Search found 3380 matches

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: 780

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: 2663

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: 643

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: 976

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: 48
Views: 2740

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: 502

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: 1034

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: 1034

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: 372

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: 412

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: 1304

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: 1073

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...
by House Blend
Thu Jun 16, 2016 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Social security and foreign earned income
Replies: 12
Views: 1073

Re: Social security and foreign earned income

DW works for a university and doesn’t pay social security tax. Before you get too excited about qualifying for SS benefits, you should read up on GPO & WEP (Government Pension Offset and Windfall Elimination Provision). The fact that spouse isn't paying SS on her main job means that she is prob...
by House Blend
Wed Jun 15, 2016 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: How to access bond holdings during an emergency?
Replies: 16
Views: 883

Re: How to access bond holdings during an emergency?

Surprised no one has mentioned the Roth IRA. You'd rather not tap a Roth (or a trad IRA for that matter) before retirement, but you can withdraw amounts from a Roth IRA up to the level of your contributions without penalty. It can be especially useful for those starting out and struggling to build a...
by House Blend
Wed Jun 15, 2016 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard keeps mailing me dividend checks
Replies: 16
Views: 3604

Re: Vanguard keeps mailing me dividend checks

Another experiment you can run is to try directing your dividends to your linked bank account instead of the MMF.

In fact, if you are not brokeraged at Vanguard, this might be a better option for you anyway. Non-brokerage accounts don't really need a MMF in the first place.
by House Blend
Tue Jun 14, 2016 12:20 pm
Forum: Investing - Theory, News & General
Topic: NYT: Hedge Funds Make Effort to Retain Investors
Replies: 8
Views: 1236

Re: NYT: Hedge Funds Make Effort to Retain Investors

The days when below-S&P-500-average results could be waved aside airily by saying "you can't buy an average" ended in 1976 and the implications have finally started to sink in. FWIW, I was not of investing age in 1976 and certainly not tuned into the marketing pitches and airy aside-w...
by House Blend
Mon Jun 13, 2016 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Donate stock instead of cash?
Replies: 47
Views: 2114

Re: Donate stock instead of cash?

But if those shares would not have otherwise been sold during your lifetime, or sold at time when your LT cap gains tax rate is 0, then you haven't actually gained an advantage. So it's more or less a wash. My preference would be to still give the edge to donating the stocks, since a future LT rate...
by House Blend
Mon Jun 13, 2016 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Donate stock instead of cash?
Replies: 47
Views: 2114

Re: Donate stock instead of cash?

If your long term cap taxation rate is below your income bracket rate (likely) and you itemize you would be better off donating cash. What? How does that make any sense? One's LTCG tax rate is always below one's income tax rate. It's not lower if you have ordinary income levels below the personal e...
by House Blend
Mon Jun 13, 2016 11:25 am
Forum: Personal Consumer Issues
Topic: Leisure Time versus Thriftiness
Replies: 100
Views: 7056

Re: Leisure Time versus Thriftiness

As I have aged (and accumulated more $$$) I have become much more willing to trade money for time. But I have also found that there are some categories where paying someone else to do the job is a false economy--the job will be done poorly, so I end up spending more money *and* time to get it done r...
by House Blend
Sun Jun 12, 2016 7:28 am
Forum: Personal Consumer Issues
Topic: Dental treatment, reduced cost, teaching university
Replies: 15
Views: 1228

Re: Dental treatment, reduced cost, teaching university

My employer is a university with a dental school. I would not go to our dental clinic, although I've known grad students on tight budgets who have done so and been happy with the results. Dental care in other countries can be abysmal, and quite a few international students arrive here needing substa...
by House Blend
Sat Jun 11, 2016 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Strategies for Income Dip preceding Hike?
Replies: 15
Views: 1357

Re: Tax Strategies for Income Dip preceding Hike?

2. In retirement, I see $20K + $10K + $10K + $15K + $8K RMD + $34K SS = $97K, less another $20K+ for two exemptions and a standard deduction. (The reason I gave you only $34K SS is that at most 85% will be taxable.) I appreciate your detailed feedback, which helps me learn. This seems accurate, but...
by House Blend
Sat Jun 11, 2016 1:07 pm
Forum: Investing - Theory, News & General
Topic: "Find out if your [Vanguard] fund is declaring a quarterly dividend in June."
Replies: 17
Views: 2484

Re: "Find out if your [Vanguard] fund is declaring a quarterly dividend in June."

