Search found 3308 matches

by House Blend
Tue May 03, 2016 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest or Roth conversion
Replies: 8
Views: 499

Re: Tax gain harvest or Roth conversion

Let me expand on pharmicist's point about crossovers. Say you have $10K of space to work with. A gain harvest of $10K saves you $1500 eventually, assuming that 15% is your future LTCG rate, and you sell/spend those shares eventually. If you don't spend those shares during your lifetime, gain harvest...
by House Blend
Mon May 02, 2016 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: [SOME!] VG Tax-Exempt Funds are exempt from the disallowance of losses on shares held less than 6-months
Replies: 10
Views: 957

Re: VG Tax-Exempt Funds are exempt from the disallowance of losses on shares held less than 6-months

FYI: It appears to me that the new Tax-Exempt Bond Index Funds from Vanguard (VTEBX, VTEAX, and VTEB) are subject to the special rule about shares held less than 6 months. More detail in this post: https://www.bogleheads.org/forum/viewtopic.php?p=2890828#p2890828 Perhaps the thread title should be r...
by House Blend
Mon May 02, 2016 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: TLH Muni Funds ?
Replies: 11
Views: 903

Re: TLH Muni Funds ?

FYI, this recent post by grabiner alerted me to the possibility that not all of Vanguard's muni funds are exempt from the 6 Month Rule. https://www.bogleheads.org/forum/viewtopic.php?p=2889416#p2889416 To recap, recall that the key feature that gets around the 6 Month Rule is that the fund declares ...
by House Blend
Mon May 02, 2016 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Hitting an investment crossroads
Replies: 21
Views: 2668

Re: Hitting an investment crossroads

Can you contribute enough to pretax plans to lower your tax bracket? This was a great thing to look at and helped seal the deal on getting out of the Roth 403b and 457 and into pretax. Doing so was able to keep me out of a higher tax bracket. Thanks for the suggestion. You may also discover that by...
by House Blend
Mon May 02, 2016 10:36 am
Forum: Personal Finance (Not Investing)
Topic: File an amended tax return, or just wait?
Replies: 5
Views: 349

Re: File an amended tax return, or just wait?

If I understand you correctly, this is a situation where you should have reported a positive amount on line 16a and 0 on 16b. And instead, you left both lines blank. In that case, I would not file an amended return. It doesn't change your current or future tax bills. If the IRS isn't happy or wants ...
by House Blend
Sun May 01, 2016 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Is this possible? [Reinvesting retirement account withdrawal funds]
Replies: 16
Views: 1140

Re: Is this possible? [Reinvesting retirement account withdrawal funds]

Suppose the RMD was 20k (and not 50k) and no other income exists (..or that the 20k includes RMD, dividend, interest, SS..) In the case of a MFJ, with standard deduction plus personal deduction for each spouse, would the tax man receive >Zero ? Zero. In addition, SS income is not taxable at all unl...
by House Blend
Sat Apr 30, 2016 10:33 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting: in rare occasions for the boglehead?
Replies: 17
Views: 1499

Re: Tax loss harvesting: in rare occasions for the boglehead?

What bugs me is the following: either these trades are between essentially similar assets that pass the letter (if not the spirit) of the tax law just enough not to be considered "wash" sales, or these trades are between assets that do differ in some substantial ways. But in the latter ca...
by House Blend
Sat Apr 30, 2016 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Conflicted about retirement withdrawal strategy
Replies: 11
Views: 2044

Re: Conflicted about retirement withdrawal strategy

The revised strategy is to draw from the tax-deferred account up to the the amount of tax deductions before hitting your taxable accounts. Don't do that. You shouldn't withdraw from tax-deferred just so that a tax bracket is filled. If filling that bracket is advantageous, then you should fill it b...
by House Blend
Sat Apr 30, 2016 9:22 am
Forum: Personal Consumer Issues
Topic: Boglehead Beer
Replies: 622
Views: 99095

Re: Boglehead Beer

Tried Stone Imperial Stout last night. 2015 vintage. http://www.beeradvocate.com/beer/profile/147/1160/ Wow. Up to this point I would have picked Bell's Expedition Stout as my favorite imperial, but this was better. Dark as molasses, thick, chocolatey and raisiny. Might simply have been a result of ...
by House Blend
Fri Apr 29, 2016 3:28 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1078

