Search found 21547 matches

by grabiner
Sat May 26, 2018 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Is having insurance from 5 different companies normal?
Replies: 7
Views: 424

Re: Is having insurance from 5 different companies normal?

Your umbrella should be with the same company as your home and auto insurance. The reason is that you want everyone's interests to be aligned; if you are sued for more than your auto policy limits, you do not want two different insurers who have to negotiate a settlement.
by grabiner
Sat May 26, 2018 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 40
Views: 3513

Re: Do I pay towards my mortgage or invest?

A mortgage is a rather unique type of debt. If you didn't have a mortgage, in most circumstances you would still have to pay for rent. If you prudently purchase no more house than you need, you are NOT adding substantially to your cash flow burden and IMO taking out a mortgage is the right decision...
by grabiner
Sat May 26, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Anybody hit their rebalance bands?
Replies: 22
Views: 1874

Re: Anybody hit their rebalance bands?

[...] I rebalance annually to my target allocation, I have only hit rebalancing bands twice . In October 2008, the declining market took me from my target 90/10 to 86/14, and my band for a major asset class such as bonds is 25% of the target allocation, so I sold bonds to by some stock. In late 200...
by grabiner
Fri May 25, 2018 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 22
Views: 1237

Re: Should Tax-Free Munis Be Part of Roth IRA?

bog72upCash wrote:
Fri May 25, 2018 10:08 pm
However...since my standard deduction $12K this option is useless. The stock is valued @$6600.
If it's a stock you don't want to hold, you should probably sell it. Selling taxable stock to make a tax-free investment is a good deal, because you eliminate all future taxes.
by grabiner
Fri May 25, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need to reduce monthly debt payments? Auto + House
Replies: 9
Views: 898

Re: Do I need to reduce monthly debt payments? Auto + House

My question pertains specifically to structuring the financing for the cars - Honda is offering a 36 month auto loan @ 1.9% with no down payment for about $750/month. So 2 cars = $1500/month. If you have the money to pay cash, this isn't a particularly good deal. This loan is a negative portfolio o...
by grabiner
Fri May 25, 2018 9:16 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 48
Views: 5501

Re: Tax Reform - Revised Kiddie Tax

Do you see any issue with two unmarried parents, only one of whom will claim the child as a dependent, opening a UTMA account for the same child? Is there a reason only one parent should? I don't see any issue; this would create accounts with the two parents as custodians. (However, if they don't c...
by grabiner
Fri May 25, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 22
Views: 1237

Re: Should Tax-Free Munis Be Part of Roth IRA?

Concerning your point about the suitability of Roth, pardon my possible misreading here. You wrote that if I go all Roth, that would be better suited for a situation of a large pension or in the case of going from low tax bracket to a future higher bracket. However you then wrote the large Roth mea...
by grabiner
Fri May 25, 2018 2:38 pm
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 48
Views: 5501

Re: Tax Reform - Revised Kiddie Tax

Can two unmarried parents open UTMA accounts for one child? Would they both need to file form 8615? (even though they would need to decide which parent can claim the child as a dependent). The instructions for form 8615 state: If the parents were unmarried but lived together during the year with th...
by grabiner
Thu May 24, 2018 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2406

Re: Intermediate Term Treasury vs Tax Exempt Fund

But if you are holding money in one bond fund and intending to move it to another bond fund, that doesn't end your holding period. Thanks again David. But when you sell a bond there willbe capital gains, right. I think you are implying that theh will be minimal or actually even be losses that can b...
by grabiner
Wed May 23, 2018 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2406

Re: Intermediate Term Treasury vs Tax Exempt Fund

If what you suggest - selling it to fund 401K etc. or other taxable expenses - then Intermediate term is not good for that, right? In that case I should be investing in Short Term Treasury, isnt it? The duration of your bond investments should not be longer than your bond holding period. Thus, if y...
by grabiner
Wed May 23, 2018 7:36 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account Near Retirement
Replies: 16
Views: 1545

Re: Taxable Account Near Retirement

Question 1. How should I invest in my taxable account when I near retirement. Keeping it in stocks seems someone risky to me considering a possible crash and what not. However, I know that bonds are taxed at a certain rate. I have considered bonds that are tax advantaged, but considering my tax bra...
by grabiner
Wed May 23, 2018 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: Bond conundrum: looking for recommendations
Replies: 18
Views: 1886

Re: Bond conundrum: looking for recommendations

B) My goal is to retire around 60-62 and live off after tax accounts and defer SS until age 70. That would lead me to think that, with a longer horizon before needing to draw proceeds from tax-deferred accounts, I can better tolerate risk (equities) in my 401k/Rollover IRA; This does not matter, be...
by grabiner
Wed May 23, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2406

