Search found 4032 matches

by House Blend
Wed Jun 28, 2017 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Dealing with Annual Fee in old 401k
Replies: 9
Views: 515

Re: Dealing with Annual Fee in old 401k

When converting from trad. IRA to Roth IRA we can only do it pro rata. When converting from trad 401k to roth, it is also pro rata (in that plan), except to the extent that the employer restricts withdrawals to only a certain set of funds. You're saying that the conversion from trad 401k to roth IR...
by House Blend
Wed Jun 28, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

BTW, there's another reason why having MMFs cross the 1% barrier should have Bogleheads worldwide dancing in the streets. That's the threshold where the CAGR, rounded to two decimal places, is greater than the yield. For example, if the SEC yield of your MMF is exactly 0.90%, the CAGR is about 0.904...
by House Blend
Wed Jun 28, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Dealing with Annual Fee in old 401k
Replies: 9
Views: 515

Re: Dealing with Annual Fee in old 401k

ruralavalon wrote:That's an annual fee of 0.00099%, so not a big concern.

Huh? $85 out of $53,000 looks like about 0.16% to me.
by House Blend
Wed Jun 28, 2017 10:43 am
Forum: Investing - Help with Personal Investments
Topic: DCA to fund or to sweep and then invest on low days
Replies: 32
Views: 993

Re: DCA to fund or to sweep and then invest on low days

The Wizard wrote:
Jack FFR1846 wrote:When you market time, saying "this isn't market timing" doesn't make it so. You're talking about market timing.

You talk about this as if it's a bad thing...

It is a bad thing to not understand the meaning of the terms you use...
by House Blend
Wed Jun 28, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Dealing with Annual Fee in old 401k
Replies: 9
Views: 515

Re: Dealing with Annual Fee in old 401k

DW's current employer allows Mega-backdoor, which we are taking advantage of, so we would rather roll into her 401k. I don't think I see the dilemma here: how does rolling the old 401(k) into a trad IRA interfere with your ability to do the MBD? It sounds like your current practice is to do the MBD...
by House Blend
Wed Jun 28, 2017 8:58 am
Forum: Investing - Theory, News & General
Topic: Illinois: A slow swimming black swan?
Replies: 32
Views: 4321

Re: Illinois: A slow swimming black swan?

I do feel that "True Total Bond" (with munis/tips/high yeild) would be appropriate for far fewer investors than Total Stock is. One would have to be in the ~25% bracket, where having munis vs taxable is a wash. One would also have to be holding bonds in taxable for whatever reason (bad 40...
by House Blend
Tue Jun 27, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Do you check your dividends?
Replies: 16
Views: 1402

Re: Do you check your dividends?

It's been a long-term habit of mine to check that I actually receive my dividends every quarter, but while it is simple enough to do, it is somewhat tedious, especially for positions that I have automatic re-investment for dividends, because then I have to verify the executed price was reasonable f...
by House Blend
Tue Jun 27, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Splitting Value and Growth in taxable/non-taxable
Replies: 20
Views: 826

Re: Splitting Value and Growth in taxable/non-taxable

Certainly if you have a Large Value tilt, you'd rather have that tilt in tax-advantaged. Breaking Total Stock into 6 pieces is overkill IMO, but I could see breaking US Large into Value + Growth if squeezing out a few more basis points is worth the extra hassle. And you could still get killed if you...
by House Blend
Tue Jun 27, 2017 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Muni Bond vs. Taxable vs. CD
Replies: 5
Views: 549

Re: Muni Bond vs. Taxable vs. CD

Exeter wrote: I’m retired now living fine off a pension and part time work.

Are you contributing your wages to a Roth IRA? Do that before even thinking about investing in fixed income in taxable.

You can contribute up to 100% of your wage income (Box 1 on form W-2) or $6500 to a Roth IRA, whichever is less.
by House Blend
Tue Jun 27, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Bonds-Taxes Question
Replies: 2
Views: 261

Re: Bonds-Taxes Question

For Total Bond, you can get 10 years of distribution history from advisors.vanguard: https://advisors.vanguard.com/VGApp/iip/site/advisor/investments/price?fundId=0584 But it will be in dollars per share, so you'll have to do the calculations yourself. It's not that hard. However, if you are compell...
by House Blend
Mon Jun 26, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect IRS notice, should I worry?
Replies: 13
Views: 1196

Re: Incorrect IRS notice, should I worry?

slin wrote:The mailing address was exactly our correct address, but the name was someone else's name.

