Search found 123 matches

by kate1234
Thu Jul 06, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: What is a "sleeve"?
Replies: 34
Views: 3226

Re: What is a "sleeve"?

Thanks for the responses and the laughter! The good news is that my friend took the leap last Friday, went to Fidelity and asked them to move all the assets from the financial advisor and to set up what is basically a three-fund portfolio using the index funds that Fidelity used to call "Sparta...
by kate1234
Thu Jul 06, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: What is a "sleeve"?
Replies: 34
Views: 3226

What is a "sleeve"?

My friend's financial advisor is encouraging her to go with an "end sleeve" and to avoid index funds at all costs :D [pun intended]

What is an "end sleeve"? I don't find anything on the wiki about it.
by kate1234
Wed Jul 05, 2017 7:28 am
Forum: Investing - Help with Personal Investments
Topic: PIMIX? [PIMCO Income Institutional]
Replies: 3
Views: 521

Re: PIMIX? [PIMCO Income Institutional]

Thanks folks, I've passed this on.

Personally I value simplicity over just about everything else so I wouldn't keep it. But if I were to keep some, I'd mentally assign half to my bond allocation and half to stock.
by kate1234
Tue Jul 04, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: PIMIX? [PIMCO Income Institutional]
Replies: 3
Views: 521

PIMIX? [PIMCO Income Institutional]

I have a friend who is just this week making the leap from having her assets under management with an advisor, to taking the IRA over to Fidelity and managing it herself. She will start with 50%/50% stocks & bonds, with 25% international: FSTVX Fidelity Total Market Index Premium FSIVX Fidelity ...
by kate1234
Wed Jun 07, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Young adults and gifts versus support
Replies: 5
Views: 926

Re: Young adults and gifts versus support

Our 20-year-old is in college and we claim him as a dependent on our taxes. We pay all of his tuition, room & board, expenses, and fun stuff, as he earns virtually no money . This arrangement works well for all of us. I am trying to understand the IRS's distinctions between gifts and support fo...
by kate1234
Wed Jun 07, 2017 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Young adults and gifts versus support
Replies: 5
Views: 926

Young adults and gifts versus support

Our 20-year-old is in college and we claim him as a dependent on our taxes. We pay all of his tuition, room & board, expenses, and fun stuff, as he earns virtually no money. This arrangement works well for all of us. I am trying to understand the IRS's distinctions between gifts and support for ...
by kate1234
Sun Apr 30, 2017 6:25 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2407

Re: If I delay SS to age 70, could spousal benefit start earlier?

If you voluntarily suspend your retirement benefit and you have others who receive benefits on your record, they will not be able to receive benefits for the same period that your benefits are suspended. Please note that there is one exception; divorced spouse’s will be able to continue receiving be...
by kate1234
Thu Apr 27, 2017 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Lifecycle Funds/G Fund Too Conservative?
Replies: 140
Views: 8451

Re: TSP Lifecycle Funds/G Fund Too Conservative?

Make sure your beneficiary knows to get the money out of the TSP after you pass on, because the rules say that the beneficiary cannot leave an inherited IRA after they pass on. Their beneficiary will have to take the money in a lump sum in one tax year, taking a huge tax bite out of all of that mon...
by kate1234
Wed Apr 26, 2017 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Lifecycle Funds/G Fund Too Conservative?
Replies: 140
Views: 8451

Re: TSP Lifecycle Funds/G Fund Too Conservative?

I notice two things about his article: He seems to be a believer in timing the market: "All of which leads me to believe that we remain in the Mid/Growth/Performing stage of the business cycle and so I am going to continue to allocate all of my balances and contributions to the TSP C Fund."...
by kate1234
Wed Apr 05, 2017 5:38 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit in Virginia
Replies: 6
Views: 605

Foreign Tax Credit in Virginia

I have just been told that the Foreign Tax Credit is not available in Virginia on dividend income. TurboTax includes it on the Virginia tax return, but the state of Virginia has disallowed it. Has anybody else run into this? If true, then that might argue for keeping one's international stocks in a ...
by kate1234
Wed Feb 01, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1279

Re: Where does cash from odd jobs go on a 1040?

Anyone who wouldn't report income like this, when the earner is quite young and in a very low tax bracket, is missing a very big benefit (apart from complying with the law) of declaring it. One can park up to $6000 of it in a Roth! And aren't we all advocating getting those Roths fully maxed out sta...
by kate1234
Wed Feb 01, 2017 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1279

Re: Where does cash from odd jobs go on a 1040?

So it sounds like the consensus is Schedule C and pay FICA on it, and not Line 21 "Other Income," which wouldn't be subject to FICA. Intuitively it makes sense to pay FICA on it since this was "labor."
by kate1234
Wed Feb 01, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1279

Re: Where does cash from odd jobs go on a 1040?

