Search found 17845 matches

by grabiner
Mon Sep 26, 2016 11:32 pm
Forum: Investing - Theory, News & General
Topic: High yield bonds and GNMA's in a portfolio, since 1988
Replies: 10
Views: 1057

Re: High yield bonds and GNMA's in a portfolio, since 1988

Admittedly I'm a risk-on-the-equity-side investor. In theory GNMA is a lose/lose proposition for the mortgagor and a win/win for the mortgagee. But the rates on GNMAs allow for that, as investors are aware of the risk. GNMAs are backed by the US Government, but they yield significantly more than Tr...
by grabiner
Mon Sep 26, 2016 11:26 pm
Forum: Investing - Theory, News & General
Topic: Christine's article today on RMD's...a question to bogleheads
Replies: 22
Views: 2026

Re: Christine's article today on RMD's...a question to bogleheads

...I've also wondered about her comment about the qualified charitable move of some of the RMD. I already itemize and so my charitable donations count tax wise. It is just interesting to me that this is the second time she has mentioned the benefit of this direct RMD donation to charity versus givi...
by grabiner
Mon Sep 26, 2016 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: What kind of return is decent for high fee 401k funds?
Replies: 8
Views: 782

Re: What kind of return is decent for high fee 401k funds?

I have ran a couple of spread sheets and according to my math if am better off going with just putting enough into my 401K to get the match and then contributing into taxable investments assumng both have a return of 7% and my 401k ER is 1% and Taxable and IRA ER is .2%. After 6 years I am coming u...
by grabiner
Mon Sep 26, 2016 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: Help With Where To Open HSA
Replies: 3
Views: 307

Re: Help With Where To Open HSA

Health savings account on the wiki includes a list of custodians which are popular with Bogleheads. (If you use a brokerage account, such as HSA Bank with TD Ameritrade, you can buy Vanguard ETFs or any other ETFs.)
by grabiner
Mon Sep 26, 2016 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Max out contribution to HSA if moving away from HDHP?
Replies: 4
Views: 420

Re: Max out contribution to HSA if moving away from HDHP?

You should definitely max out the HSA. If you don't need the money now, you can always spend it in retirement, when you will probably have health-care needs, and it will still be tax-free. For example, if you contribute $1000 less than the maximum to your HSA, and contribute an extra $1000 to your 4...
by grabiner
Mon Sep 26, 2016 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: When to collect Social Security - Please check my logic
Replies: 16
Views: 2181

Re: When to collect Social Security - Please check my logic

Given these assumptions, what are we not thinking about besides the fact that my wife may outlive me and live past 86? One thing that you seem to be missing is the taxation difference between SS income dollars and your pension & other income dollars. After tax, an SS income dollar is always wor...
by grabiner
Mon Sep 26, 2016 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Value indexes to bring portfolio back from growth tilt
Replies: 2
Views: 287

Re: Value indexes to bring portfolio back from growth tilt

This makes a lot of sense. You might do a Portfolio X-Ray on Morningstar to see how your proposed portfolio compares with the total stock market (or with whatever you actually want, if you choose to overweight small-cap or value). It's better to keep Total Stock Market or Total International in your...
by grabiner
Mon Sep 26, 2016 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Making estimated tax payments to offset possible 401k HCE refund
Replies: 1
Views: 140

Re: Making estimated tax payments to offset possible 401k HCE refund

This shouldn't cause a problem. If you receive a refund of 401(k) contributions for 2016 in 2017, that will be taxable income for 2017, which will allow you to adjust your 2017 withholding appropriately. Reference: IRS information about notice when plan fails non-discrimination tests I couldn't find...
by grabiner
Mon Sep 26, 2016 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Relocating from place with no state tax to a place with state tax
Replies: 9
Views: 1141

Re: Relocating from place with no state tax to a place with state tax

A lot of the states will figure your tax for a part year resident on your total income. Then they will ratio that tax by the amount of income allocated/earned in their particular state. You earned 40K in FL, move to CO and earn/allocate 60K. CO will figure your tax on 100K of income and charge you ...
by grabiner
Mon Sep 26, 2016 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: How to become debt free?
Replies: 31
Views: 2230

Re: How to become debt free?

