Search found 44763 matches

by livesoft
Sun Feb 07, 2016 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: Specific ID with Tax Loss
Replies: 2
Views: 54

Re: Specific ID with Tax Loss

I think it is always better to use Specific ID from the very beginning. It is easy to switch at any broker if you have not made any sales yet. Yes, the outcome will probably be the same, but why subject yourself to learning two different methods when you don't have to since you are going to use Spec...
by livesoft
Sun Feb 07, 2016 12:06 pm
Forum: Investing - Theory, News & General
Topic: What is your average return?
Replies: 11
Views: 1075

Re: What is your average return?

I think it is actionable, but only if you compare to a benchmark that matches your desired asset allocation. Also, folks who are paying advisors can figure out if they are paying for what they get or getting for what they pay. OTOH, I suspect most people cannot actually calculate a legitimate return...
by livesoft
Sun Feb 07, 2016 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing without selling
Replies: 14
Views: 880

Re: Rebalancing without selling

I will read up more on TLH. For now I am redirecting 100% monthly contributions to domestic stock fund to rebalance. Before you make your next purchase in a fund you already own in your taxable account, you should decide if that is something you really should do or not. That is, figure out FIRST if...
by livesoft
Sun Feb 07, 2016 11:12 am
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

Am I correct to say that you do not pay 100% of the college cost with the 529 money? You pay some of the money out of your pocket in order to receive the AOTC credit? I believe you need to pay about 4K per kid in order to receive the $2,500 credit. KlangFool Yes, you are correct. Our older child we...
by livesoft
Sun Feb 07, 2016 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging and Re-balancing
Replies: 4
Views: 171

Re: Dollar Cost Averaging and Re-balancing

The wiki has a link to a Larry Swedroe article https://www.bogleheads.org/wiki/Rebalancing that discusses how to rebalance without transaction costs, without tax costs, without other costs. Everybody should be able to figure out how to rebalance without any costs. And it seems you have figured it ou...
by livesoft
Sun Feb 07, 2016 10:53 am
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

Not sure why you are struggling with my initial post, and subsequent response, that I am already maxing my retirement accounts. Yes, I'm not sure what's going on here anymore either. Since I am about to make a 529 plan withdrawal for Spring 2016/Fall 2016 college costs, I want to mention that one d...
by livesoft
Sun Feb 07, 2016 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Help with investement decisions. Both teachers and two babies
Replies: 12
Views: 625

Re: Help with investement decisions. Both teachers and two babies

^Unllke you, I did not mean that "better" was meant as exclusively "better for college." And I certainly did not mention college.
by livesoft
Sun Feb 07, 2016 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Huge Federal Tax Return
Replies: 8
Views: 589

Re: Huge Federal Tax Return

Consider that your "refund" (not "return") would have been invested, so the IRS saved you from at least a 10% loss. :twisted:
by livesoft
Sun Feb 07, 2016 9:46 am
Forum: Personal Consumer Issues
Topic: The Coming Boglehead Zombie Apocalypse (LED bulbs)
Replies: 76
Views: 5405

Re: The Coming Boglehead Zombie Apocalypse (LED bulbs)

An incandescent's life is 1,200 hours, less than a year That's not my reality. But maybe it is because we don't turn our lights on very much or use them that often since sunlight is free. For instance, the wide-angle flood bulbs over the master bath and the master shower have not been replaced in o...
by livesoft
Sun Feb 07, 2016 8:06 am
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 3
Views: 209

Re: Hold International Funds in Roth IRA or Taxable Account?

I always take the tax credit, too. But do the math. It is not about international funds in taxable. It is about the tax-efficiency and total tax after FTC of the entire portfolio. Thus, I don't think your question can be answered properly on the face of it. Another complication is that things change...
by livesoft
Sun Feb 07, 2016 7:40 am
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 3
Views: 209

Re: Hold International Funds in Roth IRA or Taxable Account?

It doesn't matter that much. It also depends on your tax brackets, your actual international funds, and what you kick out of the Roth and move into taxable to make room for any international that you put there. For instance, VEA is quite tax efficient for someone in the 15% marginal income tax brack...
by livesoft
Sun Feb 07, 2016 6:41 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing without selling
Replies: 14
Views: 880

Re: Rebalancing without selling

I inferred from the presence of the tax-exempt bond funds that this was mostly a taxable account. I wuld not be selling any positions that created a tax cost. That is, I would be rebalancing on-the-fly with new contributions and any dividends paid by my investments. This is quite standard and mentio...
by livesoft
Sat Feb 06, 2016 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing without selling
Replies: 14
Views: 880

Re: Rebalancing without selling

I suppose you are also not reinvesting the dividends from the bond fund back into the bond fund, so those dividends can also be used for rebalancing?

