Search found 6631 matches

by Wagnerjb
Mon May 02, 2016 8:55 pm
Forum: Investing - Theory, News & General
Topic: Stable Value Fees
Replies: 9
Views: 785

Re: Stable Value Fees

0.2% for T. Rowe Price stable value in my 401k. But I tend to look at the yield more than the expenses for a stable value fund. I just look at the yield as well. This isnt some public mutual fund where you can see the underlying bonds. In this case the ER isn't as relevant as the yield, which in my...
by Wagnerjb
Sun May 01, 2016 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: TLH Muni Funds ?
Replies: 11
Views: 903

Re: TLH Muni Funds ?

Thanks for the helpful responses. I kept seeing references to munis and the 6 month rule in various posts on the forum. If it is a recent change then it meshes with the wiki. Wash sale rules avoided by going into a different fund. I am one poster who started a thread to highlight this risk maybe 6-...
by Wagnerjb
Sun May 01, 2016 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: TLH Muni Funds ?
Replies: 11
Views: 903

Re: TLH Muni Funds ?

Are Vanguard muni funds exempt from the 6 month rule? This was discussed a while back and the answer given was, "Yes." The reason being given in example #1, here: http://www.fairmark.com/capgain/wash/wsreplac.htm No, the link you provided refers to the wash sale rule. This issue - the six...
by Wagnerjb
Sun May 01, 2016 10:37 am
Forum: Investing - Help with Personal Investments
Topic: New job, rolling over 401K
Replies: 11
Views: 800

Re: New job, rolling over 401K

Your asset allocation and the funds you are using look very sensible. Your investment strategy seems sound and logical too. My only concern is with your savings balance. Without disclosing your exact salary and nest egg size, I assume you have roughly 2 times your salary in savings. You have a very ...
by Wagnerjb
Sat Apr 30, 2016 8:01 pm
Forum: Investing - Theory, News & General
Topic: Shareholders want their (voting) rights back
Replies: 16
Views: 1340

Re: Shareholders want their (voting) rights back

Looks like Facebook's Zuckerberg is going this route, dual share classes to maintain control while he sells his shares. http://www.nytimes.com/2016/04/28/technology/facebook-q1-earnings.html?_r=0 The new C shares effectively allow Mr. Zuckerberg to maintain 60 percent of voting power while still gi...
by Wagnerjb
Fri Apr 29, 2016 10:34 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1102

Re: Foreign Tax Credit, Form 1116, Double Taxation

The foreign tax credit is intended to make the taxpayer pay the greater of the foreign tax or the US tax. In this case, taxpayer B paid 15% to the foreign government and would be paying 7% to the US. The FTC of $208 is essentially the refund of the 7% that he would be paying to the US. Thus, in the ...
by Wagnerjb
Fri Apr 29, 2016 3:57 pm
Forum: Personal Consumer Issues
Topic: Tips Wanted: Sydney to Melbourne, Great Ocean Road
Replies: 3
Views: 205

Re: Tips Wanted: Sydney to Melbourne, Great Ocean Road

My wife and I recently spent time in Sydney (New Year's eve), flew to Melbourne and also did the Great Ocean Road. I have two thoughts on your itinerary: a) We rented a car from Hertz and it went smoothly. Unless you are familiar with driving on the left side of the road, be sure to request (in adva...
by Wagnerjb
Fri Apr 29, 2016 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Tax Diversification
Replies: 11
Views: 657

Re: Tax Diversification

Which does not make Roth 401K the right answer. What is you current marginal tax rate? If it is 25%, A) If you are married, you need at least 2.5 million worth of investment before you will hit the 25% marginal tax rate at retirement. B) If you are single, you need at least 1.25 million of investme...
by Wagnerjb
Thu Apr 28, 2016 9:13 am
Forum: Investing - Theory, News & General
Topic: McKinsey report on diminishing returns
Replies: 91
Views: 5694

Re: McKinsey report on diminishing returns

Whenever I have seen predictions about the markets over my investing life of over 30 years, they are most often completely wrong and usually follow this path. 1.) Prediction is made with almost 100% certainty. 2.) Book usually accompanies prediction written by the same author. 3.) the time period e...
by Wagnerjb
Thu Apr 28, 2016 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Financial Impotence - difficulty living below means
Replies: 14
Views: 1317

Re: Financial Impotence - difficulty living below means

bigred77 wrote:I just don't have a lot of sympathy for the author and didn't appreciate his implications that the deck is stacked against every day Americans and that they are victims here.


