Search found 17609 matches

by grabiner
Tue Aug 23, 2016 8:53 pm
Forum: Investing - Theory, News & General
Topic: VG Prime MM Act vs. Quicken
Replies: 6
Views: 510

Re: VG Prime MM Act vs. Quicken

I just treat my money-market account as cash in my brokerage for Quicken purposes. I don't download transactions, because I use Quicken for verification of manual entries. If Vanguard or my bank processes something wrong, Quicken will show the discrepancy. This has never happened with Vanguard, but ...
by grabiner
Tue Aug 23, 2016 8:45 pm
Forum: Investing - Theory, News & General
Topic: past performance not an indicator...
Replies: 3
Views: 444

Re: past performance not an indicator...

So I just spent my Sunday afternoon reviewing various Vanguard funds as part of my research to determine an appropriate portfolio. I felt quite pleased with myself after I found the prospectus for the funds and recorded the "returns after taxes on distributions and sale of fund shares" th...
by grabiner
Tue Aug 23, 2016 8:28 pm
Forum: Investing - Theory, News & General
Topic: comparing taxable and tax-deferred compensation
Replies: 4
Views: 412

Re: comparing taxable and tax-deferred compensation

The match and salary can be made equivalent. If Job A pays $50K with a 3% match in the 401(k), and Job B pays $51.5K with no match, you can get the same taxable salary and 401(k) with Job B by contributing $1500 more to the 401(k). Thus Job A's match is equivalent to a 3% higher salary. Job A is sli...
by grabiner
Tue Aug 23, 2016 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: VC Fund - Long Term Cap Gain - Avoiding Large Cap Gain
Replies: 10
Views: 529

Re: VC Fund - Long Term Cap Gain - Avoiding Large Cap Gain

I suppose the risk of holding an individual security is outweighed by the reward of holding it until death at which point successors would be entitled to a stepped up cost basis? This depends both on the tax cost of holding (if it pays large or non-qualified dividends), and on how large it is relat...
by grabiner
Tue Aug 23, 2016 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall Investing Help
Replies: 7
Views: 939

Re: Windfall Investing Help

Hi Everyone, Following this board for a bit and now have a situation I need help with. I'm an employed professional, recently part of a business sale that resulted in $1.9M sale proceeds (pre-tax). Proceeds will mostly be taxed at LT capital gains rate of 20%. Small amount may be at ordinary income...
by grabiner
Tue Aug 23, 2016 12:21 am
Forum: Personal Finance (Not Investing)
Topic: What's worth more?
Replies: 28
Views: 2385

Re: What's worth more?

However, there is a behavioral/emotional piece to investing. I suspect that many would prefer the peace-of-mind of guaranteed income over a large sum at hand. Then again, I think others would favor the lump sum over the income stream. Perhaps I should have structured the question as a poll. And in ...
by grabiner
Mon Aug 22, 2016 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Real-life, real-time wash sale & TLH documented
Replies: 122
Views: 11638

Re: Real-life, real-time wash sale & TLH documented

Welcome to the forum! Does tax-harvesting work if you purchased the “losing” security in a previous year? For instance, if I purchase a single stock in my taxable portfolio in August 2015, then sell it in March 2016 at a loss, can this loss be harvested by buying a similar security in 2016? – Do you...
by grabiner
Mon Aug 22, 2016 10:51 pm
Forum: Local Chapters and Bogleheads Community
Topic: New Jersey chapter needs new coordinator
Replies: 18
Views: 4630

Re: New Jersey chapter needs new coordinator

dgoldstein wrote:Did the NJ chapter ever get back together?

'
We need a volunteer to run the chapter, and some interested members. The mailing list still exists but has no activity and nobody has volunteered either here or there to take over the chapter.
by grabiner
Sun Aug 21, 2016 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: Ways to minimize tax due to company being acquired.
Replies: 6
Views: 538

Re: Ways to minimize tax due to company being acquired.

Do you have anything in your taxable that you can sell for a loss? Yes, I do have stocks with small loses which I plan to sell by the end of the year. I've also just learned that for high income, you can't fully deduct itemized deductions and wonder whether it would be a good idea to pay all proper...
by grabiner
Sun Aug 21, 2016 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Get a mortgage even if not needed?
Replies: 41
Views: 3353

Re: Get a mortgage even if not needed?

