Search found 19002 matches

by grabiner
Sun Feb 26, 2017 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs student loans
Replies: 32
Views: 1100

Re: Mortgage vs student loans

I'm about to finish residency and will increase my salary to around 200k/year. I'm buying a house (320k total with 20% down). I'm trying to decide what type of mortgage to take based on paying back student loans during the same time frame. I'm not sure how long I will be in the house but could see ...
by grabiner
Sun Feb 26, 2017 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on how much insurance to have, with little kids
Replies: 5
Views: 546

Re: Thoughts on how much insurance to have, with little kids

You have to compare the costs for your specific high-deductible plan; the way different plans are subsidized by the employer sometimes makes high-deductible plans unusually good. Compare the day-one cost for both plans: the day-one cost for the high-deductible plan is the premium, minus any employer...
by grabiner
Sun Feb 26, 2017 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Can somebody please explain brokerage accounts at Vanguard?
Replies: 23
Views: 2350

Re: Can somebody please explain brokerage accounts at Vanguard?

I guess it's the ETF that drives me crazy. I bought VSS because the ER was so much cheaper. But I need to be buying in late morning when I'm at work. That's kind of funny because I chose to use VFSVX (the mutual fund of VSS) instead of VSS for some accounts even though we own thousands of shares of...
by grabiner
Sun Feb 26, 2017 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Splice investing
Replies: 5
Views: 356

Re: Splice investing

It doesn't matter much in the long run what your first $5000 is invested in, as long as it gets invested; what your portfolio is invested in when you have added more money and it is $50K or $500K makes much more of a difference. Therefore, it makes sense to add one fund at a time. In an IRA, you can...
by grabiner
Sun Feb 26, 2017 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Consideration of Job Income Exposure in Portfolio Diversification
Replies: 6
Views: 277

Re: Consideration of Job Income Exposure in Portfolio Diversification

It makes more sense to diversify the industry risk of your company, rather than the market segment. If oil prices rise, oil companies will do well, and oil consumers such as transportation and shipping companies will do poorly. Therefore, if you work for an oil company, it may make sense to underwei...
by grabiner
Sun Feb 26, 2017 10:35 am
Forum: Personal Finance (Not Investing)
Topic: VG form: Assets by state
Replies: 5
Views: 452

Re: VG form: Assets by state

I don't think AZ has an intangibles tax, but the way to check would be with your state tax bureau (and city/county tax bureau, if appropriate).
by grabiner
Sun Feb 26, 2017 10:20 am
Forum: Personal Finance (Not Investing)
Topic: How long to keep paper investment statements
Replies: 13
Views: 1079

Re: How long to keep paper investment statements

For a Roth IRA, you need to keep records of the amount you contributed until you turn 59-1/2, so that you can withdraw contributions and conversions tax-free.
by grabiner
Sun Feb 26, 2017 10:13 am
Forum: Investing - Theory, News & General
Topic: Technical Analysis
Replies: 36
Views: 1414

Re: Technical Analysis

The problem with technical analysis is that people are very good at spotting patterns when there are none. Burton Malkiel did an experiment in which he flipped a coin to determine whether a fictitious stock price went up or down. One of his charts showed a classic technical analysis pattern indicati...
by grabiner
Sun Feb 26, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Selling ETF's in most tax-advantaged way...
Replies: 6
Views: 386

Re: Selling ETF's in most tax-advantaged way...

Whether to sell for short-term or long-term gain depends on the tax rate, but also on the amount of the gain. Years ago, I needed to sell $5000 from a mutual fund. I had recently purchased a lot for $5000 which was worth $5032, while the highest-basis equal number of long-term shares had a basis of ...
by grabiner
Sun Feb 26, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Is this a wash sale?
Replies: 6
Views: 383

Re: Is this a wash sale?

Your broker is correct. You may see the light if you read the docs over at fairmark on wash sales. (I believe there are links to them from the BH wiki page on wash sales.) If you want to think it through on your own, consider this thought experiment: what would be the tax consequences if it were a ...
by grabiner
Sun Feb 26, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: The Cost of Holding Cash
Replies: 11
Views: 2604

Re: The Cost of Holding Cash

The computations here are correct. Holding cash rather than stocks gives you a much lower expected return, but also much less risk, so it isn't a fair comparison. Holding cash rather than bonds gives you a slightly lower expected return, without much change in your risk. The worst case for cash vers...
by grabiner
Sun Feb 26, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Pension at the PBGC - when to begin taking
Replies: 18
Views: 1224

Re: Pension at the PBGC - when to begin taking

Another advantage of waiting is that your pension is taxable income (or mostly taxable income, if you made your own contributions to the pension plan). If you take your pension while still working, you will be in a higher tax bracket, and won't get to keep as much of the pension. This principle also...
by grabiner
Sun Feb 26, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone had problems gifting Vanguard shares to an organization?
Replies: 19
Views: 910

Re: Has anyone had problems gifting Vanguard shares to an organization?

