Search found 593 matches

by FactualFran
Thu Apr 26, 2018 2:51 pm
Forum: Investing - Theory, News & General
Topic: CAGR & Sharpe Ratio
Replies: 17
Views: 358

Re: CAGR & Sharpe Ratio

From Risk and Risk Control in an Era of Confidence (or is it Greed?) remarks by John C. Bogle: After all, over-simplifying ever so slightly, the Sharpe ratio for calculating risk-adjusted return equates an extra percentage point of return with an extra percentage point of risk. But this much must be...
by FactualFran
Thu Apr 26, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Recreating VFINX cost basis?
Replies: 8
Views: 579

Re: Recreating VFINX cost basis?

I suggest that you sum the numbers from Form 1099-Div for the years the fund was held. The value I calculated from the distribution data is not necessarily exact. I don't have certain data that can affect the calculated result, such as the breakdown of capital gain distributions into short-term and ...
by FactualFran
Wed Apr 25, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds Capturing Large Percentage of Stock Market Return
Replies: 14
Views: 1185

Re: Balanced Funds Capturing Large Percentage of Stock Market Return

I should note that the percentages captured are quite a bit less for periods since the stock market bottom in March 2009. The nine year return for the Total Stock Market Fund appears to be about 15.7%. We have enjoyed relatively high returns since that market low. You may want to investigate the pe...
by FactualFran
Sun Apr 22, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Recreating VFINX cost basis?
Replies: 8
Views: 579

Re: Recreating VFINX cost basis?

Because the account was at Vanguard, I am a little surprised that Vanguard did not report the average basis of the non-covered shares. The ownership changes may have prevented Vanguard from reporting the average basis of the non-covered shares. You should be able to trust the numbers on the Form 109...
by FactualFran
Sat Apr 21, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Recreating VFINX cost basis?
Replies: 8
Views: 579

Re: Recreating VFINX cost basis?

Start with the $5,000 initial purchase, add the dollar amount of subsequent purchases including reinvested distributions, subtract the basis of the shares previously sold. The basis of shares purchased in or after 2012 should be on the Form 1099-B that was received. That basis was also reported the ...
by FactualFran
Fri Apr 20, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 22
Views: 1394

Re: First time backdoor Roth Conversion. form 8606 help

The values on Form 8606 corresponds to the situation where you made $5,500 of non-deductible contribution in 2017 you made a total of $21,770.68 non-deductible contributions prior to 2017 in 2017 you did a Roth conversion of $21,770.68 and that was the entire balance, in other words the IRA has a cu...
by FactualFran
Wed Apr 18, 2018 3:32 pm
Forum: Personal Consumer Issues
Topic: Open Office Calc problem
Replies: 17
Views: 1171

Re: Open Office Calc problem

Not adjusting cell addresses that refer to another file when rows or columns are added or deleted may be a "feature". I get the same behavior. When I copy a cell with a reference to another file, the relative row and column values in the reference get adjusted when pasted. For example, copying a cel...
by FactualFran
Sat Apr 14, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Making quarterly estimated payments w/ deductions?
Replies: 11
Views: 398

Re: Making quarterly estimated payments w/ deductions?

You can pay what you think what the actual needed payment should be, but when your income tax return for a year is processed you will be accessed underpayment penalties if you did not pay enough in a timely manner. In general, income tax authorities waive underpayment penalties only under certain co...
by FactualFran
Sat Apr 14, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: New York State income tax bracket is not a marginal rate?
Replies: 30
Views: 1892

Re: New York State income tax bracket is not a marginal rate?

I went to look at the tax tables for calculating NY taxes. On one page it looks like all the brackets are marginal, including the top bracket, but on the other page it looks like the top bracket is absolute. I wish I could find out more to help me better understand how this works. Looking at the Ta...
by FactualFran
Fri Apr 13, 2018 2:35 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 120
Views: 20270

Re: Muni Money Market funds starting to look good!