I'm getting closer to buying my first house with cash but I wonder if it would be advantageous to finance part of the purchase even though I could afford to pay in cash. I don't have any debt. Is cash always the best way to pay if possible? The key questions here: 1. How much it would cost to get t...
by grabiner
Sun Aug 21, 2016 10:46 pm
Forum: Personal Consumer Issues
Topic: Favorite Restaurant Stop on Road Trips
Replies: 107
Views: 6122

Re: Favorite Restaurant Stop on Road Trips

Another Cracker Barrel customer here; I'm surprised at the consensus on this one chain. I have also learned to like the deli at Wegmans; there's a large selection, which is good for a group, although the exact items vary. But the ideal is to know the places for a specific route, particularly for som...
by grabiner
Sun Aug 21, 2016 10:27 pm
Forum: Investing - Theory, News & General
Topic: Opinions on this new fund: suitability for EM small and value
Replies: 6
Views: 394

Re: Opinions on this new fund: suitability for EM small and value

If you wamt EM Small+Value for the factor exposure go with EWX (SPDR S&P Emerging Markets Small Cap). The Morningstar box for value from small to large is: 27-26-1. Compare this to EYLD 16-25-23 and EEMS 20-27-1. EWX has been tax-inefficient, so I would avoid it in a taxable account. I would al...
by grabiner
Sun Aug 21, 2016 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Debt Free - Now What
Replies: 37
Views: 3317

Re: Debt Free - Now What

The Fed seems unwilling to raise interest rates even though the banks will soon suffocate due to net interest margins (NIMs) if they do not raise them. I realize we live in a BANKS ARE TOO BIG TO FAIL country, so I have to imagine interest rates will slowly begin to rise in early 2018 despite the f...
by grabiner
Sun Aug 21, 2016 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Disclosure: My Colorado muni bond fund: WTCOX.
Replies: 2
Views: 291

Re: Disclosure: My Colorado muni bond fund: WTCOX.

After-tax income analysis. I used excel1040.com to simulate my fed tax return. My CO tax return is simple to implement in Excel---a flat tax system with a few deductions and additions applied to fed taxable income. --Duplicated my last fed/state tax returns to create known baselines---proof that Ex...
by grabiner
Sun Aug 21, 2016 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: 72 with a risky portfolio - looking for advice
Replies: 10
Views: 983

Re: 72 with a risky portfolio - looking for advice

It's also very important to keep in mind that the actual distributions that are paid out are based on both the SEC yield and the NAV. The NAV being your principal in this equation. If the NAV of the fund goes down, the distribution goes down, even if the yield remains the same. And if you spend all...
by grabiner
Sun Aug 21, 2016 9:18 pm
Forum: Forum Issues and Administration
Topic: Improving the Bogleheads forum
Replies: 86
Views: 5842

Re: Improving the Bogleheads forum

I would like a feature to either bookmark, notify, or subscribe to a post (which presumably becomes a thread) AUTOMATICALLY based on OP. While you can't do it automatically, you can create a bookmarked search. Click on the wheel next to the search bar to go to the advanced search; you can then sear...
by grabiner
Sat Aug 20, 2016 11:10 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 7943

Re: Bonds in Taxable

Kitces, in one of his previous article mentions this "As the results reveal, even just a modest amount of portfolio turnover like 10% - amounting to recognizing gains no more than once a decade – has a dramatic effect on the value of tax deferral, chopping it by a whopping 68%. With just 10% t...
by grabiner
Sat Aug 20, 2016 11:06 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 7943

Re: Bonds in Taxable

I know I am just being a nuisance, but I have to say, to me this just seems to add the tax drag over the years to the final 15% capital gains upon withdrawal and giving a final amount of 19.56%. I fail to see its importance, as we already know there is a tax drag. What does knowing it's an addition...
by grabiner
Sat Aug 20, 2016 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Borrowing money to invest. Good idea?
Replies: 68
Views: 4199

Re: Borrowing money to invest. Good idea?

