Search found 3418 matches

by House Blend
Fri Aug 26, 2016 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Rebalance Long Neglected TIAA/CREF/Vanguard Portfolio
Replies: 10
Views: 558

Re: Rebalance Long Neglected TIAA/CREF/Vanguard Portfolio

I basically started reallocating some funds but then got very cold feet. I'm worried I've made things worse. I've started moving funds from CREF Stock R3 to four funds that satisfy some of the desired allocations mentioned above. I'm leaving TIAA Traditional alone (40%) since my (90%) contributions...
by House Blend
Fri Aug 26, 2016 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Auto W/D with SpecID (specific lot ID) turned on
Replies: 2
Views: 206

Re: Auto W/D with SpecID (specific lot ID) turned on

Probably it's FIFO, but check your prospectus.

I do recall that if you have checkwriting privileges on a bond fund, and elect Spec ID, Vanguard will use FIFO to cover your checks.
by House Blend
Thu Aug 25, 2016 10:28 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 283
Views: 31396

Re: TIPS - Did you give up?

Speaking of other sources, perhaps you are unaware that the inception date on the CREF Inflation-Linked Bond variable annuity is 5/1/1997, so it provides a few more years of real world TIPS data prior to VIPSX. Price history can be downloaded from the TIAA website. What I don't recall, and may be h...
by House Blend
Wed Aug 24, 2016 5:06 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 283
Views: 31396

Re: TIPS - Did you give up?

All - please note that Portfolio Visualizer uses the Simba spreadsheet for Tips returns and includes synthetic returns for the time period before VIPSX existed. The synthetic returns originally came from an academic paper without tables of data. As I recall, the person who generated the annual retu...
by House Blend
Wed Aug 24, 2016 4:03 pm
Forum: Personal Consumer Issues
Topic: Internet security: which is the lesser of 2 evils?
Replies: 37
Views: 2581

Re: Internet security: which is the lesser of 2 evils?

1) See if you can do what you need to do by calling their 800 phone number This. On rare occasions, I've had to do financial transactions while on the road, with online choices limited to public or semi-public wifi or mobile apps. In those situations, I use plain old phone calls from my cell phone....
by House Blend
Mon Aug 22, 2016 5:09 pm
Forum: Investing - Theory, News & General
Topic: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt
Replies: 59
Views: 4577

Re: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt

^The multiple administrators thing is standard in the 403(b) world. No doubt there is potential for abuse or corruption wherever large sums of money are involved, but it can also be used to drive competition among the TPAs. (Works better if your employees have have billions invested in the plan, rat...
by House Blend
Mon Aug 22, 2016 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Filling the brackets: Roth Conversion vs Tax Gain Harvest
Replies: 6
Views: 480

Re: Filling the brackets: Roth Conversion vs Tax Gain Harvest

Another consideration is the conflict between gain harvesting and loss harvesting. For example, if you have been taxable investing and diligently harvesting losses over a long period, you will likely have accumulated a large bank of carryover losses if/when you enter the 0% LTCG bracket in pre-RMD, ...
by House Blend
Mon Aug 22, 2016 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Timing for RMD withdrawals?
Replies: 33
Views: 2692

Re: Timing for RMD withdrawals?

If you take the RMD from TSM and invest it in TSM, it would seem best to do it early in the year because if it grows further in a tIRA then when you or your heirs eventually withdraw it, regular income taxes would be due. If it grew in a taxable account, it would eventually be subject to LTCG rates...
by House Blend
Sun Aug 21, 2016 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Timing for RMD withdrawals?
Replies: 33
Views: 2692

Re: Timing for RMD withdrawals?

You can pay the taxes from either: *Withholding from the RMD ( not recommended if doing a conversion as you will lose this space forever in your Roth). --this also decreases the number of shares you own unless you buy the same number in your taxable account Conversions and RMDs are two different tr...
by House Blend
Sun Aug 21, 2016 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Timing for RMD withdrawals?
Replies: 33
Views: 2692

Re: Timing for RMD withdrawals?

You can pay the taxes from either: *Withholding from the RMD ( not recommended if doing a conversion as you will lose this space forever in your Roth). --this also decreases the number of shares you own unless you buy the same number in your taxable account Conversions and RMDs are two different tr...
by House Blend
Sat Aug 20, 2016 10:26 am
Forum: Investing - Theory, News & General
Topic: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt
Replies: 59
Views: 4577

Re: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt

Notice that all are private schools. I believe the reason is that Public U/Govt retirement plans are not subject to ERISA. (Or simply the fact that it is harder to sue the gubmint.) Otherwise, the University of Calif. would be an attractive target, with probably ~10 times the assets of any of the pl...
by House Blend
Fri Aug 19, 2016 9:25 pm
Forum: Investing - Theory, News & General
Topic: High RMD’s, would you do anything different?
Replies: 54
Views: 4782

Re: High RMD’s, would you do anything different?