So will it run up at the end of every quarter? I did see it run up at the end of the year and into early January and then run down throughout January. Just curious why the Muni Monney Market does this and the Prime does not. I don't think looking at the full year makes sense as the overall rate has...
by FactualFran
Fri Apr 13, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes: Do you have to pay in equal installments?
Replies: 45
Views: 9311

Re: Re:

I'm resuscitating this Topic to confirm if what you said in 2009 still holds true (if it was true then :wink:). What you said then it what makes the most sense to me: paying by each due date the liability of the immediately prior 'IRS quarter'. No more no less. Now, can that approach get a tax paye...
by FactualFran
Thu Apr 12, 2018 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with $23,000 in EE US savings bonds in Treasury Direct?
Replies: 4
Views: 502

Re: What to do with $23,000 in EE US savings bonds in Treasury Direct?

EE bonds from the 1990s that were guaranteed to have a redemption value of at least twice the issue price after 17 years have already doubled in value. Ones with a current earnings rate of about 1.6% will earn a variable rate of interest that is based on 5-year Treasury security yields. Any that hav...
by FactualFran
Wed Apr 11, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule AI and Quarterly Tax Payments
Replies: 15
Views: 925

Re: Schedule AI and Quarterly Tax Payments

On the flip side, does this mean that if you receive a large bonus at the beginning of the year (e.g., 50% of your total income), that you don't have to make a large estimated tax payment in Q1 given half of the year's income occurred in that quarter? For example, if your annual income was $400k an...
by FactualFran
Tue Apr 10, 2018 5:25 pm
Forum: Investing - Theory, News & General
Topic: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson
Replies: 35
Views: 2420

Re: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson

Doc wrote:
Tue Apr 10, 2018 5:07 pm
April 2nd ?

Oh, I guess if a guy can predict something a month in advance we should pay attention to him. Not.
Thanks. The article has a publication date of April 10. On April 2 the S&P 500 price index was 0.3% below its 200-day moving average.
by FactualFran
Tue Apr 10, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule AI and Quarterly Tax Payments
Replies: 15
Views: 925

Re: Schedule AI and Quarterly Tax Payments

Does this make sense? If I generate capital gains from my taxable account, do those need to be included on Schedule AI as well? (presumably that's somewhere in the instructions, right?) If the end-of-year bonus is large enough, then to avoid underpayment penalties you will need to include with your...
by FactualFran
Tue Apr 10, 2018 4:51 pm
Forum: Investing - Theory, News & General
Topic: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson
Replies: 35
Views: 2420

Re: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson

According to the article: "On March 2, the S&P 500 Index closed below its 200-day moving average for the first time in almost two years, and has been bouncing around that level ever since." However, the using data from Yahoo, on March 2 the S&P 500 index closed above its 200-day moving average. On M...
by FactualFran
Tue Apr 10, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional recharacterized/conversation
Replies: 9
Views: 246

Re: Traditional recharacterized/conversation

According to the instructions for Form 1099-R, code 2 is to be used when the participant has not reached age 59-1/2 and the distribution is known to be a Roth IRA conversion.
by FactualFran
Tue Apr 10, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule AI and Quarterly Tax Payments
Replies: 15
Views: 925

Re: Schedule AI and Quarterly Tax Payments

Yes, you should consider using Schedule AI for 2018. You should start now and use it to determine the minimum you need to pay for the first quarter of 2018 based your actual income during the first quarter. If you receive a bonus in the fourth quarter, that income will affect the minimum amount to p...
by FactualFran
Mon Apr 09, 2018 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: 2-yr treasury ladder with 6-month rungs
Replies: 13
Views: 1211

Re: 2-yr treasury ladder with 6-month rungs

I'm considering starting a 2-yr treasury ladder with 6-month rungs at Fidelity. Using 6 month rungs will result in receiving interest payments twice a year. Those who want to receive interest payments monthly can build a ladder of six 2-year Notes with unevenly spaced rungs. One approach is to init...
by FactualFran
Sat Apr 07, 2018 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Annualized Estimated Taxes - question on first quarter adjustments
Replies: 5
Views: 489

Re: Annualized Estimated Taxes - question on first quarter adjustments

For things that are certain, is it legit to front load to the first quarter? As far as I can tell, it is legit to include in the adjusted gross income for a quarter (on line 1 of schedule AI in the column for the quarter) adjustments to the income that occurred during the quarter. Schedule AI calcu...
by FactualFran
Fri Apr 06, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Annualized Estimated Taxes - question on first quarter adjustments
Replies: 5
Views: 489