I donated some non-covered shares of an ETF to a charity, using specific identification to select the two lowest-basis lots. Vanguard's Cost Basis page shows the shares being withdrawn from the oldest lot, which is not one of the lots I selected. I sent a secure Email to Vanguard, and was told that ...
by grabiner
Sun Feb 26, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell Individual shares of Stock
Replies: 3
Views: 375

Re: Should I sell Individual shares of Stock

Currently, qualified dividends and capital gains have the same tax treatment so there's no reason to favor using dividends over taking capital gains on appreciated securities. It's actually better to take capital gains, because you pay tax on the whole amount of a dividend, but you pay capital-gain...
by grabiner
Sun Feb 26, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: distribution yield versus dividend yield
Replies: 2
Views: 341

Re: distribution yield versus dividend yield

The distribution yield is backward-looking, while the SEC yield is based on current yields. For a stock fund, there shouldn't be much of a difference; the SEC yield is likely to be close to the next year's distribution. For a bond fund, the distribution yield is still backward-looking and the SEC yi...
by grabiner
Sun Feb 26, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: MyRA for Vacation Savings - Rollover Issue?
Replies: 12
Views: 747

Re: MyRA for Vacation Savings - Rollover Issue?

Not sure if this impacts your plan, but according to Myra.gov, you can't withdraw earnings for five years after the first contribution. The web site does say that you can roll your account over to your own Roth IRA at any time, but the way it's words, it's not clear whether you can do a partial rol...
by grabiner
Sun Feb 26, 2017 9:22 am
Forum: Investing - Help with Personal Investments
Topic: House as Temporary Pseudo-Proxy for Bonds
Replies: 37
Views: 1452

Re: House as Temporary Pseudo-Proxy for Bonds

A house is more like an annuity than a bond. Every year you own the house, it pays you one year's rent, minus taxes and insurance, compared to what you would have if you rented the same house. An annuity can affect your asset allocation by changing your risk tolerance. If you want $80K per year to r...
by grabiner
Sat Feb 25, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to report 1099B cost basis discrepancy on non-covered shares?
Replies: 22
Views: 1256

Re: How to report 1099B cost basis discrepancy on non-covered shares?

Here's the IRS instruction from the [url=https://www.irs.gov/pub/irs-pdf/i8949.pdf]Form 8949 instructions{/url}: "If you received a Form 1099-B (or substitute statement) and the basis shown in box 1e is incorrect... THEN enter code B in column (f)... AND if this transaction is reported on a Par...
by grabiner
Sat Feb 25, 2017 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: HSA vs PPO - Sanity Check
Replies: 12
Views: 1245

Re: HSA vs PPO - Sanity Check

EDIT: I was reading another thread https://www.bogleheads.org/forum/viewtopic.php?t=100972 about HSA's in California and came across this statement: "You can invest your HSA in Treasury bonds or TIPS, so that gains on the HSA will not be taxable in California either. (And TIPS are a particular...
by grabiner
Fri Feb 24, 2017 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Early Soc Sec or spend down investments/assets?
Replies: 28
Views: 2470

Re: Early Soc Sec or spend down investments/assets?

Portfolio is $2.6M. Primarily, Total Bond, Total stock. Also, some individual equities handed down, with a low cost basis so have not sold them -- yet. Of the $2.6M, $1.8M is in tax deferred accounts (primarily tIRA, 401k; tiny Roth). Dunno the spend -- don't hate on me - but I guess I had better q...
by grabiner
Fri Feb 24, 2017 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099B - when is it safe to import for taxes?
Replies: 9
Views: 498

Re: Vanguard 1099B - when is it safe to import for taxes?

I know 1099Bs can change after reporting. My question is when is it safe to download/import them and file taxes? Now? Late March? You can check the 1099-B against your own records. If you sold shares, you know what you paid for them, and it should match the 1099-B. The adjustments you might not kno...
by grabiner
Fri Feb 24, 2017 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP (High Deductible Health Plan) via ACA for self-employed, HNW?
Replies: 3
Views: 265

Re: HDHP (High Deductible Health Plan) via ACA for self-employed, HNW?