I would say the idea is to 1. Retire early and 2. Live off of taxable account while paying little to no taxes and 3. Doing 401(k)/IRA to Roth IRA conversions while in that low tax bracket every year until RMD age, so that 4. At RMD age, you can make QCDs and not 5. Have to pay any taxes while 6. Li...
by House Blend
Wed Aug 17, 2016 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA to Roth conversion, how to pay tax and have 100% of it go to my Roth?
Replies: 30
Views: 1682

Re: Rollover IRA to Roth conversion, how to pay tax and have 100% of it go to my Roth?

Just so there's no misunderstanding, that assumes that any estimated taxes were paid equally throughout the year. Otherwise you'll need Form 2210 I know I'm getting picky, but this statement only applies if your income is paid to you equally throughout the year. Suppose you had no income one year e...
by House Blend
Wed Aug 17, 2016 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Tax strategy - Inherited tIRA to Roth 403b?
Replies: 2
Views: 238

Re: Tax strategy - Inherited tIRA to Roth 403b?

* Are you Single or MFJ? * Do you really mean Taxable Income = $53K? (I'm guessing not.) FWIW, Gross Wages, Adjusted Gross Income, and Taxable Income are three completely different things, and confusing them can lead to strategic mistakes. Independent of that, given that you have penalty-free access...
by House Blend
Tue Aug 16, 2016 11:52 am
Forum: Investing - Help with Personal Investments
Topic: VTSAX Vs. FSTVX - Capital Gains
Replies: 5
Views: 601

Re: VTSAX Vs. FSTVX - Capital Gains

There's a bit more to the story.

Because the Vanguard ETF for Total Stock is another share class alongside VTSAX, it means that mutual fund shareholders get to share in the tax advantages of the ETF. That's why VTSAX has never had a cap gains distribution in the 15 years since VTI was created.
by House Blend
Tue Aug 16, 2016 11:34 am
Forum: Investing - Help with Personal Investments
Topic: TIAA vs Fidelity at new employer
Replies: 12
Views: 613

Re: TIAA vs Fidelity at new employer

I agree though that the TIAA Life Cycle Index funds, institutional class, are very attractive at 12 bp for this stage of your life; I have a hard time believing you are going to find something that clearly beats this, given the other demands on your time, energy, and attention. However, I see no ev...
by House Blend
Tue Aug 16, 2016 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Using TIAA traditional to park cash.
Replies: 3
Views: 316

Re: Using TIAA traditional to park cash.

The $150K in taxable might be worth $75K when you need it. As long as you're ok with that, then it looks good to me. FWIW, I wouldn't call this "parking cash". As long as it doesn't interfere with having access to sufficient capital, it boils down to increasing the return on your portfolio...
by House Blend
Mon Aug 15, 2016 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Help- TIAA Traditional Contract, no new contributions allowed in it
Replies: 7
Views: 653

Re: Help- TIAA Traditional Contract, no new contributions allowed in it

I will not be concerned as if I understand correctly, you can still move money between investments in the old contract. So assuming your old contract does not consist of TIAA Traditional only, say you have equity index, then you can do the following: Put $X in equity index in the new contract from ...
by House Blend
Fri Aug 12, 2016 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Remote work W2, State Taxes?
Replies: 8
Views: 802

Re: Remote work W2, State Taxes?

Certainly you will report this income in your home state. I suppose it's possible your employer made a mistake (were you previously working in CA?). The fact that the work was done in your state *may* be material. But your state of residence or mailing address has no bearing on whether you owe tax t...
by House Blend
Fri Aug 12, 2016 9:52 am
Forum: Personal Consumer Issues
Topic: Request for recommendations: English Mystery TV series
Replies: 74
Views: 4045

Re: Request for recommendations: English Mystery TV series

I don't think anyone mentioned Prime Suspect yet. Really superb acting, but given that it stars Helen Mirren, it shouldn't be a surprise. For British mysteries, the top of my heap would be Inspector Morse , Prime Suspect , and Sherlock . Also check out The Fall , with Gillian Anderson. Set in Northe...
by House Blend
Wed Aug 10, 2016 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: (31, single) Moving $2M out of Morgan Stanley and into... Vanguard? (Plus next steps?)
Replies: 24
Views: 4178

Re: (31, single) Moving $2M out of Morgan Stanley and into... Vanguard? (Plus next steps?)