I also don't see why a spreadsheet is needed. Put all $1500 into VTSMX since it is low.
by livesoft
Sat Feb 06, 2016 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: (Another) Roth Conversion Question
Replies: 13
Views: 655

Re: (Another) Roth Conversion Question

It comes from additional income being taxed at 15% PLUS bumping qualified dividend and long-term capital gains from 0% to 15%. 15% + 15% = 30%. See Kitces: https://www.kitces.com/blog/understanding-the-mechanics-of-the-0-long-term-capital-gains-tax-rate-how-to-harvest-capital-gains-for-a-free-step-u...
by livesoft
Sat Feb 06, 2016 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: (Another) Roth Conversion Question
Replies: 13
Views: 655

Re: (Another) Roth Conversion Question

Many folks are horrified to find out that RMDs at a later age will push them into higher tax brackets than 25%. If you use tax software, I think you will find that any income from a Roth conversion, interest, short-term capital gains or non-qualified dividends will actually be taxed at 30% when you ...
by livesoft
Sat Feb 06, 2016 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing mutual fund performance to online savings
Replies: 4
Views: 294

Re: Comparing mutual fund performance to online savings

livesoft, thanks for the info but if this fund's YTD isn't annualized and really just earned 0.83 percent in one month, I think I'll need to reconsider my other investments :happy Bond funds had a great January, but they could end up flat or negative for the rest of the year. Or they could go up ev...
by livesoft
Sat Feb 06, 2016 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard tax issue with Roth IRA re-characterization and conversion (backdoor Roth IRA)
Replies: 3
Views: 174

Re: Vanguard tax issue with Roth IRA re-characterization and conversion (backdoor Roth IRA)

I think it can be right as Vanguard does not track your basis in your IRAs. You do this yourself with Form 8606. So if you fill out your tax return correctly, you will not have to pay taxes on the basis.
by livesoft
Sat Feb 06, 2016 9:20 pm
Forum: Investing - Theory, News & General
Topic: Taxable account strategy for delaying Social Security
Replies: 10
Views: 840

Re: Taxable account strategy for delaying Social Security

vtMaps wrote:What will you do for healthcare between retirement and Medicare?

Healthcare solutions have changed significantly every year for the past several years, so planning for something 5, 10, 15, or 20 years from now is almost useless. One can only try to have a lot of money to solve the issue.
by livesoft
Sat Feb 06, 2016 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing mutual fund performance to online savings
Replies: 4
Views: 294

Re: Comparing mutual fund performance to online savings

1. The YTD returns are not annualized. If the 0.83% YTD return through the end of January was annualized, then the annualized return would be 12 times that. 2. The 0.93% for the 1-year return is the total return (dividends + realized capital gains + unrealized capital gains (i.e. change in NAV)) for...
by livesoft
Sat Feb 06, 2016 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

I could argue that Taxable account with TLH is still better than 529. But, I would agree with you that it may make sense in some other situations. KlangFool Yes, you could argue that, but I am a master of TLH. I even TLH'd two of our 529 plans. :) For wealthy people, tax-free gains any way one can ...
by livesoft
Sat Feb 06, 2016 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

Sure. First, we know from the recent attempt to modify the AOTC that it will be around for years and years. Second, I had to define what I meant by "wealthy", so I chose income high enough to prevent use of the AOTC in today's world. I could have used another criteria. Maybe you would be s...
by livesoft
Sat Feb 06, 2016 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B not coming till end of Feb but need info now
Replies: 14
Views: 868

Re: 1099B not coming till end of Feb but need info now

My sale has short and long term gains. On the screen you showed, they show up as a single line for me. I only had short-term gains. In the long-term gains column is a dash in the screen I showed. So, yes, there is a single line for each sale transaction. BTW, I don't have 1099's from Fidelity, Well...
by livesoft
Sat Feb 06, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Full-Time job (W-2), 1099-MISC and 401(k)
Replies: 3
Views: 257

Re: Full-Time job (W-2), 1099-MISC and 401(k)

Not quite correct. 1. You needed to open a solo 401(k) before the end of 2015, so you can do this for 2016, but not for the $30,000 you have. 2. The employee contribution for all your 401(k)s in aggregate is limited to $18,000. So if you had $18,000 removed from your W-2 income to put into your empl...
by livesoft
Sat Feb 06, 2016 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B not coming till end of Feb but need info now
Replies: 14
Views: 868

Re: 1099B not coming till end of Feb but need info now

But doesn't the Vanguard web site have what you need already under the "Realized Gains/Loss" tab?