Same here
by Wagnerjb
Thu Apr 28, 2016 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Question: Mega Cap or S&P 500?
Replies: 8
Views: 711

Re: Question: Mega Cap or S&P 500?

When did Vanguard come out with a Mega Cap fund?

If you are referring to the Large Cap index fund, I think it is a tossup and I cannot think of a compelling reason to prefer one over the other.

Best wishes.
by Wagnerjb
Sun Apr 24, 2016 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Will Chip + Sign CC work in Europe?
Replies: 27
Views: 2013

Re: Will Chip + Sign CC work in Europe?

They work in most situations but won't work in a lot of unattended kiosks. My wife and I were in Australia and New Zealand in January (yes, I know that isn't Europe, but the experience with credit cards was similar). We had chips in our credit cards, but not the PIN. At every single store or restau...
by Wagnerjb
Sat Apr 23, 2016 11:03 am
Forum: Investing - Help with Personal Investments
Topic: 401K Allocations - 5 years to Retirement
Replies: 8
Views: 961

Re: 401K Allocations - 5 years to Retirement

Here are a few random comments: I would tend to view the husband's pension as a fixed income investment. As such, it represents the 60% in fixed income for your overall portfolio and I would concentrate primarily on equities for the 401k plans and IRAs and Deferred Comp plan. What rate of interest a...
by Wagnerjb
Thu Apr 21, 2016 2:11 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Strategy?
Replies: 26
Views: 2779

Re: Bond Fund Strategy?

My fixed income strategy is influenced by several DFA advisors, including Larry Swedroe. They state that risk is rewarded in equities with much greater returns, while risk in fixed income is rewarded with less of a return bonus. Fixed income provides ballast and risk reduction for your equity portfo...
by Wagnerjb
Thu Apr 21, 2016 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Cannot Pay Huge Tax Burden
Replies: 107
Views: 8440

Re: Cannot Pay Huge Tax Burden

I ran some numbers for you. I assumed that your SO will pay just the interest on this loan of $200k at 7%, or $14,000 per year. You are concerned that your SO will owe income tax on the value of the forgiven loan after 20 years - which will be valued at $200k at the end. So, your SO might owe $60k i...
by Wagnerjb
Wed Apr 20, 2016 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Don't Include 529s in Portfolio, Correct?
Replies: 14
Views: 1243

Re: Don't Include 529s in Portfolio, Correct?

hafjell wrote:I'm guessing nobody includes assets in 529s for their children are not included as part of portfolio or net worth.


Correct, I do not include those assets in my retirement numbers.
by Wagnerjb
Wed Apr 20, 2016 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Cannot Pay Huge Tax Burden
Replies: 107
Views: 8440

Re: Cannot Pay Huge Tax Burden

3. He could live on ramen noodles in a dangerous, rundown apartment for 20 years to pay off the loans. It would take every penny of his discretionary income or even a little more (which is, of course, not payable then). I vote for this one. Maybe he can get a roommate to further lower costs. Ride h...
by Wagnerjb
Wed Apr 20, 2016 11:28 am
Forum: Investing - Theory, News & General
Topic: If past performance doesn't indicate future performance, why buy stocks?
Replies: 43
Views: 4020

Re: If past performance doesn't indicate future performance, why buy stocks?

Future performance is based on the legal structure of corporations, investor's appetite for risk and growth in the economy. It has been demonstrated that investors demand a higher expected return for investing in an instrument with more risk. The legal structure of equity (common stock) is that it h...
by Wagnerjb
Wed Apr 20, 2016 11:18 am
Forum: Investing - Theory, News & General
Topic: Current Valuations US v. Int & Expected Returns
Replies: 22
Views: 2504

Re: Current Valuations US v. Int & Expected Returns

Markets price risk, not expected return. Dave The risk is the expected volatility, not the current price of the equities. Do you believe that the current level of the market impacts the volatility going forward? I don't. I believe that a market with intelligent investors will serve to price equitie...
by Wagnerjb
Wed Apr 20, 2016 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Voya Fixed Account 4%
Replies: 11
Views: 1888

Re: Voya Fixed Account 4%

Why invest in something you do not fully understand? In fact, it seems you have received conflicting information, which I would also find troubling. I agree with this advice. Something doesn't fit together here, and you are not sure what it is. Maybe the risk is higher than you think, maybe the fee...
by Wagnerjb
Wed Apr 20, 2016 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio advice
Replies: 2
Views: 333