And on Social Security credits, from the SS website:

In the year 2016, you must earn $1,260 in covered earnings to get one Social Security or Medicare work credit and $5,040 to get the maximum four credits for the year.
by kate1234
Wed Feb 01, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1279

Where does cash from odd jobs go on a 1040?

My son did odd jobs and was handed cash and checks by friends and family. Helping to clean a garage, mowing a lawn, babysitting, tutoring. Just earning bits and pieces, nothing from any one person that would require a tax form from them. I know many would just pocket the money without paying taxes b...
by kate1234
Mon Jan 23, 2017 1:26 pm
Forum: Personal Consumer Issues
Topic: Subaru + Mazda
Replies: 44
Views: 4794

Re: Subaru + Mazda

I bought a 2017 Subaru Outback 3.6 this year, although not the new Touring because I wanted ivory-colored seats, not brown, and that wasn't a choice in the Touring. I did my driving and car-examining at one local dealer and never spoke to him about price. When I was ready I called five other regiona...
by kate1234
Tue Jan 17, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterizing a Roth Conversion
Replies: 4
Views: 319

Recharacterizing a Roth Conversion

Some have advised making a Roth conversion in one year then waiting until October of the following year to determine whether, and how much, to recharacterize. Partly this is based on the technique that if the assets declined in value by October it might be advantageous to recharacterize the whole th...
by kate1234
Thu Nov 17, 2016 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1240

Re: Help me make a spreadsheet?

You could use 5% for VTSAX and 3% for VBTLX as "not unreasonable guesses" but.... Wouldn't those percentages include both the annual income and the hoped-for increase in net asset value? I think I need to separate out those two things for my spreadsheet since they will be taxed differentl...
by kate1234
Wed Nov 16, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1240

Re: Help me make a spreadsheet?

Actually figuring out the taxes isn't the problem - it is figuring out what the likely income is going to be for each of the next fifteen years in this account.
by kate1234
Wed Nov 16, 2016 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1240

Help me make a spreadsheet?

I want to see what the tax load would be over a 15-year period in a taxable account and want to look at both VTSAX and VBTLX. The assumption is that each year a sum will be added to the account, then the entire accumulated savings will be spent in the fifteenth year. Here are the columns I have figu...
by kate1234
Sat Oct 08, 2016 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement 2030? Something else?
Replies: 16
Views: 1693

Re: Target Retirement 2030? Something else?

Thanks for the responses; lots of interesting ideas in here. And sorry that I wasn’t more clear – I’m the mom, this is my son’s money that I am managing for him for the time being. That’s why I know my own risk tolerance and ability to set an asset allocation and rebalance, but ideally I would make ...
by kate1234
Fri Oct 07, 2016 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement 2030? Something else?
Replies: 16
Views: 1693

Target Retirement 2030? Something else?

I want to establish a new taxable account that will be used to accumulate savings over the next fifteen years, then will be spent for something like a downpayment on a house. So all withdrawn in one fell swoop. The investor is 19 if that makes any difference. Simplicity and ease of management would ...
by kate1234
Sun Sep 25, 2016 6:58 am
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3591

Re: Contribution to satisfy RMD

Great conversation everybody. I checked with Vanguard and the one thing they had to add was a recommendation that the charity check be mailed to your home address so that you can make a photocopy of it for your records before sending it on to the charity. That also means you have to leave enough tim...
by kate1234
Wed Sep 21, 2016 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3591

Contribution to satisfy RMD

Let's say the RMD from a Vanguard Traditional IRA would be $10,000 and I want to donate $4,000 of that to charity, and send the rest to the IRS. The IRA is all Vanguard Total Stock Market. One approach is to open a brokerage account for the IRA, swap $4,000 of the mutual fund for an ETF, and transfe...
by kate1234
Mon Sep 19, 2016 6:01 pm
Forum: Personal Consumer Issues
Topic: The Bogleheads' "100 Things Worth Every Penny" List
Replies: 275
Views: 41061

Re: The Bogleheads' "100 Things Worth Every Penny" List

Flush toilets.

I have spent brief periods in places where there were none and I am regularly grateful for modern plumbing.
by kate1234
Mon Sep 19, 2016 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax & 529 contributions
Replies: 1
Views: 341

Gift tax & 529 contributions

The instructions on Form 709, the gift tax form say: "If in 2015, you contributed more than $14,000 to a Qualified Tuition Plan (QTP) on behalf of any one person, you may elect to treat up to $70,000 of the contribution for that person as if you had made it ratably over a 5-year period. The ele...
by kate1234
Fri Sep 16, 2016 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Maximum Room & Board - Calendar vs School year
Replies: 1
Views: 435

529 Maximum Room & Board - Calendar vs School year

I am tallying my son's off-campus room and board and will compare it to the cost of attendance at his school. For the school year 2015-16 the school's stated cost of attendance for room and board was $10,400, but for 2016-17 it has risen to $10,726. But my 529 withdrawals are for a calendar year not...
by kate1234
Thu Feb 25, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Hazards in this Roth conversion?
Replies: 5
Views: 661

Re: Hazards in this Roth conversion?

