Search found 18653 matches

by grabiner
Tue Jan 17, 2017 1:00 am
Forum: Investing - Help with Personal Investments
Topic: Maxed accounts... what do I do in taxable?
Replies: 12
Views: 2110

Re: Maxed accounts... what do I do in taxable?

However, I would recommend maxing out tax-deferred accounts, because that has a long-term benefit. Yes, you'll pay more interest on the car loan while you contribute to your tax-deferred accounts. However, the car loan will be gone eventually, and because you maxed out your tax-deferred accounts, y...
by grabiner
Mon Jan 16, 2017 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: Maxed accounts... what do I do in taxable?
Replies: 12
Views: 2110

Re: Maxed accounts... what do I do in taxable?

I really don't get the " So, nothing with a high enough rate that I would use cash for instead of investing " argument (and I never will). Debt is debt, that money has better uses * right now * than lining a fat-cat bankers pocket monthly. "Debt is debt" is only partly correct. ...
by grabiner
Mon Jan 16, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage as a negative Bond
Replies: 44
Views: 6014

Re: Mortgage as a negative Bond

Considering that, under this situation, I am over 100% invested in stocks which, in one year, could go down by huge amount, I have a mortgage and I have lost my job, I would need to have such a huge amount in my emergency fund (paying virtually no interest) to get me out of this mess that it would ...
by grabiner
Mon Jan 16, 2017 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Disheartening to hear this about Vanguard
Replies: 27
Views: 4163

Re: Disheartening to hear this about Vanguard

I have had problems with getting the correct cost basis & capital gains on sale of my Taxable accounts. Vanguard just write's various & just follow average cost basis (easier for them) & I have been with Vanguard for 20+ years. So, just imagine how skewed & incorrect an average cost...
by grabiner
Mon Jan 16, 2017 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: When to annuitize?
Replies: 10
Views: 893

Re: When to annuitize?

The increased payment for waiting a month is actuarially fair. That is, TIAA-CREF expects to pay out the same amount; the larger payment will be made for a lifespan expected to be almost a month shorter. There is likely a tax reason for waiting. If you take the annuity now, you will receive more ann...
by grabiner
Mon Jan 16, 2017 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: How should I Invest my inheritance?
Replies: 7
Views: 992

Re: How should I Invest my inheritance?

Welcome to the forum! The wiki has some information: Managing a windfall The best thing to do is to leave the money in a bank account until you have learned the best place to put it. A bank account may not be perfect, but it can't be seriously wrong; it won't lose money you can't afford to lose, or ...
by grabiner
Mon Jan 16, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Friend is accidentally in Roth phase-out
Replies: 10
Views: 1300

Re: Friend is accidentally in Roth phase-out

On the other hand, perhaps Vanguard will impose its 30 day frequent trading rule in this scenario. That is, if you contribute to Fund A in your Roth IRA, then recharacterize amounts back to your trad IRA, they might not allow you to convert from trad IRA back to Fund A in the Roth. If so, you might...
by grabiner
Mon Jan 16, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Should I pay off my mortgage?
Replies: 15
Views: 1044

Re: Should I pay off my mortgage?

Bogleheads, what's the conventional wisdom on this question? See Paying down loans versus investing for a general discussion. As explained in an earlier post, I am 43 years old, looking to create maximum financial freedom / flexibility for myself as I contemplate a major career shift and/or lay the...
by grabiner
Mon Jan 16, 2017 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage as a negative Bond
Replies: 44
Views: 6014

Re: Mortgage as a negative Bond

Thanks for your reply. Would you suggest then that an asset allocation of over 100% in stocks is advisable then? Forgive me for being a pessimist, but if I lost my job and the stock market took a tumble, would I not have been better off with less debt? After all, margin call or no margin call, the ...
by grabiner
Mon Jan 16, 2017 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard TIPS fund duration
Replies: 6
Views: 357

Re: Vanguard TIPS fund duration

The duration is real, but durations of different types of bonds are not comparable. The TIPS fund probably has risk closer to that of an intermediate-term fund than that of a long-term fund. The duration of a bond is the percentage by which a bond's price will decline if the yield on that bond rises...
by grabiner
Mon Jan 16, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Location at the 15% tax bracket?
Replies: 13
Views: 1212

Re: Asset Location at the 15% tax bracket?

