Search found 31 matches

by bob_m10
Sat Mar 25, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

Re: How do Taxes work with Mutual funds.

sport wrote:Dividends from bond interest is not qualified.

So that means they will be taxed at the marginal rate and thus less tax efficient to a stock fund which has the potential of qualified funds? Do I have that correct? thanks
by bob_m10
Sat Mar 25, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

Re: How do Taxes work with Mutual funds.

I think that capital gains can also be reported on 1099-DIV - and someone please correct me if I'm wrong :shock: In my Vanguard taxable account, my form 1099-DIV (Dividends and Distributions) includes ordinary dividends (box 1a), qualified dividends (box 1b), and capital gain distributions (box 2a)...
by bob_m10
Sat Mar 25, 2017 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park excess cash
Replies: 7
Views: 562

Re: Where to park excess cash

Open a Vanguard Brokerage account, put some in Prime Money Market, set up a Settlement fund (Federal MM) and consider Brokered CDs. Link to bank or credit union account(s). Then, when you are ready for some Mutual Funds - you are all set. this always confused me, why does VG use the Federal MM as t...
by bob_m10
Sat Mar 25, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

Re: How do Taxes work with Mutual funds.

I think that capital gains can also be reported on 1099-DIV - and someone please correct me if I'm wrong :shock: In my Vanguard taxable account, my form 1099-DIV (Dividends and Distributions) includes ordinary dividends (box 1a), qualified dividends (box 1b), and capital gain distributions (box 2a)...
by bob_m10
Sat Mar 25, 2017 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: So someone drained $13k from my checking account...
Replies: 92
Views: 8250

Re: So someone drained $13k from my checking account...

Great topic, I have made it a rule not to allow pulls from my online checking account. Given that, how do you folks transfer money to VG. The website is suggesting a pull from my checking account. Is that what you all do? I was hoping I could set up and automatic Bill pay (send them a check for $X e...
by bob_m10
Sat Mar 25, 2017 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

Re: How do Taxes work with Mutual funds.

I think that capital gains can also be reported on 1099-DIV - and someone please correct me if I'm wrong :shock: In my Vanguard taxable account, my form 1099-DIV (Dividends and Distributions) includes ordinary dividends (box 1a), qualified dividends (box 1b), and capital gain distributions (box 2a)...
by bob_m10
Tue Mar 21, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 1733
Views: 938450

Re: The Three-Fund Portfolio

thanks, should I give any thought to using the Vanguard Extended Market Index Fund in combination with the 500 index? Yes, you should think about it! But don't stress over it by any means. If you combine the 500 and the extended funds in a 80/20 ratio, you'll pretty much match the total US fund. Ho...
by bob_m10
Mon Mar 20, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 1733
Views: 938450

Re: The Three-Fund Portfolio

Hi, my wife is 50 and would like to use the three fund portfolio with her work 401K. She has the following available. Can she substitute the 500 index fund for the Total Stock? thanks Vanguard 500 Index Fund Total International Stock Index Fund Vanguard Total Bond Market Index Fund Other VG funds a...
by bob_m10
Mon Mar 20, 2017 10:07 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 1733
Views: 938450

Re: The Three-Fund Portfolio

Hi, my wife is 50 and would like to use the three fund portfolio with her work 401K. She has the following available. Can she substitute the 500 index fund for the Total Stock? thanks Vanguard 500 Index Fund Total International Stock Index Fund Vanguard Total Bond Market Index Fund Other VG funds av...
by bob_m10
Sat Mar 18, 2017 8:53 pm
Forum: Investing - Theory, News & General
Topic: Tax on IRA withdrawls
Replies: 3
Views: 498

Re: Tax on IRA withdrawls

Hi, If I setup and IRA and I am unable to deduct the contributions, what will taxed when withdrawals are taking in retirement? Would it be just the earnings or the entire amount that is withdrawn? If it is the entire amount, would this be a double tax on the contributions. Thanks For a traditional ...
by bob_m10
Sat Mar 18, 2017 8:41 pm
Forum: Investing - Theory, News & General
Topic: Tax on IRA withdrawls
Replies: 3
Views: 498

