Search found 6881 matches

by Wagnerjb
Wed Feb 22, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 1403

Re: Deferred compensation plan default risk

I was wondering if folks know of any real situations where deferred compensation plans have not fully paid out due to company default? I am trying to quantify the risk here. We are in a high tax bracket in a very high tax state and would love to take full advantage of the plan my employer offers. L...
by Wagnerjb
Wed Feb 22, 2017 11:12 am
Forum: Investing - Theory, News & General
Topic: behavior and bogleheads wiki page on passively owning individual stocks
Replies: 7
Views: 577

Re: behavior and bogleheads wiki page on passively owning individual stocks

I will make a stab at an answer. I did not author the Wiki, but I made a small contribution to other parts of the document. And I use this strategy of individual stocks for a limited portion of my portfolio. I believe the issue is that an investor is much more susceptible to these behavioral issues ...
by Wagnerjb
Wed Feb 22, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Specified ID Shares and Older VG Accounts/Purchases
Replies: 8
Views: 406

Re: Specified ID Shares and Older VG Accounts/Purchases

............................................. Questions: ======== 1)Can I simply list the 'correct' basis in my tax return per my records and ignore the erroneous cost basis/dates VG is providing me? 2)Should I *NOT* select adjustment code 'B' on my return (1099-B Basis Reported Incorrect) since ba...
by Wagnerjb
Tue Feb 21, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred Compensation - Tax Management
Replies: 5
Views: 493

Re: Deferred Compensation - Tax Management

I used our non-qualified deferred compensation (NQDC) plan at work. I made my first contribution at age 48 and made several contributions over the next 10 years, retiring just short of age 58. I chose a five-year payout commencing one year after retirement. I have no regrets with those decisions. In...
by Wagnerjb
Mon Feb 20, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard dividend info on 1099-B is different
Replies: 10
Views: 495

Re: Vanguard dividend info on 1099-B is different

Some dividends paid in January are taxable in 2016. There is another thread on this subject, but I don't have time to look for it now. I question this, and would welcome an example. Our Vanguard 1099-B for 2016 shows a dividend for an individual stock that we own (American Tower Corp) with a "...
by Wagnerjb
Sun Feb 19, 2017 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 1403

Re: Deferred compensation plan default risk

I think we need to separate the investment allocation issues from the unique risk of company default. You cannot separate the two issues. The company default risk permeates the risk of the investments themselves, so you now have both investment risk and default risk intertwined in the various inves...
by Wagnerjb
Sun Feb 19, 2017 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 1403

Re: Deferred compensation plan default risk

The problem I find with the hedging as articulated is it undermines the purpose of the plan. Waiting till close to retirement you lose both the compound interest as well as tax advantages. You need to come up with a plan that balances between significant and early contributions to the NQDC plan (le...
by Wagnerjb
Sun Feb 19, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 1403

Re: Deferred compensation plan default risk

D Last, my allocation in this strategy is more conservative than my "long term" money - think low cost bond funds vs. equities. I believe the best investment for such a non-qualified deferred compensation plan is equities (of course, diversified, low-cost and passive). My concern with put...
by Wagnerjb
Sun Feb 19, 2017 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Deferred compensation plan default risk
Replies: 20
Views: 1403

Re: Deferred compensation plan default risk

I participated in a NQ Deferred Comp plan like the ones you are discussing. There are several ways to manage the risk that you are trying to assess: a) Wait until later in your career to contribute to the plan. This shortens the time you are exposed to default risk. b) Shorten the payback period aft...
by Wagnerjb
Thu Feb 16, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: American Opportunity Tax Credit
Replies: 5
Views: 455

Re: American Opportunity Tax Credit

The first key question is whether your Dad claimed you as a dependent on his tax return? If he did, you are ineligible to claim the credit on your tax return. I.E., if a student is claimed as a dependent by someone else, the credit applies to the person claiming the student as a dependent and eligi...
by Wagnerjb
Thu Feb 16, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Never-Ending Foreign Tax Credit Problem
Replies: 33
Views: 2384