Have you Googled the addressee?

That's the first thing I would have done.
by House Blend
Mon Jun 26, 2017 8:50 am
Forum: Investing - Help with Personal Investments
Topic: Expense ratio vs. SEC yield in PMM
Replies: 2
Views: 149

Re: Expense ratio vs. SEC yield in PMM

You'd earn 1.05%. SEC yield is always net after expenses.
by House Blend
Sat Jun 24, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: How to fill out W4 so no taxes are withheld?
Replies: 7
Views: 646

Re: How to fill out W4 so no taxes are withheld?

At most she will make ~$2500, and this will be the only income she earns all year. Extrapolate her Federal taxable wages to a full year. For example, if she is earning $1250/month, that extrapolates to $15K/year. To have 0 Fed tax withheld, you need to claim at least (X - 2304)/4050 allowances, whe...
by House Blend
Fri Jun 23, 2017 8:14 pm
Forum: Personal Consumer Issues
Topic: Worthwhile TV programming?
Replies: 55
Views: 3120

Re: Worthwhile TV programming?

For background noise, why does it have to be TV?

I prefer streaming (commercial free) classical music for that purpose.
NPR or podcasts, if what I'm doing really requires minimal attention.
by House Blend
Fri Jun 23, 2017 1:23 pm
Forum: Investing - Theory, News & General
Topic: T-IRA Withdrawal (non-RMD): Convert to Roth First
Replies: 9
Views: 848

Re: T-IRA Withdrawal (non-RMD): Convert to Roth First

I'm not certain that the IRS be happy with estimated taxes spread over the year for a single income event occurring in January -- but, I'm not a tax expert. Having taxes withheld on the conversion would be different. Can anyone give an accurate response -- preferably with reference to specific tax ...
by House Blend
Fri Jun 23, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional or G Fund
Replies: 10
Views: 502

Re: TIAA Traditional or G Fund

I don't think any of the responders in this thread so far, including me, is a TSP expert. However, from what I understand, distributions from the TSP are severely limited. According to our wiki, "After leaving Federal service, a TSP participant may make only one partial withdrawal from the TSP ...
by House Blend
Fri Jun 23, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: T-IRA Withdrawal (non-RMD): Convert to Roth First
Replies: 9
Views: 848

Re: T-IRA Withdrawal (non-RMD): Convert to Roth First

I believe that this makes sense in only one case: You convert to the ROTH very early, say January, and then have your entire tax liability withheld from an additional IRA withdrawal in December. This avoids the underpayment of estimated taxes penalty, as withheld taxes are assumed by the government...
by House Blend
Thu Jun 22, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX dividend error?
Replies: 23
Views: 2220

Re: VTSAX dividend error?

There was a recent thread about a similar issue with a Vanguard bond fund.
This is the post where the OP of that thread reports Vanguard's response:
viewtopic.php?p=3406705#p3406705

"This is a display issue only..."
by House Blend
Thu Jun 22, 2017 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Best Practices for Managing Paper Receipts
Replies: 28
Views: 1999

Re: Best Practices for Managing Paper Receipts

3) Related to the prior question, when and how are receipts useful when it comes time to file your taxes? (For example, is it necessary to have receipts for everything in case you're audited?) 4) Is having a bank card or credit card record of a transaction a sufficient substitute for having a full-...
by House Blend
Thu Jun 22, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Brokerage account?
Replies: 4
Views: 339

Re: TIAA Brokerage account?

They don't run their own brokerage; it's a vanity plate slapped on top of Pershing. That's the same outfit that Vanguard used back when Vanguard wasn't a "real" brokerage. From what I've seen it is just as clumsy to use as Vanguard was back in the day. No personal experience with it, but n...
by House Blend
Thu Jun 22, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Don't want dividends - Selling before record date/ex-div date
Replies: 2
Views: 578

Re: Don't want dividends - Selling before record date/ex-div date

When should I sell in order to avoid receiving dividends for mutual funds ? I have not tested this personally, but I believe that if you sell one of their mutual funds on the "record date" (before market close), you will not get the dividend. Certainly any time after market close on the r...
by House Blend
Thu Jun 22, 2017 9:28 am
Forum: Investing - Theory, News & General
Topic: Does TIAA violate ERISA when administering 403b loans?
Replies: 6
Views: 338

Re: Does TIAA violate ERISA when administering 403b loans?

