Search found 6848 matches

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: 18
Views: 825

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: 1223

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: 654

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: 654

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: 54
Views: 3974

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: 1157

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: 654

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: 1326

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: 1326

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: 1899

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: 1899

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: 1899

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: 905

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: 1899

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: 3410

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: 4485

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: 4485

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...
by Wagnerjb
Sat Jan 07, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Disadvantage of Tax loss harvesting
Replies: 65
Views: 3410

Re: Disadvantage of Tax loss harvesting

Chip wrote:Yuck. Nonsense. Tax laws might change, so don't maximize TLH? No supporting data for the assertion?

I'm disappointed Vanguard allowed that to be published under its name.


I agree. The advice is horrible....to not take any TLH that might carry over to a $3,000 loss deduction in future years?
by Wagnerjb
Fri Jan 06, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: individual diversified stock fund ~ 90/10 cash
Replies: 61
Views: 4485

Re: individual stocks index fund ~ 90/10 allocation

Broad index funds have considerable trading rebalancing costs that are not shown in the ER expense ratios. How could this possibly be true if the broad index funds consistently match or exceed the benchmark index return? Mutual funds typically lend their securities and thus take additional risk and...
by Wagnerjb
Fri Jan 06, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: Are Commodities Still a Good Portfolio Diversifier?
Replies: 51
Views: 2526

Re: Are Commodities Still a Good Portfolio Diversifier?

I have struggled with the notion of commodities offering both a) equity like returns and b) low correlation to equities. When the 2005 Gorton/Rouwenhorst paper came out, I was suspicious of the conclusions. First of all, their results flew in the face of economics, suggesting that a magic asset clas...
by Wagnerjb
Thu Jan 05, 2017 11:26 am
Forum: Investing - Theory, News & General
Topic: Discussion about securities lending and how it affects performance
Replies: 21
Views: 1369

Re: Discussion about securities lending and how it affects performance

I can only think of 2 cases in the past 20 years where securities lending has been a issue. The big one was Lehman Brothers back in 2008. It was messy but everybody was made whole in the end. The other was Stockwalk.com back in 2001. Small brokerage firm went bust on a small firm. Stock manipulatio...
by Wagnerjb
Thu Jan 05, 2017 11:10 am
Forum: Investing - Theory, News & General
Topic: changes for inherited IRAs for non-spousal beneficiaries
Replies: 3
Views: 639

Re: changes for inherited IRAs for non-spousal beneficiaries

"Congress could put an end to inherited IRAs for non-spousal beneficiaries" https://www.irahelp.com/slottreport/final-obama-budget-proposal-heavy-retirement-account-changes-again Where did you find that? The article is from February 2016. Furthermore, we are not permitted to discuss pendi...
by Wagnerjb
Fri Dec 30, 2016 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Contribution Timing (potential Savers Credit issues)
Replies: 1
Views: 142

Re: IRA Contribution Timing (potential Savers Credit issues)

Yes, I have done exactly as you suggest. If you are - for example - $100 over the AGI cutoff, you can contribute $101 to a deductible IRA and the remainder of your allowed contribution can be to a Roth.

Waiting until February or March makes it so much easier. :D

Best wishes.
by Wagnerjb
Fri Dec 30, 2016 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Just learned something about "stretch IRAs" that makes me happy
Replies: 9
Views: 1344

Re: Just learned something about "stretch IRAs" that makes me happy

While I agree that it isn't all that hard to stretch distributions and take the required distribution each year, and while I would do it for a $20,000 inherited IRA, I've found that most people wouldn't bother doing this for an IRA of this size. For the IRA that my wife inherited (the value was aro...
by Wagnerjb
Fri Dec 30, 2016 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Just learned something about "stretch IRAs" that makes me happy
Replies: 9
Views: 1344

Re: Just learned something about "stretch IRAs" that makes me happy

However, perhaps it is irrational but I am now feeling quite happy because I just today discovered that a stretch IRA for non-spouse beneficiaries was not even an option until 2007. So I can completely stop kicking myself for not even considering a stretch IRA at the time--it wouldn't have been pos...
by Wagnerjb
Fri Dec 30, 2016 12:18 am
Forum: Investing - Theory, News & General
Topic: Market Timing - have any REAL patterns ever been identified?
Replies: 39
Views: 3048

Re: Market Timing - have any REAL patterns ever been identified?

livesoft wrote:If I know about it, I'm not going to tell you. :)