I showed a screen capture of that tab in this post:
viewtopic.php?p=2722308#p2722308
by livesoft
Sat Feb 06, 2016 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B not coming till end of Feb but need info now
Replies: 14
Views: 868

Re: 1099B not coming till end of Feb but need info now

You do NOT have to send financial aid offices an actually filed return. Your quoted statement does not give a time frame for the filing of the return. You can send them a signed tax return that you intend to eventually file. Make any corrections in March or April before you send it in. No need for a...
by livesoft
Sat Feb 06, 2016 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

KlangFool wrote:Please explain how they are related? I don't see the connection.

KlangFool

I'd be happy to explain, but first tell me what two [at least] things do you mean by "they"?
529 plans?
wealthy people?
AOTC?
Your statement and my statement?
Something else?
by livesoft
Sat Feb 06, 2016 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

I do not believe people should contribute to 529 plan. It is not a good way to finance college education. KlangFool I have to disagree with that blanket statement. A 529 plan is an excellent way for wealthy families to help pay for a college education. And by "wealthy", I mean any family ...
by livesoft
Sat Feb 06, 2016 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B not coming till end of Feb but need info now
Replies: 14
Views: 868

Re: 1099B not coming till end of Feb but need info now

We have already received our mutual fund 1099-B from Vanguard (not Vanguard BS).

You can send the financial aid people your tax return without filing the tax return with the IRS, so yes, you can fill it out and send it to the financial aid folks.
by livesoft
Sat Feb 06, 2016 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Mitigation / Employer Stock / TLH Advice
Replies: 5
Views: 341

Re: Tax Mitigation / Employer Stock / TLH Advice

There is no reason that one cannot have CDs in an IRA.

Your BND made 1.4% in the month of January alone. It didn't take 12 months to make 1.4%. Besides your after-tax return on the Ally CD is something like 0.7%, isn't it??
by livesoft
Sat Feb 06, 2016 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

I think it is a shame that states do not give bigger tax breaks for retirement savings. In essence, the college savings tax break creates a disincentive for many people to save for retirement. OTOH, fewer people are in a position to make use of college savings tax breaks.
by livesoft
Sat Feb 06, 2016 4:07 pm
Forum: Investing - Theory, News & General
Topic: Case for Bull Market Next 15-20 Years
Replies: 18
Views: 2233

Re: Case for Bull Market Next 15-20 Years

I've come to the conclusion that a bear market is the same thing as a secular bull market and a bull market is the same thing as a secular bear market. So there.
by livesoft
Sat Feb 06, 2016 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Multiple HSAs and Form 8889, Please Help
Replies: 8
Views: 275

Re: Multiple HSAs and Form 8889, Please Help

And that max includes employers' separate contributions and not just deductions from your paychecks. This is unlike 401(k) contributions.
by livesoft
Sat Feb 06, 2016 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Mitigation / Employer Stock / TLH Advice
Replies: 5
Views: 341

Re: Tax Mitigation / Employer Stock / TLH Advice

1. You can still do backdoor Roth IRA even with rollover IRAs. It is just that you have to pay tax on conversion of the rollover IRAs to Roth IRA. His rollover IRA is probably to high in value to stomach the tax cost, but maybe her IRA is not. Perhaps these rollover IRAs can be rolled into the respe...
by livesoft
Sat Feb 06, 2016 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement planning, draw rate, investments, TIA-Cref, etc
Replies: 9
Views: 497

Re: Retirement planning, draw rate, investments, TIA-Cref, etc

Instead of dollar amounts, perhaps you should post percentages. For instance, if you have $2.5 million in total, then that TIAA-CREF bit in the TIAA traditional annuity is 9%.
by livesoft
Sat Feb 06, 2016 2:11 pm
Forum: Investing - Theory, News & General
Topic: Taxable account strategy for delaying Social Security
Replies: 10
Views: 840

Re: Taxable account strategy for delaying Social Security

One can use their taxable account to delay SS benefits and also use their tax-deferred accounts and Roth IRAs as well. We are using our taxable account to help pay expenses now, but also converting our IRAs to Roth IRAs while staying in the 15% tax bracket. This means all our qualified dividends and...
by livesoft
Sat Feb 06, 2016 2:02 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 41
Views: 4358

Re: Asset location strategies for taxes are OK; but not great

It is pretty clear to me that many folks don't bother to read past the titles of articles whether in the wiki, newspapers, magazines, or blogs. That leads to some amusing statements from time to time here on the forum.
by livesoft
Sat Feb 06, 2016 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Question
Replies: 44
Views: 1486

Re: 529 Question

Probably way too much, but it depends on what else is going on in your financial life. There may be better places for you to put $1,000 a month.