Related question: Does the "public" vs "private" type for universities directly affect whether it is be ERISA or not? My non-expert opinion is that it does. Google searches for the phrase "public university ERISA" seem to back me up. Also suggests that there can be som...
by House Blend
Thu Jun 22, 2017 9:19 am
Forum: Investing - Theory, News & General
Topic: Email from VG - Vanguard Rep is on Leave ??
Replies: 22
Views: 2728

Re: Email from VG - Vanguard Rep is on Leave ??

I just got notice that they are moving away from the personal Flagship Representative to a team approach. But if I don't like the idea I can request a personal rep. Yes, I think they started rolling this out a year ago, when their growth was oustripping their ability to serve customers. Yes, you ca...
by House Blend
Thu Jun 22, 2017 8:56 am
Forum: Investing - Theory, News & General
Topic: Does TIAA violate ERISA when administering 403b loans?
Replies: 6
Views: 338

Re: Does TIAA violate ERISA when administering 403b loans?

Don't know, but: I believe that Public University 403(b) plans are not subject to ERISA. Wash U is private, so this fact is not directly relevant to the case, except that it suggests the possibility that there was a procedural screw-up at TIAA. I recall that TIAA in the past has had different forms ...
by House Blend
Tue Jun 20, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds To Use in Taxable Portfolio
Replies: 28
Views: 2921

Re: Bond Funds To Use in Taxable Portfolio

I re-read the Boglehead Wiki on tax placement, and it is not at all simple to understand. One thing that it mentions is because short bonds have such low yields, the income tax impact of having them in taxable isn't even that big a deal. The idea is that *if* short bonds are going to be part of you...
by House Blend
Tue Jun 20, 2017 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA vs. VOYA? Recommendations on mandatory retirement fund allocation?
Replies: 4
Views: 332

Re: TIAA vs. VOYA? Recommendations on mandatory retirement fund allocation?

Welcome to the forum. Forget about 10 year returns. Focus on ER, and whether the asset class belongs in your portfolio. The lowest ER options will generally be index funds. Surprised I would find myself suggesting Voya, but with the 0.15% surcharge, you can get a Vanguard Target Retirement fund from...
by House Blend
Tue Jun 20, 2017 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Bond Funds To Use in Taxable Portfolio
Replies: 28
Views: 2921

Re: Bond Funds To Use in Taxable Portfolio

Next, about 50% of my overall "tax deferred" money is in some non-401K accounts that have grown over time. They are basically deferred comp accounts. I see these as different than a pension account and 401K account as I cannot roll them over. So at retirement or separation from my employe...
by House Blend
Tue Jun 20, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: A closer look at taxes/distributions: Fidelity vs. Vanguard
Replies: 5
Views: 917

Re: A closer look at taxes/distributions: Fidelity vs. Vanguard

However, this year as I started doing more research and reviewing my Fidelity 1099, I saw that FSTVX had long-term capital gains distributions of $0.393/share in 2016. And in 2015, this number was $0.313/share; and in 1Q17, this number was $0.104/share! In that same time, VTSAX had no distributions...
by House Blend
Tue Jun 20, 2017 9:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: More Evidence Against Active
Replies: 5
Views: 1162

Re: Larry Swedroe: More Evidence Against Active

Because taxes are typically the greatest expense for taxable investors (greater than the expense ratio or trading costs), the percentage of winners would be much lower for funds held in taxable accounts. I do agree that tax is often the largest cost associated with taxable investing, but that doesn...
by House Blend
Mon Jun 19, 2017 5:14 pm
Forum: Investing - Theory, News & General
Topic: Avoid taking Dividends?
Replies: 21
Views: 2192

Re: Avoid taking Dividends?

livesoft wrote:^That is all true, but I wish to reiterate that the point is to avoid dividends being added to AGI in the first place.