^OK. If you need help making an informed decision about VFIAX, the last trading day before the dividend is 6/17, and it will be about $1 per share.
by House Blend
Sat Jun 11, 2016 11:49 am
Forum: Investing - Theory, News & General
Topic: "Find out if your [Vanguard] fund is declaring a quarterly dividend in June."
Replies: 17
Views: 2484

Re: "Find out if your [Vanguard] fund is declaring a quarterly dividend in June."

A consequence is that the mutual fund shareholder received the information too late to make an informed decision about avoiding the dividend. The ETF shareholder can sell the ETF shares and buy the mutual fund shares on Monday 6/13 and avoid the dividend. Huh? Vanguard gave one week's notice to mut...
by House Blend
Sat Jun 11, 2016 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Tax Strategies for Income Dip preceding Hike?
Replies: 15
Views: 1357

Re: Tax Strategies for Income Dip preceding Hike?

I read that those in the 15% bracket can realize LTCG without being taxed in 2016. Does that mean we can sell a favored stock which has tripled in value in order to realize a tax free capital gain, and then rebuy it as a way of resetting the cost basis? 1. Sort of. Lots of people misunderstand this...
by House Blend
Wed Jun 08, 2016 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Selling from taxables
Replies: 16
Views: 1173

Re: Selling from taxables

Dottie57 wrote:Does the price of a stock drop after dividends are paid, an that is why you sell before dividends are paid?

Yes, the price drops by the amount of the dividend, in addition to whatever the market decides to do on that day.
by House Blend
Wed Jun 08, 2016 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Selling from taxables
Replies: 16
Views: 1173

Re: Selling from taxables

My LTCG rate is 15% and my dividend tax rate is 25% plus state rate of 7.05%. So...if I understand correctly it looks like there is an advantage to selling prior to the distribution. The WIKI also states that selling prior to a distribution is an advantage. It may only be nickels but I like nickels...
by House Blend
Wed Jun 08, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: My Investment Policy Statement
Replies: 15
Views: 1551

Re: My Investment Policy Statement

Joel wrote:3. Change Bond allocation from "1/2 my age" to "120 - age"

As amusing as it might be to contemplate a 20 year old with a 100% bond portfolio, I suspect what you meant was "age - 20 ".
by House Blend
Wed Jun 08, 2016 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Selling from taxables
Replies: 16
Views: 1173

Re: Selling from taxables

^I would say that, as of today, if you have long term gains in a large cap index fund and don't have any losses harvested, then you apparently don't practice TLH. Consequently, another 6 months won't make any difference. And by the way, note that Vanguard seems to have moved up the dividend dates fo...
by House Blend
Sat Jun 04, 2016 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Investing in small increments
Replies: 3
Views: 590

Re: Investing in small increments

I compare the number of shares I expect to buy with the number credited, and don't recall noticing any evidence of an "always round down" rule in place at VG. But let's suppose that's the case. That means on average, you are getting ripped off by 0.0005 shares per purchase. In rough terms,...
by House Blend
Thu Jun 02, 2016 9:58 pm
Forum: Investing - Theory, News & General
Topic: TIAA Traditional account or intermediate term bond index?
Replies: 23
Views: 1735

Re: TIAA Traditional account or intermediate term bond index?

I believe that TIAA essentially re-casts the TPA for a year-shorter term at the time of each annual payment, using the vintage/rate structure for payout annuities at the time. I agree with most of the rest of your post, but my experience contradicts this. I have a small TPA--60% finished. The money...
by House Blend
Thu Jun 02, 2016 1:49 pm
Forum: Investing - Theory, News & General
Topic: Anyone Switched to Vanguard Account Upgrade?
Replies: 35
Views: 10392

Re: Anyone Switched to Vanguard Account Upgrade?