Re: Intermediate Term Treasury vs Tax Exempt Fund

The issue is that I have the 35K lying with me to invest. Moving it to the 401K - through the paycheck will take a while. I am already investing 9K to get employer match - do you suggest I max out the 18K limit with 401K and then invest the rest i.e. 26K into the said Treasury Index Fund. This look...
by grabiner
Tue May 22, 2018 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2406

Re: Intermediate Term Treasury vs Tax Exempt Fund

Actually, I wouldn't use either of these for an investment of less than $50K. Rather, I would prefer Intermediate-Term Treasury Index Admiral Shares, with 0.07% expenses for a $10K minimum, or for the ETF class VGIT. This yields 2.81%, which is 2.14% after 24% federal tax. I think you mean Vanguard...
by grabiner
Tue May 22, 2018 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3685

Re: Are high dividend stocks advantageous for the 15% tax rate?

While I know the consensus here is that favoring higher-dividend stocks does not make sense for an equity portfolio, does it make sense for a taxable portfolio used for income in retirement because of the 15% tax rate on dividends? Not really, because you can do the same with capital gains, and kee...
by grabiner
Tue May 22, 2018 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2406

Re: Intermediate Term Treasury vs Tax Exempt Fund

Doing the same for the California vs Treasury Funds comparison: Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) - SEC yield 2.27% - after tax - 2.27% Vanguard Intermediate-Term Treasury Fund Investor Shares (VFITX) - SEC yield 2.68% - after tax - 2.03% And these two ha...
by grabiner
Mon May 21, 2018 11:27 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Real Estate Isn’t Special
Replies: 49
Views: 7024

Re: Larry Swedroe: Real Estate Isn’t Special

It always amazes me that people on this forum, dedicated to low-fee, DIY investing can put REITs in the same category as brick and mortar real estate. A REIT has layer after layer of management expenses, with a multitude of ways to obfuscate and hide just how much the investor pays for this "manage...
by grabiner
Sun May 20, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 132
Views: 8102

Re: Dave Ramsey it or keep low interest debt

The main idea I was trying to convey was that federally insured low returning low risk instruments beat (or nearly beat as you point out) the low return of paying back a 1.9% car loan. What about something that might yield an annualized return of 5%? What is returning 5%? One constantly reads on th...
by grabiner
Sun May 20, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1194

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

The VG Tax Managed Balanced Fund, according to a comparison done with the Morningstar tools is barely more tax efficient than the Vanguard Balanced Index Admiral Fund over at least the last 15 yrs. In general, it is better to get tax information from the fund provider, as Morningstar often has issu...
by grabiner
Sun May 20, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 40
Views: 3513

Re: Do I pay towards my mortgage or invest?

I have a mortgage of $480k @ 3.875% (30 yr fixed). See Paying down loans versus investing on the wiki. At these rates, the marginal payment is probably still tax-deductible; you are paying over $14K in interest, so if you have $10K in state and local taxes and no other deductions, any additional pa...
by grabiner
Sun May 20, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Real Estate Isn’t Special
Replies: 49
Views: 7024

Re: Larry Swedroe: Real Estate Isn’t Special

http://www.etf.com/sections/index-investor-corner/swedroe-real-estate-isnt-special?nopaging=1 But studies have shown that the returns of REITs are explained underlying factors. Dave The data in Larry's post do not support this conclusion. From the Mladina paper: The r-squared value was 0.67. . From...
by grabiner
Sun May 20, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009
Replies: 35
Views: 3639

Re: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009

The reason that no rebalancing led to the lowest standard deviation is that it had the lowest average stock allocation. The portfolio with no rebalancing had 40% stock in March 2009; any portfolio which rebalanced along the way had more than 40% stock, and thus had larger gains during the 2009 recov...
by grabiner
Sun May 20, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1194

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

The stock portion of the fund is characterized as passive but not strictly index. It follows the Russell 1000, but may deviate from the index for tax reasons (selecting stocks with lower dividend yields, waiting until after a dividend to buy a stock, holding a stock to avoid selling it for a capital...
by grabiner
Sun May 20, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 40
Views: 3513

Re: Do I pay towards my mortgage or invest?

I have a mortgage of $480k @ 3.875% (30 yr fixed). See Paying down loans versus investing on the wiki. At these rates, the marginal payment is probably still tax-deductible; you are paying over $14K in interest, so if you have $10K in state and local taxes and no other deductions, any additional pa...
by grabiner
Sun May 20, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 22
Views: 1237

Re: Should Tax-Free Munis Be Part of Roth IRA?