Use a municipal bond fund if its taxable equivalent yield for your tax bracket is higher than the comparable taxable bond fund. What happens if my tax bracket becomes much smaller in the future? Will I regret being in munis? I would hate to pay taxes on capital gains in the event that I needed to s...
by House Blend
Wed Aug 10, 2016 4:32 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds taxed more than stocks?
Replies: 29
Views: 3402

Re: Why are bonds taxed more than stocks?

Whether there is a good reason or a political reason, it has only been true since 2003.

Before that, dividends from stocks were taxed at the same rate as interest from bonds.
by House Blend
Wed Aug 10, 2016 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Transfer assets from IRA to Roth - 6 to 1. 1/2 dozen....
Replies: 2
Views: 328

Re: Transfer assets from IRA to Roth - 6 to 1. 1/2 dozen....

I would recommend doing this whenever it is most convenient. Given the amount involved ($3200) and the likelihood that your tax-deferred account is conservatively allocated, there's no way that choosing the "best" or "worst" day to do this could make a significant difference. (Ov...
by House Blend
Mon Aug 08, 2016 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: thinking ahead - should I be buying VTIAX (international) in taxable account
Replies: 10
Views: 1204

Re: thinking ahead - should I be buying VTIAX (international) in taxable account

^It's not a huge mistake to have Total Intl in taxable. If you're in the 15% Federal bracket, you're likely better off that way. (Depends on state taxes.) For other tax situations, such as the OP, holding it in taxable instead of VTSAX in recent years has meant paying an extra dollar or so per year ...
by House Blend
Mon Aug 08, 2016 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: thinking ahead - should I be buying VTIAX (international) in taxable account
Replies: 10
Views: 1204

Re: thinking ahead - should I be buying VTIAX (international) in taxable account

I just want to make sure of something here. Even if the same VTSNX is in the IRA as the taxable, after TLH, if I do not buy VTSNX or similar in taxable or any other tax deferred, I am still fine right? Right. Holding the shares isn't a problem, it's buying new ones within 30 days of selling at a lo...
by House Blend
Mon Aug 08, 2016 1:00 pm
Forum: Investing - Theory, News & General
Topic: NYT: Zen and the Art of 401(k) Maintenance
Replies: 13
Views: 2244

Re: NYT: Zen and the Art of 401(k) Maintenance

Seems to me that the real story here is that the "Dead People Are The Best Investors" study may not exist, or at minimum was never published. But that never stopped people from writing click-bait headlines. And it didn't stop Michaela Pagel from using this non-existent study to promote her...
by House Blend
Mon Aug 08, 2016 11:19 am
Forum: Investing - Help with Personal Investments
Topic: thinking ahead - should I be buying VTIAX (international) in taxable account
Replies: 10
Views: 1204

Re: thinking ahead - should I be buying VTIAX (international) in taxable account

I would keep using the 401(k) and/or IRAs for all of your international. In addition to the increased tax-efficiency (based on distributions from the past several years), it also means not having to file Form 1116. See https://www.irs.gov/pub/irs-pdf/f1116.pdf and https://www.irs.gov/pub/irs-pdf/i11...
by House Blend
Fri Aug 05, 2016 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Income the year before Medicare
Replies: 11
Views: 1200

Re: Income the year before Medicare

Is the additional premium waived if you have subsequently retired and currently have zero earned income? I stopped working Dec 31 2015 and will be filing for Medicare this October. Taxable income (AGI) is what counts, not earned income, to be specific. No. First of all, Taxable Income is not the sa...
by House Blend
Thu Aug 04, 2016 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Gifting equally when children are in very different tax brackets?
Replies: 19
Views: 2524

Re: Gifting equally when children are in very different tax brackets?

I had an open discussion with the son and his wife (in the lower tax bracket) yesterday. They are both happy to invest theirs in a Roth contribution as he made regular contributions when employed. Be careful there. He cannot contribute $X to a Roth or trad IRA for year Y unless he or his spouse hav...
by House Blend
Wed Aug 03, 2016 10:48 am
Forum: Investing - Help with Personal Investments
Topic: (31, single) Moving $2M out of Morgan Stanley and into... Vanguard? (Plus next steps?)
Replies: 24
Views: 4178

Re: (31, single) Moving $2M out of Morgan Stanley and into... Vanguard? (Plus next steps?)