Re: Annualized Estimated Taxes - question on first quarter adjustments

I suggest that when calculating the estimated payment to currently make, that you not include reductions to income that you currently have but may not have when you file your tax return after the end of the year. Whether or not there were underpayments for a quarter depend on the values in Schedule ...
by FactualFran
Thu Apr 05, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: My first CP2000 letter from IRS! Am I missing something?
Replies: 14
Views: 1232

Re: My first CP2000 letter from IRS! Am I missing something?

Another guess is that the IRS was not able to reconcile IRA distributions on 1099-R forms with IRA rollover contributions on 5498 forms. If the tax return had included a statement that a rollover was done from an IRA to a 401(k), as the instructions for Form 1040 indicated, the IRS would have known ...
by FactualFran
Thu Apr 05, 2018 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Questions
Replies: 4
Views: 439

Re: Backdoor Roth Questions

It may matter how you get to the screen where you exchange funds. How you get to the screen may be the way used to determine whether the exchange of funds between a traditional IRA to a Roth IRA is a traditional IRA to Roth IRA conversion or a contribution to a Roth IRA. If there is a way to start a...
by FactualFran
Thu Apr 05, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?
Replies: 23
Views: 2368

Re: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?

Answers to questions in the opening post: 1. "Bucket Strategies" don't apply to me; I don't use a bucket portfolio. 2. I'm not sure what favoring Buckets 1 & 2 means. If it means that the bucket portfolio that Christine Benz has backtested had as of the start of 2018 much more in Buckets 1 & 2 than ...
by FactualFran
Wed Apr 04, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 1256

Re: Changing cost basis method from Average to Actual Cost

3. The website also states that "Your change from the average cost method to the specific identification method will be prospective only. If you sold shares of a position in this account while it was set to the average cost method, shares acquired before converting to the specific identification me...
by FactualFran
Tue Apr 03, 2018 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified dividends
Replies: 3
Views: 578

Re: Qualified dividends

Were the stocks held at both brokerages long enough to meet the 60 days holding requirement? In order for a taxpayer to get the lower tax rate on qualified dividends, common stocks must be held for more than 60 days during the 121-day period that starts 60 days before the ex-dividend date.
by FactualFran
Tue Apr 03, 2018 6:00 pm
Forum: Investing - Theory, News & General
Topic: Anomaly in S&P 500 monthly returns, Feb and Mar 2000
Replies: 20
Views: 1636

Re: Anomaly in S&P 500 monthly total return for 2/2000 and 3/2000?

In short, there is no anomaly, and no statistical glitch. The difference is real... represents a "long tail" event in small-cap stocks. So in 2000, were most of the tech stocks outside the S&P 500 and in the small-cap and mid-cap categories???? According to annual and semiannual reports of the Vang...
by FactualFran
Tue Apr 03, 2018 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 2024

Re: 8606 form - am I filling it correctly?

I'm not completely sure of when one should use all the lines in form 8606, vs. doing some in 8606 and others in Publication 590-B worksheet 1-1, but what you show is consistent with tfb's example in Backdoor Roth: A Complete How-To . In other words, lines 6-12 on 8606 are blank, and (presumably) th...
by FactualFran
Tue Apr 03, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Anomaly in S&P 500 monthly returns, Feb and Mar 2000
Replies: 20
Views: 1636

Re: Anomaly in S&P 500 monthly total return for 2/2000 and 3/3000?

The Vanguard Total Stock Market fund was trying to track the Wilshire 5000 at that time. Using index values from Wilshire, the return of the Wilshire 5000 total return index was 2.240% for 02/2000 and 5.940% for 03/2000 (as opposed to the total returns of VTSMX in the opening post of 2.545% and 5.68...
by FactualFran
Tue Apr 03, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: How did you file your income taxes?
Replies: 77
Views: 3810

Re: How did you file your income taxes?