You need to work out the math; compute the cost under various situations. Start with the day-one cost, what you pay (minus the tax deductions) if you never see the doctor for anything except a free annual physical; compare this cost for the HDHP and conventional plans. Then see what would happen if ...
by grabiner
Fri Feb 24, 2017 8:33 pm
Forum: Investing - Theory, News & General
Topic: "The Impending Fiduciary Armageddon Of (Most) Mutual Fund Share Classes" by Michael Kitces
Replies: 8
Views: 1658

Re: "The Impending Fiduciary Armageddon Of (Most) Mutual Fund Share Classes" by Michael Kitces

At the risk of pointing out the obvious: it doesn't affect no-load funds in general, and Vanguard funds in particular. I did get one insight. Before reading the article, I never could quite figure out why the investment industry was so up in arms about the fiduciary rule: But in a fiduciary world, ...
by grabiner
Fri Feb 24, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to report 1099B cost basis discrepancy on non-covered shares?
Replies: 22
Views: 1256

Re: How to report 1099B cost basis discrepancy on non-covered shares?

Purchase date: 10/4/11 (Admiral conversion date) The purchase date is not the Admiral conversion date, but the date you purchased the lot; the share class conversion was a non-taxable event which converted X Investor shares to Y Admiral shares. ETF share conversions would work similarly. When I sel...
by grabiner
Fri Feb 24, 2017 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099B - when is it safe to import for taxes?
Replies: 9
Views: 498

Re: Vanguard 1099B - when is it safe to import for taxes?

Answer: March 3. Of course, there could be further revisions. :annoyed Source: https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary/article/IWE_News2017TCUpdates That is an unrelated issue: Estimated supplemental fund distributions These Vanguard funds earned taxable income and/o...
by grabiner
Fri Feb 24, 2017 8:04 pm
Forum: Investing - Theory, News & General
Topic: VTIAX now has 0.11% ER [Vanguard Total Int'l Stock, Admiral Class]
Replies: 43
Views: 4413

Re: VTIAX now has 0.11% ER [Vanguard Total Int'l Stock, Admiral Class]

This ends the expense advantage from splitting international into separate funds, which existed for a long time. With Developed Markets at 0.09%, and Emerging Markets at 0.15%, a portfolio containing both would have about the same 0.11% expense ratio as Total International. (It wouldn't be the same...
by grabiner
Fri Feb 24, 2017 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help with HSA Investment Selection
Replies: 8
Views: 628

Re: Help with HSA Investment Selection

The two lowest-cost options are probably funds you don't want to hold: Fidelity Money Market and Columbia Small-Cap Growth. (However, you could hold Columbia Small-Cap Growth, and offset it with value funds in your other accounts.) If you don't want either of these, the next lowest-cost options are ...
by grabiner
Fri Feb 24, 2017 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Invest or pay off mortgage?
Replies: 9
Views: 935

Re: Invest or pay off mortgage?

Welcome to the forum! Plain and simple... does it make sense to pay off my mortgage or invest? mortgage rate 3.1% 30 year fixed If you are deducting this interest in a 25% or higher bracket, it doesn't make financial sense to pay it down. See Paying down loans versus investing on the wiki. The reaso...
by grabiner
Fri Feb 24, 2017 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: No Tax sheltering for NJ public employees!
Replies: 6
Views: 708

Re: No Tax sheltering for NJ public employees!

But yes, generally speaking only 401(k) plans can offer a NJ tax deferral. 403(b) and 457(b) plans do not. Even traditional IRA contributions are not eligible for NJ tax deferral. Certainly if you are thinking of using an IRA, the Roth makes more sense. IRAs and 403(b) are eligible for tax deferral...
by grabiner
Fri Feb 24, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: HSA vs PPO - Sanity Check
Replies: 12
Views: 1245

Re: HSA vs PPO - Sanity Check

I would still appreciate anyones input on which fund would be best to hold in the HSA. Any advise? Suggestions? Since you live in CA, which taxes the HSA as an ordinary account, Vanguard Inflation-Protected Securities is the best choice. TIPS are exempt from state tax. If TIPS don't fit your invest...
by grabiner
Thu Feb 23, 2017 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Tax filing for a recent college grad
Replies: 15
Views: 832