1) They do not disclose that if you have any mutual funds that pay daily interest (like bond funds), when the account is upgraded, those funds will effectively be sold and repurchased triggering a payout of the accrued daily distributions. That would not be a problem EXCEPT they do not honor your p...
by House Blend
Tue May 31, 2016 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: How persnickety are you with your rebalance bands?
Replies: 39
Views: 2752

Re: How persnickety are you with your rebalance bands?

If my AA bands are crossed then I must rebalance. However, my IPS also tells me that I am allowed to make trades at any time for any reason (including phases of the moon or who won the super bowl) as long as two conditions are met: 1. there are no associated costs (including no cap gains), 2. the tr...
by House Blend
Tue May 31, 2016 11:27 am
Forum: Investing - Theory, News & General
Topic: New "Flagship Select" level at Vanguard
Replies: 46
Views: 10423

Re: New "Flagship Select" level at Vanguard

What is this? Is Vanguard trying to attract very high net worth individuals? Why? I'd much rather see them spending more time trying to run their basic business correctly for their average customers. If they continue to mess up transfers and other common requests they may begin to see those custome...
by House Blend
Tue May 31, 2016 11:03 am
Forum: Investing - Theory, News & General
Topic: TIAA Traditional account or intermediate term bond index?
Replies: 23
Views: 1735

Re: TIAA Traditional account or intermediate term bond index?

Of course there are reasons. The bond fund could do better than TIAA over the long-term. The liquidity of the bond fund is more likely higher. I have TIAA TA paying more than 4.5% nowadays, but I don't have 100% of my fixed income in that. Over the years, bond funds have actually done just as well....
by House Blend
Fri May 27, 2016 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Bond funds - help deciphering!
Replies: 31
Views: 1323

Re: TIAA-CREF Bond funds - help deciphering!

BTW, have you learned that CREF funds don't have "yield"? All the income goes into the NAV. The bonds do have income, but it's hard to compare to a plain vanilla mutual fund without looking under the hood. That's not bad during work years, but it's confusing at 75. No, I actually wasn't a...
by House Blend
Fri May 27, 2016 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Bond funds - help deciphering!
Replies: 31
Views: 1323

Re: TIAA-CREF Bond funds - help deciphering!

It always interests me when I learn from one of these posts that the investors involved have been spending a substantial amount of their "unchained" TIAA Traditional cash flow for living expenses. What are they planning to do after 9 years pass? If they had selected an annuitization, or a...
by House Blend
Fri May 27, 2016 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Bond funds - help deciphering!
Replies: 31
Views: 1323

Re: TIAA-CREF Bond funds - help deciphering!

Speaking of expenses, their version of CREF stock has an expense ratio of .49, which is high in comparison to some of the other funds in their plan. Is there any reason not to use a 70/30 split of TCEPX (which tracks the Russell 3000) and TRIPX (which tracks the MSCI EAFE index) to replicate CREF s...
by House Blend
Thu May 26, 2016 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Forced use of automatic ACH withdrawals?
Replies: 18
Views: 1652

Re: Forced use of automatic ACH withdrawals?

Offer to pay a year up front, by check, and see if that changes their mind.
by House Blend
Thu May 26, 2016 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Bond funds - help deciphering!
Replies: 31
Views: 1323

Re: TIAA-CREF Bond funds - help deciphering!

They have a substantial amount in TIAA Traditional, which makes up the bulk of their fixed income allocation, but they are on a 9 years and one day plan to move all of the money out of Traditional and into other things... FWIW, I don't see much point in that, but what's done is done. They currently...
by House Blend
Thu May 26, 2016 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: One More Vanguard Upgrade Hiccup: Unwanted Reinvestment
Replies: 11
Views: 1174

Re: One More Vanguard Upgrade Hiccup: Unwanted Reinvestment

I own some muni bond funds, and I noticed that the dividends came in recently. Strange, because they usually are paid on the last business day of each month. The fact that it happened now, rather than at the end of the month, has to do with what happens when you distribute or transfer all of a mutu...
by House Blend
Thu May 26, 2016 9:12 am
Forum: Personal Finance (Not Investing)
Topic: yet another backdoor roth ira question
Replies: 3
Views: 365