1. You do need to take control of your portfolio and start using index funds. If you prefer *mutual funds*, then you definitely want the account to be at Vanguard. If you like ETFs, then the brokerage is less important--low cost ETFs (from Vanguard or others) are available at many brokerages. 2. Do ...
by House Blend
Tue Aug 02, 2016 12:25 pm
Forum: Investing - Theory, News & General
Topic: How long to turn 1 million to 2 millions for you?
Replies: 44
Views: 7978

Re: How long to turn 1 million to 2 millions for you?

The only problem is that a million dollars isn't what it used to be. I think $5,000,000 is the new 1,000,000. There will always be someone who has more and someone who has less. If one can accumulate any sum of assets that is the product of their own efforts (no windfall, inheritance, funny money s...
by House Blend
Fri Jul 29, 2016 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Reinvestment of Dividends
Replies: 14
Views: 1443

Re: Question on Reinvestment of Dividends

Would folks here favor Specific Identification over First In/First Out? FIFO seems to have the built in mechanism that assures if you're selling only a portion of shares, that they will be the longest held shares automatically? I confess I'm way in over my head on this but would welcome thoughts/co...
by House Blend
Thu Jul 28, 2016 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing a retirement plan? 403b, 457b, Roth 403b, 401k
Replies: 8
Views: 653

Re: Choosing a retirement plan? 403b, 457b, Roth 403b, 401k

403(b) are better than 457(b) plans in the few ways that they differ. For example, if your employer goes bankrupt, they could theoretically raid your 457(b) but not your 403(b). Also you can't generally roll money out of a 457(b) into an IRA or 401(k) but you can roll money out of a 403(b). It appe...
by House Blend
Thu Jul 28, 2016 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Redemption fees for Fidelity Index (nee Spartan) Funds
Replies: 24
Views: 1794

Re: Redemption fees for Fidelity Index (nee Spartan) Funds

If I am going to own index mutual funds in taxable, they are going to be Vanguard funds even if the competition has the same or a slightly lower ER. Main reason has to do with capital gains distributions. Other providers have these routinely, even in index funds. Vanguard index funds don't, due to t...
by House Blend
Wed Jul 27, 2016 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Should I worry about FDIC limits if only a short time period is involved?
Replies: 21
Views: 1314

Re: Should I worry about FDIC limits if only a short time period is involved?

Shrug. When we sold Mom's house (to a buyer who paid cash), we deposited the check into her credit union account. It was a small number of multiples of the NCUA insurance limit. I forget exactly how long the cash sat in the account, but it was maybe 2-3 weeks. We had to get a trust account and Agent...
by House Blend
Tue Jul 26, 2016 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Finding a good tax advisor for choices that affect future retirement?
Replies: 8
Views: 742

Re: Finding a good tax advisor for choices that affect future retirement?

For projections of real returns involving possible future tax scenarios, I like to use 4% or 5% for stocks and (optimistically) 1% for bonds. Probably it's better to look at a range of outcomes. YMMV.
by House Blend
Tue Jul 26, 2016 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Finding a good tax advisor for choices that affect future retirement?
Replies: 8
Views: 742

Re: Finding a good tax advisor for choices that affect future retirement?

Roll over to inherited Traditional IRA and take RMDs over my lifetime. - I have been playing with the numbers and it looks like I could very easily be in the 33% bracket for several years in retirement, based off a 6% return. I could always increase the RMD amount to max the bracket I am in which s...
by House Blend
Thu Jul 21, 2016 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: What to look out for, when selling an after-tax mutual fund
Replies: 19
Views: 871

Re: What to look out for, when selling an after-tax mutual fund

Given the amount, your estimated income range, and nearness to retirement, I'm guessing that this is a small piece of your pie. The smaller it is, the less it matters whether you get out. If the fund represented a large and inappropriate risk, getting out would be more urgent. I will oversimplify an...
by House Blend
Wed Jul 20, 2016 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity beats Vanguard in ER
Replies: 30
Views: 2819

Re: Fidelity beats Vanguard in ER

All it takes is one capital gains distribution (in a taxable account) to wipe out several years worth of ER savings. And yes, Fidelity's index funds do occasionally have these distributions. Vanguard index funds generally do not, due to the way they share gains between ETF and mutual fund share clas...
by House Blend
Wed Jul 20, 2016 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Adjust Withholdings through W4 Based on Maxed Retirement Contributions?
Replies: 8
Views: 680

Re: Adjust Withholdings through W4 Based on Maxed Retirement Contributions?