Re: Never-Ending Foreign Tax Credit Problem

House Blend and Wagnerjb/Andy, what you say seems correct, that it is an issue of my global effective tax rate being less than my foreign effective tax rate from the passive income on VG international funds. Kaneohe, that may happen to me as well, with rising ordinary income given the rising intere...
by Wagnerjb
Wed Feb 15, 2017 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Never-Ending Foreign Tax Credit Problem
Replies: 33
Views: 2384

Re: Never-Ending Foreign Tax Credit Problem

As a sanity check, I would compare your effective tax rate (Fed tax divided by AGI or AGI minus exemptions) with the percentage of your foreign dividends that were withheld for tax. (That's about 7% for Total International.) If your ability to claim the credit is limited, then your effective tax ra...
by Wagnerjb
Sun Feb 12, 2017 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: UTMA Questions (TLH/ Kiddie Tax)
Replies: 3
Views: 267

Re: UTMA Questions (TLH/ Kiddie Tax)

1. The UTMA (and the related income and capital gains/losses) belongs to your son, so I don't see how you can trigger a wash sale in your example.

2. You are correct.

Best wishes.
by Wagnerjb
Thu Feb 09, 2017 12:29 pm
Forum: Investing - Theory, News & General
Topic: tax treatment of shares gifted to child?
Replies: 8
Views: 914

Re: tax treatment of shares gifted to child?

What do people actually do normally? I can only speak for myself. I have gifted highly appreciated securities to my children to pay for college costs. I have also gifted highly appreciated securities to my children to help them fund a Roth IRA contribution. When I gift shares to my children, there ...
by Wagnerjb
Sun Feb 05, 2017 11:19 am
Forum: Investing - Theory, News & General
Topic: Stock Investors -- Wrong Again.
Replies: 33
Views: 5340

Re: Stock Investors -- Wrong Again.

riverguy wrote:Kiddie tax? Or are you gifting adult children?


They are adults. But thanks for the heads up anyway.
by Wagnerjb
Sat Feb 04, 2017 6:32 pm
Forum: Investing - Theory, News & General
Topic: Stock Investors -- Wrong Again.
Replies: 33
Views: 5340

Re: Stock Investors -- Wrong Again.

As a result, I gifted shares of Gilead to my daughter for her 2016 Roth contribution, to my son for his 2016 Roth Contribution and for my son's 2017 Roth contribution. Those shares were sold in 2016. Not only did Gilead have massive long term capital gains (that were not taxed to my children), but ...
by Wagnerjb
Sat Feb 04, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: Stock Investors -- Wrong Again.
Replies: 33
Views: 5340

Re: Stock Investors -- Wrong Again.

As a result, I gifted shares of Gilead to my daughter for her 2016 Roth contribution, to my son for his 2016 Roth Contribution and for my son's 2017 Roth contribution. Those shares were sold in 2016. Not only did Gilead have massive long term capital gains (that were not taxed to my children), but ...
by Wagnerjb
Fri Feb 03, 2017 7:23 pm
Forum: Investing - Theory, News & General
Topic: Stock Investors -- Wrong Again.
Replies: 33
Views: 5340

Re: Stock Investors -- Wrong Again.

Bogleheads: Valeant (down -84%) and Gilead (down -16%) were on the list of the most bought shares in 2016. I guess I must swim against the tide. I have held Gilead as part of a diversified portfolio of US Large Cap individual stocks and I purchased Gilead in 2011. In 2012 it gained 79%, in 2013 it ...
by Wagnerjb
Sun Jan 29, 2017 6:47 pm
Forum: Investing - Theory, News & General
Topic: Is exchanging FSIVX for FTIPX considered a wash?
Replies: 15
Views: 1126

Re: Is exchanging FSIVX for FTIPX considered a wash?

in Revenue Ruling 76-346, the IRS stated that transactions in Treasury obligations do not trigger a wash sale if the interest rates and maturities (?) differ Citation: Tax-Loss Harvesting: The Rebalancing Act By Lee C. McGowan, CFP https://www.onefpa.org/journal/Pages/Tax-Loss%20Harvesting%20The%20...
by Wagnerjb
Sun Jan 29, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: Is exchanging FSIVX for FTIPX considered a wash?
Replies: 15
Views: 1126

Re: Is exchanging FSIVX for FTIPX considered a wash?