I think this is a good thread about 529 plans: viewtopic.php?t=146595
by livesoft
Sat Feb 06, 2016 1:33 pm
Forum: Investing - Theory, News & General
Topic: Stock Allocation in Retirement
Replies: 10
Views: 952

Re: Stock Allocation in Retirement

I agree with the author of that article. I don't think one's asset allocation should depend on their age at all. Nor whether they are retired or not. It will depend on their need, ability, and willingness to accept risk as Mr Larry Swedroe has always written. I have actually raised my stock allocati...
by livesoft
Sat Feb 06, 2016 10:48 am
Forum: Investing - Help with Personal Investments
Topic: difference between two vanguard funds and more
Replies: 10
Views: 631

Re: difference between two vanguard funds and more

1. These funds are different. One does not hold any bonds nor fixed income assets and is instead essentially 100% stocks. You can probably find a Target Retirement 2030 or 2020 fund in your 401(k) that has a similar asset allocation (ratio of stocks:bonds) as a Vanguard fund that you like. Don't go ...
by livesoft
Sat Feb 06, 2016 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Help with investement decisions. Both teachers and two babies
Replies: 12
Views: 625

Re: Help with investement decisions. Both teachers and two babies

Roth IRAs for each of you are going to better than contributing to any 529 plans for now. And don't ever pay a load for a mutual fund if you can help it. That means that your 529 plan is not invested in the best place. You should both move it to a better place and stop contributing to it. The $50 a ...
by livesoft
Sat Feb 06, 2016 9:43 am
Forum: Investing - Theory, News & General
Topic: What is Your Bond Allocation & Location
Replies: 38
Views: 3768

Re: What is Your Bond Allocation & Location

Do I understand this correctly: I bonds and TIPS are for inflation protection. We currently have low inflation. I can just buy them when inflation goes up (by selling some of my regular bonds, e.g. BND). That's not market timing, because their prices are real rather than speculative? That's not the...
by livesoft
Sat Feb 06, 2016 4:39 am
Forum: Investing - Theory, News & General
Topic: What is Your Bond Allocation & Location
Replies: 38
Views: 3768

Re: What is Your Bond Allocation & Location

Just curious--why don't you use TIPS or I bonds for inflation protection (see nisiprius post above)? At one point I owned shares of the Vanguard inflation-protected securities fund. One day it went up 3% for no apparent reason. Intermediate-term bond funds are not supposed to go up 3% in one day. I...
by livesoft
Sat Feb 06, 2016 4:24 am
Forum: Investing - Theory, News & General
Topic: TLH timing question: how to count 30 days
Replies: 6
Views: 458

Re: TLH timing question: how to count 30 days

The IRS is counting whole days, so even if you had time stamps for ETF trades down to the minute or second, it don't mean a thing.

And for 2016, one could submit a mutual fund order after the market close on Friday February 12th and it won't execute until Monday February 15th.
by livesoft
Fri Feb 05, 2016 8:11 pm
Forum: Investing - Theory, News & General
Topic: Investing nontaxable money with zero taxable income - how?
Replies: 8
Views: 895

Re: Investing nontaxable money with zero taxable income - how?

What's wrong with investing in a taxable account in a tax-efficient manner? You just need money to do that whether it comes from inheritence, gift, job, or other source. The tax drag on such an account should be less than 0.5% per year and could provide tax-loss harvesting opportunities.
by livesoft
Fri Feb 05, 2016 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: What Percentage Raise to Expect for a Small Promotion?
Replies: 11
Views: 974

Re: What Percentage Raise to Expect for a Small Promotion?

Your supervisor should probably not have told you about a possible promotion that may not happen. If the people above your supervisor shoot down the recommendation, what does that tell you? In that case it would have been better not to have even known about it. Of course, if you asked for a promotio...
by livesoft
Fri Feb 05, 2016 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to hire someone to do my taxes?
Replies: 6
Views: 535

Re: Do I need to hire someone to do my taxes?

A full service broker like Morgan Stanley should provide you with full service.
by livesoft
Fri Feb 05, 2016 4:56 pm
Forum: Investing - Theory, News & General
Topic: Boglehead mentality re todays oil price
Replies: 15
Views: 1140

Re: Boglehead mentality re todays oil price

Rig count is down, but lots of producing wells are now shut in and could come back online with minimal effort.

https://www.aei.org/publication/top-10- ... s-part-ii/
Expected production life of a Bakken oil well: 45 years
by livesoft
Fri Feb 05, 2016 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to hire someone to do my taxes?
Replies: 6
Views: 535

Re: Do I need to hire someone to do my taxes?

I posted about documenting wash sales. What's the problem? Doesn't your broker have to track this for you? What does your 1099-B have on it?

Here is a thread with excrutiating details: viewtopic.php?t=179414

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