Re: Retirement portfolio advice

Welcome to the Forum! A safe retirement account withdrawal is something close to 4%, but your initial withdrawal of $38k will be closer to 6%. However, that will only last 7 years, after which you will be withdrawing next to nothing. As long as your withdrawal reverts to a very small amount when you...
by Wagnerjb
Wed Apr 20, 2016 10:40 am
Forum: Investing - Theory, News & General
Topic: Current Valuations US v. Int & Expected Returns
Replies: 22
Views: 2504

Re: Current Valuations US v. Int & Expected Returns

I'm curious if anyone has good numbers for current valuations for US, International, and Emerging Markets and the resulting expected returns. Why wouldn't the expected returns be the same for large cap developed markets in the US and International? No intelligent investor is going to put his money ...
by Wagnerjb
Wed Apr 20, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Filed form 8606 when not needed - should I amend?
Replies: 5
Views: 474

Re: Filed form 8606 when not needed - should I amend?

My understanding is that you don't need to file 1040X since there is no impact to the tax liability. I recently corrected a Form 8606 from a few years ago, and the filing was done by KPMG....and they did not include a 1040X with the amended Form 8606 since there was no change in tax liability. Best ...
by Wagnerjb
Tue Apr 19, 2016 7:10 pm
Forum: Investing - Theory, News & General
Topic: Risk Adj Return: Single Stock Vs. Portfolio
Replies: 21
Views: 1009

Re: Risk Adj Return: Single Stock Vs. Portfolio

I'm reminded of a story about John Greaney (of early retirement homepage) who claimed to have owned significant positions of Dell, i think it was, before that stock exploded and his gains were so great, it single-handily allowed him to retire early. There's 0% chance of that happening with VIG. And...
by Wagnerjb
Tue Apr 19, 2016 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Charitable Fund performance and fees
Replies: 3
Views: 350

Re: Fidelity Charitable Fund performance and fees

Did you scroll down and notice this footnote? 1 Pool created 07/01/2011, therefore historic performance is not available for earlier periods. Pool is 100% invested in the underlying mutual fund displayed beneath the pool. Pool results will include a Fidelity Charitable annual administrative fee as d...
by Wagnerjb
Tue Apr 19, 2016 10:33 am
Forum: Investing - Theory, News & General
Topic: What is "wrong" with having more funds in a portfolio?
Replies: 70
Views: 3658

Re: What is "wrong" with having more funds in a portfolio?

Your approach makes perfect sense for your situation. As long as your allocation is intact and your expenses are low, the only issue is whether you can deal with more funds to track. Many people put a high price on simplicity but for those slicing and dicing, or wanting a custom allocation, your app...
by Wagnerjb
Mon Apr 18, 2016 6:00 pm
Forum: Investing - Theory, News & General
Topic: What does a 20+ year old portfolio look like?
Replies: 7
Views: 1151

Re: What does a 20+ year old portfolio look like?

I also gift highly appreciated shares to my children, who pay no tax on the capital gains, also affording me an opportunity to minimize the impact of a big winner. Um, if you gift them right now, i'm pretty sure your childen will have to pay capital gains whenever they sell it. I think basis only g...
by Wagnerjb
Mon Apr 18, 2016 12:39 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Primary Dealers
Replies: 1
Views: 237

Re: Treasury Auction - Primary Dealers

I was very surprised at the number of foreign "owned" firms in the list. I can't even pronounce some of the names. I guess the whole world wants to buy our debt. I imagine that a Brit or a German or an Australian or a Japanese person would feel the same way when they look at the banks aut...
by Wagnerjb
Mon Apr 18, 2016 10:35 am
Forum: Investing - Theory, News & General
Topic: What does a 20+ year old portfolio look like?
Replies: 7
Views: 1151

Re: What does a 20+ year old portfolio look like?

If you own ETF or stocks....is the return percentage something ridiculous like 1800%? I have tracked my investment results since I began right after college in 1983. Over those 33 years, my benchmark equity returns (70% S&P500, 30% EAFE) have been 2865%, or around 10.7% annual average. My actua...
by Wagnerjb
Sun Apr 17, 2016 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: RSU and taxes
Replies: 1
Views: 360

Re: RSU and taxes

Your understanding is correct for the sale of the 40 shares. Proceeds are what the broker reported, and cost basis is $10/share (the price at which the shares vested, the same as the price on which you are paying taxes). When you sell the remaining 60 shares, their cost basis will be $600 ($10 per s...
by Wagnerjb
Sun Apr 17, 2016 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: How to suggest an increase in the 401k match?
Replies: 9
Views: 1202

Re: How to suggest an increase in the 401k match?

