Search found 260 matches

by bobsmith
Tue Oct 27, 2015 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Vanguard Fund Question
Replies: 2
Views: 268

Re: Quick Vanguard Fund Question

Great. And that's a logical way to check. Thank you.
by bobsmith
Tue Oct 27, 2015 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Vanguard Fund Question
Replies: 2
Views: 268

Quick Vanguard Fund Question

When I go to Vanguard's website and check the YTD gain, does that gain represent the actual YTD gain AFTER internal fund fees? For example, TSMI: https://personal.vanguard.com/us/funds/snapshot?FundId=0585&FundIntExt=INT#tab=3 0.05% Expense Ratio YTD (10/26/15) is 1.47% https://personal.vanguard...
by bobsmith
Sat Oct 10, 2015 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

Thanks everyone. I really appreciate the links, advice, and patience.

Have a good one!
:happy
by bobsmith
Fri Oct 09, 2015 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

Technically you could keep the fund in place and switch the cost basis method for new shares. My concern is that things can go wrong, at which point you have a mess of old and new shares. Purchasing new shares in Vanguard Total Stock Market ETF ("VTI") lets you begin a new cost basis of s...
by bobsmith
Fri Oct 09, 2015 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

For example, if at the time you change from average basis you had 456 shares that acquired an average basis of $32.10 per share, when you later specify that a sale includes those shares, those shares are treated as if their cost was $32.10 per share, not what their actual cost was. But what if a la...
by bobsmith
Fri Oct 09, 2015 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

If you have not sold shares of the fund before, then you have not chosen Average Cost in the eyes of the IRS no matter what Vanguard says you have done. So have you sold shares and used average cost on your tax return? Yes, I have sold shares and even added to them at different times and reported i...
by bobsmith
Thu Oct 08, 2015 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

Another approach might be to buy vanguard funds to recreate the TSMI (500 Index + extended market) this would be the best for the new money. switch to specific cost method when you set it up. all new money will show their specific cost basis which is what you need to calculate tax on gains or tax l...
by bobsmith
Thu Oct 08, 2015 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

I have always done average cost-basis ... Can I change the cost-basis for new money coming into the fund? This IRS notice suggests you can, for new purchases of stock: After the revocation period has expired, a taxpayer may change from the average basis method to the cost method at any time, but on...
by bobsmith
Thu Oct 08, 2015 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Re: Help with Cost Basis Rules

If you have not sold shares of the fund before, then you have not chosen Average Cost in the eyes of the IRS no matter what Vanguard says you have done. So have you sold shares and used average cost on your tax return? Yes, I have sold shares and even added to them at different times and reported i...
by bobsmith
Thu Oct 08, 2015 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 927

Help with Cost Basis Rules

I'm a little confused about the cost-basis rules. I have always done average cost-basis but I expect to inherit some money in the near future and I'm thinking I would be better off to switch methods. In a non-retirement account, I currently have Vanguards TSMI, 50% of which is unrealized gain. I'd l...
by bobsmith
Wed Sep 23, 2015 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Question about cap gains
Replies: 16
Views: 549

Re: Tax Question about cap gains

Yep. There are two phase-ins for Social Security taxability, and the presence of more income (whether or not taxable) moves you across those phase-ins. The first phases up to 50% of your SS income, the second up to 85% of your SS income. Depending where you fall, that $100 (while not taxable itself...
by bobsmith
Wed Sep 23, 2015 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question about cap gains
Replies: 16
Views: 549

Re: Tax Question about cap gains

Instead of inputting $100 of LTCG, try inputting an additional $100 of regular income. If that makes tax owed go up by way more than 15%, then she is in the Hump Zone where additional income causes more of SS to be taxed at a higher rate also... I figured it something like that, although not quite ...
by bobsmith
Wed Sep 23, 2015 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question about cap gains
Replies: 16
Views: 549