Monthly Expenses are as follows: Monthly: $733 Auto loan Auto Ins Cell Service Gasoline Medical Streaming Media Subscriptions What are the debt payments? This is a good case for "pay yourself first", which is usually the motivation for contributing to a 401(k) or IRA from every paycheck. ...
by grabiner
Mon Sep 26, 2016 7:36 pm
Forum: Investing - Theory, News & General
Topic: The Trouble with "Buy and Hold"
Replies: 113
Views: 8021

Re: The Trouble with "Buy and Hold"

This may be unlikely occur due to the nature of the timing system, but it's a massive risk. Unlike with Buy and Hold, there is no mean reversion to make you whole when (if) your system fails you. I've been looking back at 2009-2010 and seeing what I did when the heat was on. I didn't sell anything,...
by grabiner
Sun Sep 25, 2016 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: Can I pay off the 1k of credit card balance this way?
Replies: 15
Views: 1276

Re: Can I pay off the 1k of credit card balance this way?

Your credit score depends on the amount owed, but only in the month that you use it. If you don't apply for credit in October, it doesn't matter what your credit score is in October; your November credit score will depend on what you owe on your November statement. However, there is no point in borr...
by grabiner
Sun Sep 25, 2016 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Does anybody here have a good credit score with no credit cards?
Replies: 16
Views: 1449

Re: Does anybody here have a good credit score with no credit cards?

If your credit score is affecting your rates, you will get an adverse action notice from the insurance company, explaining the reason why the score is not higher. Is this true for all states? Most insurance rules and laws seem to be state specific. Many states do not allow the use of credit scores ...
by grabiner
Sun Sep 25, 2016 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Does anybody here have a good credit score with no credit cards?
Replies: 16
Views: 1449

Re: Does anybody here have a good credit score with no credit cards?

Taylor, Some auto insurance companies consider a person's credit score when they set their rates. A low credit score can make insurance cost more. So, even if you do not borrow, a decent credit score is a good thing to have. jimb_fromATL; I checked GEICO, where I have my auto insurance, and you are...
by grabiner
Sun Sep 25, 2016 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Uncovered MF Shares at Vanguard
Replies: 18
Views: 1515

Re: Uncovered MF Shares at Vanguard

From this article on calculating capital gains : The IRS allows you to use four different accounting methods for calculating your gain. You can use the method which is most advantageous to you. However, once you choose your accounting method for a particular mutual fund, you must stick with that me...
by grabiner
Sun Sep 25, 2016 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Uncovered MF Shares at Vanguard
Replies: 18
Views: 1515

Re: Uncovered MF Shares at Vanguard

If you are interested in lowering the tax cost of your sales, without going whole hog into Specific Share ID, you can elect Spec ID for your covered shares. Do this *well in advance* of your first anticipated sale. You don't get to elect anything for non-covered shares, but Vanguard will provide yo...
by grabiner
Sun Sep 25, 2016 8:31 am
Forum: Investing - Theory, News & General
Topic: [Vanguard Core Bond Fund opens to investors]
Replies: 123
Views: 16914

Re: [Vanguard Core Bond Fund opens to investors]

The listed top 25 holdings are probably not a good representation of what the fund holds. Since there are far fewer Treasury bonds than corporate bonds, a fund is likely to hold more of any individual Treasury bond than any individual corporate bonds, and thus the Treasury bonds will be in the top 2...
by grabiner
Sun Sep 25, 2016 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Uncovered MF Shares at Vanguard
Replies: 18
Views: 1515

Re: Uncovered MF Shares at Vanguard

OP: If you have copies of your old tax returns, the dollar amounts of reinvested dividends for each fund per year will be listed as you received and reported (and paid taxes) on those amounts. If you decide to sell an entire fund, your total invested amount plus the reinvested dividends totaled for...
by grabiner
Sat Sep 24, 2016 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Another refinance scenario. 15Yr vs Prepay
Replies: 2
Views: 347

Re: Another refinance scenario. 15Yr vs Prepay

If you can keep the mortgage even if you move out of the house and make it a rental, that makes refinancing particularly attractive; you'll get the benefit of the lower interest rate for the full loan term. (Your current rate is slightly above the market rate, so you could get a benefit from refinan...
by grabiner
Sat Sep 24, 2016 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: 75-year-old widowed retiree
Replies: 8
Views: 1499

Re: 75-year-old widowed retiree

Welcome to the forum! How do we go about determining the largest annual percentage she can withdraw? She has family that would see her through in the event of a total collapse of her assets, but obviously we would all like to avoid that. I'm pretty sure she would also like to fell like she was in a ...
by grabiner
Sat Sep 24, 2016 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: bonds in taxable account?
Replies: 6
Views: 700

Re: bonds in taxable account?