You can not assume just because your financial institution doesn't detect a wash sale that it is OK. They are only required to detect between the security, itself, and different share classes of the same security. The tax court has held two different treasuries with different issue dates and differ...
by Wagnerjb
Sat Jan 28, 2017 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 5695 x2 for 2 Heat Pumps
Replies: 8
Views: 590

Re: IRS Form 5695 x2 for 2 Heat Pumps

What do the instructions for Form 5695 say about carryforwards?
by Wagnerjb
Fri Jan 27, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: Secondary Market Brokered CD mechanics
Replies: 30
Views: 2732

Re: Secondary Market Brokered CD mechanics

I'm thinking of diversifying a portion of my FI into a ladder of brokered CDs in anticipation of rising interest rates. Buying them on the primary market seems straightforward enough, but I have questions about purchasing them on the secondary market. 1) Is there a common marketplace for brokered C...
by Wagnerjb
Fri Jan 27, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: LTI Options - Is my tax strategy flawed?
Replies: 4
Views: 380

Re: LTI Options - Is my tax strategy flawed?

The most sound strategy is to do the "cashless exercise". As you know, you will pay ordinary income tax on the gain - so there is nothing you can do to convert that income to capital gain, or to defer the income in any way. You generally want to avoid holding stock in your employer, so sel...
by Wagnerjb
Wed Jan 25, 2017 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard still gets 1099-B basis wrong for non-covered mutual fund
Replies: 17
Views: 1529

Re: Vanguard still gets 1099-B basis wrong for non-covered mutual fund

Reminder: If you sell non-covered shares (shares purchased in 2011 or earlier for most mutual funds), your brokerage will not report the purchase price to the IRS. If your brokerage does report the purchase price to you, it is not responsible for the accuracy of that number. I just got my 1099-B fr...
by Wagnerjb
Wed Jan 25, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: 30% tax break on Trad IRA contributions in 15% tax bracket
Replies: 34
Views: 2321

Re: 30% tax break on Trad IRA contributions in 15% tax bracket

............................................................ If you follow through the arithmetic on the dividend and capital gains tax worksheet that should show you how it works. https://apps.irs.gov/app/vita/content/globalmedia/capital_gain_tax_worksheet_1040i.pdf My personal experience is the o...
by Wagnerjb
Wed Jan 25, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: 30% tax break on Trad IRA contributions in 15% tax bracket
Replies: 34
Views: 2321

Re: 30% tax break on Trad IRA contributions in 15% tax bracket

Sorry, but I agree with tfb. Look at the 1040 form. Taxable income (Line 43) = Adjusted Gross Income (line 38) - Itemized or standard deduction (line 40) - exemptions (line 41). Since Capital gains are included in your adjusted gross income it is part of your taxable income. Your taxable income is ...
by Wagnerjb
Tue Jan 24, 2017 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: 30% tax break on Trad IRA contributions in 15% tax bracket
Replies: 34
Views: 2321

Re: 30% tax break on Trad IRA contributions in 15% tax bracket

If the couple has no earned income, how can they contribute to a TIRA? And if they have earned income from an employer with a sponsored retirement plan, then they will potentially hit MAGI-based phase-outs on TIRA contributions. What am I missing? I think the example used by the OP is a reduction i...
by Wagnerjb
Tue Jan 24, 2017 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: 30% tax break on Trad IRA contributions in 15% tax bracket
Replies: 34
Views: 2321

Re: 30% tax break on Trad IRA contributions in 15% tax bracket

The example shown is perhaps rare: an extremely large amount of qualified dividends, coupled with earned income without access to an employer sponsored retirement account (otherwise the MAGI-based phase-out would have precluded any deductible TIRA contribution). That example may be very common for ...
by Wagnerjb
Tue Jan 24, 2017 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: 30% tax break on Trad IRA contributions in 15% tax bracket
Replies: 34
Views: 2321

Re: 30% tax break on Trad IRA contributions in 15% tax bracket

Your taxable income is either in the 15% bracket or the 25% bracket. You can save 30% only if your taxable income is already in the 25% bracket. So it's really 30% tax break in the 25% bracket, not 30% break in the 15% tax bracket. I don't think that is correct. In the OP's linked example, if you a...
by Wagnerjb
Sat Jan 21, 2017 11:21 pm
Forum: Forum Issues and Administration
Topic: scheduled down time morning of January 22
Replies: 13
Views: 1069

Re: scheduled down time morning of January 22

Sheepdog wrote:Thank you for everything that you do for this site, and for us particularly.