Tax on IRA withdrawls

Hi,

If I setup and IRA and I am unable to deduct the contributions, what will taxed when withdrawals are taking in retirement? Would it be just the earnings or the entire amount that is withdrawn? If it is the entire amount, would this be a double tax on the contributions. Thanks
by bob_m10
Sat Mar 18, 2017 8:30 pm
Forum: Investing - Theory, News & General
Topic: Schwab: Is There Ever a Bad Time to Invest?
Replies: 22
Views: 3264

Re: Schwab: Is There Ever a Bad Time to Invest?

Or if you invested at the top of the US market at the end of the 20th century, you probably wouldn't be to happy about investing in early 2009. I was just seeing this today. I was on VG's site and comparing the Wellesley fund to other funds like the index 500. If the time period is set for 10 years...
by bob_m10
Sun Mar 12, 2017 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

Re: 401K allocation

There are some (minor) problems with approximating the total stock market by using an S&P 500 index fund in combination with the Vanguard Mid Cap Index Fund and the Vanguard Small Cap Index Fund. The S&P 500 index is a part of the S&P index family, whereas the Small Cap and Mid Cap inde...
by bob_m10
Sun Mar 12, 2017 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

Re: 401K allocation

There's a mistake in option 2. The percentages should be 40, 5, 5, 50. I messed up when I was doing some editing. I'm sorry about that. I probably like option 1 better, for its simplicity. The 5% in the two funds in option 2 is not enough to move the needle very much. Ok and I like the simplicity o...
by bob_m10
Sun Mar 12, 2017 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

Re: 401K allocation

American Funds 2030 Target Date Retirement is not too bad, but most Bogleheads would not use it. They would emphasize funds with even lower costs. If you do not have access to the whole Vanguard Target Retirement Fund series, you can put most or all of your money in Vanguard Target Retirement Incom...
by bob_m10
Sun Mar 12, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

Re: 401K allocation

delamer wrote:It looks like you have about 75% of your assets in US and international stocks.

How much more conservative do you want to be? Do you want to make a big shift, like to 50/50? Or to something like 65/35?


Maybe something between 70/30 or 65/35. Just want to push it a bit more conservative.
by bob_m10
Sun Mar 12, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

Re: 401K allocation

94% American Funds 2030 Target Date Retirement R6 RFETX .41% 3% Vanguard 500 Index Adml VFIAX .05% 3% Vanguard Wellesley Income Adml VWIAX .16% According to the above, only 3% is in Wellesley, yet you qualified for Admiral shares? This fund has a $50,000 minimum investment. Simple math tells me tha...
by bob_m10
Sun Mar 12, 2017 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

Re: 401K allocation

What are the underlying investments in the 2030 Target Date fund? Index funds or managed? What are the allocations to stocks and bonds? It's actively managed and has the following: AA: Domestic Stock 46.99% Foreign Stock 23.99% Domestic Bond 18.89% Foreign Bond 3.43% Preferreds 0.28% Convertibles 0...
by bob_m10
Sun Mar 12, 2017 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 16
Views: 614

401K allocation

Hi, Married File Jointly Both 50 yrs old 98% of our retirement funds are in my 401K. I would like to make sure my fund choices are correct for my employer 401K. I have the following which has been working nicely for some time. 94% American Funds 2030 Target Date Retirement R6 RFETX .41% 3% Vanguard ...
by bob_m10
Sun Mar 12, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18269

Re: How Bad was 2008, really?