My normal recommendation in this situation is to put only half your bonds in your own state. You can use the long-term fund for your state (MA Long-Term Tax-Exempt), and then Limited-Term Tax-Exempt for the other half, so that half your bonds are in one state but more than half the income is tax-exe...
by grabiner
Sat Sep 24, 2016 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Fundamental Difference in Roth and Traditional 401k
Replies: 49
Views: 2842

Re: Fundamental Difference in Roth and Traditional 401k

I apologize if I am super thick here, but I just don’t understand. Maybe we are talking past each other. Or maybe I am just wrong, but I don’t see it. Thanks for taking the time on this. Here is an example Let say a guy has a taxable income of 600k/year and has the ability to put 53k/yr into a trad...
by grabiner
Sat Sep 24, 2016 9:36 am
Forum: Investing - Theory, News & General
Topic: Revisiting tax-efficient fund placement and foreign tax credits
Replies: 8
Views: 632

Re: Revisiting tax-efficient fund placement and foreign tax credits

That makes sense in your situation, but Bogleheads should remember that the better solution is situation specific. For example, If one is in the 15% tax bracket, the foreign credits can be quite meaningful and the QDI/non QDI split is not relevant. This could be the case for a young person making I...
by grabiner
Sat Sep 24, 2016 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Asset Location Withdrawal Question
Replies: 12
Views: 1015

Re: Asset Location Withdrawal Question

With respect.... "You pay more tax when selling stocks, and more tax when taking distributions from bonds (or receive less in distributions to avoid the tax if you use munis) ." Have you looked at the distribution yields of these two.. I'm talking VG Total Bond Admiral and VG IT Muni Admi...
by grabiner
Sat Sep 24, 2016 9:11 am
Forum: Investing - Help with Personal Investments
Topic: ETF purchase timing
Replies: 8
Views: 685

Re: ETF purchase timing

The exact mechanics vary by market, but most markets have an opening cross. The opening price is set to be the price which allows the largest number of shares to be traded, and all trades happen at that price. Any order to buy below that price or sell above that price, and any unmatched order at tha...
by grabiner
Sat Sep 24, 2016 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Fundamental Difference in Roth and Traditional 401k
Replies: 49
Views: 2842

Re: Fundamental Difference in Roth and Traditional 401k

One other thing to check is whether changing from Traditional to Roth would bump you up into the 28% tax bracket. If not, then putting some of your 401K contributions into Roth might be advantageous. Likewise, check whether your marginal tax rate is higher than your tax bracket. If you are in the p...
by grabiner
Sat Sep 24, 2016 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Currency risk for 5.5 percent? Missing something?
Replies: 30
Views: 2104

Re: Currency risk for 5.5 percent? Missing something?

Also, it is possible I will buy property there in year 2 which will require one large transfer. In that case in light of the above points made by my BH colleagues, it would seem wisest to wait until the last minute to transfer and convert the lump sum..? If you are planning to buy property in a for...
by grabiner
Fri Sep 23, 2016 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Uncovered MF Shares at Vanguard
Replies: 18
Views: 1515

Re: Uncovered MF Shares at Vanguard

If you are using average basis, Vanguard's records for non-covered shares should be correct, although you may need to prove these numbers to the IRS if you are audited (say, by showing your purchase records from Vanguard). You wil get a 1099-B which says that you sold 100 shares of XYZ for $5000, th...
by grabiner
Fri Sep 23, 2016 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Threshold for pre-notifying credit card companies?
Replies: 40
Views: 2448

Re: Threshold for pre-notifying credit card companies?

PS - the weird thing is that they sent me a text message saying they declined it but did I really intend to make it (yes/no). Of course I said yes but that was after they declined it. What's up with that? This makes sense; they want your confirmation before approving, and can't hold the purchase wh...
by grabiner
Fri Sep 23, 2016 10:09 pm
Forum: Investing - Theory, News & General
Topic: Revisiting tax-efficient fund placement and foreign tax credits
Replies: 8
Views: 632

Re: Revisiting tax-efficient fund placement and foreign tax credits

The foreign tax credit is still enough to make large-cap international funds slightly better in taxable accounts than large-cap US funds, if the yields are the same . However, foreign yields have been higher since 2008. If that remains the case, US in taxable will be better; if yields equalize as th...
by grabiner
Fri Sep 23, 2016 10:00 pm
Forum: Investing - Theory, News & General
Topic: Interesting Article about Factor Premiums and Implementation Costs
Replies: 4
Views: 583