Agreed. I'm not arguing that it never makes sense, just pointing out where the tradeoffs are. YTSMV. (Your Tax Situation May Vary.)
by House Blend
Mon Jun 19, 2017 4:53 pm
Forum: Investing - Theory, News & General
Topic: Avoid taking Dividends?
Replies: 21
Views: 2192

Re: Avoid taking Dividends?

On the list of Most Important Things for a Boglehead to Know this is probably #177 on the list, near the other opportunities to pick up nickels in front of a steamroller. The simplest case is that you have a tax lot of shares of Fund A that you are thinking about tax loss harvesting, and a dividend ...
by House Blend
Mon Jun 19, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Placement of TIAA Traditional and S&P 500
Replies: 7
Views: 525

Re: Placement of TIAA Traditional and S&P 500

Are you already making maximum contributions to your tax-advantaged space? (In particular, that means you are maxing out a Roth IRA every year.) Do you have cash outside of tax-advantaged space available for long term investing? If the answers to both are yes, then yes, using the taxable space for c...
by House Blend
Sun Jun 18, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: When do you reduce or stop disability insurance coverage
Replies: 11
Views: 844

Re: When do you reduce or stop disability insurance coverage

The cost of the insurance is reasonable and not an issue. What factors do I need to consider to reduce or eliminate DI insurance. I would like the thread to be a more general discussion on what factors to consider to stop or reduce DI rather than my circumstances. I'm sure there's a wide range of c...
by House Blend
Fri Jun 16, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds To Use in Taxable Portfolio
Replies: 28
Views: 2921

Re: Bond Funds To Use in Taxable Portfolio

I think some others just repeat the mantra assuming "you don't want to get taxed on the monthly distributions from a bond fund, ergo you must put all bond funds in a tax deferred account" and it never rang true to me, since I can earn monthly returns from muni funds that are not taxed. Ho...
by House Blend
Fri Jun 16, 2017 2:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

I do itemize my taxes and am subject to AMT. Based on this, it looks like Prime MM will work best for me given the current yields. Because these numbers are so close, it probably doesn't make much of a difference one way or the other. Nonetheless, thanks again for explaining how these calculations ...
by House Blend
Fri Jun 16, 2017 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional - what is it?
Replies: 16
Views: 913

Re: TIAA traditional - what is it?

It is definitely safe. It has been around a long time and TIAA has a great reputation. Depending on the type of account, you will earn 3% to 4% during the "accumulation phase". When you hit retirement, you will then have the option to annuitize the account, which would increase the intere...
by House Blend
Fri Jun 16, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional - what is it?
Replies: 16
Views: 913

Re: TIAA traditional - what is it?

I started adding money to TIAA Traditional in 2008 in a 403b plan. I left the company in 2011 and rolled over my 403b into an IRA at Vanguard, except that whatever I had in Traditional had to stay in the 403b plan, according to HR. Fortunately it was just a small amount of money, but I would have n...
by House Blend
Fri Jun 16, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional - what is it?
Replies: 16
Views: 913

Re: TIAA traditional - what is it?

I started adding money to TIAA Traditional in 2008 in a 403b plan. I left the company in 2011 and rolled over my 403b into an IRA at Vanguard, except that whatever I had in Traditional had to stay in the 403b plan, according to HR. Fortunately it was just a small amount of money, but I would have n...
by House Blend
Fri Jun 16, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities/Fixed Value instead of bonds as fixed income
Replies: 9
Views: 896

Re: Annuities/Fixed Value instead of bonds as fixed income

One should not "lock" themself into a 3% or 4% product - most people your age do not take the risk of inflation seriously. I remember buying my first house in 1980 at an 11% interest rate. These are not 3% or 4% "products". Well, I can't speak to Prudential, but the past 50 year...
by House Blend
Fri Jun 16, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities/Fixed Value instead of bonds as fixed income
Replies: 9
Views: 896

Re: Annuities/Fixed Value instead of bonds as fixed income

He recommended that either of these will likely do much better than other fixed income options such as the Fidelity Bond Index (FXNAX) or Vanguard Inflation Protected Securities (VIPIX) that I was currently considering for my fixed income options. Either of them I would have the option of changing ...
by House Blend
Fri Jun 16, 2017 9:37 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