Re: Tax filing for a recent college grad

Hmmm, teaching in a middle school. All she needs to know is "irs.gov" and read Publication 17. And http://www.state.nj.us/treasury/taxation/ for the state taxes; this will explain why her NJ state wages are higher than her federal wages. (NJ doesn't allow a state tax deduction for contrib...
by grabiner
Thu Feb 23, 2017 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Another Use Bonus to Invest or Pay Off Debt Question
Replies: 14
Views: 888

Re: Another Use Bonus to Invest or Pay Off Debt Question

Since your loans are all at low rates, it's best to max out the Roth IRAs. This gives you a permanent benefit, as money in the Roth IRAs can grow tax-deferred. And since you have cash flow issues, I wouldn't recommend paying down any loan except the car. Paying off the car loan won't hurt your cash ...
by grabiner
Thu Feb 23, 2017 9:09 pm
Forum: Investing - Theory, News & General
Topic: VTIAX now has 0.11% ER [Vanguard Total Int'l Stock, Admiral Class]
Replies: 43
Views: 4413

Re: VTIAX now has 0.11% ER [Vanguard Total Int'l Stock, Admiral Class]

This ends the expense advantage from splitting international into separate funds, which existed for a long time. With Developed Markets at 0.09%, and Emerging Markets at 0.15%, a portfolio containing both would have about the same 0.11% expense ratio as Total International. (It wouldn't be the same ...
by grabiner
Thu Feb 23, 2017 9:02 pm
Forum: Investing - Theory, News & General
Topic: How to Rebalance with Rate Hikes Looming
Replies: 39
Views: 7460

Re: How to Rebalance with Rate Hikes Looming

My dilemma is that the Fed is telegraphing as many as three rate hikes this year. Bond traders already know this, and they trade bonds at prices which reflect expected rate increases. For example, Short-Term Bond Index is yielding 1.63%, and Intermediate-Term Bond Index is yielding 2.76%. Bond trad...
by grabiner
Thu Feb 23, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Sell or Hold Old Investments that Don't Fit My Current Allocation?
Replies: 5
Views: 379

Re: Sell or Hold Old Investments that Don't Fit My Current Allocation?

If you have an old holding with a capital gain, you can use it to make large contributions to charity, rather than giving cash; this will get rid of the holding without a capital-gains tax.
by grabiner
Thu Feb 23, 2017 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: Early Soc Sec or spend down investments/assets?
Replies: 28
Views: 2470

Re: Early Soc Sec or spend down investments/assets?

Age ~64. (Wife is 2 years younger.) This is another reason to delay SS, if you have earned more than your wife. Since your wife is younger and women live longer than men on average, it is likely that she will outlive you. If you delay SS, you get a higher benefit for the rest of your life, and she ...
by grabiner
Thu Feb 23, 2017 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Early Soc Sec or spend down investments/assets?
Replies: 28
Views: 2470

Re: Early Soc Sec or spend down investments/assets?

All I want to add is you have to understand that SS income is highly tax advantaged over other income like tax deferred account withdrawals. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=177441#p2686058 Usually it's a no-brainer to delay like livesoft said. JW Delaying is likely to make ...
by grabiner
Thu Feb 23, 2017 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: What fund to use in Roth IRA as part of an emergency fund?
Replies: 10
Views: 699

Re: What fund to use in Roth IRA as part of an emergency fund?

I have a follow-up question on this. So based on the feedback I got, I moved funds from my taxable brokerage account to fully fund my Roth for 2016 and 2017, but in the wiki article linked about using a Roth IRA as (part of) an emergency fund , it says in regards to a case study: If she is maximizi...
by grabiner
Wed Feb 22, 2017 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block free file error for DC capital gains across multiple states?
Replies: 1
Views: 190

Re: H&R Block free file error for DC capital gains across multiple states?

This is probably a bug, but it could also be the way the DC tax code is written; it could say that your DC income in any category can be no greater than your federal income. (Thus, for example, if you had a $2000 VA capital loss, and a $2000 DC capital gain, you would owe no DC tax on capital gains....
by grabiner
Wed Feb 22, 2017 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Another IRS Form 1116 (Foreign Tax Credit) Question
Replies: 6
Views: 481

Re: Another IRS Form 1116 (Foreign Tax Credit) Question

Hi livesoft, Thank you for your reply. I removed the entry for the HSA contribution on Line 3b. This increased my FTC by $81. I think that for that amount of money, I'll leave the HSA contribution deduction on LIne 3b and pay the additional $81 in taxes. Hmmm. I didn't expect a change at all. Line ...
by grabiner
Wed Feb 22, 2017 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investment advice and tax question
Replies: 4
Views: 643