Are people thinking this is a bad idea because of the 4% and 10 yr timeframe? What if it was closer to 3% and 30 years? I'm somewhat doing this as well and thought it was a great idea! As has come up a few times on this thread, your strategy makes sense, because you can earn about the same on your ...
by grabiner
Sat Aug 20, 2016 10:19 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 7943

Re: Bonds in Taxable

One additional side point, 30 years is more than most of our investing lifetimes. If we started retirement investing at 35 and died at 95 we would hold our investments for an average of 30 years if we never rebalanced or otherwise jiggled our portfolio. The timespan should be the time from current ...
by grabiner
Sat Aug 20, 2016 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Tilter's
Replies: 18
Views: 1145

Re: Tilter's

:oops: David, thanks--this left handed dyslectic apologizes for you have to fix my mistakes, but thankful that you do. :beer will fix my original reply and also one in triceratops cost analysis thread. edit for mistake--and i will go back and check inputs the 3rd time. An important mathematical tec...
by grabiner
Sat Aug 20, 2016 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Tilter's
Replies: 18
Views: 1145

Re: Tilter's

The following is a sample of my cost analysis using ticeratop's method(25% tax bracket 0 state tax) Ticker---------------------------------- VXUS--- IEMG --- FPMAX--- VWO--- scz--- VSS Expense Ratio-------------------------- 0.13--- 0.16 --- 0.14----- 0.15--- 0.4--- 0.17 Dividend Distribution/share...
by grabiner
Sat Aug 20, 2016 8:22 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 7943

Re: Bonds in Taxable

I know I am just being a nuisance, but I have to say, to me this just seems to add the tax drag over the years to the final 15% capital gains upon withdrawal and giving a final amount of 19.56%. I fail to see its importance, as we already know there is a tax drag. What does knowing it's an addition...
by grabiner
Fri Aug 19, 2016 11:00 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 7943

Re: Bonds in Taxable

Over a long time period, the compounding of dividend taxes makes the tax cost over 20%, which means that taxable and tax-deferred stocks lose about the same fraction of gains to taxes. I finally decided to try and work this out for myself. David, please tell me if I'm on the right track if you can ...
by grabiner
Fri Aug 19, 2016 10:26 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 7943

Re: Bonds in Taxable

gilgamesh: Assuming we're talking about capital gain/loss, which is the main risky component of return, and assuming a 15% capital gain tax rate, the government shares 15% of your gain or loss in a taxable account, so it is symmetrical. Start with $100 and assume 10% pre-tax gain of $10. Government...
by grabiner
Fri Aug 19, 2016 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Are my broker commissions "alright"?
Replies: 8
Views: 976

Re: Are my broker commissions "alright"?

Vision wrote:Minimum Per Order $2.99
Fixed $0.0125 per share


How does this fit with your trading strategy? If you buy 100-500 shares at a time, and don't trade super-often, commissions of $2.99-6.25 cost you very little. If you buy 10 shares of an ETF every month, you'll probably want to change your strategy.
by grabiner
Fri Aug 19, 2016 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Borrowing money to invest. Good idea?
Replies: 68
Views: 4199

Re: Borrowing money to invest. Good idea?

Do you actually need to take this risk, or will disciplined investing on a cash basis be sufficient to accomplish your goals? You should ask this before making any investment decision. Also, I think it's important to point out that anyone who invests and holds a mortgage is invoking a form of this ...
by grabiner
Thu Aug 18, 2016 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: Efficient way to build credit
Replies: 21
Views: 830

Re: Efficient way to build credit

I can tell you this, paying off your credit card bill in full does nothing for your score. This is an issue I've tried to figure out for 5 years now, I don't have a FICO score because there's not enough history and I have no debt. The reason paying your bill in full doesn't help is that the score i...
by grabiner
Thu Aug 18, 2016 10:56 pm
Forum: Investing - Help with Personal Investments
Topic: Borrowing money to invest. Good idea?
Replies: 68
Views: 4199

Re: Borrowing money to invest. Good idea?

Well, this thread has me wondering about my mortgage and car payment. We have ~$110,000 left on our mortgage, but we are maxing out our tax-advantaged and putting additional money into taxable accounts. Mortgage at 3.375%, $18k on car at 2.75%. Should I be paying off my mortgage instead? We are 30,...
by grabiner
Thu Aug 18, 2016 10:19 am
Forum: Personal Finance (Not Investing)
Topic: [Credit Score] Should I be opening up more credit card accounts?
Replies: 8
Views: 491

Re: [Credit Score] Should I be opening up more credit card accounts?