Let me add my voice to the thank you.
by Wagnerjb
Fri Jan 20, 2017 9:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 1099s available - Other companies just as good for sending 1099s???
Replies: 63
Views: 5372

Re: Vanguard 1099s available - Other companies just as good for sending 1099s???

livesoft wrote:So you didn't get the Vanguard e-mail on that? Or your daughter didn't tell you that she got the e-mail?


Nope. When did you get your email?
by Wagnerjb
Fri Jan 20, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 1099s available - Other companies just as good for sending 1099s???
Replies: 63
Views: 5372

Re: Vanguard 1099s available - Other companies just as good for sending 1099s???

I just noticed that the interest reported on my daughter's Vanguard 1099-DIV only represents part of the year (presumably before the switch to brokerage). I am assuming Vanguard will send another 1099-DIV, but that will make it confusing and frustrating for investors. As I recall, Vanguard sent two ...
by Wagnerjb
Wed Jan 18, 2017 5:18 pm
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 2538

Re: Replicating Index with Individual Stocks vs Index Fund

It does NOT mean that one can create a 20-stock portfolio and expect it to mirror the market. I agree. But let's take a look at a study and also at real life to see what happens to a portfolio of 30-35 stocks. The Surz-Price study linked below shows that the market has a standard deviation of 14.5%...
by Wagnerjb
Tue Jan 17, 2017 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking advice on a loan to a craft brewer. Cheers!
Replies: 20
Views: 1255

Re: Seeking advice on a loan to a craft brewer. Cheers!

1) A successful craft brewery is seeking $300,000 in funds for additional production equipment. This company has been in business for 9 years and has grown to become the 4th largest brewery in my state. If this brewery is truly "successful" and has grown as you indicate, it should be able...
by Wagnerjb
Sun Jan 15, 2017 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Receipts [Retaining purchase receipts]
Replies: 28
Views: 1368

Re: Receipts [Retaining purchase receipts]

I keep all receipts in a drawer initially. Once they have cleared the credit card statement, I keep the ones with state sales tax and shred the others (gas, haircuts, some grocery store receipts). At the end of the year, I use the sales tax amount for my state sales tax itemized deduction (I have al...
by Wagnerjb
Fri Jan 13, 2017 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 710

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

This doesn't specify that the distribution must be made in the same year. Best wishes. I think there are risks to matching withdrawals in one year to expenses in another - read here... https://www.bogleheads.org/forum/viewtopic.php?f=2&t=207622&p=3184018#p3184018 That is a different issue -...
by Wagnerjb
Fri Jan 13, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 710

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

Here is what I did. I used $4,000 of non-529 funds to pay for the first $4,000 of tuition and then used the 529 account for the remainder of the qualifying college costs. With the extra funds in the 529 account, I had "non qualified" distributions sent directly to my son and my daughter, ...
by Wagnerjb
Fri Jan 13, 2017 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA for High Net Worth Parents?
Replies: 71
Views: 6318

Re: FAFSA for High Net Worth Parents?

livesoft wrote:We filled out FAFSA for freshman year, but never again.


Same here. My boss at work said he never filled out the FAFSA, but my wife urged me to fill it out for many of the reasons already mentioned...not necessarily that we would get financial aid.
by Wagnerjb
Fri Jan 13, 2017 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Retiree health care premium before reaching medicare age
Replies: 17
Views: 1245

Re: Retiree health care premium before reaching medicare age

I am retired (but not yet Medicare eligible) and have a plan through work, but we are charged the full price. We have a "bank" of subsidies we can use, but we can clearly see the full price of the plan. Our High Deductible plan has a $2800 family deductible, an out of pocket max of $8,000 ...
by Wagnerjb
Fri Jan 13, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Integrating American Opportunity Tax Credit and 529 Withdrawals
Replies: 16
Views: 710

Re: Integrating American Opportunity Tax Credit and 529 Withdrawals

Mike: like you, I went through having a child in college...along with an overfunded 529 account and the desire to capture the AOT credit. Here is what I did. I used $4,000 of non-529 funds to pay for the first $4,000 of tuition and then used the 529 account for the remainder of the qualifying colleg...
by Wagnerjb
Mon Jan 09, 2017 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: kiddie tax
Replies: 15
Views: 1359