You might just use CDs in a taxable account knowing the tax is 15% of 3% or 0.45% overall. and use the Roth for small-cap value. This might especially be true if your Small-cap value is expected to return 0.45% - 0.09% = 0.36% more annually than 3%. I expect that SCV will do better on average than ...
by grabiner
Mon Jan 16, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 69
Views: 5705

Re: Why nobody understands importance of high-deductible insurance?

<snip> To put it another way, if you assume the risk itself, there is a real cost of unpredictability that needs to get added in when you balance it against the cost of the insurance. One way this could come into play is this: if you decide to carry a $1,000 deductible on your collision insurance, ...
by grabiner
Mon Jan 16, 2017 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage as a negative Bond
Replies: 44
Views: 6014

Re: Mortgage as a negative Bond

Sorry if I'm being really stupid here, but assuming a mortgage to a negative figure in bond allocation, does this not mean that until the mortgage is completely paid off (i.e. a positive figure in the bond allocation), you would not invest anything in stocks either, from a mathematic perspective? N...
by grabiner
Mon Jan 16, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 69
Views: 5705

Re: Why nobody understands importance of high-deductible insurance?

That is good to know. Although this may be the way it is supposed to work, however, unless a claim is filed (for under the deductible) I would wonder how well the insurance company pricing is really applied by the provider. By definition, if a provider has a contract with the insurance carrier, the...
by grabiner
Mon Jan 16, 2017 11:17 am
Forum: Personal Finance (Not Investing)
Topic: 2016 W2 shows state wages for states I neither worked nor lived in
Replies: 11
Views: 993

Re: 2016 W2 shows state wages for states I neither worked nor lived in

Thanks, Grabiner. In 2016 I was self employed, and did many days of work (at my home office and in other locations). I know that working from home for your employer doesn't count in the denominator of the calculation for pro ration, but I was hoping that my self employment days worked, hopefully al...
by grabiner
Mon Jan 16, 2017 10:57 am
Forum: Personal Finance (Not Investing)
Topic: 2016 W2 shows state wages for states I neither worked nor lived in
Replies: 11
Views: 993

Re: 2016 W2 shows state wages for states I neither worked nor lived in

Thanks for all the comments. I will see if I can get a revised W-2 to at least eliminate the New Jersey wages. As I recall the New York non-resident forms have an adjustment for days worked in New York State vs out of state, so that might help me. This applies only for work performed partly inside ...
by grabiner
Mon Jan 16, 2017 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 69
Views: 5705

Re: Why nobody understands importance of high-deductible insurance?

I have never had a high deductible policy. One question or concern I would have is getting the almost always much lower charges negotiated by insurance companies compared with "cash" prices. If you have health insurance, you get the benefit of the lower charges regardless of whether you a...
by grabiner
Sun Jan 15, 2017 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payment: mechanism, etc.
Replies: 7
Views: 609

Re: Estimated tax payment: mechanism, etc.

I was surprised to hear no receipt or otherwise any means to confirm IRS has got my estimated payments? I admit a bit nervous about this, given that up to 40% of total income will go to estimated payment (Fed/State combined) :( This is correct; save your canceled check (or check image if your bank ...
by grabiner
Sun Jan 15, 2017 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Correcting mistake of VWENX in taxable acct
Replies: 20
Views: 1037

Re: Correcting mistake of VWENX in taxable acct

I am not clear on why Wellington in taxable is inefficient. Since you don't have Roth IRA's, there really isn't a huge disadvantage to keeping it in taxable, in my opinion. Vanguard provides the performance of this fund on its website in a tax-advantaged account and in a highly-taxed taxable accoun...
by grabiner
Sun Jan 15, 2017 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 W2 shows state wages for states I neither worked nor lived in
Replies: 11
Views: 993

Re: 2016 W2 shows state wages for states I neither worked nor lived in

Background: Up until October 2015 I was a full time employee, working in New York and living in New Jersey. Since that time I have been a resident of California and not an employee. I just got my 2016 W-2 from my former employer. It shows in boxes 15-16 both the states of New York and New Jersey an...
by grabiner
Sun Jan 15, 2017 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage
Replies: 14
Views: 1455

Re: Paying off mortgage

I know investing 18k could and most likely would yield more money than what I get from tax deductions. But after 17 years it would be awesome to be "done". Not without risk. You might get more by investing $18K in stock than by paying off your mortgage; you might also get more by moving $...
by grabiner
Sun Jan 15, 2017 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 69
Views: 5705

Re: Why nobody understands importance of high-deductible insurance?