How can you word it so that a higher match does not cost the company money? That's the key. I agree with his. By the way, your time would be much more productively spent asking your boss for a raise. The company is MUCH more likely to give a raise to one worthy employee than they are to give a rais...
by Wagnerjb
Sat Apr 16, 2016 10:43 am
Forum: Investing - Theory, News & General
Topic: The Problem with Raw Returns in a Backtest
Replies: 19
Views: 2014

Re: The Problem with Raw Returns in a Backtest

Finding an unexploited anomaly in the stock market is equivalent to finding the Holy Grail. It produces and never-ending flow of goodness. Researchers and investors spend millions of hours each year searching for better ways to invest in the stock market. Some calm to find the elusive alpha, only t...
by Wagnerjb
Fri Apr 15, 2016 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-MISC: Schedule C vs other income
Replies: 9
Views: 808

Re: 1099-MISC: Schedule C vs other income

If you google the title of your post you will find some articles that explain the difference. I believe it has to do with whether the income is frequent and recurring and whether you hold yourself out to other as being in the business.

Best wishes.
by Wagnerjb
Fri Apr 15, 2016 7:41 am
Forum: Personal Finance (Not Investing)
Topic: [Tax filing mistakes made by your CPA (or yourself)]
Replies: 69
Views: 4073

Re: How often does your CPA screw up your taxes?

Because I had an expatriate assignment, my company paid a Big Four firm to prepare my taxes for almost 20 years (due to the complicated foreign tax credits). As a CPA who had done his own taxes for all my life, I usually checked their tax returns to verify the numbers. I found maybe a half dozen err...
by Wagnerjb
Thu Apr 14, 2016 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Filed my Form 4868 this week (extension to file tax return)
Replies: 31
Views: 1107

Re: Filed my Form 4868 this week (extension to file tax return)

A 4868 (which can be efiled and is extremely short with minimal data input) and a subsequent 1040 (also efiled) is a piece of cake compared to a timely efiled 1040 followed by an amended 1040X (which can't be efiled and often requires a written explanation of the mistake you are correcting.) If you...
by Wagnerjb
Thu Apr 14, 2016 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Filed my Form 4868 this week (extension to file tax return)
Replies: 31
Views: 1107

Re: Filed my Form 4868 this week (extension to file tax return)

livesoft wrote:I'm chuckling that you think sending in a Form 4868 is work. I'll assume you are pulling my leg.


No, but calculating the estimated liability is work. And since you will do a complete tax return in October, the time you spend on the estimate is wasted time.
by Wagnerjb
Thu Apr 14, 2016 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Filed my Form 4868 this week (extension to file tax return)
Replies: 31
Views: 1107

Re: Filed my Form 4868 this week (extension to file tax return)

So, you do extra work because your wife can't be bothered to sign the return before April 15th? I would bet you that preparing the return on time (with the best data you have at the time) is easier than extending. Think about it. You need to basically do a complete tax return by April 15th to send i...
by Wagnerjb
Mon Apr 11, 2016 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire early
Replies: 29
Views: 5679

Re: Can I retire early

A few questions to help us help you: How much do you want to spend in retirement? Does your spending target include paying for health care insurance up until age 65 (Medicare) for you and your spouse? How much more will you have saved by retirement? Will your college funds be completed by retirement...
by Wagnerjb
Sun Apr 10, 2016 2:06 pm
Forum: Investing - Theory, News & General
Topic: Brag about reduced expenses
Replies: 11
Views: 2101

Re: Brag about reduced expenses

I'm starting to understand how our 401k provider can afford to fly their representative halfway across the country to meet with employees. Do you ever wonder who pays for the lavish Super Bowl parties that the brokers throw? Do you ever wonder who pays for the lavish trips to Las Vegas for brokers ...
by Wagnerjb
Sat Apr 09, 2016 10:36 am
Forum: Personal Finance (Not Investing)
Topic: How to get my 29 year old sister into saving....("I don't have any money to save")
Replies: 58
Views: 5045

Re: How to get my 29 year old sister into saving....("I don't have any money to save")