Tax bracket is 22%. I have the bonds to "diversify" the portfolio. In the 22% bracket, I wouldn't recommend munis, unless you are in a high-tax state and have a muni fund for your state. You may want some bonds for diversification, but they should probably be taxable bonds, something like Total Bon...
by grabiner
Sat May 19, 2018 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 132
Views: 8102

Re: Dave Ramsey it or keep low interest debt

Look at it this way... if you had both car loans paid for ($58k), would you go BORROW $58k just to invest it? If I could get a 0% interest loan, I'd borrow every penny I could and invest it. What happens if/when you couldn't pay the loan back? On an annual income of $255k, 6 months of emergency fun...
by grabiner
Sat May 19, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage decision killing me
Replies: 52
Views: 6577

Re: Mortgage decision killing me

I strongly encourage you to consider the 7-1 ARM for two reasons. 1. In seven years you should be able to prepay in excess of 50% of the balance so if there is a rate increase it is on a lower amount and you benefit from a rate cap. 2. You also have substantial others financial assets to pay off th...
by grabiner
Sat May 19, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Entry-level employment affected by having no credit score?
Replies: 2
Views: 355

Re: Entry-level employment affected by having no credit score?

If the employer (or anyone else) takes an adverse action based on a credit report, the employer is required by law to notify him of the adverse action. He would know if his lack of credit is causing job problems.
by grabiner
Sat May 19, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Year End Tax Forms
Replies: 7
Views: 670

Re: Vanguard Year End Tax Forms

You might need the 5498 for a Roth IRA, as proof of your contributions if you withdraw before 59-1/2.
by grabiner
Sat May 19, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 132
Views: 8102

Re: Dave Ramsey it or keep low interest debt

Hard to believe any Boglehead would keep any of nterest payments when they don’t have too. We talk about low index ers then say it’s ok to pay interest. You'll find a lot of Bogleheads who keep interest payments they don't have to, because they have a better use of the money. I could have paid cash...
by grabiner
Tue May 15, 2018 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 2914

Re: Do you know your marginal tax rate?

There's also the 7.65% FICA avoided for HSA contributions, which you could view as bumping the top rate to 48.95% if you mentally stack the HSA contributions on top of the retirement contributions. In your low tax bracket, the FICA avoided is likely to be a net loss; $1 of saved FICA costs you more...
by grabiner
Mon May 14, 2018 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 2914

Re: Do you know your marginal tax rate?

Quicken will give you that number. Or a simple calculation is taxes divided by total income (example $40K of taxes divided by $400K total income equals 10% which is the marginal rate for those numbers). So a single dollar is worth $.90 since 10% goes to taxes. A bit simplistic and changing variable...
by grabiner
Sun May 13, 2018 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage or Invest
Replies: 7
Views: 1054

Re: Pay Off Mortgage or Invest

See Paying down loans versus investing on the wiki. Paying down the mortgage would be equivalent to buying a long-term bond portfolio with a 3.75% yield. The portfolio would be taxable, since you are deducting the interest on the rental. This isn't a particularly good deal; Admiral shares of Long-Te...
by grabiner
Sun May 13, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4686

Re: Anything wrong with too many lots?

The 30-day rule applies to the date of the sale, not to the date of the purchase. If you sell a lot on Monday, May 14, you can only have a wash sale if you bought replacement shares between April 14 and June 13. Thus, if you purchase monthly, you must sell your May 1 purchase, and avoid making a Ju...
by grabiner
Sun May 13, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6557

Re: Factors Suggesting One Should Buy SPIA

As I recall the suggestion by Pfau is that the proper pairing is SPIA with equities in comparison to bonds with equities This is where annuities can get interesting is as a fixed-income alternative. Just for fun I thought I'd try disregarding Taylor's advice and considered a 50 year old couple who ...
by grabiner
Sun May 13, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX or VEXAX [Vanguard Total Stock Market vs. Extended Market Index]
Replies: 11
Views: 828

Re: VTSAX or VEXAX [Vanguard Total Stock Market vs. Extended Market Index]

If you want to increase your overweighting of small-caps, Extended Market in a Vanguard account is not the best way to do this; it makes more sense to use a dedicated small-cap fund such as Small-Cap Index. It might be best to replicate Total Stock Market exactly in your TSP (holding the C and S fun...
by grabiner
Sun May 13, 2018 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on cashing in investment
Replies: 13
Views: 991

Re: Taxes on cashing in investment

The only valid advice this forum can give you is the advice to see an attorney. +1. An attorney with probate experience. Plus a CPA for the taxes. And it will be worth the money. If your father doesn't understand the tax details, he could easily pay taxes that he doesn't owe, or fail to pay taxes t...
by grabiner
Sun May 13, 2018 7:32 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4686

Re: Anything wrong with too many lots?