Me neither
by Wagnerjb
Thu Dec 29, 2016 3:13 pm
Forum: Investing - Theory, News & General
Topic: Any thoughts about Grantham research into commodities producers as increasing returns and reducing volatility?
Replies: 17
Views: 757

Re: Any thoughts about Grantham research into commodities producers as increasing returns and reducing volatility?

suggests that a substantial portion of ones portfolio invested in equities of commodities/natural resources producers can have a very significant positive impact on the returns, reduced long-term volatility The market won't let this happen. Once you have a diversified portfolio, you can add another...
by Wagnerjb
Wed Dec 28, 2016 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Savings
Replies: 29
Views: 2959

Re: Retirement Savings

... About the Boglehead lifestyle, this is a dragon I wish we would slay forever. This forum is about planning and investing and not about lifestyle. +1. We do have a lot of frugal people, but it is not a core tenet. The tab for keeping our wine cellar topped off would alone make me ineligible for ...
by Wagnerjb
Wed Dec 28, 2016 11:53 am
Forum: Investing - Theory, News & General
Topic: Picking Individual Stocks Is Dangerous
Replies: 58
Views: 5248

Re: Picking Individual Stocks Is Dangerous

An honest question for Mr. Larimore: Had Kiplinger's picks tremendously outperformed the broad market, would you have even made this post? And if so what would have been your conclusion? acanthurus: Had Kiplinger's picks outperformed, I would probably not have made the topic post. I admit to favori...
by Wagnerjb
Mon Dec 26, 2016 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: How do you plan for retirement?
Replies: 32
Views: 2854

Re: How do you plan for retirement?

I had a goal of a savings balance of 25x my annual spending
by Wagnerjb
Sun Dec 25, 2016 4:14 pm
Forum: Investing - Theory, News & General
Topic: Appreciating Bogle and Reversion to the Mean
Replies: 12
Views: 1278

Re: Appreciating Bogle and Reversion to the Mean

From the linked chart below, a dollar invested in the Vanguard 500 Index in 1991 would be worth a few cents more today than a dollar invested in Miller's fund. What is a lot more dramatic is looking at what would have happened to the many more investors who invested in Miller's fund in 2001 or 2005...
by Wagnerjb
Sat Dec 24, 2016 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: interesting WSJ article on donor advised funds
Replies: 22
Views: 2073

Re: interesting WSJ article on donor advised funds

True but there is a cost of carrying the DAF above and beyond the expense of the investment fund. Absent a compelling reason to dump an asset (e.g. an asset that no longer fits in the portfolio, e.g. individual stock) or lower tax rates in later years (creating tax rate arbitrage), a DAF may not ma...
by Wagnerjb
Sat Dec 24, 2016 12:10 pm
Forum: Investing - Theory, News & General
Topic: If day trading works, shouldn't there be successful companies with proven track record?
Replies: 20
Views: 1878

Re: If day trading works ,,shouldn't there be successful companies with proven track record?

It all sounds very convincing ,looking at a chart and thinking that anybody can do it at home. This is how the promoters make money. It is the same game every time, just with a different flavor. We all know that trading doesn't work - consistently and predictably. We have mountains of data to prove...
by Wagnerjb
Thu Dec 22, 2016 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Financing an MBA - Taking Loans vs Withdrawing from Retirement Accounts
Replies: 8
Views: 703

Re: Financing an MBA - Taking Loans vs Withdrawing from Retirement Accounts

Here's what I would do if I were you: Play with tax software to find the best way to maximize your 2-3 years of no/low income. You should focus on 2 things, selling your taxable investments with tax free capital gains and converting your existing traditional 401k/IRA balances into Roth space while ...
by Wagnerjb
Thu Dec 22, 2016 11:47 am
Forum: Personal Finance (Not Investing)
Topic: I have an inheritance...please help me plan my course of action!
Replies: 13
Views: 2082

Re: I have an inheritance...please help me plan my course of action!

I would also like to see a more complete picture before we give any definitive advice. In your other post you just mentioned that you have $10k in credit card debt and $60k in student loans. If you are 40 years old with two children and no other retirement assets, buying a $500k house seems like a f...
by Wagnerjb
Sun Dec 18, 2016 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: SVSPX, -6.83% on Friday?
Replies: 15
Views: 1867

Re: SVSPX, -6.83% on Friday?