Re: Interesting Article about Factor Premiums and Implementation Costs

One way to check these turnover costs for indexes is to look at tracking error. If an index ETF has 0.5% expenses, and is losing 0.5% per year to trading costs, then it should underperform its index by 1%. VBR (Vanguard Small Cap Value) - 15% turnover, .08 er, 53 bp/20 bp/38 bp IJS (iShares S&P ...
by grabiner
Fri Sep 23, 2016 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis options
Replies: 2
Views: 298

Re: Cost basis options

This is correct, and not just for TLH; eventually, you'll want to sell part of the fund, and specific identification will reduce the taxes you owe then.
by grabiner
Fri Sep 23, 2016 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) loan to invest in taxable
Replies: 18
Views: 1432

Re: 401(k) loan to invest in taxable

This is interesting. For my 401k (TSP) loans are paid back at the G fund rate, currently 1.625%. How about this scenario? Let's say I have $100,000 total in the account, $50,000 in G and $50,000 in C. 1. Switch to %100 C. 2. Take out $50,000 loan So.. Before: $50,000 in C $50,000 in G earning 1.625...
by grabiner
Fri Sep 23, 2016 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Location Withdrawal Question
Replies: 12
Views: 1015

Re: Asset Location Withdrawal Question

There are several distinct disadvantages to no bonds in taxable. If you are withdrawing from taxable and the market tanks, and all you have in that account is equities your sequence of return risk shows immediately and you get killed on your withdrawals from taxable. You avoid that risk by selling ...
by grabiner
Fri Sep 23, 2016 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: How do I put on these trades?
Replies: 15
Views: 996

Re: How do I put on these trades?

What you want to do for the purchase is to place a stop order. Usually, stops are done in the other direction, "Sell if the price falls to $X,", but your broker might allow you to place a stop-buy order, "Buy at the market if the price rises to $12", or a stop-buy-limit order, &q...
by grabiner
Thu Sep 22, 2016 10:57 pm
Forum: Investing - Theory, News & General
Topic: The Trouble with "Buy and Hold"
Replies: 113
Views: 8021

Re: The Trouble with "Buy and Hold"

While typing my response I thought about my IRA account. It is totally funded by rollovers from 401(k) plans. The dates of deposits to the account: 05/20/1998 04/09/2008 06/24/2008 Would you consider any of those dates good candidates for lump sum purchase for buy and hold? Go check your charts. Ye...
by grabiner
Thu Sep 22, 2016 9:04 pm
Forum: Investing - Theory, News & General
Topic: Morgan Stanley explains why the S&P500 wins
Replies: 13
Views: 2123

Re: Morgan Stanley explains why the S&P500 wins

Because the new companies that are added to the index typically have much higher margins than both the companies removed and the surviving constituents ...with faster prior revenue and earnings growth, and higher margins, the stocks added to the index typically have performed much better over the f...
by grabiner
Thu Sep 22, 2016 8:59 pm
Forum: Investing - Theory, News & General
Topic: The Trouble with "Buy and Hold"
Replies: 113
Views: 8021

Re: The Trouble with "Buy and Hold"

The best way to benefit from buy-and-hold investing is to buy over time. Put $1000 into your 401(k) from each monthly paycheck, and your $12,000 investment over one year, or $60,000 over five years, will be spread over the market's lows and highs. You won't pick either the best or worst starting poi...
by grabiner
Thu Sep 22, 2016 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: T.I.P.S.
Replies: 3
Views: 418

Re: T.I.P.S.

TIPS are probably the safest investments around. The payment is guaranteed by the Treasury, and the purchasing power of the payment is guaranteed to track inflation. If you know that your living expenses will be $40K per year, adjusted for inflation for the next 30 years, you can buy a portfolio of ...
by grabiner
Thu Sep 22, 2016 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio 'hit' when rates rise...
Replies: 5
Views: 717

Re: Portfolio 'hit' when rates rise...