I e-file the Federal income tax return using Free File Fillable Forms. I mail a paper State income tax return using fill-in PDF files from the State's income tax web site. I calculate income taxes semi-manually. I have written a spreadsheet with a set of rows for each income tax form I need to compl...
by FactualFran
Mon Apr 02, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Double IRA Recharacterization Tax Question
Replies: 5
Views: 294

Re: Double IRA Recharacterization Tax Question

Include with your tax return for 2017 a statement listing the recharacterizations similar to the listing in the opening post. A statement is included with the tax return for 2017 because the recharacterizations were of contributions made for 2017. Because your income is too high to contibute to a Ro...
by FactualFran
Thu Mar 29, 2018 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: IRMAA and Roth Conversions
Replies: 21
Views: 1125

Re: IRMAA and Roth Conversions

Here's the reg: https://www.ssa.gov/OP_Home/cfr20/418/418-1105.htm I am unable to determine from the text of the regulations ("Starting on January 1, 2020, the threshold amounts will resume adjustment for inflation"), whether the first inflation adjusted threshold amount is used with the MAGI for 2...
by FactualFran
Thu Mar 29, 2018 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: IRMAA and Roth Conversions
Replies: 21
Views: 1125

Re: IRMAA and Roth Conversions

Remember that inflation adjustments of the IRMAA tiers will resume in 2020. The 2020 tiers will probably be published in late October, 2019. Does that mean inflation adjusted IRMMA tiers will start to be used with the MAGI for 2018 that will determine Medicare premiums for 2020, or does that mean t...
by FactualFran
Thu Mar 29, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: IRMAA and Roth Conversions
Replies: 21
Views: 1125

Re: IRMAA and Roth Conversions

Should I be allowing IRMAA to limit our Roth Conversions? Has anyone here faced similar decisions and how did you decide what to do? There are a lot of unknowns and moving parts. I am facing a similar decision. Based on calculations for my individual circumstances, I have decided to limit Roth conv...
by FactualFran
Thu Mar 29, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: IRA ProRata Question
Replies: 13
Views: 745

Re: IRA ProRata Question

I put $5500 into Traditional IRA(non-deductible) in April or May 2016 and converted this (via backdoor-conversion) to Roth IRA in May 2016(it grew to like 6000-7000 dollars). I had about $8000 in another Traditional IRA(end of 2016). If my calculation is correct, according to Prorata Rule, I would ...
by FactualFran
Thu Mar 29, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Explain one more time how balance funds work
Replies: 37
Views: 3049

Re: Explain one more time how balance funds work

There are circumstances when taking RMDs from a balanced fund would have resulted in lower portfolio balances versus using an initially equivalent portfolio of separate stock and bond funds, without necessarily rebalancing to the target stock:bond allocation of the balanced fund. Yes, but this is e...
by FactualFran
Wed Mar 28, 2018 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Taking RMDs "In Kind"
Replies: 10
Views: 996

Re: Taking RMDs "In Kind"

I don't understand how in-kind redemption solves the problem of RMDs being a "forced tax" issue. There is sill a "forced tax" issue on an in-kind redemption from a traditional IRA. The value of the in-kind securities will be taxed as ordinary income. The value of the in-kind redemption may be used t...
by FactualFran
Wed Mar 28, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Explain one more time how balance funds work
Replies: 37
Views: 3049

Re: Explain one more time how balance funds work

There are circumstances when taking RMDs from a balanced fund would have resulted in lower portfolio balances versus using an initially equivalent portfolio of separate stock and bond funds, without necessarily rebalancing to the target stock:bond allocation of the balanced fund. An example is using...
by FactualFran
Tue Mar 27, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Explain one more time how balance funds work
Replies: 37
Views: 3049

Re: Explain one more time how balance funds work

My general conclusion is that balanced funds sure reduces the number of steps needed to manage a portfolio. Anything else to add? Another way to put it is that the manager of a balanced fund takes care of the details of rebalancing, including when it is done. The statement in the opening post about...
by FactualFran
Fri Mar 23, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 and basis understanding
Replies: 3
Views: 412

