Search found 1772 matches

by MN Finance
Mon Mar 20, 2017 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Maximum contribution for 403B, 457 & SEP IRA combined?
Replies: 12
Views: 383

Re: Maximum contribution for 403B, 457 & SEP IRA combined?

I'm not sure I've ever been wrong before, this may be a first, but I'll ask my wife. I'm pretty surprised by this and after searching Google there are absolutely differing opinions (Ed slot, Fairmark agree with me). I actually used to work with HCEs who participated in multiple non profit plans and ...
by MN Finance
Mon Mar 20, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Maximum contribution for 403B, 457 & SEP IRA combined?
Replies: 12
Views: 383

Re: Maximum contribution for 403B, 457 & SEP IRA combined?

The 415 limit only applies to the same employer plan. That is true, but as I pointed out a 403b account is considered controlled by the participant and is therefore aggregated with an individual SEP IRA or Solo 401k. You are considered the employer for both plans. I disagree that the SEP contributi...
by MN Finance
Mon Mar 20, 2017 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Maximum contribution for 403B, 457 & SEP IRA combined?
Replies: 12
Views: 383

Re: Maximum contribution for 403B, 457 & SEP IRA combined?

The 457 is a non-qualified plan an has its own employee deferral limit and does not interfere with the contributions to the 403b and SEP IRA. The SEP IRA only permits employer contributions, so it does not interfere with the 403b deferral. However, a 403b is considered controlled by the participant...
by MN Finance
Mon Mar 20, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Maximum contribution for 403B, 457 & SEP IRA combined?
Replies: 12
Views: 383

Re: Maximum contribution for 403B, 457 & SEP IRA combined?

The contribution are separate, so you can also contribute 20% of your 80k and 6500 to you IRAs
by MN Finance
Mon Mar 20, 2017 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: How much life insurance?
Replies: 18
Views: 1063

Re: How much life insurance?

Because it's cheap, you can err on the higher side without much regret. If you continue to have kids you might end up with 1M baseline and then add a second 20 yrs policy of, say 500k, after a couple kids, allowing some adjustment to cancel one along the way if it's not needed. We also carry insuran...
by MN Finance
Fri Mar 17, 2017 11:36 pm
Forum: Investing - Help with Personal Investments
Topic: Complex portfolio issues involving individual stock
Replies: 15
Views: 933

Re: Complex portfolio issues involving individual stock

The last time I looked Verizon was paying 4.6% but you don't desire any further telecom. You probably should continue to hold those stocks and just sell small amounts each year if any. Utilities and Telecom are considered defensive and if Blue Chip or Dow quality should be safe then. Just keep your...
by MN Finance
Fri Mar 17, 2017 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Need to Re-invest part of RMD in bond fund. Muni or Not ??
Replies: 18
Views: 963

Re: Need to Re-invest part of RMD in bond fund. Muni or Not ??

You know taxes aren't that simple. If the cash need is nominal then it probably doesn't matter either way, so go ahead and hold stocks. If the cash need triggers 50k in cap gains, it could marginally push 20% or 30%. Since low cash needs yield nominal differences either way, the decision should be i...
by MN Finance
Fri Mar 17, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Need to Re-invest part of RMD in bond fund. Muni or Not ??
Replies: 18
Views: 963

Re: Need to Re-invest part of RMD in bond fund. Muni or Not ??

First, the conventional wisdom to fill taxable accounts entirely with equities is fundamentally flawed. It makes sense to have a higher proportion in equities for the stated reasons, but most certainly not exclusively. When you have a large cash need, you'll need bonds so that you aren't forced to t...
by MN Finance
Wed Mar 15, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Only have $1500 - ETF?
Replies: 11
Views: 717

Re: Only have $1500 - ETF?