Re: kiddie tax

I read publication 17 form the IRS. I found that I will have to file the gains on my own tax return rather than it be filed on my parents tax return. Where did you see that? I am not sure that is correct. Cap Gains (not distributions) must go on the childs return; interest and dividend income less ...
by Wagnerjb
Mon Jan 09, 2017 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: kiddie tax
Replies: 15
Views: 1359

Re: kiddie tax

northtexan wrote:
I read publication 17 form the IRS.
I found that I will have to file the gains on my own tax return rather than it be filed on my parents tax return.


Where did you see that? I am not sure that is correct.
by Wagnerjb
Mon Jan 09, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable company choice to allow TLH?
Replies: 43
Views: 2005

Re: Taxable company choice to allow TLH?

The S&P 500 mutual funds and ETFs are not 100% identical, that is true. Preferred stocks and common stocks are not identical either, yet can be considered substantially identical. The Tax Courts have also ruled that two different Treasury bill were considered to be "substantially identical...
by Wagnerjb
Mon Jan 09, 2017 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable company choice to allow TLH?
Replies: 43
Views: 2005

Re: Taxable company choice to allow TLH?

I certainly think people care where a fund is managed. Don't you? If you told people the choice was between Schwab, Vanguard, T Rowe Price, Blackrock and Fidelity, most people wouldn't care. People sure seem to. If you don't, then that's fine. I am not a normal investor and I don't think most peopl...
by Wagnerjb
Sun Jan 08, 2017 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable company choice to allow TLH?
Replies: 43
Views: 2005

Re: Taxable company choice to allow TLH?

Earl Lemongrab wrote:I certainly think people care where a fund is managed. Don't you?


If you told people the choice was between Schwab, Vanguard, T Rowe Price, Blackrock and Fidelity, most people wouldn't care.
by Wagnerjb
Sun Jan 08, 2017 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Better to teach kids about investing with ETFs or individual stocks?
Replies: 19
Views: 954

Re: Better to teach kids about investing with ETFs or individual stocks?

Dandy - I think it's still valuable to understand stocks and the concepts of a capital market first, before doing mutual funds. I don't know I'd have my kid buy stocks, but maybe setup some type of fake portfolio, and track it for 6 months? I like this idea, because I also believe it is important f...
by Wagnerjb
Sun Jan 08, 2017 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable company choice to allow TLH?
Replies: 43
Views: 2005

Re: Taxable company choice to allow TLH?

If their names were masked, would we consider these investment products to be substantially identical? Have you provided all information about the funds? The IRS publications say all factors must be considered. That, to me, includes managing company, lending revenue, other specific features. So, no...
by Wagnerjb
Sun Jan 08, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Disadvantage of Tax loss harvesting
Replies: 65
Views: 3555

Re: Disadvantage of Tax loss harvesting

Furthermore, those replacement shares with large percentage gains can have those gains tax-free in a few ways: 1. Donate to charity. 2. Die and they get a stepped up basis. 3. Gift to children who are in the 0% capital gains bracket. I have done a considerable amount of #1 and #3, but I haven't don...
by Wagnerjb
Sun Jan 08, 2017 11:19 am
Forum: Investing - Help with Personal Investments
Topic: individual diversified stock fund ~ 90/10 cash
Replies: 61
Views: 4631

Re: individual stocks index fund ~ 90/10 allocation

I fully acknowledge the S&P500 index and funds which track those indices can be front-run. That much is straightforward. It is much less clear how a total stock market index can be front-run -- can you please explain? I see that the Vanguard fund tracks the CRSP U.S. Total Market Index which co...
by Wagnerjb
Sat Jan 07, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: individual diversified stock fund ~ 90/10 cash
Replies: 61
Views: 4631

Re: individual stocks index fund ~ 90/10 allocation

I'm aware of securities lending and the possibility of extra incurred risk. I do trust Vanguard management to make appropriate decisions here which do not meaningfully affect the risk of the fund. Maybe reasonable people can differ. There is extra incurred risk, period . People are not going to pro...

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