Re: Foreign Tax Credit, Form 1116, Double Taxation

From IRS Publication 514: Your foreign tax credit cannot be more than your total U.S. tax liability (Form 1040, line 44) multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and ...
by House Blend
Fri Apr 29, 2016 2:18 pm
Forum: Investing - Theory, News & General
Topic: Chart: Trying to Time the Market Can Cost You
Replies: 23
Views: 1727

Re: Chart: Trying to Time the Market Can Cost You

Morningstar says (see my link above): Total return measures the percentage change in price for a fund, assuming the investor buys and holds the fund over the time period, reinvests distributions, and does not make any additional purchases or sales. That, to me, seems to exclude periodic, regular in...
by House Blend
Fri Apr 29, 2016 12:55 pm
Forum: Investing - Theory, News & General
Topic: Chart: Trying to Time the Market Can Cost You
Replies: 23
Views: 1727

Re: Chart: Trying to Time the Market Can Cost You

I don't think they have enough information to properly assign blame for specific bad behaviors to individual investors. Agreed. 1. If a fund goes up 10% in a year and you invest a fixed amount each month, your return will be about 5%. On the face of it, it looks like you are chasing returns. In a r...
by House Blend
Thu Apr 28, 2016 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Just leave mom's annuity money?
Replies: 7
Views: 865

Re: Just leave mom's annuity money?

My 82yo Mom is in a similar situation. Has maybe 25% of assets in fixed rate annuities-not-yet-annuitized in a variety of 403(b) and IRA accounts from the 1980s. My initial instinct when taking over her finances about 7-8 years ago (my brother has DPOA) was to roll them out. But after taking a close...
by House Blend
Thu Apr 28, 2016 10:13 am
Forum: Investing - Help with Personal Investments
Topic: 401(k) to 403(b) with higher expense ratios/higher match - and confusion
Replies: 5
Views: 304

Re: 401(k) to 403(b) with higher expense ratios/higher match - and confusion

But I just would like feedback on if it’s best to keep my 401(k) with my previous employer, move to Vanguard with low ER, or transfer 401(k) to my new employer’s 403(b). The expense ratios of the two funds you hold in your 401(k) are quite low--0.13% and 0.09%. So as long as they cover asset classe...
by House Blend
Wed Apr 27, 2016 4:45 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1803

Re: Handling RMDs

The question is not is there any benefit to converting to Roth vs not converting but rather is there any benefit to taking a taxable withdrawal vs converting the same amount to a Roth. There is because the Roth is not subject to future dividends and capital gains, the taxable account is. "Your...
by House Blend
Wed Apr 27, 2016 4:44 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1803

Re: Handling RMDs

we discovered the same as OP in 2015. We too have 3 years before RMD. Decided that moving IRA straight to taxable was a better option, we could still invest in the same stuff and could use TLH. Should have done IRA to taxable or Roth prior to 2015 but didn't see the need. Then we came into an inher...
by House Blend
Mon Apr 25, 2016 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Betterment and potential wash sale?
Replies: 27
Views: 1198

Re: Betterment and potential wash sale?

1. If those both trade within 30 days of each other, am I looking at a wash sale? 1. Yes you are. (More precisely, you are if you sell at a loss in one and buy shares in the other within 30 days of each other.) And you or your tax preparer will have to figure out and account for it on your own. 2. ...
by House Blend
Mon Apr 25, 2016 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for confirmation on tax efficiency regarding TSP
Replies: 8
Views: 602

Re: Looking for confirmation on tax efficiency regarding TSP

Welcome to the forum. I'm not a TSP expert, but will bump you so that others will see this. Looks like you have a good handle on things. Your use of the term "tax free" is a bit non-standard here. Normally we talk about "taxable" and "tax-advantaged" accounts, with the ...
by House Blend
Mon Apr 25, 2016 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Least bad Tiaa-Cref option
Replies: 10
Views: 792

Re: Least bad Tiaa-Cref option

I see from your other thread that this account has $200K in it, and that this is about 55% of your total portfolio. I've never heard of transfers like this being limited to Open Enrollment periods, but anything is possible. I'm guessing this means the effective date is October or possibly next Janua...
by House Blend
Fri Apr 22, 2016 10:21 am
Forum: Investing - Help with Personal Investments
Topic: TIAA CREF Traditonal Annuity + Vanguard Target Date. Tell me I'm wrong.
Replies: 6
Views: 662

Re: TIAA CREF Traditonal Annuity + Vanguard Target Date. Tell me I'm wrong.