Schwab index mutual funds have $100 minimums and similar low fees. It'll be much easier to implement a 3-fund portfolio (or 1 fund with SWTSX) at Schwab with low funds. You can always switch to VTSAX later. You don't need 3 funds with 1500 or 15000 for that matter. You need to save as much as you c...
by MN Finance
Wed Mar 15, 2017 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: I can't contribute to my 401(k) due to "safe harbor" rules
Replies: 15
Views: 1683

Re: I can't contribute to my 401(k) due to "safe harbor" rules

I think what they were trying to explain in response to your request is that it's impossible for them to not match contributions because it's a safe harbor plan. That is true. But it's also a bit of a non-sequitur. The fact is that they also simply cannot accept contributions until you're eligible ...
by MN Finance
Wed Mar 15, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: conflict of interest [CFA vs. fiduciary]
Replies: 27
Views: 1902

Re: conflict of interest [CFA vs. fiduciary]

Thx LadyGeek....Our advisor is a CFP®. From the links, it looks like that mandates a fiduciary duty? When I go to the "Investment Adviser" link he's also registered as a licensed Investment Adviser. No complaints on either the FINRA or CFP websites. How can selling non-traded REITs with z...
by MN Finance
Tue Mar 14, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: VIIIX at 0.02% + fees or Taxable VFIAX at 0.05% (plus taxes)
Replies: 14
Views: 727

Re: VIIIX at 1.02% or Taxable VFIAX at 0.05% (plus taxes)

This isn't even a close call. Use the plan regardless of the cost and manage expenses when those opportunities arise. You'd have to be in a plan that cost 2%+ for a decade or two before it made sense to invest in taxable.
by MN Finance
Sun Mar 12, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Need help with determining if this is wash sale
Replies: 13
Views: 688

Re: Need help with determining if this is wash sale

I'm not clarifying but think it's totally backwards for taxes to drive your investment decisions. Any tax impact is nearly non existent compared to the investment movement. Further, you seem to think a wash sale is somehow negative. I don't see why that is.
by MN Finance
Fri Mar 10, 2017 12:03 am
Forum: Personal Finance (Not Investing)
Topic: W2 vs 1099 - mitigating negatives with W2
Replies: 4
Views: 498

Re: W2 vs 1099 - mitigating negatives with W2

She's making 7.65% more as a W2 employee, so that hardly appears to be something negative, regardless of the limitation on contributions to her i401k.
by MN Finance
Thu Mar 09, 2017 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Difference between Cref and TIAA acess
Replies: 3
Views: 440

Re: Difference between Cref and TIAA acess

The two index funds are identical, except for the expense. Someone may point out that the CREF fund is an annuity, but that holds no relevance. The real estate funds are very different. Tiaa is direct owned commercial real estate that is not publicly traded and therfore has the appearance of lower s...
by MN Finance
Thu Mar 09, 2017 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in Note funds
Replies: 8
Views: 480

Re: Investing in Note funds

Do you have an actual question?

I can imagine the responses you'll get are mixed, but after 08 with current market prices and rising rates, certainly not for the faint of heart.
by MN Finance
Thu Mar 09, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Possible to hold a mostly-passive small business within a tax-sheltered account?
Replies: 8
Views: 713

Re: Possible to hold a mostly-passive small business within a tax-sheltered account?

Before you actually start digging into it, you need to think about your "mostly" passive statement. If you are greater than 0% active, then your contribution is considered a contribution to your IRA (limited by the annual amount.) If you can't be 100% passive, then it's not worth wasting t...
by MN Finance
Thu Mar 09, 2017 12:10 am
Forum: Investing - Help with Personal Investments
Topic: Possible to reinvest this annuity?
Replies: 8
Views: 374

Re: Possible to reinvest this annuity?

I don't see much reason to liquidate the annuity. Any balanced portfolio option will include fixed investments and/or bonds. Many hear would jump at a 2.65% fixed account (if not jump, then at least consider it.) If it wasn't in there already the reverse would be true... no real reason to jump in as...
by MN Finance
Tue Mar 07, 2017 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: What assets in a Vanguard variable annuity if you are stuck with one
Replies: 18
Views: 1170

Re: What assets in a Vanguard variable annuity if you are stuck with one

Did you buy the GLWB option? No. Don't tell me we should have. :( Then, the strategy is to be fairly conservative. Remember, you Bought an insured pension plan. YMMV See Moshe Milevsky on VAs. No. That's not the strategy. You didn't buy an insured pension plan. You should treat it much like a 401k ...
by MN Finance
Sun Mar 05, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Enhancing your investments by selling options
Replies: 8
Views: 546