Credit Karma's credit factors are oversimplified. The factors which influence your score cannot be reduced to a single number. For example, the number of accounts affects your score, but so does whether they are open or closed, and what types of accounts. If you need to improve your score, pay for a...
by grabiner
Thu Aug 18, 2016 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Efficient way to build credit
Replies: 21
Views: 830

Re: Efficient way to build credit

Remember that your score only matters when you apply for credit. Your wife will have a poor score in September if she charges the full limit on a card in August and pays it off in full by the September due date. But that won't hurt her if she applies for credit in November when her October balance w...
by grabiner
Thu Aug 18, 2016 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Pension and taxes...
Replies: 8
Views: 986

Re: Pension and taxes...

If you made your own contributions to the pension, that money has already been taxed, and will not be taxed again when you withdraw it (whether you take it out now, or roll it to an IRA and take it out later); you'll need to keep records to avoid double taxation.
by grabiner
Thu Aug 18, 2016 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Please help me choose a non-municipal bond fund for my taxable account
Replies: 26
Views: 1248

Re: Please help me choose a non-municipal bond fund for my taxable account

I-Bonds are the best non-muni bonds for taxable accounts, because the tax is deferred until you cash them in. After that, Treasuries or TIPS are OK in taxable accounts, particularly if you pay state tax. The interest is exempt from state tax, and because these bonds have such low risk, they have low...
by grabiner
Thu Aug 18, 2016 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Selling a mutual fund to buy another - taxes?
Replies: 11
Views: 812

Re: Selling a mutual fund to buy another - taxes?

If you have a fund you don't like, it's probably worth paying the taxes to switch. The cost of staying with the fund (for example, in higher expenses, or taxes generated by the fund) may be more than the tax you will pay to switch. But you should also check what the tax bill will be. If you reinvest...
by grabiner
Thu Aug 18, 2016 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Tilter's
Replies: 18
Views: 1145

Re: Tilter's

Your Roth IRA should hold the least tax-efficient positions in your portfolio. It's fine to split a holding between the IRA and taxable if you run out of room. I would suggest keeping VWO (Emerging Markets) entirely in the IRA if you have room. It has a fairly high dividend yield, and fewer qualifie...
by grabiner
Wed Aug 17, 2016 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Borrowing money to invest. Good idea?
Replies: 68
Views: 4199

Re: Borrowing money to invest. Good idea?

[ ... ] Why? Is having bought a house with a mortgage then buying stocks with your pay just as bad an idea? Earl This is an alternate way of asking the commonly asked question "I have some cash, should I pay my house off early, or invest the money". When we ask it that way, which is commo...
by grabiner
Wed Aug 17, 2016 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: IRA or Roth IRA?
Replies: 16
Views: 1102

Re: IRA or Roth IRA?

I apologize but I am confused with the 457(b) taxes. Since it is taken out pre-tax don't you always have to pay taxes on both the initial investment and the gains it earned. And they are taxed at your income tax rate in the year you withdraw it. NJ does not allow deductions for 457(b) contributions...
by grabiner
Wed Aug 17, 2016 10:32 am
Forum: Personal Finance (Not Investing)
Topic: selling index funds in taxable for downpayment
Replies: 3
Views: 416

Re: selling index funds in taxable for downpayment

You should sell everything with losses, whether you need the money or not; this is tax loss harvesting, which lowers your taxes. For the fund with gains, sell as much as you need, and sell the highest-basis shares to minimize the gain. (Since you have capital losses to offset your gains, short versu...
by grabiner
Wed Aug 17, 2016 8:25 am
Forum: Investing - Help with Personal Investments
Topic: IRA or Roth IRA?
Replies: 16
Views: 1102

Re: IRA or Roth IRA?

I have no retirement plans set up. As a city employee you are probably eligible for a 457b plan (like a 401k). Check with your HR department. And note that contributions to the 457(b) are not deductible from NJ state tax; only 401(k) contributions are deductible. (The 457(b) may still be worth inve...
by grabiner
Wed Aug 17, 2016 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Pay mortgage vs money in taxable VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares)
Replies: 5
Views: 821

Re: Pay mortgage vs money in taxable VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares)

See Paying down loans versus investing on the wiki. The second question is determined by bond returns. Given your $700K mortgage, I would assume you are in a high tax bracket, and thus you might well earn more on municipal bonds than by paying down the mortgage. (If your mortgage is 30 years, it ha...
by grabiner
Tue Aug 16, 2016 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Dividends on FSTVX
Replies: 3
Views: 457

Re: Dividends on FSTVX

The number you want is the SEC yield; I couldn't easily find it on Fidelity's web site. Morningstar is a good source for comparing mutual funds; it does report an SEC yield. For a stock fund, the SEC yield is the best estimate of future dividends, as it is the current yield of the fund's current hol...
by grabiner
Tue Aug 16, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Best 529 for Massachusetts resident?
Replies: 32
Views: 1868

Re: Best 529 for Massachusetts resident?