I was always under the impression that whether I purchase a high-deductible plan or a low-deductible plan, if I use my insurance I will break even on the costs (the premium + the deductible and copays). I thought that was the job of insurance actuaries to calculate. For auto insurance, you will com...
by grabiner
Sun Jan 15, 2017 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Location at the 15% tax bracket?
Replies: 13
Views: 1212

Re: Asset Location at the 15% tax bracket?

In the 15% tax bracket, stock index funds have near-zero tax cost, as qualified dividends are not taxed, and there will be no tax on the capital gain when you sell the funds unless the gain pushes you into a higher tax bracket or causes you to hit a phase-out. Since they gain almost nothing from bei...
by grabiner
Sun Jan 15, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: HSA trade
Replies: 3
Views: 319

Re: HSA trade

The only tax implications might be at the state tax level. Some states like California treat HSAs as regular taxable brokerage accounts. The three states which do not recognize HSAs are AL, CA, and NJ. None of these states taxes Treasuries (such as TIPS); NJ doesn't tax capital gains on Treasury fu...
by grabiner
Sun Jan 15, 2017 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help me decide if I should Invest or Payoff Loans?
Replies: 12
Views: 986

Re: Help me decide if I should Invest or Payoff Loans?

2) Paying off Auto Loan - It seems like most people are saying to pay off this loan as well. Using the refinance money to pay off the auto loan would save me $300 a month, which could then be directed towards automatic monthly contributions into my Roth IRA. However, if I do this, aren't I really j...
by grabiner
Sun Jan 15, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Correcting mistake of VWENX in taxable acct
Replies: 20
Views: 1037

Re: Correcting mistake of VWENX in taxable acct

OP, what's your current cost basis for your Wellington shares? Also, did someone once do an analysis that showed that after a certain number of years, it was better to sell an active fund, pay capital gains now, and invest the proceeds into an index fund that didn't have to distribute capital gains...
by grabiner
Sun Jan 15, 2017 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Where is the best place to keep a 529, and a new member question.
Replies: 11
Views: 479

Re: Where is the best place to keep a 529, and a new member question.

Generally the state you live in is best but that depends on where you think the kid(s) will be going to college. The state where you live only has an advantage in those states which allow a deduction; many states don't Otherwise, choose based on the investment options. But it doesn't matter where t...
by grabiner
Sun Jan 15, 2017 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: NJ sales tax reduced from 7% to 6.875%; NJ estate tax exclusion amount increased to $2 million
Replies: 29
Views: 2457

Re: NJ sales tax reduced from 7% to 6.875%; NJ estate tax exclusion amount increased to $2 million

ByThePond, that is true for calculating one's income tax liability, but I believe for the 'retirement income exclusion' the relevant number is one's 'Total Income', which I take to be a gross number pre-deductions. This is correct. From the NJ-1040 instructions: You qualify for the New Jersey pensi...
by grabiner
Sun Jan 15, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Pre-pay mortgage vs Taxable?
Replies: 54
Views: 3371

Re: Pre-pay mortgage vs Taxable?

Here's a twist How about us Californian coastal folk? Scenario: Retirement Horizon: 20 years Total equities+investments = 4M -- 50/50 equities/real estate House is valued at 1.4M - 500,000 Mortgage @ 4% 30yr Taxable equities reserved to cover mortgage 500,000 -- total market was up 12% - lifetime 6...
by grabiner
Sun Jan 15, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payment: mechanism, etc.
Replies: 7
Views: 609

Re: Estimated tax payment: mechanism, etc.