Re: Fixing 8606 and basis understanding

Does the handling of the basis in 2016 look correct? The recharacterization and conversion occurred in that year and therefore that 8606. Yes, what you described about Form 8606 for 2016 looks correct. The $10,463 in Roth conversions done in 2016 have a taxable amount of zero. The traditional IRA b...
by FactualFran
Fri Mar 23, 2018 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 and basis understanding
Replies: 3
Views: 412

Re: Fixing 8606 and basis understanding

Your income tax return for 2015 should have included a statement about the recharacterization, including: the amount contributed to the Roth IRA for 2015, the date of that contribution, the amount recharacterized to a traditional IRA (the contribution for 2015 and change in value attributed to it wh...
by FactualFran
Tue Mar 20, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premiums
Replies: 35
Views: 4241

Re: Medicare Part B premiums

Regarding Medicare Part B premiums, I'm presently retired and age 63 and I will have to appeal my final year AGI due to cessation of employment. Is there a review of AGI "each and every year" thereafter to determine future Part B cost? I'm trying to plan withdrawals from my tax deferred accounts as...
by FactualFran
Tue Mar 20, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund VPGDX
Replies: 25
Views: 3060

Re: Vanguard Managed Payout Fund VPGDX

When the fund was introduced--I don't have the exact language, but it was pretty clear--all compared the fund (favorably) to an annuity. "An alternative to an annuity for people who want monthly income and don't want to give up control of their investment," or something like that. I think Vanguard ...
by FactualFran
Fri Mar 16, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Re-characterize nondeductible TIRA deposits into ROTH?
Replies: 8
Views: 495

Re: Re-characterize nondeductible TIRA deposits into ROTH?

Yes, you should be thinking about re-characterizing. No further taxes will be owed by doing a re-characterization. The re-characterization has to be done by the due date of the return or the due date plus extensions. If you re-characterize after filing a return but before the due date plus extension...
by FactualFran
Wed Mar 14, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: How do you calculate IRA performance....
Replies: 1
Views: 144

Re: How do you calculate IRA performance....

I have found using the relevant hyperlink on the Vanguard Accounts web page to be of use. On the Account Overview page, select the Personal preformance link in the bottom portion of the page. Select the account or the account group (such as Retirement) of interest. Set the view for the desired custo...
by FactualFran
Tue Mar 13, 2018 4:28 pm
Forum: Investing - Theory, News & General
Topic: Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index
Replies: 4
Views: 888

Re: Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

One reason is that the fund continues to list as a stock holding a security that remains after a stock has been dropped from the index, say because a previously publicly traded corporation has been acquired by a private company. It may take some time for a security that remains of a previously publi...
by FactualFran
Tue Mar 13, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Stock Market Index Fund Unobservable Inputs
Replies: 6
Views: 731

Re: Vanguard Total Stock Market Index Fund Unobservable Inputs

My husband was able to download the annual report into excel and add up the stocks indicated as "unobservable inputs." In the end it isn't a large position. The annual report does not spell it out very well. The only reason I made note when reading the report is because John Bogle always said to re...
by FactualFran
Fri Mar 09, 2018 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth for someone who makes less than threshold
Replies: 6
Views: 697

Re: Backdoor Roth for someone who makes less than threshold

Another common corrective transaction is to recharacterize to a traditional IRA by the due date of the tax return the contribution and the return attributed to it while it was in a Roth IRA. I believe the new tax law prohibits this now, or at least for any tax year beyond 2017. The new tax law remo...
by FactualFran
Fri Mar 09, 2018 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth for someone who makes less than threshold
Replies: 6
Views: 697

Re: Backdoor Roth for someone who makes less than threshold

It is not necessary to wait to contribute to a Roth IRA until you know whether your income for the year is below the limit for making a Roth IRA contribution. If you contribute to a Roth IRA and your income for the year turns out to be above the limit, then there a corrective transactions that can b...
by FactualFran
Tue Mar 06, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains Question
Replies: 10
Views: 1269

Re: Capital Gains Question

I guess that's one thing that got me confused. Last year, the income tax 15% bracket breakpoint (as well as the breakpoint for the zero capital gains rate) was $75,900 (for MFJ). I don't know what that would have been this coming tax year in a world where the new law didn't take effect, but it woul...