I'm trying to decide between the following: (1) Vanguard Prime Money Market Fund (VMMXX) - 1.00% yield (0.16% ER) (2) Vanguard Municipal Money Market Fund (VMSXX) - 0.66% yield (0.15% ER) (3) Vanguard Pennsylvania Municipal Money Market (VPTXX) - 0.60% yield (0.16% ER) I'm in the 33% federal tax br...
by House Blend
Fri Jun 16, 2017 8:16 am
Forum: Investing - Theory, News & General
Topic: Roth 401k > Traditional 401k
Replies: 58
Views: 3285

Re: Roth 401k > Traditional 401k

Before 2010, taxpayers with MAGI over 100K were not eligible for Roth conversion. This income limit to disallow Roth conversion was removed starting in 2010 which opened the backdoor into Roth IRA (i.e. contribute to TIRA and convert to Roth IRA). A little trivia for the forum. The technique and th...
by House Blend
Thu Jun 15, 2017 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken TaxOptimizer suggestions seem odd, thoughts?
Replies: 5
Views: 453

Re: Quicken TaxOptimizer suggestions seem odd, thoughts?

Maybe quicken has been talking to WCI https://www.whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ He briefly discusses 401k, but the analysis appears to be all based on roth IRA. Very different animal. Not sure how he goes from the analysis provided to concluding stocks should go in tax-d...
by House Blend
Thu Jun 15, 2017 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account holdings?
Replies: 13
Views: 794

Re: Taxable account holdings?

Low turnover funds such as index funds sometimes have them too. However, Vanguard index funds do not , due to a patented process that allows their index mutual funds to share in the tax advantage of their ETFs. Funny thing is that Vanguard doesn't seem to tout this advantage much. That's because it...
by House Blend
Thu Jun 15, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: How to approximate VG Tax-Managed Balanced (VTMFX) with 2 other VG funds?
Replies: 9
Views: 689

Re: How to approximate VG Tax-Managed Balanced (VTMFX) with 2 other VG funds?

how does TSM compare with TM Cap Apprec WRT dividends (both qualified and non-qualified)? Typically lower dividend yield (maybe 0.25% less?), and if I remember correctly, the fund has always had 100% QDI. TSM has had two sub-100% years so far, in 2013 and 2016. My hunch is that we are seeing a tax-...
by House Blend
Thu Jun 15, 2017 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account holdings?
Replies: 13
Views: 794

Re: Taxable account holdings?

This strategy seems to favor ETF's being held in taxable accounts since they don't have regular distribution of dividends like mutual funds. Dividend distributions are unavoidable (in the US). What ETFs usually don't do is distribute capital gains. (A major exception being REITs such as VNQ.) On th...
by House Blend
Tue Jun 13, 2017 3:32 pm
Forum: Investing - Theory, News & General
Topic: Favorite Feature of Vanguard Website?
Replies: 64
Views: 4687

Re: Favorite Feature of Vanguard Website?

Although the website is often criticized, one of the things I like about it ( admittedly I'm used to it ) is that I like its presentation of the relevant data about its mutual funds. It presents a very good capsule summary, and when I am looking for information on other funds at other websites I of...
by House Blend
Tue Jun 13, 2017 3:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's new "account overview" page... BOO!
Replies: 105
Views: 11334

Re: Vanguard's new "account overview" page... BOO!

I started getting the new account overview a couple of months ago. The only good thing I can think of to say about it is that I can navigate out of it very quickly. Everything I need can be accessed from the Balances & Holdings page, which has not (yet) been "optimized" for smartphones...
by House Blend
Tue Jun 13, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Early retirement planning when future income needs are met by pensions/social security.
Replies: 16
Views: 1648

Re: Early retirement planning when future income needs are met by pensions/social security.

I wouldn't focus on just the first 20 years....

The farther into the future that the expected gold mine of sufficient inflation-adjusted income kicks in, the more I think that you need to plan for the possibility that there is less gold in the mine than has been promised.
by House Blend
Tue Jun 13, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Max out 401k or save for Roth Conversion?
Replies: 3
Views: 526

Re: Max out 401k or save for Roth Conversion?

Wondering if we should up our 401k contribution to 16% or put that money into something else to plan for a Roth Conversion in those years we are at 15%? Roth converting at 15% is probably a good plan. But I don't see much point in putting additional savings into anything other than tax-advantaged a...

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