The 30-day rule applies to the date of the sale, not to the date of the purchase. If you sell a lot on Monday, May 14, you can only have a wash sale if you bought replacement shares between April 14 and June 13. Thus, if you purchase monthly, you must sell your May 1 purchase, and avoid making a Ju...
by grabiner
Sun May 13, 2018 7:31 am
Forum: Investing - Help with Personal Investments
Topic: [Three-fund portfolio in taxable account (New York City)]
Replies: 17
Views: 1287

Re: [Three-fund portfolio in taxable account (New York City)]

In New York City, at least your New York muni bonds should be in a taxable account. You pay much higher taxes than most taxpayers do on stocks, but you pay the same tax as anyone else on NY munis. Therefore, it is more attractive for you to hold NY munis in a taxable account. If you don't want all ...
by grabiner
Sun May 13, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing
Replies: 33
Views: 1635

Re: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing

Working on re-allocating this weekend. Are there any guidelines to ratio of pre-tax, roth, and post-tax investing? The ideal amount of post-tax investing is zero, unless the post-tax investing is non-deductible (non-deductible IRA, after-tax 401(k)), or you need the money before retirement. A Roth ...
by grabiner
Sun May 13, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1909

Re: Should I sell Small Cap Value Fund and move it into Roth?

I was planning on funding my Roth with each paycheck and have it maxed out by year end; do you think it would be better to sell out of the taxable and fund quickly, all at one time? No, because you'll have a significant tax bill, for the benefit of a few extra months of tax deferral. (If you have a...
by grabiner
Sat May 12, 2018 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on cashing in investment
Replies: 13
Views: 991

Re: Taxes on cashing in investment

Welcome to the forum, and sorry for your loss. Your mother owes taxes on income earned before she died. After she died, her assets are either part of her estate or belong to her heirs, and any income from those assets is taxed to the estate or her heirs. And you need to check the will and beneficiar...
by grabiner
Sat May 12, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4686

Re: Anything wrong with too many lots?

Someone more experienced might correct me, but it seems to me that many lots can cause problems in a taxable account if you want to tax loss harvest (unless you don't mind creating a wash sale). If you want to sell a lot that has a loss, but you have another lot that was bought less than thirty day...
by grabiner
Sat May 12, 2018 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Selling index funds outside tax sheltered accounts to invest in Roth IRA - Good or Bad?
Replies: 11
Views: 768

Re: Selling index funds outside tax sheltered accounts to invest in Roth IRA - Good or Bad?

If you can't max out your retirement accounts, and you don't need the money before retirement, selling taxable investments for a capital gain to invest more in retirement accounts is a good deal. You will pay a capital-gains tax on the sale, but you would pay that tax eventually, and you avoid futu...
by grabiner
Sat May 12, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1909

Re: Should I sell Small Cap Value Fund and move it into Roth?

You really need to plug your own numbers into Triceratop's spreadsheet. For me VBR only works out to a few basis points worse than VTI in taxable. It's a non-issue. And while I would prefer holding small-cap value in an IRA to save those few basis points (and do this myself; Total Stock Market is m...
by grabiner
Sat May 12, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 49
Views: 7150

Re: 2017 Relative Tax Efficiency

Also interesting that VSS is way more inefficient than several bond funds, including Total Bond. The high tax cost is the result of a high yield (which I do not believe is normal for this fund) and a low fraction of qualified dividends (which is normal). However, you are looking at the wrong line; ...
by grabiner
Sat May 12, 2018 7:17 pm
Forum: Investing - Theory, News & General
Topic: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing
Replies: 33
Views: 1635

Re: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing

Working on re-allocating this weekend. Are there any guidelines to ratio of pre-tax, roth, and post-tax investing? The ideal amount of post-tax investing is zero, unless the post-tax investing is non-deductible (non-deductible IRA, after-tax 401(k)), or you need the money before retirement. A Roth ...
by grabiner
Sat May 12, 2018 7:14 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 49
Views: 7150

Re: 2017 Relative Tax Efficiency

VWO (emerging markets) is really tax efficient, any ideas why? VWO is tax-efficient because of the foreign tax credit. Emerging markets tend to withhold more than developed markets in foreign taxes, and you lose this credit if you hold the fund in an IRA. Also interesting that VSS is way more ineff...
by grabiner
Sat May 12, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: [Three-fund portfolio in taxable account (New York City)]
Replies: 17
Views: 1287

Re: [Three-fund portfolio in taxable account (New York City)]

In New York City, at least your New York muni bonds should be in a taxable account. You pay much higher taxes than most taxpayers do on stocks, but you pay the same tax as anyone else on NY munis. Therefore, it is more attractive for you to hold NY munis in a taxable account. If you don't want all y...
by grabiner
Sat May 12, 2018 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Paying Mortgage v Saving Down Payment
Replies: 3
Views: 556

Re: Paying Mortgage v Saving Down Payment

I am wondering if we should be investing more into an intermediate term bond fund, or possibly a tax exempt muni bond fund (VMITX?) that would have a better yield thaN what we are getting from paying down the mortgage. In other words, in saving the 150K, what would be the best type of fund? I make ...