Re: yet another backdoor roth ira question

Even if it is not a taxable event, rolling money from an IRA to a non-IRA account will generate a 1099-R and is reported on your tax return. The total amount goes on line 15a of your Form 1040, and the taxable amount -- 0 -- goes on line 15b. The instructions for line 15 say: If you rolled over the ...
by House Blend
Tue May 24, 2016 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth convert/rechar to reallocate
Replies: 4
Views: 249

Re: Roth convert/rechar to reallocate

I take it that the bonds are in ETFs or are individual issues, not mutual funds. I could be wrong, but I believe that you would have to liquidate in order to do a Roth conversion. Otherwise, how would a custodian be able to report it on a 1099 without an actual market determination of the dollar val...
by House Blend
Tue May 24, 2016 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Planning my RMD
Replies: 12
Views: 1222

Re: Planning my RMD

I agree that the strategic details about when and from what don't matter much. A strict orthodox stay-the-course Boglehead might look at it this way: The asset class you take the RMD from is completely immaterial. You have an asset allocation, so you know how much belongs in each asset class, and wh...
by House Blend
Mon May 23, 2016 6:53 pm
Forum: Personal Consumer Issues
Topic: Is living in the Bay Area this difficult?
Replies: 49
Views: 7814

Re: Is living in the Bay Area this difficult?

Did someone mention earthquakes? This should not be overlooked. Quality of life will be impacted at some indeterminate time for an indeterminate length of time for anyone living in an active tectonic area. There are natural disasters available for almost any area of the U.S. but the Bay Area ranks ...
by House Blend
Mon May 23, 2016 10:35 am
Forum: Personal Consumer Issues
Topic: Is living in the Bay Area this difficult?
Replies: 49
Views: 7814

Re: Is living in the Bay Area this difficult?

Did someone mention earthquakes? This should not be overlooked. Quality of life will be impacted at some indeterminate time for an indeterminate length of time for anyone living in an active tectonic area. There are natural disasters available for almost any area of the U.S. but the Bay Area ranks ...
by House Blend
Sun May 22, 2016 10:03 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 1740
Views: 387639

Re: What Movie Have You Recently Watched?

Fantastic Lies , caught on Netflix. A documentary about the Duke Lacrosse team, conviction-by-media, and prosecutorial misconduct. This is an installment of the highly regarded ESPN 30 for 30 documentary series. The best efforts in this series dig deep into cultural and societal issues that transce...
by House Blend
Sat May 21, 2016 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Rollover - silly concern
Replies: 27
Views: 1955

Re: Rollover - silly concern

I could be wrong, but I believe that *all* *rollovers* from qualified plans to IRAs must be cash transactions, not in-kind. That doesn't preclude ACH or wire transfers, but liquidation is going to be required at some point. (Transfers from one IRA to another are a different story.) I once did a dire...
by House Blend
Sat May 21, 2016 8:10 am
Forum: Personal Finance (Not Investing)
Topic: IRA-to-Roth conversion in Vanguard
Replies: 23
Views: 1591

Re: IRA-to-Roth conversion in Vanguard

Thanks to all who have replied. So in future years I should also create a new Roth account for each conversion? Should you? Not necessarily. If you are a rate-chaser, slicer-dicer type who spends his leisure time reading IRS publications and working things out to 6 decimal places, then yes, you sho...
by House Blend
Fri May 20, 2016 10:42 am
Forum: Investing - Help with Personal Investments
Topic: VNQ in Taxable Account?
Replies: 11
Views: 1023

Re: VNQ in Taxable Account?

For REIT exposure, I understand it's recommended to put VNQ in a retirement account because it's taxed as ordinary income but I don't have any retirement/tax advantaged accounts. Would it be better to just skip the exposure altogether or put it in a taxable account if those are the only two options...
by House Blend
Thu May 19, 2016 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Ok to have 2 separate RMDs?
Replies: 9
Views: 1004

Re: Ok to have 2 separate RMDs?

Yes, ideally she would consider doing a spousal rollover for both 401k accounts. However, it has been difficult to have her agree to this. In the end, we have agreed to keeping the TIAA-401k 'as-is' given the entire account is in TIAA-Traditional (RA) account with a nice guaranteed rate and this fi...

Go to advanced search