What has really happened? Is it just the share price that has dropped or do I lose shares as well? Yes, it is 'just' the share price that dropped. So yes, it is entirely recoverable if you stay the course, and fact is it did recover in the past decade. But emotionally, this is pretty hard on your n...
by bob_m10
Sun Mar 12, 2017 10:45 am
Forum: Investing - Theory, News & General
Topic: Anyone sorry they used bonds when starting out
Replies: 94
Views: 6665

Re: Anyone sorry they used bonds when starting out

My only (tiny) regrets are that I didn't switch from a target-retirement fund to a three-fund portfolio sooner, and that I was slow to learn about the role of tax-exempt bond funds in taxable for people with high marginal tax rates. Hi, Curious why you don't like the target-date funds? I like them,...
by bob_m10
Sun Mar 12, 2017 12:38 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18269

Re: How Bad was 2008, really?

Reading through this interesting thread and realize I don’t have a good understanding of how this works. Say you are 100% invested in the total Stock Market Index and to keep it simple we are not contributing anymore to this fund and this is the only fund we have. Then 2008 or any big crash comes al...
by bob_m10
Sat Mar 11, 2017 10:15 pm
Forum: Investing - Theory, News & General
Topic: Anyone sorry they used bonds when starting out
Replies: 94
Views: 6665

Re: Anyone sorry they used bonds when starting out

randomizer wrote:My only (tiny) regrets are that I didn't switch from a target-retirement fund to a three-fund portfolio sooner, and that I was slow to learn about the role of tax-exempt bond funds in taxable for people with high marginal tax rates.


Hi, Curious why you don't like the target-date funds?
by bob_m10
Wed Feb 22, 2017 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 13
Views: 704

Re: Roll-over IRA

Great advice here, thanks. I will certainly do some more reading in the wiki. One more question, when my wife purchased her shares for the target fund it went through almost immediately. How does VG do that, say you purchase 100 shares in a fund, does that mean someone had to sell 100 shares? Does ...
by bob_m10
Wed Feb 22, 2017 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 13
Views: 704

Re: Roll-over IRA

Great advice here, thanks. I will certainly do some more reading in the wiki. One more question, when my wife purchased her shares for the target fund it went through almost immediately. How does VG do that, say you purchase 100 shares in a fund, does that mean someone had to sell 100 shares? Does V...
by bob_m10
Mon Feb 20, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 13
Views: 704

Re: Roll-over IRA

My question above was more in general, does a fund need regular contributions in order for it to work. No, absolutely not. You can put a "chunk" of money into a fund, set it up to automatically reinvest the dividends and ignore it for a decade or two. There are interesting stories of acco...
by bob_m10
Mon Feb 20, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 13
Views: 704

Re: Roll-over IRA

Thanks for the information guys. We both have just about maxed our 401K's at work. Next year our mortgage will be done. At that point we could set up IRA's and max them for the year with what we normally paid to our mortgage and still have excess for the real estate taxes. Very fortunate for sure. A...
by bob_m10
Mon Feb 20, 2017 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 13
Views: 704

Roll-over IRA

Hi Married File Jointly Both 50 yrs old My wife and I setup a roll-over IRA brokerage account with VG for her previous employment. A few questions to make sure we did this correctly. 1) The rollover money was deposited into her settlement account. We then immediately bought shares in a target retire...
by bob_m10
Mon Feb 20, 2017 9:23 am
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

Re: How do Taxes work with Mutual funds.

Income from mutual funds comes either from dividends or from capital gains (or both). The rate at which they are taxed depends on your marginal tax rate and on whether they are "short term" or "long term" gains. Side note: since index funds do less trading of holdings through th...
by bob_m10
Sun Feb 19, 2017 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

Re: How do Taxes work with Mutual funds.

thank you all for the information, much clearer. -Bob
by bob_m10
Sun Feb 19, 2017 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 31
Views: 1731

How do Taxes work with Mutual funds.

Hi All, Just starting reading up on investing here on this great site and confused on tax implementations for a VG brokerage account. My experience has been with my 401K but never had to worry about income vs capital appreciation in my selected funds. Let say for example I have a taxable brokerage a...

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