Re: Tax Question about cap gains

I think the extra $15 tax is not a tax on capital gains. I guess with TaxCaster, you cannot see any IRS forms to see where the $15 appears. livesoft, Ah, yes I think you are right. Good insight. When I enter higher values the extra tax I pay, as a percentage becomes less than 15%. Still, I'm puzzle...
by bobsmith
Wed Sep 23, 2015 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question about cap gains
Replies: 16
Views: 549

Re: Tax Question about cap gains

FYI :happy "How much of my social security benefit may be taxed?" https://www.calcxml.com/calculators/how-much-of-my-social-security-benefit-may-be-taxed When I put the same values into that calculator, trying it with and without a realized capital gain of $100, I find I'm paying about $1...
by bobsmith
Wed Sep 23, 2015 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question about cap gains
Replies: 16
Views: 549

Re: Tax Question about cap gains

Questions. Is there any basis in the pension or is all of it taxable? Does she itemize deductions or use the standard deduction? What filing status did you use -- MFJ, HOH, Single? I assumed that all of the pension was taxable, tax year 2015, standard deduction, single status and could not duplicat...
by bobsmith
Wed Sep 23, 2015 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question about cap gains
Replies: 16
Views: 549

Tax Question about cap gains

Hi, Using some data from a 2014 tax return for a family friend and plugging it into taxcaster, I find I'm confused about the capital gains tax. I think I'm missing something obvious. This woman is a widow who receives here husband's pension as well as social security. Tax Caster, 2014 https://turbot...
by bobsmith
Sun Apr 19, 2015 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Tax Deadline for converting trad IRA to Roth
Replies: 5
Views: 591

Re: Tax Deadline for converting trad IRA to Roth

Thank you for both the brief and detailed replies and explanations.

Have a good one!
by bobsmith
Thu Apr 16, 2015 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Deadline for converting trad IRA to Roth
Replies: 5
Views: 591

Tax Deadline for converting trad IRA to Roth

Quick tax question... I know you have until April 15th of the current year to make an IRA contribution and still count it for the prior tax year. When it comes to converting a traditional IRA into a Roth IRA, is the deadline the same or must the conversion be done in actual tax year for it to count ...
by bobsmith
Mon Mar 30, 2015 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

Re: IRA And 401k?

Great, thanks everyone!
by bobsmith
Mon Mar 30, 2015 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

Re: IRA And 401k?

Box 1 would only show the 401k contributions. THe SS + Medicare deductions go into their own boxes on W2. My initial answer is that your payroll company might not allow above a certain % of your pay into a 401k. Ah, thats right. Krap. My pension comes out at about 7% and that contribution is why my...
by bobsmith
Mon Mar 30, 2015 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

Re: IRA And 401k?

Oh, and another question concerning a higher income.. As I understand it, the Roth IRA contribution (2015) can be limited by income, starting to phase out after 183K (married filing jointly). Let's say I make 190K and then contribute 18K to a traditional pre-tax 401K. This brings my taxable income d...
by bobsmith
Mon Mar 30, 2015 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

Re: IRA And 401k?

EDIT: Niceguy set me straight on why ss&medicare aren't reflected in box 1... just leaving the text here to make the thread understandable and because I'm not sure how to overstrike? :) Thank for using examples to address the specific point I was making. However, as was just explained to me, I b...
by bobsmith
Mon Mar 30, 2015 11:10 am
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

Re: IRA And 401k?

If all of your earned income is from a W-2 job, then all that matters for IRA purposes is the number in Box 1 of the W-2. If it is over $6500 then you can max out an IRA (trad or Roth), or his and hers if over $6500+$5500. (Also, check whether you qualify for the Retirement Savers Credit.) Seems to...
by bobsmith
Mon Mar 30, 2015 8:01 am
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

Re: IRA And 401k?

Thanks niceguy and rkhusky. Your first assumption of 18K plus the catchup of 6k is not technically possible with your company as SS+Medicare tax is applied on your contributions too. that is 7.65% of 24k = 1836. 24K plus 1836 is more than 25K. Good to know. Other than the 7.65% for SS&Medicare, ...
by bobsmith
Mon Mar 30, 2015 6:39 am
Forum: Personal Finance (Not Investing)
Topic: IRA And 401k?
Replies: 14
Views: 938

IRA And 401k?