This balance feels right to me, but should it? Someone talk me out of this and show me where I'm making a fundamental mistake. I've read elsewhere on here about what asset class the TIAA CREF TA should count as, but I'm not seeing any clear consensus, so I'm sort of punting with this half-of-my-emp...
by House Blend
Thu Apr 21, 2016 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard versus David Swenson
Replies: 28
Views: 3532

Re: Vanguard versus David Swenson

FWIW I would side with Vanguard on this. (But maybe for different reasons--I would not equate REIT with "midcap equities"--that's silly IMO.) REITs are one asset class that I would hold either in tax-advantaged or not at all. The higher the tax bracket the more it matters. You said that th...
by House Blend
Wed Apr 20, 2016 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: REIT in taxable?
Replies: 8
Views: 762

Re: REIT in taxable?

Sorry but your last sentence seems to imply that it would be a good idea to get this REIT fund out of my taxable, pay the 15% gain tax and be done with it. This gain I am talking about is just over $5,000 so $750 tax. I can't decide if I should make a big deal out of that or not? Do you and the &qu...
by House Blend
Tue Apr 19, 2016 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Need Help, received tax refund check before filing tax returns
Replies: 10
Views: 925

Re: Need Help, received tax refund check before filing tax returns

Possibly a scammer filed a return requesting a direct deposit, but there was a problem with that so the IRS switched to a check. Thats what IRS confirmed. Someone used our id and address and tried direct deposit, but the bank rejected. so the IRS sent it to the address used for filing Something sim...
by House Blend
Tue Apr 19, 2016 11:17 am
Forum: Investing - Help with Personal Investments
Topic: RMD required of 401K AND/OR 403b plans?
Replies: 5
Views: 341

Re: RMD required of 401K AND/OR 403b plans?

The Wizard wrote:My employer offered both a traditional and Roth 403(b), so obviously no RMD needed for funds in the Roth version...

No, not obvious.

All Roth accounts in defined contribution plans have RMDs. Only Roth IRAs avoid RMDs.
by House Blend
Tue Apr 19, 2016 11:15 am
Forum: Investing - Help with Personal Investments
Topic: RMD required of 401K AND/OR 403b plans?
Replies: 5
Views: 341

Re: RMD required of 401K AND/OR 403b plans?

Actually I think these two links are better: https://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions https://www.irs.gov/Retirement-Plans/RMD-Comparison-Chart-IRAs-vs.-Defined-Contribution-Plans Leaving aside the possibility of grandfathered amounts in you...
by House Blend
Mon Apr 18, 2016 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization Earnings/Loss
Replies: 5
Views: 436

Re: IRA Recharacterization Earnings/Loss

Thanks for the update. Glad to hear that VG eventually made you whole.
by House Blend
Mon Apr 18, 2016 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax filing help!! standard vs itemized? passive or general category income?
Replies: 11
Views: 797

Re: Tax filing help!! standard vs itemized? passive or general category income?

1. I'm using Tax Act and my 1040 as of now shows a deduction of $8700, so it's using itemized, not standard, but i didn't itemize. The $8700 comes from: State and local income taxes from Form W-2, 1099, etc: $8,743 I didn't think state/local income taxes withheld from W-2s would be eligible to be u...
by House Blend
Sun Apr 17, 2016 4:37 pm
Forum: Investing - Theory, News & General
Topic: dividends: what am I missing?
Replies: 16
Views: 1596

Re: dividends: what am I missing?

In my opinion, you are quite right. Whether your return comes mostly from a dividend or mostly from capital appreciation or from a combination of the two, the effect is the same. Were dividends taxed at a different rate than capital gains, a different discussion would be had on the merits of using ...
by House Blend
Sun Apr 17, 2016 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Tax Gain Harvesting with Vanguard Mutual Funds
Replies: 24
Views: 1676

Re: Tax Gain Harvesting with Vanguard Mutual Funds

Why not open a second taxable Vanguard account, and do an exchange from Account 1 to Account 2? This should be a taxable event (as long as it is not a transfer in kind), and would allow you to maintain Admiral shares at all times. If/when your life in the 15% bracket comes to an end, you could close...
by House Blend
Fri Apr 15, 2016 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Count TIAA Traditional towards the bond allocation?
Replies: 17
Views: 948

Re: Count TIAA Traditional towards the bond allocation?