Re: Enhancing your investments by selling options

presumably youre talking about writing calls, which can be 'fine' but requires maintenance and work for a modest benefit. And absolutely would only work in an IRA due to taxes. you should form a more complete question.
by MN Finance
Sun Mar 05, 2017 4:41 pm
Forum: Investing - Theory, News & General
Topic: Would like comments on this Roth Conversion quote.
Replies: 30
Views: 2273

Re: Would like comments on this Roth Conversion quote.

When doing a conversion the primary consideration is tax rate, not time, so I label this quote as "mostly false." I didn't rate it as "liar liar pants on fire" only because if taxes are paid from non-retirement funds, the longer the time frame the better it is for the money to gr...
by MN Finance
Sun Mar 05, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: moving taxable broker-held investments to a 403(b)?
Replies: 23
Views: 847

Re: moving taxable broker-held investments to a 403(b)?

it's more common than not, that you are able to transfer the funds in-kind (without selling) to a discount brokerage (VG, Fido, Schwab) away from the advisor. List a couple of the funds and someone can tell you in a minute if they're transferable (or call VG and ask.) You could then remove the fee a...
by MN Finance
Sat Mar 04, 2017 7:55 pm
Forum: Investing - Theory, News & General
Topic: BND flat today despite interest rate announcement
Replies: 22
Views: 2976

Re: BND flat today despite interest rate announcement

Still everyone continues to talk about the relationship between the fed funds rate and the price of BND... sigh. In what economic theory does a yield curve and credit spread stay static one day to the next!? There is nearly NO direct [inverse] correlation between the fed funds rate and the price of ...
by MN Finance
Sat Mar 04, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Interest rate hike in March 2017 - move to short term muni fund?
Replies: 4
Views: 513

Re: Interest rate hike in March 2017 - move to short term muni fund?

If you had a 1000 bond that was a sure thing to be worth 990 in a month and you tried to sell it, who would buy it for 1000?

Nobody. So, what happens to the price when you sell it? It's 990 today.

Look at bond prices the day of the last interest rate hike.
by MN Finance
Sat Mar 04, 2017 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Need help with determining if this is wash sale
Replies: 13
Views: 688

Re: Need help with determining if this is wash sale

Wash sale is not illegal - all it means is that the losses you locked in with the sale will not be allowed. And your broker (assuming all these transactions are in the same account at the same broker) should provide you with the wash sale adjustments, if you do these transactions. And just a small ...
by MN Finance
Fri Mar 03, 2017 3:38 pm
Forum: Investing - Theory, News & General
Topic: BND flat today despite interest rate announcement
Replies: 22
Views: 2976

Re: BND flat today despite interest rate announcement

No. It means that the FOMC meeting hasn't happened yet. Only this I totally disagree. It does indeed mean the market has priced in the expectations so announcing something already known (and further actually doing the thing that s widely assumed) should not impact prices. Another fed meeting might ...
by MN Finance
Fri Mar 03, 2017 8:30 am
Forum: Personal Consumer Issues
Topic: When & how much to donate?
Replies: 94
Views: 4896

Re: When & how much to donate?

No judgement here. Just a couple thoughts First, for us giving has to be personal and purposeful, otherwise it seems totally pointless. When I wanted to give something to the battered women's shelter, for ex, instead of sending them money, I called and asked what they wanted ... they said toys for t...
by MN Finance
Thu Mar 02, 2017 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab OneSource ETFs lower fees than admiral shares
Replies: 28
Views: 2031

Re: Schwab OneSource ETFs lower fees than admiral shares

And what is the reason you would use vanguard if it's a taxable account? Because long term vanguard may keep their funds at a lower price? Can one more easily move a traditional IrA vs a Roth IRA between companies? One concern is that these products are loss leaders for Schwab and Fidelity - there ...
by MN Finance
Thu Mar 02, 2017 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Contributed too much to backdoor IRA- Any choice but to pay penalty?
Replies: 6
Views: 431

Re: Contributed too much to backdoor IRA- Any choice but to pay penalty?