I currently have the NH plan. Should I rollover my plan into the MA one, or just keep it as-is? Is there any benefit other than consolidation? There is only about $5000 in the NH 529 account. Since the NH plan has high expenses, you should probably move the money somewhere else. It doesn't have to ...
by grabiner
Tue Aug 16, 2016 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Need Help Deciding Which Debt to Make a $17,000 Payment
Replies: 22
Views: 1095

Re: Need Help Deciding Which Debt to Make a $17,000 Payment

I will check into refinancing my student loans, but no matter what I'm putting all of my extra cash toward paying down the student loans after I remove PMI. When I refinance the amortization schedule starts over and I will end up paying a lot of interest up front. Also, I plan on paying off my stud...
by grabiner
Tue Aug 16, 2016 8:28 am
Forum: Forum Issues and Administration
Topic: Improving the Bogleheads forum
Replies: 86
Views: 5842

Re: Posts that most users cannot see?

BTW, the "stickies" are not visible at all to most users of bogleheads.org, so a sticky admonishment would not be an improvement. :confused Are you saying most users cannot see posts such as "Policies and Etiquette", and "Asking Portfolio Questions"? No, but they can't...
by grabiner
Mon Aug 15, 2016 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Need Help Deciding Which Debt to Make a $17,000 Payment
Replies: 22
Views: 1095

Re: Need Help Deciding Which Debt to Make a $17,000 Payment

Welcome to the forum! In addition to the benefit of lower mortgage payments, eliminating $5950 of PMI is an almost-immediate 35% return. You'll have $5950 more to pay against the student loans (probably) over the next two years, so you'll get a 7% return on that part of the payment for a long time, ...
by grabiner
Mon Aug 15, 2016 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off car or invest in taxable?
Replies: 7
Views: 816

Re: Pay off car or invest in taxable?

Pay off the car. You are earning 2.29% tax-free on what is effectively a portfolio of 48 CD's maturing in 1-48 months. That is a much better risk-free return than you can get elsewhere. If you invest the money in stocks, you might earn more with more risk, but you can get the same risk with higher r...
by grabiner
Mon Aug 15, 2016 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Pay mortgage vs money in taxable VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares)
Replies: 5
Views: 821

Re: Pay mortgage vs money in taxable VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares)

See Paying down loans versus investing on the wiki. Basically, you should make two decisions: Should you have $100K more in stock? Once you decide how much stock you want, should you pay down the morgtage? The second question is determined by bond returns. Given your $700K mortgage, I would assume y...
by grabiner
Mon Aug 15, 2016 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Comparison between various small cap value funds
Replies: 8
Views: 608

Re: Comparison between various small cap value funds

I searched on the forum, and it seems there are various threads which have compared the funds. But I dont see any long term comparison of the different funds in terms of Return% or ER. Comparing past returns isn't particularly useful. How well index funds do depends on expenses, of course, and also...
by grabiner
Mon Aug 15, 2016 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice re:debt vs savings
Replies: 15
Views: 1172

Re: Need advice re:debt vs savings

1. I think I would need to pay down the mortgage to $1M, then take out a HELOC (at a higher rate) for $100k. That may not be as beneficial. $1.1M is OK. You can count debt taken on to buy, build, or improve your home as home-equity debt instead of mortgage debt if it doesn't qualify as mortgage deb...
by grabiner
Sun Aug 14, 2016 8:41 pm
Forum: Investing - Theory, News & General
Topic: When Do ETFs Distribute Capital Gains?
Replies: 5
Views: 590

Re: When Do ETFs Distribute Capital Gains?

New ETFs often distribute capital gains, because they will not have bought stocks at a wide range of prices and thus have less in gains to eliminate through redemption. If the market rises after an ETF gets started, it will have gains on all its stocks, and will distribute gains if it has to sell. T...

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