IMO, yes. TIAA Traditional counts as fixed income. CDs do too. I also would not (and do not) use the non-liquid form of Traditional as 100% of my fixed income, because I prefer to be able to rebalance from fixed income to equity when necessary. TIAA likes to sell the idea that Traditional is its own...
by House Blend
Fri Apr 15, 2016 1:27 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4684

Re: Fidelity Spartan 500 Index Fund Dividend

If taxes can be ignored, like they can be in an IRA for example, it doesn't really matter weather a dividend is paid or not. You can sell some shares to get the money you need. Accumulated dividends are reflected in the NAV. And for taxable accounts, given that the fund manager is delivering the re...
by House Blend
Thu Apr 14, 2016 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Combining TIAA Accounts (RA, GRA, GSRA)
Replies: 8
Views: 617

Re: Combining TIAA Accounts (RA, GRA, GSRA)

^As far as I know, the crediting and payout rates for Traditional in an RA or GRA have always been the same. But I'm not aware that TIAA is promising that this will continue. The RA and GRA do have some slight differences in terms of income options. See https://www.tiaa.org/public/offer/insights/pre...
by House Blend
Thu Apr 14, 2016 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Bought the wrong fund, what to do.
Replies: 12
Views: 1405

Re: Bought the wrong fund, what to do.

So I bought $15k of VSMAX, small-cap two days ago, but I meant to get VSIAX, small-cap value. This is in my taxable. Should I just leave it alone or sell and buy small cap value. I have small cap blend in my 401k due to no low cost SCV available and I want the SCV tilt. Am I being to knit picky? Th...
by House Blend
Thu Apr 14, 2016 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Combining TIAA Accounts (RA, GRA, GSRA)
Replies: 8
Views: 617

Re: Combining TIAA Accounts (RA, GRA, GSRA)

1) How/why did this happen this way - I have no recollection of opening three different accounts, it certainly wasn't an active decision. You can thank tax law and your former employer for that. It is unlikely you had a choice in the matter, aside from the decision to make elective contributions, a...
by House Blend
Wed Apr 13, 2016 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions and the Vanishing 25% and 28% Tax Bracket
Replies: 59
Views: 8666

Re: Roth Conversions and the Vanishing 25% and 28% Tax Bracket

Another option I am considering is to do a 1- or 2-year large conversion followed by several years where we stay in the 15% (0% div and LTC Gains). I just hate to pass up "free". Is anyone doing this? This makes a lot of sense. If you intend to convert some Roth dollars at tax rates of X%...
by House Blend
Tue Apr 12, 2016 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Document Retention
Replies: 13
Views: 1663

Re: Document Retention

does Vanguard keep records going back forever (well in my case around 10 years)? I don't know about "forever," but one way that not having your own records can bite you in the *** is when you become a FORMER customer of Acme Brokerage. At the end of the year, maybe you'll be lucky and the...
by House Blend
Tue Apr 12, 2016 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - TiAA-CREF and/or Fidelity options, Please help!
Replies: 19
Views: 783

Re: New Job - TiAA-CREF and/or Fidelity options, Please help!

angel, 1. Stay away from the Fidelity Freedom Funds. The Freedom index funds are fine, but the non-index ones are a dog's breakfast and have a mediocre ER. 2. A standard Boglehead portfolio using the Spartan funds in your plan would consist of: FXSTX--Spartan US Bond Index (Institutional, net ER 0.0...
by House Blend
Sun Apr 10, 2016 9:36 pm
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 95
Views: 16027

Re: TIAA-CREF dramatically increasing Expense Ratios

Again, what I'm trying to find out: - Is her "Retail" class account affected by the new ER changes...? No. The R1-R2-R3 business has to do with the CREF variable annuities, such as "CREF Stock", "CREF Social Choice", etc. During accumulation phase, these variable annui...
by House Blend
Sat Apr 09, 2016 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Trad IRA v 403b tax efficiency
Replies: 8
Views: 574

Re: Trad IRA v 403b tax efficiency

As Dutch said, a deductible trad IRA and a tax-deferred 403(b) are equally tax-efficient. Given that you are eligible to deduct, and are MFJ, and (only) one of you has access to a 403(b), then you can defer up to $5500 + $5500 + $18000 in income in 2016, a total of $29,000. Where decision making com...
by House Blend
Sat Apr 09, 2016 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Need help understanding TIAA acronyms
Replies: 21
Views: 1153