Say I'm 52 (over 50), and I make $25,000 gross income. It's 2015. Basically, my assumption is that my contribution is limited by the amount of pay I make over all retirement accounts, but I'm not sure. Let's assume I meet all other IRA/401k criteria and my work plan supports everything. These questi...
by bobsmith
Sun Mar 29, 2015 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Kevin,

Okay, I think I have enough to go on.

Thanks for all advice, patience, and extra explaining when I needed it!

:sharebeer
by bobsmith
Sat Mar 28, 2015 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

To my understanding Betterment will invest in vanguard funds on your behalf keeping your asset allocation and doing constant tax loss harvesting. All for a very small fee. Maybe worth looking into. This way you may never need to actually look at the accounts just let the robo advisor do it's thing ...
by bobsmith
Sat Mar 28, 2015 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

EnjoyIt wrote:I have to say Kevin M has gone far and beyond on this thread. Lots to read and learns here for anyone.

Thank you.


Agreed! Also, check out his website:
http://www.kevinoninvesting.com/
by bobsmith
Sat Mar 28, 2015 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

A lot going on here, so let's just focus on one thing at a time. Usually in order to make these kinds of decisions, my approach would be to look at historical returns instead of just the current SEC yields. Is this a flawed approach? I take a buy and hold strategy and I'm mostly oblivious to the la...
by bobsmith
Sat Mar 28, 2015 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Maybe a little simplistic, but once you get the full idea of what funds you want to buy and at what AA as well as which tax exempt bond fund, have you considered Betterment for holding his funds? They would do all the rebalancing and tax loss harvesting for him. For a fee of coarse, but once set he...
by bobsmith
Fri Mar 27, 2015 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Thank you again for you patience and continuing help. For example, when comparing Intermediate-term TE with Long term PA TE bond fund, I would save 3.06% in taxes on all gains from the LT PA fund. However, if in one year there's 1% change in interest rates, your rule of thumb say I'd lose 5.5% from ...
by bobsmith
Fri Mar 27, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I guess I'll just follow what Vanguard does. I've had international stock target at 40% of equities for several years now, so Vanguard is finally catching up with me ;-) Of course their timing probably will work out better, since international has under-performed in recent years. huh, makes me wond...
by bobsmith
Thu Mar 26, 2015 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

If I load up his 50K with TBM, what's left of the million outside the retirement accounts is more like 84/16 than 80/20. I would view retirement and taxable accounts as one portfolio if intended for the same goal (bequests, other long-term). So TBM is part of the 20%. So you put 150K of the million...
by bobsmith
Wed Mar 25, 2015 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Yeah, but the thing is retiredjg, you know almost nothing about the situation and I strongly resent you thinking that you do. I'm sorry you found my comments unhelpful. I'd be happy to delete them if you like. In my defense, your first post said "Any help is appreciated..." and your secon...
by bobsmith
Wed Mar 25, 2015 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

It's hard not to get into risk tolerance discussions when suggesting an 80/20 portfolio for someone described as "risk averse". From the description, it sounds like the friend is experiencing regret about not being in the market during the last few years of big returns. If I were helping ...
by bobsmith
Wed Mar 25, 2015 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Fund of funds

Surely I can do better than a fund of funds." I doubt if I could do better than a low-cost, diversified, easily maintained fund of funds designed by Vanguard experts. if I could start over with everything in a tax-advantaged account I would own the appropriate Vanguard target fund. Best wishes...
by bobsmith
Wed Mar 25, 2015 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I do believe you need to think of his age and perhaps yours as well. What happens if you become incapacitated? Do you expect him to give you power to control his assets? Is his family in agreement with this? This assistance is not simple even for children of 80-yr-olds, not to mention friends. What...
by bobsmith
Wed Mar 25, 2015 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I really don't know what you mean by a bad feeling or the way you bolded my name. Being a little vague and anonymous seems like a prudent approach when you are disusing personal finances on a public forum,wouldn't say so, Mr. Djg? lol Don't find offense where none exists. :happy I think bolded your...
by bobsmith
Tue Mar 24, 2015 10:26 am
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 2272

