Schwab to Merrill Lynch. In November, I sold som...
by Ethelred
Wed Jan 11, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: 401k reached critical mass - 21% increase in one year
Replies: 14
Views: 1686

Re: 401k reached critical mass - 21% increase in one year

I don't know what happened to my 401k but it seems to have reached critical mass. Since Jan 2016 I have experienced a 21% increase! :beer The portfolio is rather boglehead, just a mix of Fidelity 'target' funds. I contribute the max and employer match is effectively 5k/year. Anyone else see this? I...
by Ethelred
Tue Jan 10, 2017 7:30 pm
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio with Sector Funds
Replies: 33
Views: 2213

Re: Lazy Portfolio with Sector Funds

Thanks very much to everyone who replied to me in this thread. I glanced through the "Comprehensive Look" paper and it looks interesting. I've bookmarked it, and I'll read through when I have a free hour or so.
by Ethelred
Mon Jan 09, 2017 4:16 pm
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio with Sector Funds
Replies: 33
Views: 2213

Re: Lazy Portfolio with Sector Funds

TJSI wrote:And there is a lot of research that over long periods, low volatility stocks outperform the market.

There is? Can you link to some of that research? Because that's directly the opposite of what is generally expected from the "risk premium".
by Ethelred
Mon Jan 09, 2017 2:10 pm
Forum: Investing - Theory, News & General
Topic: Expat Wanting to Invest in US Mutual Funds
Replies: 11
Views: 830

Re: Expat Wanting to Invest in US Mutual Funds

Bear in mind that you may be restricted by the laws of the country that you live in, too.

For example, US citizens who are resident in the UK are, for practical purposes, restricted to investing in ETFs that count as "HMRC-reporting funds".
by Ethelred
Mon Jan 09, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Best Financial Moves You've Made
Replies: 141
Views: 16184

Re: Best Financial Moves You've Made

Some things that have worked for me: 1. I live below my means. 2. Along with my family, I invested time and money in my education to allow me an interesting and well-paid job. 3. I found a great spouse who also follows points 1 and 2, even if I wouldn't describe her as frugal. 4. I held a lot of my ...
by Ethelred
Sat Jan 07, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America/Merrill Edge - Preferred Rewards
Replies: 220
Views: 34490

Re: Bank of America/Merrill Edge - Preferred Rewards

I opened my account with ME on 12/30 (thanks Earl Lemongrab for the urging). I initiated the transfer of my individual Vanguard account. The incoming funds from Vanguard will not be enough to put me over the $50k balance tier. Since the Market could fluctuate considerably over the next 8-10 days wh...

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