She's investing to the point that meets her employer's match. That may not make her rich; but it's s start. It might be beneficial to encourage her to make the best selection of funds available to her inside the employer's program - low cost, index funds with her unique portfolio asset allocation t...
by Wagnerjb
Fri Apr 08, 2016 8:21 am
Forum: Investing - Theory, News & General
Topic: New Kid on the Block for Emerging Value
Replies: 3
Views: 575

Re: New Kid on the Block for Emerging Value

Thanks for the heads up. I own two WisdomTree funds today, including DGS in my EM portfolio. I currently have a DFA fund for EM Value (DFEVX) but it is one that I inherited and since I do not use an advisor I cannot add to the fund. I like the low 0.32% ER of DVEM and so I will keep an eye on this f...
by Wagnerjb
Thu Apr 07, 2016 8:17 am
Forum: Personal Finance (Not Investing)
Topic: 8606 - Clarification on two scenarios
Replies: 7
Views: 592

Re: 8606 - Clarification on two scenarios

While this gives the right result I believe that the 12/31/15 conversion and the March 16 contribution for 2015 interact and require you to fill out lines 4 through 15 of part I. Or perhaps somewhere in the instructions there is an exception to the exception. 2015 Form 8606 Part I Line 1 -- 5,500 L...
by Wagnerjb
Wed Apr 06, 2016 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Company Stock, NUA and Asset Allocation
Replies: 10
Views: 542

Re: Company Stock, NUA and Asset Allocation

This is not the case if you also have after-tax contributions in your 401(k). At least at my mega-oil company, I rolled over all the before-tax $$ into a t-IRA and used my after-tax $$ to withdraw NUA stock at it's very low cost basis. Eventually taxes will have to be paid on the LTCG but I paid no...
by Wagnerjb
Tue Apr 05, 2016 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Company Stock, NUA and Asset Allocation
Replies: 10
Views: 542

Re: Company Stock, NUA and Asset Allocation

Keep in mind that the NUA strategy requires you to pay taxes early. But that ordinary income tax is on the value of the stock when it was acquired in your 401k. After removing the stock from your 401k and paying the tax as above, you can sell the stock the next day and receive Long Term Capital Gai...
by Wagnerjb
Tue Apr 05, 2016 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Company Stock, NUA and Asset Allocation
Replies: 10
Views: 542

Re: Company Stock, NUA and Asset Allocation

The NUA strategy is not compelling to me, but I see the appeal to people who find themselves in an undiversified position. Keep in mind that the NUA strategy requires you to pay taxes early. If you exchanged your COP shares for a mutual fund today, at retirement you would roll over those funds into ...
by Wagnerjb
Mon Apr 04, 2016 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: No federal tax with $90K of income??
Replies: 26
Views: 4071

Re: No federal tax with $90K of income??

We paid $0 in federal income taxes for 2015 on $70k in income. This was accomplished with a combination of maxing HSA, contributing to 401ks, lifetime learning credit, child tax credit, and three personal exemptions. For 2016 we will pay $0 in Federal income tax on an Adjusted Gross Income of aroun...
by Wagnerjb
Mon Apr 04, 2016 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard and Backdoor Roth on 1099-R
Replies: 4
Views: 522

Re: Vanguard and Backdoor Roth on 1099-R

I did a backdoor in 2014 (and a few prior years) with Vanguard. My 2014 1099-R showed the amount of my non-deductible IRA contribution and rollover to a Roth in box 1 and 2a. Boxed 2b was checked. The distribution code was 02 and the "IRA/SEP/SIMPLE" box was checked. I entered the informat...
by Wagnerjb
Sun Apr 03, 2016 7:06 pm
Forum: Personal Consumer Issues
Topic: Custom House Cost
Replies: 22
Views: 2546

Re: Custom House Cost

We built a custom home in a high-end development in suburban Houston, and our house was comfortably within the 4,000 to 5,000 sq. foot range. It included the higher end appliances (Wolf, Thermador, Bosch, etc) and had equivalently nice finishes, trim and other toys. It has a 3 car garage. The amount...
by Wagnerjb
Fri Apr 01, 2016 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Simplification
Replies: 5
Views: 601

Re: Portfolio Simplification

Welcome Andy. I would suggest selling the Healthcare fund now. You will get a valuable tax loss (reduces your taxable income this year) if you sell now, and you will transfer to more diversified and lower cost funds sooner. I am not sure I understand the question about a backdoor Roth conversion. I ...

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