Any thoughts about IRS direct pay? For the past 2 yrs, rather than mailing in check w/ 1040ES, I've been paying online. The only identifier is my SSN & their confirmation of transaction. This year, when I realized a rather large CapGain in 3rd Qtr, I increased my payment to cover that. It has m...
by grabiner
Sat Jan 14, 2017 5:45 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 126
Views: 6150

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

One thing I don't see discussed on here is length of time the money will be invested. I am quite young (31) and have a substantial amount of income that puts me in the top or close to the top tax bracket. However, I put all of my savings into ROTH IRAs... including the standard maximum contribution...
by grabiner
Sat Jan 14, 2017 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan [vs. investing]
Replies: 41
Views: 1855

Re: Auto Loan [vs. investing]

The main problem with theses sort of questions is the comparison is between borrowing say $30k at 2% versus keeping the money invested at say 8%. If buying a depreciating asset is going to cause a significant impact on your investments, it's too much car. Not necessarily. Any money not spent will b...
by grabiner
Sat Jan 14, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: Opinions on this new fund: suitability for EM small and value
Replies: 17
Views: 1954

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

I checked ETF.com on EYLD, and I don't think this fund is ready for prime time. The average daily volume is $25,560. It trades at a 1% spread, and with such low volume, you'll probably have to pay that spread when you buy and sell, trading with market makers. This makes trading very expensive, and t...
by grabiner
Sat Jan 14, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payment: mechanism, etc.
Replies: 7
Views: 609

Re: Estimated tax payment: mechanism, etc.

Estimated taxes have to cover the tax due on your 1040 (and equivalent state form). If you are self-employed and pay SS and Medicare via Schedule SE on your Form 1040, your estimated tax and withholding need to cover enough of those to avoid a penalty. You won't get a receipt; save the cancelled che...
by grabiner
Sat Jan 14, 2017 12:23 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 126
Views: 6150

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

Who would have more income as a retiree than when they're working? What matters isn't your income, but your marginal tax rate. The Roth is better if your marginal tax rate will be higher in retirement than it is now. If you retire and are in the upper part of the phase-in of Social Security taxatio...
by grabiner
Sat Jan 14, 2017 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Value of Traditional to Roth Conversion
Replies: 6
Views: 636

Re: Value of Traditional to Roth Conversion

The issue is that I have liquidate the tIRA account which has done really well in the past several years. The question is -> Should I liquidate all my positions and roll them into 401K OR forget about the $11K/yearly that I can invest and grow tax free. The question really is - should I just leave ...
by grabiner
Sat Jan 14, 2017 11:51 am
Forum: Investing - Help with Personal Investments
Topic: High-fee 403(b) or Roth IRA?
Replies: 3
Views: 155

Re: High-fee 403(b) or Roth IRA?

The best option in a TIAA-CREF 403(b) is likely to be the TIAA Traditional Annuity. It currently earns a fixed rate of 4.00% (Retirement Annuity, can only be withdrawn over a nine-year period) or 3.25% (Supplemental Retirement Annuity, can be withdrawn at any time), which is better than you can do o...
by grabiner
Sat Jan 14, 2017 11:26 am
Forum: Investing - Theory, News & General
Topic: An annoyance for backdoor Roths with new Vanguard brokerage
Replies: 6
Views: 1140

Re: An annoyance for backdoor Roths with new Vanguard brokerage

And another piece of the annoyance. I hold only mutual funds in my Roth IRA brokerage account. But because I made the transfer through a money-market account, I had to buy with the balance currently in the money-market account, which was $5500.42 (including the 42 cents which transferred over from t...
by grabiner
Fri Jan 13, 2017 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Yield vs Expense Ratio
Replies: 13
Views: 889

Re: Yield vs Expense Ratio

SEC Yield + ER = the yield SHOULD be getting. And this gross yield says something about the nature of the fund;s holdings. If Fund A holds bonds with a 3% yield, and Fund B holds bonds with a 2% yield, this doesn't make Fund A better or worse; it means that investors believe the bonds in Fund A hav...
by grabiner
Fri Jan 13, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: Sell stock to pay debt?
Replies: 23
Views: 1008

Re: Sell stock to pay debt?

2 separate loans -- $5000 @ 6.5% -- $6000 @ 5.5% Those are worth paying off. Effectively, you are buying risk-free investments earning 5.5% and 6.5%, so it is worth doing that rather than keeping money in risky investments. In addition, you have a lot of money in one stock, which is an unnecessary ...
by grabiner
Fri Jan 13, 2017 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: On Options position
Replies: 2
Views: 156

Re: On Options position

Welcome to the forum! The option which you bought is out of the money; the right to sell stock at $2.50 isn't worth anything unless the stock goes below $2.50. You can sell the option for its current value, or hold it until it expires (or possibly becomes worth something). Holding it until it expire...
by grabiner
Fri Jan 13, 2017 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: What to do when an IRA is no longer tax-deferred? (RMDs!)
Replies: 18
Views: 1932

Re: What to do when an IRA is no longer tax-deferred? (RMDs!)