Re: VanG Intermediate Term Bond Market Question

Okay guys, I'm starting to better understand the variables here. Special thanks to asif408 for making a second attempt to essentially explain the same thing. That really helped. For the record, I was using Vanguard's website returns for admiral shares going back to 2001. I'm not sure why other have ...
by bobsmith
Tue Mar 24, 2015 9:32 am
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

It is fair to assume that the ratio is 95% taxable and 5% tax advantaged? For all intents and purposes, yes. RMDs are bringing it down but maxing out his 401K may raise it. Either way, it's a small part of the portfolio. Is it fair to assume your friend is not interested in fiddling with this money...
by bobsmith
Tue Mar 24, 2015 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

If your friend is in his late 70's, he is not eligible to contribute to tIRA any more. That ends at 70.5 if I remember correctly. I think he can contribute to the 401k if still working. And to Roth IRA if still working, but he'd have to use the back door which might not even be appropriate in his s...
by bobsmith
Tue Mar 24, 2015 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I'm stumbling on this too. Here's a person near 80 who is still working and making lots of money who has it all squirreled away in cash. But our poster is talking about an 80/20 allocation and rebalancing and tax-loss harvesting and taking losses off of taxes and all manner of other tax things that...
by bobsmith
Tue Mar 24, 2015 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: TLH


"TLH" stands for Tax-Loss Harvesting.



Okay, yes, thanks! I just wasn't getting the acronym. That sounds like what I had in mind. I'll check out bogleheads wiki for other ways to construct the TSM. What cost-basis method do you use?
by bobsmith
Tue Mar 24, 2015 6:36 am
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 2272

Re: VanG Intermediate Term Bond Market Question

Thank you. I've read all your responses more than once and I do appreciate them. The vibe I'm getting is that these funds aren't much different and I'd be fine with either. However, if these funds are so similar, then I guess I'm not understanding why the returns are so different. An average of 0.97...
by bobsmith
Mon Mar 23, 2015 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Retiredjg, My OP was so long I'm sure it was easy to miss where I mentioned it, but believe it or not, he really does have nothing invested. It's all bank accounts and money markets and a small CD that's very soon to come due. Glad we agree the 401ks are available, but not the IRAs. And, yes, he rea...
by bobsmith
Mon Mar 23, 2015 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 43
Views: 4680

Suggest a good passive allocation 4 hi-tax-bracket investor

I'm helping a friend of mine to allocate his wealth using a passive investment strategy based on Vanguard index funds. He doesn't actually have a million dollars to invest, but I'm going to use that number to make the math easy. He's in his late 70s and he lives and earns his income in Pennsylvania....
by bobsmith
Mon Mar 23, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 2272

VanG Intermediate Term Bond Market Question

I'm a passive investor investing exclusively in Vanguard mutual funds. All my bond funds are held inside retirement accounts. For the last 15 years I've represented the bond market by simply using Vanguard's Total Bond Market Fund. However, I realized I've been a bit confused about how to best diver...
by bobsmith
Sat Mar 14, 2015 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 874

Re: Tax vs. Tax-exempt bonds.Difference in returns historica

That is a hard comparison to make. You would have to find a taxable fund and a non-taxable fund with exactly the same average credit ratings and effective durations to make a valid comparison. Because of that, I have never been to keen on that rule of thumb about needing to be in the 25% or high ta...
by bobsmith
Sat Mar 14, 2015 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 874

Re: Tax vs. Tax-exempt bonds.Difference in returns historica

lack-ey, Thanks for your long response. I'm still wading through some of the links, but I'm feeling overwhelmed. <quote> A fair enough guideline is that the market is pricing them reasonably appropriately for those in the mid-high tax brackets relative to taxable bonds (in other words, advantageous ...

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