Welcome to the forum! The rate which the Fed tries to control is the short-term rate, which may not follow the long-term rates on your bonds. However, you can get an idea of the interest-rate risk on a bond fund by looking at its duration. Total Bond Market Index has a duration of six years, which m...
by grabiner
Thu Sep 22, 2016 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Another Roth Conversion Situation
Replies: 12
Views: 690

Re: Another Roth Conversion Situation

[When you're temporarily in the 15% bracket for a few years, how much can you convert to Roth up to the top of the 15%? That would seem to be a prudent step. Converting at 25% now vs 25% later is questionable. Do the conversions only before the second one of you starts taking Social Security. When ...
by grabiner
Thu Sep 22, 2016 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Leaving Ameriprise for Vanguard - Tax Implications?
Replies: 11
Views: 1076

Re: Leaving Ameriprise for Vanguard - Tax Implications?

Just looked some more and found realized gains. Short term is -168 long term +2097 so overall 1928. So does that mean if I bail tomorrow I'd owe taxes on 1928 + the 4610 unrealized? PLUS long term capital gains on my overall profit of 25k? No, you would only owe profit on the unrealized gain, which...
by grabiner
Thu Sep 22, 2016 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice on mortgage principal prepayment
Replies: 16
Views: 1970

Re: Need advice on mortgage principal prepayment

I still don't understand the mechanics of it, but advise from posters here was that making a principal prepayment was much more beneficial than keeping the money in a 1% money market until i could lump sum pay off the entire mortgage. The reason is that you earn a return equal to the mortgage rate....
by grabiner
Thu Sep 22, 2016 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is this asset allocation fine or am I missing something?
Replies: 17
Views: 1142

Re: Is this asset allocation fine or am I missing something?

3. There is a theme in here I've never heard of but is really cool and makes sense - if I understand it. The "tilt" concept. I'm assuming that means that you have a solid foundation that just keeps running and you have the ability to "tilt" the results over time using other inve...
by grabiner
Wed Sep 21, 2016 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Australian Capital Gains Tax (big hole?)
Replies: 5
Views: 454

Re: Australian Capital Gains Tax (big hole?)

Also, every tax agency on the planet has "wash rules" which prevent you selling and then rebuying the same thing to stop exactly this; they're definitely not encouraging it. Usually they make you wait 30 days, which means you are almost certainly missing out on gains. I don't know about A...
by grabiner
Wed Sep 21, 2016 9:08 pm
Forum: Personal Consumer Issues
Topic: First time negotiating for a car. Have questions
Replies: 27
Views: 1958

Re: First time negotiating for a car. Have questions

Question#1 - I've heard it's possible to get a pre-approved loan from a bank/credit union. If she does this, would she lose any negotiating room as opposed to financing with the dealer? I assume the dealer makes a good amount of their money from financing as well. You don't need to tell the dealer ...
by grabiner
Wed Sep 21, 2016 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Australian Capital Gains Tax (big hole?)
Replies: 5
Views: 454

Re: Australian Capital Gains Tax (big hole?)

Welcome to the forum! The downside of this type of strategy is that you give up on the growth. If you buy in 2016 and sell in 2017, you pay capital-gains tax, so you can't reinvest the full amount; you lose the future growth on the amount that was paid in 2017. If you wait until 2022 to sell, the gr...
by grabiner
Wed Sep 21, 2016 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Prepay Mortgage: Does the length of time you live in the home matter?
Replies: 29
Views: 2669

Re: Prepay Mortgage: Does the length of time you live in the home matter?

The reason that the length of time you live in the home matters is that you get the benefit faster if you sell the home; conversely, you lose the potential benefit of a lower rate if you keep a long-term mortgage until you sell. If you keep your current 3.25% mortgage, then in 10 years, you will hav...
by grabiner
Wed Sep 21, 2016 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice on mortgage principal prepayment
Replies: 16
Views: 1970

Re: Need advice on mortgage principal prepayment

See Paying down loans versus investing on the wiki. Paying down your mortgage won't give you any benefit until the mortgage is paid off; for you, this will probably be when you sell the house. If you continue to live in the house for another 10 years, say, then you are effectively buying a 10-year t...
by grabiner
Wed Sep 21, 2016 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Tax-Exempt Bond ETF.....
Replies: 6
Views: 948

Re: Vanguard Tax-Exempt Bond ETF.....

My dad is a retired teacher, has some annuity income along with SS. If he invested in a mutual fund vs an ETF, would he have to continue to contribute monthly vs a one time lump sum investment? How would you all compare and contrast ibonds vs tax exempt bond funds/ETF's? First decide how much risk ...

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