This was so helpful, thanks. For my Roths I currently have four accounts: one for the contributions/conversions done before 2015, one for the conversion done in 2015 that is waiting to see whether any of it needs to be recharacterized, one for the 2016 conversion, and one currently empty. I love the...
by kate1234
Wed Feb 24, 2016 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Hazards in this Roth conversion?
Replies: 5
Views: 661

Hazards in this Roth conversion?

I am slowly converting my tIRA to a rIRA. At the beginning of 2016 I made a conversion. The market has dropped and I have the ability to do a second conversion now at a lower price. I am thinking of making the second conversion of the same dollar amount (into a separate, currently empty, Roth accoun...
by kate1234
Sat Jan 09, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Include 529 in net worth?
Replies: 32
Views: 3129

Re: Include 529 in net worth?

Now I wouldn't include them in retirement calculations because the intent is to spend the account BEFORE retirement. Well that depends. We have been retired for five years and are well into RMD-land, but our child is in his first year of college. Yes it is included in our net worth and we even incl...
by kate1234
Sat Jan 02, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Engaged...So how do we handle finances now?
Replies: 40
Views: 4842

Re: Engaged...So how do we handle finances now?

There isn't a right or wrong answer; all that you can do is consider what other people have done, how their situation is similar to or different from yours, and think about how well it might work for you. I'd advise getting your respective credit scores which will help you understand each other bett...
by kate1234
Fri Jan 01, 2016 6:54 pm
Forum: Personal Consumer Issues
Topic: Maid for organizing
Replies: 3
Views: 838

Re: Maid for organizing

A "service" probably would not, but an individual might. I know of a lady who will fold clean clothes but would not think of putting them away because bedroom drawers are "private." However she will regularly clean and organize the Tupperware drawer in the kitchen.
by kate1234
Fri Oct 30, 2015 4:10 pm
Forum: Investing - Theory, News & General
Topic: Question on SS handout TOM distributed at Bogleheads conf
Replies: 1
Views: 433

Question on SS handout TOM distributed at Bogleheads conf

Given the new SS rules I am recalculating my SS spreadsheet. I am looking at the handout TOM passed out at the Bogleheads conference in the session on SS and don't understand something. In question 9 he quotes the SS rules (this quote here is actually from SS but is the same in essence): A spousal b...
by kate1234
Thu Oct 29, 2015 11:02 am
Forum: Investing - Theory, News & General
Topic: Tax Gain Harvesting vs Roth Conversion
Replies: 15
Views: 1321

Re: Tax Gain Harvesting vs Roth Conversion

Are you married, and is your taxable account co-owned by both of you? If so, remember after you pass on the 15% tax bracket shrinks significantly for your spouse. If he/she needs to take some LTCGs in the future the amount that can be realized without bumping into the next bracket is correspondingl...
by kate1234
Thu Oct 29, 2015 9:35 am
Forum: Investing - Theory, News & General
Topic: Tax Gain Harvesting vs Roth Conversion
Replies: 15
Views: 1321

Tax Gain Harvesting vs Roth Conversion

I have a recurring note to myself to review accounts each year to see whether Tax Gain Harvesting is appropriate--taking advantage of the zero capital gains tax up to the top of the 15% bracket. But I am also working on doing Roth Conversions each year. Are there reasons I should do one versus the o...
by kate1234
Thu Oct 29, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Asset allocation and taxes
Replies: 1
Views: 325

Asset allocation and taxes

One of the great questions that was asked of panelists at the Boglehead conference was, "What is your asset allocation and why?" I got to thinking that each person might answer that question in multiple ways, depending on whether they included taxes in their calculation. For instance if th...
by kate1234
Fri Oct 02, 2015 9:32 am
Forum: Investing - Theory, News & General
Topic: Northwest FCU 3-year 3.04% Add-On CD
Replies: 330
Views: 32253

Re: Northwest FCU 3-year 3.04% Add-On CD

From NWFCU website: Early Withdrawal Penalty: We may impose a penalty if you withdraw any of the principal in your account before the maturity date. For Certificates having a term of six (6) months or less, the penalty will be equal to all dividends on the amount withdrawn since the date of issuance...
by kate1234
Fri Oct 02, 2015 8:50 am
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2835