It is desirable for your taxable account to be in stock index funds, particularly if you don't expect to spend most of it. If you don't spend your stock fund, and leave it to your heirs, there will be no capital-gains tax; your heirs will inherit the stock with the basis on your date of death. Thus ...
by grabiner
Fri Jan 13, 2017 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Sell loaded funds or wait 1 year?
Replies: 3
Views: 199

Re: Sell loaded funds or wait 1 year?

Sell the funds. You have already lost the load; it just hasn't been deducted from your reported balance. If you wait until the load goes away, you lose an equal amount to expenses; your C shares have a 1% 12b(1) fee.
by grabiner
Fri Jan 13, 2017 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Quandry: Rebalance or Avoid Taxes
Replies: 4
Views: 367

Re: Quandry: Rebalance or Avoid Taxes

The reason to rebalance is to get the portfolio to an appropriate risk level. If your portfolio is too risky, them you need to sell to get to the proper level. Therefore, you should sell some type of stock, but only down to the tolerance level; it's OK to be off by 5% in your overall stock allocatio...
by grabiner
Fri Jan 13, 2017 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: 100% Stock or Bust?
Replies: 17
Views: 1799

Re: 100% Stock or Bust?

If you can handle the risk, I think it is OK to go 100% stock at your age. But you have to ask yourself, are you OK if the market goes down 50% or more? Can you stick with your plan? The rational thing to do is go 100% stocks. At least based on history, barring a complete collapse of the world econ...
by grabiner
Fri Jan 13, 2017 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Best use of HSA funds
Replies: 19
Views: 2500

Re: Best use of HSA funds

I was unaware that the money I put in HSA can only be used for medical expenses .I have invested the HSA contribution in stocks with favorable returns. I am a small business owner with my husband as a partner and we usually contribute the maximum to the solo 401 k .In addition we contribute to the ...
by grabiner
Fri Jan 13, 2017 12:14 am
Forum: Personal Finance (Not Investing)
Topic: NJ sales tax reduced from 7% to 6.875%; NJ estate tax exclusion amount increased to $2 million
Replies: 29
Views: 2457

Re: NJ sales tax reduced from 7% to 6.875%; NJ estate tax exclusion amount increased to $2 million

Perhaps more importantly, the NJ 'retirement income exclusion' has quintupled - see the attached article http://www.forbes.com/sites/ashleaebeling/2016/10/13/new-jersey-retirement-income-break-to-quintuple/#59214aa86fc7 Thanks for the heads-up; I updated the NJ information on the wiki for State inc...
by grabiner
Thu Jan 12, 2017 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Opened Dependent HSA by accident
Replies: 2
Views: 184

Re: Opened Dependent HSA by accident

Welcome to the forum! Do you mean a Dependent Care FSA (Flexible Spending Account)? I have never heard of a Dependent HSA (Health Savings Account). If that is what she did, FSA elections cannot normally be changed unless you have a qualifying event (for example, losing or gaining a dependent, or a s...
by grabiner
Thu Jan 12, 2017 11:47 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan [vs. investing]
Replies: 41
Views: 1855

Re: Auto Loan [vs. investing]

I would pay cash, unless there is some substantial cost to getting the cash (capital gain on selling stock, losing the employer match on your 401(k)). Paying off the loan (or not taking it out) is a risk-free, tax-free return of 2.19%, and CD's don't return that much after tax. In addition, if you p...
by grabiner
Thu Jan 12, 2017 11:37 pm
Forum: Investing - Theory, News & General
Topic: What time of day do you buy/sell International ETFs?
Replies: 16
Views: 1711

Re: What time of day do you buy/sell International ETFs?

I can't trade from work, so I usually do my trades near the market open for convenience, then come to work late. I don't trade low-volume ETFs (such as VSS) at the market open because the opening spread tends to be too large. (I won't take chances on the opening cross when there may not be one; a lo...

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