In your post, you state you contribute to a Roth IRA while your wife contributes to a traditional IRA. Do you file as MFJ? If so, how is your wife's tIRA deductible and yours isn't? If you are MFJ, the income limits for deductibility of your tIRA contribution are different in each of these cases: 1...
by House Blend
Sun Jul 17, 2016 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA question
Replies: 13
Views: 1032

Re: Inherited IRA question

For clarity, you won't be "drawing interest". Whether your investment gains, loses, pays dividends, or does nothing, you or your account custodian will *withdraw* an increasing percentage from the account every year (rate schedule dictated by the IRS) based on the balance at the end of the...
by House Blend
Fri Jul 15, 2016 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Anyway to get traditional IRA funds minimizing tax other then not working?
Replies: 57
Views: 3542

Re: Anyway to get traditional IRA funds minimizing tax other then not working?

celia wrote:The standard deduction for them is $12,000

No. In 2016, the standard deduction for an MFJ couple, both over age 65, is $15,100.
by House Blend
Thu Jul 07, 2016 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: paying IRA disabuation tax
Replies: 5
Views: 534

Re: paying IRA disabuation tax

Yes it matters in the same sense that tax efficiency matters. Suppose you pay 25% in Federal tax for each additional dollar you convert from trad IRA to Roth. (And assume you are at least 59.5 years old, so that there is no penalty for using the IRA to pay the conversion tax.) If you convert $4000 f...
by House Blend
Wed Jul 06, 2016 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing Additional Funds from Inherited IRA
Replies: 10
Views: 1054

Re: Withdrawing Additional Funds from Inherited IRA

Regarding the LTCGs (and my situation is somewhat similar, so I also have this question), if he does sell at least some of the LTCGs and is able to stay within the 15% tax bracket (where LTCGs are not taxed), is he allowed to deduct $3000 in past LTC losses against ordinary income in the same year?...
by House Blend
Sun Jul 03, 2016 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing Additional Funds from Inherited IRA
Replies: 10
Views: 1054

Re: Withdrawing Additional Funds from Inherited IRA

Draw from the inherited IRA. It's easier to see by looking at an extreme case: Suppose your own IRA has $100K, your inherited IRA has $100K, and you need to withdraw $100K. If you take the $100K from your own IRA, then the remaining $100K will be drained out over your expected lifetime (unaffected b...
by House Blend
Wed Jun 22, 2016 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: When rates increase should I transfer annuity my TRAD back into itself?
Replies: 4
Views: 379

Re: When rates increase should I transfer annuity my TRAD back into itself?

Likely to be counterproductive. TIAA changes the rates on *all* vintages every March 1, and the rates on new contributions every month. Just because the Fed might raise the short term rate by X% doesn't mean TIAA will respond, or respond in the way you think they should. They could still pay more fo...
by House Blend
Thu Jun 16, 2016 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Rollover to Vanguard
Replies: 4
Views: 440

Re: TIAA-CREF Rollover to Vanguard

1. Is rolling over these "tax deferred annuity plans", "defined contribution plan", and "after tax retirement annuity" going to be the same as rolling over funds from a 401k where essentially TIAA CREF would send her 2 checks made out to Vanguard in the pre and post ta...
by House Blend
Thu Jun 16, 2016 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Cashing out taxable to max tax-advantaged - cons I'm not seeing?
Replies: 18
Views: 1330

Re: Cashing out taxable to max tax-advantaged - cons I'm not seeing?

A few things come to mind: 0. I assume that the 401(k) plans are decent. 1. If you have been reinvesting dividends, stop. 2. Watch out for wash sales. Tax law is clear on the case where you sell Fund X at a loss in taxable and repurchase Fund X in an IRA within 30 days--that's a wash. Tax law is sil...
by House Blend
Thu Jun 16, 2016 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Social security and foreign earned income
Replies: 12
Views: 1089

Re: Social security and foreign earned income

I agree with pshonore--it is unclear to me whether employer contributions into a 401(a) could be construed as a pension for this purpose. Here are some docs on WEP (but they don't go into the question of what counts as a pension): https://www.ssa.gov/pubs/EN-05-10045.pdf https://www.ssa.gov/planners...

Go to advanced search