Re: Vanguard, E-Mail Concern

A number of the password management applications help with this uncertainty by only entering your user name and password on sites where it recognizes the underlying IP address. My understanding is the bad guys can create a site that looks identical in every way, possibly including the words and lett...
by kate1234
Thu Jul 30, 2015 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 3
Views: 365

Re: Tax loss harvesting

If we assume it is is going to fall into the "fine" category, then do I do it immediately or do I need to wait? Planning for the future.
by kate1234
Thu Jul 30, 2015 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 3
Views: 365

Tax loss harvesting

When the market really tanks and the price drops below my purchase price, if I own Vanguard Emerging Markets and Vanguard Developed Markets, can I sell them both, buy Vanguard Total International and claim a tax loss? Would I have to wait 30 days or is that different enough for me to make an exchang...
by kate1234
Thu May 14, 2015 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: How much to contribute to a 529 Plan
Replies: 2
Views: 1005

How much to contribute to a 529 Plan

I am calculating the amount we should put into our 529 plans. Our child is a high school senior and knows where he is going to college, so we know the estimated costs. He might get an advanced degree but possibly not so I'm thinking it makes best sense for us to just fund four years of college (four...
by kate1234
Tue Mar 24, 2015 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Choosing an accountant
Replies: 5
Views: 695

Choosing an accountant

Every year I do my taxes myself - with the help of my trusty TurboTax. This year things are just too darned complicated and I need an accountant. I was lucky enough to be in a meeting last night in which I asked a group of friends if they had an accountant they would recommend and four hands shot up...
by kate1234
Thu Mar 12, 2015 4:58 pm
Forum: Personal Consumer Issues
Topic: Choosing a Backpack and other Gear for el Camino
Replies: 100
Views: 11968

Re: Choosing a Backpack and other Gear for el Camino

What about buying a bunch of one-cent stamps? You get the backing for not a lot of money even if you throw away the stamps.
by kate1234
Thu Feb 05, 2015 10:28 am
Forum: Personal Finance (Not Investing)
Topic: RMDs and recharacterization
Replies: 7
Views: 727

Re: RMDs and recharacterization

Thanks for the good information and the reference, and my apologies for missing a key sentence in reading your first answer.
by kate1234
Wed Feb 04, 2015 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs and recharacterization
Replies: 7
Views: 727

Re: RMDs and recharacterization

Wouldn't it just be the earnings that would have accrued by 12/31/14? It doesn't make sense that earnings accrued between 1/1/15 and the recharacterization date in 2015 would be added to the 12/31/14 balance that is used to calculate the 2015 RMD. It does, however, make intuitive sense that the 12/3...
by kate1234
Wed Feb 04, 2015 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs and recharacterization
Replies: 7
Views: 727

RMDs and recharacterization

Let's say that the IRA account holder is 75, well into RMD-land. During 2014 he takes $50,000 of his $100,000 traditional IRA and converts it into a Roth IRA (in addition to taking the RMD because we all know you can't put the RMD into a Roth). But then in October 2015 he recharacterizes that conver...
by kate1234
Wed Nov 19, 2014 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: What to prepare for first baby due next month?
Replies: 55
Views: 8250

Re: What to prepare for first baby due next month?

Get a good camera. Some folks also hire a professional baby-portrait photographer. If you don't have the money, the way the photographers get those so-peaceful pictures is they drape the background fabric or rug over the parent's body and put the baby on top of that - the baby gets the warmth and br...
by kate1234
Fri Nov 14, 2014 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Donating appreciated securities
Replies: 6
Views: 818

Re: Donating appreciated securities

As to 3): you mean whatever the price is two days hence, I sell and buy at the same time, rather than having it sit in cash for the intervening two days. So whether the market goes up or down it doesn't matter - I take zero extra risk by being out of the market. If so then that makes me feel much be...
by kate1234
Fri Nov 14, 2014 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Donating appreciated securities
Replies: 6
Views: 818

Donating appreciated securities

I have a taxable account at Vanguard that holds VTSAX (Vanguard Total Stock Market Admiral) and VTMGX (Vanguard Developed Markets Index Admiral), both of which have been held for more than one year and both of which have appreciated since I bought them. I want to donate a portion to a charity during...
by kate1234
Fri Nov 14, 2014 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Why is this simple for everyone else, retiree Roth question?
Replies: 13
Views: 1924

Re: Why is this simple for everyone else, retiree Roth quest

Your annuities/pensions added to your social security might already put you up over the 85% SS tax point, especially if they are indexed to inflation, so no amount of reduction of the RMDs would affect them. That will simplify your calculations.
by kate1234
Mon Nov 10, 2014 11:42 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 110
Views: 26824

Re: Master thread for Washington DC Area Bogleheads

Hi Sam,

I bet we'll have plenty of time to share thoughts on BH13 as well as discuss the usual array of random questions.

Katherine