Re: Need help understanding TIAA acronyms

The TIAA website states: "TIAA Traditional Annuity is offered through a variety of contracts, including Retirement Annuities (RAs), Group Retirement Annuities (GRAs), Supplemental Retirement Annuities (SRAs), Group Supplemental Retirement Annuities (GSRAs), Retirement Choice (RC) and Retiremen...
by House Blend
Fri Apr 08, 2016 8:53 pm
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 95
Views: 16027

Re: TIAA-CREF dramatically increasing Expense Ratios

I was planning to move our IRAs (and my 401k) to Vanguard, only to discover recently that TIAA offers Vanguard TSM and TBM institutional class funds! So, is it worth shaving 1 more basis point off the ER, and retaining all our accounts at TIAA? I've read a lot about only holding Vanguard funds at V...
by House Blend
Wed Apr 06, 2016 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6794

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

Just for completeness. Go $1 over 4X the federal poverty level and the entire ACA subsidy is due and payable. Unfortunately, I'm afraid there are numerous examples of how more income can generate even more in "taxes". SS becomes taxable at certain AGI thresholds; the marginal rate at thos...
by House Blend
Wed Apr 06, 2016 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6794

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

I will always be in at least the 33% federal bracket and with state, it is about 40%. I'm sorry to bring this up, but the discussion assumes you will actually be in the 33% + 7% tax brackets in retirement. That's not impossible, but it certainly would be unusual. In today's dollars, your taxable in...
by House Blend
Wed Apr 06, 2016 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: stock/bond transaction statements for tax-deferred account
Replies: 5
Views: 303

Re: stock/bond transaction statements for tax-deferred account

OK, in order to live up to the BH reputation that we can find obscure exceptions to every rule, here's one for you: If you buy shares in your IRA and, within 30 days, you sell the same security at a loss in your taxable account, then you have a wash sale. In that case, you might want to hold onto th...
by House Blend
Wed Apr 06, 2016 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: W2 Form: State Tax deducted for previous state
Replies: 4
Views: 304

Re: W2 Form: State Tax deducted for previous state

Did you *work* in that previous state in 2015? It is a common scenario to work in State A while living in State B. In that case you still owe income tax to State A no matter where you live. Details will vary (e.g., neighboring states with income taxes often have reciprocity agreements), but generall...
by House Blend
Tue Apr 05, 2016 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Arrg, have to take an RMD
Replies: 12
Views: 1645

Re: Arrg, have to take an RMD

You didn't mention debt. Another option is

3. Pay down your mortgage.
by House Blend
Tue Apr 05, 2016 11:27 am
Forum: Investing - Theory, News & General
Topic: How many basis points matter to you?
Replies: 36
Views: 2212

Re: How many basis points matter to you?

Why is the expense ratio for a bond fund (VBMFX) so much higher than for a stock fund (VTSAX), something like 20 vs 5 basis points? You are comparing Admiral vs. Investor. The ER for Admiral shares of TBM is 7bp, and will be announced as 6bp when the next prospectus is issued at the end of this mon...
by House Blend
Mon Apr 04, 2016 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Amendment after IRA contribution
Replies: 5
Views: 332

Re: Tax Amendment after IRA contribution

I think all you need is the Form 8606, to report the (presumably) non-deductible contribution to a 2015 trad IRA.

For tax year 2016, even if you do nothing else IRA-wise, you will have to file another Form 8606 to report the conversion and determine any taxable amounts.
by House Blend
Mon Apr 04, 2016 12:33 pm
Forum: Investing - Theory, News & General
Topic: How many basis points matter to you?
Replies: 36
Views: 2212

Re: How many basis points matter to you?

Nisiprius has already raised the issue, but it bears repeating: Not all basis points are equally important. (This is even after accounting for the number of dollars involved.) Regarding this Animal Farm of basis points, where some points are more equal than others, I would prioritize basis points th...
by House Blend
Mon Apr 04, 2016 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contibution Rules
Replies: 8
Views: 507

Re: Roth IRA Contibution Rules

The $183,000 limit for 2015 for full Roth contributions was combined MAGI (Modified Adjusted Gross Income). Your MAGI is your income minus some adjustments and exclusions [401(k) contributions, student loan interest, etc.] plus any tax-exempt interest. If you're close, you just have to go through t...

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