You don't fix this by paying the penalty. You fix this by taking the excess amount out, which is not complicated. If you don't take the money out, you continue to pay the penalty each year.
by MN Finance
Tue Feb 28, 2017 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: Can allowance be counted as earned income for child's Roth IRA?
Replies: 5
Views: 582

Re: Can allowance be counted as earned income for child's Roth IRA?

You aren't employing your child. Clearly the answer is no.

Your child needs legitimate income, obviously.
by MN Finance
Tue Feb 28, 2017 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds bad in ROTH? Infographic:
Replies: 59
Views: 4014

Re: Bonds bad in ROTH? Infographic:

For the sake of argument, let's say I have $250,000 in a ROTH IRA and $250,000 in a traditional IRA. Let's assume I will make no more contributions over the next 15 years but simply allow each to grow. Since the ROTH gains are tax free whereas I'll lose 25% in taxes on the traditional IRA, isn't is...
by MN Finance
Sun Feb 26, 2017 8:03 pm
Forum: Personal Consumer Issues
Topic: Sellers disclosure form has sections not marked
Replies: 26
Views: 1905

Re: Sellers disclosure form has sections not marked

You're paying a realtor to handle these things. I would talk with her rather than us.
by MN Finance
Sun Feb 26, 2017 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: "Tithing" money to your parents?
Replies: 12
Views: 1855

Re: "Tithing" money to your parents?

Ignoring the implied tax fraud option, the best option is to just send them 500/month. That's it. It's not taxable income to them and it sure isn't deductible to you. There are literally no other choices.
by MN Finance
Sat Feb 25, 2017 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Annuities vs bonds
Replies: 22
Views: 818

Re: Annuities vs bonds

Are those "okay" in any circumstances? You have been around BH for a few months. So you know how we feel about fund expenses. We run yelling and screaming away from a mutual fund with an ER that is even 1%. Typical annuity expenses are about 2.5% per year. I think it's assumed the OP is t...
by MN Finance
Fri Feb 24, 2017 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Talking with parents' financial advisor
Replies: 52
Views: 4547

Re: Talking with parents' financial advisor

Trading stocks every day. WOW :!: :!: :!: Yes, the impact of that on the OP's parent's taxes is likely staggering. Seriously this guy needs to be ditched. Of all of this discussion on whether to help the OP parents or not, or whether the OP parents really wants help is not as nearly as serious as t...
by MN Finance
Fri Feb 24, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 44
Views: 2711

Re: How much are independent contractors really taxed?

As said, the total tax means nothing in this question. The total difference in tax between contract work and employment is probably 7.65%. That said, if you are actually choosing between two jobs, they are probably vastly different in both total economics and work life, so the comparison is very ind...
by MN Finance
Fri Feb 24, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Talking with parents' financial advisor
Replies: 52
Views: 4547

Re: Talking with parents' financial advisor

I think it's usually a really bad idea to stick your nose in your parents finances, unless you actually know what you're doing, but that's just me. You aren't just replacing high cost investments with low cost investments, you're personally taking on the role of being their new advisor. That's fine ...
by MN Finance
Thu Feb 23, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Investing Options for Children
Replies: 7
Views: 531

Re: Flexible Investing Options for Children

I personally don't understand the psychology of separating the money from your own. It seems like a feel good idea with no real benefit when you consider the hundreds of thousands you'll spend on the kids anyway. That said, the only real benefit is something like the 529 which you control and is rea...
by MN Finance
Thu Feb 23, 2017 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Stay in cash until rates rise?
Replies: 27
Views: 2583

Re: Stay in cash until rates rise?