Did you look on their website to confirm the dividend payment?
by Wagnerjb
Sun Dec 18, 2016 12:50 pm
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 4833

Re: Concept of Bogleheads needing to "Save more"

To put it simply, why does it constantly need to be said that Bogleheads "Believe in saving more, being cheap, etc etc". I believe this forum is home to many people who enjoy being thrifty. Simple as that. In addition, these people feel like others cannot be saving "an appropriate&qu...
by Wagnerjb
Fri Dec 16, 2016 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Help with investing strategy.
Replies: 19
Views: 1553

Re: Help with investing strategy.

I have been doing my own investing for a few years now with very little success. I have tried day trading and value investing and have not had much luck with either. My recommendation would be for you to hire an advisor to manage your investments. It appears that you don't have the temperament for ...
by Wagnerjb
Wed Dec 14, 2016 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Estimated DFA Year-End Distributions(?)
Replies: 3
Views: 376

Re: Estimated DFA Year-End Distributions(?)

Try the DFA document linked from this page; http://www.capgainsvalet.com/search/ It seems, though, that they want us to get this info now through our advisors and not the public web site. So your other option is to make your advisor work for their fee and get you this info. Thanks, this information...
by Wagnerjb
Tue Dec 13, 2016 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

Andy, I may have missed it, but the Arnott paper does not appear to take into account the $3,000 per year federal limit on offsetting capital losses against ordinary income. (It could be that limit did not exist at the time the paper was written.) Even if the investor was in the 39.6% marginal tax ...
by Wagnerjb
Tue Dec 13, 2016 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

Tax Loss Harvesting is almost certainly not worth 1% a year. I respectfully disagree. I read the Kitces article that you linked and it was well researched and written. Michael shows that simple tax deferral is worth 0.20% to 0.40% on an annual basis. Kitces shows that if there is 30% market drop th...
by Wagnerjb
Tue Dec 13, 2016 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

I see a lot of people assembling portfolios of odd lots of dividend-paying stocks and every time wonder why they don't just buy an index fund or even a dividend-focused fund. Some of them have 100+ stocks, are obsessed with dividends and dividend reinvestment, put a lot of effort into picking out e...
by Wagnerjb
Tue Dec 13, 2016 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

I'm not implying or recommending anything about tax loss harvesting which is where the conversation has gravitated. I'm pointing out that buying the 30 Dow stocks individually can be comparable to buying an index fund, the topic of the original post. A very real life example might help other poster...
by Wagnerjb
Mon Dec 12, 2016 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

This is active investing. You are making stock picking selection as you go. Even if you tax loss harvest a company (say Home Depot drops so you TLH and buy Lowes), you are having to make choices of when to sell individual stocks, when to buy into new stock which may be in the same sector but have c...
by Wagnerjb
Mon Dec 12, 2016 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

Anoop: this article is helpful for those with a small portfolio of individual stocks. Two important findings are: a) A portfolio of 30 stocks will have a standard deviation (volatility) of 15.4%. Owning the entire market gives you a standard deviation of 14.5%. Only owning 30 stocks will result in a...
by Wagnerjb
Mon Dec 12, 2016 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

While I held a few individual stocks in the 1980's and 1990's, I began a coherent portfolio of US Large Cap stocks around 2000. I held around 30-35 stocks. After around 10 years, I did a post-audit and determined that my returns were a whisker above the S&P500. My goal was identical to the inde...
by Wagnerjb
Mon Dec 12, 2016 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

I would be curious to see someone do this and come back and update the thread to tell us how it worked out. I predict that what starts as an "index" will give someone the excuse to turn into a little bit of active investing. If you are truly indexing (i.e. following specific rules or trac...
by Wagnerjb
Mon Dec 12, 2016 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Forever stocks (and building your own index fund)
Replies: 62
Views: 4854

Re: Forever stocks (and building your own index fund)

What I will say is by all means take advantage of tax loss harvesting in a taxable account when the opportunity presents itself. But I want to caution you that the whole point of investing, even in a taxable account, is to make money. It won't always happen of course but I invest with the attitude ...
by Wagnerjb
Mon Dec 12, 2016 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Well, just got first pair of golden handcuffs
Replies: 58
Views: 8713

Re: Well, just got first pair of golden handcuffs

Congratulations on a great job and on the RSU's. I worked in a Mega Corp and I was on both ends of the RSUs. First, as a rising employee...although I didn't receive them as often as others did. Second, as a Manager I was responsible for selecting the employees in my department to whom we gave RSUs. ...

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