Re: HSA investment advice and tax question

1) Since NJ does not recognize HSA, will the income I report on the NJ state tax form be different than the one I report for NY/federal? Essentially, should the income on the NJ form disregard my contributions to the HSA, while income on the NY/Federal forms are after accounting for contributions t...
by grabiner
Wed Feb 22, 2017 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation across TSP, and HSA and Roth IRA with TD Ameritrade
Replies: 40
Views: 2803

Re: Asset Allocation across TSP, and HSA and Roth IRA with TD Ameritrade

1) What should be my rule of thumb for rebalancing the TSP? I know it is recommended to fuss with it as little as necessary; but with contributions going into my TSP, HSA and Roth biweekly, I am concerned that it will need more-regular handling to keep overall proportions on-target. Make your autom...
by grabiner
Wed Feb 22, 2017 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Funding priority question
Replies: 1
Views: 206

Re: Funding priority question

I was initially going to just fund a non-deductible tIRA. Because I have a SEP I won't be able to do a backdoor Roth with this. But, according to this link a taxable account takes precedence over a non-deductible account. I'm curious as to why this is? Isn't tax sheltered better than taxable? If yo...
by grabiner
Wed Feb 22, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: ACL overfunding for loans.
Replies: 2
Views: 150

Re: ACL overfunding for loans.

Welcome to the forum! A cash-value insurance policy is a bad investment, because you are paying for things you don't need, and the investment options tend to be poor. The term "mutual fund" is ambiguous. There are high-risk and low-risk mutual funds; you can decide how much risk you want t...
by grabiner
Wed Feb 22, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put bonds with only a Taxable Account & IRAs?
Replies: 9
Views: 849

Re: Where to put bonds with only a Taxable Account & IRAs?

1. Is taking a cap gains tax hit worth it just to get an asset allocation in order in my taxable account? No. At current yields, it's close whether to use munis in taxable or taxable bonds in IRAs, unless you are in a very high tax bracket. Thus, whichever way you have things now, it's not worth pa...
by grabiner
Wed Feb 22, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Desired AA: Added Value of Across vs. Within
Replies: 4
Views: 224

Re: Desired AA: Added Value of Across vs. Within

Given your providers, the advantage of treating everything as a single allocation is that you can put all your bonds in the G fund. The G fund is a much better bond fund than anything you can get at retail, as it has no risk; other bond funds with similar yields, such as your Intermediate-Term Tax-E...
by grabiner
Tue Feb 21, 2017 9:38 pm
Forum: Investing - Theory, News & General
Topic: Bull/Sell your stock before dividend date or after dividend date?
Replies: 9
Views: 1109

Re: Bull/Sell your stock before dividend date or after dividend date?

Assuming stock doesn't really change in price between the two days... This is your root error. The price most definitely changes the day of the dividend. It changes because the value of a stock is based on expectations of future earnings. Suppose that a stock will pay a $1 dividend to shareholders ...
by grabiner
Mon Feb 20, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Investing or Private Student Loans ($300K+ total student loans; $53K of which are private)
Replies: 7
Views: 549

Re: TSP Investing or Private Student Loans ($300K+ total student loans; $53K of which are private)

- I hope that they will make a similar offer to settle just like last year. I am trying to settle the loan before they garnish. I don't have discretionary income to cover that default private loan. I just want to make it go away as fast as possible. You do have discretionary income; you are making ...
by grabiner
Mon Feb 20, 2017 10:15 am
Forum: Investing - Theory, News & General
Topic: Tax Implications of Drawdown from Different Account Types
Replies: 13
Views: 701

Re: Tax Implications of Drawdown from Different Account Types

Married Filing Jointly or Qualifying Widow(er) Taxable Income Tax Rate $0—$18,550 10% $18,551—$75,300 $1,855 plus 15% of the amount over $18,550 $75,301—$151,900 $10,367.50 plus 25% of the amount over $75,300 $151,901—$231,450 $29,517.50 plus 28% of the amount over $151,900 3 more rows I'm not anyw...
by grabiner
Mon Feb 20, 2017 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Advantage of buying IRA bonds on secondary market vs new issue?
Replies: 4
Views: 203

Re: Advantage of buying IRA bonds on secondary market vs new issue?

Thanks for the reply. Yes, I was looking at either TIPS or other treasury bond. I understand that you are saying that an older 30 year bond issued 20 years ago will pay out a higher dividend than a new 10 year issue now. At the end of 10 years, they will both have given you the same yield. So the h...

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