Since bond funds decrease in value rather quickly when the fed raises rates ... You are concluding a couple things that are blatantly false or non existent. First bond funds are not tied to the Feds rate policy. Second, even if they were (again they're not,) there's nothing quick or slow about it. ...
by MN Finance
Tue Feb 21, 2017 3:24 pm
Forum: Investing - Theory, News & General
Topic: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios
Replies: 9
Views: 404

Re: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios

Those two portfolios aren't really comparable at all - different stock/bond mixes, different us/int equity, different credit risks (and probably term too), different exposure to small and value on the equity size. That's kind of the point. If you slice and dice you have exposure to riskier asset cl...
by MN Finance
Mon Feb 20, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: CFA or other qualified hourly professional recommendation
Replies: 4
Views: 367

Re: CFA or other qualified hourly professional recommendation

It wouldn't be a CFA, but possible CFP, CPA or attorney. What is the area you're trying to figure out (taxes, legal, other?)
by MN Finance
Thu Feb 16, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Stock To Adult Children
Replies: 7
Views: 584

Re: Gifting Stock To Adult Children

Yes, this is a common and simple strategy. A couple cautions: if they are getting any aid, adding capital gains could impact this since it will be on their tax return as taxable income (even if no tax is owed.) Second, most states tax cap gains like ordinary income, so need to account for that.
by MN Finance
Thu Feb 16, 2017 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Investing Advice for Baby/Infant
Replies: 15
Views: 1246

Re: Investing Advice for Baby/Infant

flyingbison wrote:
Easy Rhino wrote:I created a 529 for my daughter, specifically to hold cash gifts from relatives. Which honestly aren't that much, she's only 4.



Gifts to you, or gifts to your daughter? If you own the 529, I wouldn't be putting gifts made to someone else into it.

Wow.
by MN Finance
Wed Feb 15, 2017 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: charitable giving & transaction fees/costs
Replies: 4
Views: 181

Re: charitable giving & transaction fees/costs

For convenience we sometimes use credit cards for small donations. For anything larger we specifically don't use cards and write checks for just this reason. No idea what you may consider small or large, but we gave 7500 the other day, which to us was large, and I delayed the gift a week or two unti...
by MN Finance
Wed Feb 15, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Long treasury ETF
Replies: 3
Views: 234

Re: Long treasury ETF

I would just trade one or two Treasury bonds and hold those instead. Lots of platforms have free or virtually free commissions on those, and the liquidity is good in the Treasury market. What do you need an ETF for? Just run out and grab a ~30 year Treasury and ~20 year Treasury and call it a day. ...
by MN Finance
Wed Feb 15, 2017 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Long treasury ETF
Replies: 3
Views: 234

Long treasury ETF

I've looks through threads, but not much discussion on this. Is there a consensus on "best" long treasury ETF? The obvious choices are: PIMCO (ZROZ) Vanguard (EDV) Spider (TLO) iShares (TLT) As with most categories, iShares volume (9M) is way above all the other combined, but its ER is a b...
by MN Finance
Fri Feb 10, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1717

Re: Life estate at death

That you sir! The estate isn't subject to estate tax, but knowing the estate amount helps figure out the cap gain issue.
by MN Finance
Thu Feb 09, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Maximizing Solo 401k vs. minimizing self employment tax
Replies: 9
Views: 740

Re: Maximizing Solo 401k vs. minimizing self employment tax

I've had to make a similar decision. We've elected to increase salary maybe a little more than we could get away with because 1) it allows more contribution space and 2) it reduces the chances of someone questioning the dividend. Once you're above the wage base, then it doesnt really matter (2.9%). ...
by MN Finance
Thu Feb 09, 2017 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: VA: Axa Accumulator to keep or not?
Replies: 15
Views: 1251

Re: VA: Axa Accumulator to keep or not?

Yes, since my Father, the annuitant, passed away the cash value which was less than the death benefit has now reset to the current death benefit amount. They are equal right now. The death benefit would grow 6.5% a year till my mother turns 85yo or until she annuitizes it. We really don't need this...
by MN Finance
Thu Feb 09, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1717

Re: Life estate at death

Does anyone have an opinion on the whole property being stepped up at the second death? I'm not sure why I thought it was 50/50, one at each death. "Somewhat comparably, when an asset is jointly owned by a couple and one dies, half the asset is stepped up. When the second dies, the whole asset ...

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